Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1913-07-12
DETAILS OF PLAN
FOR REGIONAL
FINANCIAL
DISTRICTS
New Mexico Would Be Includ.
ed in District of Which Dem
yer Is Center With Capital
of Seven Millions.
ABSTRACT OF PROPOSED
NEW CURRENCY Law

washington. july lns-iu cohheN-
ton with the proposed new currency
system. with its suggested division Of
the United states intn twelve regional
banking dlstrieis. an outline mep Of
these districts h most interesting.
The federal reserve bank Of Boston
IL the center for a district including
New England. national banking eap-
itol $4,000. 000; New York, $4,000
900. state OF New York. Philadelphia.
t3s. .00O. 600. Pennsylvania. Delaware.
Maryland. Virginia and New Jersey;
Cincinnati. s2l, 0O,000. Ohio. Indiana,
Kentucky and West Virglnin; Atlan-
"a, sia. .00O. .O0O. North and south Car
oiina, Tennessee, Georgia, Alabama
and Florida. New Orleans. Ss.00O,0O0'
Louisiana. Mississippi. Arkansas and
Oklahoma, ~. Louis 420,OOO,0OO,
Missouri. Iowa and Kansas; Dallas.
81. .OOO. .0O0. state OF Texas. chicago,
t83. 900 goo. Illinois, Michigan and
Wisconsin; Minneapolis, f7.0Oo,00O.
Minnesota. North and south Dakota
and Montana: Denver. 5000, ,00O.
Colorado. New Mexico. Arizona. Wy
oming. Nebraska and Idaho, san
Francisco, 10000, ,00O. California, Me-
vada, oregon and Washington. This
makes "a total OF $4,000. 0.0Oo. total
capital OF the federal reserve board
az Washington.
These are the PROBABLE divisions
into which the country will be appor-
toned should the administration cur
rency bill. introduced by Representa-
tive Glass. become a law. The divi-
sion for the greater part " made
along geographical lines. with refer
ence 20 the most convenient CONNER
ciaI center as the center OF finance
| OF that particular district
Il will be noted that the district Of
which Denver " the center. and
which Includes New Mexico. has a
national banking capital Of $1,000
O00. ranking tenth among the pro-
posed dlstricts. and In the same class
with Dallas and Minneapolis.
The following is an abstract of the
proposed currency law:
Formntive How Created Twelve
or more banks are 10 bee esla Dllshed Ia
various Industrial centers throughout
the United states, the shareholders Of
which shall be national compulsory
and state banks toptionaD OF those
communities, and each OF these banks
is 10 be called federal reserve bank
Of the city In which u II este blshed
The capital shall not be less than
ST.. .OOO. 600. and the power is given t0
estu blsh branches in the smalleT
communities Of each section. Divi-
dends on the stock limited 10 Q pet
cent, II earned. All In excess goes to
to the governm,nt after the estab-
llshment OF 20 per cent surplus
! fund.
Supervision How Controlled Each
Of these federal reserve banks Is TO-
be controlled boy board of nine al
rectors, three OF them TO be practical
bankers. chosen by the shareholding
banks: three who are not bankers
and not interested IN hnnks. chosen
In the same way from Industrial and
agricultural occupations. also three
IappOinted by the federal Reserve
board located at Washington. one of
which f. 10 be thereafter chairman OF
the board of the federal reserve hank.
who will virtually act as president Of
the bank. and also be designated
aEent of the federal reserve board in
the transactions and negotiations aris-
ing between the federal reserve bank
/ hnN AOf ltufAAl iHnftff hRNAhs
Operation (a) A. 10 the public
u will not deal with the public.
(b) As Ia the governmental viii
bee the depository OF all the active ac-
counts of the United States govern
menL The money az present in ma
| tionul banks, amounting GO about
t20. .000. 600. Will be Withdrawn hy the
United States government ana depos-
tied with the various federal reserve
banks. The government viii also
make its disbursements hy checking
against federal reserve banas.
(cl As 90 bankE--it Will receive re-
posits only from those that are share
holders. and will undertake 90 collect
any draft or check drawn by them
upon "a solvent bank state or nation
al II viii lend 20 member banks by
three methods. First, hy rediscount-
ing commercial paper or notes se'
cured by United states 0r municipal
bonds for short periods second. hy
lending the shareholding bank d.
rect upon application Of ten OF the
shareholding banks to the secretary
of the treasury. and Ia his Judgment
public policy SO requires. loan limited
90 per cent OF value oi collateral;
third. buy from or sell SO sharehold-
ing banks bills OF exchange arising
out of commercial transactions
tdD Open market operations 1t
may buy documentary Bills. may deal
In gold coin and bullion az home aud
abroad. aud also government bonds.
(e) Nct issuosA total Issue Of
t6O0. 900. 900 authorized notes, which
shall appear 10 be- the issue of tho
United States government, ana shall
be put out az discretion of the fed
erAi reserve board. In oase of need
each federal reserve bank viii apply
60 the federal reserve board for suCu