Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1913-06-24

and functions unchanged. In addition
| there is established q system of fedcr-
al reserve banks, which are incorpOr-
ated institutions holding Federal char
ters and in all respects managed like
| national banks. except as to the cleo
tiOn of directors.
Federal Reserve Banks.
There are twelve of these Federal
reserve banks, each managed by a
| board of nine directors, three Of whom
will he expert bankers selected by the
| banks. three will he members select
ed in the same way. but required to
|, represent the commercial, industrial
or agricultural reesrve board in case
they do not fairly represent these in
terests. The remaining three direc-
tors are to be chosen by the Federal
reserve board.
THE object of the bill is to effect n
moderate division and classification of
banking business along indicated lines
the net result presumably being sum-
Illeu up as lOllOWS.
National reserve banks will be
strictly limited to rediScounting actual
commercial and Industrial transac-
tions evidenced by very short term
paper and on rare occasions under
carefully prescribed conditions. to fl
nancial operations protected by col
lateral. They will also he able to en-
gage in foreign exchange operations.
etc.
National banks will be subject 70
precisely the same restrictions as at
present with q relaxation in favor of
a moderate amount of real estate loans
by country banks under carefully
guarded conditions.
Strict Oversight.
by revision of the administra-
tive features of the national banking
act, provision will be made for close
oversight of national institutions with
view to holding them strictly up to
the requirements of a legitimate
banking business.
'In order to possess themselves OF
the kind of paper emitting them to
rediscounts, national banks will find
themselves obliged to keep a reason
able proportion of their assets In the
form of paper eligible for rediscount-
ing.
1T Is believed that the present sub
treasury system Is unsatisfactory,
clumsy, injurious to business and diff
ficult to manage in times of stress.
The bill therefore provides for:
1.-The placing of all current funds OF
the treasury in Federal revenue banks
and the payment of government cred
itors by checks thereon.
THE equalizing of the public FUNDS
between the different reserve banks
by directions Of the secretary OF the
treasury and subject to a rate of In
terest to be fixed by the Federal re-
serve board.
THE trust funds of the treasury are
to be held as at present in the vaults
Of the treasury.
May Pay Dividend.
Under the terms of the bill the
Federal reserve banks, after the pay
m,nt of all expenses and taxes, are
entitled to pay an annual cumulative
dividend of 5 per cent on paid-in cap
ital to its stockholding members. One
half the net earnings of the bank
must be paid into the surplus fund
until said fund shall amount to twen-
ty per cent OF the paid-in capital OF
the banks earnings shall he paid TO
the bank. The remaining one-half OF
the United States, and whenever and
as long as the surplus fund of each
Federal reserve bani: amounts to twen-
ty per cent of the paiC-in capital, the
shareholders having received their per-
missible dividend Of per cent, all eX-
cess earning shall be paid to the Unit
ed States. Every Federal reserve bank
Is eyempt from Federal, state and To-
cal taxation, except in respect 10
taxes upon real estate"