Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-06-17
MILLIONS IN RESERVE BANK
MONEY WILL SOON BE ISSUED
New Type Certificates Are Put in Circulation
Soon the Federal Board Is Confirmed by
Act of Congress-

WASHINGTON, June 17.-Millions
of dollars worth of paper money of a
new type will be put into circulation
upon the establishment of the Federal
reserve banks within the next few
weeks.
Under the Federal reserve bank act
each of the IL Federal reserve banks
will receive advances from the Fede-
raj reserve board in the form of Fede-
raj reserve notes, a distinctly new
sort of paper money, Commercial
paper will be the collateral advanced
by the various banks as security for
these notes.
Comptroller of the Currency Will
Jams has samples of this new paper
money now unds, consideration. At
his request, Joseph e. Ralph, direc-
tor of the bureau of engraving and
printing, prepared notes of So, $40,
$40, $50 and $100 denominations and
these have been submitted to Secre-
tary McAdoo. 1t is not likely, how
ever, that the samples will be official
ly accepted until the members of the
Federal reserve board have been
confirmed by the Senate and can con-
fer with Secretary McAdoo and Comp
troller Williams concerning the new
notes.
At present no official of the treasury
department is able to make any es-
Innate of the amount of Federal re-
serve notes which will probably be
put into circulation this year. Fede-
raj reserve banks are required under
the new law to keep gold reserves of
not less than forty per cent, against
Federal reserve notes in actual cir
on 10 hn n those
required by the Federal reserve
banks, will depend largely on the
amount of money required by mem
Der banks for the re-discounting of
commercial paper.
Last year at harvest time Secre-
tary McAdoo permitted banks in the
west and south to borrow money on
commercial paper and about $37, 000,-
900 was loaned. The immediate de-
mand for Federal reserve notes will
probably be far in excess of that sum,
as the harvest loans were limited to
the farming sections, while the en-
tire United States will draw on the
Federal reserve board for money TO
re-discount agricultural, industrial
and commercial paper. The money
for harvest emergencies was limited
to Is States and none Of it went TO
New York nd New England.
The new IS note submitted by Mr..
Ralph is typical of agriculture. The
portrait on the face of the note is
Lincolns and the back shows a har-
vesting machine and allegorical fig
ures typical of farming. The SO note
bears a portrait of Cleveland and a
manufacturing scene. The $40 bears
Jackson's portrait and is typical of
commerce, having a steamship. train
and other mediums of trade on the
back. Grants picture is shown on
the $50 note and F'ranklin's portrait
adorns the 800 bill. Both of these
larger bills are typical of the arts.
All the bills will be printed in green
ink on the back while black ink will
be used on the faces.
For some time the treasury depart
ment has been anxious to make all
paper money more uniform. At pres
ent different portraits appear on diff
ferent sorts of paper money of the
same denomination. 1t is likely that
the portraits selected for use on the
Federal reserve notes will also be
used on other paper money So, in