The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1913-06-27

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poSits.
The federal reserve banks may be re.
CURED to pay interest on government
deposits, but shall not pay interest on
any other.
The government and state banks de-
posting in the federal reserve banks
shall be the only depositors in the re-
serve banks.
An issue of $500, 100000, plus an
amount equal to the amount of ma.
tional banks notes which may be re-
tired, is authorized.
This issue shall be made at the dis
erection OF the federal reserve board.
Division of Treasury Notes.
Any federal reserve bank may make
application to the federal reserve
board for such amount of treasury
notes as it may desire, such applica-
ton to be accompanied with an offer
of collateral security to protect the
piled for.
Whenever any federal reserve bank
shall disburse federal reserve trasury
notes, it must hold in its own vaults
gold or lawful money equal in amount
to 33 1-3 per cent. of the treasury notes
so paid out by it.
Federal reserve banks may be re-
CURED to deposit in the treasury
sum in gold or lawful money equal
to per cent. of whatever amount of
federal reserve treasury notes issued
to it.
Exchange of collateral put up for
notes is provided fer.
Service as Clearing House.
The federal reserve board may act
as clearing house for federal reserve
| banks, and may also require each such
| bank to exercise the functions of a
clearing house for it's shareholding
banks.
Provision is made for the reduction
and wiping out of liability by federal
reserve banks.
The secretary of the treasury is di-
rected to exchange United States 2 per
cent. bonds, bearing the circulation
privilege of per cent. bonds without
the circulating privilege. When the
outstanding 2 per cents. shall be ex-
changed or refunded the power of ma
tional banks to issue circulating notes
secured by United States bonds will
cease
Every national bank may receive cir
culating notes under the conditions
prescribed by the bill, but no national
banks shall be permitted to issue cir
culating notes or any substitute there
| for. After twenty years national bank
| notes remaining outstanding shall be
recalled.
Demand for Bank Reserves.
Within 60 days after the establish
ment of federal reserve bank every
national banking association shall es
| tablish with the federal reserve bank
Of it's district credit balance on the
books of the latter institution equal to
| not less than three per cent. of it's
own total demand liabilities, exclusive
of circulating notes, and at the end of
IA months this amount shall be in
| creased to five per cent
National banking associations clas-
sified as country banks and situated
outside of central reserve and reserve
| cities must maintain a reserve equal
to Is per cent, of the aggregate
amount of their. deposits. National
banks in reserve citieE must maintain
a reserve of 25 per cent. of their out
standing deposits for &c months after
the passage Of the bill and for ~
months thereafter 221a per cent, and
at the end of 3S months permanently
reserve of 20 per cent of their stand
| ing deposits.
Every federal reserve bank must at
| ali times have in it's vaults in gold or
| lawful money sum equal to not less
than SO 1-3 per cent. Of its outstand-
| ing demand liabilities.
Drastic Examination Provided.
Drastic and frequent examination OF
national banking associations are pro-
| vided for.
Any national bank making loan or
| gratuity to an examiner Is subject to
fine of 1000 and the officer or Off
GERS of the bank authorizing it to an
additional fine of $500. Any examiner
accepting the loan or gratuity is fined
$500 and disqualified from office.
No officer or director of a national
bank may be a beneficiary of any
| transaction made on behalf of his
| bank. Should he violate this provi-
sion he will be punished by fine of
not less than $4,000 or by a peniten-
tiary sentence Of three years, or both
Responsibility on Persons.
The stockholders of every national
banking association will be held in
| dividually responsible for all obliga-
| lions Of such association.
| Any national banking association
not situated in a reserve city may
make farm loans, equal to 25 per cent
| of its capital and surplus or so per
cent. of its time deposits.
Any national banking association
capitalized at 100000 or more may.
| through the federal reserve board, es-
tablish branches in foreign countries.
The bill describes itself as "a bill to
provide for the establishment of fed
eral reserve banks for furnishing an
elastic currency, affording means for
rediscounting commercial paper and
| to establish a more effective super
vision of banking in the United States,
and for other purposes"
1t prescribes that the short title of
| the act shall be the federal reserve
act" The second section which re-
lates to federal reserve districts" re-
quires that within go days after pass
age of the bill the secretary of the
| treasury, the attorney general, and the