Evening star., 1915-04-13
RESERVE BOARD WILL
DISREGARD LAW SUITS
Hold New Act Orders Granting
Rights to Do Trust Business
to National Banks.
Treasury Deficit Continues to Grow.
Good Tone to Local Stock
Market.
BY I. A. FLEMING.

1t is evident from the attitude of the
federal reserve board that 1t proposes
to go on granting the privilege of ex-
erctsins trust company functions to
national banks. properly qualified. re-
gardless of objections made by trust
companies, seeking protection of their
alleged rights. or of suits that may be
filed, etc. until such time as the mat
ter has been tested in the courts.
After the meeting of the board held
Yesterday afternoon, this announce
ment was made public.
AT todays meeting ii was voted
as the sense of the federal reserve
board that the board should not post
pone action granting to properly quail
fed banks the power to exercise the
functions of executor. trustee, etc. De-
cause of any suits that may be filed
or in prospect. their results neces-
sarily being uncertain. Action on e'us-
ouired by the federal reserve act,
which the board is charged to carry
out"
first case at law may be brought in the
District of COLUMBIA. The representa-
tives of the six local trust companies
made strenuous protest before the
board, holding that the District code
made II obligatory that any institution
acting as administrator, administratrix;
trustee or as registrar OF STOCKS ana aa
bonds should have at least s1.OOo'ooo
capital
These six trust companies. making
common cause, made application to the
board for a hearing in the case. which
was not granted. but reauest was
made for a brief on the matter.
Counsel for the trust companies has
prepared an exhaustive brief on the
matter. in which the claim is made that
the board is exceeding its authority
with respect to law In that section of
the code relating to capitalization
The federal reserve board has held
that the federal reserve act, paragraph
X. repeals the law of the District per-
tanning to trust companies:
"All provisions of the law inconsist-
ent with or superseded by any OF the
provisions of this act are to that eX-
tent, and that extent only, hereby re-
pealed.'
Counsel for the trust companies
claim that this paragraph docs not give
the federal reserve board the right to
change existing law or laws.
Further" counsel also holds. that
had paragraph k. the point of conten-
tion. in the federal reserve act, grant
ed to all national banks the right to
do trust business. simply requiring
them to get permission from the fed
eral reserve board. as preliminary to
the exercise of said right. the status
would have been entirely different. for
national banks located here from doing
a trust company business, would have
been repealed under section 26 of the
rese--e act.
Treasury Receipts and Disbursements
The daily statement of the United
States Treasury. dated April 10. shows.
with others, the following items:
'Other securities deposited to secure
circulation April to the value Of $11,-
696.420. decrease Of s195,750.
National bank notes outsta nding de-
creased from $sso.s6O.s54 to ssso.21s.264.
Disbursements exceeded receipts for
the day of April 10 by s336.730. increas
ing the excess Of disbursements for the
fiscal year 1915 to this date to $11s,812,-
0s3. as compared with s56,545.043 for the
fiscal year 1914 to the corresponding date.
The excess of payments over receipts
for the day Of April 10 in the general
fund was $2.0ss,63637. leaving net bal
ance Of s27.379,049.