Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1921-02-19

ana sone odd that should be in ap-
proved banks? Al,
A. The two amounts shown here
as short, based on this procedure and
computation ia $2~,241,506.6s.
@. And In making, that tscomputa-
! ton. I assume you took 20 per cent i.
time deposits n you deducted the
amounts due to other banks?
A. No, I didn't Il
Q. Didn't you make any deduction
for the amount due in other banks?
A. No. |
g.. Wen. don't you think you
A. I am just putting down what
you asked me to. put down.
} Q. Well; 1 asked you to put it
down according to the 1915 law?
!, A. I figured 20 per cent ofs the
demand and 10 per. cent Of the time
deposits toarrive, at the required re-.
serve. ls. vs. 49,:
~. 4! W Reads Law.
Q. Did you then make any deduo-
ton OF the amount due to other
banks?
A. From .what7
q. Well, let's read the hw:
(Reads) Each association shall at
all times have on hand in available
AoAkN0 ~4A - . 0AASSA N~NoSS~
ing therefrom the amount due to 9TH
err banks, shall equal 20 per cent of its
demand deposits and 10 per cent Of
its time deposits"
A. Well, that wouldn't change our
figuring on the cash at all. 1t would
> only be with respect to h reserve.
: O.. Why wouldn't 1t? Wouldn't it
e raise the amount that they should
T have? The cash of course, is two
! fifths of that amount. Have you got
e the amount?
A. My understanding is We TAKE
the amount with other banks and de.
{ duct from that amount the amount
: due to other banks, and that shows
the available funds with banks.
, @. No, o misunderstood me
u You arrive at a reserve fund by de-
!, Quoting the amount due to other
a banks. The law requires that o
u should have on hand in available
c funds. n available funds are de-
: scribed. as either cash or amounts In
approved reserve agents?
y A. There Is no argument on that.
Q. So the law says this thing we
IL call available funds-after deducting
from that-that is deduct from your
cash and from your correspondent
u banks, which are the only available
funds we are operating or now, the
IL amount due to other banks-shall
equal 20 per cent OF demand and 10
per cent of time deposits:
O. And then thrce-fifths of that
amount shall consist of IL reserve in
- approved agents and two-fifths in
- cash?
a A. Yes. Let me see that law just
a moment.
=. 9. Yes, sure., (Hands, witness the
= stafutes.) "f'F
@. Tell US what tho Bank OF
~ North nok0ta on DaearpNar z 1870
- according to, the Bishop Brissman re-
;. port .had on hand in available funds,
- eliminating these r~edeposits?
A. They had on hand in available
- f9nds, eliminating %redeposits' $751;
-. @. Now deduct from that amount
% due to other banks. What is the re-
suit you get?+''s +#"
a. have minus 7s2,oSS.1s.
Q. In other words, after deducting
the amount due to other banks from
IS the amount OF available funds or
hand, without taking into considera:
6 ton the redeposits, o find that the,
u. are minus over $780, 900?
60 A. Yes, sir.
III .. And it would be very difficult
- of course to figure anything of tina,
KIND, wouldn't it, and call it a re
serve?
- A.. Well, we can figure out exactl.
IHC Ill
Even Stronger.
G. Well, give us the minus
amounts. That is what we were try
ing to get at a while ago, but the!
were "a little bit stronger han W.
thought they were. What is it?
n A. The net minus was $782,088.1S
. which Is reconciled with a minus i,
~ banks Of $s2s.s55.1S, and cash OF
hand $4%6.757.63.
n WAL ,nb,4 Iooo @b,t y,oan
I don get that through my noddle'
&C g A. Well, the thing in the aggre
gate is a minus item of $782,oS6.18.
tn y. Well, just put it this why.
what Is twenty per cent Of your
r. demand deposits?
a. Yes, sir.
@. What is it?
A. $2,791,67S.56.
Q. And add to that ten per
cd cent of the time?
NJ. A. $16,992.3O.
N, Q. The two items together
as amount to $2,sOS ,67O.s6?
@. Tho ,availablc fund then
u A. INC available fund should
ny be 81, sos,67O.S6.
1 Q: And 1t is minps hos
f. much?
50 4. 1882, oss.1s.
u. IN d&1Nt SOui AAslu !"
d. your two million. and we will find
h II how far shy they are On avail
ly able funds:
n A. MIR. Murphy, these compu-
gy tations are-I know. you want
We his information to GO with it's
to will aout considering the redcpoe-
its III the state.
de @. Well, We said that over
n time and>timc again.
I A. Well, I don't want the
nd newspapers to quote INC as max
ing q statement of something
r that Is o a fact.
nd O.. 1 hope the newspapers
ny will not do so.
x A. That computation shows q
ak minus of S $3.50, 759. OF.
Included Rcdcposits.
BY @. Speaking about these redepos
it's, when 0 made your compute
ton for the senate committee ant
10