The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-08-24
BANKERS AGREE
ON MANY CHANGES
TO CURRENCY. BILL
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man OF tho board of directors Of re-
gional banks.
That tho advisory board Of tho Fed
oral reserve bank DO abolished.
That the authority Of tho Federal
reserve board to compel one member
bank to rediscount paper OF another
member bank be mado optional instead
OF manda tory.
That the cumulative dividends allow
cd member banks out of earnings on
their shares in tho Federal reserve
bank DO increased from to per cent
That State banks accepting member
ship in Federal reserve banks be err
their corporate names.
That all government moneys be de-
posted in Federal reserve banks ex-
cept the per cent redemption fund
OF outstanding national bank notes
That Federal reserve banks be pro-
hibited from rediscounting paper drawn
for carrying of securities other than
stocks and bonds.
Would Reduce Reserve.
That the country banks required re-
serve be reduced from Is to IL per cent
and that not less than per cent be
kept In the bank vault, not less than {
per cent deposited with the Federal
reserve bank, and the remainder with
the correspondent.
That the reserve city banks required
reserve be fixed ut IS per cent instead
OF 20 and % per cent, per cent to
remain in vault, per cent in Fed
cral reserve bank, and per cent with
the correspondent In central reserve
bank.
That the central reserve city banks
required reserve, which varies from 20
20 per cent in the vault and o per CEN,
In tho Federal reserve bank.
That the time limit on farm loans
be extended from nine to twelve
months
That the section Of the bill relating
to savings be stricken out.
That the Federal reserve banks Issue
the necessary currency bank notes. un-
der the control of the Comptroller OF
the Currency, instead OF having treas
ury notes issued by the government.
The conference considered this plan
necessary for the protection OF the
governments credit in time OF war or
other emergency.
The amendment proposed for this
provision OF the bill follows:
That Federal reserve banks notes
issued by permission OF the Federal
banks. arc hereby authorized; the said
notes shall be obllga tions OF the Fed
eral reserve banks and for all taxes,
customs and other public duties.
R-d~cmahle in Gold.
"They shall he redeemed in gold on
demand by the banh of issue.
ANY Federal reserve bnnk, upon
vote OF It's directors and within limit
prescribed by the Federal reserve
board, may issue such amount Of the
notes hereinafter provided for as IL
may deem best.
Whenever any Federal reserve bank
shall pay out Federal reserve bank
| notes Issued by it "a hereinafter pro-
vidcd, II shall segrcgate in its own
vault and shall carry to n special re-
serve account on its books gold equal
| in amount to 40 per cent of the Fed
eral reserve bank notes so paid out by
II. such reserves 10 be used for the re-
demptlon of said Federal reserve bank
notes.
That full amount OF such note is
sues by each Of said banks shall al
all times be covered by rediscount pa
per and purchase of foreign bills held
by such banks under the provision OF
this act; however, nothing herein pro-
vided shall prevent an exchange OF
said Federal reserve bank notes for
gold OF equal amount Of the issue OF
u
the purchase of like amount OF gold
Notes SO paid out shall bear on their
| races the name OF the Issuing bank
Whenever the gold reserve is 40
! per cent or more. such notes may he
Issued without tax; whenever such re-
serve shall fall below 40 per cent, and
shall be between 3T1a per cent and 40
per cent, such deficiency OF reserve
| shall boar tax OF interest at the rate
or u per cent per annum, and for
each 2ia per cent or part thereof for
reduction OF reserve m additional tax
OF interest at the rate OF Y per cent
! per annum OF such efficiency of reserve
! shall be paid into the treasury of the
United States. and whenever and while
such reserve shall be reduced TO 33 g
/ per cent of such outstanding notes. no
/ further issues OF notes shall be made
! Whenever Federal reserve bank
notes Issued by one Federal reserve
! bank shall be received by another Fed
eral reserve bank. they shall be re-
I turned for redemption TO the Federal
reserve bank by which they were
originally issued. and at its expense for
transportation. No Federal reserve
bank shall pay out notes issued by an
| other under penalty OF tax of 10 per
! cont upon the fnce value OF notes sc
| paid out. The amount OF such Federal
reserve bank notes so Issued by any
such Federal reserve bank shall become
| n frat and paramount lien on all the
nssets OF any such Federal reserve
! bank"