The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1914-01-01

N.e HNH4 MNrGH tNfN aMH eMAfH4H seHtMN ApntH#WN
washington. Special: The new bill
affecting the currency. banking and
finances Of the country which both
DrMncheA OF congress- prepared 20 pass
kefcre adjournment and today goes be-
fore President Wilson for his sigma
tura r. q az the most far reaching
meenureB relating TO- finance that haa
&Nou enacted In, many years, The mag
pitude or the subject. the diverAity OF
interests affected and the length OF the
debates In both branches OF congress
has made II difficult Tor the ordinary
observers 10 follow the changes and
grasp the essentials OF this highly
t3chnical measure In Its important
bearings on money, finance, banking
END the entire ang OF fiscal subjects,
public and private. which Il Affects.
WITH q view. therefore, OF presenting
Succinctly and In nontechnicAl language
an epitolne OF the salient features Of
the measure as finally framed, the fol-
lowing summary Is given OF h bill as
q whole and OF Its principal details:
Generally speaking. the lrst steps to
30 taken 10 bring into operation the
nations new financial system will be
through in organization committee
&1ueiHting OF the secretary OF tho treas
wy, secretary OF agriculture and con-
roller OF the currency. Banks have
&e days within which to nle their ape
p~lications for membership In the new
P~yetens and n years time ts allowed
before the ~geyernment win compel the
dissolution OF any national bank that
retases To- join
The new law win make little direct
ehangA In the operation OF the present
national banks, except to allow them
81 loan q certain amount OF their funds
upon farm mortgages. tn chief pur-
pos tB TO add a new piece OF mAchfn-
alrg ~ satha hrn lit cNas uNrntnF~ fhakE mill
take up the slack during changes OF
business each year. that will give the
hanks q place to quickly onver their
AaBets into cash In time or need. and
that viii bring M new federal ur-
roncy when Il Is needed and retire It
when money becomes cheap.
! Banks are now required to keep a
certain percentage Of their deposits az
-regerve. part In cash In their own
vaults. and part OF which may be re~
1epoMited In the banks or New York,
Chtcago.. ST. Louis and other designated
clsies. In times Of sudden financial
Demands. when banks have loaned up
20 the fun limit OF their resources,
these reserves furnish little relief. be-
cause II they are paid out TO meet de-
nnands the banks are left In q pre-
oMrfoua condition
The basic principle Of the new law
n TO get these reserve funds out into
gtrculation when necessary without
s~s@eening the safety OF sny bank and
% provide a place 20 which local banks
naay rush In q crisis and get cash for
3Rha prime commercial paper they
hold n their vaults.
This is to be accomplishedS'hrou a
chain of regional reserve banks or
reservoirs or reserves" I'm which all
banks shall deposit q stated part Of
the money they are required TO hold as
reserves. Under the new system,
when 4 financial furry the
BANKS can take commercial paper, such
Ns notes. drafts and bills OF exhange
60. Caese reservoirs" and secure the
use OF their own reserves, or II neces
mRry. ven the reserve OF other banks,
by d~epositlHg this security.
The new regional banks win receive
about onesIlnis Of the bank reserve OF
The couptrB They.sfu turn will DO per-
United to loan back to the banks all
but s5 per cent Of these reserves so
that IN case of lemergency, millions Of
casE can De brought ouf into circula-
ton qnicNly The banks will have TO
pay for these loans, however as In
diviGuals have to pay for a loan from
any bank, and this charge is expected
10 pregent the too free use OF the re-
serves held by the regional banks,
"a neY form Of paper currency Sc
also provided for to come out In case
aDf emergency and which is expected to
60 back Into the hands OF the govern
ment when times are normal These
..treesu-g notes Will be printed by the
government and issued through each
regional hank and VIII hear the guar
A