Image from page 466 of "Banking and business" (1922)
Title: Banking and business
Publisher: New York, London : Harper & Brothers
Contributing Library: University of California Libraries
Digitizing Sponsor: MSN
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form for examina-tion by members of the board as will aid them in formingconclusions regarding the business of member banks,as indicating necessary changes in rates of discount, andas otherwise determining the policy to be pursued inthe general conduct of the banking system. A latermodification of this part of the boards work was madeby the appointment of a statistician in general chargeof the statistical work of the organization, while theroutine work of compiling reports was left to the Divi-sion of Accounts under an independent head. In 1918a Division of Analysis and Research was organized. Toit was given the general scientific work of the boardand the supervision of the monthly Bulletin and otherscientific publications. In the Federal Reserve Act it was specified that eachFederal Reserve bank might act as a clearing housefor its members, but that the Federal Reserve Boardmight act as a clearing house for the Federal Reservebanks, or might designate one of the Federal ReserAc ii^-i
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FEDERAL RESERVE OPERATION 440 banks thus to act. In pursuance of this authority, theboard has estabhshed a Division of Clearing in Washing-ton for the purpose of settUng balances between FederalReserve banks without the actual shipment of coin.This division is in charge of a fund of about $426,000,-000 in gold, and conducts a set of books on which arerecorded from day to day credits and debits betweenFederal Reserve banks arising out of their operationsduring the day. As given banks are credited ordebited on these books, the amount of their ownershipin the gold fund changes. III. Supervision of Reserve Banks. Federal Reserve banks which are under special obli-gations and duties are not only closely supervised by,but in fact operated under, close government super-vision. Two features deserve to be specially noted inthis connection: 1. Owing to its close relation with the government,each Federal Reserve bank has a special officer repre-senting the government, who is chairman of its boar
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