Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-07-03
The Fundamental Principle Be-
hind the New Currency Act

The fundamental principles Glass bill are first
that the chief the country should be
foster trade and agriculture and not speculation
underwriting syndica; and second that the right issue
money inherent in the Government and that association
of private bankers vested with the power issue money gen
eral circulation MUST be under the supervision and control of
the Government and third that all profits from such banking
privileges in of per upon the capital fur
nhed by the private bankers
be paid to the Government.
Under the currency act the entire operation of
tonal banks and the of emergency currency the re-
banks control of Federal Board of
members sitting at Washington The Secretary
Treasury Secretary Agriculture the Comptroller of
the Currency will be three of the members The
bers of whom must be experienced banker ap
pointed by the President of the United States by the
advice and of the Senate Members to
for eight years unless removed by the President
This Federal Reserve Board will have complete power
though complete power initiate by twelve
Federal banks distributed geographically according
the needs and volume of banking business all parts of the
country.
of 10 per stock to the capital stock of the
Federal Reserve Bank of its district Every bank shall be
required also to keep at least per cent of its
the Federal Reserve Bank Of its district.
None of the twelve Federal Reserve Banks shall accept de-
posts from individuals but each shall represent all the banks
in its district having Federal charters shah be Govern
ment repositories In times of financial sngenoy any bank
may take to the Federal Reserve Bank its district merchants
acOeptances shOrterm notes ARISING OUT OF CONNER
oLAL TRANSACTIONS for redscount and obtain from the
Federal Reserve Bank United States Treasury Currency
for rs per cent of the face value of such notes
The notes rediscOuned be limited solely to COM
mereia bills payable within from ortyfve hundred
twenty days and notes based upon or bond trans
actions shall be discounted The discounted will be
backed by the entire of the bank pedgng the notes by
the credit of the individual borrowers by the assets of the
Federal Reserve Bank The paper which any ndvd
ua bank may rediscoun is limited oneha padn capital
Each Federal Reserve Bank will be required times to
keep on hand actual gold S per of aggregate
of the commercial notes edsoounts for the of its dis
trict
The Federal Reserve Banks will obtain United States notes
or emergency currency to pay for these merchants notes
from the Federal Reserve Board Washington rates of
interest the Federal Board shall from time to time
The owensGasS bill in its present form does provide
specifically enough that the rate of discount shall
the emergency currency issued shall automatically return
to the Treasury and be Cancelled when the is past
This emergency usually temporary panic the annual crop
moving the autumn Of every year when three hundred
million dollars in currency needed pay the American farmer
for his harvest
The profits of the twelve district banks will 60 to the
national banks which contribute stock and reserve funds
to the extent Of per cent cumulative dividend annually
no further All profits Of per will be used first
to create surplus fund equal 20 per the capital stock
Of each bank and after amounts 90
per cent of such capital all further profits the
Thereby all temptation directors of the banks to u
derae undue risks embark unsafe nancering removed
The national banks who stockholders elect six and the
President of the United States appoints three nine d
rector Of each district bank Three directors
elected by the banks must be fairly representative the
business and commercial interests and not direct
of any bank"
IConert why veru influential BdAke Are oppo
the Secretly Bitterly" appear i'm
medGey in these coIumnsl