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3c. 14 FEDERAL RESERVE ACT

Every Federal reserve bank shall have power:
(a) To deal in gold coin and bullion at home or abroad,
to make loans thereon, exchange Federal reserve notes for
gold, gold coin, or gold certificates, and to contract for
loans of gold coin or bullion, giving therefor, when
ecessary, acceptable security, including the hypothecation
 of United States bonds or other securities which
Federal reserve banks are authorized to hold;
(b) To buy and sell, at home or abroad, bonds and notes
of the United States,® and bills, notes, revenue bonds, and
Warrants with a maturity from date of purchase of not
®Xceeding six months, issued in anticipation of the collection
 of taxes or in anticipation of the receipt of assured
revenues by any State, county, district, political subdivi-S1on,
 or municipality in the continental United States, including
 irrigation, drainage and reclamation districts,
such purchases to be made in accordance with rules and
*egulations prescribed by the Federal Reserve Board;
(¢) To purchase from member banks and to sell, with
Or without its indorsement, bills of exchange arising out
of commercial transactions, as hereinbefore defined;
(d) To establish from time to time, subject to review
and determination of the Federal Reserve Board, rates
of discount to be charged by the Federal reserve bank
for each class of paper, which shall be fixed with a view
of accommodating commerce and business;
(e) To establish accounts with other Federal reserve
banks for exchange purposes and, with the consent or
Upon the order and direction of the Federal Reserve
Board and under regulations to be prescribed by. said
board, to open and maintain accounts in foreign countries,
 appoint correspondents, and establish agencies in
Such countries wheresoever it may be deemed best for
the purpose of purchasing, selling, and collecting bills of
exchange, and to buy and sell, with or without its indorsement,
 through such corresponderits or agencies, bills of
exchange (or acceptances) arising out of actual commercial
 transactions which have not more than ninety days
to run, exclusive of days of grace, and which bear the
Signature of two or more responsible parties, and, with
the consent of the Federal Reserve Board, to open and
maintain banking accounts for such foreign correspond-!

 Or Treasury bills or certificates of indebtedness. See act approved June 17, 1929,
Appendix, p. 75.

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