Corpus Christi caller and daily herald. [volume] (Corpus Christi, Tex.) 1911-1917, 1914-11-17
FEDERAL RESERVE BANK
SYSTEM FORMALLY OPENED


fCsnilnued from Page -
-----------~--s,----------- ---'------
ao,.. now 60 familiar. win bc Issued
upon commercial paper arising out ~
actual buslnraa transactions. II seems
[ pialn TINT they viii rise aud fell ~
amount as the iidea ~ business fise
ara fail. and TINT there viii BE- 10
pletbofn ~ money o. lle idle. They
VIII be obligations ~ the laited states
government. which national bank nyte4
h lifr not. ana viii have back - fheri
largo rcscryc Of KOid ~ the regional
banks Through than the reserve
banks are expected a. come - the aid
( - any needy member hank which has
plenty ~ good paper bat needs cash
ro further Insure tho flow - nnney,
Reserve banks ti3elns'lteE ibaY be re-
qulfrd 10 redlHcount the discounted pa
yer ~ fthcr rcacfyo hanks.
More than 1850 O0O.9o0 ~ ne new
{ noscn have been ordered by the comp.
sfosicr % the Currency fnf The twelve
honisH They are D. - 80. we 80
and 600 DENOMINATIONS, and are 90 ~
accepted ~ aN mrmber banks and fuf
su customs ts,ScH ~ other dues The
( Federal Reserve Agent - every bank
T. ia the " stem. shp iH ine government
representative fh,rr. h1r these nltca
Ia cnstodg rsaly ft me application ~
member hunks
Nesg to The elasticity - the nrw
currency. officials value the 'mohili-
sntion" but nu concentration ~ re-
serves which 10 VIII insure TINS they
point puf. does NOT mean the cnucsH-
imuou ~ wat sums frDm Country
hanks iH reserve cities and central re-
serve citira aH under the national
banking act. bat their appearance ln
large part nu tho debit balances ~ the
tWelvp reserve banks in widely scat
tered parts " tho country These roe
stlVeH viii No. aH nsir aB possible GO
tho door ~ the member bank Co which
they belong in fimrs ~ need aud there
can be- no refusal from reserve bank
a. RETURN them ln cases ~ eslRcncy
4 remnant ~ the present ayetoni
aiili rrmnlna iu The provision hy which
banks may keep certain proportion
~ their reserves with other member
baniga Ia cities n0w known aa reserve
md central reserve cities AZ the end
~ fhror years however that wlli be-
changed and uli reserves viii be held
either ir % banks own paluta ur with
federal hnnf An elton VIA mHdr
ln Congress few weeks nnu tu per.
nH member banks to deposit tli their
RESERVES with fha reserve bank nl
once 40 tho lnw stands their process
lH 90 hc spread over period uf thirty
nuntHH u 80 la renewed aucocaRfuliy
nosi winter t Will mrauu mnfkod
Increase in the available funds of Tho
reHer.r hauaH 40 10 stands the twelve
hanks viii start ont With total cash
RESERVE 90 about fat8 600 o00
Another p0int nut furk0iten hy nd-
ulrvrs ~ thu iaN iH the fact thai the
different roscrye requirements viii o.
lease about fsei 600 goo now tied up IN
reserves and VIII afford far sfcater op.
portunlfY for borrowed to set hear
lnr and ioan.
Tho reserve hnnsn are not 10 do d
inuainf huhiucim except with mrmbo
hunks They are empowered however
10 engage ln oleg market transaction
Ia ~" buying or selling 90 cable trans
fen and bankers hills Of acceptance
mud billie ~ exchange other tmnHac
.iinns Include huflnE aud selling 90
bonds ur notes of tho United gtttca pit
por lnaucd ln anticipation 81 The yoi
lection 1T tnsca or assured revenues Cd
Nnf state or political HuhdNihiun Il
thr cnnuueWni United staten IN
hanks arv 60 establish subject to ap
'proyd uf the Reserve Hoard. rates 81
discount Ga be- charged Tor each elias
~ paper Thcy may aian. with IN
limrd'a consnnt open and mpinial
henking accounts in foreign cpun,rle
fnr the purchase or collection uf biil
OF exchange
la the future the clcarinEa of m
hantH ~ the country arr expected
be made thuaeh these fvgiUnai BAIL,
which may In Time lead 90 the aholitio
ld many clearing house association
iiiearluNa which Involve hanks VA wid,
IN separated paits az the cuuntI
probably will bv made with much ,a,s
rariaity though ncW hanks TIA
thurngh ordinary commercial channel
u has been estimated that throng
this saving in time aione tho use
hundreds ~ millions ~ dnllara 4
many days VIII be AavAi
Ia time. the new system viii rcti
the two per cent United States bon,
nov uscd principally as naais q
national bank notes There arv mo
than ssoe.o eoe 20 thoao bonds ~
outstanding and their retirement ~
hc sprcnd over period ~ tween
Years with thclf psaalug tho nation
, hant circulation based upon them a,
not upon enc life beats ~ CONNER
viii disappear and unless hs that tin
= Vongrera has enacted new act. ii
: nation Win hevr currency tRat
!. theory az least rcspo-ds 20 ihc know
, icf cropa the tarah ~ industrial plan
and the prrgrcss 90 the business wnr
HARD TO LOSE rt,a ION