The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-09-20
State Capitol News
RESERVE BANK
PLAN FOR STATE
Legislature VIII B c
Asked to Establish
System
sr-e,At TO r.s ..asl-

SANTA FEE, Sept. 20.-The estab-
llshmcnt of n central reserve city
system for state banks II n OF the
things state flank Examiner !. II.
Read intends TO ask OF the legislature
az the result OF an informal confer
ercc between him and the bankers
following the convention OF the Bank
ere association at Albuquerque.
Under Mr.. Reads plan any state
bank with n paid up capital CT more
than $500 0 would he eligible to act
MS reserve agent. They can act rs
reserve agents now by making nppll-
cation e the state bank examiners
Office for authority. but few have
made any application and Mr.. Read
tenn would be preferable. State banks
now carry their reserves with nation
al banks and reserve agents.
Reduction OF reserve requirements
als5 will be recommended by Mr..
Read. Banks now have to carry as
reserves 10 per cent OF the demand
deposits N s per ccnt OF their time
deposits ana 20 per cent or the total
reserves In cash In thelr vaults. The
change favored would Require them
20 carry only 10 per cent Of their de-
posits. both time and demand. n
leave to the discretion or the pnnks
themselves how much they should
carry In their vaults to- meet the de-
minds of their customers.
Another change. which will be ad-
vocatcd. would modify the require
ment that paper endorsed by any in
dividunl. firm or corporation be re-
Harded practically as a direct loan.
Banks are not permitted 20 lend more
than 20 per cent Of their capital stock
and surplus to any OF these and when
i thou aftlnFan onU nnA alanfe nnfoo tho
endorsement Is charged as n direct
liability. The change favored by the
conference would enable individuals
firms and corporations so borrow as
high as 20 per cen in addition TO any
paper they endorsed.
Mr.. Read also believes the legisla-
turo should give the bank examiners
office authority TO fix maximum inter-
est rates which stnte banks can pay
on deposits. exclusive OF city, county
and state moneys. on the ground that
II would prevent "illegltimate compe-
tition." This Is done In Oklahoma,
he said. II the authority were placed
In the bank examiners hands the
maximum could be raiseS or lowered
according 10 financial conditions war;
%ranting any change.
Banks should get the approval Of
the bank examiners office before
moving their headquarters after they
have been chartered. Mr.. Read be-
lieves. and will recommend that the
legislature make IL a requirement.
He will advise also that the nccum-
ulntion OF checks n handing them
to any bank In n packet for cnsh
across the counter be made a INSIDE
meanors
Flu In State.
4 slight falling off in typhoid fever
~ shown by the state health depart
ment's summary for the week ended
J last night. Twelve cases were re-
ported. two less than the number re-
ported for the week Before. The re-
ports came from eight counties and
the week before there were ten our
ties in the typhoid column.
Santa Fe county showed a proper
~tionately greater decrease than the
state at large. only one case appear
ed In the county last week. although
four were reported the week before.
Tie six cases OF tho nu. reported
early In the week. were tho only one
reported TO the department. These
are in Taos and Valencia counties.
They are the first cases reported so
far this year.
Tho summary follows;
Diphtheria-colfax. q Eddy, /;
san Miguel, 2.
Gonorrhea-Taos, I.
1nfluenza-Taos. 3; Valencia, 3.
Malaria-Rio Arriba. ?; Santa Fc,
1: Taos. 1.
Pneumonla-BernaillIo. Il: Luna. /.
Rocky Mountain Spotted Fever
colfax. /.
Scarlet Fever-Colfax, !.
Smailpox@quadaiupe. 1: Otero, 1.
MISUNDERSTANDING. &; Chaves,
s; Eddy. 1; Grant, SO; Lincoln. 4;
Roosevelt. 2: Santa Fe, /; Valencia, ?.
Typhoid Fever-Bernaiillo, 2; Col
fax. 1; Curry. 3; Dona Ana. 1; RooRe-
welt. 2; Santa Fe. /: Ttios, 4; Union. 1.
Whoopirg Cough--Bernaiillo, o;
Colfax, 1; DcBaca, S: Mckinley. /;
Taos. Z; Valencia, /.
Lead Poisoning-Santn Fe. /.