Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-02-15
DI>tnt VT POLICY PUOPER
UNDER tIRtt INSTANCES

Th' discount policy or the board dur
ing Tho past year IS declared 10 have
boon Tie proper on. under the existing
circumstances, but /. Is noin;cd out
Ihat ~ time COOS on there will be :,
disposition 10 MAX" these rates as
nearly equal ~ All parts 81 tho country
=" Is poSsihl" The reserve banks have
not been greatly encouraged 10 indulge
in such commercial banking operations
as the law permits. omen market
operations as til" act term. them. the
hoard says, hccans" thereby the danger
90 Imitation might hHV" been incrca scd
and money rates further depressed
Nor" activ" participation in such trans
actions by reserv" banks MAJ be on
p"cied tn the future
Tn" board. The report announces. IS
considering the establishment Of branch
agencies OF reserve banks In cities
othr, than those where such banks
ar" located and for the present does
n"i cNnect 10 approve the establish
m"nt Of branch reserve banks The
clearing operations OF the banks. I,
SAYS. hay. proved success bur too
few Of the hanks have taken ADVANTAGE
of this function.
Concerning the establishment; Of
branches ana agencies, the report saws.
TIL" question OF branches OF Federal
reserve banks has received careful a. :
'trntion during the past year. In,iInn
Won has been received from several
quarters that The establishment Of a
hrnn"h ~ given point would he ac-
Icoptanl" to IN" banks Of that place.
ipnIN in ono nstancc--tlat Of New Or
iearns--did the hoard receive a definite
request from a Federal reserve bank
TO establish branch. Relieving that
New Orleans and the adjacent territory
could make advantageous use OF this
addif i"nal banking machinery tn.
board authorized the establishment of
Il branch OF the Federal Reserve Bank
i"f Atlanta to he located i'm New or,
leans. and this branch was opcncd FOR
business on September 10. Operations
lat the New Orleans branch have pro-
cccdcd satisfactorily. anh III. insti,u-
tion has been of considerable usn to
tho local banks. Tho branch is already
more than self supporting.
| "Tnvcstigatiou AMI experience have
seemed TO show that. at lcas: :or some
years TO come. the organization OF
hIanChcs with completely .auipped Of
&c, 3, vaults. and the like. and with a
full staff of salaricd officials, will he
too heavy an expense for most Of tho
reserve banks 10 incur. Yet. that valu-
able service could be performed by 90
cal offices of the several BANKS In not
Ia few places. The board has therefore,
hau under consideration the question
whether establishing local agencies
might not meet the requirements of the
case bette than the more fully or
gauizcd branch office. Comuetcn. legal
opinion is to the effect that the crca-
ltion of such local Offices is permissible
uu,'cr the terms Of the law and the
board believes that it may provo irac-
ticahlo to meet banking necessities in
many sections OF the cOu.i.:': by Ills
means.
CHANGES IN DISTRICTS
UNDER CONSIDER iTIoN
practically ms soon as II was or
ganiZcd the board received applications
from various cities and districts ask ing
for changes in the adjustments that
had bccn made by the organiZa, ion
committee. under the boards general
power to review the findings Of that
body. AS set forth in its first report. IL
appointed dates for tsc hearing Of each
case. and on May il announce de-
cisionS rcadjusting the boundaries he
tween the first and third, tho nounda-
rics between tho fifth and fourth, and
tho boundaries between the zenith and
eleventh districts.
"'rhc appeals presented hy the cities
OF Pittsburgh and Baltimore, which re-