Show DAILY HASKIN LETT LETTE I RURAL RUPAL RUP L CREDITS Tj State V.-State V. V State and National Rural l Banks Bad 1 1 In the Fletcher scheme of organizing a national rural banking system the local banks of at each state sUto will form a banking association which will act as the link binding thorn them to the big central Institution which will be located loc ted In Washington As soon as thirty local banks are arc formed In any anyone one state they will be bo advised by the government that a 11 meeting has been called for the purpose of organizing a state bank Each local bank bin will w send fiend one of Its directors as a. a dole delegate gate to this meeting Hero they will organize a D. state bank with a capital of not less than 60 with mth I power to Indefinitely Increase It It tho the shares of which shall shan have a par value alue of a hundred dollars Tho The charter will be for fifty years with power of re re- re nowal newal The stock of ot th the bank will be owned by the of oC that state cx- cx ex ex- In addition to having general banking powers the state bank will serve as aa a clearing house for Its Us members member and serve th them m as aa a Il reserve agent It will redIscount rediscount rediscount redis redIs- count their paper and may act as a 11 broker In selling long term farm bonds bonda which bear hear the guarantee of a a. local bonk bank as al aswell aswell well as Its own 0 O. K It can ron buy such bonds In Its o own on n name and It can also deal In the tho government securities of or the United States and of foreign nations as aswell aswell well as of states counties and municipalities tI ties el The rho management ement of a A. state bank willbe will wll be vested In a a. directorate of or at least nine members chosen by the local banks one ono vote to each bank no proxy voting being allowed There Thele will be the other usua usual banking officers the president and two vice presidents being elected d from the hoard b by the local banks No member o of the tho state bank board can cnn be he a member of or ofa ofa ora a board of an any local bank The profits proms shell shall go first to the payment of expenses then a u 6 per cent dividend on the stock and then to the creation of a n surplus When this reaches one and a Ii half unit times timet the capital all further r profits shall go Into annual dividends Must Maintain Reserve Fund This bank must always maintain a rc- rc serve c of one-fifth one of its check deposits am and anda a tenth of Its time deposits of which one- one half must t be In cash osh In It its own o vaults The balance may be deposited with the national rural bank or with other banks s approved ed by the treasury treasur department It Itma ma may establish branch banks and enter Into trite reciprocal re relations with other banks with the consent of the treasury department The rhe national bank Is 19 to be kno known n as Tire The N Rural Bank of the United Sta States and each state bank must Invest one fifth of or Its capital In tho the stock stacIe of ot the national bank banle This national bank shall begin with a ft capital of a A. million dollar dollar dollar dol dol- lar In shares of each and It shall have o a charter for fifty years renewable at the option of congress In addition to the usual banking blinkIng functions It will act IIa as is asa isa a clearing ho house e for all rural banks and co op co-op operative co-operative o societies whether th they be organized under state or or federal laws In and andal al also o win will serve as their reserve a agents It Il will also alHo act as a depository depositor bank for tor forthe forthe the the- funds of or the United States government govern govern- ment mont particularly for postal savings 8 bank funds rund paying Interest on them thorn and reInvesting reInvesting re- re Investing them under appropriate safe sate guards It will nil rediscount paper for tor tho the local and state rural banks banke and guarantee guarantee guaran guaran- tee both HS Ht to principal and Interest mortgage mortgage mort mort- gage aF based bonds or notes notee guaranteed b by these banks It will also rediscount farm loans held b by national banking associations under tho the provisions of the federal reserve act May 1 Issue Debentures In addition to those these functions the national national national na na- na- na bank It Is proposed will be allowed to Issue debentures to torun run for not exceeding exceeding exceed exceed- ing fifty years ears and to he be secured b by trust deposits of farm mortgage one and and a fourth times as large as the face value of oC the debentures These must be distributed distributed distributed as nearly as possible over o the five fhe great sections of the United States State It may nl also o purchase e and sell on It its own account Recount farm loans that have been guaranteed guaranteed guaranteed guar guar- by the he banks bank b below low and may operate op operate op- op erate branch banks The surplus must be he brought up to one and a a. half halt times the value of the stock after paying a t G J per pcr cent cont dividend and thereafter all nil extra earnings will go to dividends Tho The bank must always have ha one-fifth one of Its deposits In reserve half hatt of the reserve In Its Us own owna a vaults It is proposed that the management manaJ-emont of at this national hank bonk shall ba be v vested ted In a board boar l ot of nine members tour four o pointed painted by the I president re and the senate to serve to for tor confirm o good behavior life lite lifer r or and lh the other selected elected by br t the e banki 11 1 for four years two for tOr eight Therea ter the sIx and t too banks bank vacancies rna tria fill that occur In its Ita I quota permanent term shall le be eIght th t choosing the directors Y rt banks each stale bank allotted to to to tJi may bee ber of votes equal to the cast cast e banks by which It is Ie number local banks may instruct t for tor VI whom WHom to vote otc Out the of ot- ot elare 1 VI whom WHom to vote otc Out of ot- ot rectors rector appOinted the the nl t 1 shall shaH select t two 0 out ou t or of the ele five e el them and one OM from th the four ti the h President and from these thee thes the the dent will II name pr pre the two vice vico Presidents of ar pre president the he S bank S au tt who serve sene for eight years The be for respectively President and III did vIce presidents ors ora all of whom shan shall their and time devote theIr to the business of the bank bond In a a ahi n ner penalty penally of tar for the er performance e ot of theIr l. l t Propose Temporary Organ Organization A tem temporary bank Is for for J bill Under proposed In th the te e it H tho rural bOIl i created the secretaries secretaries under the of bill the tho and eJ u l treasury ture and labor will select a bo dIrectors making one ot of them and two vice presidents whom all of serve until the a 1 permanent organisation affected A half haIr millIon aside out or of tine the treasury dollars la is' to bo be u tJ buying stock or of the national C ban 1 sum with Interest to be state and local banks bank take the atoll the central Institution under The whole the rural banking system istein t 1 th a 1 Immediate o islon-o dIvisIon of I rural fil In the treasury banking to be department It wilt NUl ercle the same functions with to the refer rural banks that the com tn or of the currency exercises oVer the tho of banking twi system stem Ho will serve tora fora o tl t twelve years lIe He win will have jUVe th the po o of or examination bank over ban banks I and and of of of oC C char charters when tho the Jaws 1 hated are Fletcher piT Th The whole 1106 Is 18 scheme outlined endeavors b by s SeR one ono that endeavors to i t bine bino In n one system all of at the principles cs of the German system it banes the c functions of the land mort t banks or of Germany German such a as the L LD L with those of at the personal c et er banks bank such as the tho n banks banks' I limited the Schulze Schulze-Delitzsch banks banks- It is Is to farmers as are the bAnks or 01 maInly to wage earners amers as Aa the Schulze Schulze-Delitzsch ch banks bank It iff alm afford every possible form of or credi the small borro borrower er that has been nr pr by e. experience to bo he safe sate to the tel It and advantageous to the borrower seeks seeka to place placa the cre creators creator of or wealth wealth- who produce It b by their t hv labor on labor on a credit par with th those mainly enjoy enJo its fruits A AWill Will 1 Encounter outer Opposition S 'S SIt I It is not Mt to be e expected that thai Fletcher r r bill will nII become a a. la law with wit the dotting of an J I 1 or the crowing crossing tit l t but that it embodies the tile cei ren ger principles that will within a year or become the law of ot the land seems cems t tl accepted on ever every hand That It wl will 10 counter opposition from present ban bani interests Is probable roba ble The Tho savings 6 be opposed cd the tiro postal savings banks upon belief that then their creation would be beag a I f blow to the savings bank Interests In practice It Jt has haft been found by the I Ings banks bantI that the postal saving get business that they could not comm come and teaching the art of saving and gamy to new ne people have become a rath rather r than a hindrance to the tha ottil 11 savings ravings bank The friends of or its pa say pay that tho the existing banking sy s' of the country will have the same name exl that that for every dollar th they 1 I lose los r the op operation of ot the tho rural credit la lathey b bE bEthey they will make t two o out of ot the fini independence of ot the fa farmer the law jj t There probably bh will bo bt considerably position to the proposed system of i credits on the ground round that it In tho the hands of the government cd cor over the financial establishment it and that the government bat ha business dabbling In such things be seeing that the people are not defrat It Is ans answered ere by the advocates of control through directorate m n ber that it would be as well to tJ I Ithe the railroads bonds to re regulate themselves to trust tho the banks to do so 80 This In Inis Inis t is 18 answered l on representation In the thi of any Rny railroad that It ItT 7 lates from without rather than then f within Tomorrow RURAL CREDITS VI The VL-The The Gorman German B System m. m j i |