Evening journal., 1914-12-18

the treasury and the comptroller of
the currency, who are members ex-
officio. and Ave other members ap- /
pointed by the President by and with
the advice and consent of the Senate.
OF the five persons appointed by the
President. one is designated as gov
ernor and one as vlce-governor Of the
board. No Senator or Representative
In Congress can be a member of this
board, nor can any member OF the
board be In any way connected with
any banking institution OF trust COM
pany. Thus, you see. the board Is re-
lieved from the embarrassments that
might result from its members being
interested in personal and private en-
terprises and can have no other OBJ
ject and purpose than TO devote all
| its time and energy to the promotion
of the immense work entrusted 70 IT,
"The act creates also, n Federal Ad-
visory Council, consisting of as many
members as there are Federal Reserve
districts. The members of the Council
are selected by the Federal Reserve
Banks This Council is required TO meet
in Washington at least four times
year Il has power TO confer directly
with the Federal Reserve Board on gen
cral business conditions. 10 make oral
or written representations concerning
matters within the jurisdiction Of the
board and to call for information and
make recommendations in regard 10 all
those things that relate 20 the opera
ton Of the system. Through this coun-
ell the board receives the assistance ot
the ablest financers OF the country and
is brought in direct touch with the
needs of the different sections.
"Thc United States has been divided,
under the provisions of the act, into
twelve reserve districts and in each uf
these districts a Federal Reserve Bank
has hecn established These banks are
managed bv a board of nine directors
three chosen bv the member banks as
their direct representatives and known
as Class A. three actively engaged IN
commerce. agriculture or some other in
dustrial pursuit, but not AN officer, di-
rector or employc Of any bank, known
as Class y. also chosen by the bank, and
= three selected by tho Federal Reserve
y Board known as Class c, who shall not
! be officers directors employees or stock
! holders of any bank. Strict rules and
B. regulations are prescribed for the clrc.
10 tiou of class a aud Glass y directors
Those in Class G are selected with thr
o. greatest care from many names ol prom
% incnt persons submitted TO the Federal
r Reserve BOARD One of the Class & di
e rectors acts as chairman of the board
and also az Federal Reserve Agent. and
o. another a. Deputy Chairman aud Depu
r tv Federal Reserve Agent. These ON
4 GERS act as representatives Of the Fed
o eral Reserve Board in the performance
Y Of the functions conferred upon Il, ah'
Y are the Intermediates between the board
and the bank. Each bank has its COVER
g nor and other officials required for the
- proper administration Of It's affairs.
4 "The Federal Reserve Banks have
q the broadest powers, among whicl
4 may be enumerated the power to re
Il ceive deposits from their .membe
j. banks, from the United States Gov
j. ernment, and from other reserve
r banks. to discount notes Of membe
J. banks growing out OF commercial
j. transactions and TO discount accep
IS tances endorsed by member banks
d they have power also TO purchase II
IS the open market cable transfers
l. bankers acceptances. and bills of eX
IS change, 20 deal I'm gold coin and bulliO
and to buy and sell notes and bonds
t. Through these banks the Federal re
ID serve Board may, from time TO timi
NJ as the business of the country r.
ne uuires, issue notes TO be obligation
u OF the government. redeemable
I'd gold at the national treasury and r.
he deemable in gold or lawful money
Of any Federal Reserve Bank.
,h al have spoken of the membe
H. banks-members of each Federal RI
n, serve Bank. These are the bank
70 that subscribe TO the stock OF III
l. Federal Reserve Banks. and becom
1fl members thereof in their respectly
70 districts, thus submitting themselve
rs to all the provisions OF the act wit
B. respect 10 the conduct OF their bus
T. ness and securing to themselves a
T. the advantages that come from bein
as a part OF a nationwide banking syl
c. TEN. Among some OF the more in
a. portant advantages OF this member
I'd ship are the rediscounting OF note
nd and the securing of currency whe
is required in the course OF busines
O. All National banks are required
ce become members and State banks an
in trust companies may become men
bers OF the Federal Reserve Bank
IN their districts.
{ ct have not attempted TO do moi
g. than give you a mere glance at u
be magnificent organization designed
Is reform the national finances and
l. establish a harmonious and efficieI
to banking system that will be a SAT-
L. guard against monetary disturbance
Id Without the slightest break In n
RS arrangements made for it's inaugurI
So ton, the entire system went into ol
Of Grafton on November 16. II has mo-
e, ed forward in the development Of 4
nt business with precision and success
Of and do not believe II too much
d. say that every man Of affairs in Il
n United States feels assured that Il
re days of panics have passed and tn
be trade and commerce and manufactui
ce and agriculture will hereafter recei'
a. their proper financial support"
al --