Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1913-12-27
Eight to Twelve
Reserve Banks
TO Be Establish.
ed In Various
Parts of the
Land 80 EndCts
Money Reforms.
PartiC uId rIy
With Regard TO
farmers.

{ becomes forfeited By some Violation or
law.
Third.-To make contracts
! Fourth-To sue and be sued. com
plain and defend. in any court OF law
or equity.
Fifth.-To appoint by its board OF
directors. elected as hereinafter pro
I v.ded. such officers as are not other
/ wise provided for in this act, 10 define
/ their duties. require bonds OF them and
| Ok the penalty thereof. to dismiss such
[ officers or any Of them as may Ice ap-
/ pointed by them at pleasure and to ap-
I point others TO I'LL their places.
Slxth--To prescribe by fits board OF
Z directors bylaws not inconsistent with
law regulating the manner in which its
general business may be conducted
and the privileges granted TO it by law
may he exercised and enjoyed
Seventh.-To exercise by its board OF
directors or duly authorized officers or
agents all powers specifically granted
by the provisions OF this act and such
incidental powers rs shall be necessary
10 carry on the business OF banking
within the limitations prescribed 10y
this act
Eighth.-Upon deposit with the treas
urer % the United States OF any bonds
OF the United States in the manner
provided by existing law relating To
national banks to receive from the
comptroller OF the currency circulating
notes in blank. registered and counter
signed as provided by law. equal In
amount 20 the par value OF the bonds
so deposited. such notes to bc ISSUED
under the same conditions and provi-
sions Of law which relate TO the issue
OF circulating notes OF national banks
secured by bonds Of the United States
bear the circulating privilege. ex-
ce0t that the issue Of such notes shall
not be limited TO the amount Of the
capital stock OF such federal reserve
bank
But no federal reserve bank shall
transact any business except such as
IS incidental and necessarily prelimi
nary 10 It's orca nization until II has
been authorized by the comptroller OF
the currency To commence business I'M
der the provisions OF this act
Classes Of Directors.
Every federal reserve bank shall he
conducted under the supervision aud
control OF board OF directors.
Such board OF directors shall he Sc
Iected ~ hereinafter specified and shall
consist Of nine members. holding Office
for three years and divided into three
classes. designated rs Classes a. Il
and {.
Class A shall consist OF three mem
bers. who shall be chosen by and he I
representative OF the stock holding
banks
Class r. shall consist OF three men, /
bers. who ut the time OF their election /
sLal! he actively engaged IN their dis I
trict In commerce. in agriculture or ~ T.
some other industrial pursuit
Class & shall consist OF three mem
beers. who shall be designated by the .
federal rescrve board. When the nee I
eSsary subscriptions 10 the capital .
stock have been obtained for the or
ganizatio for any federal reserve
bank the federal reserve board shall
appoint tue Class e directors and shall
designate one Of such directors rs
chairman OF the board TO he selected
Pending the designation OF ssIch chair
man the organization committee shall
exercise tile powers and duties spper-
tanning TO the Office OF chairman in the /
orga nIzation OF such federal reserve
bank.
No senator or representative in con
gress shall be a member OF federal re-
serve board or an officer or a director
OF a federal reserve bank.
No director OF Glass shall be an
officer. director or employee OF any
bank.
No director OF Class C shall be an
officer. director. employee or stock
holder OF any bank
Class c directors shall be appointed
by the federal reserve board. They
shall have been for at least two years
residents OF the district for which
they are appointed. one OF whom
shall be designated by said board as
chairman OF the board Of directors OF
the federal reserve bank and as fed
eral reserve agent" He shall be a
person OF tested banking experience.
D nd in addition 10 his duties as chair
man OF the board OF directors OF the
federal reserve bank he shall be re-
quired 10 maintain under regulations
10 be esta blished by the federal reserve
board a local ONCE Of said board on
the premises Of the federal reserve
bank
Sec. & The capital stock OF each fed
aral reserve bank shall be divided into
shares OF 500 each.
Division Of Earnings
Sec. :. After all necessary expenses
1f a federal reserve bank have been
paid or provided kor. the stockhold-
,rs shall be entitled 20 receive al
annual dividend OF @ per centum on I
Inc paid in capital stock. which divi-
lend shall be cumulative After the
aforesaid dividend claims have been
'uiIy met all net earnings shall be paid /
10 the United States as a franchise
.ax. except that one-half OF such net I
earnings shall be paid into a surplus (
'und until IL shall amount 20 80 per I
,entum OF the paid in capital stock Of
luch bank.
The net earnings derived by the. Unit ,