The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-06-19
I|1i1 - S.is1s s,1sosvs6 sooasr hy@sns


d Evsrr fsdsraf reserve bank ii 10 be
ar9nussAd and conducted under the
4 Sv2rsieht and control OF = board OF
61pecfora, Whose powers shall De the
& sSsnA - those conferred upon direc-
Snaer existing law. There are TO be
n1nN nf fhese directors for each fed
"a Ifsl reserve hank. and thy are 70 held
s(Sce fff three years Three OF these
airrtors are 10 be chosen and are TO
4 Sc Representative of the stockholding
hanks. three shall be fairly repre-
n sentative of the commercial, agricul-
fnfai and industrial interests of the
hlssrict.- and three members shall be
designated by the federal reserve
board.
The chairman Of the board OF direc-
TORS OF each federal reserve bank will
~ removable at the pleasure OF the
federal reserv board without notice.
Section s Of the hill prohibits the
transfer or hypothecation Of any
shares Of the capital stock Of the fed
rraf reserve banks
Any bank or banking association IN
rorporatpi by any State having sufii-
Gent uni,npaired capital may become
L national banking association.
Choice of Representatives.
The directors Of each federal re-
FOR the selection OF the representa-
ftvee OF the reserve bank in the fed
srs1 reserve board. The said cleo
tors shall upon call Of the secretary
a ~ the treasury, choose by ballot the
three members Of the federal reserve
board
Trhe frss meeting Of the federal re-
serve board shall be held in Wash
inrrnn Immediately after The organi-
ration of federal banks. No member
az The board shall have any banking
ronnectfars The secretary of the
.-r.-,,~y is 20 be chairman of the
federal reserve board. The Office OF
comptroller NJ the currency 3s con-
tirued
Section 5 permits any federal re-
serve bank to receive from any or
It's stockholders deposits OF current
funds in lawful money, national bank
notes. federal reserve notes. or checks
and drafts upon solvent banks, do
mestic or foreign.
Under section Is any federal re-
serve hank may under regulations
prescribed by the federal reserve
heard purchase in the open market
bankers bills and bills of exchange
OF the kinds and maturities made
eligible for re-diseount
Under section 9G all moneys in the
general fund Of the treasury shall he
deposited in federal reserve banks.
which shall act as fiscal agents Of.
the United States
Section II of the bill authorized the
toTing Of federal reserve treasury
Hcte& not TO exceed $500. 10000 plus
m amount equal 10 the amount of
national bank notes, which may from
tfrne 10 time he retired under the
provisions of the act.
r.
any time reduce SITS liabilities for out
Standing reserve federal notes by the
deposit Of federal reserve notes
whether issued to such bank or to
euYne other member bank, other law
EiI money of the United States ~
gold bullion and such reduction shall
be accompanied by "a corresponding
reduction In the reserve fund of law
full money set apart for the redemp-
Hon OF said notes. and by the release
III corresponding amount of tho
collateral security deposited with the
Aocal federal reserve agent.
Ia Circulation of Notes.
N Section rs provides that no national
Marking association shall receive or
eHne circulating notes in excess or the
4etal amount of such notes which such
hank may have outstanding at the time
~ passage of the act
Section IL provides for the repeal or
she law requiring national banking
associations before commencing bank
Ing ensiness 70 deliver 20 the treasurer
M the United States certain amounts
~ United States registered bonds.
e efction no of the bin provides for the
8h9 United States bearing n ctrcula-
Nh privilege for three per cent bonds
Mfxxhe United States without the cir
NATION privilege.
n "a the expiration OF twenty years
ry ,wo per cent bond then oufstand-
eeut bonds Of like denomination with
cut the circulation privilege and all
NATIONAL bank notes then outstanding
ahHi be recalled and redeemed by the
national bank that issued the same.
After the date fxed by the secre-
tAfy of-the treasury national banks in
rAserye cities shall maintain for a
standing deposit. and for twelve
mofths thereafter reserve of twenty
TIVE and a hsif per cent. and at the
end OF thirty eight months and per
nsanently thereafter reserve OF
twenty per cent OF their outstanding
Section IS requires every federal re-
FerSe bank at all times TO have on
f nand n seid Or lawful money no, less
ing demand liabilities which at The
same time shall not be less than SO 3
per cent OF tts- outstanding federal re-
Other Sections.
Section ~ requires an examine tion
VI FNSFS bAttOHAi p6iktnk association
~ least twice In each calendar year
section rs forbids any loan or krant
Ct any gratutty TO any examiner. A
6ne liz provided for any violation. No
n4icer or director OF any national bank
shall receive any consideration for any
uaneaction made by. or in behalf OF
0nicer, or director. The penalty for
violation Of this provision liz "A fine not
" exceed $4,000 by three years In
Prison. or both.
Section rs makes stockholders OF
every banking association Individuals
feaponsible for al contracts. debts, and
engagements OF such association each
to the amount of his stock therein
Section u, the final section. provides
that all laws inconsistent with the pro
visions OF this act are repealed