Wausau pilot. [volume] (Wausau, Wis.) 1896-1940, 1912-01-16
FOR BANK REFORM
BILL CHANGING CURRENCY SYS-
TEN, AIMED TO PREVENT
PANIcs, is DRAFTED.
ALDRICH PLAN NOT FOLLOWED
Differs in Several Important Provi-
sions Frcm Original Measure--Na-
tional Reserve Association viii Be
Controlled by Smallest Members.

Washington.-The national mon
etary commission, after four years OF
study and labor, have drafted bill
to revise the currency system OF the
United States designed to prevent
recurrence of such unfortunate imam
cial conditions as prevailed during the
money panic of 1907.
The bill consists of fifty-nine sec
tions and in general follows the lines
Of the so-called Aldrich plan. But the
commissions bill shows some 1Inpor-
tant changes from the original or even
from the revised draft of Mr.. Aldrichs
plan.
The bill incorporates the National
Reserve association OF the United
States, with an original capital OF
5000, 900 instead OF the $30O,000,-
600 as first proposed by Mr. Aldrich.
Through an elaborate machinery in
volving fifteen branches of the associ-
alton, each branch being the center OF
group of local associations of banks,
the National Reserve association is
authorized to issue notes against prop
erly Endorsed commercial paper. The
bill provides for the admission to the
reserve association of state banks
its conditions as well as of the nation
al banks already in existence
The circulating notes Of the associa-
ton shall be received at par in pay
ment for all dues to the United States
and salaries and debts owed by the
United States, unless gold is speciti-
cally set forth in the contract, and all
dues or debts to any bank or trust
company shall be payable in the
notes. The notes shall constitute a
first lien upon all the assets OF the
association and no interest shall be
paid by the association upon its de-
posits.
Besides its duties in the Tediscount-
ing of paper for the providing of an
elastic currency. the association shall
act as disbursing agent for the United
States government and shall also
transact business abroad. authority be-
ing given foT the establishment of for
eign branches. The assets of the as
ISOLATION and of local branches and
districts shall be exempt from local
and state taxation except as to real
estate, while federal tax falls auto
matically upon the association for its
failure to maintain the so per cent. re-
serve required by the act.
The bill attempts 10 prevent the
Capitalization of the control of the
system In any one locality. In the dis
trtcting of the country for the fifteen
branches, division is Taade largely by
geographical and not financial stand
ards
Sixty days after the bills passage
books for subscription to the capital
stock Of the reserve association shall
be opened and an allowance for ex-
penses by the government Is made,
though this allowance must after
ward be repaid from the profits Of
the association.
The National Reserve association
created by the bill is to exist under its
terms for fifty years, and have an au-
thorized capital equal to twenty per
cent. OF the paid-in and unimpaired
capital of all banks eligible to mem
bership in the association. The bill
states the corporate power the assoct-
alton shall have.
The sections which will attract
widest public interest and arouse the
most debate are those relating to the
issuance of currency by the associa-
ton. The sections follcw broadly the
Aldrich plan.