Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1913-11-20


The bill provides for an entirely diff
ferent issue OF circulating notes. They
are to be secured by an equal amount
of the discounted paper Of a federal
reserve bank and 33 1-3 per cent In
gold or lawful money, and payable or
demand at the treasury or at any fed
eral reserve bank Said bank shall pay
not less than one-half OF one per cent
interest on the amount Of circulating
notes issued by 1t. The amount OF said
federal reserve notes. SO issued shall
be first lien on all the assets OF such
bank.
Sec. 10. That upon application the
secretary of the treasury shall OK.
change the two per centum bonds OF
the United States bearing the circula'
ton privilege deposited by any ma.
tional banking association with the
treasurer OF the United States as
security for circulating notes for three
per centum bonds OF the United
States without the circulation privi-
lege, payable after twenty years from
date ofissue at the rate OF per cent per
year. At the expiration Of twenty years
every holder of United States two per
centum bonds then outstanding shall
receive payment at par and accrued
interest. Meanwhile every national
bank may continue to apply for and
receive circulating notes from the
comptroller Of the currency based
upon the deposit Of two per centum
bonds or Of any other bonds bearing
the circulation privilege; but no ma.
tional bank shall be permitted to- is
sue other circulating notes except Sc,
cured as In this section provided or to
issue or to make use OF any substitute
for such circulating notes In the form
of clearing-h house loan certificates,
cashiers checks, or other obligation.
The bill provides that national
banks shall hold reserves as follows:
Country. banks, IL per cents per
cent actual money in value and for IA
months at least 3-12 and thereafter
SIP shall consist of credit balance
with the federal reserve bank. The
remainder of the IL per cent reserve
may for a period of SO months consist
OF balance due from reserve agents
as now. After 36 months the entire
reserve must be in vault or with fed
eral reserve bank.
Sixty Days Reserve 20 Per Gent.
In a reserve or central reserve city
bank the reserve for 60 days shall be
20 per cent and permanently there
after IS per cent? in actual cash.
After so days and for period OF one
year at least 3-18 and permanently
thereafter at least 5-1S shall be de-
posted with central reserve bank.
Balance in case Of reserve city bank
may for SO months be deposited with
present central reserve bank.
Sec. %. That every federal re
serve bank shall at all times have on
hand in its own vaults, in gold or law
full money, a sum equal to not less
than thirty-three and one-third per
centum Of It's outstanding demand
liabilities.
Every national bank shall be ex-
amined then as now, twice each year
and in reserve cities four times year
and at least once each year the fed
eral reserve banks shall be examined.
Loans may be made on farm land by
q national bank aggregating in total
not over n of its capital and surplus
and for not longer than one year.
Z Any national bank may set aside q
sum equal. to 70 per cent OF the capt.
tai and surplus of the bank. and not
less than $4,000, for savings de-
partment, and carry reserve OF 5
per cent against said deposits.
The savings department OF each
such national bank shall be authorized
to accumulate and loan the funds OF
It's depositors, to receive deposits of
current funds, to purchase securities
by the federal reserve
board. to loan any funds in its poses
SION upon real estate or other author
lied security, and to collect the same
with interest, and to declare and pay
dividends or interest upon It's deposits.
The federal reserve board Is hereby
to exempt the savings de-
partments of national banking associa-
tons from any and every restriction
mon classes or kinds of business laid
down in the national banking act %.
That any national banking association
possessing a capital of $1,O00,000 or
more may establish branches in for
eign countries. Nothing in this act
shall be construed to repeal the parity
provision or provisions contained In
an act approved March IA, 1900, en-
titled can Act to define and fix the
standard Of value, to maintain the
parity Of all forms of money issued
or coined by the United States, to re-
fund the public debt, and for other
purposes"
confers Greatest Power Ever Given.
That Is the bill in brief and with
the important facts Of the act pres
sented in the exact words as passed
by the house of representatives.
FIRST Of all it confers on the federal
reserve board OF seven members, the
greatest powers probably ever given a
body of men in the history Of the re-
public. They are an absolute oligarchy
In charge Of the nations finances and
business life. The board is RESPONSE
BILE to nobody but the president. who
can make and remake 1t at will. 1t
can suspend banks and bank officers,
compel one bank to redfscount the
paper Of another, suspend all reserve
requirements at pleasure, and issue
and retire, without any check from
the outside, credit notes which are de-
clared upon their face to be obliga-
tions of the United States government.