Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1914-01-25

States Treasury or at the reserve
bank The reserve banks are to re-
ceive these notes upon filing notes
and bills accepted for rediscount. The
reserve bank is to maintain a reserve
in gold or lawful money of IS per cent
OF deposits and reserve notes in cir
culation
The Federal reserve bank, also, is
authorized to purchase the bonds of
any member bank that desires TO re-
tire its circulating notes, issuing re-
serve notes in payment.
Deposits for the Federal reserve
banks are assured. First Of all, the
banks not in a reserve or central re-
serve city must reserve u per cent
Of their demand deposits, and 3 per
cent OF their time deposits, q portion
in vaults, and a portion in the reserve
bank; banks in reserve cities must
reserve 5 per cent on demand de-
posits and per cent on time depos-
its, banks in central reserve cities
must reserve is per cent on demand
deposits and 8 per cent on time de-
posts. The reserves of state banks
held in Their own vaults or in other
state banks or trust companies are
construed as being held in reserve
banks.
The cities in which the Federal re-
serve banks are situated will be Sc
lected as soon rs is practicable by
the organization committee, which Is
composed Of the Secretary Of the
Treasury the Secretary of Agricul-
ture and the Comptroller of the Cur
renCy, who shall assign the reserve
districts and select the cities on the
score of easy access, strategic posi-
ton and control of the interests of
the district.
All national banks, within go days
after the passage of the act Ga month
ago., must signify their willingness
to comply with the requirements, and
when the districts are outlined and
the reserve cities designated, five
banks, at least must make applca-
ton to the Comptroller of the Cur
rency for one of the reserve banks,
becoming thus the incorporatOrs.
The board OF directors of a Federal
reserve bank is to consist of three
classes: A, three members chosen by
member banks: r, three members
representing commerce, agriculture or
some other pursuit; c, three members
designated by the Federal reserve
board The board must administer
the affairs OF the bank
Certain restrictions are imposed az
to the directors. Those of classes II
and G are not to be connected with
any bank: ne member of Congress
may be a director or officer; the
chairman of the board must have had
banking experience.
Stockholders7-usually of national
banks-are to receive per cent Gu
mulative dividend. The stock, of
course, is to be increased as the
member banks increase or grow. One
half the earnings remaining after the
payment of dividends and expenses
is to create a surplus fund, until tho
surplus equals 40 per cent of the cap
ital of the reserve bank The Secre-
tary Of the Treasury may use the net
earnings to the Government to add To
the gold reserve or in liquidating the
bonded debt.
Thus, in the main essentials, is the
import of the Federal reserve act, or
currency bill 1t is specifically not
to repeal the gold standard act, nor to
interfere with the provisions of the
Aldrich- Nreeiand emergency act of
1908, which, by the terms of the new
law, is extended until June so, 1915.
By the bill the Federal Administra-
ton hopes to achieve a great reform.
A number of digets of the new law
hive been made and published. that all
its ramifications and significances
may be studied. Probably none, how
ever, is more practical than the digest
prepared by the T bird National Bank
of Atlanta.