Evening star., 1922-04-02
BUSINESS IN THIS COUNTRY
Y IS MAKING GOOD PROGRESS
Market Refuses to Take Breathing Spell
in Advancing Movement--Proposed
" Amendments to Reserve Act.

cured by government paper. issued
since April, 1917. This measure is not
to be operative after october, ], 1922.
Branch Banking.
H. r. s41s. to permit any member
bank. located in any city or town
where state banks or trust companies
may have branches, to establish
branches, not TO exceed ten in num-
ber.
TO Determine Balances.
II. r. 6040-In estimating balances
required by this act, the net diff
ference of amounts due to and from
other banks and. bankers shall be
taken as the basis for ascertaining
the amounts of bank deposits against
which required balances with fed
eral reserve banks shall be de-
termined- And deposits due from
banks and bankers in foreign coun-
tries, payable in money or currency
in amounts due from banks and
bankers to such extent, subject to
such conditions. limitations and re-
strictions as may be prescribed by
the Federal Reserve Board.
LIVE Stock Loans.
H. r. 542s-To amend section $500 OF
the Revised Statutes of the United
States. and to amend section il of the
act Of Congress. approved December 30,
1913. known as the federal reserve act:
Section 5s0O-The total liabilities to
any association OF, any person or OF
any company, corporation or firm fors
money borrowed, including the liabil-
tiles OF company or firm as the liabil-
tiles Of the several members thereon.
shall at no time exceed 10 per cent Of
the amount OF the capital took OF sucr
association actually paid in and unim-
paired and 10 per cent OF its uninpaired
surplus; provided.
THAT "a the discount OF bills of ex-
change drawn in good faith against
actually existing values, including drafts
and bills OF exchange secured by snip
ping documents conveying or securing
title to goods shipped, and including de-
mand obligations when secured by docu-
ments covering commodities in actual
process of shipment, and also including
bankers acceptances of the kinds de-
scribed in section Is of the federal re-
serve act; t2D the discount OF CONNER
cial. or business paper actually owned
by the person, company, corporation or
firm negotiating the same; (3) the dis
count of notes secured by shipping
documents. warehouse receipts, or such
other documents conveying or securing
title covering readily marketable non
perishable staples. including live stock,
when the actual market value OF the
property securing the obligation is not
at any time less than lis per centum OF
the face amount of the notes secured by
such documents; and 90 the discount
less than like face amount OF bonds
or notes of the United States issued
since April "a, 1917. or certificates OF in
debtedness Of the United States. shall
not be considered as money borrowed
within the meaning Of this section"
The bill would allow federal reserve
banks to purchase from member and
non-menber banks paper based on live
stock. providing for the return by the
Treasury to reserve banks the net earn
ings of such banks for 1920, which shall
be designated as the live stock loan
fund" and annually. thereafter the net
earnings to be returned TO the banks
until there shall have been established
an aggregate sum of $500 .000,o 600. After
reaching this amount the net earnings
OF the system shall go into the general
fund Of the reserve banks and be dis
posed of as provided in the reserve act.
The Federal Reserve Board shall have
full control over the live stock fund,
and TO paper shall be purchased under
six months maturity or longer than two
years from date of purchase. No re-
serve bank shall purchase paper to an
amount greater than three times the
capital and surplus Of the selling bank
All paper sold, all loans purchased un-'
der this act shah be indorsed and quar-
anteed Internationally by the bank SELL
ing the same. 10 the federal reserve
bank .---
Provision for q S per cent rate. pay
able seni-annually in advance. plus ex-
penses Incident to the loan. the amount
to be approved by the reserve board.
not exceeding per cent. OF which 1is
NAV be retained by the iudorsing bank
and one-half of l per cent by the re-
serve bank making the loan. Seventy
per cent of the cash value OF the live
stock is the maximum of the loan.