Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-06-20

and subject to removal by the federal
reserve board In case they do not fairly
represent these interests.
Tho remaining three directors arc to
be chosen by the federal reserve board
and one Of them = to be DESIGNATED by
said directors - chairman Of the board
Of directors Of the federal reserve bank
Of the district to which he 10 appointed.
and IL to be the agent Of the federal re-
serve board. .
"The national hanks are compelled to
be stockholding members Of the federal
reserve bank Of their respective dis
tricts. and state banks and trust COM
panies are permitted to be members
under certain well defined regulations
"All the domestic transactions OF the
federal reserve bank must be with
member banks and the government, ex-
cept that 1t may purchase bankers bills
and bills Of exchange In the open mar
ket from individuals as well as from
domestic or foreign banks.
Division Of Dusinsss.
"The object Of the bill IL to effect .
moderate division and classification of
banking business along indicated lines,
the net result presumably being sum-
med ~ follows:
4. National reserve banks will be
limited strictly to rediscounting actual
commercial and industrial transactions
evidenced by very short term paper
and on rare occasions, under carefully
prescribed conditions. to financial op-
erations protected by collateral They
will also be able to engage in foreign
exchange operations. sales of govern
ment securities. etc.
-. National banks viii be subjected
to precisely the Same restrictions a. ut
present. with a relaxation In favor OF
q moderate amount of real estate loans
by county banks under carefully
guarded conditions.
''8. BY q revision Of the administra-
tive features OF the na:.oEa! banking
act provision will be made for close
oversight Of national institutions. with
view to holding them strictly up to
the requirements of q legitimate bank
ing business.
Must Repeal Some Laws.
I'm order to accomplish these pur-
poses fully 1t is necessary to repatl
certain portions Of existing laws to
rectify various conditions in the pres
ent NATIONAL bankging system. which
are in some cases only indirectly con-
ected with tho objects sought.
Tho present banking situation IN
the United States rests on the national
bank act proper az slightly modified
from time to time and on the so-called
Aldrich- -vreeland act (act May 80.
190S.) OF these acts the latter 10 COM
pletely superseded on the ground that
it has never become operative. The ma
tional bank act itself. IL modified in nu-
merous essential particulars.
'Tn q separate measure general re-
vision Of .tha adn,iniatla provisions
OF the national bank act win b pro-
.vided..' Il ss4 Z.
.Ass<s. Fsr ycsntin6aklen ~ Prebs.
Washington. Tune 70.-Representa-
tive Neeley. Of Kansas. democrat. in Z
long speech In the house today advo-
Gated renewal Of the money trust In
quiry. He announced however, that he
favors Immediate currency reform.
"No person conversant with present
conditions" he said, will dispute the
necessity for this action. I have full
confidence that this democratic con-
gress will be able to devise plan free
from the control Of special and profit
expecting interests The good faith Of
the democratic party IL pledged to do
this as soon az we may, oven tho 1t be
necessary to remain here the entire
summer and until the regular session
convenes in December"
Wilson 70 Sign Appropriation Bill.
Washington. June 20.-After the cab
met meeting today It was said at the
White House that President Wilson
would sign, the sundry civil appropria-
ton bill with It's provisions prohibit
ing the use Of its funds for prosecution
of labor unions and farmers organiza-
tions under the antitrust, law. The
president will wrie memorandum
giving his reasons for signing the bill