Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1913-06-20
-, ao.nss lovrr.l srrclAl lr.seo vlasi


Washington. June 19.-The admin
isiration currency bill was made pub
ilc tonight by Representative Glass.
chairman OF the house committee on
banking and currency. It will be in
troducod in the house and senate aft
er President Wilson has delivered In
person his address 10 congress ON
Monday.
An outline OF the measure prepared
bv Mr.. Glass states that il viii be
gone over in detail FOR alterations. and
sets out that It's purpose is to accom-
plsh three principal objects
Provision for means Of redis
counting commercial paper of spell
fled types.
4 basis for elastic notes properly
safeguarded
Machinery for doing foreign bank
ing business.
The measurc's essentials provide
Tor twelve or more federal reserve
banks which viii rediscount paper,
deal In government securities, eN-
change and conduct government fis-
cal operations. Rational banks and
such state banks and trust companies
as conform TO standards viii be
stockholders Of the reserve banks The
government will hold no stock
The government would control the
federal reserve banks entirely through
"a federal reserve board of seven
members in which the banks would
have no representation The board
would be composed Of the secretary
OF the treasury. secretary Of agricul-
ture, the comptroller Of the currency
as members ex-officio. four other
members would be chosen by the
president and confirmed by the sem
ate.
The national banknote circulation
would remain undisturbed ana no
proposal is made in the III for retir-
fng approximately $700.000,O00 two
per cent bonds upon which that note
issue now rests. An amendment or
separate bill to refund those bonds
into three per cent bonds may be IN
u0duccd later
In addition to the s700,00O,O00 eN-
listing national banknotes, not more
than $500, 900, 600. which are to be
known as federal reserve treasury
notes. might be issued at the discre-
tion of the federal reserve board sole
IS Tor the purpose of making au-
vances to the federal reserve banks
which would do no business with the
public deal only with their member
banks and receive deposits only from
Whfla thp nOteS
ON their faces, would purport 70 ne
the obligations Of the United States,
they would be required to be secured
bv gold reserve Of 33 IL pc" cent
provided Ev the federal reserve bank
and would be first and paramount
lien on the assets of these banks ana
would be redeemable in gold on de-
mand Of the treasury department az
the city of Washington or any ted
eral bank
Stringent provisions are maui
against counting any Of these notes a.
part Of bank reserves and the sNs-
tenn is guarded against initiation pN
lodging power with the federal re-
serve board to exact an lhtereS'
charge upon treasury notes IN oruei
to insure their prompt reuenipiio"
The notes are not made legal tender
hut would I've receivable by the gov
ernment and every bank OF the sSs
TEN at par without exchange
80 changes would be MADE III N"'
protection of other existing notes
The federal reserve board would re-
quire one federal reserve bank 70 r.
discount the paper Of another @h'
would establish rate on discount no
necessarily uniform for all reseiN
banks but made with view to ac
commodating the commerce ei ln'
country and promoting a stable prlo'
level,
For recasting the present tahh ~
transfer the reserves from nauoh"
banks in the present reserve ana cen
trail reserve cities to federal reserve
banks, carrying the process OF trans
fer over thirty-eight months TO avon
shock to meet the conditions
The bill proposes, according to ar
Glass statement, ultimately the es
tablishment of a reserve system II
which country banks will have 10 pc
cent Of reserve Il. e., 5 per cent o
total demand Habilitiesl such IL pc