Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-01-07

United States and may issue currency
upon them. They may receive deposits
from member banks. They may redis-
count the paper of member banks. This
is a great change. Banks have been
slow to borrow money and reloan 1t
and have done so only with great dam
ger. From this feature, however, /
look for the most beneficial results.
May Buy and Sell.
They may buy and sell gold and
bills. Of exchange.
"A most importance power is that
which allows them to issue new money
in the form of federal reserve notes
which will circulate. rs money. There
is no limit to the amount they may is.
sue ana therein lies some danger OF
undue imitation. However, they must
deposit with the federal reserve agent
40 per cent Of the amount of their
notes In gold, 5 per cent Of which will
be kept In Washington to redeem the
notes at any time. and in addition
they must deposit Of their collateral an
amount equal to the total value Of the
notes. l hope and believe the law will
be 50 widely administered that we will
not incur any great danger in giving
this power.
Each bank has right to establish
branches. Some of these may be estab-
llshed in Iowa. I object, however, to
the right of the banks to get deposits in
competition with other banks. 1t will
interfere with their legitimate business
Capital But Small Part.
The capital is only a small part of
the money with which the banks will be
able to do business. The government
is to deposit all its free funds, amount
ing to nearly s200,0O0,0 900. in these
banks and after thirty-five months
each country bank is required to hold
only II per cent of its deposits in re-
serve. of which 1t may place per cent
in the reserve banks: banks in
reserve cities to hold only 10 per cent
in reserve with per cent in the federal
banks, and central reserve city banks
only IS per cent in reserve. with per
cent in federal banks. From these
deposits the federal banks will receive
100000 10 s5.000,000.
"A highly important part of the
measure is the creation of the federal
reserve board. 1t is to be composed of
the secretary of the treasury and the
controller of the currency and five
others. of whom at least two shall be
experts in banking They will draw
$4,000 a year each and have their Of
fees in Washington. Their power over
the banks Will be Of a general super
visory character They will have
power to negative the issuance Of
money and to require one federal re-
serve bank TO discount the paper of
another
Believes Wilson Is Right.
IF the right men are chosen for this
board 1t will exert a great influence in
governing our currency rightly. I be-
lieve the president Of the United States
a high minded patriotic citizen, an in
tellectual giant. devoted to the welfare
of the people. I have no doubt his ap-
pointments of the members of this
board will meet the approval Of the cit
liens of this country"
Il believe the country will experience
vast relief from this new measure. It's
objects are wide and necessary. So
long as the federal banks are admins
interest we will have made great ad-
vance.
Il did not vote for the measure be-
cause I wanted the stock to be sub
scribed for by the people and held in
small quantities by the citizens, not by
the banks, because believe the new in
situations ought 20 be controlled by the
people. I think that men appointed by
the people ought to be given the powe
to say how the reserves are to be used.
| l have never been able to give, my ad-
herence to legalizing combinations OF
any business for its own interest.
hope that history viii! prove have been
mistaken in my apprehension on this
account, and that the new institutions
! will work out to the MARTIAL advantage
and prosperity of the people"