Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-23
DIGEST OF CURRENCY
REFORM ACT WILSON
WANTS THIS SESSION

| troller of the Currency as members
ex-ofiicio Four other members are
chosen by the President Of the Unit
| ed States by and with the consent
Of the Senate for a term Of six years
/ each
"One Of the members thus appoint
| ed by the President is to be governor
/ Of the Federal reserve board, one
/ vice governor and one secretary.
Banker Member Of Board.
Their term Of office is for eight
/ years, except that of those first ap-
| pointed, one to the serve two years,
| one four one six and one eight years.
| At least one Of the members appoint
ed by the President Is to be a person
! Of banking experience. Thus it win
/ he noted that the Government will
have absolute control OF the system
The salary of each member of the
board, except the two Cabinet on
GERS, who are ex-OfiiCiO members, Is
fixed at $4,000, the Comptroller of the
Currency to receive $4,000 in add
ton to the salary which he receives
| under existing law.
THE powers of the Federal reserve
| board are as follows.
"ta) To examine at its discretion
the accounts and books of each Fed
eral reserve bank and to require such
statements and reports as It deems
necessary.
"Cb) To require or, on application,
to permit a Federal reserve bank to
redisCount the paper of any other
Federal bank
"(C) To establish each week. or as
much oftener as required a rate of
} discount which shall be mandatory
upon each Federal reserve bank for
, each class Of paper provided that
said rate Of discount need not be
uniform for all Federal reserve banks,
but shall be made with a view to ac-
! COmmOdating the commerce OF the
country and promising a stable price
level
"td) To suspend for a period not
exceeding 80 days land to renew
such suspension for periods not to
exceed fifteen days. any and every
reserve requirement specified in this
act.
Treasury Note Regulation.
"te) To supervise and regulate the
issue Of Treasury notes to Federal
reserve banks.
"(N To add to the number of cities
classified az reserve and central re
serve cities under existing law. I'm
which national banking associations
{ are subject TO the reserve require
e ments set forth. in the act OF to re
classify existing reserve and central
reserve cities and to designate the
banks therein situated by country
banks in its discretion
"(gl To require the removal Of Of
hCials Of Federal reserve banks for
! tncompetenCy dereliction Of duty
! fraud or deceit
"th) To acquire the writing off OF
l doubtful or worthless assets upon tho
books and balance sheets of Fedora
J reserve banks
"O) To suspend the further opera
! ttons Of any Federal reserve bank anl
! appoint a receiver therefor
, "CO To perform the duties. funC-
= tions or services specified or implied
; i'm the act
To Classify Banking.
r The object of the bin is to effect a
z moderate division and classification
Z of banking business along indicated
| lines the net result presumably. be-
- ing summed up as follows:
cd National reserve banks will be
strictly limited to redisCounting aC-
Z tual commercial and Industrial trans.
q actions evidenced by very short tern
p paper and on rare occasions under
carefully prescribed conditions tc
z financial operations protected by col
4 lateral
"t2) National banks will be sub.
2 leCted TO the same restrictions as al
: present with a relaxation In favor a,
q a moderate amount Of real estate
. loans by country banks.
'tSl by revision Of the admins.
o tratiNe figures of the national bank.
{ ing act provision will be made To-
e. close oversight of national institu
3 tiOns
= 90 In order to possess themselve,
OF the kind of paper emitting them q
!. redisCounts national banks viii 1nt
e themselves obliged to keep a reason.
e. able proportion OF their assets in tn,
- paper eligible for rediSCounting
"Subtreasury System Crude"
1T is believed that the present sub.
q. treasury system is unsatisfactory
g clumsy. injurious to business and diff.
- hoult 10 manage in time of stress
The bill therefore, provides for.
q I'D The placing Of all Curren
, | funds of the Treasury in Federal re.
o. serve banks and the payment of GOV.
- eminent creditors by check thereon
e. CD The equalization of the pub.
n lie funds between the different re.
serve banks by direction of the Sec.
q rotary of the Treasury and subject tg
= a rate of interest to be fixed BY the
Is Federal Reserve Board
D go The trust funds Of the Treas.
] urN are TO be held. as at present. In
{ the vaults of the Treasury
D Under the terms Of the bill the
Federal reserve bank. after the pay.
% / men- of all expenses and taxes. is en-
b. / titled to pay an annual cumulative
o. dividend or 3 per cent on paid in cap
ltal to its stock holding members
$ one haL OF the next earnings of the