St. Tammany farmer. [volume] (Covington, La.) 1874-current, 1915-06-26
GIVES NEW ORLEANS BRANCH
IN FEDERAL RESERVE.
Board Approves Atlanta's Request to
Open Office in Crescent City.


nouncement at / o'clock this after
noon that New Orleans had been
awarded the branch of the Federal
Reserve Bank, in accordance With
the request of the parent bank at
Atlanta, caused no surprise as it has
been known quite positively for
weeks that this decision would be
reached.
The fact that the Federal Reserve
Board announces definitely that this
is the only branch that is to be au-
thorized until the New Orleans insti-
tuition has proved it's worth indicates
the Importance attached to New Or
leans. Scores Of cities throughout
the United States have applications
for branch banks on file.
On the results OF the operation of
the Atlanta branch will depend in a
measure the question Of placing UNI
der the same roof a branch OF the
Dallas bank. 1t is understood that
there is some opposition in Dallas
to the establishment of a branc1ain
New Orleans, but it is believed by
authorities here that the showing of
the Atlanta branch will be such as to
make necessary representation in
New Orleans of the Eleventh Re-
serve Bank district.
It is thought here that P. H. Saun-
ders is the most. likely man to be
chosen as director of the New Or
leans. bank
The boards announcement makes
no definite assignment OF territory
to the branch, but says it is INTENDED
to assign to it member banks of Lou
isiana, Mississippi and Mobile and
Baldwin counties, Alabama. The
banks in the territories SO segregat-
ed will deal with the New Orleans
branch only.
The board announced that the
branch would conduct only opera
tons in discount and purchases Of
commercial paper and acceptances,
and matters relating to clearing col
lection and exchange transactions
and transfers of funds.
1.-THE issue of notes and the func-
ton Of rediscounting with other fed
eral reserve banks" said the an
nouncement, "the purchase of Unit
ed States bonds and notes and deal
ings in warrants Of municipalities,
are to be carried on solely by the
federal reserve bank at Atlanta.
1.-THE operations are to be reporY
ed promptly to the federal rese.y
bank of Atlanta and the Federal Re-
serve Board is to be advised of the
same without delay.
1.-The transaction Of the New Or
leans branch will be considered as
the transactions of the federal re-.
serve bank of Atlanta and so report
ed in the statements of the latter"
Bylaws, salaries, the election o.
directars and other matters of de-
tail, the board announced, will be
taken up later.
while the board continued the
announcement, has carefully con-
sidered the principles which should
be observed in opening branch, il
is not ready at this time to promul-
gate any general rules applicable t.
other points, as it regards the propo-
sition as somewhat experimental.
is felt that the experience gained in
this case will have an important
bearing upon the future develop
ment Of the branch bank idea.
"Incidetally, t may be mentioned
that the banks comprised in the New
Orleans Clearing House Association
have undertaken to make good for
the first year of operation any diff
ferences between the expense of con-
Quoting the new branch bank and
The revenue to be derived from it."
The boards announcement adds
that it ASSUMES the provisions of the
Reserve Act in regard to directors
will be observed.