Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-02-25
FEW BANKS ARE OUT
OF RESERVE SYSTEM
Official Count Shows Z, 1856 Have Ap
piled for Membership
to Date.
Eighteen Will Not Join and Ten
Are Yet to Be Heard From.
Capital Exceeds Billion.

Official count by Treasury officials shows
that Z ,465 national banks have applied for
membership in the federal reserve system,
that eighteen banks have notified the or
ganization committee that they will not
apply and ten have not been heard from.
The capital of the banks applying
amounts to S1.O54. 533.554, which is 99.75
per cent Of the capital Of all national
banks In the country. The capital of
banks not accepting is placed at 81. $780, 900.
and that Of the ten not heard from at
$4,000.
In an official announcement giving these
figures the reserve bank organization
committee said that although explana-
tons had not been sent with the notifica-
tons OF non-acceptance by the eighteen.
in several instances the records showed
that the banks had arranged some time
ago to go into liquidation. One bank nad
been absorbed by another OF the ten
not heard from two had filed papers ASK s
been too recently organized to pass the
necessary resolutions of acceptance. So
only Ave are really considered as being
In the class Of those yet to respond.
Billion Mark Is Exceeded.
The figures for the state banks and
trust companies have not been tabulated.
Sixty such institutions have asked for
approval Of their applications. 1t Is est-
mated that their capitalization will be
sufficient to put the total Of all banks ap-
plytng to date beyond the 81. 100 OO0, 900
mark.
Secretaries McAdoo and Houston and
who make up the organization committee.
are pleased with the manner in which the
banks have responded. Figures for the
surplus funds Of banks which are COM
ing into the system. while not complete.
make 1t certain that the new system will
be launched with authorized capital Of at
least $1GO.OOO,0OO
The organisation committee Is working
away on the definition of the limits of the
reserve districts and the location of the
reserve cities and its conclusions are ex
pected in q few days. When their report
| Is ready the banks will be required to
subscribe per cent of their capital stock
and surplus to the stock Of the reserve
taken within ten months. The other half
will be subject to the call OF the federal
reserve board.
Guidance for State Banks.
| The organization committee has issued
regulations for the guidance OF state
banks which wish to apply for member
ship In the system. Such Institutions en-
ter In the usual way by becoming ma
tional banks. or they can apply as STATE
| institutions under certain conditions. The
! principal conditions are that applicant
I, banks must certify their assets and La
bilities and that none are carried at an
excessive value: that they shall file
| copies Of their charters with digest Of
powers granted.
The organization committee may re-
quire an examination of an applicant
bank by q national hank examiner to
ton or may accept a certificate from a
state examiner, and only banks which
have unimpaired capital sufficient to en-
1 title admission to the national banking
system shall be considered eligible State
| Institutions applying shall be given "a
| reasonable time" in which to adjust loans
and Investments SO as to conform to the
laws Of the United States.