The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-11-15
RESERVE BANK HERE
OPENS TOMORROW
Expectation That Deposits Will
Be Close to S1OO.OOO,OOO
at the Start.
RATES AWAIT APPROVAL

The Federal Reserve Bank OK New York
will open for business at 10 o'clock to-
morrow morning. The beginning OF The
new banking system In this State means
a sweeping change FROM the old national
bank system, which has been the standby
Of the country In every CRISIS II has met
since tho days Of the civil war. The
call for the payment Of the tirst install
ment Of reserves by the member banks
went out on Friday. and this will bring
In 10 the bank OH the day OF Its OPEN
ing practically s1O0.ooo.0 600.
According to statement given out
yesterday by Benjamin Strong, Jr., gov
ernor Of the bank. all the national banks
in this city will complete their transfers
of reserves on Monday and more than
SS7.0OO,OO0 OF the total OF S9l.oo0.OO0
deposited ny the banks IN this city will be
In gold or gold certificates. Several OF
the largest banks I'm the city have sig
nlhed their Intention Of dcposting some
portion Of their reserves In excess of the
minimum amount required. and 1t Is
believed that the excess deposits will eN-
coed S7,0o0.o00. Under the terms Of the
Federal reserve act the banks are required
to keep an Is per cent. reserve. Seven
eightsenths Of this amount Is the minimum
for transfer to the reserve bank. Six
eighteenths must be kept In the banks
own vaults NJ u reserve. The remain
ing nvc-eigh,o-nths may he kept In their
vaults or In the reserve bank.
In spite OF the tremendous task OF
tao ~
employees for the great institution In
the limited time allotted the bank will
he opened OH scheduled time, as required
by Secretary McAdoo when he ovorrued
objections OF the majority OF the directors
Of the twelve reserve banks OF the coun-
try and announced that the new banking
system would be put in operation pm
November 10. instead Of on Novemeber'So,
as the directors wished.
Governor strong's statement.
Tho statement issued by NJ. Strong
yesterday regarding the opening OF the
bank on Monday was as follows
The Federal Reeve Bank u New
York vii! open for business at 10 o'clock
Monday morning During Monday and
Tuesday We shall he engaged in receiv
Ing tire transfers OF reserves OF tne as
member nnks From advices which
hlV" been furnished us all the national
banks In New York city will probably
,ortplcte their transfers Of reserves or
Monday, and over Ss7.Oo0,O00 out OF the
total OF $4,000. 900 deposited by banks
In this city will he In gold or gold
cert ldcates number OF the banks in
Guiding some of the largest. have sig
nlfed their intention Of deposiung some
portion OF their reserves In excess of the
minimum required. The total OF sucf
excess deposits Will probably he over
$1,000. 900.
Several of tho largo banks will also
/ probably apply for rediscounts early II
I the week. and the Chemical Natona
/ BAN; has asked for perm sion to make
the FIRST rcdiscount IN order 10 show It's
: desire 10 support the operations and us'
: tn. facilities OF the new banking system
: THE New York city banks by trans
ferrlng their reserves so largely In gold
10y their Willingness to make prompt use
, OF the red scount privilege SO as to es
/ tablish rcdiscounting as normal bankint
! operation. and by lending US com
! plete staff OF experienced officers AND
! clerks, have given most gratifying evil
/ dence Of their intention to cooperate II
establishing the new banking system