Delaware City press. (Delaware City, Del.) 1913-19??, 1913-06-27


total demand liabilities), such 15 per
cent to be held 5 per cent. In the
banks vaults, per cent. with the ma
tional bank reserve and per cent.
either at home or with the reserve
bank, while reserve and central re-
serve city banks have reserves of 20
per cent OF demand liabilities, of
which 10 per cent. will be at home, 8
per cent with the reserve bank of the
district and per cent either at home
or with the reserve bank"
1.-THE presumed effect Of this plan
will be to end the placing of reserves
with central reserve city banks for use
i in stock market operations, to keep
reserves in some measure at home and
! to require spectators to get the funds
they need in their operations either
| by directly borrowing them from per-
sons who hold them and want to lend
the cash for that purpose or else by
borrowing from the banks in the
places whore the operations are to be
| carried. on
"ln the belief that the present re-
serve system is Anticipated and un-
satisfactory; that to the massing of
funds in New York and other financial
centers, of which so much has been
said In recent years, is largely due to
the present reserve requirements of
national banks, and that in order to
get the real benefit from the system
of rediscount which has been proposed
as remedy for many existing evils it
is necessary to base such system upon
an actual control of reserves, provision
has been made for recasting the pres
ent bank reserve system.
Members OF Board.
The terms of office ofthe four men,
bers of the federal reserve board APP
pointed by the President are to be
eight years, with the provision that
those first appointed will serve two,
four, six and eight years, respectively.
Up to the last few days the federal
reserve board was to have consisted of
nine members instead of seven and
the banks were to be permitted to
select three of those.
This it will be noted, says Mr.
Glass Statement, "the government will
have absolute control of the system.
"The salary of each member, ex.
cepting the cabinet members, will be
$4,000 a year and the comptroller of
the currency would receive $4,000 in
addition to the $4,000 salary he now
receives.
1.-THE chief. points in the new federal
reserve bank are described as follows:
1.-THE number is to be IL, with pos
sible increase later, as provided.
1.-THE ownership is to be in the hands
of the stockholding banks of the IL
districts in which the reserve banks
are situated. The national banks are
compelled to be members and state
\ banks and trust companies are permit
= tea eAbe members,
& aes AS ~ f.sals rllisabs4 ~ ss
n s'Fhe capitalization 81 TO be 20 ppr
o cent. oil the capitol OF stockholding
; banks, one-half paid in and one-hall
subject to call.
/ 1.-THE business OF these federal re
e serve banks is to be as follows:
e "Rediscounting of paper presented
Y by stockholding banks under specified
= conditions, provided such paper grows
Y out of actual agricultural, commercial
o or industrial transactions, and does moi
d run more than a specified number OF
i days.
Buying and selling government
d securities, gold and silver bullion and
n foreign coin, foreign exchange and
l. open-market bills of given maturity.
d Government fiscal operations"
"In order to meet the view SO often
y expressed in commercial circles to the
c effect that the prosecution of Ameri
e can business in foreign countries
e would be greatly helped by improved
e banking facilities" Mr.. Glass state
If ment continued 1.-THE bill authorizes
e any national banking association with
a minimum capital of 100000 tC
establish branches in foreign countries
@ for the furtherance of foreign com
S merce OF the United States, and tC
n ate as fiscal agents Of the United
2 States abroad"
q The federal reserve board is requir
n ed to pass upon all applications of ma
ir tionaf banks to establish such banks
e abroad.
e Laws To Be Repealed.
d The federal reserve board would bt
h. clothed with such administrative pow
,e ers as examination, Redistribution
t. and designation of reserve banks, dis
cipline of officials of federal reserve
e. banks and receiverships. Certain por
e. tons of the existing banking lawi
ID would be repealed, the Aldrich-Vree
Of land emergency currency act woult
re be completely superseded, and in I
c. separate bill a general revision of tn,
lie administrative provisions of the ma
re tional bank act is to be provided. TIL,
bill would provide that within 80 day
e. from the date of its passage the Sec
to rotary of the Treasury shall designat,
al the federal reserve districts, the organ
n ization of the federal reserve bank
We shall begin and the transition period