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

fundamental principles of the Owen Glass bill first
that the chief function of the banks of the country should be to
foster trade and agriculture and not speculation or
underwriting syndcates and second that the right to issue
money inherent Government and that any association
private the power issue money for
circulation under the supervision and control of
the Government and third that all profits from such banking
privileges of per cent return upon the capital fur
nshed by the private bankers central association shall
be paid to the Government
currency act entire operation of the
onal banks and the of emergency currency of the
shall be under the control of Federal Board of
seven members sitting Washington The Secretary Of the
Treasury Secretary of Agriculture and the Comptroller of
Currency will be three the members The other four
bs of whom must be experienced banker to be ap
pointed by the President of the United States by and with the
advice and of the Senate Members of the Board to
for eight years. unless removed by the President
This Federal Reserve Board will have complete veto power
though not complete to initiate action by twelve
Federal banks distributed geographically according to
the needs and volume Of banking business all parts of the
country.
Every national bank shall be compelled subscribe to the
Of 10 per its stock the capital stock of the
Federal Reserve Bank of its district Every bank shall be
required also keep at least per cent of its cash in
the Federal Reserve Bank of its district.
None Of the twelve Federal Reserve Banks shall accept de-
posts from individuals but each shall represent all the banks
in its district having Federal charters and shall also be Govern
depositones In times nnanclal sngency bank
may take the Federal Reserve Bank of its district merchants
accepances shortem notes ARISING OUT OF CONNER.
CAL TRANSACTIONS for redscount and obtain from the
Federal Reserve Bank United States Treasury Currency
for 70 per cent of the face value of such notes.
The notes redcOunted to be limited solely
mercal bills payable within from forty fave hundred
twenty days and based upon stock bond
shall be discounted The discounted will be
backed by the entire of the bank pedng the notes. by
credit of the individual borrowers by the the
Federal Reserve Bank The of paper which any ndvd
ua bank may redscOut limited oneha its padn capital
Each Federal Reserve Bank will be required all times
keep hand actual gold SO per the aggregate
of the commercial notes redscoun for the banks of its dis
trict.
The Federal Reserve Banks will obtain United States notes.
emergency currency to pay for these merchants notes
from the Federal Washington such rates Of
interest the Federal Board shall fix from time to time
The Owens Glass bill in its present form does provide
specifically enough that the rate of discount shall be such that
the emergency currency issued shall automatically return
the Treasury and be cancelled emergency past
This emergency usually temporary panic the annual
moving the autumn Of year when least three hundred
million dollars currency needed pay the American farmer
for his harvest
The profits of the twelve district banks will the
national banks which contribute to its stock and funds
to the extent of per cumulative dividend annually and
further AL profits IN of per will be used first
surplus fund equal per capital
of bank and after fund 90
per cent Of such capital all further profits the Government
Thereby all temptation directors of the banks
derake undue risks embark unsafe hnancerng removed
The national banks who stockholders six and
President Of the United States appoints three of the nine d
of each district bank Three the directors
elected by the banks must be fairly representative of the
business and commercial interests of the district and direct
of any bank
[comnent Why very Oppos
the geo BIN Bitterly ptH
medtatey these oolumnsl