Evening star. [volume] (Washington, D.C.) 1854-1972, 1917-01-31
RESERVE BOARD WORKS
!; TO BROADEN CONTROL
Proposed Amendments to Law Step
to Increase and Enlarge the
Scope Of the Act.
Local Securities Show Fair Activity
With Strength In Mergenthaler
and Washington Gas.
BY I. A. FLEMING.

Slowly, and yet with considerable
ereasing the powers Of the system I'M
der it's charge.
Amendments now before Congress
and which will probably be enacted
will result in the transfer of all neces-
sary reserves of the 7,0eo-odd member
banks to the care of the twelve regional
Institutions, several months in advance
Of the da to set in the original law. This
will then give to the federal reserve
banks all the surplus reserves of the
national banks, and the cash in the
till" Of the various national banks will
be based on the immediate needs of the
institutions.
1t looks very much as if the board
might seek, later on. to make its clear
Der banks, thus wiping out any eX-
change profits that are still possible.
The transfer of reserves from CEN
trsl reserve and reserve cities to the
regional banks has been a source of
loss to bankers, who have been accus-
toned to receive per cent interest on
such reserves. After the passage OF
the amendment the bankers will re-
ceive no interest whatever from the
regional banks, nor do they on the re-
serves which the regional banks have
been holding since their formation.
The regional banks. with the added
millions in their possession, will be
able to enlarge their own field of OPP
erations and will be in even more
marked competition with the banking
fraternity in the field for paper and
acceptances.
With the reserves of the member
banks concentrated in the regional
banks of the federal reserve system
there will be eliminated all possibility
of a bank being short in its reserves.
even in times when money is in very
active demand, and it will be the first
time that absolute assurance of this
kind has been possible
There is much satisfaction to depos
itors in this. Then, too, there is posi-
tive assurance that all of the required
reserve is being safely held-not one
mans word, but the double che cking
system of owner and custodian.
Old Dutch Market
Stockholders of Old Dutch Market. at
their annual meeting, held in Alexan-
dria. Va. elected the following direct
ers: D. J. Callahan, D. B. Casley, John
Dolph, A. D. Marks and ]. A. Whitfield.
Subsequently the directors organized
and elected the following officers for
the coming year: ]. A. Whitfield, presi-
dent: D. B. Casley. vice president and
treasurer, and A. y. Mandell. secretary.
Condition of the Treasury.
The condition of the United States
Treasury at the close of business yester-
day was:
Net balance in general fund, s94, 094,-
$50.
Total ordinary receipts. S4.223.644.
Total ordinary payments. $3,095,669.
The deficit this fiscal year is $780,
1891 against a deficit of $50, 003. 29S
last year, exclusive of Panama canal
and public debt transactions.
Stocks Fairly Active.
Business on the Washington Stock
Exchange today was not especially ac-
tive. although there were fair num-
Der of orders around market levels,
resulting in moderate transactions.
Prices as a rule were strong. WASH
ington Gas moved up fraction, sell,
ing at 11ss. Mergenthaler also showed
some recovery from the weakness of
Tuesday. improving to 16ha from an
opening Z of point lower.
Capital Traction shares steady at S411
to S4i..
Capital Traction IS were strong. SELL
ing at LOT. Railway As. unchanged at
S1h- Chesapeake and Potomac Tele-
phone 5s, steady, at 104A.