The following are some of the reasons prompting state institutions to join the system:

1. The state institution retains all its charter and statutory powers and in addition enjoys the advantages of the reserve system.

2. The economies of the par collection system, namely, the collection of its items at par, the economy of time, the closing of correspondent balances, the easy transfer of funds by draft or telegraph, the shipment of funds without cost, etc.

3. Ability to borrow from the reserve bank at lower rates than elsewhere, and with sure accommodation.

4. Ability to carry with safety substantially lower excess reserves, and to invest these in rediscountable earning assets.

5. The Rediscount Privilege, And The Security It Offers Against Panics.

6. The moral obligation to contribute to the strength and unity of the banking system, particularly in time of war.

7. The privilege of securing postal savings deposits and other government deposits.

8. Larger Deposits From Member Correspondents Permitted To Members.

9. The prestige of examinations made under the supervision of the federal government.

10. Advertising Value Of Membership In The System.

11. Better Price For The Acceptances Of Member Banks.

12. The special services which the federal reserve banks are developing for their member banks free of charge, such as purchasing and caring for commercial paper for account of the members, etc.

The federal reserve banks have striven since the burden of the war was lifted to establish personal relations between the officers of the central and member banks, especially those situated outside the reserve city. To acquaint the members with the various services of the federal reserve bank and to explain the nature of its operations, member bank officers have been invited to the reserve bank in groups of, say, twenty-five, for the purpose of discussing banking operations, making suggestions for the improvement of the service, visiting the various departments, and outlining the policies of the reserve bank. The New York bank has established a "member bank relations department," with traveling representatives who visit each member at least once a year and thus come into direct contact with its owner customers.