Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1914-08-22
Earnings on $4,000, 900 Capt..
tai to U. S. After Surplus
is 40 Per Cent.
BOARD IS POWERFUL
Recently Organized Commission Regu-
Iates Issue Of Bank Notes, Fixes
Discount Rates and Can SuS- -.
pend Requirements.

Washington, Aug Elm view OF
the recent financial crisis, every Ell
fort is being made by the federal re-
serve board, organized at Washing
ton last Monday, to put the new
banking system of the county winch
will make panics practically 1mpos-
sible, into working order. 1t is gen
orally believed that before october
next, the full machinery OF the sys-
tenn will be in operation. Ihere IS
therefore widespread interest at TINS
time in the personalities and powers
of the group OF men who VIII cNei-
else complete control OF the country's
credit Facilities.
The board has been organized as
follows:
Charles S. Hamlin, Of Boston, gov
crnor.
f. A. Delano, OF Chicago.
Paul M. Warburg Of New York.
wv. P. G. Harding of Birmingham,
Ala.
Adolph c. Miller of San Francisco.
Ex-officio:
William G. McAdoo, secretary OF
the treasury.
John Shelton Williams, comptroller
of the currency.
. Five of the above board were APP
pointed by the president with the]
consent OF the senate, to serve tea
wears, not more than one from any
district, two to be experienced III
banking or finance, one to be gov
ernor and one to be vice governor.
All of the members of the soard
are to give their entire time to thal
usiness of the board and the Salary
is to be $4,000 a year.
No member shall be an officer, Oil
rector or officer in any bank or
trust company or member OF con-
gresS.
Members and assistant secretaries
of the treasury, shall not be employ
ed I'M any member bank while in OIL
flee. nor for two years thereafter.
The powers of the board, accordinGi
to a digest of the federal reserve act,
made by the Guaranty Trust com
pany, are as follows
Powers Of Board.
To examine federal reserve banks
and member banks.
To permit or require federal re-
serve banks to rediscount paper OF
other federal reserve banks at rates
to be fixed by this board.
TO suspend for stated periods re-
serve requirements and to establish
tax on decreasing reserves.
To regulate the issue OF notes.
To add to or reclassify existing re-
serve and central reserve cities.
To suspend or remove officials OF
federal reserve banks.
TO require writing off doubtful as
sets of federal reserve banks.
TO suspend, liquidate Or reorSan-
ize federal reserve banks violating
this act.
TO require bonds of federal reserve
agents., to perform all duties, ETC.,
specified or implied in this act ana
to make all necessary rules and reg
ulations.
May exercise functions of clearing
house for federal reserve banks, OF
may designate federal reserve banks
to do the same, Or may require each
federal reserve bank to so act lor
its member banks.
To levy upon federal reserve banks
semi-annual assessments sufficient TO
meet estimated expenses OF lnei
board.
To exercise general supervision ov-
er federal reserve banks.
To define character of bills ehglple
for discount by federal reserve banks,
and to limit and regulate redlscouatsI
and acceptances.
May establish rate of interest to be-
charged federal reserve banks on
federal reserve notes issued.
May fix the charges to be collected
by mmeber banks for checks cleared
through federal reserve banks.
To employ necessary attorneys,
clerks, ETC., without regard to classi-
fled service; but president may place
said employees in classified service.
Advisory Council.
Undr the law. there will be organ
lied federal adviory council, COM
posed of as many members as there
are federal reserve banks. The coun-
ell will act in an advisory capacity
to the federal reserve board
There will be twelve federal re-
serve banks. each of which will be
controlled by nine directors. Three
of these directors are to be elected
by member banks. who shall repre-
sent the banks Three shall be elect
ed by member banks representing the
business interests of the district. Dl-
rectors, officers and employees OF
any bank are not eligible.
Three will be appointed by the fed
crap reserve board, one person OF
|. banking experience to be chairman
ande,designated as a federal reserve
agent.
No member of congress shall be an
officer or director
The capital of the federal reserve
banks shall not be less than $1,000
600. The shares shall be 500 par
value, tax exempt, to. be subscribed
by member banks in district, and
under certain conditions by United
States Treasury. and by general pub
lie, holdings by latter not to exceed
$4,000. Only stock owned by mem