National banking under the Federal Reserve System

Bibliographic data

Monograph

Identifikator:: 1757542345

URN:: urn:nbn:de:zbw-retromon-135097

Document type:: Monograph

Title:: National banking under the Federal Reserve System

Place of publication:: New York

Publisher:: The National City Bank of New York

Year of publication:: 1927

Scope:: 154 S.

Digitisation:: 2021

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Paper eligible for rediscount and purchase by federal reserve banks

Collection:: Economics Books

Paper REDISCOUNTED AND BougHT BY FEDERAL RESERVE BANKS bankers’ acceptances which are eligible for rediscount or for purchase by Federal Reserve Banks, or by the deposit or pledge of bonds or notes of the United States, or bonds of the War Finance Corporation. The Federal Reserve Board, exercising its statutory right to define the character of a note, draft, or bill of exchange eligible for redis- count at a Federal Reserve Bank, has determined that (a) It must be a note, draft, or bill of exchange which has been issued or drawn, or the proceeds of which have been used or are to be used in the first instance in producing, purchasing, carrying, or marketing goods in one or more of the steps of the process of production, manufacture, or distribution, or for the purpose of carrying or trading in bonds or notes of the United States. It must not be a note, draft, or bill of exchange the proceeds of which have been used or are to be used for permanent or fixed investments of any kind, such as land, buildings, or machinery, or for any other capital purpose. It must not be a note, draft, or bill of exchange the proceeds of which have been used or are to be used for investment of a purely speculative character or for the purpose of lending to some other borrower. An exception to the last named prohibition was incorporated in the Agricultural Credits Act of March 4, 1928, which provides that notes, drafts, and bills of exchange of factors issued as such making advances exclusively to producers of staple agricultural products in their raw state shall be eligible for discount. d) It may be secured by the pledge of goods or callateral of any nature, includ- ing paper, which is ineligible for rediscount, provided it (the note, draft, or bill of exchange) is otherwise eligible. Special conditions of eligibility for discount at the Federal Reserve Bank are applied in the case of each class of paper. Bankers’ acceptances eligible for rediscount by the Federal Reserve Banks IT Definition: A banker's acceptance within the meanings of the Federal Reserve Board Regulations, is defined as a draft or bill of exchange, whether payable in the United States or abroad, and whether payable in dollars or some other money, of which the acceptor is a bank or trust company, or a firm, person, company, or corporation ®ngaged generally in the business of granting bankers’ acceptance credits. A Federal Reserve Bank may rediscount any such bill having a Maturity at the time of discount of not more than 90 days (in case of AN acceptance drawn for an agricultural purpose, six months), exclu- Sive of days of grace, which has been drawn under a credit opened [71]

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