Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1914-01-09

heavy deposits Of country banks in the
large cities. tho law provides that three
years may be consumed In shifting
these balances and that. IL necessary.
part Of the reserves transferred to the
regional banks may consist OF CONNER
cial paper.
The account OF reserve required from
every bank under the new law and the
place where 1t must be kept are as fol-
lows:
Country banks: Five.twelfths must
be kept in the banks vaults for two
years and four-twelfths after that time.
For the first year two-twelfths must be
kept In the regional bank. increasing
one-twelfth each six months thereafter,
until it reaches five-twelfths of the to-
tai reserve. For three years the unal-
in the banks of reserve cities: after
that time it must be kept either i'm the
country banks vaults or in the region
al reserve bank.
Reserve city banks: Total reserve
required. Is per cent OF demand II b
per cent of time deposits. Six-fifteenths
must be kept in the banks vaults
for first two years. and five-fifteenths
must be kept In the regional bank for
h first year, increasing one-fifteenth
every six months thereafter until 1t
reaches six-fifteenths. Fol three years
h unalloted portion OF the reserve
may be kept in other banks in its own
vaults or In the regional bank: after
h time in one of the latter two
places.
Central reserve city reserve banks
(New York. Chicago and st. LOUISE:
Total reserve required Is per cent of
demand n s per cent of time de-
posits. Six-eighteenth must be kept In
e%ighteenths in the regional reserve
banks. and the remainder five
eighteenths In either place the bank may
choose.
Those immense funds Of reserves
from member banks" together with
government moneys will make up the
deposits Of the regional reserve banks.
istered by q board Of nine directors,
six Of whom will be elected by the
banks and three appointed by the fed
eral reserve board,
The regional banks may rediscount-
that is. buy at a discount from its
paper when the member banks desire
to convert these assets into money?
The exact terms OF this important pro-
vision as to h character of paper upon
which h regional reserve banks may
furnish cash are as follows:
Upon the Endorsement of any of its
member banks with a waiver or de-
mand notice and protest by such bank,
] any federal (regionaD reserve bank
may discount notes, drafts and bills of
exchange arising out OF actual COM
mercial 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 h right to determine
or define the Character of the papers
thus eligible for discount within the
meaning of this act.
Nothing in this act contained shall
bo construed to prohibit such notes
drafts and bills OF exchange, secured
by. staple ~agricultural products. OF
other goods, wares or merchandise from
being eligible for SUCH discount. bu,
such definition shall not include notes
drafts or bills covering merely invest
ments or issued Or drawn for the pur-
pose of carrying Of trading in stocks
bonds or other investment securities ex.
cept bonds and notes Of the govern
ment of the United States.
Notes, drafts and bills admitted tc
discount under the terms or this para.
graph must nave a maturity at the
time of discount of not more than 81
days. provided that notes. drafts and
bills drawn or issued for agricultural
purposes or based on live stock and
having q maturity not exceeding si1
months. may be discounted I'm an
amount to be limited to q percentage
OF the capital of h federal (regional,
reserve bank, to be .ascertatned and
fixed by the federal reserve board.