Mountain advocate., 1913-12-26
CURRENCY BILL WINS.
sENArE PASSES CURRENCY
MEASURE BY vorE OF
"a TO "a.
6 REPUBLICANS FAVOR ACT
Contains Provision That Banks Must
Accept Within sixty Days Of Its
Passaee--Rsserve Districts Eight
10 Twelve-Now Goes to House.


Washington, Dec. 20.-The new cur
rency bill was passed by the senate
on Friday by vote OF 81 to "a. It
was backed by the solid Democratic
vote and six Republicans.
The essential features OF the cur
rency bill as 1t passed the senate are
as follows:
Secretary of the treasury and two
members OF the federal reserve board
constitute the organization committee.
The committee Is to designate not
less than eight nor more than IL re
serve districts. in each Of which a fed
eral reserve bank is to be established.
Every national bank is required and
every eligible bank in the United
States and every trust company in the
District OF Columbia is authorized to
signify In writing within sixty days
after the passage of the act its ac-
ceptance Of its terms.
National banks are required and 9TH
ers are permitted to subscribe to the
capital stock OF the reserve banks In
a sum equal to six per cent. OF the
capital and surplus Of such banks, one
sixth to be payable on call. one.sixth
within three months and one-sixth
within six months. the remainder sub
ject to call.
Any national bank falling to signify
its intention to accept the terms OF
this act shall cease to act as a reserve
agent upon 80 days notice.
Any national bank falling within
one year to comply with any Of the
provisions OF the act will forfeit its
charter and privileges under the ma
tional bank act
II the stock subscription by the
banks is not sufficient in the judg-
ment of the federal reserve board
TO provide proper capital the stock
may be offered to the public, the max
imum subscription being $4,000.
Minimum capital of reserve banks
is fixed at s3.OO0.000.
Each reserve bank must establish
reserve branches within it's federal re-
serve district at such places as are ap-
proved by the federal reserve
board
There shall be nine directors hold
ing Office for three years, divided
into three classes, three to be chosen
by the banks and the representatives
OF the stock-holdlng banks, three
chosen by the banks who at the time
OF their election shall be actively en-
gagged in their district in commerce.
agriculture or some other industrial
pursuit. and three designated by the
federal reserve board. One Of the last
named class is to be designated by the
federal board as chairman of the board
OF directors OF the reserve bank. No
director OF the last two named classes
can be a director. officer. employe or
stakeholder of any bank.
After all expenses have. been met,
stockholders In reserve banks will re-
ceive a six per cent. division. which
shall be cumulative One-half the net
earnings above the expenses and divi-
dend is to be paid into surplus fund
until that fund amounts to 40 per cent.
OF the paid in capital.
OF the remaining half OF the excess
half so per cent. shall be paid to the
United States as a franchise tax and
one-half to the United States as trus-
tee for the benefit OF depositors in
failed member banks.
The federal reserve board shall con.
sist OF seven members, including the
secretary OF the treasury as an ex-of-
ficio member and six members ap-
pointed by the president. TO be con.
firmed by the senate They are to be
selected with due regard to a fair rep
resentation OF the different geographi.
cal divisions OF the country. Their
salary is fixed at s12 900 a year and
the terms are six years.
Among the powers vested in the fed
eral reserve board are:
To require reserve banks to discount
the discounted paper of other federal
reserve banks at rates Of interest TO
be fixed each week or oftener: TO sus-
pend for a period not exceeding thirty
days and from time to time renew
suspension for persons not exceeding
fifteen days, any reserve requirement
specified in the act; to authorize
members to use reserves. federal re
serve notes based on United States
bonds to the extent that the board
may find necessary; to grant to ma
tional banks applying therefor the
right to act as trustee. executor. adj
ministrator or registrar OF stocks
and bonds.