Chapter 32. To amend the Act approved December twenty-third, nineteen hundred and thirteen, known as the Federal reserve Act, as amended by the Acts of August fourth, nineteen hundred and fourteen, August fifteenth, nineteen hundred and fourteen, March third, nineteen hundred and fifteen, and September seventh,
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CHAP. 32.— An Act To amend the Act approved December twenty-third, nineteen hundred and thirteen, known as the Federal reserve Act, as amended by the Acts of August fourth, nineteen hundred and fourteen, August fifteenth, nineteen hundred and fourteen, March third, nineteen hundred and fifteen, and September seventh, nineteen hundred and sixteen. June 21, 1917.[[H. R. 3673](/us/bill/65/hr/3673).][[Public, No. 25](/us/pl/65/25).] *Be it enacted by the Senate and House of Representatives of the Un ited States of America in Congress assembled*, Federal Reserve Act Amendments.
That section three of the Act known as the Federal reserve Act be amended and reenacted so as to read as follows: " “Sec. 3. Branches of reserve banks authorized.Vol. 38, p. 253, amended.Management, etc., modified. The Federal Reserve Board may permit or require any Federal reserve bank to establish branch banks within the Federal reserve district in which it is located or within the district of any Federal reserve bank which may have been suspended. Such branches, subject to such rules and regulations as the Federal Reserve Board may prescribe, shall be operated under the supervision of a board of directors to consist of not more than seven nor less than three directors, of whom a majority of one shall be appointed by the Federal reserve bank of the district, and the remaining directors by the Federal Reserve Board.
Directors of branch banks shall hold office during the pleasure of the Federal Reserve Board.” " Sec. 2. Directors of reserve banks.Vol. 38, p. 255, amended. That section four in the paragraph relating to the appointment of class C directors and prescribing their duties be amended and reenacted so as to read as follows: " Class C directors.Appointment, etc.One to be chairman of board and reserve agent.“Class C directors shall be appointed by the Federal Reserve Board. They shall have been for at least two years residents of the district for which they are appointed, one of whom shall be designated by said board as chairman of the board of directors of the Federal reserve bank and as ‘Federal reserve agent.’ He shall be a person Duties.of tested banking experience, and in addition to his duties as chairman of the board of directors of the Federal reserve bank he shall be required to maintain, under regulations to be established by the Federal Reserve Board, a local office of said board on the premises of the Federal reserve bank.
He shall make regular reports to the Federal Reserve Board and shall act as its official representative for the performance of the functions conferred upon it by this Act. Pay.He shall receive an annual compensation to be fixed by the Federal Reserve Board and paid monthly by the Federal reserve bank to Deputy chairman.which he is designated. One of the directors of class C shall be appointed by the Federal Reserve Board as deputy chairman to exercise the powers of the chairman of the board when necessary.
In case of the absence of the chairman and deputy chairman, the third class C director shall preside at meetings of the board. Assistant agents.Duties, etc.“Subject to the approval of the Federal Reserve Board, the Federal reserve agent shall appoint one or more assistants. Such assistants, who shall be persons of tested banking experience, shall assist the Federal reserve agent in the performance of his duties and shall also have power to act in his name and stead during his absence or disability.
The Federal Reserve Board shall require such bonds of the assistant Federal reserve agents as it may deem necessary for the protection of the United States. Assistants to the Federal reserve agent shall receive an annual compensation, to be fixed and paid in the same manner as that of the Federal reserve agent.” " Sec. 3. State, etc., banks.Vol. 38, p. 259, amended.Applications of, to become member banks. That section nine be amended and reenacted so as to read as follows: " “Sec. 9.
Any bank incorporated by special law of any State, or organized under the general laws of any State or of the United States, desiring to become a member of the Federal Reserve System, may make application to the Federal Reserve Board, under such rules and regulations as it may prescribe, for the right to subscribe to the stock of the Federal reserve bank organized within the district 233in which the applying bank is located. Such application shall be for Stock subscriptions.the same amount of stock that the applying bank would be required to subscribo to as a national bank.
The Federal Reserve Board, subject to such conditions as it may prescribe, may permit the applying bank to become a stockholder of such Federal reserve bank. “In acting upon such applications the Federal Reserve Board Acceptability consid ered.shall consider the financial condition of the applying bank, the general character of its management, and whether or not the corporate powers exercised are consistent with the purposes of this Act. “Whenever the Federal Reserve Board shall permit the applying Issue of stock to, if admitted.bank to become a stockholder in the Federal reserve bank of the district its stock subscription shall be payable on call of the Federal Reserve Board, and stock issued to it shall be held subject to the provisions of this Act.
“All banks admitted to membership under authority of this section Conditions to be complied with.shall be required to comply with the reserve and capital requirements of this Act and to conform to those provisions of law imposed on national banks which prohibit such banks from lending on or purchasing their own stock, which relate to the withdrawal or impairment of their capital stock, and which relate to the payment of unearned dividends. Such banks and the officers, agents, Offenses, etc.[R.
S., sec. 5209, p. 1007](/us/rs/s5209/p1007).and employees thereof shall also be subject to the provisions of and to the penalties prescribed by section fifty-two hundred and nine of the Revised Statutes, and shall be required to make reports of Reports to be made.condition and of the payment of dividends to the Federal reserve bank of which they become a member. Not less than three of such reports shall be made annually on call of the Federal reserve bank on dates to be fixed by the Federal Reserve Board.
Failure to make Penalty for failure.such reports within ten days after the date they are called for shall subject the offending bank to a penalty of $100 a day for each day that it fails to transmit such report; such penalty to be collected by the Federal reserve bank by suit or otherwise. “As a condition of membership such banks shall likewise be subject Examinations.to examinations made by direction of the Federal Reserve Board or of the Federal reserve bank by examiners selected or approved by the Federal Reserve Board.
“Whenever the directors of the Federal reserve bank shall approve Acceptance of State examinations.the examinations made by the State authorities, such examinations and the reports thereof may be accepted in lieu of examinations made by examiners selected or approved by the Federal Reserve Board: *Provided, however*, That when it deems it necessary the board may *Proviso*.Special examinations.order special examinations by examiners of its own selection and shall in all cases approve the form of the report.
The expenses of all examinations, other than those made by State authorities, shall be assessed against and paid by the banks examined. “If at any time it shall appear to the Federal Reserve Board that Rights, etc., forfeited on noncompliance with Jaw, etc.a member bank has failed to comply with the provisions of this section or the regulations of the Federal Reserve Board made pursuant thereto, it shall be within the power of the board after hearing to require such bank to surrender its stock in the Federal reserve bank and to forfeit all rights and privileges of membership.
The Restoration.Federal Reserve Board may restore membership upon due proof of compliance with the conditions imposed by this section. “Any State bank or trust company desiring to withdraw from Withdrawal from membership.Notice, etc.membership in a Federal reserve bank may do so, after six months ’ written notice shall have been filed with the Federal Reserve Board, upon the surrender and cancellation of all of its holdings of capital stock in the Federal reserve bank: *Provided, however*, That no Federal *Proviso*.Limitation on voluntary withdrawals.reserve bank shall, except under express authority of the Federal Reserve Board, cancel within the same calendar year more than 234twenty-five per centum of its capital stock for the purpose of effecting voluntary withdrawals during that year.
All such applications shall be dealt with in the order in which they are filed with the board. Refund of subscription on surrender of stock, etc.Whenever a member bank shall surrender its stock holdings in a Federal reserve bank, or shall be ordered to do so by the Federal Reserve Board, under authority of law, all of its rights and privileges as a member bank shall thereupon cease and determine, and after due provision has been made for any indebtedness due or to become due to the Federal reserve bank it shall be entitled to a Interest, etc., allowed.refund of its cash paid subscription with interest at the rate of one-half of one per centum per month from date of last dividend, if earned, the amount refunded in no event to exceed the book value of the stock at that time, and shall likewise be entitled to repayment of deposits and of any other balance due from the Federal reserve bank.
Capital required.“No applying bank shall be admitted to membership in a Federal reserve bank unless it possesses a paid-up, unimpaired capital sufficient to entitle it to become a national banking association in the place where it is situated under the provisions of the national-bank Act. Additional require ments.“Banks becoming members of the Federal Reserve System under authority of this section shall be subject to the provisions of this section and to those of this Act which relate specifically to member Examinations excepted.[R.
S., sec. 5240, p. 1013](/us/rs/s5240/p1013).Vol. 38, p. 271.banks, but shall not be subject to examination under the provisions of the first two paragraphs of section fifty-two hundred and forty of the Revised Statutes as amended by section twenty-one of this Act. Subject to the provisions of this Act and to the regulations of the Charter rights retained.board made pursuant thereto, any bank becoming a member of the Federal Reserve Systemi shall retain its full charter and statutory rights as a State bank or trust company, and may continue to exercise all corporate powers granted it by the State in which it was created, and shall be entitled to aU privileges of member banks: *Provisos*.Discounts for State banks, etc., by reserve banks limited.*Provided, however*, That no Federal reserve bank shall be permitted to discount for any State bank or trust company notes, drafts, or bills of exchange of any one borrower who is hable for borrowed money to such State bank or trust company in an amount greater than ten per centum of the capital and surplus of such State bank or trust company, but the discount of bills of exchange drawn against actually existing value and the discount of commercial or business paper actually owned by the person negotiating the same shall not be considered as borrowed money within the meaning of this section.
Guaranties required.The Federal reserve bank, as a condition of the discount of notes, drafts, and bills of exchange for such State bank or trust company, shall require a certificate or guaranty to the effect that the borrower is not liable to such bank in excess of the amount provided by this section, and will not be permitted to become fiable in excess of this amount while such notes, drafts, or bills of exchange are under discount with the Federal reserve bank. Certifying checks, unless equated by deposits, unlawful.“It shall be unlawful for any officer, clerk, or agent of any bank admitted to membership under authority of this section to certify any check drawn upon such bank unless the person or company drawing the check has on deposit therewith at the time such check is certified an amount of money equal to the amount specified in such Liability of issuing bank.check.
Any check so certified by duly authorized officers shall be a good and valid obligation against such bank, but the act of any such officer, clerk, or agent in violation of this section may subject such bank to a forfeiture of its membership in the Federal Reserve System upon hearing by the Federal Reserve Board.” " Sec. 4. Reserve banks.Vol. 39, p. 752, amended. That the first paragraph of section thirteen be further amended and reenacted so as to read as follows: 235 " “Any Federal reserve bank may receive from any of its member Deposits allowed in.banks, and from the United States, deposits of current funds in lawful money, national-bank notes, Federal reserve notes, or checks, and drafts, payable upon presentation, and also, for collection, maturing notes and bills; or, solely for purposes of exchange or of From other reserve banks solely, for collection, etc.collection, may receive from other Federal reserve banks deposits of current funds in lawful money, national-bank notes, or checks upon other Federal reserve banks, and checks and drafts, payable upon presentation within its district, and maturing notes and bills payable within its district; or, solely for the purposes of exchange From nonmember banks.or of collection, may receive from any nonmember bank or trust company deposits of current funds in lawful money, national-bank notes, Federal reserve notes, checks and drafts payable upon presentation, or maturing notes and bills: *Provided*, Such nonmember *Provisos*.Balances from nonmember banks.bank or trust company maintains with the Federal reserve bank of its district a balance sufficient to offset the items in transit held for its account by the Federal reserve bank: *Provided further*, That Collection charges not prohibited.nothing in this or any other section of this Act shall be construed as prohibiting a member or nonmember bank from making reasonable charges, to be determined and regulated by the Federal Reserve Board, but in no case to exceed 10 cents per $100 or fraction thereof, Limitation, etc.based on the total of checks and drafts presented at any one time, for collection or payment of checks and drafts and remission therefor by exchange or otherwise ; but no such charges shall be made against the Federal reserve banks.
” " Sec. 5. That the fifth paragraph of section thirteen be further Acceptances.Vol. 30, p. 752, amended.Foreign trade paper.amended and reenacted so as to read as follows: " “Any member bank may accept drafts or bills of exchange drawn upon it having not more than six months sight to run, exclusive of days of grace, which grow out of transactions involving the importation or exportation of goods; or which grow out of transactions Covering domestic shipments.involving the domestic shipment of goods provided shipping documents conveying or securing title are attached at the time of acceptance; or which are secured at the time of acceptance by a warehouse Secured by warehouse receipts.receipt or other such document conveying or securing title covering readily marketable staples.
No member bank shall accept, whether Limit to one person.in a foreign or domestic transaction, for any one person, company, firm, or corporation to an amount equal at any time in the aggregate to more than ten per centum of its paid-up and unimpaired capital stock and surplus, unless the bank is secured either by attached documents or by some other actual security growing out of the same transaction as the acceptance; and no bank shall accept such bills to an amount equal at any time in the aggregate to more than one-half of its paid-up and unimpaired capital stock and surplus: *Provided, however*, *Provisos*.Further increase, if authorized by Board.That the Federal Reserve Board, under such general regulations as it may prescribe, which shall apply to all banks alike regardless of the amount of capital stock and surplus, may authorize any member bank to accept such bills to an amount not exceeding at any time in the aggregate one hundred per centum of its paid-up and unimpaired capital stock and surplus: *Provided, further*, That Domestic transactions limited.the aggregate of acceptances growing out of domestic transactions shall in no event exceed fifty per centum of such capital stock and surplus.”Open-market operations.Vol. 39, p. 754, amended.
" Sec. 6. That section fourteen, subsection (e), be amended and reenacted so as to read as follows: " “(e) To establish accounts with other Federal reserve banks for Reserve banks.Accounts for exchange, and agencies abroad, allowed.exchange purposes and, with the consent or upon the order and direction of the Federal Reserve Board and under regulations to be prescribed by said board, to open and maintain accounts in foreign countries, appoint correspondents, and establish agencies in such 236countries wheresoever it may be deemed best for the purpose of purchasing, selling, and collecting bills of exchange, and to buy and sell, with or without its indorsement, through such correspondents or agencies, bills of exchange (or acceptances) arising out of actual commercial transactions which have not more than ninety days to Accounts for foreign correspondants.run, exclusive of days of grace, and which bear the signature of two or more responsible parties, and, with the consent of the Federal Reserve Board, to open and maintain banking accounts for such Transactions permitted for other reserve banks.foreign correspondents or agencies.
Whenever any such account has been opened or agency or correspondent has been appointed by a Federal reserve bank, with the consent of or under the order and direction of the Federal Reserve Board, any other Federal reserve bank may, with the consent and approval of the Federal Reserve Board, be permitted to carry on or conduct, through the Federal reserve bank opening such account or appointing such agency or correspondent, any transaction authorized by this section under rules and regulations to be prescribed by the board.
” " Sec. 7. Federal reserve notes. That section sixteen, paragraphs two, three, four, five, six, Applications for, by reserve banks.Vol. 38, p. 265.Vol. 39, p. 754, amended.and seven, be further amended and reenacted so as to read as follows: " “Any Federal reserve bank may make application to the local Federal reserve agent for such amount of the Federal reserve notes hereinbefore provided for as it may require. Such application shall be accompanied with a tender to the local Federal reserve agent of Collateral for.collateral in amount equal to the sum of the Federal reserve notes thus Classes of paper extended.applied for and issued pursuant to such application.
The collateral security thus offered small be notes, drafts, bills of exchange, or acceptances acquired under the provisions of section thirteen of this Act, or bills of exchange indorsed by a member bank of any Federal reserve district and purchased under the provisions of section fourteen of *Ante*, p. 235.Vol. 38, p. 264.this Act, or bankers’ acceptances purchased under the provisions of said section fourteen, or gold or gold certificates; but m no event shall such collateral security, whether gold, gold Daily notices of issues and withdrawals.certificates, or eligible paper, be less than the amount of Federal Additional security.reserve notes applied for.
The Federal reserve agent shall each day notify the Federal Reserve Board of all issues and withdrawals of Federal reserve notes to and by the Federal reserve bank to which he is accredited. The said Federal Reserve Board may at any time call upon a Federal reserve bank for additional security to protect the Federal reserve notes issued to it. Reserves for deposits and circulation.Vol. 38, p. 266, amended.“Every Federal reserve bank shall maintain reserves in gold or lawful money of not less than thirty-five per centum against its deposits and reserves in gold of not less than forty per centum against *Proviso*.Gold collateral with reserve agents included in.its Federal reserve notes in actual circulation: *Provided, however*, That when the Federal reserve agent holds gold or gold certificates as collateral for Federal reserve notes issued to the bank such gold or gold certificates shall be counted as part of the gold reserve which such bank is required to maintain against its Federal reserve notes Designation of notes.in actual circulation.
Notes so paid out shall bear upon their faces a Received by another to be returned to issuing bank or the Treasurer.distinctive letter and serial number which shall be assigned by the Federal Reserve Board to each Federal reserve bank. Whenever Federal reserve notes issued through one Federal reserve bank shall be received by another Federal reserve bank, they shall be promptly returned for credit or redemption to the Federal Penalty for other use.reserve bank through which they were originally issued or, upon direction of such Federal reserve bank, they shall be forwarded direct to the Treasurer of the United States to be retired.
No Federal reserve bank shall pay out Redemption at the Treasury.notes issued through another under penalty of a tax of ten per centum upon the face value of notes so paid out. Notes presented for redemption at the Treasury of the United States shall be paid out of the redemption fund and returned to the Federal reserve banks 237through which they were originally issued, and thereupon such Fed eral reserve bank shall, upon demand of the Secretary of the Treasury, reimburse such redemption fund in lawful money or, if such Federal Reimbursement by issuing bank.reserve notes have been redeemed by the Treasurer in gold or gold certificates, then such funds shall be reimbursed to the extent deemed necessary by the Secretary of the Treasury in gold or gold certificates, and such Federal reserve bank shall, so long as any of its Federal Gold reserve to be kept.reserve notes remain outstanding, maintain with the Treasurer in gold an amount sufficient in the judgment of the Secretary to provide for all redemptions to be made by the Treasurer.
Federal reserve notes Exchange, etc., it not redeemed.received by the Treasurer otherwise than for redemption may be exchanged for gold out of the redemption fund hereinafter provided and returned to the reserve bank through which they were originally issued, or they may be returned to such bank for the credit of the United States. Federal reserve notes unfit for circulation shall be Destruction of unfit notes.returned by the Federal reserve agents to the Comptroller of the Currency for cancellation and destraction.
“The Federal Reserve Board shall require each Federal reserve bank Gold redemption fund in the Treasury.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 Included in circulation reserve.counted and included as part of the forty per centum reserve hereinbefore required.
The board shall have the right, acting through the Board to control issue.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 applving, and such bank shall be charged with the amount of notes issued to it and shall pay Interest payment limited.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 Lien for notes issued.Vol. 38, p. 268.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 all the assets of such bank. “Any Federal reserve bank may at any time reduce its liability for Reduction of reserve liability.Vol. 38, p. 267.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 Reserve agent’s duties.Vol. 38, p. 267, amended.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 Transfer of gold to Treasurer.Federal Reserve Board shall require the Federal reserve agent to transmit to the Treasurer of the United States 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 Security as collateral retained.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 Exchange of collateral.Vol. 3 8, p. 2 6 7, amended.deposited with the local Federal reserve agent for the protection of its Federal reserve notes issued to it and shall at the same time 238substitute therefor other collateral of equal amount with the approval of the Federal reserve agent under regulations to be prescribed by Deposit for retirement.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, anil such Return of collateral.Federal reserve bank shall thereupon be entitled to receive 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 Reissue restricted.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.” Notes and gold deposits.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 hold for such agent, under such rules and regulations as the Federal Reserve Joint custody of reserve agent and Board.Board may prescribe, in the joint custody of himself and the Federal reserve bank to which he is accredited.
Such agent and such Federal Liability.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 Deposits of gold with Board or Treasurer.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.
" Sec. 8. Gold deposits.Vol. 38, p. 268, amended.Allowed with Treasurer from reserve banks or agents. That section sixteen be further amended by adding at the end of the section the following: " “That the Secretary of the Treasury is hereby authorized and directed to receive deposits of gold coin or of gold certificates with the Treasurer or any assistant treasurer of the United States when tendered by any Federal reserve bank or Federal reserve agent for Receipts.credit to its or his account with the Federal Reserve Board.
The Secretary shall prescribe by regulation the form of receipt to be issued by the Treasurer or Assistant Treasurer to the Federal reserve bank or Federal reserve agent making the deposit, and a duplicate of such receipt shall be delivered to the Federal Reserve Board by the Treasurer at Washington upon proper advices from any assistant treasurer Payments therefor.that such deposit has been made. Deposits so made shall be held subject to the orders of the Federal Reserve Board and shall be payable in gold coin or gold certificates on the order of the Federal Reserve Board to any Federal reserve bank or Federal reserve agent at the Treasury or at the Subtreasury of the United States nearest the place of business of such Federal reserve bank or such Federal reserve Proviso.Expenses of shipping.agent: *Provided, however*, That any expense incurred in shipping gold to or from the Treasury or Subtreasuries in order to make such payments, or as a result of making such payments, shall be paid by the Federal Reserve Board and assessed against the Federal reserve banks.
Orders for payment.The order used by the Federal Reserve Board in making such payments shall be signed by the governor or vice governor, or such other officers or members as the board may by regulation prescribe. The form of such order shall be approved by the Secretary of the Treasury. Assessment of expenses.“The expenses necessarily incurred in carrying out these provisions, including the cost of the certificates or receipts issued for deposits received, and all expenses incident to the handling of such deposits shall be paid by the Federal Reserve Board and included in its assessments against the several Federal reserve banks.
Acceptance as reserves.“Gold deposits standing to the credit of any Federal reserve bank with the Federal Reserve Board shall, at the option of said bank, be counted as part of the lawful reserve which it is required to maintain 239against outstanding Federal reserve notes, or as a part of the reserve it is required to maintain against deposits. “Nothing in this section shall be construed as amending section Gold certificate deposits not affected.Vol. 31, p. 47; Vol. 34, p. 1289;
Vol. 36, p. 965.Vol. 39, p. 225.six of the Act of March fourteenth, nineteen hundred, as amended by the Acts of March fourth, nineteen hundred and seven, March second, nineteen hundred and eleven, and June twelfth, nineteen hundred and sixteen, nor shall the provisions of this section be construed to apply to the deposits made or to the receipts or certificates issued under those Acts.” " Sec. 9. That section seventeen be amended and reenacted so as to National banks.Vol. 38, p. 268, amended.Deposit of registered bonds by, repealed.[R.
S., Sec. 5159, p. 997; amended](/us/rs/s5159/p997).Vol. 18, p. 124; Vol. 22, p. 164.Vol . 38, p. 268, amended.read as follows: " “Sec. 17. So much of the provisions of section fifty-one hundred and fifty-nine of the Revised Statutes of the United States, and section four of the Act of June twentieth, eighteen hundred and seventy-four, and section eight of the Act of July twelfth, eighteen hundred and eighty-two, and of any other provisions of existing statutes as require that before any national banking association shall be authorized to commence banking business it shall transfer and deliver to the Treasurer of the United States a stated amount of United States registered bonds, and so much of those provisions or Maintenance of, not required.of any other provisions of existing statutes as require any national banking association now or hereafter organized to maintain a minimum deposit of such bonds with the Treasurer is hereby repealed.
” " Sec. 10. That section nineteen be further amended and reenacted Reserves for deposits.Vol. 38, pp. 270, 691, amended.so as to read as follows: " “Sec. 19. Demand deposits within the meaning of this Act shall Demand and time deposits construed.comprise all deposits payable within thirty days, and time deposits shall comprise all deposits payable after thirty days, all savings accounts and certificates of deposit which are subject to not less than thirty days’ notice before payment, and all postal savings Postal savings added.deposits.
“Every bank, banking association, or trust company which is or Balances to be kept by member in reserve bank.which becomes a member of any Federal reserve bank shall establish and maintain reserve balances with its Federal reserve bank as follows: “(a) If not in a reserve or central reserve city, as now or hereafter If not in reserve or central reserve city.defined, it shall hold and maintain with the Federal reserve bank of its district an actual net balance equal to not less than seven per centum of the aggregate amount of its demand deposits and three per centum of its time deposits.
“(b) If in a reserve city, as now or hereafter defined, it shall hold In reserve city.*Post*, p. 970.and maintain with the Federal reserve bank of its district an actual net balance equal to not less than ten per centum of the aggregate amount of its demand deposits and three per centum of its time deposits. “(c) If in a central reserve city, as now or hereafter defined, it In central reserve city.*Post*, p. 970.shall hold and maintain with the Federal reserve bank of its district an actual net balance equal to not less than thirteen per centum of the aggregate amount of its demand deposits and three per centum of its time deposits.
“No member bank shall keep on deposit with any State bank or Amount allowed in nonmember banks, etc.trust company which is not a member bank a sum in excess of ten per centum of its own paid-up capital and surplus. No member Discounts for non member banks restricted.bank shall act as the medium or agent of a nonmember bank in applying for or receiving discounts from a Federal reserve bank under the provisions of this Act, except by permission of the Federal Reserve Board. “The required balance carried by a member bank with a Federal Use of balance in reserve bank.reserve bank may, under the regulations and subject to such penalties as may be prescribed by the Federal Reserve Board, be checked against and withdrawn by such member bank for the purpose of 240*Proviso*.New loans, etc., restricted.meeting existing liabilities: *Provided, however*, That no bank shall at any time make now loans or shall pay any dividends unless and until the total balance required by law is fully restored.
Basis of reserve balances.“In estimating the balances required by this Act, the net difference of amounts due to and from other banks shall be taken as the basis for ascertaining the deposits against which required balances with Federal reserve banks snail be determined. Alaska, insular, etc., banks.Status permitted.“National banks, or banks organized under local laws, located in Alaska or in a dependency or insular possession or any part of the United States outside the continental United States may remain nonmember banks, and shall in that event maintain reserves and comply with all the conditions now provided by law regulating them; or said banks may, with the consent of the Reserve Board, become member banks of any one of the reserve districts, and shall in that event take stock, maintain reserves, and be subject to all the other provisions of this Act” " Sec. 11.
Restriction on receiving fees, etc., by member bank officials.Vol. 38, p. 272, amended. That that part of section twenty-two which reads as follows: “Other than the usual salary or director’s fees paid to any officer, director, or employee of a member bank and other than a reasonable fee paid by said bank to such officer, director, or employee for service rendered to such bank, no officer, director, employee, or attorney of a member bank shall be a beneficiary of or receive, directly or indirectly, any fee, commission, gift, or other consideration for or in connection with any transaction or business of the bank. ” be amended and reenacted so as to read as follows:
" Receiving fees, etc., by officials restricted.Attorneys added.“Other than the usual salary or director’s fee paid to any officer, director, employee, or attorney of a member bank, and other than a reasonable fee paid by said bank to such officer, director, employee, or attorney for services rendered to such bank, no officer, director, employee, or attorney of a member bank shall be a beneficiary of or receive, directly or indirectly, any fee, commission, gift, or other consideration for or in connection with any transaction or business *Provisos*.Interest on deposits not prohibited.of the bank: *Provided, however*, That nothing in this Act contained shall be construed to prohibit a director, officer, employee, or attorney from receiving the same rate of interest paid to other depositors for similar deposits made with such bank: *And provided further*, Discounts allowed.That notes, drafts, bills of exchange, or other evidences of debt executed or indorsed by directors or attorneys of a member bank may be discounted with such member bank on the same terms and conditions as other notes, drafts, bills of exchange, or evidences of debt Condition.upon the affirmative vote or written assent of at least a majority of the members of the board of directors of such member bank.
” " Approved, June 21, 1917.