ASK KEVIN SERIES  48 Stat 340, Federal Reserve Notes in Exchange for Promissory Notes
Channel: RedressRight
Date: 2023-03-23

The Federal Reserve Act from the Statutes at Large, Volume 48, page 340:

"Any Federal Reserve bank may make application to the local Federal Reserve agent for such amounts 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 in amount equal to the sum of the Federal Reserve notes thus applied for and issued pursuant to such application. The collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under the provisions of this Act, or bills of exchange indorsed by a member bank of any Federal Reserve district and purchased under the provisions of section thirteen of this Act, or bankers' acceptances purchased under the provisions of said section thirteen, or United States certificates of indebtedness, or other such obligations as the Federal Reserve Board may approve. The Federal Reserve agent shall thereupon issue to such bank the Federal Reserve notes thus applied for and the amount of the collateral security so deposited, less the charges provided by law for issuing the same. The notes so issued shall be obligations of the Federal Reserve bank and shall be redeemable in gold or lawful money at the discretion of the Federal Reserve Board."

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