El Paso herald. (El Paso, Tex.) 1901-1931, 1911-01-17

country.
Removes it From Politics.
81 believe that the conclusions which
I present here will meet the conditions
and that the organization which it is
proposed TO create will insure the bene-
fits which we seek without running
any risk of drafting a financial insti-
ton which can be controlled by amb,
tious monetary interests or dominated
by political influences"
The senator proceeds then to the
description of his proposed reserve
association of America
It is proposed to charter the Reserve
Association OF America, which will be
the principal financial agent of the
government of the United States. The
authorized capital of the reserve asso-
citation shall be approximately $780,
100000. The length OF its charter shall
be so years. The head office shall be
in Washington, D. C.
The country shall be divided into Is
districts and a branch Of the reserve
association shall be exempt from state
and local taxation, except in respect
to the taxes upon real estate owned
by It.
Embraces Only National Banks.
Only national banks of the classes
to the capital stock of the reserve as
ISOLATION. A national bank having a
minimum capital of at least $25, 600 may
subscribe to an amount Of capital stock
of the reserve association equal to %
percent of the stock of the subScrib-
ing national bank and not less and
each Of such subscribing banks shall
become a member of a local associa-
ton as hereinafter provided for. Fifty
percent of the subscriptions to the
capital stock of the reserve associa-
ton shall be called in cash: the bal
ance Of the subscriptions will remain
a liability of the stockholders subject
TO call.
Shares of the capital stock of the
reserve association will not be trans
ferable and under no circumstances
may they be owned by any other cor
poration other than the subscribing
national bank, nor by any individual
nor may they be owned by any national
bank in any other amount than in the
herein provided.
Method of Procedure.
If a national bank increases its capt.
tai it at once becomes a subscriber to
the stock of the reserve association,
the national bank shall thereupon sub
scribe for an additional amount of the
capital stock of the reserve associa-
tion equal to 20 percent of the ma
ttonal banks increase of capital. pay
ing therefore it's then book value but
only one-half of this additional sub
scription will be called in cash as here
inbefore provided.
The earnings of the reserve associ-
alton shall be distributed in the fol-
lowing manner:
After the payment of all expenses
and taxes. the stockholders shall re-
ceive 4 percent. Further earnings shall
be divided, one-half to go to the sur
plus of the reserve association until
that surplus shall amount to 30 per-
cent of the paidin capital; one-fourth
TO the government Of the United States
and one-fourth to the stockholders; but
when the stockholders dividends shall
have reached 5 percent they shall re-
ceive no additional dividend distribu-
ton. After the stockholders receive
8 percent the earnings shall be di-
vided one-half to be added to the sur
plus Of the reserve association. and
one-half to the government
Government to Profit.
After the stockholders receive per-
cent per annum and the surplus Of the
reserve association amounts to 20 per-
cent of the paidin capital, all excess
earnings shall go to the government
The minimum dividends to the stock
holders shall be cumulative.
All subscribing banks shall be
formed into associations. Every local
association shall be composed Of not
less than ten banks and the combined
capital and surplus of each association
shall aggregate not less than 5000. 600.
All the local associations shall be
into Is divisions to be called
districts. The territory included in the
local associations shall so be appor-
toned that every national bank will
be located within the boundaries of
some local association. Every sub
scribing national bank shall become a
of the local association of the
territory in which it is located
To Create Financial Districts.
All the local associations shall be
grouped into Is divisions and each of
these divisions shall be designated to
a district There shall be located in
each district a branch Of the reserve
association. Each of the branches of
the reserve associations shall have 4
board Of directors
The first business of the board of