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Fedoral reserve bank bo dissolved or go Into
liquidation, any surplus remaining, after the
psymont of all debts, dividend requirements as
hereinbefore provided, and the par value of the
8tock shall bo paid 'to and become tho property
of tho United States and shall bo similarly ap
opllod, Federal reserve banks, Including tho capital
stock and surplus therein, and tho incomo do
rived therefrom shall bo oxempt from Fedoral,
Stato, and local taxation, except taxes upon real
estate.
Sec. 8. Section flfty-ono hundred and fifty
four, United States Revised Statutes, is hereby
amended to read as follows:
Any bank incorporated by special law of any
Stato or of the United States or organized under
tho general laws of any Stato or of tho United
States and having an unimpaired capital suffi
cient to entitle it to become a national banking
association under the provisions of the existing
laws may, by tho vote of tho shareholders own
ing not less than flfty-ono per centum of tho
capital stock of such bank or banking associa
tion, with tho approval of the Comptroller of
tho Currency bo convortod into a national bank
ing association, with any name approved by tho
Comptroller of the Curr.oncy:
Provided, however, That said conversion shall
not bo in contravention of tho State law. In
such caso tho artlclos of association and organ
ization certificate may bo executed by a majority
of tho directors of tho bank or banking institu
tion, and tho certificate shall declare that the
owners of flfty-ono per centum of tho capital
stock have authorized the directors to make such
corliflcato and to change or convert the bank or
banking institution into a national association.
A majority of tho directors, after executing the
articles of association and the organization cer
tificate, shall havo power to execute all other
papers and to do whatover may bo required to
make its organization perfect and complete as
a national association. Tho shares of any such
bank may continue to be for tho same amount
each as they wore before tho conversion, and
tho' directors may continue to be directors of
tho association until others are elected or ap
pointed In accordanco with the provisions of the
statutes of tho United States. When the Comp
troller hasigivon to such bank or banking asso
olatibn a certificate that the provisions of this
Act havo been complied with, such bank or bank
ing association, and all its stockholders, officers,
and employees, shall havo the same powers and
privileges, and shall bo subject to the same
duties, liabilities, and regulations, in all re
spects, as shall havo been proscribed by the
Foderal Reserve Act and by tho national bank
ing Act for associations originally organized as
national banking associations.
STATE BANKS AS MEMBERS
Sec. 9. Any bank incorporated by special
law of any state, or organized under the general
laws of any Stato or of tho United States, may
make application to the reserve bank organiza
tion committee, pending organization, and
thereafter to the Foderal Reserve Board for the
right to subscribe to tho stock of the Federal re
serve bank organized or to bo organized within
tho Federal reserve district where the applicant
. is located. Tho organization committeo or tho
Federal Reserve Board, under such rules and
regulations as it may prescribe, subject to the
provisions of this section, may permit tho apply
ing bank to become a stockholder In tho Federal
reserve bank of tho district in which tho apply
ing bank is located. Whenever the organization
committeo or the Federal Reserve Board shall
permit the applying bank to becomo a stock
holder in tho Federal reserve bank of the dis
trict, stock shall bo issued and paid for under
tho rules and regulations in this Act provided
for national- banks which become stockholders
in Federal reserve banks.
The organization committor ov tii T?n,woi
Jtdservo Board shall establish by-laws for the
general government of its conduct in acting
upon applications made by the State banks and
banking associations and trust companies for
stock ownership in Fedoral reserve banks. Such
by-laws shall require applying banks not organ
ized under Federal law to comply with the re
serve and capital requirements and to submit
to the examination and regulations prescribed
by the organization committee or by the Federal
Reserve Board. No amilvimr hmnr cimii u j
mitted to membership in a Federal reserve bank
umcb& n. yuHbesses a paiu-up unimpaired capital
sufficient to entitle it to become a national bank
ing association in the place where it is situated
under the provisions of the national banking
Act.
Any bank becoming a member of a Fedoral
reserve bank under the provisions of this sec
tion shall, in addition to the regulations and re
strictions hereinbefore provided, be required to
conform to the provisions of law imposed on the
national banks respecting the limitation of
liability which may bo incurred by any person,
firm, or corporation to such banks, the prohibi
tion against making purchase of or loans of
stock of such banks, and the withdrawal or im
pairment of capital, or the payment of un
earned dividends, and to such rules and regula
tions as tho Federal Reserve Board may, in
pursuance thereof, prescribe.
Such banks, and the officers, agents, and em
ployees thereof, shall also be subject to the pro
visions of and to the penalties prescribed by sec
tions fifty-one hundred and ninoty-eight, fifty
two hundred, fifty-two hundred and one, and
fifty-two hundred and eight, and fifty-two hun
dred and nine of the Revised Statutes. The
member banks shall also be required to make
reports of the conditions and of the payments of
dividends to tho comptroller, as provided in sec
tions fifty-two hundred and eleven and fifty-two
hundred and twelve of the Revised Statutes, and
shall be subject to the penalties prescribed by
section fifty-two hundred and thirteen for- the
failure to make such report.
If at any time it shall appear to the Federal
Reserve Board that a member bank has failed
to comply with the provisions of this section or
the regulations of the Federal Reserve Board,
it shall bo within the power of tho said board,
after hearing, to require such bank to sur
render its stock in the Federal reserve bank;
upon such surrender the Federal reserve bank""
shall pay the cash-paid subscriptions to the said
stock with interest at the rate of one-half of
ono per centum per month, computed from the
last dividend, if earned, not to exceed the book
value thereof, less any liability to said Federal
reserve bank, except the subscription liability
not previously called, which shall be canceled,"
and 'said' Federal reserve bank shall, upon notice
fromMhe Federal Reserve Board, bo required to
suspend said banki from further, privileges' of'
membership, and shall within thirty days of such
notice cancel and retire its stock and make -payment
therefor in the manner herein provided.
The Federal Reserve Board may restore .mem
bership upon due proof of compliance with the
conditions imposed by this section.
FEDERAL RESERVE BOARD
Sec. 10. A Federal Reserve Board is hereby
created which shall consist of seven members,
including the Secretary of the Treasury and the
Comptroller of the Currency, who shall be mem
bers ex-officio, and five members appointed by
tho President of the United States, by and with
the advice and consent of the Senate. In select
ing the five appointive members of the Federal
Reserve Board, not more than one of whom shall
be selected from any one Federal reserve dis
trict, the President. shall have due regard to a
fair representation of the different commercial
industrial and geographical divisions of the
country. The five members of the Federal Re
serve Board appointed by the President and
confirmed as aforesaid shall devote their entire
time to the business of the Federal Reserve
B?ar rta?SLBna11 each receive an annual salary
of $12,000, payable monthly together with
actual necessary traveling expenses, and the
Comptroller of the Currency, as ex officio mem
ber of the Federal Reserve Board, shall, In addi
tion to the salary now paid him as Comptroller
of tho Currency, receive the sum of $7,000
annually for his services as a member of said
Board.
The members of said board, the Secretary of
the Treasury, the Assistant Secretaries of the
Treasury, and the Comptroller of the Currency
shall be ineligible during the time they are in
office and for two years thereafter to hold any
office, position, or employment in any member
bank. Of the five members thus appointed by
the President at least two shall be persons ex
perienced in banking or finance. One shall be
designated by the President to serve for two
one for four, one for six, one for eight, and one
for ten years, and thereafter each member so ap
pointed shall serve for a term of ten years unless
sooner removed for cause by the President Of
the five persons thus appointed, one shall be
designated by the President as governor and
SwS8 Q sovernor of the Federal Reserve
Board. The governor of the Federal Reserve
Board, subject to its supervision, shall be he
active executive officer. The Secretary of the
Treasury may assign offices in the Department
of the Treasury for the use of the Federal Re
serve Board. Each member of the Federal Re
serve Board shall within fifteen days after notice
of appointment make and Subscribe to the oath
of office. '
The Federal Reserve Board shall have power-,
to levy -semiannually upon the Federal reserved
banks, in proportion to their capital stock and'
surplus, an assessment sufficient to' pay its esti
mated expenses and the salaries of its members
and employees for the half year succeeding-the
levying of such assessment, together -with' any
deficit carried forward from' the preceding half '
year. -
The first meeting of the Federal Reserve '-"'
Board shall be held in Washington, District of"'
Columbia, as soon as may be after, the passage '
of this Act, at a date to be fixed by the Reserve '
Bank Organization Committee. The Secretary '
of the Treasury shall be ex officio chairman of
the Federal Reserve Board. No niember of the ' '
Federal Reserve Board shall be an officer or
director of any bank, banking institution,' trust' '
company, 'or Federal reserve bank nor hold stock "-'
in any bank, banking institution, or trust corny."
pany; and before entering upon his 'duties as a
member of the Federal Reserve Board he stiajl "
certify under oath to the Secretary of, the Treas-" ;
ury that he has complied with .this requirement
Whenever a vacancy shall occur, other than by '
expiration of term, among the five members of ' '
the Federal Reserve Board appointed by the ' .'
President, 'as above prdvided, a successor shalT"'
be appointed by the' Presidentwith the advice '
and consent of the Senate, to "fill such vacancy?-"
and when appointed he shall Tiold "office for th
unexpired term of the member wtiose place he
ia selected to fill. " ' . .
The President shall haye- .power to fill'iaU'''
vacancies that may happen on the. Federal Re
serve Board during the recess. jof the Senate, 'by
granting commissions which shall expire .thirtv
daVS affpr thn novf b'm.U 'm.- ' ai '
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venes ' '
Nothing ui.; this:. H:t9famtittelfis
strued as taking away. ,aW ppSersleSoS
vested. by Jaw. n, trie Seir3WVASwi5
which relate" to the supervision managements
and control of the Treasury Department and
bureaus, under such department, and wherever
any power vested by this Act in the Federal Re-- ".
serve Board or the Federal' reserve agent an-!'
pears to conflict with the powers of the Secretary"
of the Treasury, such .powers, shall be exercised :
subject to the supervision and control of thei
Secretary. . "
The Federal Reserve Board ' shall annually '
make a full .report of its operations to the '
Speaker of the House of Representatives, who ,
shall cause the same to.be printed for the in
formation of the Congress. '
Section three hundred and twentv-four of tho'
Revised Statutes of the United States shall b
amended so as to read as follows: Thero shall "
be in the department of the Treasury a, bureau
charged with the execution of all taws passed '
by Congress relating to the issue and regulation
of national currency secured by United States
bonds and, under the general. supervision of the
Federal Reserve Board, of all Federal reserve
notes the chief officer of which bureau shall be -called
the Comptroller of the Currency and "hal!
perform his duties under the general dSeetlon
of the Secretary of the Treasury. sections
J't11', T? Federal Reserve Board shall-be
authorized and empowered: ...
(a) T examine at its discretion the accounts '
books and affairs of each Federal reserve bank '
and of each member bank and to reS such
statements and reports as it may deem necessS?'
The said-board shall publish once each week d
statement showing the condition of each Federal "'
reserve bank and a consolidated statement for
all Federal reserve banks. Such statements
shall show in detail the assets and I llaWlfttes of
the Federal reserve banks, single andZln
and shall furnish full information Sthi l
character of the money held as reserve and the
amount, nature and maturities of the paper and
other investments owned or held by Federal ret
servo banks. Buuai rer
n iLT? permIt' or on the affirmative vote of' '
at least five memhers of the Reserve Board ?'
&s&&r to be s:
(5 T susPend for a period not exceeding-"
thirty" days, and from time to time, to fene I v
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