The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1913-12-23

=, Kept q, In other banks; in q. own vaults or
one Of a. e latter two places.
Central reserve city bank. lN.w York.
required. - per cent OF demand. ana nvs
per cent OF tune depv~itsL Six-eiEhteentns
seyen-eiEhteenths in the Regional RE-
serve banks. and the remaining nve-
choose.
win xAks Up Dsposas..
These Immense funds or reserves nom
memoer-oanks. together with govern
N men ~. money! es WI make up the dspes,s:
these banks Will be adrninistsred By .
board OF nine directors. SIX OF whom wiz
pointed by the federal reserve board
The Regional Reserve banks may 70
iss member-sanis'@p prime commsreis LTD
paper" when the member-oanks desire
to convert these assets into money. the
exact terms OF this important provEsion
as to the character OF paper upon winch
the Regional Reserve banks may fur
Upon the Endorsement of any of 10.
p poSiee and h p.o,s;, n such ssnk. any
discount notes. drafts and bills OF ex-
change arising out OF actual commercial
bills OF exchange issued or drawn FOR
agricultural. Industrial or commercial
purposes. or the proceeds OF which have
purposes. the Federal Reserve board 90
have the right to determine or define the
discount. within tho meaning OF this act.
Nothing in this act contained shall
be construed 70 prohibit such notes:
by staple agricultural products. or other
goods. wares or merchandise from being ]
eligible for such discount: but sucn |
definition shall not include notes drafts |
or bills covering merely Investments OF |
issued or drawn for the purpose of car |
rying or trading in stocks. bonds OF
bonds and notes OF the government OF |
the United states.
Mature IN Hinsty DsyA
Notes. drafts and bills admitted to |
discount under the terms OF this para |
graph must have q maturity at the timo |
OF discount OF not more than 90 days: !
drawn or issued for agricultural pur- |
poses or based on live stock and having |
a maturity not exceeding six months. |
may be discontinued in an amount to be
limited TO a percentage OF the capital OF
the Federal (RegionaD Reserve bank. |
TO be ascertained and fixed by the Fed
eral Reserve Board"
The Regional banks may also dis
count "acceptances based ON the impor-
tauon or expectation of goods"
The new treasury notes. which are to
furnish the elastic" element IN the our
rency system. and TO add to the coun-
Will come into use IN the following way;
The notes will be printed by the gov
eminent, with n distinctive styla for
each Regional Reserve bank one OF
the three directors named by the Fed
eral Reserve Board for each Regional
bank will be known as the Federal Re
ply OF the notes Will be placed in his
custody.
Set Aside Gold Reserve.
should a eRgional Bank desire 20 nav
out more money than its cash resources
viii permit. the law provides that AZ
may put some OF its rediscounted com
m !!eI paper into the hands OF the
federai Reserve agent" and receive IN
return the new treasury notes For each
note that IL puts out into circulation
the Regional Reserve bank must SET
aside I'm gold 40 per cent OF the yalue 81
the note, as guarantee for its redemp-
tion. This gold. with the commercial
Agent. Is the protection behind the new
money but these notes will also be
guaranteed by the government and ma,
be redeemed in gold at the United states
Each Regional bank. under tn. act
must keep reserve OF IS per cent OF
70 per cent gold reserve behind the
treasury notes 80 issues. II the gold re
serve behind the notes falls below 40 per
cent a heavy tax Is imposed on the
rate IL charges member banks for re-
discounts. This was designed 20 sion
OF sudden stress. the Federal Reserve
Hoard can suspend these reserve pro
visions. In order to furnish quick reltes
to any community
One Regional bank cannot again INV
OUT the notes OF another, except under
heavy taN. These notes are expected
70 return TO the Regional bank. and be |
Withdrawn from circulation when The
heed Tor their use RAISES.
Present Currency Not Disturbed.
none OF the existing forms OF cur
tency' except the national bank notes
VII De disturbed by the new law The
United states bonds. now used 10 Sc |
cure the issue OF national bank notes
aa a 10 70 De taken up at the rate OF s2s.-
100000 year by the regional resarye
banks and new treasury notes or shor, ]
term per cent bonds will take tbeir
place National bank currency IL ex
pected gradually 20 retire"
The Federal Reserve board will erer
Use maj control over the entire opera- /
uon or the system. II can counef one
regional bank TO loan another IN Tins ~
need, can suspend all restricfions sur
FOUNDING the reserves which regional
hanNs must hold; and can remove direc-
tors or Regional Reserve banks when /
ever ~ - believed necessary.
NhIe the banks retain control or tho
boards or the Regional Reserve banks
their connection with the Federal re,
serve board Is only through an advis- I
DRY council. made Up OF one represc1fa-
tive from each federal reserve disfrtc, I
This council will meet in waehfr 0fon - h
CONFER with the Federal Reserve board
on geuerai business conditions" ana 10 i
make recommendations and suRgestions I
concerning discount rates. note issue.
ana reserve conditions
Important Change