The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-01-18
government could be used as basis for

| currency lssle-
classes of ,ational banks or depart
ments of btnks, to receive savings and
make loans upon real estate and also
to be in effect national trust companies.
National banks would be permitted to
form branshes only in their immediate
communities and they also could be
organized for business in foreign
countries
The system of mutual support by
which the association IS members would
meet currency emergencies is detailed at
length.
In letter to Mr.. Vreeland dated yes
terday and read at today's meeting,
Senator Aldrich expresses disappoint'
ment that his illness had compelled him
to forego his expectation of confer
ring with the members of the commits
J sion He tenders his plan as "tenta-
tiven and as the subject for discussion
and criticism
said, "the immediate approval of the
commission OF that any formal action
will be taken upon it. The plan sug-
gested is a personal one that I fully
of the changed conditions. it will GER
tainly furnish to the commercial or
ganizations of the country who are now
considering this subject basis for
criticism and discussion -
| HJf we can so amend the present
banking act as to permit the formation
of an association of all the banks of the
country to meet these needs, we shall
have gone long way toward solving
tho problem which is before us. If,
then. in addition. we provide more
| sci--,tifc basis for bank note circula-
/ ton. so that the volume of circulation
will be responsive to the needs of bust
ness. we shonld, believe. have met the
two main requirements Of satisfactory
solution.
To Create Discount Market.
I'm addition ii We can aid in creating
q discount market in this country similar
| that the most liquid portion of our bank
funds will not of necessity be forced to
such large degree as at present into
the making OF call loans upon stock ex-
change collateral. but will instead be
| available for the needs of commercial
business. we shall have so broadened our
BILE benefit to the commercial life of the
| country.
The senator proceeds then TO the de-
scription of his proposed reserve asso-
| citation of America:
| II is proposed TO charter the reserve
association of America. which will be
the principal financial agent OF the gov
| ernment OF the United States, The au-
| thorized capital of the reserve associa-
lion shall be approximately $500. OO0, 900.
| The length of It's charter shall be fifty
years. The head Offices shall be in
| Washington; d. G..
Divide Country Into Districts.
Tho country shall be divided into ff-
teen districts and a branch Of the re. re-.
serve association shall be located In each
| district. The reserve association and Its
] branches shall be exempt from state and
local taxation. except in respect 10 the
L rt,t.N r,.1 Nv IN
Only national banks of the classes
hereinafter provided for may subscribe 10
the capital stock OF the reserve associa :
ton national bank having a minimum
capital of at least SIS. 900 may subscribe
| TO an amount of capital stock OF the re-
serve association equal to 20 per cent
| Of The stock of the subscribing national
| bank and not less, and each OF such sub.
| sribing banks shall become a member OF
a local association as hereinafter pro-
vided for. Fifty per cent OF the sub
| serve association shall be called in cash;
the balance OF the subscriptions will re-
main u liability OF the stockholders sub
| ject to call
! serve association Will not be transfera-
| BILE and under no circumstances may
! they be owned by any corporation other
| than the subscribing national bank. nor
" by any nv Individual. nor may they be
owned by any national bank In any
other amount than in the proportion
herein provided.
The earnings Of the reserve associa
ton shall be distributed in the following
manner:
Distribution of Earnings.
After the payment of all expenses and
taxes the stockholders shall receive 4
per cent. Further earnings shall be dl.
vided, one-half 10 so to the surplus OF
the reserve association until that surplus
shall amount to 20 per cent of the paid
in capital, one-iourth to the govern
fourth TO the stockholders; but vixen the
stockholders dividends shall reach 5 per
cent ;hey shall receive no additional div
idend distribution. After the stockhold, .
ers receive per cent the earnings shall
be divided, one-half to be added to the
surplus OF the reserve association and
one~haif to the government.
After the stockholders receive per
cent per annum and the surplus OF the
reserve association amounts to 20 per
cent Of the paid IN capital all excess os.
The minimum dividends to the stoclshold-
ers shall be cumulative.
into associations Of national banks to
be designated as local associations;
Every local association shall be composed
Of not less than ten banks and the com
clation shall aggregate not less than
| $4,000, 900.
All the local associations shall be
grouped into fifteen divisions 10 be
called districts. The territory included
In the local associations shall be so ap-
portioned that every national bank will
be located within the boundaries of some
local association. Every subscribing ma
tional bank shall become a member OF
the local association of the territory in
which IL is located. Each OF the fifteen
branches Of the reserve association shall
have a board of directors.
Business Men on Board.
Tho first business OF the board of the
branch as thus constituted shall be to
an additional number OF directors equal
To one-third the number OF local asso-
Citations situated In the district. Such
additional directors shall fairly repre-
sent the industrial, commercial, agricul-
tural and other interests of the district
and shall not be officers of tho banks,
The directors OF banks shall not be con-
sldered as officers.
The manager of the branch shall be
eX- officio a member or the board OF d.
rectors OF the branch and shall be chair
man OF tho board