The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1913-12-23
CURRENCY BILL IS GREAT PIECE
OF CONSTRUCTIVE LEGISLATION

These treasury notes" will be printed
by the government, and issued
through each Regional Bank. and will
bear the guarantee both of the Region
al Bank and the Government
IL the demand for currency in any
section of the country exceeds the
supply OF circulating money. a Region
al Bank can secure this new money
from the Government and put into cir
culation; but p gold reserve OF 40 per
cent. and commercial paper equal TO
the full value OF the note. must be
! held as reserve behind each note so
issued. This provision is expected TO
| be the influence that will drive the
new money back into retirement when
u Is no longer needed.
Analysis of Bill.
The following analysis presents the
herring closely to the technical divis-
| ion or language OF tho measure.
At the head of, the system will
stand Federal Reserve Board az
! WASHINGTON. appointed by the Presi-
dent, and TO consist OF the Secretary
! OF the Treasury. the comptroller OF
the currency and FIVE other members.
Two OF these shall be expert bankers.
! but none shall have banking anil.
atoms or own bank stock during their
service. This board will exercise gen
eral control over the entire system.
mittee. or the Federal Reserve Board
will select from eigh, TO twelve cities
where Regional Reserve Banks shall
be located. and will divide the entire
country geographically with these cit
les as the centers OF districts All
required 70 subscribe for the stock OF
the Regional Reserve Bank I'm that
district, and 10 keen a uOstion OF
their reserves there.
Local banks will be known as mem
Der banks because they viii own the
stock ~ the Regional Reserve bank OF
their district Each member-bank viii
ne required % take capital stock OF the
itegional Reserve bank equal 20 six per
cent or the nember-banks capital and
surplus. The capital OF the Regional
! slWays represents six per cent OF the
combined capital and surplus OF Ali m a
banks ot the district that have Joined
Compelled TO join.
National banks are compelled to foin,
ana state banks are permitted 20 n they
the standard set FOR national banks and
submit TO national examinations
- IgbIlc ownership OF the stock OF the
~ In case enough banks DO not foin in
any district 20 provide a capital stock OF
st.p"o. 200. IN such event the public may
purchase tho stock In quantities limited
70 $4,000 for each individual. hu' the
voting " this stock viii be placed IN a. .
7 TenTnNemfnfNNra
Reserve bank
The Regional Reserve banks may DO
business only with their member han
not with tho public. except that certain
open market operations" such a. the
purchase and sale OF gold. government or
bills ~ exchange. are permitted These
banks VIII make their earnings from the
loans made 20 member banks. and from
ne purchase and $40 OF bonds and for
efgn bills ~ exchange
Mcmhcr-hanks VIII be compelled 90
put no IN cash only one-half OF their
SUBSCRIPTION 20 the capital ~ the new
banks. the rest can be called for n
needed hy ne Regional Uauk Ufvfdenda
OF per cent viii be paid on this stock
o. tho mem her banks and the otori, ,.tfi
DO non-taxsble After these divtde,da
are paid. ore-half Of the surplus pef
earning goes 20 create "a Regional sur
plu' flnd and whom this has reached 90
per cent ~ the Regional BANKS paid-in
carital those earnings are 10 70 into m.
nltFd states treasury The balance ~
ne net earnings are 90 DO naif ~ the
United states ns franchise tar
GRADUAL Transfer Of Rsssrvss
WIN the machinery thus created for
n new banking system that IL supple.
Inrntsry 20 The commercial banks ~ ths
county. the law provides for n grs6u.t
ranaf~r of part 81 tho bank reaervss ~
these new 'reHnrVnlr' hanks In ,~a.r
not ~ disturb business conditions. on 10
Withdraw too suddenly me heeyv A..
posits ~ country hanks IT, M. I,...
ciues. The law provides that thee ve,r.
uav ~ consumed in shifting these tsi
anres md that m necessary mart - ~.
rrferfee Transferred 90 inc rerf....,f
iantH may consist ~ commercial nsnsr
The amount ~ reserve renufred fr,,o
every hank under the new Law. ara a.
place whore ~ must be tert. arc a. foi
lows i"'
country hanks Total reserve rs1uirss
y Der cent - demand danoeffa "a Il
per cent ~ Tine dsroaif~ Tive fugetftt.
must 70 Vert Oh The banks vaults "a. t,..,
Years hnd four-f Nelftha after that ffs,e
I0r me firaf vear. two. tvefffhe f,r.
Nr N0ff IN Tho regional hank fnrresrf,...
"ne.t "elfih each eix months fhereaffe-
Infil ~ reaches five. fweiftha ~ a..
infal fofFrNe For three years fba .,.
alintfed part - The reserves NAV h. rer.t
ln me h1nha 70 reserve cities. after fb-t
Time ~ muef 20 kept either fl me r,.',.
serve hank
lteaergr city hanEe Total reeerre ~.
lnIr'i cent ~ demand and rva
per cont of time deroaits Eip.afteerftt
wNHL fe Feuf iu ur banks vauIfa f.r
tNe hraf two years and .fffeeufra tf
tNr mat Time Three. 0ffrenfHa must hr
kert in tho regional reserve Eant f4r f..
Nrsf year. inrreaainE nne. fffeonfr ever,
sIN funrfre fHrfeHfter HrfH If res.I.s
= . HHH