Evening star., 1914-11-14
IMPORTANT MATTERS
THAT REQUIRE ACTION
Member Banks Must Have Pro-
portional Reserve Payments in
Regional Institutions Monday.
War Tax Statement Must Be Filed
This Month-Other Vital In
formation-New Ruling.
By I. A. FLEMING.

system will be required. under the pro-
visions of the law, to have their initial
payment on account of reserve require
ments on deposit with their regional
bank Monday morning next, when the
new system Is to be installed.
The Treasury Department has fur
nished the necessary data for informa-
ton as to payment. but has not spe-
cif1cally indicated that payments must
reach regional banks at once.
A later ruling Is promised by the con-
troller OF the currency with regard to
reserve payments. Under this ruling,
not yet announced to the public, banks,
in calculating first payments on ac-
count of reserve requirements, may de-
duct from their deposits clearing house
checks. or rather checks ready for the
clearing house, and other local checks.
The law does not permit of ignorance
or Its provisions, so that banks failing
to make payments by Monday morning
are liable to hear from the controller
of the currency.
For Washington the payments on re-
serve account due in Richmond to the
regional bank there, call for 3-15 of
the reserve on deposits, calculated as
indicated
Banks have already paid in their
and surplus payments.
With the new system to be fnaugu-
rated Monday, reserves are greatly
reduced. In Washington. a reserve city.
Der banks will be obliged to carry Is
per cent on demand deposits and per
cent on time deposits.
Definition Of time deposits has been
made as deposits that are payable
within thirty days. Time deposits.
those which are payable at any time
after thirty days.
The new banking system will result
in efforts on the part of bankers to
secure q larger part Of their deposits
banks larger use of the money!
Washington will send about a million
dollars to Richmond for Mondays
opening. If all the member banks get
their payments OF in time.
ALI the national banks and the Mum
sey and Continental Trust Companies are
members of the federal reserve system.
War Tax and Banks.
Another case where the law does not
permit of ignorance is in the filing of
the war tax on banks capital stock
and surplus No ruling has been made
on the question Of payment of the tax
during the current month, but the
banks must make their declaration
during the month of November. recit-
ing their total capital stock and sur
plus and amount due on a basis of 81
for each $1,000 of capital thereof
The penalty for ignorance on this
matter Is SO per cent additional tax, so
that few banks will permit the matter
payment of this tax will probably be
made before the end of next week.
Hard at Work on Annual Report.
Employees Of the office Of the controller
Of the currency are hard at work pre-
pairing the annual report of the depart
ment for presentation to Congress De-
cember I.
Quite likely other government employees
are busy on annual reports also
Hopeful Talk.
While conditions are actually showing
some Improvement, the optimistic views
of the situation may not be entirely war
ranted Steel trade is improving. but like
many other Industries 1t is at a low ebb
and waiting anxiously for the rate de-
cision and hoping that it will not be
compromise and further enlightenment on
how to save money.
The immediate opening of the New York
Stock Exchange is not In sight. nor is the
unrestricted opening Of any exchange zeal
ing in securities a matter of the imme-
diate future.
There are signs that should give
courage and that seems to be greatly
needed at this time. Chief among
these is the advance in Steel common
to nearly July 80 figures and the ad-
vance of $4,000 seat on the New York
Stock Exchange, sale being made at
$4,000 as compared with $34,000 the
last previous sale. Then, too, the ex-
e,;t 10 yx-nr
satisfaction of bankers: the gold
pool" has served its purpose and
further calls from the subscribers are
not expected.
pool will never be an actually. New
York bankers have heard nothing
from the Secretary of the Treasury
concerning the pool for week or
more. They have two theories. one
that it was impossible to raise the
$85, 100000 out of New York city, and
the second that the reopening Of the
cotton exchanges will provide for sta
bility in prices.
New York bankers would not be sur
prised if the Secretary should abandon
the idea entirely.
Washington has subscribed its mill
lion dollars and is ready for payments
when the Secretary of the Treasury
shall call for them.
Both the New York and the New Or
leans cotton exchanges will open
Monday.
In Chicago, there are indications that
the stock exchange there may open
November %, and President Aldrtch of
the exchange believes such opening
possible. It will be a case OF Chicago
to the fore once more. If it does open.
May Change Methods.
The induction of the new banking
system for the nation. and the recent
ruling as to commercial paper by the
federal reserve board. may lead to the
introduction of 'acceptances" on this
side Of the Atlantic in order that paper
may be more readily rediscounted.
| The rediscount system has long been
| In vogue in Europe. and successfully.
even in the most stringent times. and
| American business men Will not re-
ouire much time to accommodate
themselves to new conditions.
| 1t will be interesting TO know Just
how rediscounted bills will be collect
ed, whether by the regional bank or
the member bank, matter not settled
| by edict as yet.
| A ruling is expected on the question
whether the waiver of protest by
member bank on paper rediscounted
would release other indorsets as Well
as the maker. as this would seem TO be
legal Interpretation.
Discount Rate for Washington 8
Per Cent.
The fe4eral reserve board made a
very important ruling this morning.