Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-06-20

ALBUQUERQl
ital 70 their stockholdine members.
One-half the net earnings of the
banks must be paid into the surplus
fund until said fund shall amount to
90 per cent Of the paid IN capital Of
the bank. The remaining onc-hah OF
the banks earnings shall be paid To
the United states and whenever and
30 long as the surplus fund of each
federal reserve bank amounts TO 20
per cent Of paid in capital the share
holders having received their per-
missibc dividend Of 8 per cent all ex-
cess earnings shall be paid TO the
United States Every federal reserve
bank IN exempt from federal, state
ana local taxation. except in respect
to taxes upon real estate
The terms of office Of the folnl
members Of the federal reserve beard.
appointed by the president are 10 be
eight years with the provision that
those first appointed will serve two.
four, six and eight years respectively.
The salary of each member, eN-
cepting the cabinet members. will be
$4,000 q year and the comptroller
of the currency would receive $1,000
IN addition to the $1,000 salary ne
now receives.
The chief points In the new feder-
al reserve banks are described as fol-
lows.
THE number is to be twelve, with
possible increase later as provided.
THE ownership is to he In the
hands Of the stoekholding banks of
the twelve districts in which the re-
serve banks are situated The na-
tlonai banks are compelled TO be
members and state banks and trust
companies are permitted to be mcm-
bers
"The capitalization is to be 20 per
cent OF the capital Of the stockhold-
ing banks, onc-half paid in and one
half subject to call.
"The business Of these federal re-
serve banks Is TO be as follows.
sRodlscounting of paper presented
by stockholding banks under specified
conditions. provided such paper
grows out Of actual agricultural com-
mercial or industrial transactions
and does not run more than speci-
fled number of days.
'The buying and selling Of govern
mcnt securities. gold and silver hui
lion and foreign coin, foreign eN-
change. and open market bills Of Civ
en- maturity.
Government fiscal operations
In order TO meet the view so often
expressed IN commercial circles to tho
effect that the prosecution OF Amerl-
can business in foreign countries
would be greatly helped by improved
banking facilities. the bill authorizes
any national banking association
with minimum capital Of $l,000,000
to establish branches in foreign conn-
tries for the furtherance OF foreign
commerce Of the United states ana to
act as fiscal agents Of the United
states abroad The federal reserve
board is required to pass upon all ap-
plieations 81 national banks 90 estab-
lish such banks abroad
The federal resef.e board would be
clothed with such administrative pow
ers as examination. Redistribution
and designation of reserve banks, dis
clpline OF officials of federal reserve
banks aud receiVerships. Certain por-
tions of the existing banking laws
would be repealed. the Aldrich-Nree-
land emergency currency act would
be completely superseded and In
separate bill "A general revision Of the
administrative provisions Of the ma
tlonal bank act is to be provided. fhe
bill would provide that within ninety
days from the date of its passage,
the secretary of the treasury shall
designate the federal reserve districts.
the organization OF the federal reserve
banks shall begin and the "transi-
tion period" during which the re-
serves shall be adjusted to the new
plan must be complete at the end OF
thirty eight months
Administration officials started TO-
dav to smooth out differences among
democrats over the proposal to ac'
on the currency measure during the
present session.
President Wilson asked democratic
members Of the house committee on
banking and currency to meet him al
the White House tomorrow night
Senator owen invited the president
to confer with the democratic mem
bers of his committee at the capitol
next Wednesday and he accepted.
Secretary Bryan was in conference
with Representative Henry of Texas
and Samuel Untermyer, counsel fol
the house money trust investigating
committee Of the last congress
Mr.. Henry advocated renewal ol
( the inquiry. II was reported that al
understanding had been reached
whereby II the Investigation We're re-
sumed it would not conflict with the
consideration Of currency legislation
BANKERS ASSOCIATION
NCus IrNVnIs ARR. T. To HfII