Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1914-04-03

THE FEDERAL BOARD. YET To BE
NAMED, WILL HAVE POWER To
REVISE LIST SHOULD IT SEE
FIT TO DO SO.
fBD ASspriafcd A PreSsl

""S""S'"h- ~. Y. Apfll - ne i"u
eral reserve bank committee. which rc
Gently made tour of the country t.
hear arguments for the location Of Fed
eral reserve banks last night announced
the cities that have been selected The
list includes. Dallas. Texas: BOSTON.
Mass; New York. Philadelphia. Pa:
Cleveland. Ohio: Richmond. Va; Al.
lanta, Ga; Chicago. ILL.,; 81 Louis. Mo: I:
Minneapolis Mimi; Kansas City. and
San Francisco. Cal.
Some congressman are kccnly disap
pointed at the failure of their cities 10
get Federal reserve banks. The Fc lcral
reserve board which il We! To bc namr'l,
will have the power 10 revise the list of
reserve cities. but il is not believed that
the board will make Il rcvcSion of The list
that has been named following the tour
of the United States hy Secretaries NJ
Adoo and Houston.
The new federal reserve banking Tvs
tenn will start Business with . tot A an
thorzcd capital of about Sl0a.O00 0l0 for
all reserve banks This fact became AZ
parent when figures were made rahlr
from all national banks responding tD
the last call Of the controller Of the cur.
rcncy. made March |.
The statement ISSUED giving these fig
urcs will he the last of the kind before
the formal launching Of the system Nm
less the organization changes ilS pres
cnt purposes and DELAYS the Announce
mcnt of the reserve districts and ,itics.
The total capital and Surplus III the !.
All national banks reporting was given
ut about II 1SS.000. .000 Under the re-.
serve act each national bank must sub
scribe u prr cent Of It's capital of The re-
serve bank in its dist rict aud per cont
of this total would ba about si07 0nO 0nn
There were only 1.Ic5 national banks
who signifcd in the legal time their in
tention tn enter the system. 80 that the
total would he somewhat reduced bat
the entrance into the system of state
banks and trust companies will tend Ia
offset this. and il is possible that with
these institutions figured in the capital
of all reserve banks will be near >ll0.-
600 600.
The actual working capital of the re-
serve banks may reach only half thi,
amount. for the law provides mandatory
subscriptions of oulv thrcc.SiNih of the
total q per cent The reserve board the
machine will direct the system. however
IL authorized to determine the payment
of the other three >iAih>
The statement showed national banks
In excellent condition 60 meet the de
mands of the new law. Some observers
were surprised bv the fact that loans
and discounts have increased instead of
hcinc cgrtailc' Lands AMI discounts
on Mar" 1. 1914. amounted H. 6351
5.S.'S ain over .Ianharv ~ 1911. the
time of I! last cnll of Sl>2 l30 I6
Subscribing banks must begin pay
mcnts for their reserve hank stock thirty
DAYS after the announcement of the dis
tricts and rival cities and il was believed
In some quarters todaN'S announcement
might show decrease ia loans and Dis.
counts because of this imncndng an.
nounccment. The loan and discount in
crease taken together with the fact That
individual deposits Increased IN the >aine
period hv more than S@Mm.nn0. was
said 10 10 the hest indication that the
national banks are i'm shape io meet the
demands of the new system.
Dr-SnI-ps.rS A\n \ ITI1S