Imagens da página
PDF
ePub

59

FEDERAL RESERVE BOARD—Composed of_Continued. Paragraph
Only one shall be selected from any one reserve district..

58
Two shall be experienced in banking and finance. ...,

59
Orie shail be designated by the President as governor of the reserve
board, and shalĩ be its active executive officer.

59
One shall be designated by the President as vice-governor.
Term of service ten years..

59
Term of first five shall be for 2, 4, 6, 8 and 10 years.

59
Removal by the President for cause..

59
Salaries, $12,000 per year and traveling expenses.

58
Devote entire time

58
No member shall be an officer or director in or stockholder of any
bank and must take an oath to that effect.

61
No member shall for two years after he has ceased to be such

member be employed by any member bank (also applies to Secre-
tary and Assistant Secretaries of the Treasury and Comptroller) 59
Vacancies to be filled by the President.

61, 62
Senators and Representatives in Congress ineligible.

35
Powers:
Make regulations for its own conduct....

74
Exercise general supervision over reserve banks.

75
To formulate regulations governing offices of reserve agents.

43
Suspend, administer, reorganize or liquidate a reserve bank..

73
Create additional reserve districts and cities.

2
Permit national banks in Alaska or outside the United States, except
in the Philippines, to become members..

128
Review the acts of the organization committee as to the creation
of reserve districts and designation of reserve cities.

2
Call meetings of Advisory Council.

78
Direct the Comptroller to bring suit against banks for violation of
Act ...

7
Examine reserve and member banks.

66, 134
May accept State examination of State banks.

130
Upon joint application of ten member banks shall order special ex-
amination of reserve bank....

134
Act as a clearing house for reserve banks or designate any reserve
bank to so act

108
Fix charges for reserve and member banks for clearing or collecting
checks

107
Make regulations and fix charges for the transfer of funds.

108
Make regulations limiting liability of member banks.

55
Issue weekly statements as to condition reserve banks.

66
Require reports from member banks....

66
Require one reserve bank to rediscount discounted paper of other
reserve banks

67
Suspend any reserve requirement for 30 days and renew suspension
for 15-day periods.

68
Make regulations permitting member banks to check against their
reserves in reserve banks

126
Establish a graduated tax on deficiencies of reserves against re-
serve notes

68
Regulate issue and retirement of reserve notes.

.65, 69, 95
Shall be notified each day of volume of outstanding notes of reserve
banks

96
Additional security may be called for to protect notes.

96
May reject application for notes in whole or in part.

98
To fix rate of interest on reserve notes

98
Require reserve banks to maintain redemption fund for notes.

98
Prescribe regulations for exchange of collateral to secure notes. 101
Make assessments for expenses of_note circulation.....

104
May require deposit of gold with Treasury for redemption of notes 100
Increase or decrease number of cities heretofore designated as
reserve or central reserve cities.

70
Appoint Class C directors.

34, 43
Select chairman and reserve agent for each reserve bank.

43
Require bonds of reserve agents...

74
Approve salaries and expenses reserve banks.

44

[ocr errors]

FEDERAL RESERVE BOARD-Powers—Continued.

Paragraph
Assess reserve banks for expenses of reserve board..

6C
Suspend or remove directors or officers reserve banks.

7
State banks admitted to membership under by-laws to be established 54
Surrender of stock may be required of State banks.

52
Surrender of stock by member banks to be subject to regulations
by reserve board

47
Require writing off of doubtful assets of reserve banks.

72
Define character of paper that may be rediscounted.

81
Rediscount regulations to be made....

82
Open market operation regulations to be made.

87
Purchase of tax warrants, etc, regulations to be made.

89
Review and determine discount rates..

9
Permit National banks to act as trustees, registrars, etc...

70
May grant permission to federal reserve banks to open bank ac-

counts, appoint correspondents and establish agencies abroad.. 92
Permit National banks to establish foreign branches.

141
May order special examination of foreign branches.

142
Receive from Treasurer lists of government bonds for sale by
member banks

111
May require reserve banks to buy government bonds of member

banks, not to exceed in the aggregate $25,000,000 in any one year 111
Shall allot bonds to reserve banks to be purchased by them accord-
ing to their capital and surplus...

112
May add to the cities wherein national banks may not make farm
loans

140
Shall approve applications for reduction of capital by national banks 145
Shall fix the salaries of bank examiners...

131
Make regulations for the transfer of reserve bank stock.

13
Shall report annually to Congress....

64
May employ attorneys, experts, assistants and clerks.

77
May have quarters in the Treasury.

59
First meeting to be held in Washington.

61

FEDERAL RESERVE BANKS.
Organization:
Upon the establishment of not less than 8 nor more than 12 districts

and selection of a reserve city in each, the Comptroller shall for-
ward to national and other banks in each district resolutions sub-
scribing for stock, to be adopted by boards of directors of apply-
ing banks. When the minimum capital of $4,000,000 has been
subscribed for in a district, the Committee or Board shall desig-
nate five banks applying for membership in a district to execute
the certificate of organization of a reserve bank, and upon the
filing of this certificate with the Comptroller, the reserve bank
shall become a body corporate...

..16, 17, 18, 19
Board of Directors:
Each reserve bank shall be conducted by a board of nine directors,

each serving for three years, and divided into classes A, B and C:
the first three of each class shall, however, serve for 1, 2 and 3
years, respectively..

.29, 31, 46
Class A directors shall be chosen by and be representative of the
stockholding banks

.32, 38-42
Class B directors shall be representative of commercial, industrial

or agricultural pursuits, and are to be chosen by the stockholding
banks

.33, 38-42
No Class B director shall be an officer, director or employe of any
bank

36
Class C directors are to be chosen by the reserve board..

34, 43
No Class C director shall be an officer, director or employe, or
stockholder of any bank....

37
Class C directors shall have been residents for 2 years of the dis-
tricts in which appointed..

43
One of Class C directors, possessing tested banking experience,

shall be designated by the reserve board as Chairman of the
board and Reserve Agent

43

43

esa bert

FEDERAL RESERVE BANKS—Board of Directors—Cont'd. Paragraph

One possessing tested banking experience, shall be designated as

Deputy Chairman of the board and Deputy Reserve Agent.... 43
The Chairman and Reserve Agent is to receive compensation fixed
by the reserve board.

43
The Chairman shall be the official representative of the reserve board

and shall make regular reports to it....
Members of boards of directors are to receive reasonable allowances

for expenses and may receive compensation, to be approved by
the reserve board and paid by the banks..

44
No Senator or Representative in Congress shall be a director.

35
Capitalization:
No reserve bank shall commence business with a subscribed capital
of less than $4,000,000..

14
Stock is to be issued in shares of $100.

47
National banks are required to subscribe in an amount equal to 6%

of their capital and surplus within 30 days after notice by the
organization committee or the reserve board that the districts
have been defined and reserve bank cities designated...

4
Payments for stock to be in gold or gold certificates, one-sixth on

call of reserve board; one-sixth within three months; and one-
sixth within six months thereafter. The balance shall remain

subject to call by the reserve board
Double liability attaches to owners of stock.
Stock shall not be transferred or hypothecated.

47
State banks and trust companies admitted to membership on same
terms as national banks as to capital subscription..

53
Individuals or corporations are to be given opportunity to subscribe

to the capital of reserve banks in the event the subscription by
banks does not furnish required capital..

9
Amount of public stock that may be held by single corporation or
person limited to $25,000..,

10
The United States may be allotted stock in the event the banks and

the public do not furnish sufficient capital for the regional banks. 11
Stock not held by member banks shall have no voting power.... 12
Powers:
To adopt and use a corporate seal.

20
To have succession for twenty years.

21
To make contracts

22
To complain or defend in any court of law or equity.

23
To appoint officers, employes, etc., and require honds.

24
To prescribe by its board of directors by-laws for its conduct.

25
To exercise all powers prescribed by law and such incidental
powers as are necessary to the conduct of banking..

26
To receive deposits from the United States and from its member
banks ...

80
To receive solely for exchange purposes, deposits from other reserve
banks

80
Required to maintain against its deposits a reserve equal to 35% in

gold or lawful money; and reserves in gold equal to 40% against
its notes in actual circulation.

97
Deposits to consist of lawful money, national bank notes, federal
reserve notes or checks and drafts upon solvent member banks
payable upon presentation

80
Discounts:
May discount upon the indorsement of any of its member banks,

notes, drafts and bills of exchange issued or drawn for agricul-
tural,' industrial or commercial purposes, or to be used for such
purposes; the reserve board to have the right to define the char-
acter of the paper to be thus discounted...

81
May not discount notes, drafts or bills covering investments or

issued or drawn for the purpose of trading in stocks, bonds or
other investment securities.

81
Maturity at the time of discount of above paper must not exceed
ninety days

81

1

[ocr errors]

FEDERAL RESERVE BANKS—Discounts—Continued.

Paragraph
Notes, drafts and bills drawn or issued for agricultural purposes or

based on live stock, having a maturity not to exceed six months
may be discounted to a limited amount, the extent of which to be
fixed by the reserve board. ...

81
May discount acceptances based on importation or exportation of

goods having a maturity not exceeding three months and indorsed
by at least one member bank, but not in amount to exceed one-
half the capital stock and surplus of the bank for which the redis-
counts are made

82
Except bills of exchange drawn in good faith against existing

values the aggregate discounts of paper bearing the same name
shall not exceed ten per cent. of the capital and surplus of the
bank for which the rediscounts are made.

83
All rediscount operations to be subject to such restrictions, limi-

tations and regulations as may be imposed by the reserve board 86
Rates of discount are to be established from time to time, with the

approval of the reserve board, fixed with a view of accommo-
dating commerce and business

91
To purchase from member banks, and to sell, with or without its

indorsement, bills of exchange arising out of commercial trans-
actions

90
Open market operations permitted and defined.

87
To deal in gold coin or bullion at home or abroad and make loans
thereon

88
To exchange federal reserve notes for gold coin or gold certificates 88
To borrow gold coin or bullion, pledging acceptable security, includ-
ing United States bonds....

88
To buy and sell bonds and notes of the United States and obliga-

tions of a State or a political subdivision thereof of not over six

months' maturity, and issued in anticipation of assured revenues. 89
To establish accounts with other reserve banks for exchange purposes 92
To open and maintain bank accounts in foreign countries.....

92
To establish agencies in foreign countries for the purpose of pur-

chasing and selling bills of exchange of not over 90-days' maturity
and having two signatures

92
Government Deposits:
Reserve banks are to be the fiscal agents of the government, in

which government funds may be deposited, except funds in the
Treasury for the redemption cf circulating notes.

93
Note Issue:
The issue of reserve notes by the government is authorized at dis-

cretion of reserve board to make advances to reserve banks upon
application by such banks..

. 95, 96
Application may be rejected in whole or in part by reserve board.. 98
Such notes are to be obligations of the United States and receiv-

able by all reserve and member banks and for all taxes, customs
and other public dues.

95
Redeemable in gold on demand at the Treasury of the United States,
or in gold or lawful money at any federal reserve bank...

95
Secured by reserves in gold of not less than 40 per cent. of notes

in circulation, and collateral security consisting of notes and bills
accepted for rediscount in an amount equal to the notes in actual
circulation

96, 97
They are to be a first lien on all of the assets of the issuing bank.. 98
Reserve notes shall bear upon their faces a distinctive letter and

serial number to identify the notes of each reserve bank..... 97
Reserve notes of one reserve bank received by another shall be at

once returned to the issuing bank for credit or redemption..... 97
No reserve bank shall pay out the notes of another under penalty

of a ten per cent. tax on the amount of the notes so paid out.... 97
Reserve notes presented for redemption at the Treasury shall be

redeemed out of the redemption fund and returned to the issuing
bank

97
Reserve notes unfit for use to be returned to the Comptroller for
destruction

97

[ocr errors]

FEDERAL RESERVE BANKS--Note Issue-Continued. Paragraph

Rate of interest to be charged issuing banks to be fixed by reserve
board

98
Reserve banks required to maintain with the Treasury a sum in

gold sufficient in the opinion of the Secretary of the Treasury,
but in no event less than 5% of outstanding notes to redeem the
notes presented; such fund to be a part of the 40% redemption
fund

....97, 98, 93
Reserve notes presented to the Treasury otherwise than for redemp-

tion may be exchanged for gold out of the redemption fund and
returned to the reserve bank of issue, or the notes may be re-

turned to the issuing bank for the credit of the United States... 97
Reduction of reserve notes in circulation and reduction of liability

therefor by issuing banks may be accomplished by the deposit of
notes, gold, gold certificates or lawful money with the reserve
agent; federal reserve notes so deposited not to be reissued..

99
Collateral securities for the notes may be withdrawn and other
securities substituted

101
Reserve notes to be engraved and printed under the jurisdiction of

the Secretary of the Treasury and Comptroller of the Currency.. 102
Reserve notes shall be in denominations of $5, $10, $20, $50 and $100

102
Reserve notes shall be kept available for issue in the Treasury, sub-
treasuries and mints

103
Expense of issue shall be borne by reserve banks.

104
Section 5174 R. S. providing examination of plates, dies, etc., of
national bank notes, made applicable to reserve notes...

105
Extends existing appropriations and materials for preparation of
reserve notes

106
Circulating Notes on U. S. Bonds:
Upon deposit of United States bonds bearing the circulation privi-

lege with the Treasurer, reserve banks may issue circulating
notes to the amount of the face value of the bonds, no limit
being placed on the amount that may be so issued... ...27, 114, 115
Notes issued on bonds shall be the obligation of the issuing banks,

and issued in the same form and tenor and redeemed under the
same terms and conditions as national bank notes....

115
Bond Refunding:
After December 23, 1915, a member bank desiring to retire any

part of its circulation shall file with the Treasurer of the United
States an application to sell at par and interest its bonds to secure
the circulation to be retired. The reserve board is given authority
to require reserve banks to purchase these bonds to an aggregate
amount of $25,000,000 in any one year, the bonds to be paid for in
lawful money, and the circulation outstanding secured by them
retired, and the purchasing bank permitted to issue its own cir-
culation to the face value of the bonds.

...110-115
In lieu of issuing circulation against the bonds purchased of mem-

ber banks, reserve banks are authorized to exchange them, one-
half for one year 3% United States gold notes, and one-half for
30-year 3% gold bonds without the circulation privilege, the bank
obligating itself to redeem the one-year notes at maturity for a
period of thirty years, the government to issue to it new notes in
lieu of those redeemed

...116, 117
One-year gold notes may be exchanged for 3% thirty-year bonds in
the dircretion of the reserve board...

118
Clearing-house Functions:
Reserve board authorized to require a reserve bank to exercise the

functions of a clearing house for the reserve banks, and also may
require each reserve bank to exercise such functions for it's
member banks

108
Reserve banks shall receive on deposit at par from member or

reserve banks checks and drafts drawn on any of its depositors;
and when remitted by a reserve bank, checks and drafts drawn on
funds in any reserve or member bank...

107

1

« AnteriorContinuar »