Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1914-10-07
WTLLLOSE NO TIME
IN ORGANIZATION OF
RESERVEBAN HERE
Directors Will Meet Tomor-
row to Arrange Preliminary
Plans-May Select Site
for Institution.

Many duties preliminary to the estab.
lishment of the Federal Reserve BanR
OF Philadelphia will devolve upon the
nine directors of the institution at the
first meeting of the board for organi-
cation tomorrow. The meeting will ba
hold in the offices Of the Girard Trust
Company, and begins at noon. Richard
J l.. Austin, class G director, who was
designated as chairman Of the board by
the Federal Reserve Board, will preside.
Probably the first thing to be taken
up will be the terms which the respective
directors of classes A, B and G shall
serve. The federal reserve act. under
which the Federal Reserve Banks are
created. provides that the directors shall
designate among their number in all
three classes which shall serve for one
year from January 1 nearest the time
the first meeting Of the full board 10
held, one who shall serve two years and
another three years. After the first
terms expire directors shall be elected
to serve for three years.
1t 10 thought that the directors may
also name the governor and vice governor
of the bank and the advisory counsel at
the meeting tomorrow. 1t Is not incumbent
upon the board to take this action at the
first meeting, however. For governor,
Charles ]. Rhoads, class A director, is
being spoken of as the probable choice,
while Levi l.. Rue, president of the Phila-
delphia National Bank, Is mentioned as
advisory counsel.
Location of the bank may also come
up for consideration. It is felt In banking
circles that the bank should be located
near the Subtreasury and the Clearing
House, and for this reason a site in the
eastern part of the business section Is
generally favored. The old Western Ma
tional Bank, in Chestnut street above
Fourth, Is the most likely of the sites for
the bank, IL II Is kept in mind that the
bank should be down town. 1t has also
been suggested that the bank might be
started in the Subtreasury. Many changes
would have to be made in the vaults OF
that institution If this were done,
At some later time the Federal Reserve
Bank of Philadelphia will establish
branch banks. These branch institutions
will he operated by seven directors, four
of whom will be appointed by the Re-
serve Bank and three by the Federal
Reserve Board. One of the directors will
be made manager.
WHAT BANKS WILL SUBSCRIBE.
AS there are 756 national banks located
In District No. 8, of which Philadelphia
will have the Reserve Bank. the institu-
ton In this city Will SldII puslhSSs WIN
an authorized capital Of approximately
$I2, ,494 S92. The capital stock and surplus
of all the banks in the district is $685.
24S, ,2o4 and the banks are required to sub
scribe to the capital stock of the Reserve
Bank in an amount equal to 6 per cent
of this sum. The 80 national banks in
this city alone will subscribe to S3732,9OO
of the stock. One-sixth of total amount
or 81, ,4S2, is payable at once, Phila-
delphia's share being 1922 $50. Another
sixth is payable within three months and
one-sixth within six months. The pay
ment of the remaining three-sixths will |
be at the call of the Federal Reserve |
Board.
AS these payments must be made In |
gold or gold certificates 1t will be seen |
that with this city's share of s62315 |
added to the s2,oOOOOO which has just
been deposited for the foreign exchange
pool of 800, 600 coo, the stock OF gold in
the vaults of Philadelphia institutions
has been pared down s2,62215O. If the
Gold Fund Committee calls for the re-
naming rs per cent of this city's sub
,cription to the pool, which will be $6,-
100 600. total of sS.622.15O in gold or gold
certificates will have been taken from
1t is estimated that the
gold holdings here before these calls
we're made were s3ooO0,OOO