NaTioNAL BANKING UNDER THE FEDERAL RESERVE SysTEM 
No public funds of the Philippine Islands, or of the postal savings, or any Govern- 
went funds, shall be deposited in the continental United States in any bank not be- 
longing to the system established by this Act.! Provided, however, That nothing in this 
Act shall be construed to deny the right of the Secretary of the Treasury to use member 
banks as depositories, 
The Federal reserve banks are hereby authorized to act as depositories for and fiscal 
agents of any National Agricultural Credit Corporation or Federal Intermediate 
Credit Bank. 
Ea 
Note Issues 
As amended by act approved Sept. 7, 1916 (39 Stat., 752, chap. 461); act approved 
June 21, 1917 (40 Stat., 232, chap. 32); act approved Sept. 26, 1918 (40 Stat., 967, 
chap. 177). 
Sec. 16. Federal reserve notes, to be issued at the discretion of the Federal Reserve 
Board for the purpose of making advances to Federal reserve banks through the 
Federal reserve agents as hereinafter set forth and for no other purpose, are hereby 
authorized. The said notes shall be obligations of the United States and shall be re- 
ceivable by all national and member banks and Federal reserve banks and for all 
taxes, customs, and other public dues. They shall be redeemed in gold on demand at 
the Treasury Department of the United States, in the city of Washington, District of 
Columbia, or in gold or lawful money at any Federal reserve bank. 
Any Federal reserve bank may malke application to the local Federal reserve agent 
for such amount of the Federal reserve notes hereinbefore provided for as it may re- 
quire. Such application shall be accompanied with a tender to the local Federal reserve 
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 security thus offered shall 
be notes, drafts, bills of exchange, or acceptances acquired under the provisions of 
section thirteen of this act, or bills of exchange indorsed by a member bank of any 
Federal reserve district and purchased under the provisions of section fourteen of this 
act, or bankers’ acceptances purchased under the provisions of said section fourteen, 
or gold or gold certificates; but in no event shall such collateral security, whether gold, 
gold certificates, or eligible paper, be less than the amount of Federal reserve notes 
applied for. The Federal reserve agent shall each day notify the Federal Reserve 
Board of all issues and withdrawals of Federal reserve notes to and by the Federal 
reserve bank to which he is accredited. The said Federal Reserve Board may at any 
time call upon a Federal reserve bank for additional security to protect the Federal 
reserve notes issued to it. 
Under sec. 7 of the act approved Apr. 24, 1917, sec. 8 
. 24, , sec. 8 of the act approved Sept. d 
ome of i end 
2 } n-member banks. See Appendix, pp. 69, 70. The act 0 
Mog 18, 1010, sending the Postal Savings Act, authorizes the ke of postal savings funds in 
Under sec. 13 of War Finance Corporation Act, a 
; d , approved Apr. 5, 1918, r 
Finance Corporation bonds may be used to the same extent, as onion, ta mae 
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