THE FEDERAL RESERVE ACT (APPROVED DECEMBER 23, 1913) AS AMENDED TO MARCH 4, 1931 With an Appendix Containing various provisions of certain Acts of Congress which affect, directly or indirectly, the operations of Federal Reserve Banks and banks which are members of the Federal Reserve System COMPILED UNDER DIRECTION OF THE FEDERAL RESERVE BOARD TR 5, 3 To 5 Oo 7 cL ets 13 o> ath grt © UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON :1931 — —— mo —— ———. —— For sale by the Superintendent of Documents, Washington, D.C. - - Price 25 cents (Paper cover) B 41669 LIST OF ACTS, OR PARTS OF ACTS, PUBLISHED IN APPENDIX CLAYTON ANTITRUST ACT, approved October 15, 1914, as amended by Kern Amendment, approved May 15, 1916, as amended by acts approved May 26, 1920, March 9, 1928, and March 2, 1929 AMENDMENT TO POSTAL SAVINGS ACT, approved May 18, 1916 FARM LOAN ACT, approved July 17, 1916 FIRST LIBERTY BOND ACT, approved April 24, 1517 SECOND LIBERTY BOND ACT, approved September 24, 1917 THIRD LIBERTY BOND ACT, approved April 4, 1918 AMENDMENT OF JUNE 17, 1929, to Second Liberty Bond Act SECTION 5136, REVISED STATUTES, as amended by act of February 25, 1927 3ECTION 5137, REVISED STATUTES, as amended by act of February 25, 1927 SECTION 5138, REVISED STATUTES, as amended by acts of March 14, 1900, and February 25, 1927 SECTION 5153, REVISED STATUTES, as amended by acts of March 3. 1901 March 4, 1907, and June 25, 1930 SECTION 5155, REVISED STATUTES, as amended by act of February 25, 1927 SECTION 5172, REVISED STATUTES, as amended by act of March 3, 1919 SECTION 5190, REVISED STATUTES, as amended by act of February 25, 1927 JECTION 5200, REVISED STATUTES, as amended by act of February 25, 1927 SECTION 5202, REVISED STATUTES, ss amended by acts of December 23,1913, September 7, 1916, April 5, 1918, October 22, 1919, and February 25. 1927 SECTION 5207, REVISED STATUTES SECTION 5208, REVISED STATUTES, as amended by acts of September 26. 1918, and February 25, 1927 SECTION 5209, REVISED STATUTES, as amended by act of September 26, 1918 SECTIONS 5220 AND 5221, REVISED STATUTES APPROPRIATION ACT OF 1920, approved May 29, 1920 AGRICULTURAL CREDITS ACT OF 1923, approved March 4, 1923, as amended by acts of March 4, 1925, February 8, 1927, and June 26, 1930 ACT LIMITING THE USE OF THE WORDS ‘FEDERAL,” “UNITED STATES,” OR ‘‘RESERVE,” ETC., approved May 24, 1926 WORLD WAR ADJUSTED COMPENSATION ACT, approved May 19, 1924. as amended by acts of July 3, 1926, March 3, 1927, and March 4, 1929 REVENUE ACT OF 1926, approved February 26, 1926 TARIFF ACT OF 1930, approved June 17. 1930 Wirtsahafts- Aretiiv 4 [ Instityt © FEDERAL RESERVE ACT Approved December 23, 1913 (38 Stat., 251, Chap. 6) As amended August 4, 1914 (38 Stat., 682, Chap. 225); August 15, 1914 (38 Stat., 691, Chap. 252); March 3, 1915 (38 Stat., 958, Chap. 93); September 7, 1916 (39 Stat., 752, Chap. 461); June 21, 1917 (40 Stat., 232, Chap. 32); September 26, 1918 (40 Stat., 967, Chap. 177); March 3, 1919 (40 Stat., 1314, Chap. 101); September 17, 1919 (41 Stat., 285, Chap. 60); December 24,.1919 (41 Stat., 378, Chap. 18); April 13, 1920 (41 Stat., 550, Chap. 128); February 27, 1921 (41 Siat., 1145, Chap. 73); February 27, 1921 (41 Stat., 1146, Chap. 75); June 14, 1921 (42 Stat., 28, Chap. 22); June 3, 1922 (42 Stat., 620, Chap. 205); July 1, 1922 (42 Stat., 821, Chap. 274); February 6, 1923 (42 Stat., 1223, Chap. 60); March 4, 1923 (42 Stat , 1454, Chap. 252): February 25, 1927 (44 Stat., 1224, Chap 191); May 7, 1928 (45 Stat., 492, Chap. 507); May 29, 1928 (45 Stat., 975, Chap. 884); April 12, 1930 (46 Stat., 162, Chap. 140); April 17, 1930 (46 Stat., 170, Chap. 175); April 23, 1930 (46 Stat., 250, Chap. 207) ; June 26, 1930 (46 Stat., 814, Chap. 611); June 26, 1930 (46 Stat., 814, Chap. 612); June 26, 1930 (46 Stat., 815, Chap. 614). An Act To provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of redis- counting commercial paper, to establish a more effective super- vision of banking in the United States, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the short title of this Act shall be the “Federal Reserve Act.” Wherever the word “bank” is used in this Act, the word shall be held to include State bank, banking asso- ciation, and trust company, except where national banks or Federal reserve banks are specifically referred to. The terms “national bank’ and “national banking association” used in this Act shall be held to be synony- mous and interchangeable. The term ‘“member bank” shall be held to mean any national bank, State bank, or bank or trust company which has become a member of one of the reserve banks created by this Act. The. term “board” shall be held to mean Federal Reserve Board; the term ‘“district’’ shall be held to mean Federal reserve district; the term ‘reserve bank’ shall be held to mean Federal reserve bank. NT 0 wv s o> QO 2 = @ cg Y < w v © Cc m + QQ OO Phu hl you om ned CY) «™ oo oN oy on ry J) pry it Ag - 3 fo—- Oo hd 0 ef, 2 ~J 0 ” FEDERAL RESERVE DISTRICTS £ Ty Sec. 2. As soon as practicable, the Secretary of the Treasury, the Secretary of Agriculture and the Comp- troller of the Currency, acting as “The Reserve Bank Organization Committee,’’ shall designate not less than eight nor more than twelve cities to be known as Federal reserve cities, and shall divide the continental United Fe N oN 0M) N ‘y ry 0 = O% FEDERAL RESERVE ACT SEC 2 States, excluding Alaska, into districts, each district to contain only one of such Federal reserve cities, The de- termination of said organization committee shall not be subject to review except by the Federal Reserve Board when organized: Provided, That the districts shall be apportioned with due regard to the convenience and cus- somary course of business and shall not necessarily be coterminous with any State or States. The districts thus created may be readjusted and new districts may from time to time be created by the Federal Reserve Board, not to exceed twelve in all. Such districts shall be known as Federal reserve districts and may be desig- nated by number. A majority of the organization com- mittee shall constitute a quorum with authority to act. Said organization committee shall be authorized to smploy counsel and expert aid, to take testimony, to send for persons and papers, to administer osths, and to make such investigation as may be deemed necessary by the sald committee in determining the reserve districts and in designating the cities within such districts where such Federal reserve banks shall be severally located. The said committee shall supervise the organization in each of the cities designated of a Federal reserve bank, which shall include in its title the name of the city in which it is situated, as “Federal Reserve Bank of Chicago.” Under regulations to be prescribed by the organization committee, every national banking association in the United States is hereby required, and every eligible bank in the United States and every trust company within the District of Columbia, is hereby authorized to signify in writing, within sixty days after the passage of this Act, its acceptance of the terms and provisions hereof. When the organization committee shall have designated the cities in which Federal reserve banks are to be organized, and fixed the geographical limits of the Federal reserve districts, every national banking association within that district shall be required within thirty days after notice from the organization committee, to subscribe to the capital stock of such Federal reserve bank in a sum equal fo six per centum of the paid-up capital stock and surplus of such bank, one-sixth of the subscription to be payable on call of the organization committee or of the Federal Reserve Board, one-sixth within three months and one- sixth within six months thereafter, and the remainder of r- 4 a no SEC. 2 FEDERAL RESERVE ACT the subscription, or any part thereof, shall be subject to call when deemed necessary by the Federal Reserve Board, said payments to be in gold or gold certificates. The shareholders of every Federal reserve bank shall be held individually responsible, equally and ratably, and not one for another, for all contracts, debts, and engagements of such bank to the extent of the amount of their sub- scriptions to such stock at the par value thereof in addi- sion to the amount subscribed, whether such subscriptions have been paid up in whole or in part, under the provisions of this Act. Any national bank failing to signify its acceptance of the terms of this Act within the sixty days aforesaid, shall cease to act as a reserve agent, upon thirty days’ notice, to be given within the discretion of the said or- zanization committee or of the Federal Reserve Board. Should any national banking association in the United States now organized fail within one year after the pas- sage of this Act to become a member bank or fail to com- ply with any of the provisions of this Act applicable thereto, all of the rights, privileges, and franchises of such association granted to it under the national-bank Act, or under the provisions of this Act, shall be thereby forfeited. Any noncompliance with or violation of this Act shall, however, be determined and adjudged by any court of the United States of competent jurisdiction in a suit brought for that purpose in the district or territory in which such bank is located, under direction of the Federal Reserve Board, by the Comptroller of the Currency in bis own name before the association shall be declared dissolved. In cases of such noncompliance or violation, other than the failure to become a member bank under the provisions of this Act, every director who participated in or assented to the same shall be held liable in his per- sonal or individual capacity for all damages which said bank, its shareholders, or any other person shall have sustained in consequence of such violation. Such dissolution shall not take away or impair any remedy against such corporation, its stockholders or officers, for any liability or penalty which shall have Seen previously incurred. Should the subscriptions by banks to the stock of said Federal reserve banks or any one or more of them be, in the judgment of the organization committee, insufficient to provide the amount of capital required therefor, then FEDERAL RESERVE ACT Sec. 2 and in that event the said organization committee may, under conditions and regulations to be prescribed by it, offer to public subscription at par such an amount of stock in ssid Federal reserve banks, or any one or more of them, as said committee shall determine; subject to the same conditions as to payment and stock liability as provided for member banks. No individual, copartnership, or corporation other than a member bank of its district shall be permitted to subscribe for or to hold at any time more than $25,000 par value of stock in any Federal reserve bank. Such stock shall be known as public stock and may be trans- ferred on the books of the Federal reserve bank by the chairman of the board of directors of such bank. Should the total subscriptions by banks and the public bo the stock of said Federal reserve banks, or any one or more of them, be, in the judgment of the organization rommittee, insufficient to provide the amount of capital required therefor, then and in that event the said organi- zation committee shall allot to the United States such an amount of said stock as said committee shall determine. Said United States stock shall be paid for at par out of any money in the Treasury not otherwise appropriated, and shall be held by the Secretary of the Treasury and disposed of for the benefit of the United States in such manner, at such times, and at such price, not less than par, as the Secretary of the Treasury shall determine. Stock not held by member banks shall not be entitled to voting power. The Federal Reserve Board is hereby empowered to adopt and promulgate rules and regulations governing she transfers of said stock. No Federal reserve bank shall commence business with a subscribed capital less than $4,000,000. The organiza~ tion of reserve districts and Federal reserve cities shall not be construed as changing the present status of reserve cities and central reserve cities, except in so far as this Act changes the amount of reserves that may be carried with approved reserve agents located therein. The or- ganization committee shall have power to appoint such assistants and incur such expenses in carrying out the provisions of this Act as it shall deem necessary, and such expenses shall be payable by the Treasurer of the United States upon voucher approved by the Secretary of the Treasury, and the sum of $100,000, or so much thereof as cc. 2 1Yy Lt, ~ re é) na ar tO N0 ch | Qe 168 ic or $361 al {= tn a of 1. d h n Bres. 3, 4 FEDERAL RESERVE ACT 3 may be necessary, is hereby appropriated, out of any moneys in the Treasury not otherwise appropriated, for the payment of such expenses. BRANCH OFFICES Sec. 8. The Federal Reserve Board may permit or As amended by require any Federal reserve bank to establish branch June 21, 3617 G0 >anks within the Federal reserve district in which it is 32), ’ 2s. o = ocated or within the district of any Federal reserve 12ss,chap. 1m." >ank which may have been suspended. Such branches, subject to such rules and regulations as the Federal Re- serve Board may prescribe, shall be operated under the supervision of a board of directors to consist of not more shan seven nor less than three directors, of whom a majority of one shall be appointed by the Federal reserve bank of the district, and the remaining directors by the Federal Reserve Board. Directors of branch banks shall hold office during the pleasure of the Federal Re- serve Board. The Federal Reserve Board may at any time require any Federal Reserve Bank to discontinue any branch of such Federal Reserve Bank established under this sec- tion. The Federal Reserve Bank shall thereupon proceed io wind up the business of such branch bank, subject to such rules and regulations as the Federal Reserve Board may prescribe. FEDERAL RESERVE BANKS Lf J n {=~ 11 " x q 8 A Sec. 4. When the organization committee shall have 4s amended by >stablished Federal reserve districts as provided in sec- Jus 21, hr (40 tion two of this Act, a certificate shall be filed with the 20 Sept, %, 101% Comptroller of the Currency showing the geographical chap 177) Jeb. limits of such districts and the Federal reserve city i234, chap. 1615; lesignated in each of such districts. The Comptroller of Sa, 8, hap. the Currency shall thereupon cause to be forwarded to 3H ach national bank located in each district, and to such ther banks declared to be eligible by the organization :ommittee which may apply therefor, an application blank in form to be approved by the organization com- mittee, which blank shell contain a resolution to be adopted by the board of directors of each bank executing such application, authorizing a subscription to the capi- tal stock of the Federal reserve bank organizing in that district in accordance with the provisions of this Act, FEDERAL RESERVE ACT szc.4 When the minimum amount of capital stock prescribed by this Act for the organization of any Federal reserve bank shall have been subscribed and allotted, the organi- zation committee shall designate any five banks of those whose applications have been received, to execute a cer- sficate of organization, and thereupon the banks so des- ignated shall, under their seals, make an organization certificate which shall specifically state the name of such Federal reserve bank, the territorial extent of the district over which the operations of such Federal reserve bank are to be carried on, the city and State in which said bank is to be located, the amount of capital stock and the num- ber of shares into which the same is divided, the name and place of doing business of each bank executing such certificate, and of all banks which have subscribed to the capital stock of such Federal reserve bank and the num- her of shares subscribed by each, and the fact that the certificate is made to enable those banks executing same, and all banks which have subscribed or may thereafter subscribe to the capital stock of such Federal reserve bank, to avail themselves of the advantages of this Act. The said organization certificate shall be acknowledged before a judge of some court of record or notary public; and shall be, together with the acknowledgment thereof, authenticated by the seal of such court, or notary, trans- mitted to the Comptroller of the Currency, who shall file, record and carefully preserve the same in his office. Upon the filing of such certificate with the Comptroller of the Currency as aforesaid, the said Federal reserve bank shall become a body corporate, and as such, and in the name designated in such organization certificate. shall have power— First. To adopt and use a corporate seal. Second. To have succession after the approval of this Act until dissolved by Act of Congress or until forfeiture of franchise for violation of law. Third. To make contracts. Fourth. To sue and be sued, complain and defend, in any court of law or equity. Fifth. To appoint by its board of directors such officers and employees as are not otherwise provided for in this Act, to define their duties, require bonds of them and fix the penalty thereof, and to dismiss at pleasure such offi- cers or employees. spe. 4 hed TVe ni 086 ~ar- |es- lon ch ret nk nk m- me ich the m- the ne, ter re of ed ic; of. TQ le. [ar nk he all 1a To i TR TY IX o 1 = rc. 4 FEDERAL RESERVE ACT Sixth. To prescribe by its board of directors, by-laws 20t inconsistent with law, regulating the manner in which ts general business may be conducted, and the privileges granted to it by law may be exercised and enjoyed. Seventh. To exercise by its board of directors, or luly authorized officers or agents, all powers specifically sranted by the provisions of this Act and such incidental yowers as shall be necessary to carry on the business of sanking within the limitations prescribed by this Act. Eighth! Upon deposit with the Treasurer of the United States of any bonds of the United States in the manner provided by existing law relating to national »anks, to receive from the Comptroller of the Currency irculating notes in blank, registered and countersigned as provided by law, equal in amount to the par value of ‘he bonds so deposited, such notes to be issued under the same conditions and provisions of law as relate to the ssue of circulating notes of national banks secured by bonds of the United States bearing the circulating priv- lege, except that the issue of such notes shall not be Imited to the capital stock of such Federal reserve bank. But no Federal reserve bank shall transact any busi- ness except such as is incidental and necessarily prelimi- dary to its organization until it has been authorized by the Comptroller of the Currency to commence business inder the provisions of this Act. Every Federal reserve bank shall be conducted under she supervision and control of a board of directors. The board of directors shall perform the duties usually Appertaining to the office of directors of banking associa~ flons and all such duties as are prescribed by law. Said board shall administer the affairs of said bank fairly and impartially and without discrimination in favor of or against any member bank or banks and shall, subject to the provisions of law and the orders of the Federal Reserve Board, extend to each member bank such discounts, advancements and accommodations as may be safely and reasonably made with due regard for ‘he claims and demands of other member banks. Such board of directors shall be selected as hereinafter specified and shall consist of nine members, holding office for three years, and divided into three classes, designated as classes A, B. and C. 1 See also sec. 18, p. 44. ~~ reprfu RESERVE ACT S50. 4 Class A shall consist of three members, who shall be chosen by and be representative of the stock-holding banks. Class B shall consist of three members, who at the time of their election shall be actively engaged in their district in commerce, agriculture or some other industrial pursuit. Class C shall consist of three members who shall be designated by the Federal Reserve Board. When the necessary subscriptions to the capital stock have been obtained for the organization of any Federal reserve bank, the Federal Reserve Board shall appoint the class C directors and shall designate one of such directors as chairman of the board to be selected. Pending the designation of such chairman, the organization committee shall exercise the powers and duties appertaining to the office of chairman in the organization of such Federal reserve bank. No Senator or Representative in Congress shall be a member of the Federal Reserve Board or an officer or a director of a Federal reserve bank. No director of class B shall be an officer, director, or employee of any bank. No director of class C shall be an officer, director, smployee, or stockholder of any bank. Directors of class A and class B shall be chosen in the following manner: The Federal Reserve Board shall classify the member banks of the district into three general groups or divi- sions, designating each group by number. Each group shall consist as nearly as may be of banks of similar capitalization. Each member bank shall be permitted to nominate to the chairman of the board of directors of the Federal reserve bank of the district one candidate for director of class A and one candidate for director of class B. The candidates so nominated shall be listed by the chairman, indicating by whom nominated, and a copy of said list shall, within fifteen days after its completion, be furnished by the chairman to each member bank. Each member bank by a resolution of the board or by an amendment to its by-laws shall authorize its president, cashier, or some other officer to cast the vote of the mem- ber bank in the elections of class A and class B directors. Within fifteen days after receipt of the list of candi- dates the duly authorized officer of a member bank shall 3EC. 4 he ing me rich 11t. he the nal rve ass a9 the tee ‘he ral » 6 fl "ne Te. ha ar 7] ID ir xd nf yr iQ 18 +f 8 h n . SEC. 4 FEDERAL RESER{E ACT certify to the chairmen his first, second, and other choices for director of class A and class B, respectively, upon a preferential bellot upon a form furnished by the chairman of the board of directors of the Federal reserve bank of the district. Each such officer shall make a cross opposite the name of the first, second, and other choices for a director of class A and for a director of class B, but shall not vote more than one choice for any one candidate. No officer or director of a member bank shall be eligible to serve as a class A director unless nominated and elected by banks which are members of the same group as the member bank of which he is an officer or director. Any person who is an officer or director of more than one member bank shall not be eligible for nomination as a class A director except by banks in the same group as the bank having the largest aggregate resources of any of those of which such person is an officer or director. Any candidate having a majority of all votes cast in the column of first choice shall be declared elected. If no candidate have a majority of all the votes in the first column, then there shall be added together the votes cast by the electors for such candidates in the second column and the votes cast for the several candidates in the first column. The candidate then having a majority of the electors voting and the highest number of combined votes shall be declared elected. If no candidate have a majority of electors voting and the highest number of votes when the first and second choices shall have been added, then the votes cast in the third column for other choices shall be added together in like manner, and the candidate then having the highest number of votes shall be declared elected. An immediate report of election shall be declared. Class C directors shall be appointed by the Federal Reserve Board. They shall have been for at least two years residents of the district for which they are appointed, one of whom shall be designated by said board as chair- man of the board of directors of the Federal reserve bank and as “Federal reserve agent.” He shall be a person of tested banking experience, and in addition to his duties as chairman of the board of directors of the Federal reserve bank he shall be required to maintain, under regulations to be established by the Federal Reserve Board, a local office of said board on the premises of the Federal reserve bank, He shall make regular reports to n 10 FEDERAL RESERVE ACT Sec. 4 the Federal Reserve Board and shall act as its official representative for the performance of the functions con- ferred upon it by this act. He shall receive an annual compensation to be fixed by the Federal Reserve Board and paid monthly by the Federal reserve bank to which te is designated. One of the directors of class C shall de appointed by the Federal Reserve Board as deputy chairman to exercise the powers of the chairman of the board when necessary. In case of the absence of the chairman and deputy chairman, the third class C director shall preside at meetings of the board. Subject to the approval of the Federal Reserve Board the Federal reserve agent shall appoint one or more assistants. Such assistants, who shall be persons of tested banking experience, shall assist the Federal reserve agent in the performance of his duties and shall also have power to act in his name and stead during his absence or lisability. The Federal Reserve Board shall require such bonds of the assistant Federal reserve agents as it may deem necessary for the protection of the United States. Assistants to the Federal reserve agent shall receive an annual compensation, to be fixed and paid in the same manner as that of the Federal reserve agent. Directors of Federal reserve banks shall receive, in addition to any compensation otherwise provided, a reasonable allowance for necessary expenses in attending meetings of their respective boards, which amount shall be paid by the respective Federal reserve banks. Any compensation that may be provided by boards of direc- tors of Federal reserve banks for directors, officers or smployees shall be subject to the approval of the Federal Reserve Board. The Reserve Bank Organization Committee may, in organizing Federal reserve banks, call such meetings of bank directors in the several districts as may be necessary Yo carry out the purposes of this Act, and may exercise ihe functions herein conferred upon the chairman of the board of directors of each Federal reserve bank pending the complete organization of such bank. At the first meeting of the full board of directors of each Federal reserve bank, it shall be the duty of the directors of classes A, B and C, respectively, to designate one of the members of each class whose term of office shall expire in one year from the first of January nearest to date of 4 1al T= 1al rd ch a1 ty he he oT SEC. § FEDERAL RESERVE ACT such meeting, one whose term of office shall expire at the end of two years from said date, and one whose term of office shall expire at the end of three years from said date. Thereafter every director of a Federal reserve bank chosen as hereinbefore provided shall hold office for a term of three years. Vacancies that may occur in the several classes of directors of Federal reserve banks may be filled in the manner provided for the original selection of such directors, such appointees to hold office for the unexpired terms of their predecessors. STOCK ISSUES; INCREASE AND DECREASE OF CAPITAL 1 re of ve Je 3T re tL sd Jl n n >] 5 1 7 Ye Tr n f y oO » A <3 0 Sec. 5. The capital stock of each Federal reserve bank shall be divided into shares of $100 each. The out- standing capital stock shall be increased from time to time as member banks increase their capital stock and surplus or as additional banks become members, and may be decreased as member banks reduce their capital stock or surplus or cease to be members. Shares of the capital stock of Federal reserve banks owned by member banks shall not be transferred or hypothecated. When a member bank increases its capital stock or surplus, it shall thereupon subscribe for an additional amount of capital stock of the Federal reserve bank of its dis- trict equal to six per centum of the said increase, one- half of said subscription to be paid in the manner herein- before provided for original subscription, and one-half subject to call of the Federal Reserve Board. A bank applying for stock in a Federal reserve bank at any time after the organization thereof must subscribe for an amount of the capital stock of the Federal reserve bank equal to six per centum of the paid-up capital stock and surplus of seid applicant bank, paying therefor its par value plus one-half of one per centum a month from the period of the last dividend. When the capital stock of any Federal reserve bank shall have been in- creased either on account of the increase of capital stock of member banks or on account of the increase in the number of member banks, the board of directors shall cause to be executed a certificate to the Comptroller of the Currency showing the increase in capital stock, the amount paid in, and by whom paid. When a member bank reduces its capital stock it shall surrender a pro- portionate amount of its holdings in the capital of said te sy FEDERAL RESERVE ACT Bec. ¢ Federal reserve bank, and when a member bank volun- tarily liquidates it shall surrender all of its holdings of the capital stock of said Federal reserve bank and be released from its stock subscription not previously called. In either case the shares surrendered shall be canceled and the member bank shall receive in payment therefor, under regulations to be prescribed by the Federal Reserve Board, a sum equal to its cash-paid subscriptions on the shares surrendered and one-half of one per centum a month from the period of the last dividend, not to exceed the book value thereof, less any liability of such member bank to the Federal reserve bank. I" pondedby Sec. 6. If any member bank shall be declared insolvent Lam 45 and a receiver appointed therefor, the stock held by it in 207). said Federal reserve bank shall be canceled, without impairment of its liability, and all cash-paid subscrip- tions on said stock, with one-half of 1 per centum per month from the period of last dividend, if earned, not to exceed the book value thereof, shall be first applied to all debts of the insolvent member bank to the Federal Te- serve bank, and the balance, if any, shall be paid to the receiver of the insolvent bank. If any national bank which has not gone into liquida- tion as provided in section 5220 of the Revised Statutes (United States Code, title 12, section 181) and for which a receiver has not already been appointed for other lawful cause, shall discontinue its banking operations for a period of sixty days the Comptroller of the Currency may, if he deems it advisable, appoint a receiver for such bank. The stock held by the said national bank in the Federal reserve bank of its district shall thereupon be canceled and said national bank shall receive in payment therefor, under regulations to be prescribed by the Federal Reserve Board, a sum equal to its cash-paid subscriptions on the shares canceled and one-half of 1 per centum a month from the period of the last dividend, if earned, not to exceed the book value thereof, less any liability of such national bank to the Federal reserve bank. Whenever the capital stock of a Federal reserve bank is reduced either on account of a reduction in capital stock of any member bank or of the liquidation or insol- vency of such bank or on account of the appointment of a receiver for a national bank following discontinuance of re. 6 iM = of he sly he nt he 1d Wf gf; LS TO nt In 14 D= ny 50 Nn A fa ’S n | a SECs. 7, § FEDERAL RESERVE ACT 1° its banking operations as provided in this section, the board of directors shall cause to be executed a certificate to the Comptroller of the Currency showing such redue- tion of capital stock and the amount repaid to such bank. DIVISION OF EARNINGS Sec. 7. After all necessary expenses of a Federal re- Asamenadby serve bank have been paid or provided for, the stock- rn Lh holders shall be entitled to receive an annual dividend 100. of six per centum on the paid-in capital stock, which dividend shall be cumulative. After the aforesaid divi- dend claims have been fully met, the net earnings shall be paid to the United States as a franchise tax except that the whole of such net earnings, including those for the year ending December thirty-first, nineteen hundred and eighteen, shall be paid into a surplus fund until it shall amount to one hundred per centum of the subscribed capital stock of such bank, and that thereafter ten per centum of such net earnings shall be paid into the surplus. The net earnings derived by the United States from Federal reserve banks shall, in the discretion of the Secretary, be used to supplement the gold reserve held against outstanding United States notes, or shall be applied to the reduction of the outstanding bonded indebtedness of the United States under regulations to be prescribed by the Secretary of the Treasury. Should a Federal reserve bank be dissolved or go into liquidation, any surplus remaining, after the payment of all debts, dividend requirements as hereinbefore provided, and the par value of the stock, shall be paid to and become the property of the United States and shall be similarly applied. Federal reserve banks, including the capital stock and surplus therein, and the income derived therefrom shall be exempt from Federal, State, and local taxation, except taxes upon real estate. Sec. 8. Section fifty-one hundred and fifty-four, United States Revised Statutes, is hereby amended to read as follows: Any bank incorporated by special law of any State or of the United States or organized under the general laws of any State or of the United States and having an unimpaired capital sufficient to entitle it to become a national banking association under the provisions of the | 4 FEDERAL RESERVE ACT BEC. 9 existing laws may, by the vote of the shareholders owning not less than fifty-one per centum of the capital stock of such bank or banking association, with the approval of the Comptroller of the Currency be converted into a national banking association, with any name approved by the Comptroller of the Currency: Provided, however, That said conversion shall not be in *ontravention of the State law. In such case the articles of association and organization certificate may be exe- cuted by a majority of the directors of the bank or bank- ing institution, and the certificate shall declare that she owners of fifty-one per centum of the capital stock have authorized the directors to make such certificate and to change or convert the bank or banking institution into a national association. A majority of the directors, after executing the articles of association and the organi- zation certificate, shall have power to execute all other papers and to do whatever may be required to make its organization perfect and complete as a national associa- sion. The shares of any such bank may continue to be for the same amount each as they were before the con- version, and the directors may continue to be directors of the association until others are elected or appointed in accordance with the provisions of the statutes of the United States. When the Comptroller has given to such bank or banking association a certificate that the provisions of this Act have been complied with, such bank or banking association, and all its stockholders, officers, and employees, shall have the same powers and privileges, and shall be subject to the same duties, liabilities, and regulations, in all respects, as shall have been prescribed by the Federal Reserve Act and by the national banking act for associations originally organized as national banking associations. STATE BANKS AS MEMBERS sis apvret ed i Sec. 9. Any bank magne) by Special Jaw of may Sat, 252, chap, State, or organized under t e riers 2 of any ate CAE Jui, or of the United States, desiring to ecome a men! r bees Stat, of the Federal Reserve System, may make applicatio Feb, 25, 1627 (44 to the Federal Reserve Board, under such rules and 55 aay 7 1 regulations as it may prescribe, for the right to subscribe chap. 507); Apr. 80 the stock of the Federal reserve bank organized within 7 1930 (6 Stat. the district in which the applying bank is located. Such c.9 1 nt a .d in aS LN a 1t IK e {] 1m 3 3EC. 9 FEDERAL RESERVE ACT t5 application shall be for the same amount of stock thatimw, chap. 175): the applying bank would be required to subscribe to as Jae national bank. The Federal Reserve Board, subject He Sint. 514 fo the provisions of this Act and to such conditions as ™™ B18. it may prescribe pursuant thereto may permit the apply- er bank to become a stockholder of such Federal reserve ank. Any such State bank which, at the date of the approval of this Act, has established and is operating a branch or branches in conformity with the State law, may retain and operate the same while remaining or upon becoming a stockholder of such Federal reserve bank; but no such State bank may retain or acquire stock in a Federal re- serve bank except upon relinquishment of any branch or branches established after the date of the approval of this Act beyond the limits of the city, town, or village in which the parent bank is situated. In acting upon such application the Federal Reserve Board shall consider the financial condition of the apply- Ing bank, the general character of its management, and whether or not the corporate powers exercised are con- Sstent with the purposes of this act. Whenever the Federal Reserve Board shall permit the applying bank to become a stockholder in the Federal reserve bank of the district its stock subscription shall be payable on call of the Federal Reserve Board, and stock issued to it shall be held subject to the provisions of this act. All banks admitted to membership under authority of this section shall be required to comply with the reserve and capital requirements of this act and to conform to those provisions of law imposed on national banks which prohibit such banks from lending on or purchasing their own stock, which relate to the withdrawal or impairment of their capital stock, and which relates to the payment of unearned dividends. Such banks and the officers, agents, and employees thereof shall also be subject to the provisions of and to the penalties prescribed by section fifty-two hundred and nine of the Revised Statutes,” and shall be required to make reports of condition and of the payment of dividends to the Federal reserve bank of which they become a member. Not less than three of 1 For the text of sec. 5200, Revised Statutes, see Appendix, p. 87. 416392°—31———2 16 FEDERAL RESERVE ACT Sec. such reports shall be made annually on call of the Federal reserve bank on dates to be fixed by the Federal Reserve Board. Failure to make such reports within ten days after the date they are called for shall subject the offend- ing bank to a penalty of $100 a day for each day that it [ails to transmit such report; such penalty to be collected by the Federal reserve bank by suit or otherwise. As a condition of membership such banks shall likewise be subject to examinations made by direction of the Federal Reserve Board or of the Federal reserve bank by sxaminers selected or approved by the Federal Reserve Board. Whenever the directors of the Federal reserve bank shall approve the examinations made by the State author- ities, such examinations and the reports thereof may be accepted in lieu of examinations made by examiners selected or approved by the Federal Reserve Board: Pro- vided, however, That when it deems it necessary the board may order special examinations by examiners of its own selection and shall in all cases approve the form of the report. The expenses of all examinations, other than those made by State authorities, may, in the discretion of the Federal Reserve Board, be assessed against the banks examined and, when so assessed, shall be paid by the banks examined. Copies of the reports of such exam- inations may, in the discretion of the Federal Reserve Board, be furnished to the State authorities having super- vision of such banks, to officers, directors, or receivers of such banks, and to any other proper persons. 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 made pursuant thereto, or has ceased to exercise banking functions without a receiver or liquidat- ing agent having been appointed therefor, it shall be within the power of the board after hearing to require such bank 0 surrender its stock in the Federal reserve bank and to forfeit all rights and privileges of membership. The Fed- ara] Reserve Board may restore membership upon due proof of compliance with the conditions imposed by this section. Any State bank or trust company desiring to withdraw from membership in a Federal reserve bank may do so, after six months’ written notice shall have been filed with c.9 ral ve YS d- it ed 1S he hy ve nk J he irs (Y= rd FT he Se he KS ne n- ve 1 re ve ne al tO 1 t= 1n 1k tO d- 10 18 AW 0, ‘h JC, 9 FEDERAL RESERVE ACT the Federal Reserve Board, upon the surrender and can- cellation of all of its holdings of capital stock in the Fed- ’ral reserve bank: Provided, That the Federal Reserve Board, in its discretion and subject to such conditions as it may prescribe, may waive such six months’ notice in indi- vidual cases and may permit any such State bank or trust company to withdraw from membership in a Federal re- serve bank prior to the expiration of six months from the late of the written notice of its intention to withdraw: Provided, however, That no Federal reserve bank shall, 3xcept under express authority of the Federal Reserve Board, cancel within the same calendar year more than iwenty-five per centum of its capital stock for the purpose of effecting voluntary withdrawals during that year. All such applications shall be dealt with in the order in which they are filed with the board. Whenever a member bank shall surrender its stock holdings in a Federal reserve bank, or shall be ordered to do so by the Federal Reserve Board, inder authority of law, all of its rights and privileges as a member bank shall thereupon cease and determine, and after due provision has been made for any indebtedness due or to become due to the Federal reserve bank it shall be entitled to a refund of its cash paid subscription with Interest at the rate of one-half of one per centum per month from date of last dividend, if earned, the amount refunded in no event to exceed the book value of the stock at that time, and shall likewise be entitled to repayment of deposits and of any other balance due from the Federal feserve bank. No applying bank shall be admitted to membership in 2 Federal reserve bank unless (a) it possesses a paid-up unimpaired capital sufficient to entitle it to become a national banking association in the place where it is situ- ated under the provisions of the National Bank Act, or (b) it possesses a paid-up, unimpaired capital of at least 850 per centum of the amount sufficient to entitle it to become a national banking association in the place where it is situated under the provisions of the National Bank Act and, under penalty of loss of membership complies with rules and regulations ‘which the Federal Reserve Board shall prescribe fixing the time within which and the method by which the unimpaired capital of such bank shall be increased ‘out-of net income to equal the capital which would have been required if such bank had 17 kh FEDERAL RESERVE ACT sec. 9 been admitted to membership under the provisions of clause (a) of this paragraph: Provided, That every such rule or regulation shall require the applying bank to set aside annually not less than 20 per centum of its net in- come of the preceding year as a fund exclusively appli- sable to such capital increase. Banks becoming members of the Federal Reserve Sys- tem under authority of this section shall be subject to the provisions of this section and to those of this act which relate specifically to member banks, but shall not be subject to examination under the provisions of the first two paragraphs of section fifty-two hundred and forty of the Revised Statutes as amended by section twenty-one of this act.> Subject to the provisions of this act and to the regulations of the board made pursuant thereto, any bank becoming a member of the Federal Reserve System shall retain its full charter and statutory rights as a State bank or trust company, and may con- tinue to exercise all corporate powers granted it by the State in which it was created, and shall be entitled to all privileges of member banks: Provided, however, That no Federal reserve bank shall be permitted to discount for any State bank or trust company notes, drafts, or bills of exchange of any one borrower who is liable for borrowed money to such State bank or trust company in an amount sreater than that which could be borrowed lawfully from such State bank or trust company were it a national banking association. The Federal reserve bank, as a condition of the discount of notes, drafts, and bills of exchange for such State bank or trust company, shall require a certificate or guaranty to the effect that the borrower is not liable to such bank in excess of the amount provided by this section, and will not be per- mitted to become liable in excess of this amount while such notes, drafts, or bills of exchange are under discount with the Federal reserve bank, It shall be unlawful for any officer, clerk, or agent of any bank admitted to membership under authority of this section to certify any check drawn upon such bank unless the person or company drawing the check has on deposit therewith at the time such check is certified an amount of money equal to the amount specified in such check. Any check so certified by duly authorized officers ¥ Amending sec. 21 of this act. ac. 8 of cen set n- 31- vs- EO ach 0b ‘he nd Lon his ant ral ry MM - ‘he all no OT of ‘ed mt IM 18] a nf all he ‘he AT 1le nt of of nk on. An ch ATS SEC. 10 FEDERAL RESERVE ACT 19 shall be a good and valid obligation against such bank, but the act of any such officer, clerk, or agent in violation of this section may subject such bank to a forfeiture of its membership in the Federal Reserve System upon aearing by the Federal Reserve Board.* | All banks or trust companies incorporated by special law or organized under the general laws of any State, which are members of the Federal reserve system, when designated for that purpose by the Secretary of the Treasury, shall be depositaries of public money, under such regulations as may be prescribed by the Secretary; and they may also be employed as financial agents of the Government; and they shall perform all such reasonable duties, as depositaries of public money and financial agents of the Government, as may be required of them. The Secretary of the Treasury shall require of the banks and trust companies thus designated satisfactory secur- ity, by the deposit of United States bonds or otherwise, for the safe keeping and prompt payment of the public money deposited with them and for the faithful perform- ance of their duties as financial agents of the Government. FEDERAL RESERVE BOARD See. 10. A Federal Reserve Board is hereby created Assmendedby which shall consist of eight members, including the Mar. 3.5008 Go Secretary of the Treasury and the Comptroller of the SOD: rie as 1685 Currency, who shall be members ex officio, and Six chap. 25; rep. members appointed by the President of the United Shot hey States, by and with the advice and consent of the Senate. In selecting the six appointive members of the Federal Reserve Board, not more than one of whom shall be selected from any one Federal reserve district, the Presi- dent shall have due regard to a fair representation of the financial, agricultural, industrial and commercial inter- ests, and geographical divisions of the country. The six members of the Federal Reserve Board appointed by the President and confirmed as aforesaid shall devote their entire time to the business of the Federal Reserve Board and shall each receive an annual salary of $12,000, payable monthly, together with actual necessary traveling sxpenses, and the Comptroller of the Currency, as ex SfRicio member of the Federal Reserve Board, shall, in ——————————— 1 See sec. 5208, Revised Statutes, as amended (Appendix, p. 86), for penalty for false ertification of checks by officers of Federal reserve banks and national banks, Mn FEDERAL RESERVE ACT src. 10 addition to the salary now paid him as Comptroller of the Currency, receive the sum of $7,000 annually for his services as a member of said board. The Secretary 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. The appointive members of the Federal Reserve Board 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, except that this restriction shall not apply to a member who has served the full term for which he was appointed. Of the six members thus appointed by the President one shall be designated by the President to serve for two, one for four, one for six, one for eight and the balance of the members for ten years, and thereafter each member so appointed shall serve for a term of ten years, unless sooner removed for cause by the President. Of the sixpersons thus appointed, one shall be designated by the President as governor and one as vice governor of the Federal Reserve Board. The governor of the Federal Reserve Board, subject to its supervision, shall be the active sxecutive officer. The Secretary of the Treasury may assign offices in the Department of the Treasury for the use of the Federal Reserve Board. Each member of the Federal Reserve 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 reserve banks, in propor- tion to their capital stock and surplus, an assessment sufficient to pay its estimated expenses and the salaries of its members and employees for the half year succeed- ing 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 Sec- retary of the Treasury shall be ex officio chairman of the Federal Reserve Board. No member of the Federal Re- serve Board shall be an officer or director of any bank, irc. 101 the: his sller. hey any nk. yard and on, this ved six; be’ for | rhe ! + a0 mer sons ‘ent aral rve rive nay the the fter of avy or- ent ries od- ny 18l] . a8 ved ec- the Re- nk, SEC. 10 FEDERAL RESERVE ACT banking institution, trust company, or Federal reserve bank nor hold stock in any bank, banking institution, or trust company; and before entering upon his duties as a member of the Federal Reserve Board he shall certify ander oath to the Secretary of the Treasury that he has complied with this requirement. Whenever a vacancy shall occur, other than by expiration of term, among the six members of the Federal Reserve Board appointed by the President, as above provided, a successor shall be appointed by the President, with the advice and consent of the Senate, to fill such vacancy, and when appointed he shall hold office for the unexpired term of the member whose place he is selected to fill. The President shall have power to fill all vacancies that may happen on the Federal Reserve Board during the recess of the Senate by granting commissions which shall expire with the next session of the Senate. Nothing in this Act contained shall be construed as taking away any powers heretofore vested by law in the Secretary of the Treasury which relate to the supervision, management, and control of the Treasury Department and bureaus under such department, and wherever any power vested by this Act in the Federal Reserve Board or the Federal reserve agent appears to conflict with the powers of the Secretary of the Treasury, such powers shall be exercised subject to the supervision and control of the 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 information of the Congress. Section three hundred and twenty-four of the Revised Statutes of the United States shall be amended so as to read as follows: “Spc. 324. There shall be in the Department of the Treasury a bureau charged with the execution of all laws 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 shall perform his duties under the general directions of the Secretary of the Treasury. 21 ~~ “le FEDERAL RESERVE ACT Src. 11 “No Federal reserve bank shall have authority here- after to enter into any contract or contracts for the erec- tion of any branch bank building of any kind or char- acter, or to authorize the erection of any such building, if the cost of the building proper, exclusive of the cost of the vaults, permanent equipment, furnishings, and fix- tures, is in excess of $250,000: Provided, That nothing herein shall apply to any building under construction prior to June 3, 1922.” asamendedby Sec. 11. The Federal Reserve Board shall be suthor- cts approved . Sept. 7 Aue @ 1zed and empowered: } 101); Sop 2 (a) To examine at its discretion the accounts, books hap, 17; Mar and affairs of each Federal reserve bank and of each 1314, chap. 1015: member bank and to require such statements and reports Peb. 27, 1021 (41 . : 3iat, 14g, chap. as it may deem necessary. The said board shall publish do stat,” sis, once each week a statement showing the condition of I each Federal reserve bank and a consolidated statement for all Federal reserve banks. Such statements shall show in detail the assets and liabilities of the Federal reserve banks, single and combined, and shall furnish full information regarding the character of the money held as reserve and the amount, nature and maturities of the paper and other investments owned or held by Federal reserve banks. (b) To permit, or, on the affirmative vote of at least five members of the Reserve Board to require Federal reserve banks to rediscount the discounted paper of other Federal reserve banks at rates of interest to be fixed by the Federal Reserve Board. (c) To suspend for a period not exceeding thirty days, and from time to time to renew such suspension for pe- riods not exceeding fifteen days, any reserve requirements specified in this Act: Provided, That it shall establish a graduated tax upon the amounts by which the reserve requirements of this Act may be permitted to fall below the level hereinafter specified: And provided further, That when the gold reserve held against Federal reserve notes falls below forty per centum, the Federal Reserve Board shall establish a graduated tax of not more than one per sentum per annum upon such deficiency until the reserves fall to thirty-two and one-half per centum, and when said reserve falls below thirty-two and one-half per centum, a tax at the rate increasingly of not less than one and one-half per centum per annum upon each two and one- NN — Ne n [*= 2s +f Co o - n qq n 0S h 1 1 1 ud 1 3 SEC. 11 FEDERAL RESERVE ACT half per centum or fraction thereof that such reserve falls below thirty-two and one-half per centum. The tax shall be paid by the reserve bank, but the reserve bank shall add an amount equal to said tax to the rates of nterest and discount fixed by the Federal Reserve Board. (d) To supervise and regulate through the bureau ander the charge of the Comptroller of the Currency the issue and retirement of Federal reserve notes, and to prescribe rules and regulations under which such notes may be delivered by the Comptroller to the Federal reserve agents applying therefor. (6) To add to the number of cities classified as reserve and central reserve cities under existing law in which national banking associations are subject to the reserve requirements set forth in section twenty of this Act; or to reclassify existing reserve and central reserve cities or ‘0 terminate their designation as such. (f) To suspend or remove any officer or director of any Federal reserve bank, the cause of such removal to be lorthwith communicated in writing by the Federal Re- serve Board to the removed officer or director and to said bank, (8) To require the writing off of doubtful or worthless assets upon the books and balance sheets of Federal re- serve banks. _(h) To suspend, for the violation of any of the provi- sions of this Act, the operations of any Federal reserve bank, to take possession thereof, administer the same dur- Ing the period of suspension, and, when deemed advisable, to liquidate or reorganize such bank. (i) To require bonds of Federal reserve agents, to make tegulations for the safeguarding of all collateral, bonds, Federal reserve notes, money or property of any kind leposited in the hands of such agents, and said board shall perform the duties, functions, or services specified in this Act, and make all rules and regulations necessary :0 enable said board effectively to perform the same. (j) To exercise general supervision over said Federal reserve banks. (k) To grant by special permit to national banks applying therefor, when not in contravention of State or local law, the right to act as trustee, executor, adminis- ‘rator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics, or in 23 24 FEDERAL RESERVE ACT SEc. 1 any other fiduciary capacity in which State banks, trust companies, or other corporations which come into com- petition with national banks are permitted to act under the laws of the State in which the national bank is located. Whenever the laws of such State authorize or permit the exercise of any or all of the foregoing powers by State banks, trust companies, or other corporations which compete with national banks, the granting to and the exercise of such powers by national banks shall not be deemed to be in contravention of State or local law within the meaning of this Act. National banks exercising any or all of the powers enu- merated in this subsection shall segregate all assets held in any fiduciary capacity from the general assets of the bank and shall keep a separate set of books and records showing in proper detail all transactions engaged in under authority of this subsection. Such books and records shall be open to inspection by the State authorities to the same extent as the books and records of corporations organized under State law which exercise fiduciary pow- ers, but nothing in this Act shall be construed as author- izing the State authorities to examine the books, records, and assets of the national bank which are not held in trust under authority of this subsection. No national bank shall receive in its trust department deposits of current funds subject to check or the deposit of checks, drafts, bills of exchange, or other items for col- tection or exchange purposes. Funds deposited or held in trust by the bank awaiting investment shall be carried in a separate account and shall not be used by the bank in the conduct of its business unless it shall first set aside in the trust department United States bonds or other securities approved by the Federal Reserve Board. In the event of the failure of such bank the owners of the funds held in trust for investment shall have a lien on the bonds or other securities so set apart in addition to their claim against the estate of the bank. Whenever the laws of a State require corporations act- ing in a fiduciary capacity, to deposit securities with the State authorities for the protection of private or court trusts, national banks so acting shall be required to make similar deposits and securities so deposited shall be held for the protection of private or court trusts, as provided by the State law, o 11 in = der ad. nit gfe ich the be OW 111= ald “he ~ds ler rds ‘he ms {XT VP 1s, n nt 11t = 1d ad 1c Ja ar fF aT a) fm 1a rt {@ Id qd Sec. 11 FEDERAL RESERVE ACT National banks in such cases shall not be required to 2xecute the bond usually required of individuals if State corporations under similar circumstances are exempt from this requirement. National banks shall have power to execute such bond when so required by the laws of the State. In any case in which the laws of a State require that a corporation acting as trustee, executor, administrator, or 0 any capacity specified in this section, shall take an dath or make an affidavit, the president, vice president, cashier, or trust officer of such national bank may take the necessary oath or execute the necessary affidavit. _ It shall be unlawful for any national banking associa- fon to lend any officer, director, or employee any funds held in trust under the powers conferred by this section. Any officer, director, or employee making such loan, or to whom such loan is made, may be fined not more than $5,000, or imprisoned not more than five years, or may be both fined and imprisoned, in the discretion of the ~ourt,. In passing upon applications for permission to exercise the powers enumerated in this subsection, the Federal Reserve Board may take into consideration the amount of capital and surplus of the applying bank, whether or not such capital and surplus is sufficient under the cir- *umstances of the case, the needs of the community to be served, and any other facts and circumstances that seem to it proper, and may grant or refuse the application accordingly: Provided, That no permit shall be issued to Any national banking association having a capital and surplus less than the capital and surplus required by State law of State banks, trust companies, and corpora- tions exercising such powers. Any national banking association desiring to surrender its right to exercise the powers granted under this sub- section, in order to relieve itself from the necessity of com- plying with the requirements of this subsection, or to have returned to it any securities which it may have deposited with the State authorities for the protection of private or court trusts, or for any other purpose, may file with the Federal Reserve Board a certified copy of a reso- lution of its board of directors signifying such desire. Upon receipt of such a resolution, the Federal Reserve Board, after satisfying itself that such bank has been 25 26 FEDERAL RESERVE ACT sec. 11 relieved in accordance with State law of all duties as trustee, executor, administrator, registrar of stocks and bonds, guardian of estates, assignee, receiver, committee of estates of lunatics or other fiduciary, under court, private, or other appointments previously accepted under authority of this subsection, may, in its discretion, issue to such bank a certificate certifying that such bank is no longer authorized to exercise the powers granted by this subsection, Upon the issuance of such a certificate by the Federal Reserve Board, such bank (1) shall no longer be subject to the provisions of this subsection or the regu- lations of the Federal Reserve Board made pursuant thereto, (2) shall be entitled to have returned to it any securities which it may have deposited with the State authorities for the protection of private or court trusts, and (3) shall not exercise thereafter any of the powers sranted by this subsection without first applying for and >btaining a new permit to exercise such powers pursuant to the provisions of this subsection. The Federal Reserve Board is authorized and empowered to promulgate such regulations as it may deem necessary to enforce com- pliance with the provisions of this subsection and the proper exercise of the powers granted therein. (I) To employ such attorneys, experts, assistants, clerks, or other employees as may be deemed necessary to conduct the business of the board. All salaries and fees shall be fixed in advance by said board and shall be paid in the same manner as the salaries of the members of said board. All such attorneys, experts, assistants, clerks, and other employees shall be appointed without regard to the provisions of the Act of January sixteenth, eighteen hundred and eighty-three (volume twenty-two, United States Statutes at Large, page four hundred and three), and amendments thereto, or any rule or regula- tion made in pursuance thereof: Provided, That nothing herein shall prevent the President from placing said employees in the classified service. (m) Upon the affirmative vote of not less than five of its members, the Federal Reserve Board shall have power to permit Federal reserve banks to discount for any member bank notes, drafts, or bills of exchange bearing the signature or endorsement of any one borrower in excess of the amount permitted by section 9 and sec- tion 13 of this Act, but in no case to exceed 20 per centum Al nS nd 00 rt, {er 1168 no his by rer ru- nt ny ate ts, ar8 nd nt ve ch I= ho ts, Ty ad he ors ts, ut th. vO, nd [a- ng ud of Ve for 126 ver B= 1m EC. 12 FEDERAL RESERVE ACT of the member bank’s capital and surplus: Provided, however, That all such notes, drafts, or bills of exchange discounted for any member bank in excess of the amount permitted under such sections shall be secured by not ess than a like face amount of bonds or notes of the United States issued since April 24, 1917, for which the dorrower shall in good faith prior to January 1, 1921, have paid or agreed to pay not less than the full face amount thereof, or certificates of indebtedness of the United States: Provided further, That the provisions of “his subsection (m) shall not be operative after October 31, 1921, FEDERAL ADVISORY COUNCIL Sec. 12, There is hereby created a Federal Advisory Council, which shall consist of as many members as there are Federal reserve districts. Each Federal reserve bank by its board of directors shall annually select from its own Federal reserve district one member of said council, who shall receive such compensation and allowances as may be fixed by his board of directors subject to the approval of the Federal Reserve Board. The meetings of said advisory council shall be held at Washington, District of Columbia, at least four times each year, and oftener if called by the Federal Reserve Board. The council may in addition to the meetings above provided for hold such other meetings in Washington, District of Columbia, or elsewhere, as it may deem necessary, may select its own officers and adopt its own methods of pro- cedure, and a majority of its members shall constitute a quorum for the transaction of business. Vacancies in the council shall be filled by the respective reserve banks, and members selected to fill vacancies shall serve for the mexpired term. ~The Federal Advisory Council shall have power, by itself or through its officers, (1) to confer directly with the Federal Reserve Board on general business conditions; (2) to make oral or written representations concerning matters within the jurisdiction of said board; (3) to call for information and to make recommendations in regard to discount rates, rediscount business, note issues, reserve *onditions in the various districts, the purchase and sale of gold or securities by reserve banks, open-market operations by said banks, and the general affairs of the reserve banking system. 27 38 FEDERAL RESERVE ACT Qc. If POWERS OF FEDERAL RESERVE BANKS As amended by us approved Sec. 13. Any Federal reserve bank may receive from nal any of its member banks, and from the United States, 3 Sat” 732 deposits of current funds in lawful money, national-bank 2, 1617 (4S Stat. notes, Federal reserve notes, or checks, and drafts, pay- Wo 4 i) = able upon presentation, and also, for collection, maturing 252) Maw ta, 008 notes and bills; or, solely for purposes of exchange or of a Apr collection, may receive from other Federal reserve banks \62, chap. 140). * deposits of current funds in lawful money, national-bank notes, or checks upon other Federal reserve banks, and checks and drafts, payable upon presentation within its district, and maturing notes and bills payable within its district; or, solely for the purposes of exchange or of collection, may receive from any nonmember bank or trust company deposits of current funds in lawful money, national-bank notes, Federal reserve notes, checks and drafts payable upon presentation, or maturing notes and bills: Provided, Such nonmember bank or trust company maintains with the Federal reserve bank of its district a balance sufficient to offset the items in transit held for its account by the Federal reserve bank: Provided, further, That nothing in this or any other section of this act shall be construed as prohibiting a member or nonmember bank from making reasonable charges, to be determined and regulated by the Federal Reserve Board, but in no case to exceed 10 cents per $100 or fraction thereof, based on the total of checks and drafts presented at any one time, for collection or payment of checks and drafts and remission therefor by exchange or otherwise; but no such charges shall be made against the Federal reserve banks. Upon the indorsement of any of its member banks, which shall be deemed a waiver of demand, notice and protest by such bank as to its own indorsement exclu- sively, any Federal reserve bank may discount notes, drafts, and bills of exchange arising out of actual com- mercial transactions; that is, notes, drafts, and bills of exchange issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which have been used, or are to be used, for such purposes, the Federal Reserve Board to have the right to determine or define the character of the paper thus eligible for discount, within the meaning of this Act. Nothing in this Act contained shall be construed to prohibit such notes, drafts, and bills of exchange, secured by staple agricultural ge. 18 01 tes, ank ay- ing r of nks nk wnd tg ts of oI 8Y, and nd \ny ft a its rer, wall Jer od no ed yne nd ich ks. Ks, nd 111 as. AT of al, ve ne Or 1t, ct 38, al SE. 13 FEDERAL RESERVE ACT roducts, or other goods, wares, or merchandise from »eing eligible for such discount, and the notes, drafts, nd bills of exchange of factors issued as such making idvances exclusively to producers of staple agricultural roducts in their raw state shall be eligible for such dis- ount; but such definition shall not include notes, drafts, or bills covering merely investments or issued or drawn or the purpose of carrying or trading in stocks, bonds, or other investment securities, except bonds and notes of ‘he Government of the United States. Notes, drafts, nd bills admitted to discount under the terms of this >aragraph must have a maturity at the time of discount f not more than 90 days, exclusive of grace. Upon the indorsement of any of its member banks, which shall be deemed a waiver of demand, notice, and drotest by such bank as to its own indorsement exclu- sively, and subject to regulations and limitations to be drescribed by the Federal Reserve Board, any Federal ‘eserve bank may discount or purchase bills of exchange >ayable at sight or on demand which grow out of the lomestic shipment or the exportation of nonperishable, readily marketable agricultural and other staples and are secured by bills of lading or other shipping documents onveying or securing title to such staples: Provided, That all such bills of exchange shall be forwarded sromptly for collection, and demand for payment shall > made with reasonable promptness after the arrival of such staples at their destination: Provided further, That 10 such bill shall in any event be held by or for the account f a Federal reserve bank for a period. in excess of ninety lays. In discounting such bills Federal reserve banks nay compute the interest to be deducted on the basis of the estimated life of each bill and adjust: the discount ter payment of such bills to conform to the actual life ‘hereof. The aggregate of notes, drafts, and bills upon which ny person, copartnership, association, or corporation is iable as maker, acceptor, indorser, drawer, or guarantor, rediscounted for any member bank, shall at no time »xceed the amount for which such person, copartnership, association, or corporation may lawfully become liable to 1 national banking association under the terms of section # Or Treasury bills or certificates of indebtedness. See act approved June 17 1929, Appendix, p. 75. 29 Nn FEDERAL RESERVE ACT BEC. 15 5200 of the Revised Statutes, as amended: Provided however, That nothing in this paragraph shall be con- strued to change the character or class of paper now eligible for rediscount by Federal reserve banks. Any Federal reserve bank may discount acceptances of the kinds hereinafter described, which have a maturity at the time of discount of not more than 90 days’ sight, exclusive of days of grace, and which are indorsed by at least one member bank: Provided, That such acceptances if drawn for an agricultural purpose and secured at the time of acceptance by warehouse receipts or other such documents conveying or securing title covering readily marketable staples may be discounted with a maturity at the time of discount of not more than six months sight exclusive of days of grace. Any member bank may accept drafts or bills of exchange drawn upon it having not more than six months’ sight to run, exclusive of days of grace, which grow out of transactions involving the importation or exportation of goods; or which grow out of transactions involving the domestic shipment of goods provided shipping documents conveying or securing title are at- tached at the time of acceptance; or which are secured at the time of acceptance by a warehouse receipt or other such document conveying or securing title covering readily marketable staples. No member bank shall accept, whether in a foreign or domestic transaction, for any one person, company, firm, or corporation to an amount equal at any time in the aggregate to more than ten per centum of its paid-up and unimpaired capital stock and surplus, unless the bank is secured either by attached documents or by some other actual security growing out of the same transaction as the acceptance: and no bank shall accept such bills to an amount equal at any time in the aggregate to more than one-half of its paid-up and unimpaired capital stock and surplus: Provided, however, That the Federal Reserve Board, under such general regulations as it may prescribe, which shall apply to all banks alike regardless of the amount of capital stock and surplus, may authorize any member bank to accept such bills to an amount not exceeding at any time in the aggregate one hundred per centum of its paid-up and unimpaired capital stock and surplus: Provided further, That the aggregate of acceptances 518 ed. YN- YYW as ty ht, at es he | ch ily ty gq’ of ix -h yr ns ad it ad ar 1g ill or 1 in al y uy nr 4 al fF i* 5 1. :h 1t or -g yi 3: QQ 3KC, 13 FEDERAL RESERVE ACT crowing out of domestic transactions shall in no event 3xceed fifty per centum of such capital stock and surplus. Any Federal reserve bank may make advances to its member banks on their promissory notes for a period not exceeding fifteen days at rates to be established by such Federal reserve banks, subject to the review and determination of the Federal Reserve Board, provided Such promissory notes are secured by such notes, drafts, bills of exchange, or bankers’ acceptances as are eligible for rediscount or for purchase by Federal reserve banks under the provisions of this Act, or by the deposit or pledge of bonds or notes of the United States.® Section fifty-two hundred and two of the Revised Stat- utes of the United States is hereby amended so as to read as follows: No national banking association shall at any time be indebted, or in any way liable, to an amount exceeding the amount of its capital stock at such time actually paid in and remaining undiminished by losses or otherwise, except on account of demands of the nature following: First. Notes of circulation. Second. Moneys deposited with or collected by the association. | Third. Bills of exchange or drafts drawn against money actually on deposit to the credit of the association, or due thereto. Fourth. Liabilities to the stockholders of the associa- ion for dividends and reserve profits. Fifth. Liabilities incurred under the provisions of the Federal Reserve Act. Sixth. Liabilities incurred under the provisions of the War Finance Corporation Act.” Seventh. Liabilities created by the indorsement of ac- cepted bills of exchange payable abroad actually owned by the indorsing bank and discounted at home or abroad.” Eighth. Liabilities incurred under the provisions of section 202 of Title II of the Federal Farm Loan Act, approved July 17, 1916, as amended by the Agricultural Credits Act of 1923.7 3 Or Treasury bills or certificates of indebtedness. See act approved June 17, 1929, Appendix, p. 75. 1 These three subparagraphs were added to sec. 5202, Revised Statutes, by the act of Apr, 5, 1918, by the act of Oct. 22, 1919, and by the act of Feb. 25, 1927, respectively. See Appendix, p. 85. 41632°—31—3 3 - rg FEDERAL RESERVE ACT SEC. 1 The discount and rediscount and the purchase and sale by any Federal reserve bank of any bills receivable and of domestic and foreign bills of exchange, and of accept- ances authorized by this Act, shall be subject to such restrictions, limitations, and regulations as may be imposed by the Federal Reserve Board. That in addition to the powers now vested by law in national banking associations organized under the laws of the United States any such association located and doing business in any place the population of which does not exceed five thousand inhabitants, as shown by the last preceding decennial census, may, under such rules and regulations as may be prescribed by the Comptroller of the Currency, act as the agent for any fire, life, or other insurance company authorized by the authorities of the State in which said bank is located to do business in said State, by soliciting and selling insurance and col- lecting premiums on policies issued by such company; and may receive for services so rendered such fees or commissions as may be agreed upon between the said association and the insurance company for which it may act as agent; and may also act as the broker or agent for others in making or procuring loans on real estate located within one hundred miles of the place in which said bank may be located, receiving for such services a reasonable fee or commission: Provided, however, That no such bank shall in any case guarantee either the prin- cipal or interest of any such loans or assume or guarantee the payment of any premium on insurance policies issued through its agency by its principal: And provided further, That the bank shall not guarantee the truth of any state- ment made by an assured in filing his application for insurance. Any member bank may accept drafts or bills of exchange drawn upon it having not more than three months’ sight to run, exclusive of days of grace, drawn under regulations to be prescribed by the Federal Reserve Board by banks or bankers in foreign countries or depend- encies or insular possessions of the United States for the purpose of furnishing dollar exchange as required by the usages of trade in the respective countries, dependencies, or insular possessions. Such drafts or bills may be acquired by Federal reserve banks in such amounts and subject to such regulations, restrictions, and limitations c. 13 ale nd DH= ch he in WS nd Jes he igs ler or 188 IQS a] ys or Jad ay nt te 2h ! at N= 28 ad or, 0 om af 0 ‘0 Ve i- Ie 0 3, 10 J 8 Sze, 13a FEDERAL RESERVE ACT JI 88 may be prescribed by the Federal Reserve Board: Provided, however, That no member bank shall accept such drafts or bills of exchange referred to this paragraph for any one bank to an amount exceeding in the aggregate ten per centum of the paid-up and unimpaired capital and surplus of the accepting bank unless the draft or bill of exchange is accompanied by documents conveying or se- curing title or by some other adequate security: Provided further, That no member bank shall accept such drafts or bills in an amount exceeding at any time the aggregate of one-half of its paid-up and unimpaired capital and surplus. Sec. 13a. Upon the indorsement of any of its member ge, L; My banks, which shall be deemed a waiver of demand, notice, {37 a's so" and protest by such bank as to its own indorsement exclusively, any Federal reserve bank may, subject to regulations and limitations to be prescribed by the Federal Reserve Board, discount notes, drafts, and bills of exchange issued or drawn for an agricultural purpose, or based upon live stock, and having a maturity, at the time of discount, exclusive of days of grace, not exceed- Ing nine months, and such notes, drafts, and bills of xchange may be offered as collateral security for the Issuance of Federal reserve notes under the provisions of section 16 of this Act: Provided, That notes, drafts, and bills of exchange with maturities in excess of six months shall not be eligible as a basis for the issuance of Federal reserve notes unless secured by warehouse receipts or Other such negotiable documents conveying or securing title to readily marketable staple agricultural products or by chattel mortgage upon live stock which is being fattened for market. That any Federal reserve bank may, subject to regula- tions and limitations to be prescribed by the Federal Reserve Board, rediscount such notes, drafts, and bills for any Federal Intermediate Credit Bank, except that no Federal reserve bank shall rediscount for a Federal Inter- mediate Credit Bank any such note or obligation which bears the indorsement of a nonmember State bank or trust company which is eligible for membership in the Federal reserve system, in accordance with section 9 of this Act. Any Federal reserve bank may also buy and sell debentures and other such obligations issued by a Federal Intermediate Credit Bank or by a National Agricultural Credit Corporation, but only to the same extent as and ~ FEDERAL RESERVE ACT Bxc. 1 subject to the same limitations as those upon which it may buy and sell bonds issued under Title I of the Federal Farm Loan Act. Notes, drafts, bills of exchange or acceptances issued or drawn by cooperative marketing associations com- posed of producers of agricultural products shall be deemed to have been issued or drawn for an agricultural purpose, within the meaning of this section, if the pro- ceeds thereof have been or are to be advanced by such association to any members thereof for an agricultural purpose, or have been or are to be used by such associa- tion in making payments to any members thereof on account of agricultural products delivered by such members to the association, or if such proceeds have been or are to be used by such association to meet expenditures incurred or to be incurred by the associa- lion in connection with the grading, processing, packing, preparation for market, or marketing of any agricultural product handled by such association for any of its members: Provided, That the express enumeration in this paragraph of certain classes of paper of cooperative marketing associations as eligible for rediscount shall not be construed as rendering ineligible any other class of paper of such associations which is now eligible for rediscount. The Federal Reserve Board may, by regulation, limit to a percentage of the assets of a Federal reserve bank the amount of notes, drafts, acceptances, or bills having a maturity in excess of three months, but not exceeding six months, exclusive of days of grace, which may be discounted by such bank, and the amount of notes, drafts, bills, or acceptances having a maturity in excess of six months, but not exceeding nine months, which may be rediscounted by such bank. OPEN-MARKET OPERATIONS J hamendedby Sec. 14. Any Federal reserve bank may, under rules Sep. 7, 1916 (38 1 2 iki, on, chap and regulations prescribed by the Federal Reserve kame dl 7 Board, purchase and sell in the open market, at home or nT ie abroad, either from or to domestic or foreign banks, 28); Mar. 4, 19% firms, corporations, or individuals, cable transfers and chap. 252). bankers’ acceptances and bills of exchange of the kinds and maturities by this Act made eligible for rediscount, with or without the indorsement of a member bank. c. 14 ich the 1ed I - be ral ro- ich ral via- on ich ave eet sia- ng, ral its his ive 1all ‘ass for mit ank ng ing be ts, 3x ha 1les Ive y OT ks, and nds nt, 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 hypothe- cation 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 collec- tion 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, in- cluding 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 coun- tries, 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 indorse- ment, through such corresponderits or agencies, bills of exchange (or acceptances) arising out of actual commer- cial 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. 23 ay 3 %" yy > w Wirtschafts- 4 \= Archiv 3 2 § 2 o Noy, «3 1d FEDERAL RESERVE ACT Sec. 1 ents or agencies. Whenever any such account has been opened or agency or correspondent has been appointed by a Federal reserve bank, with the consent of or under the order and direction of the Federal Reserve Board, any other Federal reserve bank may, with the consent and approval of the Federal Reserve Board, be permitted to carry on or conduct, through the Federal reserve bank opening such account or appointing such agency or correspondent, any transaction authorized by this section under rules and regulations to be prescribed by the board; () To purchase and sell in the open market, either from or to domestic banks, firms, corporations, or indi- viduals, acceptances of Federal Intermediate Credit Banks and of National Agricultural Credit Corporations, whenever the Federal Reserve Board shall declare that the public interest so requires. GOVERNMENT DEPOSITS JSsemended by Sec, 15.° The moneys held in the general fund of the Mer. 4, 19% (Treasury, except the five per centum fund for the re- 2). demption of outstanding national-bank notes and the funds provided in this Act for the redemption of Federal reserve notes may, upon the direction of the Secretary of the Treasury, be deposited in Federal reserve banks, which banks, when required by the Secretary of the Treasury, shall act as fiscal agents of the United States, and the revenues of the Government or any part thereof may be deposited in such banks, and disbursements may be made by checks drawn against such deposits. No public funds of the Philippine Islands, or of the postal savings, or any Government funds, shall be depos- ited in the continental United States in any bank not belonging to the system established by this Act: '® Pro- vided, 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.!* » This section in effect amended by Appropriation Act of 1920, approved May 29, 1920, Appendix, p. 89. 10 Under sec. 7 of the act approved Apr. 24, 1017, sec. 8 of the act approved Sept. 24, 1917, and sec. 8 of the act approved Apr. 4, 1918, the proceeds of sale of Liberty bonds of the first, second, and third issues may be deposited in nonmember banks, See Appen- iix, pp. 73, 74, 75. The act of May 18, 1916, amending the Postal Savings Act, authorizes the deposit of postal savings funds in nonmember banks. See Appendix, p. 71, 11 Under the last paragraph of sec, 8 hereof, State member banks may be designated as depositaries of public money and under sec. 5153 of the Revised Statutes as amended (see Appendix, p. 79) national banking associations way be designated as depositaries of public monayv 15 an ed er od, nt SEC. 18 FEDERAL RESERVE ACT 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. NOTE ISSUES 37 ad ve cy his hy er di- dit, ns, at ‘he re- rhe ral ATY ks, the £8, aof av the 0S- not Pm red 18@ 1920 24, ds of nen- Trizee 'd as ded ng of Sec. 16. Federal reserve notes, to be issued at the dis- 4° *=e ed >S cretion of the Federal Reserve Board for the purpose of $5: %,%8 2 making advances to Federal reserve banks through the ran Federal reserve agents as hereinafter set forth and for no A other purpose, are hereby authorized. The said notes $67. chap. 17). 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 make application to the local Federal reserve agent for such amount of the Federal reserve notes hereinbefore provided for as it may require. 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 col- lateral 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 pro- visions of said section fourteen, or gold or gold certifi- cates; 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 Fed- eral 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. Every Federal reserve bank shall maintain reserves in gold or lawful money of not less than thirty-five per centum acainst its deposits and reserves in gold of not (] to FEDERAL RESERVE ACT ) Bec. 16 less than forty per centum against its Federal reserve notes in actual circulation: Provided, however, That when the Federal reserve agent holds gold or gold certificates as collateral for Federal reserve notes issued to the bank such gold or gold certificates shall be counted as part of the gold reserve which such bank is required to maintain against its Federal reserve notes in actual circulation. Notes so paid out shall bear upon their faces a distinctive letter and serial number which shall be assigned by the Federal Reserve Board to each Federal reserve bank. Whenever Federal reserve notes issued through one Fed- eral reserve bank shall be received by another Federal reserve bank, they shall be promptly returned for credit or redemption to the Federal reserve bank through which they were originally issued or, upon direction of such Federal reserve bank, they shall be forwarded direct to the Treasurer of the United States to be retired. No Federal reserve bank shall pay out notes issued through another under penalty of a tax of ten per centum upon the face value of notes so paid out. Notes presented for redemption at the Treasury of the United States shall be paid out of the redemption fund and returned to the Federal reserve banks through which they were origi nally issued, and thereupon such Federal reserve bank shall, upon demand of the Secretary of the Treasury, reim burse such redemption fund in lawful money or, if such Fe deral reserve notes have been redeemed by the Treasurer in gold or gold certificates, then such funds shall be reim- bursed to the extent deemed necessary by the Secretary of the Treasury in gold or gold certificates, 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 sufficient in the judgment of the Secretary to provide for all redemptions to be m ade by the Treasurer. Federal reserve notes received by the Treasurer otherwise than for redemption may be ex- changed for gold out of the redemption fund hereinaf ter provided and returned to the reserve bank through which they were originally issued, or they may be returned to such bank for the credit of the United States. Fede ral reserve notes unfit for circulation shall be returned by the Federal reserve agents to the Comptroller of the Currency for cancellation and destruction, 8 re 171 18 kk i n 1 Je 18 <. i= 3 it ‘h yf ~f, 0 ‘h n or re ae Ly 1l, <@ al mn q - y ch al he nt de he X= er ch 10 al y ne 3zc. 18 FEDERAL RESERVE ACT The Federal Reserve Board shall require each Federal reserve bank to maintain on deposit in the Treasury of the United States a sum in gold sufficient in the judgment of the Secretary of the Treasury for the redemption of the Federal reserve notes issued to such bank, but in No event less than five per centum of the total amount of notes issued less the amount of gold or gold certificates held by the Federal reserve agent as collateral security; but such deposit of gold shall be counted and included as part of the forty per centum reserve hereinbefore required. The board shall have the right, acting through the Federal reserve agent, to grant in whole or in part, or to reject entirely the application of any Federal reserve bank for Federal reserve notes; but to the extent that such application may be granted the Federal Reserve Board shall, through its local Federal reserve agent, supply Federal reserve notes to the banks so applying, and such bank shall be charged with the amount of notes issued to it and shall pay such rate of Interest as may be established by the Federal Reserve Board on only that amount of such notes which equals the total amount of its outstanding Federal reserve notes less the amount of gold or gold certificates held by the Federal reserve agent as collateral security. Federal reserve notes issued to any such bank shall, upon delivery, together with such notes of such Federal reserve 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 a!l the assets of such bank. Any Federal reserve bank may at any time reduce its liability for outstanding Federal reserve notes by depositing with the Federal reserve agent its Federal reserve notes, gold, gold certificates, or lawful money of the United States. Federal reserve notes so deposited shall not be reissued, except upon compliance with the conditions of an original issue. The Federal reserve agent shall hold such gold, gold certificates, or lawful money available exclusively for exchange for the outstanding Federal reserve notes when offered by the reserve bank of which he is a director. Upon the request of the Secretary of the Treasury the Federal Reserve Board shall require the Federal reserve agent to transmit to the Treasurer of the United States 9 Hy FEDERAL RESERVE ACT Sec. 16 so much of the gold held by him as collateral security for Federal reserve notes as may be required for the exclusive purpose of the redemption of such Federal reserve notes, but such gold when deposited with the Treasurer shall be counted and considered as if collateral security on deposit with the Federal reserve agent. Any Federal reserve bank may at its discretion with- draw collateral deposited with the local Federal reserve agent for the protection of its Federal reserve notes issued to it and shall at the same time substitute therefor other collateral of equal amount with the approval of the Federal reserve agent under regulations to be pre- scribed by the Federal Reserve Board. Any Federal reserve bank may retire any of its Federal reserve notes by depositing them with the Federal reserve agent or with the Treasurer of the United States, and such Federal reserve bank shall thereupon be entitled to rece ve back the collateral deposited with the Federal reserve agent for the security of such notes. Federal reserve banks shall not be required to maintain the reserve or the re- demption fund heretofore provided for against Federal reserve notes which have been retired. Federal reserve notes so deposited shall not be reissued except upon compliance with the conditions of an original issue. All Federal reserve notes and all gold, gold certificates, and lawful money issued to or deposited with any Federal reserve agent under the provisions of the Federal reserve act shall hereafter be held for such agent, under such rules and regulations as the Federal Reserve Board may prescribe, in the joint custody of himself and the Federal reserve bank to which he is accredited. Such agent and such Federal reserve bank shall be jointly liable for the safe-keeping of such Federal reserve notes, gold, gold certificates, and lawful money. Nothing herein contained, however, shall be construed to pro- hibit a Federal reserve agent from depositing gold or gold certificates with the Federal Reserve Board, to be held by such board subject to his order, or with the Treasurer of the United States for the purposes author- ized by law. In order to furnish suitable notes for circulation as Federal reserve notes, the Comptroller of the Currency shall, under the direction of the Secretary of the Treasury, cause plates and dies to be engraved in the best manner bY us) 3 1 n |= re 38 Tr i ul 'S r 1 Iz 1 Q 1 0 J 3xc. 18 FEDERAL RESERVE ACT ‘0 guard against counterfeits and fraudulent alterations, and shall have printed therefrom and numbered such quantities of such notes of the denominations of $5, $10, $20, $50, $100, $500, $1000, $5000, $10,000 as may be required to supply the Federal reserve banks. Such notes shall be in form and tenor as directed by the Secretary of the Treasury under the provisions of this Act and shall bear the distinctive numbers of the several Federal reserve banks through which they are issued. When such notes have been prepared, they shall be deposited in the Treasury, or in the subtreasury or mint of the United States nearest the place of business of each Federal reserve 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 by 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 ex- Penses incidental 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. The examination of plates, dies, bed pieces, and so forth, and regulations relating to such examination of plates, dies, and so forth, of national-bank notes provided for in section fifty-one hundred and seventy-four Revised Statutes, is hereby extended to include notes herein provided for. Any appropriation heretofore made out of the general funds of the Treasury for engraving plates and dies, the purchase of distinctive paper, or to cover any other ex- pense in connection with the printing of national-bank notes or notes provided for by the Act of May thirtieth, nineteen hundred and eight, and any distinctive 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 here- tofore 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 otherwise ap- 11 FEDERAL RESERVE ACT Sec. 16 propriated for the purpose of furnishing the notes afore- said: Provided, however, That nothing in this section con- tained shall be construed as exempting national banks or Federal reserve 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 member banks or from Federal reserve banks checks and drafts drawn upon any of its depositors, and when remitted by a Federal reserve bank, checks and drafts drawn by any depositor 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 & member bank from charging its actual expense incurred in collecting and remitting 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 im- posed for the service of clearing or collection rendered hy the Federal reserve bank. The Federal Reserve Board shall make and promulgate from time to time regulations governing the transfer of funds and charges therefor among Federal reserve banks and their branches, and may at its discretion exercise the functions of a clearing house for such Federal reserve banks, or may designate a Federal reserve bank to exercise such functions, and may also require each such sank to exercise the functions of a clearing house for its member banks. That the Secretary of the Treasury is hereby authorized and directed to receive deposits of gold coin or of gold sertificates with the Treasurer or any assistant treasurer of the United States when tendered by any Federal reserve bank or Federal reserve agent for credit to its or his account with the Federal Reserve Board. The Sec- retary shall prescribe by regulation the form of receipt fo be issued by the Treasurer or Assistant Treasurer to the Federal reserve bank or Federal reserve agent making *he deposit, and a duplicate of such receipt shall be delivered to the Federal Reserve Board by the Treasurer at Washington upon proper advices from any assistant treasurer that such deposit has been made. Deposits so c. 18 1ré- 1~ ks rq ng at ks nd nd ral lit k. ng ed 1d y ks he f~ ad te of cq 10 re “0 n o d ] Tr il CT +t oo or > A - k made shall be held subject to the orders of the Federal Reserve Board and shall be payable in gold coin or gold sertificates on the order of the Federal Reserve Board to any Federal reserve bank or Federal reserve agent at the Treasury or at the Subtreasury of the United States nearest the place of business of such Federal reserve bank or such Federal reserve agent: Provided, however, That any expense incurred in shipping gold to or from the Treasury or subtreasuries in order to make such payments, or as a result of making such payments, shall be paid by the Federal Reserve Board and assessed against the Federal reserve banks. The order used by the Fed- sral Reserve Board in making such payments shall be signed by the governor or vice governor, or such other officers or members as the board may by regulation prescribe. The form of such order shall be approved by the Secretary of the Treasury. The expenses necessarily incurred in carrying out these provisions, including the cost of the certificates or receipts issued for deposits received, and all expenses incident to the handling of such deposits shall be paid by the Federal Reserve Board and included in its assess- ments against the several Federal reserve banks. Gold deposits standing to the credit of any Federal reserve bank with the Federal Reserve Board shall, at the option of said bank, be counted as part of the lawful reserve which it is required to maintain against out- standing Federal reserve notes, or as a part of the reserve it is required to maintain against deposits. Nothing in this section shall be construed as amending section six of the act of March fourteenth, nineteen hun- dred, as amended by the acts of March fourth, nineteen hundred and seven, March second, nineteen hundred and sleven, and June twelfth, nineteen hundred and sixteen, nor shall the provisions of this section be construed to apply to the deposits made or to the receipts or certifi- cates issued under those acts. Sec. 17. So much of the provisions of section fifty-one Asamended by hundred and fifty-nine of the Revised Statutes of the ume 21, i? Go United States, and section four of the act of June twen- aay, To che tieth, eighteen hundred and seventy-four, and section sight of the act of July twelfth, eighteen hundred and eighty-two, and of any other provisions of existing stat- utes as require that before any national banking asso- SEC. 17 FEDERAL RESERVE ACT 13 14 FEDERAL RESERVE ACT Src. 18 ciation shall be authorized to commence banking business it shall transfer and deliver to the Treasurer of the United States a stated amount of United States registered bonds, and so much of those provisions or of any other provisions of existing statutes as require any national banking association now or hereafter organized to main- fain & minimum deposit of such bonds with the Treasurer is hereby repealed. REFUNDING BONDS Sec. 18. After two years from the passage of this Act, and at any time during a period of twenty years there- after, any member bank desiring 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 be 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 discretion, require the Federal reserve banks to purchase such bonds from the banks whose applications have been filed with the Treasurer at least ten days before the end of any quarterly period at which the Federal Reserve Board may direct the purchase 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 reserve bank. Provided further, That the Federal Reserve Board shall allot to each Federal reserve bank such proportion of such bonds as the capital and surplus of such bank shall bear to the aggregate capital and surplus of all the Fed- eral 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, and such Federal reserve bank shall, thereupon, deposit lawful money with the Treasurer of the United States for the purchase price of such bonds, and the Treasurer shall pay to the mem- ber bank selling such bonds any balance due after deduct- ing a sufficient sum to redeem its outstanding notes oc, 18 nqq she red er 1al n- ar ot, Ei ny Ar 1t. ae d, ch its se an Wd ve d, to ls Is 3] Al of 11 I. is y 1] 1] LO SEC. 18 FEDERAL RESERVE ACT secured by such bonds, which notes shall be canceled and Dermanently retired when redeemed. The Federal reserve banks purchasing such bonds shall be permitted to take out an amount of circulating notes *qual to the par value of such bonds. . Upon the deposit with the Treasurer of the United States of bonds so purchased, or any bonds with the cir- culating 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 circulating Dotes in blank, registered and countersigned as provided by law, equal in amount to the par value of the bonds 30 deposited. Such notes shall be the obligations of the Federal reserve 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 now 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, ap- proved by the Federal Reserve Board, the Secretary of the Treasury may issue, in exchange for United States two per centum gold bonds bearing the circulation privilege, but against which no circulation is outstanding, one- year gold notes of the United States without the circula- tion privilege, to an amount not to exceed one-half of the ‘wo per centum bonds so tendered for exchange, and “hirty-year three per centum gold bonds without the circulation privilege for the remainder of the two per centum bonds so tendered: Provided, That at the time of such exchange the Federal reserve bank obtaining such one-year gold notes shall enter into an obligation with the Secretary of the Treasury binding itself to purchase from the United States for gold at the maturity of such one-year notes, an amount equal to those delivered in ex- change for such bonds, if so requested by the Secretary, and at each maturity of one-year notes so purchased by such Federal reserve bank, to purchase from the United States such an amount of one-year notes as the Secretary may tender to such bank, not to exceed the amount issued to such bank in the first instance, in exchange for the two 45 ” 4) FEDERAL RESERVE ACT SEc. 16 per centum United States gold bonds; said obligation to purchase at maturity such notes shall continue in force for a period not to exceed thirty years. For the purpose of making the exchange herein pro- vided for, the Secretary of the Treasury is authorized to issue at par Treasury notes in coupon or registered form as he may prescribe in denominations of one hundred dollars, or any multiple thereof, bearing interest at the rate of three per centum per annum, payable quarterly, such Treasury notes to be payable not more than one year from the date of their issue in gold coin of the present standard value, and to be exempt as to principal and interest from the payment of all taxes and duties of the United States except as provided by this Act, as well as from taxes in any form by or under State, municipal, or local authorities. And for the same purpose, the Secre- tary is authorized and empowered to issue United States gold bonds at par, bearing three per centum interest payable thirty years from date of issue, such bonds to be of the same general tenor and effect and to be issued under the same general terms and conditions as the United States three per centum bonds without the circu- lation privilege now issued and outstanding. Upon application of any Federal reserve bank, ap- proved by the Federal Reserve Board, the Secretary may issue at par such three per centum bonds in exchange for ‘he one-year gold notes herein provided for. BANK RESERVES ats mended by See. 19. Demand deposits within the meaning of this Stor, oor 38 Act shall comprise all deposits payable within thirty ro ES Sa and fim Sepa shall comprise all deposits paya- 36. Tots 40 Sent: y days, all savings accounts and certificates 6%. chap. 170. of deposit which are subject to not less than thirty days’ notice before payment, and all postal savings deposits.? Every bank, banking association, or trust company which is or which becomes a member of any Federal reserve bank shall establish and maintain reserve balances with its Federal reserve bank as follows: 12 Deposits of public moneys by the United States in designated depositaries, other han postal savings deposits, are not subject to reserve requirements, See sec. 7 of First iberty Bond Act, approved Apr. 24, 1917, Appendix, p. 73; sec. 8 of Second Liberty Bond Act, approved Sept. 24, 1917, Appendix, p. 74; and see. 8 of Third Liberty Bond Act, approved Apr. 4. 1018. Appendix. ©. 75. ‘gc. 19 1 10 wee oro- 1 to orm ired the rly, one sent and the | as . oT cre- ates res y be ned the l= ap- ! wy | for | this rty ya- 1tes Lys’ ‘s, i2 Any ral ces sther First erty {and 3Ec. 19 FEDERAL RESERVE ACT (8) If not in a reserve or central reserve city, as now or hereafter defined, it shall hold and maintain with the Rederal reserve bank of its district an actual net balance squal to not less than seven per centum of the aggregate amount of its demand deposits and three per centum of 'ts time deposits. (b) If in a reserve city, as now or hereafter defined, it shall hold and maintain with the Federal reserve bank of its district an actual net balance equal to not less than ten per centum of the aggregate amount of its demand leposits and three per centum of its time deposits: Pro- vided, however, That if located in the outlying districts of 2 reserve city or in territory added to such a city by the sxtension of its corporate charter, it may, upon the affirmative vote of five members of the Federal Reserve Board, hold and maintain the reserve balances specified n paragraph (a) hereof. (¢) If in a central reserve city, as now or hereafter lefined, it shall hold and maintain with the Federal ‘eserve bank of its district an actual net balance equal to 20t less than thirteen per centum of the aggregate amount of its demand deposits and three per centum of its time deposits: Provided, however, That if located in the out- lying districts of a central reserve city or in territory added to such city by the extension of its corporate *harter, it may, upon the affirmative vote of five members 5f the Federal Reserve Board, hold and maintain the reserve balances specified in paragraphs (a) or (b) thereof. No member bank shall keep on deposit with any State bank or trust company which is not a member bank a sum in excess of ten per centum of its own paid-up capi- tal and surplus. No member bank shall act as the me- lium or agent of a nonmember bank in applying for or receiving discounts from a Federal reserve bank under the provisions of this Act, except by permission of the Federal Reserve Board. The required balance carried by a member bank with a Federal reserve bank may, under the regulations and subject to such penalties as may be prescribed by the Federal Reserve Board, be checked against and with- drawn by such member bank for the purpose of meeting existing liabilities: Provided, however, That no bank shall at any time make new loans or shall pay any divi- 1163903 Led 47 PB - Lao FEDERAL RESERVE ACT Secs. 20, 21 dends unless and until the total balance required by law is fully restored. In estimating the balances required by this Act, the aet difference of amounts due to and from other banks shall be taken as the basis for ascertaining the deposits against which required balances with Federal reserve banks shall be determined. National banks, or banks organized under local laws, located in Alaska or in a dependency or insular posses- sion or any part of the United States outside the conti- nental United States may remain nonmember banks, and shall in that event maintain reserves and comply with all the conditions now provided by law regulating them; or said banks may, with the consent of the Reserve Board, become member banks of any one of the reserve districts, and shall in that event take stock, maintain reserves, and be subject to all the other provisions of this Act. Sec. 20. So much of sections two and three of the Act of June twentieth, eighteen hundred and seventy-four, antitled “An Act fixing the amount of United States notes, providing for a redistribution of the national- bank currency, and for other purposes,” as provides that the fund deposited by any national banking association with the Treasurer of the United States for the redemp- tion of its notes shall be counted as a part of its lawful reserve as provided in the Act aforesaid, is hereby repealed. And from and after the passage of this Act such fund of five per centum shall in no case be counted by any national banking association as a part of its law- ful reserve. BANK EXAMINATIONS wor tamended by Sec. 21. Section fifty-two hundred and forty, United Sn 21050 5 States Revised Statutes, is amended to read as follows: B10). The Comptroller of the Currency, with the approval of the Secretary of the Treasury, shall appoint examin- ers who shall examine every member bank ® at least twice in each calendar year and oftener if considered necessary: Provided, however, That the Federal Reserve Board may authorize examination by the State authorities to be accepted in the case of State banks and trust companies 1 Except banks admitted to membership in the system under authority of sec, 9 of this act, See sec. 9, ante, J). 21 1 W he ks 1ts “ve VS. 88- ti- nd ith 1M, ; ve ve un of ct ir, "08 . al- 18t on \p- ful oy wet ad y vu ad VS: ral = ce v: 1y be as 3 of SEC. 21 FEDERAL RESERVE ACT and may at any time direct the holding of a special ®Xamination of State banks or trust companies that are Stockholders in any Federal reserve bank. The exam- Ter making the examination of any national bank, or of any other member bank, shall have power to make a thorough examination of all the affairs of the bank, and Dn doing so he shall have power to administer oaths nd to examine any of the officers and agents thereof under oath and shall make a full and detailed report of the condition of said bank to the Comptroller of the “urrency, The Federal Reserve Board, upon the recommenda- lon of the Comptroller of the Currency, shall fix the Salaries of all bank examiners and make report thereof 0 Congress. The expense of the examinations herein Provided for shall be assessed by the Comptroller of the vurrency upon the banks examined in proportion to i8sets or resources held by the banks upon the dates of *Xamination of the various banks. In addition to the examinations made and conducted oy the Comptroller of the Currency, every Federal re- serve bank may, with the approval of the Federal reserve gent or the Federal Reserve Board, provide for special Sxamination of member banks within its district. The ®xpense of such examinations may, in the discretion of the Federal Reserve Board, be assessed against the banks xamined, and, when so assessed, shall be paid by the banks examined. Such examinations shall be so con- ducted as to inform the Federal reserve bank of the condi- Hon of its member banks and of the lines of credit which are being extended by them. Every Federal reserve dank shall at all times furnish to the Federal Reserve Board such information as may be demanded concerning the condition of any member bank within the district of the said Federal reserve bank. No bank shall be subject to any visitatorial powers Other than such as are authorized by law, or vested in the courts of justice or such as shall be or shall have been exercised or directed by Congress, or by either House thereof or by any committee of Congress or of either House duly authorized. : The Federal Reserve Board shall, at least once each year, order an examination of each Federal reserve bank, and upon joint application of ten member banks iJ 3) FEDERAL RESERVE ACT sec. 2 the Federal Reserve Board shall order a special exam- ination and report of the condition of any Federal reserve bank. acts amended by Sec. 22. (a) No member bank and no officer, director. Star Hat Wor employee thereof shall hereafter make any loan of a a” bo ad »y gratuity to any bank examiner. Any bank 25. 1927 (4h Set , director, or employee violating this provision 1252. chan. 19) shall be deemed guilty of a misdemeanor and shall be imprisoned not exceeding one year, or fined not more than $5,000, or both, and may be fined a further sum equal to the money so loaned or gratuity given. Any examiner or assistant examiner who shall accept a loan or gratuity from any bank examined by him, or from an officer, director, or employee thereof, or who shall steal, or unlawfully take, or unlawfully conceal any money, note, draft, bond, or security or any other prop- erty of value in the possession of any member bank or from any safe deposit box in or adjacent to the premises of such bank, shall be deemed guilty of a misdemeanor and shall, upon conviction thereof in any district court of the United States, be imprisoned for not exceeding one year, or fined not more than $5,000, or both, and may be fined a further sum equal to the money so loaned, gratuity given, or property stolen, and shall forever thereafter be disqualified from holding office as a national bank examiner. (b) No national bank examiner shall perform any other service for compensation while holding such office for any bank or officer, director, or employee thereof. No examiner, public or private, shall disclose the names of borrowers or the collateral for loans of a mem- ber bank to other than the proper officers of such bank without first having obtained the express permission in writing from the Comptroller of the Currency, or from the board of directors of such bank, except when ordered to do so by a court of competent jurisdiction, or by direction of the Congress of the United States, or of either House thereof, or any committee of Congress, or of either House duly authorized. Any bank examiner violating the provisions of this subsection shall be im- prisoned not more than one year or fined not more than $5,000, or both. (¢) Except as herein provided, any officer, director. employee, or attorney of a member bank who stipulates spc. 22 ra. oTve ctor, a or yank 1sion 1 be nore 111 cept 1, OT shall any rop- k or nlses anor ourt one y be uity after ank any | Ree the lem- yank n in ‘rom ered . by r of ;, or iner ime han tor, ateq Sec. 22 FEDERAL RESERVE ACT for or receives or consents or agrees to receive any fee, commission, gift, or thing of value from any person, firm, Or corporation, for procuring or endeavoring to procure for such person, firm, or corporation, or for any other Person, firm, or corporation, any loan from or the pur- chase or discount of any paper, note, draft, check, or bill of exchange by such member bank shall be deemed guilty of a misdemeanor and shall be imprisoned not more than one year or fined not more than $5,000, or both, (d) Any member bank may contract for, or purchase from, any of its directors or from any firm of which any of its directors is a member, any securities or other Property when (and not otherwise) such purchase is made in the regular course of business upon terms not less favorable to the bank than those offered to others, or when such purchase is authorized by a majority of the board of directors not interested in the sale of such securities or property, such authority to be evidenced by the affirmative vote or written assent of such directors: Provided, however, That when any director, or firm of which any director is a member, acting for or on behalf of others, sells securities or other property to a member bank, the Federal Reserve Board by regulation may, In any or all cases, require a full disclosure to be made, on forms to be prescribed by it, of all commissions or other considerations received, and whenever such director or firm, acting in his or its own behalf, sells securities or other property to the bank the Federal Reserve Board by regulation, may require a full disclosure of all profit realized from such sale. Any member bank may sell securities or other property to any of its directors, or to a firm of which any of its directors is a member, in the regular course of business on terms not more favorable to such director or firm than those offered to others, or when such sale is author- ized by a majority of the board of directors of a member bank to be evidenced by their affirmative vote or written assent: Provided, however, That nothing in this sub- section contained shall be construed as authorizing member banks to purchase or sell securities or other property which such banks are not otherwise authorized by law to purchase or sell. al 392 FEDERAL RESERVE ACT SECs. 23. 2 (e) No member bank shall pay to any director, officer. attorney, or employee a greater rate of interest on the deposits of such director, officer, attorney, or employee than that paid to other depositors on similar deposits with such member bank. (f) If the directors or officers of any member bank shall knowingly violate or permit any of the agents, officers, or directors of any member bank to violate any of the provisions of this section or regulations of the board made under authority thereof, every director and officer participating in or assenting to such violation shall be held liable in his personal and individual capacity for all damages which the member bank, its shareholders, or any other persons shall have sustained in consequence of such violation. Sec. 23. The stockholders of every national banking association shall be held individually responsible for all contracts, debts, and engagements of such association, each to the amount of his stock therein, at the par value thereof in addition to the amount invested in such stock. The stockholders in any national banking association who shall have transferred their shares or registered the transfer thereof within sixty days next before the date of the failure of such association to meet its obli- gations, or with knowledge of such impending failure, shall be liable to the same extent as if they had made no such transfer, to the extent that the subsequent transferee fails to meet such liability; but this provision shall not be construed to affect in any way any recourse which such shareholders might otherwise have against those in whose names such shares are registered at the time of such failure. LOANS ON FARM LANDS Sec. 24. Any national banking association may make sons amended by Joans secured by first lien upon improved real estate, St Ta nd including improved farm land, situated within its Federal 400) ey 1 reserve distriot or within a radius of one hundred miles chap. 191)- of the place in which such bank is located, irrespective of district lines. A loan secured by real estate within the meaning of this section shall be in the form of an obligation or obligations secured by mortgage, trust deed. or other such instrument upon real estate when the entire 23, 24 cer, the yee ya1ts hall ers, the ~ard ficer | be r all or ANCEC ging ~ all iion, alue ock. tion ered the )bli- lure, 1ade ent sion urse inst the ake rate, eral niles tive thin ” an eed, 1Hre Bre, 95 FEDERAL RESERVE ACT 33 Bmount of such obligation or obligations is made or is sold to such association. The amount of any such loan shall not exceed 50 per centum of the actual value of the teal estate offered for security, but no such loan upon Such security shall be made for a longer term than five years. Any such bank may make such loans in an ag- Bregate sum including in such aggregate any such loans on which it is liable as indorser or guarantor or other- Wise equal to 25 per centum of the amount of the capital stock of such association actually paid in and unimpaired and 25 per centum of its unimpaired surplus fund, or to One-half of its savings deposits, at the election of the 8ssociation, subject to the general limitation contained In section 5200 of the Revised Statutes of the United States. Such banks may continue hereafter as here- tofore to receive time and savings deposits and to pay interest on the same, but the rate of interest which such banks may pay upon such time deposits or upon savings Or other deposits shall not exceed the maximum rate authorized by law to be paid upon such deposits by State banks or trust companies organized under the laws of the State wherein such national banking association is located - FOREIGN BRANCHES Sec, 25. Any national banking association possessing ,Asemendedby & capital and surplus of $1,000,000 or more may file appli- Sos. Tas, 8 cation with the Federal Reserve Board for permission to {81 Sept i exercise, upon such conditions and under such regulations 5 chap. 60). 88 may be prescribed by the said board. either or both of the following powers: First. To establish branches in foreign countries or dependencies or insular possessions of the United States for the furtherance of the foreign commerce of the United States, and to act if required to do so as fiscal agents of the United States. Second. To invest an amount not exceeding in the Aggregate ten per centum of its paid-in capital stock and Surplus in the stock of one or more banks or corporations chartered or incorporated under the laws of the United States or of any State thereof, and principally engaged in International or foreign banking, or banking in a depend- ency or insular possession of the United States either directly or throuch the agency, ownership, or control of FEDERAL RESERVE ACT Que 4 local institutions in foreign countries, or in such depend encies or insular possessions. Until January 1, 1921, any national banking associa tion, without regard to the amount of its capital and sur plus, may file application with the Federal Reserve Board for permission, upon such conditions and under such regulations as may be prescribed by said board, to invest an amount not exceeding in the aggregate 5 pel centum of its paid-in capital and surplus in the stock of one or more corporations chartered or incorporated under the laws of the United States or of any State thereof and: regardless of its location, principally engaged in such phases of international or foreign financial operations as may be necessary to facilitate the export of goods, wares. or merchandise from the United States or any of its de- pendencies or insular possessions to any foreign coun- try: Provided, however, That in no event shall the total investments authorized by this section by any one national bank exceed 10 per centum of its capital and surplus. Such application shall specify the name and capital ol the banking association filing it, the powers applied for, and the place or places where the banking or financial operations proposed are to be carried on. The Federal Reserve Board shall have power to approve or to reject such application in whole or in part if for any reason the granting of such application is deemed inexpedient, and shall also have power from time to time to increase of decrease the number of places where such banking opers- tions may be carried on. Every national banking association operating foreign branches shall be required to furnish information con- cerning the condition of such branches to the Comptroller of the Currency upon demand, and every member bank investing in the capital stock of banks or corporations described above shall be required to furnish information concerning the condition of such banks or corporations to the Federal Reserve Board upon demand, and the Federal Reserve Board may order special examinations of the said branches, banks, or corporations at such time or times as it may deem best. Before any national bank shall be permitted to purchase stock in any such corporation the said corporation shall enter into an agreement or undertakine with the Federal gc. 2B end ocla” QUT 3erve nder 4, to 5 per ok of inder and, such ns as ares, 3 de- oun- total NNe and a] of for, neial deral eject 1} the and we or NAT |= reign con- roller bank tions ation tions ' the tions time hase shall daral BEC, 25 (a) FEDERAL RESERVE ACT 55 Reserve Board to restrict its operations or conduct its business in such manner or under such limitations and re- strictions as the said board may prescribe for the place or places wherein such business is to be conducted. If at any time the Federal Reserve Board shall ascertain that the regulations prescribed by it are not being complied with, said board is hereby authorized and empowered to Institute an investigation of the matter and to send for Persons and papers, subpcena witnesses, and administer oaths in order to satisfy itself as to the actual nature of the transactions referred to. Should such investigation tesult in establishing the failure of the corporation in question, or of the national bank or banks which may be stockholders therein, to comply with the regulations laid down by the said Federal Reserve Board, such national banks may be required to dispose of stock holdings in the said corporation upon reasonable notice. Every such national banking association shall conduct the accounts of each foreign branch independently of the accounts of other foreign branches established by it and of its home office, and shall at the end of each fiscal period transfer to its general ledger the profit or loss accrued at sach branch as a separate item. Any director or other officer, agent, or employee of any member bank may, with the approval of the Federal Re- serve Board, be a director or other officer, agent, or em- ployee of any such bank or corporation above men- tioned in the capital stock of which such member bank shall have invested as hereinbefore provided, without being subject to the provisions of section eight of the Act approved October fifteenth, nineteen hundred and fourteen, entitled “An Act to supplement existing laws against unlawful restraints-and monopolies, and for other Purposes.’”’ ¥# BANKING CORPORATIONS AUTHORIZED TO DO FOREIGN RANKING BUSINESS Sec. 25 (a). Corporations to be organized for the pur- i pr ay pose of engaging in international or foreign banking or i edb other international or foreign financial operations, or in a Dob.27, banking or other financial operations in a dependency or he Sn insular possession of the United States, either directly 2% 159 4 Sisk or through the agency, ownership, or control of local ———— ee —————— | ——— —— TTT # The Clavton Act. For text. see Appendix. p. 69. FEDERAL RESERVE ACT 8Ec. 25 (a institutions in foreign countries, or in such dependencies or insular possessions as provided by this section, and to act when required by the Secretary of the Treasury ae fiscal agents of the United States, may be formed by any number of natural persons, not less in any case than five: Provided, That nothing in this section shall be construed to deny the right of the Secretary of the Treasury to use any corporation organized under this section as deposi taries in Panama and the Panama Canal Zone, or in the Philippine Islands and other insular possessions and de- pendencies of the United States. Such persons. shall enter into articles of association which shall specify in general terms the objects for which the association is formed and may contain any other pro- visions not inconsistent with law which the association may see fit to adopt for the regulation of its business and the conduct of its affairs. Such articles of association shall be signed by all of the persons intending to participate in the organization of the corporation and, thereafter, shall be forwarded to the Federal Reserve Board and shall be filed and pre- served in its office. The persons signing the said articles of association shall under their hands, make an organi- zation certificate which shall specifically state: First. The name assumed by such corporation, which shall be subject to the approval of the Federal Reserve Board. Second. The place or places where its operations are to be carried on. Third. The place in the United States where its home office is to be located. Fourth. The amount of its capital stock and the number of shares into which the same shall be divided. Fifth. The names and places of business or residence of the persons executing the certificate and the number of shares to which each has subscribed. Sixth. The fact that the certificate is made to enable the persons subscribing the same, and all other persons, firms, companies, and corporations, who or which may thereafter subscribe to or purchase shares of the capital stock of such corporation, to avail themselves of the ad- vantages of this section. The persons signing the organization certificate shall duly acknowledge the execution thereof before a judge a5 (a) ncies d to v as any five: rued ) use nosi- . the de- tion hich DTO- tion and 1 of on of 1 to pre- icles “ani- hich aATve ATA IIMA the ded. nce her able ons, may ital ad. hall dee Bc, 25(a) FEDERAL RESERVE ACT of some court of record or notary public, who shall cer- tify thereto under the seal of such court or notary, and thereafter the certificate shall be forwarded to the Federal Reserve Board to be filed and preserved in its office. Upon duly making and filing articles of association and an organization certificate, and after the Federal Reserve Board has approved the same and issued a permit to begin business, the association shall become and be a body corporate, and as such and in the name designated therein shall have power to adopt and use a corporate seal, which may be changed at the pleasure of its board of directors; to have succession for a period of twenty years unless sooner dissolved by the act of the shareholders owning two-thirds of the stock or by an Act of Congress or unless its franchises become forfeited by some violation of law; to make contracts; to sue and be sued, complain, and defend in any court of law or equity; to elect or appoint directors, all of whom shall be citizens of the United States; and, by its board of directors, to appoint such officers and employees as may be deemed proper, define their authority and duties, require bonds of them, and fix the penalty thereof, dismiss such officers or em- Ployees, or any thereof, at pleasure and appoint others to fill their places; to prescribe, by its board of directors, by-laws not inconsistent with law or with the regulations of the Federal Reserve Board regulating the manner in which its stock shall be transferred, its directors elected or appointed, its officers and employees appointed, its Property transferred, and the privileges granted to it by law exercised and enjoyed. Each corporation so organized shall have power, under such rules and regulations as the Federal Reserve Board may prescribe: (8) To purchase, sell, discount, and negotiate, with or without its indorsement or guaranty, notes, drafts, checks, bills of exchange, acceptances, including bankers’ acceptances, cable transfers, and other evidences of indebtedness; to purchase and sell, with or without its indorsement or guaranty, securities, including the obligations of the United States or of any State thereof but not including shares of stock in any corporation except as herein provided; to accept bills or drafts drawn upon it subject to such limitations and restrictions as the Federal Reserve Board may impose; to issue letters 57 "Q FEDERAL RESERVE ACT Sec. 25( of credit; to purchase and sell coin, bullion, and exchange: to borrow and to lend money; to issue debentures, bonds, and promissory notes under such general conditions as to security and such limitations as the Federal Reserve Board may prescribe, but in no event having liabilities outstanding thereon at any one time exceeding ten times its capital stock and surplus; to receive deposits outside of the United States and to receive only such deposits within the United States as may be incidental to or for the purpose of carrying out transactions in foreign coun- tries or dependencies or insular possessions of the United States; and generally to exercise such powers as are inci- dental to the powers conferred by this Act or as may be usual, in the determination of the Federal Reserve Board, in connection with the transaction of the business of banking or other financial operations in the countries, colonies, dependencies, or possessions in which it shall transact business and not inconsistent with the powers specifically granted herein. Nothing contained in this section shall be construed to prohibit the Federal Reserve Board, under its power to prescribe rules and regulations, from limiting the aggregate amount of liabilities of any or all classes incurred by the corporation and outstanding at any one time. Whenever a corporation organized under this section receives deposits in the United States authorized by this section it shall carry reserves in such amounts as the Federal Reserve Board may prescribe, but in no event less than 10 per centum of its deposits. (b) To establish and maintain for the transaction of its business branches or agencies in foreign countries, their dependencies or colonies, and in the dependencies or insular possessions of the United States, at such places as may be approved by the Federal Reserve Board and under such rules and regulations as it may prescribe, including countries or dependencies not specified in the original organization certificate. (c) With the consent of the Federal Reserve Board to purchase and hold stock or other certificates of owner- ship in any other corporation organized under the pro- visions of this section, or under the laws of any foreign country or a colony or dependency thereof, or under the laws of any State, dependency, or insular possession of the United States but not engaged in the general business of buying or selling goods, wares, merchandise 26(a) nge; ads, 3 a8 arve ities mes side sits for yun- ited nei- r be ard, : of -ies, hall vers this ‘rve ons, any ling zed ates uch ibe, sits. + of ies, ries uch rVe 18y not 1 to 107- FTO ign i der | sion ral | lise | BEc. 25 (a) FEDERAL RESERVE ACT or commodities in the United States, and not transacting any business in the United States except such as in the judgment of the Federal Reserve Board may be inci- dental to its international or foreign . business: Pro- vided, however, That, except with the approval of the Federal Reserve Board, no corporation organized here- ander shall invest in any one corporation an amount in excess of 10 per centum of its own capital and surplus, except in a corporation engaged in the business of bank- ng, when 15 per centum of its capital and surplus may be so invested: Provided further, That no corporation organized hereunder shall purchase, own, or hold stock Or certificates of ownership in any other corporation organized hereunder or under the laws of any State which is in substantial competition therewith, or which holds stock or certificates of ownership in corporations which are in substantial competition with the purchasing ‘orporation. Nothing contained herein shall prevent corporations organized hereunder from purchasing and holding stock In any corporation where such purchase shall be necessary t0 prevent a loss upon a debt previously contracted in g00d faith; and stock so purchased or acquired in cor- Porations organized under this section shall within six Months from such purchase be sold or disposed of at Jublic or private sale unless the time to so dispose of same is extended by the Federal Reserve Board. No corporation organized under this section shall tarry on any part of its business in the United States except such as, in the judgment of the Federal Reserve Board, shall be incidental to its international or foreign business: And provided further, That except such as is incidented and preliminary to its organization no such corporation shall exercise any of the powers conferred by this section until it has been duly authorized by the Federal Reserve Board to commence business as a cor- ooration organized under the provisions of this section. No corporation organized under this section shall ngage in commerce or trade in commodities except as specifically provided in this section, nor shall it either directly or indirectly control or fix or attempt to control or fix the price of any such commodities. The charter of any corporation violating this provision shall be sub- iect to forfeiture in the manner hereinafter provided on ry /0) FEDERAL RESERVE ACT Suc. 25 (8 in this section. It shall be unlawful for any director, officer, agent, or employee of any such corporation to use or to conspire to use the credit, the funds, or the power of the corporation to fix or control the price of any such commodities, and any such person violating this provision shall be liable to a fine of not less than $1,000 and not exceeding $5,000 or imprisonment not less than one year and not exceeding five years, or both, in the discretion of the court. No corporation shall be organized under the provisions of this section with a capital stock of less than $2,000,000, one-quarter of which must be paid in before the corpora- tion may be authorized to begin business, and the re- mainder of the capital stock of such corporation shall be paid in installments of at least 10 per centum on the whole amount to which the corporation shall be limited as frequently as one installment at the end of each succeeding two months from the time of the commence- ment of its business operations until the whole of the capital stock shall be paid in: Provided, however, That whenever $2,000,000 of the capital stock of any corpora- tion is paid in the remainder of the corporation’s capital stock or any unpaid part of such remainder may, with the consent of the Federal Reserve Board and subject to such regulations and conditions as it may prescribe, be paid in upon call from the board of directors; such unpaid subscriptions, however, to be included in the maximum of 10 per centum of the national bank’s capital and surplus which a national bank is permitted under the provisions of this Act to hold in stock of cor- porations engaged in business of the kind described in this section and in section 25 of the Federal Reserve Act as amended: Provided further, That no such corporation ghall have liabilities outstanding at any one time upon its debentures, bonds, and promissory notes in excess of ten times its paid-in capital and surplus. The capital stock of any such corporation may be increased at any time, with the approval of the Federal Reserve Board, by a vote of two-thirds of its shareholders or by unanimous consent in writing of the shareholders without a meeting and without a formal vote, but any such increase of capital shall be fully paid in within ninety days after such approval; and may be reduced in like manner. provided that in no event shall 38 (8) tor, to the any this 000 han the ions 000, ora- ' Té~ J be the ited sach ace- the Chat ora- sital with ject ibe, such the nk’s tted cor- 4 in Act tion pon gq of pital _ at erve s or ders but in be hall Bre. 25 (a) ' FEDERAL RESERVE ACT it be less than $2,000,000. No corporation, except as herein provided, shall during the time it shall continue its operations withdraw or permit to be withdrawn, either in the form of dividends or otherwise, any portion of its capital. Any national banking association may Invest in the stoek of any corporation organized under the provisions of this section, but the aggregate amount of stock held in all corporations engaged in business of the kind described in this section and in sec- tion 25 of the Federal Reserve Act as amended shall not exceed 10 per centum of the subscribing bank’s capital and surplus. A majority of the shares of the capital stock of any such corporation shall at all times be held and owned by citizens of the United States, by corporations the con- trolling interest in which is owned by citizens of the United States, chartered under the laws of the United States or of a State of the United States, or by firms or companies, the controlling interest in which is owned by titizens of the United States. The provisions of section 8 of the act approved October 15, 1914," entitled “An act to supplement existing laws against unlawful re- straints and monopolies, and for other purposes,” as amended by the acts of May 15, 1916, and September 7, 1916, shall be construed to apply to the directors, other officers, agents, or employees of corporations organized under the provisions of this section: Provided, however, That nothing herein contained shall (1) prohibit any director or other officer, agent or employee of any-member bank, who has procured the approval of the Federal Reserve Board from serving at the same time as a director or other officer, agent or employee of any corporation ganized under the provisions of this section in whose capital stock such member bank shall have invested; or (2) prohibit any director or other officer, agent, or employee of any corporation organized under the pro- visions of this section, who has procured the approval of the Federal Reserve Board, from serving at the same time as a director or other officer, agent or employee of any other corporation in whose capital stock sueh first~ mentioned corporation shall have invested under the provisions of this section. W Phe Clavton Act. For text see Appendix, D. 69 B61 1) FEDERAL RESERVE ACT Sec. 25 (8) No member of the Federal Reserve Board shall be an officer or director of any corporation organized under the provisions of this section, or of any corporation en- gaged in similar business organized under the laws of any State, nor hold stock in any such corporation, and before entering upon his duties as a member of the Federal Reserve Board he shall certify under oath to the Secretary of the Treasury that he has complied with this requirement. Shareholders in any corporation organized under the provisions of this section shall be liable for the amount of their unpaid stock subscriptions. No such corpora- tion shall become a member of any Federal reserve bank. Should any corporation organized hereunder violate or fail to comply with any of the provisions of this sec- tion, all of its rights, privileges, and franchises derived herefrom may thereby be forfeited. Before any such corporation shall be declared dissolved, or its rights, privileges, and franchises forfeited, any noncompliance with, or violation of such laws shall, however, be deter- mined and adjudged by a court of the United States of competent jurisdiction, in a suit brought for that purpose in the district or territory in which the home office of such corporation is located, which suit shall be brought by the United States at the instance of the Federal Reserve Board or the Attorney General. Upon adjudi- cation of such noncompliance or violation, each director and officer who participated in, or assented to, the illegal act or acts, shall be liable in his personal or individual capacity for all damages which the said corporation shall have sustained in consequence thereof. No dissolution shall take away or impair any remedy against the cor- poration, its stockholders, or officers for any liability or penalty previously incurred. Any such corporation may go into voluntary liqui- dation and be closed by a vote of its shareholders owning two-thirds of its stock. Whenever the Federal Reserve Board shall become satisfied of the insolvency of any such corporation, it may appoint a receiver who shall take possession of all of the property and assets of the corporation and exercise the same rights, privileges, powers, and authority with respect thereto as are now exercised by receivers of national banks appointed by the Comptroller of the 35 (8) a An der en- 3 of and the to vith he unt ora- ink. late sec ved such ats, nce ‘ter- 5 of 0S y of ight eral adi- stor gal ual hall rion 0T- Cor 111= ng me it | of rise rth of the | Sze. 25 (2) FEDERAL RESERVE ACT Currency of the United States: Provided, however, That the assets of the corporation subject to the laws of other Countries or jurisdictions shall be dealt with in accordance With the terms of such laws. Every corporation organized under the provisions of this section shall hold a meeting of its stockholders annually upon a date fixed in its by-laws, such meeting to be held at its home office in the United States. Every ch corporation shall keep at its home office books con- taining the names of all stockholders thereof, and the Names and addresses of the members of its board of directors, together with copies of all reports made by it to the Federal Reserve Board. Every such corporation shall Make reports to the Federal Reserve Board at such times and in such form as it may require; and shall be subject lo examination once a year and at such other times as May be deemed necessary by the Federal Reserve Board by examiners appointed by the Federal Reserve Board, the cost, of such examinations, including the compensa- don of the examiners, to be fixed by the Federal Reserve Board and to be paid by the corporation examined. The directors of any corporation organized under the Provisions of this section may, semiannually, declare a dividend of so much of the net profits of the corporation 88 they shall judge expedient; but each corporation shall, before the declaration of a dividend, carry one-tenth of its net profits of the preceding half year to its surplus fund until the same shall amount to 20 per centum of its "pital stock. Any corporation organized under the provisions of this Section shall be subject to tax by the State within which 'ts home office is located in the same manner and to the Same extent as other corporations organized under the laws of that State which are transacting a similar char- Acter of business. The shares of stock in such corporation shall also be subject to tax as the personal property of the owners or holders thereof in the same manner and to the same extent as the shares of stock in similar State “Orporations. Any corporation organized under the provisions of this ction may at any time within the two years next Previous to the date of the expiration of its corporate ®Xistence, by a vote of the shareholders owning two- thirds of its stock, apply to the Federal Reserve Board 41632°—31——>5 ky 234) 64 FEDERAL RESERVE ACT SEC. 25 for its approval to extend the period of its corporate existence for a term of not more than twenty years, and upon certified approval of the Federal Reserve Board such corporation shall have its corporate existence for such extended period unless sooner dissolved by the act of the shareholders owning two-thirds of its stock, or by an Act of Congress or unless its franchise becomes for- feited by some violation of law. Any bank or banking institution, principally engage in foreign business, incorporated by special law of any State or of the United States or organized under the gen- eral laws of any State or of the United States and having an unimpaired capital sufficient to entitle it to become 8 corporation under the provisions of this section may, by the vote of the shareholders owning not less than two- thirds of the capital stock of such bank or banking asso- ciation, with the approval of the Federal Reserve Board, be converted into a Federal corporation of the kind authorized by this section with any name approved by the Federal Reserve Board: Provided, however, That said conversion shall not be in contravention of the State law. In such case the articles of association and organization certificate may be executed by a majority of the directors of the bank or banking institution, and the certificate shall declare that the owners of at least two-thirds of the capital stock have authorized the directors to make such certificate and to change or convert the bank or banking institution into a Federal corporation. A majority of the directors, after executing the articles of association and the organization certificate, shall have power to execute all other papers and to do whatever may be required to make its organization perfect-and complete as a Federal corporation. The shares of any such corporation may continue to be for the same amount each as they were before the conversion, and the directors may continue to be directors of the corporation until others are elected or appointed in accordance with the provisions of this section. When the Federal Reserve Board has given to such corporation a certificate that the provisions of this section have been complied with, such corporation and all its stockholders, officers, and employees, shall have the same powers and privileges, and shall be subject to the same duties, liabilities, and regulations, in all respects. as shall have been prescribed by this section for cor- porations originally organized hereunder. a5 (8) rate and oard 3 for 5 act wv by for- aged any gen- ving me 8 r, bY two~ 03S0~ ard, kind 1 by anid law. tion ators icate f the such king £ the and cute id to jeral may were slnue seted this an to this and have ++ 10 acts, ror= Bec. 25 (a) FEDERAL RESERVE ACT Every officer, director, clerk, employee, or agent of any corporation organized under this section who embezzles, abstracts, or willfully misapplies any of the moneys, funds, credits, securities, evidences of indebtedness or assets of any character of such corporation; or who, without au- thority from the directors, issues or puts forth any certifi- cate of deposit, draws any order or bill of exchange, makes any acceptance, assigns any note, bond, debenture, draft, bill of exchange, mortgage, judgment, or decree; or who makes any false entry in any book, report, or statement of such corporation with intent, in either case, to injure or defraud such corporation or any other company, body Politic or corporate, or any individual person, or to deceive any officer of such corporation, the Federal Reserve Board, Or any agent or examiner appointed to examine the afl airs of any such corporation; and every receiver of any such Corporation and every clerk or employee of such receiver who shall embezzle, abstract, or willfully misapply or wrongfully convert to his own use any moneys, funds, Credits, or assets of any character which may come into his Possession or under his control in the execution of his brust or the performance of the duties of his employment; and every such receiver or clerk or employee of such re- ceiver who shall, with intent to injure or defraud any per- Son, body politic or corporate, or to deceive or mislead the Federal Reserve Board, or any agent or examiner ap- Pointed to examine the affairs of such receiver, shall make iny false entry in any book, report, or record of any mat- ter connected with the duties of such receiver; and every Person who with like intent aids or abets any officer, di- rector, clerk, employee, or agent of any corporation or- ganized under this section, or receiver or clerk or em- Ployee of such receiver as aforesaid in any violation of this Section, shall upon conviction thereof be imprisoned for not less than two years nor more than ten years, and may also be fined not more than $5.000, in the discretion of the court. Whoever being connected in any capacity with any cor- Poration organized under this section represents in any Way that the United States is liable for the payment of any bond or other obligation, or the interest thereon, issued or incurred by any corporation organized here- under, or that the United States incurs any liability in respect of any act or omission of the corporation, shall Ag - FEDERAL RESERVE ACT Sgcs. 26, 2 be punished by a fine of not more than $10,000 and by imprisonment for not more than five years. Sec, 26. All provisions of law inconsistent with or super- seded by any of the provisions of this Act are to that extent and to that extent only hereby repealed: Provided, Nothing in this Act contained shall be construed to repeal the parity provision or provisions contained in an Act approved March fourteenth, nineteen hundred, entitled “An Act to define and fix the standard of value, to main- tain the parity of all forms of money issued or coined by the United States, to refund the public debt, and for other purposes,” and the Secretary of the Treasury may, for the purpose of maintaining such parity and to strengthen the gold reserve, borrow gold on the security of United States bonds authorized by section two of the Act last referred to or for one-year gold notes bearing interest at 2 rate of not to exceed three per centum per annum, or sell the same if necessary to obtain gold. When the funds of the Treausry on hand justify, he may purchase and retire such outstanding bonds and notes. Gi gmended bY Sec. 27. The provisions of the Act of May thirtieth. See oa neo nineteen hundred and eight, authorizing national currency 228). associations, the issue of additional national-bank circu- lation, and creating a National Monetary Commission, which expires by limitation under the terms of such Act on the thirtieth day of June, nineteen hundred and four- teen, are hereby extended to June thirtieth, nineteen hundred and fifteen, and sections fifty-one hundred and fifty-three, fifty-one hundred and seventy-two,’ fifty- one hundred and ninety-one, and fifty-two hundred and fourteen of the Revised Statutes of the United States. which were amended by the Act of May thirtieth, nineteen hundred and eight, are hereby reenacted to read as such sections read prior to May thirtieth, nineteen hundred and eight, subject to such amendments or modifications as are prescribed in this Act: Provided, however, That section aine of the Act first referred to in this section is hereby amended so as to change the tax rates fixed in said Act by making the portion applicable thereto read as follows: National banking associations having circulating notes secured otherwise than by bonds of the United States shall pay for the first three months a tax at the rate ol three per centum per annum upon the average amount te Amended as to sec. 5172, Revised Statutes, by act approved Mar. 3, 1919. See AD pendix, p. 82. 26, 27 d by aper- that nded, epeal Act titled nain- »d by other yr the sthen nited uv last Lata ir sell «ds of ratire tieth, rency >ircu- ssion, 1 Act four- sateen and ffty- i and tates, eteen such {and 18 are ction ereby 1 Act lows: notes tates, ite of 1ount 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 jo = FEDERAL RESERVE ACT 8c, 29, 30 of the Currency and such reduction has been approved by the said Comptroller of the Currency and by the Fed- eral Reserve Board, or by the organization committee pending the organization of the Federal Reserve Board. Sec. 29. If any clause, sentence, paragraph, or part of this Act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Act, but shall be confined in its operation to the clause, sen- tence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered. Sec. 30. The right to amend, alter, or repeal this Act is hereby expressly reserved. 29, 30 ved Fed- 1ttee of d. rt of rb of shall Act, sen- the yeen Act | APPENDIX PROVISIONS OF OTHER ACTS OF CONGRESS WHICH AFFECT THE FEDERAL RESERVE SYSTEM INTERLOCKING BANK DIRECTORATES Clayton Antitrust Act, approved October 15, 1914, as amended by the Kern amendment, approved May 15, 1916, as amended oe approved May 26, 1920, March 9, 1928, and March 2, Src. 8. That from and after two years from the date of the approval of this Act no person shall at the same ime be a director or other officer or employee of more than one bank, banking association, or trust company organized or operating under the laws of the United States, either of which has deposits, capital, surplus, and undivided profits aggregating more than $5,000,000; and Lo private banker or person who isa director in any bank or trust company organized and operating under the laws of a State, having deposits, capital, surplus, and undivided profits aggregating more than $5,000,000, shall be eligible to be a director in any bank or banking association organized or operating under the laws of the United States. The eligibility of a director, officer, or smployee under the foregoing provisions shall be deter- mined by the average amount of deposits, capital, sur- plus, and undivided profits as shown in the official state~ ments of such bank, banking association, or trust com- pany filed as provided by law during the fiscal year next preceding the date set for the annual election of directors, and when a director, officer, or employee has been elected or selected in accordance with the provisions of this Act it shall be lawful for him to continue as such for one year thereafter under said election or employment. No bank, banking association, or trust company or- zanized or operating under the laws of the United States, In any city or incorporated town or village of more than two hundred thousand inhabitants, as shown by the last —— er So RR. oti ——— rere ! Amended by secs. 25 and 25 (a) of Federal Reserve Act, as to corporations engaged n foreign banking and financial operations, See ante, pp. 53 and 55. 0 APPENDIX preceding decennial census of the United States, shall have as a director or other officer or employee any private banker or any director or other officer or employee of any other bank, banking association, or trust company located in the same place: Provided, That nothing in this section shall apply to mutual savings banks not having a capital stock represented by shares, to joint-stock land banks organized under the provisions of the Federal Farm Loan Act, or to other banking institutions which do no commercial banking business: Provided further, That a director or other officer or employee of such bank, bank- ing association, or trust company may bea director or other nfficer or employee of not more than one other bank or trust company organized under the laws of the United States or any State where the entire capital stock of one is owned by stockholders in the other: And provided further. That nothing contained in this section shall forbid a di- rector of class A of a Federal reserve bank, as defined in the Federal Reserve Act, from being an officer or director, or both an officer and director, in one member bank: And provided further, That nothing in this Act shall prohibit any private banker from being an officer, director, or em- ployee of not more than two banks, banking associations, or trust companies, or prohibit any officer, director, or em- ployee of any bank, banking association, or trust com- pany, or any class A director of a Federal reserve bank. from being an officer, director, or employee of not more than two other banks, banking associations, or trust companies, whether organized under the laws of the United States or any State, if in any such case there is in [orce a permit therefor issued by the Federal Reserve Board; and the Federal Reserve Board is authorized to issue such permit if in its judgment it is not incompatible with the public interest, and to revoke any such permit whenever it finds, after reasonable notice and oppor- tunity to be heard, that the public interest requires its revocation. The consent of the Federal Reserve Board may be procured before the person applying therefor has been elected as a class A director of a Federal reserve bank or as a director of any member bank, » i: - * Be When any person elected or chosen as a director or officer or selected as an employee of any bank or other ave vate o of any this ng a {and {eral h do That ank- ther kk or ited ne is ‘ther, a di- 1 the r, or And iibit em- ons, em- om- ank, nore rrust the is in erve d to tible rmit .pOT- 1 1s r be een anlk r or her APPENDIX corporation subject to the provisions of this Act is 2ligible at the time of his election or selection to act for such bank or other corporation in such capacity his ligibility to act in such capacity shall not be affected ind he shall not become or be deemed amenable to any )f the provisions hereof by reason of any change in the affairs of such bank or other corporation from whatso- ver cause, whether specifically excepted by any of the Provisions hereof or not, until the expiration of one year from the date of his election or emplovment. DEPOSIT OF POSTAL SAVINGS FUNDS IN MEMBER OR NONMEMBER BANKS Section 2 of the Postal Savings Act, approved June 25, 1910, as amended bv the act approved May 18, 1916 Sec. 2. That postal savings funds received under the Provisions of this Act shall be deposited in solvent banks, whether organized under National or State laws, and Whether member banks or not of the Federal Reserve System established by the Act approved December iwenty-third, nineteen hundred and thirteen, being sub- lect to National or State supervision and examination * * * The funds received at the postal savings depository offices in each city, town, village, and other locality shall be deposited in banks located therein substantially in proportion to the capital and surplus of ach such bank) willing to receive such deposits under the terms of this Act and the regulations made by authority thereof: Provided, however, If one or more member banks of the Federal Reserve System established by the Act approved December twenty-third, nineteen hundred and thirteen, exists in the city, town, village, or locality where the postal savings deposits are made, such leposits shall be placed in such qualified member banks substantially in proportion to the capital and surplus of each such bank, but if such member banks fail to qualify t0 receive such deposits, then any other bank located therein may, as hereinbefore provided, qualify and receive the same. If no such member bank and no other qualified bank exists in any city, town, village, or locality, or if none where such deposits are made will receive such deposits on the terms prescribed, then such funds shall be deposited under the terms of this Act in the bank most convenient, to such locality, * * * 71 72 APPENDIX DEPOSIT OF FUNDS OF FEDERAL LAND BANKS IN MEMBER BANKS—FEDERAL RESERVE BANKS AND MEMBER BANKS AUTHORIZED TO BUY AND SELL FARM LOAN BONDS Sections 5, 8, 13. and 27 of the Farm Loan Act, approved July 17, 1916 Spo. 5.— At least twenty-five per centum of that part of the capital of any Federal land bank for which stock is out- standing in the name of national farm loan associations shall be held in quick assets, and may consist of cash in the vaults of said land bank, or in deposits in member banks of the Federal reserve system, or in readily market- able securities which are approved under rules and regu- lations of the Federal Farm Loan Board: Provided, That not less than five per centum of such capital shall be nvested in United States Government bonds. GOVERNMENT DEPOSITARIES Sec. 6. That all Federal land banks and joint stock land banks organized under this Act, when designated for that purpose by the Secretary of the Treasury, shall be depositaries of public money, except receipts from cus- toms, under such regulations as may be prescribed by said Secretary; and they may also be employed as financial agents of the Government; and they shall perform all such reasonable duties, as depositaries of public money and financial agents of the Government, as may be required of them. And the Secretary of the Treasury shall require of the Federal land banks and joint stock land banks thus designated satisfactory security, by the deposit of United States bonds or other- wise, for the safekeeping and prompt payment of the public money deposited with them, and for the faithful performance of their duties as financial agents of the Government. No Government funds deposited under the provisions of this section shall be invested in mort- race loans or farm loan bonds. 73 APPENDIX IN ND TLL POWERS OF FEDERAL LAND BANKS Sec. 13. That every Federal land bank shall have power, subject to the limitations and requirements of this Aet— 17. he ut- ns 1m yer et- aUu- 1at ho | yek ‘or he 118= hy as all of nt, the ind ory rer- the ful the der The Fifth. To deposit its securities, and its current funds subject to check, with any member bank of the Federal Reserve System, and to receive interest on the same as May be agreed. INVESTMENT IN FARM LOAN BONDS Sree. 27. That farm loan bonds issued under the pro- visions of this Act by Federal land banks or joint stock and banks shall be a lawful investment for all fiduciary and trust funds, and may be accepted as security for all dublic deposits. Any member bank of the Federal Reserve System may buy and sell farm loan bonds issued under the authority of this Act. Any Federal reserve bank may buy and sell farm loan donds issued under this Act to the same extent and sub- ject to the same limitations placed upon the purchase and sale by said banks of State, county, district, and munici- pal bonds under subsection (b) of section fourteen of the Federal Reserve Act approved December twnety-third, nineteen hundred and thirteen. DEPOSIT OF PROCEEDS OF SALE OF LIBERTY BONDS Section 7 of the First Liberty Bond Act, approved April 24, 1917 2 Sgc. 7. That the Secretary of the Treasury, in his dis- “retion, is hereby authorized to deposit in such banks and ‘rust companies as he may designate the proceeds, or any part thereof, arising from the sale of the bonds and cer- ificates of indebtedness authorized by this Act, or the bonds previously authorized as described in section four of this Act, and such deposits may bear such rate of interest and be subject to such terms and conditions as the Secretary of the Treasury may prescribe: Provided, That the amount so deposited shall not in any case exceed the amount withdrawn from any such bank or trust com- pany and invested in such bonds or certificates of indebt- 1 This section in effect amends see. 15, Federal Reserve Act, which relates to Gov- srnment deposits: also sec. 19, which prescribes reserve requirements of member banks. {.. APPENDIX edness plus the amount so invested by such bank or trust company, and such deposits shall be secured in the man- ner required for other deposits by section fifty-one hun- dred and fifty-three, Revised Statutes, and amendments thereto: Provided further, That the provisions of section fifty-one hundred and ninety-one of the Revised Statutes, as amended by the Federal Reserve Act and the amend- ments thereof, with reference to the reserves required to be kept by national banking associations and other member banks of the Federal Reserve System, shall not apply to deposits of public moneys by the United States in designated depositaries. Section 8 of the Second Liberty Bond Act, approved September 24. 1917 8 Sec. 8. That the Secretary of the Treasury, in his discretion, is hereby authorized to deposit, in such incor- porated banks and trust companies as he may designate, the proceeds, or any part thereof, arising from the sale of the bonds and certificates of indebtedness and war- savings certificates authorized by this Act, and such deposits shall bear such rate or rates of interest, and shall be secured in such manner, and shall be made upon and subject to such terms and conditions, as the Secretary of the Treasury may from time to time prescribe: Pro- vided, That the provisions of section fifty-one hundred and ninety-one of the Revised Statutes, as amended by the Federal Reserve Act, and the amendments thereof, with reference to the reserves required to be kept by national banking associations and other member banks of the Federal Reserve System, shall not apply to deposits of public moneys by the United States in designated depositaries, The Secretary of the Treasury is hereby authorized to designate depositaries in foreign countries, with which shall be deposited all public money which it may be necessary or desirable to have on deposit in such countries to provide for current disbursements to the military and naval forces of the United States and to the diplomatic and consular and other representatives of the United States in and about such countries until six months after the termination of the war between the United States and the Imperial German Government, and to prescribe the terms and conditions of such deposits. ? This section in effect amends sec. 15, Federal Reserve Act, which relates to Gov- arnment deposits: also see. 19, whieh prescribes reserve requirements of member banks rust 1an- un- nts “ion tes, nd- red her aot 1{es a4, his 300- ate, sale rar- 1ch and Hon Ary ‘ro- red by »of, by aks sits ted 3 by les, vit 1ch the the the six the nt, fa APPENDIX Section 8 of the Third Liberty Bond Act, approved April 4, 19184 Sec. 8. That the Secretary of the Treasury, in his dis- retion, is hereby authorized to deposit, in such incor- porated banks and trust companies as he may designate, ‘he proceeds, or any part thereof, arising from the sale of the bonds and certificates of indebtedness and war-savings certificates authorized by this Act, and arising from the Payment of income and excess profits taxes, and such deposits shall bear such rate or rates of interest, and shall %¢ secured in such manner, and shall be made upon and subject to such terms and conditions as the Secretary of the Treasury may from time to time prescribe: Provided, That, the provisions of section fifty-one hundred and Oinety-one of the Revised Statutes, as amended by the Federal Reserve Act, and the amendments thereof, with teference to the reserves required to be kept by national banking associations and other member banks of the Federal Reserve System, shall not apply to deposits of public moneys by the United States in designated de- positaries. The Secretary of the Treasury is hereby authorized to designate depositaries in foreign countries with which shall be deposited all public money which it may be necessary or desirable to have on deposit in such sountries to provide for current disbursements to the military and naval forces of the United States and to the diplomatic and consular and other representatives of the United States in and about such countries until six months after the termination of the war between the United States and the Imperial German Government, and to preserihe the terms and conditions of such deposits. TREASURY BILLS AND CERTIFICATES OF INDEBTED- NESS Section 5 of the Second Liberty Bond Act, as amended by the act of Tune 17. 1929 Src. 5. (a) That in addition to the bonds and notes authorized by sections 1 and 18 of this Act, as amended, the Secretary of the Treasury is authorized to borrow from time to time, on the credit of the United States, for the purposes of this Act, to provide for the purchase or redemption before maturity of any certificates of indebt- 4 This section further amends sec. 15, Federal Reserve Act, which relates to Govern» nent deposits, and see. 19. which prescribes reserve requirements of member banks. 7 oy- nks. APPENDIX edness or Treasury bills issued hereunder, and to meet public expenditures authorized by law, such sum or sums as in his judgment may be necessary, and to issue therefor (1) certificates of indebtedness of the United States at not less than par and at such rate or rates of interest, payable at such time or times as he may prescribe; or 2) Treasury bills on a discount basis and payable at maturity without interest. Treasury bills to be issued hereunder shall be offered for sale on a competitive basis, under such regulations and upon such terms and condi tions as the Secretary of the Treasury may prescribe, and the decisions of the Secretary in respect of any issue shall be final. Certificates of indebtedness and Treasury bills issued hereunder shall be in such form or forms and subject to such terms and ‘conditions, shall be payable at such time not exceeding one year from the date of issue, and may be redeemable before maturity upon such terms and conditions as the Secretary of the Treasury may prescribe. Treasury bills issued hereunder shall not be acceptable before maturity in payment of interest or of principal on account of obligations of foreign governments held by the United States of America. The sum of the par value of such certificates and Treasury bills out- standing hereunder and under section 6 of the First Liberty Bond Act shall not at any one time exceed in the aggregate $10,000,000,000. (b) All certificates of indebtedness and Treasury bills issued hereunder (after the date upon which this subdi- vision becomes law) shall be exempt, both as to principal and interest, from all taxation (except estate and inherit- ance taxes) now or hereafter imposed by the United States, any State, or any of the possessions of the United States, or by any local taxing authority; and the amount of discount at which Treasury bills are originally sold by the United States shall be considered to be interest within she meaning of this subdivision. (c) Wherever the words “bonds and notes of the United States,” or “bonds and notes of the Government of the United States,” or “bonds or notes of the United States” are used in the Federal Reserve Act, as amended, they shall be held to include certificates of indebtedness and Treasury bills issued hereunder. 77 APPENDIX nee ums ~efor .g ab rest, or s ab sued asls, ndi- ribe, sue ury and a at sue, rms nay ; be r of nts the wit- irst the | ills adi- pal rit- ited ited mt by hin ‘he ant Fad ad. OAS UNITED STATES REVISED STATUTES —MISCELLANEOUS SECTIONS CORPORATE POWERS OF NATIONAL BANKS Section 5136, Revised Statutes, as amended by the act of July 1, 1922, and by the act of February 25, 1927 Sec. 5136. Upon duly making and filing articles of as- sociation and an organization certificate, the association shall become, as from the date of the execution of its Organization certificate, a body corporate, and as such, and in the name designated in the organization certifi- *ate, it shall have power— First. To adopt and use a corporate seal. Second. To have succession from the date of the ap- Proval of this Act, or from the date of its organization if organized after such date of approval until such time as it be dissolved by the act of its shareholders owning two- thirds of its stock, or until its franchise becomes forfeited by reason of violation of law, or until terminated by either 8 general or a special Act of Congress or until its affairs be placed in the hands of a receiver and finally wound up 5y him. Third. To make contracts. Fourth. To sue and be sued, complain and defend, in my court of law and equity, as fully as natural persons. Fifth, To elect or appoint directors, and by its board of directors to appoint a president, vice president, cashier, and other officers, define their duties, require bonds of thern and fix the penalty thereof, dismiss such officers or any of them at pleasure, and appoint others to fill their laces, Sixth. To prescribe, by its board of directors, by-laws 10t inconsistent with law, regulating the manner in which its stock shall be transferred, its directors elected xr appointed, its officers appointed, its property trans- ‘erred, its general business conducted, and the privileges zranted to it by law exercised and enjoyed. Seventh. To exercise by its board of directors, or duly authorized officers or agents, subject to law, all such incidental powers as shall be necessary to carry on the business of banking; by discounting and negotiating promissory notes, drafts, bills of exchange, and other evidences of debt; by receiving deposits; by buying and selling exchange, coin, and bullion; by loaning money on fo ” APPENDIX personal security; and by obtaining, issuing, and ecir culating notes according to the provisions of this title Provided, That the business of buying and selling invest: ment securities shall hereafter be limited to buying and selling without recourse marketable obligations evidene- ing indebtedness of any person, copartnership, association. or corporation, in the form of bonds, notes and/or deben- tures, commonly known as investment securities, unde’ such further definition of the term “investment securities’ 88 may by regulation be prescribed by the Comptrolle: of the Currency, and the total amount of such investment securities of any one obligor or maker held by such asso- ciation shall at no time exceed 25 per centum of the emount of the capital stock of such association actually paid in and unimpaired and 25 per centum of its unim- paired surplus fund, but this limitation as to total amount shall not apply to obligations of the United States, or general obligations of any State or of any political sub- division thereof, or obligations issued under authority of the Federal Farm Loan Act: And provided further, That in carrying on the business commonly known as the safe deposit business no such association shall invest in the capital stock of a corporation organized under the law of any State to conduct a safe deposit business in an amount in excess of 15 per centum of the capital stock of such association actually paid in and unimpaired and 15 per centum of its unimpaired surplus. But no association shall transact any business except such as is incidental and necessarily preliminary to its organization, until it has been authorized by the Comp- troller of the Currency to commence the business of banking. FOWER OF NATIONAL BANK TO HOLD REAL PROPERTY Section 5137, Revised Statutes, as amended by the act of Febru. ary 25, 1927 Sec. 5137. A national banking association may pur chase, hold, and convey real estate for the following pur- poses, and for no others: First. Such as shall be necessary for its accommoda- tion in the transaction of its business. Second. Such as shall be mortgaged to it in good faith by way of security for debts previously contracted Wd cir! 5 title: invest ig and idenc- ation, leben- under rities” troller tment . 88s80- f the tually anim- nount 28, or sub- ity of That > safe n the law n an ck of d 15 cept 0 its ymp- a of 'RTY hrir- DUTr~ 111 Pe dd ED — wth APPENDIX Third. Such as shall be conveyed to it in satisfaction of debts previously contracted in the course of its dealings. Fourth. Such as it shall purchase at sales under judg- ments, decrees, or mortgages held by the association, or shall purchase to secure debts due to it. But no such association shall hold the possession of any real estate under mortgage, or the title and possession of any real estate purchased to secure any debts due to it, for a longer period than five years. CAPITAL REQUIREMENTS OF NATIONAL BANKS Section 5138, Revised Statutes, as amended by the acts of March 14, 1900, and February 25, 1927 Sec. 5138. No national banking association shall be organized with a less capital than $100,000, except that such associations with a capital of not less than $50,000 may, with the approval of the Secretary of the Treasury, “6 organized in any place the population of which does 10t exceed six thousand inhabitants, and except that such associations with a capital of not less than $25,000 May, with the sanction of the Secretary of the Treasury, de organized in any place the population of which does not exceed three thousand inhabitants. No such 1ssociation shall be organized in a city the population of which exceeds fifty thousand persons with a capital of less than $200,000, except that in the outlying districts of such a city where the State laws permit the organiza- tion of State banks with a capital of $100,000 or less, national banking associations now organized or hereafter organized may, with the approval of the Comptroller of the Currency. have a capital of not less than $100.000. NATIONAL BANKS AS DEPOSITARIES OF PUBLIC MONEYS Section 5153, Revised Statutes, as amended by acts of March 3, 1901, March 4, 1907, and June 25, 1930 Sec. 5153. All national banking associations, desig- 1ated for that purpose by the Secretary of the Treasury, shall be depositaries of public money, under such regula- tions as may be prescribed by the Secretary; and they may also be employed as financial agents of the Government; and they shall perform all such reasonable duties, as depositaries of public money and financial agents of the Government, as may be required of them. The Secretary 41632°—31—6 75 APPENDIX of the Treasury shall require the associations thus desig- nated to give satisfactory security, by the deposit of United States bonds and otherwise, for the safe-keeping and prompt payment of the public money deposited with them, and for the faithful performance of their duties 8s financial agents of the Government: Provided, That the Secretary shall, on or before the first of J anuary of each year, make a public statement of the securities required during that year for such deposits. And every associa- tion so designated as receiver or depositary of the public money shall take and receive at par all of the national currency bills, by whatever association issued, which have been paid into the Government for internal revenue, or for loans or stocks: Provided, That the Secretary of the Treasury shall distribute the deposits herein provided for. as far as practicable, equitably between the different States and sections. Any association may, upon the deposit with it of public money of a State or any political subdivision thereof, give security for the safe-keeping and prompt payment of the money so deposited, of the same kind as is authorized by the law of the State in which such association is located in the case of other banking institutions in the State CONDITIONS GOVERNING ESTABLISHMENT OF BRANCHES BY NATIONAL BANKS Section 5155, Revised Statutes, as amended by the act approved February 25, 1927 Sec. 5155. The conditions upon which a national bank- ing association may retain or establish and operate a branch or branches are the following: (a) A national banking association may retain and operate such branch or branches as it may have in lawful operation at the date of the approval of this Act, and any national banking association which has continuously maintained and operated not more than one branch for a period of more than twenty-five years immediately preceding the approval of this Act may continue to maintain and operate such branch. (b) If a State bank is hereafter converted into or con- solidated with a national banking association, or if two or more national banking associations are consolidated, such converted or consolidated association. may, with respect to any of such banks, retain and operate any of osig- bof ping with gq a8 the wach ired .cig- blic nal ave or the for, ant hlic rive the zed tad | IRS vad rea 3 0 1nd ful ny sly for aly tn APPENDIX their branches which may have been in lawful operation by any bank at the date of the approval of the Act. (c) A national banking association may, after the date of the approval of this Act, establish and operate new ranches within the limits of the city, town, or village in which said association is situated if such establishment ind operation are at the time permitted to State banks by the law of the State in question. (d) No branch shall be established after the date of the Approval of this Act within the limits of any city, town, IT village of which the population by the last decennial lensus was less than twenty-five thousand. No more than one such branch may be thus established where the population, so determined, of such municipal unit does 10% exceed fifty thousand; and not more than two such branches where the population docs not exceed one hundred thousand. In any such municipal unit where the population exceeds one hundred thousand the deter- ination of the number of branches shall be within the liscretion of the Comptroller of the Currency. (¢) No branch of any national banking association shall be established or moved from one location to another without first obtaining the consent and approval of the Comptroller of the Currency. (f) The term “branch” as used in this section shall be held to include any branch bank, branch office, branch agency, additional office, or any branch place of business located in any State or Territory of the United States or in the District of Columbia at which deposits are received, or checks paid, or money lent. (g) This section shall not be construed to amend or repeal section 25 of the Federal Reserve Act, as amended, authorizing the establishment. by national banking asso- “lations of branches in foreign countries, or dependencies, or insular possessions of the United States. (h) The words “State bank,” “State banks,” “bank,” or “banks,” as used in this section, shall be held to include trust companies, savings banks, or other such corporations or institutions carrying on the banking business under the authority of State laws. 5 i mn- wo ed, ith Af i APPENDIX DENOMINATIONS AND FORM OF NATIONAL BANK CIRCU’ LATING NOTES Section 5172, Revised Statutes, as amended by the act approved March 3, 1919, amending the Federal Reserve Act ® Sec. 5172. That in order to furnish suitable notes for circulation, the Comptroller of the Currency shall, under the direction of the Secretary of the Treasury, cause plates and dies to be engraved, in the best manner to guard against counterfeiting and fraudulent alterations and shall have printed therefrom and numbered such quantity of circulating notes in blank, or bearing en- graved signatures of officers as herein provided, of the denominations of $1, $2, $5, $10, $20, $50, $100, $500, and $1,000, as may be required to supply the associations entitled to receive the same. Such notes shall express upon their face that they are secured by United States bonds deposited with the Treasurer of the United States, by the written or engraved signatures of the Treasurer and Register, and by the imprint of the seal of the Treasury; and shall also express upon their face the promise of the association receiving the same to pay on demand, attested by the written or engraved signatures of the president or vice president and cashier; and shall bear such devices and such other statements and shall be in such form as the Secretary of the Treasury shall, by regulation, direct. PLACE OF BUSINESS OF NATIONAL BANK Section 5190, Revised Statutes, as amended by the act approved February 25, 1027 Sec. 5190. The general business of each national bank- ing association shall be transacted in the place specified in its organization certificate and in the branch or branches, if any, established or maintained by it in accordance with the provisions of section 5155 of the Revised Statutes, as amended by this Act. LIMITATION ON LOANS OF NATIONAL BANK TO ONE PERSON Section 5200, Revised Statutes, as amended by the act of February 25, 1927 Sec. 5200. The total obligations to any national banking association of any person, copartnership, asso- 5 This act in effect amends sec. 27 of the Federal Reserve Act. See ante, D. 66. APPENDIX CU" oved . for 1der use r fo ons, uch en- the 300, ons ress ates tes, wer the the on res hall I be by ved nk- rad OT in he | ON nal [QO ation, or corporation shall at no time exceed 10 per entum of the amount of the capital stock of such associa- bon actually paid in and unimpaired and 10 per centum of its unimpaired surplus fund. The term “obligations” shall mean the direct lability of the maker or acceptor of Paper discounted with or sold to such association and the lability of the indorser, drawer, or guarantor who obtains 2 loan from or discounts paper with or sells paper under his guaranty to such association and shall include in the tase of obligations of a copartnership or association the bligations of the several members thereof. Such itation of 10 per centum shall be subject to the fol- OWing exceptions: (1) Obligations in the form of drafts or bills of exchange Irawn in good faith against actually existing values shall 10t be subject under this section to any limitation based pon such capital and surplus. (2) Obligations arising out of the discount of commer- “lal or business paper actually owned by the person, “Opartnership, association, or corporation negotiating the same shall not be subject under this section to any Imitation based upon such capital and surplus. ®) Obligations drawn in good faith against actually *Xisting values and secured by goods or commodities in Process of shipment shall not be subject under this section 'o any limitation based upon such capital and surplus. (4) Obligations as indorser or guarantor of notes, other than commercial or business paper excepted under (2) hereof, having a maturity of not more than six months, and owned by the person, corporation, association, or *opartnership indorsing and negotiating the same, shall % subject under this section to a limitation of 15 per tentum of such capital and surplus in addition to such 10 per centum of such capital and surplus. (5) Obligations in the form of banker’s acceptances of dther banks of the kind described in section 13 of the Federal Reserve Act shall not be subject under this section to any limitation based upon such capital and surplus. _ (6) Obligations of any person, copartnership, associa- lion or corporation, in the form of notes or drafts secured by shipping documents, warehouse receipts or other such documents transferring or securing title covering readily marketable nonperishable staples when such property is -~ 4 APPENDIX fully covered by insurance, if it is customary to insure such staples, shall be subject under this section to limitation of 15 per centum of such capital and surplus in addition to such 10 per centum of such capital and surplus when the market value of such staples securing such obligation is not at any time less than 115 pe! centum of the face amount of such obligation, and to a? additional increase of limitation of 5 per centum of such capital and surplus in addition to such 25 per centum of such capital and surplus when the market value of such staples securing such additional obligation is not at any time less than 120 per centum of the face amount of such additional obligation, and to a further additional increase of limitation of 5 per centum of such capital and surplus in addition to such 30 per centum of such capital and surplus when the market value of such staples securing such additional obligation is not at any time less than 125 per centum of the face amount of such addi- tional obligation, and to a further additional increase of limitation of 5 per centum of such capital and surplus in addition to such 35 per centum of such capital and surplus when the market value of such staples securing such additional obligation is not at any time less than 130 per centum of the face amount of such additional obliga- tion, and to a further additional increase of limitation of 5 per centum of such capital and surplus in addition to such 40 per centum of such capital and surplus when the market value of such staples securing such additional obligation is not at any time less than 135 per centum of the face amount of such additional obligation, and to & further additional increase of limitation of 5 per centum of such capital and surplus in addition to such 45 per centum of such capital and surplus when the market value of such staples securing such additional obligation is not at any time less than 140 per centum of the face amount of such additional obligation, but this exception shall not apply to obligations of any one person, copartnership, association or corporation arising from the same trans- actions and/or secured upon the identical staples for more than ten months, (7) Obligations of any person, copartnership, associa- tion, or corporation in the form of notes or drafts secured by shipping documents or instruments transferring or securing title covering livestock or giving a lien on live- nsure to 8 irplus 1 and uring 5 per to an such mm of such 5 any at of ional pital such aples os less addi- se of gs in rplus such 130 liga~ m of n to | the onal m of 0 8 tum per alue not yunb not hip, InS- for cla- red - or (Te | APPENDIX tock when the market value of the livestock securing the bligation is not at any time less than 115 per centum of ‘he face amount of the notes’ covered by such documents ‘hall be subject under this section to a limitation of ‘5 per centum of such capital and surplus in addition to Such 10 per centum of such capital and surplus. (8) Obligations of any person, copartnership, associa- lon, or corporation in the form of notes secured by not &ss than a like amount of bonds or notes of the United States issued since April 24, 1917, or certificates of in- lebtedness of the United States, shall (except to the *Xtent, permitted by rules and regulations prescribed by he Comptroller of the Currency, with the approval of the Secretary of the Treasury) be subject under this section to 3 limitation of 15 per centum of such capital and surplus In addition to such 10 per centum of such capital and Surplus, RESTRICTION ON NATIONAL BANK'S TOTAL INDEBTEDNESS Section 5202, Revised Statutes, as amended by the acts of Decem- ber 23, 1913; September 7, 1916; April 5, 1918; October 22, 1919; and February 25, 1927 Sec. 5202. No national banking association shall at Any time be indebted, or in any way liable, to an amount *xceeding the amount of its capital stock at such time Actually paid in and remaining undiminished by losses Or otherwise, except on account of demands of the nature following : First. Notes of circulation. Second. Moneys deposited with or collected by the issociation. Third. Bills of exchange or drafts drawn against Money actually on deposit to the credit of the association, 7 due thereto. Fourth. Liabilities to the stockholders of the associa~ flon for dividends and reserve profits. Fifth. Liabilities incurred under the provisions of the Federal Reserve Act. Sixth. Liabilities incurred under the provisions of the War Finance Corporation Act. Seventh. Liabilities created by the indorsement of accepted bills of exchange payable abroad actually Owned by the indorsing bank and discounted at home Or abroad. R53 L4 APPENDIX Eighth. Liabilities incurred under the provisions © section 202 of Title IT of the Federal Farm Loan Aet approved July 17, 1916, as ‘amended by the Agricultur® Credits Act of 1923. UNITED STATES NOTES NOT TO BE HELD AS COLLATERA! Sec. 5207. No association shall hereafter offer Of receive United States notes or national-bank notes 8¢ security or as collateral security for any loan of money: or for a consideration agree to withhold the same from use, or offer or receive the custody or promise of custody of such notes as security, or as collateral security, or con- sideration for any loan of money. Any association offending against the provisions of this section, shall be deemed guilty of a misdemeanor, and shall be fined not more than one thousand dollars and a further sum equal to one-third of the money so loaned. The officer of officers of any association who shall make any such loan shall be liable for a further sum equal to one-quarter of the money loaned; and any fine or penalty incurred by # violation of this section shall be recoverable for the benefit of the party bringing such suit. PENALTIES FOR FALSE CERTIFICATION, EMBEZZLEMENT. ETC. Section 5208, Revised Statutes, as amended by the act of Septem- ber 26, 1918, and by the act of February 25, 1927, and section 5209, Revised Statutes. ss amended bv the act of September 26. 1918. Suc. 5208. It shall be unlawful for any officer, director, agent, or employee of any Federal reserve bank, or any member bank as defined in the Act of December 23, 1913, known as the Federal Reserve Act, to certify any check drawn upon such Federal reserve bank or member bank unless the person, firm, or corporation drawing the check has on deposit with such Federal reserve bank or member bank, at the time such check is certified, an amount of money not less than the amount specified in such check. Any check so certified by a duly authorized officer, director, agent, or employee shall be a good and valid obligation against such Federal reserve bank or member bank; but the act of any officer, director, agent, or employee of any such Federal reserve bank or member 18 of Act 1+ ral aRADL 7 Of ag a8 yey, from stody con- ation Al be ' not qual r OI loan ar of vy a the ANT, Fer] tion ~ 928. ‘tor, any 23, any ber the or an i in zed 1nd nr nt, Nar | APPENDIX bank in violation of this section shall, in the discretion f the Federal Reserve Board, subject such Federal "serve bank to the penalties imposed by section 11, sub- ction (h) of the Federal Reserve Act, and shall subject Such member bank, if a national bank, to the liabilities nd proceedings on the part of the Comptroller of the “Urrency provided for in section 5234, Revised Statutes, nd shall, in the discretion of the Federal Reserve Board, Subject, any other member bank to the penalties imposed bY section 9 of said Federal Reserve Act for the violation of any of the provisions of said Act. Any officer, di- "ector, agent, or employee of any Federal reserve bank OT member bank who shall willfully violate the provisions of this section, or who shall resort to any device, or feceive any fictitious obligation, directly or collaterally, @ order to evade the provisions thereof, or who shall *ertify a check before the amount thereof shall have been regularly deposited in the bank by the drawer thereof, shall be deemed guilty of a misdemeanor and shall, on conviction thereof in any district court of the United States, be fined not more than $5,000, or shall be ‘mprisoned for not more than five years, or both, in the discretion of the court. Sec. 5209. Any officer, director, agent, or employee of iny Federal reserve bank, or of any member bank as defined in the Act of December twenty-third, nineteen hundred and thirteen, known as the Federal reserve Act, who embezzles, abstracts, or willfully misapplies any of the moneys, funds, or credits of such Federal reserve bank or member bank, or who, without authority from ‘he directors of such Federal reserve bank or member dank, issues or puts in circulation any of the notes of Such Federal reserve bank or member bank, or who, without such authority, issues or puts forth any certifi date of deposit, draws any order or bill of exchange, Makes any acceptance, assigns any note, bond, draft, bill of exchange, mortgage, judgment, or decree, or who makes any false entry in any book, report, or statement of such Federal reserve bank or member bank, with Intent in any case to injure or defraud such Federal re- serve bank or member bank, or any other company, body politic or corporate, or any individual person, or to deceive any officer of such Federal reserve bank or member bank, or the Comptroller of the Currency, or 7 IK APPENDIX any agent or examiner appointed to examine the affair of such Federal reserve bank or member bank, or the Federal Reserve Board ; and every receiver of a nationdl banking association who, with like intent to defraud of injure, embezzles, abstracts, purloins, or willfully mis: applies any of the moneys, funds, or assets of his trust. and every person who, with like intent, aids or abets. any officer, director, agent, employee, or receiver in any violation of this section shall be deemed guilty of a misde- meanor, and upon conviction thereof in any district court of the United States shall be fined not more than $5,000 or shall be imprisoned for not more than five years, Of both, in the discretion of the court. Any Federal reserve agent, or any agent or employe? of such Federal reserve agent, or of the Federal Reserve Board, who embezzles, abstracts, or willfully misapplies any moneys, funds, or securities intrusted to his care, 07 without complying with or in violation of the provisions of the Federal reserve Act, issues or puts in circulation any Federal reserve notes shall be guilty of a misde- meanor and upon conviction in any district court of the United States shall be fined not more than $5,000 or im-~ prisoned for not more than five years, or both, in the discretion of the court. I'WO-THIRDS VOTE REQUIRED FOR LIQUIDATION OF NATIONAL BANK Sec. 5220. Any association may go into liquidation and be closed by the vote of its shareholders owning two- thirds of its stock. NOTICE OF VOLUNTARY LIQUIDATION OF NATIONAL BANE SEc. 5221. Whenever a vote is taken to go into liquida- tion it shall be the duty of the board of directors to cause notice of this fact to be certified, under the seal of the association by its president or cashier, to the Comp- troller of the Currency, and publication thereof to be made for a period of two months in a newspaper published in the City of New York, and also in a newspaper pub- lished in the city or town in which the association is located, or if no newspaper is there published, then in the newspaper published nearest thereto, that the association is closing up its affairs, and notifying the hold- fairs or the tional ind or mis~ trusty 1bets 1 any iisde- court 5,000 a. of lovee serve plies 0, or sions tion isde- * the m- the LOT TO ANK da~ 1S8 the np- be hed ub- is en the 1d. APPENDIX I$ of its notes and other creditors to present the notes nd other ¢laims against the association for payment. SUBTREASURIES ABOLISHED—TRANSFER OF CER- TAIN FUNCTIONS TO FEDERAL RESERVE BANKS ction 3595 of the Revised Statutes of the United i as amended, providing for the appointment of an stant Treasurer of the United States at Boston, New ; ork, Philadelphia, Baltimore, New Orleans, Saint ous, San Francisco, Cincinnati, and Chicago, and all Ws or parts of laws so far as they authorize the estab- shment or maintenance of offices of such Assistant Treasurers or of Subtreasuries of the United States are lereby repealed from and after July 1, 1921; and the >ecretary of the Treasury is authorized and directed to liscontinue from and after such date or at such earlier late or dates as he may deem advisable, such subtreas- tries and the exercise of all duties and functions by such ‘SSistant treasurers or their offices. The office of each issistant treasurer specified above and the services of Wy officers or other employees assigned to duty at his lice shall terminate upon the discontinuance of the Unctions of that office by the Secretary of the Treasury. } The Secretary of the Treasury is hereby authorized, in hi discretion, to transfer any or all of the duties and lunctions performed or authorized to be performed by the assistant treasurers above enumerated, or their offices, to the Treasurer of the United States or the mints Or assay offices of the United States, under such rules and regulations as he may prescribe, or to utilize any of ‘he Federal reserve banks acting as depositaries or fiscal agents of the United States, for the purpose of perform- ng any or all of such duties and functions, notwithstand- ng the limitations of section 15 of the Federal reserve Act, as amended, or any other provisions of law: Provided, That if any moneys or bullion, constituting part of the rust funds or other special funds heretofore required by 'aw to be kept in Treasury offices, shall be deposited with any Federal reserve bank, then such moneys or bullion shall by such bank be kept separate and distinct from the assets, funds, and securities of the Federal reserve bank and be held in the joint custody of the Federal reserve 2! Fi, APPENDIX agent and the Federal reserve bank: Provided Further That nothing in this section shall be construed to deny the right of the Secretary of the Treasury to use member banks as depositaries as heretofore authorized by law. The Secretary of the Treasury is hereby authorized t0 assign any or all the rooms, vaults, equipment, and safes or space in the buildings used by the subtreasuries to any Federal reserve bank acting as fiscal agent of the United States. AGRICULTURAL CREDITS ACT OF 1923, APPROVED MARCH 4, 1923, AS AMENDED BY THE ACTS OF MARCH 4, 1925. FEBRUARY 8. 1927. AND JUNE og 1930 Tiree I.—FEpERAL INTERMEDIATE CREDIT BANKS ‘Amendments to Federal Farm Loan Act) DISCOUNTS AND LOANS Sec. 202.5 (a) That Federal Intermediate Credit Banks: when chartered and established, shall have power, subject solely to such restrictions, limitations, and conditions 89 may be imposed by the Federal Farm Loan Board not inconsistent with the provisions of this Act,— (1) To discount for, or purchase from, any national sank, and/or any State bank, trust company, agricultural credit corporation, incorporated live-stock loan company, savings institution, cooperative bank, cooperative credit or marketing association of agricultural producers, organized under the laws of any State or of the Govern- ment of the United States, and/or any other Federal [ntermediate Credit Bank, with its indorsement, any note, draft, bill of exchange, debenture, or other such obligation the proceeds of which have been advanced or used in the first instance for any agricultural purpose or for the raising, breeding, fattening, or marketing of live stock; and to make loans or advances direct to any such organization, secured by such obligations. (2) To buy or sell, with or without recourse, debentures issued by any other Federal Intermediate Credit Bank: and ¢ This section was added to the Federal Farm Loan Act by section 2 of the Agriculturs] Credits Act of 1092 rther deny mber 7. ad tO safes y any ted WED oF 1930 CQ aks, ject 4 a8 wot nal ural any; edit ers, arn- eral any auch 1 or 3 or ive aeh res nk: tural APPENDIX (3) To make loans or advances direct to any cooper- ative association organized under the laws of any State and composed of persons engaged in producing, or pro- ducing and marketing, staple agricultural products, or live stock, if the notes or other such obligations repre- senting such loans are secured by warehouse receipts, ind /or shipping documents covering such products and/or mortgages on live stock: Provided, That no such loan or tdvance shall exceed 75 per centum of the market value of the products covered by said warehouse receipts and/or shipping documents, or of the live stock covered by said mortgages. (b) No paper shall be purchased from or discounted for any national bank, State bank, trust company, or savings ‘stitution under this section, if the amount of such paper added to the aggregate liabilities of such national bank, State bank, trust company or savings institution, whether direct or contingent (other than bona fide deposit lia- bilities), exceeds the amount of such liability permitted under the laws of the jurisdiction creating the same; or exceeds twice the paid in and unimpaired capital and surplus of such national bank, State bank, trust ‘ompany, or savings institution. No paper shall under this section be purchased from or discounted for any other ‘orporation engaged in making loans for agricultural Purposes or for the raising, breeding, fattening, or market- ing of live stock, if the amount of such paper added to the aggregate liabilities of such corporation exceeds the Amount of such liabilities permitted under the laws of the jurisdiction creating the same; or exceeds ten times the paid in and unimpaired capital and surplus of such corporation. It shall be unlawful for any national bank which is indebted to any Federal Intermediate Credit Bank upon paper discounted or purchased under this section, to incur any additional indebtedness, if by virtue of such additional indebtedness its aggregate liabilities, direct or contingent, will exceed the limitations herein *ontained.’ (¢) Loans, advances, or discounts made under this section shall have a maturity at the time they are made or discounted bv the Federal Intermediate Credit Bank "This provision in effect amends sec. 5202, Revised Statutes, and sec. 13, Federal Reserve Act. I »-~ , dog APPENDIX of not more than three years. Any Federal Intermediate Credit Bank may in its discretion sell loans or discount: made under this section, with or without its indorsement (d) Rates of interest or discount charged by the Feders) Intermediate Credit banks upon such loans and dis counts shall be subject to the approval of the Federal Farm Loan Board. On the majority vote of the mem- bers of the Federal Farm Loan Board any Federal Inter- mediate Credit Bank shall be required to rediscount the discounted paper of any other Federal Intermediate Credit Bank at rates of interest to be fixed by the Federal Farm Loan Board. Tithe IT —NATIONAL AcricUuLTurRAL CrEDIT CORPO RATIONS 8 ae Sec. 203. (a) That each National Agricultural Credit Corporation shall have power, under such rules and regu: lation as the Comptroller of the Currency may prescribe— (1) To make advances upon, to discount, rediscount. or purchase, and to sell or negotiate, with or without it indorsement or guaranty, notes, drafts, or bills of ex- change, and to accept drafts or bills of exchange, which— (A) Are issued or drawn for an agricultural purpose, or the proceeds of which have been or are to be used for an agricultural purpose; (B) Have a maturity, at the time of discount, pur- chase, or acceptance, not exceeding nine months; and (C) Are secured at the time of discount, purchase, or acceptance by warehouse receipts or other like documents conveying or securing title to nonperishable and readily marketable agricultural products, or by chattel mort- gages or other like instruments conferring a first and paramount lien upon live stock which is being fattened for market, or on agricultural crops being grown for market. (2) To make advances upon or to discount, rediscount, or purchase, and to sell or negotiate with or without its indorsement or guaranty, notes secured by chattel mort- gages conferring a first and paramount lien upon maturing or breeding live stock or dairy herds, and having a EE ——— $ The section numbers under this title refer to sections of the Agricultural Credits Act of 1923, ediate counts ment. ‘sdersl d dis aderal merm- [nter- at the adiate aderal DRPO~ redit regu- ibe— ount, ut its f ex- ch— pose, Ad for pur- ad ie, OT ents adily 10rt- and sned for APPENDIX maturity at the time of discount, rediscount, or purchase ot exceeding three years. af (8) To issue, subject to such regulations as the Comp- roller of the Currency may prescribe, collateral trust lotes or debentures, with a maturity not exceeding three years, and to pledge as security for such notes or deben- bures any notes, drafts, bills of exchange, or other securi- ies held by the corporation under the terms of this title. The regulations of the Comptroller of the Currency may srescribe the form of notes or debentures, and of notes, drafts, bills of exchange, warehouse receipts, chattel Mortgages, or other instruments which may be pledged 3s. security therefor, the provisions which may be made with regard to release, substitution, or exchange of such securities, and with regard to protection, supervision, mspection, and reinspection of the agricultural commodi- ‘ies or live stock pledged or mortgaged as security *herefor. _(b) The United States Government shall assume no liability, direct or indirect, for any debentures or other sbligations issued under this title, and all such debentures and. other obligations shall contain conspicuous and appropriate language, to be prescribed in form and sub- stance by the Comptroller of the Currency and approved by the Secretary of the Treasury, clearly indicating that no such liability is assumed. (¢) Any obligation referred to in paragraphs (1) or (2) of subdivision (a) of this section, which is secured by chattel mortgage upon live stock of an estimated market value at least equal to the face amount of such obligation, may be additionally secured by mortgage or deed of trust 1pon real estate or by other securities, under such regula- “ions as may be made by the Comptroller of the Currency. ole ae ale ~ 3 REDISCOUNT CORPORATIONS unt, b its ort- ring o 8 edits SEc. 207. (a) That National Agricultural Credit Cor- porations having an authorized capital stock of $1,000,000 or over may be organized under the provisions of this title, to exercise all the powers enumerated in section 203 sxcept that in lieu of the powers conferred in paragraphs J APPENDIX (1) and (2) of subdivision (a) of such section, sucl corporations shall have powers,— (1) Upon the indorsement of any National Agricultura Credit Corporation, or of any bank or trust compan) which is a member of the Federal Reserve System, t¢ rediscount for such corporation, bank, or trust company notes, drafts, bills of exchange, and acceptances, which conform to the requirements of paragraphs (1) and (2 of subdivision (a) of section 203. Such indorsement shall be deemed to be a waiver of demand notice and protest by such corporation as to its own indorsemen’ exclusively, (2) To discount or purchase notes, drafts, or bills of exchange issued or drawn by cooperative associations of producers of agricultural products, provided such notes, drafts, or bills of exchange are secured at the time of discount or purchase by warehouse receipts or other like documents conveying or securing title to nonperishable and readily marketable agricultural products, and have a maturity at the time of discount or purchase not ex- ceeding nine months. (3) To sell or necotiate with or without recourse any note, draft, or bill of exchange discounted or purchased hereunder. (b} National Agricultural Credit Corporations organ- ized under the provisions of this section, shall not be sub- ject to the limitations contained in section 204, but the Comptroller of the Currency may, by general regulations. from time to time prescribe the amount of indebtedness. direct or contingent, which such corporations may incur, and the aggregate amount of paper of different types which such corporations may rediscount for any one corporation. (¢) Corporations with powers limited, as provided in this section, shall not be subject to the requirements as to deposit of bonds or other obligations of the United States, as provided in section 208 of this title, PERMIT TO BEGIN BUSINESS Sec. 208. (a) That no National Agricultural Credit Corporation, except corporations with powers limited as provided in section 207, shall commence business until it has deposited with the Federal reserve bank of the district wherein it has its place of business, bonds or ch [tural pany m, to pany, which d (2) ment > and ment 1s of ns of wotes, ae of r like hable have IL exX- any ased gan- sub- the ons, ness, leur, ypes ne 1 in 3 as ‘ted edit { as ntil the or APPENDIX other obligations of the United States in an aggregate face amount at least 25 per centum of its paid-in capital stock. Each such corporation shall at all times keep On deposit with such Federal reserve bank an amount of Such bonds or other obligations of the United States at least equal in face value to 714 per centum of the aggre- 3ate indebtedness of such corporation, direct or contin- Zent, said amount to include the 25 per centum deposited 38 hereinbefore by this section provided. Except as hereinafter provided, such bonds or other obligations shall be held by such Federal reserve bank, subject to the direction and control of the Comptroller of the Cur- ‘ency, in trust for the equal and pro rata protection and benefit of all holders of notes, debentures, drafts, bills of *xchange, or acceptances upon which such corporation May be directly or contingently liable. Upon receipt of Proper evidence that the amount of such bonds or other obligations of the United States so deposited exceeds 714 per centum of such aggregate indebtedness, the Comp- troller of the Currency may release such excess, pro- "ided that the amount remaining on deposit shall in no vent be reduced below 25 per centum of the paid-in *apital stock of such corporation. Under such regulations 88 the Comptroller of the Currency may prescribe, a Fed- ral reserve bank may, upon request of the corporation which deposited the same, sell any such bonds or obli- Zations for account of such corporation, and permit such *Orporation to use the proceeds thereof for the protec- tion or preservation of any property pledged or mort- aged as security for obligations owned or indorsed by ‘he corporation. If by reason of such sale the face Amount of such bonds or other obligations of the United States remaining on deposit with such Federal reserve bank shall be less than 714 per centum of such aggregate indebtedness of the corporation, no further advances shall be made, or notes, drafts, or bills of exchange discounted, rediscounted, accepted, or purchased, by such corpora- tion until sufficient additional bonds or other obligations of the United States have been deposited to make good the deficiency. 41632°—31——7 05 48 APPENDIX BANKS MEMBERS OF THE FEDERAL RESERVE SYSTEM MAY BECOME STOCKHOLDERS Sec. 210. That any member bank of the Federal re- serve system may file application with the Comptrolle! of the Currency for permission to invest an amount not exceeding in the aggregate 10 per centum of its paid-in capital stock and surplus in the stock of one or more of the National Agricultural Credit Corporations, and upon? approval of such application may purchase such stock. The Comptroller of the Currency shall have discretiop to approve or reject such application in whole or in part DEPOSITS Sec. 212. That the moneys of National Agriculturs Credit Corporations may be kept on deposit subject t0 check in any member bank of the Federal reserve system LIMITATION ON USE OF WORDS “FEDERAL,” “UNITEY STATES.” OR “RESERVE” Act approved May 24, 1926 An Act To prohibit offering for sale as Federal farm loan bonds any securities not issued under the terms of the Farm Loan Act to limit the use of the words “Federal,” “United States,” ol “reserve,” or a combination of such words, to prohibit false advertising, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled. That no bank, banking association, trust company, corporation, association, firm, partnership, or person not organized under the provisions of the Act of July 17. 1916, known as the Federal Farm Loan Act, as amended. shall advertise or represent that it makes Federal farm loans or advertise of offer for sale as Federal farm loan bonds any bond not issued under the provisions of the Federal Farm Loan Act, or make use of the word ‘Fed- eral” or the words “United States” or any other word or words implying Government ownership, obligation, or supervision in advertising or offering for sale any bond, note, mortgage, or other security not issued by the Government of the United States or under the provisions of the said Federal Farm Loan Act or some other Act of Congress. AY i | re- oller not id-in ro of pon ock. tion art. ural + to Im. TED onds Act, ; or false tives Hed, WY, "SOM 17, led, ATI oan the fed- ord 10n, any by the me APPENDIX Sec. 2. That no bank, banking association, trust com- pany, corporation, association, firm, partnership, or Person engaged in the banking, loan, building and loan, brokerage, factorage, insurance, indemnity, or trust business shall use the word ‘ Federal,” the words “United States,” or the word ‘“‘reserve,” or any combination of Such words, as a portion of its corporate, firm, or trade Rame or title or of the name under which it does business: P rovided, however, That the provisions of this section shall not apply to the Federal Reserve Board, the Federal farm Loan Board, the Federal Trade Commission, or ny other department, bureau, or independent establish- Ment of the Government of the United States, nor to any Federal reserve bank, Federal land bank, or Federal feserve agent, nor to the Federal Advisory Council, nor to any corporation organized under the laws of the United States, nor to any bank, banking association, trust com- Pany, corporation, association, firm, partnership, or Person actually engaged in business under such name or title prior to the passage of this Act. Sec. 3. That no bank, banking association, or trust tompany which is not a member of the Federal Reserve System shall advertise or represent in any way that it 'S a member of such system or publish or display any Sign, symbol, or advertisement reasonably calculated to *onvey the impression that it is a member of such system. Sec. 4. That any bank, banking association, trust coms pany, corporation, association, firm, or partnership vio- lating any of the provisions of this Act shall be guilty of 8 misdeameanor and shall be subject to a fine of not 8xceeding $1,000. Any person violating any of the pro- visions of this Act, or any officer of any bank, banking association, trust company, corporation, or association, or member of any firm or partnership violating any of the provisions of this Act who participates in, or know- ingly acquiesces in, such violations shall be guilty of a misdemeanor and shall be subject to a fine of not exceed- ng $1,000 or imprisonment not exceeding one year, or both, Any such illegal use of such word or words, or any combination of such words, or any other violation of any of the provisions of this Act, may be enjoined by the United States district court having jurisdiction, at the instance of any United States district attorney, any Federal land bank, joint-stock land bank, Federal reserve Yi C8 APPENDIX bank, or the Federal Farm Loan Board or the Federa Reserve Board. Sec. 5. That if any clause, senten.e, paragraph, of part of this Act shall for any reason pe adjudged by any court of competent jurisdiction to be invalid, such judg ment shall not affect, impair, or invalidate the remainder of this Act, but shall be confined in its operation to the clause, sentence, paragraph or part thereof directly in- volved in the controversy in which such judgment shal have been rendered LOANS TO VETERANS ON SECURITY OF ADJUSTED SERVICE CERTIFICATES Sections 502 and 508 of the World War Adjusted Compensation Ac! of May 19, 1924, as amended by acts of July 3, 1926, March 3 1927, March 4, 1929, and February 27, 1931 Sec. 502. (a) A loan may be made to a veteran upor his adjusted service certificate only in accordance with the provisions of this section. (b) Any national bank, or any bank or trust company incorporated under the laws of any State, Territory, possession, or the District of Columbia (hereinafter in this section called “bank”), is authorized, after the expiration of two years after the date of the certificate. to loan to any veteran upon his promissory note secured by his adjusted service certificate (with or without the consent of the beneficiary thereof) any amount not in excess of the loan basis (as defined in subdivision (g) of this section) of the certificate. The rate of interest charged upon the loan by the bank shall not exceed, by more than 2 per centum per annum, the rate charged at the date of the loan for the discount of 90-day commercial paper under section 13 of the Federal Reserve Act by the Federal reserve bank for the Federal reserve district in which the bank is located. Any bank holding a note for a loan under this section secured by a certificate (whether the bank originally making the loan or a bank to which the note and certificate have been transferred) may sell the note to, or discount or rediscount it with, any bank authorized to make a loan to a veteran under this section and transfer the certificate to such bank. Upon the indorsement of any bank, which shall be deemed a waiver of demand, notice, and protest by such bank as to its own indorsement exclusively, and subject to reculations to be ders 1, or any udg- nder y the vy in- shall TED n Act ch 8, pon 1th any ory, rin the ate, red the Lin 1 of rest by | at cial the in for her ach sell ank ion the ver Wn a APPENDIX Prescribed by the Federal Reserve Board, any such note cured by a certificate and held by a bank shall be eligible for discount or rediscount by the Federal reserve bank for the Federal reserve district in which the bank is Ocated, Such note shall be eligible for discount or "ediscount, whether or not the bank offering the note for liscount, or rediscount is a member of the Federal Reserve >Ystem and whether or not it acquired the note in the first instance from the veteran or acquired it by transfer pon the indorsement of any other bank. Such note shall not be eligible for discount or rediscount unless it 188 at the time of discount or rediscount a maturity not 1 excess of nine months exclusive of days of grace. The ‘ate of interest charged by the Federal reserve bank shall ’® the same as that charged by it for the discount or "ediscount of 90-day notes drawn for commercial pur- 0ses. The Federal Reserve Board is authorized to 2ermit, or on the affirmative vote of at least five members f the Federal Reserve Board to require, a Federal "serve bank to rediscount, for any other Federal reserve sank, notes secured by a certificate. The rate of interest for such rediscounts shall be fixed by the Federal Reserve Board, In case the note is sold, discounted, or redis- ‘ounted the bank making the transfer shall promptly tify the veteran by mail at his last known post-office Address, (¢) If the veteran does not pay the principal and inter- *t of the loan upon its maturity, the bank holding the 10te and certificate may, at any time after maturity of the Joan but not before the expiration of six months after the loan was made, present them to the Director. The Director may, in his discretion, accept the certificate and Note, cancel the note (but not the certificate), and pay the bank, in full satisfaction of its claim, the amount of ‘he unpaid principal due it, and the unpaid interest iccrued, at the rate fixed in the note, up to the date of "he check issued to the bank. The Director shall restore lo the veteran, at any time prior to its maturity, any “ertificate so accepted, upon receipt from him of an Mount, equal to the sum of (1) the amount paid by the Uniteq States to the bank in cancellation of his note, lug (2) interest on such amount from the time of such "8yment to the date of such receipt, at 6 per centum per Anum. compounded annually. ~q C0 APPENDIX (d) If the veteran fails to redeem his certificate from the Director before its maturity, or before the death of the veteran, the Director shall deduct from the face value of the certificate (as determined in section 501) an amount equal to the sum of (1) the amount paid by the United States to the bank on account of the note of the veteran, plus (2) interest on such amount from the time of such payment to the date of maturity of the certificate or of the death of the veteran, at the rate of 6 per centum per annum, compounded annually, and shall pay the remain der in accordance with the provisions of section 501. (e) If the veteran dies before the maturity of the loan, the amount of the unpaid principal and the unpaid interest accrued up to the date of his desth shall be immediately due and payable. In such case, or if the veteran dies on the day the loan matures or within six months thereafter, the bank holding the note and certifi- cate shall, upon notice of the death, present them to the Director, who shall thereupon cancel the note (but not the certificate) and pay to the bank, in full satisfaction of its claim, the amount of the unpaid principal and unpaid interest, at the rate fixed in the note, accrued up to the date of the check issued to the bank; except that if, prior to the payment, the bank is notified of the death by the Director and fails to present the certificate and note to the Director within fifteen days after the notice, such interest shall be only up to the fifteenth day after such notice. The Director shall deduct the amount so paid from the face value (as determined under section 501) of the certificate and pay the remainder in accord- ance with the provisions of section 501. (f) If the veteran has not died before the maturity of the certificate, and has failed to pay his note to the bank or the Federal reserve bank holding the note and certifi- cate, such bank shall, at the maturity of the certificate, present the note and certificate to the Director, who shall thereupon cancel the note (but not the certificate) and pay to the bank, in full satisfaction of its claim, the amount of the unpaid principal and unpaid interest, at the rate fixed in the note, accrued up to the date of the maturity of the certificate. The Director shall deduct the amount so paid from the face value (as determined in section 501) of the certificate and pay the remainder in accordance with the provisions of section 501. ‘rom h of -alue ount ited rab, such ir of per alll oan, aid be the s1X ~tifi- the not tion and ued ep the ate the day unt “100 yrd- r of ank +1fi- ate, hall and the ab she uct aed der APPENDIX (2) The loan basis of any certificate at any time shall, for the purpose of this section, be an amount which is ot in excess of 90 per centum of the reserve value of the certificate on the last day of the current certificate year. The reserve value of a certificate on the last day of any Certificate year shall be the full reserve required on such certificate, based on an annual level net premium for twenty years and calculated in accordance with the American Experience Table of Mortality and interest it 4 per centum per annum, compounded annually. (h) No payment upon any note shall be made under this section by the Director to any bank, unless the note When presented to him is accompanied by an affidavit Made by an officer of the bank which made the loan, before a notary public or other officer designated for the Purpose by regulation of the Director, and stating that such bank has not charged or collected, or attempted to charge or collect, directly or indirectly, any fee or other Compensation (except interest as authorized by this Section) in respect of any loan made under this section by the bank to a veteran. Any bank which, or director, officer, or employee thereof who, does so charge, collect, or attempt to charge or collect any such fee or compen- Sation, shall be liable to the veteran for a penalty of $100, to be recovered in a civil suit brought by the veteran. The Director shall upon request of any bank or veteran furnish a blank form for such affidavit. _ (i) The Director of the United States Veterans’ Bureau Is authorized, through such officers and at such regional offices, suboffices, and hospitals of the United States Veterans’ Bureau as he may designate, and out of the United States Government life insurance fund established by section 17 of the World War Veterans’ Act, 1924, as amended, to make loans to veterans upon their adjusted service certificates in the same amounts and upon the same terms and conditions as are applicable in the case of loans made under this section by a bank, and the pro- visions of this section shall be applicable to such loans; except that the rate of interest shall be 2 per centum per annum more than the rate charged at the date of the loan for the discount of ninety-day commercial paper under section 13 of the Federal Reserve Act by the Fed- eral reserve bank for the Federal reserve district in which 18 located the regional office, suboffice, or hospital of the 101 102 APPENDIX United States Veterans’ Bureau at which the loan is made but in no event shall the rate of interest exceed 6 Pf centum per annum. (1) For the purpose of enabling the director to make such loans out of the United States Government life insurance fund the Secretary of the Treasury is author ized to loan not exceeding $25,000,000 to such fund with interest at the rate of 4 per centum per annum (begin ning on the date the check for each amount loaned to # veteran is paid by the Treasurer of the United States) compounded annually, on the security of bonds held in such fund. (k) The disbursing officers of the United States Vet erans’ Bureau shall be allowed credit in their accounts for all loans made in accordance with regulations and instructions of the director. (1) For the purpose of this section the loan basis pro- vided in subdivision (g) shall at no time be less than 50 per centum of the face value of the certificate, and in no event shall the rate of interest on any loan made after this subdivision takes effect exceed 4} per centum per annum, compounded annually. If at the time of appli- cation to the Administrator of Veterans’ Affairs for 8 loan the principal and interest on or in respect of any prior loan under this section have not been paid in full by the veteran (whether or not the loan has matured), then, on request of the veteran, the Administrator shall (1) pay or otherwise discharge such unpaid principal and so much of such unpaid interest (accrued or to accrue) as is necessary to make the certificate available for use as security for the new loan and (2) deduct the same from the then existing loan basis of the certificate. (m) Loans made by the Administrator of Veterans Affairs under this section may at his option be made out of the United States Government life insurance fund, or out of the Adjusted Service Certificate Fund created under section 505. Sec. 503. No certificate issued or right conferred under the provisions of this title shall, except as provided in section 502, be negotiable or assignable or serve as security for a loan. Any negotiation, assignment, or loan made in violation of any provision of this section shall be held void. If any person is named as beneficiary by the veteran as a consideration for the making of a wade, ner 1alc0 life hor- with vol” to 8 es), 4 in Jef nts and NTO” 50 {ter per pli- T 8 any full 2d), all pal 10) as AM ns’ yut or ad ler in as or on y a APPENDIX oan to the veteran by such person or any other person, Such naming shall be void. Any person who accepts an BSSignment of a certificate or receives a certificate as curity for a loan contrary to the provisions of this title, or who makes a loan to a veteran in consideration of the naming by the veteran of such person or any other Person as beneficiary, shall be guilty of a misdemeanor ind shall upon conviction thereof be fined not more than $500 or imprisoned not more than one year, or both. DEPOSITS OF UNITED STATES BONDS OR NOTES IN LIEU OF SURETY Section 1128 of the Revenue Act of 1928 Sec. 1126. Wherever by the laws of the United States Or regulations made pursuant thereto, any person is fequired to furnish any recognizance, stipulation, bond, Suaranty, or undertaking, hereinafter called “penal bond,» with surety or sureties, such person may, in lieu of such surety or sureties, deposit as security with the 0fficig] having authority to approve such penal bond, United States Liberty bonds or other bonds or notes of the United States in & sum equal at their par value to the amount of such penal bond required to be furnished, together with an agreement authorizing such official to Collect, or sell such bonds or notes so deposited in case of “y default in the performance of any of the conditions or Stipulations of such penal bond. The acceptance of such United States bonds or notes in lieu of surety or sureties quired by law shall have the same force and effect as Wdividual or corporate sureties, or certified checks, bank drafts, post-office money orders, or cash, for the penalty Or amount of such penal bond. The bonds or notes deposited hereunder and such other United States bonds Or notes as may be substituted therefor from time to time as such security, may be deposited with the Treas- rer of the United States, a Federal reserve bank, or other depositary duly designated for that purpose by the Sec- ‘etary, which shall issue receipt therefor, describing such bonds or notes so deposited. As soon as security for the Performance of such penal bond is no longer necessary, Such bonds or notes so deposited shall be returned to the depositor: Provided, That in case a person or persons Supplying a contractor with labor or material as provided 103 104 APPENDIX by the Act of Congress, approved February 24, 1905 (33 Stat. 811), entitled “An Act to amend an Act approved August thirteenth, eighteen hundred and ninety-four, entitled ‘An Act for the protection of persons furnishing materials and labor for the construction of public works,” shall file with the obligee, at any time after a default in the performance of any contract subject to said Acts, the application and affidavit therein provided, the obligee shall not deliver to the obligor the deposited bonds of notes nor any surplus proceeds thereof until the expirs- tion of the time limited by said Acts for the institution of suit by such person or persons, and, in case suit shall be instituted within such time, shall hold said bonds or notes or proceeds subject to the order of the court having juris- diction thereof: Provided further, That nothing herein contained shall affect or impair the priority of the claim of the United States against the bonds or notes deposited or any right or remedy granted by said Acts or by this section to the United States for default upon any obligs- tion of said penal bond: Provided further, That all laws inconsistent with this section are hereby so modified as to conform to the provisions hereof: And provided Surther, That nothing contained herein shall affect the authority of courts over the security, where such bonds are taken 88 security in judicial proceedings, or the authority of any administrative officer of the United States to receive United States bonds for security in cases authorized by existing laws. The Secretary may prescribe rules and regulations necessary and proper for carrying this section into effect. CONVERSION OF FOREIGN CURRENCY INTO CUR RENCY OF THE UNITED STATES Section 6522 of the Tariff Act of 1930, approved June 17, 1930 (8) VALUE OF FOREIGN COIN PROCLAIMED BY SECRETARY or TrEASURY.—Section 25 of the Act of August 27, 1894, entitled “An Act to reduce taxation, to provide revenue for the Government, and for other purposes”, as amended, is reenacted without change as follows: “Sec. 25. That the value of foreign coin as expressed in the money of account of the United States shall be that of the pure metal of such coin of standard value; and the values of the standard coins in circulation of the various nations of the world shall be estimated quarterly 33 ved yur, 10g sll the the oe or T8" y of he tes ris- pin yn rad his ra~ WS to ers ity aS ny (ve by nd on = )30 APPENDIX by the Director of the Mint and be proclaimed by. the Secretary of the Treasury quarterly on the 1st day of January, April, July, and October in each year.” (b) ProCLAIMED VALUE BASIS OF CONVERsION.—For the purpose of the assessment and collection of duties Upon merchandise imported into the United States on or bfter the day of the enactment of this Act, wherever it is hecessary to convert foreign currency into currency of the United States, such conversion, except as provided in Subdivision (c), shall be made at the values proclaimed by the Secretary of the Treasury under the provisions of Section 25 of such Act of August 27, 1894, as amended, for the quarter in which the merchandise was exported. (¢) MARKET RATE WHEN NO PROCLAMATION.—If no such value has been proclaimed, or if the value so proclaimed varies by 5 per centum or more from a value measured by the buying rate in the New York market at noon on the day of exportation, conversion shall be made at a value measured by such buying rate. If the date of 8Xportation falls upon a Sunday or holiday, then the buying rate at noon on the last preceding business day shall be used. ~ For the purposes of this subdivision such buying rate shall be the buying rate for cable transfers Payable in the foreign currency so to be converted; and shall be determined by the Federal Reserve Bank of New York and certified daily to the Secretary of the Treasury, who shall make it public at such times and to such extent 8s he deems necessary. In ascertaining such buying rate Such Federal reserve bank may in its discretion (1) take Into consideration the last ascertainable transactions and Quotations, whether direct or through exchange of other Currencies, and (2) if there is no market buying rate for such cable transfers, calculate such rate from actual transactions and quotations in demand or time bills of exchange. 105 RY )4, 118 .d, ed be (Cy he 7 106 PARALLEL REFERENCE TABLE FROM FEDERAL RESERVE AC" TO UNITED STATES CODE Dnited States Code section numbers opposite a section number of the Federal Reserve Act are listed in th order in which they correspond to parts of that section of the Federal Reserve Act. Thers are, however some parts of certain sections of the Federal Reserve Act which are not codified Section of Federal Reserve Act See. 1._____ Sec. 2 See. 3__.___._. See. 4____ See. 5... __ Sec. 6._______ Sec. 7. Sec. 8_____. _. Sec. 9. i Sec. 10. United States Code title and section Title 12, sec. 226 291 Title 12, sec. 222 223 222 225 282 502 283 284 285 286 281 2924 Title 12, sec. 521 Title 12, sec. 341 301 302 303 304 305 306 307 308 Title 12, sec. 287 Title 12, sec. 288 Title 12, sec. 289 290 531 Title 12, sec. 35 Title 12. gor 321 322 323 204 £25 126 127 328 329 330 331 299 Title 12, sec. 241 242 243 241 (See note.) Bection of Federal Reserve Aot Sec. 10. ___.___. See. 11____. Sec. 12. Sec. 13. Sec. 13 (a)___ Sec. 14 See. 15. Sec. 16 United States Code title a1 sartion Title 12, sec. 244 245 246 247 1 59292 Title 12, sec. 248 248 248 248 248 248 248 248 248 248 248 248 248 (¢ (k (ec (d (e { ( (1 ( {, (k Title 12, sec. 261 262 Title 12, see. 342 343 344 345 346 372 347 82 361 92 ars Title 12, sec. 348 349 350 351 352 Title 12, sec. 353 354 355 356 357 358 359 Title 12, sec. 391 392 393 Title 12, sec. 411 419 ACT d in the weave +14 and (a) n ) A (k) 0 APPENDIX Parallel reference table from Federal Reserve Act to United States Ccds—Continued 107 Section of Federal Reserve Act United States Code title and section Section of Federal Reserve Act United States Code title and spotion See. 16_______. Title 12, sec. 413 414 415 18 Sec. 23___.__.. Sec. 24... Sec. 25 Title 12, sec. 64 Title 12, sec. 371 Title 12, sec. 601 602 603 604 605 I's 9 20 121 422 360 248 467 (m) Sec. 25 (a) __ Title 12, sec. 611 612 613 614 615 616 617 518 619 620 621 622 623 624 625 626 627 628 629 630 631 Bec. 18____ Title 12, sec. 441 442 443 444 445 446 447 448 See. 10 Title 12, sec. 461 462 463 374 464 465 466 Title 12, sec. 121 Title 12, sec. 481 482 483 484 45 Sec. 20___.._.. See. 91 Sec. 26... .. Sec. 28... . See. 29 Title 31, sec. 409 Title 12, sec. 59 Title 12, sec. 226 (See note.) Sec. 22 Title 12, sec. 503 594 595 375 376 [HT Sec. 30__ Title 12, sec. 226 (See note.) 108 PARALLEL REFERENCE TABLE FROM UNITED STATES CODE TO FEDERAL RESERVE ACT United States Code title and section Title 12: See. 1.___. on oo. doo. ie 121_____ 221. ___. 229 5 S—— 224___ 225_____ 226. ___ 226 (note). 226 (note). 241 242. __ 243. 244 245. - 6] 7 48 ®-) 248 (b)_ _ 248 (c)_. 248 (c)__ 248 (e)__ 248 (f)__. 248 (g)__ 248 7) __ 248 ‘iy 248 (jy. 248 (k)_. 248 (1)... 248 (m). 261____. 262. __ 1-0 wo willl 286... 7. Fle eg ___.| 290. ___ 01 302 203 Section of Federal Reserve Ant Page of his edi- tion 10 8 28 23 1: 13 20 21 13 67 52 31 32 48 1 2 (in two places). 1,2 1,2 4 2 1 Bs 2 1 29 30 10 (in two h19, 20 places), 68 1 20 20 20, 21 21 21 21 22 22 29 22, °° ac v rn 1 1 1, 1 11 i1 2a 23 23 "23, 24 25, 26 26 42 27 or 11 16 12 12 2 2 1,16 12,13 12 12 ed . ? United States Code title and section Title 12—Contd. See. 304__ ___ 305. ____ RL 7. _ 8 ee 7a 23 __.. M_ 2B_.___ 26_____ 7 mn] Denn 29_____ oo doo 1... Penn LT Boo 7 2 9. ____ 50._____ B51. AB2. 353 __. he ____ 355_____ 356-0 57... R31 259_____ Bim 61_____ 7. 72... 7 LC 0 ced 6a] ] camiensl Poem ER to - e20_ _ __. 19° Section of Page 01 Federal Reserve | this edi- Aot tion 4 4 4 9, 10 10 10 10, 11 14, 15 15 15 15, 16 16 16 16 16, 17 17, 18 18 18, 19 19 6,7 28 28, 29 [oF 3 3a) al 2af 7 3a a on 33,7 35, 36 3¢ ay 52, 53 30, 31 32, 33 Ar at 2? 77 15 R 9 y 37, + 39 no 39,40 16 40 1 40 16 40,41 16 4 161 41 16 41 109 APPENDIX 0 | aol edi- an JR 10 10 10 il J 9 7 28 29 29 29 30 31 33 33 34 34 4 34 8 35 35 35 36 {dl n Parallel reference table from United States Code to Federal Reserve Act-——Continued United States Code title and section Section of | Federal Reserve Act Page of this edi- tion United States Code title and section Bectfon of Page of Federal Reserve] this edi Act tion Title 12—Contd. See. 422_.... 45 _ 4 ean A. Fn “a ag wey mm a ood HL 2a 998 onn, 1 —_— 522. ___. 531 omn 393 __. 504 ___. 505. 41, 42 44 44 44, 4: 4. 4. 45, 4 4 4 4¢ 46, 47 47 47, 48 42 48 42, 43 48, 49 49 49 49 49, 50 3 52 5 22 LS 50 50 50, 51 Title 12—Contd. Bec. 601__ --- 602__--- 603_..-- 804 _.-- 505. _ --- 1 me ol2___.. 03 6.4... 615. _._. 616. ._.- 617_.___ 618. __.__ B19___.- 620... _.- 821 622. 623. ____ P24___.. 825 ____ 626._____ BAT wise w= 628_ ._-- 829. ____ 530... --- 631___.-- 16 8 £ 18 25 53, b4 25 54 25 54, 556 25 £5 25 25 (a) | 55, 25 (a) ! 25 (a) fw 25 (a) 56, b7 25 (a) 57, 58 59 59 59, 60 80, 61 6i 25 ® 25 (a 25 (a) 25 (a) 25 (a) 25 fy 25 Io 25 (a) 25 (a) 25 (a) 25 (a) 25 (8) 25 (a) 25 (a) 25 (a) 25 (a) 26 1 21 21 2 22 3 10 7 22 22 29 52, € f 6 63 63, 64 64 65 85, 66 B36 Title 31: Sec. 400. INDEX Acceptance of terms of Federal Reserve Act by national and State banks ____ ._ PP-2, 8, sec. 2 ‘eceptances, bankers’: Cooperative marketing associations, when deemed to be issued or drawn by, for agricultural purpose... -. .—w P. 34, sec. 13 (a) Dollar exchange, for purpose of furnishing_____. .. . ... p. 32, sec. 13 Federal intermediate credit banks, purchase and sale of acceptances of, by Federal reserve banks_..........__. p. 36, sec. 14 f) Foreign banking corporations may purchase, sell, discount, or negotiate. ___. © eiee.. Pp. 57, sec. 25 (a) Limitations on amount of, for any one person by member banks in foreign and domestic transactions. ___.___.. ieeee-- Pp. 80, sec. 13 Limitations on acceptances to furnish dollar exchange... pp. 32, 33, sec. 13 Member banks in foreign and domestie transactions___..._.. p. 30, sec. 13 Member banks to furnish dollar exchange _._ we-- Pp. 32. sec. 13 National agricultural credit corporations, purchase and sale of acceptances of, by Federal reserve banks... ___.. p. 36, sec. 14 (f) Purchase of, by Federal reserve banks... .~-~ DP. 34, 35, 36, sec. 14 Rediscount of, by Federal reserve banks. __..._..._-_.. p. 30, sec. 13 \ecounts of each foreign branch of national bank must be con- ducted independently -.- --—-—oooooooocceaeeeeeecmnn--~ D. 55, sec. 25 Acts amended, repealed, or otherwise referred to by Federal Re- Serve Act: Act of June 20, 1874 ._. --- PD. 43, sec. 17; p. 48, sec. 20 Act of July 12, 1882__... <-- D. 43, sec. 17 Act of January 16, 1883 fe ee eee. DP. 26,sec. 11 () Act of March 14, 1900. —-_. Dp. 43, sec. 16; p. 66, sec. 26 Act of March 4, 1907 eee. D. 43, sec. 18 Act of May 30, 1908___. -e--- D. 41, sec. 16; p. 66, sec. 27 Act of March 2, 1911.___ 5 __ —_-. Pp. 43, sec. 16 Act of October 15, 1914. -_... D. 55, sec. 25; p. 61, sec. 25 (a) Act of May 15, 1916__ .——- Pp. 61, sec. 25 (a) Act of June 12, 1916_ ___________ --- Pp. 43, sec. 16 Aet of September 7, 1916. ____.___..._.. _- p. 61, sec. 25 (a) United States Revised Statutes, sec. 324. p- 21, sec. 10 United States Revised Statutes, sec. 5143 p. 67, sec. 28 United States Revised Statutes, sec. 5153 p. 66, sec. 27 United States Revised Statutes, sec. 5154 p. 13, sec. 8 United States Revised Statutes, sec. 5159 p. 43, sec. 17 United States Revised Statutes, sec. 5172 p. 66, sec. 27 United States Revised Statutes, sec. 5174 p. 41, sec. 16 United States Revised Statutes, sec. 5191 p. 66, sec. 27 United States Revised Statutes, sec. 5200. p. 53, sec. 24 United States Revised Statutes, sec. 5202. p. 31, sec. 13 United States Revised Statutes, sec. 5209 .- p- 15, ec. 9 United States Revised Statutes, sec. 5214. __ feeeeee-. p.66,sec. 27 United States Revised Statutes, sec. 5240___.._ p. 18, sec. 9; p. 48, sec. 21 United States Statutes at Large. vol. 22, p. 403 - p. 26. sec. 11 (1) 410629° _ 231. ® 1° [12 INDEX Acts published in appendix: Act of March 14, 1900 Act of March 3, 1901 Act of March 4, 1907. Act of June 25, 1910__ Act of October 15, 1914__ Act of May 15, 1916__ Act of May 18, 1916.. Act of July 17, 1916_____ Act of September 7, 1916. Act of April 24, 1917. _____ Act of September 24, 1917_. _ Act of April 4, 1918__. Act of April 5, 1918__. Act of September 26, 1918. Act of March 3, 1919__ Act of October 22, 1919 Act of May 26, 1920._. Act of May 29, 1920_, Act of July 1, 1922__ Act of March 4, 1923__. Act of May 19, 1924___ Act of March 4, 1925_____. Act of February 26, 1926. _. Act of May 24, 1926___. Act of July 8, 1926_._.. Act of February 8, 1927_. Act of February 25, 1927. Act of March 3, 1927 __. Act of March 9, 1928. _ Act of March 2, 1929 Act of March 4, 1929. Act of June 17, 1929 Act of June 17, 1930__ Act of June 25, 1930__. Act of June 26, 1930___.. Act of February 27, 1931____.___ Agricultural Credits Act of 1923_. Appropriation Act of 1920... Clayton Antitrust Act. Farm Loan Act____.___ First Liberty Bond Act. ___________ Kern amendment to Clayton Act... Liberty Bond Acts... McFadden Act. .___ Postal Savings Act, amendment to.._. Revenue Act of 1926. __. Second Liberty Bond Act. Tariff Act of 1930__..___ Third Liberty Bond Act. _ ooo... United States Revised Statutes, sec. 5136. United States Revised Statutes, sec. 5187. United States Revised Statutes, sec. 512° p- 79 p- 79 p- 79 p- 71 p. 69 p 69 p. 71 p. 72 p- 85 p. 73 p. 74 p 75 p- 85 p- 86 p. 82 p. 85 p. 69 p. 89 p- 77 pp. 90-93 p. 98 p- 9 p. 103 | p. 96 BN Co p. 98 pp. 77, 78, 79, 80, 82 5, . ? ? 3 86 p. 98 p- 69 p. 69 p. 98 p. 75 p. 104 p- 79 pp. 90-96 p. 98 p. 90 p. 89 p. 69 p. 72 oo p- 73 eee PDP. 7 rae? im 7, 78, 79, 80, hy 7 0 p. 71 p. 103 p. 74 p. 104 p. 76 p. 77 p. 78 p. 79 79 79 79 71 69 69 71 72 85 73 "4 75 85 36 82 85 69 89 77 93 98 90 08 96 N8 20 36 8 69 69 98 75 04 79 96 98 30 39 39 72 78 39 78 36 71 )3 74 H igs 7 78 : Brg 642i 23 1253 INDEX x fo 5 Tg F Acts published in appendix—Continued. United States Revised Statutes, sec. 5153 United States Revised Statutes, see. 5155 United States Revised Statutes, sec. 5172 United States Revised Statutes, sec. 5190 United States Revised 3tatutes, sec. 5200. United States Revised 3tatutes, sec. 5202 United States Revised Statutes, sec. 5207 United States Revised Statutes, sec. 5208 United States Revised Statutes, sec. 5209 United States Revised Statutes, sec. 5220 United States Revised Statutes, sec. 5221 World War Adjusted Compensation Act-. in Additions to reserve or central reserve cities by Federal Reserve Board_______.... . eee. DP. 28, sec. 11 (eo) Adjusted service certificates, veterans’ promissory notes secured by, loans on, rediscount of .._. —--- eeeemeem—eeee=e-- Dp. 98-103 Advances by Federal reserve banks to member banks on 15-day Promissory notes... ---- --- PD. 31, sec. 13 Advertising: As Federal farm loan bonds, securities not issued as such__.. p. 96 As member of Federal reserve system by nonmember, penalty. p- 97 Prohibition against use of words “ Federal,” ‘‘reserve,” or “{Inited States,” penalty, exceptions. Advisory Council, Federal ..___.. «.oocunme- Agencies, establishment of, by: Federal reserve banks. _ ooo... Foreign banking corporations... Agents, Federal reserve. (See Federal reserve agents.) Agents, right of national banks to act as. for insurance companies and in procuring loans on real estate. een. PD. 32, sec. 13 Agricultural Credits Act ooo -- .__.- pp. 90-96 Agricultural paper, rediscount of... _-.._ P- 28, sec. 13; pp. 33, 34, sec. 13 (a) Agricultural paper with maturities in excess of six months not a basig for issuance of Federal reserve notes unless secured.__ Pp. 33, sec. 13 (a) Agricultural purpose, when paper of cooperative marketing asso- ciation to be deemed as issued or drawn for-._.. memo P- 34, sec. 13 (a) Agriculture, representation of, on Federal Reserve Board...----- p. 19, sec. 10 Alaska: Federal reserve districts do not include. National banks in— May or may not become members Reserves required of o_o —a-- ; re Amendments, right to amend, alter, or repeal Federal Reserve Act expressly reserved. o-coo-o---e-- Annual report of Federal Reserve Board... Antitrust Act. (See Clayton Act.) Applications: Cancellation of stock in Federal reserve banks. .--cooceo--- PP. 11, 12, sec. 5; p. 12, sec 6; pp. 16, 17, sec. 9 Establishment of foreign branches by national banks___....-. p. 53, sec. 25 Federal reserve notes _—o-cuaoo-oemn—- feeee—eenw-- D.387,8ec. 16 Fiduciary powers by national banks -—=- PP. 28, 24, sec. 11 (k) - i - AL § x 58 sul p. 82 p- 85 p. 86 p. 86 p. 87 p. 88 p- 88 p. 98 114 INDEX Applications—Continued. z Member banks. stock in Federal reserve banks. __ —ee-- DP. 5, sec . p. 11, sec. 5; pp. 14, 15, sec: National banks, stock in foreign banking corporations. _._____ p- 53, sec. 25 Bn. 81. sec. 25 (8 Appropriation Act of May 29, 1920: Federal reserve banks, transfer of certain functions to _____ Subtreasuries abolished. __ in Appropriation for national bank notes may be used for furnishing Federal reserve notes_.____.___________ " .._ p. 41, sec. 1f Articles of association of foreign banking corporations_....__ p. 56. sec. 25 (8 Assessments. (See Federal reserve banks.) Assistants to Federal reserve agents ooo oo p. 10. sec: Associations. (See Cooperative marketing associations.) Attorneys of member banks. (See Member banks. officers and employees.) Balances: Member banks with nonmember banks__..__._____.________ p. 47, sec. 1 Nonmember banks with Federal reserve banks______________ p. 28, sec. 13 Reserve required of member banks. . wecee-- Dp. 46-48, sec. 1 Bank, definition of _______ eeeeeecceeeo. p. 1, seC. 1; DP 8 Bank directorates, interlocking (see also Clayton Act)... ———— pp. 69-70 Bank examinations. (See Examinations.) Bank examiners. (See Examiners.) Bankers’ acceptances. (See Acceptances, bankers’. } Bankers, private, eligibility of, as directors of other banks__.._._.. pp. 69. 7 Banking corporations. (See Foreign banking corporations.) Banking corporations, conversion of, into Federal foreign banking corporations__________ oe. p.64,sec. 258 Banks (see also Federal reserve banks; Foreign banking corpora- tions; Member banks; National banks; Nonmember banks; State banks): Alaska and other dependencies or insular possessions, banks in, may or may not become members______.____________ p. 48, sec. 1° Commercial banking business, Clavton Act not applicable to banks not engaged in. _ mm p- Y Conversion of, into Federal foreign banking corporations. _ p. 64, sec. 25 (& Conversion of, into national banks. _ .~- pp. 13. 14, sec. 8; pp. 80, 81 Definition of term “bank”... ____.___. RR eeeee p- 1,800.1; p. 81 of exchange (see also Acceptances, bankers’): . Acceptance of, by foreign banking corporations ______._ p. 57, sec. 25 (8 Foreign banking corporations mav purchase. sell, discount. or . negotiate. .._.._.__. __ .~— Dp. 57, sec. 25 (al Rediscount. (See Rediscounts.) Sight and demand, discount by Federal reserve banks______ p. 29, sec. 18 Board: Definition of term “Board” __ oo p. 1, sec. * Federal Reserve. (See Federal Reserve Board.) Of directors. (See Directors.) Bonded indebtedness of the United States franchise tax applied to _. p. 13, sec. n ec. 4 ac. 9 ., 25; 2 (a) ). 89 , 89 . 16 < (g) sp 4 19 13 19 . 81 1.70 =0 a) 13 70) a) 81 Ql ‘a) 3) {3 INDEX 115 Bonds; Assistant Federal reserve agents... eeeeee-- Dp. 10, sec. 4 Circulation privilege, when Federal reserve banks required to purchase bonds bearing.._.___. ee—w- D.44,sec. 18 Deposit requirements of national banks repealed. .__.___ pp. 43, 44, sec. 17 Effect of State requirements on national banks exercising trust powers_... -__ Dp. 24, 25, sec. 11 (k) Exchange of 2 per cent for 3 per cent = D.45. sec. 18 Farm loan— Advertising securities for sale as, when not issued as such. p. 96 Purchase and sale by Federal reserve banks and member banks. occ cccccmmae- —- p- 73 Federal reserve agents... -- p- 23, sec. 11 (D Federal reserve banks— Officers and employees... Purchase of, bearing circulation privilege -. Purchase of, by, in open market. _._. Foreign banking corporations— Issuance of, limitation -. p. 58, sec. 25 (a) Liability on, limitation_——-~. -.-. .. ceo oooo- Pe 60, sec. 25 (a) Limitation, on amount to be purchased by Federal reserve banks. cece ceoann .— Pp. 44, sec. 18 Notes taken out against bonds purchased.. .- p. 45, sec. 18 Officers and employees of Federal reserve banks... _.._.___. p. 6, sec. 4 Penal, deposits of United States bonds in Federal reserve banks. as security in lieu of sureties on. u p. 103 Rediscount of paper secured hv __ pp. 26, 27, sec. 11 (m) Refunding. veo —eeoomccecemicmece mmr mmmmn meme D 44, sec. 18 Revenue bonds, purchase of, by Federal reserve banks.__ p. 35, sec. 14 (b) United States— Certificates of indebtedness as. _- meee Deposit by national agricultural credit corporations in Federal reserve banks... —.--- i Deposits of, in Federal reserve banks as security in lieu of sureties on penal bond. _ o_o. ooo Exchange by Federal reserve banks of 2 ver cent gold bonds, conditions. __. __ p. 45, sec. 18 Federal reserve banks may buy and sell... ___...... Dp. 35, sec. 14 (b) Secretary of the Treasury may borrow gold on security of, to strengthen gold reserve or maintain parity of money ——o-—-- ee emeeeemmc—emm—=n=--- D. 66, sec. 26 Securing circulating notes of member banks, sale of ...__. p. 44, sec. 18 Thirty-year 3 per cent gold bonds. terms of issue... pp. 45, 46, sec. 18 Treasury bills 88 — oc cmon ammo pp. 75, 76 Borrowing of gold by Secretary of Treasury to strengthen gold reserve or maintain parity of money... --- D. 66, sec. 26 Branches: Federal reserve banks— Buildings, limitations on cost of erection. -- p- 22, sec. 10 Directors. ceeccaooo.. | mmm emaenn De 8, 886.13 Federal Reserve Board may permit, require, or discontinue. p. 5, sec. 3 Supervision of. _ oo cceecoccememeoenemmeaee-ae PD. 5, 8eC. 3 Foreign banking corporations, establishment by. of.__._._ p. 58, sec. 25 (a) Member State banks. _ .. Dp. 15. sec. 9 116 : INDEX Branches—Continued. National banks— Consolidation of, effect on___. eeeew pp. 80,8 Effect of State bank converting into or consolidating with. pp. 80, 8 Establishment, operation, and retention of, limitation on. pp. 80 81 Foreign__ __ —--~ Pp. 53, 54, sec. 25; p- 81 Accounts of each must be conducted independently _. p. 55, sec: 25 Act of February 25, 1927, does not affect establish- lishment of .__.______ p. 8! Application for, character of... __. .--_ DD. 53, 54, sec. 2 Application to Federal Reserve Board necessary..... p. 53, sec. 25 Capital required to establish__________.____________ p. 53, sec. 25 Increase or reduction by Federal Reserve Board... p. 54, sec. 25 Report of condition to Comptroller of Currency..._. p. 54, sec. 25 Special examination by Federal Reserve Board. ..___ p. 54, sec. 25 Transfer to general ledger of profit or loss of each ____ p. 55, sec. 25 State member banks__________ —— _=ie- p. 15, sec. > Brokers procuring real estate loans, national banks as_.. p. 32, sec. 13 Buildings of Federal reserve banks, limitation on cost___ p. 22, sec. 10 Bullion: Dealings in, by Federal reserve banks___ wmmmeee——_ D- 35, sec. 14 (& Purchase and sale by foreign banking corporations__._.__ p. 58, sec. 25 (8 Business of foreign banking corporations, restrictions on_._._. p. 59, sec. 25 (a) By-laws: Federal reserve banks_.__. Foreign banking corporations. ____ wee- PD. 7, seC. ee. D. 57 sec. 25 (a t 1 Cable transfers: Federal reserve banks may purchase__.. w-- PD. 34, sec. 1% Foreign banking corporations may purchase, sell, discount, or negotiate..__.___ eee -_ p. 57, sec. 25 ®) Cancellation of Federal reserve bank stock. . meme. Pp. 11, 12 sec. 5; p. 12, sec. 6: p. 16, sec. 9 Capital requirements: Foreign banking corporations, organization of ....__ pp. 60, 61, sec. 25 (8) National banks exercising fiduciary powers__. _._________ p. 25, sec. 11 (kK) National banks purchasing stock in foreign banking corpora- tions. ._____. — — wnew- DD. 53, 54, sec. 25 State banks applying for membership... _ ~=- Pp. 17, 18, sec. 9 Capital stock. (See Stock.) Central reserve cities: Federal Reserve Board may add to, reclassify, or terminate. p- 23, sec. 11 (e) Previous status not changed. . . imvee P. 4, sec. 2 Reserve. (See Reserves.) Certificates of ndebtedness of United States: As bonds or notes of United States. -——eo- DP. 75,76 Rediscount of paper secured by_-..__._____.______ pp. 26, 27, sec. 11 (m) Certification of checks against insufficient funds________ pp- 18, 19, sec. 9; p. 86 Chairman of Federal reserve bank board of directors. (See Direc- tors; Federal reserve agents.) Chirges for collections___________._. «== D. 28, sec. 13; p. 42, sec. 16 Charters of Federal reserve banks_______ __._.__________________ p. 6, sec. 4 Charters of foreign banking corporations, extension of . _ _ pp. §7, 63, 64, sec. 25 (a, ), 81 . 81 L81 . 81 25 81 . 28 95 95 95 25 95 25 L 9 18 10 ‘a) a) (a) a 4 a) {4 a) 12, . 9 2) Kk) 25 . 9 (e) 2) 76 m) RO 16 4 INDEX 117 Charters of national banks. -—-ocoeuo-- —- p. 77 Chattel mortgages, paper secured by, basis for Federal reserve DObeS_ emma oe el... ______p.383 sec 13 (a) Circulating notes of member banks, sale of United States bonds Securing..ooomoooe _ ee meee _ PD. 44, sec. 18 Citizenship of directors of foreign banking eorporations......- Pp. 57, sec. 25 (a) Citizenship of stockholders of foreign banking corporations... D. 61, sec. 25 (a) Civil Service Act: Officers and employees of Federal Reserve Board employed without regard to_.--——--- eee D. 26, sec. 11 (1) President of United States may place officers and employees of Federal Reserve Board under... coocoocacaecn- Pu 26, sec. 11 (1) Classification of directors of Federal reserve banks. ..._--eeee- PP 7,8, sec. 4 Clayton Antitrust Act ; interlocking bank directorates: Application of, to directors of member banks holding stock in foreign banking corporations....------- P. 55, sec. 25; p- 61, sec. 25 (a) Banking institutions doing no commercial banking business excepted from provisions of ...o_:ooo--- me p. 70 Class A director of Federal reserve bank, effect on... = p. 70 Common-stock ownership between banks. occoooo--n p- 70 Foreign banking corporations, applicability to_ p. 55, sec. 25; p- 61, sec. 25 (a) Joint-stock land banks excepted from provisions of __. - p. 70 Limitation as to banks... -- _ pp. 69,70 Mutual savings banks... p. 70 Permission of Federal Reserve Board. _. p. 70 Prohibitions of, exceptions_ __.... pp. 69, 70 Revocation of permit by Federal Reserve Board. . p. 70 Clearing-house functions: Of Federal reserve banks. _.----- p. 28, sec. 13; p. 42, sec. 16 Of Federal Reserve Board. _... eee D. 42, sec. 16 Code, United States, parallel reference tables from and to Federal Reserve Act... ---- pp. 106, 108 Coin: Federal reserve banks dealing in... --. ------------ P- 35, sec. 14 (a) Foreign, when Federal Reserve Bank of New York determines value of co — Ce emeeccmma-—--- Dp. 10%, 105 Purchase and sale by foreign banking corporations._..... Pp. 58, sec. 25 (a) Collateral notes of member banks. _-c-eccuecemomammmcmmmn=a-~ P. 31 sec. 13 Collateral security for Federal reserve notes. (See Federal reserve notes.) Collections: By Federal reserve banks. p. 28, sec. 13; p. 42, sec. 16 Charges -- I . p. 28, sec. 13; p. 42, sec. 16 Deposits with Federal reserve banks for... p. 28, sec. 13; p. 42, sec. 16 Expenses of... p. 28, sec. 13; p. 42, sec. 16 Par... p. 28, sec. 13; p. 42, sec. 16 Commerce, foreign banking corporations may not engage in_- p. 59, sec. 25 (a) Commercial banking business, banks not engaged in, Clayton Act not applicable. oo... me th p. 70 Commercial interests, representation of, on Federal Reserve Board. p. 19, sec.10 Commercial paper, rediscount of oo ocwron cmmmmmooomnm ooo pp. 28, 29, sec.13 Commissions for procuring loans forbidden... -wvee----n~ Dp. 50, 51, sec. 22 (c) Common stock ownership between banks, effect on Clayton Act-. p. 70 118 INDEX Comptroller of Currency: Amendment to act creating office... __ -- Dp. 21, gec.It Appointment of member bank examiners. _. e-- P. 48, sec. 21 Authorizing Federal reserve banks to commence business_..... 1p. 7, sec 4 Duties relating to Federal reserve notes. __ p- 21, sec. 10; pp. 40, 41, sec. 16 Duties under direction of Secretary of Treasury... _c..__. p. 21, sec.10 Ex officio member of Federal Reserve Board... -- Pp. 19, sec. 10 Issue, delivery, and retirement of Federal reserve notes by, subject to regulation by Federal Reserve Board. _.__ p. 23, sec. 11 (d National-bank notes, jurisdiction over... _______. p. 21, sec. 10; p. 82 National banks, appointment of receiver for discontinuance of banking operations______ - ceceee- Pp. 12, sec. 0 Service upon member bank, restriction upon.. meee_ P. 20, sec. 10 Congress: Report of Federal Reserve Board annually to._. -- Pp. 21, sec. IV Senator or Representative ineligible as member of Federal Re- serve Board or as officer or director of a Federal reserve bank. Consolidation: Of national banks; effect on branches.__._._______.________ Of State bank with national; effect on branches... __ meme Conversion: Foreign currency into United States curreney.._. ..... .___ pp. 104, 105 State bank into national bank, procedure; effect on branches a . sm-se emeeceeeo---. Dp. 13, 14, sec. 8; pp. 80, 81 State foreign banking corporations into Federal corporations. p. 64, sec. 25 (a) Cooperative marketing associations: Definition of .._. -~- Pp. 34, sec. 13 (a) Eligibility in general of paper for rediscount___._________ p. 34, sec. 13 (a) Paper issued or drawn for agricultural purpose, when deemed to be.___. - -=- P. 34, sec. 13 (a) Corporate powers of national banks 8 mr pp. 77,78 Corporations, domestic, restrictions on purchase of stock in, by foreign banking corporations... --- Pp. 58, 59, sec. 25 (a Crimes and penalties: Advertising bonds as Federal farm-loan bonds when not issued assuch___._____ _. . ss ———— p. 96 Bank examiners disclosing information. --- B. 50, sec. 22 (b) Criminal acts by bank examiners__. cememeao Pp. 50, sec. 22 Deficient reserves. _.____. -- Pp. 22, sec. 11 (e); pp. 47, 48, sec. 19 Discounts, procuring by bribery. .__.____ _________. pp- 50, 51, sec. 22 (¢) Embezzlement, fraud, unauthorized acts, ete., by officers, directors, ete... . Dp. 87, 88 Examiners— Accepting loans or gratuities_.. -=- P. 50, sec. 22 (a) Disclosing confidential information... _. ________ p. 50, sec. 22 (b) Failure of national bank to become member. _ _ ceeeca- PD. 3, sec. 2 False certification of checks..._. -- Pp. 18, 19, sec. 9; p. 86 ‘Federal,” misuse of word_.. ...________.__.__________ pp. 96,97 Fee, commission, gift, etc., for procuring loan from member bank. ____._. sm===~--e---. Pp. 50, 51, sec. 22 (c) Foreign banking corporations engaging in commerce or trade Sem eemeee i eeeeo—..___ DD. 59, 60, sec. 25 (a) Loans by trust department of national banks to officers, direc- tors, ete., prohibited. -== DP. 25, sec. 11 (k) c.10 2 oc. 4 . 16 c.10 , 10 d) 29 2 6 10 10 y 4 3 21 05 21 a) a) a) 2) 78 a) 26 b) 22 19 2) $8 a) 3) $0 V7 INDEX 119 Crimes and penalties—Continued. Loans on collateral of United States notes or national bank NOLES. oe ccm + mmm S. p. 86 Loans or gratuities to bank examiners... —eo- Pp. 50, sec. 22 (a) Nonmember bank advertising as member of Federal reserve system oo oveoeoenoo- in Si p. 97 Paying out notes of one Federal reserve bank by another_..._ p. 38, sec. 16 Representation that United States is liable for acts or obliga- tions of foreign banking corporations... e———-_ p. B65, sec. 25 (a) Reserve, misuse of WOTd. --—acooceoioaonn somemmmaooos p. 97 State member bank reports, failure to make_. ieeee. p-16,sec. 9 United States, misuse of term... eeee____ DD. 96,97 Use of funds by foreign banking corporations or officers, direc- tors, etc, to fix or control prices... .------ PP. 59, 60, sec. 25 (a) Use of words ‘‘ Federal,” “reserve,” or “United States” ...... pp. 96, 97 Violation of criminal provisions of section 25 (a) by officers, directors, etc., of foreign banking corporations.__._._.. p. 63, sec. 25 (a) Violation of Federal Reserve Act by national bank...---w--- P.3,8ec. 2 Violation of section 22 of act by officers, directors, or agents of member banks_ _________---__- eee. Pp. 52, sec. 22 (f) Violations of act by Federal reserve banks... —.---- P- 23, sec. 11 (h) Custody of Federal reserve notes and gold, gold certificates, or law- ful money issued to or deposited with Federal reserve agents. __ p. 40, sec. 16 Custody of funds deposited with Federal reserve banks acting in place of United States subtreasuries.. .-- nD Dealing in gold and bullion by Federal reserve banks. ....-.. p. 35, sec. 14 (a) Debentures of foreign banking corporations _._..--.--.-- Pp. 58, 80, sec. 25 (a) Debentures, etc., of national agricultural credit corporations or Federal intermediate credit banks, purchase and sale by Federal reserve banks___. _-.----. -. pp. 33, 34, sec. 13 (a) Deficiencies in reserves, graduated tax upon... ooo DP. 22, sec. 11 (c) Deficiencies in reserves of member banks__. p. 22, sec. 11 (¢); pp. 47, 48, sec. 19 Definitions: Bank. o-coooa- weee-p. 1, sec. 1; p. 81 Board -_..- ceeeeo pe lysec. 1 Branch -___. wom meen p. 81 Cooperative marketing association... -o_ Dp. 34, sec. 13 (a) Demand deposits... p. 46, sec. 19 DIARIO... mi ie sisi smimicsnin p-1,sec. 1 Loan secured by real estate __ 53, sec. 24 Member bank__. p- 1, sec. 1 National bank. _..._-. p- 1, sec. 1 National banking association. __... mmm p. 1, sec. 1 Paper arising out of actual commercial transactions. . p. 28, sec. 13 Reserve bank. __.--- p- 1, sec. 1 State bank or State banks. p. 81 Time deposits. oo ccocvocnue =o =mo= = --- P. 46, sec. 19 Demand bills of exchange, discount and purchase of eceececeu- DP. 29,5ec 13 Demand deposits (see also Deposits, demand), definition of ___..-- p. 46, sec. 19 120 INDEX Dependeneies of United States: Establishment by national banks of branches in_..... pp. b3, 54, 55, sec. 2 Foreign banking corporations in, as depositaries of United . States. . .. D. 56, sec. 25 (& National banks in, may join system or remain nonmembers. . p. 48, sec. 19 Depositaries of the United States (see also Government depositaries): Federal land banks, security required. -- p. 72 Federal reserve banks to act as _.__. —--- Pp. 36, sec. 15 Foreign banking corporations to act as, in insular possessions and dependencies... ___________.__. _- DP. 56, sec. 25 (8) Joint-stock land banks as, security required. _.__._.____.______ p: 72 Member banks as_.... ..___.__ p. 19, sec. 9; p. 36, sec. 15; pp. 73, 74, 75 Deposits: Demand— Definition of ..___. weer D. 46, sec. 19 Reserves required against... ~~ D. 47, sec. 19 Federal land banks, in member banks..._ __.._._. ________ p. 72 Federal reserve agent with Federal Reserve Board or United States Treasurer. . .-- DP. 40, sec. 18 Federal reserve banks— As subtreasuries of United States. . —- Bonds, ete., of United States in, by national agricultural credit corporation. _________. ————— pp. 94, 95 Bonds of United States in lieu of surety on penal bonds__ p. 103 By member banks in_._.__. -=- D. 28, sec. 13; p. 42, sec. 16 By nonmember banks in_______ .— we—m-- P. 28, sec. 13 By other Federal reserve banks in_.______ p. 28, see. 13; p. 42, sec. 16 By the United States in... -=---- D. 28, sec. 13; p. 36, sec. 15 Fiscal agent of the United States. . --- DP. 36, sec. 15 Gold settlement fund of. Pp. 42, 43, sec. 16 Reserves against________. _.._. -. pp. 87, 38; sec. 16 With Federal reserve agent to reduce liability on Federal reserve notes. _. wa=- PD. 39, sec. 18 Foreign banking corporations— Outside of United States_. -- Dp. 58, sec. 25 (a; Within United States. _ cemew- D. 58, sec. 25 (a) Gold, by Federal reserve agent with Federal Reserve Board or United States Treasurer.________. eee. P. 40, sec. 16 Gold certificates, by Federal reserve agent with Federal Re- serve Board or United States Treasurer_.._—_.______..___ p. 40, sec. 16 Gold, gold certificates, and lawful money with Federal reserve agent, joint custody of... ________________________ p.40, sec. 16 Gold settlement fund of Federal reserve banks. _..._._. pp. 42, 43, sec. 16 Government— In Federal reserve banks____.__.___. feees eee. D. 36, sec. 15 In member banks____ _____ p. 19, sec. 9; p. 36, sec. 15; pp. 73, 74, 75 In nonmember banks........ ____.___ p. 36, sec. 15; pp. 73, 74, 75 In trust departments of national banks, restrictions upon. _ Pp. 24, sec. 11 (k) Member banks— As depositories of Government. __ Directors, payment of interest on. Federal land banks in_.______ In nonmember banks, limitation on____ National agricultural credit corporation moneys in. Postal savings funds in_ p. 8° —e==w- Pp. 19, sec. 9; p. 36, sec. 18 wo DP. 52, sec. 22 (e) -- p. 72 a= DP. 47, sec. 19 i. p. 96 pn. 71 75 (8) 19 72 15 a) 72 h i9 (9 79 16 RQ 4H 13 6 2 16 (5 15 {6 an B a) 1) 6 16 16 16 15 75 75 2) J 2) 72 9 6 INDEX 121 Deposits— Continued. National agricultural credit corporations— In member banks_.__.---_. _. wn p. 96 Of United States bonds in Federal reserve banks... pp. 94, 95 National banks— Interest payable on... ew. D. 53, sec. 24 Securities with State, when necessary-.----c------- P- 24, sec. 11 (k) Trust departments, restriction upon deposits in. ....- Pp. 24, sce 11 (k) Nonmember banks— Government funds in, prohibited; exceptions... .----P. 36, sec. 15; . pp. 71, 73, 74, 75 Philippine Island public funds in, prohibited. .caao----- P- 36, sec. 15 Postal savings funds in... oo PD. 36, sec. 15; p. 71 Philippine Island funds in nonmember banks. -oo—ooe—ew---- Pp. 36, sec. 15 Postal savings funds in member or nonmember banks.. p. 36, sec. 15; p.71 Proceeds of sale of Liberty bonds and certificates of indebted- ee PD. T73,74,75 ness -... -. mmm ———— Reserve against. (See Reserves.) } Savings, national banks may receive_. eew__ p. 53, sec. 24 Securities in trust departments of national banks, when neces- - Cp. 24, see. 11 (k) Time— Definition of cvomcccccane onan emmee_- p.46,sec. 19 National banks may receive -—------ _- p. 53, sec. 24 Reserves required against... ------ —-_ Dp. 46, 47, sec. 19 United States bonds or notes in Federal reserve banks as security in lieu of sureties on penal bonds. cece p. 103 Deputy chairman of Federal reserve bank board of directors, ap- Pointment and duties - ee eiieeeeee== p+ 10, eC. 4 Director of United States Veterans’ Bureau, loans by, to veterans on notes secured by adjusted service certificates. ...cccceceaa--- PP: 101, 102 Directorates between banks. (See Clayton Act.) Directors: Branch Federal reserve banks. Federal reserve banks— Chairman and deputy chairman absent; procedure. _-_-~ P- 10, sec. 4 Chairman, appointment of and duties. __ pp- 8,9, 10, sec. 4 Class A, effect of Clayton Act ono oocronomnmne o=o- p. 70 Class A and Class B directors, method of election... pp. 8, 9, sec. 4 Class C directors, appointment of -. -——- PD.8,9,10,5ec. 4 Classification of_._._. .-. pp. 17,8, sec. 4 Compensation and expense allowance... . p. 10, sec. 4 Deputy chairman, appointment of and duties_ . p10, sec. 4 Duties in general... p. 7, sec. 4 Election of— Class A.coaeua- ——. DPP- 8, 9, sec. 4 Class Beco eee mmm meeee-- PP- 8, 9, sec. 4 Class C chosen by Federal Reserve Board__-—-.- pp. 9, 10, sec. 4 Embezzlement, fraud, ete.; penalty. ---- .--- DD. 87,88 False certification of checks; penalty. ---oc-vo-e-eea-- PP 86, 87 Federal reserve agent. (See Federal reserve agent.) Impartiality required oo ---c-ooor ooo mo-ooommeoon- p. 7, sec. 4 Members of Federal Advisory Council selected by...--- p. 27, sec. 12 Must administer affairs of bank fairly and impartially... p. 7, sec. 4 84rYy - 122 INDEX Directors—Continued. Federal reserve banks— Continued. Nature of duties. ieee Pp. 7, seC. Number of _____. RE 8 sec. 4 Operation of bank under supervision and control of ._____ p. 7, sec. 4 Qualifications of ._ __ ieceee~-- DP. 8, 9, 10, sec. 4 Removal of ._ reeeee- DP. 28, sec. 11 () Salaries, expenses, ete., of _.. ceeecee.. Pp. 10, sec. 4 Selection of, method, Class A, B, and C.__________ pp. 8, 9, 10, sec. 4 Senator or Representative in Congress ineligible__...____ p. 8, sec. 4 Shall extend to member banks discounts, advancements, and accommodations, limitations on. __.._________._ p. 7, sec. 4 Suspension or removal by Federal Reserve Board. ___ p. 23, sec. 11 & Term of office _____. anmmew Phe TG 11, sec. 4 Vacancies, how filled. . . cee p. 11, sec. 4 Foreign banking corporations— Clayton Act, applicability to__.._____ p. 55, sec. 25; p. 61, sec. 25 (a Liability for participating in or assenting to violation of section 25 (a) ______________ cememee- Dl. 62, sec. 25 (2 Must be citizens of the United States meme. DP. 57, sec. 25 (a Member banks— Clayton Act, applicability of provisions of, 10... __.____._ p. 55, sec 25; p. 61, sec. 25a; pp. 69-71 Connivance of directors of, with directors of other member banks prohibited ._.._______________ ___________ p. 52, sec. 22 (f) Disclosure of profits in sales by directors of___._____ p. 51, sec. 22 (d) Embezzlement, fraud, ete.; penalty__. —-__. pp. 87,88 False certification of check; penalty __..._____________ pp. 86, 87 Fee, commission, gift, ete., for procuring loan prohibited; penalty __. ---~ Dp. 50, 51, sec. 22 (¢) Foreign banking corporations, directors of member banks ay serve as directors of ._..___.___ p. 55, sec. 25; p. 61, sec. 25 (a) Interlocking directorates, when prohibited ___. _.________ pp. 69, 70 Liability for violating or assenting to violation of section 22 of act... ______. Ll ee__p. 52 sec. 22(f Member of Federal Reserve Board ineligible __.________ p. 20, sec 10 Penalty for accepting fees or commissions. ___. pp. 50, 51, sec. 22 (¢) Preferential interest rate on deposits of directors prohib- ited... _. ceceee-—_ DP. 52, sec. 22 (e; Purchase or sale from or to, of property, terms of ..._ p. 51, sec. 22 (d) National banks— Interlocking directorates, when prohibited __. _______ Personal liability of directors of, for noncompliance with the act________ Discounts (see also Rediscounts): Domestic shipment of nonperishable readily marketable sta- ples, paper growing out of __. -- ceeee DP. 29, see. 13 Exception to limitations on, as prescribed by secs. 9 and 13. _ pp. 26, 27, sec. 11 (m) D. 3, sec. 2 Exportation of nonperishable, readily marketable staples, paper growing out of _ _ ____________ emeccmoaa P- 29, sec. 13 Federal intermediate credit banks. -- Pp. 90, 91, 92 5 4 f) 1) 1 0) 1) 4 [NDEX 123 Discounts— Continued. Federal reserve banks— General provisions regarding (see also Rediscounts)---- pp. 28, 29, 30, sec. 13 Sight or demand bills... eee P- 29, sec. 13 Subject to limitations and regulation of Federal Reserve Board... o-oo iii. D.82,8ec. 13 Foreign banking corporations, notes, drafts, bills of exchange, acceptances, cable transfers, ete... eo. Pp. 57, sec. 25 (a) Limitations on, of paper of any one borrower. .__ p. 18, sec. 9; p. 26, sec. 11 (m); pp. 29, 30, sec. 13 Member banks can not act as agent for nonmember bank to obtain discounts. _.--- _. p. 47, sec. 19 National agricultural credit corporations .--- mem pp. 92, 94 Nonmember bank paper bearing indorsement of, ineligible for discount for Federal intermediate credit bank___-..-.. p. 33, sec. 13 (a) Notes of veterans secured by adjusted service certificates. pp. 98, 99 Promissory notes of member banks secured by paper eligible for rediscount- - - cco cmmmmm moma p. 31, sec. 13 _ Rates of. (See Discount and interest rates.) Discount and interest rates: Computation of, on sight and demand bills of exchange--.--- P. 29, sec. 13 Federal Advisory Council may recommend... eeeea_P. 27, sec. 12 Federal reserve bank may establish ._.. —eo_p. 35, sec. 14 (d) Federal Reserve Board may review and determine. . -- -. p. 22, sec. 11 (b); p. 31, sec. 13; p. 35, sec. 14 (d); p. 99 Tax on deficiency in reserves of Federal reserve banks against } notes must be added to____...---- C__ p. 28, sec. 11 (c) Discount transactions by Federal reserve banks: Acceptances to furnish dollar exchange. . eee. P. 32, sec. 13 Member bank acceptances. - - cn-em-mm--- cee-. Dp. 30, sec. 13 Member bank promissory notes secured by eligible paper... p. 31, sec. 13 Notes, drafts, and bills arising out of actual comercial trans- actionB. como --a- ap oo meme_- DP. 28,29, sec. 13 Notes, drafts, and bills drawn for agricultural purposes ---- Pp. 28, 29, sec. 13: p. 33, sec. 13 (a) Dissolution: Federal reserve bank __.... Foreign banking corporations. .------- Effect on liabilities previously incurred Failure to comply with act. National banks. __ Failure to comply with act__- Survival of remedies and penalties. District, definition of term__ o_o. -oo-o---- . ae Districts of Federal reserve banks. (See Federal reserve districts.) Dividends: Federal reserve banks_ . _.---- oe DP. 13, sec. 7 Foreign banking corporations... -------------. --~=--- p. 63, sec. 25 (a) Member banks, payment while reserve with Federal reserve bank below requirement. _..-----~-------D- 15, sec. 9; pp. 47, 48, sec. 19 Member State bank must make report to Federal reserve bank of payment... oeoocoomoammna mm Division of earnings of Federal reserve banks 124 INDEX Dollar exchange, acceptance by member banks to provide... pp. 32, 33, sec. Ii Domestic corporations, restrictions on purchase of stock in, by ; foreign banking corporations vp 58, 59, sec. 25 (& Drafts: . Acceptance of, by foreign banking corporations. _.______ p. 57, sec. 25 (a Foreign banking corporations may purchase, sell, discount, or negotiate. ________________ —eee P. 57, sec. 25 (8 Rediscount of, (See Rediscounts.) Earnings of Federal reserve banks, division Of eameeiaccccceo. D. 13, BEC Edge Act. (See Foreign banking corporations.) Edge corporations. (See Foreign banking corporations.) Election of directors of Federal reserve banks. memeececce--- Pp. 8-11, sec: : Eligibility of paper for discount (see also Rediscounts) ..____ pp. 28-31, sec. 13 pb. 83. sec. 13 (8 Embezzlement: By officers, directors, agents, or employees of Federal reserve banks or member banks, or by receivers of insolvent nations banks. _____. SR pp. 87, 8¢ By officers, directors, clerks, agents, employees, examiners, or. . receivers of foreign banking corporations ____________ p. 63, sec. 25 (8 Emergency currency, limitations of, act of May 30. 1908, extended , to June 30, 1915. _______________. . ve ecemeen P. 66, sec. 20 Evidences of indebtedness, foreign banking corporations may pur- chase, sell, discount, or negotiate__ -e- P. 57,800.25 (8 Examinations: Federal reserve banks— By Federal Reserve Board. __._. p. 22, sec. 11 (a); pp. 49, 50, sec. 2! Special, when__._____. pp. 49, 50, sec. 21 Foreign banking corporations— By Federal Reserve Board. Expenses of, how paid. _. Special examination. Member banks— Appointment of examiners_. . _. p. 18, sec. 9; p. 48, sec. 21 At least twice in each calendar year... _____. . w__ D. 48, sec. 2! By Federal Reserve Board. p. 16, sec. 9; p. 22, sec. 11 (a); p. 49, sec. 21 Expenses, how paid. _______ -ee-ao_ DP. 16, sec. 9; p. 49, sec. 21 Federal reserve examination of, copies of reports may be furnished to State authorities bv Federal Reserve Board. .....___ Report of, to Comptroller of Currency... ———— Special examination by Federal reserve banks_._________- Special examination by Federal Reserve Board__________ p. 16, sec. © p- 49, sec. 2} p- 49, sec. 21 p. 16, sec. 9; p. 49, sec. 21 State examinations accepted by Federal reserve banks and Federal Reserve Board -- P. 16, sec. 9; p. 48, sec. 2) National banks— Comptroller of Currency, bY coco _______ p. 48, sec. 21 Fiduciary records subject to inspection by State authori- ties _________._ = + ieccceceo-. Pp. 24, sec. 11 (kK) Special examination of foreign branches of rene D. 54, sec. 26 Lo. 18 = (a) = (a) : (a) ae. 1 sc. 4 13; (a) - R8 fa) , 97 ta) 21 21 ‘a) (a) [21:3 21 21 21 21 5 9 21 21 9; 21 21 1 k) 25 INDEX 125 Examinations—Continued. Plates, dies, ete., of Federal reserve notes... Powers of examiners... Special— emeee—- P- 41, sec. 16 ee D. 49 see. 21 By Federal reserve banks_._._... een P- 49, sec. 21 By Federal Reserve Board... p. 18, sec. 9; p. 49, sec. 21; p. 54, sec. 25 Foreign banking corporations by Federal Reserve Board_. p. 54, sec. 25; p. 63, sec. 25 (a) Foreign branches of national banks bv Federal Reserve Board... cecceee--- PD. B4,sec.25 State authorities, copies of reports of Federal reserve examina- tions may be furnished to, by Federal Reserve Board_._____. Pp. 16, sec. 9 State examinations may be accepted_____..___. p. 16, sec. 9; p. 48, sec. 21 State member banks._.___.__. ee --. DP. 16, 18, sec. 9; p. 49, sec. 21 Acceptance. of examination made by State authorities.__. p..16, sec. 9; p. 48, sec. 21 Expenses of, how paid-_..._-<-~-------. DP. 16, sec. 9; p. 49, sec. 21 Not subject to provisions of section. 5240, Revised Stat- ATE. ee coeur D- 18, sec. 9 Special examinations bv Federal Reserve Board or Fed- eral reserve banks__... -__- p. 18, sec. 9; p. 49, sec. 21 Visitatorial powers, extent of... on Pp.49.8ec. 21 Examiners: Accepting loan, gratuity, ete_. ee—eee__ D. 50, sec. 22 (a) Appointment of... ~.. cerem-- DP. 16, sec. 9; p. 48, sec. 21 Disclosure of confidential information, penalty _____..__ p. 50, sec. 22 (b) Disqualification as future national bank examiner........ p. 50, sec. 22 (a) Federal Reserve Board to appoint_. teeeeece-= P. 16, 5€c. 9 Foreign banking corporations, salaries fixed by Federal Re- serve Board; how paid... oee—-_ Dp. 83, sec. 25 (a) Loan or gratuity by banks, officers, directors, or employees prohibited; penalty. _-. - Pp. 50, sec. 22 (a) Member banks— Comptroller of Currency with approval of Secretary of Treasury may appoint... c--comeomaaoon-mncmamman Pe 48, sec. 21 Disclosing names of borrowers or collateral for loans... p. 50, sec. 22 (b) National banks— : Disqualification to hold future office, as. ..o—------ P- 50, sec. 22 (a) Service for compensation for bank. officer, director, or eeeo Pp. 50, sec. 22 (b) —e-- DP. 50, sec. 22 (a) cee P- 50, sec. 22 (b) p- 49, sec. 21 p- 49, sec. 21 n. 49, sec. 21 employee____. Penalty for accepting loan or gratuity... Penalty for disclosure of confidential information__. Powers. eeeoaceua-. . Report of. to Comptroller of currency. Salaries... __ . . mmm Fixed by Federal Reserve Board upon recommendation of Comptroller of Currency ~~ Pp. 49, sec. 21 Report to Congress__cooc-no---. -=- D- 49, sec. 21 Theft by, from member bank; penalty. ----ceoo--onn- P- 50, sec. 22 (a) Unlawful concealment of property of member bank; pen- 7: wis mn emeceen- DP. 50, sec. 22 (a) Unlawful taking of property of member bank; penalty... p. 50, sec. 22 (a) Exceptions to limitation on total outstanding liabilities of national banks ——- DP. 31, sec. 13; p. 85 126 INDEX Exceptions to limitation on liability to national bank of any one . borrower_.___ p. 8 Exchange charges... -- Pp. 28, sec 1 Exchange, purchase and sale of, by foreign banking corporations. p. 58, sec. 25 ® Expulsion of State bank from membership in Federal reserve sys- tem. __ __ cece. D. 18, sec. Extension of provisions of act of May 30, 1908, to June 30, 1915__ p. 66, sec. 2 » Factors’ paper, discount of ._________ False certification of checks, penalties __ False entries. _ _ Farm lands, loans on, by national banks Farm Loan Act___ Farm loan bonds: Purchase and sale of, by— Federal reserve banks _~ Member banks. _____ _ _ A Securities not issued as, prohibition against advertising; pen- alty___ ie. pp. 96-98 “Federal,” limitation against use of word; penalty; exceptions... Pp. 96-98 Federal Advisory Council, general powers and duties of _________._ p. 27, sec. 12 Federal farm loan bends, limitation against advertising of securities BB mt oe mim Bs i Sms en i eee pp. 96-98 Federal foreign banking corporations. (See Foreign banking cor- porations.) Federal intermediate credit banks: Acceptances of, purchase and sale by Federal reserve banks. p. 36, sec. 14 (f’ Debentures of, purchase and sale by Federal reserve banks. p. 33, sec. 13(a) Federal reserve banks— As depositary of __ _ p. 87, sec. 19 As fiscal agent for p. 37, sec. 15 Powers___.._.. pp. 90, 91 Discounts. _ pp. 90, 91 Loans__ ol i. .___ pp.90,91 Rediscount of agricultural paper of, by Federal reserve banks. p. 33, sec. 13(a) Federal land banks: Depositaries of public moneys, security required. _________. Deposits in member banks. 22 Of part of capital. ______ om Securities and current funds, interest. _______. __ ______ - Farm loan bonds, purchase and sale of, by Federal reserve banks and member banks Federal reserve agent: Appointment, method of ..__. ______. p. 9, sec. Assistant Federal reserve agents. p. 10, sec. Appointment, method of . p. 10, sec. Bond required... _._______. p. 10, sec. 4 Duties and powers. __ p. 10, sec. 4 Number of _. p. 10, sec. 4 Salary .._.. Ce cecem-- p. 10, sec. 4 Bonds, Federal Reserve Board may require.__.__.______ p. 23, sec. 11 (i) Chairman of Federal reserve bank board of directors.____ pp. 9, 10, sec. 4 | » mB p. 29, sec. 13 bp. 15, 19, sec. 9; p- 89 , sec. 25 (a); P- 87 .-. Pp. 52, sec. 24 pp. 72: 73 82 . 13 (a) a 9 7 13 _ 86 87 24 73 73 72 -98 -98 12 of &) 1 a) 15 15 al 91 91 a) 72 73 72 73 3 INDEX 127 Federal reserve agent—Continued. Custody of unissued Federal reserve notes and collateral for Federal reserve Notes. .ommecccccoecmam-m——cemmmw==-==== DP. 40, sec. 16 Deposits of gold or gold certificates with Federal Reserve Board or United States Treasurer _.. wove n-----PP- 40, 42, sec. 16 Deposits with, by Federal reserve bank to reduce liability on Federal reserve notes. -- ee eeeu- p39, sec. 16 Deposit with, of gold, gold certificates and lawful money, joint custody with Federal reserve bank... -------—---- DP. 40, sec. 16 Duties of ooo oeoeemeemee eee PP. 9, 10, sec. 4; pp. 37-40, sec. 16 Election of directors, duties with respect to. o---DpD. 8,9,8ec.4 Embezzlement, ete.; penalty. p. 88 Federal reserve notes— Approval or rejection of application for... eee. D- 39, sec. 16 Custody of collateral for___. eeu. D. 40, sec. 16 Custody of unissued notes__._.__.. weee-- D. 40, sec. 16 Holding money for redemption of. __ pp- 39, 40, sec. 16 I88UANCe - ome eieeeew- Pp. 37, ec. 16 Joint custody with Federal reserve bank of Federal reserve notes. (cocoon 5 wo EE ceeee. Pp. 40, sec. 16 Local officer of Federal Reserve Board ...oo—- - —-oooqenn P- 9, sec. 4 Notice to Federal Reserve Board of issuance and withdrawal of Federal reserve notes_- ee—--D. 37, sec. 16 Qualifications. ..--. «= «+ —-coe--- een DP. 9 sec. 4 Redeposit of money with Federal Reserve Board or Treasurer. p. 40, sec. 16 Reports to Federal Reserve Board_.__ eeeee PP- 9, 10, sec. 4 Return of unfit Federal reserve notes to comptroller for can- cellation___. ——--. Dp. 38, sec. 16 Salary. --_-. I veee-- DP. 10, sec. 4 Unauthorized issue of Federal reserve notes, penalty ___._-__. p. 87 Federal reserve bank notes: Authorization and method of issue._-.--—e-----P- 7, sec. 4; p. 45, sec. 18 General provisions concerning. . -—- PD. 7, sec. 4; p. 45, sec. 18 ISSUE — oom mmm mmm mn am==== Pr 7, sec. 4; p. 45, sec. 18 Not limited to capital stock of Federal reserve bank_-___ p. 7, sec. 4; p. 45, sec. 18 p- 89 sec. 16 p. 45, sec. 18 oe. ae—w-p. 45, 5ec. 18 Dp. T. scc, 4: p. 45, sec. 18 Lien on assets of bank. _._. .-o--- Obligations of Federal reserve bank. - Redemption of __._. Security occas Federal reserve banks: Absence of chairman or deputy chairman_--.-———--ooooonoo- Pe 10, sec. 4 Accounts, books, and affairs, Federal Reserve Board may examine.___.. .. Lo een P. 22, sec 11 (a) Accounts opened in foreign countries. - cece. =. ——-- Pp. 35, sec. 14 (e) Accounts with other Federal reserve banks.._._.._...__ p. 35, sec. 14 (e) Administration of affairs of, must be fair and without dis- crimination to member banks .------- emmeeeee~ Pp. 7, sec. 4 Advances to member banks on 15-day promissory notes... p. 31, sec. 13 Affairs, Federal Reserve Board may examine. ..._-.-... p. 22, sec. 11 (a) AGENCies. ooo ooo cece sommes mmmmm=m———meoe—--- PD 35, sec. 14 (e) Alaska, other dependencies and possessions, banks in, may become members. .- ———oaememo-mmcsmemunmm-mao-c--- P. 48, s€C. 19 Application for stock in __...---- P- 5. sec. 4; p. 11. see. 5; p. 14. sec. 9 41632°—81—2 128 INDEX Federal reserve banks—Continued. Assessment against, by Federal Reserve Board to cover cost of Federal reserve notes____._____. -. rmeeeeee--_ D. 41, sec. 16 Assessment against to pay expenses of Federal Reserve Board. p. 20, sec. 10 Assets of, Federal reserve notes, lienon___________ ._______ p. 89, sec 16 Assignment to, of rooms, vaults, space. ete.. used by United States subtreasuries___... p. 90 Authority to commence business... ._ p. 7, sec. 4 Board of directors (see also Directors)... -—- Pp. 7, sec 4 Books, Federal Reserve Board may examine. —-.-.___... p. 22, sec. 11 (® Branch banks (see also Branches, Federal reserve banks)..... p. 5, sec: 3 Buildings, limitation on cost of erection___.__ —ee_- Pp. 22, sec. 10 Bullion, may deal in; security required.. vee- P. 35, sec. 14 (a) By-laws____. -- Pp. 7, sec 4 Capital stock— Amount of required. ....___. cceeee- Pp. 4,seC. 2 Cancellation; limitation on amount in any one year..... p. 17, sec. 9 Subscriptions to insufficient. _.._.____.. ___________ pp. 3, 4, sec. 2 Surrender of, by member banks (see alse Stock, Federal re- serve banks)__.._____ pp. 11, 12, sec. 5;p. 12, sec. 6; pp. 16, 17, sec. g Value of share of _____ _ p. 11, sec. 5 Voting power of share of... cece Pp. 4, seC 2 Certifying checks drawn against insufficient funds. —— p. 86 Chairman of board of directors. _ ceee- DP. 9, sec. 4 Charter, length of _. iemew- Pp. 6. seC. 4 Circulating notes. (See Federal reserve bank notes; Federal reserve notes.) Clearing and collection charges regulated by Federal Reserve Board. ___.___. -. p.28,sec. 13; p. 42, sec. 10 Clearing-house functions . p.28,sec. 13; p. 42, sec. 16 Collections __.______ p. 28, sec. 13; p. 42, sec. 16 Atpar._.__.____. p. 28, sec. 13; p. 42, sec. 16 Charges. ...._._. p. 28, sec. 13; p. 42, sec. 16 Nonecash items____. _ p. 28, sec. 13 Cooperative marketing associations, discount of paper of. p. 34, sec. 13 (8) Corporate powers in general _._._.. eem-- DP. 6, 7, sec. 4 Correspondents in foreign countries. ..___. —___ D. 85, sec. 14 (&) Custody of funds deposited with, as subtreasuries of United States.._. ___. pe Custody with Federal reserve agent of Federal reserve notes and gold, gold certificates, or lawful monev issued to or depostied with latter... -. D. 40, sec. 16 Dealing in gold or bullion; security require” ..______ p. 35, sec. 14 (a) Deficiency in reserves, graduated tax upon. © ees D. 22, sec. 11 (0) Definition of term ‘ ‘reserve bank” ________ cece p.1,sec.] Depositories for Federal intermediate credit banks and national agricultural credit corporations. __ -- Pp. 37, sec. 16 Deposits— By member banks... --=- D. 28, sec. 13; p.42,sec.16 By national agricultural credit corporations of bonds, ete., of United States to begin business_____ p. 94 By nonmember banks in.........________._ __________ p.28, sec. 13 By other Federal reserve banks in.....__.. p. 28, sec. 13; p. 42, sec. 16 By the United States. __ Dp. 28, sec. 13: p. 36. sec. 15: p. 89 9 0 a nN {0 3 0 3) 1 6 6 5 3 B 3 3 y A “3 D ) 2) 3 3 6 INDEX 129 Federal reserve banks—Continued. Deposits— Continued. Gold, gold certificates, and lawful money with Federal reserve agent, joint custody of. eee- p-40,8ec.16 Reserves required against... -_. pp. 87, 38, sec. 16 United States bonds and notes as security in lieu of sureties on penal bonds... -—— With, as subtreasuries of United States, funds must be kept separate, custody of... memo With Federal reserve agent to reduce liability on Federal reserve notes... - Deputy chairman of board of directors_._.. .. Directors. (See Directors, Federal reserve banks.) Discounts, general provisions relating to (see also Discounts; Rediscounts)._- p. 18. sec. 3; pp. 26, 27. sec. 11 (m); pp. 28, 29, 30, sec. 13; p. 33, sec. 13 (a) Discrimination for or against member banks prohibited..-.-- p. 7, sec. 4 Dissolution. .occ-o---- cee Dp. 6, sec. 4; p. 13, sec. 7 Dividends on stock__. eme—e- Pp. 13, sec. 7 Division of earnings. coco. oo —-- eee. Pp. 18. 8c. 7 Doubtful assets, Federal Reserve Board may require writing off of occa m __ p. 28, sec. 11 (g) Earnings— Distribution of ._. Co ime—- Pp. 13,88. 7 Franchise tax to United States; how applied... ------- P- 13, sec. 7 Surplus fund... mme—ee—_ p. 13, sec. 7 Election of directors... eeaao-u- --- DD. 8, 9, sec. 4 Embezzlement, ete., from______ .——.. Dp. 87, 88 Examination of coo. eo. TD. 22, sec. 11 (a); Dp. 49, sec. 21 Exchange charges against, prohibited... ---ce--c----- p- 28, sec. 13 Exchange of United States 2 per cent gold bonds by; condi- tion_ _. eeee—r--- Dp.45,46, sec. 18 Exemption from taxation ..___.- mmmeee-. Pp. 13, sec. 7 Expenses for Federal reserve notes - —-- Dp. 41, sec. 16 Factors’ paper, discount of ._____.--—- eee P- 29, sec. 13 False certification of check by officers, directors, etc.; penalties... _--—- pp. 86, 87 Farm loan bonds, may invest in. se p. 73 Federal Advisory Council... .-. eee. P-27,8ec.12 Federal intermediate credit banks, mav invest in debentures of .__. Ce eemecem—em—-- DP. 33, seC. 13 (a) Federal Reserve Bank of New York, when value of foreign coin is determined by _ ooo ommommmmmmmomn sommrmeooo- p. 105 Federal Reserve Board may examine accounts, books, and affairs. ._.--_. i eieo—- D-22,sec. 11 (a); p. 49, sec. 21 Federal reserve notes. (See Federal reserve notes.) Fifteen-day promissory notes of member banks, advanceson___ p. 31, sec. 13 Fiscal agents— Deposits receivable from United States. For Federal intermediate credit banks. _ meen For national agricultural credit corporations. _. _____.___ Shall act as, when required. w------ Foreign accounts...._---- Foreign agencies_ _ —eee~ D. 36, sec. 16 p 37, sec. 15 p. 37, sec. 16 eewe-- D.36,sec. 15 —-ew-- DP. 35, 36, sec. 14 (e) pp. 35, 36, sec. 14 (e) 130 INDEX Federal reserve banks— Continued. Foreign banking corporations as members of. _ ..__.- p. 62, sec. 25 (a Foreign coin, value of, determined by Federal Reserve Bank of New York and certified daily to Secretary of Treasury... _. p. 10¢ Forfeiture of membership of member banks..________.._ pp. 16, 19, sec. ¢ Franchise tax______. eee mmmmmeeoo D. 13, sec. 7 Gold, may deal in; security required... eee. PD. 35, sec. 14 (a) Gold settlement fund_____.. -_. Dp. 42, 43, sec. 16 Government depositories, may act as. _.. eem- DP. 36, sec. 15 Impartiality in dealings with member banks required_._.___ p. 7, sec. 4 Insolvency of ._____ __. p. 13, sec. 7 Interdistrict rediscounts__. ~- Pp. 22 sec. 11 (b);p. 99 Joint custody with Federal reserve agent of Federal reserve notes_ ____. p- 40, sec. 16 Liabilities of shareholders. . .. Dp. 3, sec. 2 Liability on Federal reserve notes. - ween P. 39, sec. 16 Lien on assets.._. - p. 39, sec. 16 Reduction of. __.__. —eu- P. 39, sec. 16 Liguidation or reorganization_.___.___. __ eeeee- D283, sec. 11 (1) Liquidation, surplus, disposition after payment of debts. _____ p. 13, sec. 7 Member banks’ 15-day promissory notes, advances on, by____ p. 31, sec. 13 Member banks, information to be furnished Federal Reserve Board concerning condition of. _ ceo. D. 49, sec. 21 Minimum capital required... ....________ _...___._._.._ p.4,sec.3 National agricultural credit corporations— May invest in debentures of ____ - .—-- D. 33, sec. 13 (a) To hold sceurity deposited by... o_o _________ pp. 94, 95 Offenses against by officers, directors, etc., of; venalty.._____pp. 86, 87, 88 Officers and employees— Assistant Federal reserve agents. (See Federal reserve agents.) Bonds (See also Bonds) _. .- p-.B6,sec. 4 Chairman ...o o_o ioe. eww PP. 9, 10, sec. 4 Criminal offenses against Federal reserve bank; penalty _ pp. 86-88 Embezzlement, fraud, unauthorized acts; penalty. ______ pp. 87, 88 False certification of checks; penalties ___.______.____. pp. 86, 87 Federal reserve agent. (See Federal reserve agent.) Removal of _..___. « = eames De 38; sae. 11 Salary, subject to approval of Federal Reserve Board... p. 10, sec. Senator or Representative in Congress ineligible as officer_. p. 8, sec. Suspension or removal of officers or directors by Federal Reserve Board... Cemeo—~ Pp. 23, sec. 11 (f) Open-market operations (see also Federal reserve banks, POWErs) cco oeoe = - mmmceceecam--- Dp. 34, 35, 36, sec. 14 Character of paper may purchase or sell.__. p. 29, sec. 13; p. 34, sec. 14 Dealing in gold and bullion, security required. . .-- DP. 35, sec. 14 (a) Purchase and sale of farm loan bonds__.__._____.______. p. 73 Regulation by Federal Reserve Board..____.._ pp. 34, 35, 36, sec. 14 State, county, and municipal bills, notes. revenue bonds, and warrants... ____._.__. ceecee-- DP. 35, sec. 14 (hi Operation of, under supervision and control of board of direc- OTS. oem ceecee- Dp. 7,sec. 4 Organization .__________.______________._.__.._______ pp. 5,86, sec. Organization certificate, requirements of, when and where filed _ nD. 6. sec. a) 105 9 7 ‘a) 16 15 4 V7 09 16 te 2 16 16 16 (h) 7 13 21 . 2 a) 95 QR 4 4 38 88 R7 £2) 4 . 4 £3 14 14 ‘a) 73 14 Hh) INDEX 131 Federal reserve banks—Continued. Powers— Accounts with other Federal reserve banks; when__-- p. 35, sec. 14 (e) Advances to member banks on promissory notes... .--- P. 31, sec. 13 Agencies in foreign countries... oo. ioeme- Pe 35, sec. 14 (e) Appointment of officers and employees._..-- teeee—- Dp.6, sec. 4 Buy and sell— Bonds and notes of the United States__..--—--- P. 35, sec. 14 (b) Bills arising out of commercial transactions...-- Dp. 35, sec. 14 (o) Bills of exchange... --- Pp. 29, sec. 13; pp. 34, 35, sec. 14 Cable transfers, bankers’ acceptances,----.-------- D- 34, sec. 14 Debentures of agricultural credit corporations.-- p. 33, sec. 13 (2) Debentures of Federal intermediate credit banks_ p. 33, sec. 13 (a) Farm loan bonds -o---- ees mmm mom el B55 p. 73 Gold coin and bullion. ____..__. eee Dp. 35, sec. 14 (a) Municipal securities. - eemn-'D. 85, sec. 14 (b) Sight and demand bills_. _ eo meee—_ Pp- 29, sec. 13 United States bonds securing circulating notes of member banks. __ oe ——___ DD. 44, 45, sec. 18 By-laws__.._-. Lo. ome. P.7, sec. 4 Check collections._._. - omeeo_ D. 28, sec. 13; p. 42, sec. 16 Contracts. ome omeeeeecee. —memaoe-- D. 6, eC. 45D. 22, sec. 10 Contracts for erection of branch bank buildings..._._-- P. 22; sec, 10 Corporate, in general _._.___.- meee. DD- 6,7, sec. 4 Correspondents, appointment of, in foreign countries. __.. pp. 35, 36, sec. 14 (e) Dealings in gold and bullion: security, when required--- - p. 35, sec. 14 (a) Deposits. -_------ Db. 28, sec. 13; p. 42, sec. 16; pp. 46, 47, 48, sec. 19 Depositories for Federal intermediate eredit banks. .___. p. 37, sec. 15 Depositories for national agricultural credit corporations. p. 37, see. 15 Discount notes. drafts, and bills of exchange._..-------- PP: 28, 29, 30, 32, sec. 13; p. 33, sec. 13 (a) Dollar exchange, discount or purchase of drafts drawn to furnish oc ccc mmmmmem --2- Dp. 32, sec. 13 Establish discount rates..--. _ _-.__ p. 35, sec. 14 (d) Examinations of oo — ooo oveoeecn mann P. 22, s€C. 11 (a); p. 49, sec. 21 Federal intermediate credit banks. purchase and sale of . acceptances of oo. coo. commommmmmmmmnoeno-n Pe 36, sec. 14 (f) Federal Reserve Bank of New York, when authorized to determine value of foreign coin. oowaecwn-nnnnonm- p- 105 Fiscal agent for Federal intermediate credit banks._..__. p. 37, sec. 15 Fiscal agent for national agricultural credit corporations. p. 37, sec. 16 Fiscal agent of United States, may be required to act as. p. 36, sec. 15 General provisions relating to. ---cwne--renr--m-=n---- DD. 28-33, sec. 13; pp. 33, 34, sec. 13 (a); pp. 34-36 sec. 14 Interdistrict rediscounts. -.-----=--=------- P. 22, sec. 11 (b); p. 99 Limitation on rediscount of paper of any one borrower for State member bank _.coveeoonanna-- eemmenee-~ Pp. 18,8ec. 9 Limitation upon. until authorized to commence business by Comptroller of Currency --- - —- p.7 sec. 4 Open-market operations. -------- P- 29, sec. 13; pp. 34-36, sec. 14 Receive deposits of United States bonds and notes ac- cepted as security in lieu of sureties on penal bonds_ p. 103 Receive Government deposits. _ p. 36, sec. 15 132 INDEX Federal reserve banks—Continued. Powers—Continued. Receive items for deposit, collection, or exchange.__.... p. 28, sec. 13; D. 42. gee. 16 Rediscounts. (See Rediscounts.) Retirement of Federal reserve notes... cecmmee- DP. 40, sec. 16 Seal, may adopt and use... eeee Pp. 6, sec. 4 Special examinations... -——- PD. 49, 50, sec. 21 State, county, and municipal bills, notes, revenue bonds and warrants, may buy and sell. ___.. cmeeme- P. 35, sec. 14 (b) Subtreasury functions... - SE p. 89 Suits by and against... eeece—e- DP. 6, sec. Two per cent gold bonds of United States, exchange by Federal reserve banks; conditions. _ —e——_ PD. 45, 46, sec. 18 Visitatorial powers.__._ cemeeee_ P. 49, sec. 21 Withdrawal and substitution of collateral for Federal reserve notes... __._. meme —meeme—n-. DP. 40, sec. 16 Rates of discount -._.__ weno Pp. 22, sec. 11 (b); p. 35, sec. 14 @ Rediscounts (see also Rediscounts)— Federal Reserve Board may limit amount according to maturity of paper_____. © ee-e-- D. 84, sec. 13 (a) For other Federal reserve banks__.__._...... p. 22, sec. 11 (b); p. 99 General provisions relating to (see also Rediscounts)_____ pp. 29-32, sec. 13; pp. 33, 34, sec. 13 (a) Notes of veterans secured by adjusted-service certificates p. 99 Rates, establishment of __________ p. 22, sec. 11 (b); p. 85, sec. 14 (d) Removal of officers and employees... _._. cee. Pp. 28, sec. 11 (f) Report of payment of dividends by member State banks_._.. p. 15, sec. 9 Salaries and expenses of directors. veieeece_ Pp. 10, sec. 4 Salaries of officers and employees provided by board of directors subject to approval of Federal Reserve Board__ p. 10, sec. 4 Shareholders’ lability _..._.._ feeeeeeee= PD. 8, sec. 2 Special examination of .__.___._.. eo. PP. 49, 50, sec. 21 Special examinations of State member banks by. mmee—- D. 49, sec. 21 Special report of condition of... ___... i eeeee_- Pp. 50, sec. 21 Statements and reports. Federal Reserve Board may require. p- 22, see. 11 (a) Stock. (See Stock.) Subtreasuries of United States. oo caeeeoo-. ecm p. 89 Supervision and control of board of directors._..__......_-. p. 7, sec. 4 Supervision over, vested in Federal Reserve Board_..._._ p. 23, sec. 11 (j) Surplus fund, disposition after dissolution. ._........_._...._ p. 13, sec. 7 Suspension of operations by Federal Reserve Board__.._. p. 23, sec. 11 (hb) Suspension or removal of officers and directors.........--- p. 23. sec. 11 (f) Taxation of— Capital stock and surplus exempt from. p. 18, sec. 7 Real estate subject to_ p. 18, sec. 7 Title omen. p. 2, sec. 2 Transfer of funds among. - p. 42, sec. 16 Value of share of stock of _.. own Pp. 11, sec. b Voting power of share of stock of _..______._____...____.. p.4, sec 2 Weekly statement of condition of, by Federal Reserve Board. p. 22, sec. 11 (a) CD. 25. gcc. 11 (2) Writing off doubtful or worthless assetc 3 (6 16 4 21 b) 39 4 18 21 16 DD a) 39 32, a) 99 d) f) J 4 2 21 21 21 22, ‘a) QQ 4 3) 7 h) ) 7 7 . 2 16 5 2 22, 2 x) INDEX 133 Federal Reserve Board: Allotment of refunding bonds----.. Annual report___ ~~. Applications for cancellation of stock__ mee PD. 44, sec. 18 ee-- P. 21, sec. 10 pp- 11, 12, sec. 5; p. 12, sec. 6; pp- 16, 17, sec. 9 Assessments against Federal reserve banks to pay expenses [) SE. eo. P.20, sec. 10 Branches of Federal reserve banks... wee. p.5,sec.3 Chairman, Secretary of Treasury, ex officio... —-. Pp- 20, sec. 10 Character of duties, etc., to be performed. - ee. Pp. 28, sec. 11 (i) Class C directors, appointment of, by... eeeee_ P. 9,sec. 4 Clayton Act permits; revocation of _..._.. a pp. 69-71 Clearing house for Federal reserve banks. ome eemeee—emn-- DP. 42, sec. 16 Conflict with powers of Secretary of Treasury. .--c-w-m-=--- DP: 21, see. 10 Deposits with Secretary of Treasury subject to order of. pp. 42, 43, sec. 16 Deposits of gold or gold certificates with Federal reserve agents. Dp. 40, sec. 16 Designation or requirement of Federal reserve bank to act as clearing house... .-~--. eee PD. 42, sec. 16 Ex officio members ..cecooan. - i. —-. p. 19, sec. 10 Expenses, assessments against Federal reserve banks. _..---- DP. 20, sec. 10; pp. 41, 43, sec. 16 Expenses of handling deposits with Secretary of Treasury... Pp. 43, sec. 16 Expenses of money shipments._ _-.-- ee-_ DP. 43, sec. 16 Federal Advisory Council... --. ._ p. 27, sec. 12 Federal reserve agent, appointment of, by--- eee. p-9,sec. 4 Federal reserve districts, readjustment of o-oo oooona- p. 2, sec. 2 Federal reserve notes, regulation of issue_. p. 23, sec. 11 (d); p. 39, sec. 16 Fiduciary powers to national banks granted by___-- PP. 23-26, sec. 11 (k) Gold settlement fund. -- pp. 42, 43, sec. 16 Governor, appointment and duties. --—---- ee———-= P- 20, sec. 10 Insolvency of foreign banking corporations, appointment of receiver on_.._--- mee Pp. 62, sec. 25 (a) Members of .__.-_. oe. p. 19, sec. 10 Appointment... i w--- D. 19, sec. 10 Connection with banks, restrictions on. p. 20, sec. 10; p. 62, sec. 25 (a) Employment by member banks. restrictions on_._..-- P. 20, sec. 10 Ex officio. _-. eeee_. Dp. 19, sec.’ 10 Expenses. -. ccmce——= P- 20, sec. 10 General provisions regarding... w= PD. 19, 20, 21, sec. 10 Governor, designation of; POWer-w---o-co-ommmm-zmo=oo p. 20, sec. 10 Holding stock in foreign banking corporations prohibited, p- 62 sec. 25 (a) Dath of office. cccmana-- fe ee ccmmem--- D. 20, sec. 10 Officer or director of foreign banking corporation; restric- HON... missin » i meecee—eee== D. 62, sec. 25 (a) Qualifications oo c-wnv-zo--- PP: 19, 20, 21, sec. 10; p. 62, sec. 25 (a) Representation of financial. agricultural, industrial, and commercial interest. and geographical divisions __.___ p. 19, sec. 10 BRlarY ooo ocmeccmecmmmmmmms m=eas ===-—=----- DPD. 19, 20, sec. 10 Senator or Representative in Congress ineligible. _~.-_. p. 8, sec. 4 Term of office. ooo cmmmmmmm=mmmem=me===om=m—wanea- Pe 20, sec. 10 Vacancies, appointment by President to fill. reeee~ Pp. 21, sec. 10 Vice governor. designation of. p. 20, sec. 10 134 INDEX Federal Reserve Board—Continued. Officers and employees— Appointed without regard to Civil Service Act_.____ p. 26, sec. 11 ( Embezzlement, ete.; penalty_.__. memes p- 8¢ President of United States may place in classified service. p. 20. sec. 11 (I Salaries fixed in advance, how paid._.____ reeen P. 26, sec. 11 (I Unauthorized issue of Federal reserve notes; penalty ____ p. 8 Offices, assignment to, in Treasury building by Secretary of Treasury... fmeeeo. PD. 20, sec. 10 Organization and operation of, general provisions regard- ing.___. se=--- PP. 19, 20, 21, sec. 1U Permission of, under Kern amendment to Clayton Act, for interlocking directorates; revocation of._. J p. 70 Powers— Accept examinations made by State. _.___.__._.._______ p. 48, sec. 2! Agricultural paper, may fix amount which a Federal re- serve bank may discount_.____._________________p. 34, sec. 13 (a) Appoint receivers of insolvent foreign banking corpora- tions. oo... feeeceeoo- P. 62, sec. 25 (2) Assessment against Federal reserve banks to cover cost of printing and retiring Federal reserve notes. __._.___ p. 41, sec. 16 Assessment against Federal reserve banks to pay ex- penses of ____. : —. emeeee- DP. 20, sec. 10 Banks outside of continental United States applying for membership_______. cemeeee- D. 48, sec. 19 Branches of Federal reserve banks, may permit, require, or discontinue. ________________ wammmme «Ph 5; 500. B Cancellation of Federal reserve bank stock, may re- quire oe iiiei cmeeeeo_.__ p.186, sec. 9 Character of paper eligible under section 13 for discount with Federal reserve banks, may determine and define. p. 28, sec. 13 Class C directors of Federal reserve banks, appointment of .___.__.. memmemcae- PP. 8, 9, sec. 4 Clayton Act permits for interlocking bank directorates. _ pp. 69, 70 Clearing house for Federal reserve banks_._. . ._____._._ p- 42, sec: 16 Conflict with powers of Secretary of Treasury... ....___ p. 21, sec. 10 Dealings between member banks and directors. ._.______ p. 51, see. 22 Discount of paper, may fix amount for Federal reserve banks_.._. —meeeoo D. 34, sce. 13 (a) Discounts of Federal reserve banks subject to regulation |} ZN fee cmmcecee- PD. 82,8ec. 13 Discretion in passing on applications of national banks for fiduciary powers.._._.____________________ pp. 23-26, sec. 11 (k) Dollar exchange acceptances by member banks subject to regulation by. ______________________.___ p.32 sec. 13 Doubtful or worthless assets, may require writing off... p. 28, sec. 11 (g) Employment of attorneys, experts, assistants, clerks, Pri Btn mm re --- DP. 26, see. 11 (1) Examination of banks__. . eee DP. 16, sec. 9; DP. 22, sec. 11 (a); pp. 48, 49, sec. 21; p. 54, sec. 25; p. 63, see. 25 (a) Examination of Federal reserve banks. maw DP. 2, sec. 11 (a); nD. 49. see. 21 J 38 10, 1) 1) 2 0 (} 70 2] a) 2) 0 0 J 3 3 70 16 10 9 LJ) 2 7) 3 3) 1) > INDEX 135 Federal Reserve Board-—Continued. Powers— Continued. Examination of foreign banking corporations. .-ae----- D. 54, sec. 25; p. 63, sec. 25 (a) vemeeeee—w DP. 18, sec. 9; p. 22, sec. 11 (a); pp. 48, 49, sec. 21 Exercise general supervision over Federal reserve PANKS ooo meme —-_ p. 28, sec. 11 (§) Expulsion of State member bank from Federal reserve system____._.. ee ieee p. 16, sec. 9 Extend charters of foreign banking corporations... pp. 63, 64, sec. 25 (a) Federal reserve agent, may require bond of _...--- P- 23, sec. 11 (i) Federal reserve districts, readjustment of eee~ P-2,8ec.2 Federal reserve notes, issue of. on. Pp. 21, sec. 10; p- 23. sec. 11 (d); pp. 37-41, sec. 16 Fiduciary powers of national banks... eee. D. 28, sec. 11 (k) Foreign branches of national banks__. —---- pD. 53, 54, sec. 25 General _____... - __ pp. 22-27, sec. 11 Interdistrict rediscounts_.___-. eee p- 22, sec. 11 (b); p. 99 Liquidation or reorganization of Federal reserve PAKS. eee meme eo Pp. 28, sec. 11 (h) Member State banks subject to regulation by. -—oeo---- P- 14, sec. 9 Membership in Federal Reserve System, may forfeit. pp. 16, 19, sec. 9 Nine months’ paper, may fix amount which Federal re- serve bank may discount... eee. DP. 34, sec. 13 (a) Opening of account, appointment of correspondent and ) establishment of agency in foreign country by Federal reserve banks. cocccceeceno—an==-=-- PD- 35, 36, sec. 14 (e) Open-market operations of Federal reserve banks, regula- $00 BY eo imemmmcemmmm mmm =m==m===o====-= PP. 34-36, sec. 14 Paper eligible for rediscount with Federal reserve banks, may define... ooono-- Cee m--.. PD. 28,29, sec. 13 Permit Federal reserve banks to discount paper of any one borrower in excess of limit of section 9 and section 13, when ooo. o- .—-_ Dp. 26, 27, sec. 11 (m) Permit member bank to make acceptances up to 100 per cent of capital and surplus_-_..-- -~ ---==-------~ P- 30, sec. 13 Purchase and sale of bills and acceptances by Federal reserve banks subject to regulation ..o-o--ocooooo-- P 32, sec. 13 Purchase by national banks of stock of foreign banking Corporations. «wooo. commommecomomm-soes pp. 53, 54, 55, sec. 25 Rates of discount. ...----- Dp. 22, sec. 11 (b); p. 35, sec. 14 (d); p. 99 Receiver of foreign banking corporations, may appoint. p. 62, sec. 25 (a) Rediscount by Federal reserve bank of member banks’ paper of any one borrower in excess of limitations im- posed by sections 9 and 13, may permit__.._ pp. 26, 27, sec. 11 (m) Rediscount of paper of other Federal reserve banks, may require... —-- eee- DP. 22, sec. 11 (b); p. 99 Rediscount rates... __----.- DP. 22, sec. 11 (b); p. 35, sec. 14 (d); p. 99 Rediscounts by Federal reserve banks, may limit accord- ing to maturity of paper--------- —eew_ D. 34, sec. 13 (a) Rediscounts of Federal reserve banks subject to regula- tion by.__ —- D. 32, sec. 13 136 INDEX Federal Reserve Board—Continued. Powers—Continued. Rediscounts, paper drawn for agricultural purpose or based upon livestock. ___.______ oe_ P. 33, sec. 13 (8) Regulations. (See Rules and regulations.) Remove officers and directors of Federal reserve banks_ p. 23, sec. 11 ® Reports of examination of member state banks, copies of, may be furnished to State authorities, by..__... .___ p. 186, see. 9 Reports of Federal reserve banks. ___ feeC__ DP. 22, sec. 11 (8) Reports of foreign banking corporations. ___._.__.___ p. 63, sec. 25 (a) Reports of member banks_________ pp. 15, 16, sec. 9; p. 22, sec. 11 (a) Require Federal reserve banks to act as clearing houses_.. p. 42, sec. 16 Require Federal reserve banks to purchase United States honds securing circulating notes of member banks.__.. p. 44, sec. 18 Require Federal reserve banks to rediscount paper of other Federal reserve banks_._._......._._ p. 22, sec. 11 (b); p. 99 Reserve and central reserve cities, may classify, add to, or terminate __ __.._ _. oie. P. 23, sec. 11 (0) Reserve requirements, may suspend for 30 days; tax im- posed on deficiency ___._____ eee. PD. 22, sec. 11 (©) Reserves, member banks. ________._.__.____._ pp. 46, 47, 48, sec. 19 Restore membership to expelled State bank... . ..__.._. p. 16, sec. 9 Review discount rates... _. ercee—meeeee- DP. 35, sec. 14 (d) Review rates on 15-day notes of member banks_______.. p. 31, sec. 13 Revocation of Clayton Act permits... _______.._ p. 70 Rules and regulations, in general (see also Rules and regu- lations) _.___.. ree—_ D. 23, sec. 11 () Salaries of officers and employees of Federal reserve banks_ p. 10, sec. 4 Six months’ paper, may fix amount which Federal reserve bank may discount__ _________ __________._.... p.34, sec. 13 (8) Special examinations of State member banks_ p. 18, sec. 9; p. 49, sec. 21 Statement in detail of each Federal reserve bank, shall pub- lish each week, contents_____. .. _. cmmmeeea P- 22, sec. 11 (a) Statements and reports, general, may require. ..._... p. 22, sec. 11 (a) Supervise and regulate through Comptroller of the Cur- rency issue and retirement of Federal reserve notes__ p. 23, sec. 11 (d) Supervision of Federal reserve banks, general_._.____ p. 23, sec. 11 (j) Surrender of Federal reserve bank stock, may require.... p. 186, sec.'9 Suspend reserve requirements. .___. ceeme—__ P.22,sec. 11 (0) Suspension of operations of Federal reserve banks; liquida- tion and reorganization____________ p. 13, sec. 7; p. 23, sec. 11 (h) Suspension or removal of officers and directors of Federal reserve banks__________. amen eee D. 23, sec. 11 (f) Trust powers of national banks we-- DP. 23-26, sec. 11 (k) VisHatorial coven mmo mssvemsmmsnsnpuins sewn oe De 16, 500. 9; n. 22, sec. 11 (a); pp. 48, 49, sec. 21; p. 54, sec. 25; p. 63, sec. 25 (a) Waiver of six months’ notice of withdrawal____________ p. 17, sec. 9 Writing off of doubtful or worthless assets of Federal re- serve banks... eemee—e—- DP. 23, sec. 11 (g) Rates of disecount___._ ...___.. Dp. 22, sec. 11 (b); p. 35, sec. 14 (d); p. 99 Readjustment of Federal reserve distriets_..__._.____..____ Pp. 2, sec. 2 Rediscount of paper discounted by Federal reserve banks, may TeQUITe no oe eee memes mmmeeaw Pr 22, sec. 11 (Db); p. 99 Regulations. (See Rules and regulations.) 1] £) 3) 2) Bf 8 10 3) c) 19 9 1 13 70 D a) 21 4) 1) Ce) 1) 1) Fe + 1) 9 z) 59 } +0 INDEX 137 Federal Reserve Board—Continued. Removal of Federal reserve bank officers or directors... p. 23, sec. 11 ® Report of, annual. __ © eemee—- DP. 21, sec. 10 Representatives in Congress ineligible as members of .--uo-- P- 8, sec. 4 Review of organization committee’s determinations... P- 2, sec. 2 Review rates of discount_____.__ oe. D. 35, sec. 14 (d) Salaries of employees. __. oe. P.26,sec. 11 () Salaries of members... —_... __ p. 19, sec. 10 Secretary of Treasury, conflict of power between Secretary and Federal Reserve Board. .._ —_ Pp. 21, sec. 10 Senators in Congress ineligible as members of... __. p.8 sec 4d Special examinations of— Federal reserve banks_____. ee —__ DD. 49, 50, sec. 21 Foreign banking corporations._______. p. 54, sec. 25; p. 63, sec. 25 (a) Foreign branches of national banks____. —-__ p. 54, sec. 25 Member banks__...- __ p. 16, sec. 9; p. 49, sec. 21 Staff, employment and expenses of....- eee. p. 26, 8ec. 11 (I) Statement of condition of Federal reserve banks. ———_ Dp. 22, sec. 11 (a) Must publish weekly... p. 22, sec. 11 (a) Nature of contents... eee. p- 22, sec. 11 (a) Supervision of Federal reserve banks, in general... -._-.- P. 23, sec. 11 (§) Supervision of foreign accounts of Federal reserve banks__..-oo--- -_ pp. 35, 36, sec. 14 (e) Suspension of reserve requirements___. - _ p. 22, sec. 11 (ec) Trust powers granted to national banks bv .- p- 23, sec. 11 (k) Vacancies, how filled... eee P- 21, sec. 10 Vice governor__..--- eee PD. 20, sec. 10 Weekly statement of condition of Federal reserve banks_. p. 22, sec. 11 (a) Federal reserve cities, designation of _- - p. 1, sec. 2 Federal reserve districts: Alaska excluded. __._--. Creation and apportionment. Designation. _....- Number of ceoomemaaeen Readjustment of - -oocceooo-. Federal reserve notes: Additional security may be required by Federal Reserve Board. p. 37, sec. 16 Agricultural paper as security for..----- eeee-- P. 83, sec. 13 (a) Application for, may be granted in whole or in part.._.. pp. 37, 39, sec. 16 Appropriations for national-bank notes subject to use for fur- TIER isms im mms cs - p- 41, sec. 16 Cancellation and destruction. ------ Sem--- DP. 38, sec. 16 Collateral seCUIItY. ooo —noonoommnnn--- D. 33, sec. 13 (a); pp. 37-39, sec. 16 Amount and character required --.. —--- weem—eece- Pp. 37, sec. 16 Federal Reserve Board may require additional _..._._.. p. 37, sec. 16 Gold or gold certificate, as part of reserve of Federal re- serve banks. — — _—omeemn cme. —mmmmmm—-——o———-—._ DP. 38, sec. 16 Paper drawn for agricultural purpose or based upon live- StoCk meen see DP. 33, sec. 13 (a) Return to Federal reserve bank upon retirement. ____...__ p. 40, sec. 16 Transmission of gold to United States Treasurer for re- demption purposes...---- —-- pp. 39, 40, sec. 16 Withdrawal and substitution of ..__. e mec——e-_ p.40,sec. 16 Comptroller of Currency, duties regarding. p. 21, sec. 10; pp. 40, 41, sec. 16 138 INDEX Federal reserve notes—Continued. Custody pending issue___ Custody of plates and dies_.. Delivery___. Denominations. _____ Deposit of, prior to delivery. _. _— Deposited with Federal reserve agent to reduce liability, re- issue, terms of _..______ p. 39, sec. 16 Deposits as reserve against____ p. 89, sec. 16 Deposits with Treasurer to cover redemptions... ___.___ Pp. 38, sec. 16 Description. __. _-_ pp. 37-41, sec. 16 Discretion of Board to grant application for issue. ____. pp. 37, 39, sec. 16 Distinctive letter and number.. -—~-. DD. 38, 41, sec. 16 Engraving and printing_______. pp. 40, 41, sec. 16 Exchange of, for gold coin or bullion. .. Dp. 35, see. 14 (a) Expenses— Appropriations for national-bank notes mav be used. ___ p. 41, sec. 16 Issue and retirement... _. . -- Pp. 41, sec. 16 Paid by Federal reserve banks._. p. 41, sec. 16 Form and tenor... ___.__.__ eo Pp. 41, sec. 16 General provisions regarding. .___.____ seee—_:-- PD. 837-41, sec. 16 Gold reserve, graduated tax on deficiency, amount of .____ p. 22, sec. 11 (¢) Interest on_.__. em mmmememeeeeeee eo _ DP. 89, seC. 16 [ssue. - ~me---- DP. 21, sec. 10; p. 23, sec. 11 (d); pp. 37-41, sec. 16 At discretion of Federal Reserve Board... ---- DP. 37, 39, sec. 16 Authorization for__ _ p. 87, sec. 16 Custody of, issued to Federal reserve agents. __ p. 40, sec. 16 Execution of laws relating to_ _ _ p. 21, sec. 10 Expenses of, how paid. ______. feeeccee_ Pp. 41, sec. 16 Federal reserve agent shall daily notify Federal Reserve Board of .__.___ Purpose of. _.._.____ Regulation by Federal Reserve Board___ Through Federal reserve agents Unlawful, penalty _._._.__. Letter and serial number__________._. Liability of Federal reserve banks— Lien on assets... - p. 39, sec. 16 Reduction of _.. _.______________ Pp. 39, sec. 16 Lien on assets of Federal reserve bank. _. ieee= DP. 89, sec. 16 Livestock paper as security for______________.__________ p. 33, sec. 13 (a) Notice to Federal Reserve Board of issue and withdrawals___ p. 37, sec. 16 Obligations of United States..___________.________________ p.37, sec. 16 Paying out by Federal reserve bank other than issuing bank, prohibited... ..___. me—o-- D. 38, scc. 16 Plates and dies. .___. RE w ——=—-- PP. 40, 41, sec. 16 Control and direction of Comuvtroller of the Currency.___ p. 41, sec. 16 Examination of _._. p. 41, sec. 16 Printing of, expenses____ p. 41, sec. 16 Purpose for which issued... p. 37, sec. 16 Rate of interest on. ________ . ___.__..__.________________ p.39, sec. 16 Receipt by one Federal reserve bank of notes of another, pro- cedure... Ce e._.______.0p. 38 sec.16 Received by United States Treasurer other than for redemp- tion _ _. D. 38 sec. 16 0 6 6 6 6 10 16 (6 16 (6 16 6 1) 16 16 16 6 BH Y 6 6 8 6 6 0 Af 2 0 a 3d 2 3 3 INDEX 139 Federal reserve notes—Continued. Redemption... wo ——- DD. 37-40, sec. 16 Fund to provide for. _.__ --- PD. 38, 39, sec. 16 Gold collateral sent by Federal reserve agent to United States Treasurer for purpose of... .._ pp. 39, 40, sec. 16 In gold at Treasury Department__..____ eeee_. Pp. 87, sec. 16 In gold or lawful money at Federal reserve banks. .____.'p. 87, sec. 16 Procedure. cco. -____ Dp. 38,39, 40, sec. 16 Use of 5 per cent gold fund as part of reserve _.-------- P- 39, sec. 16 Where made... ----- eee. p.37,sec. 16 Reduction of liability for... ooo DP. 39, sec. 16 Reserve._____. __ pp. 37, 38, 39, 43, sec. 16 Against notes retired... --- Pp. 40, sec. 16 Five per cent redemption fund, use as part of ...._---.—- P 39, sec. 16 Retirement __.._.._. . _ p. 23, sec. 11 (d); pp. 37-40, sec. 16 Expenses, how paid. ____ p. 41, sec. 16 Procedure. o-oo orca on ee —_ DP. 40, sec. 16 Regulation by Federal Reserve Board. --_ P. 28, sec. 11 (d} Reissue, terms of ._______-. - _ p. 40, sec. 16 Reserve against, by Federal reserve banks... - p. 40, sec. 16 Return or retirement by another Federal reserve bank _._._.. P- 38, sec. 16 Security. (See Federal reserve notes, collateral security.) Six and nine months’ agricultural paper as security for___ p. 33, sec. 13 (a) Status as CUITeNCY - - ceceoen - oeo_. DP. 37, sec. 16 Supervision and control of issue and retirement. p. 21. sec. 10; p. 23, sec. 11 (d) Tax on deficiency in gold reserve. __ p. 22, sec. 11 (c) Unfit for circulation___._. .__ p. 38, sec. 16 United States, obligations of ___.. ceee_ P. 37,sec. 16 Unlawful issue, penalty oooooorv pp. 87, 88 Use of, for taxes, customs, and other public dues p- 37, sec. 16 Withdrawal of collateral... __.. es eeeee__ p.40,sec. 16 Withdrawals, Federal reserve agent shall daily notify Federal Reserve Board of _ _—.____._ .---- Fees for procuring loans forbidden... Fiduciary powers of national banks: Application for, circumstances Federal Reserve Board may con- sider in Passing Ono oo ooo. mmmmmmmmmonos pp. 23, 25, sec. 11 (k) Bond required by State, execution of, not mandatory... Pp. 25, see. 11 (k) Capital required to exereise__.--.-cc-----=---- eee P- 25, see. 11 (k) Deposit of securities with State, when required. _. . - Pp. 24, sec. 11 (k) Deposits in trust department, restrictions upon... vee D. 24, sec. 11 (k) Failure of bank. ____.. CC ieceew D. 24, sec. 11 (Kk) Federal Reserve Board may grant to national banks..__. Dp. 23, sec. 11 (k) General provisions regarding. —-v--w--=--=------ PP: 23-26, sec. 11 (k) Loan of trust funds to officer, director. or employee pro- hibited; penalty -ccecccameocwmnommmoo-=mm === P- 25, sec. 11 (k) Records open to inspection by State authorities. ...._.—_- p. 24, sec. 11 (k) Segregation of trust assets from general assets required.._ p. 24, sec. 11 (k) Separate set of descriptive records necessary-.---------- Pp. 24, sec. 11 (k) State law requiring oath or affidavit, who may execute.__ p. 25, sec. 11 (k) Trust funds carried in separate account, when necessary... p. 24, sec. 11 (k) Trust funds used in conduct of bank’s business, deposit of securities in trust department necessary. ..---.--.--- Pb. 24, sec. 11 (k) Fifteen-day promissory notes of wpember banks, advances by Fed- eral reserve banks on. p. 31, sec. 13 140 INDEX Financial agents of United States, members of Federal Reserve Sys- bem as. ______ p. 19, sec. 9; p. 79 Financial interests, representation of , on Federal Reserve Board__ p. 19, sec. 10 Fiscal agents, Federal reserve banks as, for Federal intermediate credit banks and national agricultural credit corporations. __.__ p. 37, sec. 18 Fiscal agents of the United States: Federal reserve banks.____ ae --_ D. 36, sec. 15; Foreign banking corporation as. ___ . p- 56, sec. 25 (a) National bank as__________________ --__ D. 53, sec. 25; p. 79 Five per cent fund with United States Treasurer by national banks for redemption of notes as part of reserve. _________..__._.... p.48, sec. 20 Five per cent redemption fund for Federal reserve notes as part of reserve of Federal reserve banks_ _ ——- DP. 39, sec. 16 Fixing or controlling of prices by foreign banking corporations or officers, directors, ete_________. ween Dp. 59, 60, sec. 25 (8) Foreign accounts, Federal reserve banks. pp. 85, 36, sec. 14 (e) Foreign agencies: Federal reserve banks___.__ Foreign banking corporations.__ Foreign banking corporations: Acceptances— Limitation on. —-—~ Dp. 57, 58, sec. 25 (a) Power tomake______..______ ___ eeceeees Pp. B7, sec. 25 (a) Purchase, sale, discount, and negotiation. . __ _ p. 57, sec. 25 (a) Agencies, establishment of foreign___. _____... p. 58, sec. 25 (8) Agreement with Federal Reserve Board. ___.._________ pp. 54, 55, sec. 26 Amount of stock may purchase in other corporations. pp. 58, 59, sec. 25 (8) Articles of association— . Character and contents of p. 56, sec. 25 (a) Signatures required. p. 56, sec. 25 (a) Where filed ..._.___.______. ieee p. 56, sec. 25 (a) Assets subject to laws of other countries in case of insolvency; how dealt with_.________________. ______________._ p.63, sec. 25 (a) Banking corporations, foreign, convertion of, into. .______ p. 64, sec. 25 (a) Body corporate, when__.__________. cecceem--- D. b7, sec. 25 (a) Bonds, liability on; limitation. -—- pp. 58, 60, sec. 25 (a) Books required, contents of ___ ———- Dp. 63, sec. 25 (a) Branches, establishment of foreign________ feccee--- D. B8, sec, 25 (a) Business of, can not carry on in United States except such as is incidental to foreign business. . vemeeme-- P. B9, sec 25 (a) Business, permit to begin_. -—- pp. 57, 59, sec. 25 (a) By-laws.._._._. . } ee--. Pp. 57, sec. 25 (a) Capital required of national banks purchasing stock in.....__ p. 53, sec. 25 Capital stock— Citizenship of stockholders Increase, procedure. __..___________._________ [nvestment in, by national banks__ v. 53, sec. 25; Liability of shareholders.__ Meeting of shareholders. .....___ em immmman Member of Federal Reserve Board may not hold... _. Method of payment. . Minimum required______._________ Ownership of majority of shares_____ Reduction, procedure p. 61, sec. 25 (a) p. 60, sec. 25 (a) p. 61, sec. 25 (a) p. 62, sec. 25 (a) p. 63, sec. 25 (a) p. 62, sec. 25 (a) p. 60, sec. 25 (a) p. 60, sec. 25 (a) p. 61, sec. 25 (a) pn. 80. sec. 25( a) 79 10 ‘5 5; a) 79 20 16 a) 8) 3) 1) 25 1) %: INDEX 141 Foreign banking corporations—Continued. Capital stock—Continued. Required for organization _._.--- _ p. 60, sec. 25 (a) Taxation of shares by State... ..- . p. 63, sec. 25 (a) Withdrawal of, prohibited. - ._ p. 61, sec. 25 (a) Charter, extension of; procedure. _. pp. 63, 64, sec. 25 (a) Citizenship of stockholders_. Co mo. p.61,sec. 25 (a) Clayton Act, applicability to officers, directors, etc., of---- P- 55, sec. 25; p. 61, sec. 25 (a) Commerce or trade in commodities prohibited except as spe- cifically provided; penalty. ---coooomocoomommonons p. 59, sec. 25 (a) Conversion of State into Federal corporation; procedure. Dp. 64, sec. 25 (a) Corporate existence, extension of ooo o—ocer -—m--- PP. 63, 64, sec. 25 (a) Corporate powers in general ____. o—-_ Dp. 57, 58, sec. 25 (a) Criminal acts by officers, director, etc., penalty for...__. P- 65, sec. 25 (a) Debentures, liability on, limitation; issue of, limitation. pp- 58, 60, sec. 25 (a) Depositaries of United States— In insular possessions and dependencies of United States. cccwocoaon- _-_ p. 56, sec. 25 (a) In Panama_ oo ---- ._ p. 56, sec. 25 (a) In Panama Canal Zone-_-. - . Pp. 58, sec. 25 (a) In Philippine Islands---. p. 56, sec. 25 (a) Deposits receivable— Outside of United States---. Within United States, when... Directors— Citizenship of o-oo omu- -—-_p. 57, sec. 25 (a) Clayton Act, applicability 10. -ono-- D. B5, sec. 25; p. 61, sec. 25 (a) Criminal acts prohibited; penalty for commission... Dp. 65, sec. 25 (a) Dividends, declaration of, by- eee. D. 63, sec. 25 (a) Election of ooo w- . __.. p. 57, sec. 25 (a) General provisions regarding -~-------- PP- 57, 61, 62, 65, sec. 25 (a) Liability of, in personal capacity for participation in vio- lations of act. cacao =-- eeee—-_ Pp. 62, sec. 25 (a) Members of Federal Reserve Board may not act as_. Pp. 62, sec. 25 (a) Qualifications, must be citizens of United States. --- Pp. 57, sec. 25 (a) Representations that United States is liable for obligations or acts of; penalty... - ceee-- Dp. 65, sec. 25 (a) Unlawful acts of; penalties. --—--ooo--mn----=- pp. 62, 65, sec. 25 (a) Discounts of notes, drafts, bills of exchange, acceptances, cable transfers, etc. ieee P. 57, 8ec. 25 (a) Dissolution of cc ceeen © -- oo. .____. pp. 57, 62, 64, sec. 25 (a) Effect on liabilities previously incurred. _——-. .---- D. 62, sec. 25 (a) For violation of section 25 (a)-- -- pp. 59, 62, sec. 25 (a) DividendB- cm cccmmmme «meme - fmme———-_ Pp. 63, sec. 25 (a) Withdrawal of capital in form of, prohibited ------- P- 61, sec. 25 (a) Embezzlement of funds by officers, directors, or employees; PENAIEY av mcmmmm mmm mmm mmm meme em TTTEET p. 65, sec. 25 (a) Engaging in commerce or trade prohibited; exception... p. 59, sec. 25 (a) Examination of, cost of, paid by corporation_.___. --_ p. 683, sec. 25 (a) Extension of corporate existence. ..-------- ------ PP. 63, 64, sec. 25 (a) Failure to comply with regulations of Federal Reserve Board. p. 55, sec. 25 False entry in books of; penalty. ..-- __ 7p. 65. sec. 25 (a) 142 INDEX Foreign banking corporations— Continued. Federal Reserve Board, member of, may not act as director of ._. semeao DP. 62, sec. 25 (a) Fiscal agents, to act as, when required._. mmmmme- Pp. 56, sec. 25 (a) Foreign branches and agencies, establishment of ________ p. 58, sec. 25 (a) Forfeiture of charter for engaging in commerce or trade__ p. 59, see. 25 (a) [nsolvent— Assets subject to laws of other countries ; how dealt with_. - meeeee-__. D. 63, sec. 25 (a) Receiver appointed by Federal Reserve Board ; powers_p. 62, sec. 25 (a) Interlocking directorates... ___..__.___ D. 55, sec. 25; p. 61, sec. 25 (a) Liabilities outstanding subject to limitation by Federal Reserve Board... ___. ca--=-= DP. 57, 58, sec. 25 (a) Liabilities previously incurred, effect of dissolution on___. p. 62, see. 25 (a) Liabilities upon debentures, bonds, and promissory notes, limitation. .____.. ame. Dp. 58, 60, sec. 25 (a) Liability of directors in personal capacity for participation in violations of act... __________ cceem-o D. 62, sec. 25 (a) Liability of stockholders. __. . mmo De 62, sec. 25 (a) Limitations upon— Commerce or trade in commodities. ___.___________ p. 59, sec. 25 (a) Debentures, bonds, and promissory notes_______ pp. 58, 60, sec. 25 (a) Liabilities outstanding .__________._________ pp. 58, 60, see. 25 (a) Ownership of stoek in any other corporation. ._.____ p. 58, sec. 25 (a) Ownership of stock in corporations competing with._ p. 59, sec. 25 (a) Price control of commodities prohibited... ___ pp- 59, 60, sec. 25 (a) Stock, amount of, which national banks may invest yma +mm--e—c-ec----- DP. B53, sec. 25; p. 61, sec. 25 (a) Total liabilities of all classes subject to regulation of Federal Reserve Board ... .~- Pp. 58, 60, sec. 25 (a) Liquidation. .__.._______._ _____________ p. 62, sec. 25 (a) Loss upon debts contracted in good faith, purchase of stock in corporation to prevent_ ___________.___ won amen DP. 59, see. 25 (a) Meeting of stockholders annually, procedure... ___..__._ p. 63, sec. 25 (a) Member of Federal reserve system, eligibility. _._______ p. 62, sec. 25 (a) Name assumed subject to approval by Federal Reserve Board. _..__._ p. 56, sec. 25 (a) National banks may invest in stock of.___ p. 53. sec. 25; p. 61. sec. 25 (a) Officers and employees— Clayton Act, applicability to... pp. 55, 61, see. 25; p. 61, sec. 25 (a) Liability of, officer participating in or assenting to viola- tion of section 25 (a)______.__ ._ ceemme—u~ DP. 62, sec. 25 (a) Member of Federal Reserve Board as officer or di- BOOUTE ..c.co commen GE sessment mt ems p. 62, see. 25 (a) Representation that United States is liable for obligations or acts of; penalty. _________________________ p.65, sec. 25 (a) Violation of prohibited criminal acts by; penalty___ p. 65, sec. 25 (2) Organization____________. ~--- Dp. 55, 56, 57, sec. 25 (a) Capital required______.____.__ _ mmeeceeec-- DP. 80, sec. 25 (a) Certificate; acknowledgment, signatures, filing. __.._ p. 56, sec. 25 (a) Ownership of shares of stock... ______________________ p. 61, sec. 25 (a) Ownership of stock of other foreign banking corporations, limitations upon... —_- DD. 58, 59. sec. 25 (a) INDEX 143 Foreign banking corporations—Continued. Penalties and forfeitures— Embezzlement of funds. _. . p. 65, sec. 25 (a) Failure to comply with terms of act. p. 62, sec. 25 (a) False entry in books__ _...-- C._ D.65,8ec. 25 (a) Representations that United States is liable for obliga- tions of o_o. -. _ feieecee-_- p- 6b, sec. 25 (a) Unauthorized issue of obligations of ...._._..___.-- DP. 65, sec. 25 (a) Permit to begin business. _- —___ pp. 57, 59, sec. 25 (a) Powers— Accept bills or drafts, limitation... p. 57, sec. 25 (a) Borrow and lend money-- p. 58, sec. 25 (a) By-laws. ______.. p. 57, sec. 25 (a) Charter, period of __. ... p. 57, sec. 25 (a) Corporate... .-- p. 57, sec. 25 (a) Debentures, issue of ooo ---- p. 58, sec. 25 (a) Directors, officers, and employees... . eee. P. 57, sec. 25 (8) Engage in trade or commerce, restriction. ____._.. pp. 59, 60, sec. 25 (a) Establishment of foreign branches and agencies-._. Pp. 58, sec. 25 (a) Exercise of, subject to authorization of Federal Reserve Board to commence business. eee Pp. 59, sec. 25 (a) General banking __._. oo... p.57, sec. 25 (a) Incidental. _.-___. p. 58, sec. 25 (a) Increase of capital oooomonn . p. 60, sec. 25 (a) Issue of letters of credit. o_o — _ooooccmm-———_. PP. 57, 58, sec. 25 (a) Issues of debentures, bonds, and promissory notes; limita BIOL co simi ee __ DD 58, 60, sec. 25 (a) Purchase and sale of coin, bullion, and exchange._._.- Pp. 58, sec. 25 (a) Purchase and sell securities; limitations... ...----- P. 57, sec. 25 (a) Purchase, sell, discount, and negotiate notes, drafts, checks, bills of exchange, acceptances. cable transfers, ete... p. 57, sec. 25 (a) Receive deposits ____. p. 58, sec. 25 (a) Reduction of capital____. = p. 60, sec. 25 (a) Seal, corporate, may adopt and use .-co-ocu-o--no- Pe 57, sec. 25 (a) Stock in other corporations. purchase of, limitation J om perm rst EE es AD 58, 59, sec. 25 (a) Subject to regulation by Federal Reserve Board. _._. p. 57, sec. 25 (a) Suits by and against_______. --. Pp. 87, sec. 25 (a) Withdrawal of capital ___.._.__ eo. Pp. 61, sec. 25 (a) Price control of commodities prohibited; penalty-_-. Pp. 59, 60, sec. 25 (a) Promissory notes, liability on, limitation. ...__.--- PP: 58, 60, sec. 25 (a) Purchase of stock by national banks, limitation on amount. . pp. 53. 54, sec. 25; p. 61, sec. 25 (a) Purposes of corporation ____..._.. -- .__ pp. 55, 56, sec. 25 (a) Receiver for insolvency, appointment, powers. .--------- P- 62, sec. 25 (a) Report of condition to Federal Reserve Board by member banks purchasing stock in.______-_.. -—_- D. 54, sec. 25 Report to Federal Reserve Board... —.—-- -.--o--ooo- Pe 63, sec. 25 (a) Representations that United States is liable for obligations of; penalty oo oooeeemmamnmzemmm------~ DP. 85, sec. 25 (a) Reserves, amount required against deposits in United BUBUBR oe oem mm m0 eee --- Dp. 58, sec. 25 (a) Restrictions on purchase of stock in other corporations. pp. 58, 59, sec. 25 (a) Rules and regulations of Federal Reserve Board. subject to. ®. 57, sec. 25 (a) 41@899°__ 21 10 144 INDEX Foreign banking corporations—Continued. Salaries of examiners paid by_____ ee--- D. 63, sec. 25 (a) Service of officer, director, employee, or agent with stockhold- . ing member bank___._. .-~ Dp. 85, sec. 25; p. 61, sec. 25 (8) Shareholders— Liability of ___. Ee Majority of, to be United States citizens. __ ._.__... Meetings of cue ooo ea Special examination by Federal Reserve Board___. Stock— National banks may invest in__.____. p. 53, sec. 25; p. 61, sec. 25 (a) Ownership of majority of shares of____ p. 61, sec. 25 (a) Taxation of... p. 63, sec. 25 (2) Transfer of __ __. -—- Dp. B7, sec. 25 (&) Substantial competition as affecting purchase of stock in other corporations. _____ p. 59, sec. 25 (a) Succession, period of __.. p. 57, sec. 25 (a) Surplus fund_____. p. 63, sec. 25 (2) Taxation of ...._. p. 63, sec. 25 (a) Unauthorized issue of obligations of; penalty__. .. ___. p. 65, sec. 25 (a) Use of funds, credit or power to fix or control prices prohibited; penalty _______. p. 60, sec. 25 (8) Violation of section 25 (a); penalty... p. 62, sec. 25 (8) Voluntary liquidation, procedure. - - ——-—ooco—oo——_-___. P. 62, sec. 25 (8) Foreign branches of national banks, general provisions concerning (see also Branches, national banks) _.- pp. 53, 54, 55, sec. 25 Foreign countries: Establishment by national banks of branches in__._ pp. 53, 54, 55, sec. 25 Opening of accounts, appointment of correspondents, and es- tablishment of agencies in, by Federal reserve banks.. pp. 35, 36, sec. 14 (e) Foreign currency, value of, manner of determining_.______._..._ pp. 104, 105 Forfeitures. (See Crimes and penalties.) Franchise tax on Federal reserve banks.._ __ p. 18, sec. 7 Q Geographical divisions, representation of, on Federal Reserve Board_____.____.. eee- p. 19, sec. 10 Gifts for procuring loans forbidden_ .- pp. 50, 51, sec. 22 (¢! Gold: Collateral for Federal reserve notes. (See Federal reserve notes, collateral security.) Collateral for Federal reserve notes as part of reserve of Fed- eral reserve banks.____.._ men Dealings in, by Federal reserve banks; security required._._.. Deposits by Federal reserve agent with Federal Reserve Board or United States Treasurer. _..-—w--—vow-vo..-... pp. 40, 42, sec. 16 Deposits with Federal reserve agent; joint custody with Fed- eral reserve bank__.____ Redemption fund for national bank notes. - eee Secretary of Treasury may borrow on security of United States bonds to strengthen gold reserve or to maintain parity of MONEY. econ mmmeeee = Ce Rettlement fund of Federal reserve banks... ---. D. 66, sec. 26 --- Dp. 42, 43, sec. 16 INDEX 145 Gold bonds: Thirty-year 3 per cent bonds of United States, issue of. pp. 45, 46, sec. 18 United States 2 per cent bonds, exchange of, by Federal reserve banks_... ._ pp. 45, 46, sec. 18 Gold certificates: Collateral for Federal reserve notes as part of reserve of Federal reserve banks oo oa--eoe- ——-- p.38,sec. 16 Deposits by Federal reserve agent with Federal Reserve Board or United States Treasurer - -- Dp. 40, 42, sec. 16 Deposits with Federal reserve agent; joint custody with Fed- eral reserve banks... --- eo D.40,8ec. 16 Gold notes of United States, terms of issue__. -—-. D.45,8ec. 18 Gold reserve: Deposit liabilities of Federal reserve banks. --- Pp. 87, sec. 16 Federal reserve notes..--——~--- —-. pp. 37, 38, sec. 16 Secretary of Treasury may strengthen by borrowing gold or selling one-year 3 per cent gold notes_ em. D.68,8ec.26 Tax on deficiency ------- temo Pp. 22, sec. 11 (c) Gold settlement fund-..- -. feee—- DD. 42, 43, sec. 16 Gold United States 2 per cent bonds, exchange of, by Federal re- serve banks; conditions oo couu--- o——-_ DPD. 45, 46, sec. 18 Government depositaries (see also Depositaries of the United States): Federal land banks as, security required. EE p. 72 Foreign banking corporations as- .-- Dp. 56, sec. 25 (a) Joint stock land banks as-. mmm p. 72 Member banks 88---e-ceec. .---- D. 19. s€C. 9; p. 36, sec. 15; pp. 79, 80 Government deposits: In farm land banks... -- heme p. 72 In Federal reserve banks_ .. Pp. 36, sec. 15 In foreign counfries_ -.—cvnu---- p. 74 In joint-stock land banks ___._-- .-: -----mo-omoesooooo p- 72 In member banks__-. .-ceucee--- P- 19, sec. 9; p. 36, sec. 15; pp. 79, 80 Proceeds of sales of Liberty bonds_..- ee __ Pp. 78,74,75 Public moneys of United States..----. eee__PDP.T78,74,75 Nature of, permitted in Federal reserve banks-_. --- pp. 36, 37, sec. 15 Nonmember banks... iee--- D- 36, sec. 15 Postal savings funds.___-- CC eoe_._ p-36,sec.15;p.71 Proceeds of sales of bonds and certificates of indebtedness_... pp. 73, 74, 75 Gratuity to bank examiners forbidden; penalty.--—----ue---- P- 50, sec. 22 (a) 3 U Inconsistent laws repealed. .o-—coooo-nmem-m-- ee e--- D. 66, sec. 26 Increase of capital of foreign banking corporations. --------~ D- 60, sec. 25 (a) Indebtedness, bonded, of United States, franchise tax applied to. p. 13, sec. 7 Industrial interests, representation of, on Federal Reserve Board. p. 19, see. 10 Insolvency of foreign banking corporations .-- Pp. 62, sec. 25 (a) Insolvency of member banks... _--- - Pp. 12, sec. 6 Insular possessions of United States: Establishment by national banks of branches in-_.._.. pp. 53, 54, 55, sec. 25 Foreign banking corporations in, as depositaries of United States... - meeeme—eeee--~- p. 56, 5ec 25 (2) National banks in, may join system or remain nonmembers... p. 48, see. 19 Insurance agents, national banks may 8Ct 88 ooo ieeeeeeeoom—- DP. 32, sec. 13 Interdistrict rediscounts_._. . p.22,sec. 11 (b); p. 99 146 Interest: Notes of veterans secured by adjusted service certificates. pp. 98-102 Payment by member banks on deposits of officers, directors, attorneys, and employees; restriction_______. eeeee DP. 52, sec. 22 (8) Payment by national banks on time and savings deposits____ p. 53, sec. 24 Sight or demand bills discounted by Federal reserve banks__ p. 29, sec. 13 Interlocking bank directorates, prohibitions of Clayton Act in gen- eral (se¢ also Clayton Act) oem _____.. Ce meeeee—- Dp. 69, 70 Invalidity of part of act not to invalidate all___. . . ______ p. 68, sec. 29 Investment by national banks in foreign banking corporations... p. 53, sec. 25; p. 61, sec. 25 (a) Investment by member banks in national agricultural credit cor- porations...__._____._.___.. _.__. . J [ssue of Federal reserve bank notes. (See Federal reserve bank notes.) [ssue of Federal reserve notes. (See Federal reserve notes.) [ssue of national bank notes. (See National bank notes.) Joint-stock land banks: Clayton Act not applicable to__. Depositaries of public money, security requirea_ eo Farm loan bonds, purchase and sale of, by Federal reserve banks and member banks p. 70 p. 72 p. 73 i Kern amendment, Clayton Antitrust Act, as amended by. ___.___ pp. 69, 70 Lawful money, deposits with Federal reserve agent; joint custody with Federal reserve banks_ .- Dp. 40, sec. 16 Laws repealed by act________ -—-. Dp. 68, sec. 26 Letters of credit, issue of, by foreign banking corporations. pp- 57, 58, sec. 25 (a) Liabilities of foreign banking corporations, limitations upon, effect of dissolution.___________ pp. 58, 60, 62, sec. 25 (a) Liabilities of national banks: Effect of dissolution on_________. .. ... ...____. _...___ p.3 sec 2 Exceeding capital stock prohibited; exceptions_...____ p. 31, sec. 13; p. 85 Restriction on; exceptions_..___._. .. ceem-- DP. 31, sec. 13; p. 85 Liability of shareholders of Federal reserve banks ceecee--~ DP. 8, sec. 2 Liability of shareholders of foreign banking corporations._____ p. 62, sec. 25 (a) Liability of shareholders of national banks. <= Pp. 52, sec. 23 Liberty bonds: Proceeds of sale of, deposits of, reserves... _.. _________ pp. 73,74, 75 Rediscount of paper secured by______ pp. 26, 27, sec. 11 (m); p. 29, sec. 13 Liberty Bond Acts: First. ___ Second._._.. Third_.___.__ ett wp Rg A TSS 3 ge SE eR Lien on assets of Federal reserve banks to secure Federal reserve notes.__.__.____. - Pp. 39, sec. 16 Limitations: Acceptance powers of foreign banking corporations_______ p. 57, sec. 25 (a) Acceptances by member bank for any one person, firm, corpor- ration, ete p. 30, sec. 13 INDEX 147 Limitations—Continued. Acceptances to furnish dollar exchange... ..----- PDP. 32, 33, sec. 13 Amount of Federal reserve bank stock which may be held____. pp. 2, 4, sec. 2; p. 15, sec. 9 Cost of erection of buildings for branches of Federal reserve TTUTTIONL eee oo Fm is © emo. p-22,sec. 10 Deposits by member banks with nonmember banks. _..--.-- bP. 47, sec. 19 Dollar exchange acceptances of member banks... _.._..-- P- 32, sec. 13 Domestic acceptances of member banks... oo PD: 30, sec. 13 Establishment of branches by State member banks _._.__.-.- P. 15, sec. 9 Exceptions on limitations of total liabilities of national BARKS. — oe eee eeeeemmmm mmm me————— DP. 81, seC. 13; P. 85 {ssue of debentures, bonds, and promissory notes by foreign banking corporations. ooo oooeoooo--- PP. 58, 60, sec. 25 (a) Loans by national banks to any one person, firm, Emam p- 82 Member bank deposits in nonmember banks___. —-_ Dp. 47, sec. 19 National bank notes____._. J __. pp. 66, 67, sec. 27 National banks, indebtedness of _.___._.. - __ p. 381, sec. 13; p. 85 Obligations of national banks to one person... p. 82 Purchase and sale of debentures, etc., of— Federal intermediate credit banks by Federal reserve banks...o-.eo- .———- DD. 33, 34, sec. 13 (a) National agricultural credit corporations by Federal re- serve banks__._... ee———-_- DPD. 33, 34, sec. 13 (a) Purchase of stock in other corporations by foreign banking cor- POrations_ ooo commeoooieocmemeommmmmeoeno- PD. 58, 59, sec. 25 (a) Purchase of stock of foreign banking corporations by national BANKS - eee eee mmm meme mem nm mmm m= —= DP. 61, EC. 25 (a) Rediscount by Federal reserve banks of paper of any one bor- rower. .-.---- p. 18, sec. 9; pp. 26, 27, sec. 11 (m); p. 29, sec. 13 State banks, rediscounts for, by Federal reserve banks.-.--..- Pp. 18, sec. 9 Total indebtedness of national banks, exceptions..____ p. 31, sec. 13; p. 85 Use of words “Federal,” “reserve,” or ‘‘ United States Wo iii p. 96 Liquidation: Federal reserve banks... oo _. Dp. 13, sec. 7; p. 23, sec. 11 (h) Foreign banking corporations__.__- —- P- 62, sec. 25 (a) Member banks, effect on membership. _ p. 12, sec. 5 National banks_ _...- ion p. 88 Livestock paper, rediscount of, and as security for Federal reserve notes_-—--.- .. Pp. 33,sec. 13 (a) Loans: Commission for procuring, prohibited--- Examiners.--. -o—-- Farm lands cco ooo ome Member banks. (See Member banks.) Real estate. oem imemmemommme—m—m-----—— PP. 52, 53, sec. 24 Trust funds, to officers, directors, and employees of national banks prohibited. ioonorecomoeommmmea aoe DP 25, sec. 11 (k) Veterans. to, secured by adjusted-service certificates ._..___.. p. 98 M Meeting of shareholders of foreign banking corporations; pro- cedure. _. p. 63, sec. 25 (a) 148 INDEX Member banks: Acceptances— Dollar exchange _.__..__. Domestic, limitation on amount. Domestic shipment of goods.__. Importation or exportation of goods_._. wn Limitation on amount for any one person, firm, corpora- tion, ete.; exceptions. ooo ___. cmceacee——w- Pp. 30, sec. 13 Limitation on dollar exchange acceptances__________. pp. 32, 33, sec. 13 Maturity limited to six months_ _____.______.___________ p. 30, see. 13 Shipping documents as security, when required... __.___._. p. 30, sec. 13 Storage of readily marketable staples. ___ -=-- DP. 80, sec. 13 Up to 100 per cent of capital and surplus, Federal Reserve Board may permit ________ -- PD. 30, sec. 13 Warehouse receipt or other such document covering readily marketable staples as security _. ce-e_ DP. 30, sec. 13 Advances to, on 15-day promissory notes....___-.-_._._._._. p. 31, sec. 13 Advertising of nonmember bank as member prohibited; penalty. —._.__.. -.. . p. 97 Application for stock in Federal reserve banks... —ee=-- Pp. 5, sec. 4 p. 11, sec. 5; pp. 14, 15, sec. 9 Balances of, with nonmember banks... _._..._.__. _._...... p.47, sec. 19 Banking operations, discontinuance of, cancellation of Federal reserve bank stoek_.__.__._.__.___..._____ p. 12, sec. 6; p. 16, sec. 9 Borrowers, disclosure of names of, by bank examiners... .... p. 50, sec. 22 (b) Branches. (See Branches.) Cancellation of stock in Federal reserve banks upon dis- continuance of banking operations, reduction of capital, liquidation or insolvency....... pp. 11, 12, sec. 5: p. 12, sec. 6; p. 16, sec. 9 Capital stock— Amount required as condition to membership__.. p. 2, sec.2; p. 17, sec. 9 Reduction of, cancellation of Federal reserve bank stock DEDOREILY » srmees ms RR sem [Be 3s 990 BD Certification of checks drawn against insufficient funds, ille- gality of ooo... ceememeeeeen_ DP. 18, 19, sec. 9; pp. 86. 87 Circulating notes, sale of United States bonds securing_______ p. 44, sec. 18 Collateral for loans, disclosure of, by bank examiners_____ p. 50, sec. 22 (b) Collections for, by Federal reserve banks_.._.. p. 28, sec. 13; p. 42, sec. 16 Comptroller of Currency, restriction upon service with_______ p. 20, sec. 10 Consolidation of State bank with national bank, effect on branches. ... memmm p. 80 Conversion of State bank into national, effect on branches. __ p. 80 Deficiencies in reserve of___. vew-- D. 22. sec. 11 (c); pp. 47, 48, sec. 19 Definition of term ‘member bank’... wow Pp.1l, sec 1 Depositaries of United States (see also Depositaries of the United States)... -- p. 19, sec. 9; p. 36, sec. 15; pp. 79, 80 Deposits— By United States in. (See Depositaries of the United States.) Federal land banks in_ occ ccomicn eee eee p- 73 In Federal reserve banks, character of __._ p. 28, sec. 13; p. 42, sec. 16 In nonmember banks, limitation on-......_..___.._____ p. 47, sec. 19 National agricultural credit corporation moneys in___.._ p. 96 Postal savings funds in. a p. 71 3 3 3 INDEX 149 Member banks—Continued. Directors (see also Directors)— Fee, commission, gift, etc., for procuring loan from, pro- hibited; penalty .--c----. oe ___. pp. 50, 51, sec. 22 (0) Payment of interest on deposits fe omumme- DP. B2, sec. 22 (e) Purchase or sale from or to, of property, terms of__.. p. 51, sec. 22 (d) Discounts for, by Federal reserve banks. pp. 28-32, sec. 13; p. 33, sec. 13 (a) Discounts, procuring by bribery, illegality of ——._.._ pp. 50, 51, sec. 22 (c) Dividends— On Federal reserve bank stock_______.. er eoo_ P.13,8€0. 7 Payment while reserve with Federal reserve bank below YeQUIreMent «ooo ome ommommmow ===m--=--= PP 47, 48, sec. 19 Report of payment by State bank to Federal reserve bank cco memeeem eee. p.15,8ec. 9 Dollar exchange acceptances... - cee PD. 32, sec. 13 Embezzlement, ete., from... -. p. 87 Examination. (See Examinations.) Examiners. (See Examiners.) Exchange charges_____.__- J eee. P-28,8ec. 13 Expulsion of State bank from membership, procedure...___.. P. 16, sec. 9 Farm loan bonds, may deal in. __. A p. 73 Federal land banks, deposits by, in-- mm p- 73 Federal Reserve Board may examine accounts, books, and af- fairs. _.- cece P- 22, 8eC. 11 (8) Fee, commission, ete., to officer, director, ete., for loan pro- hibited; penalty_._. ----ece-o-e----no-=------ PP: 50, 51, sec. 22 (c) Fifteen-day promissory notes to Federal reserve banks__.._.. p. 80, sec. 13 Financial agents of United States; nature of duties; security required. ----ccc-o-- cam eceee-_ p. 19, sec. 9; p. 79 Foreign banking corporations, eligibility as.._-- —__ p. 62, sec. 25 (a) Forfeiture of membership... cc coemvonn- eeeee-- D.16,8ec. 9 Government depositaries (see also Depositaries of the United States) .o——----. eo-. p. 19, sec. 9; p. 36, sec. 15; pp. 79, 80 Impartial treatment by Federal reserve bank _..-cco-—u--w- p. 7, sec. 4 Increasing capital stock must increase holdings of Federal re- serve bank stock. ~ p.11,sec. b Insolvent— Cancellation of Federal reserve bank stock necessary... p- 12, sec. 6 Dividends to which entitled on holdings of Federal reserve bank stock_._._- ee eccecmen Do 12, sec. 8 Interest on deposits of officers, directors, or employees____ p- 52, sec. 22 (e) Interlocking directorates (see also Clayton AL) cm mm pp. 69, 70 Limitation on amount of paper of one borrower rediscounted for State member banks _____.__.onocoeen---- P- 18, sec. 9; p. 29, sec. 13 Limitations on amount of deposits with nonmember banks___ p. 47 sec. 19 Liquidation of - -. oo Dp. 12, sec. 5; p. 12, sec. 6 Loans— Fee, commission, gift, ete., for procuring prohibited. ——_—e +o . Co. . ei-eu.- DD. BO, 51, sec. 22 (e) Notes of veterans secured by adjusted service certificates. p. 98 Reserve with Federal reserve bank below requirements PES. eeme-i-- PD. 47, 48, sec. 19 Loans or gratuities to bank examiners prohibited____.__ p. 50, sec. 22 (a) Membership rights, privileges, etc., cease upon surrender of Federal reserve bank stock... 150 INDEX Member banks—Continued. National agricultural credit corporations— May invest in stock of .__.._.._______. May keep moneys of, on deposit with__ National banks— In Alaska, may or may not become members ___.__.___ p. 48, sec. 1¥ In United States required to become members. .______ -. Dp. 3, sce. 2 Privileges, rights, etc., cease upon surrender of Federal reserve bank stock. ______. mmm seen 1 11 800 Receiver may be appointed for discontinuance of banking operations_.___. cmeec—-- Pp. 12, sce. Nonmember banks, shall not act as medium for, in securing discounts __...___.. __.__ imme P- 47, sec. 1 Offenses against, by officers, directors, ete.; penalty. ..._.__ pp. 86, 87, 8 Officers and employees— Deposits of, payment of preferential rate of interest to, prohibited... ______________. cecmwe_ Pe 52, sec. 22 (8) Embezzlement, fraud, ete.; penalty___ eee p- 87 Fee, commission, cte., for procuring loan prohibited: penalby___.____________. _. —e———-- Pp. 50, 51, sec. 22 (c; Liability for violation or assenting to violation of section 22of acho __ re oeee_ DP. 52, sec. 22 () Outside of continental United States__.. --- DP. 48, sec. 19 Powers— Acceptances (see also Acceptances, bankers’) .______ pp. 30, 32, sec. 13 Buy and sell farm loan bonds.________. a. p. 73 Deposits in nonmember banks, limitation on____ aeeo- D. 47, sce. 19 Dollar exchange acceptances. ________.__________.____. p. 32, sec. 13 Establishment of branches by State bauks, limitations___. p. 15, sec. 9 Fiduelary ... lo _______....p.28 sec. 11 (K) Government depositaries. .._.__ p. 19, sec. 9; p. 36, sec. 15; pp. 79, 80 Lending on or purchasing own stock, restrictions on_____ p. 15, sec. 9 Loans to veterans on notes secured by adjusted service certificates. _ eee Loans while reserve with Federal reserve bank below requirement. ______________. _._____________ pp. 47, 48, sec. 19 May check against and withdraw reserves with Federal reserve banks______. .. . fe eeceeee__ Pp- 47, 00. 19 Medium or agent for nonmember bank for rediscounts. __ p. 47, sec. 19 Payment of dividends while reserve with Federal reserve banks below requirement. _. ceo—-. DD. 47, 48, sec. 19 Payment of interest on deposits of directors, officers, attorneys, or employees, restriction on__ _________ p- 52, sec. 22 (e) Payment of unearned dividends______________________._ p. 15, sec. 9 Purchase of stock in national agricultural credit corpora- tions. _._. Sd mr mm p. 96 Purchase or sale, from or to directors, of property; terms of ___.. emcee P. 51, sec. 22 (d) Request special examination of Federal reserve banks. _ pp. 49, 50, sec. 21 Transfer or hypothecation of Federal reserve bank stock. __ p. 11, sec. 5 Trust. ._____.___. i emeceeo. D. 23, sec. 11 (k) Withdrawal or impairment of capital stock, restrictions on. p. 15, see. 9 Promissory notes. 15-day, secured bv paper eligible for redis- Se p. 96 p. 96 count eee D. 81. sec. 13 36 A [¥ ? [0 IRQ 3) 7 +) J 3 3 9 3 nN 1) INDEX 151 Member banks—Continued. Purchase of stock in national agricultural credit corporations. p. 96 Purchases from directors_._. ieee. Pp. 51, sec. 22 (d) Receiver, appointment of, effect on membership... wooo P. 12, sec. 6 Rediscount by national agricultural credit corporation of paper indorsed by_----. - sm Sn p. 94 Rediscounts for, by Federal reserve banks. (See Rediscounts.) Reports by State member banks, penalty for failure to render_. p. 16, sec. 9; p. 22, sec. 11 (a) Reserve balance, may be checked against; limitations imposed. p. 47, sec. 19 Reserves— Against deposits of public moneys by United States_.._ pp. 73, 74, 75 General provisions regarding (see also Reserves). pp. 46, 47, 48, sec. 19 Maintain with Federal reserve banks. oo _-ccwe----- P. 46, sec. 19 Shall not make new loans when not maintained. __._ pp. 47, 48, sec. 19 Retirement of circulating notes of... ee eieceeeeeeen D. 44, sec. 18 State banks— Application for membership— Amount of subscription of Federal reserve bank stock required ____. _. .- p.15, sec. 9 Federal Reserve Board to consider financial condition, character of management, and corporate powers-. Pp. 15, sec. 9 Procedure... ———_ PD. 14, 15, sec. 9 Branches. coco. —-- ee eemmemen-~ p.15, sec. 9 Cancellation of Federal reserve bank stock..--.___ pp. 11, 12, sec. 5; p. 12, sec. 6; p. 16, sec. 9 Capital required for membership. oooooueoroouno Pe 17, sec. 9 Circulating note benefits, Secretary of Treasury may extend to... em eee Dp. 67,80. 27 Consolidation with national banks, effect on branches... pp. 80, 81 Conversion into national bank, procedure; effect on branches. _._.__._. ee —w—--_ DD. 13, 14, sec. 8; pp. 80. 81 Depositaries of public money; nature of duties; security required oon ieee- Pp. 19,8ec. 9 Dividends, report of payment to Federal reserve bank__. p. 15, sec. 9 Effect of membership on powers... -__ p.18, sec. 9 Eligibility for membership coo --cooov-ns-------- PP. 14-18, see. 9 Eligibility for membership of bank with branches beyond limits of town, ete., of parent bank —ccooeoo-o Pu 15, sec. 9 Examination of. .._._.. p. 16, sec. 9; b. 22, sec. 11 (a); p. 49, see. 21 Expulsion from membership; procedure ._----~-——----- P. 16. sec. 9 Failure to comply with section 9 of Federal Reserve Act; penalty ______. imme eeiccce-—-- P-16,sec. 9 False certification of checks; penalty_.__ pp. 18, 19, sec. 9; pp. 86, 87 Financial agents of United States; nature of duties; security required.___. p. 19, sec. 9 Insolvent— Cancellation of Federal reserve bank stock necessary. Dividends on holdings of Federal reserve bank stock... Lending on or purchasing own stock, restrictions on... Loans to veterans on notes secured by adjusted service certificates. ooo meme mmm mmm memem Membership subject to regulation by Federal Reserve Roard pp. 14, 15, sec. 9 152 INDEX Member banks—Continued. State banks—Continued. National agricultural credit corporations may deposit moneys if. .occemn. oo. — ——— Purchase of stock by, in national agricultural credit cor- POrations _ _ o_o meee p. 96 Rediscount of paper of any one borrower, limitation on__ p. 18, sec. 9; p. 29, sec. 13 Reports of condition. a. oveun-~.-- pp. 15, 16, sec. 9; p. 22, sec. 11 (8) Reports of dividend payments to Federal reserve bank___ p. 15, sec. 9 Reserves__. eee. Pp. 1B, sec. 9; pp. 46-48, sec. 19 Restoration of membership to expelled bank; procedure__ p. 18, sec. 9 Rights as member cease upon surrender of Federal reserve bank stock o.oo eo Six months’ notice necessary to withdraw from member- ship; Federal Reserve Board may waive ._..._...._.. p. 17, sec. 9 Subject to provisions of Federal Reserve Act.____.____.__ p. 18, sec. 9 Surrender of Federal reserve bank stock____.__________. pp. 11, 12, sec. 5; p. 12, sec. 6; p. 17, sec. 9 Withdrawal from membership. oo... ———- PD. 16, 17, sec. 9 Statements and reports, Federal Reserve Board may require. p. 22, sec. 11 (a) Stock (see also Stock) in Federal reserve banks not to be trans- ferred. _. eee p. 11, sec. 5 Surrender of stock in Federal reserve banks— Rights, privileges, etc., cease upon. _. meen PD. 17,8ec. 9 When required. weeen PP. 11, 12, secs. 5, 6; p. 16, sec. 9 Visitatorial powers to which subject ..._..... p. 16, sec. 9; p. 49, sec. 21 Member State banks. (See Member banks.) Membership in Federal reserve system. (See Member banks.) Money, maintenance of parity. .....oocceoceee—eneeooo-_____ D. 66, sec. 26 Mutual savings bank, Clavton Act not applicable t0- ccc mecca o p. 70 N National agricultural credit corporations: Acceptances, purchase and sale by Federal reserve banks_p. 36, sec. 14 (f) Deposit of bonds or other obligations of United States with Federal reserve banks._. Deposits in member banks... Federal reserve banks— Act as depositaries of security against indebtedness of. __ pp. 94, 95 Depository of... ieee D. 37, sec. 15 Fiscal agent for.__________. p. 37, sec. 15 Member banks may invest in stock of ____.... _ - p. 96 Member banks may keep moneys of, on deposit. ________._. __ p. 96 Permit to begin business, requirements, procedure______._____ p. 94 Powers, discount, rediscount, advance upon, purchase, sell or negotiate paper-.__.__.__ er mm——————— p. 92 Purchase and sale of acceptances of, by Federal reserve banks, when. imme P. 36, sec. 14 (f) Purchase and sale of debentures. ete.. by Federal reserve banks, limitation_..._....._.____ fee—mee—-- DPD. 33, 34, sec. 13 (a) Purchase of stock in, by member banks______________._.__._. p. 96 Rediscount of paper indorsed by member banks___ ee a p. 94 153 INDEX National bank examiner. (See Examiners; National banks, ex- aminers.) National bank notes: Appropriations for, subject to be used for furnishing Federal TeServe NOES — cca memes = _._ pp. 41, 42, sec. 16 Expenses of printing and issuing, reimbursement of United States -oeecoooaeooo _. eee D.42,8ec. 16 Five per cent redemption fund with United States Treasurer as part of reserve of national banks. oo -o-we-meee—-—--- DP. 48, sec. 20 Issue and regulation of; execution of laws relating to, jurisdic- tion of Comptroller of Currency --——co-nc. -=-- P- 21, sec. 10; p. 82 Limitation as to amount of issue, suspension of. ._ p. 67, sec. 27 Redemption fund_ _ _ oem .__ p. 67, sec. 27 Reimbursement to United States for expenses of printing and {88U€ mmm an ee_p. 42, sec. 16 Suspension of limitation by Secretary of Treasury. -—_-_----- Db. 67, sec. 27 Tax on notes secured otherwise than by bonds of United States oc ermmmm———m mmm = =e -——-- DD. 66, 67, sec. 27 National banking associations, definition of __. —- bp. 1l,secl National banks: Acceptances... ccomoeo-—- ——-_ pp. 80, 32, sec. 13 Acceptance of terms of Federal Reserve Act; time allowed; penalty for nonacceptance_.... o——_ PP. 2, 3,8ec.2 Accounts of foreign branches. _. -_ p. 55, sec. 25 Administrator, may act as... _-.. . meee _ 1p. 28, sec. 11 (Kk) Agent for fire and life insurance and for procuring loans on real estate; limitations upon... w-wo-o-. oc osemo-omo-eo- p. 32, sec. 13 Alaska, dependencies, and insular possessions, national banks in, may join system or remain nonmembers. _..-.-----~ P- 48, sec. 19 Application blanks for stock in Federal reserve bank __.___.__ Pp. 5, sec. 4 Assignee, may act 88. ooo cammmns smmommmomommoens p. 23, sec. 11 (k) Banking operations, discontinuance of, receiver may be ap- pointed. mem ammmmm een P.12, sec. 6 Bond deposit requirements repealed. —----.- ceo. D. 43, sec. 17 Bonds of, when acting in fiduciary capacities. -- —__ Pp. 25, sec. 11 (k) Branches (see also Branches, national bank)— Establishment, operation, retention of ; limitations on___. pp. 80, 81 Foreign _.. eee... pp. 53.54, 55, sec. 25;p. 81 Brokers to procure real-estate loans, may act as__- ——_ P. 82, sec. 13 Business, where transacted. —o----=--=omooomemeemso p. 82 Capital and surplus necessary to establish trust department. p. 25, see. 11 (k) Capital stock— Amount required to establish foreign branches. .------- P. 53, sec. 25 Amount required to exercise fiduciary powers..------ Pp. 25, sec. 11 (k) Amount required to purchase stock in foreign banking corporations ___--—-. . --- Pp. 83, sec. 25 Required for organization. a p. 79 Charters..._.---_--. cl ERS - Pp. 77 Committee of estates of lunatics, may act as____. ._ p. 28, sec. 11 (k) Consolidation, effect on branches. .c-oouown onvomeo-=nn- pp- 80, 81 Conversion, State bank into national, procedure; effect on branches... -_ pp. 18, 14, sec. 8; pp. 80, 81 Corporate powers in general ». 77 154 INDEX National banks—Continued. Definition of term “national bank’. ___. cece p-1l sec} Dependencies, national banks in, may join svstem or remain nonmembers... p. 48, sec. 19 Deposits— Interest payable, rate of ._... -._ p. 53, sec. 24 In trust departments, restrictionson________________ p. 24, sec. 11 (k) National agricultural credit corporation moneysin..__... p. 96 Postal savings funds in____. -- p. 71 Securities in trust departments. __. ceeeoo D. 24, sec. 11 (kK) Securities with State authorities, when necessarv____ p. 24, sec. 11 (kK) Time and savings, may receive... __ Pp. 53. sec. 24 Directors (see also Directors)— False certification of checks; penalty_____ J pp. 86, 87 Notice of voluntary liquidation. _ I. p. 88 Discontinuance of banking operations, receiver mav be ap- pointed... ____._._. __.. p.12 sec. 6 Dissolution for violation of law... emeeeeeeieea-- DP.8,sec.2 Examinations of. _ _.. _ v.22, see. 11 (a); pp. 48. 49. sec. 21 Examiners— Disqualified to hold office as, when__.__. _. ...____ p. 50, sec. 22 (a) Service for compensation while holding office for bank, officer, director, or emplovee. Ce emen- D. 50, sec. 22 (b) Executor, may act as________ ._ cmimcm—aa PD. 28, sec. 11 (kK) Failure to accept terms of act; penalty _________._ ___ p.3,sec 2 Failure to become member bank; penalty. _.___. eee. P.8,8eC. 2 False certification of checks, by officers, directors, etc.; penalty_. pp. 86, 87 Federal reserve banks. subscription to stock of, method of payment____. -- DP. 2, sec. 2; p. 11, sec. b Fiduciary powers .._..___. eee memcmmeem nen P- 28, sec. 11 (kK) Application for, circumstances Federal Reserve Board may consider in passing on_..----.______._. pp. 23, 25, sec. 11 (k) Bond required by State, execution of. not required_. p. 25, sec. 11 (k) Capital required to exercise___... _. en P. 25, sec. 11 (k) Deposit of securities in trust department necessary for use of trust funds in conduct of bank’s business... p. 24, sec. 11 (k) Deposits in trust department, restrictions upon__..___ p. 24, sec. 11 (k) Failure of bank. . cic. DP. 24, sec. 11 (k) Federal Reserve Board may grant permission to exer- cise and to surrender.___. -=--- DD. 28, 25, 26, sec. 11 (k) General provisions regarding... __. -—- PP. 23-26, sec. 11 (k) Loan of trust funds to officer. director, or employee pro- hibited; penalty___..__ ..-. p. 25, sec. 11 (k) Securities with State. _______ een. Pp. 24, 25, 26, sec. 11 (k) Segregation of trust assets from general assets required. p. 24, sec. 11 k) Separate account, trust funds in__. PD. 24, sec. 11 (k) Separate records necessary__ _._..---.—- -___..___ Dp. 24, sec. 11 (k) State law requiring oath or affidavit. who may execute p. 25, see. 11 (k) State may inspect records. _-. .__ Dp. 24, sec. 11 (k) Surrender of ; procedure; effect of _. Cee aee--.DP.25,26,sec. 11 (k) Financial agents of United States; nature of duties; security potiired oo pe ss Sm wie saris p. 79 Fiscal ascent of ITnited States __ D. 53. sec. 25 f LC INDEX 155 National banks—Continued. Foreign banking corporation— Directors may act as directors in_._. p. 55, sec. 25; p. 61, sec. 25 (a) National banks may invest in stock of p. 53, sec. 25; p. 61, sec. 25 (a) Foreign branches. (See Branches.) Funds held in trust ooo -- eee. DPD. 24,25, sec. 11 (k) Guardian, may act &s_.. = eeceee- DP. 28, sec. 11 (k) Indebtedness limited; exceptions. __ —- Dp. 31, sec. 13; p. 85 Insolvent, trust funds, lien of owner... —ocoo--o-- P- 24, sec. 11 (k) Insular possessions, national banks in, may join system or remain nonmembers. .--. cee—en- D. 48, sec. 19 Insurance agent or broker, may act as. -. -. --coen--eu--P- 32, sec. 13 Interlocking directorates... ___..... p. 55, sec. 25; p. 61, sec. 25 (a); p. 69 Investment in stock of foreign banking corporations, limita- BOM ies .—-_ p. 53, sec. 25; p. 61, sec. 25 (a) Liabilities— . Effect of dissolutionon___.__. . feeeeee= PD. 3,sec.2 Exceptions to limitations of section 5202. Revised Stat- TTB rm em mw min ie feme——e—-. Pp. 81, sec. 13; p- 85 Restriction on total; exceptions. __.__.--..--- p. 31, sec. 13; p. 85 Liability of shareholders....-_-. eee p. 52, sec. 23 Lien to secure trusts_.__.... ceo P. 24, sec. 11 (k) Limitation on loans to one person... _ een p- 82 Limitation on total indebtedness of._____.._..____ p. 31, sec. 13; p. 85 Liquidation of, effect... -- ------ D. 12. rec. 5; pp. 12, 13, sec. 6 Liquidation of, statutory provisions. ._.--- p. 88 Loans— Farmland. cc cecmcaamoaaao-- eee. P- 52, sec. 24 Limitation to any one person, firm, etc.; exceptions______. p. 82 Notes of veterans secured by adjusted service certificates. _ p- 98 Real estate. __.._._. eeeo. PD. 52, sec. 24 Trust funds to officers, directors, or employees_____._.. Pp. 25, see. 11 (k) United States notes and national bank notes not to be. held as collateral for. -e p. 86 Notes— Appropriation for, subject to use for furnishing Federal reserve notes._.._ _. pp. 41, 42, sec. 16 Denominations and form __. commer me p. 82 Five per cent redemption fund with United States Treas- urer as part of reserve of national banks. cocceonw---- Dp. 48,s8ec. 20 Limitation as to amount of issue, suspension of ooo... Dp. 67, sec. 27 Printing under charge of Comptroller of Currency. p. 21, sec. 10; p. 82 Prohibition against holding as collateral for loans or with- holding from use; penalty. -. i p. 86 Redemption fund_____.._ . fe eeceeeee= D. 67, 8e0C. 27 Reimburse United States for expenses of printing and Ta 0:1: SN RUIP EERE EEL LEE PES SER 48 42, sec. 16 Secured otherwise than by bonds of United States, tax OD eee eeeiimmmmmeee. =-==-- DP. 66, 67, sec. 27 Suspension of limitation by Secretarv of Treasury_.__._.__ p. 67, sec. 27 Notice of voluntary liquidation. -.. ie p. 88 Oath as fiduciarv.. -—- D. 25. sec. 11 (Kk) 156 INDEX National banks—Continued. Officers and employees— False certification of checks; penalty. ___ —— Loans by officers on collateral of United States notes or national-bank notes; penalty __ J p. 86 Organization, capital required. _________ cen p. 79 Other fiduciary capacities, when may act in__. .._ pp. 23, 24, sec. 11 (k) Outside of continental United States as members_._._ p. 48, sec. 19 Penalty for failing to accept terms of act__._ ieee P. 8, sec. 2 Penalty for use of circulating notes as collateral, or with- holding from use______. p. 86 Personal liability of stockholders. _. eevee D. 52, sec. 23 Personal liability of directors for noncompliance with the act. p. 3, sec. 2 Place of business. p. 82 Powers— Agent for fire, life, or other insurance company... ._._____ Branches in foreign countries or dependencies or insular possessions of the United States___ p. 53, sec. 26 Broker or agent in real estate loans... p. 32, sec. 13 Corporate... -... iaeee--- DD. 77,78 Fiduciary. _____ vew- D. 23, sec. 11 (k) Fiscal agents of United States. ._ eeee—-. D. 53, sec. 25 Foreign banking corporations, purchase of stock in...._ p. 53, sec. 25; p- 61, sec. 25 (a) Loans on collateral of United States notes or national- bank notes______. - Loans to any one person, firm, ete.; limitations; excep- tions__ _. . . RR, Loans to veterans on notes secured by adjusted service certificates... _. ie National agricultural credit corporations, purchase of stock in__.___. p. 96 Real estate loans. _..__. p. 52, sec. 24 Real estate, purchase, hold, and convey... p. 78 Receive time and savings deposits. _._.___.._____._._._ p. 53, sec. 24 Reduction of capital; limitation: procedure_ p. 67, sec. 28 Savings deposits... vwe- D. 53, sec. 24 Trust coe... --- DP. 23, sec. 11 (k) Use of trust funds in conduct of business. when per- mitted _ eo. == Pp. 24, sec. 11 (k) Real estate, right to purchase. hold, and convey. - p. 78 Receiver— Comptroller of Currency may appoint for discontinuance of banking operations._______. ce= Pp. 12,8ec. 6 Embezzlement, fraud, etc. by; penalty. eee p- 88 May act as... cemee- D. 23, sec. 11 (kK) Redemption fund for notes as reserve, repealed. ___._.___.___ p. 48, sec. 20 Rediscount by national agricultural credit corporation of paper indorsed by... ______. p. 94 Reduction of capital stock_.__..____ eee-- p. 67, sec. 28 Registrar of stocks and bonds, may act as.._.._________ p. 23, sec. 11 (k) Report of condition of foreign branches to Comptroller of Currency. coooo ooo. .. acecmececeee-a--- D.b4, sec. 25 Reserves, general provisions regarding (see also Reserves). pp. 46-48, sec. 19 37 36 79 2) 9 9 36 23 2 12 9 25 3 8 ) 5 33 .} ‘A 9 8 A 3 INDEX 157 National banks—Continued. Securities with State, when necessary. - o_ D. 24, sec. 11 (k) Segregation of assets when operating trust department___ p. 24, sec. 11 (k) Shareholders’ liability ...-- -——- Pp. 52, sec. 23 Shareholders, vote to liquidate... p. 88 Stock. (See Stock, national banks.) Stockholders in foreign banking corporations— Capital required to become.__.. _._ p. 53, sec. 25 Failure to comply with regulations of Federal Reserve Board__ .—_ p. 55, sec. 25 Limitation on investment as____. .__. p. 53, sec. 25; p. 61, sec. 25 (a) Regulation by Federal Reserve Board... __ pp. 53, 54, 55, sec. 25 Stockholders’ liability for debts of ooo coon Pr 52, sec. 23 Subscription to capital stock of Federal reserve banks, method of payment__.._..___. . eee. P. 2,88. 2; p. 11, 5eC. 5 Time deposits, may receive and pay interest on__._._—_----- P- 53, sec. 24 Total indebtedness, restriction on; exceptions_-_--___- Pp. 31, sec. 13; p. 85 Transfer of shares before failure_. _._._ p.52,sec. 23 Trust powers__.--.-- eee D. 28, sec. 11 (k) Violation of Federal Reserve Act— Liability of directors assenting to-__.- Penalty o-oo United States courts to have jurisdiction. Nonmember banks: Advertising as members prohibited; penalty. Balances to offset items in transit-__---- Collections for, by Federal reserve banks... Deposits— By member banks ino ---------- w--- Pp. 47, sec. 19 Government funds, right to receive... p- 36, sec. 15 In Federal reserve banks. .--cccuccveu-wn p- 28, sec. 13 Philippine Island funds, right to receive _... eee-- Pp. 36, BeC. 15 Postal savings funds in... cccmeeemo-oo- == BP 36, sec. 15; p. 71 Loans to veterans on adjusted-service certificates... ar mR p. 98 Member bank as agent or medium for rediscounts.. ven-- D. 47, sec. 19 Paper indorsed by, eligibility for rediscount-_--—-. .--- Pp. 33, sec. 13 (a); ». 47, sec. 19; p. 99 Notes: Federal reserve bank. (See Federal reserve bank notes.) Federal reserve notes. (See Federal reserve notes.) Foreign banking corporations may purchase, sell, discount, or negotiate. _ eee __. p. 57, sec. 25 (a) Member banks. (See National bank notes.) National bank. (See National bank notes.) United States. (See United States, notes.) Veterans’, secured by adjusted-service certificates— Loans on.___..__. Payment of. caiman Readiscount of, by Federal reserve banks. .--- pp. 98-103 pp. 99-102 p. 99 0) Offenses against Federal reserve banks and member banks by officers. directors, ete.; penalty . . pp. 86, 87, 88 158 INDEX Officers and employees. (See subheading Officers and employees, under appropriate main heading, such as Federal Reserve Board, Federal reserve banks, ete.) One-year gold notes of United States; issuance; security for Federal reserve bank notes_ ____. Ceew_ p. 45, sec. 18 One-year 3 per cent gold notes, Secretary of Treasury may borrow gold on security of, or sell to strengthen gold reserve or maintain parity of money.._____.. ______.__ ____ eeeee=- Dp. 66, sec. 20 Open-market operations, general provisions concerning_._._.. pp. 34-36, sec. Ls Organization Committee. (See Reserve Bank Organization Com- mittee.) Organization of: Federal reserve banks. ____..__ ceeceee- Pp. 5, sec. 4 Federal Reserve Board. __ . <e=- Dp. 19-21, sec. 10 Foreign banking corporations... eeeee——__ Pp. 55, sec. 25 (a) Outlying districts of reserve or central reserve cities, reserves (see } also Reserves)._. eee. D. 47, sec. 1Y Panama Canal Zone, foreign banking corporations in, as depositaries of United States... _____ i CS eee-_. P.56,sec. 25 (a, Paper of any one borrower, limitations on rediscount by Federal reserve banks... _.___________ p.18,sec. 9; p. 26, sec. 11 (m); p. 29, sec. 13 Par collections by Federal reserve banks_.._._..._._ p. 28, sec. 13; p. 42, sec. 16 Parity of money, Secretary of Treasury may maintain by borrowing gold or selling one-year 3 per cent gold notes_______.__________ p. 66, sec. 26 Parity provisions of act of March 14, 1900, cffect of Federal Reserve Acton_____ eicee--___ Dp. 66, sec. 26 Penal bonds, deposits in Federal reserve banks of United States bonds and notes accepted as security in lieu of sureties on... ___ p. 103 Penalties and forfeitures. (See Crimes and penalties.) Philippine Islands: Public funds may not be deposited in nonmember banks__.___ p. 36, sec. 15 Foreign banking corporations in. as depositaries of United States_________. ___. __. p. 56, sec. 25 (a) Place of business of national banks_._.__. ss p. 82 Postal Savings Act, amendment to. o.oo _ ei p. 71 Postal savings funds: Deposits in member banks_________ en p. 71 Right to deposit in nonmember banks... ___________ p. 36, sec. 15; p. 71 Powers. (See subheading Powers, under appropriate main head- ings, such as Federal Reserve Board, Federal reserve banks, Member banks, etc.) President of United States: Appointment of members of Federal Reserve Board__ pp. 19, 20, 21, sec. 10 Designation of governor and vice governor__.___________.__ p. 20, sec. 10 May place employees of Federal Reserve Board in classified BerviCe. .. ee ____. TP. 26, sec. 11 (D Prices of commodities; fixing or controlling by foreign banking cor- porations or officers, directors, ete.__.________________ pp. 59, 60, sec. 25 (a) Printing of Federal reserve bank notes. (See Federal reserve bank notes.) Printing of Federal reserve notes. (See Federal reserve notes.) Printing of national bank notes. (See National bank notes.) 0 4 INDEX 159 Private bankers, eligibility of, as directors of member banks and foreign banking corporations___._. iment —amem--- DD. 69,70 Promissory notes of foreign banking corporations; limitation. pp. 58, 60, sec. 25 (a) Promissory notes of member banks, advances on... _. .-_ p.81,sec. 13 Promissory notes of veterans secured by adjusted-service certificates, loans on._-. p- 98 Public moneys: Deposit of, in Federal land banks and joint-stock land banks__ p.- 72 Deposit of, in Federal reserve banks, member banks, or non- member banks ____._---- eww p. 19, sec. 9; p. 36, sec. 15; p. 79 Deposit of, in foreign countries. JU pp. 74, 75 Reserves against... ..pp- 78,74, 75 Public stock of Federal reserve banks.._. eee PD 3, 4, sec. Z Purchase of discount of sight or demand bills by Federal reserve banks. _____.--. ee eemeeeee2 P+ 29, seC. 13 Purchase of stock of foreign banking corporations by national banks. iceman oo. D. 53, sec 25; p. 61, sec. 25 (a) Purchases, open-market. ... --_ Pp. 34-36, sec. 14 24 3 3 3 Is Rates of discount and rediscount. (See Discount and interest rates.) Rates on 15-day promissory notes of member banks to Federat reserve banks__...___- Real estate: Definition of loan secured by. - Loans on, by national banks___. Loans, national banks as brokers or agents. ___. Right of national banks to purchase, hold, and econvey._...._ Receiver: Comptroller of Currency may appoint for national bank which has discontinued banking operations_..___---. ._ p. 12, sec. 6 Effect of appointment, on membership of bank__. ——- DP. 12, sec. 6 Foreign banking corporation. _..—-. oe mmmmeee --- Pp. 62, sec. 25(a) Of national bank, penalty for embezzlement, fraud, ete... p- 88 Reclassification of reserve and central reserve cities by Federal Reserve Board_ _.._.-__. Ce ieee. Pp. 23, sec. 11 (e) Redemption fund for Federal reserve notes (see also Federal reserve NOES oo eee meme ame _. __ pp- 39, 40, sce. 16 Redemption fund for national bank notes... __ p. 67, sec. 27 Rediscounts (see also Discounts): Acceptances___. ee ns --. Pp. 30, 32, sec. 13 Adjusted service certificates, notes secured by _ oc cccmemmoma p- 99 Agricultural paper... . pp. 28, 29, sec. 13; p. 33, sec. 13 (a) Commercial Paper. ovoeocceeo comm —mmmem—mm=n m=-====-= P 28, sec. 13 Cooperative marketing associations; eligibility of paper in general _.._____._. . bp. 34, sec. 13 (a) Demand bills of exchange... oo eeee=e P+ 29, sec. 13 Discounted paper of other Federal reserve banks... p. 22, sec. 11 (b); p. 99 Domestic shipment of nonperishable staples, paper growing Ub OF - oem aimee mmemm——== DP. 2, eC. 13 Eligible paper, Federal Reserve Board may define or deter- mine. -w-—----- 41632°—31——11 160 INDEX Rediscounts—Continued. Exportation of nonperishable readily marketable staples; paper growing out of __.___.. p. 29, sec. 13 Factors’ paper_.. eos D. 29, sec. 13 Federal intermediate credit bank paper..____. . —ee-- D. 83, sec. 13 (a) Federal reserve banks, for other Federal reserve banks_ p. 22, sec. 11 (b); p.99 Federal Reserve Board may limit amount according to ma- turity of paper-_. cece D. 34, sec. 13 (2) General provisions relating to.__. pp. 28-33, sec. 13; pp. 33, 34, sec. 13 (a) Industrial paper... CC eceee__ PD. 28, sec. 13 Interdistrict__._ ceew P. 22, sec. 11 (b); p. 99 Investment paper_. oo ccceeoocoo reeeee P. 29, sec. 13 Limitations on paper of any one borrower..__.. ree Pp. 18, sec. 9; p. 26, sec. 11 (m); p. 29, sec. 13 Livestock paper... eee. DP. 88, sec. 13 (a) Member bank as medium or agent for nonmember bank_.__. p. 47, sec. 19 National agricultural credit corporation.___________.._.... pp. 92, 93, 94 Nonmember banks, paper indorsed by_ p. 33, sec. 13 (a); p. 47, sec. 19; p. 99 Notes of veterans secured by adjusted service certificates ____ p. 99 Paper arising out of actual commercial transactions.._.._._. p. 28, sec. 13 Paper drawn for agricultural purpose or based upon live- stock __ --_ p. 28, sec. 13; p. 33, sec. 13 (a) Paper for carrying or trading in stocks, bonds, or other in- vestment securities ineligible______. . p29, sec. 13 Paper of any one borrower, limitations on...._____..____._... p. 18, sec. 9; p. 26, sec. 11 (m); p. 29, sec. 13 Paper of other Federal reserve banks..__._.____._ p. 22, sec. 11 (b); p- 99 Rates (see also Discount and interest rates), establishment by Federal reserve banks subject to review by Federal Reserve Board. occa. mm == DP. 35, sec. 14 (d) Regulation by Federal Reserve Board__._.______....-. Pp. 22, sec. 11 (b)s pp. 28, 29. sec. 13; p. 33, sec. 13 (a) Sight and demand bills. oo ooo ccoooo oo aeomeaaoo-- DP. 29, sec. 13 United States bonds and notes. paver secured by_.._... p. 26, sec. 11 (m); p- 29, sec. 13 Veterans’ notes...___ J p- 99 Reduction of capital of foreign banking corporations____. pp. 60, 61, sec. 25 (a) Refund on surrendered Federal reserve bank stock. (See Federal reserve banks, Capital stock.) Refunding bonds. - ooo cieamcmmommeom mae omen D. 44, seC. 18 Regulations of Federal Reserve Board. (See Rules and regula- tions, Federal Reserve Board authorized to make concerning.) Remedies, survival against dissolved bank......__ p. 3, sec. 2; p. 62, sec. 25 (a) Removal of officers or directors of Federal reserve banks__.___ p. 23, sec. 11 (f) Repayment of deposits upon withdrawal of State banks... _.. p. 17. see. 9 Repeal: Of bond deposit requirements of national banks_ _.___ pp. 43, 44, sec. 17 Of inconsistent JAWS o-oo ooo. ae_el ame------. P. 66, sec. 26 Right to amend, alter. or repeal expressly reserved......_._.. p. 68, sec. 30 Reports by: Federal Reserve Board._._____. Foreign banking corporations. State member banks 3 3 1) 10 1) 3 1] 3 % 3 1) 9 14 9 )9 2 1) 3 tH 13 VQ } 13 39 a) < a) DH 0 L7 26 2) 10 a) 1) INDEX 161 Reports of condition: Foreign branches of national banks _.___ I State member banks required to make, to Federal reserve bank. Representative or Senator in Congress ineligible as member of the Federal Reserve Board or as officer or director of a Federal reserve bank. _____.. ce ee cmmammi ae mmmmmmmm——= Reservation of right to amend, alter, or repeal Federal Reserve Ach. oo ee Reserve and central reserve cities: Federal Reserve Board may add to, reclassify, or terminate. p. 23, sec. 11 (e) Outlying districts of, reserves required--- —_. Pp. 47, sec. 19 Previous status not changed._. eee Pp. 4, sec. 2 Reserves. —caocoocooao- eee Pp. 46-48, sec.19 Reserve bank (see also Federal reserve banks), definition of... p.1,secl Reserve Bank Organization Committee._____.. pp. 1-4, sec. 2; pp. 5, 10, sec. 4 Decisions of, only reviewable by Federal Reserve Board.__.__ Pp. 2, sec. 2 Expenses of, how paid. -. oe. p-4 sec. 2 Members of - p. 1, see. 2 Reserve cities: . Addition to, reclassification or termination of. bv Federal Re- serve Board. eee —— P.23,sec. 11 (e) Effect of Federal reserve cities and districts on... eee. Pp. 4,8ec. 2 Reserve, prohibition against use of word; penalty; exceptions____.. pp. 96-98 Reserves: Alaska, banks in occa nll ao Banks outside of continental United States _. Demand deposits, amount required against... Dependencies of the United States. banks in_ Deposit of public moneys--.. Federal reserve banks— Against deposits_._.. _-- Dp. 37, 38, 43, sec. 16 Against Federal reserve notes... -----. .----- PP: 37, 38, 43, sec. 16 Five per cent redemption fund for Federal reserve notes 88 PArt Of - oo omen em mmm memes p. 39, sec. 16 Gold or gold certificate collateral for Federal reserve notes a8 PArt Of «ov eo iiamamo ccmmmmmem mmmmmees p- 38, sec. 16 Gold redemption fund may be counted as part of... P. 39, sec. 16 Gold settlement fund may be counted as part of —.__ Pp. 43, sec. 16 Graduated tax on deficiency of gold_ --——— —=c<- PP. 22, 23,-sec. 11 (c) Retired Federal reserve notes rececee- Pp. 40, sec. 16 Tax upon deficiencies _.._. -. .. . -----=~ PP: 22, 23, sec. 11 (co) Federal reserve notes (see also Federal reserve notes). pp. 37-40, 43, sec. 16 Foreign banking corporations, reserves against deposits re- ceived in United States___. ———-_ P. 58, sec. 25 (a) Gold, Secretary of Treasury may borrow gold to strengthen gold reserve. .__._.- -. PD. 66, sec. 26 Member banks— Against deposits of public moneys bv United States._.. pp. 73, 74, 75 Computation of balances. - fee am-- DP. 48, sec. 19 Demand deposits _._._ ——- Pp. 46, 47, sec. 19 Deposits of public moneys_.._--- .-- PDP. 73,74,75 “Pye to” and “due from’ balances... eeemm—u~ D. 48, sec. 19 Ceneral provisions regarding __ pp. 46-48, sec. 19 162 INDEX Reserves—Continued. Member banks—Continued. In outlying districts of reserve or central reserve cities or in territory added to such cities... -- Pp. 47, sec. 19 In central reserve and reserve eities_ _ _ .____eoweo.___. Pp. 47, sec. 19 Loans while deficient. _. cmmee- DD. 47, 48, sec. 19 National banks in Alaska._. ee—e-u- D. 48, sec. 19 Not in reserve or central reserve city__. ceme-- PD. 47, sec. 19 Outside of continental United States... eeeo__ DP. 48, sec. 19 Payment of dividends while reserve with Federal reserve bank deficient. o.oo oo... ____._____._pp.47, 48, sec. 19 Redemption fund with United States Treasurer by na- tional banks for notes as part of . eee——_ D. 48, sec. 20 Reserve requirements... -_ Pp. 46-48, sec. 19 Time deposits____ eeeeeu_ DD. 46, 47, sec. 19 With Federal reserve banks. checking against and with- drawalof ______. ._. _. p. 47, sec. 19 National banks— Five per cent redemption fund with United States Treas- urer as part of_ -mee- Pp. 48, sec. 20 In Alaska.__. p- 48, sec. 19 Possessions of the United States, banks in... veo D. 48, sec. 19 State member banks___._. _a—--- D. 15, sec. 9; pp. 46-48, sec. 19 Suspension of reserve requirements by Federal Reserve Board_.__._._. -w- DP. 22, sec. 11 (c) Tax on deficient reserves -coocoooue. ooo. _____._. Pp. 22 sec. 11 (c) Territory added to reserve or central reserve cities, banks in... p. 47, sec. 19 Time deposits, amount required against —-- Pp. 46, 47, sec. 19 United States notes... wememe_ PD. 13, 8c. 7 Withdrawal from Federal reserve banks by member banks__. p. 47, sec. 19 Retirement of Federal reserve bank notes. (See Federal Reserve bank notes.) Retirement of Federal reserve notes (see also Federal reserve notes). p. 40. sec. 1€ Revised Statutes, United States. (See Acts amended, etc.) Rules and regulations, Federal Reserve Board authorized to make concerning: Acceptances by member banks, limitations on aggregate amount of ...___. . © meeecccee———-_DD. 80, 32, sec. 13 Agreements by State foreign banking corporations in which national banks hold stock. ______.__.____.._____._..pp. 54, 55, sec. 25 Character of paper eligible under section 13 for rediscount.._.__. p. 28, sec. 13 Collections, charges for___.._________.___..__ Dp. 28, sec. 13; p. 42, sec. 16 Dollar exchange, drafts drawn for the purpose of furnishing_ p. 32. 33, sec. 13 Federal reserve agent— Federal reserve notes, gold, ete., deposited with and held jointly with Federal reserve banks___________________ p. 40, sec. 16 Maintenance of local office of Federal Reserve Board on premises of Federal reserve bank__._._.__________._.. p.9, sec. 4 Safeguarding of all collateral, bonds, Federal reserve notes, money, or property of any kind in hands of__ p. 23, sec. 11 () Federal reserve banks— Branches. _____..__.. } ode mEEAeeemenase Pe 0 900. 3 Discount and purchase of sight and demand bills of ex- chance _D. 20. gec. 13 19 19 19 19 19 |G 9 20 9 0 1} 20 (9 19 0 2) 2) 9 9 7 3 25 13 16 2 INDEX 163 Rules and regulations, etec.—Continued. Federal reserve banks— Continued. Discount and rediscount and purchase and sale of bills receivable, bills of exchange, and acceptances; limi- tation on..__.. ee. Pp. 32, sec. 13 Discount of agricultural paper—......-. -.. ——-- P. 38, sec. 13 (a) Discount of paper for Federal intermediate credit BANKS eee eee eeeeeeeeeeemmmem= DP. 88, sec. 13 (a) Foreign correspondents, agencies and banking accounts. p. 35, sec. 14(e) Limitation on amount of 6 and 9 months’ paper redis- counted. ooo aoa. Cee ei eiceim- DP. 34, sec. 13 (a) Limitation on rediscounts for Federal intermediate credit IIR in ri i mr win wm feeeeeeo Pp. 38, sec. 13 (a) Open-market operations.......... CemeewP. 34, sec. 14 Payment by, for surrendered shares___.___... eee- Pp. 12,8ec. & Subscriptions to stock of, by State banks and trust com- panies_.._-. Transfer of funds and charges among.__ Transfer of stock.__..._ Federal reserve notes— Issue and retirement, delivery by comptroller to Federal reserve agents, and safeguarding. - .o-P- 28, see. 11 (d), (D Substitution of collateral for__... _. ——-_ P. 40, sec. 16 Federal reserve notes, gold, etec., deposited with Federal reserve agents and held jointly by such agents and Federal reserve banks... __-_-.- Ce ememem—ccmeeen- D. 40, sec. 16 Foreign accounts and agencies of Federal reserve banks_. p. 85. sec. 14 (e) Foreign banking corporations— Establishment and location of foreign branches or agencies by__... ben eeee--. D. 58, sec. 25 (a) Limitation of aggregate liabilities of .. —.__-----_ Pp. 58, sec. 25 (a) Payment of remainder of capital stoek of .-.o._._._ Dp. 60, sec. 25 (a) Powers of - ..___._. __ op. b7, 58, 59, sec. 25 (a) General authority to make_ -—_ PD. 28, sec. 11 (i) Gold settlement fund oo coco cecmmemmmmmmmm—===== PD: 42, sec. 16 Limitation of amount of 6 and 9 months! paper which Federal reserve banks may rediscount... eee. D. 34, sec. 13 (a) Member banks— Acceptances up to 100 per cent, et¢_--oceceaooemeae---P- 30, sec. 13 Collection and exchange charges -—------ P- 28, sec. 13; p. 42, sec. 16 Disclosure of commissions or profits on sales of securities or other property bv a director. ete.. to a member bank coe ceee-_ Dp. 81, sec. 22 (d) Dollar exchange drafts_____.. .-- Pp. 82, 33, sec. 13 Reserve balances, checking against__. .. D. 47. sec. 19 National banks— Establishment and operation of foreign branches... pp. 53-55, sec. 25 Investment in stock of foreign banking corporations... pp. 53-55. sec. 25 Open-market operations of Federal reserve banks— Purchase and sale of eligible paper—-------------- PP. 34-36, sec. 14 Purchase of United States bonds and notes and municipal ee ecmeieemeemee= DP. 35, sec, 14 (b) pp. 28, 20. 32. sec. 13; p. 33. sec. 13 (a) Rediscounts_ _ 164 INDEX Rules and regulations, ete.—Continued. Reserve balances of member banks, checking against and withdrawing. . feeceee—n D. 47, sec. 19 Safeguarding of collateral, bonds, Federal reserve notes, money or property in hands of Federal reserve agent____.__._. p. 23, sec. 11 @ Scope and extent of. .- Dp. 23. sec. 11 (D State banks and trust companies— Admission of State banks, ete., into Federal reserve system _ oo... a rm ————————— Fixing time within which capital shall be increased to amount required for a national bank_________________ Retention of full charter and statutory powers, ete____._. Setting aside 20 per cent of net income as fund exclusively applicable to capital increase to amount required for national bank.___. cee. Pp. 18, sec. 9 Substitution of collateral against Federal reserve notes_._____ p. 40, sec. 1b Transfer of funds between Federal reserve banks.___________ p. 42, sec. 16 Veterans’ notes... pp. 98, 99 Salaries: Board’s employees’, etc., shall be fixed in advanece.__.__. p. 26, sec. 11 Members of Federal Reserve Board. ____._ iemmme—w Pp. 19, sec. 10 Officers and employees, Federal reserve banks. .... oeeew Pp. 10, sec. 4 Bale of United States bonds securing circulating notes of member banks_........ -e-- D. 44, sec. 18 8avings deposits, national banks may receive_... . ceemem- PD. B3. sec. 24 Secretary of Treasury (see also Treasury of United States, Beeretary): Deposits with, by Federal reserve bank or agent. .cmeeeeeen p. 42, sec. 16 Ex officio member of Federal Reserve Board__.. cemmme=- DP. 19, sec. 10 Gold reserve to be maintained by - - —~- P. 66, sec. 26 Management of United States stock in Federal reserve banks. p. 4, sec. 2 Require Federal reserve banks to act as fiscal agents of United States... __oeo_._ . .. iciemeeen-_.D. 36, sec. 15 Becurities with State, when necessary for national banks to doposlh.. wu sommes aE Essa TT OL see 11 © Security for Federal reserve bank notes. (See Federal reserve bank notes.) Security for Federal reserve notes. (See Federal reserve notes.) Security required for 15-day promissory notes of member banks to Federal reserve banks_____ ooo _ weme—ew_ Pp. 31, sec. 13 Security required when Federal reserve banks deal in gold or bullion.______ i e—e—e_. p- 35, sec. 14 (a) Senator or Representative in Congress ineligible as member of the Federal Reserve Board or as officer or director of a Federal reserve bank__ Shareholders, individual liability for debts of: Federal reserve banks. _... mmmecmmmemei—e——- DP. 8, sec. 2 Foreign banking corporations... --w- Dp. 62, sec. 25 (a) National banks_ _.._._._._______. eee—ee-_ p. 52, sec. 23 Shareholders of foreign banking corporations, meetings_______ p. 63, sec. 25 (a) Sight bills of exchange, discount and purchase of. _ wen DP. 29, sec. 13 Special examinations. (See Examinations.) a J J } INDEX 165 State bank, definition of. ____ _ State banks (see also Member banks, State banks): Application for stock in Federal reserve banks, method of payment __ eeu Pp. 11, sec. 5; pp. 14, 15, sec. 9 Certification of checks against insufficient funds, illegality of .____ eee. pp. 18, 19, sec. 9; pp. 86, 87 Circulating note benefits, Secretary of Treasury may extend to, as members. _ o_o eee De 67, sec. 27 Consolidation with national bank; effect on branches. _..._.. pp- 80, 81 Conversion of, into national banks: effect on branches______. pp. 13, 14, sec. 8; pp. 80, 81 Definition of _________ mmm p. 81 Eligibility for membership _______.. __._. pp. 14, 15, 17, sec. 9 Examination (see also Examinations) _ o_o cuc--_._ Pp. 186, sec. 9; p- 22, sec. 11 (a); p. 49, sec. 21 Examinations not subject to requirements of section 21______ p. 18, sec. 9 Limitation on rediscount of paper of any one borrower....._- p. 18, sec. 9; p- 26, sec. 11 (m); p. 29, sec. 13 Membership in Federal reserve system (see also Member banks, State banks)— Capital requirements_.______. eee Pp. 17,sec. 9 Conditions of membership.______ eeeeeeeee_ DD. 15,17, s€C. 9 Discontinuance of banking operations____._ p. 12, sec. 6; p. 16, sec. 9 Forfeiture of membership. p- 16, sec. 9 [nsolveney._-_-__. ecco. p.12, sec. 6 Liquidation__..___ __ p. 12, sec. 5; p. 12, sec. 6 Qualifications for.________-. - —__ pp. 14, 15, 17, sec. 9 Withdrawal from membership.-.------ ceeee-- pp- 186, 17, sec. 9 Reports of condition of ____._._-___.-- PP: 15, 16, sec. 9; p. 22, sec. 11 (a) Reserve requirements on becoming members__ p. 15, sec. 9; pp. 46-48, sec. 19 Retention of powers under State charters... feeee- DP. 18, sec. 9 Sections of Federal Reserve Act applicable to member banks... p. 18, sec. 9 State examinations may be accepted... —..___.- Pp. 16, sec. 9; p. 48, sec. 21 Subjeet to provisions and penalties of Revised Statutes, section 5209, upon becoming members. ..-—---c---cw-=--- --==- P- 15, sec. 9 Subscription to stock in Federal reserve banks_.. Pp. 11, sec. 5; p. 14, sec. 9 Withdrawal from membership, condition of... _~--- PP: 16, 17, sec. 9 State foreign banking corporations. (See Foreign banking cor- porations.) State obligations, right of foreign banking corporations to pur- chase and sell ____.. + He __. Pp. 57, sec. 25 (a) State taxation of foreign banking corporations... - p. 63, sec. 25 (a) States, counties, municipalities; bills, notes, revenue bonds, and war- rants of, purchase and sale by Federal reserve banks; kinds eligible for... -- Dp. 35, sec. 14 (b) Stock: Federal reserve banks— Allotment of, to United States. -occnoweooeei comoeeeo D4, sec. 2. Amount member bank must subscribe to, method of pay- ment. o-oo. P.2, sec. 2;p. 11, sec. 5; pp. 14, 15, sec. 9 Amount State bank must subseribe._..._. p. 11, sec. 5; p. 15, sec. 9 Application by new members for stock of, subsequent to organization of system _....--..-_ p. 11, sec. 5; pp. 14, 15, sec. 9 Call on subsecriptions_.. ceo Pp. 2, 5€c. 2; p. 11, sec. 5 n. 81 166 INDEX Stock—Continued. Federal reserve banks——Continued. Cancellations, limitation on, in any one year. ..__.._.__. Dividends paid to. stockholders, nature of_ - Hypotheeation forbidden. ._ .. ——— [ncrease, certificate to Comptroller of Currency explain- p. 17, sec. 9 p. 18, sec. 7 p. 11, sec. 5 ing__ ieeeeeo po 11, sec. 5 [nsolvency of member bank, cancellation of stock held by. p. 12, sec. 6 Liquidation of member bank, cancellation of stock held by_-.. ——-- Dp. 12, sec. 5; p. 12, sec. 6 Member banks may not transfer or hypothecate____._._._ p. 11, sec. 5 National banks must subseribe.____._______.___ ____ p. 2, sec. 2 New members, subscription to stock of, required._______ p. 11, sec. 5 Public stock— Limitation on holding____. cemmemmen PD. 4, sec. 2 Subscription to__. .-- DPD. 3, 4. sec. 2 Reduction; certificate to Comptroller of Currency explain- Ngee eee. Pp. 11, sec. 5; pp. 12, 13, sec. 6 Shares owned by member banks not to be transferred:__ p. 11, sec. 5 Subscription to— By National banks.._.____ p. 2, sec. 2; p. 5, sec. 4; p. 11, sec. 5 By publie_.__. fee=- PDP. 8, 4, sec. 2 By State banks... .-- p. 11, sec. 5; pp. 14, 15, sec. 9 Payment on.____..__ p. 2, sec. 2; p. 11, sec. 5; pp. 14, 15, sec. 9 Subscriptions insufficient to provide required capital, procedure_____ -—-- DP. 3. 4, sec. 2 Surrender of, upon discontinuance of banking operations, reduction of capital, liquidation or insolveney of member banks__... . pp. 11, 12, sec. 5; p. 12, sec. 6; p. 16, sec. 9 Taxation___.. . -—- p. 13, sec. 7 Transfer of, restriction upon. . Dp. 4, sec. 2; p. 11, sec. 5 United States stoek__. - p. 4, sec 2 Value of share_.. _-. p. 11, sec. 5 Voting power. ...___. ——~ Dp. 4, sec. 2 Foreign banking corporations— Amount required for organization_________ Citizenship of stockholders. _ a Increase. __. ie wi Investment in, by national banks: limitation_______ p. 60, sec. 25 (a) 2. 61, sec. 25 (a) pn. 60, sec. 25 (a) op. 53, 54, sec. 25; p. 61, sec. 25 (a) Liability of shareholders._._. ~—- Pp. 62, sec. 25 (a) Meeting of shareholders. ._ <== P. 63, sec. 25 (a) Member of Federal Reserve Roard holding. _________ p. 62, sec. 25 (a) Reduction___._. _. ._ ~--- PP. 60, 61, sec. 25 (a) Taxation of shares by State__ p- 63, sec. 25 (a) Withdrawal. _...... p. 61, sec. 25 (a) Member banks— Amount required as condition to membership...__.._... Dp. 17, sec. 9 Increase or reduction; must subscribe to or reduce pro- portionate amount of Federal reserve bank stock.. pp. 11, 12, sec. § Lending on or purchasing own stock, restrictions on._.__ p. 15, sec. 9 Reduction____ .- p.11, sec. 5 Surrender of Federal reserve bank stock..... .__.__ pp. 11, 12, sec. 5; p. 12. sec. 6; p. 16, sec. 9 Withdrawal or impairment of. restrictions on _ 1.15 sec. 9 [NDEX 167 Stock—Continued. National agricultural credit corporations, purchase of, by mem- ber banks__. National banks— Amount required to exercise fiduciary powers_______. p. 25, see. 11 (k) Capital required for organization______________________ p. 79 Capital required to establish foreign branches._.________ p. 53, sec. 25 Reduction of capital___.___ .ee—~ Dp. 67, 68, sec. 28 Transfer of, before failure___ wmnmemmwmas Pe 82, soe, 23 Purchase of, in other corporations by foreign banking corpora- tions... ______ A .=--- Pp. 58, 59, sec. 25 (a) Surrender of Federal reserve bank stock. _ iemee- Pp. 11, 12, sec. 5; p. 12, sec. 6; p. 16, sec. 9 p. 96 Stockholders. (See shareholders, ete.) Subtreasuries: Abolishment of, under Appropriation Act of 1920___________ Federal reserve banks ag, deposits with__. meee Rooms, vaults, space, etc., used by, assignment to Federal a Transfer of certain functions to Federal reserve banks. ______ Surplus fund; Federal reserve banks_______. ceee~ Pp. 13, 8eC. 7 Foreign banking corporations. _._ cmmmma- DP. 63, sec. 25 (a) National banks, amount required for trust powers.._.____ p. 25, sec. 11 (k) Surrender of Federal reserve bank stock. eme- Pp. 11, 12, sec. 5; p. 12, sec. 6; p. 16, sec. 9 Suspension of officers and directors of Federal reserve banks___ p. 23, sec. 11 (f) Suspension of operations of Federal reserve banks._._. _..___p. 23, sec. 11 (h) rp. 89, 90 Pp. 80 p. 80 PD. 89. 00 ry Table showing United States Code references to and from Federal Reserve Act_____..____.__. ceceewe—e--- pp. 106, 108 Tax upon deficiencies in reserve. .--- DD. 22, 23, sec. 11 (¢) Taxation: Federal reserve banks exempt from... _.__ fmmmi- Pp. 13,8eC. 7 Foreign banking corporation bv State --- D. 63, sec. 25 (a) Franchise tax______. ieeeee DP. 13, scC. 7 National bank notes__.____.___ ieee—e_-- DPD. 66, 67, sec. 27 Termination of reserve or central reserve cities by Federal Reserve Board... w-=- DP. 23, sec. 11 (g) Territory added to reserve or central reserve cities, reserves (see also Reserves). ____________ i ccmmeem=- DP. 47, sec. 19 Thirty-year 8 per cent gold bonds of United States, issue of_._ pp. 45, 46. sec. 18 Time deposits (see also Deposits. time): Definition of .________. . _ ~-eweae-- DP. 46, sec. 19 National banks may receive. -~e_- DP. 53, sec. 24 Reserves against__ -~ Dp. 46, 47, sec. 19 Title of mole cocmmasmmmmmims sas mmm + moon mmm Po he 80C: 1 Total indebtedness -of national banks, restriction on; excep- tons. ooo -—--e-- Dp. 31, ec. 13; p. 85 I'rade, foreign banking corporations may not engage in-_.._ p. 59, sec. 25 (a) Transfer of funds among Federal reserve banks and branches. ___ p. 42, sec. 16 Treasurer of United States. (See Treasury of United States. Treasurer.) 168 INDEX Treasury of United States: Bills— As bonds and notes of United States Authorization for issuance of ______. - Certificates of indebtedness as bonds and notes of United States... meen Deposits by Federal reserve agent of gold or gold certificates with Treasurer___. ———- Dp. 40, 42, sec. 16 Gold redemption fund for national bank notes_._._...______ p. 67, sec. 27 Notes of, terms and conditions of issue.__ wenu- DD. 45, 46, sec. 18 Redemption of Federal reserve notes... .__. . __ pp. 37, 38, 39, sec. 16 Secretary— Appointment of member bank examiners subject to ap- provalof __________ [RE sen Comptroller of Currency under direction of .____________ Conflict of powers with Federal Reserve Board _.______._ Exchange by Federal reserve banks of United States bonds for gold notes.__._.__. meeee——--- Dp. 46, 47, sec. 18 Extension of circulating note benefits to State member banks__.... i ee ee mmmmmmeen Foreign coin, value of, when certified to, by Federal Reserve Bank of New York... meee Form and tenor of Federal reserve notes under direction of ___. re Issue of one-year gold notes of the United States, terms of _ Maintenance of parity of money by_ o_o. _________ May assign Federal Reserve Board offices in Treasury BAIN cv sms i win mii 1 3 Require foreign banking corporation to act as fiscal agent of United States. _ eo. -—- Pp. 56, sec. 25 (a) Service with member bank, restriction on. . p. 20, sec. 10 Strengthen gold reserve; procedure... _.___._....._____ p. 66, sec. 26 Subtreasuries abolished by, transfer of functions to Federal reserve banks. _________________.___ p. 89 Suspension of limitation regarding national bank cir- culation. _ cmnmemem~ Pe 87, soo, 27 Thirty-year 3 per cent gold bonds, terms of issue... pp. 45, 46, sec. 18 Use foreign banking corporations as depositaries...__. p. 56, sec. 25 (a) Subtreasuries abolished, transfer of certain functions to Federal reserve banks. c—- p. 89 Treasurer— Deposit of bonds by Federal reserve banks as security for circulating notes... ____.____________ pp.44, 45, sec. 18 Five per cent redemption fund by national banks for notes as part of reserve... __.__.__________ p.48, sec. 20 Receive gold or gold certificates from Federal reserve bank or Federal reserve agent. --=-- Pp. 40, 42, sec. 16 Trust powers of national banks__.. ___. wem--- DP. 23-25, sec. 11 (k) Two per cent gold bonds exchangeable for one-year gold notes and thirty-year 3 per cent gold bonds _ . D. 45, sec. 18 p- 76 pp. 75, 76 pp. 75, 76 INDEX 169 Di United States: Bonded indebtedness; Secretary of Treasury may apply earn- ings derived from Federal reserve banks in reduction of -. Bonds— Certificates of indebtedness as___.___ JR Deposits by national agricultural credit corporations in Yederal reserve banks to begin business_______..__.__ pp. 94, 95 Deposits in Federal reserve banks of, as security in lieu ~f sureties on penal bonds_______. - p. 103 Exchange by Federal reserve banks of 2 per cent gold bonds, conditions_ .___________ mnn- PP. 45, 46, sec. 18 Federal reserve banks may buy and sel) eee-- D. 35, sec. 14 (b) Loans to member banks on security of ——-- Pp. 31, sec. 13 Rediscounts of paper secured by_.__..... __-.-._. Pp. 28, 29, sec. 13 Secretary of Treasury may borrow gold on security of, to strengthen gold reserve or maintain parity of money... p. 66, sec. 26 Securing circulating notes of member banks, sale of_____ p. 44, sec. 18 Thirty-year 3 per cent gold bonds, issue of__.___. pp. 45, 46, sec. 18 Treasury bills as. -. mem pp. 73, 76 Certificates of indebtedness, authorization for issuance of... p. 76 Collections for, by Federal reserve banks_.____ ee w=-- D. 28, sec. 13 Code, parallel reference tables from and to Federal Reserve Act oo. —- Depositaries— Federal land banks________. mm p. 72 Federal reserve banks_. - Pp. 36, sec. 15; p. 89 Joint-stock land banks ——- p. 72 Member banks o.oo. ___. . p. 19, sec. 9; p. 36, sec. 15; p. 79 Deposits in Federal reserve banks.._..._._._._ p. 28, sec. 13; p. 36, sec. 15 Expenses incurred in printing and issuing Federal reserve notes and national bank notes, reimbursement... pp. 41, 42, sec. 16 Financial agents of, member banks as... p. 19, sec. 9; p. 79 Fiscal agents— Federal reserve banks as___. Foreign banking corporation as. National banke 88. ooo ooenun ono Franchise tax received from Federal reserve banks. . Notes— Certificates of indebtedness as_ ___._---. i p. 76 Deposits of, in Federal reserve banks as security in lieu of sureties on penal bonds. _ooaaoeo---- 2 p. 103 Federal reserve banks may buy and sell. _..._....___ p. 35, sec. 14 (b) Gold reserve, Secretary of Treasury may use earnings de- rived from Federal reserve banks to supplement gold reserve held against_ ____ « - - Loans by national banks on collateral of, prohibited. _. _. Treasury bills as... - Prohibition against use of term; penalty; exceptions_________ Representation of liability of, for acts or obligations of foreign banking corporations; penalty... ___. _._____.._ pp. 65, 66, sec. 25 (a). Right of foreign banking corporations to purchase and sell obligations of Lo. _.- p- 57, sec. 25 (a) Stock in Federal reserve banks. . p. 4. sec. 2 170 INDEX United States depositaries. (See Depositaries of the United States.) United States Treasurer. (See Treasury of United States, Treasurer.) Use of words ‘‘ Federal,” ¢ ‘reserve.’ or ‘ ‘United States.” limited__ pp. 96, 97 Validity of certified checks drawn against insufficient funds_ p. 19, sec. 9; p. 86 Value of shares of Federal reserve bank stock...___. _.. __._____ p.11,sec.5 Veterans, loans to, on promissory notes secured by adjusted service certificates... eeeeee___ Dp. 98-103 Violations. (See Crimes and penalties.) Visitatorial powers, extent of ___. ___ _ eee—- Dp. 48,49, sec. 21 Voluntary liquidation of national banks____ mee - p. 88 Voting power of Federal reserve bank stoek__. o_o ceceece. Dp. 4, sec. 2 Cy Warehouse receipts as security. --o-o-._._.___ p. 30, sec. 13; p. 33, sec. 13 (a) Warrants, eligibility of, for purchase by Federal reserve banks. p. 35, sec. 14 (b) Withdrawal from membership in Federal reserve system.. pp. 16, 17, sec. 9 World War Adjusted Compensation Act_. -- PD. 98-103 —_