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for emergency would beget an exceptionally desirable feeling of confidence.

The council announced itself as in entire accord with the views already expressed by the board, suggesting caution in the use of credits open for a long period of renewals. It also renewed its recommendation that the National Bank Act be amended so as to enable National banks in reserve and central reserve cities to establish branches within those cities.

ESTABLISHMENT OF BRANCHES BY NATIONAL BANKS

September 29, 1916, the American Bankers' Association, at its annual meeting held at Kansas City, after a spirited debate adopted resolutions against the proposed amendment to the Federal Reserve Act permitting National banks to establish branches in the city in which they are located, or in the adjacent districts. Members of the last Congress received many communications opposing this amendment. Country banks in particular based their objections on the ground that statutory recognition of such a right would be an "entering wedge" and, no matter how the privilege was restricted, it could be considered only a step which would lead ultimately to a general legal recognition of the branch banking system.

There was no support from bankers for that part of the amendment which permitted the establishment of branches outside of the city in which the parent bank operates. The suggestion for such branches came from the Comptroller of the Currency and, with some modification, was approved by the Federal Reserve Board. The banks in some of the larger cities desire to establish branches in their own localities to enable them to compete with State institutions which have branches.

Section 5151 of the United States Revised Statutes in part is as follows:

1 Paine's National Banking Laws (7th Ed.), p. 54.

It shall be lawful for any bank association organized under State laws, and having branches, the capital being joint and assigned to and used by the mother bank and branches in definite proportions, to become a National banking association in conformity with existing laws, and to retain and keep in operation its branches, or such one or more of them as it may elect to retain.

On pages seventy-four and seventy-five, volume one of the report of the Comptroller of the Currency for 1915, will be found a list of the National banks which have branches. The Bank of California National Association, of San Francisco, has branches in Portland, Ore., Tacoma and Seattle, Wash., and Virginia City, Nev. The following statement shows the way in which a National bank may secure branches:

In 1915 the Century Bank of the City of New York, with twelve branches, all located within the City of New York, was converted into the Century National Bank of New York, capital $1,150,000 (which has since been increased to $3,500,000), of which $100,000 was assigned to each of eleven of the branches and $50,000 for the other. The Century National Bank of New York subsequently acquired the business of the Chatham and Phenix National Bank of New York, and by change of title became the Chatham and Phenix National Bank of the City of New York.

The Chatham and Phenix National Bank has twelve branches.

II.-CIRCULARS AND REGULATIONS

CIRCULARS AND REGULATIONS, 1915

January 2, 1915, the Federal Reserve Board issued the first of its circulars and regulations, series of 1915. Some of the circulars are reissues of those circulated in 1914. This is the first circular of a new series:

CIRCULAR NO. 1, SERIES OF 1915

WASHINGTON, January 2, 1915.

ISSUANCE OF CIRCULARS AND REGULATIONS

For the convenience of all concerned the Federal Reserve Board has determined to revise certain of its circulars and regulations, and to reissue such of those as it desires to retain in force; the new series to be known as the "Series of 1915." It proposes hereafter to issue circulars and regulations each year in a new series, and there is appended hereto a list of the previously issued circulars and regulations and the disposition made of them.

In this way circulars and regulations of only passing interest will be dropped and only those of permanent importance reissued.

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No. 8.... Outline of plan of organization for Oct. 17 federal reserve banks.

No. 9 a.. Procedure for meeting of reserve bank officers and directors of Oct. 20-21.

plicable, but to be reissued.

Do.

.....

No longer applicable.

No. 10...

No. 11...

In regard to the deposit of reserves
due Nov. 2, 1914.
Reports of committees of officers
and directors of federal reserve
banks at Washington meeting of
Oct. 20-21, 1914.

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No. 12... Payment of first installment of stock Nov. 6 subscriptions of member banks to

the federal reserve banks.

No. 13... Regarding commercial paper eligible Nov. 10
for rediscount by federal reserve
banks.

Do.

Will be reissued in somewhat modified form.

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