The commoner. (Lincoln, Neb.) 1901-1923, January 01, 1914, Page 10, Image 10
."wnv & pi The Commoner m ,. 10 a', h- tf T ,4 ih ('. '. h.Vl v '.I. ft:1-.- ;i . i.v.,- -T Mi - 8fc'.. :' LV Vif: 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 ' --. - vvv, aeffyjii. .ui. LIAtJ rOeUULO1 COH- 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 . ' j M M t'i'n i? fo A