[...]... European systems of banking, the branch system is widely employed, which accounts for the centralization of the system of banking In the United States branch banking has been practically prohibited ever since the inauguration of the national banking system, either as a result of law or of conditions and cus- toms equivalent thereto Upon the banking system thus organized has now been superimposed the Federal. .. trustee, and the like, acting as administrator, registering stocks and The Federal Reserve io and bonds, otherwise performing fiduciary duties Shortly after the Constitution of the United States was adopted, Alexander Hamilton, who was then Secretary of the Treasury, secured the adoption by Congress of a plan for the Bank establishment of a This was the so-called " of the United States First Bank of the United. .. RESERVE SYSTEM 297 APPENDIX 313 INDEX 278 " 333 xiii THE FEDERAL RESERVE CHAPTER I BANKING IN THE UNITED STATES IN THE United States to-day three distinct of banking may be distinguished: systems (1) The national banking system organized under Federal law The commercial banking system organ- (2) ized under the laws of the several States The system of special institutions organunder State laws, and including... United States, " which was granted a charter for twenty was allowed to lapse years shortly before the War of 1812 There was then no sub-treasury system, and the closing That of the First charter Bank of the United States, which held the funds of the national Government, necessitated the redepositing of these funds in State banks Most of the State banks were small and unsatisfactory; many failed The United. .. percentage of the face thereof The 12 Federal Reserve form of national currency This was behave the double advantage of creating a demand for Government bonds, and in the lieved likely to of unifying the currency The State banks accepted national charters so slowly, however, and so few new national banks were organized, that Congress, shortly after the close of the Civil War, imposed a tax of 10 per...INTRODUCTION of great importance that the American people should understand fully not only the text of the Federal Reserve Act, but, as well, its IT is history during the process of enactment, and I am sure that this book deepest pleasure by the subject of banking all will be read with the who are interested in The Federal Reserve Act has already been, and be in the future, of the greatest advantage, not alone... United States Government was not able to accommodation from the State banks get good during the War of 1812 When peace returned a plan for another Bank of the United States was put forward, and the chartered period in with institution was finally a twenty-year life The Second Bank of the United States 1816, Government deposits and acted as FisAgent It was an efficient institution, but held the cal it... incurred the enmity of those in charge of the Banking in the United States n Government about the year 1830, and ultimately a renewal of its charter was refused general After ceased to exist, funds were again de- it posited with State banks, and that plan once more proved unsatisfactory In 1846 the inde- pendent or sub-treasury system of the United States was established, and the funds of the Government... the one case as in the other, but the method of procedure is different The national banking system is a system of commercial banks, and the same is true of Trust companies are institutions which frequently do a large com- many of the State systems banking business, but which undertake a variety of additional functions that have mercial nothing to do with banking, such as those of serving as executor,... national bank is required to become a member of a methods corporation known It is obliged to as a Federal reserve bank take out stock in this Federal bank to an amount equal to 6 per cent, of capital and surplus, one half being paid up, reserve its and the other constituting a liability of the bank taking stock While every national bank must thus become a member of and stockholder in the Federal reserve . in America to-day. THE AMERICAN BOOKS THE AMERICAN COLLEGE BY ISAAC SHARPLESS THE INDIAN TO-DAY BY CHARLES A. EASTMAN COST OF LIVING BY FABIAN FRANKLIN THE AMERICAN NAVY BY REAR-ADMIRAL FRENCH E. CHADWICK, U. S. N. MUNICIPAL FREEDOM BY OSWALD. a brief introductory discussion of banking conditions in the United States, and a short sketch of the history of the demand for banking legislation, as well as of the reasons which ultimately dictated action. Within the space at my disposal it is not possible to afford more than. book will be read with the deepest pleasure by all who are interested in the subject of banking. The Federal Reserve Act has already been, and will be in the future, of the greatest advantage, not alone to