Lakeland Evening Telegram Newspaper, December 23, 1913, Page 3

SIDENT T0 SIGN CURRENCY BILL TONIGHT (Continued from Page 1.) 1 board of directors of the re- aj reserve bank. he regional reserve banks may usiness only with their member- s, not with the public, except certain “‘open-market opera- L' such as the purchase and sale old, government or municipal s, and certain forms of bills of ange, are permitted. These s will make their earnings from oans made to member banks, and the purchase and sale of bonds foreign and domestic bills of ex- ge. ember-banks will be compelled to p in cash only one-half of their ription to the capital of the new s; the rest can be called for if ed by the regional bank. Divi- ¢ of 6 per cent will be paid on stock to the member-banks, and liock will be non-taxable. After dividends are paid, one-half of Lurplus net earnings goes to cre- s regional surplus fund, and L this has reached 40 per cent ¢ regional bank’s paid-in cap- these earnings are to go into nited States treasury. The bal- of the net earnings are to be di- i between the payment of a Unit- ates franchise tax, and the cre- b of a fund to guarantee the pay- of depositors in member-banksl may fail. ith the machinery thus created new banking system that is sun- entary to the commercial banks he country, the law provides for adual transfer of part of the reserves to these new ‘“reser- » panks. In order mnot to disturb ness conditions, or to withdraw suddenly the heavy deposits of try banks in the large cities, the Bl provides that two years may be imed in shifting these balances, that if necessary, part of the re- s transferred to the regional s may consist of commercial pa- he amount of reserve required every bank under the new law, the place where it must be kept, as follows: buntry banks: Total reserve re- ed, 12 per cent of demand depos- nd 5per cent of time deposits. .twelfth must be held in the 's own vaults; two-twelfth in regional reserve bank for the P . THE EVENING TELEGRA M, LAKELAND, FLA.,, DEC. 22, 1913. : twelfth each gjx months unti] it reaches five-twelfths, After two years the remaining three- -twelfth of the reserve must be kept either in the country bank’ s vaults, or in the regional reserve bank. Reserve city banks: Total rese TvVe required, 15 per cent of demand, and 5 per cent of time deposits. Six-fif- ‘teenth must be kept ip the bank's own vaults; three- fifteenths in the regional rese six months, increasing one-fifteenth cach six months untiy it reaches six- fifteenths, After two years, the re- maining three- -fifteenths of the re- serve must be kept either in the bank's own vaults or in the regional reserve bank, Central reserve city banks (New York, Chicago ang St. Louis): To- tal reserve required, 18 per cent of demand, and five per cent of time deposits. Six- -eighteenths must be tkept in the bank’s own vaults; three- elghteenths in the regional reserve bank for the first six months, and six-eighteenths thereafter, After six months the remaining six-eight- eenths may be kept in the bank'’s OWn vaults, or in the regional reserve bank. These immense funds of Teserves from ‘“member-banks,” together with government moneys, will make up the deposits of the regional reserve banks. Each of these banks will be administered by a board of nine di- rectors, six of whom will be elected by the banks, and three appointed by the federal reserve board. The regional reserve banks may re- discount that is buy at a discount from its members banks—“prime commercial paper,” when the mem- ber-banks desire to convert these as- sets into money. The exact terms of this important provision as to the character of paper upon which the regional reserve banks may furnish cash are as follows: “Upon the indorsement of any of its member-banks, with a waiver of demand notice and protest by such bank, any federal (regional) reserve bank may discount notes, drafts and bills of exchange arising out of ac- tual commercial transactions; that is, notes, drafts, and bills of exchange issued or drawn for agricultural, in- dustrial or commercial purposes, or the proceeds of which have been used, or are to be used, for such pur- poses, the federal reserve board to have the right to determine or de- fine the character of the paper thus eligible for discount, within the meaning of this act. “Nothing in this act contained rve bank for the first! Cut Price on All mas Goods »~ shall be construed to prohil it such notes, drafts and bills of exc,"anse, secured by staple agricultural Pro- ducts, or other goods. wares or m\’r' chandise from being eli gible such discount; but such defimtion) shall not include notes, drafts or bills | covering merely investments or is- sued or drawn for the purpose of car- rying or trading in stocks, bonds or'| other investment securities, except ; bonds and notes of the government 5 of the United States. ':'?: “Notes, drafts and bills admitted to discount under the terms of this paragraph must have a maturity at|é the time of discount of not more than 90 days: Provided, that notes, drafts and bills drawn or issued for agri- cultural purposes or based on live stock and having a maturity not ex- ceeding six months may be discount- ed in an amount to be limited to a! percentage of the capital of thej federal (regional) reserve bank, to be ascertained and fixed by the fed- eral reserve board.” L] The regional banks may also dis- count “‘acceptances based on the im- portation or exportation of domestic shipments of goods.” The new treasury notes, which are i bank, and a supply of the notes will be placed in his custody. Should a regional bank desire to ; pay out more money than its cash | resources will permit, the law pro- vides that it may put some of its re- ! discounted commercial paper into the | § hands of the ‘““federal reserve agent,” and receive in return the new treas- ury notes. For each note that it puts out into circulation, the region- | al reserve bank must set aside in gold | 40 per cent of the value of the note, | % as a guarantee for {its redemption. | This gold with the commercial paper (g held by the “federal reserve agent,” is the protection behind the mew money; but these notes will also be guaranteed by the government, and may be redeemed in gold at the Unit- ed States treasury. to furnish the ‘“elastic” element in the currency system, and to add to Each regional bank, under the act, must keep a reserve of 35 per cent f 3 & H ,;‘-N = z { % SPECIAL PATTERN PICTORIAL REVIEW The ““Minaret”’ Lady Doll FREE! We will give a pattern of this beautiful doll's dress to every child that calls at our Pattern Department,accompanied byan adult, during the coming week. the country’s circulating money in time of need, will come into use in the following way: The notes will be printed by the government, with a distinctive style for each regional reserve bank. One of the three directors named by the federal reserve board for each re- gional bank will be known as the “federal reserve agent” for that Get one for your little girl to-day. It's FREE. / 1y va M) u\ ) \ In addition to this free pat- tern, we have an extensive assortment of PICTORIAL REVIEW DOLL PATTERNS in all styles and sizes at our Pattern Counter. / Merry Chrlstmas and a Happy New Year to You All | THANK YOU BATES WW*W%WM (Continued on Page 4.) six months, increasing one- 7 o T T T e T Vel Tal YT Nal NaT N TN TR LTS e SR CENOE N R R Y g N ar Y kg N AT gt Yul TuT Yl al Sul 2elT XTI L 2] L=y s el Your Opportunity z VPV N G T VT AT N T Ny E AT T NI WE RO VT X E AR A K YR g D QEB RO BB KL OO R A A T O e b 1o NaE N E Ny Xy ‘ N order to give the young men and women, the boys and girls of Lakeland, whoflwork for wages, and : others of limited means, a chance to profit by the splendid opportunities for making money by invest. ' ing in Lakeland Real Estate: -which has proven in the past better than Government Bonds:-we will for a ; @ 3 | " | ‘ limited time, sell lots in SLOAN PARK, the new and beautiful Subdivision, bordering Lake Beulah th st, and along the National Highway, now being built between Lakeland and Tampa, property which is certain to enhance e we é : i 1 the very liberal terms of ten per cent. cash, balance in easy moathly or quarterly installments. Don’t miss this in value, on v ‘ tunity, but take our advice and buy now. Itis said that every one has at least one opportunity ; but, alas, so many don't 3 opportunity, them when they come. Many of the great fortunes of the country were made by investing in Real Estate. Don’t wait to recognize the b lay b iderable money before you buy, but buy now ; it will help you save your earnings, and increase théem by making money ' ay by conside for you while you sleep. ‘ Jakes many a time. when ther ; ful little City, and will stake our reputation for good judgment on statement thatno better opportunity has been offered the ‘ beautiful little City, People Of Lakeland to make n | 1 | rovemen here ally lov L])’ S(.Ctl()n shall be one of ]4«11{(.13.!1(1 s most de sirable Residence Sec. b e arc (16{(.!'1]]11’1(,(1 that this natura y : prov ts there. W We were one of the very first settlers of Lakeland, tramped over its hills and drank from our clear water e was nothing here but the handiwork of nature. 'We have watched the marvelous growth of our toney on suburban Real Fstate than is offered in this Subdivision. We are going to make many im_ . ti You can share in profits which are certain to result from our efforts. ions. 8 ) D. H. SLOAN position to fill all orders for Ford Cars promptly. We have recently received eighteen We are now in B T Cars, and while most of these are already sold and delivered. we have eighteen mork to arrive ouring ¢ few days, with several carloads more to follow. Lakeland Automobile-and Supply Co. Tires, Tubes, Prest-O-Lite Tanks, in fact a general line of Automobile Supplies. in nex Dealers in Automobiles, m@n «l-m«s-« FPAPOPQOFDPOPAPDBOF PO PTRPRE S GO E