(4) Permission should be granted to national banks to establish branch offices within the city, or within the county, in which they are located.
(5) In order to enable member banks to obtain prompt and economical accommodations for periods not to exceed fifteen days, the Federal Reserve Banks should be permitted to make advances to member banks against their promissory notes secured by such notes, drafts, bills of exchange, and bankers' acceptances as the law at present permits to be rediscounted or purchased; or against the deposit or pledge of United States Government bonds, the purchase of which is now permitted under the law.
(6) The Board furthermore recommends that the power of national banks to make loans on farm lands as provided in section 24 be extended so as to permit any national bank not situated in a central reserve city to make loans secured by improved and unencumbered farm land situated within its Federal Reserve district, or within a radius of 100 miles from the place in which such bank is located, irrespective of district lines. It also recommends that the powers of national banks be further extended to permit any such bank to make loans on any improved and unencumbered real estate located within 100 miles of the place in which such bank is located, irrespective of district lines; provided, however, that the aggregate of farm land loans and other real estate loans made by any national bank shall not exceed 25 per centum of its capital and surplus or one-third of its time deposits; and provided further, that no such real estate loan, as distinguished from a farm land loan, shall exceed a period of one year nor exceed 50 per centum of the actual value of the property offered as security.
It is believed that the enactment of these amendments will, besides enlarging the usefulness of the national banks, result in greatly strengthening the operation of the Federal Reserve Act, and more completely realize the purposes of its framers. The text of the amendments designed to carry out these recommendations will be submitted by the Board at an early date. The Board has under consideration other suggestions for amendments to the Federal Reserve Act concerning which no conclusions have yet been reached, and regarding which the Board will take occasion to submit its views to the Congress at an appropriate time in the future.
STATEMENT OF CONDITION OF FEDERAL RESERVE BANKS.[312]
Combined resources and liabilities of all Federal Reserve Banks as at close of business on the last Friday of each month during 1915.
| RESOURCES. | |||||
| [In thousands of dollars.] | |||||
| Dec. 31. 1914. | Jan. 29. | Feb. 26. | Mar. 26. | Apr. 30. | |
| Gold coins and certificates in vault | 228,641 | 235,417 | 248,256 | 241,344 | 237,278 |
| Gold settlement fund | |||||
| Gold redemption fund | 428 | 488 | 653 | 824 | 950 |
| Total gold reserve | 229,069 | 235,905 | 248,909 | 242,168 | 238,228 |
| Legal tender notes, silver, etc. | 26,578 | 20,882 | 29,085 | 23,098 | 26,518 |
| Total reserve | 255,647 | 256,787 | 277,994 | 265,266 | 264,746 |
| Commercial paper | 9,909 | 13,955 | 18,577 | 22,001 | 22,774 |
| Bankers' acceptances | 1,892 | 9,682 | 13,812 | ||
| United States Bonds | 205 | 2,015 | 5,406 | 6,639 | 6,813 |
| Municipal warrants | 734 | 11,165 | 12,011 | 14,940 | 18,656 |
| Federal Reserve notes, net assets | 5,418 | 3,179 | 3,215 | 6,091 | 6,909 |
| Due from other Federal Reserve Banks, net | 7,930 | 7,421 | 8,088 | 5,573 | 9,468 |
| All other resources | 5,931 | 7,712 | 4,550 | 3,019 | 4,425 |
| Total resources | 285,774 | 302,234 | 331,733 | 333,211 | 347,603 |
| LIABILITIES. | |||||
| Dec. 31. 1914. | Jan. 29. | Feb. 26. | Mar. 26. | Apr. 30. | |
| Capital paid in | 18,051 | 20,440 | 36,069 | 36,105 | 39,669 |
| Government deposits | |||||
| Reserve deposits, net | 263,948 | 279,516 | 290,336 | 288,217 | 294,832 |
| Federal Reserve notes, net liability | 3,775 | 2,278 | 5,328 | 8,889 | 11,038 |
| All other liabilities | 2,064 | ||||
| Total liabilities | 285,774 | 302,234 | 331,733 | 333,211 | 347,603 |
| RESOURCES. (continued) | |||||
| [In thousands of dollars.] | |||||
| May 28. | June 25. | July 30. | Aug. 27. | Sept. 24. | |
| Gold coins and certificates in vault | 219,187 | 222,746 | 212,988 | 211,145 | 229,972 |
| Gold settlement fund | 23,426 | 31,360 | 52,140 | 55,930 | 59,050 |
| Gold redemption fund | 1,027 | 1,081 | 1,064 | 1,104 | 1,202 |
| Total gold reserve | 243,640 | 255,187 | 266,192 | 268,179 | 290,224 |
| Legal tender notes, silver, etc. | 31,989 | 47,848 | 22,092 | 19,878 | 22,920 |
| Total reserve | 275,629 | 303,035 | 288,284 | 288,057 | 313,144 |
| Commercial paper | 24,747 | 25,996 | 29,102 | 29,275 | 31,373 |
| Bankers' acceptances | 9,204 | 10,379 | 11,625 | 13,564 | 13,058 |
| United States Bonds | 6,947 | 7,601 | 7,923 | 8,836 | 9,328 |
| Municipal warrants | 23,094 | 11,509 | 16,107 | 25,808 | 24,945 |
| Federal Reserve notes, net assets | 7,765 | 9,124 | 11,029 | 12,491 | 14,866 |
| Due from other Federal Reserve Banks, net | 7,435 | 8,311 | 7,078 | 6,990 | 7,409 |
| All other resources | 5,426 | 5,501 | 5,904 | 4,962 | 3,577 |
| Total resources | 360,247 | 381,456 | 377,052 | 389,983 | 417,700 |
| LIABILITIES. | |||||
| May 28. | June 25. | July 30. | Aug. 27. | Sept. 24. | |
| Capital paid in | 54,158 | 54,200 | 54,181 | 54,689 | 54,748 |
| Government deposits | 15,000 | ||||
| Reserve deposits, net | 292,050 | 311,349 | 306,183 | 316,989 | 329,941 |
| Federal Reserve notes, net liability | 10,921 | 12,617 | 14,965 | 16,738 | 15,348 |
| All other liabilities | 3,118 | 3,290 | 1,723 | 1,567 | 2,663 |
| Total liabilities | 360,247 | 381,456 | 377,052 | 389,983 | 417,700 |
| RESOURCES. (continued) | |||||
| [In thousands of dollars.] | |||||
| Oct. 29. | Nov. 26. | Dec. 30. | |||
| Gold coins and certificates in vault | 218,224 | 245,986 | 266,546 | ||
| Gold settlement fund | 61,960 | 73,830 | 77,293 | ||
| Gold redemption fund | 1,222 | 1,252 | 1,124 | ||
| Total gold reserve | 281,406 | 321,068 | 344,963 | ||
| Legal tender notes, silver, etc. | 37,058 | 37,212 | 13,525 | ||
| Total reserve | 318,464 | 358,280 | 358,488 | ||
| Commercial paper | 30,448 | 32,794 | 32,368 | ||
| Bankers' acceptances | 13,619 | 16,179 | 23,013 | ||
| United States Bonds | 10,505 | 12,919 | 15,797 | ||
| Municipal warrants | 25,014 | 27,308 | 12,220 | ||
| Federal Reserve notes, net assets | 19,723 | 19,176 | 21,910 | ||
| Due from other Federal Reserve Banks, net | 8,533 | 14,053 | 20,767 | ||
| All other resources | 3,645 | 4,633 | 6,547 | ||
| Total resources | 429,951 | 485,342 | 491,110 | ||
| LIABILITIES. | |||||
| Oct. 29. | Nov. 26. | Dec. 30. | |||
| Capital paid in | 54,838 | 54,846 | 54,915 | ||
| Government deposits | 15,000 | 15,000 | 15,000 | ||
| Reserve deposits, net | 343,554 | 397,952 | 400,012 | ||
| Federal Reserve notes, net liability | 13,918 | 13,385 | 13,486 | ||
| All other liabilities | 2,641 | 4,159 | 7,697 | ||
| Total liabilities | 429,951 | 485,342 | 491,110 | ||
FOOTNOTES:
[287] O. M. W. Sprague, The Federal Reserve Act of 1913, The Quarterly Journal of Economics, Vol. 28, No. 2, February, 1914, pp. 213-254.
[288] [The country has been divided into twelve districts in each of which a Federal Reserve Bank began operations November 16, 1914.]