The Greenville journal. [volume] (Greenville, Ohio) 1850-1918, 1913-06-26
DRASTIC CHANGES
IN CURRENCY LAW
New Measure Provides for Many
Reforms in the Financial
System.
FEDERAL BOARD TO CONTROL
Law Provides for Establishment Of
Federal Reserve Banks-Rloid
Rules Are Laid Down-Con-
qress Gets Bill.

gress Gets Bill.
Washington, D. c., June 20.-The ad-
ministration banking and currency re-
form bill was presented in both houses
OF congress today. The bill was in
troduced in the senate 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 it's essential features 1t will
be the law Of the land, in all probabili-
,ty, before the present session of con-
gress adjourns.
Provisions of the 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
ganization committee for the purpose
Of dividing the United States into not
less than IL 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 its unimpaired capital to the
capital stock of the federal reserve
bank of that district, the capital stock
to be not less than $5,000,OO0.
Branch Houses Limited.
Each federal reserve bank may es-
tablish branch Offices, the number of
which must not exceed one for each
$5O0,0O0 Of the 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 board of nine direc-
tors holding office for three years,
three Of whom shall be chosen by the
stockholding banks, three represent
ing the general public interests of the
reserve district, and three designated
by the federal reserve board. Share
holders in federal reserve bank shall
be entitled to an annual dividend of
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.
tngs shall be paid to the United
States.
Any state bank, banking associa.
tion, or trust company may subscribe
to the stock Of 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 oi
the senate, for 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 federal re
serve bank to rediscount the paper o.
any of the federal reserve banks.
To establish each week or oftener &
rate of discount which shall be mand
atory upon each federal reserve banl
for each class of paper.
To supervise and regulate the is
sue of treasury notes to federal re
serve banks.
To require the removal of fedora
reserve bank officials for incompe
tency, dereliction of duty, fraut
or deceit.
To require the writing off of doubt
full or worthless assets upon thu
books and balance sheets of fedora
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 may re
ceive from any of its stockholders de
posts of current funds, national banl
notes, federal reserve notes or checks
and drafts upon solvent banks. Il
Upon the endorsement of any mem