Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-23
DIGEST OF CURRENCY
REFORM ACT WILSON
WANTS THIS SESSION

b troller Of the Currency as members
ex-officio. Four other members are
chosen by the President of the Unit
ed States by and with the consent
OF the Senate for a term Of six years
each
"One Of the members thus appoint
? ed by the President is to be governor
Of the Federal reserve board. one
vice governor and one secretary,
Banker Member Of Board.
Their term Of office is for eight
years, except that Of those first ap-
pointed, one to the serve two years,
one four, one six and one eight years.
At least one of the members appoint
ed by the President is to be a person
Of banking experience. Thus it will
be noted that the Government will
have absolute control of the system.
The salary Of each member Of the
board, except the two Cabinet off,
GERS who are ex-officio members, is
fixed at $4,000, the Comptroller Of the
Currency TO receive S., 900 in addi-
ton to the salary which he receives
under existing law
The powers Of the Federal reserve
board are as follows;
i "(a) To examine at its discretion
Allt AMOUNTS anu bbDhS OF tdtH r tu-
eral reserve bank and to require such
statements and reports as it deems
| necessary.
"(b) To require or on application,
to permit "A Federal reserve bank to
rediscount the paper OF any other
Federal bank
"(c) To establish each week. or as
much oftener as required, a rate OF
| discount which shall be mandatory
.l,
! each class OF paper provided that
said rate Of discount need not be
uniform for all Federal reserve banks.
but shall be made with a view to ac-
/ Commodating the commerce Of the
country and promising a stable price
level
Id To suspend for a period not
| exceeding 80 days land to renew
such suspension for periods not to
exceed fifteen days. any and every
reserve requirement specified in this
act.
Treasury Note Regulation.
"(e) To supervise and regulate the
issue OF Treasury notes to Federal
reserve banks.
go To add to the number of cities
classified as reserve and central re-
serve cities under existing law In
which national banking associations
are subject to the reserve require
3 ments set forth in the act. or to re-
classify existing reserve and central
reserve cities and to designate the
banks therein situated by country
banks in its discretion
"(g) To require the removal OF Of.
, | ficials Of Federal reserve banks fol
= incompetenCy, dereliction of duty
fraud or deceit
"(h) To acquire the writing off o.
doubtful or worthless assets upon tn,
A., books and balance sheets of Fedora
i reserve banks
% To suspend the further opera.
. tions of any Federal reserve bank an,
appoint a receiver therefor
! 90 To perform the duties. funC
9 tons or services specified or implied
in the act
To Classify Banking.
r The object OF the bill is to effect 4
9 moderate division and classification
Of banking business along indicated
lines the net result presumably. be
70 ing summed up as follows:
cd National reserve banks will b,
strictly limited to rediscounting ac.
! tual commercial and Industrial trans
% actions evidenced by very short tern
r paper and on rare occasions unde
20 carefully prescribed conditions I,
g financial operations protected by col
Il lateral.
"(2) National banks will be sub
L leCted to the same restrictions as a
j present, with a relaxation In favor O.
q a moderate amount OF real estat,
. loans by country banks.
"tS) BY a revision Of the admins
o trative figures of the national bank
I ing act provision will be made 70
e close oversight of national institu
j tons.
20 80 In order to possess themselves
of the kind of paper emitting them t,
|, rediscounts national banks will fin,
9 themselves obliged to keep a reason
o. able proportion of their assets In tn
paper eligible for rediscounting
"Subtreasury System Crude"
1t is believed that the present sub
p treasury system is unsatisfactory
c clumsy injurious to business and DIFF
- ficult to manage in time of stress
The bill, therefore, provides for:
Y I'D The placing Of all Curren
a funds of the Treasury in Federal re
q serve banks and the payment of Gov
70 eminent creditors by check thereon.
g CD The equalization Of the pub
n lie funds between the different re
serve banks by direction of the Sec
e Rotary of the Treasury and subject t,
> rate of interest 10 be fixed by tn,
% Federal Reserve Board
n 't3l The trust funds Of the Treas
1 ury are to be held as at present, II
L the vaults of the Treasury.
o Under the terms Of the bill tn,
| Federal reserve bank after the nav.
p ment of all expenses and taxes. is en-.
r titled to pay an annual cumulative
= dividend of per cent on paid-in cap.
ital to its stock holding members
$ | One-haf of the next earnings of the
I hank he nai9 into ia e,.r,,l,,.