The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1913-06-27
CONGRESS Gets
CURRENCY BILL
Wide Reform Is Provided For In
New Measure.
RIGID RULES FOR BANKS
Details of the Proposed Law Which
Has the Endorsement of President
Wllson--Federai Board to
Have Control.

Have Control.
|, Washington. June 2n.-The owens
Glass-McAdoo banking and currency
biii was introduced in both houses OF
congress today.
This bill, which has the approval of
President Wilson, may be modified In
some particulars during it's considera-
ton by congress, but in most of it's
features it will be the law of the land,
in all probability, before the adjourn
ment of the present session Of con-
gress.
Summary of Provisions.
Summarized, the bill is as follows:
The secretary of the treasury, the
attorney general, and the controller of
the currency are formed into an or
ganization committee for the purpose
of dividing the United States into not
| less than IL districts, each district to
contain a federal reserve city.
| In each federal reserve city the or
ganization committee will organize a
federal reserve bank.
Every national bank within a re-
serve district must subscribe 20 per
cent. of it's unimpaired capital to the
capital stock of the federal reserve
bank of that district, the capital stock
to be not less than 100000.
Limit on Branch Houses.
Each federal reserve bank may es-
tablish branch offices, the number of
which must not exceed one for each
100000 of the capital stock of such
federal reserve bank
| Every federal reserve bank shall be
| Incorporated and shall have success
sion for period of 20 years from it's
organization.
Every federal reserve bank shall be
controlled by board of nine direc-
tors holding Office for three years,
three of whom shall be chosen by the
stockholding banks, three represent
| ing the general public interests of the
reserve district, and three designated
by the federal reserve board. Share
holders in federal reserve bank shall
be entitled to an annual dividend of
pei SChl. Ol IuO pdlO up Capital.
Raising of Surplus Fund.
One-half Of the net earnings shall
De paid into the surplus fund until
that fund amounts to 20 per cent Of
the banks capital, and the remaining
half shall be paid to the United States.
When the surplus fund amounts to
20 per cent. of the capital and the
shareholders have received their FIVE
per cent. dividends, all excess earn
ings shall be paid to the United
States.
Any state bank, banking associa-
ton, or trust company may subscribe
to the stock of federal reserve bank.
A federal reserve board is created
consisting of nine members, the secre-
tary of the treasury, the secretary of
agriculture, and the comptroller of the
currency, three members chosen by
the president of the United States and
by and with the advice and consent Of
the senate, for term of six years,
one OF whom is to be the governor, an
other the vice-governor, and the third
the secretary; and three members
chosen by the electors of the federal
reserve banks.
Powers of Federal Board.
The federal board as empow-
cred:
To examine accounts and books of
federal reserve banks.
To require or permit federal re-
serve bank to rediscount the paper of
any of the federal reserve banks.
To establish each week or oftener a
rate of discount which shall be mand-
atory upon each federal reserve bank
for each class of paper.
To supervise and regulate the is
sue of treasury notes to federal re-
serve banks.
To require the removal of federal
reserve bank officials for incompe-
tency, dereliction of duty, fraud
or deceit
To require the writing off of doubt
full or vorthless assets upon the
books and balance sheets Of federal
reserve banks.
To suspend the further operations
of any federal reserve bank and ap-
point receiver therefor.
Limit of Banks Business.
A federal reserve bank may re-
ceiye from any of its stockholders de-
posits of current funds, national bank
notes, federal reserve notes or checks
and drafts upon solvent banks.
Upon the endorsement Of any mem
Der bank it may discount notes and
bills of exchange arising out of COM
mercial transactions.
Such notes or bills, however, shall
not be discounted for specializing pur-
poses.
Various restrictions are imposed in
reference to the extent of the loaning
power of a federal reserve bank
The federal reserve board may au-
thoriZe the reserve bank of a district
to discount the direct obligations of
member banks.
Certain open market operations are
permitted to reserve banks.
Fiscal Agents of Government.
All moneys now held In the general
fund of the treasury will be deposited
in federal reserve banks, which shall
act as fiscal agents of the government.
All revenues of the government shall