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3zc. 18 
FEDERAL RESERVE ACT 
The Federal Reserve Board shall require each Federal 
reserve bank to maintain on deposit in the Treasury of 
the United States a sum in gold sufficient in the judgment 
of the Secretary of the Treasury for the redemption of 
the Federal reserve notes issued to such bank, but in 
No event less than five per centum of the total amount 
of notes issued less the amount of gold or gold certificates 
held by the Federal reserve agent as collateral security; 
but such deposit of gold shall be counted and included 
as part of the forty per centum reserve hereinbefore 
required. The board shall have the right, acting through 
the Federal reserve agent, to grant in whole or in part, 
or to reject entirely the application of any Federal 
reserve bank for Federal reserve notes; but to the extent 
that such application may be granted the Federal 
Reserve Board shall, through its local Federal reserve 
agent, supply Federal reserve notes to the banks so 
applying, and such bank shall be charged with the 
amount of notes issued to it and shall pay such rate of 
Interest as may be established by the Federal Reserve 
Board on only that amount of such notes which equals 
the total amount of its outstanding Federal reserve 
notes less the amount of gold or gold certificates held 
by the Federal reserve agent as collateral security. 
Federal reserve notes issued to any such bank shall, 
upon delivery, together with such notes of such Federal 
reserve bank as may be issued under section eighteen 
of this act upon security of United States two per centum 
Government bonds, become a first and paramount lien 
on a!l the assets of such bank. 
Any Federal reserve bank may at any time reduce 
its liability for outstanding Federal reserve notes by 
depositing with the Federal reserve agent its Federal 
reserve notes, gold, gold certificates, or lawful money 
of the United States. Federal reserve notes so deposited 
shall not be reissued, except upon compliance with the 
conditions of an original issue. 
The Federal reserve agent shall hold such gold, gold 
certificates, or lawful money available exclusively for 
exchange for the outstanding Federal reserve notes 
when offered by the reserve bank of which he is a director. 
Upon the request of the Secretary of the Treasury the 
Federal Reserve Board shall require the Federal reserve 
agent to transmit to the Treasurer of the United States 
9