The Holly chieftain., 1913-06-27
new CURRENCY BILL.
DETAILS OF ADMINISTRATION
MEASURE GIVEN OUT.
Provides for Reserve Banks and
Would Create About $5oo,ooo,-
900 More Treasury Notes.
Western Newspaper Union News Service.
Detail of Currency Bill.

Western Newspaper Union News Service
Detail Of Currency Bill.
Committee to divide country into not
less than twelve districts, each to have
federal reserve city.
Each reserve city will have a federal
reserve bank.
There will be fifteen federal reserve
banks.
Central control through a federal
board of nine members.
Proposed new federal reserve notes
limited to s500,000,o00.
Security for these notes may be gov
ernment or state bonds or approved
National bank repositories to be su.
perseded by the federal reserve banks.
Board of control given authority to
Headquarters of the federal reserve
board to be situated in WASHINGTON.
Authority given to country banks to
lend money on farming lanes.
Provision for banks of $1,000. 900 or
more of capital to establish branch
banks in foreign countries.
Washington. = The ADMINISTRATION
currency bill was made public by Rep
resentative Glass, chairman of the
House committee on banking and cur
rency. 1t will be introduced in the
House and Senate after President Will
son has delivered in person his ad.
dress to Congress.
An outline of the measure prepared
by Mr. Glass states that it will be gone
over in detail for alterations, and sets
out that its purposes Is to accomplish
three principal objects:
Provision of q means for redis.
counting Commercial paper Of speci-
fled types.
A basis for elastic notes properly
Bafe-guarded.
Machinery for doing foreign bank
ing business.
The measures essentials provide for
twelve or more federal reserve banks
which will rediscount paper, deal In
government securities, exchange and
conduct government fiscal operations.
National banks and such state bank
and trust companies as conform to
standards would be stockholders of the
reserve banks. The government would
hold no stock.
The government would control the
federal reserve banks entirely through
federal reserve board of seven mem
bers in which the banks would have
no representation. The board would
be composed Of the secretary of the
treasury, secretary Of agriculture and
comptroller of the currency as mem
bers ex-officio. Four other members
would be chosen by the President and
confirmed by the Senate.
The national bank note circulation
would remain undisturbed and no pro-
posal is made in the bill for retiring
approximately $700,000.000 two per
cent bonds upon which that note issue
now rests. An amendment or separate
bill to refund these bonds into three
per cent bonds may be introduced
later.
In addition to the $700,000,000 ex-
listing national bank notes, not more
than s50O,o0O,O0O in what are to be
known as federal reserve treasury
notes might be issued at the discre-
ton Of the federal reserve board, sole
ly for the purpose of making advances
to the federal reserve banks, which
would do no business with the public,
deal only with their member-banks and
receive deposits only from the United
States.
While the notes on their face would
purport to be the obligations of the
United States, they would be required
to be secured by gold reserve Of 80
1-3 per cent provided by the federal
reserve bank, and would be first and
paramount lien on the assets Of these
banks and would be redeemable In
gold on demand Of the treasury de-
partment at the city Of Washington
or any federal bank.