Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1914-01-09
Washington. Special: The new bill

Warrington. Special: The new bill
Affecting the currency. banking and
nnances Of the country which both
branches OF congress prepared to pass
peIore adjournment and today goes be-
FORE President. Wilson for his sigma
cure. 10 n OF the most far reaching
measures relating to finance that has
been enacted in many years. The mag
1itude OF the subject. the diversity of
debates In both branches Of congress
mas made 1t difficult for the ordinary
observers to follow the changes and
grasp the essentials of this highly
technical measure in its important
bearings on money. finance, banking
and the entire range Of fiscal subjects,
public n private. which it affects.
With a view. therefore, of presenting
euccinctly and in nontechnical language
IN epttome of the salient features of
the as finally framed, the fol-
lowing summary Is given of h bill as
whole and Of its principal details:
Generally speaking. the first steps to
nations new financial system will be
through an organization committee
consisting OF the secretary Of the treas
usy. secretary Of agriculture and con-
Gollcr Of the currency. Banks have
20 days within which to file their ap-
plications for membership In the new
fystem. and n years time is allowed
before the government will compel the
dissolution OF any national bank that
refuses to Join.
The new law will make little direct
change in the operation Of he present
nattonal banks. except to allow them
TO loan q certain amount of their funds
flNnn H0R~ VNnet~A~Aa YAA NhfAH mi
pose 10 to add anew piece Of inachki-
ery to the banking system that will
take up tho slack" during changes of
business each year; that will give the
Q place to quickly convert their
assets into cash In time Of need. and
that will bring out now federal cur
fency when II 70 needed and retire 1t
when money becomes cheap"
Banks are now required to keep a
certain percentage Of their deposits as
reserve" part in cash In their own
vaults. and part Of which may be re-
deposited In the banks Of New York.
cities. In times Of sudden financial
demands. when banks have loaned up
20 the full limit of their resources,
these reserves furnish little relief. be-
cause II they are paid out to meet de-
mands the banks z left In q pre-
S01ACuS COUOlIlOus
The basic principle OF the new law
b to get these reserve funds out into
circulation when necessary without
lessening the safety of n bank; and
20 provide a place to which local banks
may rush In a crisis and get cash for
the prime commercial paper they
hold in their vaults.
This Is to be accomplished through a
chain of regional reserve banks or
reservoirs Of reserves in which all
banks shall deposit q stated part of
he money they are required to hold as
reserves. Under the new system.
banks can take commercial paper. such
~ notes. drafts and bills Of exhange
10 these reservoirs" and secure the
ase OF their " reserves. or II neces-
bary. even the reserve of other banks,
BY depositing this security.
The new regional banks will receive
about one-half Of the bank reserve OF
NE country. They. in turn. will be per-
nnitted to loan back to the banks all
that In case Of emergency, millions of
sash can be brought ou into circula-
lion quickly. The banks will have to
pay for these loans. however. as in
lividuSls have to pay for q loan from
my bank, and this charge is expected
70 prevent the too free use Of the re-
serves held by the regional banks.
A new form Of paper currency Is
Also provided for to come out in case
If emergency and which IL expected to
30 back into the hands OF the govern
ment when times are normal. These
= treasury notes. will be printed by the
government and issued through each
regional bank and will bear tho guar