The Mena weekly star., 1913-06-26
PROPOSED J. s.
 CURRENCY BILL
Briefly Summarized - Government in Complete COntrOl-PrOvides Against InflatiOn-Recast the
 Bank Reserve system.

Washington, June ZU.-bEleIlE summarizing the administration currency bill, as made public last night it is as follows;
 Board of control to consist of sev- en members. composed of the sec retary of the treasury, secretary of agriculture. comptroller of curren- ey as ex-otncio members, and four others to be chosen by the president and confirmed by the Senate.
 Except the cabinet officers, the members will receive Sl0OO0 year. The comptroller of currency Will receive 5000 in addition to his an- nual salary of S5000
 Twelve reserve banks. Number can be increased.
 The ownership is to be in the hands of the stockhOlding banks of the l2 districts in which the re- serve banks are situated. The na- tloual banks are compelled to be members and state bank and trust companies are permitted to be members.
 The equalization is to be 20 per cent of the stockholding banks, one half paid in and one-half subject to call.
 The business of these federal banks is to be as follows:
 Rediscounting of paper presented Dv stockhodine banks under speci- lied conditions. provided such pa per grows out of actual agricul- lural commercial or industrial transactions. and does not run more than a specified number of days.
 Buying and selling government securities, gold and silver bullion and foreign countries exchange and open market of given maturity.
 National banks and such state banks and trust companies as con- form to standards would be stock holders of the reserve banks. The go, trnment would hold no stock. Government in Complete Control. The government would control ihe federal reserve banks entirely through 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 agriculture. the comptroller of the currency, as members eX-Otticlo. Four other members would be chosen by the president and con- Armed by the Senate. The national oauk note circulation would re- main undisturbed and no proposal is made in the bill for retiring ap- proximately S10O,000000 ? per cent bonds upon which that note issue now rests. An amendment or sep aratp bill 10 refund those bonds ln- lO B per cent bonds may be intro duCed later.
 In addition 10 the S700,00O0O0 eX- {stina national bank notes, not more lhan S5OOOO0.000 in what Is known as federal reserve treasury notes might be issued at the direction of the federal reserve board solely for lhe purpose of making advances tC the federal reserve banks, which would do MO business with the pub lie. deal only with their member banks and receive deposits only from the United States. While the notes would. on their faces. pur- port 10 he the obligations of thC United States, they would be re- wirad lo be secured by a gold re- serve of 33 l-3 per cent provided by lhc federal reserve bank. would b' first and paramount lien on al tlc assets of these banks and would be rrdepmable in gold on demand a 5hp treasury department in the cit! 8( Washington or any federal re serve bank.
 Provide Against InnatiOn.
 Stringent provisions are mad, against counting any of these note as part of bank reserves and tn, system is guarded against imitation by lodging power with the fedora reserve board to exact an interes charge upon treasury notes ln or der to insure their prompt redemp iiou. The notes are not made lega tender. but would be receivable b, the government and every bank o She system at par, without eXami nation.
 No change would be made in tn protection of other existing notes.
 The federal reserve board wOul require a federal reserve bank t re-discount the paper of another and would establish a rate on dis count not necessarily uniform fo all reserve banks, but made with view to accommodating the com merce of the country and promOt mg a stable price level.
 For recastine the present ban reserve system the bill proposes transfer the reserves from nationa banks in the present reserve an central reserve cities to federal re serve banks. Carrying the proces of transfer over 38 months to avoi shock lo market conditions.
 -O-
 There is greater wealth in tn lime wasted than in all the gol mines in the word.-The Youth fT1v,nopfon