The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1911-01-17

be made through the reserve associa-
ton.
The reserve association shall pay no
interest on deposits.
The reserve association may re-dis-
count notes and bills of exchange aris-
ing out of commercial transactions,
for. and with the Endorsement of any
bank having deposit with it, Such
notes and bills must have a maturity
of not more than % days. and must
have been made at least 80 days prior
to the date of rediscount. The amount
so re-discounted shall in no case ex-
coed the capital of a bank applying
for the re-discount
Making Loans.
Whenever, in the opinion of the
governor of the reserve association,
public interest so requires, such opin-
ion to be concurred in by the execu-
tive committee of the reserve associa-
ton, and to have the definite approval
of the secretary of the treasury, the
reserve association may discount the
direct obligation of a depositing bank,
lndorsed by its local association, pro-
vided that the Endorsement of the local
association shall be. fully secured by
the pledge and deposit with it of sat
isfactory securities which shall be
held by the local association for ac-
count of the reserve association; but
in no such case shall the amount
loaned by the reserve association ex-
coed two-thirds of the actual value
of the securities so pledged
The rate of discount of the reserve
association. which shall be uniform
throughout the United States. shall be
fixed from time to time by the execu-
tive committee and duly published.
The reserve association may, when
ever its own condition and the gem
eral financial conditions warrant such
investment purchase to a limited
from a dannCifinO
ceptances of banks or houses of I'M
questioned financial responsibility.
Such acceptances must arise from
commercial transactions and have a
maturity not exceeding 90 days. and
must be of "a character generally
known in the market as prime bills.
Such acceptances shall also bear the
Endorsement of the depositing bank
selling the same. which Endorsement
must be other than that of the ac-
ceptor.
The reserve association may invest
in United States bonds and in short
term obligations-that is, obligations
having not more than one year to run
of the United States. or of any state.
or of certain foreign governments to
be named in the act.
The reserve association shall have
power at home and abroad to deal in
gold coin or bullion, to grant loans
thereon, and to contract for loans of
gold coin or bullion, giving. when nee
essary, acceptable, security for their
repayment.
Foreign Business.
The reserve association shall have
power to open and maintain banking
accounts in foreign countries and to
establish agencies in foreign countries,
for the purpose of purchasing and
selling and collecting foreign bills of
exchange, and it shall have authority
to buy and sell, through such agencies,
prime foreign bills of exchange arts
ing from commercial transactions,
running for period not exceeding 80
days and bearing the signatures of two
or more responsible parties.
There shall be established a new
class of national banks, to be known
by a specifically designated name.
Such banks may have savings depart
ments and may make properly secured
loans on real estate; such loans to be
restricted to a certain proportion Of
the aggregate time and savings de-
poSits in the bank. The reserve re-
quirements in such=banks will be less
against savings and time deposits than
against demand deposits.
Another class of national banks shall
be authorized. which shall be in effect
national trust companies, to be desig-
mated by some appropriate name and
to exercise all the functions and have
all the privileges, including length of
charter, which are given to trust COM
panies by the laws of the various
states.
These national institutions shall be
subject, like other national banks, to
inspection and examination by the ma
tional government.
There shall be no change in the per-
centage Of reserve required by law to
be held against demand deposits by
national banks, except as otherwise
provided herein, but the deposit bal
nP n
serve association shall be counted as a
part of it's legal reserve.
The reserve association shall make a
report, showing the principal items OF
its balance sheet, to the comptroller
of the currency once a week. These
reports shall be made public In addl-
ton, full reports shall be made to the
comptroller of the currency coincident
with the five reports called for each
year from the national banks.
Weekly Reports.
National banks of all classes shall
hereafter make a weekly report to the
comptroller of the currency, showing
the principal items of their balance
sheets, such reports to be available for
the use of the executive officers of the
reserve association.
There is hereafter to be no further
issue, beyond the amount now out
standing. of bank notes by national
banks. National banks may, If they
choose, maintain their present note
ISSUE but whenever a bank retires the
whole or any part of its existing issue,
it will permanently surrender its right.
to reissue the notes so retired.
The reserve association must, for
period of one year, offer to purchase
Cat a price not less than par and &C
crued interest) the 2 per cent bonds
now held by national banks and de-
posted to secure their circulating
notes The reserve association shall
take over these bonds with the exist
ing currency privilege attached and
assume responsibility for the redemp-
ton (upon presentation) of outstand-
ing notes secured thereby. The re-
serve association shall issue, on the
terms herein provided. its own notes