Chapter 101. To amend sections seven, ten, and eleven of the Federal reserve Act, and section fifty-one hundred and seventy-two, Revised Statutes of the United States
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CHAP. 101.— An Act To amend sections seven, ten, and eleven of the Federal reserve Act, and section fifty-one hundred and seventy-two, Revised Statutes of the United States. March 3, 1919.[[S. 5236](/us/bill/65/s/5236).][[Public, No. 329](/us/pl/65/329).] *Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled*,Federal Reserve Act amendments.Division of earnings. Vol. 38, p. 258, amended.That that part of the first paragraph of section seven of the Federal reserve Act which reads as follows:
“After the aforesaid dividend claims have been fully met, all the net earnings shall be paid to the United States as a franchise tax except that one-half of such net earnings shall be paid into a surplus fund until it shall amount to forty per centum of the paid-in capital stock of such bank,” be amended to read as follows: "Franchise tax to be paid.“After the aforesaid dividend claims have been fully met, the net earnings shall be paid to the United States as a franchise tax except that the whole of such net earnings, including those for the year ending 1315 December thirty-first, nineteen hundred and eighteen, shall be paid Surplus fund Increased. into a surplus fund until it shall amount to one hundred per centum of the subscribed capital stock of such bank, and that thereafter ten per centum of such net earnings shall be paid into the surplus.”" Sec. 2.That that part of section ten of the Federal reserve Act Federal Reserve Board.
Connection of members with other banks prohibited.Vol .38, p. 260, amended.which reads as follows: “The members of said board, the Secretary of the Treasury, the Assistant Secretaries of the Treasury, and the Comptroller of the Currency, shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any member bank,” be amended to read as follows: "“The Secretary of the Treasury and the Comptroller of the Currency Treasury officials.shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any member bank.
The appointive members of the Federal Reserve Appointive members.Board shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any member bank, except that this restriction shall not apply to a Exception.member who has served the full term for which he was appointed.”Powers of Board.Vol. 39, p. 752, amended." Sec. 3.That section eleven of the Federal reserve Act as amended by the Act of September seventh, nineteen hundred and sixteen, be further amended by striking out the whole of subsection
(m)and by substituting therefor a subsection to read as follows: “(m)Upon the affirmative vote of not loss than five of its members, Rediscounts by reserve banks extended.the Federal Reserve Board shall have power to permit Federal reserve banks to discount for any member bank notes, drafts, or bills of exchange bearing the signature or endorsement of any one borrower in excess of the amount permitted by section nine and Limit.section thirteen of this Act, but in no case to exceed twenty per centum of the member bank’s capital and surplus: *Provided, *Provisos*. Security of liberty bonds, etc., required.ever*, That all such notes, drafts, or bills of exchange discounted for any member bank in excess of the amount permitted under such sections shall be secured by not less than a like face amount of bonds or notes of the United States issued since April twenty-fourth, nineteen hundred and seventeen, or certificates of indebtedness of the United States: *Provided further*, That the provisions of this subsection Permission to cease December 31, 1920.(m) shall not be operative after December thirty-first, nineteen hundred and twenty.” Sec. 4.That section fifty-one hundred and seventy-two, Revised Circulating notes. [R. S., sec. 5172, p. 1000, amended](/us/rs/sec5172/p1000). Issue authorized. Vol. 35, p. 551, amended.Statutes of the United States, be amended to read as follows: "“ Sec. 5172.That in order to furnish suitable notes for circulation, 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 to guard against counterfeiting and fraudulent alterations, and shall have printed therefrom and numbered such quantity of circulating notes in blank, or bearing engraved signatures of officers as herein provided, of the denominations of $1, $2, $5, $10, Denominations.$20, $50, $100, $500, and $1,000, as may be required to supply the associations entitled to receive the same. Such notes shall express Character of security, etc.upon their face that they are secured by United States bonds deposited with the Treasurer of the United States, by the written or engraved signatures of the Treasurer and Register, and by the imprint of the seal of the Treasury; and shall also express upon their face the promise of the association receiving the same to pay on demand, Engraved signatures allowed.attested by the written or engraved signatures of the president or vice president and cashier; and shall bear such devices and such other statements and shall be in such form as the Secretary of the Treasury shall, by regulation, direct.”" Approved, March 3, 1919.