The Washington times., 1914-01-07

ton lot Of Federal National Bank sold
at IS4Ss. The other trading was in
I. fractional lots.
The quotations on Commercial Ma
tiona' Bank were raised to 1S6@l95, but
no stock was available under 1S9, and
that offering price was withdrawn. one
hundred shares sold Tuesday at 1S5.
w. B. Hibbs was back on change
today after a weeks absence from the
city.
Charles ]. Bell is at home today
suffering with a slight attack of grip.
Allan E Walker has been reelected
president of the Firemen's Insurance
Company for the ensuing year. Other
officers reelected were Gorge w. Moss
vice president: William NJ Hoffman,
secretary, and James n. Fitzpatrick
jr., assistant secretary.
Most of the, trust companies Of Wash
ington are stiR considering the question
of joining the Federal reserve banking
system, and are still inclined not to
change their status. They are inter
ested, however, in the reasons for join
ing announced by Festus ]. Wade,
pany of st. Louis, who has long been a
member of the currency commission Of
the American Bankers Association.
Mr. Wade contends that the banking
and currency law does not curtan or
restrict but instead broadens the scope
1f powers and functions of State banks
and trust companies, who become MEM
bers in the following respects:
1T grants to. State organizations sub
stantiaIly all privileges of the national
banking system. except tnI right to act
as reserve agents for national banks.
and the right to issue circulating notes
secured by Government bonds.
cit places State, banks and trust COM
panies under Government supervision
and protection, thus affOrding addi-
and stockholder.
State banks and trust companies are
permitted to discount or rediscount bills
receivable under exactly the same terms
1T enlarges the sphere of state banks
and trust companies by permitting the
acceptance by them Of the obligations
OF solvent customers.
The cash reserves urtde, the new law
viii be: County banks, Il per cent on
demand and 5 per cent on time deposits;
reserve city banks, 10 per cent on de-
mand and per cent On time deposits,
and central reserve banks. Is per cent
on demand and 5 per cent on time de-
posits.
All checks or drafts deposited for
the credit of the member banks SOL
vent customers can be Used the same
day by securing a like credit from the
reserve bank in their district, and, fur
ther, II accommodates the depos1tor
in that he can only De charged legi-
innate fee approximately cost fol max
ing the colIection). This item alone Will
mean millions Of dollaFs Of saving to
the commerce of the country from the
operation Of the present system
''It provides a method bv which all
State banks and trust companies may
become a part Of a homogeneous bank
ing system under the Federal Govern
.sIt establishes a reservoir from which
currency is obtainable at any time under
the same terms and conditions as &C
corded national banks.
.sThe system will ultimately bring
more than 20,000 national and state
banks and trust companies into suodi-
visions of not less than eight nor more
man twelve centers, all being under tn
protC ction of the Federal Reserve
Board, thus marshaling the reserves OF
he nation to meet all needs of COM
lnerce.
%Bv a vote of flve-sevenths Of the
Federal Reserve Board, the force and
power of the entire eight Cor twelye)
rserve banks can, when necessary Dc
concentrated upon any part OF the
United States needing its protection.
The new law creates bank notS
currency far superior to any bank note
issued by any. other government, Whe-
ther it be OF Europe, Asia or Africa"
Mr.. Wade compares the value OF Sc
Curity behind the bank notes OF the
Pank of England, the Bank Of France
and the Reichoank. He also explains
in detail the security behind the re-
serve hank notes of the United States.