Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1913-06-27
DRASTIC CHANGES
IN CURRENCY LAW
New Measure Provides for Many
Reforms in the Financial
System.
FEDERAL BOAhD TO CONTROL
Law Provides for establishment Of
federal Reserve Baaks-Rlaid
Rules Are Laid Down-Con-
gress Gets Bill.

Washington, D. c., The ad-
m1n1stration banking and currency re-
form bill was presented in both houses
OF congress today. The bill was in
reduced in the ena by Senator
Owen and in the house by Congress
man Glass.
The bill is known as the Owen-GlasS-
McAdoo bill and has the approval of
President Wilson. 1t is likely to be
modified in some minor particulars dur
Ing its consideration by congress-, but
In most of its essential features it will
be the law of the land, in all probabili-
ty, before the present session of con-
gress adjourns.
Provisions Of tho Bill.
Summarized, the bill is as follows:
The secretary of the treasury, the
attorney general, and the controller of
the currency are formed into an or
gan1zation committee for the purpose
of dividing the United States into not
less than II districts, each district to
contain a federal reserve city.
In each federal reserve city the or
ganization committee will organize a
federal reserve bank.
Every national bank within a re-
serve district must subscribe 20 per
cent. Of it's u%nimpaired capital to the
capital stock of the federal reserve
bank of that district, the capital stool
to be not less than $4,000. 600.
Branch Houses Limited.
Each federal reserve bank may es-
tablish branch offices, the number of
which must not exceed n for each
100000 of he capital stock Of such
federal reserve bank.
Every federal reserve bank shall be
incorporated and shall have success
sion for a period of 20 years from it's
organization.
Every federal reserve bank shall be
controlled by q board of nine direc-
tors holding office for three years,
three of whom shall be chosen by the
s~tockholding banks, three represent
Ing the general public interests of the
reserve district, and three designated
by the federal reserve board. Share
holders in a federal reserve bank shall
be entitled to an annual dividend Of 5
per cent. on the paid up capital.
Raising of Surplus Fund.
One-half of the net earnings shall
be paid into the surplus fund until
that fund amounts to 20 per cent. of
the banks capital, and the remaining
half shall be paid to the United States
When the surplus fund amounts to
20 per cent. Of the capital and the
shareholders have received their five
per cent. dividends, all excess earn
{roc cho11 ho roiI to %L1 T1-;tol
States.
Any state bank, banking associa-
ton, or trust company may subscribe
to the stock of a federal reserve bank.
A federal reserve board is created
consisting of nine members, the secre-
tary of the treasury, the secretary of
agriculture, and the comptroller Of the
currency, three members chosen by
the president Of the United States and
by and with the advice and consent Of
the senate, for a term Of six years,
one of whom is to be the governor, an
other the ~vice-governor, and the third
the secretary; and three members
chosen by the electors Of the federal
reserve banks.
Powers of Federal Board.
The federal board as empow-
cred:
To examine accounts and books of
federal reserve banks.
To require or permit a federal re-
serve bank to rediscount the paper Of
any of the federal reserve banks.
To establish each week or oftener a
rate of discount which shall be mand-
atory upon each federal reserve bank
for each class of p
To supervise n regulate the is
sue of treasury notes to federal re-
serve banks.
To require the removal of federal
reserve bank officials for fncompe-
tency, dereliction of duty, fraud
or deceit.
To require the writing off Of doubt
full or worthless assets upon the
books and balance sheets of federal
reserve banks.
To suspend the further operations
Of any federal reserve bank and ap-
point a receiver therefor.
Limit OF Banks Business.
A federal reserve bank nay re-
ceive from any of its stockholders de-
posits of current funds. national bank
notes, federal reserve notes or checks
and drafts upon solvent banks.
Upon the endorsement Of any mem