Calling meetings of bank directors......

Certificates of designation of reserve districts and re-
serve cities

Exercise functions of chairman of board of directors
of Federal Reserve Banks pending organization...
Expenses

Fixing geographical limits of districts.

General powers

Offer of stock to public subscribers.

Quorum

Supervision of organization of Federal Reserve Banks
Reserve cities:

Control of classification by Federal Reserve Board....
Previous status not changed....

Reserves required of banks in outlying districts of....

Secretary of Treasury:

S

Deposits with, by Federal Reserve Bank or agent..
Ex officio member of Federal Reserve Board....
Expenses of handling deposits..

Gold reserve to be maintained by...
Management of United States stock..

Shareholders (see also Stock), individual liability:

Federal Reserve Banks..

National banks

...

Silver certificates, substitution of federal reserve bank notes
for, see "Pittman Act," Appendic E.

State banks:

Cancellation of stock in Federal Reserve Bank.....
Certificates as to liabilities of debtors...

Certifying checks against insufficient funds..

Conditions of membership...

Converted into national banks...

Depositories of government funds, see Appendix D.
Eligibility for membership......

Examination. (See "Examinations”).

Examinations, not subject to requirements of section 21
Forfeiture of membership...

May become members of Federal Reserve Bank..
Must be eligible for conversion into national banks...
Penalties for failure to make reports.....
Qualifications required to become members.
Regulations

Retain powers under State charters..

State examinations may be accepted..

9, 21

Subject to provisions and penalties of Revised Statutes
5209, upon becoming members...

Subject to section of Federal Reserve Act applied to
member banks; but not subject to section 21........

9

9

9

9

9

9

2

5

9

2

Subscription to stock in Federal Reserve Banks......
Withdrawal from membership...

Stock:

(see also Shareholders.)

Of Federal Reserve Banks-

Amount to be held by single member or shareholder
Calls on subscriptions...

Cancellation of stock held by insolvent member
banks

Increase

Increase of subscriptions required on increase of
member banks' capital stock.

Limitation on cancellations..

National banks must subscribe.

Payments on subscriptions.

Public subscriptions

Reduction

....

.....

Shares owned by member banks not to be transfer-

red

Subscription

Subscription by national banks.

Subscription by State banks...

Subscription required of new members.

Surrender upon reduction of capital or liquidation
of member banks....

Transfer of

Of banks organized in U. S. for foreign business,

Voting power

May be owned by national banks...

Of member banks-

.25-25-a

5

Trust companies, acceptance of terms of Federal Reserve
Act

Trust powers of national banks.

United States stock:

U

Allotment by organization committee...

Management by Secretary of the Treasury..

INDEX TO TEXT

Acceptances, trade acceptances and bank acceptances, may
purchased by federal reserve banks in open market, 42
may be rediscounted by federal reserve banks, 44-47.
also bank acceptances and trade acceptances.

Advisory Council, how constituted, 33-34.

Agricultural paper, eligible for rediscount at federal rese
banks, 62.

Bank acceptances, nature of, 46-47; advantages of, 46-48; re
countable by federal reserve banks, 47-48; use of, in connec
with foreign trade, 79-80.

Bank credit, extent to which used as a medium of exchange
1913, 8-10.

Bank note, bond-secured, under federal reserve law, 50-51; fede
reserve bank note, 51. See also federal reserve note and b

reserves.

Bank-note inelasticity, under old banking system, 11-17; seaso
chart showing, 16.

Branches of national banks, may be established in foreign count
80-81.

Canadian bank notes, elasticity of, compared with that of U.
national bank notes, 14-16.

Capital of federal reserve banks, minimum amount of, 29; amo
paid-in, 31; how subscribed, 31.

Capital required of banks organized for foreign trade, 81-82.
Centralization of bank reserves in respective federal rese
districts, 35-38.

Central reserve city banks, reserve requirements of, 37.
Class A directors of federal reserve banks, who and how elect
32.

Class B directors of federal reserve banks, who and how elect
32-33.

Class C directors of federal reserve banks, who and how chos
32-33.

Clearing-member banks, defined, 70.

Clearing out-of-town checks, under old banking system, 19-
under federal reserve system, 70-75; cost of, how met, 73-
system extended to cover promissory notes, trade bills, ti
drafts and similar items, 74-75; services rendered by system,
Collateral loans, character of, which may be made by fede
reserve banks, 63-64.

Collection of out-of-town checks. See clearing out-of-town checks.
Commercial paper, creation of a broader discount market for,
44-48; kinds of, eligible for rediscount by federal reserve banks,

61-62.

Comptroller of the currency an ex-officio member of federal re-
serve board, 33.

Contractility of circulating credit under federal reserve system,
64-65.

Country banks, reserve requirements of, 37.

Credit elasticity under federal reserve system, 50-65.

Credit inelasticity under old banking system, evil results of, 18.
Currency shipments, heavy under old banking system, 22-23; may
be made by member banks, at expense of federal reserve banks,
to settle adverse balances arising out of clearing and collection
system, 72.

Decentralization of American banking prior to federal reserve
system, 3-7.

Defects of old banking system summarized, 2.

Deposit currency, inelasticity of, under old system, 17; elasticity
of, under federal reserve system, 57-65.

Deposit-turnover, rate of, in 1913, 9-10.

Depositaries, government, apportionment of funds among, under
old banking system, 25-27; use of federal reserve banks as,
82-87; use of individual banks as, during war, 87.
Directors of federal reserve banks, classes of, 32-33.

Discount market, a broader one being created by federal reserve
system, 44-48.

Discount rates of federal reserve banks, how made effective,
42n; tendency of, to equilibrium throughout country, 43-44.
Domestic exchange under federal reserve system, 66-78.
Earnings of federal reserve banks, their distribution, 59.
"Edge Amendment" character and powers of banks organized
thereunder, 82.

Elasticity, credit, under old banking system, 8-18; under federal
reserve system, 50-65. See also bank-note inelasticity and
deposit-currency inelasticity.

Exchange and transfer system, defective prior to federal reserve
system, 19-24; under federal reserve system, 66-81.

Exchange charges, formerly imposed by federal reserve banks on
member banks to cover expenses of clearing and collection sys-
tem, 73; discontinued in 1918, 73; reasonableness of exchange
charges of member banks and clearing member banks to be de-
termined by federal reserve board, 74.

Federal reserve agent, position of, 33.

Federal reserve agents' fund, described, 76.

Federal reserve bank agencies in foreign countries, 80.

Federal reserve banks, capital stock of, 31; subscriptions to, re-

quired of member banks, 31; plan of organization of, 31-33;
the sole depositaries of member banks' legal reserve money,
35-38.

Federal reserve bank notes, described, 51.

Federal reserve board, how constituted, 33-34; powers of, 34-35;
may permit reserve held against federal reserve notes to fall
below 40 per cent in times of emergency, 53-54; must impose a
deficiency tax when reserve falls below 40 per cent, 53; may
suspend for brief periods, in times of emergency, all reserve
requirements of act, 53-54; may impose a special rate of interest
on issues of federal reserve notes uncovered by gold, 56; super-
visory powers of over banks organized under "Edge Amend-
ment," 81-82.

Federal reserve clearing and collection system, 70-78.
Federal reserve districts, how determined, 28-29; map of, 30.
Federal reserve notes, described, 51-52; collateral eligible for, in
hands of federal reserve agent, 51-52; gold reserve required
against, 52; elasticity of, 52-57; legal minimum reserve for,
may be reduced in time of emergency, on payment of a gradu-
ated deficiency tax, 53; amount of, outstanding, and character
of collateral held against, 54; possibility of further expansion
of, 54-55; of one federal reserve bank may not be paid out by
another, 55-56; machinery for contracting circulation of, ques-
tion of its adequacy, 55-57.

Fiscal agents of Government, federal reserve banks serve as, 88;
render valuable services as, in war financing, 88.

Fisher, Irving, cited, 9, 57.

"Float," how handled under old banking system, 20-22; evils of,
largely eliminated by federal reserve clearing and collection
system, 72-73, 78.

Foreign agencies established by federal reserve banks, 80.
Foreign branches of American national banks established, 80-81.
Foreign exchange, difficulties with, prior to federal reserve sys-
tem, 23-24; under federal reserve system, 79-81; services with
reference to, rendered by federal reserve system, 79-81.
Foreign trade, banks organized under federal charters to
carry on, 81-82.

Gold, amount of, held against federal reserve note issues, 54.
Gold reserve required against federal reserve notes, may be re-
duced in time of emergency, 53-54.

Gold settlement fund, described, 75-76.

Government, old banking system ill adapted to fiscal needs of,
25-27; participation of, in profits of federal reserve banks, 59.
Government depositaries, federal reserve banks serve as, 82-86;
banks which serve as, under war conditions, 86-87.

Inelasticity of bank notes under old banking system, 11-17; charts
showing, 14-15.

Inelasticity of credit under old banking system, 8-18; evil results
of, 18.

Inelasticity of deposit credit under old banking system, 17.

Interest, a special rate of, may be imposed by federal reserve