Federal Reserve Bulletin (Paperback)

This historic book may have numerous typos and missing text. Purchasers can usually download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1918 edition. Excerpt: ...factor in this situation will be the avoidance of increase in the interest allowed on deposits--both those of individuals with banks and those of banks with other banks. The Board has for some time past endeavored to obtain a general agreement among the banks of the financial centers which would check the practice of competing for deposits by raising rates thereon. During the past month the banks of Chicago have adopted the same scale of payment for bank deposits which had been previously accepted in New York, as announced in the Federal Reserve Bulletin of April. In order to equalize conditions, the Federal Reserve Bank of Chicago placed its 90-day rate upon the same footing as that of the New York bank, while the local member banks undertook to regulate their rates to depositors upon a scale fixed with reference to this rate charged by the Federal Reserve Bank--the policy previously agreed upon in New York. Negotiations looking to the same end have been in progress at other points. The adoption of the plan should be made as general as possible in order that such relations between the banks and their customers may be standardized. There should be no effort on the part of any one place or section of the country to bring about artificial diversion of funds from any other. Intelligent cooperation in this matter is a dictate of selfprotection for the banks, and at the same time a duty toward the country. Conferences of bankers, cotton spinners, and cotton growers were held in Cotton financ-Ngw 0rleang on July 5 and in Washington on July 15 and 16, and various representatives of the several interests affected consulted informally with the Federal Reserve Board. The subjects discussed related chiefly to the financing of cotton for the season...