The Fulton County news. [volume] (McConnellsburg, Pa.) 1899-current, 1912-01-01
j1ES CHANGES IN
SYSTEM
Money Law Dlsplaces 122-
!, year-0Id Code.
AR-REACHlNe IN SCOPE
IMPORTANT Law Relating to ~
L Passed In Many Years-Es-
initial Features Of the Meas
,ure Explained In Nonteeh'
nlcal Language.

ure Explained In Nonteeh'
nlcal Language.
hington, Dec. 23.-The new bill
" the currency. banking ano
q OF the country is one OF the
lr-reaching measures relating 70
that have been enacted In
gears.
magnitude OF the subject, the
" OF interests affected and tne
OF the debates in both branches
rress has to follow the changes
asp the essentials Of this highly
al measure in It's important
"a on money. finance, banking
) entire range OF fiscal SUBJECTS
and private, which 1t affects.
Summary Of the Bill.
a view, therefore, OF present.
lccinctly and In non-technical
ee an epltome of the salient fea'
I the measure as finally framed
lowing summary Is given OF the
4 whole and OF It's principal de-
rally speaking, the first steps
aken to bring into operation the
8 new financial system will be
Il an organization committee
ing OF the secretary of the
~. secretary OF agriculture and
Ter of the currency.
:s have so days within which to
dr applications for membership
new system. and one years
allowed before the government
mpel the dissolution OF any ma
bank that refuses to join.
M "Tako Up the Slack"
new law will make little direct
IN the operation OF the pres
,tional banks, except to allow
oloan a certain amount of their
upon farm mortgages.
hief purpose is TO add a new
X machinery to the banking
that will take up the slack
the changing business condi-
4 each year; that will give the
q place to quickly convert their
into cash in time OF need, and
III bring out new federal cur
when It is needed, and retire II
money becomes cheap"
IS 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-
ed in the banks OF New York,
o, st. Louis and other designat-
es.
Ines OF sudden financial de-
when banks have loaned up to
l limit of their resources, these
IS furnish little relief, because
are paid out to meet demands
AXIS are left in a precarious con-
Basic Principle Of Law.
basic principle Of the new law
ct these reserve funds out into
don when necessary without
ng the safety of any bank, and
,yide a place to which local
may rush in a crisis and get
or the prime commercial pa
iey hold in their vaults.
1s to be accomplished through
q of regional reserve banks, or
soirs of reserves" in which all
ehall deposit n stated part of
ohey they are required to hold
erves.
er the new system, when q
al furry comes the banks can
numerical paper, such as notes,
Ind bills of exchange, to these
voirs," and secure the use OF
avn reserves, or, II necessary,
be reserve of other banks, by
tng this security.
new regional banks will re-
about one-half Of the bank re-
sof the country. They in turn
} permitted to loan back to the
,nll but 35 per cent. of these
es, SO that in case of emergency
ls OF cash can be brought out
|rculation quickly.
banks will have to pay for these
however, as individuals have to
u a loan from any local bank,
Is charge is expected to prevent
0 free use Of the reserves held
Regional banks.
New Paper Currency.
ew form Of paper currency is
Divided for, to come out In case
Urgency, and which is expected
back into the hands of the gov
~ when times are normal,
ftreasury notes" will be printed
government and issued through
'egional reserve bank, and will
Pc guarantee both Of the re-
ibank and of the government:
le demand for currency in any
of the country exceeds the
lof circulating money a regional
pan secure this new money
Pc government and put 1t into
'tion; but a gold reserve of 40
nt. and commercial paper equal
full value Of the note must be
8 a reserve behind each note
provision Is expected to be the
fe that will drive the new
back into retirement when 1t
onger needed.
Clearly Explained.
following analysis presents the
of the new law without ad-
closely to the technical division
suage Of the measure:
Ie head of the evstem will stand