Show DIVIDENDS ANA ly ZE bankers find increased pay ments to member banks would Be Small inducement various proposals that banks in the federal reserve system should participate more diore largely in its net earnings through an increase in the divi dividend lend rate above the present fixed 6 per cent would be a very small financial inducement to them it is declared in a recent study of this subject by the economic policy commission of th the american bankers association so clation this is shown the commission says by a theoretical forecast oa on the basis of 0 the past six years of additional dit ional I 1 earnings that would be disbursed to member banks during the next six years under two plans introduced in bills before the united states senate the rie fietcher bill pro provides yides that federal reserve bank batni earnings earn inge after present 6 per cent dividends to members and completion of a per cent surplus should all le be distributed as extra dividends to the stockholder banks the report says saya it if the earnings of federal reserve ba lank were bete distributed among its own members there would be no extra dividends in the boston new mow york phila adelphia cleveland chicago and san francisco districts during the next six years but the other six aix Y federal reserve banks banka would pay annual ex trus artlie at the following rates rated richmond per cent atlanta 40 4 0 per cent st louis 3 50 per cent minneapolis per cent kansas city per cent dallas 4 sa per cent it if the garn earnings ings were pooled and raid paid out to all members in all districts each member w would receive un an average an annual nual extra dividend of 61 78 per cent under udder this plan no franchise tax taa as aa now would ie paid by the federal R reserve banks to the F oderal federal government another plan analyzed the glass bill would provide that after pret present Lent 6 owr per cout dividends one halt half the falder should be paid to t bank sas an extra dividend with abe the 5 residue going to oar surplus and jr federal government Govern mant as franchise tax the tha average annual extras to members would be as follows ws bostow boston Di district 51 per centa xeva york 48 pc por r eni philadelphia per clr cent 2 20 ad oa VP cent Zent rich mana per cent St atlanta liAti per cent chicago per cent st louis per cent minneapolis per cent kansas city per cent dallas per cent san francisco per cent if these extra funds were pooled tho the result would be an extra average annual dividend ot 01 per cent tor for ea each eh ail member lember under this plan the system would still pay arnow as now an annual franchise tax amounting to on the average by wa way y af concrete instance tho the report says tt a bomler bante bank having aurelus ot of therefore holding federal reserve bank stock amounting to 0 on which it Is receiving under the present 9 per p eTen aut 1 dividend arrangement would ltee addition additions pt each 1 1 i per ar cent to LB a dividend tate rate receive OM an adal al income of 0 60 ft a year 1 each ach member bank will figure out for itself tb the dallat an and conta gain it w would c al d enjoy we wa a are to confident it wt will il be a gred agreed mat atio gains are a small mall as against the which can be pointed ou out it con |