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Show PUNS FflU RESERVE raNGPODPOSED Members of Federal Board Arrange to Settle Members' Mem-bers' Balances. WASHINGTON", Feb. 6. Conferences between membr! of the federal reserve board and officers of several of the reserve banks have developed definite plans for tho extension of clearing house operations by the twelve regional reserve re-serve bauks. One feature of the plan, it was learned today, provides for the 'reation of a central fund of about $2j,Ou'J,00u to be held in Washington to the credit of the reserve banks to take care of clearing operations between them. The results of the deliberations, which lnsted several days, will be laid before the entire federal reserve board next Monday. .Since the plans have the anproval of YV. P. G. Harding and Paul Ij. Warburg, two members experienced in practical banking, it was believed tonight that they would be indorsed. It was pointed out that no attempt is to be made toward hasty action, but it was understood to have been unanimouslv agreed in the conferences that the time has arrived when the clearing functions of the twelve banks jhould be exercised as fully as possible. Acrual development of the clearing pvstem through the reserve banks will be gradual, Dut it was the belief of the reserve board that these banks will in time take the place contemplated in the reserve act and do practically all the clearing for member banks. .According to information tonight, the central fund in Washington was to be a gold fund made up of deposits from each of the twelve reserve banks. As now contemplated, each bank might put up about 10 per cent of its reserve funds in the central fund. It was understood that the secretary of the treasury might place some of the government gov-ernment money now on deposit with the national banks in the fund, to the credit of federal reserve banks. Such action would allow reserve banks to make smaller deposits in the central fund from their own resources. This part of the plan w&s said not to have met the approval of Ir. MxAdoo as vet, and it is possible that it will not be adopted. Its rejection will not affect the general propcs.il, however. It hag been estimated that the handling han-dling of the central fund here will not t entail any great burden on the force j of the federal reserve board. It will ! be devoted exclusively to taking care of items between federal reserve banks themselves and will have the practical result of setting up a clearing agency in Washington for the twelve banks. Balances probably will be adjusted oulv once a week or once a month and will be largely matters of bookkeeping. In connection with clearings within ; the district the board laid plans which ; will not force member banks to cl-ar : through their reserve banks, but which, it is hoped, will prove attractive to bankers and show the advantages of general intra-district clearing. |