Yerington times. [volume] (Yerington, Nev.) 1907-1932, 1914-01-10
cyNOPSIS OF THE CURRENCY
LAW AS PASSED.
The New Measure Under Which All
Banks Are Governed.

pan1eS VINO become members.
l. 1t grants to State organization
substantially all privileges OF the Ma
tional banking system, except TIL
right to act as reserve agents for Ma
tional banks, and the right TO issu,
circulation notes secured by govern
ment bonds.
2. 1t places State banks and trus
companies under governmental super
vision and protection, thus affordinl
additional security to both the de
positor and stockholder.
3. State banks and trust companies
are permitted to discount or redis-
Eount bills receivable under exactly
the same terms and conditions accord
ed national banks.
T. 1t enlarges the sphere of state
banks and trust companies by per-
hitting the acceptance by them OF the
reserve city banks. IS per cent on de
mand and per cent on time deposits
and central reserve city banks, l8 per
cent on demand and 5 per cent on
time deposits.
g. All checks or drafts deposited
for the credit OF the member banks
solvent customers can be used the
same day by securing like credit
from the reserve bank in their dis
rict. and further, it accommodates
the depositor in that he can only be
charged Legitimate fee approximate
" cost for making the collection }
This item alone will mean millions
Of dollars OF saving to the commerce
Of the country from the operation OF
the present system.
8 Ii establishes a reservoir from
which currency is obtainable at any
time under the same terms and con
ditions as accorded National banks,
The system will ultimately bring
more than 10000 national and state
banks and trust companies into sub
divisions OF not less than eight nor
more than twelve centers all being
under the protection OF the Federal
4 Reserve obligations Of solvent Gus
toners
5. The cash reserves under the
new law will be: County banks, II
per cent on demand and 5 per cent on
time deposits; board. thus marshaling
the reserves of the nation to meet all
needs OF commerce
By vote of 81 OF the Federal Re
serve Board. the force of power OF the
entire eight Cor twelve) reserve banks
eNl, when necessary. be concentrated
upon any part of the United States
needing this protection.
g. The new law creates a bank
note currency far superior to any bank
note issued by any other government,
whether it be of Europe. Asia or Al
rica Take for illustration. the values
Of security behind the bank notes OF
the three greatest European banks,
viz: London. Paris and Berlin.
Bank of England Notes: Secured
by gold, but may be paid Is per cent
in gold and 25 per cent in silver, at
the option of the government board.
More than 20 per cent of the out
staXling bank of England notes are
norVsecured not by gold, but by the
debt Of the English government.
Bank of France Notes: Are pay
able in gold. but the governors OF the
bank may, at any time, elect to pay
all Of such notes in silver.
Bank of Germany Notes (Reich-
bank: Are payable in gold, but may
be paid in silver at the option of the
bank governors.
All of the three banks above named
are private institutions. There is no
government obligation behind them,
nor are there pledges by an act OF
English parliament, or the national as
sembly of France. or of the Reichstag
in Germany, which binds these gov
ernments to protect their notes by
payment in gold.
The reference to the currency sys-
tenn of England, Frnace and Germany
are made simply to show comparative
ly, and thus better point out the
soandness of our basis for reserve
bank notes, It's not to be understood
that the comparisons indicate any
missiving on our part that the notes
OF these great countries will not be
paid in gold or that there is not ao-
solute confidence in the security yof the
pound sterling, the franc or the mark
~ Reserve bank notes OF the Uni
ted'States Of America are secured as
'o'iows (a) By the pledge OF the
government to pay such notes pre-
scented to the treasury in Washington
IN geld, on demand. (b) By the obi
sauon Of any federal reserve bank to