One of the anomalies of the present money situation is the fact that the Federal Reserve system is not at present earning enough to pay 6% dividend upon its stock. There is no doubt, however, that the Reserve Banks will pay their regular dividends out of surplus. It has been estimated that the present surplus is sufficient to cover dividends for the next five years.
The present position of Reserve earnings is due to several factors. The Reserve Banks erected large buildings, the cost and maintenance of which have added to their...
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