The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1913-06-20
Deposits to Be Trans
ferred From the Ma
tional Banks to Federal
Reserve Institutions,
the Process Extending
Over Period of 3S
Months.

WASHINGTON, June 1o.-The ad'
ministration currency bill was made
public tonight by Representative Glass,
chairman of the house committee on
banking and currency. 1t will be intro
duced in the house and senate after
President Wilson has delivered IN per
son his address to congress on Monday
An outline of the message prepared
bv Mr.. Glass states that it will be gone
over in detail for alterations, and sets
out that it's purpose is to accomplish
three principal objects:
Provision of means for rediscount-
ing commercial paper of specified types
A basis for elastic notes properly
safeguarded-
Machinery for doing foreign banking
business.
The measures essentials provide for
twelve or moro federal reserve banks
which will rediseount paper, deal III
Government securities, exchange and
conduct government fiscal operations
National banks and such state banks
and trust companies as conform to stan
dards would be stockholders of the re-
serve banks. The government would
hold no stock.
Government Control.
The government would control the fed
sral roserye banks entirely through re-
servo committee of seven members, In
which the banks would have no repre-
sanitation. Tho board would be composed
of the secretary of the treasury, SecFe-
tary of agriculture. comptroller OF the
currency as members ex ofHclo: Tour
other members would be chosen by the
president and confirmed by the senate.
The national bank note circulation
would remain undsturbed and no pro-
posal is made in the bill Cor retiring ap-
proxirnately s1.7o0. 100000 per cent
bonds upon which that note issue now
rests. An amendment or separate BILL 70
refund those bills .nso per cent ponos
may be introduced later.
In addition to tho $500, 00o,o 900 existing
national bank notes. not moro IMAM
$500, 900, 900 In what are TO be KNOWN as
federal reserve treasury notes tnlghe ee
issued at the discretion OF the federal re-
serve board solely for the purpose OF
making advances to the federal reserve
hanks. which would do no business with
the public. deal only with their member
hanks and receive deposits only from
the United States
Security for Notes.
While the notes on their faces would
purport to be the obligations OF the
United States. they would be required 10
be secured by gold reserve OF Ss l-s
ner cent provided by the federal reserve
banks and would be hrst ana parH
mount lien on the assets OF these oahhS
mand OF the treasury department at tne
city Of Washington, or any federai re-
serve banks. Stringent provision. .,ars are
made against eScmuh1e co nun rsssIyes MS and the
system Us guarded against Imitation by
lodging power with the federal reserve
board to exact an aTssT to insuTe tSe
prompt redemption These notes are not
made legal tender. but would be recep
able by the government h,, ana every ngn pnns
No change would be mnde in the pro-
tection OF other existing notes
Rate on Discounts.
The federal reserve board would re-
ouIre one federal reserve bank to redin--
count the paper OF another and would
establish a rate OH discount not neces-
sariIy uniform for all reserve banks, but
made with q view TO accommodating the
commerce OF the country and promoting
a stable prico level.
For recasting the present bank reserve
system tho bill proposes TO transfer the
reserves from national banks In the pres
ent reserve and central reserve cities 10
federal reserve banks, carrying the PRO
cess OF transfer over thirty eight months
TO avoid shock to market conditions.
The bill proposes, according to Mr..
GlasSs statement, ultimately the .estab-
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