The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1914-01-01

heavy deposits of country banks In the
large cities, the law provides that three
years may be consumed In shifting
t5&se balances and that, II necessary.
part or the reserves transferred 20 the
regional hanks may consist OF CONNER
cial paper.
The account OF reserve required rom
every bank under the new law and the
place where II must be kept are az foi-
lows
Country banks: Fiye-twelfths must
be- kept In the banks Vaults for Two
years and four-twelfths after that time,
For the first year two-twelfths must pe
kept In the regional bank, increasing
one-twelfth each six months Thereafter.
until lt reaches five-twegfths ot tine TO-
tai reserve. For three years the unal-
lottsd part or the reserves may be kept
in the banks OF reserve cities; after
that time II must be kept either In the
country banks vaults OF In the region
al reserve bank.
Reserve city banks; Total reserve
required, rs per cent OF demand and ;
per cent offime deposits, Six-fifteenths
must be kept In the banks vaults
for first two years. and fiye-fifteenths
after that time. Three-fifteentbs
must be kept In the regional bank for
the first year, increasing one-flfteenth
every six months thereafter until it
AEAIlAEH A~AiAtGCIluE hH NAAID 49,
the unalloted portion Of the reserve
may be kept In i3ther tanks In It's own
vaults or In the regional bank; after
that time la one OF the latter two
places.
Central reserve city reserve banks
New York, Chicago and St LOUISE.
Total reserve required ls per cent of
posts. SIx-eighteenth must be kept in
the banks own vaults; seven
~eighteenths In the regional reserve
banks, and the remainder ftye-
E-elghteenths In either place he bank may
choose.
Those immense funds Of reserves
from member banks together with
government moneys win make up the
deposits Of the regional reserve banks.
Each OF these banks will be admins
istered by a board Of nine directors,
six OF whom will be elected by the
banks and three appointed by the fed
erai reserve board.
The regional banks may rediscoant--
that Is, buy at q discount from Its
member banks-tprime commercial
paper when the member banks desire
to convert these assets into money!
The exact terms of this important pro-
vision as to the character of paper upon
which the regional reserve banks may
furnish cash are as follows.
Upon the Endorsement of any OF its
member banks with waiver or de-
nand notice and protest by such bank,
! any federal (regionaD reserve bank
may discount notes, d~raftsNand bills OF
exchange arising tut Of actual COM
merciaI transactions; that Is notes.
drafts and bills Of exchange issued or
drawn from agricultural, industrial or
commercial purposes or the proceeds OF
which have been used or are to be used
for such purposes, the federal reserve
board to have the right to determine
or define the character or the papers
thus eligible for discount within the
meaning OF this act,
Nothing In this act contained shall
DO construed to prohibit such notes,
drafts and bills of exchange. secured
by staple agricultural products, or
other goods, wares or merchandise from
being eligible for euCh oist ant, but
such definition shaft not include notes,
drafts or bills covering merely invest
ments or issued or drawn for the pur-
pose Of carrying OF trading III stocks,
bonds or other investment securities ex-
cept bonds and notes OF the govern
ment OF the United States.
Notes, drafts and bills admitted 70
discount under the terms uf this para
graph must have q maturity at the
time OF discount OF not more than 80
days, provided that notes. drafts and
bills drawn or issued for agricultural
purposes or based on live stock and
having a maturity not exceeding six
months, may be discounted in an
amount 70 be limited TO a percentage
Epf the capital OF the federal fregionall
reserve bank, to be RsceTtained and
fixed by the federal reserve board.
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