Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1915-12-29
BANKS DECLARE
FIRST DIVIDEND
Richmond Institution Pays
5 Per Cent to SOC Mem
Der Banks
IS FIRST BANK TO ACT
PAYMENT of $15l,OO0 Before Janu-
AIRY l Brings Total Bank Dividends
to Half Million Dollars

Richmond Dec 29--Probably the
first of the twelve Federal reserve
banks in the United States to make
a profit return to the owners of its
capital stock, the Richmond Federal
Reserve Bank yesterday announced
) per cent dividend for the beneht
of the 500 members banks of the
Fifth District whose stock subscrlp-
tions make up the present $780, ,O0O
capital of the local institution.
The dividend is payable out of the
net earnings for the period of opera
tion-November =, 1914, to December
81. 1915. The amount of dividend due
each member bank was determined by
allowing interest at the rate Of >
per cent per annum on all capita!
stock payments from the date upon
which such payments were received to
December 81, 1918, except that in the
case of payments made prior to the
dates of call, interest was allowed
only from the dates of call.
A bulletin addressed yesterday by
Governor Seay to the member banks
informs them that the dividend due
each will be placed to its credit prior
to January /, thus enabling the banks
to include the dividend in their earn
ings TO rthe current year. The total
amount so credited will be approx
matcly $l51, 900.
The dividend just declared by the
Richmond Reserve Bank raises to the
half million mark the amount that will
be paid out in dividends by local
banks on next Saturay the first day
of the new year. While the benehciar-
les will be scattered over five States
and the District Of Columbia, the d.
vidends will nevertheless be the pro-
duct, in large part, of the efficient adj
minstraton of an institution whose
success has been in marked degree
traceable to favorable trade and bank
ing conditions created by its loca.
ton in Richmond. 49,.
@>The first bank of the Federal sys-
TEN of twelve to organize and the
first to report to. the Federal Reserve
Board that it was open for business,
the local institution has from the
beginning set fast pace for its elc-
ven sisters 1t has for months been
the biggest moneymaker of the. twelve
in proportion to capital stock. AS far
as icould be :lealaed: yesterday. it is
the first to declare a dividend from
its net earnings.i
The Federal reserve act provides
that, after ..all necessary. expenses of
Federal reserve bank have been paid
or provided for, the stockholders shall
be entitled to receive an annual di-
vidend of 6 per cent on the paid-in
capital stock, the dividend to be Gu
mulative. Earnings in excess of per
cent are to be turned over to the
government.
The net earnings Of the Richmond
Federal Reserve Bank for the period
of operation, after deducting all cur
rent expenses, will be approximately
6 per cent on the capital paid in for
the average time of employment. The
directors, however, deducted also a
certain proportion of the expenses in
currel previous to and during the pc
riod of organization, thus reducing
the net amount available to approx
mate the dividend of 5 per cent, which
was declared. The unpaid proportion
of reorganization expenses will be
paid the same way-out of future
earnings.
''But for these unusual expenses"
says Governor Seay in his message
to the member !: banks, "the
bank would be able to pay the
full 6 per cent which members are
entitled to receive after all necessary
expenses have been paid or provid-
ed for. The dividend being cumulative
the difference of per cent will be
paid to members out of future earn
ings."