Manchester Democrat. [volume] (Manchester, Iowa) 1875-1930, 1913-06-25
CONGRESS Gets
CURRENCY R R ] y BILL / ! !.
Wide Reform Is Provided For in
New Measure.
RIGID RULES FOR BANKS

RIGID RULES FOR BANKS
Details Of the Proposed Law Which
Has the Endorsement Of President 4
Z WiIson-FederaI Board to
Have Control. n
Washington, June 20.-The Owens
Glass McAdoo banking and currency
bill was introduced in both houses Of
congress today. {. 3
This bill, which has the approval OF
President Wilson, may be modified In
some particulars during its considera.
ton by congress, but in most of its
features it will be the law of, the land,
In all probability, before the} adjourn
ment Of the present session Of con-
sgress. .tJss
Ut Summary Of Provisions.
Summarized, the bill is as follows:
The secretary OF the treasury, the
attorney general, and the controller OF
the currency are formed into an or
3ganization committee for the purpose
Of dividing. the United States into not
less than IL districts, each district to
contain q federal reserve city.
In each federal reserve city the or.
ganization committee will organize Z
federal reserve bank.
Every national bank within q re
serve district must subscribe 20 per
cent. OF its unimpaired capital to the
capital stock Of the federal reserve
bank Of that. district, the capital stock
to be not less than 5000, 900. 3Ss
\ Limit on Branch Houses.
Each federal reserve bank may es
stablish branch omces, the number Of
which must not exceed one for each
$500. 900 OF the capital stock OF such
federal reserve bank.
Every federal reserve bank shxal be
Incorporated and shall have success
sion for a period Of 80 years from 1T
Organization. .fE44 s3 4
Every federal reserve bank shall be
controlled by . board OF nine direc
tors holding once for three years
three of whom shall be chosen by the
stockholding banks. three represent
ing the general public interests OF the
reserve district, and three designated
by the federal reserve board. Share
holders in q federal reserve bank shall
be entitled to an annual dividend OF {
per cent. on the paid up capital.
Raising Of Surplus Fund.
S5 One-half Of the net earnings shall
be paid into the surplus fund until
that fund amounts to 20 per cent. Of
the banks capital, and the remaining
half shall be paid to the United States
When the surplus fund amounts to
20 per cent, Of the capital and the
shareholders have received their five
per cent. dividends. all excess earn.
5ings shall be paid to the United
States. S V. ~
;E Any state bank, banking associa'
ton, or trust company may subscribe
+ to the stock Of d federal reserve bank
"A federal reserve board is created
consisting OF nine members, the secre
I tary OF the treasury, the secretary o.
agriculture, and the comptroller OF the
currency, three members chosen by
the president Of the United States and
by and with the advice and consent OF
the senate, for q term OF six years,
one Of whom is to be the governor, an.
other the vice-governor,s and the third
the secretary; and three members
chosen by the electors OF the federal
reserve banks.
Powers of Federal Board.
The federal board as empow'
cred: ,:i8t5y2 s!3, 4
To examine accounts and books OF
federal reserve banks.
& 4 To require or permit a federal re
serve bank to rediscount the paper OF
any Of the federal reserve banks.
To establish each week or oftener 9
rate OF discount which shall be mand
atory upon each federal reserve bank
for each class Of paper. hi
To supervise and regulate the is
sue OF treasury notes to federal re
serve banks. 7. n {. h Il .s3
To require the removal Of federal
reserve bank OH cials for incompe
tency, dereliction Of duty, fraud
or deceit. AZ II
TO require the writing on Of doubt.
full or worthless assets upon the
books and balance sheets Of federal
reserve banks. as5 55jt :5 ~
To suspend the further operations
of any federal reserve bank and ap-
point receiver therefor.
Limit Of Banks Business.
"A federal reserve bank may re
ceive from any of its stockholders de.
posts of current funds, national bank
notes, federal reserve notes or checks
and drafts upon solvent banks.
Upon the endorsement Of any mem
Der bank it may discount notes and
bills of exchange arising out OF COM
mercial transactions.
Such notes or bills, however, shall
not be discounted for specializing pur-
poses.
Various restrictions are imposed in
reference to the extent OF. the loaning
power Of federal reserve bank
The federal reserve board may an
thorize the reserve bank Of district
to discount the direct obligations OF
member banks.
Certain open market operations are
permitted to reserve banks.
S Fiscal Agents Of Government.
All moneys now held in the general
fund of the treasury will be deposited
in federal reserve banks, which shall
act as fiscal agents of the government.
All revenues of the government shall
Teaching the Child by Pictures.
One of the quickest ways in which
to put an idea or story into child's
mind is by means of pictures, and