Show various proposals that in ember banks in the federal reserve system should participate more largely in fa its pot net earnings through nn an increase in tho the dividend rato rate above tho the present fixed 6 per cent would be a very small financial an ancial inducement to them it la Is declared in hi a recent study of this subject by tho the economic policy commission of tho the american bankers association so this la Is shown the commission says ly by a theoretical forecast on tho the basis of the past six years of additional dit ional earnings that would bo be disbursed to member banks during the next six years under two plans plana introduced in bills ir eforo the united states senate tho the fletcher Flot cher bill provides that federal reserve bank earnings after present G 6 per cent dividends to mom bers and completion of a per cent surplus should all be distributed is as extra dividends to tho the stockholder oi banks the report says it if the earn ings dings of each federal reserve bank bafik were distributed among its own members there would be no extra dividends in the boston now new york phila adelph adelphia la cleveland chicago and san francisco districts during the next alx years but tho the other elz federal reserve banks would pay annual extras at the following rates richmond COS percent per cent atlanta per cent st louis per cent minneapolis per cent kansas city per cent dallas per cent it if the earnings were pooled and ana paid out to all members in all districts each member would receive an average annual extra dividend of 78 per cent under this plan no franchise tax as now would be paid by the federal reserve banks to tho the federal government another plan analyzed the glass bill would provide that after present 5 0 per cent dIvI dividends dividend deni ono one halt half tho the remainder should be paid to member banks as is an extra dividend with the iho residue going to surplus ur and aid F federal government as franchise tax tho the average annual extras to members would be as follows doston boston district per cent now york 48 per cent philadelphia per cent cleveland per cent richmond per cent atlanta per cent chicago percent per cent st louis per cent minneapolis per cent kansas city per cent dallas por per cent san pra francisco li cisco per pei cent it if these extra funds were pooled tho the result would be an all extra average annual dividend of per cent for each member under this plan the system would still pay as now an annual franchise tax amounting to on the average by way of concrete instance the report says bays a member bank having capital and surplus of therefore holding federal reserve bank stock istock amounting to 0 on u which it Is receiving under the present 6 per cent dividend arrangement would with the addition of each 1 per cent to the dividend rate receive an additional income of 60 a year if each me member bank will figure out ibor for itself the dollar and cents gain it would enjoy we are confident it will be agreed that the gains are small as against the economic disadvantages which can be pointed out it concludes |