Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-23

sentative Carter Glass chairman OF
the House Committee on Banking
| and Currency has made puclic a
digest Of the Administrations cur
rency reform bin which he intro
duced in the House to-day By the
terms Of this measure the Federal
Reserve Board which will control the
issuance Of new currency on apph-
cation of the regional reserve banks
Is to be a Government board en-
tirely
There will be no retirement Of ex-
listing national bank circulation, nor
OF the existing per cent United
States bonds used for circulation pur-
poses. Every national bank is al
lowed to continue its note issue ex-
actly as at present.
Following is the digest prepared by
Representative Glass.
THE purpose Of the bill is to fur
nish a comparative revision Of the
currency system Of the country so as
TO obtain three principal objects.
first Provision OF a means for
redlscounting commercial paper OF
specified types
Second Provision OF basis for
elastic note issues properly safe
guarded
Third Provision Of machinery for
doing foreign banding business.
Present Law Inadequate"
In order to accomplish these pur-
poses fully II is necessary to repeal
certain portions Of existing law, Ia
rectify various conditions in the pres
ent national banking system which
are In some cases only indirectly con
nected with the objects sought; to
| furnish a new class of instructions for
| the performance Of some functions
| which can not wen be intrusted to ex
listing banks, or at all events, can
| better he performed by others. and Ia
| alter the present reserve system to a
very material degree.
The scope of the bill can best be
| understood by an analytical review
| OF its contents
The present banking situation OF
| the United States rests on the nation
al bank act proper as slightly modi-
| fed from time to time and on the So
| called AldrtCh- Nreeland act (aCt OF
May 30, i90S).
"Of these acts the latter is com
pletely superseded on the ground that
! probably Will not become operative
except under extreme distress, and
| never was satisfactory. The nation
al bank act itself is modified in nu-
| mcrous essential particulars
New Glass of Banks.
Fundamental to the idea Of the biz
Is the creation Of a new class OF
! banks to be known as Federal re-
serve banks, the chief points about
which are as follows:
The number is to be twelve. WITH
possible increase later as provided
The ownership is to be in the
hands of the stockholding banks Of
| the twelve districts in which the re-
| serve banks are situated National
| banks are compelled 10 be members
and state banks and trust companies
are permitted to be members
THE capitalization is to be 20 per
cent Of the capital Of the stockholdinE
banks, one-half paid In and one hall
! subject to call
The business Of these Federal re-
! serve banks is TO be as follows:
Reserve Banks Business.
'Rediscounting of paper presented
/ by stockholding banks under speci-
| fed conditions. provided such paper
1 grows out of actual agricultural. COM
mercial or industrial transactions and
/ does not run more than specified
I number Of days
Buying and selling Government
| securities. gold and silver bullion ans
| foreign coin; foreign exchange and
open market bills of given maturity;
| Government fiscal operations.
/ Every national bank is allowed &c
! continue its note issue exactly as Al
| present and in addition Federal re-
| serve treasury notes are authorized
/ to be issued to an amount not exceed
/ ing 100000 600
| These notes will upon application
/ be issued to the Federal reserve