The Birmingham age-herald., 1913-08-24

er of efficiently serving the interest OF
the entire country, which can alone be
had from general participation of banks
of all classes: and believing that the bill
| as now drawn will be it's onerous pro-
visions prevent state banks and many
national banks from joining the system.
and earnestly desiring to cooperate with
the administration in bringing about, the
adoption of the most highly efficient plan,
therefore be it.
Resolved That we recommend the fol-
lowing changes in the bill. convinced that
| while not rendering the plan ideal. these
changes would render organization more
probable. would avoid credit disturbance
and provide system that would gradu-
ally develop into a bulwarlS for the pro-
lection of our whole commerce, benefit
ing alike and in equal measure the la
borerer, the farmer and the business
man."
Summary of Changes
A summary of the important changes
in the currency bill proposed by the reso-
lutions adopted by the bankers follow:
That there should be esta ablished one
central federal reserve bank under the
new currency and banking plan instead
| of II, and If this found inexpedient, the
number should not exceed five with as
many branches as may be required.
That membership in federal reserve
banks be made voluntary instead of COM
pulsory on the part of national banks as
Is provided in the case of state banks
That the amount of subscriptions to the
capital stock of the federal reserve banks
be reduced from 20 to 10 per cent of the
capitalization of the bank applying for
membership.
That in order to remove control of the
federal reserve banks from political in
fluence. direction of the institution be
vested in boar dof seven members COM
posed of the Secretary of the Treasury
as ex-officio member, three members to
be appointed by the President of tine Uni
ted States. who shall give due regard
to geographical territory, and three men,
bers to be selected by the number OF
banks. The terms of Office are fixed at
three, six and nine years at the begin
ming and nine years for all members af-
ter the first term. The salary is fixed
at $4,000 a year with allowance for neces-
sary travelling expenses.
That three of the directors of regional
banks shall be experienced in banking
and live in the district
Elect Own Officers
That directors of regional banks be au-
tEorized to elect their own officers, who
with the federal agent designed by the
federal reserve board shall manage the
institution.
That the appointee of the federal re-
serve board shall not act as chairman
of the board of directors of regional
banks
That the advisory board of the federal
reserve bank be abolished.
That the authority of the federal reserve
board to compel one member bank to re-
discount paper of another member bank
be made optional instead of mandatory
That the cumulative dividends allowed
member banks out of earnings on their
shares in the federal reserve bank be in
creased from five Tx per cent.
That state banks accepting membership
in federal reserve banks be required to
ADOPT the word national in their cor
porate names.
That all government monies be deposit
ed in federal reserve banks except the
D per cent redemption fund of outstand-
ing national bank notes.
That federal reserve banks be prohibited
from rediscounting paper drawn for car
rying of securities other than stocks and
bonds.
Reserve be Reduced
That the country banks required re-
serve be reduced from 15 to Il per cent
and that not less than per cent be kept
in the bank vault, not less than per cent
deposited with the federal reserve bank
and the remainder with the corresponds
ent.
That the reserve city banks required
reserve be fixed at IS per cent instead of
20 and % per cent, 6 per cent to remain
in vault. per cent in a federal reserve
bank and per cent with the correspond
ent In central reserve bank
That the central reserve city banks re-
quired reserve which varied from 20 to %
per cent be fixed at 20 per cent, 10 per
cent in the vault and 10 per cent in the
federal reserve bank.
That the time limit on farm loans be
extended from nine to u months.
That the section of the bill relating to
savings banks be stricken out.
That the federal reserve banks issue the
necessary currency bank notes under con-
troll of the comptroller of the currency
instead of having treasury notes issued
by the government
The conference considered this plan
necessary for the protection for the gov
eminent credit in time of war or other
emergency.
Amendment Proposed
The amendment proposed for this pro-
vision OF the bill follows:
THAT federal reserve bank notes be is
sued by permission of the federal reserve
board. by federal reserve banks, are here
by authorized; the said notes shall be OBJ
legations of the federal reserve banks and
for all taxes. customs and other public
duties.
'"rhey shall be redeemed in gold on de-
mand by the bank of issue.
ANY federal reserve bank upon vote
of its directors and within limit pre-
scribed by the federal reserve board may
issue such amount of the notes herein
after provided for as it may deem best.
Whenever any federal reserve bank
shall pay out federal reserve bank notes
issued by it as hereinafter provided it
shall segregate In its own vault and shall
carry to special reserve account on it's
books gold equal in amount to 40 per cent
of the federal reserve bank notes so paid
out by 1t, such reserve to be used for the
redemption of said federal reserve bank
notes.
That full amount of such note issues
by each of said banks shall at all times
be covered by rediscount paper and pur-
chase of foreign bills held by such banks
Under the provisions of this act however,
nothing herein provided shall prevent an
exchange of said federal reserve bank
notes for gold of equal amount of the is
sue of said federal reserve bank notes for
the purchase of like amount of gold
Notes so paid out shall bear on their
races the name of the issuing bank
Issued Without Tax
Whenever the gold reserve Is 10 per
cent or more such notes may be issued
without tax; whenever such reserve shall
fall below 10 per cent and shall be be-
tween 312 per cent and 40 per cent, such
deflciency of reserve shall bear a tax of
interest at the rate of ~ per cent per
annum and for each 21k per cent or part
thereof of further reduction of reserve
an additional tax of interest at the rate
OF ~ per cent here per annum on such