Gunnison news-champion., 1913-07-04
, Our Washington Letter
CURRENCY PROBLEM
Is ATTACKED By THE
PRESIDENT AND CONGRESS

ized The \ .tlanal and State banks
an thai Feglon shall -ub-crlt,c D. the
capital stock If the Reserve baisk 70
the amosnt If 70 per eeHi Of theu
capital These regional Te-esve
banks gre - be cunirolied by a
board ef directors Il nine asenshers.
three 10 be selected By the ''mensl.ar
banks three to represent the agri-
cultural aud industrial interests Of
the region, and three 10 be named
by the Federal reserve board. THIS
Federal reserve board is the real
keystone of the arch. and this Is
where the influence of William J
Bryan appears.
The Federal reserve board consists
Of seven members, the Secretary Of
the Treasury, the SECRETARY Of
Agriculture. the Comptroller ef the
Currency; and four men to be nam
ed by the president The bankers
are clamorins for representation ON
this board, but BRYAN insists that
the people, through their govern
ment, must retain absolute control.
The wisdom # Brysn's position is
apparent when one considers the
power vested in this board Ii 10
clothed with extraordinary discretion
in the matter Of supervising and
directing ell the Federal reserve
banks, and through them every
State and National bank in the
country.
In addition it 10 suthorised to "
sue and 70 lend to the Federal re-
serve banks national currency TO the
amount Of $5OO,OOO,OOO and %
much more ~ may be necessary 10
take the place Of the national bank
notes, which will be gradually re-
turned under the provisions of this
bill.
With the people in control Of the
Federal reserve board, they will be
masters Of the bsnAing sissssioa.
and thst 10 ~ it shssld be, for the
men Who control the money of .
country msst Of necessity be in q
position to control the governmental
policies Of that country. The region
sl reserve banks are permitted 10
pay dividends to the amount of 5
pct. per annnm. The earnings in
excess OF the sum required for this
purpose ere divided between the
ssrplus fund Of the bank and the
national government After the sur
plss fsnd equals 20 per cent of the
capital of the reserve bank, all the
excess earnings 60 to Uncle Sam.
DIsooURAGING GAMBLING
Ample provision is made TO pre-
vent the concentration of money in
the large financial centers, where it
is used for speculative purposes
On the other hand, every facility is
offered to enable the business man
and farmer to secure the accommo-
dstions needed to meet the demands
of his business or to move his crops
Secretary of the Treasury, McAdoo
gave a striking illustration the other
day of how the bill will work.
Certain interests sought to in
huence the course of tariff legisla-
tion by creating tight" money
market Word went out from Wall
Street that the usual accommodations
could not be granted. Prices began
to fall on the Stock Exchanges and
the country was confronting a most
serious situation.
"We will teach this schoolmaster.
Wilson, lesson said the big
fnanciers.
The situation and the manner in
which it was met are most graphical
ly described as follows by W. @.
Nicholas, one of the foremost writer's
on financial subjects connected with
the eastern press:
the banks had plenty Of money