Barton County democrat., 1914-01-02

Tie amount Of reserve required
from every bank under the new Law.
and the place where It must be kept,
are as follows:
Country banks-Total reserve requir-
ed, II per cent Of demand deposits
and 5 per cent. Of time deposits. Five.
twelfths must be held in the banks
own vaults for two years and four.
twelfths after that. For the first year
two-twelfths must be kept In the re-
gional bank, increasing one-twelfth
each six months thereafter until 1t
reaches five-twelfths Of the total re-
serve. For three years the unallotted
part Of the reserve may be kept In
the banks Of reserve cities. After
that lime 1t must be kept either In
the country banks and Vaults or In the
regional reserve bank.
Reserve city banks-rTotal reserve
required, Is per cent Of demand and
5 per cent of time deposits. Six-hf-
teenths must be kept in the banks
vaults for the. first two years and five
fifteenths after that time. Three-ff-
teenths must be kept in the regional
reserve bank for the first year, In
creasing one-fifteenth every six
months thereafter until 1t reaches six
fifteenths. For three years the un-
allotted portion of the reserve may be
kept In other banks, in its own
vaults, or in the regional bank; after
that time in one Of the latter two
places.
Central reserve city banks New
York, Chicago and st. Louis)-Total
reserve required, Is per cent. Of de-
mand and 5 per cent. Of time depos.
its. Seven-eighteenths in the regional
reserve banks and the remaining five
eighteenths In either place the bank
may choose.
Regional Reserve Banks.
These immense funds Of reserves
from member banks" together with
government moneys, will make up the
deposits Of the regional reserve banks.
Each of these banks will be admins.
tered by a board Of nine directors, six
Of whom will be elected by the banks,
and three appointed by the federal re.
serve board.
The regional reserve banks may re-
district-that is, buy at a discount
from Its member banks-"prime com
mercial paper" when the member
banks desire to convert these assets
into money.
Character Of Paper.
The exact terms Of this important
provision as to the character Of paper
upon which the regional reserve banks
may furnish cash are as follows:
Upon the Endorsement OF any Of III
member banks, with a waiver Of de
mand notice and protest by suct
banks, and federal (regional) reserve
bank may discount notes, drafts, anC
bills Of exchange arising out Of act
ual commercial transactions; that is
notes, drafts, and bills of exchange is
sued or drawn for agricultural, indus
trial or commercial purposes, or tn,
proceeds of which have been used, O
are to be used, for such purposes, tn
federal reserve board to have tn
right to determine or define the char
acter Of the paper thus eligible 10
discount, within the meaning Of thi
act.
Eligible for Discount.
Nothing in this act contained shal
be construed to prohibit such notes
drafts and bills of exchange, secure
by staple agricultural products, or oti
er goods, wares, or merchandise, fror
being eligible for such discount; bu
such definition shall not include notel
drafts, or bills covering merely inves
ments or issued or drawn for tn
purpose Of carrying or trading
stocks, bonds or other investment 8,
curities, except bonds and notes of tn
government Of the United States.
Notes, drafts and bills admitted I
discount under TIE terms Of the par,
graph must have a maturity at th
time of discount Of not more than 8