The Washington herald., 1914-12-13
BANK governors
CLOSE MEETING
Federal Reserve Board An
nounces Baltimore Pro-
test January 6.
CASH HOLDINGS DROP
Weekly Statement Blames Subshtu-
ton of Gold for Decrease-To
Probe Clearances.

The Federal Reserve Board announced
yesterday that hearings would begin jan
uary on the protest by the bankers or
Baltimore against the designation OF
Richmond as a reserve bank city A week
is assigned for the presentation Of the
Baltimore complaint, and the board there
after will take up complaints by the
banks of Pittsburgh against their desig-
nation as members Of the Cleevland dis
trict, by the banks OF Hudson and ada
cent counties in North New Jersey at
their attachment to the Philadelphia dis
trict instead OF that OF New York
The first conference of the governors
of Federal reserve banks, which has hc2n
in session here since Thursday. adjourned
yesterday after recommending to the
Federal Reserve Board that a delay OF
at least a month be allowed before the
commencement Of the full clearance op-
erations authorized by the>reserve act.
The governors thought 1t best that for
the present the clearance Of checks by
reserve banks be confined to the men,
ber banks in their own districts, with the
condition that reciprocal accounts be
established among the reserve banks
themselves so as to facilitate the handling
OF checks drawn on reserve banks by
member banks outside their districts.
To Probe CIearances.
A committee of the governors was ap-
pointed to make an elaborate investiga-
ton into the subject of clearances with
instructions to report at another con-
ference Of the governors called to meet
here on January %
At the conference yesterday morning
Gov. Strong was elected chairman OF
the governors organization and J. +.
Curtis. counsel of the New York bank,
was elected secretary.
The weekly statement Of the condi-
tion of the reserve banks. made public
by the Federal Reserve Board yester-
day. shows a slight falling OF in the
cash holdings of the banks as COM
pared with the previous week. This
is attributed to the substitution of gold
for rediscounted paper. according to an
announcement from the board which
accompanied the tabulated weekly
statement, the paper referred to being
that deposited with the reserve agents
as security for circulating notes. and
to an increase in the transactions be-
tween the reserve banks.
Bills Discounted Increase.
while this weeks report shows an
increase by about Is million dollars of
announcement. the net liability of the
Federal reserve banks on these notes
has decreased about $25O,0 This de-
crease is due to the substitution of
gold for paper previously deposited
with the Federal reserve agents
Bills discounted show an increase of
about 100000 over the previous weeks
record. Transactions are reported by
all banks. Over So per cent of the
paper in the hands OF the banks ma
lures within thirty days.
There are practically no change in
deposits. The figures reported are net.
less deduction of S2.s19.000. represent
ing items in transit between Federal
reserve banks.
A practically uniform level OF redis-
count rates now obtains among the re-
serve banks of the new currency sys-
tenn. according to an announcement
from the Federal Reserve Board yes