The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-11-17
VIEWS OF CARTER GLASS
Feder Reserve Law Will Cauor pi,
Saving For Trades PeopIc.

tCarter Glass, chairman of the Bart-
Ing ana currency Committee Of the
House Of Representatives and Do
Author of the Federal Reserve Act
n regional reserve banks do ra-
transact business with individuals. Tor
they are banks of banks. They have
oeen PROVIDED to Onduc the r.li-
count business Of the individual banks
IN a given region. They furnish the
redlscounts. And the board Of dir-c-
tors and managers operate them just
as the board of directors and mama
gers of any national or State bank -
trust company manage those instltu-
tons.
The Federal Reserve Board ut
washington ssues the currency upon
the application of the regional r.
serve bank, it having first had apple
tcatlon Tor redlscoUnt from the mems
Der bank. SO that the business orig-
mates, as now, with the member bank.
Whlch II 1t finds that it needs funds
or additional credit. simply indors.s
the commercial or agricultural or in
cnStrlal in its portfolio of %
Gays maturity, sends it up To the
BOARD OF directors of the regional Re-.
serve bank and asks for q r~ediscount.
Inc board passes upon it. II thA
agent of the Federal Reserve Board
stationed at each one of these banks
10 issue currency, if currency is de-
sirad, and the board Accordingly
passes upon this paper.
The earnings Of these regional re-
serve n are to be divided as fol-
lows: A + per cent cumulative dI.l-
dend to the ~stockholding banks. FREQ
of all taxation, national, State or ml-
nlclpal; . per cent net cumulative div
ldeno, which is a pretty good invest
lnent, after all Then the regional r.
serve banks, having paid his cuml-
ldtlVe dividend, are to acquire 40 pe-
cent surplus to enable them better 10
respond at all times readily to the
business demands of the various conn
munlties- Having paid the umU-a-
tive dividend and acquired the sa--
pius OF earnings, any excess is 70 go
TO the United States government for
the purpose Of strengthening its gold
reSt4 We, and having done that for the
of discharging its bonded lI-
debtedness.
L predict that in a very few years.
uhuer TINS system. our national green
packS now outstanding to the amount
OF S34S,e00, 900, with only sI50,0fo.-
uoo OF gold reServe, will have behind
lhem gold dollar for dollar, and there
VIII be not one SemblanCe of nati~u
III our national currency.
Saving to Trades People.
. che OF the most important pToF1s-
ioiiS IN the currency act is that which
sought 10 put an end to the fragrant
aooSe involved in excessive charge
ny BANKS throughout the country for
CORRECTION and exchanges. This pro-
vision Will result in an immense SAY
Eng TO the t~radespeople of the United
states. II Will eliminate the amaZ-
WaStefulneSs incident to many in
collection organizations tn
substituting one ofnpac collection
system. 1t Will abolish the exchange
charges altogether and appreciably
Itduce charges against collections
Nhdie some banks will have their
pIonls diminished. it will be profits ~
ahich they are not fairly entitled and
Ior the loss Of which they will be more
man compensated by the better and
facilities afforded for the
transaction Of business.
Ahother important provision OF the
act Is hat national banks with one
'Cont'nned OH Page Seren.D