Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1915-11-19
local WEATHER REPORT.

For twenU-fouv nours. ending at
p. m yestefdog.
Maximum temperature. Ga degrees:
minimum % degrees; range. ll de
sroes, temperature az p. m. "A de-
grces, east wind; clear
~-~~~~~~~----~---~-~o--
be Interpreted lin the narrow sense of
the terms, and NO paper should be
purchased or discounted which had
been issued for the primary purpose
of increasing capital investment in amy
business.
Discount Rates Established.
Having arranged for the payment OF
the capital i'm gold with least burden
to the banks, the board took up the
question of a discount policy and oh-
tanned from each reserve bank it's
views on the rate of discount properly
20 be applied in its region These
were found to vary little and TO run
from 9 20 z per cent; whereat. the
board voted tu set the rates al from
IL To- 8 - per cent with subse-
quent changes which in some cases
brought the rates down TO IL per
cent ON certain mauurities in several
sections and g l-2 per cent in some
other instances.
The establishment Of these rates, it
is explained, prevented member banks
asking for accommodation unless il
really was needed. the rates being too
high for the sake Of undertaking new
operations or extending those already
under way
Reserve Funds Released.
Also, the board, under the law,
readiustcd the reserve ON a lower ba-
sis and cut the percentage of required
reserve i'm central reserve cities from
25 to rs per cent of demand deposits,
with per cent on time deposits. in
reserve cities from 20 per cent to l5
per cent, and i'm country banks from
% to II per cent This is said to have
relieved greatly the situation caused
by the war, although the precise
amount of reserves thus released has
not been. and cannot he, accurately
estimated.
Almost coincidentally with the out
break of the war, clearing house GER
tificates were issued in many cities
ANA large amounts Of emergency cur
rency, this running to about S3S0,oO0.-
600 and the clearing house certifi-
Gates to probably a higher figure
Emergency Paper Retired
On the organization of the federal
reserve banks, the urgent pressure for
note accommodation passed away,
gold reappeared in circulation and the
retirement Of clearing house certifi-
Gates and Of emergency currency be-
gan and proceeded rapidly.
Had the reserve system been IN op-
Grafton at the time of the outbreak Of
the war, say men connected with the
reserve board. those banks would
have supplied the great volume OF
currency demanded and the issue of
clearing house certificates and emer-
gency currency hardly would have
been necessary
Deposits Increase $1,000 600 1000,
According To John Skelton VIII
lams, controller of the currency a
great increase in banking facilities
has developed since the reserve
board began operations. Between
September 10. 1914, and September 2,
1915. there was an increase of seven
ty-five national banks, bringing the
total TO 1913. the increase in capital
lin that period being $S.0000OO.
Total deposits last September ran
Ito $9.229.O00, 600, or $S37,000,000 over
the highest amount ever previously
shown and $1,000. 100000 more than
in September last year
The balances carried with federal
reserve banks on September 2, 1918
were $4,000, ,OO0, as against $9l2,-
o00 600 on juno 30, 1915. Loans ana
discounts. including letters of credit
and customers liability on account OF
.acceptances were S6,S25,00O,00O in
September this year, an increase ol
t..a N.f.f !