Show RESERVE SYSTEMS DIVIDENDS ANALYZED bankers find increased payments to member banks would be small inducement various proposals proposal that afe member aver banks in tha the federal reserve system should participate more largely la in its net earnings through an increase in the dividend rate above the present fixed 6 per cent I 1 would he be a very small financial inducement I 1 to them it Is declared in a recent study ot of this subject by the economic policy commission of the american banker bankers association this Is shown the commission says by a theoretical forecast on the basis of the past six years ot of ad dit lonal ional earnings that would be dis buried to member banks during the next six years under two plans introduced in bills before the united states senate the fletcher pletcher bill provides that federal reserve bank earnings after present 6 per cent dividends to members and completion ot of a per cent surplus should all be distributed as extra dividends to the stockholder banks the report says I 1 it if the earnings ot of each federal reserve bank were distributed among its own allt members there would be no extra dividends in the boston new now york phila adelphia adelph la cleveland chicago and san francisco Pran cisco districts during daring the next elx six years but the other elx six federal reserve banks would pay annual ex tras at the following rates richmond 6 08 per cent atlanta 4 09 per cent st louis 3 50 per cent minneapolis 9 51 per cent kansas city 5 48 per cent dallas 4 83 per cent it the earnings were pooled and paid out to all members in all districts each member would receive an average annual extra dividend of 78 79 per der cent under this plan no franchise tax as now would be paid by the fed oral eral 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 fran chise tax the average annual extras to members would be as follows bos BOB ton district 2 51 per cent new york 48 per cent philadelphia 2 05 per cent cleveland 2 09 per cent rich mond 3 26 per cent atlanta 4 67 per cent chicago 3 20 percent per cent st louis per cent minneapolis per cent kansas city 2 74 per cent dal las lag 3 31 per cent san francisco Franc laco per cent if these extra funds were pooled the result would be an extra average annual dividend ot of per cent tor for each member under this plan the system would still pay day as now an annual franchise tax amounting to on OIL the average by way of concrete instance the report says a member bank having capital and surplus of therefore holding federal reserve bank stock amounting to 6 0 on an which it Is receiving under tha the present 6 per cent dividend arrangement arrangements would with the addition 0 of each 1 per cent to the dividend rate receive an additional income 0 of 60 a year it if each member bank will figure out tor for itself the doll dolla arand cente cents gain it would enjoy we are confident it will be agreed that the galna ore are small as against the eco economic nomia which can cak outs U coa eludes L |