New Britain herald., 1915-06-10
RULES MADE: PUBLIC EBY RESERVE BOARD
Which Govern Membership of
 State Banks and Trust Co.'s

G z Washington. June 10.-Rules and regulations to govern the mem bership |of state banks and trust companies Fn tee Federal Reserve system were made public yesterday by the Federal Reserve board In announcing the fegula ations, under which the right is geserwed to exercise Judgment and discretion in considering each indi- kidual application, the board said: "kppreciating fully the strength f the federal reserve system is to e measured by the quality and char &cters Of it's members, rather than by heir numbers, the federal reserve board is prepared to use the board sscretionary power vested in, it by De federal reserve act to bring about 1e generalization of different types bsnking institutions on basis of kuity and practicability. The board hs sought, in the regulations govern the admission of state banks and ust companies, to establish only lch reasonable standards of admis- on as will be generally recognized necessary to protect the federal serve system and the national banks hose membership in the system is kligatory, against the admission of hy bank which would be source weakness rather than of strength Id to prescribe such regulations gov kniDg their conduct as will insure Reasonable conformity to funda- ertal principles deemed essential to success of the new banking sys- AA Eligible Corporations.
 The regulations make eligible nls and trust companies incorpor or- "a under state laws, having paid capital of s25,000 in towns of 0o eor less; $5o,ooO in towns of i'm 5000 to 5000; $100,O0,o in vns of from 5000 to 50,0oo, and O0, eco, in cities or more than 50.-
 Such banks would be allowed \ask for reserve bank stock to the punt of 6 per cent, of the capital surplus of the applying bank. en the application would be in- tigated by a committee consisting the district federal reserve agent, governor of the reserve bank and airector of the reserve bank, whose pmm endati ton would be submitted heSfederal reserve board.
 Points Considered.
 h passing on the application the owing points will be especially sidered W
 The financial condition of the ap- Ing bank or trust company and general character of it's manage WfXgxher the laws of the state in ch the applying bank is located lain provisions likely to interfere
 the proper regulation and su- ision of membership banks.
 Kights to Impose Conditions.
 ssuing a certificate of approval board reserves the right to inn
 such conditions as will insure plianre with the federal reserve and the regulations. '
 late banks entering the system
 be allowed to invest sonly il IS on real estate and mortgages Of aaracter and to an extent, which eidering the nature of its liabilities .11ot impair it's liquid condition.
 nshan maintain such improve- ts And changes i'll it's banking tice as may have specifically re- ga by 1t by the federal reserve "a as a condition of it's adnis-
 
 Ten Per Cent. Of Capital.
 5ans by bank on it's own stock 6g a single borrower, would be
 ad to 10 per cent. of it's capital surn2us of 30 per cent. of it's
 pAffet1 capital.
 method is provided for state
 withdrawing from the system
 elye nonths' notice. The board
 afices it's intention of acceptiug 0ifiations of state banks by the
 Authorities when conditions arc factory.