The Washington times., 1923-03-07
To QUIZ BANKS
ON RESERVE
SYSTEM
Joint Congressional Committee
Expects to Hold Hearings
| In Various Cities.
By HARRY GUSACK.

Bankers throughout the country
will soon receive QUESTIONABLE
from the joint Congressional com
mittee which has been appointed to
investigate why SETS State banks
which are eligible to join the Fed
eral Reserve System have not done
30.
Hearing will be held in a number
of different cities, according TO
tentative plans of the committee.
1t 10 probable that New Orleans
and Atlanta will be two OF the
cities visited by the committee, IN
addition to hearings which Will De
held on the Pacific Coast and in
the Middle West.
The Joint committee, which was
created by the new rural credits
act, is composed of Senators Nc
Lean, of Connecticut, and Weller,
of Maryland. Republicans, and
Glass of Virginia, Democrat, and
Representatives McF'adden of Penn
sylvania, Dale of Vermont, and
Strong Of Kansas, Republicans, and
Wingo of Arkansas and SteagaH OF
Alabama, Democrats.
1t is understood that Representa-
tives McFadden, who is chairman
Of the House Banking and Cur.
rency Committee, will be named
as chairman of the joint commit
tee.
At present the Federal Reserve
Systems is composed of 1896 ma
tiona1 banks, which are made men,
bers under the Federal Reserve act,
and 1,64S state banks. There are
1878 State banks, located chiefly
In the agricultural sections, which
are eligible for membership in the
system, but have thus far refused
to join. 1t is the contention of
those who have been studying the
agricultural credit situation that
IL greater number of State banks
would come into the Federal Re-
serve Systems it would greatly in
crease the credit facilities avail
able for agriculture. In explaining
why they do not join the Federl
Reserve System some State banks
have objected to loss of interest
on reserves which they would have
to carry with Federal Reserve banks,
others have used the par check
collection controversy as an excuse,
while still others have objected to
placing themselves under the super
vision of the Federal Reserve Board
and conforming to it's various regu-
lations.
One provision in the new rural
credits act, which is designed to
encourage State banks to come into
the Federal Reserve System reduces
the capital required in small towns
under certain circumstances. The
SeSdte AtW also contained q provi.
sion for an increase in dividends
paid by Federal Reserve Banks on
stock held by member banks, but
this was stricken out in the House.
Will Meet March rs.
Stockholders of the Columbia
Graphophone Company will meet at
the firms offices in Bridgeport.
Conn, for the purpose of electlng
directors for the ensuing year and
Tor the transaction OF routine bust
ness, on March &c, according to a
circular reaching local shareholders
yesterday.
The present directorate consists
of the following: Mortimer N. Buck.
ner, George L. Barr, Charles w.
Cox, William C. Dickerman. Van
Horn Ely, Henry J. Fuller, G. Her.
man kinnicutt, j. F. McC1elland,
Douglas Parmentfer, +. w. Shirley.
Eugene e. Thompson and H. L.
Wilson.
The company in question was
operated at a net deficit of So.
394,S55 during 1922 which sum is
stated after deducting depreciation
and other expenses. This loss is
made up of the following: LOSS from
all sources after utilizing reserves,
previously set up, $1,514,O52; inter-
est on funded and floating debt.
$1,496,245; depreciation, reserves.
and other charges including gen.
eral depreciation of property, plant
and equipment, $310,072; bad debts,
$74 ,4S6.
The deficit of the company at
the close Of business on December
81, 1922 was $21, 903,4 while total
current assets and inventories
amounted to but $13,846,97O.