The Sentinel=record., 1911-10-20


 six members ex-offieio, viz: The gov- ernor of the association, his two dep nties, the secretary of the treasury, secretary of commerce and labor, and the comptroller of the currency.
 Each of the 15 financial districts of the country will elect one direc- tor, 2 others will be elected by the shareholders; ani these 27 will elect to the board 12 additional members who shall not be officers of banks, but who shall officially represent the industrial commercial and agricultru- al and other interests.
 The complete plan provides that of the 24 directors in the latter groups, not more than three may be elected from anyone district. As an instance. the effect of this pro. lvision will be to limit the state of New York, which has about one-fifth of the banking capital of the coun- try and which is the center of the great financial interests to four di- Irectors among the 39 who are elect ed.
 In the organization of the exccu. live committee of nine members up- on which it had been said much of the active management of the asso- eation would fall only one of the five elected members (the other four being the governor of the associa' ltion, his two deputies and the comp troller of the cugrency ex-officio) may be chosen from any one distrct.
 The whole board Of directors may reserve to itself any authority it de- sires and is not bouni to vest the executive committee with full con trol.
 The original plan provided that the governor of the association should be Appointed by the president of the United States from list of names submitted by the board of directors and that the president also should have power to remove the governor. The revised plan reserves the right of removal to a two- thirds vote oi the board.
 
 One important change is the ad- mission to membership Of state banks and trust companies, which conform to a required standard. A stat, bank or trust company to be eligible must conform to the same standard as national banks regarding the re- lation of it's capital to the population of the community It serves, or re garjing the reserves to be held laganst deposits; and must conform to a certain standard regarding ex- aminations and reports. National banks will have the right to establish a savings tdep1rtment and to lend not more than forty per cent of such deposits upon proluc- tive real estate, in loans not ex- ceeding fifty per cent of the value of the property.
 The national bank act now prohi- bits such loans, but there Is con stant demand for them, especially in the west. Savings deposits in any of the banks in the association shall be subject to 90 days notice before with drawal and shall be covered by q reserve of 40 per cent of that re- quired for demand deposits in the same locality.
 For the reserves of the association | it is proposed that 50 per cent of it's demand liabilities, including ce- posits ana note issue, shall be cover ed by gold or other lawful money, with a provision that whenever the reserve falls below fifty per cent. the association is bound to pay to the government a special tax which in- creases in rate in proportion to the deficiency.
 ! The operation of this in such in- stances is expected to stimulate an increase in the rate of discount and to bring gold until the reserves again lhaconnae ,,nrma1
 1 Another new provision speeches that any local association may as- sume and exercise the powers and functions of a clearing house. In this respect some existing clearing houses are expected to cemoe loca associations. Ali focal associations will be required to appoint examin' CTS, which is a development of tho movement for local clearing house exabiners, now being promoted throughout the country.
 ARTILLERY RECALLED. 1 WashinefOn Oct 10 limited