New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-24

President with the advice and consent
of the Senate, with terms OF fourteen
Years but the first board to be CLASSIFIED
and the term OF one director to expire
every two years
The bill should provide that the Pres
ident will select men qualified by expert
ence and training for the proper discharge
Of the duties imposed, and make no ap-
pointments in order TO confer political
awards. At least three Of the members
should be recognized to have had wide
financial and banking experience.
appointments are to be distributed
geographically, so as 10 give due weight
TO the commercial sections Of the coun-
try.
THE President, with the advice and
consent OF the Senate. Will designate one
director as governor and another as dep
utv governor. and the governor, or. IN
his absence. the deputy governor. shall
act as chairman Of the board and be the
chief executive officer Of the bank.
Members OF the board shall automati-
cally retire at the age of seventy.
The Board OF the Federal Reserve
Bank shall appoint for each branch an
executive committee Of seven members.
The bill will contain the same general di-
receive clauses as to their character as
in the case Of the board itself. including
the provision that at least three of the
members OF the executive committee shall
be recognized to have had wide banking
and financial experience. The terms OF Of
fee OF the members OF the executive COM
mittee VIII be seven years. but IN the
case Of the first members appointed they
shall be classified so that one director
shall retire each year on" member Of
the executive committee will be- desig-
mated chairman and one vice-chairman;
and the chairman. or. In his absence. the
yice-chairman, Will act as chairman Of
the committee.
"All actions OF the executive commit
tee will he subject to the approval OF the
board Of the bank Each executive com
mittec will elect president and other
executive officers To conduct the business
OF the branch. the men filling these Of
fees To have no official or financial rela-
ton with any other bank.
The earning OF the bank shall. In case
the government subscribcs 10 all the
stock. be first devoted TO an accumulation
OF a surplus Of 20 per cent. and thereafter
one-half of the earnings will be devoted
70 a further increase Of the surplus until
II reaches 80 per cent. and the other one
half 40 To the government After the
all the
earnings will 20 to the government
"In case the public subscribes TO the
stock. the net earnings will first be de-
voted TO paying a per cent cumulative
dividend then TO an accumulation OF
surplus equal 10 20 per cent Of the capt.
tai. after which half of the earnings
will go to the government and one-half
be devoted to the accumulation OF FUR
Their surplus until the surplus reaches 20
per cent OF the capital. and thereafter all
the earnings beyond the dividend require
ment will go 10 the government
"Au earnings received by the govern
ment will be devoted to the retirement Of
the government debt.
The customers OF the bank shall be the
government and qualified member banks.
which will include all national banks and
may include state banks and trust COM
panies.
THE government shall deposit all Of its
general fund with the bank and consu-
tute the bank its fiscal agent.
The reserve requirement for national
banks will be so changed as gradually TO
transfer all reserves away from CORE
spondent banks now acting as reserve
agents and. after this gradual transfer
has been fully accomplished. all reserves
will be held in the vaults Of the banks
and with the Federal Reserve Bank. The
reserve requirement will be the same for
all member banks and shall be ultimately
IL per cent.
The reserve to be held by the Federal
Reserve Bank shall never be less than 30
per cent OF its demand liabilities, includ-
ing note issue. in gold or lawful money.
The board Of the Federal Reserve Bank
may, In an emergency suspend all reserve
requirements for thirty days, and con-
tinue such suspension for periods Of hf-
teen days.
The Federal Reserve Bank may rcds-
count for member banks paper self-liqui-
dating In character. To be defined by the
act II shall not rediscount for any one
bank an amount exceeding the capital
and surplus OF such bank.
The bank may buy in the domestic
market from member banks, non-member
banks and individuals self-liquidating
paper. under conditions to be defined In
the act, bearing the Endorsement OF a
member bank and may buy In the foreign |
markets prime bankers bills. The bank
may also deal I'm gold coin and bullion !
and In obligations OF the United States |
government and its insular possessions.
THE Board Of the Federal Reserve
Bank shall establish a minimum rate OF
discount. which shall be uniform at all |
branches and sub-branches, and which |
shall be changed from time to time as
conditions demand.
While the minimum discount rate shall |
be the same at all branches and TO all |
banks. that minimum rate will only apply |
TO the rediscounts of bank up to an J
amount equal TO fixed percentage Of its |
capital and surplus; thereafter such bank |
shall be charged uniformly progressively |
increasing rate upon discounts, until said |
discounts shall have amounted to a maxi |
mum Tod hN