The Ocala evening star. [volume] (Ocala, Fla.) 1895-1943, 1913-12-24

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 emergen-
cy, 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 too free use of the re-
serves held by the regional banks
Treasury Notes
A new form of paper currency is
also provided for, to come out in
case of emergency, and which is ex-
pected to go back into the hands Of
the government when times are nor
NAL. These treasury notes" will
be printed by the government, and
issued thru each regional bank, and
will bear the guarantee both Of the
regional bank and the government.
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 AMI put
F; it into circulation; but a gold re-
serve of 40 per cent, and CONNER
| cial paper equal to the full value Of
| the note, must be held as a reserve
! behind each note so issued. This
Iprovision is expected to be the in
fuence that will drive the new mon
no longer needed.
The following analysis presents
the details of the new law without
adhering closely to the technical di-
vision OF language of the measure.
| At the head OF the system will
stand a federal reserve board al
Washington, appointed by the Pres
ident, and consists of the Secretary
Of the Treasury, the Comptroller ot
the Currency and five other mem
bers. Two of these shall be expert
bankers. but none shall have bank
ing affiliations or own bank stocl
during their service. This board vii
eXercise general control over the en-
tire system.
The temporary organization CON-
mittee" or the federal reserve board
will select from eight to twelve cite!
where regional reserve banks shall
be located, and will divide the en-
tire country geographically witt
All national banks in a district vii
be required to subscribe for th1
stock Of the regional bank in tha
district, and to keep a portion o
their reserves there.
Member Banks
Local banks will be known a
member banks,' because they vii
, own the stock OF the Regional Re
serve Bank OF their district. Eacl
: member-bank will be required t.
: take capital stock OF the Regiona
Reserve Bank equal to per cent. o
5 the member-bank' capital and sur
{ plus. The capital OF the regiona
: bank Will increase or decrease s.
, that it Will always represents 6 pc
. cent. of the combined capital an
surplus of all the banks OF the dis
trict that have joined the system.
= National banks are compelled I
join, and state banks are Dernitte
20 if they bring their reserve re
Y quirements up TO the standard sc
. for national banks, and submit: t
. national examinations.
. Public ownership Of the stock c
! the regional reserve bank is pei
mitte1 only in case enough banks
, not join in any district to p- ovide
+. capital stock OF 81 900 600. In sue
II event the public may purchase tn
= stock in quantities limited 70 S25
! coo for each Individual; but the 70
ing OF the stock will be placed IN II
o hands of government representati'
. es on the board Of directors OF tn
Regional Reserve Bank
J. Can't Deal with Public
:, The regional reserve bank may q
IF business only with their membe