Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-01-08

~ II. LOUIS MO- Jdn. t'- N'"H
- to a statement made public TO-DAY
~ by TESTS j. wade, president OF the
Mercantile Trust company Of this city
the new banking and currency Law
does not curiail or restrict, but In
stead broadena the scope of the pow
ers and functions Of state banks and
trust company which become mem
beers. Mr. Wade outlines the advan-
tages Of the new system az follows;
l. 1t grants the state organization
substantially an privileges Of the ma
tional banking system, except the
right 10 act as reserve agents for ma
tlonal banks and the right to Issue
circulating notes secured by govern
mcnt bonds
2. II places state banks and trust
companies under government supervi-
sion and protection, thus affording adj
ditional security to both the deposit
tor and stakeholder,
3. State banks and trust companies
ARE permitted 10 discount or re-dis-
count bills receivable under exactly
the same terms and conditions accord
ed national banks
{. II cnlarges the sphere Of state
banks ana trust companies by permit
Ting the acceptance by them Of the
obligations of solvent customers.
9. The cash reserves under the
new law will be- Country banks. IL
per cent on demand and per cent on
time deposits: reserve city banks, Is
per cent on demand and 8 per cent
on time deposits; ana central reserve
city banks rs per cont on demand and
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 a like credit
from the reserve bank In their dis
trct. and further, it accommodates
the depositor In that he can only be
charged "a legitimate Zee (approNi-
matcly cost for making the oollec-
tion.) This Item alone will mean mill
/ lions Of dollary OF saving 10 the COM
merce of the country from the opera
ton of The present system.
2. II provides q method by which
an state banks and trust companies
may become part OF a homogeneous
banking system under the federal gov
eminent
S. 1t establishes a reservoir from
which currency is obiainahie at ans
4 time under the same terms and condi-
tions as accorded national banks.
The system will ultimately hrinl
more than 10000 national and stat,
4 banks and trust companies into sub
divisions Of not less than eight nol
more than twelve centers, an beinl
! under tho protection OF the fedora
7 reserve board thus marshaling th'
reserves Of the nation to meet al
needs OF commerce.
by q vote OF five-acyenths Of th'
federal reserve board. the force ans
power Of the entire eight Cor twelve
reserve banks can, when necessary
be concentrated upon any part of thu
United States needing It's protection
.. The new law creates banl
note currency far superior To any banl
note Issued by any other government
whether II hn OF Europe Asia or AZ
rica. Take for illustration. the value
of security behind the bank notes o
AAfh AAiAhi hAAAA'NN GNthNtAH RAiifA
viz. London, Paris aud Berlin.
Bank Of England Notes: Secured h
gold. but may be paid 75 per cent Il
gold and 25 per cent in silver. at tn
option of the governing board.
More than 80 per cent Of the pres
ent outstanding Bank Of Bingham
notes are now secured not by gold
but BIS the debt of the British govern
ment
Bank uf France Notes; Are payabl
IN geld. but the governors OF the ban
may, az any time. elect to pay all O
such notes IN silver
Bank Of Germany Notes (Rclch
j hanki Are payable in gold, but ma
! De paid In silver at the option of tn
bank governors
All OF the three banks above name
orc private Institutions There ls n
government obligation behind then
nor are there pledges by any act q
hngllsh parliament, or the nationa
E assembly Of France or Of the Reich
stag IN Germany which binds thes
governments 90 protect their notes =
i payment Ia gold
HAt AiAAAAHNf ih the currency ~
!. tenn OF England France and German
rs made simply to show comparatly,
J. ~, and thus better point out u
soundness of our basis for rcserN
f. bank notes. It Is not 60 ho understood
II That the comparisons Indicate any mi
4 giving ON our part that the notes
those great countries viii not be pa
in gold or that there is not absole
confidence III the security of u
; pound sterling, the franc OF the mar
. 10. Reserve hank notes 81 q
United States Of America are secure
as follows.
TAI ny the pledge OF the cover
a ment 60 paf such notes presented
/, the treasury at Washington IN sol
I on demand.
n 90 By tho obligation Of any &c,
orai reserve bank te pay said notes
T Nold ar lawful money on demand
! tel By the obligation Of each fe