Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-12-27

meaning Of this act Nothing in this
act contained shall be construed to
prohibit such notes, drafts and bills of
exchange secured by staple agricul-
tural products or other goods, wares
OK merchandise from being eligible for
such discount, but such definition shall
not include notes, drafts or bills COW
ering merely Investments or issued or
drawn for the purpose Of carrying or
trading In. stocks. bonds or other in
vestment securities except bonds and
notes Of the government Of the United
States. Notes. drafts and bills admit
ted to discount under the terms Of this
paragraph must have maturity at
the time of discount Of not more than
ninety days. provided that notes.
drafts and bills drawn or issued for
agricultural purposes or based on live
stock and having maturity not ex-
ceeding six months may be discounted
in an amount to be limited to per-
centage Of the capital Of the federal
reserve bank, to be ascertafned and
fixed by the federal reserve board.
Dissenting Aeesptanees.
Any federal reserve bank may dis
count acceptances which are based on
the importation or expectation or do
c.esttc shipment Of goods and which
have a maturity at time of discount OF
not more than three months and in
dorsed by at least one member bank.
The amount of acceptances so dis
counted shall at no time exceed one
half the paid up capital stock and sur
plus of the bank for which the re-
discounts are made.
The aggregate Of such notes and
bills bearing the signature or tndorse-
ment Of any one person, company or
firm or corporation rediscounted for
any one bank shall at no time exceed
10 per centum Of the unimpaired CAPT.
tai 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. &
or bills Of exchange drawn upon it
and growing out of transactions in
volving the Importation or expectation
Of goods having not more than six
months sight to run, but no bank shall
accept such bills to an amount equal
at any time in the aggregate to more
than one-half of its paid up capital
stock and surplus.
Open Market Operations.
Sec. IA. Any federal reserve bank
may. under rules and regulations pre-
! scribed by the federal reserve board,
purchase and sell in the open market
at home or abroad. either from or to
domestic or foreign banks. firms. cor
porations or individuals. cable trans
fers and bankers acceptances and
bills Of exchange Of the kinds and ma
turtles by this act made eligible for
rediscount with or without the indorse-
ment Of a member bank.
Every federal reserve bank shall
have power:
(a) To deal in gold coin and bullion
at home. or abroad. to make loans
thereon. exchange federal reserve
notes for gold, gold coin or gold GER
tificates and to contract for loans Of
gold coin or bullion. giving therefor.
when necessary. acceptable security.
including the hypothecation Of United
States bonds or other securities which
federal reserve banks are authorized
to hold:
90 To buy and sell at home or abroad
bonds and notes Of the United States
and bills. notes. revenue bonds and
warrants with maturity from date
Of purchasing Of not exceeding six
months. issued in anticipation of the
collection Of taxes or in anticipation Of
the receipt Of assured revenues by any
state. county. district, political subdi-
vision or municipality in the CONT
mental United States. Including irriga-
ton. drainage and reclamation dis
tricts. such purchases to be made in
accordance with rules and regulations
prescribed by the federal reserve
board;
(c) To purchase from member banks
and to sell. with or without its in
dorsement. bills Of exchange arising
out Of commercial transactions as
hereinbefore defined:
ID To establish from time to time.
subject to review and determination
Of the federal reserve board. rates of
discount to be charged by the federal
reserve bank for each class Of paper.
which shall be fixed with a view Of ac-
commodating commerce and business:
(e) To establish accounts With other
federal reserve banks for excha nge
purposes and. with the consent Of the
federal reserve board. 10 open uiid
maintain banking accounts In foreign
countries. appoint correspondents and
establish agencies in such countries
wheresoever it my deem best for the
purpose OF purchasing. selling and COL
lecting bills of exchange. and to buy
and sell with or without its indorse-
ment through such correspondents or
agencies, bills of exchange arising out
Of actual commercial transactions
which have not more than ninety days
to run and which bear the signature
Of two or more responsible parties.
Section 10 provides that moneys held
in tue general fund Of the United
states treasury. EXCEPT the 5 per CEN
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