Gilpin observer., 1913-07-03

! to the people OF the United States,
to be exercised by their representa-
tives in the national government
The danger of money panic is re-
duced to minimum and death-b blow
is delivered TO the money trust, as
it has developed during the last half
century under the operations Of
national banking act.
Twelve Reserve
Banks.
The Wilson-Bryan bill provides that
committee conei sting CT the secre-
tary of the treasury, the secretary
of agni ard the comptroller Of
| the currency shall divyIe the coun-
try into twelve parts or regions" for
the purpose of barking operations. In
each "region" federal reserve bank
shall be organized. The national
! and state banks i'm that region shall
subscribe to the capital stock of the
reserve bank to the amount of 20
gional reserve banks are to be con-
trolled by a board CT directors of
Zine members, three to be selected
by the member banks" Three to re
present tire agricultural ami indus
trial interests of the region, three
TO be named by the Federal reserve
bard. This reserve board is the
real keystone cf the arch, and this
Is where the influence CT William J.
Bryan nDpears.
The .ederal reserve board consists
of se'cr member .he secretary of
The treasury, the SECRETARY of agri-
culInrp the comptroller of the cur
rnecy. nd four III II TO be named by
.ne president. The bankers are clam
oring for representation on the board,
bu, Bryan insists that the people,
through their government must re-
tain absolute control. The wisdom
Of Bryan's position is apparent when
one considers the power vested in
this board. 1t is clothed with extra
ordinary discretion in tie matter of
supervising and directing all the fed
eral reserve banks, and through them
every state and national bank i'm the
country.
In addition it is authorized to is
sue and to lend to the federal re-
serve banks national currency to the
amount of $500 900 600 ami SO much
more as may be necessary to take
The place of the national bank notes.
which will be gradually retired under
the provisions of this BILL.
With the people in control o. the
federal reserve beard, they will be
masters OF the banking situation. And
that is as it should be, for the
men who control the money of the
country must, of necessity. be in
position to control the governmental
policies CT that country. The region
al reserve banks are permitted to
pay dividends to the amount of per
cent per annum. The earnings in
excess of the sum required for this
purpose are divided between the sur
plus fund of til, bank n~d t,,e nation
al government. After he surplus frnt
! equals 20 per ceIt CT t'e car'tal o.
the reserve bank, ell e the excess
earnings go TO Crcle scm.
Discourasins
Gambling.
Ample provision is made to pre-
vent the concentration of money in
large financial centers, where 1t is
used for speculative purposes. On
the other hand, every facility is Of
fered to enable the business man and
farmer to secure the accommodations
needed to meet the demands OF his
, business or to move his crops.
Secretary of the Treasury McAdoo
gave a striking illustration the other
day of how the bill will work.
Certain interests sought to influ-
ence the course Of tariff legislation
by creating tight" money market.
Word went out from Wall street that
che usual accommodation coqA not
be granted. Prices began to fall on
the stock exchanges and the coun
Try was confronting a most serious
situation
I'VE will teach the schoolmaster,
, Wilson, a lesson" SAID the big finan-
ciers.
The situation and the manner in
which 1t was met are most graphical
ly described as follows by W. G.
Nicholas, one of the foremost writ.
ers on financial subjects connected
with the eastern press:
THE banks had plenty Of money
on hand. but were giving open and
somber currency to dark talk about
/, | tight, money and the need Of eX