The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-11-21

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"(s) It provides equality in rates of
discounts or rediscount to all banks,
and their rates are to be uniform through
out the country This 1t is believed will
insure steadiness and reasonabelness of
rates everywhere.
go It's organization is of form and
chacater that will effectually prevent
the control of its operations by political
influence, local or national.
"(5) Every means have been taken,
every safe guard adopted to prevent be-
yord question the possibility of It's con-
troll by any corporation or combination
or corporations, banks or otherwise by
any individuals in Wall street or else
where for selfish or sinister purposes.
20 The dominating principle is CO.
operation and Capitalization. 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.
To Remedy Defects.
Among the provisions of the plan
intended to remedy defects and cure
existing evils are:
Il. To insure the maintenance of
adequate reserves by the association
and it's members, with such provisions
for discounts and note issue as shall
enable the organization to respond
promptly at all times to normal or I'M
usual demands for credit or currency
without danger of undue expansion or
imitation.
20. 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-
ization of control. Scattered reserves
have been found useless in time or
pressure. Deposit balances in the re-
serve association are to be counted as
legal reserves.
''3. To authorize the association to
rediScount, through it's district branch
es under local control commercial pa
per of a definite character for indi-
vidua1 banks to be used in the re-
plenishing of their reserves.
a. To give to individual banks the
facilities for 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 aIlaying excitement, Great
ing confidence in panics by prompt
payment of all demands and obligations
as presented at the same time grant
ing a liberal line of credit to all de-
serving customers in times of uncer-
tainty and distrust-
"5. To grant the power of further
note issues to this cooperative assoc
citation of all the authority which
is vested in national banks scattered
throughout the country and by requir-
ing the association to forward its
notes to any subscribing member at
once upon application and without
charge for transportation. Prompt
redemption of all notes is required at
several branches of the association.
go To give authority to the reserve
association to fix rate for discounts, which
must be uniform throughout the coun-
try
'sG) To give to the reserve association
power to protect its own reserves, and
thus enable it all times to perform its
most important function that of
sustaining the credit Of COM
munfties and the country. For
Ibis purpose the association is re-
quired TO keep its assets always in Il
ot1id form. and its own discounts and
quod form and its own discounts and
Investments must be short time paper
or securities To enable the association
to strengthen It's own reserves it may
first attract gold from other countries,
A large portfolio Of short time foreign