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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Chapter

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 Feperar RESERVE BANKS exchange of the kinds and maturities made eligible by the Federal Reserve Act for rediscount, with or without the indorsement of a member bank. As a matter of fact, the bulk of the Federal Reserve Banks’ transactions in paper of this sort consists in sales and purchases in the open market, under the section of the Act so permitting. The Federal Reserve Board has determined that a bill of exchange or acceptance to be eligible for purchase by Federal Reserve Banks under this provision of the Federal Reserve Act must (a) Conform to the relative requirements of the Board's Regulation A. (Re- viewed briefly but not completely in Section I of this Chapter, “Notes, drafts, bills of exchange,” etc.) Exception: A banker’s acceptance growing out of a transaction involving the storage within the United States of goods which have been actually sold, may be purchased, providing that the acceptor is secured by the pledge of such goods and, providing further, that the bill conforms in other respects to the relative requirements of Regulation A. b) Must have a maturity at the time of purchase of not more than 90 days, or in case of an acceptance drawn for an agricultural purpose, six months. A banker’s acceptance growing out of a transaction involving the importa- tion or exportation of goods may also be purchased with a maturity not in excess of six months, exclusive of days of grace. Must have been accepted by the drawee prior to purchase by a Federal Reserve Bank, unless it is either accompanied and secured by shipping documents, or by a warehouse, terminal, or other similar receipt conveying security title, or bears a satisfactory banking endorsement. (d) By an amendment adopted as a part of the Agricultural Credits Act of March 4, 1923, the Federal Reserve Banks are authorized also to purchase and sell in the open market 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. 78 |

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