Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-01-17
May Buy Short-Term Bonds.


May Buy short-Term Bonds.
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
able security for their repayment.
The Reserve Association shall have
power to purchase from it's depositors
and to sell, with or without it's indorse-
In England, France or Germany, and In
such other foreign countries as the board
Of the Reserve Association may decide.
These bills of exchange must arise from
commercial transactions, and be of a ma
turity not exceeding ninety days, and
shall bear the signatures of at least three
responsible parties, OF which the last one
shall be that Of a depositing bank.
The Reserve Association shall have
power to open and maintain banking ac-
counts in foreign countries, and to estab-
fish agencies in foreign countries, for the
purpose of purchasing and selling and
collecting foreign bills OF exchange, and
1t shall have authority to buy and sell,
through such agencies. prime foreign bills
Of exchange arising from commercial
transactions. running for period not
exceeding ninety days and bearing the
signatures of two or more responsible
parties.
Transfer Of Deposits.
1t shall be the duty of the Reserve AS
ISOLATION or any of its branches. upon re-
quest, to transfer any part of the deposit
balance Of any national bank having an
account with 1t to the credit Of any other
bank having an account with the Re-
serve Association. If a deposit balance
is transferred from the books of one
branch, it may be done by mail or tele-
graph upon terms to be fixed from time
to time by the executive committee.
In addition to the rights now conferred
by law. national banks shall be author
ICED to accept commercial paper drawn
upon them, having not more than ninety
days to run. properly secured, ana ans
ing out Of commercial TRANSACTIONS. Inc
amount OF such acceptances shall not ex-
coed One-half the capital and surplus OF
the accepting bank.
National banks shall not have authority
to establish branches except In the city or
town in which they are located.
The organization of banks to conduct
business in foreign countries shall be au-
thorized. The stock of such banks may
be held by national banks. The bank SO
organised may have an office In the
United States. but shall not compete with
national banks for domestic business not
necessarily related to the business being
done In foreign countries.
New National Bank Functions.
There shall be established new class
OF national banks to be known by q
specifically designated name. Such banks
may have savings departments and may
make properly secured loans on real es-
tate; such loans to be restricted to Ger
tain proportion of the aggregate time and
savings deposits in the bank. The re-
serve requirement 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 designated
by ssome appropriate name, and to ex-
ercise all the functions and have all the
privileges, including length OF charter,
which are given to trust companies by
the laws Of the various states. These
national institutions shall be subject, like
other national banks. to inspection and
examination by the national government.
There shall be no change in the per-
centa1e of reserve required by law to be
held against demand deposits by national
banks. except as otherwise provided here
in. but the deposit balance Of any ma
tional hank in the Reserve Association