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Monetary MISCELLANY • a 20 PER CENT. NB 2 MONO. SEC. A BILL To incorporate the National Reserve Association of thc United States.r---_ s c. Charter Capital. and IA cation. Sec. 2. Membership. amount of capital lc, be subscribLd by each bank, and amount required to be paid in. Organization committee: . Se -. Sec. 4. Location of; branCh6i and the division of country into districts. Sec. 5. Organization of local associations. Sec. 6. Election of directors by local associations. Sec. 7. Election of directors by branch associations. Sec. 8. Directors of the National Reserve Association. Sec. 9. Appointment of officers of the National Reserve Association Sec. ro. Organization papers of the National Reserve Association. Sec. ii. Articles of association of the National Reserve Association. Sec. 12. Organization certificate of the National Reserve Association. See. 13. Ownership of stock in the National Reserve Association: Increasc and reduction of capital. Sec. 4. Exemption from local and State taxation. Sec. 15. Executive committee of the National Reserve Association Sec. 16. Auditing committee. Sec. 17. Executive officers of branches. Sec. 18. Executive officers of local associations. Sec. 19. List of sharehoHers. 0(,fTv _ „ •mf.i TA 14 AND LC/CATION. „ A. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the National Reserve Association of the United States be, and it is hereby, created and established for a term of fifty years from the date of the execution of its organization certificate with an authorized capital equal in amount to twenty per centum of the paid-in and unimpaired capital of all banks eligible for membership in said National Reserve Association. Before the said association shall be authorized to commence business, two hundred million dollars of the capital stock shall be subscribed and one hundred million dollars of the capital stock shall he paid in cash. The capital stock of said association shall be divided into shares of one hundred dollars each. The capital stock may be increased from time to time as ubscribing banks increase their cap tal or as additional banks become subscribers or may be decreased as subscribing banks reduce their capital or leave the association by liquidation. The head office of the National f(c:,erve, .\, ,smiation shall be located in Washington, in the District of Columbia. NIUMBERS11/13. SEC. 2. All national banks, and all banks stXtrust companies chartered by the .law's of any State of the United States or of the District.of Columbia, complying with the requirements for memberihip in the said National Reserve .Association, hereinafter set forth, *ma)E subscribe to its capital to an amoun4 equal to twenty per centum of the paid-in and unimpaired capital of the subscribing bank, and not more nor less; and each of such subscribing banks shall become a member of a local association as hereinafter provided. Fifty per centum of the subscriptions to the capital of the National Reserve Association shall be fully..." paid in; the balance of the subscriptionsiwill remain a liability of the subscribers. subject to call and navinent r tne.saici National Keserve requirements for membecoMp in to its Association, hereinafter "set forth, ma? subscribe of the capital to an amou$ equal to twenty per centum bank, paid-in and unimpaired capital of the subscribing g banks and not more nor less; and each of such subscribin nafter shall become a member of a local association as herei to the provided. Fifty per cent= of the subscriptions iv be fully,., capital of the National Reserve Association shall remain a paid in; the balance of the subscriptions will payment liability of the subscribers, subject to cal and s of the thereof whenever necessary to meet the obligation and in National Reserve Association under such terms tors direc accordance with such regulations as the board of of the National Reserve Association max' prescribe. A bank or trust company which is incorporated under the laws of any State may become a member of a local in; association and have all the rights and privileges there provided: First. That (a) if a bank, it shall have a paid-in and unimpaired capital of not less than that required for a national bank in the same place; and that (b) if a trust company, it shall have an unimpaired surplus of not less in than twenty per centum of its capital, and if located s a place having a population of`Lfifty thousand inhabitant or less shall have a paid-in and unimpaired capital of not less than one hundred thousand dollars; if located in a city s having a population of more than fifty thousand inhabitant ,, and not more than two hundred thousand inhabitant shall have a paid-in and unimpaired capital of not lcss than two hundred thousand dollars; if located in a city having a population of more than two hundred thousand inhabitants and not more than three hundred thousand inhabitants shall have a paid-in and unimpaired capital of not less than three hundred thousand dollars; if located in a city having a population of more than three hundred thousand inhabitants and not more than four hundred thousand inhabitants shall have a paid in and unimpaired capital of not less than four hundred thousand dollars; if located in a. city having a population of more than four hundred thousand inhabitants shall have a paid-in and unimpaired capital of not less than five hundred .4 thousand dollars. r ( ttrat AN Le( ; • . • 20 PER CENT. I • • . NB 3 NoTY PE SECTION Second. That it shall have and agree to maintain against its demand deposits a reserve of like character and proportion to that required by law of a national bank in the same location: Provided, however, That deposits which it may have with any subscribing national bank, State bank, or trust company in a city designated in the national banking laws as a reserve city or a central reserve city shall count as reserve in like manner and to the same extent as similar deposits of a natio nal bank with national banks in such cities. Third. That it shall have and agree to maintain against all other classes of deposits the percentages of reser ve required by this act. Fourth. That it shall agree to submit to such examinations and to make such reports as are required by law and to comply with the requirements and conditions imposed by this act and regulations made in conformity therewith. The words "subscribing banks" when used hereafter in this act shall be understood to refer to such national banks, and banks or trust companies chartered by the laws of any State of the United States or of the District of Columbia, as shall comply with the requirements for membership hereinbefore defined. LII4GANIZATION COMMITTEE,., look, 1140 : , •4 Sic. 3. The Secretary of the Treasuryete Secretary of Commerce and Labor, .niki the Comptroller of the Curreuey are hereby designated a committee to effect the preliminary organization of the National Reserve Association, and the necessary expenses of said committee shall beAfeici-outsaLaalafraterrer-ith.41iii-Tveafteielter wiao.optmistoriettioi, upon vouchers approved by the +Whew members of said committee, and the Treasury shall be reimbursed by the National Reserve Association to the full amount paid out therefor. Within sixty days after the passage of this act said committee shall provide for the opening of books for subscriptions to the capital stock of said National Reserve Association iwougio.pietwoordiMOPPRIiiimitttorimr.defoirvertrBefore the subscription of any bank to the capital stock of the National Reserve Association shall be accepted, said bank shall file with the organization committee or with the National Reserve Association a certified copy of a resolution adopted by the board of directors of said bank accepting all the provisions and liabilities imposed by this act and authorizing the president or cashier of said bank to subscribe for said stock. LOC.ITLWI oF BRANCHES AND DIVISION or THE COUNTRY INTO DISTRICTS. SEc. 4. When the subscriptions to the capital stock of the National Reserve Association shall amount to the sum of two hundred millions of dollars the organization committee hereinbefore provided shall forthwith proceed to select fifteen cities in the United States for the location of the branches of said National Reserve Association: Provided, That one branch shall be located in the New England States, including the States of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut; two branches in the Eastern States, including the States of New York, New Jersey, Pennsylvania, and Delaware; four branches in the Southern States, including the States of vided, That one branch shall be located in the New shire, States, including the States of Maine, New Hamp cut; Vermont, Massachusetts, Rhode Island, and Connecti States of two branches in the Eastern States, including the ; four New York, New Jersey, Pennsylvania, and Delaware of branches in the Southern States, including the States h Maryland, Virginia, West Virginia, North Carolina, Sout sCarolina, Georgia, Florida, Alabama, Mississippi, Loui Id -.0 iana, Texas, Arkansas, Kentucky, Tennessee, and le the District of Columbia; four branches in the Midd ana, Western States, including the States of Ohio, Indi and Illinois, Michigan, Wisconsin, Minnesota, Iowa, Pacific Missouri; four branches in the Western and h States, including the States of North Dakota, Sout , Dakota, Nebraska, Kansas, Montana, Wyoming, Colorado , New Mexico, Oklahoma, Washington, Oregon, California Idaho, Utah, Nevada, and Arizona. When the cities in which the branches are to be located have been selected the organization committee shall forth with divide the entire country into fifteen districts, with each one branch of the National Reserve Association in • district. The districts may be readjuste(Q-om time to ti14and new districts and new branches maybe created by the directors of the National Reserve Association. oRGANumrrow --nr-LOCAt -ASSOCIATIONS. ict shall SEC. 5. All subscribing banks within a distr organgroup themselves, subject to the approval of the atitrn, ization committee er—t4e--14ftthiettel'44€3CFVC Assed with an into local associations of not less than ten banks, of aggregate capital and surplus of at least five millions Provided, dollars, for the purposes hereinafter prescribed: in each 413.1177--ritipromil that the territory comprised the association shall be contiguous: Provided further, That a ng territory included in the local associations comprisi in said district shall be so apportioned that every bank of some district shall be located within the boundaries every sublocal association: And provided further, That local scribing bank shall become a member only of the association of the territory in which it is situated. usted The local associations in each district may be readj created from time to time and new af,sociationl, may be the by the directors of the branch of said district with approval of the National Reserve Association. 400/ \A", il 744.41 ktzt %wt., • 20 PER CENT. tt, 4 N B MONOTYPE SECTION The members of the local association shall :join in articles of association, haying been first authorized to do so bv resol banks uti3n ..,of & board of directors of each of the member y fliese articles shall provide that the board of dirQctors of the local association shall be authorized to disonnt Or rediscount paper for any member thereof and to offer such paper for rediscount with the branch of the National Reserve Association for that district, the gain or profit accruing to the local associatio n from said transactions to he distributed from time to time, after the pa vnient of all expenses, among the several banks of the local association in proportion to the ratio which their capital and surplus bears to the aggre gate capital and snrphis of the m in')ers of the local associatio n. In the event that Lae expenses shall exceed the earnings or that any losses shall occur t on any of the pape r so rediscounftd, the scveral bank composing the local assodation shall bear said expc.iss and losses in propo rtion to the ratio to Nvhich their capital and surplus bears to the aggregate capital and sTirpli:s of the members of the local associo.tion, and the- cli:-e:._•to;s of theviocal assoc iations shall be a:Ithorized by the articlf associatio n to levy an assessnmlt for these pu-.),ogs. The total amou nt of rediscounts by a. local • NN ith the National Reserve Associa i-cv,)t at any time exceed the aggregate capital and plus of the banks forming such local associati6n. T ese articles, which must be appr oved by . the board ois Oreetors of the National Reserve Ass°dation, shall be exis,cutryl in triplicate, and one copy, together v,ith the ctsstified cotY,of the resolutions of the boards of directors authorizing the subscribing bank s to sign them, shall be filed v,ith the National Reser ve Association, one copy shall be filed with the branch association, and one copy shall lv L uimed by Ow association. Upon thirty days' notice in writing to each member bank the articles of L.L!-•,ociation al the local association may be amended by a vote of three-fourths of the member banks by and with the approval of the National Reserve Association and in like manner as to vote and approval the local association 111aV assume and exercise such of the powers and functions of a clearing house as are not inconsistent with the purpoes of this act. The National Reserve Association may equire any local association to perform such services n facilitating the domestic exchanges of the Nationa •Zeserye Association as the public interests may requir A local association may bv a vote of two-thirds of the members, suspend a baifk from the privilege of membership for a failure for thirty days to maintain its reserves, or to make the reports required by this act, or for misrepresentation in any report or examination as to its condition, or as to the character or extent of its assets or liabilities, or for failure or for refusal for thirty days to comply with any of the provisions of this act. A suspension from a local association shall operate as a .suspension from the privileges of the National Reserve Association. ,f rtl7fieTh+f+-tir- MitlieT4I+RtW LOC1 ASS4X2IATI4)ti5. :inc. 6. Each local association shall have a board of directors, the number to be determined lw the by-lawq ( to comply with any of the provisions of this act. A suvension from a local association shall operate as a .suspension from the privileges of the National Reserve Association. KETHe-T-10141-0P-1/titeeT-414ii tOCA t, ASSOCI-ATI0NS. SEC. 6. Each local association shall have a board of directors, the number to be determined by the by-laws of the local association. Three-fifths of that number shall be elected by ballot cast by the representatives of the banks that are members of the local association, each bank haying one representative and each representative one vol e for each of the positions to he filled without reference to the number of shares which the bank holds in the National Reserve Association. Two-fifths of the whole number of directors of the local association shall be elected by these same representatives of the several banks that are members of the association, hut in voting for these additional directors each representative shall be entitled to as many votes as the bank which he represents holds shares in the National Reserve Association. In neither case shall voting by proxies be allowed. The authorized representatives of a hank, as herein provided, must be either the president, vice president, or cashier of the bank he represents. Each director when appointed or elected shall take an oath that he will, so far as the duty devolves upon him, diligently and honestly administer the affairs of such association and will not knowingly violate or willingly permit to be violated any of the provisions of this act. The directors originally elected shall hold office until the second Tuesday in February immediately following their election, and thereafter the directors shall be elected annually on that date and shall hold office for thy term of one year. The board of directors of the local association shall have authority to make by-laws, not inconsistent with law, subject to the approval of the directors of the National Reserve Association. ELECTION OF MRECTORS BY BRA N CII ASSOCIATIONS. SEC. 7. Each of the branches of the National Reserve Association shall have a board of directors, the number, not less than twelve, to be fixed by the by-laws of the branch. These directors shall be elected in the following manner: he boar of each local association shall elect by ballot a voting rep esentative or proxy holder. One-half of the directors of the branch shall be elected by the vote of such representatives, each representative having one vote for each of the positions to be filled, without reference to the number of shares which the bank composing the association which he represents holds in the National Reserve • 20 PER CENT. -741riq777.1;Mr.:''' B err MONO. SEC up..w . . „ .11,-• • PrIMT" ALT-734 Association. One-third of the directors shall be elected by the same voting representatives or proxy holders, but each voting representative at this election shall have a numb er of votes equal to the number of shares in the Nati onal Reserve Association held by all the banks composin g the local association which he represents. The remainin g onesixth of the directors shall be chosen by the direc tors already elected_iind At_q fairly represent the industrial , tnCr LTTim anda,l agricultural, and other interests of the _erci diss all not be officers or, while serving,"directors of banks, trust companies, insurance companies, or other financial institutions. The manager of the branch shall be ex-officio a member of the board of directors of the branch --dna shall be chairman of the board. Each director when appointed or elected shall take an oath that he will, so far as the duty devolves upon him, diligently and honestly administer the affairs of such asso ciation and will not knowingly violat.: or willingly perm it to be violated any of the provisions of this act. All the meinlIcrs of the board of directors of the bran ch except the ex officio member shall at the first meet ing of the board be divided into three classes. One-third of the directors shall hold office until the first Tuesday in Marc h immediately following the election; one-third of the directors shall hold office for an additi()nal period of one vear after the first Tuesday in March innnediati'ly follo wing' the election; the remaining one-third of the directors shalt hold office for an additional period of two Years after the first Tuesday in March immediately following the elect ion. All elections shall be held on t1V tiis. Tuesday in Marc h of each year, and after the first election all directors shall be elected for a term of three \rcars. The board of directors of the branch shall have authority to make by-laws, not inconsistent with law, subject to the approval of the National Reserve Association. la/RECTORS, CIF THE N:ATLON.V.___RESERVE ASSOCIATION, SEC. 8. The National Reserve Association shall have a board of directors, to be chosen in the following manner: First. Fifteen directors shall be elected, one by the board of directors of each branch of the National Reserve Association. In case the number of districts shall be increased hereafter, each additional district shall be entitled to elect an additional director. Second. Fifteen directors shall be elected, one by the board of directors of each branch of the Nv.tional Rese rve Association, who shall fairly represent the industrial, commercial, agricultural, and other interests of the coun try, and who shall not be officers 411Pbooke ior, whil e serving, directors of banks, trust companies, insurance comp anies, or other financial institutions. In case the number of districts shall be increased hereafter, each addi tional district shall be entitled to elect an additional direc tor of this class. Third. Nine directors shall be elected by voting representatives of the various districts, each of whom shall cast a number of votes equal to the number of shares in the National Reserve Association held by the banks in the district which he represents. Not more than one of these directors shall be chosen from one district. Fourth. There shall be seven ex officio members of the board, namely: The governor of the National Reserve Association, who shall he chairman of the boar d, two deputy governors of the National Reserve Association, the Secretary of the Treasury, the Secretary of Agriculture, 7 .44L, • as 41•1.4•&41.1167.41 VA • so sa.:a a.:44 11.14:11 Lk" Lill: 1114 AAL11,1111 JI 114.1.1 40, &AI .II% National Reserve Association held by the banks in the district which he represents. Not more than one of these directors shall be chosen from one district. Fourth. There shall be seven ex officio members of the board, namely: The governor of the National Reserve Association, who shall he chairman of the board, two deputy governors of the National Reserve Association, the Secretary of the Treasury, the Secretary of Agriculture, the Secretary of Commerce and Labor, and the Comptroller of the Currency. All the members of the board, except the ex officio members, shall at the first meeting of the hoard be divided into three classes. One-third of the directors shall hold office until the first Tuesday in April immediately follow,ing the election; one-third of the directors shall hold office for an additional period of one Year after the first Tuesday in April immediately following the election; the remaining one-third of the directors shall hold office for an additional period of two yel,rs Lfier the fir-;t 'Iuciday in April immediately following the election. All election, shAl he held on the first Tuesday in April of ccf- h year, and after the first election all directors shall be elected for a term of three Years. Each director shall take an oath that he will, so far as the duty devolves upon him, diligntly and honestly administer the affairs of such association and will not knowingly violate or willingly permit to be violated any of the provisions of this act. The hoard of directors of the National Reserve Association shall have authority to make by-laws, not incon.sistent with law, which shall prescribe the manner in which the business shall be conducted and the privileges granted to it by law exercised and enjoyed. APPOINTMENT OF OFFICERS OF THE NATIONAL RESERVE ASSOCIATION. SEC. 9. The governor of the National Reserve Association shall be selected by the President of the United States from a list of not less than three submitted to him by the board of directors of said association. The person so selected shall thereupon be appointed by the said board as governor of the National Reserve Association for a term of ten years, subject to removal for cause by a two-thirds vote of the board. There shall be two deputy governors, to be elected by the board, for a term of seven years, subject to removal for cause by a majority vote of the board. The two deputies first elected shall serve for terms of four years and seven years, respectively. In the absence of the governor or his inability to act the deputy who is senior in point of service shall act as governor. The board of directrrs shall have authority to appoint such other officers as may be provided for by the by-laws. "lagel c71:-4 --hi- 471 te-4-itw • • 16 20 PER CENT. NB 6 MONOTYPE SECTION OFICrAN.UATION PAP€RS OF THE NATIONAL CIATION. RESERVE ASSO- SEC. to. When the board of directors of the National Reserve Association is duly organized it shall call upon' the subscribing banks for a payment of fifty per centum on the amount of their subscriptions to the capital stocki of the association. When one hundred millions of dollarsof such capital have been paid in the board of directors shall at once proceed to execute and file with the Comptroller of the Currency articles of association and an organization certificate as hereinafter provided. ( - ARTICLES OF ASSOCIATION OF THE NATIONAL RESERVE ASSOCIAtION. SEC. ii. The articles of association shall specify in general terrns the object for which the National Reserve Association is formed and shall contain such other provisions, not inconsistent with law, as the association may see fit to adopt for the regulation of its business and the conduct of its affairs. These articles shall be signed in duplicate by at least three-fourths of the directors of the National Reserve Association, one copy being retained by the National Reserve Association and the other filed with the Comptroller of the Currency. These articles may be amended at any time by the vote of three-fourths of the board of directors, a copy of the amendment to be filed with the Comptroller of the Currency. ORGANIZATION CERTIFICATE OF THE NATIONAL RESERVE ASSOCIATION. SEC. 12. The organization certificate shall be executed by the directors of the National Reserve Association and shall specifically state: First. .;I:fie title of said association. Second That its head office shall he located at Washington, in the District of Columbia. 'Third. The amount of capital stock and the number of shares into which the same is to be divided. Fourth. The title and location of each bank holding stock in said association and the number of shares held by each and the amount paid thereon, which must in no case be less than fifty per centurn of the amount of the capital stock subscribed for by said bank. Fifth. The fact that the certificate is made to enable such association to avail itself of the advantages of this act. The organization certificate shall be signed by ai least three-fourths of the directors of the National Reserve Association and acknowledged before a judge of a court of record or a notary public, and shall be so executed and acknowledged in duplicate, authenticated by the seal of such court or notary, one copy to be retained for the „files of the association and one copy forwarded to the Comptroller of the Currency. OWNERSHIP OF STOCK IN THE NATIONAL RESERVE ASSOCIA• .110N, INCREASE AND REDUCTION OF CAPITAL.. SEC. 13. Shares of the capital'.If the National Reserve Association shall not be transferable, and under no circumstances shall they belowned otherwise than by the subscribing banks, nor may they be owned by any bank other than in the proportion herein provided. In case a subscribing bank increases its capital it shall thereupon subscribe for an additional amount of the capital of the National Reserve Association equal to twenty per centum of the bank's increase of capital, paying therefor its then book value as shown by the last published statement of . 1• 4 • r ' ..440, ,, • • •;In 1 1 Jar 1li.i2Dalka tJW, ...a- .01, . 110N, INCREASR. AND RDUCT0 ON OP CAPITAL. tt # rve SEC. 13. Shares of the capital - of the National Rese r no cirAssociation shall not be transferable, and unde by the cumstances shall they belOwned otherwise than bank subscribing banks, nor may they be owned by any . In case other than in the proportion herein provided thereupon a subscribing bank increases its capital it shall al of the subscribe for an additional amount of the capit centum National Reserve Association equal to twenty per for its then of the bank's increase of capital, paying there ement of book value as shown by the last published stat ership in said association. A bank applying for memb after its the National Reserve Association at any time capital formation must subscribe for an amount of the um of the of said association equal to twenty per cent for its thea capital of said subscribing bank, paying there statement of book value as shown by the last published National said association. When the capital of the account Reserve Association has been increased either on association of the increase of capital of the banks in said ip of said or on account of the increase in the membersh exccuSe association, the board of directors shall make and amount a certificate showing said increase in capital, the shall be , paid in and by whom paid._ This certificate -4--court of reeerd .er a ackungriedged:rael Comp notetry-public -a4441.44ta41-14e filed in the office of the g bank troller of the Currency. In case a subscribin onate reduces its capital it shall surrender a proporti iation, 'aniount of its holdings in the capital of said assoc shall and if a bank goes into voluntary liquidation it iasurrender all of its holdings of the capital of said assoc and the tion. The shares surrendered shall be canceled l to bank shall receive in payment therefor a sum equa d their then book value as shown by the last publishe statement of said association. If any member of the National Reserve Association the hall become insolvent and a receiver be appointed, and stock held by it in the association shall be canceled the balance, after paying all debts due by such insolvent red bank to the association (such debts being hereby decla ver to be a first lien upon the\'stock),shall be paid to the recei of the insolvent bank. Whenever the capital stock of the National Reserve n Association is reduced, either on account of the reductio n in capital of members of the association or the liquidatio shall or insolvency of any member, the board of directors tion of make and execute a certificate showing such reduc capital stock and the amount repaid to each bank. This t a c,:::.ificate shall be iftelmewleelgertivtewe a judge of cour in Cle office t.....,...„-ei-recota of-6, riV:17-intblievoodt-fh,44-bc filed i f of the Comptroller of the Currency. A II r; E 4 , Arv\,, 20 PER CENT. ° , r,..• *.t 6.. 1 41' ,1 .•.• ••ftialr 7 MONO. NB SEC. imiltaimi E...(E1111'TIoN PROM LOCAL AND STATE TAXATIoN. SEC. f5. Th.' National Reserve Association and its branches and the local associations shall be exempt from local and State taxation except in respect to taxes upon real estate. EXECUTIVE COMMITTEE Or THE NAT1oNAI4 RESERNT ASSOCIATION. Sgc. 15. The directors of the National Reserve Association shall annually elect from their number an executive committee and such other committees as the by-laws of the National Reserve A.sociation may provide. The executive committee shall consist of nine members, of ‘vhich. the governor of the National Reserve Association shall be ex officio chairman and the two deputies and the Comptroller of the Currency ex officio members, but not more than one of the elected members shall be chosen from any one district. The executive committee shall have all the authority which is vested in the board of directors, except such as may be specifically delegated by the board to other committees or to the executive officers, or such as may be specifically reserved or retained by the board. V c/f,. AUALTi-NG CommiTTElt.. 0,.- 101,e1 ;1( XintvA4 1 41 A.A# a/14- Awl?4tti.v4 Sgc. 16. There shall be au_auditiug...4xonunittee elected annually by the board of directors from among their number, excluding the members of the executive committee, of which the Secretary of the Treasury shall be ex officio chairman. It shall be the duty of this coittmittOe to-audit the- hooks of the National Reserve Association and of the branches and to make a public repent of the result of such audit at least once a year. IOLUeernfit OrPICKRS OF BRANCHES. SEC. 17. Each branch shall have a manager and a deputy manager appointed from the district by the governor of the National Reserve Association with the approval of the executive committee and subject to removal at any time by the same authority. The powers and duties and -length of-service of the manager and deputy manager and of the various committees of the branches shall be prescribed by the by-laws of the National Reserve Association. -- EXECUTIVE OFFICERS OF LOCAI, ASSOCIATIONS. SEC. 18. The directors of each local association shall annually elect from their number a president, a vice president, and an executive committee, whose powers and duties aluiPtiersuiraf-0234e shall be determined by the bylaws of the local association, subject, however, to the provisions of this act. usTs J rlivAAiLeAd OP SHARRIMI,DERs. SEC. 19. The National Reserve Association shall cause to be kept at all times, at the head office of the association, a full and correct list of the names of the banks owning stock in the association and the number of shares held by each. Such list shall be subject to the inspection of all the shareholders and creditors of the association, and a copy thereof on the first Monday of July of each year, -verified -17y the-esti, of the-governor or deputy-fillAgeffler, shall be transmitted to the Comptroller of the Currency. ••I 7 1..411./..4 ' 'a • ".?XtAf . 4 • • •• .8 NB 4. MONO. SEC. - KARN-1=S----A ND DIVIDENDS. -L--------, ... ___ ,...... SEC. 2 ..Thr earnings of the National Reserve Associatio lall'. beetti.Afthote+1, in the following manner. ' After the payment of all expenses and taxes the shareholders shall be entitled to receive annually four per centum orlilhe paid-in capital, which minimum dividend /Shall be eumulati;e'A Further net earnings shall be divided, one-half to go to the surplus fund of the National Reserve Association until said fund shall amount to twenty per centum of the paid-in capital,-orw4o4F+11-4-erge 4.ertiturid Sit-a+eti, and one-fourth to the shareholders, but when the shareholders' dividends shall amount to five per centmn per annum on paid-in capital they shall receive no additional dividends. , After the shareholders receive five per centum on the paid-in capital the net earnings shall then be divided, one-halt to be added to the surplus fund of the.National Reserve Association and one-half to go to the United State' After the shareholders reCeive five per entinn per annum on paid-in capital and the surplus fund of the National Reserve Association amounts td twenty per centwn of the paid in capital, ) one-half of/the net earnings shall go to the United Statesi and one-hdlf to the contingeqt fund, which fund shall be maintained at an amount eq1al to one per centurn of the paid-in capital, but not to e. cced iu any event two million dollars, and shall be us 4d to meeti\rlosses;id sucTi . fund shall upon the final issolution of the National . Reserve Association go to tic United States, and shall ' not under any circumstances be included in the book value of the stock, or go to the shareholders. Whenever and so long as the contingent fund shall remain unimpaired all excess earnings shafl go to the United States. ) -€44RIACIRA1E POWERS Or Ilin NATIONAL, RESERVE S,SCICIATION. As al IA, fj SEC. 2 1 . Upon duly making and filing articles of as) 1,424 sociation and an organization certificate the National )f4 1• 1• Reserve Association shall become as from the date of the execution of its organization certificate a body corporate and as such and by that name shall have power— First. To adopt and use a corporate seal. 447)\-• , Second. To have succession for a period of fifty years v. from the date of its organization. Third. To make contracts. 41444 ift4/A`ttiv"r. Fourth. To sue and be sued, complain and defend, in any court of law and equity, as fully as natural persons. Fifth. To elect or appoint directors and officers in the 441; 4‘) 1 „LAT manner hereinbefore provided, define their, duties, rw,t. quire bonds of them, and fix the penalty thereof. `t-It4k k. a f Sixth. To prescribe by its board of directors by-laws not inconsistent with this act, regulating the manner in afv\X M-dt4e2/ which its property shall be transferred, its general busi40+4,i/f*A°1-11. ness conducted, and the privileges granted to it by law ; r.te ex:rcised and enjoyed. et), ' oh4/1A41 (ft • 14 Seventh. To exercise by its board of directors or duly authorized officers or agents, subject to law, all powers and privileges conferred by this act. ---ftttAlt-ANTTErn. ASSOCIATION. Any member of a local association may apply association for a guaranty .of the commercial to such 4r• rr.ei;c.,,,••••• cif the hrsIneh of the SEC. 22. 40.1.• . '• Seventh. To exercise by its board of directors or duly authcrized officers or agents, subject to law, all powers and privileges conferred by this act. -ftt'ARANTrEs OF LOCAL ASSOCIATION. SEC. 22. Any member of a local association may apply to such association for a guaranty 'of the commercial paper which it cksires to rediscount at the branch of the National Reserve Association in its district. Any such bank receiving a guaranty from a local association shall pay a commission to the, local association, to be fixed in each case by its hoard of director-. The guaranty of the local association, in the event of loss, shall he met by the member:i of the local association in proportion to the ratio which their capital and surplus bears to the aggregate capital and surplus of the members of the local association, and the commission received for such guaranty, after the payment of expenses and possible losses, shall be distributed among the several banks of the local association in the same proportion. A local association shall have authority to require security from any bank offering paper for guaranty, or it may decline to grant the application. The total amount of guaranties by a local association to the National Reserve Association shall not at any time exceed the aggregate capital and surplus of the banks forming the guaranteeing association. itovSE. Any local association may by a vote of threefourths of its members and with the approval of the National Reserve Association, assume and exercise such of the powers and functions of a clearing house as are not inconsistent with the purposes of this act. The National Reserve Association may require any local association to perform such services in facilitating the domestic exchanges of the Reserve Association as the public interests may require. SfiC. 23. -"SrSPENSION. SEC. 24. 44-tarm-thirds --- suspend a bank from the privileges of membership for a failure for thirty days to maintain its reserves, or to make the reports required by this act, or for misrepresentation in any report or examination as to its condition or as to the character or extent of its assets or liabilities. PRIVILeGES OF SUBSCRIBING BANKS. SEc. 25. All of the privileges and advantages of the National Reserve Association shall be equitably extended to every bank of any of the classes herein defined which shall subscribe to its proportion of the capital of the National .Reserve Association and shall otherwise conform to the requirements of this act. giNB MONO. SEC. GOVERNMENT OF THE UNITED STATES AND BANKS OWNING STOCK TO He SOLE DEPOSITORS. SEc. 26. The Government of the United States and banks owning stock in the National Reserve Association shall be the only depositors in said association. All domestic transactions of the National Reserve Association shall be confined to the Government and the subscribing banks, with the exception of the purchase or sale of Government or State securities or securities of foreign governments or of gold soin or bullion. (0,44 1 RESERVE ASSOCIATION FISCAL AGENT OF THE -.4CoVERNMENT. SEC. 27.AThe Government of the United States shall 6(ttt- deposit its general funds with the National Reserve Association, and thereafter all receipts of the Government shall be deposited with the National Reserve Association. All disbursements by the Government shall be made through the National Reserve Association. 'T. ON DEPOSITS. SEC. 28. The National Reserve Association shall pay no interest on deposits. EXCHANGE ARISING OUT OF COMMERCIAL TRANSACTIONS FOR SUBSCRIBING BANKS. DISCOUNTS OF BILLS OF SEC. 29. The National Reserve Associatio may rediscount for and with the indorsement of any bank having a deposit with it, notes and bills of exchange arising out of commercial transactions; that is, only notes and bills of exchange issued or drawn for agricultural, industrial, or commercial purposes, and not including notes or bills issued or drawn for the purpose of carrying stocks, bonds, or other investment securities. Such notes and bills must have a maturity of not more than twenty-eight days, and must have been made at least thirty days prior to the date of rediscount. The amount so rediscounted shall in no case exceed the capital of the bank applying for the rediscount. The aggregate of such notes and bills bearing the signature or indorsement of any one person, company, firm, or corporation, rediscounted for any one bank, shall at no time exceed ten per centum of the unimpaired capital and surplus of said bank. REDISCOUNTS FOR SUBSCRIBING BANKS OF NOTES AND BILLS OF EXCHANGE Gl7ARANTEED BY THE LOCAL ASSOCIATION. v‘ r14, SEC. 30. The National Reserve Association may also rediscount, for and with the indorsement of any bank haying a deposit with it, notes and bills of exchange arising out of commercial transactions as hereinbefore ' defined, haying more than twenty-eight days, but not exceeding four months, to run, hut in such cases the paper must be guaranteed by the local association of which the bank asking for the rediscount is a member. OF DEPOSITING RANK DISCOUNT OF DIRECT OBLIGATION INDORSIJ BY LOCAL ASSOCIATION. of the governor of SEc. 31. Whenever, in the opinion interests so the National Reserve Association, the public executive require, such opinion to be concurred in by the and to committee of the National R:\serve Association of the Treashave the dciinit, approval of the Secretary 2e• : : the A . 1, • eNeer(IIIIg IOW 11It11LIVI, It) I LILA. alL Ot4,-aar L must be guaranteed by the local association of which the bank asking for the rediscount is a member. DISCOUNT OF DIRTXT OBLIGATION OF DEPOSITING BANK __IISIDORSI) BY LOCAL ASSOCIATION. SEC. 31. Whenever, in the opinion of the governor of the National Reserve Association, the public interests so require, such opinion to be concurred in by the executive committee of the National Reserve Association and to have the definiti approval of the Secretary of the Treasury,__ the National Reserve Associatin'thay discount the direct obligation of a depositing bank, indorsed by its local association, provided that the indorsement of the local association shall be fully secured by the pledge and deposit with it of satisfactory securities, which shall be held by the local association for account of the National Reserve Association; but in no such case shall the amount loaned by the National Reserve Association exceed threefourths of the actual value of the securities so pledged. RATES OF DISCOUNT. SEC. 32. The National Reserve Association shall have dt vetvei t ,,—ft Atet,teetA. authority to fix the rates of discount from time to time, which when so fixed shall be published, and shall be uniform throughout the United States. -PURCHASE OF ACCEPTANCES BY THE NATIONAL RESERVE _ ASSOCIATION. SEC. 33. The National Reserve Association may, whenever its own condition and the general financial conditions warrant such investment, purchase from a subscribing bank acceptances of banks or acceptors of unquestioned financial responsibility. Such acceptances must have arisen out of commercial transactions, must have not exceeding ninety days to run, and must be of a character generally known in the market as prime bills. Such acceptances shall bear the indorsement of the subscribing bank selling the same, which indorsement must be other than that of the acceptor. -INVESTM-ENT IN GOVERNMENT AND STATE BONDS. SEC. 34. The National Reserve Association may invest in United States bonds, also in short-term obligations having not more than one year to run of the United States or its dependencies, or of any State, or of foreign governments. PER TO DEAL /N GOLD COIN OR BULLION. SEC. 35. The National Reserve Association shall have power, both at home and abroad, to deal in gold coin or bullion, to make loans thereon, and to contract for loans of gold coin or bullion, giving therefor, when necessary, acceptable security, including the hvpot hecation of any of its holdings of United States bonds. 10MONO NB . SEC. • -POWER TO DEAL IN FOREIGN EXCHANGE. SEC. The National Reserve Association shall have power to purchase from its subscribing banks and to sell, with or without its indorsement, checks or bills of exchange payable in such foreign countries as the board of the National Reserve Association may determine. These bills of exchange must have arisen out of commercial transactions, must have not exceeding ninety days to run, and must bear the signatures of two or more responsible parties, of which the last one shall be that of a subscribing bank. 36. POWER TO MAINTAIN PANIC ACCOUNTS AND TO ESTABLISH AGENCIES IN FOREIGN COUNTRIES. SEC. 37. The National Reserve Association shall have power to open and maintain banking accounts in foreign countries and to establish agencies in foreign countries for the purpose of purchasing and selling and collecting foreign bills of exchange, and it shall have authority to buy and sell, with or without its indorsement, through such correspondents or agencies, checks or prime foreign bills of exchange which have arisen out of commercial transactions, which have not exceeding ninety days to run, and which bear the signatures of two or more responsible partici. --pcoitrtsAtte- exeTTANcES. SEC. 38. It shall he the duty of the National Reserve Association or any of its branches, upon request, to transfer any part of the deposit balance of any bank having an account with it to the credit of any other bank having an account with the National Reserve Association. If a deposit balance is transfei red from the books of one branch to the books of another branch, it may be done, under regulations to be prescribed by the National Reserve Association, by mail, telegraph, or otherwise, at rates to be fixed at the time by the directors of the branch at which the transaction originates, or an executive committee thereof. -RES;ERVE,6 OP SURSCRIIIING BANKS. SEc. 39. All subscribing banks must conform to the following requirements as to reserves to he held against deposits of various classes, but the deposit balance of any subscribing bank in the National Reserve Association and any notes of the National Rel,erve Association which it holds mav be counted as a part of its required reserve: First. On demand deposits: National banks in different localities shall maintain the same percentages of reserve against demand deposits as is now required by law, and the same percentages of reserve against demand deposits shall be required of all other subscribing banks in the same localities: Pr,, ided, however, That all or any part of the legal reserve of all subscribing banks may be kept on deposit with the ational Reserve Association or its blanches. Second. On time deposits: All time deposits and moneys held in trust payable or maturing within thirty days shall be subject to the same reserve requirements as demand deposits in the same locality. All time deposits and moneys held in trust payable or maturing more than thirty days from date shall be subject to the same reserve requirements as demand deposits for the thirty days preceding their maturity, but no reserves .,1-,11 Is re•ru,ircrl t irteriarVe frtr thic. rtrwirwil as demand deposits in the same locality. All time deposits and moneys held in trust payable or maturing more than thirty days from date shall be subject to the same reserve requirements as demand deposits for the thirty days preceding their maturity, but no reserves shall be required therefor except for this period. Such time deposits and moneys held in trust must be represented by certificates or instruments in writing and be payable only at a stated time not less than thirty days from date of deposit, and must not be allowed to be withdrawn before the time specified without thirty days' notice. Third. On sayings deposits: Savings deposits, as defined in this act, shall be subject to notice of withdrawal of not less than thirty days and shall be covered by a reserve amounting to forty per centum of that required against demand deposits in the same locality. .hitrirseRvr or THE NATIONAL RESERVE ASSOCIATION. SEC. 40. All demand liabilities, including deposits and circulating notes, of the National Reserve Association shall be covered to the extent of fifty per centum by a reserve of gold (including foreign gold coin and gold bullion) or other money of the United States which the national banks are now authorized to hold as a part of their legal reserve: Provided, however, That whenever and so long as such reserve shall fall and remain below fifty per centum the National Reserve Association shall pay a special tax upon the deficiency of reserve at a rate increasing in proportion to such deficiency as follows: For each two and one-half per centum or fraction thereof that the reserve falls below fifty per centum a tax shall be levied at the rate of one and one-half per centum per annum. 4.J.L1-1•21.c is ,esf ti4.-Naitiona1 Reserve AsseetatIon must be covere to the e tat-of at lealt• one-third by gold or other law 1 ey, anOltf-remaining portion by bankable co re paper- as herein defined or obligations e lj..uitett tates, but-to notes shall be issued w enev.pliie lawful neV so held shall fall below onethird'Of the notes outstaviding. In computing the demand liabilities of the association a sum equal to one-half of the amount of the United States bonds held by the association which have been purchased from the national banks, and which had previously been deposited by those banks to secure their circulating notes, shall be deducted. 'REPORTS OF CONDITION OF THE NATIONAL RESERVE A S.S.00IATILIN. SEC. 41. The National Reserve Association shall make a report, showing the principal items of its balance sheet, to the Comptroller of the Currency once a week. These reports shall be made public. In addition, full reports shall he made to the Comptroller of the Currency coincident with the five reports called for each year from the national banks. 1 . 11 NB MONO. SEC. RrroRTs oF SUBSCRIBING BANKS To THE NATIONAL .1414{4E+tivii Ass()crxrirmi. Stic. 42. All subscribing banks shall, under regulations to be prescribed by the National Reserve Association, make a report monthly, or oftener if required, to said association showing the principal items of their balance sheets. ENAXINATIONS. Six. 43. The National Reserve Association may for all subscribing banks accept copies of the reports of the national-bank examiners for national banks and copies of the reports of State-bank examiners for State banks and trust companies, where the furnishing of such information is not contrary to law: Provided, however, That the standard of such examinations, both National and StateA meal the requirements of therttional Reserve Association. The National Reserve Association shall have the right at any time to examine by its own representatives any N.auteuaLaii444,4,411.e...ulyiin in or cause to be examined .t\ -he - subscrt1 )in ')an '4k — t-s oimiii—ix1941fre0044-44it4+04444— d by the National 'Reserve 1la..41,1alig—rdeiewrist, to it as the directors cunsidtcl equitable. FURTHIk NOTE ISSEWA NV NATIONAL BANKS PROHIBITED. Si%c• 44. There shall be no further issue of circulating notes by any national bank beyond the amount now (mt- standing. National banks may, if they choose, maintain their present note issue, but whenever a bank retires the whole or _ttiy part of its existing issue it shall permanently surrender its right to reissue the notes so retired. Iii ..1)URCHASII, 01: TWO PERCENTITM BONDS BY t4V,SU1VE SEc. 45. The NATIONAL Associ,m()N. National Reserve Association must, for a period of one Year, offer to purchase at a price not less than par and accrued int crest the two per cent 11111 bonds held by subscribing national hanks aud deposited to secure their circulating notes. The National Reserve Association shall take over these bonds and assume responsibility for the redemption upon presentation of outstanding notes Association shall issue, on the terms herein provided, its own notes as fast as the outsta:Idid,,,y, notes 1-ccured by such b011(15 so held shall be pres:...nted f.)r rerlemption and may issue further notes from time to time to meet business requirements. secured thereby. The National Reserve .1.)..kov-E-kittNtS TZV,T/T-TRING DLI'OSIT UUNDS 111' NATION AL Six. 46. All pr.)yision,-; of law requiring national to hold or to transfer and deliver to the Treasurer banks of the United States I inited States bonds other than those required to secure out circulating notes and Gov- ernment deposits are hereby repealed. TAX UN NOTrS 01: NATIoNAL RESERVE ASSOCIATION. Sic. 47. Any notes of the National Reserve Associa- tion in circtdation at any titne in excess of nine hundred dollars which are not covered by an equal amount of lawful money held by said association shall pay a special tax at the rate of one and one-half per cent mu per minion annum, and any notes in hundred million dollars not cial excess of one billion tax at the rate of five per cent um per annum. --cfRetTLATING NoTtts two so covered shall pay a spe- FiRsT LitiN ON Assrrs. A• al ails.' 111M! in excess or nine hundred million dollars which are not covered by an equal amount of lawful money held by said association z:hall pay a special tax at the rate of one and one-half per centum per annum, and any notes in excess of one billion two hundred million dollars not so covered shall pay a special tax at the rate of live per centum per annum. AA• CIRCULATI NG NOTES FIRST LIEN ON ASSETS. SEC. The circulating notes of the National Reserve Association shall constitute a first nun upon all its assets and shall be redeemably in lawful money on presentation at the head office of said association or any of its branches. 48. FOR WHAT CIRCULATING NOTES (IF N:ATION A L RESERVF: ASSOCIATION ARE R EC143 VA HLE. SEC. 49. The eirculd tiag notes of the National Reserve Association shall be received at par in payment of all taxes, excises, and other dues to the United States, and for all salaries and other debts and demands owing by the United States to individuals, firms, corporations, or associations, except obligations of the Government which are by t;leir terms specifically payable in gold, and for all debts due from or by cue bank to another, and for all obligations due to a bank. 'CIRCULATING NoTES FORWARDED ON APPLICATION. SEC. 50. The National Reserve Association and its branches shall at once, upon application and without charge for transportation, forward its circulating notes to any depositing bank against its credit balance. liACHANGE OF 2 PER CENT FOR 3 PER CENT HON DS. SEC. 5 . Upon application of the Natio,ial Reserve Association the Secretary of the Treasury shall exchange the two per centum bearing- the circulation privilege purchased from tile banks for three per centum bonds without the circulation privilege, payable after fifty years from the date of issue. FRANCHISE TAX. SEC. 52. The National Reserve Association shall pay to the Government a special franchise tax of one and one-half per centum annually during the period of its charter upon an amount equal to the par value of such bonds transferred to it bv the subscribing banks. SALE OR REDEMPTION OF LioN DS. SEC. 53. The Reserve Association shall agree to hold the three per centum bonds so issued during the periodic its corporate existence: Provided, That after live N'ears the Secretary of the Treasury may at his option permit the Reserve Association to sell not more than fifty millsuch bonds annually: And provided further, That the United States reserves the right at any time to pay any of such bonds before maturity, or to purchase any of them at par for the trustees of the postal savings, or uthemisc. 4/ A-4,„ft e e ( ' ,. ' .4 • flItAr , • • ")1A04.3 • 7/// , BANKS ING OF NOTE :AeDEN. ISSUES. 1SC4-1:o0S. 1899 End of Riksbank Other Banks 1900 Total Riksbank Other Banks Total Mill.Rr. Mill.Kr. January 80.4 74.2 154.3 ftbruary 60.4 75.9 136.7 iittroh 65.3 80.S 148.1 81.2 145.2 April 81.9 78.9 13P.9 79.5 140.1 May 63.3 72.0 155.3 73.7 136.0 June 72.0 78.8 14P.8 b0.1 147.0 July 84.1 72.5 M.4 134.7 , August 34.9 73.4 138.3 . September 71.5 83.3 154.8 1 Ootober 36.0" 78.8 145.5 35.2 November W).7 77.1 143%8 84.3 d2.2 146.5 beoember 75.2 80.0 1155.2 72.0 22.4 154.4 Maximum 75.2 83.3 155.2 72.0 88.1 155.0 Minimum 60.4 72.0 134.8 57.9 72.8 130.7 Average 60.1 70.8 142.9 83.5 79.4 142.9 Variation 14.8 11.3 20.8 14.1 13.3 04.3 Vill.Kr. Mi11.Kr. 72.8 Mill.Kr. 130.7 136.5 5g.6 137.3 E3.1 155.0 149.4 2 OUTSTA :DING NOTE ISSUES. 1901 Fnd of Riksbank 1902 1 Other Banks: Total !Rikabank Other Hanks Total Mill.Kr. Mill.Kr. January 59.8 74.7 134.3 85.8 49.0 134.6 February 56.9 79.0 135.9 85.3 50.0, 135.9 March 611.E 83.0 149.1 95.3 52.5 147.8 April 61.1 140.4 90.0 4E1.5 13.5 Iday 83.7 75.9 139.6 90.5 45.7 136.2 June F,0.8 79.4 149.2 101.3 47.0 14.3 July 72.0 72.3&) 144.3 98.e, 39.7 August 75.0 68.8 143.6 104.0 35.5 140.3 September b8.0 71.3 159.3 121.4 35.1 158.5 October 90.8 81.1 151.P 121.0 November 57.0 148.4 121.2 Decomb,w 55.6 :44XiMUM 1C.1.0 63.8 Min!nual -7.(3.C.:, 56.6 Avepge 74.4 71.6 Variation a) 44.1 11.1Cr.: 1,1111.Kr. 23.0 1 I 1 1 I Mill.Kr. Mill.Kr. 15;7..0 28.6 14.8 1;7,7.4 162.6 ib8.6 137.4 182.C, 134.3 86-.3 134.8 145.9 1 i1 104.3 145.2 22.3 i 52.1 1 27.F ••••••••••••••••• During the i.ro yoars follo8tnr7; thg! Inid(tio nf Ig01 there Were concluded al, Iniibrvula operative arrangemems between Lho Bank of `iieuen .A.nd other notu-issuing btAks, in virtue of wilich the latter ceased to issue their own notes. he effeut of the firat. of these is seen in tie July return of 1901, :1.nd the oth,re, as they name into force, contribW,ed to the rapid reduction of oututandlne, ibeues Enskilda Bank-notes. Pank thn of Sweden ftlone has hhd "API r1(;ht of issuo, From I. J4n.1904 3. OUT-7TANDING NOTE ISSUES. 1903 End of J:tni.... ,..lry Pob:i-uary March Riksbank Other Bunks Mill.Kr. Mill.Kr. 1004 Total Other Banks n111.Kr. ,,, r 4,-.0 20.9 143.5 124.3 20.3 ;44.ro 136.8 Riksbank _ Total nill.Kr. 149.6 , .--, 3.0 1Z1.0 3.4 16.:5 :;•0 166.'2 April 131.4 18.1 !:ay 1._.!., J.41 14:,. 15.2 1., 12.8 148.5 141,-_!.4 0.., ., . 12.1 161.,..3 7.5 18P.1 174.0 1.01L ..::.2 "1 2.0 103.9 Novnaber 154.2 5.3 159.5 rz 158.5 December 1(L.b 4.8 170.4 2.4 172.7 10.6 k,O.v 170.4 171.4 4.1 174.0 121...0 4.6 143.5 145.5 4 149.6 142.2 13.1 155.3 157.0 =.1.0 160.0 4j.;, 16.3 26.9 25.9 1.7 24.4 June July Aucust Sel'ttiml,er OctoLc..' Maxiout, Ninimum Average Variation )49.5 136.7 11- •%..• ; .,•: 4.1•111MON..... 1b3.8 153.4 CUT;TA7DIM 'TOTR a.• •••• 17157TYcL OD MI 1906 End of RiksbanIc O 4 Ir Pankc Total Biksbank Other Bunke Total ..ftwommo.ftumpiammeMEMINE.M.....mmairommummmormar.e-me, Mill. Tr. January 146.5 February 149. J.LX.Kr. , " 1 .arch April labb.4 1.6 157.0 160.i ., ..6 .A.6.i..7 .06./ t.6 180.6 .i.6 .6 1-1.1 156.5 166.4 AugaLit 157.7 Sev:.onio.3r 103.2 F111.Kr. 167.7 July No J.G3.3 Junger _ 186.5 166.4 . ...76.5 Octolar ,Auvathbor Mil.L.Kr. 15.2 Ay June Yill.r. 105.4 Decelvber lAs.3 - 198.3 166.3 - 108.6 1o0.1) - 180.9 201.J eurrent 201.9 OP% Maimuo 7 Minimum 146.5 r •0 7 Average Variation 37.2 0. 201,9 6 7.01 .9 .4 ., 15",0 1 ' ',.. 2 0.4 46,9 0,0 44.2 MTSTANDING !TOTE I 3317S. ......MOD40.0011 1007 lilnd of 1908 Rik S;)ank Rik al.:ank -111.7r TTili.Yr. gm..11"..110•1•-••••••••••-abr january 173.4 173.1 February A.76. i-: .1.74.1 Mar cal 1.96.3 183.3 AI,r1.1 18:).1 174.9 r.:7-ay 1a,9 176.1 Juno 194.4 iLe.8 ju.i.j. 178,2 174.4 Pozu4t 183,9 17U.0 Seidtorb or 207.6 196,9 0ct,ebo r 196.6 1910. 1107(-Yraber 189.6 134.5 December 190.1 Ze...,.. 5 'Evicimum 1V0.1 201.3 inintr 1743.4 173.1 Averace 187.3 IF,3.1 Variation 16.7 P ciale by the way, is thu rxeatust or most iraportart cornorcia.1 b!.i.n'k in tila world), rind thu Comptoir (1- 1 :-'ascomptt.:, under raortne.-t: hank, tlit.; Credit Poncier, which is av orm.i n t cont,rol o I Eiritkin It s own obli ratIons ar!ainot L.lortc:w8 1,k.11d by the hank; proraotin- or synclicato han}r,s, like t.,le }4tell• de Paris 3t des ",,.1.rs 7cani and of co-Oper'ativu, ariri c atitral and savinr:s banks. To rri mind tht: syntern of (ler:Any is to ils thumost intarestinc of any; for thy rlenlan 7irapire has very litrgely swlo industrial eind (.;oix....urcAAL1 int)roets that wt:hv In L'au Unitad ttus. The Gorman war) cruat financial systurne to bo Ligdoptudi last of t,hce. and ht.r firw,noial lagielation hau beun rocrItly Llo,.1111:iud ims Liao reulat of a very important inquiry iado by a cognisesion is.ppointod in 1208. no Of courso thuru Arc certain condition:3 hurt; that do exist in Guralny. For inOtarcu,s,..,;1.1-;.0 a much • P. reatur usu of checks apd other credit; inritr;.L.Atnts than thu lorrians. T./16.1r covernnunt is tryinp:, howuvur, to cnoolzrart; an increased use of these. They rea1.1zo the irriportanco of nr, to tHsir firarsial institutions this prcftt ti1:1:lort of Olasticity of credit. Ci-un.44n ntcu oonsirstrs of tho Ileichsbank; -10- considural Dcutsc:Ic: ntiA)x. or lztrcJ joint-otoc barn liku the t.); nrosdrer lank, and trio Disconto GesollT:r31 are co,:iy.lercial banks; but thc:y also do mcm3 aoaft. or 1Jstl or %n unctorwritinr, or oyndicato business. s ndicat or pomotin This b7131noss is limittld to a raaconabla percontagp of the capital of thc bark; and, so far as T. have been able to disccv, has not prodItcad any injurour; rasulte. Germany has ban() ban of many descriptions novul and very interestin7, to me. '2or instancL:, 31IU has thousu.nds of cooperative crudit societies (GenousJnoc:Ilft n), which hitvu diffortmt function: frcTL. tosu of any othur banks t. (Ala know of ,rti sonuthinc lfl our lAutual savin[7s-banks in z,lo UalstQrn Vtatos. Thuy managed by tiiG leadinc ciAzons of the locality --- far:Aurn, professional thti pv'Jrci)al of oach community-- who lausuaily serve without compensation. They aro con- ducted for the benefit of the molAbers, who are the small borrowuro and small depositors of tho noir:hborhood. They take vary snail deposits, and make loans of very small sums. If a man wants to bu;r a cow, or wivIts nonuy adv,tnoed upon his crops, or for i.ny of the r:reat fetass of minor Istrto of mun, -11- the loan is made by one of ,,:_4w; co-oporD.Ov organizations. They do not compnto to any [7:resat extent with the commercial In addition to these, rounaany hhs land mortgae banks of ,i.iffururt classtm --- some that take mortga irps on urban proprties and is:ylc socrities ar7ainst them, and some thRt perform a like sorvic in the case of lard in the colAntry. 3rany has 41mo a clatin of couraun49.1 and co,inty evincs m.e unique in thoir Gerzany has suvural othur classes of Imi.nks, parts of iltr rurtural krntwa; bot I shall not hckvoLu ni :It to tQ thew up and consider thwa cc:parately. asad, howevk:r t uhlt, on In- a It:. propose to Ovu ‘!/ acc,Aratc: d„;- 8criun of all of t,:txx in Llw literatur,; soon imo) to- 4(.^:-16 SUbjact o wu I hop.; '%.11Q:; 7 will rocivo your cii.rk;ful conriidraLion. The Ger...lams h4vt3 7iNrn :-reat attwition (as they do to Livary detail of all pub7A0 coustions) to the character *,id organization of their wtrious financial instit,, ,ions. 12:13:: different instit'itions are all parts of unsiv and All dopund bAnk for roseryos and for ascistanc compre;- 1.1on the 7oic*Inin timo of trollb100. -12- Tho continuod oxistenou uf Ju ri;iru financial struct;Ara of all Lhs.: contrAJs de:Asnde upon thc vtrencLh of thuir contral innutIons, ard Ulu wisdom of their ,taanagulitent. Thu num7e5tions which Y wapal ;ht with refurmal(e tonJ, c:ncu to notiloas umployed to reliovo corditlons of panic do not involve an examin:dion of the froticro of any of thoso differont institutions oxcept the central banks and the joirC_-ntoc anY ;/or banks of deponit and discount. I will first ttortior to tha oil(i.ractf;r of thu central incti- tutions. cont ral rtrid yt:t s f t:iusb co _Intriu2 .trt not 4ro not unliko. is:.;cs in common. J.3.I They havu ,any chttraoter- T:au principal f,,nctions of t:1Jso banks 0.fu rtO1 dofinsd by luOslative acts. 7rowt;: of cJntaries of experiunod. acintially modifiod fran tiLl They hre the out- Tliud 11,1.vkl buL:n us- to time, thro1 drocoss of ovoluk.icr, Lo medt exIntInr: requirumunts, until it may ho fairly saidt L their most importEtnt foatrou Axe :371611 as it has be!,1 fwAnd necu3nary to adopt , Ithin a conoration to ar /MO r the danands of modurn corlitiona. or instanco s tho great r nctIona of the lAnk of 7x,:aand today concern liatters weni not tbourtt of or reforred to in proeded w.!d followL,d th4440X,Ion of qeniitny, L1A= P1 Act in 1344. ?r%cti, and in 1911411 In cortries to vhich 4.;21t1 organizat;on of crodit in an out- growt'L of modcrn conditions corditiors. 4110 VW/ in fact, of very recent 7Th.(1, positiun occed 1r/ c:reat certral dil.tios and obligations (r7hici tile are not wil1in7 to )inor).adeo in a public wazi ) with refercc credit, and biiii,A3 to 0,..1wyr; Ly1,1 to resonsi- othcr im.nhs in havinc, avo.11u an adequate 0.1d reserve s kA,ru of recent on (In. To rik! on mos4 inturacLinc Iiiaau of our foroijI 1,union..41 blattyy made of Lilo .Aotual lattmAgers of .!:UHJ t7rat banks for Lho purposo of (incurthy prdcisu dui,ails of their inotitqtiono. And I represertativt:s of t .cttcal workin:-:s of in i-)zA.33in ():Imissaion received the 7roatont posofhlo corrtesy from the mtnacere of all of t::use f7mlat aJ:n--m osoci411:, ti CLL' averror of the Bank of pholl, ,! - ow roiArtid, alld hie asnociRten; and from Pallain, t ::overnor of the 73an7 of Trarce, Is rtt finarci3,1 r-clf,),oritios Justly considurt:ft on.. or th 72..-Le bank of 1ra.nc:1 has her. oxt,r:.1y forfl t:', 40 past in t:1 c:orActor of its manarors, but tUfltt in with it halo never in its 1113tory4(1 a.t its :leaa k)resunL, more irc„ullicunco or cr,:ittor wisdom tiLz3.r. t:, :bunt of tl:.,;•.t office. us, holpin:: M. P4114.in wa,t3 mora e.:ourtt:otts to in tvery i)oscible way, not, only in his uwn ti:Irour:h hie influonou witi.1.,ht; rJprasontativus of w,hur colirtrios. The officitia ria.nagors cf thu bank, in :':Jorlin, nu:10,111A us to thu pritotical workinge o th.::ir hank and of (:!ar.man nystan. Th.° central bk5 of 4„::use cmintries aro 4.11 private ril, ...s; that is, the rrcvermlents have no ownership or intrest in their :13: itres. Tho prcAPi si one ror ti-7.t3 control and .r.mnagt..art,:nt, of the rospuotive bar.:s (13 ff'u of L:1nd is in ncLctod 1: vidtiy. 'ila.nds of twenty-four dirootors, frail :aero1,4r1t,6 1 no ban.1:urn boina ulicible thu covornor for th(-.1 position; alt. Luld duiratj ;::orurnor :slactUd on muibur, Tho managemont of t.2.113 vu oc,ntrol of by :ArQotors from their u 13,..talnaso of 1,116) :sank. ar17 or trd to rroTJntly boon asked why ao.cli an inatJt,Iltion (sorvi a limited territor;j, (0431 f a EI:LA,11 island) s?,ould riJuire ono 1=dred millionn of capital; and Why tho suce,Jsz of tilat, bank should be construed as a .:uarantse of the succesz of similar 1.):nka upon a large scale? think tht answer ja dyvious: Tot only does the Bank of 741r., :1and sustain the orudit amd hall the reserves of tho banti and the people of 14;nraand, but it is the center of the financial synt4m of the entiro TIvitish Empire, with it3 400,000,000 of population, and with connections and affiliations extending ftround the world. 7:ot only this, but the friends of thk; Bank of England nay (and s I =at Gonfor33 vd ti ;rot truth) that t, LU Angland is toda: tf!lo floamoial canter of the world. know that sterling bills drawn on London are of 'No ti11 the hiF,hest form of corr,orci,,1 crudlt. In Pari, in in Amsterdam, and in -JV bills cull at a :1;AC, nk botter rate (t11,,L;,i, t 1o7k:r rate) t1lan any ocur form of cotriercial credit. So the Bank of hriland roaches lr, !er territory -16- o'; 1,1r institntion in th:. world, exd :lorver, t* an which. art; (..!xcoodod inici.,,ortanct: kind . ., alef.Ant till by those of only, L kiLltud ritaton. id to deputy..governorn of thu Bank of Thu France art: a,pointed by the Chief of f!tat. The e:ove•-nor of the Bank of Pranct; tiiruoto thTaren.i policy of `ti two iv,r,dred 1..trgust, silarQh.oldurn rorunhs 44nct etan2oru, .irrhtuen ho 1ste f-ncti,ain of limited import- i3 sistin7 or lct, 7:4,n:eci by tht; diructoriur., con- yvrsidunt,, vic,..1-prunident, and seven directorn ap )(Anted by the 4::r:peror. The Itockhcidors elect a cen- tral contlittee of riftc,,n maLthere, Ath limited advisory po-ers. The control of' the .‘i-4D7' R committed to the Tm- perial C cinc.:11or; 1%!..1 momership, the 7Iank i on. Fi in ;3:Mc'. a rovornnt innti t o,Arnr-s of 1...!:4so Ilaunks ar thcc.i trtera of not:xo,=ivo. As • institutions ho..vu boon ren,lwed from tine Lo time, cerAitions htiore betm impos,:d with Clio purpoS.1: of b2in, ;nt.: iibou ,4 ; a restriction of ,,mfits or a Iloro siitisfa.cLor;, divialon wt aft,Jr holders, ru the :lt,t.te. In Genaany, end ona-:aitif i)er-o,mt, in .,)01.1d to LI:J -ovcmlaunt rucei-ven tILrue-quo.rtera of the net earnings; so tt thi.• not incomo in divided betvrcun th3 State iind p-,opricitors of the bank. Neither th'..1 of Ti:n3.3.0.n1 nor tile 1-.,ank. of Franco in recrdrod to directly divi',W its profits witA rlt,to; but t an w shall sc., an indirect division takes There is a -:rtiat varia%_!on in t to t:Io tlifferont, =cunt of va.-nents .,-dents by t0 banks for francld sae and for taxes, priv11or.;03, or 0..h3rwise. The Bank of Fancland pays anntw.11i fort•!'1 ,:so . puri)onu s in additcn to t.,Eio uoual taxes. npeoi1 In Prano action for various .oarp . osos i intricatu b. tt.. -7 Ut th 1 1 200 1000 eneral ;Ind lovied by an ri7qros ffrrishod to us diaaw that it amounts to pr4e!Aca11y ono-t:ciird of !,).A net earrinrn of bank, anti this has boon trlw for a norltm or years. In aer-any about two-1.:Ards of the aetl.. 1 profJts 7o to the ,Andor the division to 1-:.10:1 I "11:.tve referred. In 1207 thu Girman i:Tgirernnt rooeived, an ita portion Of ts, 1,rofits, about ;6,600,000. All of thc) bn:a ilAVU C102 their respaotiva -:;overn.f.Asnts. fiscal rela ac vPith banl... in ;14.(iut-.1 nolo dupository of r;ovornment f:Andsi 64nd ki.1.1 pa:xients of -,1.tiolic er anountri for ordinar.; exp•:nclitltras or -18- •ro.r. irterant on Tl: .ublic debt, arks. irud to rurder furViier rservl os to 1;:la ..tr.: alno r t Vi:rouji ti i1 !, j attttrdin:: to ,.4.c.,..11!,13 t rart.3% discount.. o or o ' the Vari 614B depair",:.onts, ,Jnt ; . nds from p1.40,1 to treasur; ; . 1i 11f, etc. In tho min it be said that tho rulat 1 on of LIK:se insti tut ions to 'tile ions of their respective r!,overniaents in :31r41166r to the posl tion of the 'United States Treasury ;711.'.1 on to our roveriJnt. ud in Li I I it: .:hese 1 services aru ronder- cant; o•C Prance and Germany wi tKout con,),; sat 1 on tho tTovernnont bual z i f. 1. ran site (1 :in i,o ho so casov.l tliovit any direct coripun sat I on. a.01-1 of these inst tut c•f banks. nn is in a 3m.rco si..1nne a About n 1 xtrsfive per-cont of tha Visi nes!! of the chtibanl- cohies throllr,11 the other banks. Ifirance receives About sev,..tnty por-cont of st; fro: ot;tor bankin t.; inst tut I one. •4,i,y13: of nk;land does not furni bj uct. ts entire blzsi Tiu statement of the tAny info n.lat 1 on 1;-;)(Al As a tw...t Luz' of f...ot • as I lioxe 4141 roadyr)i. . YLtuyrb;.tolncezi eu:.1..;t1 from t.. thIpoui ho,lsop Thu Bank of banks to tile flan?: of s Lid, ij i,teco -alt a s 00:44413 tArc,u!..h the di :;co ant (.4.nd not (iirc:ct• if -19- ;Also clIffor pot.1a.1.1..,v- in tho avurao.c anolInt or their at:posits, tAncl in tho a/ao-L.nit ncountin and loans. the eJntral har1: i c.‘.3.ra,ctclr Tit direct comriereL,1 eomparativulf -Lai ,:ir 'truss of 'Ail ant. The ba.nks 4,13o diffur as to tile ol:Arri,etur of coramoroia.1 p.Apur or bills of uxu'zianc.euiic co-int. t11.0,y accopt, for dis- or :;:lanclitnd req.kirus at least two c,00d Rish nwaus, of onu must 'pc; tho acceptor. The ank of Yrance reviree L:rtia solvont nttaios, of vf_joi".. two bo rusidunts of Frunce. TEA: iu ibk revirus tho names of t4L.fo solvent 1)arsons or oorporat one. In Franco collo.tor- al is ttccupted in . 1 )1cc of tho third al :7nature. npea,kinr.;, and not bo Clonerally bills must .i..*t.lpros.:nt :ict.ua3. trammel; ors, r t a Ir".' f i;.-Anco or acco:Imod,a,A...ai on bills. The ii,verarrp durati on of bills di acounted in "%nraand Is frori forty to fifty day; in Prance Germany, thirty-t7.:v dais. thirty days; in Tie ma.zirvirz duration of hills neolxntod in ..!..:m:L.A.nd is four montIrs, in excupti()nal citsos six months', in Franco t?iruo months, '1t in excptiona1 CLUZSU Gurmany n.ru i. osrlibld rc.:r.owal tionths, ron,mal in cas,.) of fi:uri...ars. nogionci;.i.ti,in:: for pu.p‘vr of tills I:1ml is nru- ly airforent from o.Jrs. They to not in thir barHnr, , transactii-,ns. IISJ In ca!! or a nunufaoturar or meroant, on crudit or nr4kos dratt or or,' rotes pro b:," a iw, thfl sullur f/Ire..,asor upon toms ,i7reed upon (usually on tiirty, sixty, or ninety days' time), wld Liu purchaser accpts the draft. dmwstio bill of excnani;G, or uuually cAlled. A ban T:lis axcoptancc bocomen a 1 ,4a=st„ic bill, Llay arran,;e with a mcrc :t c - an operator to accept his billc co,zai r.I on. This cL.,Aanc,3 becomes a pri:le bill, Lult is dincounted at tte 1ow 4k, 1.te ot_or A.U. drztfts 11,q)n or 1).' foriL:n houses or banks i,,ru known 4S Tra.du bills cover ordinary corvaercial trains ctionvi, f1ra..!,c0 bills cclrlr aocorncdal,lon loans. answur the recroirortsI liTtv i)oLlestic billn of named ctra1 ban1713 axo knoim an bankable bills, as thoy aro acct:1—cd for rodiscont under proper conditions. 'orlo of crItral inst:P,utions are oor1:-.:)rc1al bans in th‘; ordinary Bens!) of 1,:ic word; and usar:e is brinjjni: 1)(plt a furter dullifitation of their i,owors in res;puot. on of interest on thuir deposits. T;,tay :416o not in any genoral sanse condol. ,ors with the btAmko of discont aeposit. cuntral inotitutions T;i0121j slwcie resJrvuz of all tLu b.alkz And othe r fin,inci,11 in-s sti.:,utions of tliuir respeotivo co!ultri els. The Bank of ::aulds on an avera.c,e a reservo of about forty-five p4.:r-ount of its c:nt,ira ILI:1)111141.3s. holds about li froi forty to fifty pore 2vAndred Bank of Pr,..unoo 034tenty-fivi: per-ocnt of its de:-.-te.nd (4)1:U7:at :ion:I in specie; 4nd the urn. T. of i puc rL:survQ uf currtnt depoc:1 lwith en winual 1.7old prodlActi on approxina-, ine four tillion dolla.re s and tho constant incr eane in the world's stocl: o crease i'.•ld s ure is a Laarkod ti..ndenoy to in- 7ori•Jrvt.:3 of all the groat banks of the we owl/skier tho rapid crowt*:.1 of tho b-93intasc s rtrid the extort of tho bankinc transactions bas:d upon L:..a.h; runerver., roccw;ity for their proteotion uid !alder all circH....13tancos becmies apparent . Thi reat differ-mc: 17,;;twt.1,:n or own in roi.mci in ti1 hankinc, systems conc..;ntration and nobilization Of rosurves t is tlie diotinctiv‘t feal.urki of the Yguropuitn systo.A3. C:onfidGnce that the :.1.4nacuLlent of thoau cuntral banks will ;#t ll tilaos o in prosperity .00. iroha and in advursity, raaintn rtIsurves a1oquat4 to protect inturests of c1.11 of td4L:ir veoplo .And to sustain public and crod11., ;7',ives to for4i;.:71 s;;•rati;v1:-..i irapruiTablo strelit-Lh. In t :is connoc,.ion Au is important to examine t?zu muthodn axlc. tud ccrve and 1 ;.L• t• 4,1.0 t() c.:11tral 1),%nks to protect 1;hr re- irenlatio :yaann 0313 u1ly 7' 1101 othJr countries. riecessilry. '01d rd succ.7.ssfully r:] hid - Ton for 1st w7:loncver neoessa,v 1 1nk rate of discount hi O 11 LO ,-(ivanco the enougil to cttract rooj fron As in the ease of Goimnoditiess, fold follows tile lax of supply and deuo:nd; and if •In7,1and bids more for 6uld ..t'rteinea or Curan;v7, she socres it. )0r t,;;,c,u41),1,; I in 14)7 t:1Q Bank of 7.ng.14nd ralidly raised Ito ratu of discount frou fur o sev-n pur-cLalt. Campbell, the governor of the B;Ank of told us that thm reult wz4n that gold came into th,; vaulty of thm bank from twart.;y-four diMrunt countries, or thre.J colonies. I think Vin i nclwtinr two cribled the Bank of :.ingland (and a strikinf; statomont) to protect its re- cmrven und to ryJn1 to tho Unitod States eirlity to ninuty million doll;Arl of read. T:Js ran true notwitstandinr the -23- tilt; svocio rosrves of the flank of ingland do fact not uo,zcUly exceed one hAmdred iLnd twunty millions of dolL-Ars. toc.W.ior, "rzlAt would hve hapduned I aol.Qd if tu sevun por-cnt rate: hiA rot boon effoctivu?" ancwer was: fil Esould have put %ho rate up to ter cent; 471,1 tar por-oert voul4 brir7 cfjold from oartbi" (Lar4tor.) The anew!' was intended, of course, raeraly as an qication of th:i power of a country that has credit and Ilnlimitad resources to brirc rold to its coffers. In recent years --- certainly for nearly half a cent:Jr --- there h413 been no failure of this zItethod to pro- tect :41-al ircroaso te cold resarvus of tha great Ellropoan bitnYs. It is tr.i; flounces. 1. 1 i now Ao of collateral inf L110 cent-al baffl-s to holdfrt-timm forJ11.:. bills to a conniderablu rammt; and this custom has bt3en .4%•ziel very hulpfll in aLriorconcios to protoct ol(1 roskIrvs. Thu central banks also allow intarost on :old in trz:anzit, from Aistant points. main rliarco has alwa:A3 been upon a - 11At L114 advarcci of the t,:nd thin method ha n boen found uniformly rmecessfia in modern tilles. Thti polic:; of chare1n(7 a )r=ium or of rdfusin fu: :01,1, or to pay cold on do_litnd b inAirect 1)!; effctivJ oeans, Jo no longer def.Jnded by f1rc1;:i.ss ( voice: "Good!"). In 1,1:7 conrectjon we should also considur the pni.c'1,1c,; uf the jodnt-stock bunko with rofaronck; to reserves. The (11),A3tion of thd c'laractor and extent of y Oft servos of thuse banks, an woll an those of th(: central banIzs, 13 left to the jud;;Ant and Clincrotion of iaanagers of thuso instiLut,ions; and no att,.1pL Jc made by lo7islatJon to exercise any cntrol over tAls important feature of bankin The join:G-soc the basInesL; of practicu. very largo proportion of banks do 13evural colAntrius. The 'ank of for (*v..42.:1, hold8 Lt ,:1.3,0U0,000 in discounted papor and socrim 11. kinuu. WI= we conslder how snal1 a 1;roportion t:Arl lo of ,he vast business of :igland, we sh11 reaplize i..:qat the large commercial joint-stock banks do irtcticllj hu ,:n%ire business of that groat %ingdom. The jo:In!.-sLock banl7s hold prctically no specie ronorve. Tn .1.a.Hrr statamonts or %hair conlitlon, Vie sjoin.-toc1 barYs of the several courtrien report the amount of t2".31r "cash In hand and 1.t. bank" in on itoms which 1%11)re:sent's 3.1..v only can_, recorven laci Union and Smith Axoept in one casu (that of tons. 1344,n',: of London) thu cash in ia;A.nci Jo nevr stated sL:paratuly; and no Crr rau.lbers of L,14; pers:Izzion that Commiselon could ,Atie would inducts them to augre7a.1.0 thee° ii.mounts. An tter of fact, all of those banks hold in toir own va,t1ts only that v.:: wwtli call *till money"; and frua rarJly exeds thrut; or four per-cent of th,Ar daposit libilitios. assort /1.!, a orddit at better for their pur oiie luone:1/ in their own who manage the instiL;tions J central bank is safer and 4han a corresponding azioart of p003t1051011. We were told that it it, ;labit of th:; large banl.:s to make an ustiLiato of the amount of mont:y Lhat will be required for icsir ordinary transactions from duy to day; 4,,Jr, from A.oun .- 4 is wi',hdrawn ..1k; c,intral bank, and consLitutes praotioallj thu only ario.,4.nt. of cash on hand in any of the instimtione. Thu anount of "cumh in hand and at Lic: bank", takinr; the two tucoi;:itir, itveracon about fuurtcon or firtatm per-cont of the currnt liabilities of uU London clua:i -71Gusu barko which make their raports once ft month. Tho joint-ntoc17 bar.ks, how vor, rosorv secondary jr "mane' At call and at short notice." In k London this monQy is lowiod to ulsco:z.t houses on bankablu Maar!, acnd otr to morchttnts and others on ;-1,ock-excane li.rscurities. Thu barlYs hol on an :tver- age about fiftn to twenty per-cont of their liabilities in thit, secondary T%Iserva. In addition, the T]nr.lish banks usually hold for investment purposes r:ovurrmort securities to - .21; extort of thir citpit1 ,ird surplus. Th:s rule does not apply to foroicn banks, however. All th.:. joint-stock braPs hold a ver:7 imortant resrvJ in. j. o.rtf, lios of short-time bitn1zal.)1::: bills. The fact that they can always b,dt usud for rodiscount, or that when hLld huytlr,J unuct.ily paid at vlaturity, f7,1vos to thoza thc rruatost possible value as an availablo rcserve. In fact, una:74'; him.1 71v,.In to them alarlost a lerAl- tunder qualit;;. It is policy or t1-1 joint-stool-: bi.t.nks in tius or strums to strangthun their reserves by increasir(7 their balances at the central bank. Min in uslzally donu by a (iirect or indirect rodscot.Int of their bankable bills. one By t1J ).Teocess they aro onithled to transform at into a resrvu an assEtt in this correction. othoris) -10.s no vrCI The 3/Istitions aro tlyp fl-;thlad to exttInd credit to desrvin custo.urs to the extont of four to tr tiris thu amount added to their reserves. number of the foruiEr joirt-ritock banks have A it abolAt one- eihth of their total :Libiflfmier, in resurven of any 17ind. This doccripior o flrnctions ard tho procosses of the :11.ropoour. emtra.1 and joint-stock banT7s will um.ble us to Arrive at a buttur understandinr, of thQ lauteho...1.3 :)mployed by thcst ,. int,qit-Itions to furnish rulief wlion finncil troo.b1 is iippruhanded, or panicky conitIons exist. Thu ctiiunt IaLA now About t.o ::!,71 is tIte crux of .L; vr.ol matter: T.ecw- c:ra.1 policy adopted in timos of appre.I.orsion or distress for the central instjt.)tion to strengthn reni:rve's by the us' of the muthodu I and at described, sa.,:o time to extend crJdit lflerLdly to person or institution whose solvurcy and condition untiLlQs him to ruc(livu it. It in this simultanuoqs str,:ngtheninr of reserves rind .;:ctencilon or crcsdits which ivos potuncy and effect to tc modern q7stum of dealln:: mit:1 ,c1Y.'o -Is or distrnst. The fact that in modern times . me:tns I h;vo dencrib*4 SO 2801 havo not nidlud to atfurd to res'....ort alia;" t con ridonc:: o.nd credit ir tir%or.)o real troubL: iut ere at' z p ro t.,7- r‘:a.ti ., .:r,Qd or d ipr2ton .. :tpon aal . twukin7 a solution of our ilonatary probwho are horentl.: lems. In thin country Wei hvt.) adopted precisely the oppo; For inutarcu, policy. WO 11wo a law governing national banks vAch requires, in certral ronervu cities, a lawf •1money reserve of twenty-five per-cont of ot;;tandir7 deposit liabilitius. Althou assle that LQ rue' serve is created for eler::ency .. pupo2s, w:ien ;,trisE; cAmi a bank wishes to tAts do so. (Laup,itor.) n.o;:A.er 17.rncy its reserve it. must not Under no circuustanoos its reserve below twenty-five par-cent. 44 it ruduce If the reservL: is twenty-four and a half per-cmit, not only can t1.1 us bark not it, but it musL stop all discounts, all .;:KtJ,11:3;ons of credit. It rna3.:en no difference how nuch a man needs a crodi .t. ',711() 3. n:tv at, onn, for t. o hi J ay 1-y; or blu;: him collttral nay be. 7..1 r3...!..7 vat pO.i)1ltd. It raa.y 1.-ro ;tale. i 1n2 ion:3 of Runor<-thnolut; o *:iav: a cortain.7.+ivio'znt of Lionoy C8lty t th:tt very Bt if the b.-Ankls vcsurvt; is twunty-four and a half per cr1t, or lous, even though tIleru is a condition of affairn abolutuly necessary the une of part of the resorve, it cannot be logally uced. it is not nocesnary for m to cn14rge upon thin the abourdity of this nystum. countries are based upon -9,?1 The systems of 7uropean policy of usin,7 ruservs promptly and rully in case of an omorglincy. case of the ...)ank or Tf.ke the It ::,..Aters not IN:nether thu usu sugGested is in Canada, in :Arillindhaus In Liverpool, or in Australia, thu reservats car b.; drawn upon us water Is drawn frum a [:reat rL;srvoi It IlivoN.us a bk; ocean. eciaacyat:Ion, CAL n t.LL; uolesn an .ouhI 1 ¶iu a fire before 1.1oitton of wt,G:2 . wore poured into thQ urotiean bankc takJ thJse matters ut their' incion; And by Lieans of a concontration of ruservus tl-wv art; roa&T it ny minutJ to furninh the necessary nenri 4nd the necessary credits to prevunt disastern !:,.ono from slich :)1(3)1 w& ch we h.Ari been nufforing, and thli. oontinue to suffcr uniQns wt do cam- L, -r. orga.riztJ wld to strerrIthun our financial eynten. (Great applause.) k Tho question of the isrme of notoss the nanntar of their isuo, and their use in the extension of crudits wl!. to uot3t unlAsual demands, is an important ono in t'As cornection. The Bank of Eland issues notes againnt governmnt securities to the extant of ,92,500,000. Any further issue must be covered by specie. The note-is variod but little fro m 184 down to thu presort time. While the bulthless of land has rflitnd •,r1(1 of thaBritish FJapire has doubled i:Lnci qoAdruplQ , nd niaLlplidI do not know how m4ny fold in that LIau, th ruiaainod s.lbsta.ntially of t i1(4 ro.)nt of !A)tu-issues ha.s of checks Sakile• and other inatant...w.itri of °rad:it s to yr...lc:. L. •,...01au of Aivland are acchstomed, ta3 us th:.; plaou of notes. In Vranc,; notes are isnued v2t:L01;t, any rostriotion excep^!, as to amount. Pranc Dut -under --- and I call i- olicy and practic:: of the Jarll: of :::tto;ntlon to t:As statonunt Its notes are practically coin curtificatos. For the tn years endinr. : ir non tho BanY of 7ranoo Held in specie an avorace of ole- tylreo and three-tcnths per-con of thJ olltstanlinc, not-infmo. Againmt an uns» covored issue of, say, tro hundred millions, the Tlank of '2ranc,,1 hold, in rollrld t:-.ree . hundred and sixty SI odd millior:; PU iap , ablo bills. 13:111): Icotf.,:, sa:: in passinr what you already that tlwre aru a row hankm in :nrland knor7 retainud the ri&ht of issue since 2.1/1./% toun ever, issues of tn to but a frcl.ctiGn of on i3.k of :!4:11[;13.nd. Their rotos, how- pr cent of the total Toro an; also curtain of th4 .:;al.k of Bavaria, thu .1!tato bc:unks of (le!72aany iink of Saxon, and two othors . ,t 1vo retained the t of itielJL: clvent.vJ. 1% under t;.L'; bank t•A•ct of 1375. But Lu outatandinc notes of all those banks wmount to only tilrtiw and t half pur-oent of thu total notu-isuuu of 'the Ibpiru. '211c1 - olcilsbnk is authorizud to itv:uo untaxed notes, firEt, 1;o L,,,11 arimznt urpal to the &mount C,OVermaent notes It hOldei ecord s Of 2)(iCI3 arid to the amount of an arbitrary ackni known a.n Lhu continnt, which is fixed by recent ley151ation at ono hundred and thirty-oirt milljor:71 or dollrs. Tls 1ur,islation wan adopted upon tho moon- mondation of the hank inquir,y ca:Imisaion, which wa oni of the abluut col-1:113:31Gna over apointed to JnvontiAQ or 4 similar sl.),Oct. The report of 1:1,1 coission reOom- laJnded an lneruao of the contingent from . 113,000,000 to 4110 1.311 0000,000, with a flIrtIlar incroa5, AL„, LA) -,1n8,000,000 on settlx:ent-da's t: L. jioiint, of ,:nci of quarters, these bein!.: the times w*17.en the larcest amounts of notes at%: rocuAred. (You will observe thi:4t the amount of this continent is only 2 per caita of th a rather inconsiderable s.um capita th nots is3ued in UXCOV5 of c.rac rea of five )(Jr-c:mt. or thu notes wre lugal prorvioions ln thu caso of all of b:Inka. the nonopoly Any ) 1::st; i,':uounts are ta..xed b; the .nd .17(loti.abil:It;,' suci.od 0 1 th n you think of tlw 435 or havu in the United ltatus.) E, . overnent at ti.; rtt i'h i)eople of Gerwany In each of t:L countris we fond that notc:-issue by a cntral bank mautr; with practically universal approval from all classes. thin Wier,: can "b'.: no dissent fro:-1 thin statunant. Amonc the recent diocuncns upon the subject were thosc that 1,00k pl:cc in fAirtany and In Belgium at the time of tho last extunsicn of charters of the banks of those courtri ,:s, 11:.,en all oimmun and all 01 MO OP Gocialists, agrarians, clo,82oe in each of the :;tatue, and so rar as I know in over :tato of having notics is:Taed onl, fully approved of ;,lw policy Gnu c,:ntral buniz. Thu uverar;o fluctuations in ;In(unf7, of notes out stax.di nr77 from time to time differ consideraH: in the throo court 7.1 co. Those fluctlat I ons crcw out or diffor- ences in tIle seasonal demands for currency. 'there the vollu.r.,e rr.ot Ir England, nro.xeri 1 ri pract call: comstunt, the element of (.:144.w,icit:' o.f innno, which in .';...- 11-1:any and I 8 ;Aot by euerv;v:. unlk%rgoents kind contracticms In the voilt..; of notes, luLlut by chAnr-tus in t',10 volume of checks 4And other crodi instrunts, and the amount of cr d di to i!:ivon by the: ..,zati; of ..,:nrla>nd :And Lie o thor b.4rkin iflt.i UuUone. To recur to 4.,:ne Twat i on of note-I stitao: it is apdarunt if vv.; are to profit by *la eX:)CriUflCe of othor co int-f.*71 us, If sKnyi..Linf, . , , in thi.:137 7letho1s that may be of 0.(1vntaf-e to us, then) are only two systems to be considered Nryler one, t'lle systtta of note- issue by a central rnrient control or restricti ons, ttnd otllor the Scotch system, the main f - eatures of Atlso been .dOi)tCd in Otautda. uni forni of of opinion w t;h :referunce to the wi Eldon unifI cat on of bainkors Por t I think, mule n In not 3harocl by tho root ch Scotch;. . un in r:cno TI.!os.:: who k bellevo in a ctultral bank or ins,Ae l howevor, in91ct that the. FIcotcl systo:1 of elf7ht bar17n "iti. cluv,:n hundred branches is not ada.pted to th.1 warts of a great corrierclal co- tritry; that it is of necaeslty a provirci'd syntem, The eirit ThLI rattraiNrs banks of ''dootland Rrt; pr,A,ctically ono bank. 7,dinboro' or rilas7ow, of the principal ba.nkl;, consult each other, and fix the rato of (I ftecyont for loans and the dziont of interest 1,..o be :1.1lowed on deposits. pr..xticular of irril ortance in ban:Lin: oporation4 or With referL1 informal ence to note-issues of organization for defense and ixoteotion. The Scotc. banks - ngland for t,1r specie and for depend Ison the ,3a.nk of E slipport in tines of trouble as Pally a.6 do the :;la.1ish banks. London sndi; t.o cotland periodically a connideroft11 held tiler,: only long able arao:Int of Cold, onouL;11. to enter into the accountrlo tho catch banks, and tun returned to Londor, 1.1.any tines In thL: or1inu1 paclrairen. Thu Scotc-:i not.; issuo is prost;nt based, first, upon a fixed taount of uncovered no-%us, which in equal to t.1.-;.0 outstandinc issw.:13 of the bulks in 1845. of 1.1ncovered ro The total arimmt t presont is about two million sevn .z:,:ncirod thousand polinds, or .1.7C put. capita --- not a largo or iza;.,ortant amcurt fro::1 our sta:-.dpoint, v th a 00.A0d* per ois.vita circula. ntA,cs on in or ,Chollt M. to law drovidas Beyond this lirbited ircovureJ all emissions a:11 be covJrod by specie. suceas of the :lcotc... c It Is conceded 'Ll.44U laborate syritu.11 of bruncb.s, which dep nds largely uvon an la not applicablc to tie United Ctatus. I do not moan to underrate t.:Iu merits of 4.11u Scotch bankinG system. It has been impreasod upon liJJ thtit there aru no butter bunkers in TIluy have an adialrablo lndI the world than the scotch. vi or in expression and dou3 cLion. personal equation tiand ror more. owhoro Aside from the ;LA.:171,:r of not the iistinraishAnos feW,uro of their systu As a nol;:lod of Chr3:1 credits, by •rLich a farmer or mull' trader in any part of cotland, Trrith one or tv1) of :is neighbors as ;12.ran':;ors, cs,dn ostablin:1 a 1ral(in(7 credit for :A. fixed win. '211c bank honors his drafts for any amount 1;,; customer pays interest onl: upon the cuLdo ,Lot1Li1ly drawn. thisyst, coLuauniies of There can btl no question but what r1 of benefil,, in ,I.oveloping the r1;bra1 cd,1,And. MLi cLuv,:lop unt has 1)041, how- ever, along lines quitc; unlik (1.nd tat wuula appoal tc, tilt.' restless American spirit. Thu rL‘tus of interest oh4trgd by t,flu ;:coL,;_ bapnks 11 ono-hAlf or on 1 cent hicher thAn tor equivalont sJrvic considerable portion of th in l',;11::nd.. A 1;A.rger Scotch comaerclua arid industril housus koup thcir aocol.ints in London. f.lcotc pur- The b.,4nks also 2v.i.v,,; brallc:-Ies in Lon. But .7,cotch 21uLilod3, !hild aAnirablQ in thoir uurroundings, littlo of v:11u4; in com-Adurin the requircLauntr, of this -17:3at, contry. The (anadiur bankinp: systxa, which is largoly barFld upon Scotch ideas, :luny intelligent and pernistunt ad- vocatas in to United ntatus. our careftl cornidertAtion. syntia Esotild roccivo Llombors of thu CamNinsion made personl invostications in f;ay.,14ft. nese havd been supplenented by extended arid Vt uab1 tained in Jidtu ci An our lit of publica- L!ons. roforrod info CamA,da h;lia twenty-nine 1) 4. .ril.:o s w thousand branches. cortain durinito functions. 1,.t1ized institution with c,ntrol or not alwi4ys under ‘;.tt..!orit k.6w, of uvon by about two These z4x%1 prz-.4.ctica11y controlled by the 13anl:eral Association, howuv,;,', i ation s con- Jariks, conferred 1 4., •, V., conntition aro: by-14wn of by lgreumunts for mutual protocAon, which aro ovally offoctivu. Throur:h this ofrAcj(dn bunus arrarigament t1u 11q.1.nks of Canada are controlled as thorou6hly as the Scotch bankers cont:.-ol Scotland. Canada har, an olJtside of Alaska. ar bnT:ing systum of oquzyd to United States, Out of hr twenty-ninu banYs, nineteen locd in Toronto and Aontrcal; and the whole synLom is controlled by tho bankurs of tht:se cities. The Dan]: of :Jontreal, with its largrl capital and aalirable nanareurt, J8 practically the certral bark of Canada. There art: but three banks, and these quite unimportant, In the vast country wint of Ontario. Think what tho American synten woltid bo, and how it wcpad bo regarded, if we had but throo banks west of Buffalo, and if the bankers of Nuw York and Boston, pe.rhiips, should decide upon the policy and the rates of disco:zit of tho whole oyster:, of the jnited 3tatost And yet Lhore 4re certain paoplu who think the Canadian sistzm coqld be adapted to Unitud States. The Canadi,..r banks habitually carry L,»rce balances in row York and London, and in ties of diffiolt support upon .1-lerse creat financial centers. autoritics basu the cucoiino or their oxtun3iv rely for (oLipetent Canadian system upon use of brizto:les. Of course I re:tliza that 7..)lere ar:';' in tlAs country -38- i.y int ellLent man who thi nl: a 7.re at t a sy E;tor )ranch-b ank. nrr, like the Cndt But urle sr., I r,roat 1:: ilsta1.7e people, that will ntiv--.r sy vt nize Po a5 iLaporti.unt ttleuent borrow frora Uri -t e d E7.:1ant, Y ry nut Tee o g- Stiii,tQs. vo..a Of c c.;1.ir se min in everything else, the in busineu ne I[,ibur - e air-)re el Laid. fri i(-in of the I r wants The : ..ten who banks in the W1Ghiivc; bt:en iii,causLoned thin 1.(;3: :,uct, con trgt.sctIons. bunics, of 3:18.11 tons will c ri can tin on Yaust alwa:,,s remain one of the zn.ost porson4.1 u pa hu j I n de pendun cu of thu twen ri ;-,ht a and. rw-1,11zu that in boxiki n,L; lrt . n thoAsi4,nd sepa.rate banks :in yo rsyturn. Oil ...ract Jr of the k af.to 'oh Ich :reave dez,ain7 in Who 11-v ‘;.7111 not b:.; t. to lt3c-,-.1 slat on tilo.t shall au .Lho ri ;Pie di npL.,..c j.nr. of mc:1 bank ap7c:rit s sent from tho bank r, of '.!::ew York or of (dc -:o to conduct the Iva ine as in these nra;•43.).or col:mum i ties (I ii.13tlrnot t;pted to Say• be Lo u;.t.rri nen whose fi rat i nt ere at whoa,: onl. f interect :lost monoy they could for t:(-1(;*.hrs pr 1 rc 1.pals and n.;%1;,.7rally would het.ve b.; it littlt, If any, con corn for tuvlo of the co:.-launi Iu s in which thuy were 063940 So I 1,.;in I cr4. or organizdatiun exicLin ay cartaintj that any syztau wmaL: a.dop:; ;;Air; condit]ons. W be engrafted upon c:Annot Lap- 1r tnt; liciefulneen of bwiku t or tuk,:. uwai of . lnctions. f If wu ar,& to h,„v:: an organization otnidi of t,j11. 6tnd oatsido t:Au prn1 orc;aniz4tion of eldarAng-housus t Imust 1-.); ond that will -1) servant and not tha raapstr of exist- in: ornizations, corlit,ione. en1 th.tll h:ve to consider existing WTatst tht after all, monetary scljrco in rot ex exact science. Politic41 economy has no lawn t.:t can be applied to every corammity inder all circ!InntancL)3. n;tt syst.::m is bost for any co;Antry whjoh bust ronpon:, ls to ti nuods and requiroments of its pooplo. (At pa :t r:unator Aldrich paustld and look.ed at watch, aridd crhla of: Stutson ha nun; I r I Lwo talk etbGut "Go on!", and groaL ‹t_ii)LuIzzu.) allLided to I. . hu fd.ot thut he Is not pl,Ln or not. littlJ I A(ofe a. plan, which (Laughtur.) But at prnt I naL, sAy tliat the Cornission have not /Jt takn up or considorvld Twstion an to t:lu proper plcol Lo bu adopted Iv th,J United rIttos; they will not take up ow.40wis. or conaldar that k-43tl1n until -mh,; case is fully presntod to tlie Aorican ci.11 secure tlItAr and co-oporation in trust will bt idoption of scita plan 7thich wo for tho bianafit of all thu country. (Applausu.) I have had occasion to say on a nurabor of occanions duriru- thc lant two wuu1s3 that so far as I am concerned, if I wure f7ivra a blank sheet of paper, '71th absolute authority to write upon it thu toms and conditions of a bnlAng and currcmcy bill that I thought mtc:It to be adopted by tho Unitod f7tatos, I could not do it. Mf7;hteen months ago thollt I had 15() knowladgc of the subjklet. ntudyinc thwse sostionn for thirty yars. I had boon But tho iubjeot Is so vast, and involvos so many colli.tercti queoltions that aru intricate and complex in their ollaract,,,:r, thi.t.t it would not be possiblkl for M4 or any ()tiler careful study than Ihi:tir witholzt more yet been ablo to Ove the ques- tion, 1.o determine what plan should be Rdoptad. approac}lod this question with an absolut,;1 l'now I I llame open mind; and p:mk for ovory member or „.:lu Commission whun say Mlat each of them has approached it in the Da I hAvo only on pirit. request to nake of the thouc:htful people of t":11.1JTLitSCI r7tites, and that 18 tIlat they keep their minds open unAl I u casu can 1): fully prtJfirted to them. bn !TulA,t1," rraAfjed by the fact that on every .land thour!htful Lien hv efrained frau expressiono Of opinion upon this subjeot; that so far as I know tht17 ;o70 unifonlly to await thc examination of the infor- mation we nhall clvo you in the literature described in the list that hn boon i3u1)m1tted to you toniht; and that rhen this inforaation han ban looked into tho will take up with uo tAs groat subjoct, carefully J,Ild '7;ith open minds, ready to cornlaur the question of a practical plan and. Its actual operation. I realize, perhaps more filly than amy of yc.; thc difClculti4s tha6 will confront us in the conr;tructon of a L)lan. I know that thiJr is sometilinc in the human incl appal%ally makes men like to think and talk abot craJsOons of kind. I think it was :10(aoud who 841d that the stua:i of tb.0 monotary q.;ostion wan °ilk; of tho r:reat oausos or insanity. (.7tur.) be confronted with all cl-Lsni;r2 or nalL; up their minds prompn.7 and off ';?i: id. who itro confronted darnor /*roll t-o classes --- oro class of :-;11 1./c) aro cooks,17-0 that they know now Just what n;int,!m s::0,11d or 42' 3].C;1 not be ,:;.(optedi i.nct.,..no1,:t1k.:;.- class co:apor.;..•:d cogue, o attroct by their f.;t;..--4..t.a.: ,;nts, :u1):1 I c w1 tt ion to tliulasalves xpr,..,15n1y for ntilf-exploitation. realizu fully tat these vextiors of ncreta-: re_ form natilrally move slorly. A wholu generation elapsed between the report of the bullion committee in 1U0 and the adoption of thJ Peel Act in 1344. The b:Anker Yic beun referred to, Bacehot, in his ci,tssic;t1 -ork "Lombard Strut", 1.Q.cor2 to the fact tl.at in 1873 --- twey-five years, or let 3 L:Ltal a cw,eration, i:ater the Act of 1344 W43 pe.ssed cc nd t i ono 1,4d so caned that tho 4Lnd statomcmts upon any force, en rentn 6.ot Was bmwd had no longpr Wo are now a generation 4w: froi.1 Jr. Bagehot, who has had no smntIssor. Nothinc, ha bc.en writton upon the practical side of finartolaa systums zd "bri..nking operations since BaOhotts work Was publin:Iod. But dtring tiLat time a !.ondorful work of dowloprient has cone on, ard a I hitlr iAdready stated, conditions of todv arc as unlike those of 1. 117 a,r; car posIllbly he imAcinod. We shall be confrortf.3d wIth peopl(! who will Insist that the subject I:1 no ruttLd.nd no vast v7a ca- no', do xlythinc witil it; that we mutt tsit don and meekly :lubmit " '" 21.:0 to wtuver resiat mity rollow. But I rTeatl: Llif3ta .a the pcople if the lo- temper ard into1117onco of cisiGn and sotticont of this vosti(,n ciAr be lonr delayed. vital interest to too it meana too p.ich --- it for delay to be every person in the Unitad Stat..30 possible. It is said that we 31'1411 not be ii; 8e1ve thu problem on account of differoucon with re-femme° to lcclItiea s or dn.:Judie:1s az; betweun Vow York and 1Lic .o, or botweon Chicoo and the great, cities of .4%7 in3L:7.0c, the ,Issinsippi Valley. Bl.t t:lis question Will never be settled satisfii.corily until it is settled from a national standpoint. (Appla,use.) I beAuve full.,; in the solidtions and all the iieople arity of interetit bctiwoJn all of thu Uni td ()not, "41ve drosperity In rev/ ttio. York and adversity in Ch1caT7o. WQ cannot ilavu prosperit;; in Chicarla ;.t- rd adversity in ''uw York. Wht, affoct2 ono seotion nocessarily affects othors. I Said I had a plan: I li.a.vo one a plan which 1-111 milco by tht! Am..NAmoador froL; ',Tnitad `7,taten (Appl'Ailec.) o ti was n•Irrr•oritt:d rinanciva canter Or the world. pocition t United rta.ton ti .ld by virtm; of her ru;-ource13 and :nmr on- iø44 of present and .,:rospaci;iv . Wt It is said ctll rccokntr political cilzst)ons; that any orga.niz:ttior we may sment will be defeated on account of the political pr:judicus of the past or of the present; and criticias are made of the First and Second Banks of the United States. I know of no person who would think for a moment of suggesting a systum or J.11 organization sirallar in wly respect to L:it21Jr t:te First or the Second ::001k of te United c:1.4nud fl 1C L,i101r Yorlk, and zcorea of tates. Conditions entirely T11,:ro 4..r.c1 a dozen banks in nvii An various other parta of thu mAntry, thAt aru more important in thoir operations and th(Ar charactr than either of those banks. But I have the utnost confidenco in CI,: intellir:ence :nd 7ood judment of thu American people. (AppLtusc.) And.. bc.i.:ve that if it W.lolad be tLourht wisi) by Youo by the Coruni ss i on, by thu corsensIls of intellimmt opinion of tha people of tilt: JnitudF/tates; to actopt any n:stuu; neither tho political prj ,iicas of '%;.,; pAot nor th,; gllost of Andrew Jackson (who died ;,AAny years aLo) will stand in thc way of the adoption of a pl.;%n tt 71J all 1:K11.1v of 1.11.; puoplJ of ti United bu for best interests Nonu of thi barko to which I.1t,VL: alluded h:4vt: ever been influrced in t:1(,I1r actiGn by any poliLical part:; or by any Tavurn:iert. Franco, for example: Takc the case of the Tlarl of The Bank of 7rance wan orr7anizod under the direction of tho first 7:-apoloon. A provizion was put into its great chdertr tit its governor appointed by the Chief of .r.ltate 41110016410 hold be not by the. 7,1mperor, not by the Icing, not by the Prer;ident, but by the ,ef of State. Villen I was in Paris last year I ot he crardaon of of 14'po3eonts great marshals, who was thn inventiating the early history of the Bank of FrKrco. He had An hJs por.vaunt)jn a dispatch sent by -4.1)olon from 1,:'It; field of Austal.litz just aftor the battle, An whIc:1 he called the attention of tht; rupresontative of th Btflk of Franco to the fixet that in his opinion tho traccosr, and ptclnanoe of that institution were of mor orIFILctnce to the people of 7rarot: than the victorios he wan aolevirr7. (Applallno.) 1;a, day to this the 13ark bin the ;Jank of 7ranc indeed or T,r.inco has alw3.ys the banh of the ieopls of Frc,.!, uoldin_ her credit and 1(1.7- honor. No ministry, no party, could afford to ie;nort; for a moN:11t this [Teat fact. Di mil seal and dishonor or p;so7t,7 rt Wee any iri rtry it endeavored for a moment to in fllienc action of th,-At groat n et tut i on, Thu Banl,e, of 7racJ has ir.r.one on uncle r ompurors, under kings, under revoiuti covornments, and under tha public, a1wAy6'o“.2.0 of th peoplu of FrLI,riou. ..N;Tun tYie bt4nk of Lho Inc the t lila of tho Commune the notos of Lhu Bank of lilnxice v,are o!Irrunt, and the premium upon 7o14 it Parlz wao ;old in '..7cw YorL. in 1907. oliaractr of t hi le BC t han 42;112 s':._OV/P3 treat in st the hurt or i on tho premium upon thc VW:tat ;Arig Of c"-1 has a plci.cu in th.ThY1 t'Li.E.t A s hBoIuteiy sucuro. To onc! of the great banks ever hars been or t- ver col ad be control:1:dd by any poli The tas?': beforu you and bafore us neann t co has too far-reachinfr, penults, for arid to .%)*inl- for a ont, tho.t any plan t. wolild be the football. o-t' poli t cs could or would bc adopted. I r...] ze airead:: I t is soucht, by 1:10e:t710 of vo1i'LiG1 lpfluancuss to di8crkJ;dit an: action of the ColiAJAI u on. fess i una.1 wri turn are erect Jrr tit 1reacid pro.. f ii.fruds ant'. t c:1011 s groat fluid of d sc1.4.9E1 on (I wax bruucht up on a farm, v-i'lere I 1.,,(1 to con IStrUCt 130;_c.rOCTOWS, • for .4174. the purpose of pulling them limb -fron limb, and calling attention to the fact that aftdr all thy are not mem of Aft) and of action. We 01)4.11 meet ali thus,.; (.:1H,3303 of ,lople. But we shall, of courso, expect criticien of any plan we may recommend. Eoneflt cri,icism is thu best thing we can posAbly h,N6 if w rfl confident ert to c&r wi ruslts. And wl,;r1 we do reach a cunc;insior w1lich cannot be for :An:I/ morts yet --- we sh,L1/ hi‘v%.; ,,hc 00operat An. of th conomir.itsai.1 thci bominestin of this great financil cantor. If w;: do not have it, it will not be lo,Jc;,3.une we shall no your assistance in L appaal earnestly, ai I do now. olutIon of tLis great problem. That is t,ht: orly word an to plans or as to the future that thQ ./letar:: (:o;Inis!lion has to utter tonight. And shall ba greatly dinap.,)olud f f yo•s;r rezpons!J is not alonc the linet of a patriotic doinion. (Great applause, followed by throe cbiura and a vote :ianYs.)