jf "rwrw&n & l &. ;, ij H 12 The Commoner .'AjSV purpose, aro hereby authorized. The oaid notes Hhnll ho obligations of the United States and shall ho rccolvablo by all national and member banks and Federal rosorvo banks and for all taxes, customs, and other public dues. Thoy shall ho rodeomod In gold on doraand at tho Treasury department of tho United Statos, in tho city of Washington, District of Columbia, or in gold or lawful money at any Fed eral rosorvo bank. Any Fedoral rosorvo bank may make application to tno local Fedoral reservo agont for such amount of tho Federal reservo notes herembeforo provldod for as it may require. Such application shall bo accompanied with h tender to tho local Fedoral reservo agent of collateral In amount equal to tho sum of tho Federal reservo notes thus appliod for and issued pursuant to such application. The collateral security thus offered shall bo notes and bills accoptod for redis count under tho provisions of section thirteen of this Act, and the Federal reservo agont Bhall each day notify tho Federal Rosorvo Board of all issues and withdrawals of Fedoral re eorvo nqtes to and by tho Fedoral re servo bank to which ho is accredited. Tho said Fedoral Reserve Board may nl any time call upon a Fedoral re Borvo bank for additional security to protect tho Fedoral reserve notes issued to it. Evory Federal reserve bank shall maintain reserves In gold or lawful monoy of not less than thirty-five per contum against its deposits and reserves In gold of not less than forty per contum against its Fedoral re servo notos in actual circulation, and not offset by gold or lawful money doposlted with tho Federal reserve agont. Notos so paid out shall bear upon their faces a distinctive letter and serial number, which shall be assignod by the Federal Reserve Board to each Fodeal reserve bank. Whonevor Fedoral reserve notes Issued through one Fedoral reserve hunk shall bo received by another Federal reservo bunk thoy shall bo promptly returned for credit or re demption to the Federal reserve bank through which they wore originally issued. No Federal resorve bank shall pay out notes issued through another under penalty of a tax of ten per centum upon tho faco valuo of notos so paid out. Notos presented for redemption at the Treasury of tho United States shall he paid out of the redemption fund and returned to tho Federal reservo banks through which they were originally issued, and thereupon such Federal reserve bank shall, upon demand of tho Secretary of tho Treasury, reimburse such re demption fund in lawful monoy or if such Federal reserve notes have been rodeomod by tho Treasurer in gold or gold certificates, then such funds shall bo reimbursed to tho extent deemed necessary by tho Secretary of tho Treasury in gold or gold certifi cates, and such Federal reserve bank shall, so long as any of its Federal reserve notes remain outstanding, maintain with the Treasurer in gold an amount sufllcient in the judgment of the Secretary to provide for all re demptions to be made by tho Treas urer. Federal reservo notes received by tho Treasury, otherwiso than for redemption, may bo exchanged for gold out of the redemption fund here inafter provided and returned to the reservo bank through which they were originally issued, or they may be returned to such bank for the credit of the United States. Federal reservo notes unfit for circulation shall be returned by the Fedoral re serve agents to the Comptroller of the Curreucy for cancellation and de struction. The Fedoral Reserve Board shall require each Federal reserve bank to maintain on deposit in the Treasury of the United States a sum in gold sufllcient in tho judgment of tho Sec retary of tho Treasury for tho re demption of the Federal reserve notes issued to such bank, but In no event less than flvo per centum; but such deposit of gold shall be counted and included as part of tho forty per centum reservo hereinbeforo re quired. Tho board shall have the right, acting through the Federal re serve agont, to grant in whole or in part or to reject entirely the applica tion of any Federal reserve bank for Federal reservo notes; but to tho ex tent that such application may be granted tho Fedoral Reserve Board shall, through its local Federal re serve agont, supply Federal reserve notes to tho bank so applying, and such bank shall bo charged with the amount of such notes and shall pay such rate of intorest on said amount as may bo established by the Federal Reserve Board, and tho amount of such Federal resorve notes so issued to any such bank shall, upon de livery, together with such notes of such Federal reservo bank as may be issued under section eighteen of this Act upon security of United States two per centum Government bonds, become a first and paramount lien on all assets of such bank. Any Federal reserve bank may at any time reduce Its liability for out standing Federal reserve notes by do positing, with tho Fedoral reserve agent, its Fedoral reservo notes, gold, gold certificates, or lawful money of tho United States. Federal reserve notes so deposited shall not he re issued, except upon compliance with the conditions of. an original Issue. The Federal reserve agent shall hold such gold, gold certificates, or lawful monoy available exclusively for exchange for the outsanding Fed oral reserve notes when offered by the resorve hank of which he is a di rector. Upon the request of the Sec retary of the Treasury the Federal Reserve Board shall require tho Fed oral reserve agent to transmit so much of said gold to the Treasury of tho United States as may bo required for the exclusive purpose of the re demption of such notes. Any Federal reserve bank may at its discretion withdraw collateral de posited with the local Federal reserve agent for the protection of its Fed eral reservo notes deposited with it and shall at the same time substitute therefor other like collatcrc.l of equal amount with the approval of the Fed eral reserve agent upon regulations to bo prescribed by the Federal Re servo Board. ' In order to furnish suitable notes for circulation as Federal resorve notes, the Comptroller of the Cur rency shall, under the direction of the Secretary of the Treasury,cause plates and dies to be engraved in the best manner to guard against coun terfeits and fraudulent alterations, and shall have printed therefrom and numbered such quantities of such notes of the denominations of $5, $10, $20, $50, $100, as may be re quired to supply the Federal reserve banks. Such notes shall be in form and tenor as directed by the Secre tary of the Treasury under the pro visions of this Act and shall bear the distinctive numbers of the several Federal reservo banks through which they are Issued. When such notes have been pre pared, they shall be deposited in the Treasury, or in the subtreasury or mint of tho United States nearest the piace ol Dusmess of each Federal re sorve bank and shall be held for the use of such bank subject to the order of the Comptroller of the Currency for their delivery, as provided by this Act. The plates and dies to be procured but the Comptroller of the Currency for the printing of such circulating notes shall remain under his control and direction, and the expenses necessarily incurred in executing the laws relating to the procuring of such notes, and all other expenses inci dental to their issue and retirement, shall be paid by the Federal reserve banks, and the Federal Reserve Board shall include in its estimate of expenses levied against the Federal reserve banks a sufficient amount to cover the expenses herein provided for. Tho examination of plates, dies, bed pieces, and so forth, and regula tions relating to such examination of plates, dies, and so forth, of national bank notes provided for in section fifty-one hundred and seventy:tour Revised Statutes, is hereby extended to include notes herein provided for. Any appropriation heretofore made out of the general funds of the Treas ury for engraving plates and dies, the purchase of distinctive paper, or to cover any other expense in connec tion with the printing of national bank notes or notes provided for by the Act of May thirtieth, nineteen hundred and eight, and any distinc tive paper that may be on hand at the time of the passage of this Act may be used in the discretion of the Secretary for the purposes of this Act, and should the appropriations heretofore made be insufficient to meet the requirements of this Act in addition to circulating notes provided for by existing law, the Secretary is hereby authorized to use so much of any funds in the Treasury not other wise appropriated for the purpose of furnishing the notes aforesaid: Pro vided, however, That nothing in this section contained shall be construed as exempting national banks or Fed eral resorve banks from their liability to reimburse the United States for any expenses incurred in printing and issuing circulating notes. Every Federal reserve bank shall receive on deposit at par from mem ber banks or from Federal reserve banks checks and drafts drawn upon any of its depositors, and when re mitted by a Federal reserve bank, checks and drafts drawn by any de positor in any other Federal reserve bank or member bank upon funds to the credit of said depositor in said reserve bank or member bank. Nothing, herein contained shall be construed as prohibiting a member bank from charging its actual ex pense incurred in collecting and re mitting funds, or for exchange sold to its patrons. The Federal Reserve Board shall, by rule, fix the charges to be collected by the member banks from its patrons whose checks are cleared through the Federal reserve bank and the charge which may be imposed for the service of clearing or collection rendered by the Federal reserve bank. The Federal Reserve Board shall make and promulgate from time to time regulations governing the trans fer of funds and charges therefor among Federal reserve banks and their branches, and may at its dis cretion exercise the functions of a clearing house for such Federal re serve banks, or may designate a Fed eral reserve bank to exercise such functions, and may also require each such bank to exercise the functions of a clearing house for its member banks. Sec. 17. So much of the provi sions of section fifty-one hundred and fifty-nine of the Revised Statutes of the United Statp.s. nnr? nonttnn of the Act of June twentieth eighteen hundred and seventy-four, and sec tion eight of the Act of July twelfth eighteen hundred and eighty-two' and of any other provisions of exist ing statutes as require that before any national banking associations shall be authorized to commence banking business it shall transfer and deliver to the Treasurer of the United btates a stated amount of United States registered bondsjs hereby re pealed. w -REFUNDING BONDS Sec. 18. After two years from tho passage of this Act, and at any time during a period of twenty years thereafter, any member bank desir ing to retire the whole or any part of its circulating notes, may file with the Treasurer of the United States an application to sell for its account, at par and accrued interest, United States bonds securing circulation to bo retired. The Treasurer shall, at the end of each quarterly period, furnish the. Federal Reserve Board with a list of such applications, and the Federal Reserve Board may, in its discre tion, require the Federal reserve banks to purchase suchbonds from the banks whose applications have been filed with the Treasurer at least ten days before the end of any quar terly period at which the Federal Reserve Board may direct the pur chase to be made: Provided, That Federal reserve banks shall not be permitted to purchase an amount to exceed $25,000,000 of such bonds in any one year, and which amount shall include bonds acquired under section four of this Act by the Federal re servo bank. Provided further, That the Federal Reserve Board shall allot to each ' Federal reserve bank such proportion of such bonds as the capital and sur plus of such bank shall bear to "the aggregate capital and surplus of all the Federal reserve banks. Upon notice from the Treasurer of the amount of bonds so sold for its ' account, each member bank shall ' duly assign- and transfer, in writing, ' such bonds to the. Federal reserve bank purchasing the same, au,d such Federal reserve bank .shall, tnepe-' upon, deposit lawful money with te' Treasurer of the United States 'for the purchase price of such bonds," and the Treasurer shall pay to the member bank selling such bonds any balance due after deducting a suffi cient sum to redeem its outstanding' notes secured by such bonds, which notes shall be canceled and perma nently retired when redeemed. The Federal reserve banks purchas ing such bonds shall be permitted to . take out an amount of circulating, notes equal to the par value of such bonds. Upon the deposit with the Treas urer of the United States of bonds so purchased, or any bonds with the circulating privilege acquired under section four of this Act, any Federal reserve bank making such deposit in the manner provided by existing law, shall be entitled to receive from the Comptroller of the Currency circulat ing notes in blank, registered and countersigned as provided by law, equal in amount to the par value of the bonds so deposited. Such notes shall be obligations of the Federal re-" serve bank procuring the same, and shall be in form prescribed by the Secretary of the Treasury, and to the same tenor and effect as national bank notes noT provided by law. They shall be issued and redeemed under the same terms and conditions as national-bank notes except that they shall not be limited to the amount of the capital stock of the Federal reserve bank issuing them. Upon application of any Federal reserve bank, annrnvp.ri hv fh !?, eral Reserve Board, the Secretary of the Treasury may issue, in exchange for United States two per centum gold bonds bearing the circulating privilege, but against which no circu lation is outstanding, one-year gold notes of. the United States without the circulation privilege, to an amount not to exceed one-half cf tho two per centum bonds so tendered for exchange, and thirty-year three per centum gold bonds without the cir culation privilege for the remainder in iiii ,KV T- 1 pgDpn ! H ,. ..jew-t . jfttfjf3&ag