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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