Bisbee daily review., 1913-12-25


 millions Of cash ean be brought oui inso .,rests,io quiesiy The banks wlu have to pay for t,e.s loan
 however. individuals have to pas for a loan fro,
 any local bank; ihs charge is expected ,o pre,sr
 the tooffee of the reserves hold by inc rer,on, banks
 new form Of paper currency is also provided fo to come out in of emergency and which i to go back into the hands of the government abe times normal These treasury notssv win be nr,o ed by the issued through such regions reserve banks and win lear the guarantee both of in regional bank and the government
 If the demand for currency in any section Of the coup try exceeds the supply of circulating money. reeona bank can secure this money from the eovernmen and put into circulation. but gold reserve of 40 pe cent and commercial paper equal full value of t note must be held as behind each note SD i, sued This provision is 60 be the influence tha will drive the money pack into retirement y,b, it is no longer needed.
 The following analysis presents Inc details of ,h new law without adhering closely to the technical ai vision or language of the measure:
 At the head of the system will stand federal rs serve board at Washington appointed by the president ana to consist of the secretary tho treasury and six Other members Two of these shall be expert bankers but none shall have banking affiliations or own banS stock during their service This board will exercise gen. eral control the entire system.
 The temporary organization committee or the fed eral reserve board m select from eigt to twelve cit ies where regional banks shall be located and will divide the entire country geographically with these cities as the centers of districts All national banks in district will be required subscribe for the stock of the regional bank in that district and to keep portion Of their reserves
 Local banks will be knoan as member banks, he cause they vin own the stock of the regional reserve bank of their district Each member bank will be re quired take capital stock of the regional reserve ban equal to cent of the memDer banks capital and surplus The capital the regional bank will increase pr decrease that always represents per cent of the combined capital and surplus of ali the bank of ths district that have joined the system
 National Banks compelled to join and state banks gre permitted to if they bring their reserve requirements ID to the standard for national banks and sabm O national examinations.
 Public ownership of inc stock cf the regional reserve banks is permitted only in case enough banks do not On in district to provide a capital stock of $8OO0 oO In such event the public may purchase the soc, quantities limited to s1O9OO each individual: but he voting Of the stock will be placed in the hands of government representatives on the board of directors of he regional reserve bank
 The regional reserve banks may do business only with their member banks not with the public. except hat certain "open market operations such as the pur. hase and sale of gold government or municipal bonds nd certain forms of bills of exchange permitted hese banks will make their earnings from the loans lade member banks from the purchase and sale f bonds and ioreign and domestic bills of Iadins
 Member banks vin be compelled to put up in cash ny half of their subscription to capital of the new anks the remainder can be called for ii needed by the egiona bank Dividends of per cent will be paid on bis the member banks and the stock will be on-,axabe After these dividends have paid one alf of the surplus of tue earnings goes to create egiona surplus fund and this has reached 40 CT Of tine regional banks paid in capital these arnings into the United States treasury Tho amainder of the net earnings to be divided be- veen the payment of United States franchise tax nd the creation Of fund guarantee the payment of epositors in member banks that may fail.
 With the machinery thus created for a new banking ysteln that is supplementary to the commercial banks the country the law provides gradual transfer part of the 5ank to these reservoir banks order not 70 disturb business conditions or b with raw too suddenly the heavy deposits country banks tle large cities the provides that tro years may consumed in shifting these Balanoes and that fl nee sssry Of tie transferred ,o the regional angs may eonsiy; Of commercial paper Though Col David Du Bose 5aI-lard cid for sevea ears la5or on the culebra Cut that won from Col oetlais the euiogy of great engneefng unhinching orker and trle aentlenaan o .aaterisl ,,ri f l.