The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1913-06-25
those first appointed will serve two.


four, six and eight years, respectively.
Thus it will be noted" says Mr..
Glass statement, the government will
have absolute control Of the system.
The salary of each member, ex-
cepting the cabinet members. will be
$4,000 a year and the comptroller of
the currency will receive $4,000 in ad-
dition to the $4,000 salary he now re.
ceives.
The chief points in the new federal
reserve bank are described as fol-
lows:
The number is to be IL, with pos
slble increase later as provided.
The ownership is to be in the
hands of the stockholding banks OF
the II districts in which the reserve
banks are situated.
THE national banks are compelled
to be members and State banks and
trust companies are permitted TO be
members.
THE capitalization is to be 20 per
cent of the capital of the stockhold-
ing banks, one-half paid in and one
half subject to call.
The business of those federal re-
serve banks is to be as follows:
'Rediscouting of paper presented
by stockholding banks, under specific
conditions, provided such paper grows
out of actual agricultural, commercial
or industrial transactions. and does
not run more than a specified number
of days.
Buying and selling government se-
curities, gold and silver bullion and
foreign coin, foreign exchange. and
open market bills of given maturity.
I'm order to meet the views so often
expressed in commercial circles to the
effect that the preservation Of Amer
lcan business in foreign countries
would be greatly helped by improving
banking facilities" Mr.. Glass state
ment continued, "the bill authorizes
any national banking association with
a minimum capital of 81 900, 600 to es,
tablish branches in foreign countries,
for the furtherance of foreign COM
merce of the United States, and to.
act as fiscal agents Of the United :
States abroad" a.,
The federal reserve board is re-,
quired to pass upon all such applica-
tions.
The federal reserve board would
be clothed with such administrative
powers as examination, reclassifiea-
ton and designation of reserve banks, #,
discipline of officials of federal re-
serve banks and receiverships. Ger
tain portions of the existing banking
laws would be repealed, the Aldrich-
Vreeland emergency currency act
would be completely superseded. sud
in a separate bill general rey.slau
of the administrative provisiors or
the national bank act is to be PR q
ed. The bill would provide that
within 80 days from the date of its
passage the secretary of the treasury
shall designate the federal reserve
districts, the organization of the fed
eral reserve banks shall begin and
the transition period" during which
the reserves shall be adjusted to the
new plan must be complete at the
end of SO months
administration officials started .o-
day to smooth out the differeI era
among Democrats over the propossl
to act on the currency measure dur
Ing the present session. President
Wilson asked Democratic members of
the committee of banking and cur
rency to meet him at the White
House tomorrow night. Senator
Owen invited the president TO confer
with the Democratic members of his
committee at the capitol next We'd
nesday and he accepted.
Secretary Bryan was in conference
with Representative Henry of Texas
and Samuel Untermeyer, counsel for
the house money trust investigating
committee Of the last congress. Mr..
Henry had advocated renewal of
the inquiry. 1t was reported that an
understanding had been reached
whereby if the investigation were re-
sumed it would not conflict with the
consideration of currency legislation.