The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-13
RESERVE BANK
RATES TO VARY
Federal Board Will Take Up the
Rediscounting Problem
To-day.
LAST TASK FOR OPENING

WASHINGTON, Nov. 1.-THE Federal Re-
serve Board will take UP tomorrow the
most important task that remains TO be
performed for the opening OF the twelve
reserve banks next Monday-the designa-
ton OF the opening rates OF rediscount
for the banks
Each OF tho banks has communicated
to the board its suggestions a. TO the
proper rate. in view of tho conditions now
prevailing In It's district. the last bank
to do this being the New York city bank,
which reported to the board through Fed
eral Reserve Agent Pierre Jay this after
noon. Tomorrow the board will approve
or disapprove the recommendations In
each case.
II Ia a foregons conclusion that the
rates will differ for the various districts
according TO the condition OF the money
market in the territory affected, and that
in general the rates will be lower for
the Southern districts than for tho DIS
tricts OF tho West and the East.
This difference will be made because OF
the comparative easiness of tho money
market In the New York. Boston and
Western districts, and the immediate needs
for money in the cotton producing states
Secretary Parker willis. under instruc-
lions from the board. has tabulated th'
suggestions from the directors or the
twelve banks, 80 that all practicable haste
may be made by the reserve ooaFo III
| reaching Its decision.
1t liz expected that a decision VIII ne
announced tomorrow or Saturday. az the
rates must be published before Secretary
McAdoo issues his proclamation formally
putting the new currency system into
operation.
The Glass-Owen act authorizes tho re
serve banks to fix their discount rates
with the approval OF the board. Oficials
are confident that the board Will accept
the Judgment OF tho directors OF each IN
stItution. provided the suggested ra'e
| In consistent with the best interests Oh
| the system as whole.
| The stronger reserve districts Will PROB
| ably be called upon TO give monetary ait
through rediscount TO the districts wher'
| the immediate need for money Is mos
pressing. Reports already have come t'
Washington that New York bankers ex
| meet that soon after the reserve bank o.
| that city has opened its doors IL VIII o.
| asked to rediscount the paper or the hlch
| mond. Savannah and Dallas reserve banks
| IL was said here to-day. however ina
| the Boston bank may get such reques
the Boston bank Is regarded as better
| eouipped to meet outside demands at I'M
| present than the New York bank, which
| has been called upon recently TO meet TN
| demen ds of our foreign Indebtedness anS
to shift national bank reserve deposits.
| Applications by a reserve bank Tor TN
rcdlscount OF It's paper by another reserve
| bank are made to the Federal Reserve
| Board, which Is empowered by the law L
. compel other banks 20 perform such ser
Vices as method OF mobilization. Tn
| board may in addition demand OF the re
serve bank that II ofrer its paper for re
discount and may designate the bank b!
which the rediscountng Is to he done
| Little information could be obtained O
an authoritative character tonight witt
regard TO the rates suggested by the twelv
| banks II is known, however, that MON
| beers OF the board would not regard Z g.
per cent. as an excessive rate for dis
trlct where money II easy at present. an
loan rates are easily maintained at pc
cent.
About $3.50. 900. 900 OF reserve notes hav
been printed and are at the Treasury De
I partmcnt for distribution. The board ex
pects that this amount will suffice at IN
start.
The board designated Charleston, s. c
and Birmingham. Ala, az reserve elite
this afternoon. Notice was served at tn
:
designated az a reserve city which ha
not a population OF at least 100000. Tn
board issued this statement:
Tho applications OF Charleston. 3. c
and Birmingham. Ala. 10 he made ~
scrve cities we're favorably acted upon b
the Federal Reserve Board to-da,
Charleston was formerly designated as
reserve city in the national bank act
THE applications OF Tulsa Okla. wit
IL 900 Inhabitants. and Joplin, Mo-, wit
az 900 inhabitants. census of 1910, wer
before the board, but did not receiy
favorable action.
"It is understood that In the future n
/. cities with less than 10000 inhabitant
will he approved as reserve cities"
The Federal Reserve Board made pull
lie this afternoon tho reports OF con
mittees Of the convention of officers an
, directors OF the Federal reserve bank
held at Washington the week Of Octobs
90. All the important matter made pull
lie to-day had been given out before wit
the exception OF the report OF the con
mittes on domestic exchange.
, This committee recommends that n
assumption by the reserve banks OF ciea
ance duties be as gradual as possible an
that little be done at tho outset OF Il
: new system TO disturb the normal bus
ness procedure OF tho present system wi,