The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1913-12-23
SUMMARY OF MEASURE THAT
WILL GREATLY BENEFIT
THE COUNTRY.
Safeguards Currency Of the Nation and
Provides Against Strinseney
In Times OF Panic.

|. WASHINGTON. Dec. 22.-The new
bill affecting the currency. banking
and finances of the country which
both branch of congress prepared TO
pass before Adjournment tonight and
goes before President Wilson for his
signature, Il one of the far-reaching
measures relating 70 finance that has
been enacted in many years. The
magnitude OF the subject. the diversi-
~ OF interests affected. and the length
OF the debates in both branches of
congress. has made IL difficult for the
ordinary observer to follow the
changes and grasp the essentials OF
this highly technical measure in its
important bearings on money. finance.
banking and the entire range OF fiscal
subjects. public and private. which II
affects With a view. therefore. OF
presenting succinctly and I'm non
technical language. an epitome of the
salient features OF the measure as fin
ally framed the following summary
is given Of the bill a. a whole and Of
its principal details.
Generally speaking. the FIRST steps
TO be taken to bring into operation
the nations new financial system
will be through an organization com
Of the treasury. secretary or agricul-
lure and comptroller OF the currency.
Banks have sixty days within which
20 file their applications for mem
bership in the new system: and one
years time is allowed before the gov
eminent win compel he dissolution OF
any national bank that refuses 10
join.
Little Change in Nationals.
The new law will make little direct
change in the operation OF the pres
ent national banks. except 10 allow
them to loan a certain amount OF
their funds upon farm mortgages. It's
chief purpose Is to- add n new piece
OF machinery to the banking system
thar will take M the slack" during
the changing business conditions Of
each year. that will give the banks a
place 10 quickly convert their assets
into cash in time Of need. and that
will bring out new federal currency
when II Is needed. and retire IL when
money becomes cheap"
Banks are now required 20 keep a
/ certain percentage 81 their deposits
as reserves" part I'm cash IN their
own vaults and part OF which may be
fedeUOsitcd I'm the banks OF New York.
T Chicago. ST Louis and other desig.
mated cities. In times ~ sudden finan.
cial demands. when banks have loaned
mp 10 the full limit 81 their resources
these reserves furnish little relief. be.
cause II they are paid out 10 meen de-
mands. the banks are left In a preca-
rious condition
The basic principle % the new Law
is 10 get these reserve funds out into
/ circulation when necessary. without
b lessening the safety 81 any bank. and
. fo provide place 20 which local banks
may rush In r. crisis and get cash for
/ the prime commercial paper" they
+ hold ln their vaults
This is 10 De accomplished through
r. chain % regional reserve banks. or
reservoirs ~ reserves On which an
banks shall deposit n stated part ~
ihe money thoy are required % hold
ae reserves Under the nov system.
I when a financial furry comes tho
I banks can take commercial paper
F such as notes. drafts and bills ~ on.
change 10 these "reacrvofru" and 80
cure Tho use Of their own reserves. or
/ n necessary even tho reserve % Other
I banks. by dcpositinF this security.
Get One.Han % Bank Reserves
Tho nov regional banks VIII receive
about ono hair ~ The hank reserves 81
'h" country They. In turn. viii b.
permitted 10 loan hack % tho banks
HII hW 3, per cent ~ these reserves
eo That ln case ~ emergency millions
of cash can Do brought ont into circu.
la'Ion quickly Tho banks viii have 10
pay Tor these loans. however. az lndi.
ti1uale have to pay Tor loan from
any local bank and this charge ie ~
/ lrcied 10 prevent tho too free use OF
. ihe reserves held by tho regional
banks
: now form ~ PAPER currencv a.
also provided FOR 40 come out fr Gao
| ~ emergencY. and which a. cvn.rfef
. iu ru bach into tho hand. of fHs -,,
L Iunml han L-n-.- -.