Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1916-06-02
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Department
Under the new banking law do the
federal reserve banks do a general
banking business? How are they or.
sanized and governed?
They do not do q general banking
business. A federal reserve bank does
not do business with the public in the
sense that banks usually do. It might
better be described as bank Of banks.
1t is made depository for a certain
proportion Of the reserve Of all the
member banks, in addition may also be
a depositary for government funds.
An important function is as a bank of
issue and redemption Of currency. for
1t may secure from the treasury gov
eminent notes known as federal re-
serve notes, which it is authorized to
issue against commercial paper. with
a minimum gold reserve Of 40 per cent.
Besides this. federal reserve banks
have certain powers in the matter Of
operations in the open market, such
as the purchase Of commercial paper,
foreign exchange. etc.. and in general
way are expected to perform impOr.
tant functions as clearing houses be-
tween their member banks. Each fed
eral reserve bank has nine directors,
three Of whom represent the member
banks, three represent commercial, ag
ricultural or other Industrial pursuits
these six being chosen by the mem.
Der banks) and finally three govern
ment directors chosen by the federal
reserve board. These nine directors
are charged with the duty of appoint
ing all necessary officers. including the
active manager of the bank. who is
designated as its president or Cover.
nor.
Please tell W why the law establish.
ing national banks did not permit them
to lend money on real estate.
National banks were not permitted
to lend on real estate because 1t Is a
fixed form of investment, and a com.
mercial banks loans should be for
short time and for such purposes as
will return the money to the bank in a
limited period. Nearly all banks
liabilities dts deposits) are payable on
demand, and therefore its assets should
be as nearly as possible payable on de-
mand, or within a short time. Country
banks can loan on real estate to q
limited extent under the new law.
Of what nations 10 il true that the
sun never sets on their dominions?
Does it include the United States?
It is not true of the United States.
our possessions, widely extended as
they are, occupying such positions that
some portion of them is always below
the horizon and therefore in darkness.
The only nations on some part OF
whose possessions the sun Is always
shining are Great Britain, France and
Holland. British possessions are scat
tered far and wide over both hem
ispheres, so that. while the sun may
be setting on one 1t Is rising on an
other. The French possessions consist
for the most part Of numerous small
islands in the Atlantic, Indian and Pa
ciflc oceans. with continental terrific
ries In South America, Africa and ASIA
and accordingly are SO distributed that
the sun is always above the horizon
Of some of them. The foreign posses
sions Of Holland are far more extern
sive than most people imagine. With
the exception Of Dutch Guiana, in
South America. they consist Of two
groups of islands, one on the coast Of
Venezuela and the other embracing
Sumatra. Java. Celebes. portions of
Borneo and New Guinea and host
Of smaller islands scattered through
out the East Indian archipelago, ex-
tending over forty-six degrees Of longi-
tude. These. with Holland itself, are
so situated as to their difference of
longitude that the sun is always shin
ing on some Of them. Daniel Web
ster once made use of the fact when
he referred to Great Britain as "a pow
err which has dotted the surface of the
whole globe with her possessions and
military posts. whose morning drum.
beat, following the sun and keeping
company with the hours. circles the
earth with one continuous and un.
broken strain of the martial airs Of
,, England
When Texas was an independent ma.
ton, whore and what was its capitai7
Some argue that II was Houston, others
San Antonio, while others say il was .
city now obsolete.
San Antonio was the capital of the
old state or province Of Texas while
1t belonged TO Mexico, but not after it
was annexed to the United States. Its
two capitals have been Houston. 1896
to 1889. and Austin since 1880.
Who was II that said, "If you will let
mo write a nations songs ! care not
who makes their iaws?"
The expression seems to have had
singular origin. it's putative father be-
ing Andrew Fletcher Q655-1716). a
ScOtchma1i, who divided his time be-
tween politics and literature. In let.
ter to ncbleman of the period fetch
er said. II know very wise man
who believed that If man were per
mitted to make all the ballads no need