Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1913-08-17
THE CURRENCY BILL
(From The Outlook

y
regions, at first not less than twelve.
In each of these districts or regions
there is to be a Federal reserve bank,
in which the banks of the region that
comply with the conditions of the law
may keep large part of their legal
reserve, thus "mobilizing" or concerl>
trating the reserves of the region in
a simple institution. Provision is
made for the retirement during a per-
iod of twenty years of the prese1,
bond-secured circulation therefor OF
United States treasury notes issued
through the regional reserve banks
and based upon assets.
The present banks are to be given
3 per cent bonds in place of the per
cent bonds, the value of which at sucA
a low rate of interest rests tragedy in
their circulation function. Simple JUS
ike r,lI lis exchange The &C al
amount of national bank notes which
W II thus be retired at the rate os 80
100000 a year is about 500 600, 900.
III addition, provision is made for .he
'nlmediate issue to the banks, as + cod
ed, currency not to exceed s. 'J,c''".-
600 in United States treasury nuirs
based upon assets. This extra Issue
is to be made elastic by permitti -
the Federal reserve board to tax it
Each of the twelve Federal reserve or
regional banks is to have the power
to fix the rate of discount on loans
and commercial paper for its region,
subject to the approval of the Federal
reserve board.
The Federal reserve board is to be
composed of seven members, three OF
whom shall be the Secretary of the
Treasury, the Secretary of Agricul-
ture and the Comptroller of the Cur
rency. The other four members are
to be appointed by the President with
the approval of the Senate.
The division of the country into re :
ions or districts, so that local condi-
tions and local needs can be Wisely
dealt with; the basing of our bank
currency upon assets instead of on
bonds; the fixing of the rate Of dis
count by central boards of bankers
with government power to modify
their decisions; and the embodiment
of the idea of government supervision
Of the whole system, are all steps in
advance of our banking methods.
We hope the bill will be passed.
practically in its present form. After
it has been put in operation it will be
time enough to discover from practi-
cal experience what amendments as
to details and methods of operation
are necessary. On the whole, the
bill, as it now stands, expresses the
best banking wisdom and sentiment Of
Europe, Great Britain and the United
States.
The most serious mistake of the
administration in connection with ii
seems to us to be the prominence Mr..
Bryan has been allowed to assume II
relation to its framing and enactment
Whatever Mr.. Bryans other virtues
are, and he has many he does not
possess the virtue of having the con-
fidence of the country in financial mat
tiers. He has been twice defeated de-
cisivily for the presidency on the is
sue of his own financial theories.
Moreover, the Secretary of State IS
not the Cabinet officer to whom the
financial interests Of the country are
intrusted.
However, the bill is not Mr.. Bryan's
bill. 1t is practically the bill of the
monetary commission, with no real
changes in principle except the desir-
able change Of making the central re,
serve association or Federal reserv.