Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-24
DIGEST OF CURRENCY
REFORM ACT WILSON
WANTS THIS SESSION

| troller Of the Currency as members
ex-officio. Four other members are
! chosen by the President Of the Unit
ed States by and with the consent
Of the Senate for 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 tho 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 IL will
4 be 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-officio members, is
| fixed at $4,000, the Comptroller of the
Currency to receive $4,000 in addi-
ton TO the salary which he receives
under existing law.
The powers Of the Federal reserve
board are as follows:
"(a) 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.
"(b) 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 hank 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-
! commodatlng the commerce of the
| country and promising a stable price
| level
I'D 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.
"(e) To supervise and regulate the
issue of Treasury notes to Federal
reserve banks.
! go To add to the number of cities
| classified as reserve and central re-
serve cities under existing law. in
| which national banking associations
/
ments set forth in the act. or to re-
classify existing reserve and central
reserve cities and to designate the
| banks therein situated by country
banks in its discretion.
| "(g) To require the removal OF Of
ficials OF Federal reserve banks for
! incompetency, dereliction of duty,
fraud or deceit.
"(h) To acquire the writing off of
l fr1 d
books and balance sheets Of Federal
reserve banks.
I'd To suspend the further opera
tons of any Federal reserve bank and
| appoint a receiver therefor
I'D To perform the duties, func-
tons or services specified or implied
in the act.
To Classify Banking.
The object of the bill is to effect
moderate division and classification
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-
tual commercial and industrial trans
! actions evidenced by very short term
paper and on rare occasions under
carefully prescribed conditions to
financial operations protected by col
lateral
"(2) National banks will be sub
| jected to the same restrictions as at
present with a relaxation in favor of
a moderate amount of real estate
loans by country banks
'(3) By revision Of the admins
trative figures Of the national bank
! ing act provision will be made for
close oversight of national institu-
tions
90 In order to possess themselves
OF the kind of paper emitting them to
rediseounts national banks will find
| themselves obliged to keep a reason
able proportion Of their assets in the
paper eligible for rediscounting.
"Subtreasury System Crude"
1t is believed that the present sub
! treasury system is unsatisfactory,
! clumsy, injurious to business and diff
t1cult to manage in time Of stress.
The bin, therefore, provides for:
| I'D The placing of all current
| funds of the Treasury in Federal re-
| serve banks and the payment of Gov
eminent creditors by check thereon.
| 90 The equalization of the pub
| lie funds between the different re-
serve banks by direction of the Sec
| rotary of the Treasury and subject to
a rate of interest to be fixed by the
| Federal Reserve Board.
"(3) The trust funds of the Treas
ury are TO be held. as at present, in
the vaults of the Treasury.
Under the terms of the bill the
| Federal reserve bank. after the pav-
ment of an expenses and taxes. is en-
titled TO pay an annual cumulative
| dividend of per cent on paid-in cap
| ital to its stock holding members.
| One-half of the next earnings of the
bank must be paid into the surplus
fund until said fund shall amount to
20 per cent Of the paid-in capital of
the bank The remaining one-half of