The Detroit times., 1917-07-17
BANK
TAKES STEP
FORWARD
Peoples State To Be
Member of Federal
Reserve System

The Peoples State bank has peti-
toned the federal reserve board for
admission 20 the federal reserve sys-
TEN OF banking The board OF al
rectors was authorized hy the stock
holders some time ago 20 take this
action This bank Is the largest in
Michigan and one Of the largest in
the entire country outside Of New
York city Because OF this the ac-
tion is considered highly important
IN that IL will have aNbie influence
on other state banks. which II is
expected will follow the lead OF the
Peoples
James r Keena, president OF the
bank says recent amendments 10
The federal reserve act makes mem
bership in the federal reserve sys-
tenn very attractive 10 the state
banks Mr. Keena adds
As the federal law stands " re-
serves 10 tho state bank entering tho
federal reserve system All the rights
and privileges the institution enjoys
undcr its state charter and extends
the rights and privileges granted I'M
der the federal reserve law 10 ma
tiounl banks. National hank officers
their banking privileges and cfn q
cheney hy surrenderlng their national
bank charter. rcorgauizing under the
state law and then joining tho fed
eral reserve System-
The power in state banks 20 loan
money on real estate. mortgages and
20 loan To- customers. under certain
conditions. an amount equal TO one
NTH of tho banks capital stock and
surplus, Is unaffected by Joining the
federal reserve system and - among
the privileges not enjoVed by ma
tional banks already under tho sys-
TEN. which under similar conditions
may loan an amount equal to one
tenth of their capital and surplus
The nrst motive influencing the
directors of this rank 10 vote in
favor OF Joining the federal reserve
system might be termed financial
IA triotism The national govern
ment has established a banking law
which we might say is the codihca-
tion of the banking experience OF
tho civilized world The co-opera-
tion OF the state banks is needed TO
attain the perfection OF It's opera
tion.
Another consideration Is the fact
that Detroit. IN the Judgment ~ tho
federal reserve board. as announced
by Governor Harding on his recent
visit 70 Detroit. should have branch
bank Of tho federal reserve system.
but is not entitled 20 IL now because
the city has only three national
banks as members 81 the reserve sys-
tenn A few state banks here. he
coming members in tho system, viii
bring federal reserve branch bank,
To obtain that bank Is clearly a duty
state banks owe 20 tho city The ad
vantage Of having such branch
hank in Detroit would be very great.
indeed.
The Peoples is living up 10 It's
tradition in thus taking the initla
tive in the movement advocated by
Gov. Harding for the establishment
OF a branch bank OF the federal
reserve system in Detroit The
bank has always been progressive
in policy and pre-eminent in the
strength OF its officers and director
ate--men OF the outstanding ability
OF tho late George n Russell and
George r.. lawson having served II
as president. It's present officers are
rs follows President. James T.
Keena: presidents. John W
Staley, r. A. Schultz. John r. BOD
de. n p Bergman. u. w. Smylie.
assistant to the president, Austin
r. Wing: cashier. II. r. Cudmore;
assistant cashiers, Charles II. Ayres.
Enoch Smyth, A. ". Moody. bond
officer. G. n Lawson; auditor.
George T. Courtney
The last statement showed t3.-
Ss7. .S03.04 in surplus and undivided
profits. and deposits totaling s67.-
654.9999s.