Arizona republican., 1916-02-15
RESERVE BOARD
 WOULD AMEND
 BANKING ACT

WASHINGTON Feb 14.-Six amendments to the federal reserve act were recommended to congress today in the report of the Federal Reserve Board for the first full year of oper- ation of the new banking system.
 "A years experience in the oper- ation of the federal reserve act" said the report, has been confirmed by the board in it's profound conviction hat the act has been one of the most beneficial pieces of legislation ever adopted by Congress. Not only have it's fundamental principles been fully ! vindicated but in most details the working of the measure has been successful
 The amendments rec%nmended | would
 Permit national banks to subscribe i and hold stock in banks organized i for the special purpose of doing a ! banking business in foreign countries:
 Permit, with the approval of the i board. the issue of Federal Reserve notes to Federal Reserve banks either against the deposit of commercial pa . per or gold, provided that the gold so deposited shall count as part of the required reserve of the bank
 Extend the acceptance system to the domestic trade so far as it relates to documentary acceptances secured by shipping documents or warehouse re- ceipts covering readily marketable commodities or against the pledge of goods actually sold
 Permit national banks to establish branch offices within the city or coun- try in which they are located.
 Permit advances to member banks against the member banks secured promissory notes or against the pledge of United States government bonds
 Authorize farm loans by Federal Reserve banks within a radius of one hundred miles of place of busi- ness whether in their own or other .. districts
 Tt is believed" said the report that the enactment of these amend ments will. beside enlarging the use- fitness of the National bank greatly strengthen the Federal Reserve act and more completely realize the pur- poses of it's framers"
 The board announced that it does not consider it can direct the business operations of Federal Reserve bank: in respect to foreign loans, but tha | it's function is to- oversee these banks ; A plea was made in the report for tho entrance into the system of nor, state banks and trust companies
 The board expressed regret that il some states suit had been instituted to test the reserve act provisions by which it may grant certain fiduciar, powers to National banks. announced it's intention to have it's counsel in tervene in these cases and said ever. , effort would be made to have tn question soon settled by the Suprem Court. It is pointed out that onl' g state banks have been admitted t the system and s4 others have com in by conversion into National banks
 The report declared that a condition of remarkable ease was the outstand ing feature of the cOuntry's none market during the year
 The discount policy of the boar during the past year was declared t have been proper under the circum stances. but it was pointed out tha as time goes on. there will he a dis position to make these rates nor nearly equal in all parts of tn country. The reserve banks have no been encouraged to indulge in sue Q commercial banking operations as tn law permits, the board said. becaus thereby the danger of imitation migh have been increased and money rate further depressed More active par n ticipation in such transactions by re serve banks may be expected in tn ! fut1ira