The Birmingham age-herald., 1916-02-15
ANNUAL REPORT OF FEDERAL RESERVE
 BOARD GIVEN OUT
Six Amendments to Act Are Asked-TO Approve Es- tablishment of No More
 Reserve Banks

Washington, February 14.-Six amend ments to the federal reserve act were recommended to Congress today in the report of the federal reserve board for the first full year of operation of the new banking system.
 "A years experience in the operation Of the federal reserve act" says the re- port, has confirmed the board in it's profound conviction that 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 vindicatcd but in most details the working of the measure has been successful.
 The amendments recommended would:
 Permit national banks to subscribe and hold stock in banks organized for the special purpose of doing q banking busi- ness in foreign countries.
 Permit, with the approval of the board the issue of federal reserve notes to fed eral reserve banks either against the de- posit of commercial paper or gold, pro- vided that the gold so deposited shall count as part of the required reserve of the bank.
 Extend the acceptanct system to the domestic trade so far as it relates to documentary aeceptances secured by shipping documents or warehouse re- ceipts, covering readily marketable com modities or against the pledge of goods actually sold.
 Permit national banks to establish branch offices within the city or county in which they are located
 Permit advances to member banks against the deposit or pledge of United States government bonds.
 AJfhOliza a xryid ;,, +l,, ing of farm loans by national banks so that a federal reserve bank might make proper loans of this kind within a ra- dius of 100 miles of it's place of business whether in it's district or another district.
 Tt is believed says the report, that the enactment of these amendments will, besides enlarging the usefulness of the national banks, result in greatly strength ering the operation of the federal reserve act, and more completely realize the pur- poses of it's framers"
 The board announces that it does not consider that 1t can direct the business perations of federal reserve banks in respect to foreign loans, but that it's function is to oversee these banks A plea is made in the report for the en- trance into the system of more state banks and trust companies.
 The report declares that condition of remarkable ease was the outstanding feature of the country's money market during the year It says that the na- hon's export trade has reached high water mark, that manufacturing in nearly all lines is active and that it ha been the part of wisdom for reserve banks to conserve their resources and hold themselves in readiness to meet any unexpected developments in the situa- ticn.' An increase of almost. S1, ,0OO. 900 00O in the combined loans of national banks In the year and an increase of deposits of nearly $2,G0o,O00,O00 are pointed to as permanent in considering the situation.
 The board, the report announces, is considering the establishment of branch agencies of reserve banks in cities other than those where such banks are located and for the present does not expect to approve the establishment of branch re- serve banks. The banks have taken ad vantage of this function