The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-06-17
Novel Money for Use Of Federal
Reserve Banks.
FAVOR TO HARVEST LOANS
Even Engraving on Paper Typ
zeal of Agriculture.
An Effort to Make All Paper
Money More Uniform.

Washington. June 17.-Millions Of
dollars worth Of paper money of q new
type will be put into circulation upon
the establishment of the federal re-
serve banks within the next few weeks.
Under the federal reserve bank act
each of the twelve federal reserve
banks will receive advances from the
federal reserve board in the form of
federal reserve notes. distinctly new
sort Of paper money. Commercial pa
per will be the collateral advanced
by the various banks as security for
these notes.
:. Comptroller Of the Currency Will
liams has samples Of this new paper
money now under consideration. At
his request. Joseph E. Ralph. director
OF the bureau Of engraving and print
ing. prepared notes of IS, SO, $50, $50
and 500 denominations and these
have been submitted to Secretary Nc
Adoo. It is not likely. however that
the sample will be officially accepted
until the members of the federal re-
serve board have been confirmed by
the senate and can confer with Secre-
tary McAdoo and Comptroller Will
liams concerning the new notes
At present no official of the treasury
department is able to make any esti-
mate Of the amount Of federal reserve
notes which will probably be put into
circulation this year. Federal reserve
banks are required under the new law
to keep gold reserves of not less than
40 per cent against federal reserve
notes in actual circulation. The
federal reserve banks will depend
largely on the amount of money re-
Quired by member banks for the re-
discounting Of commercial paper.
Harvest Plans.
Last year at harvest time Secretary
McAdoo permitted banks in the west
and south to borrow money on COM
M moi oh
was loaned. The immediate demand
for federal reserve notes will probably
be far in excess of that sum, as the
harvest loans were limited to the
United States will draw on the federal
reserve board for money to rediscount
agricultural, Industrial and CONNER
cial paper. The money for harvest
emergencies was limited to % states
and none of it went to New York and
New England.
The new IS note submitted by Mr..
Ralph Is typical Of agriculture. The
portrait on the face Of the note is
Lincoln's and the hack shows q har-
vesting machine and allegorical hg
ures typical of farming. The $40
note bears a portrait OF Cleveland and
a manufacturing scene The $40
bears Jackson's portrait and is typi-
cal Of commerce. having a steamship,
train and other mediums Of trade on
INC DaCA. GTanC 8 picture Is SHOWN
on the $50 note and Franklin's por-
trait adorns the 800 bill. Both Of
these larger bills are typical Of the
arts. All the bills will be printed in
green ink on the back, while black
ink will be used on the faces.
More Uniformity Wanted.
For some time the treasury de-
partment has been anxious to make
all paper money more uniform. At
present different portraits appear on
different sorts of paper money of the
same denomination. It is likely that
the portraits selected for use on the
federal reserve notes will also be used
on other paper money. So in the fu-
ture all banknotes. gold certificates.
silver certificates and federal reserve
notes of IS denomination will prob
ably bear Lincoln's portrait and so on
through the series up to 500.
OF the forty per cent gold reserve
banks maintain against their OUT
standing federal reserve notes, at
least five per cent will be kept in the
United States treasury for the re-
dempti0n of such notes. It is pro-
vided under the new law that when
one federal reserve bank receives fed
eral reserve banlknotes issued by an
other bank 1t I -ust return them i'm
mediately to the issuing bank and
heavy penalty Is provided for a bank
which pays out notes other than its