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

The fundamental principles are first
that the chief function of the banks of the country should be
foster trade and agriculture and not speculation
underwriting syndcates and second that the right issue
money inherent in the Government and that any association
of private bankers vested with the power issue money gen
er circulation MUST be under the supervision and control
the Government and third that all profits from such banking
privileges in of per upon the capital fur
nhed the private bankers such central association shall
be paid over to the Government.
Under currency act operation the
tonal banks and the issue of emergency currency of the
banks shall be under the Federal
members sitting Washington The Secretary the
Treasury the Secretary of Agriculture Comptroller
the Currency will be three of the members The other
brs Of whom must be experienced banker be a
pointed by the President United States by and with the
advice and of the Senate Members of the Board
for eight years unless removed by the President
This Federal Board will have complete veto power
though not complete power initiate action by
Federal banks distributed geographically according
the needs and volume of banking business all parts of the
country
Every national be compelled to subscribe to the
extent of 10 cent of its stock the capital
Federal Reserve Bank of its district Every bank shall be
required also to keep least cent of its cash
the Federal Reserve Bank of its district.
None of the twelve Federal Reserve shall accept
posts from individuals but each shall represent all the banks
in its district having Federal charters shall Govern
ment repositories In times of financial strngency bank
may take to the Federal Reserve Bank district merchants
acceptances shorttem notes ARISING OUT OF CONNER
CAL TRANSACTIONS for redscount and obtain from the
Federal Reserve Bank United States Treasury Currency
for rs per cent of the face value of such notes.
The rediscounted limited solely to com
merCial bills payable within from ortyhve hundred
twenty days and notes based upon trans
actions shall be discounted The notes discounted will
backed by the entire of the bank pedgng notes by
the credit Of the individual borrowers and by the of the
Federal Reserve Bank The Of paper which any ndvd
ua bank may rediscount is limited padn capital
Each Federal Reserve Bank will be required all to
keep hand actual gold SO per of the aggregate
of the commercial notes it redoounts for the banks
trct
The Federal Reserve obtain United States notes
emergency currency pay for these merchants notes
from the Federal Reserve Board Washington at such rates of
interest as the Federal Board shall fix from time time
The owensGlass bill in its present does not provide
specifically enough that the rate of discount shall such
the emergency currency issued shall automatically return
to the Treasury and be Cancelled when the past
This emergency usually temporary panic the annual crop
moving in the autumn of when at least three hundred
million dollars currency needed pay farmer
for his harvest.
The profits district reserve banks will 90 to the
national banks which contribute stock and reserve funds
to the extent of cent cumulative dividend annually
no further All profits in of per cent will be used first
to create surplus fund equal 20 per the capital
of each bank and after 90
per cent Of such capital all further profits go the
Thereby all temptation to directors of the
derake undue risks embark unsafe nancering removed
The national banks who stockholders elect and the
President of the United States appoints three of the nine d
ector Of each district bank Three of the directors
elected by the banks must be fairly representative of the
business and commercial interests direct
of any bank
Very Oppos-
ing the Ne'o Currency BH Bitterly" appear
modtdtely in these columnsl