Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-06-23
DIGEST OF CURRENCY
REFORM ACT WILSON
WANTS THIS SESSION

tro1ler Of the Currency as members
/ ex-ofiicio. Four other members are
chosen by the President Of the Unit
ed States by and with the consent
Of the Senate for a 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 the 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 person
Of banking experience. Thus it will
| be noted that the Government will
| have absolute control of the system
| THE salary of each member of the
| board, except the two Cabinet Off
| GERS, who are ex-oficio members is
| fixed at $4,000, the Comptroller of the
! Currency 20 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
/ lllt ACCOUNTS ana DOCKS OF cdtn L Ed
eral reserve bank and to require such
statements and reports as it deems
necessary.
"Cb) To require or, on application,
to permit a Federal reserve bank to
rediscount the paper Of any other
Federal bank.
"Cc) To establish each week, or as
much oftener as required, a rate of
discount which shall be mandatory
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.
20 To add to the number of cities
classified as reserve and central re-
serve cities under existing law. in
which national banking associations
are subject TO the reserve require
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
hcials of Federal reserve banks for
! ineompetency, dereliction Of duty,
fraud or deceit
"(h) To acquire the writing off of
doubtful or worthless assets upon the
books and balance sheets Of Federal
reserve banks
'GD To suspend the further opera o.
, uons of any Federal reserve bank and
appoint "A receiver therefor.
cd To perform the duties. funC-
lions or services specified or implied
, in the act.
To Classify Banking.
The object of the bin is to effect a
moderate division and classification
Of banking business along indicated
lines, the net result, presumably. be
b ing summed up as follows.
cd National reserve banks will be
strictly limited to rediscounting ac-
I tual commercial and Industrial trans
actions evidenced by very short term
r paper and on rare occasions under
carefully prescribed conditions to
lateral.
"t2) National banks will he sub
I 1ected TO the same restrictions as at
! present. with a relaxation in favor Of
/ a moderate amount Of real estate
loans by country banks.
"t3) BY q revision Of the admins
, tratiye figures of the national bank
t ing act provision will be made for
close oversight of national institu-
J tons
90 In order to possess themselves
of the kind of paper emitting them to
, redlscounts national banks viii find
? themselves obliged to keep a reason
e. able proportion of their assets in the
d paper eligible for rediscountlng
"Subtreasury System Crude"
1t is believed that the present sub
treasury system is unsatisfactory.
, clumsy. injurious to business and diff
ticult 10 manage in time Of stress.
The bill, therefore. provides for.
cd The placing Of all current
, funds of the Treasury in Federal re
! serve banks and the payment of Gov
eminent creditors by check thereon
, 20 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
> rate of interest To he fixed by the
3 Federal Reserve Board.
! "lS) 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 pay
ment of all expenses and taxes. is en-
titled to pay an annual cumulative
dividend of 8 per cent on paid-iu cap
ital TO its stoCk-bolding members.
5 one half of the next earnings of the
bank must he paid into the surplus