THURSDAY, JANUARY 1, 1S14.
PLATTSSHOUTH SEMI-WEEKLY JOURNAI
cnder sucli rr.ros and regulations as
it may prescribe, subji-ct to the pro
visions of this section, may permit
the :".ppb. ing bank to become nKtock
Lohler i;i the federal reserve bank of
the distiiet i:i which the applying
bank is located. Whenever the or
i: ani.ation committee or the federal
reserve board slta'l permit the apply
ing bank to become a stockholder in
t'.i? federal reserve bank of the dis
trict, stock shall be issued nnd paid
fr under the rules imd reputations iu
t! ! act provided, for national banks
which become stockholders in federal
reserve banks.
The organization committee or the
federal reserve board shall establish
bylaws for the general government of
Its conduct in acting upon applications
made by the state banks and banking
Associations arid trust companies for
afock ownership in federal reserve
banks. Such bylaws shall require up
plying banks not organized under fed
eral law to comply with the reserve
and capital requirements and to sub
mit to the examination and regula
tions prescribed by the organization
committee or by the federal reserve
board. No applying bank sli.nl! be ad
mitted to memnorship in a federal re
serve bank unless it possesses a paid
up unimpaired capital suflicient to
entitle it to become a national bank
ins association in the place where it is
situated, under the provisions of the
national banking act.
Any bank becoming a member of a
federal reserve bank tmder the pro
visions of this section shall, in addi
tion to the regulations and restrictions
hereinbefore provided, be required to
conform to the provisions of law im
posed on the national banks respecting
the limitation of liability which may
bo incurred by any person, firm rr cor
poration to such banks, the prohibition
against making purchase of or loans
on stock of such banks and the with
drawal or impairment of capital or the
payment of unearned dividends and to
such rules and regulations as the fed
eral reserve board may in pursuance
thereof prescribe.
Such hanks and the ofHeers. n writs
and employees thereof shall also be
subject to the provisions of and to the
penalties prescribed by sections alDs..
r2H iVJOl and and rO.) of the
revised statutes. The member banks
shall also be required to make- reports
of the conditions and of the payments
of dividends to the comptroller as pro
vided in section r.211 and ."212 of
the revised statutes, and shall be su!
jeot to the penalties prescribed by
section r2!3 for the failure to make
sueii report.
If at any time it shall appear to the
federal reserve board that a mem
ber bank has failed to comply with
the provisions of this section or the
regulations of the federal reserve loard
it shall he within the power cf the
said board, after hearing, to require
such bank to surrender its stock in the
federal reserve bank: upon such sur
render the federal reserve bank shall
ay the cash paid subscriptions to the
said stock, with interest at the rate of
one half of one per centum per mouth,
computed from the last dividend, if
earned, not to exceed the book value
thereof, less any liability to said fed
eral reserve ban'.:, except the subscrip
tion liability not previously called,
which shall be canceled, and said fed
eral reserve bank shall, upon notice
from the federal reserve board, le re
quire! to suspend said bank from fur
ther privileges of membership,:) ud shall
within thirty days of such notice can
cel and retire its stock and make pay
ment therefor in the manner herein
X rovidccL The federal reserve board
may restore membership upon due
proof of compliance with the condi
tions imposed by tin's section.
designated by the president as gov
et'Eor and one as vice governor of the
federal reserve board. The govc-rnor
:f be federal reserve board, subject
to its supervision, shall be the acting
executive oUleer. The secretary ot the
treasury may assign cilices in the de
partment of the treasury for the use
of the federal reserve board. Each
member of the federal reserve board
shall within fifteen days after notice
of appointment, uiake and subscribe
to the oath of o!!ice.
The federal reserve board shall have
wer to levy semiannually upon the
federal reserve banks in proportion to
their capital stock and surplus an as
fessincnt sufficient to pay its estimated
expenses and salaries of its members
and employees for the half year suc
ceeding thc!ev3lng of such assessment,
together with any deficit carried for
ward from the preceding half year.
1 he I.rst meeting or tue re-.ierai re
serve board shall be held in Washing
ton. District of Columbia, as soon as
may be after the passaw of this. act at
ii date to be tixed by the reserve bank
organization committee. The secretary
vf the treasury shall be ex otlicio chair
man of the federal reserve board. No
member of the federal reserve board
shall be an olllcer or director of any
bank, banking Institution, trust com
pany or federal reserve bank nor hold
stock iu any bank, banking institution
or trust company, and before entering
rpoii his duties as a member of the
federal reserve board he shall certify
under oath to the secretary of the
treasi"v that he has compiled' with
this requirement. Whenever a vacan
cy shall occur other than by expiration
of term among the six members of the
federal reserve board appointed by the
president, as above provided, a succes
sor shall be appointed by the president,
with the ail vice and consent of the
senate, to till such vacancy, nnd when
appointed he shall hold olliee for the
unexpired term of the member whose
place he is selected to fill.
PRESIDENT' TO FILL
ALL VACANCIES
FEDERAL BOARD OF
SEVEN MEMBERS
Sec. 10. A federal reserve board is
hereby created, which shall consist of
seven members, including the secre
tary of the treasury and the comptrol
ler of the currency, who shall be mem
bers ex olliclo. and live members ai
jointed by the. president of the Unit
ed States, by and with the advice and
consent of the senate. In selecting the
live appointive members of the federal
reserve board not more tiian one of
whom shall be selected from any one
federal reserve district, the president
shall have due regard to a fair repre
scntatim of the different commercial,
industrial and geographic;:! divisions of
the country. The five members of the
federal reserve board appointed by the
president and conlirmed as aforesaid
shall devote theircntire time to thebusi
ness of the federal reserve board and
shall each receive an annual salary uf
S12.000. payable monthly, towther with
actual necessary traveling expenses,
and the comptroller of the currency,
as ex otlicio member of the federal re
serve board, shall, in addition to the
salary now paid hini as comptroller of
the currency, receive the sum of
$I.HX annually for his services
as a member of said hoard. The
members of said board, the secre
tary of the treasury", the assistant sec
retary of the treasury and the comp
troller of the currency shall be inel
igible during the time they are in of
fice and for two years thereafter to
hold any oilice. position or employ
ment in juij member bank. OT
the five members thus appointed by
the president at least two shall be
persons experienced . in banking ir
finance. One shall be designated by.
the president to serve for two. one for
lour, one for six. one for eight, one
for ten, and thereafter each member
so sippointe.i shall serve for a term of
ten 3' ears unless sooner removed for
cause by the president. Of the tive
persons thus appointed, ote shall be
The president shall have power to
-ill jII vacancies that may happen on
the federal reserve board during the
recess of the senate by granting com
missions which shall expire thirty days
after the next session of the senate
convenes.
Nothing in this act contained shall be
construed as taking away any powers
heretofore vested by law In the secre
tary of the treasury which relate to
the supervision, management and con
trol of the treasury tlepartment and
bureaus under such department, and
wherever any power vested by this act
in the federal reserve board or the fed
era I reserve agent appears to conilict
with the powers of the secretary of
the treasury such powers shall be ex
ercised subject to the supervision and
control cf the secretary.
The federal reserve hcard shall annu
ally make a full report of its opera
tions to the speaker of the house of
representatives, v. ho "shall cause the
same to be printed for the information
of the congress.
Section Z21 of the revised statutes
of the United States shall be amended
so as to read as follows: "There shall
be in the department of the treasury
a bureau charged with the execution of
all laws passed by congress relating to
the issue and regulation of national
currency secured by United States
lends and. under the general supervi
sion of the federal reserve board, of
all federal reserve notes, the chief of
ficer of which bureau shall be called
the comptroller of the currency and
shall perform his duties uuder the gen
eral directions of the secretary of the
treasury."
FEDERAL RESERVE
BOARD'S DUTIES
Sec. 11. The federal reserve board
shall Ih authorized and empowered:
lai To examine at its discretion the
accounts, books and affairs of each
federal reserve bank and of each mem
ber bank and to require such state
ments and reports as it may deem
necessary. The said board shall pub
lish once each week a statement show
ing the condition of each federal re
serve bank and u consolidated state
ment for all federal reserve banks.
Such statements shall show in detail
the assets and liabilities of the federal
reserve banks, single and combined,
and shall furnish full information re
garding the character of the money
held as reserve and the amount, na
ture and maturities of the paper and
other investments owned or held by
federal reserve banks.
(In To iermit or on the atlirmative
vote of at least tive members of the
reserve board to require federal re
serve banks to rediscount the discount
ed paper of other federal reserve
banks at rates of interest to be fixed
by the federal reserve board.
(c) To suspend for a period not ex
ceeding thirty days, and from time to
time to renew such suspension for pe
riods not exceeding fifteen days, any
re-serve requirement specified' In this
ct: Provided, that it shall establish a
graduated tax upon the amounts by
which the reserve requlren-ents of this
net may be ' permitted to fall below
the level hereinafter spec! lied; and
providi-d. further, that when the gold
reserve held against federal reserve
notes falls le!e,w 40 jht centum, the
federal reserve hoard shall establish a
graduated tax ot not more than 1 per
centum Uon such deficiency until the
reserves fail to oil',' per centum, and
when said reserve - falls lo!ow 22'. 2
per centum, a tax at the rate increas
ingly of nut less than lj per centum
upon each 2!,L per centum or fraction
thereof tknt such reserve falls In-low
32Vi fer centum. The tax shall be paid
by the reserve hank, but the reserve
bank shall add an amount equal to
said tax to th rctes cf interest and
discount fixed by tlw federal reserve
board.
(d To super te-ftind regulate through
the bureau un.k-r the charge of the
comptroller of the currency the issue
and retirement of federal reserve
notes, and to prescribe rules and regu
lations under which such notes may
be delivered by the comptroller to the
federal reserve agents applying there
for. (e) To add to the number of cities
classified as reserve and central re
serve cities under existing law in
which national banking associations
are subject to the reserve require
ments set forth in section 20 of this
act. or to reclassify existing reserve
and centra! reserve cities or to termi
nate their designation as such.
(f) To suspend or remove any officer
or director of any federal reserve
bank, the cause of such removal to be
forthwith communicated in writing by
the federal reserve board to the re
move! oiHcer or director and to said
bank.
(g) To require the writing off of
doubtful or worthless assets upon the
books and balance sheets of federal
reserve banks.
(h) To suspend, for the violation or
any of the provisions of this act. the
operations of any federal reserve bank,
to take possession thereof, administer
the same during the period of suspen
sion and when deemed advisable to
liquidate or reorganize such bank.
(i) To require bonds of federal re
serve agents, to make regulations for
the safeguarding of all collateral,
bonds, federal reserve notes, money or
property of any kind deposited in the
hands of such agents, and said board
shall perform the duties, functions or
services specified in this act and to
make all rules and regulations neces
sary to enable sail board effectively
to perform the sumo.
(j) To exercise general supervision
over said federal reserve banks.
(k) To grant by special permit to na
tional banks applying therefor, when
not In contravention of state or local
law. the right to act as trustee, ex
ecutor, administrator or registrar of
stocks and bonds under such rules and
regulations as the said board may pre
scribe.
(1 To employ such attorneys, ex
perts, assistants. elerUs or other em
ployees as may be deemed necessary
to properly conduct the business of
the board. All salaries and fees shall
Im? fixed iu advance by said board and
shall be paid in the same manner as
the salaries of the members of said
board. All such attorneys, experts.
issistants, clerks and other employees
shall be appointed without regard to
the provisions of the act of Jan. 1(5.
1KS3 (volume 22. United States stat
utes at large, page 403), and amend
ments thereto or any rule or regula
tion made in pursuance thereof.
FEDERAL ADVISORY
COUNCIL CREATED
Sec. 12. There is hereby created a
federal advisory council, which shall
consist of as many members as there
are federal reserve districts. Each
federal reserve bank by its board of
directors shall annually select from
Its own federal reserve district one
member of said council, who shall re
ceive such compensation and allow
ances as may be fixed by his board of
directors subject to the approval of
the federal reserve board. The meet
ings of said advisory council shall be
held at Washington. District of Co
lumbia, at least four times each year
aad uf tener If called by the federal re
serve board The council may in addi
tion to the meetings above provided
for hold such other meetings in Wash
ington. District of Columbia, or else
where, as it may deem necessary, may
select its own officers and adopt its
own methods of procedure, and a ma
jority of its members shall constitute
a quorum for the transaction of busi
ness. Vacancies in the council shall be
filled by the respective reserve banks.
end members selected to til 1 vacancies
shall serve for the unexpired term.
The federal advisory council shall
have power by itself or through its
officers (1) to confer directly with the
federal reserve board on general busi
ness conditions. (2 to make oral or
written representations concerning mat
ters within the jurisdiction of said
board, i3) to call for information and
to make recommendations in regard to
discount rates, rediscount .business,
tiate issues, reserve conditions in the
various districts, the purchase and
sale of gold or securities by reserve
banks, ope'ii market operations by said
banks nnd the general affairs of the
reserve banking system.
Powers of Federal Reserve Banks.
Sec. 13. Any federal reserve bank
may receive from any of Its member
banks and from the United States de
posits of current funds in lawful mon
ey, national bank notes, federal reserve
notes or checks and drafts upon mem
ber banks, payable upon presentation
or solely for exchange purposes may
receive from other federal reserve
banks deposits of current funds In law
ful money, national bank notes or
checks and drafts upon solvent mem
ber or ether federal reserve banks pay
able upon presentation.
Upon the indorsement of any of Its
member banks, with a waiver of de
mand notice and protest by snch bank,
any federal reserve bank may dis
count notes, drafts and hills of ex
Change arising out of actual commer
cial transactions -that is. note-, drafts
and bills of exchange Issued or drawn
for agricultural, industrial or commer
cial purposes of thT proceeds of which
have been used or sre to be used for
such purposes, the federal reserve
board to have the right to determine
or define the character of the paper
thus eligible for discount within the
meaning of this act. Nothing in this
act contained shall be construed to
prohibit such notes, drafts and bills of
exchange secured by staple .agricul
tural products or other goods, wares
or merchandise from being eligible for
such discount, but such definition shall
not include notes, drafts or bills cov
ering merely Investments or issued or
drawn for tho purpose of carrying or
trading in 'stocks, bonds or other in
vestment securities except bonds and
notes of the government of the United
States. Notes, drafts and bills admit
ted to discount uuder the terms of this
paragraph must have a maturity at
the time of discount of not more than
ninety days, provided that notes,
drafts and bills drawn or issued for
agricultural purposes or based on live
st-ck and having n maturity not ex
ceeding six months may be discounted
in an amount to be limited to a per
contage of the capital of the federal
reserve bank, to be ascertained and
a:.ed by the federal reserve board.
Any federal reserve bank may dis
count acceptances which are based on
the importation or exportation or do
mestic shipment of goods and which
have a maturity at time of discount of
not more than three months and in
dorsed by at least one member bank.
The amount of acceptances so dis
counted shall at no time cxceed one
half the paid up capital stock and sur
plus of the bank for which the re
discounts are made.
The aggregate of such notes and
bills bearing the signature or indorse
ment of any one person, company or
firm or corporation rediscounted for
any one bank shall at no time exceed
10 per centum of the unimpaired capi
tal and surplus of said bank, but this
restriction shall not apply to the dis
count of bills of exchange drawn in
good faith against actually existing
values.
Any member bank may accept drafts
or bills of exchange drawn upon it
aad growing out of transactions in
volving the importation or exportation
of goods having not more than six
months sight to run. but no bank shall
accept such bills to an amount equal
at any time in the aggregate to more
than one-half of Its paid up capital
stock and surplus.
wide!
coaim
(o
federal
purpose
federal
maintai:
countrie
establish
wheresov
purpose
leeting bii
and sell v
meut throu
agencies, bi
of actual
which have
to run and
of two or mi
niu-d a lev: nf :
tinmerce and business;
1: accounts w.t.i "ther
banks f.r exchange
th the consent of the
board, to open and
CCLD DZFCCiTS FZ
fiOTE nEDEutPTIG.
Th-i
accounts in foreign
- !
eorres'ion.Tiiits au.l 1
in such countries
deem best for the
ng. selling and col
hange. and to buy
ithout its iruorse
corrcsponcleiits or
hango arising out
ial transactions
than ninety days
ar the signature
lusihio panics.
! cut re
feder: 1
ea.h 1;
.r.,. hoard sh.ill re-
reserve b-'ak to
f
i raw n by any
il reserve i
..n funds to t e
r i:i s:.M re- rve
I.'.:)',' r.
l'T""l
60VERMMEfbCo1TS
BAM KG
.ii,tahi :! "! ..-it in u.e ic.
United t'-tabs a sum m
.:.!--:. e:;t of ti-e seciei.nj
re''e!-.:ptioii of
;. is-'i.-d to
!, than
tl.t
ciei.t in the
of the troas
the fed.r.'l
such ba:.k. but i i :
per centum. b:.t
h: II be eoai.r.-l a'
..r 1 1. . J'i t t r e .
inher.re require.:. Th- -ir sui.
have the ri-'M. t::;- through lb- fed
eral reserve a.eat. to -ra!.t in wh
or i:i part or t. reject t-.'itrcly th- a;
mirathm of any iedera! r. serve b;.;.S
rv for th
reserve n
I o I
h J.poit of .''M
1 Included a 1 art
Ui!l reserve" here-
Th- board
but t-
ma
Sec. !-". The
jroncral fund of
the T per centum
tion of outstandi!)
and the fundo pro
the redemption of
may. upon the dirJ
tary of the treasui
ieuerai reserve iai.
when required by th
treasury, shall act a
the
of
may
db
draw
No public fimds of
Islands or of the postal
government funds shall
held in the
asury, except
the- r.'demp
I br.nk i:les
thi net for
eser e notes
' the secre
epositcd In
:c:l banks.
try of the
i: gents of
l..r federal ro.-.erve l.otes
extent that such ap-'li-Mtion
n.i.t.xl the federal le-.rve 1"
throu-.'h ii l-K-al let. rai re-
v i I 1 le 'el a I reserve ""t -
V ::t. an.; s.i i
shall,
iii-ei.t.
t':e bank so
t.ie
be
,ird
;-!
.J i.
f.-l
it
b.u.k
l e eoa-tn
lank ir-".a
I n-e ia c '
ft: r... or fvr --
The fe r.
t t -.. e.i.t . -
v..'. .T b.i. h-4 f'": 1 '' 1
:. : r, : i
.,.. ai.d t'.e
; - t:",'
(,. t H O-.'
tr-n
by ri-e 1
ly tl-e s
;:,.r i'i i-ny o'b'T
i-.. ?!i'--r b :.'i
' t cf A !;--
1. r n.ei
.tn.i.'"'
;,,tl I
at.d renaixw..
,. ,,M t I- I":
. r- :.-:r I ' 1
t . ! ! '-
;ur
1
tf . T. mi.- v !
,.f clearing or e
the f.-derai reeo,
;.h t
r.
re! b
FUriCTIO";:
Or A
CLEARING
he at .oiiat
1 ..y h r to
.:.:: as m.!' ' -'etlcral
re-erve
sh:;!l be eh l -e.l v. i? '
such- notes and !.:
of interest on 1 a:
. ;i:,ii -le-d bv th-.?
board, aad the a... "a t of
oral reserve rotes s i- -a
. ...a. l.-.e'r j'i::ll r.:.o:i !. U.e
er with such n f. s of u. h federal re
c,rv.. Lank as i.".:y ! i.-u.-d under
-ctioii 1s of this act u; -ui security
-.1 St '.eS "' !' r CenlU.il
Sli. 'I fed-
d to any
rv. togeth-
of
vein-
e United Stales, ai' ll::tt l " ! ... nri
, revenues . . , lKu.is, b.-co.n.; i. I r -i :uI P"-
the government or i . , ' ,, ,. i.
, , , ,. , , It thereof ..,.,-.,,t lien on all tae of n
iy be depos ted in A , , ' 1
i . i yi-ks an 1 i ... e
doirsements mav be 1 , . . .-
awn against such deiV Any fed end .-serve ban. fl'f
DISCOUNT OBLIGATIONS
OF MEMBER BANKS
Section ."202 of the revised statutes
of the United States is hereby amend
ed so as to read as follows: No asso
ciation shall at any time be indebted
or iu any way liable to an amount ex
ceeding the amount of its capital stock
at such time actually paid in and re
maining undiminished by losses or oth
erwise, except on account of demands
of the nature following:
First. Notes of circulation.
Second. Honeys deposited with or
collected by the association.
Third. Iiills of exchange or drafts
drawn against money actually on de
posit to the credit of the association or
due thereto.
Fourth. Liabilities to the stock
holders of the association for divi
dends and reserve profits.
Fifth. Liabilities incurred uuder the
provisions of this act.
The rediscount by any federal re
serve bank of any bills receivable and
of domestic and foreign bills of ex
change and of acceptances authorized
by this act shall be subject to such re
strictions, limitations and regulations
as may be imposed by the federal re
serve board
Open Market Operations.
Sec. 14. Any federal reserve bank
may, under rules and regulations pre
scribed by the federal reserve board,
purchase aud sell in the open market
at home or abroad, either from or to
domestic or foreign banks, firms, cor
porations or individuals, cable trans
fers and bankers' acceptances and
bills of exchange of the kiuds and ma
turities by this act made eligible for
rediscount with or without the indorse
ment of a member bank.
Every federal reserve bank shall
have power:
(a) To deal In gold coin and bullion
at home or abroad, to make loans
thereon, exchange federal reserve
notes for gold, gold coin or gold cer
tificates and to contract for loans of
gold coin or bullion, giving therefor,
when necessary, acceptable security,
including the hypothecation of United
States bonds or other securities which
federal reserve banks are authorized
to hold;
(b) To buy and sell at home or abroad
bonds and notes of the United States
and bills, notes, revenue bonds and
warrants with a maturity from date
of purchase of not exceeding six
months, issued ia anticipation of the
collection of taxes or in anticipation of
the receipt of assured revenues by any
state, county, district, political subdi
vision or municipality in the conti
nental United States. Including irriga
tion, drainage and reclamation dis
tricts, such purchases to be made in ac
cordance with rules and regulations
prescribed by the federal reserve
board:
(c) To purchase from member banks
nnd to sell, with or without its in
dorsement, bills or exchange arising
out of commercial transactions as
hereinbefore defined;
(d) To establish from time to time,
subject to review and determination
of the federal reserve board, rates of
discount to he charged by the federal
reserve bank for each class of paper.
llippine
or any
.-..wo ...i
a the continental Uru,,. .n
any ii.::ik not neamging I
established by this act: pr
ever, that nothing iu this
construct to deny the n
secretary of the treasury t
ber bunks as depositories.
No'o Issues.
Sec. 10. Federal reserve
he Issued at the discretio?
federal reserve board for t!
of making advaie es to Ii
banks throaeh the federal
agents as hereinafter set foil
lor no otlier purpose ai lien
thorized. The said notes shall
ligations of the United Stale
how
Vll be
t he
ivm-
r with tue
leral rcsone
tilae rclu.v its a.n.i a., mm -lag
federal reserve i.otts by d.-p -t-
fe.U i d iv.-i rv..- agent
,i J. g..ld e. r-
tiiieales or lawful laoaey of tla- i rai
..I States. iVhr..l re.-ervi ;-s so
deposited shall not be rei
upon compliance viih U
of an original isr-
ae.l e 'pt
coU'lu.ons
The f'
cue
el;
e.
U.-ta
br.il..
shall be receivable bv
.! nation
1! :
member banks and federal n
hanks and for all taxes, custom
other public dues. Th-y shall !
deemed in gold on deauir 1 at tl.et:
ury department of the United Si:
in the city of Washington. District
Columbia, or in gold or lav. fill laoi
at any federal reserve hank.
r:l .-serve r.--at s-hai. .
;;. rites or I.IV.'ir.i
I..-i..:.v for ex
r. g nuerui -
..eiel by the re
ii l.e Is a director,
f il.e s. eretary -f
! r..l r- rve lw.ara
!. l.il reserve a-elit
of sal 1 ol l t
United States a-
1 l.r the hi-lve pur
u. ;.,;.':! of Mu ll Ii ts.
aniv may at us
It-
Tbe f.-
; I p-..l;..:.T
il r- -. r- !-
f.em I
i U
e-- tl.C
. r;
la;
f r
ta
:. : i
iag I
:!. r
r ,. t ;l i. i
g !
iaa a !
i:. of t'
Ur it d
sti-h gold, fold
money avail u'.
eiiair-re for the 1
serve notes ivi.ea
serve bank of v. ha
I'; on ta." reaesf .
tlie tivusnty th..' !' '
sa.all re ; aire the f
f. transaiit so i. i:
t!:e treasury :" thi
!.i :y i'O reqoir.
of the l
'.nv f oiler: '.I r--ere
.r...i-..ti,i'i w i: U !;.t'.v vol
ed vith the I ' al f,-.h ral r'-rv- ---:
for the j roteetaai of its te.ieral re- rve
s deioited .i:h it Mid Miall ai
-tin,, ti-ne substitute th' refer -Uh-
ike collateral of equal aai
a approval 'i
;!l ::
i. Is a:. i "
;1 reserve 1 :
1 i. .-y at
fare tIo..s -' a
f.-d. r..l r. r.a
:.: te a fed i-.. I
sa. i f a. e ti" -.- aad '
, Ii sa h ba:.'- f '
tIo,:s of a e'.ea;
1:. r . '!:-.
f.-v. !7.
,'L recti..:)
i.t.s of t:
t;..'i 4 of U.e a t i
,-! I s X - a
u! ' f :'"
lag sia.tl.i. s n
f - .:! !:t:.Iv- :
ra.i i -I"i I ?" e aa
..-.- I: si... Il tr
tr; .; .liivr ef lie t I
:ii:,-:i:t of l'a.t'
J...I..I.S 1 ! "1
peal.d.
Sea 1". Aft'T I
I ef II a
!:aa g a fe. I '
afier ar; i a! ,
l-eti..' the :.
cir a:!. ! i g : - -
r of t i
;a : ii u t-
;.'! ...'aa.
..els s
J s-. I. i: i .
t. tl r g
t.-,a f.r
in a - '
r b- : -
u
... for
; . i V o
I I .'V
pr
r - t:
I" e f !
. I ,r It a., ai
',.. r r.' '.-I
aa'-el 1
if. s a ad '
1 . r
J 12. I
i . . f '- '
... r.eo ' :
- :.!.-! 1-
.:'..!
I . !
t a: I
t vei .y
- lr
..r : ay
i,-v r
:..:i i
. - ! a -.'
r t t.
i .-
g: -
r.
.1
f- a th"
;l !. V til.
-1 .a
.rt
tre
alter::! d.
a
at in:!"." leuu!
Am' federal reserve bank mav aai
indication to the local federal reseia i- ibed by th
circulation as k .i . .o n . . . .
ai t wi.h
'.. ral roere
:i.a.s ta be pre-
fe-b'val r--s. rve bur I.
fiaaa.-h siutahie notes
reserve notes hereinbefore provided
for as it may require, l-n.-h ajeiiica
tion shall be accompan ed with a ten
der to the local federal rest rve agent
of collateral in amount equal to the
sum of the federal reserve notes thus
applied for and issued pursuant to
such application. The collateral se
curity thus offered shall be notes aul
bills accepted for rediscount under the
provisions of section 1.1 of this act.
aad the federal reserve agent shall
each day notify the federal reserve
board of ail issues and withdrawals
of federal reserve notes to and by the
federal reserve bank tr which he is
accredited. The said federal reserve
beard may at any time call upi n a
federal reserve hank far additional se
curity to protect the federal reserve
notes issued to it
livery federal reserve bank h.-ill
maintain reserves in gold or lawful
money of not less than per ceut:::n
against its deposits and reserves in
gold of not less than AO per centum
against its federal roerve notes in
actual circulation and mt offset oy
notio
e.. ai:.tr. Her of the currency shall.
er Mie uirectio-i of the M-r. tary of
treasury, cause p.aics aau
raved iu the best mai.ner to
1 ; gaiust caualerfeiis ai.d fr.:i.d
iterations a:.l stia.i lane praa
erefroai and i.uaiU red iU-At
ti-s of suvh not s ef tlu de
ili.. as of ar,. ?-'. ?.
is t-aiv be required t- sal i'li
t! -V..I-. i-.- ,. ree banks. Sa.h n-.f
in form aia.l teaer as da. et-
he secretary Uu
ie pro i.i'.ns of t
ar the d'siiu.-tive
r-
I'.l.
I oa
f-'.
to.,
ti .
.eb
ed.
Th- tr.
:a; i ly
s r e 1
f r i s
i:.t- r -t.
g . tr a-..
t
i i
;U f.
a : a;
at l i
r i ; .
1.. r
b
.1 a.
:.,r.s. . .... I
1 i.:::y !a its
il r rv. !
fr- ;.i U e
ha e 1 " a
I'lntb
fU.r:.. -:
.:. a n a
tof .
- f
t
r,;erti r.
; a r.-;aa
.. ;. '. !
m!i.i' a ;
Vl .I. l'e
U f.-r." He
d at v. !.; a
!.. ;r .'..r.- t
I
iv.
r-ol.1 or lawful nionev deriosited with! .
, 4( L
the federal reserve agents. .Notes
so paid out sh.ill boar upon their
faces a distinctive letter and .-eiial
number, which shall be assigned by
the federal reserve board to each fed-
era! reserve bank. Whenever federal
reserve notes issued through one fed
eral reserve bank shall be received by
another federal reserve bank they shall
be promptly returned for c redit or re
demption to the federal reserve bank
through which they were originally is
sued. No federal reserve bank shad
pay out notes issued through another
under penalty of a tax of 10 per centum
upon tiie face value of l.otes so paid
out Notes preseativl for redemption
at the treasury of the United States
shall be paid out of t ie redemption
i i i ... f..a.f..i
serve banks through w: ich they were
originally issued, ar. 1 thereupon such
federal reserve bank shall. up n de
mand of the secretary of the treasury,
reimburse such redemption fund In
lawful money, or if su..h federal re
serve notes have been redeemed by
the treasurer in gold cr gold certifi
cates then such funds shall be reim
bursed to the extent deemed necessary
by the secretary of the treasury in gold
or gold certificates, and such federal
reserve bank .shall, so lorg as any of
its federal reserve notes remain out
standing, maintain with the tieasurer
in gold an amount sullieii-at la the
Judgment of the secret:. ry to provide
for all redemptions to I e made by the
treasurer. Federal reserve notes re
ceived by the treasury otherwise than
for redemption may be exchanged for
gold out ef the redemption fund here
inafter provided and returned to the
reserve bank through w! leh they were
originally issued, or they may bo. re
turned to such bank for the credit of
the United- States. Federal reserve
notes unlit for circulation shall be re
turned by the federal rcse-rve ."-ears to
the comptroller of the ei.-rrtaay f
cunceliaticu uud destruc; on.
Ule
sha
the
thro
W
pare
tie-asl.
of t!V"
cf bu
bank.
MKh I'
Co ia; tli
deliver;
The
by the
for the
a.
ect
tr asary
ills ::.-! and
nuial o"-s of
)i.-r at " t t, u f
f mi;.- : I r... I
fed -.1 ! r.e 1
p :r i ,i" t i..a -.':
Fr- Ida.?, t) :; f. b r I n - :
si : "I i.t b ; r ' at' -i f ! a
eir.t t e.-'--l ."'."
Un.'li ia :.:.y !... ; . .r. aa
aiiaau.t sV.i b. aa '
u: i. r soot, ai I o: ie
. . i I t '.x.
Fr.ai.i. 1. fa;-:V, r.
r- T e I- ii . ! s'i . 1 ;
aai r srn e I an';
si. 'h I n I a 1 1: :
e I
h 's
f
.r.ds a.
t I
. Ilk s
f-
1 at f
t . f
I J -..;r'a n
1 n : k
'ita I a :
; .1
r t
g.'te c i
I :: 1 r- -. -I' , e '.
U: ; a- ti--..
r a.on: t of !. .. is v
I eaeh l.e ' :b r b T
. 1 tr;i.-r r. ia w
T .' v.
th.
il federal
hi;h they r.
U ll l.otes
: saali Is"
r iu the suT
reserve ba
e been
ie-.oii -d in
aeasiiry or .aiat
pre-
.jl States i;. :n t the I
.r eaell f.d.-r.il re-erve
.hall be held for the Use of
libject to the or.Ier of the
of the currency for their
i r i.i d bv tb'.s act.
i 1 riles to I-? I r. i:re.I
!.ir..::er oi lae a:nni )
ring of sui h circahiiiag
laain under his control
ai.d direct :ltvi the fx:'eiic ue-"s-saiily
ilieulj j exeeu: ag the laws
relating to I tirociring f su-h notT
aad all ot '. e pea. s i:..-h'."i.!)l
their Issue I. j retirement '.:. 11
; :nd ly the ril re r. i:
the federal r V x e board shall ii
in lis est la
a-aicst th;
t' e fe Ie: :I r
s line, a ad .
sla:!! tia r-i
v. ith ti e
Si ate.; f.-r t
M1,. J. ; f
the ia a:!- :
any bah-n.-a
fi. iei.t svvt
ir t.s s.- -
i I!... t"1 - ar. r of t he
s. id f.-r il a : t
k : 'l .: !v :--:
r.f g. 'i t-e !- t
ar. I. oai: tl
r.----ie t.roi'i
a u .':l i ... r
ral
t
dent sua'
es I ereill
The exaa i :i:i
pie s
I a
:. ! so
relating t. su h
dies and so So
notes pro". I led I
vi.-N d stat. lies, i
Include fed Till
provided for.
Any af pn.; i:it:
out of the g.a e.M
ury for en-ira-. iag
purchase of Ii-:l.
co it any oi l e, :
with the 1 lililiag
totes or I.-'t.-s lo'i
cf Mav tin. iua-. :
pa; er ti; it n.;iy ! a
the p.. s sage of ;hi
bi th- dScrelioti f t
the p:r;.-. -s this
the :i ;-;: ;.. i m ns I. rt
iii.-uhi. i- a: to a e. t t!
ef tl.i ; a- t ia ad.hr: a
to
be
and
bide
f 'M-e es levied
:l re-e: bai.hs a
to cover the ct
ah d f r.
of p'.at.-o dl-s. bed
;a. and i jruiati'-iis
..a.in. i. 'li of p'aites-.
f natit ral ba ij;
i .eet'.oi. .".ITI. r
le'.V ' Uld'-I ti'
rvt not. s bi-reia
rve
a I.
a
i-a. . r f tl. I ..I: -l
:r- I..;.- ; r . ,.f .i.--t
la a r i il : v t
'ia,. .g m I i- ee!
. afi'T '. ! ; ;:;. g ;i a:f
r"-!T i.t is. 4 i a i ..!. g
by "i'c!i I -.V x. i
r : t i'd a 1 l i , i-
r- l;-. d v h. a r i.-ca. !.
feb ial reservi b.iiiW-t pi;r. 44
: h la ! s! ..ii r-"ia d t
"iit an :".::: i t of ;r. a'.a.-:g
e-ai.ij l i the ; if via:.- t.f ...'
i .
to
i
. i.
11
rv-tes
..:!;
T"a'
lag s
take
Ilotl s
N -tids.
T". n th" d.;- t t.ith the tr-'i-'ir. r
f tho t .,1! i m ii.-. r i. -. t.,t..
rb.' I. r
iag jia.i'
4 Of to
I aak it:. '.
I:t pr..v,
eaaaio.t t
h r of t!
b
i
tot', s proi-d f..:
the Si-.-l -clary is her
use so lea h f any
i:ry le t ; h rv. :
par's. si- of f;:r!:I- hi
K::id: I'rovi'I.-!. !: .
in this set ;i..n eon;
st nasi ::.s -m i.o-i i
hTl tofil t.lilde
, ids f t e tre. is
t -s n I . ii -. til."
1 e 1 !. t
Is' i.l e.. t i"ll
t it Lai. I bank
I: f..r b fie ie t
I I :.!. . (".. 1 ..-TiVe
aid at t I" t. aa
t laay - u e I
k s. n tv f..r
It. I a. id
,,
. l aa I at
:'.. i; l aii g
l y vi -'Ii I I .
'v 1 i: 1. - I d t
faae , !;i t - . -s
I pro; ;th 1 : U -
g lii" le f.'.o.
-Ver. to;. ! ! !.'; g
i;e-! i oi;
a n ri. a il -.i :
a i;s f. i u. .. a ,.
th-
:
g.-t;-
! r:
p.-:
t
T.'
i : h
!:. t--..'d
l y
:r i
i.-d. S i
as of ,;,
g fa-
- ri! ,d
';ry. a;
t as i ..
I 1 v
I- : ;
'V I en . s w ; ,i J 'o . . p- ; :; t -
i' i.'. u-.d. r - te.ii
a;. y feii r .1 r--i rt
a ih I - -i i in I a.- : n -
.!-:: g ho.- vi..i! b.-
f i o I III ". :, !f..l
'c. 1 1 :. g n...es : i
i'i e t:i !. r-'-i. ed ;1 ,
- , ia ;i:-...i:m to
. a i t.
h -l r
t l e, . i-,
cj . r.
I r
. i
I t
' ..1 tl
i r e i i
. :i i i
" r t i r y
- -- f.-:..
I. r .
. f-T-
f f-
il b:
T I
t.-s I
ev
d tl
IV
!'
t.
a
the Ft. iie I I;..;
arre.l la aiat.
or federal r. ' t I
biiity to leia.i i: ;-.-
far any -j.p. a i:
aad i-st;'. g ci.i-ahitlag a :.-s. I
livery f hral re-e-.e a mi a s'i.'i r
eel. u: (l-'i'i'-.i; ut -. r la-u : -' . r
ban.V or f:--.a fe'h-: .l ie-. :", i..i:!s
c: eel.s aa.l d:.:f dr-i-.;--. '; , r
it. (! ;- -iaa- x. en re.. : hy
federal reserve bar-ii ehei ks an J rlraft.i
a: 1
.!'.-
I--.I.
t. r a
! s 4
it- : t . u
of t.ie i
then,.
I ' ' i
f 'lf ! ,
Tl -i r,.
fr a ':a
F: I - t :
U'.in
ng d:
IH 4 a-
Ui.:--
pnvi'-g..
l.e l. ilf ,
so tea-h :
year Z p
the c:ri
niai-.h-r
o tev.b-r
or sa h ,x
bank o t a it
re..T"H .' .- i i ,.
W.th t! .. . ...
binding ir..r
i I... i
i .
t i it ti.
- t"
i. :ti
it i
be
f t:
r v
t
:
t -
t
I
u
.-. :
r .1
s !
r
r :
:
a.: c
i
a l ;
; it
i i a -'
Ih . '
t r r
r i .
? ... ;
d
f r
r r . - -
ti at :t
r '.. i ,
a I.
t'
t
: 'i
r :
tr s