The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-06-19
NEW CURRENCY BILL
NOW IS COMPLETE
1T VIII Be introduced in Both
Houses Within Few
DAYS.
Especial to The Times-Dispatch.1

Especial to The Times Dispatch
Washington. June lS.--The draft OF
the Now currency bill. TO be known ms
the Federal Reserve Act" which was
completed last night at a conference
held at the White House between
l're3dent Wilson, Secretary MoAdoo
and Chairmen Owen and Glass Of the
Senate Banking Committee and the
House Banking Committee, rcspoctiv-
Is. WAS given out to- night Within the
next few DAYS this bill will be intro
duced in the Senate by Senator owen
and III the House by Representative
Glass
All previous publications conc ,rning
the revised currency bill were based
upon tentative drafts which were dis
carded weeks ago. and the actual con
tents of the bill were learned tonight
for the first time.
The revised currency bill provides
for tho establishment Of 6fteen
regional reserve districts
The associa ton OF national banks in
thes" districts viii be known as tho
Federal Reserve Bank. The minimum
capital stock OF any reserve bank can
not he loss than s5.O00,0eo.
The central control OF the rcs.ivc
banks VIII be vested in board Of iii
'eriors, consisting of three Cabinet of J
hcers, three men elected BY the re.
serve banks and three men anpo.nt..I
lends even to the requiring OF one cen.
trail reserve station lending none. to
another
The bill provides that within SIXTY
days after the passage of this act the
Secretary OF the Treasury. tho Secrc-
thfN OF Agriculture and the comptrol-
Ter OF the Currency acting as a reserve
hank organization shall place $500 600 ;
poO IN number OF such cities. TO he
known AS Federal reserve cities and
in which Federal reserve banks viii
he established
Every national hank within given
district shall be required 10 subscribe
TO the capital stock of the Federal re
serve bank OF that city a sum equal to
20 per cent Of it's capital. one half OF
such subscriptions 10 be paid in under
the terms and conditions prescribed hv
the national banking net with reference
10 subscriptions 10 the stock of tho
national banking associations
The Federal reserve banks stock
shall not be transferable nor can il
he hypotheeatcd In case "A subscrih-
ing bank increases its capital il shall
Immediately subscribe for an additional
amount OF stock of the Federal Reserve
Bank
The earnings of the Federal reserve
bank are TO be disposed Of in the fol-
lowing ways:
After the payment OF all expenses
the shareholders shall he entitled TO
receive an annual dividend OF per
cent on the paid-in capital. one half
OF the net earnings shall be paid into
the surplus fund until this fund shall
amount 10 90 per cent of the paid-in
capital of such bank and the remain
Ing one. half shall be paid 10 the United
states. MI excess earnings after the
above payments provided for are made
snail be paid TO the United States
The currency 10 he provided in 10
lie limited 20 s50u.000.000. This is 10
be known IS Federal reserve notes and
to he loaned to tic reserve banks when
ever deemed necessary. The security
for these notes may be government or
state bonds. or approved commercial
paper. The rate Of interest is TO be es-
tah!ished hy the central board.
Every Federal reserve bank must at
all times have In its own vaults gold
or lawful money. a sum equal to 32l-3
per cent Of its outstanding Federal re-
serve notes
National bank repositories arc 10 be
superseded by tho reserve banks.
The headquarters Of tho Federal
reserve board viii he located In Wash
inston.
Provision is 10 Ne made 10 give au-
thnrity 10 what are nov known as
country banks II lend money on farm
lands.
The Introduction TO the bin reads:
"A bill TO provide for the establish
ment of Federal central banks, for FUR
nishins elastic currency, amordinS a
means Of rcdiscountinG commercial
paper and To establish a more effcc-
tive supervision of banking in the
United States and for other purposes"
Provision is made for allowing banks