THE MICHIGAN DAILY
THURSDAY, NOVEMBER 8, 1934
THE MICHIGAN DAILY THURSDAY, NOVEMBER 8, 1934
Rodkey Gives
New Plan For
Bank Reserves
Professor Asks Standard
Fund Replacing Current
Inequalities.
A "flat rate" reserve fund of 12
per cent on all bankers' balances and
6 per cent on all other types of de-
posits, to replace the present varying
reserve requirements for member
banks of the Federal Reserve Sys-
tem, has been proposed by Prof. Rob-
ert G. Rodkey of the School of Busi-
ness Administration.
Such an equal reserve plan for all
banks would iron out confusing geo-
graphical distinctions between banks
which, though legal, serve no useful
purpose, declared Professor Rodkey.
Requirements Vary Now
The reserve requirements, at pres-
ent legal under the Federal Reserve
System, vary with the location of
banks. These geographical distinc-
tions of distance cause inequalities
and unnecessary burdens on banks
in districts outside Federal Reserve
centers, he said.
Reserve protection based on dis-
tance from large financial centers is
an outgrowth of pre-Civil War days
when bank notes bearing the name
of an issuing bank in a distant city
were regarded with suspicion, accord-
ing to Professor Rodkey.
He believes that under present con-'
ditions banks should carry reserves
to fit"the typessof deposits they hold,
With reference tolocation in a large
city or rural town. In all post-Civil
War depressions, he stated, many
banks have been embarrassed be-
cause legal reserves on hand did not
fit the needs of individual banks in
a crisis.
Single Reserve Rate
Under the plan proposed by Pro-
fessor Rodkey, banks would be re-
quired to carry a basic 12 per cent re-_
serve against all deposits or liabili-
ties of other banks, such as cashier's
checks and letters of credit. These
funds, he explained, are those most
likely to be demanded first in any
emergency and quick payment of
them goes far to bolster confidence,
both within the banking system and
with the public. On all other deposits
his plan calls for a 6 per cent reserve.
Control of the reserve would be
placed in the Federal Reserve Board,
plus two practical bankers, the presi-
dent and vice-president of the Feder-
al Advisory Council. The governing
body would also have the power to in-
crease the required reserves up to 50
per cent-of the basic rate and de-
crease them by 10 per cent.
This arrangement would provide
control of inflationary lending in
boom times, as well as encourage
loans in periods of credit stringency.
MIorafoi'itrait1Judge
Student Pastor Smiie i Alu uus
tGives Aims 0]
True Relioi]
Rev. Lee Klaer Says
f'
Ii
Itst
ity3
Puirpose Is Cr
reatiVi
Dies hin New York
Dr. Elmer Ellsworth Brown. '89,1
chancellor emeritus of New York
University, for 22 years the head of,
the institution that ained interna -
tional prominence under his direc-
tion, died Nov. 3 at his home in New
York City.
He was born at Kiantone, N. Y.,
Aug. 28, 1861. After his graduation
from Illinois State Normal Univer-
sity in 1881 he came to the Univer-I
sity, being graduated with an A.B.
degree in 1889. The following year
he went to Germany and studied at
the University of Halle-Wittenberg,
obtaining a Ph.D. in 1890.
From 1891 to 1892 he was acting
assistant professor of science and the
art of teaching in the University, and
then went to the University of Cali-
fornia, where he remained until 1911,
when he became chancellor of New
7 ork University.
--Special-
MANHATTAN SHIRTS
Chas. Doukas - Haberdashery
1319 South University
.._ w - - :r . :..,-
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I
ATTENTION
GENTLEMEN!
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. A
And Redemption
:;: "(Continued from Page 1)
religion does actually enable us to
ci eate even better patterns for in-
dividuals and for society. Likewise
this living religion should make lifea
meaningful and should produce per-
sons with ever-increasing capacity to
pursue and achieve these nobler ends.
The true task of religion is a re-
demptive one. When religion runsI
away from its true task, it tends to
escape reality and to conserve the
forces of decay in the world. It then
becomes a foe of the very ideals
-Associated Press Photo which it professes.
Students living during a period of
.Jt;g'e Charles I D w'son who pre- rapid change, such as this genera-
sidc 3ever Federal d;:trict court in tion, are apt to find themselves not
Louisville, Ky., has promised to render only confused, but without natural
a ruling this month on the constitu- leaders and to be a generation spir-
tionality of the Frazier-Lemke farm itually disinherited. Thetfaith of our
mocrtglage Moratorium act. fathers seems to many to be either,
._ . .. defective or delinquent.
On this campus there are many
Hygiene Students View groups of students, meeting regularly, I
o Dwho show serious concern about deep
I Fins Showing disease problems. Their efforts are to find.
Cau=s for the spreading of infec- ifor themselves an adequate solution
tiousdiseasesr wereaillustrated yester- of the religious problem. These
day afternoon in threesmotio i - groups seek a solution which will en-
tures shown in the West Amphithe- able them to live with dignity, pur-
atre of the West Medical Building, for pose and romance in a world of many
the benefit of students of Public frustrations. Not a few of them gain
Health and Hygiene, and the general spiritual power, come toesplendid
public, emotional control and develop a vis-
The films were obtained from the ion which for decades will do honor
United States Public Health Service, to this University and the heritage
which is a Federal organzation formed they have in religious idealism. It is
to educate the people regarding meth- fair to believe that long after the
ods for preventing serious diseases. present forms and patterns shall have
"How Plants and Anmmais Cause been outgrown, these spirits and the
Disease" was the first of the pictures.! power they release will serve human-
It showed types of bacteria. ity and God.
,4
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17c dram
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100 Soda Mint Tablets 12c
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50c Jergins Lotion ... 36c
$1.25 Absorbine Jr,... 94c
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It's good to smoke Luckies for Luckies are round,
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