The Birmingham age-herald., 1915-05-13

at lea st eaual to the net indebtedness due
 to all federal reserve banks as or May 24 Each federal reserve bank Will De re-
 ouired to keep at all times in this fund a balance of not less than N000,ooo, ana
 this balance will count as part or It's
 lawful reserve. At the close of business
 each Wednesday night tor when NedneS
 day Is a holiday, Tuesday night each led
 eral reserve bank will telegraph to the
 federal reserve board the amounts In eVen
 thousands due to the other federal reserve
 banks as of that date and on each
 Thursday the settling agent of the fed-
 eral reserve board will make the proper
 debits and credits in the accounts of each
 federal reserve bank with the fund, tele-
 graphing each bank the amounts, In even
 thousands of credits to it's settlement ac-
 count giving the ns<nes of each bank
 from whom received, and also giving me
 net debit or credit balance in the weekly
 settlement Proper debits and credits Will
 then be made upon the books of each fed
 eral reserve bank. In case the debit set clement balance of any federal reserve
 bank should be in excess of the amount to it's credit in the gold settlement fund,
 gold certificates or gold order certificates
 in the treasury or any subtreasury or
 by credit operatio which term includes
 rediscounts with other federal reserve
 banks which have an excess balance in the gold settlement fund. Excess balances
 may remain in the fund to the credit Of
 the banks to whom they are due, or they
 may. if desired be refunded by the return
 to the reserve bank of gold order certih-
 cates, properly indorsed or of gold cer-
 tif1cates payable to bearer, and whenever
 practicable payments will be made by the nearest subtreasury.
 Earnestly Desires State Banks "I am violating no confidence when l
 say that the federal reserve board de- sires earnestly to have the state banks become members of the federal reserve
 system. The board feels that the member ship of the state institutions is essential to the cor-ordnated banking system that it wishes to establish, and realizes that there can be but one credit system of na- tion- wide extent 1t fully appreciates that the strength of the federal reserve system must be gauged by the quality of it's members. rather than by number and it will use all the broad discretionary powers vested in 1t by the federal reserve act to bring about this coordination. It seeks to establish only such reasonable standards of admission as will be gener- ally recognized as necessary to protect the federal reserve system against the ad- mission of banks which would be source of weakness rather than of strength, and lit intends to prescribe only such regula- tions governing their conduct as members as will insure reasonable conformity to the fundamental principles deemed essen- tial to the success of the new banking syr- tenn The banks of this country are be- ginning to realize that membership in the
 federal reserve system carries with It priv ileges and guarantees of great value, not only to themselves but to their GUS toners as well. It is believed that mem
 bers1ip in the system will come to be re- garded as a test of banking solidity, and that membership, giving as II does full access to the facilities and resources of the system. will add to the prestige of even the strongest institutions, so that in the course of time the public will, instead of drawing distinction as hereto fore between national banks and state banks. will distinguish rather between banks which belong to the federal reserve system and the banks which do not be-
 long, SO that ultimately little importance
 will attach to the terms national banks
 and state banks, and banks will be clas-
 sifed as member banks or nonmcmber ba anks.
 Section of the federal reserve act re- 0liiras that sfafa banks hsanminR uaazn has.