Evening star., 1918-07-21
FINANCIAL LOCAL AND OTHERWISE

\ woek6, beginning Wtth June 20, ana
through October. All banks and trust
Just their affairs % to be In q po-
sition to subscribe to an amount Of
these certificates twice q month equal
to sh per cent Of their resources.
Provides Rediscounting Rights
.rhe federal. reserve act expressly
provides that the rediscounting priv
| ilege be accorded to all member banks
of the system whether they be ma
tionai banks or state banks, II also
stipuletes that no member bank shall
act as the agent of non-member
| bank in applying for discounts from
! q federal reeerve bank. except by per
I mission of the federal reserve board
with a view to facilitating the sale
i of the Treasry certificates the fed
eral reserve banks announced their
readiness to loan literally, though
temporarily. to member. ,ssn banks; i.nso also
against their notes when secured by
Treasury certificates. 81
"It is now contended In some quar-
| ters that for the purpose OF govern
| ment financing banks which are not
tenn should be accorded redtscount
privileges on the same basis As mem
Der banks. =.
Based on Their Reserves.
:The Ioahins pswsr Ees the federal
reserve banks' Is based Upon their re-
serves: therefore. sit% would be mani
| who have furnished these reserves to
share the rediscounting privilege
equally with non-member banks
which have not contributed reserves.
Since the only way in which the
Ioaning power Of the federal reserve
system can be increased Is through a
further mobilization of the reserves
of those banks which are still out
side the system, 1t is of the greatest
4 Importance that all eligible state
lege Of membership. thereby creating
the additional credit needed in con-
nection with the governments re-
| qufrements, as well as providing for
!, industry, and agriculture, essential
| to the prosecution of the war"
Many Privileges to Members.
Free check collection. per cent
dividend on stock owned. free trans
fer of funds in certain cases. gen.
erous rediscount rates and govern
ment deposits at low rates are among
some of the privileges offered mem
| ber banks.
Though a bank outside of the fold
may do its utmost for the govern
ment IL Is still outside and receives
small favor.
Fighting for Separate Existence.
law passed by the Illinois Iegis-
lature and signed BY the governor, max
ing It obligatory on private banks
| in Illinois to submit to examination
| to state laws in toto has caused
more than 500 private bankers in that
state to ask an injunction against
its operation pending test of constf-
tutionality.
Chicago has dismal. horrible rec
large losses. More than any other
city save New York. 1t has its set
Elements or districts given over to
people of certain foreign birth and
tongue. In each settlement or district
some one popular person or family has
more or less frequently. Banking as
these private banks. Get the money
has been the slogan. and q veritable
trail of wrecks marks their feld OF
] operations. Small wonder they fight
I for extstence-those In existence.
Washington 10 blessed in that IT has
lfew private banks and in the futher
| fact that those 1t has are well and
honestly managed. above suspicion
Chicago banks Will use snolnk
scale In computing interest on out-ef-
town balances.
| Under the scale recommended by
the clearing house. the rate will be
advanced Of / per cent for every
J a Of per cent raise in the 30 days
discount rate of the Federal Reserve
Bank of Chicago. The minimum rate
is / per cent. The rate Is now ~
| making the interest rate on country
balances ~ per cent.
The clearing house will vote on the
| matter this week.
Fear Labor Cases.
Railroads In the west and the east
as well fear a general deserting Of
skilled labor to the shipyards and
munftion Jobs after the payment OF
| FIVE months back wages, which just
means about one months pay.
The government IL doing all 1t can
! to prevent an exodus, but cannot
! forcibly hold them. Railroads will
! not allow posters setting forth higher
| wages for men In any other capacity
on railroad property.
Many roads are short of cash to
make the payments.