New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-24

| Federal Reserve BANK sHdll ue N'oi = -
with the duties now imposed upon the
Treasurer of the United States and the
Bureau OF Redemption in the office OF the
Controller of the Currency or the Cnlted
| states in respect TO the custody or poiu''
securing national banknotes and the re-
demptim Of such notes. The per cent
REDEMPTION fund now in the general fund
OF the Treasury shall be transferred TO
the Federal Reserve Bank as speclai
trust fund, and shall be held intact. ana
shall not count as a part OF the reserve
| OF the bank
| 'The Federal Reserve Bank shall be
| authorized to issue its circulating notes
Such notes shall be secured by the segre-
cation OF rediscounted paper. as described
in the act. equal to 100 per cent or such
| notes outstanding. and one-year eXchequer
notes OF the United States government,
hereinafter provided for. and by reserve
In gold equal to 80 per cent The notes
shall have the same qualities as the pres
cnt national banknotes. shall be redeem
able at any branch on demand IN gold
and shall be the obligation OF the bank
/ There shall be no restriction upon the
! issue OF notes by the bank when the. notes
are fully covered by gold coin or bullion.
il being intended that to the extent that
the outstanding notes OF the bank are not
| fully covered by gold they shall be Sc
cured by 100 per cent in rediscounted
| paper or exchequer notes and by reserve
| in gold equal TO 80 per cent.
Gradually, and over such period as the
/ Federal Reserve Board may decide upon,
, the Federal Reserve Bank shall offer 10
purchase per cent bonds Of the United
States deposited to secure circulating
notes Of national banks at par and up 20
an amount equal to one-half OF such bonds
| deposited with the Treasurer of the
United States as security for national
| banknote circulation. II shall pay Tor
| these bonds By assuming the responsible
| ty for the redemption and retirement Of
| the national banknotes secured by them.
Upon acquiring these bonds the Fed
eral Reserve Bank shall receive from the
| government OF the United States in eX-
| change for the per cent bonds an equal
amount OF one-year exchequer notes.
bearing per cent interest. The Federal
Reserve Bank shall give an undertaking
| ~ tue AUlktu SNdN'S NlldN -
will renew such one-year exchsquer notes
at maturity for twenty years.
| These notes will be made to mature at
various periods during "A calendar year.
! So long as these notes are outstanding
| the Federal Reserve Bank shall pay to
| the United States ont OF its earnings. and
| before any dividends are paid upon the
stock. a tax Of liz per cent on an amount
! of circulating notes equal TO the amount
Of exchequer notes outstanding.
The bill should provide for a national
clearing house.
The charter rights Of national banks
should be so enlarged as TO permit banks
to have branches within the city in which
they are located. to establish branches
abroad and to exercise general trust COM
pany functions to be defined I'm the act.
National banks shall have the right to
accept drafts OF a character To be defined
up TO an amount equal to one-half of
their capital
State banks and trust companies may
be admitted TO membership by conform
ing to the same capital. reserve and In
spection requirements that national banks
are obliged To meet in similar localities.
The Federal Reserve Board shall have
power To examine any member bank.
The circulating notes OF the Federal
Reserve Bank shall be first lien on all
the assets OF the bank
THE Federal Reserve Bank shall have
a first, lien upon the assets of member
banks for any Indebtedness due from
them.
AS far as feasible the Federal Re-
serve Bank shall be exempt from the pay
ment OF all federal and state taxes. except
taxes upon real estate. As far as feasible
the stock OF the Federal Reserve Bank
and the dividends thereon shall likewise
be free from all federal and state taxes"