Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-03
The Fundamental Principle Be-
- hind the New Currency Act

The fundamental principles of the Glass bill first
the banks of the country should be to
commerce. and agriculture and speculation
underwriting syndcaes that the right issue
money inherent and that any association
private with power money for gen
circulation the supervision and control of
the Government and third that all profits from such banking
privileges of per cent return the capital fur
nished by private bankers such central association shall
be paid over to the Government
currency act entire operation of
banks emergency currency" of the
control of Federal Board of
members sitting Washington The Secretary of the
Treasury Secretary Agriculture the Comptroller of
Currency will be three members The other four
ber Of whom be experienced banker to
pointed by United States by
advice and consent of the Senate Members of the Board
for eight years unless removed by the President
This Federal Reserve Board will have complete power
over though complete power by twelve
Federal banks distributed geographically according
the needs and volume of banking business all parts of the
country
Every national compelled subscribe to the
of 10 per capital stock of the
Federal Reserve Bank of district Every shall
required Also keep least per of its
the Federal Reserve Bank of its district
None of the twelve Federal Reserve Banks shall accept
posts from individuals but each shall represent all the banks
ment repositories In times of financial strngency any
may take to the Federal Reserve Bank merchants
accepances shorttem ARISING OUT OF CONNER
CIAL TRANSACTIONS for redscont and obtain from the
Federal Reserve Bank United Treasury currenoy)
for 70 per cent of the face value of such notes
The notes rediscounted solely to com
mercial bills payable within from fortyve hundred
twenty days and based upon stock
actions shall be discounted The discounted will be
backed by the entire of the pedgng the notes. by
the credit of borrowers and the assets of the
Federal Reserve Bank The rapa- which any ndvd
ual bank may rediscount is limited IS paidn capital
Each Federal Reserve Bank will be required all times to
keep on hand actual gold 80 Of aggregate
Of the commercial notes it redscounts for the
trict
The Federal Reserve will obtain United States notes.
or emergency currency pay for these merchants notes
from the Federal Reserve Board Washington at rates of
interest the Federal Board shall from time to time
The Owens Glass bill in its present form provide
specifically enough that discount shall be such that
the emergency currency issued shall automatically
to the Treasury and be cancelled when the past
This emergency usually temporary panic the crop
moving the autumn every when at least three hundred
million dollars in currency needed pay the American farmer
for his harvest.
The profits the twelve district go
national banks which contribute its stock and funds
to the extent of cumulative dividend annually and
further. All profits of will be used first
to create surplus fund equal per the capital
of each bank and such fund
per of such capital all further profits go the
Thereby all temptation directors of the banks
derake undue risks nanciering
The national banks who stockholders elect six and the
President Of the United appoints d
ecto of each district bank Three of the directors
elected by the banks fairly representative of
business and commercial interests of the district and direct
of any bank
rerp Oppoy-
me NeiC Btcrly" appear
neatatcy these coIanusl