Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1913-11-20

uccHl Unnecessary. aslrr
| ID To permit or require, in time
OF emergency, federal reserve banks
to rediscount the discounted prime
paper of other federal reserve banks.
&C. To suspend for period not ex-
cceding thirty days land to renew such
suspension for periods not to exceed
fifteen days. any and every reserve re-
Guirements specified in this act,
(dD To supervise and regulate the
issue and retirement of federal re-
serve notes and to prescribe the form
and tenor of such notes.
(e) To add to the number of cities
classified as reserve and central re-
serve cities under existing law.
(f) To suspend the officials of federal
reserve banks and, for cause stated in
writing with opportunity OF hearing.
require the removal of said officials.
(g) To suspend for cause relating to
violation of the provisions of this act,
the operations Of any federal reserve
bank and appoint receiver therefor.
Create Federal Advisory Council.
There Is created federal advisory
council composed of one member from
each reserve district which shall con.
fer with the federal reserve board and
make recommendations In regard to
discount rates, notes issued and other
business.
eral reserve bank may receive from
any member bank deposits of current
funds In lawful money, national bank
notes, federal reserve notes, or checks
and drafts upon solvent banks, pay
able upon presentation; or solely for
exchange purposes, may receive from
other federal reserve banks deposits
OF current funds in lawful money, ma
tional bank notes, or checks and drafts
upon solvent banks, payable upon pre-
sentation.
Upon the Endorsement Of any mem
Der bank any federal reserve bank
may discount notes and bills of ex-
change arising out of commercial tran
sactions; that is, notes and bills Of ex-
change issued or drawn for agricultur
al, industrial, or commercial purposes,
or the proceeds of which have been
used, or may be used, for such purpos-
es, the federal reserve board to have
the right to determine or define the
character Of the paper thus eligible for
act; nothing herein contained shall be
construed to eprohibit such notes and
bills of exchange, secured by staple
agricultural products, or other goods,
wares, or merchandise from being ell
igible for such discount; but such de-
flnition shall not include notes or bills
issued or drawn for the purpose of
carrying or trading In stocks, bonds,
or other investment securities. Notes
and bills admitted to discol it under
the terms of this paragraph must have
a maturity of not more than ninety
days. :
Upon the Endorsement of any mem
Der bank any federal reserve bank
may discount the paper of the classes
hereinbefore described having matur-
ity Of more than ninety and not more
than one hundred and twenty days,
when its own cash reserve exceeds
thirty-three and one-third per cent OF
its total outstanding demand liabilities
exclusive of its outstanding federal re-
by the federal reserve board; but not
more than fifty per cent OF the total
paper so discounted for any member
bank shall have maturity of more
than ninety days.
Upon the Endorsement of any mem
Der bank any federal reserve bank may
discount acceptances of such banks
which are based on the expectation or
importation of goods and which ma
ture in not more than six months and
bear the signature Of at least one men,
Der bank in addition to that of &C
ceptor. The amount so discounted
shall at no time exceed one-half the
capital stock Of the bank for which the
rediscounts are made.
The aggregate of such notes and
bills bearing the signature or indorse-
ment of any one person, company,
firm, or corporation rediscounted for
any one bank shall at no time exceed
ten per centum of the unimpaired cap
ital and surplus of said bank; but this
restriction shall not apply to the dis
count Of bills Of exchange drawn in
good faith against actually existing
values.
Open Market Operations.
Sec l5 That any federal reserve bank
may, under rules and regulations pre-.
scribed by the federal reserve board,
purchase and sell in the open market,
either from or to domestic or foreign
banks, firms. corporations or individu-
ais. prime bankers bills, and bills Of
exchange of the kinds and maturities
by this act made eligible forrediscount
and cable transfers.
Every federal reserve bank shall
have power (a) to deal in gold coin
and bullion both at home and abroad,
to make loans thereon, and to contract
for loans OF, gold or bullion, giving
therefor. when necessary, acceptable
security, including the hypothecation
of United States bonds; (b) to invest
in United States bonds, and bonds is
sued by any state, county, district, or
municipality; (c) to purchase from
member banks and to sell, with or
without its Endorsement, bills of ex-
change arising out of commercial tran
sactions, as hereinbefore defined. pay
able in foreign countries; (d) to estab-
lish each week, or as much oftener as
required, subject to review and deter
mination Of the federal reserve board,
rate Of discount to be charged by
such bank for each class Of paper,
which shall he f1xed with a view Of ar