the amounts of uncollected funds appearing on its books to the credit of each member bank. Such analysis will show the true status of the reserve held by the Federal Reserve Bank for each member bank and will enable it to apply the penalty for impairment of reserve.
A schedule of the time required within which to collect checks will be furnished to each bank to enable it to determine the time at which any item sent to its Federal Reserve Bank will be counted as reserve and become available to meet any checks drawn.
(9) In handling items for member and clearing member banks, a Federal Reserve Bank will act as agent only. The Board will require that each member and clearing member bank authorize its Federal Reserve Bank to send checks for collection to banks on which checks are drawn and, except for negligence, such Federal Reserve Bank will assume no liability. Any further requirements that the Board may deem necessary will be set forth by the Federal Reserve Banks in their letters of instruction to their member and clearing member banks. Each Federal Reserve Bank will also promulgate rules and regulations governing the details of its operations as a clearing house, such rules and regulations to be binding upon all member and non-member banks which are clearing through the Federal Reserve Bank.
(10) The cost of collecting and clearing checks must necessarily be borne by the banks receiving the benefit and in proportion to the service rendered. An accurate account will be kept by each reserve bank of the cost of performing this service and the Federal Reserve Board will, by rule, fix the charge, at so much per item, which may be imposed for the service of clearing or collection rendered by the reserve banks, as provided in section 16 of the Federal Reserve Act.
Abstinence and the accumulation
of capital, 6.
Aldrich-Vreeland Act, 221.
Balances, minimum, 31; influence
on bank profits, 32.
Bank, general functions, 13; de-
fined, 19; reserves, 19; invest-
ments, 44-46; control of cap-
ital, 49, 69; deposits, 67;
credit, 68, 76; affiliation, 143.
Bank notes. See under Notes.
Canada, Banks of, 55, 62.
Capital, influence on production,
6; idleness of, 11; market for,
12; circulating, 47; investment
of, 51.
Capital goods, 5.
Capitalistic system, 6.
Centralized reserve control, 188.
Checks, usefulness of, 21; func-
tions of, 37; lead to speedy
redemption, 98, 99; expansion
restrained by redemption of,
Clearing system, 29, 30; expe-
dites redemption of checks,
100; process of, 105; local,
106; intercommunity, 107-109,
114-117; secondary clearing
center, 118; organization of,
187
Commercial or credit bank, 16.
Commercial paper brokers, 228.
Credit, nature of, 65; variations
in demand for, 84; confidence
and, 85; expansion, 95; gold
movement and, 97; and inter-
national control, 101; elastic-
ity, 140, 158, 159, 179; trans-
formation, 152; central re-
serve control, 162; overexpan-
sion, 182.
Currency, domestic shipments,
122.
Defects in our system up to
England, Bank of, notes of, 55;
cash reserves of, 61; gold ex-
ports of, 166; system of, 191.
See European banks.
English discount houses, 47, 48,
194.
English country banks, 52.
English private banks, 194.
English government and Bank of
England, 53.
European
banks (England,
France, Germany), credit elas-
ticity, 195, 196; procedure in
field of discounts, 196, 197;
loans, 197, 198; reserves, 198,
199, 200; credit rates, 200, 201,
202; note reserves, 202-204;
reserve for notes, 204, 205;
general assets, 205; reserve
protection, 211, 212.
Exchange, domestic, 120, 121.
Federal Reserve, cash reserves,
61; banks, 241; districts, 241;
capital of banks, 241; member-
ship, 242; branches, 243; elec-
tion of directors, 244; manage-
ment of banks, 244; dividends,
245; surplus, 245; excess earn-
ings, 245; taxes, 245; fran-
chise, 244; board, 246, 268;
deposits, 247; advisory coun-
cil, 247, 269; bank deposits,
248; elasticity of deposits, 249,
250; note expansion, 250;
notes, 251, 252, 271-272; con-
trol of note expansion, 252;
contraction of notes, 254; re-
discounting, 256, 274, 280, 281,
282; discount market, 257;
banks clearing functions, 249,
260; dollar exchange, 261; for-
eign agencies, 261, 262; for-
eign exchange and gold move-
ments, 262; discount rate, 263,
280; gold standard, 263; ex-
aminations and publicity, 263,
264, 305; districts, 265; mem-
bership, 266, 267; opening of,
268; government deposits, 270;
fiscal agents, 271; promissory
notes, 275; single-name paper,
276; drafts, 276, 279; bills of
exchange, 276, 279; trade ac-
ceptances, 276, 279; commodity
paper, 277; agricultural pa-
per, 277; bankers' accept-
ances, 277, 279; collateral
loans to member banks, 279;
gold settlement fund, 287;
process of clearing through
gold settlement fund, 287;
voluntary system of clearing,
290; country wide clearing and
collection plan, 292; foreign
operations, 295, 296; gold ex-
ports, 299; gold imports, 300;
division of audit and exam-
ination, 302; credit bureau,
304; bulletin, 306.
Foreign exchange, 127, 133, 134,
135, 136.
Foreign credits, 169, 172.
France, Bank of, 55, 61, 191.
See European banks.
Germany, Imperial Bank of. See
Reichsbank.
Gold, loss of, serious, 97; and
credit operations, 98; not
medium of international ex-
change, 125; points, 137; in-
ternational movements of, 137,
138; exports, 163, 164; pre-
mium, 165; purchase of, 170;
imports, 170.
Government supervision, 189.
Government deposits, 219.
Inflation, and redemption, 96;
and gold exports, 172.
International banking, 127.
International exchange, gold not
the medium of, 125; payments,
126; and favorable position of
U. S., 131; unit of, 129
International loans, 128.
International market, 132.
Investment bankers, 16, 228.
Investments, fixed, 50; as cover
for notes and deposits, 154,
Liquid capital and banks, 49.
Loans and discounts, 24; nature
of, 26; security of, 27; call,
48; short time, 48; long time,
48; personal, 71;
interest
rates and, 72; basis of, 146.
Loan and discount market, 143.
Localization of industry, 4.
London, world clearing house,
130; financial position since
opening of Great War, 131.
Mint par, 134.
Mortgage loans, 15.
National banks, origin of, 215;
organization, 216, 217; reserve
requirements, 218; note issue,
219; suspension, 220.
National organizations of bank-
ing, 176.
New York Clearing House, 30,
38.
Notes, bank, defined, 33; as
source of profit, 35; general
acceptability of, 39, 53; re-
deemability of, 54; legal ten-
der, quality of, 55; for reserve
purposes, 56; importance of re-
serve, 57; secondary reserve
for, 57; protection of holders
of, 58, 59; special cash reserve
for, 61; government guarantee
of, 62; redemption of, 102, 103,
104; monopoly of, 153, 186;
free and limited systems of
issue, 154; competitive sys-
tems, 186.
importance of, 40; required,
41; secondary, 43; back of
notes, 55; centralized, 113;
systems of, 113; decentralized,
114, 146; mobility of, 140,
141, 142; accessibility of, 144;
quantity necessary, 144, 145;
means of strengthening, 146,
147, 148; and liabilities, 157;
mobilization of, 179, 180; scat-
tering of, 229; deadline re-
quirements of, under National
Banking System, 230.
Risk, importance of, 25; and in-
terest rates, 73.
Savings banks, 14.
Saving and investing, 9.
Social factors, influence of, on
banking business, 78.
Speculation and misproduction,
95.
State banks, 222, 223, 224, 225,
226, 227.
Stringency, 87.
Supervision, government, 52.
Time element, 25.
Trust companies, 223, 224, 225,
226, 227.
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