The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1914-01-06
THE NEW CURRENCY LAW
Important Points of New Law Just
Signed.

Robert l.. Owen, senator from Okla
homa, chairman of the senate banking
and currency committee, which ham
died the bill in the senate, gives his
views on the measure as he sees 1t at
the same time making the statement
that it is the most important measure
| passed since the Civil war, and IN TINS
view many agree with him. He SAID
as follows:
THE banking and currency bill is
the most important piece of legisla-
| ton since the war.
ut provides a plan for concentrat-
ing the reserves of $4,000 banks into
| the most gigantic banking association
in the world.
at provides for the mobilization OF
these reserves, thus keeping them I'D
uid and quickly available into cash
TT provides for the issuance of elias
tic currency through federal reserve
notes, which may be obtained on the
security of commercial bills OF short
maturities.
at establishes an open discount
market, which America has never mad,
and in this open discount market will
be found. a place where commercial
bills and commercial paper can be
discounted at all times at low rates
of interest.
ct provides for safeguarding the
two-per-cent bonds.
ct will stabilize the commercial, IL
nancial and industrial conditions OF
the United States.
at establishes foreign branches
and takes care of our foreign COM
merce.
at extends a strong helping hand to
the farmers of the country, and Will be
very valuable to the business man, as
well as the bankers themselves
THE system is under the supervi'
sorry control of the government
through a federal reserve board with
full power to fix the interest rates OF
control the elastic currency, or fed
eral reserve notes, examine the banks
and remove officers or directors o.
any federal reserve bank.
"The system will start with S53,0OO
600 of capital and will in two years
have over S400,000,0 900 of reserves anC
probably $200,000000 of government
funds distributed through from to /:
banks adjusted to serve convenient,
: and sympathetically every section o
the country"
The provision of the currency Law
, relative to farm loans, as passed b,
: the senate and not changed, so far a
reported, in the conference commit
. tee and as actually passed, provide
:, that banks may make loans upon farm
lands for five-year periods to the eX
: tent of so per cent Of the value of tn
! farm, and 25 per cent of the capita
= and surplus of any bank is availabl
!. for the purposes of such loans. Tn
> provision of the law in full is as fol
=, lows:
> Section "a. Any national bankin
;, association not situated in a reserv
: city or central reserve city may max
;, loans secured by improved and unen
numbered farm land, situated With
it's federal reserve district, but no sue
loan shall be made for longer tim
than five years, nor for an amount es
:, ceeding 80 per centum of the tott
. value of the property offered as secul
ity. Any such bank may make sue
6 loans in an aggregate sum equal to
= per centum of it's capital and surplus
= "The federal reserve board sha
' have power from time to time to ad
=, to the list of cities in which nationt
e banks shall not be permitted to max
- loans secured upon real estate in tn
dacprihod in this section "