Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-23


sentative Carter Glass, chairman OF
the House Committee on Banking
and Currency, has made pucic a
digest Of the Administrations cur
rency reform bill which he intro
duced in the House to-day BY the
terms Of this measure the Federal
Reserve Board, which win control the
Issuance OF new currency on appn-
cation of the regional reserve banks.
ls to be a Government board en-
tirely.
There will be no retirement of ex-
listing national bank circulation. nor
Of the existing 2 per cent United
States bonds used for circulation pur-
poses. Every national bank IS al
lowed to continue It's note issue eX-
actly as at present
Following is the digest prepared by
Representative Glass.
The purpose Of the bill is 10 fur
nish comparative revision Of the
currency system Of the country so as
10 obtain three principal objects.
"First-Provisiou OF a means for
redisCounting commercial paper OF
specified types
Second Provision Of a basis for
elastic Lote issues properly safe
guarded.
Third Provision Of machinery for
doing foreign banking business
present Law Inadequate"
Tn order to accomplish these pur-
poses fully II is necessary TO repeal
certain portions OF existing law, TO
Tectify various conditions in the pres
ent national banking system which
are in some cases only indirectly CON
nected with the objects sought; to
furnish a new class Of instructions for
the performance OF some functions
which can not well he intrusted to eX-
listing banks, or, at all events, can
better be performed by others and to
alter the present reserve system TO a
very material degree.
The scope Of the bill can best he
understood by an analytical review
Of its contents
The present banking situation OF
the United states rests on the nation
al bank act proper. as slightly modi-
fed from time to time. and on the So
called Northumberland act (aCt OF
May 30, l90S).
"Of these acts the latter Is com
pletely superseded on the ground that
probably will not become operative
except under extreme distress, and
never was satisfactory The nation
al bank act Itself is modified In nu-
merOus essential particulars
Now Glass of Banks.
fundamental TO the idea Of the bill
is the creation Of a new class OF
banks to be known as Federal re-
serve banks, the chief points about
which are as follows:
The number is to be twelve. with
possible increase later as provided.
The ownership is to be in the
hands of the stockholdinE banks Of
the twelve districts in which the re-
serve banks are situated National
banks are compelled to be members
and state banks and trust companies
are permitted 10 be members
THE capitalization is to be 20 per
cent of the capital Of the stoCkholdinC
banks one-half paid in and one-half
subject 70 call
The business Of these Federal re-
serve banks is To he as follows.
Reserve Banks Business.
'RedisCountinE of paper presented
by stockholding banks under speci-
fled conditions, provided such paper
grows out of actual agricultural. COM
merClal or industrial transactions ans
does not run more than specified
number Of DAYS
Buying and selling Government
| securities. gold and silver bullion ami
! foreign coin. foreign exchange and
open market bills of given maturity,
Government fiscal operations
Every national bank is allowed to
| continue its note issue exactly as at
/ uTpSput and i'm addition Federal -,a-