The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-11-21

association to fix rates for re-discounts,
which must be uniform throughout
the country.
"C7) To give to the Reserve Associa-
ton power to protect its own reserves,
and thus enable it at all times TO per-
form it's most important function. that
of sustaining the credit Of commune
ties and the country. For this purpose
the association is required TO keep its
assets always i'm liquid form, and it's
discounts and investments must be
i'm short time paper or securities. To
enable the association to strengthen It's
own reserves IL may first attract gold
from other countries by an advance in
and borrow gold third, buy and sell
foreign exchange through its constitu-
ent members or its correspondents or
agents in foreign countries. A large
portfolio of short-time foreign bills
has been found elsewhere the most ef-
fective 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
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 reserves association;
second. it allows national banks tC
the extent of one-half their capital, tC
accept properly secured drafts drawn
upon them-drawn with documents at.
tached, or against cotton. wheat OIL
other products i'm transit or in ware.
| houses. II authorizes the National Re-
serve Association to buy and sell in
this country and abroad bills of ex.
change drawn on foreign countries
based on transactions in American
products or to pay for our purchases
abroad. II gives in this manner ma.
tional and international currency.
NEWER and wider market to notes, ac
ceptances and bills of exchange baseC
on the agricultural and other products
of the United States.
TT authorizes the organization o
banks in foreign countries to assist il
the extension of our internationa
trade.
THE dividends of the Association L
its stockholders are limited to five pc
cent. and the association for the i'm
portant privileges granted to it, pay
franchise or other taxes, which ar
equivalent to the excess of it's ne
earnings above dividends. 1t is esti
mated that the amount to be paid in
to the treasury of the United State
will increase the revenues of the gov
eminent at least fifteen millions Of dol
lars annually.
1T requires the association to facil
itate domestic exchanges by transfer @
balances from one branch of the asso
citation to another.
1T admits state banks and trust
companies TO, membership i'm the or
ganization under provisions which co
ordinate the conditions Of membershi
of all banks with reference to tn
character of their reserves against de
mand and time deposits. and with ref
erence to the character and numbe
, Of examinations, and as to frequenc
and character of reports of condition
The treatment of time deposits is be
lieved to be equitable to banks of n
classes. 1t is believed that the char
= acter OF examinations and the en-
forced publicity of frequent report
= will prove an important factor In ere
} Tating public confidence in solvent in
: stitutions.
| 1T liberalizes legislation with rel
; erence To national banks, first by ii
provisions with reference to time dc
: posits to which I have referred, and sec
? ond, by provisions authorizing thes
banks TO establish savings department
I and to loan n portion of savings dc
' posits upon real estate. subject
e proper regulations"