Perrysburg journal. (Perrysburg, Wood Co., O. [Ohio]) 186?-1965, 1913-06-27
DRAFT OF new
CURRENCY BILL
Provides for Fifteen Federal
Reserve Banks.
CAPITAL STOCK FIVE MILLION
Central Control VIII Be Vested In
Board of Observation-Disclosures Be-
comes Effective Sixty Days
After Passage.

washington, ~. v. - Inc uraIu OF
the new currency bill, to be known as
the federal reserve act" which was
completed late Wednesday night at a
conference held at the White House
between President Wilson, Secretary
McAdoo and Chairmen Owen and
| Glass of the senate banking commit
tee and the house banking committee,
respectively was given out last night
Within the next few days this bill
will be introduced in the senate by
Senator Owen and in the house by
Representative Glass.
All previous publications concerning
the contents of the revised currency
bill were based upon tentative drafts,
which were discarded weeks ago, and
the actual contents of the bill were
learned last night for the first time.
Fifteen Federal Reserve Banks.
The revised currency bill provides
for the establishment of Is regional
districts, the associations of national
banks in these districts to be known
as the federal reserve bank. The
minimum capital stock of any reserve
bank cannot be less than S5,000,000.
The central control of the reserve
banks will be vested in board of d.
rectors consisting of three cabinet Of
ficers, three men elected by the re-
serve banks and three men appointed
by the president.
Central Control.
This central control extends even to
the requiring of one reserve associa-
tion to lend money to another.
The new currency to be provided is
limited to $500,000,00O. This is to be
known as federal reserve notes and Is
to be loaned to the reserve banks
whenever deemed necessary. The se-
curity for these notes may be govern
ment or state bonds or approved COM
mercial paper. The rate of interest
is to be established by the central
board.
Gold Reserve Required.
Every federal reserve bank must at
all times have in its own vaults gold
or lawful money, sum equal to 1913
per cent of its outstanding federal re-
serve notes.
National bank depositaries are to
be superseded by the reserve banks.
Headquarters at Washington.
The headquarters of the federal re
serve board will be located in Wash
ington.
Provision is to be made to give au.
thority to what are now known as
country banks to lend money on farm
ing lands.
The introduction to the bill reads
IA bill to provide for the establish
ment of federal reserve banks, for fur
nishing elastic currency, affording a
means of rediscounting commercial
paper and to establish more effect
i've supervision of banking in the
United States and for other pur
poses"
In Effect 60 Days After Passage.
The bill provides that within go
days after passage of this act the Sec
retary of the treasury, the secretary
of agriculture and the comptroller of
the currency, acting as reserve bank
Organization committee shall designate
\ among the reserve cities now author
lied by law number of such cities to
be known as federal reserve cities
and in which federal reserve banks
will be established.
Every national bank within a given
district shall be required to subscribe
to the capital stock of the federal re-
serve bank of that district sum equal
to 20 per cent of it's unimpaired cap
ital.
Board Has Wide Powers.
The reserve board is given wide
powers by the bill. chief of which
are:
The right to establish each week.
or as often as required, the rate of
discount which shall be mandatory
upon each reserve bank and for each
class OF paper, These rates may not
be the same for all federal reserve
banks, the chief object being to ac-
commodate the commerce of the coun-
try and promote stable price level
To suspend for 80 days and renew
for is days. If required, all reserve
requirements specified in the reserve
act
Full Power to Examine Banks.
The power to examine at the discre-
ton of the board the books of all re-
serve banks and to require all nec-
essary reports and statements.
The right to remove officials for
sufficient cause; to require the writ
ing off of doubtful or worthless as
sets upon the books of the reserve
banks and to appoint receivers for the