The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1913-09-02
TUESDAY. SEPTEMBER .. 1918
Main Features Of the
Proposed Currency Act.

The average man knows that a new
currency bill Is before congress and he
perhaps has hazy idea Of what 1t
provides. but few people probably are
familiar even with the main provisions
Of the measure. Chairman Glass of
the committee ON banking and cur
rsmcy IN the house summed UP the
BIN the other day as follows:
The bill establishes twelve regional
reserve banks with a capital of not
less than $4,000. 900 each. to which ma
tional banks are required to contribute
an amount equal to 10 per cent of their
capital stock and to become liable for
IN additional 10 per cent in case OF
call. This, 1t IL estimated, will give
the regional reserve banks combined
paid-up capital of $105,000,000. These
regional reserve banks also are made
custodians OF a large part Of the re-
serve money OF member banks. esti-
mated at about s410,00O,O0O in the ag-
gresafe- They also receive the gov
eminent deposits. estimated at from
$50. 000. 900 to $3.50, 100000.
"Over the whole system of regional
reserve banks is 10 be federal re-
serve board, consisting CT seven MEM
bers. This board is given extensive
powers Of supervision. examination and
control.
.-The measure provides an advisory
council OF bankers without actual pow
er composed of one member from each
OF the twelve regional reserve dis
tricts.
"one important provision is for the
gradual refunding, for a period of
twenty years, Of the United States
per cent bonds into per cent govern
ment bonds without the circulation
privilege. This will mean the eventual
retirement OF national bank notes. The
circulation privilege will thus revert
60 the government itself, issuing
through the regional reserve banks on
. good reserve of SO 1-3 per cent. to
be provided by the banks.
THE notable reserve features Of the
bill contemplate a reduction of the re-
serve requirements of reserve and CEN
tral reserve cities from Is to- Is per
cent and of all country banks from Is
to ~ per cent The federal reserve
board is required to establish gradu-
ated tax on the amounts by which
banks may be permitted to fall below
reserve requirements, such tax to be
uniform in it's application to all banks.
National banks are compelled to be-
come members OF the system under
penalty of forfeiture of charters, while
state banks are permitted to become
members under regulations Of the fed
era1 reserve board.
Concerning the provisions relating
60 rediscounts over which there was
such . prolonged fight. and as a sub
stitute for which Representative Hen
ny and others offered amendments
comprising eighteen printed pages, the
only change made was 20 add two and
one quarter typewriter lines, declar
Ing that nothing contained in the bill
should be construed TO prohibit the re-
discounting OF notes and bills of ex-
change secured by agricultural prod
ucts and ether goods, wares and mer
chandises:
This is brief constitutes the main
features of the bill
When the convention of bankers
objected to the bill in three main par
ticulars: Cd They wanted the banks,
and not the government. to control
the reserve banks; CD they wanted
1nO udInSs Gnu not OHC
to issue the circulating notes; and CD
they wanted reduction in the reserve
per coinage which the banks will be
required to maintain. There were
other objections. but as we recall them
these were the main oness
The bankers naturally view the pro-
posed system from the standpoint of
direct personal interest and, while their
views are entitled to consideration. 1t
should not be forgotten that those
views are the result of personal in
terest motives.
The bill as proposed by Chairman
Glass Is designed to meet the require
ments OF the counts at large in
stead OF to serve the interests of the
bankers in particular and It should be
passed without delay The banking