The commoner. (Lincoln, Neb.) 1901-1923, October 27, 1911, Page 12, Image 12
tnf rT'r7 The Commoner VOLUME 11, NUMBBH 4 i . The Guaranty State Bank, Muskogee, Oklahoma, oflforfl to their cutomors nntl readers ofthtopnpor throughout tlio country oxccptlonnl facllltlM for hnndllnc nccountN by innll. Tho Depositors Quar nnty Fund of tlioKtato ol' Oklahoma liumroi absolute wifoty of all funds deposited with us. Wo holiovo In tho Integrity ntid coiiflorvntlsm of our officers, tmlyounro not compelled to rolyonthK Wlint protection do you set from your home bank? Wrlto for booklet, to-day. Interest paid on Tlmo Doposlts and Savings Account;. M. Q. HASKELL. Vlco President. M. O. SKLLS. Cashier. Asthma HAT FETOR REMEDY Bent by azoresa to tou uu Ftm Trial. If it cures send St: iff not. don't. Uire express ofllce. Write today. VATIOXAL CHEMICAL CO., 408 TepUr It, Bloay, Oala PATENTS WatHsa I?. Celcman, Patent Lawyer, Washington, D.O. Advice and books frea. JUtea reasonable. Hteheat references. BcatBervlcaa, T A W IP. TV IT SI secured okfeb JIT JM. JL Jit 1 JL & KETUItNED. Free report as to l'atonlablllty Illuitratod litlla IJook. and TJM or Inventions Wanted, sent free. VICTOR J. KVANS & CO., Wnshlnrton, D.a Beautiful Stick Pin Free. Sot cents and rccolvo our lllustratod Catalog and cholco ol an Abalouo Pearl Stick Pin or n Dutch Collar Pln-KRKK. 1,. 11. PKIItSON, Dopt.0 82 l- So. 11111 Str. tos Auuolos, Cal. In demand. Abundanco Fish, Oysters, and Truck. Write for Prices and Free Booklet, VIRGIHIH FA RMS W. T. BAILEY, Suffolk, Virginia Let Me Send You A Treatment of My Catarrh Cure Free WASHINGTON NEWS G. E. GAUSS I Will Take Any Case of Catarrh, No . Matter How Chronic, or What Stage It Is In, and Prove ENTIRELY AT MY OWN EXPENSE That It Caa Be Cured. Curing Catarrh has boon my busi ness for years, and during this time over ona million peoplo have como to mo from all over tho land for treat ment and advice. My method is origi nal. I euro the disease by first curing tho cause. Thus my combined treat ment cures whero all elso fails. I can demonstrate to you in just a few days timo that my method is quick, suro and complete, because it rids tho system of tho poisonous germs that cause ca tarrh. Send your namo and address at onco to C. B. Gauss, and ho will send you tho treatment referred to. Fill out tho coupon below. FREE This coupon is good for a package of GAUSS COMBINED CATARRH CURB sent free by mall. Simply All in your name and address on dotted lines below, and mail to C, B. GAUSS, 849 Main St., Marshall, Mich. An Associated Press dispatch says: Former Senator Nelson W. Aldrich, of Rhode Island, submitted to the national monetary commis sion, of which he is chairman, a re vision of his plan for monetary legis lation. The commission may use it as the basis for its recommenda tions to congress. Tho basic prin ciples of the revised plan are sub stantially the same as those em bodied in Mr. Aldrich's first proposal sent to the commission last January, which he said he expected would serve as a basis 'for national dis cussion. Important phases which were then unsettled and those which have since been evolved are treated in the recommendations now sent to the commissions. Most of the ques tions are handled with great detail as the result of discussions and con ferences which have been going since the plan was first suggested. Briefly the plan still provides for the organization of the national re serve association, with a' capital ap proximated at $300,000,000, of which the United States government and the banks owning shares in the association shall be the only deposi tors. The plan of dividing the United States at first into fifteen financial districts remains unchanged. In each district the banks shall form local associations of their own, which In turn will be represented in the branches and finally in the central organization through a system of directors, which, it is said, will make it impossible for any section or set of bankers to control the whole. To provide lor the $730,000,000 of 2 per cent government bonds now owned by the national banks, and used as tho basis of note circulation, which are to be absorbed by the re serve association, the following plan is proposed: Upon the application of the re serve association the secretary of the treasury shall exchange the 2 per cent bonds, which the association shall buy from the banks at par and accrued Interest for a new issue of 3 per cent securities, payable fifty years after the date of issue. The reserve association will pay to the government a special fran chise tax of 1 per cent per year on the amount of such bonds, as the government's actual interest charge on the 2 per cents is now actually 1 per cent. Since the banks pay back a half of 1 per cent as a tax when the bonds are used as the basis of note circulation, this will .re imburse the government for the extra interest it will be called upon to pay as a result of exchanging the two for threes. One effect of the exchange will be to enable the government to provide permanently for a largo portion of the interest bearing public debt at a net interest of 1 per cent. This arrangement proposes a solution of what many financiers declared the greatest obstacle to the plan. It dis poses permanently of the bond se cured currency without loss to the government and without Imposing upon the reserve association the ownership of the $730,000,000 two per cent bonds. The association will agree to hold the 3 per cents for fifty years, but the secretary of the treas ury, after fifty years, will have the option of permitting the association to sell the -securities at a rate not greater than $50,000,000 a year. The government may reserve the right to redeem any of the bonds be fore maturity, to buy any of them at par for the trustees of tho postal savings system or otherwise. Provisions for the election of directors have been changed in the revised plan with the idea cf mini mizing the possibility of control by any section or group. There still will be forty-five directors as in the original plan, six members ex-officials, viz., tho governor of the as sociation, his two deputies, the sec retary of the treasury, the secretary of commerce and labor and the comptroller of the currency. Each of tho fifteen financial districts of this country will elect one director; twelve others will be elected by the share-holders, and these twenty seven will elect to the board twelve additional members, who shall not be officers of banks, but may be direc tors in them, and who shall fairly represent the industrial, agricul tural, commercial and other interests of the country. The completed plan provides that of the twenty-four directors . in the latter groups, not more than three may be elected from any one district. As an instance, the effect of this provision would be to limit the state of New York, which has about one fifth of the banking capital of the country, and which is the seat of the great financial Interests, to four directors among the thirty-nine who are elected. In the. organization of the execu tive committee of nine members, upon which it has been said much of the active management of the as sociation would fall, only one of the five elected members, the other four being the governor of the associa tion, his two deputies and the comp troller of tho currency, ex-officials, may be chosen from any one district. The whole board of directors may reserve to itself any authority it desires, and is not bound to vest the executive committee with full con trol. The original plan provided that the governor of the association should be appointed by the presi dent of the United tSates from a list of names submitted by the board of directors, and the president should also have power to remove the gover nor. The revised plan reserves the right of removal to a two-thirds vote of the board. One Important change is made in the admission to membership of state banks and trust companies which conform to a required stand ard. A state bank or trust company to be eligible must conform to the same standard as national banks re garding the relation of its capital to the population of the community it serves, or regarding the reserves to be held against deposits, and must uuujLurw w u curiam scanaard re garding examinations and reports. Requirements for reserves to be hold against deposits are made the same for national banks, state banks and trust companies, but the present reserve requirements of national banks are modified to the extent of requiring no reserves against time deposits, except for thirty days pre ceding their maturity. This pro vision, which resembles those In the trust company laws of some states, is expected to make it more profitable for national banks to hold time de posits in competition with trust com panies. Banks of all classes will have the full flse of time deposits without reserve restrictions until thirty days from maturing time, when standard reserves will be re quired. A provision that tho association shall discount for any member noteB and bills of exchange arising out of commercial transactions is further developed in tho line of preventing the granting of loans on securities. The notes and bills eligible for dis count by the association are re stricted to such notes and bills of exchange as are "Issued or drawn for agricultural, industrial or com mercial purposes and not for carry ing stocks, bonds or other invest ment securities." This interpretation will include bankers' notes for carry ing stocks. Banks, under this pro vision, it Is said, will be encouraged to carry their auxiliary reserves in commercial paper, instantly convert ible into cash instead of in call loans on the stock market. National banks will have tho right to establish savings departments and to lend not more than 4 per cent of such deposits upon any protected real estate loans not exceeding 50 per cent of the value of the property. The national bank act how prohibits such loans, but there is a constant demand for them, especially in tho west. Savings deposits in any of the banks in the association shall be sub ject to thirty days' notice before withdrawal and shall be covered by a reserve of 40 per cent ot that re quired for demand deposits in the same locality. For the reserves of the associa tion it is proposed that 50 per. cent of its demand liabilities, Including deposits and note issues, shall be covered by gold or other lawful money, with a provision that when ever the reserve falls below 50 per cent the association is bound to pay to the government a special tax which increases in rate in proportion to the deficiency. The operation of this plan in such instances is ex pected to stimulate an Increase in the rate of discount and to bring in gold until the reserves again become normal. Another new provision specifies that any local - association may assume and exercise the powers and func tions of a clearing house. In this respect some existing clearing houses (Continued on Page 14.) r One Mother " Says "There's only one trouble with ' $ Post Toasties "When I get a package or two, Father and the Boys at once have tremendous appetites Post Toasiies Require no Cooking Serve wijh sugar and cream and the smiles go round the table. "The Memory Lingers Sold by Grocers. Post urn Cereal Company, Limited Battle Creek, Mien., O. S. A. - ! i I rfjeja ul I X ; 'i 7 ft 1 "i ''