The Lakeland evening telegram., 1913-12-23
PRESIDENT To SIGN CURRENCY
BILL At SIX O'CLOCK TONIGHT
WILL USE TWO GOLD PENS TO SIGN DOCUMENT WHICH IS OF
WORLD WIDE INTEREST," WI IL THEN LEAVE FOR PASS
CHRISTI AN, MISS.
SUMMARY OF THE MEASURE
The Salient Feature the Bill and is Principal Details Are Given Below
Little Change in 0perat ion Of National Banks

AOAA Va ANoVAVAAsAA OeSAAN0s
such as notes, drafts and bills of ex-
change, to these reservoirs" and
secure the use of their own reserves,
or If necessary even the reserve of
other banks, by depositing this Sc
curity.
The new regional banks will re-
ceive about one-half of the bank re-
serves of the country. They, in
turn, will be permitted to loan back
to the banks all but 35 per cent of
these reserves, so that in case of
emergency, millions of cash can be
brought out into circulation quickly.
The banks will have to pay for these
loans, however, as individuals have
to pay for a loan from any local
bank; and this charge is expected
to prevent the ofree use of the re-
serves held by the regional banks.
A new form of paper currency Is
also provided for, to come out in case
Of emergency, and which is expected
to 60 back into the hands of the gov
ernment when times are normal.
These treasury notes" will be print
ed by the government, and issued
through each regional reserve bank,
and will bear the guarantee both Of
the regional bank and the govern
ment.
If the demand for currency in any
section of the country exceeds the
supply of circulating money, re-
gional bank can secure this new
money from the government and put
it into circulation; but a gold re-
serve Of 40 per cent and commercial
paper equal to the full value of the
note, must be held as reserve be-
hind each note so issued. This pro-
vision is expected to be the influence
that will drive the new money back
into retirement when it is no longer
needed,
The following analysis presents
the details of the new law without
adhering closely to the technical di-
vision or language of the measure.
At the head of the system will
stand a federal reserve board at
Washington, appointed by the presi-
dent, and to consist of the secretary
of the treasury and six other men,
bers. Two of these shall be expert
bankers, but none shall have bank
ing affiliations or own bank stock
during their service. This board will
exercise general control over the en-
tire system.
The temporary organization com
mittee," or the federal reserve board,
will select from eight to twelve cities
where regional reserve banks shall
be located, and will divide the entire
country geographically with these
cities as the centers of districts. All
national banks in district will be
required to subscribe for the stock of
the regional reserve bank in that dis
trict, and to keep a portion of their
reserves there.
Local banks will be known as
member banks" because they will
own the stock of the regional reserve
bank of their district. Each member
bank will be required to take capital
stock of the regional reserve bank,
equal to per cent of the member
banks capital and surplus. The cap
ltal Oh the regional bank Will in
crease or decrease so that it always
represents per cent of the com
bined capital and surplus of all the
banks of the district that have joined
the system.
National banks are compelled to
join, and State banks are permitted
to if they bring their reserve require
ments up to the standard set for ma
tional banks, and submit to national
examinations.
Public ownership of the stock of
the regional reserve banks is permit
ted only in case enough banks do not
join in any district to provide cap
ital stock of 100000. In such
event the public may purchase the
stock in quantities limited to $10,-
900 for each individual; but the vot-
ing of this stock will be placed in the
hands of government representatives
(GnnffnY.ad nr pona ~