Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-03
The Fundamental Principle Be-
hind the New Currency Act

The fundamental principles the Owen Glass bill first
that chief function of the banks of the country should be 70
trade and agriculture and not speculation or
underwriting syndcate; and second that the right to issue
money Government and that any association
private with power issue money for
era circulation MUST the supervision and control Of
the Government third that all profits from such banking
privileges per upon the capital fur
nshed by private such central association shall
be paid over to the Government
currency the entire operation of the
ona banks and the of emergency of the
serve banks shall be under Federal Board of
sitting Washington The Secretary of the
Treasury Secretary Agriculture and the Comptroller of
the Currency three members The other four
experienced banker be ap
pointed by United by and with the
advice and of the Senate Members of the Board
eight years unless removed by the President
This Federal Reserve Board will have complete veto power
over though complete power initiate action by
Federal banks distributed geographically according
the needs and volume of banking business all parts of the
country
Every national bank shall be compelled subscribe
of 10 per of its the capital
Federal Reserve Bank of its district Every bank shall be
required also to keep least per cent of its cash
the Federal Reserve Bank of its district
of the twelve Federal shall accept
posts from individuals represent all the banks
in its district having Federal charters and shall also be Govern
repositories In times of financial rngency any
may the Federal its district merchants
acCeptanCes shorttem ARISING OUT CONNER
CIAL TRANSACTIONS for redisCount and obtain from
Federal Reserve Bank United States Treasury Currency
for rs per cent of the face value of such notes.
The notes redscounted to be limited solely
mercia bills payable within from foryve to hundred and
twenty days and notes based upon stock bond
actions shall be discounted The discounted
backed by the entire the pedgng The notes by
the credit of the individual borrowers by the assets of the
Federal Reserve Bank The of paper which any ndvd
ua bank may redsoount is limited half paid capital
Each Federal Reserve Bank will be required at all times TO
keep en- hand in actual gold SO of the aggregate
Of the commercial notes redsCoun for the
tIict
The Federal Reserve Banks will obtain United States notes
emergency currency to pay for these notes
from the Federal Reserve Board Washington rates of
interest the Federal Board shall fix from time to time
The Owens Glass bill in its present form does provide
specifically enough that the discount be such that
the emergency currency issued shall automatically
to the Treasury and be cancelled when the past
This emergency usually temporary panic the crop
moving in the autumn of every year when hundred
million dollars currency needed pay the American
for his harvest.
The profits of the twelve district 90 to the
national banks which contribute its funds
to the extent of per cumulative dividend annually and
further All profits in of per will used first
to create surplus fund equal to 20 per of the capital
of each bank after amounts to 20
per cent of such capital all further profits the
Thereby all temptation directors of the to
dertake undue risks embark unsafe nancerng removed
The national banks who stockholders elect six
President of the United States appoints three
of each district bank Three directors
elected by the banks be fairly representative of
business and commercial interests of the district direct
of any bank"
IContet WIZ Tey Oppos-
ING the Ne0 Currency Bitterly" appear
rrediately cogmnsl