The Birmingham age-herald., 1911-11-22
house idea to meet the needs and require ments of the entire country.
 Positive Provisions

ments of the entire country.
 Positive Provisions
 "The plan of organization includes positive provisions
 q. To maintain the integrity and in dependence of existing banks. state and national. The new organization is out side of superimposed upon, the exist ing system. The proposed association is not bank and is not a competitor in any sense for the business of ex- isting banks. In it's ownership and in it's domestic business it is confined strictly to banks and the government.
 "2. It provides clearly for an equal ity of privileges and advantages to all banks. great or small, wherever To- cated
 "3 It provides equality in rates of discounts or rediscounts to all banks and these rates are to be uniform throughout the country. This, it is believed, will insure steadiness and rea- condolences of rates everywhere.
 "A. It's organization is of a form and character that will effectually prevent the control of its operations by po- litica1 influences local or national.
 "5 Every means has been taken, ev- cry safeguard adopted, to prevent be- yond questionable possibility of it's control by any corporation or combina- tion of corporations. banks or other wise, by any individual or combination of individuals in Wall street or else- where, for selfish or sinister purposes.
 "6. The dominating principle is CO., operation and not centralization. We were satisfied that we could not adopt or adapt to our use an organization like the central banks of Europe or the second bank of the United States.
 Among the provisions of the plan intended to remedy defects and cure existing evils are:
 "1. To insure the maintenance of ade- quate reserves by the association and it's members, with such provisions for discounts and note issues as shall en- able the member to respond promptly at all times to abnormal or unusual de- mands for credit or currency without danger of undue expansion or infla- tion.
 "2. To provide for concentration of the cash reserves of all the banks to be used for the assistance and sup port of any, under assured decentral : lzation of control. Scattered reserves have been found useless in times of pressure. Deposit balances in the re- serve association are to be counted as legal reserves.
 g. To authorize the association to rediscount, through its district branches under local control, conner clal paper of q definite character for individual banks, to be used in replen- lshing their reserves.
 "A. To give to individual banks the facilities for an increase of their re- serves and loaning power which will enable them to adopt the policy which has been universally effective in other countries of allaying excitement creat- ing confidence and preventing panics by prompt payment or all demand ob- legations as presented. and at the same time granting d liberal extension of credit to all deserving customers in times of uncertainty and distrust.
 Further Note Issues
 "5s TO grant the power for further note issues to this cooperative aaso- citation to all the banks. an authority which now is vested in national banks scattered throughout the country, and by requiring the association to for ward it's notes to any subscribing mem Der at once upon application and with out charging for transportation. Prompt redemption of all notes is required at the several branches Of the associa- tion.
 "6. To give authority to the reserve association to fix rates for rediscounts,