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NELSON ALDRICH




Monetary

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MISCELLANY




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11

4

---RESERVER -A-60001ATION OF AM-BRICA.
-

THE NATIONAL RESERVE ALECL,A210:4
OF THE UNITED STATES.

CIIARTER AND LOCATION.

It is proposed to charter the Reserve Association of America, which
will be the principal fiscal agent of the Government of the United
States. The authorized capital of the Reserve Association shall be
approximately $300,000,000. The length of its charter shall be 50
years. The head office of the association shall be in Washington,D.C.
The country shall be divided into 15 districts, and a branch of the
Reserve Association shall be located in each district.
The Reserve Association and its branches shall be exempt from
State and local taxation, except in respect to taxes upon real estate
owned by it.
CAPITAL.

4

Only national banks of the classes hereinafter provided for may
subscribe to the capital stock of the Reserve Association. A national
bank having a minimum capital of at least $25,000 may subscribe to
an amount of capital stock of the Reserve Association equal to 20 per
cent of the stock of the subscribing national bank, and not less, and
each of such subscribing banks shall become a member of a local
association as hereinafter provided for. Fifty per cent of the
subscriptions to the capital stock of the Reserve Association shall be
called in cash; the balance of the subscriptions will remain a liability
of the stockholders, subject to call.
Shares of the capital stock of the Reserve Association will not be
transferable, and under no circumstances may they be owned by any
corporation other than the subscribing national bank, nor by any
individual, nor may they be owned by any national bank in any
other amount than in the proportion here provided. In the case of
a national bank increasing its capital after it once becomes a subscriber to the stock of the Reserve Association, the national bank
shall thereupon subscribe for an additional amount of the capital
stock of the Reserve Association equal to 20 per cent of the national

••••••-•-

aro'




1




6

SUGGESTED PLAN FOR MONETARY LEGISLATION.

bank's increase of capital. paying therefor its then book value, but
only one-half of this additional subscription will be called in cash,
as hereinbefore provided. In the event of a national bank which is
a holder of the capital stock of the Reserve Association decreasing its
capital. it shall surrender a proportionate amount of its holdings of
the capital stock of the Reserve Association; or if a national bank
goes into liquidation, it shall surrender all of its holdings of the capital stock of the Reserve Association. The capital of the Reserve
Association so surrendered shall be canceled, and the national bank
thus surrendering stock in the Reserve Association shall receive in
payment therefor a sum equal to the then book value, as shown on
the balance sheet of the Reserve Association, of the stock so surrendered.
EARNINGS A ND DIVIDENDS.

The earnings of the Reserve Association shall be distributed in
the following manner:
After the payment of all expenses and taxes the stockholders shall
receive 4 per cent. Further earnings shall be divided, one-half to
go to the surplus of the Reserve Association until that surplus shall
amount to 20 per cent of the paid-in capital: one-fourth to go to the
Government of the United States, and one-fourth to the stockholders;
but when the stockholders' dividends shall reach 5 per cent they
shall receive no additional distribution. After the stockholders receive 5 per cent the earnings shall be divided, one-half to he added
to the surplus of the Reserve Association and one-half to go to the
Government. After the stockholders receive 5 per cent per annum
and the surplus of the Reserve Association amounts to 20 per cent
of the paid-in capital, 444-14443efl9.1444ittiiir€4-C4444.14-gA-444 the Government,
i

shall receive two-thirds of the net annual earnings,
and one-third thereof shall be added to the surplus of the Reserve Association.

The minimum dividends to the stockholders shall be cumulative.
LOCAL ASSOCIATIONS OF NATIONAL BA N KS.

All subscribing banks shall be formed into associations of nat ional
banks, to be designated as local associations. Every local association
shall be composed of not less than 10 banks, and the combined capital and surplus of the members of each local association shall aggregate not less than $5.000.000.
All the local associations shall be grouped into 15 divisions, to be
called districts. The territory included in the local associations shall
be so apportioned that every national bank will be located within
the boundaries of some local association. Every subscribing national
bank shall become a member of the local association of the territory
in which it is situated.




\-su444mwrilm-TTX77rOR

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MON ETARritOISLAT

7

DIRECTORS OF LOCAL ASSOCIATIONS.

Each local association shall elect annually a board of directors in
the following manner:
The number of the directors may be determined by the by-laws
of the local associations. 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 having one representative, and
each representative one vote, without reference to the size of the
bank. 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. but in voting for these
additional directors each representative shall he entitled to as many
votes as the bank which he represents holds shares in the Reserve
Association. At such elections there shall be no proxies. The authorized representatives of a bank, as herein provided. must be either
the president, vice president. or cashier of the bank he represents.

The directors of the libcal association

shall annually

elect from among ;their number a president, a vicepresident, and an executive committee, whose powers
and duties and terms of office shall be determined
by the by-laws of the local association, subject,
however, to the provisions of this Act.

DIRECTORS OF BRANCHES.

As heretofore provided, all the local associations shall be grouped
into 15 divisions, and each of these divisions shall be designated a
district. There shall be located in each district a branch of the
Reserve Association. Each of the 15 branches of the Reserve Association shall have a board of directors. and those directors shall be
elected in the following manner:
The board of directors of each local association shall elect by ballot
one member of the board of directors of the branch of the Reserve
Association. In this manlier there will thus be elected as many directors of the branch of the Reserve Association as there may be local
associations in the district in which that branch of the Reserve Association is located. In addition to that number there shall be elected
a number of the directors equal to two-thirds of the number of local
associations in the district where the branch is located. Such additional directors shall be elected in the following manner:
There shall be chosen by the banks composing each local association
a voting representative or proxy holder. In choosing such voting
representative each bank shall be entitled to as many votes as it holds
shares in the Reserve Association. The voting representatives of the
several local associations which form a district shall then meet at the
office of the branch and elect an additional number of directors of the
branch equal to two-thirds of the number elected directly by the local
associations; that is, equal to t wo-thirds of the number of local associations composing the district. Each voting representative at such
election shall have a number of votes equal to the number of shares




8

SUGGESTED PLAN FOR MONETARY LEGISLATION.

in the Reserve Association held by all the banks composing the local
association which he represents.
The first business of the board of the branch as thus constituted
shall be to add to its numbers by the election of an additional number of directors equal to one-third the number of local associations
situated in the district. Such additional directors shall fairly represent the industrial, commercial, agricultural, and other interests of
the district and shall not be officers of banks. Directors of banks
shall not be considered as officers.
The manager of the branch shall be ex officio a member of the
board of directors of the branch and shall be chairman of the board.
The board of directors of a branch of the Reserve Association will
thus be composed of—
First. A group of directors equal in number to the number of local
associations composing the district, and this group shall be elected
by the directors of the local association, each director having one
vote.
Second. A group of directors equal to two-thirds of the foregoing
group and elected by stock representation.
Third. A group of directors equal in number to one-third of the
first group, representing the industrial, commercial, agricultural, and
other interests of the district, and elected by the votes of the first
two groups, each director thus voting having one vote.
Fourth. The manager of the branch shall be ex officio a member
of the board of directors of the branch and shall be chairman of the
board.
All the members of the board of directors of the branch, except the
ex officio member, shall, at the first meeting of the board, be classified
into three classes, and the terms of office of these three classes shall be,
respectively, one, two, and three years. Thereafter members of the
board shall be elected for a term of three years.
DIRECTORS OF THE RESERVE ASSOCIATION.
•

The board of the Reserve Association shall consist of 45 directors,
and it shall be composed in the following manner:
First. Six ex officio members, namely, the governor of the Reserve
Association, who shall be chairman of the board; two deputy governors of the Reserve Association, the Secretary of the Treasury, the
Secretary of Commerce and Labor, and the Comptroller of the
Currency.
Second. Fifteen directors to be elected, one by the board of directors of each branch of the Reserve Association. They shall be elected
by ballot, each member of the branch board having one vote.




SUGGESTED PLAN FOR MONETARY LEGISLATION.

9

Third. Twelve directors, who shall be elected by voting representatives, one representing the banks embraced in each district. Each
voting representative shall cast a number of votes equal to the number
of shares in the Reserve Association held by all the banks in the
district which he represents.
Fourth. The board as thus constituted shall select 12 additional
members, who shall fairly represent the industrial, commercial, agricultural, and other interests of the country, and who shall not be
officers of banks. Directors of banks shall not be considered as
officers.
At the first meeting of the board all the members of the board,
except the ex officio members, shall be classified into three classes,
and the terms of office of these three classes shall be, respectively, one,
two, and three years. Thereafter members of the board shall be
elected for a term of three years.
No member of any national or State legislative body shall be a
director of the Reserve Association, nor of any of the branches, nor
of any local association.
The directors of the Reserve Association shall annually elect an
executive committee and such other committees as the by-laws of the
Reserve Association may provide. The executive committee shall
consist of nine members, of which the governor of the Reserve Association shall be ex officio chairman and the two deputies and the
Conipt roller of the Currency ex officio members.
Tile execut I ve 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.
elected by the boaril of direcThere shall be a ho:irll
tors from among its number, of which the Secretary of the Treasury
shall be ex officio chairman.

..r supervi,i1.1.

EXECUTIVE, OFFICERS ()E TIIE Ill SER\E

%MS( HI \TI(IN

The executive officers of the Reserve Association snail consist of
SIICI1 subordinate
a governor. (WI) deputy governors.
officers :Is may be provided by the by-laws. The governor and
deputy governors shall be selected by the Prosi(lent of the United
States from a list submitted by the board of directors. Tile governor
shall be subject to removal by the President of the United States for
cause. The term of office of the deputies shall be seven years, but
the two deputies first appointed shall be for terms of four years and
seven years. respectively.
In the absence of the !rovernor or his inability to act. the deputy
who is senior in point of service shall act as governor.




10

SUGGESTED PLAN FOR MONETARY LEGISLATION.
EXECUTIVE OFFICERS OF BRANCHES.

Each branch shall have a manager and a deputy manager. They
shall be appointed by the governor of the Reserve Association. with
the approval of the executive committee.
The powers and duties of the manager and deputy manager and
of the various committees of the branches shall be prescribed by the
by-laws of the Reserve Association.
FUNCTIONS OF THE LOCAL ASSOCIATIONS.

Any member of a local association may apply to that local association for a guaranty of the commercial paper which it desires to
rediscount at the branch of the 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 from—time—to—time
by the board of directors of that local association. The guaranty of
the members of the local association, in the event of loss, shall be met
by the members of the local association in the proportion to the ratio
which their capital and surplus bears to the aggregate capital and
surplus of the local association, and the commission received for such
guaranty, after the payment of losses and expenses, shall be distributed among the several banks of the local association in the same
proportion. A local association shall have authority to require additional security from any bank offering paper for guaranty. or may
decline to grant the application.
The total amount of guaranties by a local association to the Reserve
Association shall not at any time exceed the aggregate capital and
surplus of the banks forming the guaranteeing association.
FUNCTIONS OF THE RESERVE ASSOCIATION.

All of the privileges and advantages of the Reserve Association
shall be equitably extended to every national bank of any of the
classes herein defined who shall subscribe to its proportion of the
stock of the Reserve Association and shall otherwise conform to
the requirements of this act.
The Government of the United States and those national bankowning stock in the Reserve Association shall be the sole depositors
in the Reserve Association. All domestic transactions of the 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 coin
or bullion.
The Government of the United States shall deposit its cash balance with the Reserve Association and thereafter all receipts of the
Government shall be deposited with the Reserve Association or (when




SUGGESTED PLAN FOR MONETARY LEGISLATION.

11

necessary) with such national banks as the Government may designate for that purpose in cities where there is no branch of the
Reserve Association. All disbursements by the Government shall be
made through the Reserve Association.
The Reserve Association shall pay no interest on deposits.
The Reserve Association may rediscount notes and bills of exchange froisiege-stat.4-esisumeereisa-twoosstetiousT for and with the indorsement of any bank haviiig a deposit with it,

mers,
such notes asim it may have discounted for its custo
commerrediscounted for other banks, or purchased through
cibkers, the proceeds of which have been used for
^
commercial, industrial, or agricultural purposes, and
not for carrying stocks, bonds, or other investment
securities.
Such notes and
more than 28 days, and must have
bills must have a maturity of not
unt. The
been made at least 30 days prior to the date of redisco
in no case exceed the capital of the
amount so rediscounted shall
of such notes and
bank applying for the rediscount. The aggregate
or indorsement of any one person, combills bearing the signature
bank, shall at
pany, corporation, or firm, rediscounted for any one
cent of the capital and surplus of said bank.
no time exceed 10 per
depositing
The Reserve Association may also rediscount for any
siol-tasuabank notes and bills of exchange, snv.otik-e‘eagamee
__________,"
four months,
setAlems, having more than 28 days, but not exceeding
guaranteed by the local
to run, but in such cases the paper must be
is a member.
association of which the bank asking for the rediscount
the Reserve AssociaWhenever, in the opinion of the governor of
concurred in
tion, the public interests so require. such opinion to be
Association and to have
by the executive committee of the Reserve
the Reserve
the definite approval of the Secretary of the Treasury,
ion of a depositing bank,
Association may discount the direct obligat
ement of
indorsed by its local association, provided that the indors
secured by the pledge and deposit
the local association shall be fully
the local
with it of satisfactory securities, which shall be held by
Reserve Association; but in no such
association for account of the
exceed -tomecase shall the amount loaned by the Reserve Association
the securities so pledged.
+Meth of the actual value of
shall be
The rate of discount of the Reserve Association, which
the I Tinted States. shall be fixed from time to
uniform throughout
time by the executive committee and duly published.
on and the
The Reserve Association may, whenever its own conditi
ent. purchase to
general financial conditions warrant such investm
of banks or
a limited amount from a depositing bank acceptances
. Such acceptances
houses of unquestioned financial responsibility
maturity not
must arise from commercial transactions and have a
character generally known
exceeding 90 days, and must be of a
also bear the
in the market as prime bills. Such acceptances shall
bank selling the same. which indorseindorsement of the depositing
ment must be other than that of the acceptor.
bonds and
The Reserve Association may invest in United States
not more than
in short-term obligations—that is. obligations having




12

SUGGESTED PLAN FOR MONETARY LEGISLATION.

one year to run—of the United States, or of any State, or of certain
foreign governments to be named in the act.
The Reserve Association shall have power at home and abroad to
deal in gold coin or bullion, to grant loans thereon, and to contract
for loans of gold coin or bullion, giving, when necessary, acceptable
security for their repayment.
The Reserve Association shall have power to purchase from its
depositors and to sell, with or without its indorsement, checks .or-aA.4)
bills of exchange payable in England, France, or Germany, and in
such other foreign countries as the board of the Reserve Association
may decide. Those ills of exchange must arise ,from commercial
transactions and be of a maturity not exceeding 90 days, and shall
bear the signatures of at least three responsible parties, of which the
last one shall be that of a depositing bank.
The 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, through such agencies, prime foreign bills of exchange
arising from commercial transactions, running for a period
exceeding 90 days, and bearing the signatures o
sible parties.
tet
DOMESTIC EXCHANGES.

It shall be the duty of the Reserve Association or any of its
branches, upon request, to transfer any part of the deposit balance
of any national bank having an account with it to the credit of any
other bank having an account with the Reserve Association. If a
deposit balance is transferred from the books of one branch of the
Reserve Association to the books of another branch, it may be done
by mail or telegraph upon terms to be fixed from time to time by the
executive committee.
FUNCTIONS OF NATIONAL BANKS.

In addition to the rights now conferred by law, national banks
shall be authorized to accept commercial paper drawn upon them,
having not more than 90 days to run, iffetimoly-geow-e€15- and arising
out of commercial transactions. The amount of such acceptancesr
,
shall not exceed one-half the capital and surplus of the accepting
bank-,

and shall be subject to the restrictions of Section 5200
of the Revised Statutes.
4:11-tiewiLiin lairs
The organization of banks to conduct business in foreign countries
shall be authorized. The stock of such banks may be held by national
banks,

but the aggregate of bank stock
Cr;
exceed twenty per-cent of laisiihirr capital.

so Ifeld shall not

A

The bank so organized may have an office in time
(Tinted




national banks for domestic busiStates, but shall not compete with
busipe7 being. done in foreign,
ness not necessarily relatpl o the
AAA./
"
44
ts,,it:2
countries.
of national banks, to be l"
There shall be established *-41POW class
Such banks may have savknown by a specifically designated name.
properly secured loans on real
ings departments and may make
a certain proportion of the
estate; such loans to be restricted to
the bank. The reserve reaggregate time and savings deposits in
savings and time deposits
quirement in such banks will be less against
than against demand deposits.
authorized, which shall be
Another class of national banks shall be
designated by some appro, to be
in effect national trust companies
have all the priviand to exercise all the functions and
priate name
are given to trust companies
which
leges, including length of charter,
institutions shall
of the various States. These national
by the laws
to inspection and examination
banks,
be subject, like other national
National Government.
by the

These two paragraphs are referred to the ilational Lonetary
,
Commission, with the recommendation that they work out a
practical method to nationalize sings banks and trust companies.
There shall be no change in the percentage of reserve required by
law to be held against demand deposits by national banks, except as
otherwise provided herein, but the deposit balance of any national
bank in the Reserve Association

and the notes of the Reserve Association
n
shall be con--ted as a part of its legal
reserve.
.
REPORTS To THE(011 19'R0I,LER.

The 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 be made to the Comptroller of the Currency coincident
with the five reports called for each year from the national banks.
All reports of national-bank examiners in regard to the condition
of national banks shall hereafter be made in duplicate, and one copy
shall be filed with the Reserve Association for the confidential use
of its executive officers, and
branch manan—wp.
National banks of all classes shall heitdiffFIEMPe—ft Cktekly report
to the Comptroller of the Currency showing the principal items of
their balance sheets, such reports to be available for the use of the
executive officers of the Reserve Association.
NOTE ISSUES.

There is hereafter to be no further issue, beyond the amount now
outstanding. of bank notes by national banks. National banks may,
if they choose, maintain their present note issue, but whenever a bank
retires the whole or any part of its existing issue it will permanently
surrender its right to reissue the notes so retired.

k
14

SUGGESTED PLAN FOR MONETARY LEGISLATION.

The Reserve Association must, for a period of one year. offer to
purchase at
two and one-half per-cent premium and accrued interest
the 2 per cent bonds now held by national banks and deposited to
secure their circulating notes.

nent deposits.
and United States (lovern,
The Reserve Association shall take
-t over these bonds with the eix4iftg currency privilege attached and
assmirie responsibility for the redemption (upon presentation) of
outstanding notes secured thereby. The Reserve Association shall
issue. on the terms herein provided, its own notes as fast as the outstanding notes secured by such bonds so held shall be presented for
redemption. it being the policy of the United States to retire as
rapidly as possible, consistent with the public interests, bond-secured
circulation and to substitute therefor notes of the Reserve Association of a character and secured and redeemed in the manner provided for in this act.
Inasmuch as the Gov ernment will, receive all
profits of the central Reserve Association over and above the




limited dividends p:ovided for, it is only just that the
notes issued to replace the existing national bank notes
should be free of all tax.
The Reserve Association agrees to hold, for a period of not less
than 10 years, the bonds so purchased, or any Government security
which may be exchanged for them by refunding or otherwise. The
Reserve Association, however, shall have the right, with the approval
of the Secretary of the Treasury, after two years to dispose annually
of $50,000,000 of the bonds held by it to secure circulation. The
Government reserves the right at all times to purchase at par from
the Reserve Association, through the trustees of the postal sa vings
bank or otherwise, any or all of such bonds so held.
If the Government should adopt the policy of issuing securities at
a higher rate of interest than 2 per cent, the Reserve Association
shall have the right to exchange at par the Government bonds which
it may have acquired from the national banks, previously held by
them to secure circulation for any bands bearing interest at a rate
not exceeding 3 per cent, but in that event the amount of annual
taxes to be paid on notes based upon such new securities shall be as
much greater as the interest rate of the new securities shall exceed
2 per cent.
To illustrate: If the Government should decide hereafter to issue a
2-i per cent bond, the rate of taxation on currency issued by the
Reserve Association thereon would be 1 per cent, instead of one-half
of 1 per cent, as on the existing twos, and upon a 3 per cent bond the
rate of taxation would be 11 per cent.

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312,--VO

•




SUGGESTED PLAN FOR MONETARY
LEGISLATION.

In addition to the authority to issue notes to replace
any national bank notes outstanding at the time of the organization of the Reserve Association, it shall have the right
to issue additional circulating notes.
should not be subject to tax.

We believe these notes

There are no considerations,

either of income to the Government or penalty upon management.
that should lead to the imposition of such a tax.

If, in

spite of this fact, there are constderations that would lead
the Commission to impose a tax, we believe the plan sAgi4ested
for a tax Ls incorrect.
and wholesome

It would tend to prevent a natural

conversion of legal money now in ciitculation

into reserve in the hands of the Association in exchange
for its notes.

If a tax should be imposed, we believe that

its imposition in the first instance, and its graduated
increase, should be based on the Associations's proportion of
reserve to total deposits and note liabilities; that 1‘e
tax should only begin when that reserve fell to a certain
point, and should increase invrsely as the reserve decreased.

The Matiiimmml Reserve Association

shall have authority

to issue, (without restriction as to the relative proportions
of the different denominations) notes of the denominations of
$5, $10, 320, $50, and 1100, to take the place of the notes
of similar denominations prev iously issued by the national banks,
and shall be also authorized to issue notes of the denominations
of $500, $1,000, $5,000, and $10,000, for the convenience of
the banks in their daily settlements with each other.




d to the
All note issues of the Reserve Association must be covere
other lawful money, and the
extent of at least one-third by gold or
comremaining portion by bonds of the United States or bankable
or both. (It should be provided
mercial paper as herein defined,
foreither that the Reserve Association may also hold in its reserve
ry will issue gold certificates against
eign coin, or that the Treasu
all the
foreign coin.) The notes are to constitute a first lien upon
e Association, and adequate provision must be
assets of the Reserv
amade for their immediate redemption in lawful money on present
head office of the Reserve Association or any of its
tion at the
branches.
in
The notes of the Reserve Association shall be received at par
States,
payment of all taxes, excises, and other dues to the United
by the
and for all salaries and other debts and demands owing
associations, except
United States to individuals, corporations, or
cally
obligations of the Government which are by their terms specifi
or by one national bank
payable in gold, and for all debts due from
to another, and for all obligations due to a national bank.
The Reserve Association shall at once, upon application and withany
out charge for transportation, forward its circulating notes to
.
depositing bank against its credit balance
0

LTST OF ENGAGE
:%=; OF SANATOR
ALDRICH.

CHICAO, SATURDAY, NOVEMMR 6th:
Informal recetion, iia:Iiiton Club (creorge W.
Dixon, President), 12 noon.
Luncheon,
(James P.
Ernest A.
Reynolds)
(3)

Chicago Clearin House Committee
Fofgan, Chairman; John J. Mitchell,
Hani1i, Orson r)mith, and Geor$7e at Chicago Club, 1 o'clock p. in.

Dinner. The Commercial Club of Chicano, Congress Hotel, 7 o'clock p. in.

ST. LOUIS, TODAY, NOVEMBER 8th:

..--f-, c" 1
,I
(1) „IA inner, The Commercial Club (Hanford Crawford.

i ' .,,
Ai :
l
rgir i / iii.0t. ' v A- President),
i V
tr,-0

///

p. m.

h cs ,V.- tKA7SA3 CITIr, TUESDAY, NOVEMBER 9th:
i
(1)

Luncheon with F. P. 7eal,

p. in.

(2)

Dinner, Kansas cit.! Clearing House Association,
(F. P. Neal, President),

OMAHA, 7!E -EDAY, NOVEgREF 10th:
"
( )
Dinner, The Commercial Club of Omaha (Edgar
p.
Alien, Chairman Executive Co=ittee),

m.

MINNEAPOLIS, FRIDAY, NOVLIBER 12th:
r•ift




()

Dinner, :::inneapolis
(F. V. Prince, President),

:douse Association
p•
(.1.41L

ST. PAUL, SATURDAY, NOVEMMR 13th:
(1)

Diner, Clearing
4 p.
Paul, _7

Iouse Association of St.

ENGAGEMENTS -- page 2.

CHICAGO, SUNDAY, NOVELEER 14th:
(1)

Luncheon at Lake Forest, Owentsia Club,

p•

)MILWAUKEE, MONDAY, NOVET:LBER 15th:




.0 I

Dinner, Merchants' & Manufacturers' Association (illiam George Bruce, Secr(:tar:),
p. m.

'M
DE" IT, TUESDAY, 1TOIrE"TER 16th:
(1)

Luncheon, Detroit 73oa.rd of Coerce (Edward A.
p. m.
Sumner, President), J

(2)

Dinner, Detroit Bankers' Club,

1ZE"T YOTT CITY, 7HUR3LAY
(1)

'7

TTOVEI.TBER 18t h:

Dinner, Cha!lber of Co:amerce of the State of
7ew York, Waldorf-Astoria, 6:60 p. 411.

-!

That the members of the 1:ational ::lonetar_,, Commission,
or the survivors of them, who were appointed on the thirtieth day of May, nineteen hundred and eight underthe proy
visions of
to amend the

section seventeen of the Act entitled "An Act
national bankinE laws," approved 7a; thirtieth,
,

nineteen hundred and eight, Shall continue to constitute the
7ational monetary Commission until the final report of said
Corimission shall be made to Congres; an

said 7ational 'rone-

tary Commission are authorized to pay to such of its members
as are not at the time in the public service 4n, receivinc a
salary from the Government, a salary equal to that to which
said members would be entitled if they were members of the
Senate or 7ouse of Representatives.

acts or parts of

acts inconsistent with this orovision are hereby repealed.







A

1•

4-4

•

,44 •
•-••••

•

„. tit,
;
That the mqiibers of the 7ational Monetary Commi;ssion viivielit
i,
1
/
4
( ection seventeen of the Act entitled "An act to amend
the national 1:Inicin& laws”, approved May thirtieth, nineteen hundred
'
and el, ht, Aml-who we2e

pointed on the thirtieth day of May,

nineteen hund_.ed and eight, lez.Iiielmommoiwoos.tramtablamhall continue to constitute the Yational 7onetary Commission until the final
report of said CorrAssion shall be made to Congress;

and said

:ational Monetary Comlision are authorized to pay to such of its
members as are not at

ftmr

time in the piblic service or receiving

a salary fro:a the Government,

Ara ex_.tet

tet

,

Or

to which said members would be entitled if they were members
of the Senate or House of 1:epresentatives.

All acts or parts of

acts inconsistent with t,_is provision are hereb




repealed.

That tho members of the National TIonctar

Comni-nion

was orrmted by section ovventoon of tle Act entitled "An act to mend

the natioryla balkinr laws", apr,rovc:d
aid ci ht, and -rho we T. ap:)olnted on
,
Tlinetcen Mnd .cd aid eirht, or tiv

ninete . n hundrod

- a„;

thirtieth clay of

211fV1V0212

-f them,

con-

-1 *.ipuo to constitlac the National fTone.%.tary Commiion until t2 , final
rep,-,rt of said Corn -iz.sion nYall be mace to ConFresc;

and said

,
ftionia -onetary Co7.1:1son arr ;Ltthorized to pay to suc' of* it(:!
'
It
.!teinbFrs as are not - mak tine in V:e p hlic service er rce, Avin!
el

t'r fr the Go
.

,
(• r --1-n , .e4i/--crrr-rrerrrtr,rtt-

,
;low-Irrr,

j'
,1",,i ;A‘

Atapir

0,
.1E5 t-140—Arr-f.4.1----1-fm
• crrrr)cri-

,
to .thich said mr.7abers wo0d 1.)c entitled if they -r-r sle-11-rs
'rr.r..in
l

or Ilopc'e of heprrIlentn.tiv -r.

All s.ctl nr varts 9f

acts inQom:istent with tl.is pr()v-iniLn arrY herebj 1.('pealoo.




NATIONAL MONETARY COMMISSION.
WASHINGTON, D.C.

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SR,

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2,75
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5.51
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_

9 1911 i
iitzoot 1,,

rAt,r r

APPENDIX' A.

/6 L"

NUMBER AND CAPITAL OF STATE BANKS AND TRUST COMPANIES CLASSIFIE
G
az
^-1-k5 ,
C Co• - •
+o

ACCORDING TO.P)!PULATION OF LO
lLz0_.

frf,Cousbiled from Ti... Bankers' Direciory.]

a

New England States.

Eastern States.

Southern States.

Middle States.

Western Stales.

Pacific States.

-------Number of
banks.

Amount of
capital.

Number of
banks.

Amount of
capital.

Number of
banks.

Number of
banks.

Amount of
capital.

Amount of
capital.

Number of
banks.

Amount of
capital.

Number of
banks.

Amount of
capital.

STATE BANKS.
(Including stock savings banks.)
POPULATION 3,000 AND LESS.
•

I. Banks of and above $25,000
2 Less than $25.000

6

5
6.

170

49

$O. 567.090
50.880

1.183
1,964

842.18
9•395
.4.644 718

' 1.829

$60. 476,050

2.389

30.358. 583

168

495
1,691

814.618.000
20.257,865

.399
256

815,622461
3.218,869

10.9.36.000

32

5.973200
°

81

1,783,000
1,686.350

63
65

7.716,660
1.748.800

24.146,225
11.907,900

1,310.00
937"

3,t32,000

729_99•; 0
67
960,8

POPULATION OVER 3,000 TO 6,00.
t. Banks of and above S5o,00O
2. Less than $500200

2,618,5os

k•

182

11,046f 300

182

4.731,545

4,163.14\105

14.080.800
9.380.042

6o.044it

P4)PULAT1ON OVER 6,000 TO so,000.

5

1.580.909

4

. Ranks of and above Sroomoo
Less than Sioo,000

1 71.4
00

40
38

1.941,700

'148

283
.79

POPULATION OVER 50,00.
I. Banks of and above.
$200,000
2. Less than Stoomoo •
. .
i. Total-State banks conforming to national bank
standards as. regards capital .
•
2.r,,uit ate banks not so conforming

5.490,000

48,865.300

to

4

420.000

5. 776,125

94

19

7.325.409

62.213.990

11

658.044

1,489
2.438

321
167

8.599. 705

5,569 23
, 0
3.901.127

72.98e74
44,63

32

45.591,821
8.882.650

1.234

2,943

49
54

ra
0.096 '538
2•."
56.222, s , 1,900

17,711.000
26,642,215

39.403,666
3.541,011

583
442

75.052,137

22

916.760

11.469,578

r
--+

TRUST COMPANIES.

•.




POPULATION 3,000 AND L•ESS.
1. Banks of and above S25,000
2. Less than $25.000

30

1,580.0000

32

4

3. 563.6061
85.419

71
70

4.574.550
4 5 =40
8

•PIK
28
6

1,497,500
80.000

27
24

4
346.2

6

95,600

PoPVLATION OVER 3,000 To 6,00.
•••••...„

t. Banks of and above $50 000
.
Less than S5o.000

15

1.

4

920.000
100.000

49
4

6.370.625!
100,000

69

0
5 041.45
,

41

922,430

S
12

600,boo

19,652,700

18

3,926,000

3/

3,225,000
1,213,890

22

4.083. 300
t.o8,loo

27

20,060.380
2.239,055

8,

26, o6o• 440'

35
14

2.4,39.600

to8
87

420,000'

1111411k000

271,800

225,

POPULATION OVER 6,0oo To 50,000.
. Banks of and above Stoo,000
2. Less than St00,000

153

25
27

1,380.400

3

27.716.100

205

29,009.625'
120.000

/07

20,79,019

I00

4. 222.785

x8

POPULATION OVER 50,000.
t: Banks of and above Stoo,000
1. Less than $209.000

4g
8

I. Total trust companies conforming to national
standards as regard,capit al
2. Total trust companies not so
conforming.

16717—rt. OMNI!page

. 4

1.740.057 ,

118
49

212

183,698.3941
12.655.826'

222 6 .244
. 42
33.:9201:47
3

12.961.245

63
99

33,454000
7 559
, ,02

117

75,697,833

59

4.59 .600
6

29

000
1.956.500

310
310

63,865,319

288
t66

99,287,633

54
96

8.757.00
0
3,788.390

13.681.437

9,022.600

.3. 517.755

!9!
4
.)t,

_

—

9 1911
rfro-• . .FS otzoot
6 ki

APPENDIX' A.

44

APITAL OF STATE BANKS AND TRUST COMPANIES CLASSIFIED ACCORDING TO.PidPULATION OF LOCALITIES.

4
.7 4

fr

e
.1 D t e
icorsPlied from The Bantr1 7-1 ir s-iory.1

,

Number
banks.

Amount of
capital.

Number of
banks.

Amount of
capi '
Lai

596.880

Amount of

4

2,183

49

6

$6.567.090

Middle States.

Number of
'
banks.
a
cPit al
--__

Number of
banks.

270

00

$2

1
Southern States.
......_
_

astern Sta es.

New England States.

2,964

Pacific States.

Western States.

,
Amount of
capital.

Number of
banks.

Amount of
capital.

Number of
banks.

Island possessions.

Amount of
capital.

Number of
banks.

Amount of
capital.

Total United States.

Number of
banks.

Amount ot
capital.

•

1,820
642.289 395
24.624 728 , 2.389

860,478.050
36.358.583

114.628.000

495
2,692

20.257.865

845,642.464

4,082

3.218.869

399
256

6,350

8439.827.496

_- -32

2,783.000

63

7.716,600

82

1,686.350

6c

1.748.800

1.310.000

72

1'2)9c210

3,132,000

67

2,960,8. •

3,
;.

49

39.403.666

/

54

3.541.011

2.618.500

1.580,909

40

171,400

8
3

182

11,046•300

268

285.000

60,644

182

,731;545
4

232

4 163.1o4....0o5
218
941,700

14.680,800

/83

24.146,225i

II

9.380 0
4'

279

ii,st07,900
,

90

10.936,000
5.9,73,000 '

I

,,,,ii
,,

5,490,000
420.000

78
69

48.865.300

19

5. 776,125

94

7.325.409 .
658.044 1

322

62• 213.990
8.599,705

1,489

.
72,985 74

2.458

44,637 32

34,100.400

473

14,485,339

419

58,932,944

696

81,342,500
1

28,593,940

209

145,420.037
26.086. 91 i
_

...

45, 592,821
8.882.650

2,234

167

478
-„

2.943

9
5.56 250 \54
5.901 127 /

331

0.096

...138

17.711.000

583

75.052.137

5,18s

,
378.280,87

1,900

26,642.2i5

442

11,469,578

7.921

148,229,107

22

916,760

200

12,614,410

6
.....,,

00
95,6

110

2,592;459

114

56.222i

•'
I,,0

500,000

402

1.842,500

4

-

920,000
100,000

.563.600

,
,•".
71

4

1.580.000

85.419

70

49

4370,625

69

.32

4

3

41

100,000

•
4,574480
485.240

5,045.450
922.430

.

e
28

1,497,500

27

,6

80.000

24

4: •••
346.2••

35

2,439.600

8

600.000

5

.....,-.,
4. 7.8.2k000
}

18!

16,371.671

14

420.000

12

271,800

5

1 25,•••

So

2.939,230

2,060:000 ...„,432

81,140,644

.....

.375,060

153

1,280.400

).009.625
1
120.000

107
/00

20,795..019

408

29,652,700,

18

3.225.000

15

4.083.300.

4.222,785

87

3,926.000

31

1,213.890

22

1.058,100

3
I

._,... _.

37,500

2,1

11,87867!

1
i
27.716.100

205

112

3.698.394
2,655.828

63

1•740•057

439

2.642.244

310

63.86* 319

288

I23

2.961,243

310

13. Wit 437
?

I66

33.591. 100
3.120.457 ,




_

99

0
33.45400
7,5511,9
82
.....--..

75.697.833
4,596.600

117
59

rt

4.450.000

.38

203060.3801.

482

29
—

1.956.500

27

2.239.055

344

345,077.00'
30. 739,02(

14
06

S. 757,00o

33

26,060.440

3

1,090,000

L945

455,203.731

3.788.390

lo

3.517.755 i

I

0
37,50

805

46.149,5.81

•

'
99.287.633
9,022.600

-\i\k\AA&I)-(A) oa
-At45.(.• AI:LAfrik,
1a,tAk

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4

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e

•

Cckv \,
.
ko
7,8"6—oje o 0

ruAcek,01
YVkvAb
"

'TATES,

Thm'9''3

10

Maine,
New Hampshire,

-f

44-2. 37
/

.5—(o
Vermont,

33G(.41,
o

Rhode Island,
Connecticut,
ToTAL

/
NEW ENOLA ND STA

7

19

Delaware,
Maryland,

12

f-7

`0)-1
alA

a w\ss

S ;k

eckf\
;$t

Yku,v0A)

lo 3 1,17

,

•

u
o
ii"--).-vo

4

0
--

-.5- c

0

3- 11"

()c- 5-

Pennsylvania,

11

6
Iqg

Es,

New Jersey,

9

2-2

New York,

8

I g

14-

Atkw.koex o

00
o 000
I 7L5 0 0
-

isSe!6-7,
-

Massachusetts,

'aA& Ct

1 7 / 367370
cig- 70o0
II g
i2.7 0
137

District of Colinnbia,

10

7,6-3•;-'v
/ ),16 1“,
-3
-,

, 1-.
)
1

13
14
15

v

:
''.

,
#

TI Yrs-k 1.

;': tSTERN

i•:.TATES,

1

I

914 4 'I cf
(
I
---

Georgia,

18

i (_,-, 5 0
•--..'''

Floriila,

/

Louisiana,

22

4-3
i i 14
-

34f
-

i i l'‘I
‘•-•
/ s6

ii‘
-1Ff

Arkansas,

24

Kentucky,

25

Tennessee,

f
TOTAI SOL TH ERN

26
27
29

Ohio,
indisana,
Illinois,
Michigan,

30

Wisconsin,

31

STATES,

IS-74-,
41-1-9'
a7 '7,q10,7
i7 -/ 4g- Y1,”
c3

Minnesota,

28

3I
3'

32
.33

34
35

Iowa,

1

14-b
I 14- 14I0o

--

4-771)-1

.3 0

-cS101-1.3

'-('I
1.3c6
1 o0

7,333 rioo
'2/ 42- 7- 1 7 i i
,

I 1,i
'33•1-1




3
-0
(3 `bloc
f

03 ef
1) In

el 4
,

0

:
1
(3 -6 I 3.- n
f

(3

I

/

4 3 3 7 17 3 4

000

y

00

/

67
oo
7.3 ')—'?-- 0 0 oo
/47/0000
/
o 00 0
(r 'y

2-

8 4-f

,n

/7 7.-.51.1 4'3$ )0,
_)/ 3J- 77(
/ o
f
ve
4114
, (7
7 -5/4 3 3;4 00 0

-vt,;

0 00

0 a 00

3-i- 11, ,
6,
.

Ar
-fl

_1(

/6

2-7
I 44
0 `1'

J0

Cf

f-,3 if( 7 70

3 f (3 -1

cc.0111-1(7o Sip

07$3171
7
-I-

174 q0 0
-0s-

Missouri,

W.sr&
l'OTAI M notr. TATES,
X.
North Dakota,
South Dakota,

/

0
q,79 1170
.
3 .co 0 0
/ 0 0 00
0 oo
33— o

S' I

3 1
—

23

o oo

..5"--g1 3

Texas,

, 0,13
'2 13V

5
( 77,5
7
-470

/ 3 F4f0o 0

'ff)6(
i

Mississippi,

21

/%5—/S- L/L00

Alabama,

20

0
(0 / S L6- o
0
/ C-7000
F3g

-/ //c/

1-4)0 oil / "y- /

19

,4
/ 6

West Virginia,
North Carolina,
South Carolina,

17

(0/ o X-000

•

Virginia,

16

2- q
I 0 il

o 0i
-2

0

c
,

-1 Ai

zr/

f

t 771,

t,

•3 -=
,

9Z-t-9,sL

/

o
a. .,0
n
-t 1 '7s-y-b ji
Q
1. L
00o

• Ls c,
.

C1 0

Cl

o_s-

gbe o_re

05-os-.,' 9, g- I-t
o o o o L-.k.i

o o 0fis" 7
oscs'

cLLkf 0 Di
.

O

oo o7e-t

1
1.1

4

1_

s

<I

.4.-_g• 1 , ir
.

if i
,
*
ii

0 *0 0
c., 00 000,4_0

-,o479,
4,o1
/




1 If i
1

A

o) i
£01

"4

4 3cfi

41
00? 19 2
I -4i0(
b.0
A.ii1917_FL)
Si
°

)
LI. 0 ,
4 4.

• 41 6 47 75 ,
?

oLL

o

0

-cs 01
O 6-04 .
0s
/Ls Ls-0s Li

Li
L
oLb 4- 5
4 —?4,
t

t-bL

is 0

Lyl

O 00000q,

•

C)

a 6-t, 1-1
t
,
ta` c_Sig Lc-)

0(.
50_6 oil
—i,
01-c A-97 Lt.
1-_541 e I
I 5
O 0 A, 19
I-

A•

170/
•0

5‘

0
"1

p

L

C)) ' I
) - -r
0 9%.,t ) Ji
Lfoçjcb

CSI

o 0

L
0

n 0 07
O 04,444.7

L

•° C
)

0 0nor-p)
0

i

• oc•T tit

(p

0

elf;r3

NY.)

..,0\i5r.„cANAA

•.?„,..•„x.",40‘)sio..vairAvNk

Vtj

\

. 1,‘NA-0\t.A03
0 —erret
-4-1 17'
1 141
'
ct rTw

4

r
07
-1 #-41-1 rer e4-7Dr"
'
.
' 71
7C

Zti

01110,

27

Indiana,

28

Illinois,

29

Michigan,

30

Wisconsin,

31

Minnesota,

32

Iowa,

33

Missouri,

--f- (.,7
'2-70 0 FPf
4 6 rs-y
I 0 113
, 3 3 00
7 3

lr*

TOTAL

MIDDLE

s

A

North Dakota,
35
38

Nebraska,

37

Kansas,

38

W yotning,

40

New Mexico,

42

3„-

Oklahoma,

63 0 0 0
- -

0 SI,

St) 0

Colorado,

41

8
3
/
/ L.
/6.7014q

- 0

cl

\co 0
oo

/

/6 g

1“ c16.S
.

.1 3> I

W ESTERN ST A'r F,S,

o

/ o

"31-1 3 I
SI .5-S-

0

•6

1 6 0 ‘z.

fr767

TO'r A I.

,r) 33

O 00

Montana,

39

fr /jf jj'

d

S•7

South Dakota,

-100

4,

/ 0 0. 0
/
O0 0
/70
L, I I
0

3•233

A.

ly...-

" i"

o

0

7.3

/

'

r

7
s4.3 0 0 0
-

oo0
0

0
6
-0 0

/

c

•.

43

Washington,

44

Oregon,

45

California,

46

Idaho,

47

Utah,

48

Nevada,

49

Arizona,

50

Alaska,

4-t 9c

1

/

„
f
rl

2/0 i44-

/00 •0 0

64
-

TOTA I. PACIFIC STATES,
51

Porto Rho,.

C7
t

1

Lf

9 ‘2 9

/ C.) 0 0
07
/000 c c,
1,;(4f--,INAL
sr

II IS01

(.4l1 . •
.
oTAI, Ist.A N I) PoSSESSIONS,

TOTAL UNITED STATItl,
I
aL.-e.12

4.11.4

.21t




4
-4(

•

7

Hawaii,

52

0 0

o 00
7_7y00 O 0
*-2-0 O 0
/0300 O 0

`f
13

0

7 7 o0
'
s 0 3 7J0

(•/'11(lic
77311

o

•

3

•

- • . •
7
=
-

1 1-11

1

Pt

01 p

0 / .41-6-....
- 131
"•-•
"

t L4- ).
I) -Ao

33

it - fro-,
1 1"J
,

04.410
j, 1 1 0-t
A-+- --

2 3q
//f/4 if $7
3,0• G 4)
,

53ci 3 v4
-53 11
•
-€4.1_"...

it}ga.

v-.".4-.1 4 -co )-,..*"

Ai Orly-vv.

,f
I&
A.Art,

.„

it- at.,

--t,s4 7g L5.61

it

az_
6 0-ti$sloc
5




c5-4.1

fr,1.911

I•

O 00000-i
Lsbp Ls-)
°a c

.16

o

54_9/

0 )0-410--t,1
•

• oc A
, -Lb
7444,4-'1_

O 00 LoL-1-1
O SJ

to)

:
c

j
_cs

S
•

1

5

1 .-.f
1

CIOC"

ssI

O

c

2
o 01

0 GIL?

0 0

n

0

O

)
SIil b -/

,
O 00 G )--t.
91-7

0 ctji 15'
SA--1-10

0_7/ c29/
O 0o
0

L

1'0

O 0 0

0,9'S, 0 0 /

0 0j
,

() 0 0

0 0 42
1
OJio

O 0 CP CZ` 11_
. 5'
.

6)1)

9L - (
t b51-11

rN

oc1)4./0 0)
dt ic iy

•°

S 45'

3*

- h fry

re

/

1 )

e. c4,„
°, LS

6; 9y

1

•0 0 0 (.1 k.

„Li ocLj,

O 00

oc,

e

O 0 CI

J-LL.ks- 0041
O 0c.)

•

L

c
)

c-LLbi-;17
L0

D 011

000 0 0 0

O 09

C

o

.1 9, 0
)

_




AVANT-PROJET DE LEGISLATION MOYETAIRE

souais

A LA

COMLISSION IONETAIRE NATIONALE

par

l'honorable NELSON W. ALDRICH

:

41.

Edition revue et

corrigee

Octobre 1911.-




TH1; ITATIONAL REEHV1 AOCIATIGN OF THE
UNITED ETATES.-

CHARTE ET SIEGE E)OCIAL

eat oropose d'accorder

une chrte

pal
a la"7ationrl Reserve r3ssociaticn"qui sera le princi
capite,1
agent fiscal du louvernement des Etts-Unis. Le
de la " National Teserve Aseociation Fieleverv,

autorie
a 20

du capital dee Eanques pouvant faire partie de

doll'association. (Apnroximativement 300 millions de
lars).

La duree de la c;iarte sera de 50 annees, le

siege central de l'asociation eera it Washington, D. C.

CAPITAL

1.- Toutea lee Banquea nationales, lee
Banques d'Aat et lea Trusts Companies qui rempliront lea
conditions requises pour faire partie de l'associationet

enonceesci-aprt,s (

-c
59 4 (3 )r - ourront souFcrire au cc.-

lE " 1;ation4l Reserve AesocicAtion.

Le mot

" Banque " employe ci-apres devra etre consider
E'appliquant

toute6 le

carr. e

rInles nationales, banquee d'-

ions
tElt, et trusts companiee qui rempliront lee condit
requiFes pour faire partie de l'association ci-nres
nonc4e$.

4-




- 2 -

-AtEl minimum de
Une banque ayant un cci
25 millions de dollars pourra souscvire a une part du
capital de la " National Reserve Assocition ",gale
a 20

du coital de la cute Banque,et chacune des ban-

ques souscrivantEinei deviendra_ membre d'une association locale, comme il et dit plus loin.

Cinquante

pour cent des souscriptions au cnpital de la " National Reserve As:bcilltion

seront apl)eles en especes; le

solde des souscriptions restera

da

par lessouscripteurS

et suece2tible d'tre appe16.

Les actions de la " National Reserv6
Association " ne seront paE cessibles et ne pourront
en v.ucun cp..s

tre posoed6es per une ecictt autre que

la Bncue solscrilptrice, ni par des particuliers; et
,
elles ne pourront op.f

tre oosecid6es par une banque,

en quantit4 autre que la proportion )rvue
Si une banque souscriptrice augmente son capital, elTe devra souscricre immdintement a une part
nouvelle du capitql de la " National Reserve AssocirAtion " egale 4 20 % de l'auqmentation de son,capitl-il,
en payant acs nouvelles actions afevet valeur
)
telle qu'elle r4sultera lt ce moment du biln de
Fociation.
Si une 17.nflque souscriotrice 1-.1duit son
capital t elle devrfJ clIpandonner une partie corces -oondnnte
de see

cLins de la " Nctional Reserve AsLoulation "
Si une banque entre en liquidtiou1 elle ae-

vra abandonner toutes see actions de li

National

Reserve Associr,tion " • lee actions Coa-adonnees seront
annules et la .77 c,nue recevra en t'ch
,
le 'r

d'iTiventairie.

L

ie somme




Une banque sollicitant son admission dans
l'Association, apres la fmation de celle-ci, devra
souscrire a une part proportionnelle du ca ital de
l'Association en payant lee actions

4 leur valeur

d'inventai:7e.

BENEFICES ET DIVI-MNDES

(4) Les benefices de la. " National Reserve
Association " seront distribues de la maniere suivante :
Apres le paiement de toutes lea cipenses et
des imOts, lee actionnaires recevront 4 %.

reparti :

des benefices sera ainsi
La

Le solde

moiti4 sera jointe aux reserves de la

I;ctional Reserve Associntion
,

” jusqu'a ce que lee

reserves s'elevent a 20 % du capital verse; un quart
sera

verse au Gouveraement des Etats-Uais; et un quart

aux actionnaires; mais quand le dividende des actionnaires
atteindra 5 % us ne partici)eront plus aux disjtributions additionnalles.

Ares que lee actionnaires

auront recu 5 %, lee benefices seront
sorte, qu'une moitie soit

ajoutee aux reserves de la

National Reserve Association " et

versee au Gouvernement.

repartis de tel1e

qu'une moitie soit

Apres que lee actionnaires

auront reeu 5 % et que lee rjserves s'jlevront a 2 0 0
du capital

verse; tout l'excedent des benefices sera

distribu4 au Gouvernement. Le diVidende minimum des
actionnaires sera cumulatif,




ORGANISATION

(5).- Toutes lee banques souscriptrices seront
reunies en associations de 1::anquesqui seront designees
sous le nom d'" associatioralocales".

Cll(ue associa-

tion locale aura le caractere et les,lroitsae oersonne
qorale.

Elie sera compose d'au moins 10 banques et

l'ensemUle du capital et des rtste:rves des membres de chaque association locale ne devro

pas s'elever a moms

de 15 millions de dollars.
Le territoireeoavert par lee associations
locales sera divise de telle sorte que chaque banque
soit sit'lee dans lee limites d'une association locale.
Chaque banque souscriptrice de-viendra membre de l'asociation locale du territoire cur lequel elle sera situee.

(6).- Toutes lee associations locales seront
groupees en divisions a,)pel6es districts.
Le territoire des Etats-Unis sera divise au
d4but en 15 districts qui seront determines Oans le projet de loi prepare par la Commission mon6taire Nationale;
et uric succursale de la " National Reserve Association "
sera situ6e dane chaque district, son siege devant etre
d4termine par lee administrateurs de la " National Reserve
As HOC

11.

le district pourra etre modifie. de temps en

tem)s; et de nouveaux Aistricts et de nouvelles succursales pourront etre cr6s par lee administrateurs.

0).succursales et le

La " National Reserve association ", see
associations locales seront exemotes

d'imiAts d'etat et d'imiAts locaux, exemption faite pour
lee imiAts sur lee biens immobiliers.




PERSOITJEL ET AITTINISTRATIO
(A) Administration des asEociations locales.-

(8) Chaque association locale elira annuellement un conseil d'administrateurs dont le nombre sera
determine par les statute des associatione locales.
Lee trois-cinquiemes des administrateurs seront
elus au scrutin par les representants des banques faisant partie de l'association locale/

Chaque banque ayant

un repr4sentant et chaque representant une voix, independemment le l'imortance de la Banque. Laspeux cinquiemes
des administrate -urs de l'aesociation locale seront elus
par les mes repreentants des di ferentes banques faisEnt partie de l'association, mais pour l'election de
ces administrateurs cliaque i'epresentant aura antant de
voix que la Banque qu'il repr4sente,00ssede d'actions de
la

National Reserve AE;sociation ". Pour ces elections

11 ne pourra y avoir de mandataires.

Lesrepreentantau-

toris:i3d'une banque, comme il est alt plus haut, devront
"6tre le Presids-nt, le vice-Pri:sident, ou le caisuier de
la B:.".4e

(B) AD=ISTY:AT2TRS DES SUCCURSALES

(9)- Chacune des succureles de la "iationsl
Reserve association " aura un conueil d'ad:ninistrateure
qui ser

elu de la maniere suivnnte :
Le conseil des administrateurs J

chaque asFo-

ciption locale elira au scutin un membre du conseil des
administrateurs de la succursale (i.e la "Nntionpl Reserve
association ".

De cette maniere il sera elu autant d'ad-




ministrateurs de la succursale de la " i,atioaal Reserve
association " qu'il y aura d'associations locales clans
le district oil la succursale de la " National Reserve
association

II

sera situe:—

(I0) Outre ces adminisLrateurs, il sera elu
de la maniere suivante un nombre d'administrateurs egal
aux deux tiers du nombre des associations locales du
district oh la succursale sera situee.
Les banques composant cheque association locale
designeront un repr6sentant ou fonde de pouvoirs. Pour
la d4signation de ce representant chaque banque aura
autant de voix qu'elle ooscedera d'actions de la " National Reserve Association ".
Les representants des diff6rentes associations
locales qui foment un district eliront un nombre additionnel d'administrateurs de la succursale, 4gal aux
deux
tiers du nombre des administrateurs 41us directeme:It
par
les aE;Fociations locales, c'est--dire 6gal aux deux tiers
du nombre des associations locales composant le district.
Chaque repr4sentant aura pour cette Election
un nombre de voix egal au nombre d'actions de in " National reserve af- sociption " possedees par toutes les banques
composant l'asc, ociation locale qu'il repreente.

(II) Le conseil de la succursale, ainsi coscompletera imrC.dietement le nombre de ses membres
par l'election d'administrateurs en nombre 4gal aux tiers
du nombre des associations locales situ4es dans le
district.
Ces administrateurs supplemeritaires devront

repr6senter fidelement les interets tndustriels,
comer-




ciaux, agricoles et autres du district et ae dwvront
pas etre des fonctionnvires de banques. Les adiiimistrateurs de Lanque,sne seront pas coneider6s comme
fonctionnaires.
(12) Le Directeur de la succursale sera
d'office membre du conseil des administrateurs de la
succursale et sera repr:sentant du co;iseil.
Le conseil des administrateurs d'une succursale de la " National Reserve Assocition " sera
ainsi
compose de :
10- Un groupe d'administrateurs egal au nombre
dee associations locales composant le district
et ee
groupe sera elu par lee associations locales, cimIqu
e
association ayant uae voix,
2°- Un groupe d'edministrateurs egal aux deux
tiers du precedent groupe et elu en tenant compt
e du
nombre d'actions poss4dees par chaque association
locale.
30- Un groupe d'administrateurs 4ga1 an nombre
a un tiers du premier groupe, representant lee interets industriels, commerciaux et ae7ricoles
et autres
du district et elu par lee deux autre
s groupes, cttaque administrateur votent eyant une
voix.
40- Le directeur sera d'office membre du eonsell des ndministreteurs de is succursale
et sera
PrF;ident du conseil.
(13) Tous lee rembres du Cnseil de la succ
ume,
excepte lee membres a'office, seront, lore
de la premiere
seance du caseil, repartis en trois
classes, et le durt4e
des fonctions de ces trois classes sera
respectivemeni: de
une, deux, et trois an:16es.




Par la suite lee membres du Conseil sero
nt
elus pour une duree de trois ans.

C.- ADMINISTRATEURS DE LA NATIONAL
RESERVE ASSOCIATION.-

(I4).- Le Conseil de la " National Rese
rve
Associati

If

se composera au d4lout de 45 administ
ra-

teurs et sera constitue de la maniere
suivante :
Premierement.-

Six membree d'office, savoir :

Le Gouverneur de la " National Reserve Asso
ciation "
qui sera President du Conseil, deux Sous
-Gouverneurs
de la " National Reserve Association
", le Secretaire
du Tresor, le Secretaire du Commerce
et du Travail et
le Contr51emade la Circulation,
(15) Deuxiiimement.- Quinze administEate
urs
qui seront eluv l ilt raison de un, par
le Conseil des
acVlinistrateurs de chaque succursa
le de la " National
Reserve Association ".

Si par la suite le nombre de

districts a augmente, chaque dist
rict supplementaire aura droit a elire un administrateur
aapplementaire.
Troisiemement.- Douze administrate
urs
qui seront elus par ies represen
tants deodifferents districts, Chaque repr6sentant ayan
t un nombre de voix
ipaigzkxau7;:mackhraxottaxttrammxpaarxxt

iaa egal au nombre

d'actions de la " National Rese
rve Association" :oss6dees par toutes les banques du
district qu'il repr6sen-

tera.
(I7) quatriemement.- Les vingt-sept
administrateurs ainei élas elir nt

leur tout 12 administra-




teurs supplementaires qui devront representer f'idelement lee int4rets industriels, commerda4x 2 61Z
agricoles et autres du pays, et qui ne devrit
etre f„pnctionnaires de banqul.
Les administrateurs de Nanque5Ae seront pas
consideres comme fonctionnaires.
(I8).- Ii ne devra pas etre choisi par le
/name district plus de 3 administrateurs elus conformement aux 5 16 et 17.
(19).- Lore de la premiere seance du Conseil
tous lee membres de celui-ci, sauf lee membres d'office iseront repartis en trois classes et la 'iuree des
fonctions de ces trois classes serH respectivement de
un, deux, et trois ens.
Par la suite

_es membres du Conseil seront elus

pour une duree de trois ann(les.
(20).- Aucun membre da corps legislatifs iiationalat
ou d'EtatSlie pourra etre adminirateur de la " _ational
Reserve AsociPtion ",

aucune de see succursales ni

d'aucune association locale.

D.-

COMITS -)E LA NAmI07AL RESERVE
ASSOCIATION.

Les admiistrateurs de la " National Reserve Association " 4lieront annuellement dans leur sein un Comit4 ex4cutif , et tels'utres ,;omit4s que prevoiront lee
statIts de la"National Reserve Association". he Comit4
ex6cutif se c(waposera de 9 membreedont le Gouverneur de




- 10 -

la " National Reserve Association " Fer. d'office Pre404
sident et lee deux Sous-Gouverneuri, et Le Contr'51eur
Juird,
de la circulation mem,Dres d'office; male ii ne oourra pas
etre choisi dans le rqeme district plus d'un membre elu
(22).- Le Comite executif aura lee couvoirs qui
sont attribues au Conseil des Administrateurs /

l'ex-

ception de ceux qui seront specialement delegues par le
Conseil, auxt'autres Comites ou aux agents d'execution
ou qui sercnt specialement reserv6s ou retenus par le
Conseil.
( 23 ).- Ii y nura un Conseil de surveillance
elu par le Conseil des Administrateurs dans son sein et
dont le Secretaire du Tresor sera d'office President.

E.-

AGENTS D'EXECUTION DE LA "NATIONAL
RESERVE ASSOCIATION".

( 24 ).- Les aqents d'execution de la " National
Reserve Association" consisteront en un Gouvereur,
_41
4
deux Sous-Gouverneurs, un 6ecretaire et q;aek-ques agents
subalternes que prevoieront lesstatuts. Le Gouverneur
sera choisi par le President des Etats-Unis Bur une liste
qui lui sera soumise par le Conseil des Administratears,
ii pourra etre revoque par une decision motivee du Conseil des Administrateurs prise a la majorite des trois
quarts. La dur4e dex fonctions des Sous-qouverneurs sera.
de sept annees, mais lee deux Sous-Gouverneurs élisi
d4but ne resteront en fonctions cue pendant cuatre
et sept annees respectivement.




Les sous Gouverneurs seront glue par le Conseil des administrateurs; ils pourront Atre en tout

temps r4voques avec juste motif et remplaces par le
En cas d'alOence ou d'empechement du Goue--

Conseil.

neur, le Sous-Gouverneur le plus ancien en f,nctions
le sgpleera.

F.- AGENTS D'EXECUTION DES SUCCURSALES

(25) Chaque succursale aura un Directeur et un
Sous-Directeur nommes par le Gouverneur de la " 1;ational Reserve Isocivtion " avec l'approbation du Comite
executif.
(26) Les pouvoirs et attributions du Directeur
et du Sous Directeur et des divers comites des succurssleE seront fixes par lee statute de la " National
Reserve Association ".

G.- AGENTS D'EXECUTION DES ASSOCIATIONS
LOCALES.-

(27) Les admibnistrateurs de

'AssociJition

eliront annuelleast dans leur sein un President,
un Vice -President et un Comitt; d'gxecutif , dont lee
pouvoirs, lee attributions et la dur4e de

.Jnctions

seroOt determin6s par lee statute de l'association locale, sous

reserve toutefois des dispositions de la

pr4sente loi.




- 12 -

(28) Les associations locale, lee succursales
et la

'I

National Reserve Association

auront chacune

des statute qui prevoieront Lntre autres,ia manier
e de
pourvoir aux vacvnes pouvant se produire dans leurs
Conseilsrespectif.

FONCTICNE DES AUOCIATIONb LOCALES

(29) Toute tanque faisant partie d'une asFociation locale peut demander a cette association
d'avaliser le papier comercial qu'elle desire reescompter
a la succursale de la

National Reserve Arsociation "

de son district.
Toute banque recevant ainsi l'aval d'une assockatjon locale paiera a celle-ci une commission qui sera
fixee dans chaque cas par le Conseil des administrate
urs
de l'association.

En cas de perte% rsultant pour l'as-

sociation locale de l'aval donne par elle, cette perte
sera supportee par lee mem-tree de l'association confor
mement au rapport qui existe entre leur capital et leurs
restxves, et l'ensemble du capital et des

reserves de

l'association locale; la commisiion recue pour
cet aval
Bei.;

pre oaiement des pertes et des frais,distri
buee

suivnt la meme proportion entre les divers
composant l'asrociation locale,

anques

Une association locale

sere en droit d'exiger des garantiee
supplemelitaires de
toute banque pr4sentant du papier pour
etre avalise, ou
elle pourra refuser de donner suite a is
demande.
(30) Le montant total des engagements d'une




- 13 -

association locale envers la " National Reserve
Association " ne pourrakaaucun moment exceder le
montant
total du capital et des reserves (dtAb banqueco
nstituant l'association rikdpabd,don,ie son aval
.
(31) Lee associations locales pourront, a la
majorite des trois quarts de leurs membres, et avec
l'approbation de la " National Reserve AssociLtion
"
assumer dans l'intert reciproque de leurs membres
d'autres fonctions, etaravip1 "

our la " National Re-

serve Association " tels services qui ne seront
pas en
opposition avec la pr4sente loi et ne seront
pas interdits par le s droits commune.
(32) Les asociations locHles nomz,eront des
ins ecteurs oui auront le droit de verifier
la situation des banques composunt l'association,
suivant lea
reglements qui pourront atre adoptes par l'as
sociation
locale avec l'ap?)robation de la " Nati
onal Reserve AssooiLii ,)n ". Copie
vr

.
2tre fo.rii

des rapports de ces inspecteurs deaux agents d'execution de la " 1:atio-

nel'1-:,
2serve AFsociction " sur leur demande.

FONCT IONS DE LA " NATIONAL RESERVE
ASSOCIATION 5

(33) Taus lea privileges et evantage
s de la "
tional Reserve Association " sero
nt equitatlement etendus a toute banque faissnt parti
e de la categorie enoncee dens la preisente loi eui
souscriront
11:le partie du
capital de la " National
Reserve Association,arempliront
par silleurs ies conditions
requises per la pr4sente loi.

a




- 14 -

(34) Le Gouvernement des Etats-Uni
s et lee
banques posedant lee actions de
la " National Reserve
Associ3tion
seront lee seuis cieposants de la
" 1:ational Reserve Association ".
La
National Reserve
Association " ne pourre faire aux
igtats-Unis d'optirationB qu'avec le Gouvernement
et avec lee banques souscriptrices, a l'exception de l'a
chat et de la vente
de titres du Gouvernement des Eta
ts-Unis ou des Etatsca4W4
i
detb Aiiite2 des etats krangers
et d'or monneye ou en
lingot.
(35) Le Gouvernement des il,tats-Unis
deposer2-1
see fonds disponibles a la "
National Reserve Association " et i par la suite, toutes
lee recettes du
Gouvernement eLront deposees a la
" .;ationtil Reserve
Association It
t.urrlAcette reserve que, en cas de nec
essite f le Gou7v.rnement pourra designer
, t cet effet, des
banques nationales dans lee villes
o6 ii n'y aura pas
de succursale de la " National
Reserve Asociation
Tous lee paiements faits par le Gouv
ernef,ient Feront
effectues par l'irtermdit-Jire de
la " National Reserve
Association
(36) La

National Reserve Association

ne

paiera aucun inter'et sur lee dep
ts.
(37). La " National Rese.:we Associati
on " peut

reescompter

toute banque ayant un dept chez elle
,

avec l'endos de cette banque, des effete
, et lettres de
change crees h l'occasion d'operations
commerciales.

Cette expresbin,Torsqu'elle est emp
loyfe,
s'applique

h tout effet eV _ettre dL che cre th.n
s

un but agricole, commercial ou tnd
ustriel et non en vue
d'operrtions sur actions, obligatio
ns, ou autres valeurs




- 15 -

de placement.
Ce* effeteet lettres de change xi devrant
avoir une echeance n'excedant pas 28 jours
et avoir

ete erees 30 jours au moms avant leur r4escomp
te .
Le montant einsi reescompte ne devra en aucun cas
exckter le capital de la Banque sollicitant
le rescompte, le montant total des effete et lett
res de
change portant is. signatre ou l'endos d'un
e seule
personne, compnEny, " corporation " ou mais
on de com-

meree

Zie rj:escompte

une banque quelconque ne

devre en aucun cas exceder 10 % du capital
et des r6serves de la dite banque.
(38) La " ITational Reserve association

pour-

ra tgaaement r4escompter a toute banque
depovente dee
/
effete et lettres de change crs a l'oc
assion d'operations commerciales come il est dit plus
haut, ayant
plus de 28 jours, male pas plus de 4 mole
a courir,
mais en pareil cas le papier devra etre
avalise par

l'association locale, dont la banque sollicitant le
re.cscompte fere partie.
(39)

Lorsque/ de l'avis du Gouverneur de la

n National Reserve Asviociation " l'interet
public l'exigera - cet

ONiS

devcolatre partage par le comit6 ex4cu-

tif de la " National Reerve association
" et recevoir
l'approbation formelle du Secretai
re du Tresor - is.
" ::ational Reserve Associat
ion II pourra escompter l'obli
gation directe d'une banque
d6posente endose6e par
son association locale, 6.
condition que l'endos de l'a2sociation locale soit pleineme
nt garenti par le nantisce-




- 16 -

ment et le dept chez elle de gara,itizas satisfaisantes, lesquelles seront cons rvees par l'association locale pour le compte de la

National Reserve

Association "; male en aucun cns, la somme endos1-:6e
par li " National Reserve Accociation

ne pourra

exceder lee trois quarts de la valeur reelle des garanties ainsi fournies.
(40) Les taux d'escompte que la " National
Reserve association " aura le droit de fixer de temps
en temps, seront publies et devront etre uniformes
dans toute l'etendue des Etats-Unis.
(41) La " National Reserve Associaion

pour-

ra, lorsque sa propre situation et is situation finan-

ciere g nersle justifieront ce plvceTnent, acheter
en quantite limitee h urle banque souscriptrice des
acceptations de banques ou de maisons jouissant d'un
credit financier inconteste.

Ces acceptatios devront

resulter d'operations commerciales, ne pas avoir plus de
90 jours a courir et etre de la categorie generalement

connue sur le marche sous le nom de " Premiere signature "
gee acceptations devront porter l'endos de is banque
souscriptrice qui lee aura vendnes, lequel endos devra
etre autre que celui de l'accepteur.

(42) La " National Reserve association

pour-.

ra faire des placements en obligations des Etats-Unis
et en obliutions h court terme - c'est-a-dire n'ayant
pas plus d'un an h courir - des Etats-Unis, d'un Etat
de l'Union ou de certains Etats 4tranc;er6 qui seront

Vsignes dans la loi.
(43) La

National Reserve A&sociation “ aura

aux Etats Unis et h l'tranger le droit de faire le
commerce de monnaies et lingots d'or,

de

con-




sentir des avances sun ce metal
et de contracter des
emprunts sur des monnaies ou lin
gots d'or en garantissant/lorsque cela sera_ necess
air l le rEmbursement
de ces emprunts par dee valeurs
scceptables.
(44) La " National Reserve Associ
ation "
aura le droit d'f:cheter vux ban
ques souscriptrices
et de vendre avec ou sons son
endoes cheques ou
lettres de change payatles
en Angleterre, en France,
en Allemagne et dens les aut
res pays etrangers... lue
i
le Conseil de la " iTationtd
Reserve AsE,ocitltion It
pourra fixer. Ces lettres
de change devront result
er
d'operations commerciFles,
ne pas avoir plus de 90
jours
courif et porter le. signat
ure de deux ou plusieurs personnes oolvableP
/ Jont la dernittre devra etr
e
une tanque depost,nte.
(45)

La " National Reserve Associ
ation "

aura_ le pouvoir de se
faire ouvrir et de conser
ver des
comptes de banque dans
lea pays etroni ers et d'e
,
:
tablir
des agences dF.ns :.es
pays 4tranEere a l'effet
d'acheter
et de vendre des lettres
de change etrangeres.
Elle
aura le droit de vendre et
d'cheter par l'interme
diaime
/ de see corresponth.nts ou aen
ces., de El cliegues ou
des
lettres de chanr:c (troll
ers de premier ordre/ rsu
ltant
d'operations commerciale
l n'ayant pas plus de Y'0
jours
a courir et portant la
signature de deux ou plu
sieurs
personnes solvables
.

TRANSFERTS DES 7
1 0DS A L'INTERaUR
(46) La_ " National Reserv
e asFociation " cy_i uzt
quelconque de see sun
cursalea si elle en eat
requise,
aura l'obliP.ation de
transferer une partie
quelconque du




- 18 -

solde d'une banque

yant un compte chez elle au cre-

dit d'une autre banque

yant un compte a la "

nal reserve ase,ociation ".

atio-

Si un solde est tranfere

des livres d'un bureeu de la " rational Reserve association " aux livres d'un autre bureu, cette operation pourra etre effectuee par poste ou par te1 Gri-, phe
des cunditions qui seront fixees de temps en temps
par le eomite Excutif "(Voir aussi § 71)

FONCTIONS DE LA " 'ATIONAL RESERVE ASFOCIATION ".-

(47) Cutre lee droits qui leur sont a4uellement c.nfer4s par la loi lee banques nationales set
ront autorieees a accepter le papier commercial tir4
cur elles n'ayant pas plus de 4 mole a courir, con/
venatlement gar
civles.

ti et r2ultant d'op6r1-itions con-ier-

Le montant de ces acceptations en cours ne

devra pas exceder la moiti4 du capital et des reserves
de la. banque Andonnan* son acceptation, cE1 sen,oumie
aux restrictions de la section 5.200 des g'tuts

B:-

Vises.
(48) La cration dehoenques destinees a faire des operations dvne les i.ys

tran2;ers et dens lee

d4pendrnces des Etats-Unis scrh autoris;e.

Les actions

de ces banques pourront etre poss4dee5 oar une banque
nationale, male le montant total de ces actions

posse-

,
dees par une seule banque ne devrexceder 20 % de eon
La

Banque ainsi organise pourra avoir un,

bureau aux Etats-Unis, male ne pourra recevoir de deAte aux -tats-T!nis, ni entrer en concurrence avec lee
banques Nation'

7, icr ooerations a l'interieur ne se




- 19 -

rattt
,chant pas n4cesscA.rement aux op4rtition
s effectu6es
dens les pays 6tranEer6 ou dens les d4pen
de.nces des
L]tats-Unis.
(49) Les banques nationales recevront le
droit,
!Ioyennant ies restrictions et les regl
es colivenab:Les
qui seront d6finies par lp. loi, d'4t
&Ilir des eectiolw
d'4pargnel et de prter,moyennant des
restrictions convenables / ;:asqu'a concurrence de 40

de le)Irs djepOte

dqoargnesur des bieris Immobiliers pr7,ductifs, ces trete
ne devront ptIs eAceder 50';‘; de la vale
ur reelle des
ditdi biens immobiliers.

LITCAISSES.(A) i]ncaisse des banques eouscdptrices

(50) Toutes les tanques souscriptricet
se conformer aux obligations suiv
antesi en ce oui concerne l'encpie:e

conserver en contre-partie des di-

verses cat4ories de d6lAts, mais le
solde de toute
banque souscriptrice a. la

I;ational Reserve Aocip-

tion " et tous les billets de la

I?

ational Reserve

Aseocitation " que possede cette banc
ue doivent etre
comptes comme faint 'orirtie de son
encE,ise obligatoire.
(5I)- I - DEPOTS A VUE - Ii n'y aura
pee de
changement team la propaecit. L, (le
l'encpisce dont

la

loi

exige le maintien en contre partie
des d:p(Ith a v-Ae

,er

les banques nationales dElns les
diverses localit4s et,
pr.." la suite la mine propamonprke
I'encaiseedest depots
a vue sere.

exigee

dans toutes les Lanques souscriptric
ee

drne les memes localit4s.




- 20 -

3OTS A TIME (52) - 2 - D.U

To

5ts
7.es dtip1.

terme et lee fonds conserv4s " in true -L.4 " rembour.
jours a

inf4rieur

.,E.tbles dans un cClai

compter de la dRte du d4p(5t/seront soumis i ence qui
c')ocerne la prop,414/7,ion de l'encpissef aux merles con-As 4 vue drIka; la T4?le locelit4.
ditions que lee d6p7
Les d6pl'As qui son t re:lbourspbles &Tr's 1.1:1
dlai 4gel ou superieur h 30 jours

h

compter de le

date du depOt necessiteront la ifietie encaisse que lee
depSte

.
ie localite, pendc. nt lee 30

vue dans la

jourE, pi-4c6dailt l'echeance i et en outre ane encaiese
ga1eh 40 % de celle exigee pour lee d6pOts h vue ,
pendrInt toute p(friode sup'rieure ,\ 30 jours/ mais inf6tieure t 60 jours / cue lee depOts pourront avoir 4
courir; maie aucune e:Icaiose ne sera exigee pour ces
(141Ate, syuf penth.-nt les

60 jours prtic4deilt leur 4-

1
.
ch4anco;ces ( -d7)ts et lee fonds conserve " in teusL#
(levront ttre repr4sentes par des certificats ou docu-lents (crits payables seulement h une dpte

€loi-

gn4e d'au !noins 30 jours de la date du dpati et le
retralt ne pourra (3tre autoriEt

avant le tere stipule

preavis de 30 jours.
(53) (3) D.IPOTS
comportant un pr .

- Les dt:pSto d'6,oar6ne
devront 'etre

de 30 jourE, ou

.2;arantis par une ancaisse s'61evant

h

40 % de celle

requise pour le u deipOts h vue dans la meme localit4.
Les ,c1pOts d'4pargne ne comportant pas un preavis de 30 jours seront gartis par title encaisee s'elevent h 50 % de celle re uise pour lee d6pOte
dans la 71eme localite.

4

vue




- 21 -

(B) Encaisoe de la " National Reserve
Ascocir?tior " -

(54) Tous le

engagements ;1 vue de la " National
1

,
ReseTve Associatiol- " y comjris les depOts et les billets en circulation,
ce de 50

eront garantis jusqu'it concurren-

par une encaise compos:'e d'or (y compris

lee monnaies d'or et linL;ots 6tragers) ou d'adllesivounaio6
14galesies EtRts-Unis, 6tant entenJu cependant, que
lorsque et aussi lontemps que cette encaisse tombera
19 " Nhtional Reserve
et restera a71-dessous de 50 -1 .
Dt
Association " priera un imp7 special calcule comme suit :
pour chaque t4cart au-dessous de 50 %, un imptt au taux de
I 1/2

l'an sera

paye sur l'ineuffisance de l'encaisse.

(55) Pour les calculs des engagements

vue

de l'aFsociation, il sera d('!duit une SOA114 6gale

h la

moiti6 du montant des obligations des Eats-Unis

pos6-

dees par l'Associatin 4ui aur nt ete achet6es aux banques nntionales et qui avaient tt
tles par ces

ant4rieurement d6po-

Lvlic'Jes en garqntie de leurs billets en cir-

culation.

RAPPORTS

(56) La

National Reserve Aociation " idresr,ezt

une fois par semaine au Contr"oleur de

a circulation

,
un rapport 1:- isant connaltre les princi,oaux cha:;itres
de son bilan, ees rap-ports seront publis.

En outre,

des repports comples seront adresso au controlcur de
la circulation, a des dates coincidant avec celles des
09,72
s
5 rapports exi t ; chaque anntt 1

L,anques nationales.




- 22 -

(57)

Tous lee rapports des inspecteurs des

banques nationales concernant la situation des banques
seront a l'avenir 4tablis en double et une copie en sera
adressee a la " Nationale Reserve Association " pour etre
communiquee confidentiellement è. see agents d'execution
et directeurs de succurspies.
(58) Toutes lee banques souscriptrices devront,
conformement aux regles qui seront etablies, adreeser
a la " Nationale Reserve Association " un r;
,
,port hebdomadaire faisant connaltre lea principaux chapitres
de leur bilan.
(59) BANQUES D'ETAT ET TRUST COMPANIES

Une banque ou une trust company constituee
conformement aux lois d'un etat quelconque peut souscrire au capitcl de la " National Reserve AssJuiation
de la meme maniere et dens lee memes conditions que lee
banques nationales; elle neut devenir membre d'une
association locale et y exercer lee memes droits et privileges que si elle

etait une banque national.e; a condition:

(60) (a) que, si c'est une banque, son capital
verse ne soit pas inf4rieur a celui qui eat requis pour
une banque nationa.e pour la meile localite, et que (b)
si c'est une trust company, elle sit un fonds de

reserve

intact egal a 20 % au moths de son cayAtal, et que, si
elle est

sitae dans une ville de 25.000 habitants au

maximum, elle alt un ca ital

verse d'au moins 100.000

dollars, et, duns une yule plus importFrite, un capital
proportionnellement plus considerable, jusqlia concurrence de 500.000 dollars, dans une ville de 500.000 habi-




- 23 -

tants ou thvantage
(61) qu'elle alt et s'enp-age a meintenir, en
garantie de see d6pOts a vue, une encaisse de meme
nature et de meme montant que celle exigee par la ithi
pour une banque Nationale dr.ns is. mime locaiite;
etant entendu cependant que lee depOts qu'elle pourra
avoit dans une banque Nationale, une Banque d'Etat, ou
une Trust Company, dens une ville design4e dans is loi
cur lee Banques Nationales comme " Reserve city ou
Central Reserve city ", dont le capital verse ne
sera pas inferieur au cr.pitel minimum exige d'une
banque Nationale dr-ns la meme ville, et e'il e'r!.git
d'une trust company pas inf4rieur a celui qui a ete
precedemment indiqu6 pour une truct company dans une
ville de meffle categorie, et qui sera membre d'une
aesociation locale,- oue ces d(!.pOts seront comptes

comme encaiee de la m'eme maniere et dans la :erne mesure que lee d4pe ts similaires d'une banque - rationale
6

dens lee bpnquee netionales des villes de cette cF3tegorie.-62- (3) qu'elle pit et s'engage a maintenir
en garantie de toutes lee autrees categories de depats,
lee proportions d'encaisse requises par la pr6sente

loi.
(63)(4)Qu'elle s'e.(gae

a

se sou ottre aux ine-

pections et a faire lee ropporte qui eont prescrite par
is. presente loi et par is loi cur lee banques nationalee et a se conformer sux sutres obligations et conditione impos6es par is prsente loi.




- 23 -

EMISSIONS DE BILLETS

(64) Aucune banque nationale ne pourra a
l'aveni:-clettre de billets au dela du montant actuellement en circulation.

Les banques nationales pour-

ront Si elles le d4sirent riaintenir leur (irniuion icmais lorsqu'une banque retirera tout ou partie de sea billets en circulation, elle renoncera
definitivement au droit de reemettre lea billets ainsi
retires.
(65) La " National Reserve Association " devra
pendant une neriode

anAl6e offrir d'acheter 4 un

prix qui ne sera pas inferieur 4 leur valeur nominale,
plus lea inttirets echus, lea obligations 2 % act,zellement possd:es par lea Banques nationales, et deposes
en garantie de leurs billets en circulation. La " National Reserve Association

reprendra Gee thbligations

et assumera la responsabilit4 du remboursement " a presentation " ,_ies billets en circulation garantis par
eo titres.

La " National Reserve association " emettra

dens lea conditions prtivues par la presente loi see
propree billets h mesure que lea billets garantis par
lesditeBobligatious seront presents au remboursement
temps
et pourra emettre d'autres billets de temps en
que
pour faire face aux besoins dcs affairt f la politi
des Etats-Unis t

tant retiretaussi rapiciement que pos-

s
sible, en tenant compte de l'int4ret publicI les billet
gag4B par des obligntim

et de leur substituer des bil

lets de la " National Reserve Association " cres, garantis, et remb7,urses ae la maniere prevue oar la preEte loi.




-

-66) Toutes les dispositions autorisant les
banques nationples a conserver ou transferer et remetre au Tresorier des Etats-Unis des obligations des
Eats-Unis autres que celles requises pour garantir
les billets en circulation et les d4pOts du Gouverneme
nt
seront aborgees.
(67) Toutes les 4miionb de billets de la
National

eserve Asocitiori " devront etre couvertes

jusqu i a concurrence d'au moms 1/3 par de lior ou d'autree monnaies laleu,et pour le surplus par du papie
r
commercial bancable defini Oansla presente lei, mais
aucun billet ne sera emis lorsque is. monnaie iegal
e ainsi

cnservee descendra au dessous du tiers des billets dn
circulation.
(68) Tous les billets de la " National Reserve
Association " en circulation a un moment donne,au
del.
de 900 millions de dollars(I) male au dessous
de 1.200
millions de dollar / qui ne seront pas couverts
par un
4gal montant de monie 14gale conserve4 par
l'association paieront un imp7A special au taux de
I 1/2
et tous les billeLs emis au-delii. de 1.200 milli
ons de
dollars,lui ne seront pas ainsi couvertsi )aier
,
ont un
impSt special au taux de 5 %
(69) Les billets seront investis dUs privileges
.
de premier rang sur tout l'actif de la
" National Reserve
Association " et des disposition

em44t4041ites aevront
,

etre prises pour loaremboursement immed
iat a vue en mon.1111. •••

(I) Les 900 millions et les 1200 millions
de dollars doivent comprendre tous les bille
ts des banques
nationales qui pourront Ztre en circu
lation au moment

envisage.

I.




- 26 U44
,1
naisiuge central de la " National Reserve Association

ou dans n'importe laquelle de see succursa-

les,
(70) Les billets de la. " National Reserve
association " seront recus pour leur valeur nomina
le
en paiement de tous Impitts, drtlits d'aeeise , et
autree sommes dues aux Etats-Unis et en paiement
de tous
salaires et autres sommes dues par lee Etats-Unis
a
des particuliersf it des socieCs ou aE- ociations,
hormis
lee obligations d. Gouvernement qui sontien vertu
d'une
convention speciale i payables en or/ ut en paieme
nt de
toutes lee dettes d'une banque euvers une
autre, et de
toutes lee dettes envers une banque.
(71)

La " National Reserve association " devra

';.J. la premiere demande, sans faire payer dc.6
frais de
transport, adresser see billets a toute barigue
de.posante,
en contre-partie du dolde cr6diteur de celleci.

OBLIGATITITS DES ETATS-UNIS

(72) Sur la demande de la " National Reserve
Asociation " le Secretaire du Tr6sor6changera 12s
,
obligations 2 % investies du privilege de circulation
achet4es aux banques, contre dee obligations 3 % sans
privilege de circulation,remboursables 50 ans apres la
date d'4mission.
La " National Reserve Association" paiera
au Gouvernement pendnnt la duree de sa charte une
taxe
compeneatrice speciale de I 1/2

sur une somme egale

h la valeur nominale des obligations a elle
transferees
par la Banque souscriptrice.




- 27

( 43 ) La " Reserve association s'engage:a a
conserver les obligations 3 % ainsi (mises

endant la

dur6e de son existence sociale.
Etant entendu qu'Epres 5 ans, le Secretaire
du
Trtisor pourra a son gre )ermettre e. la reser
ve association de vendre annuellement pour 50 milli
ons de dollars
au

MEXiMUM

de see obligations, etant encore entendu,

que les Etats-Unis se reservent le droit de rembo
urser
en tout temps, tout ou partie de ces obligation
s avant
leur 4cheance ou de les acheter au pair pour le
compte
des administrateurs des caisses d'149Tqne posta
les ou
autrement.
(L'effet de cette echange et de cet engagement
serait de permettre aux Etete-Unis de pourvoir
d'une
maniere permallente au service d'une grange
partie de la
dette publique moyennant un interet net de
I 1/2 %).

Om

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NATIONAL MONETARY COMMISSION,
WASHINGTON

D. C.

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COMMISSION,
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WASHINGTON, D. C.

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46
RESERVES.
Perhaps the most important defect in our monetary system
is to be found in its unscientific treatment of the reserves
of individual banks.

We have described the character of

this defect and in our opinion the provisions of the proposed
bill will furnish :tri effective and logical remedy.

We

propose thAt all or any portion of the cash reserves of the
banks which aro now required by law to be held in their

vaults, may be deposited with the Reserve Association, and
when so deposited shall be counted as a part of their legal

reserve.

This will result in the transfer of money de-

prived potency and defensive power, to a condition of vitality
and effectiveness.

It is proposed that the reserves thus

concentrated may be used by the 'Reserve Association, through
its branohes, for the assistance and support of any bank or
section when needed.




The reserves of any subscribing bank

47

can be replenished at any time by the rediscount or discount
of commercial paper in the manner elsewhere described.
This involves the use of assets which %,otherwise would not
be available for this purpose to strengthen, whenever necessary, the loaning power of the bank.
This will enable the bunks to adopt the policy of providing that simultaneous strengthening of reserves and liberal
extension of credits which has been successful in every instance for half a century in the prevention of panics in the
^,ommercial nations of Europe.

In those countries there is

no suspension or paralysis of accommodation to customers,
but rates of discount are at times increased concurrently,
to a very high figure.

The plan provides not only for a

concentration and mobilization of cash reserves, but for a
decentralization of control by means of the powers over distribution granted to local and district associations.




48
BROADER DISCOUNT MARKET.
The Commission believe that the various provisions of
the bill for establihing a broader discount market will
prove of great advantage to the people of the entire country.
The provisions upon which wc rely to accomplish this purpose
are, first, the establishment of a standard of commercial
paper issued for agricultural and other purposes, which is
made available for rediscount at t1i
Association.

branches of the Reserve

The establishment of this 2tandard will create

,
a stronglpitlidanc: uo yaL,ko the instruments of com:_ercial gxiamx

credit conform to these requirements;

second, it allows

.
,
natiom.1 b .tnks to thi: extent of one-half of their capital to
accept proporly secured drafts drawn upon them, drawn perhaps
with documents attached, ac:ainst cotton, wheat, or other pro-

ducts in transit or in warehouse;

third, it gives a new and

wider market to domestic bills of exchange drawn on foreign
countries and based on transactions in American products, or




49
to pay for our purchases abroad,

fourth, it authorizes

the National Reserve Association to buy and sell in foreign
countries prime bills of exchange, many of which would be of
Inerican origin.

These various provisions give a national

and international currency to notes, acceptances, and bills
of exchanc;e based on the agricultural and other products
of the United States.
The methods by which our domestic and international
credit operations aro now conducted are crude, expensive and
unworthy of intelligent people.

The annual value of Lhe

products of our industries is estimated at thirty five thousand million dollars.

If to this vast sum is added the cost

of transportation and distribution, we can realize that the
movements of these products through various stages from the
producer to the consumer requires the use of an enormous
amount of credit and cash.

To form a greater estimate of

the magnitude of our credit structure, we should add our




50

accumulations of wealth and capital to the sums used in
connection with our foreign tn.de.

It is the function of

a sound monetary systm to take care of those vast operations
without friction 4 .n such a manner as will promote the prop,
pority of a grout people.

The unimportant part which our

banks and bankers take in the financing of our foreign trade
is disgraceful to a progressive nation.
We export of domestic products two thousand million
dollars annually and our annu-.1 imports araount to fifteen
hundred million dollars.

vary much the larger portion of

tItis international trade is finLncod by and pys tributo to
foreign bankers.

Take one illustration: last yew' wc ex-

ported about six hundred fifty million dollars in value of
cotton,

it was largely financed by sixty or ninety days

bills drawn on Liverpool, London, Paris or Berlin.

This

business was practically all done by foreign banks or bankers.




51

The banks •n the South, and perhaps in 3:ew York, were enabled
to collect a commission on a part of the business en route,
but the lions share of the profits accruing from the transactions, millions of dollars in amount, were paid to European
financiers, and this larEe sum was in the last ana*ysis paid

by the cotton planter.
The disabilities from which our producers suffer in
our foreign trade apply largely to domestic transactions.
The man who raises cotton in Mississippi, or cattle in Texas,
or the farmer who raises wheat in the northwest, cannot
usually find a market for his obligations in Chicago, New
York or London, because the bankers of these cities have no
knowledge of his character and responsibility.

We propose

to remedy this condition in large part by the use of the
standardized comnercia1 paper we have described, and also by
the use of acceptances of local banks of drafts drawn by a
farmer or planter whose responsibility is known to the bank




5;3
and who may have deposited with it security on his products.
This conmercia.1 paper and the acceptances would have currency
n an

market in 1:h!, world and could be promptly transformed
-

into roservcs and made available for increasing the loaning
power of n, depositing 1),,nk




t

ri

t ±nto.

Chanc,us

titu C

.111'11,)n.

Soo. 3. Organlz,4t:01, Corlaitto. "T'Io Stiorw.ary of
ciiied an a momwr of tho or sniz4tior, corn)ttoo".

IS to be

See. :
Sue. 1.

"Sub-dvisiAt 1 of 1.;oction
:u.t tho
eTk.

should

nutivrve, Al$

Ztates bet,

.1,i. : I

u r.24rittun"
f t

,1

i irtz-

Unitt;t1

.4

cor orte

and entablishod rt- t t, ..rm" etc.
.
Tit).

"An

set to incur .orato tho N-tionul nosorvu AsquaiAion

of tho Unitod Statos
Soo. 3.

for uthor purpusos".

ntrike out,"patd out of an, mons7 in thu TroAaury not
;
;
othervile o

ropriutod" i.d innurt

oAt of the

Troanury".
Sec. 4, ;u00114 p-ragraph." Language not deeldud upon but the
'
,Aunt is ih t in making up the diltriets
nut h

they vill

oompollod to rocognizu statu lines."

Soc. 4, third pAruiTaph. CPunre 1anv,uar.0 so as to ro
Ltay ttu raadjusted
rro.1 Li

1J

02

diltriits.

id new districts and 1.u.s4 br:...nchon !lay

Limo Oe .:1".1t4tbd by L:. dir,tetcr,

Natioaa1

..t4rysi Ana,ciAtion".
Soo tn..t. p.r4ara)h

4 . f thu ?.1.4n

is ieurdorAtod in the

mforts tho ,trovisior:n fJr thuk, oint .t.t of tho
-;ov.)rnur And deputy govornorl.
! %,015* 11 !And 1".
-




10.

10

To be rsierit1- n.
.

avidu th t 4hen the .;103,000,000 hut! been pald in

t!lAt then thy
Stato
:And

A

0.41poute und file

elrtifie-to U

t to

#ith tho Suertur

of

• 300,000,000 ilLAs 1Yettn paid in

Atli tho Comptrollur of the Ctirroney a eurtific-te thAt
on

Jf

An boon paid In, ale° r'ving thu title .4nd 1—lation

4h

nk and thu nombur -f shares held and the amrunt

;0 ,4 t

•r:one

Soc. 13, first line.

'1'43

w capit,1".

. ord "itutl" to
IrnI 1..r ccrructiL)

oth r place mhoro thu cApi!. J
Soc. 16. Change to rotati o n:11 re shall /;u
uleetod.

innort.ed ;ftr the
to 'Jo vox('u 1

evury

13 rufrrod to.
ho.rd of exarihi.tion

It shall he the dAy of 0,19 oot.rd to ex.4m1ne

into thu condition of t;14 .Aff.ti,-; of the :; tional .solor
vo
Ansozi-tion and tilt,

r.nchus urd to

.iont of Lib, roililt at

u u

o:Acu a

Strike out.re,airemente that c rtifiefttu4 eta431 be

A . Icnovlodr..-

ud beforu u jud,-0 of a .00rt of record ur t& notar

tqAblic.

7:oc. 3, nocond pur:c!xnph.




rop41.--0 nootIon ardr..v ide that :Aftur

to orAAniz,t1:),, Jf the 'AI
01A I

filed, o to.

Lulurvo Alnocifttion th,ro

_LIzsistions on Pcort.
by 7. 7. Burton.

First of a Le

L7

nature:

7ould it not be well to ma:, a
,
:e

brief independent statement of the fact that State banks are elicible

to membership in the Association

State banks are quite frequently

mentioned in the report on the same footinc with rational banks, but

as there is a Great deal of discussion on this subject it would seem

desirable to set forth that they may be admitted.

.
Gai12z 4:

It is stated twice on this Galley that the Governor

should be selected by the President of the 7nited states.

The -e is

no .nention of the elicitle list furnished b: the directors of t
--e

Association.

business :nen".

Cn this same Laney the ex:ressio

Is used "re:resentatic

Whilc, the word "business" is General, it is worthy of

consideration whether the ox- n,ssion "citi:ens" would nnt be rreferable

to "busini-s:; Tnen".
W

Ga]le-5:

7tates the Reserve Association io Fecluired

a reserve of not less than fifty per cent.

•1414




to maintan

:%) exception is 1.1je of

orierceneles and perhaps it is not necessary to do so.

Gal1eC:

T'ention is made of the amount of authorized currency

seven hundred millions 7 to this an additional two h7InCrcif: millions for

seasonal or crop movinc demands.

Men nent ion is maCe of not:. issue

in excess of twelve hundred millions.

The transit ion to this last

amount is a little abrupt because, in the prior case where an

expansiOn

1

ed, the reason for it is given.
of two hundred millions is authoriz
is said that two per cent
Near to the bottom of this calley, it
apnroximat ely 67.
bonds would have a market value of
This •fL,ure- 67-

be worth more t'an that'.

would they not

is obtained by a computation

1
rded as 3F;3. In the life of the
in which the rate of interest is reta

.11




n t he low rate 67, or whatever it
bonds, however, the :ifferencebetwee
rrerket value ,:ould. also tal-e into
.
1-171,1 1,p, would 1,, - arne.' so that the
would lie paid.
-..t
,
account 4 71,- fa, that 1'1..11.111y 10C,1

This vould increase

the Fir-lire somewhat.

,
Gall e‘ 7:
, after doubt is =Tressed
Under the head of rates of discount
at once by such leLislat,ion,
whether commercial rates ::an be secured

it is said

77ith
1

d be toward
rrovision adopted, the tendency woul

dl roints". Cluery:
a gradual en_uE..lization of rates at

should this not

", so that it may read:
.er and begin with an adversative "But
be stront
inevitable tendcmcy",etc.
"But with this provision adopted the
term "productive forces"
Toward the close of this Galley the
only partially develcped".
is used, and it is said: "They are

Is not

ve
nc, facilities more than in producti
the real lack of development in banki

forces?
On Gal

rather
2d. lino, Currency. Is not the idea

"Status" or "standing"7
is said:
Near to the middle of the galley it

"The farmer vho




raises

wheat in the northwest cannot readily find a market for

his obligations in Chicago".

Is not the idea rather the obligations

to him than his obligations.

Query: Whether the word "patriotic" shcul&1 be used before the

words "character and business ability of banking managers".

In a later paraLraph on this galley, it is said

"We propose to

limit the representatives of the district to three out of thirty-nine".

Would not this idea be more clearly expressed by saying "of any one

district" instead "of one district"?


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102