NaTioNAL BANKING UNDER THE FEDERAL RESERVE SYSTEM 
extent as and 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 mar- 
keting associations composed of producers of agricultural products shall be deemed to 
have been issued or drawn for an agricultural purpose, within the meaning of this sec- 
tion, if the proceeds 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 
association 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 association 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 
As amended by act approved Sept. 7, 1916 (39 Stat., 752, chap. 461); act approved 
June 21, 1917 (40 Stat., 232, chap. 32); act approved Apr. 13, 1920 (41 Stat., 550, chap. 
(28); act approved Mar. 4, 1923. 
Sec. 14. Any Federal reserve bank may, under rules and regulations prescribed by 
the Federal Reserve Board, purchase and sell in the open market, at home or abroad, 
either from or to domestic or foreign banks, firms, corporations, or individuals, cable 
transfers and 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. 
Every Federal reserve bank shall have power; 
(a) To deal in gold coin and bullion at home or abroad, to make loans thereon, ex- 
change Federal reserve notes for gold, gold coin, or gold certificates, and to contract 
for loans of gold coin or bullion, giving therefor, when necessary, acceptable security, 
including the hypothecation 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 
exceeding six months, issued in anticipation of the collection of taxes or in anticipation 
of the receipt of assured revenues by any State, county, district, political subdivision. 
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