Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-01-02
DIGEST OF CURRENCY LAW IS
MADE BY A NEWARK BANKER
Summary Of New Federal Stat.
ute Is Given by Walter M.
Van DeuSen.

Walter NJ. Van Deusen. cashier of
the National Newark Banking Com
pany, and chairman Of the currencv
committee Of the New Jersey Bankers
Association, has prepared q short ali
gest OF the new federal Currency law
for the Evening Star. Mr.. Van Deusen
has the reputation Of being q close
student OF American banking laws
and Of economics In general His di-
gest OF the new federal legislation
reads:
Few acts ever passed by Congress
rank in Importance with the recently
enacted currency bill. Il changes the
fundamentals OF our banking system
for the first time since the enactment
Of the national bank act in 1863, and
turns the whole course Of our bank
ing system into new channels. A
orief outline OF the bill may be of
general interest:
Banks for Banks
II organizes a series Of banks for
banks. These banks do no business
directly with the people, but only with
banks. the government and each 9TH
er They are intended TO furnish a
place where banks can borrow like in
aiVlduals. They are to have the DOW
sr or Issuing currency They are in
many ways intended to draw together
Tor united help the large number Of
independent banks OF the country, Lo-
cal banks will thus be enabled to
serve their communities even better
man NJ. IN ths. ,paat- and to prevent the
.;. 1sss7<.ns ia san their facilities as in
The couA Woui9 to be divided into
rot less thAoaght or more than
twelve dfatrf{A In aaph district is
located eeda reserve bank, with
branches In the Principal cities OF it's
district.
The capital OF hese banks is to be
not less than $4,000. 00o Each and
every national bank is required to
lsubscribe to the stock of the banks
kn proportion to its capital. Every
tate bank and trusst company may,
nuer prescribed conditions, also take
III tho banks In any district do not
shnecribh for sufficient stock the bal
ancS nefdrd may be oncered for public
yubser<btion.
AThese regional banksA are chartered
Tor twenty years and lare governed
i1y board of directors of n'ne mam-
Hers. six elected by the Astockholding
nks and three appointed by the
trail board at Wash NATION. These
INKS pay per cent. dividends on
err stock and all earnings above
lat amount go to the UNITED States
government to provide a surplus fund
and to retire the bonded ifisfebteduess
u the United States, or to suppie-
nent the gold reserves OF the gov
#nment.
Discounts Ranks Papers.
The Federal reserve banks hatd re-.
serves for all stockholding or nAenber
banks. They discount commerciai
paper for these member banks. lTbey
Zeal in gold and foreign exchhng
They deal in government bonds and
notes. They hold government de-
posits. and through them are isspe6
Ihe Federal reserve notes
Thus the regional Federal reserve
MIX becomes the central bank OF lie
ltrict. In way whiting all the In
vidual local banks OF the listrlct
70 one organization Tor he general
pd OF all.
|hese eight to twelve regiona
- are held together for unity. q
by a central board at Wash
called the Federal Reserve
The board has powers of
sioR. examination. and 10 some
\centrol over the regional
TIM board consists OF the
eary Owe treasury and the
rQller OF tLe currency. ex-off1cio,
we members appointed by the
for terms OF ten years, with
l2090 & year each. They
= eg'onal banks, and can
- Of them that violate the
ey can arrange for one