The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1913-06-26

various restrictions are imposed In
reference to the extent Of the loaning
power of a federal reserve bank.
All moneys now held in the general
fund Of the treasury will be deposited
in federal reserve banks, which shall
act as fiscal agents Of the government.
All revenues of the government shall
be deposited In such banks and dis
bursements drawn against such de-
posits.
The federal reserve banks may be re-
quired to pay interest on government
deposits, but shall not pay interest on
any other.
The government and state banks de-
posting In the federal reserve banks
shall be the only depositors in the re-
serve banks.
Division of Treasury Notes.
Any federal reserve bank may mako
application to the federal reserve
board for such amount of treasury
notes as it may desire, such applica-
tion to be accompanied with an offer
of collateral security to protect the
notes, equal in amount to the sum ap-
piled for.
Whenever any federal reserve bank
shall disburse federal reserve trasury
notes, 1t must hold in its own vaults
gold or lawful money equal in amount
to 33 1-3 per cent of the treasury notes
so paid out by 1t.
Federal reserve banks may be re-
quired to deposit in the treasury a
sum in gold or lawful money equal
to per cent. of whatever amount Of
federal reserve treasury notes issued
to 1t.
Exchange OF collateral put up for
notes Is provided for.
Service as Clearing House.
The federal reserve board may act
as clearing house for federal reserve
banks, and may also require each such
bank to exercise the functions of a
clearing house for it's shareholding
banks.
Provision is made for the reduction
and wiping out of liability by federal
reserve banks.
Demand for Bank Reserves.
Within 60 days after the establish
ment of federal reserve bank every
/ national banking association shall es'
tablish with the federal reserve bank
of it's district a credit balance on the
books of the latter institution equal to
not less than three per cent. of its
own total demand liabilities, exclusive
Of circulating notes, and at the end OF
IA months this amount shall be in
creased to five per cent.
National banking associations clas.
sifled as country banks and situated
outside of central reserve and reserve
cities must maintain reserve equal
| to Is per cent of the aggregate
amount of their deposits. National
banks in reserve cities must maintain
reserve of 25 per cent. of their out
standing deposits for 26 months after
the passage of the bill and for IL
months thereafter 22h per cent, and
at the end of 3S months permanently
a reserve of 20 per cent. of their stand
ing deposits.
Every federal reserve bank must al
all times have in its vaults in gold ol
lawful money sum equal to not less
| than 33 1-3 per cent. Of its outstand
ing demand liabilities.
Drastic Examination Provided.
Drastic and frequent examination Of
national banking associations are pro
vided for
Each federal reserve bank Is author
lied to arrange for the examination
Of member banks within its district.
Any national bank making loan OF
gratuity to an examiner is subject tt
a fine of $1,000 and the officer or Off
GERS of the bank authorizing it to al
additional fine of $500. Any examiner
accepting the loan or gratuity is f1net
$500 and disqualified from office.
No officer or director of nationa
bank may be a beneficiary Of any
transaction made on behalf of hiE
bank. Should he violate this provi
sion he will be punished by fine O
not less than $4,000 or by a peniten
tiary sentence of three years, or both
Responsibility on Persons.
The stockholders of every nationa
banking association will be held in
dividually responsible for all obliga
tions of such association.
Any national banking association
not situated in reserve city ma!
make farm loans, equal to rs per cent
of its capital and surplus or so Pc
cent. of its time deposits.
Any national banking association
capitalized at $1,000,O00 or more may
through the federal reserve board, es
tablish branches in foreign countries
1t prescribes that the short title o
the act shall be the federal reserv
act" The second section which re
lates to federal reserve districts" re
quires that within 60 days after pass
age of the bill the secretary of tn
treasury, the attorney general, and tn
controller of the currency, acting u
a reserve bank organization commit
tee, shall designate from among tn
reserve the cities now authorized b,
law a number of such cities, not les
than IL to be known as federal reserv
cities, and shall divide the continer
tai United States into districts, eacl
district to contain one of such fedora
reserve cities.
| across the bridge in the darkness