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Collection of out-of-town checks. See clearing out-of-town checks.
Commercial paper, creation of a broader discount market for,

44-48; kinds of, eligible for rediscount by federal reserve banks,

61-62.
Comptroller of the cu ency an ex-officio member of federal re-

serve board, 33.
Contractility of circulating credit under federal reserve system,

64-65.
Country banks, reserve requirements of, 37.
Credit elasticity under federal reserve system, 50-65.
Credit inelasticity under old banking system, evil results of, 18.
Currency shipments, heavy under old banking system, 22-23; may

be made by member banks, at expense of federal reserve banks,
to settle adverse balances arising out of clearing and collection

system, 72.
Decentralization of American banking prior to federal reserve

system, 3-7.
Defects of old banking system summarized, 2.
Deposit currency, inelasticity of, under old system, 17; elasticity

of, under federal reserve system, 57-65.
Deposit-turnover, rate of, in 1913, 9-10.
Depositaries, government, apportionment of funds among, under

old banking system, 25-27; use of federal reserve banks as,

82-87; use of individual banks as, during war, 87.
Directors of federal reserve banks, classes of, 32-33.
Discount market, a broader one being created by federal reserve

system, 44-48.
Discount rates of federal reserve banks, how made effective,

42n; tendency of, to equilibrium throughout country, 43-44.
Domestic exchange under federal reserve system, 66-78.
Earnings of federal reserve banks, their distribution, 59.
“Edge Amendment character and powers of banks organized

thereunder, 82.
Elasticity, credit, under old banking system, 8-18; under federal

reserve system, 50-65. See also bank-note inelasticity and
deposit-currency inelasticity.
Exchange and transfer system, defective prior to federal reserve

system, 19-24; under federal reserve system, 66-81.
Exchange charges, formerly imposed by federal reserve banks on

member banks to cover expenses of clearing and collection sys-
tem, 73; discontinued in 1918, 73; reasonableness of exchange
charges of member banks and clearing member banks to be de-

termined by federal reserve board, 74.
Federal reserve agent, position of, 33.
Federal reserve agents' fund, described, 76.
Federal reserve bank agencies in foreign countries, 80.
Federal reserve banks, capital stock of, 31; subscriptions to, re-

quired of member banks, 31; plan of organization of, 31-33;
the sole depositaries of member banks' legal reserve money,

35-38.
Federal reserve bank notes, described, 51.
Federal reserve board, how constituted, 33-34 ; powers of, 34-35;

may permit reserve held against federal reserve notes to fall
below 40 per cent in times of emergency, 53-54; must impose a
deficiency tax when reserve falls below 40 per cent, 53; may
suspend for brief periods, in times of emergency, all reserve
requirements of act, 53-54; may impose a special rate of interest
on issues of federal reserve notes uncovered by gold, 56; super-
visory powers of over banks organized under “Edge Amend-

ment,” 81-82.
Federal reserve clearing and collection system, 70-78.
Federal reserve districts, how determined, 28-29; map of, 30.
Federal reserve notes, described, 51-52; collateral eligible for, in

hands of federal reserve ent, 51-52; gold reserve required
against, 52; elasticity of, 52-57; legal minimum reserve for,
may be reduced in time of emergency, on payment of a gradu-
ated deficiency tax, 53; amount of, outstanding, and character
of collateral held against, 54; possibility of furtier expansion
of, 54-55; of one federal reserve bank may not be paid out by
another, 55-56; machinery for contracting circulation of, ques-

tion of its adequacy, 55-57.
Fiscal agents of Government, federal reserve banks serve as, 88;

render valuable services as, in war financing, 88.
Fisher, Irving, cited, 9, 57.
"Float,” how handled under old banking system, 20-22; evils of,

largely eliminated by federal reserve clearing and collection

system, 72-73, 78.
Foreign agencies established by federal reserve banks, 80.
Foreign branches of American national banks established, 80-81.
Foreign exchange, difficulties with, prior to federal reserve sys-

tem, 23-24; under federal reserve system, 79-81; services with

reference to, rendered by federal reserve system, 79-81.
Foreign trade, banks organized under federal charters to

carry on, 81-82.
Gold, amount of, held against federal reserve note issues, 54.
Gold reserve required against federal reserve notes, may be re-

duced in time of emergency, 53-54.
Gold settlement fund, described, 75-76.
Government, old banking system ill adapted to fiscal needs of,

25-27; participation of, in profits of federal reserve banks, 59.
Government depositaries, federal reserve banks serve as, 82-86;

banks which serve as, under war conditions, 86-87.
Inelasticity of bank notes under old banking system, 11-17; charts

showing, 14-15.
Inelasticity of credit under old banking system, 8-18; evil results

of, 18.
Inelasticity of deposit credit under old banking system, 17.
Interest, a special rate of, may be imposed by federal reserve

board on issues of federal reserve notes uncovered by gold, 56.

See also discount rates.
Kinley, David, cited, 9.
Leadership, absence of, for country's banks in times of emer-

gency prior to federal reserve act, 3-4.
Legal reserve, see reserves.
Liberty bond financing by federal reserve banks, 88; extensive

use of collateral loans in, 63-64.
Live-stock paper eligible for rediscount at federal reserve banks,

62.
London, the financing of a declining proportion of our foreign

trade through, as a result of federal reserve system, 79-81.
Membership in federal reserve system, 29-31; importance of, in

time of war, 88-90; President Wilson urges on non-member

banks as a patriotic duty, 91-92.
Member banks must purchase stock in federal reserve bank, 31;

are grouped into three classes for electing federal reserve bank
directors, 32.
Mobility of reserves, inter-district, 39-48; intra-district, 48-49.
Mobilization of reserves under federal reserve system, 38-39.
National banks, as depositaries of government funds, 26-27; must

join federal reserve system, 29; may own stock in banks or-

ganized under “Edge Amendment.”
National bank notes under federal reserve law, 50-51.
Open-market operations of federal reserve banks, 42-44.
Out-of-town checks, see clearing and collection system, “float,”

and “routing of checks.”
Par-clearing and collection system, description of, 70-75; mem-

bership in, 70.
Profits of federal reserve banks, how distributed, 59.
Promissory notes, collectible under federal reserve clearing and

collection system, 74–75.
Rediscounting, negligible under old banking system, 17; by one

federal reserve bank for another, the law, 39-40; the practice,
41-42; by federal reserve banks, kinds of paper eligible for, 61-
63; facilities for, at federal reserve banks, not open to paper
drawn for dealing in stocks or bonds (other than U. S. govern-

ment bonds), 62-63.
Reserve, gold, required against federal reserve notes, may be

reduced in time of emergency, 53-54.
Reserve agents, national banks discontinued as, by federal re-

serve law, 35-37.
Reserve city banks, reserve requirements of, 37.
Reserves, cash, importance of, in old banking system, 4; scattered

prior to federal reserve system, and therefore ineffective, 4-7;
immobile under old banking system, 7; deposited in reserve and
central reserve city banks difficult to realize upon, in times of
emergency, 4-7; district centralization of, under federal reserve,

system, 35-38; legal, percentages required of member banks, 37;
mobilization of, under federal reserve system, 38-39; of member
banks, legal, must all be kept on deposit in federal reserve
banks, 35-38; inter-district, mobility of, 39-48; legal, against
deposits of federal reserve banks, 58-59; intra-district, mobility
of, 48; legal, requirements for, less rigid under federal reserve
law than formerly, 58; legal, against federal, reserve deposits,
may be reduced in times of emergency, 60; of member banks,
how increased by rediscounting with federal reserve banks,

61-63.
Routing of checks, under old régime, 21-22; how practice padded

reserves, 21-22; evils of, largely eliminated by federal reserve

system, 73, 78.
Secretary of Treasury, difficult task of, of apportioning government

funds among depositaries, under old banking system, 26-27; an

ex-officio member of federal reserve board and chairman, 33.
Speculation, paper used for, not rediscountable or purchaseable

by federal reserve banks, 62-63.
State banks and trust companies, may join federal reserve sys-

tem, 29; urged by President Wilson to join system as a patriotic

duty, 91-92.
Sterling bills, decline in relative importance of, as compared with

bills drawn in dollars, 79-80.
Subtreasuries as depositaries of government funds, 25-26.
Surplus of federal reserve banks, manner of accumulation, and

size, 59.
Tax, graduated deficiency, on reserve held against federal reserve

notes, 53; graduated, to be imposed upon deficiency in legal

reserve against deposits of federal reserve banks, 60.
Trade acceptances, 45-46.
Trade bills collectible under federal reserve clearing and collec-

tion system, 74-75.
United States Government bonds and notes, paper used for pur-

chasing, rediscountable at federal reserve banks, 62. See also

government.
Willis, H. Parker, cited, 68.
Wilson, President, appeals to non-member banks to join federal

reseve system as a patriotic duty, 91-92.

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