Business: Federal Reserve Dividends

The heavy importations of gold into this country, as well as the consequent drop in money rates and trade activities, has had a rather striking effect upon most if not all of the Federal Reserve Banks. Not only have the latter received less interest per dollar loaned, but their loans have contracted very greatly. Few Reserve Banks are at present earning the 6% dividend payable on their stock. The question is thus rapidly coming to the fore—should the Reserve Banks pay dividends out of surplus?

The payment of unearned dividends out of surplus...

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