Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-03-20
BANK BALANCES DRAW
SLIDING SCALE RATES
BY I. A. FLEMING.

The New York Clearing House Assoc
citation took action on the sliding scale
of interest rates to be paid on bank
balances that will be of direct interest
to-every bank in the United States. for
at some time during the year prac-
ticafly all banks maintain balances
with their New York correspondents.
and the great majority carry balances
there all of the time
A sliding scale of interest. which
takes effect April 1, provides for inter-
est at the rate of 1 per cent. when the
federal reserve bank rate of discount
is per cent. for ninety days maturity,
or less than per cent.
Then the scale provides for an addi-
tional one-fourth of l per cent inter
est with every increase in the New
York federal reserve banks discount
. rate by one-half of ! per cent that
cent. but in no cases shall interest paid
exceed 3 per cent.
Deposits in savings banks located in
the second federal reserve district.
with New York city the location of the
regional bank. may pay interest up to ;
Per cent as the maximum; time certifi-
Gates of deposit may receive interest at
35s per cent after thirty days, ire
The prevailing rate of discount nine
ty days maturity of the federal re-
serve bank of New York is now 4 !. per
cent. making the interest rate after April
/ "a per cent on demand deposits.
1t was explicitly stated by the reso-
luton adopted that the committee in
fixing the rate covered the maximum
schedule of interest that could be
paid and that the payment of this was
not obligatory on a bank, but free
dom of action is allowed provided
the maximum rate is not exceeded.
The New York clearing house en-
forces its laws - $1,000 fine for the
first violation, expulsion for the Sec
ond offense.
Gov. Harding of the Federal Re
serve Board. in a letter to the chair
man of the clearing house associa-
ton, regretted that the bankers had
not seen their way to eSta bliSh a
straight per cent interest rate. but
expressed pleasure that they had been
able to get together. He intimated that
unless carefully watched the adoption
higher rates by some,interior banks.
Southern Railway Earnings.
Gross earnings of the Southern rail-
way system for the second week in
700. or 1856 per cent more than the
gross for the same week in 1917.
From January / to March IA. in
elusive, the gross earnings of the sys-
tenn were $o3. 691 .946. an increase of
$3,0S0.6t2 over the corresponding period
of the last calendar year of 14.94 per
cent.
Monday Maryland Holiday.
Monday. March %. Maryland day."
IL a state legal holiday, action to that
effect having been taken in 1916. Banks
and financial institutions will be closed.
Maturing paper will hold over an
other day
Personal Mention.
Nathan &. Scott. former senator of
the United States and president of the
Continental Trust Company. has re-
turned to the city after some weeks
spent on the Florida east shore.
Miss NJ j. Winfree, secretary of the
same corporation. has also returned
from a short vacation.
Sliding Scale of Rates.
Following is a schedule of the Sliding
scale of maximum interest rates on de-
positS which banks and trust compa-
MES may pay their commercial bank
correspopdepfS AnriJ in