Show RESERVE SYSTEMS DIVIDENDS ANALYZED bankers find increased payments I 1 to member banks would be small inducement various proposals that member tanks banks in the federal reserve system should participate more largely in its net earnings through an increase in the dividend rate above the present fixed 6 per cent would be a very small financial inducement to them it is declared in a recent study ot of this subject by the economic policy commission ot of the american bankers association so this is shown the commission says by a the theoretical ore forecast on the basis of 0 the past six years ot of additional dit ional earnings that would be disbursed to member banks during the next six years rears under two plans introduced in bills before the united states senate the fletcher bill pro provides yides that federal reserve bank earnings after present 6 per cent dividends to members and completion of a per cent surplus should all be distributed as extra dividends to the stockholder banks the report says it if the earnings of each federal reserve bank were distributed among its own members there would be no extra dividends in the mhd boston new york phila adelphia cleveland chicago and san francisco districts during the next six years but the other six eix federal reserve laahs would pay annual extras at the following rates richmond per cent atlanta per cent st louis aeo per cent minneapolis 91 per cent cant kansas city per cent dallas per cent it the earnings were pooled and paid out to all members in all districts each deml member er would receive an average annual extra dividend ot of 78 per cent under this plan no franchise tax as now would be paid by the federal reserve banks to the federal government another plan analyzed the glass bill would provide that after present 6 per cent dividends one halt half the remainder should be paid to member banks as an extra dividend with the residue going to surplus and federal government as franchise tax the average annual extras to members would be as follows boa ton district per cent new york AS per cent Phila philadelphia dephia per cent cleveland per cent richmond per cent atlanta per cent chicago per cent st louls louis per cent minneapolis per cent kansas city per cent dallas percent per cent san 2311 francisco laoo per cent it if these extra funds were pooled the result would lo le an extra average annual dividend ot of per cent for each member under unde e this plan the system would still pay rs ra now an annual franchise tax to on the average by way ot of concrete instance the report says a member bank having capital and surplus of therefore holding federal reserve bank stock amounting to on which it Is receiving ago under the present 6 per cent dividend arrangement would with the addition ot of each I 1 per cent to the dividend rate receive an additional income of 0 60 0 a year it if each member bank will figure out for itself the dollar and cents centa gain it would enjoy we are confident it will be agreed that the gains are small as against the economic disadvantages which can la be pointed out it concluded |