The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1913-06-25
THE CURRENCY BILL.
Will Be INTRODUCED In HOUSE
NEXT MONDAY
IS OUTLINED BY GLASS

perly Safeguarded, and Machinery
for Doing Foreign Banking Busi'
ness.
The Administration currency bill
was made public by Representative
Glass, chairman of the House COM
mittee on banking and currency. It
will be introduced in the House and
Senate after President Wilson has
delivered in person his address to
Congress on Monday.
An outline of the measure pre-
pared by Mr.. Glass describing 1t as
" a basis for legislative action, ),
states that it will be gone over in de-
tail for alterations, and sets out that
it's purpose Is to accomplish three
principal objects:
Provision of a means for redis-
counting commercial paper Of speci-
fed types.
A basis for elastic notes properly
safeguarded.
Machinery for doing foreign bank
ing business.
The measures essentials remain as
they have been outlined from time to
time since the President began a
study of the. subject with House and
Senate leaders, Secretary McAdoo
and other advisers, provided twelve
or more Federal reserve banks, which
will rediscount paper deal in govern
ment securities, exchange and con-
duct government fiscal operations.
National banks and such State banks
and trust companies as confirm to
standards would be stockholders Of
the reserve banks. The government
ould hold no stock.
The government would control the
Federal reserve banks entirely thru
a Federal reserve board of seven
members in which the banks would
have no representation. The board
would be composed Of the Secretary
Of the Treasury, Secretary Of Agri-
culture, the comptroller Of the cur
rency, as members ex of1cio; four
other members would be chosen by
the President and confirmed by the
Senate.
The national bank note circulation
would remain undisturbed and no
proposal Is made in the bill for re-
tiring approximately s700,o00,000 2
per cent. bonds, upon vhich that note
issue now rests. An amendment or
separate bill to refund these bonds
into 3 per cent. bonds may be intro
duced later.
In addition to the $700,o0o,o00 e1-
listing national bank notes. not more
than s500,0O0,O00 In what are to be
known as Federal reserve treasury
notes might be issued at the discre-
ton of the Federal reserve board
solely for the purpose of making ad-
vances to the Federal reserve banks,
which would do no business with the
public, deal only with their member
banks and receive deposits only from
the United States. While the notes
would on their face, purport to be
the obligations CT the United States,
they would be required to be secured
by gold reserve Of SO 1-s per cent,
provided by the Federal reserve
bank, would be a first and par
amount lien on all the assets Of these
banks and would be redeemable In
gold on demand at The treasury de-
partment at WashIn gton or any Fed
eral reserve bank.
Stringent provisions are made
against counting any Of these notes
as a part Of bank reserves, and the
system is guarded against imitation
by lodging power with the Federal
reserve board to exact an interest
charge upon the treasury notes In
order to secure their prompt redemp-
ton. The notes are not made legal
tender, but would be receivable by
the government and every bank Of
the system at par without exchange.
No change would be made in the
protection of other existing notes.
The Federal reserve board would
require one Federal reserve bank to
rediscount not necessarily uniform
for all reserve banks, but made with
a view to accommodating the COM
merce Of the country and promoting
a stable price level.
For recasting the present bank re-
serve system the bill proposes to
transfer the reserves from national
banks in the present reserve and CEN
trail reserve cities to Federal reserve
banks, carrying the process OF trans-
fer over thirty-eight months to avoid
shock to market conditions. The bill
proposes, according to Mr.. Glass's
statement, ultimately the establish
ment of a reserve system In which
country banks will have Is per cent.
Of reserve (namely, Is per cent. OF
total demand liabilities) such Is per
cent. to be held per cent. In the
banks vaults, per cent. with the
National Reserve Bank and 5 per
cent. either at home or with the re-
serve bank, while reserve and CEN
trail reserve city banks have reserves
OF &c per cent. Of demand liabilities,
Of which 10 per cent. will be at
home, per cent. with the reserve
bank Of the district and 5 per cent.
either at home or with the reserve
bank" the statement says.
e'The presumed effect Of this plan
will be to end the placing of reserves
with central reserve city banks for
use in stock market operations, to
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