The Washington times., 1911-01-17
CENTRAL BANK PART
OF ALDRICH HPLAN
Senator Sends Outline of Scheme to Reorganize None
tary Situation to Commission-$30OO 900 Capital
for Main Institution in Washington.

into associations of national banks, to
be designated as local associations, Ev-
cry local association shall be composed
of not less than ten banks, and the
combined capital and surplus of the
members of each local association shall
aggregate not less than $5,OOO,OOO
''Thege shall be located in each district
branch of the reserve association.
Each of the fifteen branches of the re-
serve association shall have a board OF
directors. The board of the reserve as
sociation shall consist of forty-tive di-
rectOrs. including the governor of the
reserve association, who shall be chair
man of the board; two deputy COVER
nors, Secretary of the Treasury, Secre-
tary of Commerce and Labor, and
Comptroller of the Currency, ana dl1
rectors are to be elected by the board
of directors of each branch of the re-
serve association.
The executive officers of the reserve
association will consist of a governor,
two deputy governors, a secretary, and
deputy governors will be selected by
the President of the United States.
The Government Of the United
States and those national banks owning
stock in the reserve association shall
be the sole depositOrs in the reserve
association. The Government Of the
United States shal~ deposit its cash
balance with the reserve association
and thereafter all receipts of the Gov
ernment shall be deposited with the
reserve association. which VIII pay no
interest on deposits.
THE reserve association may redis-
count notes and bills OF exchange arlS-
ing out of commercial transactions.
'"The reserve association shall make
a weekly report to the Comptroller OF
the Currency. These reports shall he
made public.
There is hereafter to be no further
issue, beyond the amount now outstand-
ing. of bank notes by national banks.
THE Reserve Association must, for
period of one year, offer to purchase
at a price not less than par and accrued
interest the per cent bonds now held
by national banks and deposited 10 Sc
cure their circulating notes. The Re
serve Association shall take over these
bonds with the existing currency privi
leSe attached and assume responsibility
for the redemption of outstanding notes
secured thereby, issue its own notes as
fast as the outstanding notes secured by
such bonds so held shall bc presented
for redemption.
1T shall be the policy of the United
States hereafter to retire as rapidly
as possible bond-secured circulation. and
to substitute notes of the Reserve As
sOCiation.
Inc reserve [ASSo'id'lo'I 'lalI "dNV
the right to issue circulating notes
as follows The whole or any part of
the first S1OOODOO0O of such notes shall
pay to the Government an annual tax
of per cent: above $I00, 0,OcO. 900 and not
more than 5000, 100000 may be issued at
an annual tax of / per cent; above S2O0,-
100000 and nGt more than SlO,oe0,Go,
may be issued at an annual tax Of =
per cent: all above $50, ,O0l shall pay
an annual tax of s per cent.
"All note issues of the Reserve AssO-
citation must he covered to the extent OF
at least one-third by gold or other law
full money, and the remaining portion
by bonds of the United States or bank
able commercial paper. The notes of
the Reserve Association shall be re-
ceived at par In payment of all taxes.
excises, and other dues to the United
States. except obligations Of the Govern
ment specifically payable in gold