Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-17
Equality for All Banks.

not at any time exceed the aggregate
capital and surplus of the banks forming
the guaranteeing association.
Equality for All Banks.
All of the privileges and advantages
Of the Reserve Association shall be
equitably extended to every national
bank of any of the classes herein de-
faned who shall subscribe to it's proper
ton OF the stock Of the Reserve AS
ISOLATION and shall otherwise conform
to the requirements of this act
The government Of the United States
and those national banks owning stock
in the Reserve Association shall be
the sole depositors in the Reserve AS
ISOLATION. All domestic transactions
sna the banks with the
exception Of the purchase or sale of
government or state securities or se-
curities Of foreign governments or of
The government of the United States
shall deposit it's cash balance with the
Reserve Association and thereafter all
receipts Of the government shall be
deposited with the Reserve Associa-
ton or (when necessary with such
national banks as the government may
designate for that purpose in cities
where there is no branch Of the Re-
serve, Association. All disbursements
through the Reserve Association.
The Reserve Association shall pay no
interest on deposits.
The Reserve Association may redis-
count notes and bills Of exchange aris-
ing out of commercial transactions for
and with the Endorsement Of any bank
having "a deposit with 1T. Such notes
and bills must have a maturity OF not
have been made at least thirty days
prior to the date of rediscount. The
amount SO rediscounted shall In no case
exceed the capital Of the bank apply
Of such notes and bills bearing the Sig
nature or Endorsement Of any one per-
son, company. corporation or hrm, re-
discounted for any one bank, shall at
no time exceed 10 per cent of the CAPT.
tai and surplus Of said bank.
Rediscounting Of Notes.
The Reserve Association may also re-
discount for any depositing bank notes
and bills of exchange arising out Of COM
rfiercial transactions having more than
twenty-eizht days but not exceeding four
months to run, but in such cases the
paper must be guaranteed by the local
association Of which the bank asking
for the rediscount Is member.
Whenever, In the opinion of the gov
ernor of the Reserve Association. the
public interests SO require. such opinion
to be concurred in by the executive COM
mittee Of the Reserve Association ana
to have the definite approval OF the Sec
rotary OF the Treasury. the Reserve AS
sociation may discount the direct obi
CATION of a depositing bank. Endorsed by
its local association, provided that the
Endorsement of the local association shall
be fully secured by the pledge and de-
post with 1t Of satisfactory securities.
which shall be held by the local assoc
citation for account of the Reserve AS
ISOLATION; but In no such case shall the
amount loaned by the Reserve Assocta-
ton exceed 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 executive
committee and duly published.
The Reserve Association may, "nen-
ever its own condition and the general
financial conditions warrant such invest
ment. purchase to a limited amount from
a depositing bank acceptances OF banks
or houses of vi questioned financial re-
sponsibility Such acceptances must
arise from commercial transactions ana
have a maturity not exceeding ninety
days, and must be Of character gen.
orally known In the market as prime bt!lo-
Such acceptances shall also bear the ~.