Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1913-06-27

various restrictions are imposed In
reference to the extent of the loaning
power Of a federal reserve bank.
All moneys now held in the general
fund of the treasury will be deposited
In federal reserve banks, which shall
act as fiscal agents of the government.
All revenues Of the government shall
be deposited in such banks and dis
bursements drawn against such de-
posits.
The federal reserve banks may be re-
CURED to pay interest on government
deposits, but shall not pay interest on
any other.
The government and state banks de-
posting in the federal reserve banks
shall be the only depositors in the re-
serve banks.
Division of Treasury Notes.
Any federal reserve bank may make
application to the federal reserve
board for such amount of treasury
notes as it may desire, such applica-
ton to be accompanied with an offer
of collateral security to protect the
notes, equal in amount to the sum APP
piled for.
Whenever any federal reserve bank
shall disburse federal reserve trasury
notes, it must hold in it's own vaults
gold or lawful money equal in amount
to 33 1-3 per cent. of the treasury notes
SO paid out by 1t.
Federal reserve banks may be re-
quired to deposit in the treasury a
sum In gold or lawful money equal
to 5 per cent. of whatever amount Of
federal reserve treasury notes issued
to 1t.
Exchange of collateral put up for
notes is provided for.
Service as Clearing House.
The federal reserve board may act
as a clearing house for federal reserve
banks, and may also require each such
bank to exercise the functions of a
clearing house for it's shareholding
banks.
Provision is made for the reduction
and wiping out of liability by federal
reserve banks.
Demand for Bank Reserves.
Within 60 days after the establish
ment of a federal reserve bank every
national banking association shall es-
tablish with the federal reserve bank
of it's district a credit balance on the
books of the latter institution equal to
not less than three per cent. of it's
own total demand liabilities, exclusive
of circulating notes, and at the end OF
IA months this amount shall be in
creased to five per cent.
National banking associations clas-
sifed as country banks and situated
outside of central reserve and reserve
cities must maintain a reserve equal
to Is per cent. of the aggregate
amount of their deposits. National
banks in reserve cities must maintain
a reserve of 25 per cent. of their out
standing deposits for &c months after
the passage of the bill and for IL
months thereafter 221a per cent. and
at the end of 50 months permanently
a reserve of 20 per cent. of their stand
ing deposits.
Every federal reserve bank must at
all times have In it's vaults in gold or
lawful money a sum equal to not less
han SO 13 per cent. of its outstand-
ing demand liabilities.
Drastic Examination Provided.
Drastic and frequent examination of
national banking associations are pro-
vided for.
Each federal reserve bank is author
lied to arrange for the examination
Of member banks within it's district.
Any national bank making a loan or
gratulty to an examiner Is subject to
a fine Of 81, 900 and the officer or Off
GERS Of the bank authorizing it to an
additional fine of $500. Any examiner
accepting the loan or gratu!ty is fined
$500 and disqualified from office.
No officer or director of a national
bank may be a beneficiary OF any
transaction made on behalf of his
bank. Should he violate this provi-
sion he will be punished by a fine OF
not less than $4,000 or by q peniten-
tiary sentence of three years, or both.
Responsibility on Persons.
The stockholders of every national
banking association will be held in
dividually responsible for all obliga-
tons of such association.
Any national banking association
not situated in a reserve city may
make farm loans, equal to Is per cent.
OIL us Cdplldl anu Sul plus VI " pel
cent. of it's time deposits.
Any national banking association
capitalized at 100000 or more may,
through the federal reserve board, es'
tablish branches in foreign countries.
1t prescribes that the short title OF
the act shall be the federal reserve
act" The second section which re
lates to federal reserve districts" re
quires that within 60 days after pass.
age of the bill the secretary of the
treasury, the attorney general, and the
controller of the, currency, acting as
a reserve bank organization commit
tee, shall designate from among the
reserve the cities now authorized by
law a number of such cities, not less
than IL to be known as federal reserv.
cities, and shall divide the continen.
tai United States into districts, each
district to contain one of such federal
reserve cities.