Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1915-05-31
STATE INSTITUTIONS NOT VOL.
uNrEERlNe TO JOIN FEDERAL
RESERVE.
NONE GOES IN EXCEPT
THOSE UNDER coMPuLsIoN
Some Nationals Reported to 1s Con.
siderins Abandoning Charters and
Becoming State 6anks-Mueh Inter.
est Among Bankers Of State Be.
cause Of Unexpected Situation.
pec:al to Times-Republican.

Special to es-Republican.
Des Moines. May Silt is expected
that on the program OF the state bank
ers' convention this year there will be
given considerable time to the matter
of the effort to induce state organized
banks to become members Of the fed
eral reserve system. AT some OF the
group meetings held, a place has peen
made for representatives of the system
to present the matter to them care
fully. While these appeals for help are
heard with interest 1t is declared that
thus far not a single bank has joined
the reserve from Iowa save and except
those that were under compulsion TO
do or lose their charters.
Some of the banks organized under
national laws have been doing some
feeling around with view to getting
into the state banking system, but this
movement is being distinctly discour-
aged by the state banking department
and officials generally interested IN
banking. 1t is recognized this Touii
be something of a blow to the plan for
centralizing. Leading bankers really
hope the. reserve system will be made a
success and that regulations can be so
modified that the banks organized un-
der state law will be willing to join.
There will be much interest III forth
coming reports from the reserve banks
on bushes done. The reports show
that during May their resources, Tor
the first time, diminished. On the May
IA statement they had $685. 900 re-
sources and a week later s362,4T4,0OO.
The bankers say they are watching
this situation with a good deal OF
anxiety.
One of the financial journals recently
printed a statement that of the 2i,ohO
banks of all kinds in the United states
30 900 Of them are not national banks.
This shows the minority in which the
na tional banks stand as to the entire
banking system Of the country. In the
matter of aggregate Of deposits the
showing is not much better. i ne ma
tional banks have s11. 400,ooo,ooo; the
trust companies about $o,ooo,ooV.Voo'
and the other banks s2e, 000, oo0,o oo. II is
therefore argued that In order 10 MAKE
the reserve system success the sss-
tenn must include certainly more taah
the national banks.
Just what will be the effect OF the
interstate commerce COMMISSION
cision in the packing house products
case Of the Rath Packing Company
Waterloo, against the Great western
is not yet known. 1t may have the
effect of causing readjustment OF va
rious rates, so 1t is stated. The com
pauy protested against the injustice OF
a rate of Is cents to Chicago as against
Is cent rate from Ottumwa, Mar
shalltown and other points. The &C.
cision was, in effect, that the discrim-
nation was illegal, that the Great
Western can not charge more Tor the
shorter distance than for the longer
one but might charge the same rate. II
was also held that the 16-cent rate
from Waterloo was not shown to De
unreasonable. Then there was also
decision to the effect that the Mime
apolis & St. Louis and Illinois Central
might make rate for the longer dis-
lance tc meet the short haul compe-
tition. The result is that the Great
Western will have to either raise rates
at some points or reduce them at otn-
ers, and naturally it will raise them
But il other roads do not Join In the