The Oskaloosa herald., 1913-12-25
CURRENCY MEASURE
PASSED BY SENATE
Money Bill Wins in Upper Body
81 to "a.
8 REPUBLICANS FAVOR ACT
Contains Provision That Banks Must
Accept Within Sixty Days Of Ito
Passase-Reserve Districts
Eight to Twelve.

the solid Democratic vote and the adj
ditional vote of eight Republicans. the
new currency bill passed the senate
last night by vote Of 81 to "a.
The vote was taken at 7:42 o'clock.
tee of the whole, had approved the
bill In an afternoon session. 's'
The essential features OF the cur.
rency bill as it passed the senate are
as follows: @%
Secretary of the treasury and two
members of the federal reserve board
constitute the organization COMMITTEES
The committee Is to designate not
less than eight nor more than IL re-
serve districts, in each of which fed.
eral reserve Gank is to be established.
Musu Write Acceptance. ~
Every national bank is required and
every eligible bank in the United
States and every trust company in the
District of Columbia is authorized to
signify in writing within sixty days
after the passage of the act its &C
ceptance of its terms.
National banks are required and 9th
ers are permitted to subscribe to the
capital stock of the reserve banks In
a sum equal to six per cent of the
capital and surplus Of such banks, one.
sixth to be payable on call, one-sixth
within three months and one-sixth
within six months, the remainder sub
ject to call
Any national bank to signify it's In
tention to accept the terms of this act
shall cease to act as a reserve agent
upon 30 days notice.
Any national bank failing within
one year to comply with any Of the
provisions of the act will forfeit it's
charter and privileges under the ma.
tional bank act
If the stock subscription by the
banks is not sufficient in the judg-
ment of the federal reserve board
to provide proper capital the stock
may be offered to the public. the max
imum subscription being $4,000.
Minimum capital of reserve banks
is fixed at 100000.
Each reserve bank must establish
reserve branches within It's federal re.
serve district at such places as are ap
proved by the federal reserve board
To Be Nine Directors.
Reserve banks upon deposit of any
bonds of the United States will be en-
powered to receive circulating notes
equal to the par value of the bonds,
with a proviso that the issue of such
notes shall not be limited to the
amount Of the capital stock of the
federal reserve bank.
There shall be nine directors hold
Ing office for three years, divided
into three classes, three to be chosen
by the banks and the representatives
of the stock.holding banks, three
chosen by the banks who at the time
of their election shall be actively en-
gagged in their district in commerce,
agriculture or some other industrial
pursuit, and three designated by the
federal reserve board. One Of the last
named class is to be designated by the
federal board as chairman of the board
of directors of the reserve bank. No
director of the last two named classes
can be director, officer, employee or
stakeholder of any bank.
Capital stock of the reserve banks
Is, not transferable and cannot be ny
pothecated. When a member bank
increases its capital stock its subscrip-
ton to the reserve bank must be in
creased correspondingly.
After all expenses have been met,
stockholders in reserve banks will re-
ceive six per cent. division, which
shall be cumulative. One.half the net
earnings above the expenses and divi-
dend is to be paid into surplus fund
until that fund amounts to 40 per cent.
of the paid in capital.
Franchise Tax Named.
OF the remaining half of the excess
half so per cent. shall be paid to the
United States as a franchise tax and
one-half to the United States as trus-
tee for the benefit OF depositors In
failed member banks and failed mem.
Der trust companies in the District of
Columbia. All net earnings derived by
the United States shall In the discre-
ton of the secretary OF the treasury
be used to supplement the gold reserve
held against outstanding United States
notes or shall be applied to the reduc.
ton of the outstanding bonded debt.
The federal reserve board shall con.
stst of seven members, including the
secretary Of the treasury as an ex-of-
fcio member and six members ap-
pointed by the president, to be con.
firmed by the senate. They are to be
selected with due regard to fair rep
resentation OF the different geographi.
cal divisions of the country. Their
salary is fixed at $4,000 a year and
the terms are six years.
The law provides that members of
said board, the secretary Of the treas
ury, the assistant secretaries of the
treasury and the comptroller of the
currency shall be ineligible during the
time they are In ONCE and Cor two
years thereafter TO hold any Office, po-
sition or employment conferred by any
member bank. Two members of the
board must be persons experienced in
banking and finance.
Bankers Barred IN Members.
No senator OF member OF tho hosso