The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-07-07
AGAINST The BILL.
.cont,nued from Page One,

define the character of the paper thus
eligible for discount, within the mean
ing of this act; but such definition shall
not include notes or bills issued or
drawn for the purpose of carrying OF
trading in stocks, bonds or other in
vestment securities, except notes or
bills having a maturity of not exceed
ing four months and secured by United
States bonds or bonds issued by any
state, county, or municipality of the
United States. Notes and bills admit
ted to discount under the terms of this
paragraph must have a maturity or not
more than As days. except in the case
of farm mortgages"
ANY federal reserve bank may, up
on vote of it's directors, make applica-
ton to the federal reserve board,
the local federal reserve agent, for
hereinbefore provided for as it may
deem best. Such application shall be
accompanied with a tender to the local
federal reserve agent of collateral Sc
curity to protect the notes for which
application is made, equal in amount to |
the sum of the notes thus applied for. |
The collateral security thus offered
shall be notes. bills, and farm mort |
cages accepted for rediscount under the |
provisions of sections 13, Ia, and Is Of
this act, and the federal reserve board |
shall be authorized at any time to call
upon federal reserve bank for addi- |
tional deposits of security.
THAT any national banking associa-
ton not situated in a reserve city or
central reserve city may make loans
secured by improved and unencumber-
ed farm lands, and so much of section
5137 of the revised statutes as prohi-
bits the making of such loans by banks
SO situated shall be, and the same is
hereby repealed; but no such loan shall
be made for a longer time than five
mt INK
per cent of the actual value of the
offered as security, and such
shall be situated within the
federal reserve district in which the
bank is located. Any such bank may
make such loans in an aggregate sum
equal to 25 per cent of it's capital and
surplus or so per cent of its time de-
positS.''
Security Is Good.
"A farm loan conservatively made
Is as good a security as can be had,
declared Senator Bristow in offering
his amendments to the senate. THE
farm is the very basis of our national
We are now having
learned discussions in regard to yari-
ous systems of farm credit, the pur-
pose being in some way to reduce the
burden of interest which the farming
bearing. To make farm mortgages
he basis for circulation would GER
.ainly reduce the rate of interest for
such security.
United States bonds bearing 2 per
cent, with circulation privileges, have
been selling at a premium for many
Jears They sell as readily as 3 per
cent bonds without the circulating
privilege.
1T is proposed in this bill to make
provision by which the banks may
lypothecate short-time paper of BUSH
less men as a basis for additional
The success of nine-tenths
If the business men whose notes are
hus hypothecated depends upon the
of the American farm.
Unless the farmer succeeds and the
and yields its harvest the notes of
hese business men are worthless
Yet men tell us that the mortgage on
he farm itself, the very foundation
f our entire business structure, is not
/, desirable security as a basis for cir
ulation. Such an argument, in my
pinion. is unsound.
81 am against the bill as 1t Is
rawn. It is a strained effort to sat /
sly the so-called money trust and
he financial inflationists. 1t is a
of the conservative with |
ne radical theories in such a manner
s to contain the Objectionable fea-
1res of both systems. r
81 expect to offer many other
to the bill, but the dis
ussion of other features I shall take
p when it Is more properly before
ne senate"
Three Drownings n