Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-02-07
BANKS RESENT
BLOW ATPROFIT
Indianians Condemn Federal
Reserve Board Ruling.

new ruling of the federal reserve
board in listing all nonmember banks as
par points and requiring them to remit
at par on all items sent for collection
Is meeting with the hearty disapproval
of Indiana bankers.
Vigorous protest against the ruling
and also the "intimidating tactics of
federal reserve regional banks in en-
forcing it was made at a meeting of
sixty bankers from various parts Of the
state at the Claypool hotel yesterday A
resolution denouncing this action was
unanimously passed at the meeting
c. o. Holmes of the South Side Trus
and Savings bank, Gary, Ind. presided
at the meeting with r. S. Cummings If
the Yorktown Banking Company acting
as secretary. Among the speakers were
J. c. Haskell of the Henry County State
bank Spiceland, Ind; c. W Smallcy.
First National bank of Dunkirk; c. o.
Holmes. R. S. Cummins and C. W. Camp,
! clerk Of the banking department, auditor
Of state.
The following resolution was adopted
whereas, The federal reserve board.
through its regional banks st Chicago
and st. Louis, has served notice upon
the state banks of Indiana which ar.
nonmembers Of the federal reserve sys-
TEN, that Jan. Is all towns in Indi-
ana were listed as par points irrespective
OF the consent of the banks In such mat
I ter, and
Whereas. The said federal reserve
board has threatened in the event of
refusal of the state banks to render the
service of remitting for checks without
reasonable compensation to present
such items for payment through the ex-
press companies or messengers apd de
mand payment thereof in cash at par
and in event of noncompliance with
such demand, to protest such items, and
Whereas, The said federal reserve
board, through its representatives, has
held for an unreasonable time Gin def
anee of well. established usage and Gus
tom and in defiance of a decision of
the supreme court that a bank check
must be promptly presented checks on
Indiana state banks until an important
aggregate has been accumulated and
has then demanded payment in cash
/ through messenger or express company
for the very evident purpose of intimi-
dating and embarrassing payee banks
/ Therefor be it
Resolved That in our judgment such
( demands and methods are unwarranted
/ by law. q distinct departure from well
established customs, and an unjustif
able invasion of the legal rights OF
state institutions by the federal re
serve board. which has no jurisdiction
whatever over the state banks. Be ii
I further
Resolved, That we pledge ourselves
/ to resist in every legitimate way such
demands and practices and endeavor to
/ preserve for our institutions the rights
/ guaranteed under the laws of our state
/ Be It further
Resolved, That we respectfully re-
/ quest the cooperation of our city cor
respondents in this matter and viii ap-
/ preciate any help they may render US
Be it further
/ Resolved That our representatives in
congress be requested to demand an In
vestigation of the acts and practices OF
the federal reserve board and its repre-
sentatives In relation to this matter. Be
it further
Resolved. That a copy of these reso-
lutions be mailed TO every state bank
in Indiana, the federal reserve board
the Federal Reserve Bank at Chicago
and the Federal Reserve Bank at St
Louis and our representatives in con-
gress, and the official representatives, of
state banks in all ether states"