El Paso herald. (El Paso, Tex.) 1901-1931, 1919-08-23
Ell PASO FEDERAL RESERVE BRANCH
TREBLE5 BUSINESS IN FIRST YEAR
Vast Territory Served by Local Branch and More AIDE
quate Quarters Needed; Plans Prepared for New
Building of Modern Construction Federal Reserve
System Withstands the Severe Strain Of Wartmes.

system, member banks are extending
legitimate and needed assistance to
customers during periods such as
have been experienced in this section
OF the country during the past two
or three years
Recently the federal reserve hoard
at Washington urged the banks In the
cattle raising districts to render such
assistance to their cattlemen custom
ers as they could with safety, in or
der TO prevent the unnecessary sale Of
breeding ca tile for slaughtering pur-
poses, pointing out that II fat cows
were sold TO be slaughtered at this
time II would Inevitably result IN a
meat shortage this year and the year
after
Under the terms OF the federal re-
serve act, federal reserve banks are
permitted TO discount industrial. COM
mercial and agricultural. as wei as
livestock. paper, and quite a large
amount Of each OF these classes Of pa
per has been handled by the FL Paso
branch.
Ample Cash Carried
A supply Of actual cash sufficient to
meet the needs Of the banks IN this
territory at all times is carried az the
branch bank. An adequate supply OF
unissued federal reserve notes is also
carried at the branch. to be issued In
case OF necessity
Under the federal reserve act each
member bank is required to pure base
an amount Of capital stock IN the
federal reserve bank to which Il Is at
tached. equal 20 g certain percentage
OF the subscribing banks capital and
surplus. and the member bank earns
six percent on the amount thus in
vested. Each member bank Is also
required 10 carry a certain amount or
its total deposits with the FEDERAL re-
serve bank TO which It is attached, as
a reserve fund
In order to lend greater strength to
the federal reserve system the banks
Of the entire country have been urged
to deposit their gold coin and gold
certificates with the federal reserve
banks and receive IN exchange there
for federal reserve notes. which an
swer their needs just as well as gold
coin or gold certificates. The FEDERAL
reserve act authorizes the issuance
OF federal reserve notes under certain
conditions, when the issuing bank has
pledged with the federal reserve
counted paper. together with 40 per-
cent gold reserve
out OF a total o. f46 banks in the
territory assigned to the Fl Paso
branch. IS member banks and IS non
member banks, or 81 percent OF the
banks IN this territory have their
name on the par list issued by the
federal reserve board, which list is
forwarded to every member bank IN
The entire United States
The e Paso branch, at the time OF
its opening, handled about 1000 checks
per day, but at the present time II is
landing from seven TO Ten thousand
-heclzs per day. received principally
from the banks within Its own terri
tory. From the time the branch was
established until the close OF business,
July 81, 1913, II handled 2.146,lzb
checks. aEgregating 1897. 7S6, 1o9.34.
Transfers without Charge.
In addition to discounting paper,
shipping and receiving money. and
clearing and collecting checks the Fl
Paso branch also makes telegraphic
Transfers OF funds for its members.
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