Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1913-12-08

crisis. + He discussed now TINS was
! safeeuarded under the present bill
and indicated the a~var1tages tnat
wouI.. accrue TO all the banks in the
country in making loans and! con
tGucting their business without fear
when they know that In time OF
Trouble there would be banks of re-
1uee and nope. He approved OF the
provision of the bill which limited the
loans of the Federal reserve banks 10
commercial. industrial! and agricuI-
tural purposes. He said great ad-
vantage would ACCRUE to all these
interests when the S636,OOO,ooo oi
resor rces which would be provide
for these banks would be dedicated TO
this purpose and not used IS now lor
speculative ventures. He claimed that
this would insure accommodation TO
Legitimate business and enterprise.
He insisted that this safeguarding
Of these reserves for this purpose
was confesse@ly needed.
He next discussed the issuance OF
currency under the proposed bill. he
insisted that the issuance Of currency
:: was a governmental function and
should be controlled by the govern
ment in tie interests of all the people
and not fer the profit OF few. tie
discussed the method pursued IN
ENGLAND France ani& Germany for the
issuance of currency and claimed
tbot the method in this bill was more
elastic and in addition was safer and
more prudent. He said that the limit
If the currency that could be issued
under this bin if the Federal reserve
hanks should utilize all Of their re-
,onrccs and possibilities for this pnr-
nose could not exceed $l,Sl1 1,0oo,ooo.
He stated that the Rank OF France
could issue currency to the extent OIL
81 900 100000. He then argued thal
on account of the greater business Oh
I'll kinds. greater population, greater
reed of development and greater
commerce, the excess of S2l''ooo'ooo
ovnr France was fully needed In TINS
country. He then insisted that whlle
tho currency was elastic and sutl'c'-
c,t vet it could not produce mia
!tion: that in order for currency 10
he issued, first the customer must
make his application to a member
hank. the member bank must approve
the application and endorse the loan
I'D tho, the reserve bank must en-
dorse the application Of this bank
and also approve the loan, ana then
-. Federal Reserve Board must72p-
prove the application before currency
rould h. issue, and that to secure
,be currency the security thus en-
Icrse1 must be deposited and re-
serve of 35 per cent kept IN aao'''oh'
lie pointed out that this was superior
-,pd safer than the safeguards IN the
hanks Of either Germany or france
He said that currency could only pe
issued when there was an urgent &C.
, man. of business men approved anu
endorsed by two banks ard the eu-
sraI Reserve Board appointed by the
President He argued that the pas
sage Of the bill would give both an
elastic, sufficient and safe currchSE'
IIo enumeratea the advantages to va
rious business sections ~h!ch
would accrue from this opportunity
and how banks in time of Strlngenc!
and panic would be saved from iear'
trouble and doubt.
.uo next pointed out the advantages
which would accrue to the eou'''. !
from requiring the deposits OF 'ae
rynitod States Treasury to be put III
.hose hanks. He said this would give
from Sl25, 100000 to S2l0'Ooo'ooV'
NOW locked up, for legitimate ouS'-
ness purposes much to the advantage
Of commerce and trade. He cso meu
that the banks would be very Pfo"''
,b,e and from conservative estimates
made BY experts would yield the
GOV, rnmen1 annually in profit De-
tween Sl2,0O0,O00, ard s2o'ooo'oo'
after paving six per cent interest on
1.-THE stock to the member banks. nc
stated that the system coui1 Dc i'''
aururated without producing "'
contraction Of loans and without an!
disturbance. He said that by reaoc
ling the reserve requirements Oh '
'tthe national banks and by onlE re-
touring FIVE per cent reserve on Vin''
;deposits more than S400,oo0,OOo no"
Hooked up in reserves and OF no use u
! business would be released. ans tina
1.-THE release Of this amount Of none!
would enable the banks to turlnsi
.o.+irallv nearly all the capital an'