The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-12-23

DARLINGTON, Dec. 23.-Thc
NM new bill affecting the cur
NM rcncy, banking and finances
w of the United states. waich
both branches OF congress
prepared for the signature OF the
president before adjournment tonight.
Is one OF the most tar-reaching mea-
s sures relating to finance that has has
been eDs cted In many years. The
magnitude OF the subject. the diver
sity OF interests affected and the
length OF the debates In both
branches of congress has. made II
difficult for the ordinary observer TO
Follow the changes and grasp the
essentials OF this highly technical
measure In Its important bearings on
money. fina ancc, banking and the en-
tire range of fiscal subjects, public
and private. which 1t affects. With
a view. therefore, OF presenting sue
cinctly and in non technical language.
an epitome of the salient features Of
the measure as finally framed, the
following summary is given of the bill
as whole aud OF It's principal de-
tails.
First Steps to Be Taken.
Generally speaking, the first steps
TO be taken to bring into operation
tle nations new financial system will
De through an organization committee
OF the secretary OF the trea sury, sec
OF the currency. Banks have sixty
days within which TO file their appll
cations for membership In the new
system, and one years time is allowed
before the government VIII compel
the dissolution .of any national bank
that refuses to join.
The new law will make little direct
change In the operation OF the pres
them TO loan a certain amount of
taeir funds upon farm mortgages. It's
chief purpose is TO add a new piece
or machinery 10 the banking system
the. changing business conditions of
each year; that Will give the banks
a place to quickly convert their as
sets into cash In time OF need and
rency when IL Is needed and retire it
when money becomes cheap
Elastic Circulation.
Banks are now required to keep a
certain percentage OF their deposits
own vaults and part OF which may
be redeposited in the banks OF New
York, Chica go. St Louis and other
designated cities; In times of sudden
loaned up to the full limit OF their
resources, these reserves furnish lit
tie relief. because il they are paid
out TO meet demands the banks arc
The basic principle OF the new law
is 10 get these reserve funds out into
circulation when necessary without
lesseninG the safety of any bank; and
to provide a place 10 which local
banks may rus.2 in a crisis and get
cash for the prime commercial
paper" they hold in their vaults.
Regional Reserve Banks.
This is to be accomplished through
chain of regional reserve banks or
reservoirs of reserves IN which all
banks shall deposit stated part OF
the money they are required 10 hold
as reserve. Under the new system
when financial furry comes the
banks can take commercial paper.
such as notes. drafts and bills of
exchange, to these reservoirs and
secure the use of their own reserves.
or II necessary even the reserve OF
other banks, by dcpositing this Sc
curity.
The new regional banks will re-
ceive about one-balf Of the bank re-
serves Of the country. They. In turn,
VIII he permitted to loan back 10 the
banks all but 30 per cent OF these re-
serves, so that in case OF emergency
into circulation quickly. The banks
VIII have 10 pay for these loans, how
ever, as individuals have TO nav for a
loan from any stock bank; and t1is
charge is expected to prevent the
too free use OF the reserves held by
the regional banks.
New Paper Currency.
A new form Of paper currency is
case OF emergency and which Is ex-