Evening star., 1921-11-02
RESERVE SYSTEM
MAKING BIG GAINS
Earnings for Fiscal Year
Ending June 80, 1921,
$64,562,870.
BY ]. A FLEMING.


| board. in defending the. high salaries
paid to officials and employees Of the
Federal Reserve Bank Of New York
city and in response to a resolution
introduced in the Senate. gives some
interesting data regarding the growth
OF the federal reserve system.
The earning assets Of the Federal
Reserve Bank of New York were
ntnety-f1ve times as large in 1870 as
in 1915; circulation nine times as
open market $50 times as large. and
transactions through the gold settle
ment fund $50 times as large.
For the entire system total earn
large in 1920 as in 1915; circulation
eighteen times as large; total dis-
counts in the open market 314 times
as heavy and transactions IN the
gold settlement funds fifty times
larger in 1920 than in 1915. The
number of employees was twenty
eight times greater and the salaries
twenty times larger. ,.
The federal reserve system pald
to the United States government as
franchise tax in 1919. s2.703;ss4 in
1920, $60724,752. and in 1921, $64, ,562,-
$40. Up to October 21, 1921. $53,-
a3s, 900 had been set aside as fran
The fact that the federal reserve
system has been great money
maker has been recognized from it's
inception; 1t Is. in fact, competitor
with the member banks for paper
and has capabilities 'for great earn
ing power especially when it's ratio
of reserve is as high as it has been
for the last five or six months.
Bankers very generally believe that
they should be entitled to some re-
turn on their reserves, dhe entire re-
serve of national banks other than
till and secondary reserve being car
ried with the regional bank OF which
they are members.
1t would require an amendment TO
the reserve act to make any change
in the distribution Of profits-so
much to reserve and balance to
United states as franchise tax.
Potomac Refunding - 100 Ia.
Potomac Refunding and Improve
ment Is were In demand this morn
ing. making a new high on the local
exchange at 10OA. Sales were light,
but par was freely bid.
Railway As were stronger; advsnc-
ing from an opening at 591 to 5sss.
Washington Gas 7lf per cent notes
sold at 1929.
Capital Traction brought S7:s.
Annual Meeting.
The annual meeting of the Mefgen-
thaler Linotype Company will be held
at the office of the company in BROOK
lyn. on the 10th inst. 1t is expected
that the report for the year will be
encouraging to shareholders.
F.. s. Hight Elected Director.
r. S. Hight has been elected a di-
rector of the Second National Bank TO
fill the vacancy on the board caused
by the death of William Berens.
Mr.. Hight has been manager OF the
New willard Hotel for q number of
years and has been Identified with
many civic organizations for the bet
terment of the National Capital.
The New Willard was recently
pany, of which l.. NJ Boomer of New
York is president. Mr.. Boomer, Mr.
Hight and their associates control
and manage the Waldorf-Astoria.
Louis Sherry. Inc, New York; the
BelIvue-Stratford. Philadelphia, and
many other leading hotels.
Banking. Trust and Mortgage Co.
Announcement is made that the
first call for SO per cent subscrip-
Banking, Trust and Mortgage Company,
in process of organization, has been
very gratifying.
The call was for November / pay
ment. Announcement is also made to
the effect that the application for
Directors to Dine.
Tomorrow evening the directors of
the Northwest Savings Bank will en-
JOY family dinner. Frank D. Bright
has been named as toaStmaster.
The subjects to be discussed at
the dinner and the assignment to
speakers follows:
Useful Serum for Depositors." DR..
Gregg c. Birdsall.
"'The Realtor as Director" Jesse H.
Hedges.
character the Basis of Credit"
Charles w. Morris.
''The Novitiates Impressions" DR..
Garden F. Warner.
THE Bankers Impression Of the
Lawyer" Frederick C, Bryan.
"The Lawyers Impression OF the
Banker" Dion .. Birney.
1.-THE Human Side of Banking"
George H. Macdonald.
"The Merchants Banks Place in
the Community" J. NJ. Beall.
The Upbuilding OF the Bank"
"The Directors Duties and Re-
wards" William T. Fitzgerald.
''vagaries in Banking" Francis NJ.
Savage.
Successful Meeting.
Washington Chapter, American In
stitute OF Banking, held its second
session of the season last evening.
Nearly 200 pupils of the elementary
graduates to help along the move
ment. Harry Haynes. president of the
Farmers and sMechanics' Bank. ln"-
tured on Drafts and Acceptances":
George 0. Watson conducted the quiz
in Organization of Banks" and ]. B.
Waller presided.