Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-01-01

20 give up their government deposits,
which, on August 3. 1913, amounted TO
lS2lSg8.0O0
Mr. BulHey points out that under
his calculation. the country banks viii
have Withdrawn from the reserve city
banks s1G2,27iO00, which with the
payment Of about s13S,499,0 70 be
made ON account OF the reserve city
banks. will give s30O,770,O00 which
the reserve city banks will have to
pay over TO the new federal reserve
I banks Their cash holdings on August
4 o, last, aggregated $240,946.000. If
they deposit per cent Of their ag-
gregate deposits in the federal re-
servo banks they viii have TO keep 8
per cent IN their own vaults, making
d total Of Is per cent required This
= per cent cash reserve would be 1854
$4,000, releasing ss6,2O9,00O, which
they now hold
Balances In City Banks.
I The balances OF the reserve city
banks with the central reserve banks
4 in New York, Chicago and st. Louis
aggregated s226,327, 900 on August 3,
last. In order TO make his computa-
lion conservative, Mr. huxley es-
timated that these banks, In spite Of
the fact that they are not now al
lowed to count that money as re-
serve, would desire to keep abou
fourth Of the present balances
with these central reserve banks foI
purposes Of exchange and business
reasons
II this should be the practical re-
suit, then It would release from thu
balances with the central reserve
banks, which they would be free tC
draw down, about $le9,745,000 Mr.
Bulkley estimates that city resery
banks viii have to pay total o
$500, 10000 TO the new federal re
serve banks According to the com
putation made by Mr. Buckley, thu
reserve city banks win be able TO pa!
$50, 209, 600 of this amount in cash
si69,745. 0008by draft on their centra
reserve agents and the rest Of tn
amount Of S30o,77O,0 600 win have t
be paid by rediscounts with the fed
eral reserve banks. Their fore, Nj
Buckley estimates that the resey
city banks will have 10 redlscoun
with the federal reserve banks . IN
: amount Of about s4fSl6.O0o.
Reserve City Banks.
The central reserve city banks oi
August 3, 1913, had net deposits o
Si,619. 1885, coo. from which the with
drawals mentioned above would hav
TO be deducted. The table prepare
by Mr. Buckley indicates that N
= country banks would withdraw SOS,
: 10000 from the central resery
cities and that the reserve city bank
would withdraw Sl69,7iI000 frof
the central reserve cities. This woul
Indicate a total withdrawal on IN
part Of the correspondent banks q
Z S27I925,0o0 leaving sl,34t, 1900
p net deposits subject 20 reserve rc
g quirements
I Against this the central reserve cit
banks would deposit seven per cen
. with the new federal reserve bank
approximating about S93,sas 600. Th
government dNposita amounted I
SI,f58,O00 ia the central reserve cit
banks on August 3. and the 9 p,
e cent subscription On capital stock All
? surplus would amount 10 SIC, 422, 90
2 making total OF S10s,77s, 900, whic
T the central reserve city hanks Of Ne
E York. Chicago and So. Louis will has
i to pay TO the new federal reser'
banks for their own account IT
" payments which the reserve ca
{ banks will require them to make VI
II be about &169, $4,000 and the coui
e try banks will draw against them +
: $l0S,1S0,000, making $SS6.703,00O
n the aggregate that the central reser'
u city banks viii have to pay over
e. the new federal reserve banks.
Il The cash holdings Of the three ce
IS trial reserve city banks on August
e, aggregated S407,51S,O0O. and 4
u amount of the reserve required und
lie the new bill, Il they deposit : p
cent with the federal reserve banl
r will be IL per cent, which they W
& have to carry in their own vaul
ie This is expected TO approximate Sl4
as $4,000. That, Mr. Bukley Gale
IS lates, viii release s259, 1868. 600 of ca,
and lie asserts that the central !
r. serve city banks can therefore y
lie to the new federal reserve ban
re S2b9.g68, 000 IN cash. They will IN
ne probably have TO rediscount 10 I
III extent Of $t26,54o,o0o, making
4 tai payment OF SSS6,7O3O00