The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1916-02-14
'SlX amendments
TO BANKING G AgI
Systeln Has Proved Its Val
ue But Il Needs Strength
ening in It's Details.

WASfIINGT0N, Feb. IL. - Six
hrnendments to- the Federal Reserve
Act were recommended to Cong. ess to-
day ia the report Sof the Federal Re-
serve Board Tor the first full year of
operation 81 tie new banking system.
"a years experiment In the opera
ton Of fde Federal Reserve Act" says
lie rsporf thas confirmed the Board
81 its profound convict ion that the
Act fitS been one OF the most bench.
ciai pieces of legislat onseyer adopted
by Congress-. Not only have its fun
dnmenta prtnctpl les been fully yindi-
Gated but IN most a etatls the working
OF the measurcs has been successful.
The amendments recommended
Permit National banks to subscribe
and hold stock I'M banks organized for
the special purpose OF doing q panK-
ifiR tlisiness IN foreign countries.
Permit With pproval OF the
Board. tie iHBus Eederal reserve
notes TO Fed ral srye banks either
aga4nat the dep6 Of commercial pa
per Of gold, PROV tded that the goid. 20
denoSited shall count as part OF the
reduired reservef OF the bank;
Extend the acceptance system to
the domestic trade so far as IT relat tess
70 documentary acceptanees secuted
BY shipping documents Or warehouse
receipts, covering readily marketaplss
commoa mites or against the pledge Oh
gooda actually sold ,.,,.1,
Permit matt onal banks TO estannsn
branch ot.icesS within the city or coun-
~ ia witch they are located: -
Permit advances to member nanks
rEainsE the member banks; secur ts
nrornissory notes or. ia galnst tne ae-
posit Of pledge ofS T.. =. government
bondas ,,as..,.. a. .he
Authorize % wide discretion IN me
snaIS4nR of farm loans by national
hanks so that 9 Federal Reserve G 'sn1
might make per loans OF TINS kl Iaa
wtfhin q radius off one hundred ~ iss
81 its place off business whether IN lts
dlstrtet Or another district. ..,,a+
III gfbeliayed'" 4 says a report, that
t,,.s enrolment Of these amendments
vii, besides enlarging the: usefulness
~ TX fI,e national banks, result in great
" STRENGTHENING the operation OF sne
pieteiy realize the purposes OF its
me Hoard announces that it does
inf CONSIDER that &c can direct the BUS
s - 6neratfons 81 Federal Reserve
is s,siSs II respect to foreign loans. but
shfsf in function IFS to oversee these
f IN ,,j7ss A pIea q made in the report
sor Inc entrance into the system OF
,Sore stafe banks and trust companies.
Il, sneakfne 81 foreign borrowing IN
li,e fIfftad States the Board points
ut amt IL has received many 1nqulr-
,tsss nm tits sub ectEa and has given them
'.areftIl aftenti 6n.s 1T has reached the
roneIIisfon. III says support ted BY COM
oeteit festti ADV ice, y hat the purpose
Or Sslifch goods are sold or exporter,
n sfe iiss8to which such goods are
.titimateIy put does not fall WITHIN
ID province or inrtsdic tion:
tsifS the report adds, the transac'
inns SRhich have given rise to sucn
lbs al eiiipments are OF a true COM
meSeiaI nature; sc the basis upon
svi,ieh tfieysrest Is such ;as to comply
gith fhe reuuirements Of the Fede-al
iiaaarve Adj. and II the maturity OF
&c Joan fails Nj thin the Limitation OF
fSle Iaw. then the paper growing out
81 tfetli no matter by whom or Tor
whsf drawn, may twill be discounted
liz 3'sdefat Reseryeg Banks, and must
In reeaTded as falling within the le'
ris3nafe sphere OF their operations.
Tiss Bsederat Reserve Act makes no
nrogfsion Tor collateral bond or stock
loans of for the purchase OF foreign
Tovefnments bligations by reserve
lnskdtnfions. Neither such obligations,
fherefora, nor loans to member banks
based thereon, are igtble as invest
3 elfts Tor Federal Reserve Banks.
3fThe operati ion of the reserve sys-
tam II O mat OF business to be con-
Quoted ia accnrdanee With the terms
81 do Reserve Act and the regula-
finns 81 tho Board It iis not the prov
ifcs o. the Board to deal with prob
Ierne involving internatio relation.
rlains 81 thefu tied States, either for
10 purpoEo % rsstric elton OF extend
lnF e3noft6t Ions In one direction or
anoth6n Tho 0lis ibllity Of paper for
rea6ty0 banks iB determined by con.
eiiofA Iona VII oh arc 3Rb valid under
one SaS oe International relationships
nn nnokitSt3 the function ot passing
Il3nn ind dealing SiI1 such paper under
fasae taglalRt e1ss eiongs ito, the seY4
efaf FhseFke bRli kAl The Board how;
t4eF, Haiieges that the financing OF
Hfe ebilsttfsB expert trade ID ct the
Dfssent tIiae one lot the NEST impof.
kntit HhtAethl ipE9ptetHHsM ltl Wn1cnN tne
HSii6h Eds t6ad cal Aha 1t Is OF the
obInIah thAt Federal \ Reserve Banks
16 aflbti sHeh afEtheE would, avoid the
ffBb8hbibiilty bR aHsist inE ID the pro:
oesa ef tliaRhalhf what siegit imately
khd Bfebe sVeiT yes HPeR .themt" q
HRe ABafa eapf esBes regret that lh
sefl SUI b have been iHsti tated
ga kest fiia Wall itF kee tAa prey lsiens
81 tha Reserve ket { which Il may
SEaiIt CO. atlafs Bowers 4tg nd:
sbhhi BaAiEHS hnnguns ed Its lntentieh
Il haze m eeaAgel intervene In these
EASES ind Bat ~ that eveFy effort viii
BE- ta Have me HHestleH settled
M Che sApfa fAa 9eelfE 9at I'D early
aata. ak Id b9iAtsd cut that emily 80
hEhts hahk5B have been admitted to the
rSBt en- md b HERS have come la By
titiixeFsiB afit8i hat ghai banks.
lit 81 fe table Y eantia4es the re-
rfiFt, ttthAt dH net q few States Re-:
a1iVe feanifa aents Eef state banks
hfla lFiist esf 1iiesl haT Q been mater
IriiF lowered III 9les 1slatlye enactment
hilae Die tldHf et The Federal Re:
-