Federal Reserve Agents' Fund-Summary of transactions Mar. 24, 1916, to Apr. 20, 1916.

Federal Reserve Agent at

Federal Reserve Agent at

Gross Individual and Bank Deposits.

trates the small ratio which bank deposits bear to individual deposits in country banks, and the increasing ratio of bank deposits to individual deposits in reserve city banks, and, finally, the very high ratio in the case of central reserve city banks where the amount of bank deposits almost equals the individual deposits. The figures are also given herewith.

The subjoined chart illustrates graphically the fluctuation in individual and bank deposits in the three groups of national banks, to wit, country, reserve city, and central reserve city banks, as disclosed by the various calls of the Comptroller of the Currency, beginning with June 30, 1914, and ending with December 31, 1915. The chart also illusGross individual and bank deposits of national banks.

INFORMAL RULINGS OF THE BOARD.

Below are reproduced letters sent out from time to time over the signatures of the officers of the Federal Reserve Board which contain information believed to be of general interest to Federal Reserve Banks and member banks of the system:

Clayton Act and State Banks.

You are advised that section 8 of the Clayton Act prohibits a person who is a director of a State bank with resources aggregating more than $5,000,000 from serving at the same time as a director of any national bank, regardless of the size or location of that national bank. That section, however, does not prohibit a person who is a director of a State bank with resources aggregating more than $5,000,000 from serving at the same time as an officer or employee of any national bank, unless both institutions are located in the same city of more than 200,000 inhabitants or unless the State bank in question is a member of the Federal Reserve System.

You are advised, therefore, that under the facts as presented in your letter there is no prohibition against a dírector in the trust company you name from serving at the same time as an officer or employee of the consolidated bank referred to.

MARCH 4, 1916.

Foreign Bank Branches in United States.

In reply to your letter of March 30, 1916, you are advised that there is no provision in the laws of the United States relating to the right of a foreign bank to establish branches in this country. A proper determination of that question, therefore, depends upon the laws of the various States in which it is intended to operate such branches.

A foreign bank, like a corporation of any other State of the Union, which intends to establish a branch in any particular State of the United States, would have to conform to the laws of that State, not only as to the conditions of its admission, but also as to the manner and extent of its operations after receiving permission to commence business. APRIL 4, 1916.

Bonds Securing Circulating Notes.

Under the provisions of the National Bank Act any national bank desiring to withdraw its the deposit of lawful money with the Treasurer, circulating notes in whole or in part may, upon take up the bonds deposited with the Treasurer for the security of such notes, provided, however, that the amount of bonds on deposit shall not be reduced below $50,000 in the case of a bank having a capital of more than $150,000, nor below one-fourth the amount of the capital in the case of a bank whose capital is $150,000 or less.

Section 18 of the Federal Reserve Act provides in part that—

"Any member bank desiring to retire the whole or any part of its circulating notes may file with the Treasurer of the United States an application to sell for its account, at par and accrued interest, United States bonds securing circulation to be retired."

One of the purposes of this section, as its title indicates, was to provide for the refunding of bonds deposited by national banks to secure circulation. It will be observed that, while a limit is placed on the amount which the Federal Reserve Banks may purchase in any one year, no limitation or restriction was incorporated in this section on the amount that any national bank may sell.

You are accordingly advised that under the interpretation of this section, which has been adopted by the Treasury Department, national banks are not required to maintain a minimum amount of bonds on deposit with the Treasurer, provided such bonds are sold through the Treasurer under the provisions of section 18. APRIL 8, 1916.

DISTRICT No. 8.

would not, therefore, under section 5202, as amended, have to take into account, in deter- Trustee, executor, administrator, and registrar of stocks mining the total amount of your liability, paper rediscounted with the Federal Reserve Bank.

and bonds:

First National Bank, Mount Vernon, Ind.
Central State National Bank, Memphis, Tenn.
DISTRICT No. 11.

and bonds:

First National Bank, Beaumont, Tex.
Trustee:

First National Bank, Troup, Tex.

Intradistrict Clearing System.

Additions to and withdrawals from the intra

(2) There is no limitation in the law as to the total amount of rediscounts which a member bank may take from the Federal Re- Trustee, executor, administrator, and registrar of stocks serve Bank. There is, however, a provision in section 13 of the Federal Reserve Act providing that the aggregate of notes bearing the signature or indorsement of any one person, corporation, etc., rediscounted by the Federal Reserve Bank for any one bank shall at no time exceed 10 per cent of the unimpaired capital and surplus of said bank. This clause of the Act contains an exception as to the discount of bills of exchange, but no exception is made as to the discount of promissory notes. If, therefore, any particular paper which you present for rediscount to the Federal Reserve Bank, either singly or added to the paper of the same makers or indorsers which the Federal Reserve Bank has already rediscounted for you, amounts to a total of more than 10 per cent of the unimpaired capital and surplus of your bank, the Federal Reserve Bank, under the clause above quoted, has no authority to rediscount.

APRIL 17, 1916.

Fiduciary Powers.

Applications from the following banks for permission to act under section 11 (k) of the Federal Reserve Act have been approved by the Board since the issue of the April Bulletin, as follows:

DISTRICT NO. 1.

Registrar of stocks and bonds:

Ansonia National Bank, Ansonia, Conn.

DISTRICT No. 3.

district clearing system since the publication of lists in previous issues of the Bulletin are as follows:

Withdrawals:

DISTRICT No. 1.

First Bridgeport National Bank, Bridgeport, Conn.
Danbury National Bank, Danbury, Conn.
Greenwich National Bank, Greenwich, Conn.

Additions:

DISTRICT No. 2.

Connecticut National Bank, Bridgeport, Conn.
Danbury National Bank, Danbury, Conn.
Greenwich National Bank, Greenwich, Conn.
National City Bank, Troy, N. Y.

LAW DEPARTMENT.