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FEDERAL

RESERVE

BANK

Circular N o. 4 6
Series of 1920

OF DAL LA S

December 29, 1920.

PAYM ENT

FOR

RESERVE

NEW

STOCK

BANK

OF

IN F E D E R A L

D ALLAS

TO THE M BER BANK ADDRESSED:
EM
E f f e c t iv e January 1 st payments f o r a d d it io n a l stock
a l l o t t e d member banks, o r ig in a l s to c k s u b s c r ip tio n s o f new
n a tio n a l banks, and s ta te banks becoming members, w i l l be
handled in accordance w ith S e c tio n 5 o f the F ederal Reserve
A ct, which reads in p a rt as f o llo w s :
"A bank ap p lyin g f o r s to ck in a F ederal Reserve
Bank at any time a f t e r the o r g a n iz a tio n th e r e o f must
su b scrib e f o r an amount o f the c a p it a l s to ck o f the
F ederal Reserve Bank equal to s ix per centum o f the
p aid -u p c a p it a l s to c k and surplus o f sa id a p p lic a n t
bank, paying t h e r e fo r i t s par value p lu s o n e -h a lf o f
one p er centum a month from the p e r io d o f the la s t
d ivid en d .'*
When a p p lic a t io n s f o r new sto ck in t h is bank have
been approved, the ap p lyin g bank w i l l be ad vised and requested
to make payment o f par value o f same, in lin e w ith the p r e s ­
ent p r a c t ic e .
When the e n t r ie s are a c t u a lly made on our books
a d r a ft w i l l be drawn f o r an amount equal to o n e -h a lf o f one
p er centum per month from the l a s t d ivid en d p e r io d .
Under the p lan o u tlin e d above the c a lc u la t io n o f
d ivid en d s i s s im p lif ie d , and a l l banks w i l l r e c e iv e f u l l
d ivid en d at the ra te o f s ix p er centum per annum, f o r the
s ix months' p e r io d . I t i s b e lie v e d th is p lan w i l l be p r e fe r ­
ab le to the p resen t method o f c a lc u la t in g the d ivid en d on
p a r t ia l payments f o r s to ck from the date such payment is
made.
R e s p e c tfu lly ,

Federal Reserve Agent

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102