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:: Acceptance by member banks of drafts and bills of exchange

Collection:: Economics Books

ACCEPTANCE BY MEMBER BANKS OF DRAFTS AND BILLS OF EXCHANGE l [NDER the Federal Reserve Act any member bank may accept drafts or bills of exchange drawn upon it having not more than six months to run, exclusive of days of grace, which grow out of a transaction, or transactions, involving any one of the following: (a) The importation or exportation of goods. (b) Domestic shipment of goods, providing shipping documents conveying or securing title are attached at the time of acceptance. (¢) The storage of readily marketable staples,! providing that the bill is secured at the time of acceptance by a warehouse receipt, or other such document conveying or securing title. The Act limits the aggregate which any bank shall accept without security for any one person, company, firm, or corporation to an amount not exceeding at any time 109, of the bank’s paid-up and unimpaired capital stock and surplus. This limit, however, does not apply in any case where the accepting bank remains secured either by attached documents or by some other actual security growing out of the same transaction as the acceptance. Such bills may be accepted by a member bank up to an amount not exceeding at any time more than one-half of the bank’s paid-up and unimpaired capital stock and surplus; or, with the approval of the Federal Reserve Board, up to an amount not exceeding at any time more than one hundred per cent. of the bank’s paid-up and un- impaired capital stock and surplus. In no event shall the aggregate amount of the acceptances growing out of domestic transactions exceed fifty per cent. of the bank’s capital stock and surplus. The Federal Reserve Board has determined that any member bank, having an unimpaired surplus equal to at least twenty per cent. of its paid-up capital, which desires to accept drafts or bills of 1A readily marketable staple within the meaning of these regulations may be defined as an article of commerce, agriculture, or industry of such uses as to make it the subject of constant dealings in ready markets with such frequent otations of Jrice as to make (1) the price easily and definitely ascertainable and (2) the staple itself easy to realize upon by sale at any time. [ =4, 1

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