Iron County news. [volume] (Hurley, Wis.) 1913-1950, 1914-01-03
Ost Far-ReaChing Measure Re-
lating to Finance Enacted
IN Many Years.
ALIENT POINTS REVIEWED
,sentlaie Of New Law Summarized
In Nonteehenical Language
Makes Little Change in Oper-
alton of Present National
Eanks-Re elonaI Re-
serve Banks Pro-
Vided For.

SCtNC 6GuNo FtO
vded For.
Washington, Dec 23.-The new bill
: 'ecting The currency. banking and
ances Of the country is one of the
- ISL far-reaching measures relating
iinance that have been enacted in
any years
.The magnitude of the subject. the
:sersity % interests affected and the
:.gth 1t The debates in both branches
congress has to follow the changes
a grasp the essentials of this highly
Clinical measure in its important
arings on money, finance, banking
Il the entire range Of fiscal subjects,
3lie ano private. which it affects
; Summary Of the Bill.
With view, therefore. of present,
succinctly and in non-technical
guage an epitome of the salient fea-
asessDf the measure as finally framed
following summary is given of the
as a whole and of its principal
ais
--ieneraliy speaking, the first steps
taken TO bring into operation the
Mion new financial system viii be
slough an organization committee
I lsisting of the secretary of the
WaSpry, secretary of agriculture and
stroller Of the currency.
~ anlss have 60 days within which to
a their applications for membership
the new system, and one years
S@Me IS allowed before the government
81 compel the dissolution of any ma
A1als bank that refuses to Join.
| VII Take Up the Slack"
She new law will make little direct
nge In the operation of the pres
Rational banks, except to allow
INTO loan a certain amount Of their
IDS upon farm mortgages
is chief purpose is to add a new
&c Of machinery to the banking
tenn that will take up the slack"
sing the changing business condi-
ns of each year; that Will give the
hksa place to quickly convert their
tets into cash in time OF need. and
Il viii bring out new federal cur
cy when il is needed, and retire it
Ell money becomes cheap"
sanks are now required to keep a
stain percentage Of their deposits az
serves part in cash in their own
amilts and part of which may be re-
mlositeG n the banks Of New York,
icago. St Louis and other designat-
cities
- Oh times Of sudden financial de-
Z sads. when banks have loaned up to
% fall limit Of their resources. these
sserYes furnish little relief. because
9fhey are paid out to meet demands
"a banks are left in a precarlous con
Z Won
Basic Principle of Law.
sThe basic principle of the new law
Etc get these reserve funds out into
5'culation when necessary without
Z ssenine the safety of any bank, and
\ proFide place to which local
g inks may rush in a crisis and get
9 5sh for the prime commercial pa
3 rs tney hold in their vaults
y This Is 20 be accomplished through
. chain Of regional reserve banks. or
egervcirs Of reserves" in which ali
lnkA Shall deposit a stated part OF
sse nioney they are required to hold
81 reserves
Under the new system. when 4
:aancial furry comes the banks can
..ke Commercial paper, such as notes
1.afts and bills of exchange. TO these
] reservoirs. and secure the use OF
heir owl reserves. or, If necessary
ven the reserve of other banks, BY
.1spositins this security.
Tie new regional banks will re
~eiye about one-half of the bank re
erves ot the country They in turn
ill be permitted to loan back to the
anks 81 but 35 per cent. OF these
serves. So that in case of emergency
lillions OF cash can be brought ont
lto cir uiation quickly,
The banks VIII have TO pay for thesr
pans. however, as individuals have to
Jay 1or Z loan from any local bank
nd this charge is expected to prevent
he fc0 rae use Of the reserves held
" th@ regional banks
New Paper Currency.
As nea tCrm of paper currency Is
glso provided for, to come out in case
a eal rc"ncy, and which IS expected
ogo back into the hands of the gov
TnH eat when times are normal
hes treasury notes" viii be printed
y The government and issued through
ZACH regional reserve bank. and VIA
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