The evening times. [volume] (Grand Forks, N.D.) 1906-1914, 1911-11-21
mands and obligations as presented
and at the same time granting a lib
eral line of credit to all deserving Gus.
toners in times Of uncertainty and dis

trust.
"(5)-To. grant the power for fur
tner note issues to this cooperative
association OF all the banks authority
which is now vested in national banks
scattered throughout the country and
ny recurring the association to forward
It's notes to any subscribing member at
once upon application and without
charge OF transportation. Prompt re-
demption Of all notes is required at
the several branches of the associa-
ton.
"(s)-ro give authority to the re.
serve association to fix rates for re-
throughout the country.
"tO-To give to the reserve asso-
citation power to protect its own re-
serves and thus enable 1t at all times
to perform its most important func-
tion, that OF sustaining the credit of
communities and the country. For
this purpose. the association is re-
CURED to. keep its assets always in
liquid form and it's re-discounts and
Investments must be in short time pa
per or securities. To enable the as
sociation to strengthen its own re.
serves 1t may be first attract gold from
other countries by an advance in the
discount rate; second, purchase and
borrow god: third, buy and sell for.
eign exchange through its constituent
members or, Its correspondents or
agents In foreign countries. A large
portfolio Of short time foreign bills
has been found elsewhere the most ef-
fectfve means for increasing the gold
supply OF countries and preventing its
expectation in critical times.
I'm order to establish a wider dis
count market in this country the plan
establishes a standard of commercial
paper. Of notes or bills of exchange is-
sued or drawn for agricultural, COM
mercial or industrial purposes, which
are available for re-discount at the
branches Of the reserve association;
second, 1t allows national banks to
the extent Of one-half their capital, to
accept properly; secured drafts drawn
attached, or against cotton, wheat or
other products in transit or in ware
house. 1t authorizes the national re-
serve association to buy and sell in
this country aud abroad bills of ex-
change drawn s0n foreign countries,
based on transactions In American
products or to pay for our purchases
abroad It gives in this manner ma
tonal and International. currency, q
newer and wider market to notes, ac-
ceptances and bills of exchange based
Of the United States.
1T authorizes the organization of
banks in foreign countries to assist in
the extension, of our international
trade.
'"rhe dividends Of the association
to its stockholders are limited to five
per cent and the association for the
important privileges granted to 1t,
pays franchise or other taxes. which
are equivalent to the excess Of its net
earnings above dividends. It is esti-
mated that the amount to be paid into
the treasury OF the United States will
increase the revenues Of the govern
ment at least $t6.o00.00o annually.
1T requires the association to ia
ctl1tate domestic exchanges by trans
fer Of balances from one branch Of
the association to another.
ut admits state banks and trust
companies to membership in the or
ganization under provisions which CO.
ship OF all banks with reference to
the character of their. reserves against
demand and tiuR densssts. and With
fefsrence TO theacAa, &cter and nt:m-
ber of examinations: arida, a. the fre-
quency and character Of reports of
condition. The treatment of time de-
posits fs believed to be equitable to
banks Of all classes. 1t Is believed
that the character Of examinations and
the enforced publicity of frequent re-
ports will prove an important factor
In creating public confidence in solvent
institutions.
at liberalizes legislation with refer
ence to national banks, first, by the
provisions with reference to time de-
posits which / have referred, and Sec
ond, by provisions authorizing these
banks to establish savings departments
and to loan portion of savings de-
posits upon real estate, subject to
proper regulations"