New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-05-03
univ II Trust Themselves
70 Controller Williams
Up to May |.
NONE IN NEW YORK
JOIN THE SYSTEM
r.ao,al Boards Counsel Rules
Gold Clearance Fund Part of
Legal Reserve.

,...L,~e.o-. Nav Just seventeen
y. L.~ss and trust companies have
~ NO trc Federal Reserve system
c"' .-.r-e..-g themselves 20 John
n..,.,~ Williams. Controller Of the
Sse-.y.,. according 20 the first issue
t.., v,sc~sl Reserve bulletin. made
O. ~. tc~c tonight. az these seven
p.y' --e arc IN Texas and one IN
T.,l,~r-o~. leaving seven for the
~ fo~tv-sCvCD states. No' one IN
- vo-S has yc' Joined the system.
~ gov o. thc announcement by
c.-.-o,,er Williams yesterday that
Co. Co. s-,,.-a-o~s had been received
,.-.-r Ar-I. the seventeen may be
o-..vIG - .vcrty-rirc before long,
-, srr~s a. the twelve may be nd
..,tt6 IN time 20 help round out the
ave0tccr. ,,..,,..-.-,, 1000,
-. Virginia. only one state bank or
-. co~rary has come into the syS-
49, None o. tncSc institutions N
a.. v-r,ard has come In. nor any in
....s, further west than Missouri.
-5o seventeen concerns arc: Conti-
60 Trus: Company, Washington;
=. savings Bank oF Richmond, Va;
y, Rank Of WoodrIF. Wood~uF, s. C.;
s-v,ys, Bank and Trust Co., Nortgom-
- Ala. Central Trust Company, Chi
~. go. Rank Of Wisconsin, Madison;
Vs-.s-.,Ie Trust Company, s.. Louis;
y-r State Rank, Dallas; First State
y,-s. Rorhsm, Tex; Citizens State
n,k. Memphis. Tex; First GUARANTY,
S.,.s BANK. Pittsburgh, Tex; Farmers
=
fr. Bank Of Eufaula, Eufaula, Ala;
T,-,, State Bank, Savoy, Ten; First
S,,,, Bank. Ham.il, Tex; First State
Brk Wolfe City. Tex, and First State
R,k. Bremond, Tex.
1906 National Banks Join.
National banks have no option about
,,-.,e in. They must, or forfeit the
-, 70 call themselves national banks
ID surrender their charters. So there
y. no, been much difficulty about
srrgng them in. 7,605 having entered
50 .sr. bringing up the grand member
ship 10 1922.
some SUNRISE was expressed tonight
au Missouri. had not done better.
Ia, state received two Federal Re-
,,yre Banks out Of the twelve over
~ protest Of Senator Hitchcock, OF
ystraska. one Of the members OF the
BsrEng and Currency Committee
which framed the law. Senator Hitch
cock though, the hank given 70 Kansas
Civ should have gone 10 Omaha or
further west
Democratic Senator'S and Representa-
.,yes who have the interest Of the syS-
b.
The showing, declaring that a more con-
,ilis.ory and moderate administration
o. the Controllers Office and less OF
he arbitrary attitude shown by the
Controller in the Riggs Bank case
would have produced greater results.
cold Fund Part of Reserve.
Following the announcement several
weeks ago by the Federal Reserve
Board TIA. a gold clearance fund would
Be maintained in Washington to facili-
n,e clearinCs between the twelve Fed
trsl Reserve banks, the board will send
tst tomorrow bulletin IN which
prominent splay will be given 10 an
opinion from It's counsel that deposits
n this gold fund may be counted as
par, Of the legal reserve Of the reserve
banks
N. c. Elliott, counsel for the board.
also gave the opinion that the central
.lnd might be kept N the United
States Treasury. under the custody Of
ne Treasurer Of the United States.
These two opinions and the publicity
s.lg given them by the Reserve Board
&C regarded as highly significant Of
ne trend toward a great central bank
as against the twelve regional banks
provided for % the final disposition Of
ne reserve system.
When il IS realized that the gold
clearance fund viii be a great central
fund in which all the twelve reserve
banks will carry deposits. 50 as 70 make
her total reserves more mobile and
facilitate the movement Of credits,
usny bankers believe that this is an
important step toward the central bank
tes. II the sole idea OF the central
'1nd we're 70 adjust petty differences
between the reserve banks, it was
pointed out tonight. the amounts kept
N the central fund would not run into
'seh biz money that IL would be impor-
h,' whether or not these balances
we're counted as a part Of the reserves
the banks.