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SEC. 28 
FEDERAL RESERVE ACT 
of such of their notes in circulation as are based upon 
the deposit of such securities, and afterwards an addi- 
ional tax rate of one-half of one per centum per annum 
for each month until a tax of six per centum per annum 
's reached, and thereafter such tax of six per centum per 
Annum upon the average amount of such notes: Provided 
further, That whenever in his judgment he may deem it 
desirable, the Secretary of the Treasury shall have power 
0 suspend the limitations imposed by section one and 
section three of the Act referred to in this section, which 
Prescribe that such additional circulation secured other- 
Vise than by bonds of the United States shall be issued 
only to National banks having circulating notes outstand- 
ng secured by the deposit of bonds of the United States 
0 an amount not less than forty per centum of the capi- 
a] stock of such banks, and to suspend also the condi- 
lons and limitations of section five of said Act except 
that no bank shall be permitted to issue circulating notes 
Mn excess of one hundred and twenty-five per centum of its 
impaired capital and surplus. He shall require each 
dank and currency association to maintain on deposit in 
‘he Treasury of the United States a sum in gold sufficient 
0 his judgment for the redemption of such notes, but in 
no event less than five per centum. He may permit 
National banks, during the period for which such pro- 
7isions are suspended, to issue additional circulation 
under the terms and conditions of the Act referred to as 
herein amended: Provided further, That the Secretary of 
‘he Treasury, in his discretion, is further authorized to 
extend the benefits of this Act to all qualified State banks 
and trust companies, which have joined the Federal re- 
serve system, or which may contract to join within fif- 
een days after the passage of this Act. 
Sec. 28. Section fifty-one hundred and forty-three of 
the Revised Statutes is hereby amended and reenacted 
to read as follows: Any association formed under this 
iitle may, by the vote of shareholders owning two-thirds 
of its capital stock, reduce its capital to any sum not 
below the amount required by this title to authorize the 
‘ormation of associations; but no such reduction shall be 
allowable which will reduce the capital of the association 
below the amount required for its outstanding circulation, 
aor shall any reduction be made until the amount of the 
proposed reduction has been reported to the Comptroller 
37 
Jeg AD