Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1922-07-07

ers the injunction suit brought by the
Brookings state Bank against the fed
eral reserve bank of San Francisco
enjoining the latter bank from send
ing checks and drafts drawn on the
Brookings bank direct to that insti-
tuition, demanding remittance in full'',
without deduction for exchange or col
| lection charges. The principle of par
collection is a part of the policy of
the federal reserve system and it was
with no animus against the Brookings
bank in particulr, but aonly in the
pursuit of it's general course of bust
ness, that the federal reserve bank
insisted on par remittances from
Brookings. The Brookings bank, feel
it's rights, has fought consistently
against par collections, and when the
federal reserve established an agent
at Brookings to enforce it's policis, the
smaller bank regarded this as an in
dividual affront instead of the work.
ing out Of a quite impersonal system.
Entirely aside from the merits of the
controversy as to whether or not coer-
cion was used by the federal reserve
bank, the point involved which is of
general interest and which has been
established is that non member banks
may charge a reasonable exchange on
remittances to the federal reserve
banks.
German Loan Not Feasible at Present
Announcing that "as the reparations
situation stands is not favorable to
float an international loan,", the Com
mittee of International Bankers ad-
journed in Paris On June 10th, sub
ject to the call of the Allied Repara-
tions Commission. This call is ex-
pected when there have been any
changes in the situation which seem
to make a new discussion worth while
J. P. Morgan issued a statement set
ting forth the American position re-
lative to an international lean for
Germany. Mr. Morgan believes tnat
there is in America "a growing ap-
probation of the fact that it's own
prosperity is to a large degree depend
ent upon the prosperity of the allied
nations and that the prosperity of the
latter is, in large degree, dependent
upon the rehabiliations of Grman cred
it" Believing thus, he thinks that if
certain conditions were met a sub
stanial amount of German government
securities could be distributed in the
United States. Concluding his state
ment, Mr.. Morgan assured the Com
mission Of his continuing eagerness
to help it and said: 81 am now and
shall continue to be ready to do every
thing in my power to assist in the
solution of the problems which con-
front the economic life of Europe, but
l believe that in so far as such prob
lens depend for their solution upon
an international loan to Germany, in
which the American investor would
take part, the. solution is not possible
without a general settlement of the
separations question, and only as a
part of such settlement. Undoubtedly
4 settlement of this question involves
he consideration and arrangement Of |
many other questions which must be /
settled between the Governments In
order to arrive at tn unanimity re- |
Iuired for the first condition of loan.
7ussa's Financial System Disastrous |
to State Bank
The dizzy financial system of Rus
ia has brought diaster to the new |
'tate bank established a few months
go to stabilize finances and promote
The bank began last March
o loan money at - per cent. rate
itch even an American loan shark
night blush to ask, but extremely low
n comparison with the private rates
u tNAililE III 0iOctVNs " HtH liiS
money was lent the exchange rate
'as about 100000 rubles to the dollar.
| month later while officially only
bout half that amount, from $4,000
D 100000 rubles 10 tire dollar was
nered by private brokers and prices
I course rose accordingly. When the
arly loans were repaid, the bank I
oupd Itself in the position Of receiy-
lg Ia actual purchasing value from
quarter 10 a half OF what IL had
'aned. According 20 the newspaper
Economic fAfep, tns bank pow pro, }
oses % charge SO per cent per month B
.teresi GA loans ana t0 pay per eenf +
month op deposits phe n0mmlssar /
Z ~ Finance 40 felleYf ths situation h
.cldea % sfanf the hanh aaaiiloaei p
mas far an lncrease lp capital fis
IA ..I...I ........ .II.IUIauI .l.Ia . IuI UII.