The Washington times., 1913-06-19
CURRENCY SKY
AGAIN IS CLEAR
Glass Expects to Introduce
the Administration Measure
Early Next Week.
CONTINUED from First Page.)


to be a tentative draft of measure
prepared several weeks ago. which has
since been changed in several essential
features. Net even the President him
self has yet seen the rewritten copy Of
the BILL
AS now framed tie hill G.v:ties Ire
country into f:tcen regional resctvc dis
tricts, each With Eovc.Iin. heard,
but all un1s- :s>r-ntral reserve tank
in Wash M, IN. This reSer. = beard is
TO be com :osed of nice ;iien'hers- 'Eree
Cabinet officers, three rnrinhrr; i.'t-
ed BY the regional reserve associations,
probably bankers and three members
appointed by t,i- President
Issue of SOC GU, 60 i'll e'nerse,:tr-; cur
rency by the reserve h..;r1 Is auth r.
Of asset currency. nc; hasoa uE"n
gold reser Yes, but upu:i !'cdc'n Sta;e,
and local bonds or Commercial papers,
the latter to be approved and limited
by the Judgment of the reserve board
Interest on Emergency Funds.
Interest upon the emergency currency
is to be fixed by the separate reserve
associations. 1t is not proposed that
II be uniform in all Of the fifteen dis
tricts.
Membership OF all national banks in
the separate reserve ASSOCIATIONS Is
obligatory, according to the bill, and
loans upon real estate limited to 50 per
cent of its value and to period OF
nine months, are another proposed fea-
ture.
That the tentative bill will be materi-
ally changed in both the Senate and
House Banking Committees. despite the
approval given 1t by the President, was
widely predicted tooay at the Capitol.
The Federal reserve banks, of which
there will be fifteen, located geographic
ally with reference to the regional re-
AEFn H1 Nk,n
fiscal agents of the Government and
vii lbecome virtual subtreasuries. All
money in the general fund would be
deposited in these banks within twelve
months.
Plan of Control Board.
The Federal Board of Control, on
which the Government will have six
members, will have control and super
vision over the banks forming the re-
kerve associations.
All national banks will be compelled
to join these Federal reserve associa-
tions. but State banks and trust COM
panies fulfilling specific requirements
enumerated in the measure likewise Will
be permitted to become shareholders In
the proposed Federal reserve banks. The
number of Federal reserve banks may
be increased at the discretion of the
Federal Reserve Board.
The Federal reserve banks. in ad-
dition to acting as fiscal agencies for
the Federal Government would be al
lowed to receive deposits from all banks
belonging to the Federal reserve bank
ing associations. The Federal reserve
banks would be allowed to do for MEM
ber banks a rediscount business on
notes and bills of exchange arising out
of commercial transactions issued and
drawn for agricultural, industrial, and
commercial purposes.
The Federal Reserve Board would
have the right to determine or define
the character of the paper thus eligible
for discount. But such definition would
not include notes or bills issued for
carrying or trading in stocks, bonds, or
other investment securities, except
notes having a maturity of not exceed
ing four months isued by State, county,
or municipalities.