The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1912-01-01
IS CHANGES IN
SYSTEM
|oney Law Dlsplaces 122-
year-0Id Code.
IN SCOPE
|nportant Law Relating to FL
! Passed In Many Years-Es-
HAL Features Of the Meas
|re Explained In Nonteeh-
nlcal Language.

70 Explained In Nonteeh-
nleal Language.
ineton. Dec. 23.-The new bill
the currency. banking and
OF the country is one OF the
t.reaching measures relating TO
that have been enacted In
ears.
naenitude OF the subject, the
Y Of interests affected and the
4 the debates in both branches
ress has to follow the changes
sp the essentials Of this highly
Il measure in It's important
on money, finance, banking
entire range OF fiscal subjects
nd private, which 1t affects
summary Of the Bill.
a view. therefore, OF present
ccinctly and In non-technlcal
a an epitome Of the salient fea-
the measure as finally framed
bwing summary is given OF the
whole and of It's principal de-
ally speaking, the first steps
ken to bring into operation the
new financial system will be
an organization committee
ne OF the secretary OF the
secretary OF agriculture and
or OF the currency.
have 60 days within which to
r applications for membership
new system, and one years
allowed before the government
hpel the dissolution OF any ma
ank that refuses to join.
nd "Take Up the Slack"
lew law will make little direct
IN the operation Of the pres
ional banks, except to allow
loan a certain amount OF their
pom farm mortgages.
lief purpose is TO add a new
machinery to the banking
that will take up the slack"
the changing business condi'
each year; that will give the
place to quickly convert their
nto cash in time of need, and
Il bring out new federal cur
,hen 1t is needed, and retire II
honey becomes Cheap"
are now required to keep a
percentage of their deposits as
es." part in cash in their own
and part of which may be re
Bd In the banks OF New York
st. Louis and other designat
!.
mes OF sudden financial de
when banks have loaned up tc
limit of their resources, these
furnish little relief, because
hre paid out to meet demands
ks are left in a precarioue con
Basic Principle Of Law.
basic principle OF the new law
u these reserve funds out into
lion when necessary without
lg the safety of any bank, ant
vide q place to which loca
may rush in a crisis and &c
,r the prime commercial pa
BY hold in their vaults.
is to be accomplished through
of regional reserve banks, o.
pirs of reserves" in which al
fhall deposit n stated part o
hey they are required to holC
rves.
j the new system, when
/ furry comes the banks cal
numerical paper. such as notes
hnd bills of exchange. to thes,
pirs," and secure the use o
wn reserves. or, IL necessary
be reserve of other banks, b!
Ing this security.
new regional banks will re
bout one-half OF the bank re
of the country. They In turl
permitted to loan back to tn,
all but 35 per cent. Of thes
IS, so that in case of emergenc,
} OF cash can be brought ou
Fculation quickly.
banks will have to pay for thes
however, as individuals have I,
a loan from any local bank
5 charge is expected to proven
free use of the reserves hel,
regional banks.
New Paper Currency.
wv form Of paper currency 1
divided for, to come out In cas-
rgency, and which is expecte,
Jack into the hands Of the gov
I when times are normal
Treasury notes" will be printe,
government and issued through
Fgional reserve bank, and will
le guarantee both of the re
bank and of the government
b demand for currency in an,
Of the country exceeds tn
of circulating money a reglona
tan secure this new none,
be government and put 1t int,
ion; but n gold reserve of A
u, and commercial paper equa
full value of the note must b
a reserve behind each not
provision is expected to be tn
be that will drive the ney
back into retirement when I
3nger needed.
Clearly Explained.
following analysis presents tn
of the new law without ad
closely to the technical division
|uage Of the measure:
P head Of the system will stan'