The Madisonian. (Richmond, Ky.) 1913-1914, 1913-12-23
CURRENCY BILL Wins
SENATE PASSES cuRREncf
MEASURE BY VOTE OF
54 70 "a.
s REPUBLICANS FAVOR ACT
Contains Provision That Banks Must
Accent Within sixty Days Of rs
Passage-Reserve Districts Eight
to Twelve--Now Goes to House.

washington, Dec. 20.-The new cur
rency bill was passed by the senate
on Friday by a vote of 81 to 81 II
was backed by the solid Democratic
vote and six Republicans
The essential features OF the cur
rency bill as it passed the senate are
as follows:
Secretary of the treasury and two
members of. the federal reserve board
constitute the organization committee.
The committee is to designate not
less than eight nor more than IL re-
serve districts, in each of which fed
eral reserve bank is to be established.
Every national bank is required and
every eligible bank in the United
States and every trust company in the
District of Columbia is authorized to
signify in writing within sixty days
after the passage of the act its ac-
ceptance of its terms.
National banks are required and 9TH
ers are permitted to subscribe to the
capital stock of the reserve banks in
a sum equal to six per cent. of the
sixth to be payable on call, one-sixth
within three months and one-sixth
within six months, the remainder sub
ject to call.
Any national bank failing to signify
its intention to accept the terms OF
this act shall cease to act as reserve
agent upon 80 days notice.
Any national bank failing within
one year to comply with any of the
provisions of the act will forfeit its
| charter and privileges under the ma
| tional bank act.
| If the stock subscription by the
banks is not sufficient in the judg-
ment OF the federal reserve board
to provide proper capital the stock
may be offered to the public. the max
imum subscription being $4,000.
| Minimum capital of reserve banks
is fixed at s3,00O,O00.
! Each reserve bank must establish
reserve branches within its federal re-
serve district at such places as are ap-
| proved by the federal reserve
| board.
There shall be nine directors hold
! ing Office for three years, divided
! into three classes, three to be chosen
by the banks and the representatives
| of the stock-holding banks, three
| chosen by the banks who at the time
/ of their election shall be actively en-
| gagged in their district in commerce,
agriculture or some other Industrial
pursuit, and three designated by the
/ federal reserve board One of the last
named class is to be designated by the
federal board as chairman of the board
of directors of the reserve bank No
director of the last two named classes
can be a director, officer. employe or
stakeholder of any bank.
After all expenses have been met,
stockholders in reserve banks will re-
ceive six per cent. division. which
shall be cumulative. One-half the net
earnings above the expenses and divi-
dend is to be paid into surplus fund
until that fund amounts to 40 per cent.
of the paid in capital
OF the remaining half of the excess
half so per cent. shall be paid to the
United States as a franchise tax and
|
tee for the benefit of depositors in
| failed member banks.
! The federal reserve board shall con-
fsist of seven members, including the
secretary of the treasury as an ex-of-
f1cio member and six members ap-
pointed by the president, to be CON
flrmed by the senate. They are to be
lfselected with due regard to fair rep
resentation of the different geographic.
cal divisions of the country Their
salary is fixed at $4,000 year and
| the terms are six years.
Among the powers vested in the fed
eral reserve board are:
To require reserve banks to discount
the discounted paper of other federal
reserve banks at rates of interest to
be fixed each week or oftener; to sus-
pend for period not exceeding thirty
j days and from time to time renew
suspension for persons not exceeding
fifteen days, any reserve requirement
specified in the act; to authorize
members to use reserves, federal re-
serve notes based on United States
bonds to the extent that the board
may find necessary; to grant to ma
tional banks applying therefor the
right to act as trustee, executor. adj
ministrator or registrar of stocks
and BONDS.
Cardinal MartinelIi Is III.