NATIONAL BANKING UNDER THE FEDERAL RESERVE SYSTEM
fifty-one hundred and fifty-three, fifty-one hundred and seventy-two,’ fifty-one hundred
and ninety-one, and fifty-two hundred and fourteen of the Revised Statutes of the
United States, which were amended by the Act of May thirtieth, nineteen hundred and
eight, are hereby reenacted to read as such sections read prior to May thirtieth, nineteen
hundred and eight, subject to such amendments or modifications as are prescribed in
this Act: Provided, however, That section nine of the Act first referred to in this section
is hereby amended so as to change the tax rates fixed in said Act by making the portion
applicable thereto read as follows:
National banking associations having circulating notes secured otherwise than by
bonds of the United States, shall pay for the first three months a tax at the rate of three
per centum per annum upon the average amount of such of their notes in circulation
as are based upon the deposit of such securities, and afterwards an additional tax rate
of one-half of one per centum per annum for each month until a tax of six per centum
per annum is reached, and thereafter such tax of six per centum per annum upon the
average amount of such notes: Provided further, That whenever in his judgment he
may deem it desirable, the Secretary of the Treasury shall have power to suspend the
limitations imposed by section one and section three of the Act referred to in this sec-
tion, which prescribe that such additional circulation secured otherwise than by bonds
of the United States shall be issued only to National banks having circulating notes
outstanding secured by the deposit of bonds of the United States to an amount not less
than forty per centum of the capital stock of such banks, and to suspend also the con-
ditions and limitations of section five of said Act except that no bank shall be per-
mitted to issue circulating notes in excess of one hundred and twenty-five per centum
of its unimpaired capital and surplus. He shall require each bank and currency asso-
ciation to maintain on deposit in the Treasury of the United States a sum in gold suf-
ficient in his judgment for the redemption of such notes, but in no event less than five
per centum. He may permit National banks, during the period for which such pro-
visions are suspended, to issue additional circulation under the terms and conditions
of the Act referred to as herein amended: Provided further, That the Secretary of the
Treasury, in his discretion, is further authorized to extend the benefits of this Act to all
qualified State banks and trust companies, which have joined the Federal reserve Sys-
tem, or which may contract to join within fifteen days after the passage of this Act.
Sec. 28. Section fifty-one hundred and forty-three of the Revised Statutes is hereby
amended and reenacted to read as follows: Any association formed under this title
may, by the vote of shareholders owning two-thirds of its capital stock, reduce its
capital to any sum not below the amount required by this title to authorize the forma-
tion of associations; but no such reduction shall be allowable which will reduce the
capital of the association below the amount required for its outstanding circulation,
nor shall any reduction be made until the amount of the proposed reduction has been
reported to the Comptroller of the Currency and such reduction has been approved by
the said Comptroller of the Currency and by the Federal Reserve Board, or by the
organization committee pending the organization of the Federal Reserve Board.
‘Amended as to sec. 5172, Revised Statutes, by act approved Mar. 3, 1919.
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