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FEDERAL RESERVE ACT Sec. 16

so much of the gold held by him as collateral security for
Federal reserve notes as may be required for the exclusive
purpose of the redemption of such Federal reserve notes,
but such gold when deposited with the Treasurer shall
be counted and considered as if collateral security on
deposit with the Federal reserve agent.
Any Federal reserve bank may at its discretion withdraw
 collateral deposited with the local Federal reserve
agent for the protection of its Federal reserve notes
issued to it and shall at the same time substitute therefor
other collateral of equal amount with the approval of
the Federal reserve agent under regulations to be prescribed
 by the Federal Reserve Board. Any Federal
reserve bank may retire any of its Federal reserve notes
by depositing them with the Federal reserve agent or
with the Treasurer of the United States, and such Federal
reserve bank shall thereupon be entitled to rece ve back
the collateral deposited with the Federal reserve agent
for the security of such notes. Federal reserve banks
shall not be required to maintain the reserve or the redemption
 fund heretofore provided for against Federal
reserve notes which have been retired. Federal reserve
notes so deposited shall not be reissued except upon
compliance with the conditions of an original issue.
All Federal reserve notes and all gold, gold certificates,
and lawful money issued to or deposited with any
Federal reserve agent under the provisions of the Federal
reserve act shall hereafter be held for such agent, under
such rules and regulations as the Federal Reserve Board
may prescribe, in the joint custody of himself and the
Federal reserve bank to which he is accredited. Such
agent and such Federal reserve bank shall be jointly
liable for the safe-keeping of such Federal reserve notes,
gold, gold certificates, and lawful money. Nothing
herein contained, however, shall be construed to prohibit
 a Federal reserve agent from depositing gold or
gold certificates with the Federal Reserve Board, to be
held by such board subject to his order, or with the
Treasurer of the United States for the purposes authorized
 by law.
In order to furnish suitable notes for circulation as
Federal reserve notes, the Comptroller of the Currency
shall, under the direction of the Secretary of the Treasury,
cause plates and dies to be engraved in the best manner