The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1916-02-14

so utpoSlltu SHdl 'oui' "' 49,
the required reserve of the bank;
Extend the acceptance system to
the domestic trade so far as it re-
lates to documentary acceptances Sc
cured by shipping documents or ware
house receipts. covering readily mar
ketable commodities or against the
pledge OF goods actually sold.
Permit national banks TO establish
branch Offices within the city or coun-
nv in which they are located,
Permit advances to member banks
against the member banks secured
promissory notes or against the de-
post or pledge OF L. :. government
bonds
Authurize a wide discretion in the
making of farm loans by national
banks so that a federal reserve bank
might make proper loans of this Kind
within a radius of one hundred miles
of its place of business, whether in
its district or another district
at is believed says the report,
that the enactment of these amend
mcnts will, besides enlareing the use
fulness of the national banks, result
i'm greatly strengthening the operation
of the federal reserve act, and more
completely realize the purposes of
its trainers
The board announces that it does
not consider that it can direct the
business operations of the federal re.
serve banks to foreign loans, but that
its function is to oversee these banks
\ plea is made in the report for the
entrance into the system of more
state banks and trust companies.
| In speaking of foreign borrowing in
I the United States, the board points
out that it has received many in
ouiries on this subject and has giyer
them careful attention. 1t has reach
ed the conclusion, it says, supported
by competent legal advice, that the
purpose for which goods are sold ol
exported. or the use to which suci
goods are ultimately put" does no
fall within its province or jurisdic
ton
"If." the report adds, "the trans
actions which have given rise to sucl
sales or shipments are of true com
mercial nature. if the basis upol
which they rest is such as to compl,
with the requirements of the fedora
reserve act, and if the maturity o
the loan falls within the limitation
of the law, then the paper CROWNS
out of them, no matter by whom o
for what drawn, may at will be dis
counted Icy federal reserve banks, an
must be regarded as falling With
/, the legitimate sphere of their oper;
tons The federal reserve act make
no provision for collateral bond @
stock loans or for the purchase {
foreign governments obligations b
reserve institutions. Neither such o'
: legations. therefore, nor loans I
member banks based thereon. al
eligible as investments for federi
| reserve banks.
Il The operation of the reserve sy
| TEN is a matter of business to
| conducted in accordance with II
| terms of the reserve act and the reg
| lations of the board. II is not Il
| province of the board to deal wi
| problems involving international I
lationships of the United States, cit
| cr for the purpose of restricting
| extending expectations in one dire
| tion or another The eligibility
paper for reserve banks is detormin,
| by considerations which are as val
under one set of international rel
tionships as another; the function
| passing upon and dealing in such p
per under these regulations holon
| TO the several reserve banks. TT
| board. however believes that Il
, financing of the comtry's export tra
is at the present time one Of Z
most important financial problor
with which the nation has To doa