Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1913-10-14

high in New York will be returned an,
kept in the Federal reserve hank II
the section from whence it came.
In order to have citadel OF fin incial
strength to be used for their own pro
lection. every national bank located
within a given district shall be required
to subscribe to the capital stock of its
Federal reserve bank, so that no Fed
eral reserve bank can commence busi-
ness with less than s5, 900. 600. Federal
reserve banks may establish branches
within their districts so that means of
closer intercourse and business COM
munication can be established between
the member bank and the head of the
family. so to speak. The Federal re-
serve bank is the family head of the
banking system of its region. 1t is to
be controlled by nine directors, six Of
whom are to be elected by the member
hanks, and three of these six shall be
fairly representative of the agr:cul-
tural, commercial, and Industrial in
terests Of their respective districts. and
three to be appointed by the Federal
reserve board, and the chairman of the
Federal reserve board is TO be known
as the Federal reserve agent. In this
way the control of every Federal re-
serve bank is left with the stock hold
Ing banks.
Unpon their paid-up capital stock
the member banks are to receive an
nual dividends of per cent, and after
surplus fund of 20 per cent has been
provided 60 per cent of the earnings
are to be paid to the United States
and 40 per cent to the banks.
Upon conditions similar to those
governing the admission of national
banking associations. State banks and
trust companies may become members
and stockholders in the Federal reserve
bank, but in becoming members of the
Federal reserve bank they lose none of
the special privileges enjoyed by them
as State institutions.
The Federal reserve board has super
vision and control of Federal reserve
banks. and in times of emergency per.
NIT or require one Federal reseive
bank to rediscount prime paper of
another Federal reserve bank in this
way relieving any local stringency in
the money market that may occur in
widely separated sections of this coun-
try. They also supervise and regulate
the issue and retirement of FEEDER al
reserve notes and prescribe the form
and tenure of said notes An advisory |
council, consisting of one representa-
tive from each Federal reserve bank,
is provided, so that the Federal reserve
board may be advised as to existing |
financial conditions throughout the diff
ferent sections of the entire United
States.
Upon the Endorsement OF any member |
hank the Federal reserve bank of the
district may discount notes and bills of
exchange growing out of commercial
transactions. thereby encouraging and
providing for the discount of
notes and bills drawn for agricultural,
commercial. or industrial purposes, and
the rediscount of notes or
bills issued or drawn for the purpose of
stock gamblings also providing for the
rediscount of paper secured by staple |
agricultural products or other goods,
wares, and merchandise. The purpos e
of this being to take care of and pro-
vide for goods stored in warehouses or
in process of either importation or
exploration. In addition to discounting /
paper for member banks, every Federal
reserve bank has power, under the |
restrictions and limitations of this bill,
to do certain general banking business.
The purpose of this is to enable it to
earn its dividends and provide for fixed |
charges
fund of the Treasury of the United
States are to be withdrawn from the
favored cities and divided as equally as
possible among the II Federal reserve
banks, and in this way mere than in
any other the power of Wall Street
will be broken down.
The Federal reserve board shall, at |
its discretion. issue Federal reserve
notes. which shall be the obligations /
of the United States and be redeemahIe
in gold or lawful money on demand at
the Treasury Department of the United
States. in Washington. Any Federal
reserve bank. by depositing collateral
security az provided for in this bill,
may make application at all times to
the Federal reserve board for and re-
ceive money in the shape of Federal
reserve notes and pay out and disburse
the same. In this way money can
always be had to relieve money
stringency or avert panic.
A wise and long-reeded change Il
made in the national banking laws.
whereby national banks are permitted
to loan on farm lands, thereby reliev-
ing the farmer Of the necessity of
being driven to State banks or private
individuals for such accommodation.
(Cof cluded on Fourth Page
TLi1