The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-12-21
EMERGENCY MONEY
ACT is EXTENDED
Allays Fear of Dangerous Striu-
gcncy During Period of
Transition.
TAX MATERIALLY REDUCED
President TO Select Members OF
Eoard as Speedily as
Possible.
TAX MATERIALLY REDUCED
Especial to The Times-pispatch.l


Washing ton. December 2o-.any
fear that may have been felt by bank.
crs or the general public that thoro
Will be a dangerous strinEcncy Of
money during the transition period be
tween tho vacation OF the old order
OF things and tho inauguration of the
new currency system. is nlayed Scna-
tors declared to-day, through the eX-
tension and modification OF the AID
rich Nrcc!and act in the currency bill
now i'm conference.
Notwithstanding the transfer OF
funds through the subscription to tho
capital stock OF reserve banks. and
the .niftins OF reserves to those banks.
has been arranged la tho law to cX-
tend over such periods of timo as may
not affect the business Of banks. the
mere contingency of a shortage of
money. according TO students OF the
proposed law Ens been amply cared
for.
Under the emergency act o, May go
1905. an issue OF S5oo.ooo.cco emcr-
gency notes WAS authorized on bonds
and securities other than those OF the
United States Although this vast sum
OF circulating notes was at once pro-
pared. they have been stored In the
Treasury vaults for more than four
years and not Il dollar OF the currency
authorized by the Aldrch -Nreeland act
has been put In circulation
That law made these notes available
only In times of imminent danger or
panic. because OF the high rate at
which they were taxed. This taN be
gan at tho rate OF per cent per an
mum {sr the first month increasing Mt
The rate OF per cent for each add.
tional month ur TO 10 PEI cent This
was n prohib:tlvc rate. tho same tax
that drove the notes OF state banks
out OF existence
Emergency Act Extended
Ono OF the last amendments agreed
upon III the Senate Yesterday extend
ed this emergency act until Juno 30
1915, by which time tho new Ystcrn
it is presumed. will DO IL active opera
ton In addition. the tex against
these notes was materially reduced
IT needed, they will pay ut the rate Of
J per cent per nnuum for tho first
three months. ami after that at tho
rate OF one half Of per cent for each
month IN TO 4 total OF Q per cent.
Under this lowered tax, Il is believed
the banks would not suffer If they
Bwera required temporarily to take out
currency under the terms or the omor-
gency laws, and, lawmakers say. there
could be no legitimate excuse for bank
ers either TO fear or 10 create IA strin-
Eency In the currency
/ 1t Will require some time to put the
new law into operation. Before any
! thing can be done tho membership OF
the Federal reserve board must be
determined upon. IL is understood that
I President Wilson has been giving this
Important question some consideration.
: but Inns not reached conclusions II
will be a matter TO which lie will give
much rejection and study willie on his
( Tho selection of the proper kind OF
men is handicapped somewhat by the
comparatively neagrc compensation AL
lowed under the law. The pay will lie
only $1,000. and this is said to bo not
sum sufficient 70 prove attractive to
the highest technical and adimnistra-
tive talent such rs should he ut the
head OF this great government body.
particularly during the early stages Of
It's Development.
Membership of Hoard.
Not more than ono or the members Of
This hoard can be selected from auv
one Federal reserve district Two Of
them. at least" IN the language OF
the bin Shall be persons experienced
in banking or finance"
The organization committee, charged
WIN the duty of beginning the new
'ystcn, determining tn. reserve dis.
,ricts. the cities IN which the regional
notifyinG eligible banks to prepare for
the change cannot be organized until
the Federal board has been named con
hrmcd by the Senate aud organized.
AnNious 10 sec tho now system iutugu-
rated ut rs carly a day as possible the
President VIII mako his choice az
speedily ~ the great Importance OF the
task viii permit, but with tie cxer-
else OF Unusual diligence Senators do
not expect the nominations OF tie mem
bers OF this board until late In January
or possibly carly in February. Tho
Qualification and standing of these APP
pointeca viii bo carefully rcrutinZod
Republicans have declared they viii
protest any effort should il be made.
To fiji this board with mere political
appointces. Meanwhile. Sccretary Ne
Adoo is comforting with the President
regarding tho personnel. and OH his
judgement the President Will largely
depend for the proper men 10 head
the IDGprul