New-York tribune., 1911-11-22

vested i'm national banks scattered through
out the country. and by requiring inc az
sociatiOn to forward It's notes 10 any SUD
scribing member at once upon application
and without charge for transportation;
Prompt redemption Of all notes rs requllcu
at the several branches Of the ASSOCIATION.
SiNth-To give authority 10 INC hesoine .l,s
Association TO fix rates for rediscOuilts'
which must be uniform throughout '"o
country.
Scventh-To give to the Reserve Associa-
tiOn power TO protect its own reserves
and thus enable il at all times To perform
it's most important function, that OF sus-
tanning the credit Of communities ahu ile
country. For this purpose inc aSsoclauV,
Is required 60 keep It's assets always III
LIQUID form and its rediscOunts 8nd invest
inents must be in short time paper OF se
curities To enable the ASSOCIATION 10
strengthen its own reserves u may W o.,
attract gold from other countries ID! an
advance i'm the discount rate, secono, pur,
chase and borrow gold; third, buy ana
sell foreign exchange through HS consult
ucnt members or It's correspondents OF
agents i'm foreign countries large port
folio of short time foreign bills mas bcen
found elsewhere the most erectNe ule,o uleans
for increasing the gold supply OF couuttt ~
and preventing its expectation III cil'Cdl
I'm order 10 csts bish . wider discount
market in this country The pan es'd.
fishes a standard OF commercial papt', vi
notes or bills OF exchange issued or draWn
for agricultural. commercial or lnuusuia'
purposes. which arc available toI ''ui
count at the branches Of the ReserEr Hs-
socjation: second. IL allows national Dahks'
,o fhe extent OF onc-half their cdpAcl'E' 10
accept properly secured drafts drawn upou
thcm-drawn with documents attacneu, -,
against cotton. wheat or othel Plouttn,rsas-as 20 ~,
transit or IN warehouses II aNlhoTi%tn
tho National Reserve Association 10 puy
and sell in this country and dpr"dh ph's
OF exchange drawn on Foreign couhulDSS'
based on transactions in American pIuI
I or IN for lNTChdsPr hNiNt''
II gives I'm this manner national anp W., W
ternat tOual currency, newer an"
market to notes, acceptances ana p,'' "a ~,
exchange based on the aGricWlud' an"
other products Of the United states: -.
II authorizes the organization on uann'
in foreign countries 10 assist IN the eA'e"-
sion OF our international trade. -
The dividends Of tho association Ia nS
storkhnldcrs are limited TO per cent
and the association, for the important pm
ileges granted TO il. pays franchise ,Ho Ho
excess of its net earnings above dlVluenus
II is estimated that th" amount TO Dc Paii1i
into the treasury OF the nlteu STATS WI,
increase the revenues OF me government
nj least &l5p0,0 ,0G0 ANNUALLY ,.
II requires the association 20 IaClhi9te
domestic exchanges by transfer OF par
ancos from one branch Of the association
II admits state banks and trust compa D.
mics TO membership ~ the organization ui,-
der provisions which coordinate tle c1u
di;ions OF membership OF al banks wiz
reference 10 the charter of the reserves
against demand and time deposits ana
with reference 10 the character ana mum
o,,orcv and character Of reports Of Condi-
lion The treatment OF time deposits M 1H
believed TO he equitable 10 banks OF an
classes 1t is believed that the charaC,te'
of examinations and the enlo'ceu Puu
Iicitv of FREQUENT reports will prove an
important factor I'm creating pubic conn
drnco i'm solycut institutions. -
II liberaliZeS legislation WIN lcIeISu. .,a y
win reference to time deposits TO whlcn
l have referred and. second. 10y provisions
authorizing these banks TO. estaoiish say, say,
incs depaTtments and 10 loan portion
nf savings deposits upon real estate, SUD
icct TO proper regulations.