Evening star., 1921-07-23
STRONG POSITION
Of RESERVE BANKS
Hold 62.5 Per Cent of Re.
sources-Secretary Calls
for $4,000, 600 Tuesday.
BY ]. 4. FLEMING.

The position of the federal reserve
banking system is today much strong
er, enjoying as it does the highest
ratio of reserve Of the present move
ment.
II is but another evidence that
nancy TODAY is not the crucial fac
tor in business activities. but rather
that the industrial position OF me
great companies, passing through the
lean year. after several years OF srea
prosperity. is the real cause or the
uncertainty and slow recovery.
Reserve banks as rule may lower
their rates to the betterment OF some
lines of business. but where the re.
gional banks are standing PACK oi
the agricultural and live stock COM
munity, the rates will not be lowered.
and likewise in banks where war pa
per has not been sufficiently ellmihat-
ed.
Reserve ratio today is 69.5 per cent,
against 6l.6 per cent week ago,
and A per cent a year ago, when
defation was still the order of the
day. The showing is the best In three
years.
and commercial obligations are clean
ed off the slate, the rediscountS for
member banks decreases drop OF
$l7,00o,000 being noted. as compared
with last week.
War paper has been reduced to
SSO9, rs, 900. and there has been a
shrinkage in federal reserve note cir
culation during the year of $685.
$4,000.
Calls for Credit Funds.
Secretary Mellon this morning call
ed upon all national banks to pay
into their respective regional banks
on Tuesday 10 per cent of the funds
on hand to the credit of the Treasury
-, H.
tificate sale.
This is a small draft. calling for a
little more than $4,000, 900. This will
leave not far from $90.0o0,000 to carry
the department over the remaining
days of the month. aside from regu-
lar receipts. when ii is expected that
a new Treasury certificate issue will
be announced.
Tax Claim Against steel Corporal tiOn
The government is claimant on
matter of S60000.000 back taxes
against the United States Steel Cor
poration. equivalent to $1l.s0 a share
on the stock.
Judge Gary admits that the govern
ment claims back taxes to the amount
named. but declares the belief of the
corporation that the taxes are not
justly assessed If the case goes
against the corporation. he declares
the amount will be paid from contin-
funds.
Tribute to George r. Allen.
George T.. Allen. who has resigned
as educational director of the Ameri
can Institute OF Banking, saw the in
stitute grow from a membership of a
comparatively few hundred to the
more than 10000 now enrolled. In the
official history of the institute Mr.
Allen is referred to as the pioneer In
"a in ri
He was always an exponent of the
educational idea. and realized very
early that the survival and growth
of the institute rested on the foun-
dation of education. He also foresaw
that self-government was essential to
the success of the institute, not only
on account of it's political attractive
ness. but because he regarded self
government as the most practical
method of cultivating administrative
ability. When he began his program
was one to discourage a less versa
tile man and dishearten a less re-
sourceful one.
administrators came and went,
both in the American Institute of
Banking and the American Bankers
Association. but he survived them all
and now has the satisfaction of see
ing his principal aims achieved. New
captains have come on the ship with
regularity and once it's ownership
cHdHseu nanuS. out from the very
beginning George E. Allen has been
the only pilot"
While Mr.. Allen has resigned as
educational director of the American
Institute of Banking. he continues as
deputy manager of the state bank di-
vision of the American Bankers As
sociation, and those of his friends in
the American Institute of Banking
who know him well are not inclined
to believe that he will be content to
step entirely aside from the work he
has been doing for so many years.