The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1913-12-06
Provisions of Glass-Owen Bill


The Glass-Owen Bill which aims at currency
regulation and which, after numerous modlllca-
lions, is now before Congress as the most I'M
portant piece of impending legislation, has pro-
visions for giving the nation an elastic currency
and for breaking the Money Power OF Wall
Street.
It's plan is to divide the country into num-
Der of "regions" and to establish in each region
Federal Reserve Bank. Each of these instltu-
lions will have a capital stock of not less than
S5,OOOOOO. This amount will be subscribed by
existing banks up to not more than 10 per cent
of their present capital National banks will be
compelled to become members of the Reserve
Banks while state banks may if they desire.
Under present conditions the surplus credit
of region finds it's way finally to Wall Street
there to pyramid in the hands of spectators
under the new plan it will find it's way to the
Regional Reserve Bank there to stay and remain
constantly available to the region which pro-
duced it. Thus if a Richmond bank happens to
have surplus on hand it is shipped to the Re-
serve Bank of which it is member. That sur
plus is there kept for in this district. Per
contra if a Richmond bank needs funds it can
secure them at the Reserve bank which, in its
turn, if it chances to be short, may fall back on
the Federal Reserve Board at Washington
Regional Reserve Banks will be made depos-
itores of the nations surplus funds and will also
carry the surplus which every bank is obliged to
keep on hand It is therefore estimated that
these institutions will begin business with a
liquid capitalization of $55OOOOOOO.
Another important feature of the proposed
bill is the Federal Reserve Board, the members
of which will be appointed by the President, nine
in number, to serve for eight years. and to be
drawn from widely scattered territories.
This Reserve Board appoints three of the
nine directors of each regional bank and can re-
up to three of the same if conditions de-
mand; it can examine the books and accounts of
any reserve bank, and can compel anyone with
surplus to place its credit at the disposal of any
other which suffers strngency.
Wall Street is fighting this provision be-
cause it removes the nations credit from the
control of the bankers just it fought the
institution of the Interstate Commerce Commits
sion twenty-six years ago when the appoint
ment of that useful and successful body was
branded being everything from Socialism to
thievery. It was felt then that the transporta-
ton facilities of the country were too important
to be left in private control and it is felt that
the nations credit is too important to be left in
the bankers control.
The most striking and revolutionary meas
ure of the new legislation is it's provision for a
kind of currency. At present the govern
ment issues currency notes based Govern
ment bond issue of 24,OOO0O0. This means
that under all conditions and at all times the
country has a rigidly limited currency with
which to carry a very changeable business.
Under the new bill the government would issue
Federally backed up currency on promissory
notes endorsed by the reserve banks This
means a currency that rises and falls with the
ebb and flow of wealth production and the avoid
ance of any other pancs such as that of 1907
when the peaceful progress of business was sud-
denly interrupted by Wall Street gambling