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 . :..,- I _ I ATTENTION GENTLEMEN! 11 r %,Mqmpl -Iqmmp- . 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 Ye present a Real Shcving Value! A GENUINE CHRISTY RAZOR and Three CHRISTY Blades AT ONLY I I' Now you can enjoy the luxury of this smooth shaving, keen cutting Razor, at a truly IN EXPENSIVE COST.. This price Good as 11 C I I I stock *lasts. ...17C 25c 25c Koo lox Shave. 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