Evening star., 1925-04-19
BY i. A. FLEMING.

lbO GHCCllilS AOl lSIl VI
national banks of the fifth regional
district, stockholders in the Federal
Reserve Bank of Richmond, held in
the latter city a few days ago, may
be said to have been the initial effort
in a campaign of education for the
betterment of the Federal reserve
system and for the enlargement of its
opportunities for service for the bene-
fit of member banks.
That the benefits which the system
has conferred on member and non
member banks alike have clearly
demonstrated the necessity for the
continuation and broadening of the
system is admitted by the banking
fraternity almost unanimously.
Without the system the financing
of the World War would have been
an awful and almost unsolvable prob
lem, while the old national currency
act was entirely inadequate to the
business of this day and age.
Greater Freedom Sought.
1t has been the effort of friends of
the system for some years past to
free 1t from certain restrictions that
hinder it's activities and to prevent,
in every way possible, political inter
ests from exercising any control
thereof.
Many national banks have found
the handiCaps of the system as they
exist today too great and have sur
rendered their charters, one of the
latest being the old Irving National
Bank of New York City.
In the case of this institution and
others of like character inability to
make real estate loans. coupled with
the large reserves carried with the
regional Reserve Bank of which they
were members, upon which they were
allowed no interest, are matters of
criticism.
Par collections cut no figure, save
with little institutions in country and
in Southern districts, where the
charge for check collections furnished
large part of the small revenue of
the bank.
Methods Greatly Improved.
The collection and transfer system
has been so perfected that it would
be a serious matter for the banks OF
the country to do business without its
aid. while the saving in cost since the
old and sluggish methods of sending
funds by express, registered letters
and by bills of exchange have given
way to the wire and instantaneous
action Is considerable.
1t is probable that each OF the II
regional banks has either called or
will call a meeting of its stock
holders, member banks, for the pur-
pose of forming such associations as
followed the call to Richmond.
This would create strong organi
zation of shareholders back of each
reserve bank, prepared to study the
needs of the institution, TO approve
or deny aid to proposed legislation.
according as they believed 1t would
benefit or harm member banks, and
tc advise with officials of the reserve
institution on policy.
National bankers do not want FED
eral reserve banks to compete with
them in the open market for desirable
investments, and yet they do want the
reserve bank to pay per cent dlVi
dends on their stock continuously,
Six per cent of the capital OF national
banks forms the entire capital or the
Federal reserve banks.
Special Groups Formed.
There were 1856 bankers at the Rich
mond conference. in addition to the
Richmond delegation.
After examining the home of the
Richmond Reserve Bank, meeting the
officers and directors, being enter
tained at luncheon and listening to
some important addresses anent the
subject of the gathering, general dis
cussion was engaged in.
A number of groups of bankers were
organized, with "A chairman, he &c
name an assistant, each to work ano
report to the general meeting and to
the officials of the regional bank, al
to be at the call of the general chair
man of the shareholders meeting,
H. NJ. Victor.
Victor B. Deyber, president of the
Second National Bank of this city, is
chairman of one advisory board, and
John Poole is assistant.
1t does not require an expert to rec
ognize the advantages of united sup
port of all shareholders and of CO
operation and harmony with reserve
bank officials.
Bankers believe that the enactment
of the McFadden bill, which will again
be brought before Congress at it's next
session, would, if enacted, remove
many of the handicaps now existing
through the restrictions of the Fed
it's way through both the House and
Senate. 1t passed the House in the
last Congress, but never reached &C
tion in the Senate.
Wanted Radios, Many of Them.
There was a good customer on the
street for radios Saturday night g
week ago. He was a big fellow
weighed about 220, and in place oi
A. B. A. checks carried certified
checks of his own-"just as good as
actual cash, sir"
The first merchant approached was
perfectly willing to sell radio-sev
eral, in fact-but he had to have the
cash; SO he took the big fellow to his
ho N n n
ings-where John Riordan, cashier, is
on guard.
Write your name on the back Of
the check and I'll cash it, otherwise
nothing doing" said Riordan to his
customer. But this is a certified
check" argued the merchant. After
several blunt refusals, the owner OF
the alleged check picked it up with
the statement that you're neither OF
you doing me any favor, this is just
the same as cash, I'm going" Al
three other stores certified checks
were exchanged for radios, and the
right change, between $75 and $10C
and $400, the face value 81 of the
check. And the merchants mourn
the change, but will probably get their
radios back, if they haven't, for they
had chance enough to stop delivery
Florida Real Estate Boom.
Everybody is talking of the boom
in Florida real estate, but no one
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