Evening star., 1917-10-22
TO Join FEDERAL
RESERVE SYSTEM
Action Taken by Washington
Loan and Trust Company
Directors.
OTHERS LIKELY TO FOLLOW

At a special meeting of the directors
Of the Washington Loan and Trust
Company. held today. a resolution was
introduced and unanimously adopted
directing the officers of the company to
make application for membership in the
federal reserve system.
The application was prepared and
forwarded to the regional bank Of the
federal reserve system at Richmond.
This action is the direct result Of the
personal appeal of the President to all
banks to unite with the system. for the
stronger financial condition Of the
whole country in its hour Of stress.
Since this appeal the directors of. the
company have given the matter con-
siderable consideration and a special
meeting was called with the result an
nounced.
The Washington Loan and Trust Com
pany was the first trust company Or
ganized to do business in the District,
and its action is likely to lead other
trust companies and state banks into
the national fold in the near future.
Bulwark Of q. s. Finance.
Commenting on the action taken by
the institution, of which he is presi-
dent, John B. Larner said:
Il regard the federal reserve system
as the bulwark of American finance. No
law is absolutely perfect. Time only
can provide for conditions which arise
during the progress of the administra-
ton of the law. So it has been with the
federal reserce act: amendments have
been made to meet conditions which
have arisen. Doubtless more amend
ments will be made in the near future.
absorb substantially every bank and
trust company in America The result
is that now the finances of our country
are upon a solid basis and panics and
currency famines are things of the
past, 1 firmly believe.
THE directors of this company have
given the invitation to enter the sys-
tenn careful and thorough considera-
ton They feel. to q man. that 1t is
their duty to accede promptly to the
sduarely behind tho government.
Under q. s. Supervision.
"It is peculiarly appropriate that we
should do SO, as we are enjoying the
benefits of congressional legislation
and doing business in federal territory
under the direct supervision of the
office of the controller of the currency.
II have no doubt that within a short
time all Of our banking Institutions
in the national Capital viii be in the
system.
Deposits Over 5000, 900.
The Washington Loan and Trust Com
Of $1,100, 600 and undivided profits OF
$780, September II 1t had deposits Of
IS, ,40s, 10s, which have increased material
ly in the last month.
: The way for admission Of many trust
companies and state banks was paved
by amendments to the law enacted at the
last session of Congress. which have
eliminated many Of the original provisions
of the measure and permitted fiscal in
stitutions entering the system to retain
their charter rights. and have eliminated
the provision applicable to national banks
Of limiting loans to 10 per cent OF capital
and surplus to one company, corporation
or individual.
usury laws applying to national
banks have also been made non -effec-
tive on state banks. any of which had
built up their business under usury
laws of their state.
relating to interlockfng directors was
eliminated for state institutions. as the
right therein denied exists under state
charter and the new members from
rights This latter opinion was given
BY Secretary McAdoo In September.
Incoming banks will not be made
subject to the federal reserve law, ex-
cept as follows:
Reserves must be kept as provided
3 per cent on all time deposits. per
cent on demand deposits in country
banks, 10 per cent in reserve cities
and 13 per cent in central reserve
all reserves in the regional
got, ino q a m
Der.
Capital requirements equal to that
of the minimum required or national
banks In like populations.
Prohibition of loans on their own
stock, direct or by purchase. relating
to withdrawal or impairment of cap
itaI: payment of unearned dividends.
To Revised Statutes on embezzlement,
etc.
Required to Make Reports.
Three reports of condition and divi-
the Federal Reserve Board. subject to
made by direction of the
Federal Reserve Board. instead Of by
the controller of the currency: as for
merly: but, with the approval OF the
directors of the regional reserve bank of
which an institution Is a member ex-
by state authorities may be
accepted.
Withdrawal on SIX months notice.
New members are under the provision
relating to member banks. but they are
not subject to examination by the con-
troller Of the currency
Cannot procure rediscount for more
than 10 per cent for any one borrower.
A subscription to the capital of a re-
efonal reserve bank to the amount of
6 per cent Of its capital and surplus.
All privileges Of rediscount. with no
as to making loans under
state law.
The privilege of carrying more than
10 per cent of capital and surplus with
a non-member bank: to obtain cur
rency: borrow money from reserve
bank; to have checks and drafts drawn
upon it received at par by all member
banks: to have checks and drafts drawn
immediate credit at any federal reserve
bank and to participate in check col |
lection systems
In fact, a state bank or trust COM
pany entering the system has but one
lisadvantage-the fact that it must |
carry all reserves with its federal re- /!
serve bank.
HERE TO CONFER OVER SUGAR.
AN ATLANTIC PORT. October ca
A British commission arrived here to-
lay to ascertain whether England may