Imperial Valley press., 1917-08-03

70,243 animals, the increase being 20
Fer cent last year, although 5000 were
killed for meat and skins. These ami
mails provide the useful combination
of food, clothing and transportation.
The meat is said to be excellent and
s,lsl at 20 to 35 cents in Seattle.
Shipbuilding is nconceivably active
and continually extending for both
wood and steel ships. 1t is said that
at the present rate OF expansion this
industry will soon assume an import
arce equal to that of the entire ag-
ricultural production west of the
Rocky mountains.
Lumber production is apparently at
maximum, stimulated by increased
construction of wooden ships and army
environments.
Labor shortage is becoming serious.
Considerable in Arizora mines has
leen caused by l. w. VS., of whom
several hundred have been dcported.
They have also made ominous threats
in the Northwest. In some places
United States troops have been called
cut to maintain order.
On July II A. Kains resigned as
governor of the Federal Reserve Bank
oc San Francisco in order to accept
the presidency of the American For
cign Banking Corporation of New
York, now organizing. His successor
has not yet been chosen, it being the
purpose of the board of directors to
choose deliberately, seeking through
cut the district for the one whose
merits best qualify him to for the
responsible post. The position of as
sstant federal reserve agent, created
ly recent amendment of the Fed
eral Reserve Act, has not yet been
filled
The amendment to the Federal Re-
serve Act causing greatest departure
from motheaten traditions is the pro.
vision that the only required reserves
of member banks will hereafter be
balances with the Federal Reserve
Bank equal to specified percentages
Of deposits. While these balances are
designated reserve, they are in prin-
ciple not cash reserve, but capital in.
Nestment in an agency supposedly
strong enough and willing to redis-
count at any time to any reasonable
amount. That this is the character
cf these balances is shown by the fact
that although legally withdrawable,
any deficiency below the required per-
centage is taved at 61s per cent per
allnum, while short paper may be re-
discounted at 8 Y per cent. The obvi-
Gus incentive is given t. maintain per-
rlanently the so-called reserve balan-
ces at the full required percentage,
supplying recurring needs for till mon
ey by rediscounting the shortest pa
per available. The Federal Reserve
Bank, by the maintenance of it's goli
reserve, is kept in the strongest po-
sition for sustaining its member
banks. There is thus an end to the
fetish of cash reserves which have SC
Invariably proved inadequate under
every stress. Instead, the real re.
serves of member banks will hereafter
he their paper eligible for rediscount
with the Federal Reserve Bank. A
bank will be in sound and liquid po-
s.tion in proportion to the quantity and
quality of its eligible paper. AS this
comes to be understood, preference will
grow for trade acceptances and bank
ers' acceptances.
The Spokane branch of the Federal
Reserve Bank has been organized and
will be prepared to render service sim
liar to the head office to member
banks in its territory, which will be
substantially that known as the Inland
Empire. Through this and other
branches to be established later, the
benefits of the changed methods in
banking will be much more completely
extended to all sections of the dis
trict than would otherwise be pos
sible.
San Francisco Clearing House banks
pow settle Clearing House balances
| t. checks on the Federal Reserv,
hank, one member bank having opened
q deposit account with the Fedora
Reserve Bank for this purpose. Los
Angeles Clearing House Banks hav;
adopted a plan by which the Clearing
House Manager Immediately after tn;
exchange Of checks telegraphs the re
result to the Federal Reserve Bank
hch debts or credits the respectiv.
accounts and wires back confirmation