SUBSCRIPTION PRICE OF BULLETIN. The Federal Reserve Bulletin is distributed without charge to member banks of the system and to the officers and directors of Federal Reserve Banks. In sending the Bulletin to others the Board feels that a subscription should be required. It has accordingly fixed a subscription price of $2 per annum. Single copies will be sold at 20 cents. Foreign postage should be added when it will be required. Remittances should be made to the Federal Reserve Board. Member banks desiring to have the Bulletin supplied to their directors may have it sent to not less than ten names at a subscription price of $1 per year. VOL. 2 WORK OF THE BOARD. MAY 1, 1916 During the month of April the Federal Reserve Board has been occupied largely with matters of current administration. Two topics, however, of general public interest have been given much time and thought: (1) Statements to committees of Congress in connection with proposed amendments to the Federal Reserve Act pending in Congress, both those suggested by the Board and those coming from other sources. (2) Work in connection with a proposed country-wide clearing and collection plan. The Board has come to a substantial agreement as to the principles of a clearing and collection plan, which shall include not only the handling of checks drawn against member banks, but also those drawn on nonmember banks when presented by member banks. As there is an immense amount of detail work to be done in connection with this matter, it is expected that the following month will be devoted to the working out of these details. To better accomplish this, a committee of the Board will work in conjunction with a committee of governors and transit managers of the Federal Reserve Banks. The Kern bill amending the Clayton Act was passed by the Senate in the following lan guage: No. 5 This bill has been reported favorably to the House of Representatives from the Committee on Banking and Currency with this amend ment suggested by the Board: "Consent of the Federal Reserve Board may be procured before the person applying therefor has been elected as a class A director of a Federal Reserve Bank or as a director of any member bank.” Slight increases in rates have, with the approval of the Federal Reserve Board, been made by two Federal Reserve Banks during April. On April 12 the Federal Reserve Bank of Kansas City increased its rates for commercial paper by one-half of 1 per cent, fixing the rate for 10 days at 4 per cent and that from 10 to 90 days at 4 per cent. The rate for commodity paper at the Federal Reserve Bank of Richmond was on April 22 increased from 3 per cent to 3 per cent, and the rate of 34 per cent for acceptances, which had before covered a period of 60 days, made to cover this class of paper maturing in 90 days. F. O. Watts, president of the Third National Bank of St. Louis, has been elected a member of the Federal Advisory Council for the Federal Reserve Bank of St. Louis. Filling the vacancy caused by the death of Felix Martinex, of El Paso, Tex., the Federal Reserve Board on April 17 elected H. O. Wooten, of Abilene, Tex., a class C director of the Federal Reserve Bank of "And provided further, That nothing in this Dallas. Mr. Wooten's term will expire on Act shall prohibit any officer, director, or em- | December 31, 1916. He is president of the ployee of any member bank, or class A director of a Federal Reserve Bank who shall first procure the consent of the Federal Reserve Board, which Board is hereby authorized, at its discretion, to grant, withhold, or revoke such consent, from being an officer, director, or employee of not more than two other banks, banking associations, or trust companies, whether organized under the laws of the United States or any State, if such other bank, banking association, or trust company is not in substantial competition with such member bank." H. O. Wooten Grocery Co. at Abilene. The Federal Reserve Bank of Richmond on April 1 made payment of 1 per cent dividend for the period ending December 31, 1915, amounting to $30,387.65. This is in addition to the 5 per cent dividend declared and paid at the end of the calendar year. Taking up a request from one of the banks in the panhandle district of Texas to be transferred from the Federal Reserve Bank of Dallas to the Federal Reserve Bank of Kansas City, the Board, after making a canvass of the banks located in that section, voted on April 10 that no change be made in the district lines at this point and that this decision be communicated to the banks interested. The transfers of stock, made necessary by the separation of banks located in Fairfield County, Conn., from the Federal Reserve Bank of Boston and their being attached to the Federal Reserve Bank of New York, and certain banks in Louisiana being separated from the Federal Reserve Bank of Dallas and attached to the New Orleans Branch of the Federal Reserve Bank of Atlanta, have been in due course completed. Believing that the directors of Federal Reserve Banks should be given every inducement and facility for making themselves familiar with the details of the conduct and condition of their banks, the Board has suggested that each director be requested to read and initial the semiannual report of examination of his Federal Reserve Bank and that the chairman of each board of directors advise the Federal Reserve Board when the report has been read by the directors and had their full consideration. The Board several months ago adopted the practice of furnishing each Federal Reserve Bank examined with a copy of the report of the examination. Meeting of Governors. The governors of the Federal Reserve Banks, called in conference by the Federal Reserve Board, held a meeting in Washington during the week of April 17. There were present at the meeting Messrs. Aiken, Strong, Rhoads, Fancher, Seay, McCord, McDougal, Miller Wold, Van Zandt, Calkins, and McKay; also Mr. Tupper, Deputy Federal Reserve Agent, of St. Louis, and Mr. Hendricks, Mr. Talley, and Mr. Attebery, in charge of the transit departments of the banks of New York, Dallas, and St. Louis, respectively. The topics considered by the meeting included the question of the handling of the gold settlement fund held by the Federal Reserve Board for the Federal Reserve Banks and Federal Reserve Agents, the receipt from collectors of customs and internal revenue of checks carrying exchange charges, the method of calculating dividends for Federal Reserve Banks, the conversion and disposition of United States bonds and notes, "no protest" items, amendments to the Federal Reserve Act, the replenishing of 5 per cent redemption funds for member banks and collection and clearance. The chief attention of the Governors was devoted to the discussion of a plan for countrywide collection and clearance of checks. Frequent conferences have been held with a subcommittee of the Federal Reserve Board on this subject. At the time the meeting adjourned the fundamental principles and general features of a collection and clearance plan had been determined. The further development of the machinery to make effective the plan was left to a subcommittee which was authorized to remain in Washington and assist in working out the details of the proposed plan. This committee consists of Messrs. Rhoads, Seay, McKay, Hendricks, Talley, and Attebery. State Bank Admissions. The First State Bank of De Kalb, Tex., was admitted to the Federal Reserve System during the month of April, the number of State institutions which have now joined the system being 34. Meeting of Federal Reserve Agents. The Federal Reserve Agents of the twelve Federal Reserve Banks, who are also chairmen of the boards of directors, have been requested by the Federal Reserve Board to meet in Washington on Monday, May 29, 1916. This meeting is called in accordance with an understanding reached when the Federal Reserve Agents held their last conference. It will take up many matters having to do with the work of the Board and the operation of the banks. |