The Washington herald., 1913-06-20
BILL
IS MADE PUBLIC
CONTINUED FROM PAGE ONE.

reserve board has been increased. Al
originally agreed upon. the Federal re
serve board will consist of three mem
bers appointed by the President, will
the consent of the Senate; three mem
beers elected by the Federal reserv,
banks. and three ex-ofiicio members. thu
Secretary of the Treasury. the Secretar,
of Agriculture, and the Comptroller o.
the Currency.
The membership of the board has beer
decreased to seven, and the Presiden
is to appoint four, while the Secretary
of the Treasury, the Secretary of Agri
culture, and the Comptroller of the Cur
rency are to be ex-officio members. Thii
in reality gives the Presidep. the power
to appoint the entire board which shall
control the new banking system. This
change was made to meet the objection
that has been raised that the danger Of
bank control of this board ought to bs
reduced to a minimum.
Federal Reservc Board.
Here is the section of the currency
bill In its final form creating the Fed
eral reserve board:
Section II. There shall be created a
Federal reserve board, which shall con-
sist of seven members, including the
secretary OI INC 1EcdsuAyr ZIG ScNiceo4y
of Agriculture, and the Comptroller OF
the Currency, who shall be members ex
of.icio. and four members chosen by the
President of the United States, by and
with the advice and consent of the Sen
ate. The four members of the Federal
reserve board chosen by the President
and confirmed as aforesaid shall each
receive an annual salary of $4,000: and
the Comptroller Of the Currency. as ex-
officio member Of said Federal reserve
board. shall. in addition to the salary
now paid him as Comptroller, receive
the sum of 5000 annually for his serv-
ices as a member of said board.
"of those thus appointed by the Presi-
dent. at least one shall be a person ex-
perienced in banking; and of those first
appointed, one shall serve for two, one
for four, one for six, and one for eight
years. respectively. and thereafter each
member so appointed shall serve a term
Of eight years. OF the four persons thus
appointed. one of such members is to
be designated as governor, one as vice
governor, and one as secretary OF the
Federal reserve board.
THE governor of the Federal reserve
board, subject to the supervision of
the Secretary of the Treasury and
board, shall be the active managing
officer of the Federal reserve board.
He shall be subject to removal by the
President upon a statement OF the rea-
sons for such removal.
The Federal reserve board shall
have power to levy semi-annually upon
the Federal reserve banks. In proper
ton to capital. an assessment suffi-
rient to pay its estimated expenses
for the half year succeeding the levy
ing Of such assessment, together with
any deficit carried forward from the
preceding half year.
That the first meeting of the Fed
.ral reserve board shall be held In
District of Columbia, as
soon as may be after the passage OF
his act, and after the organization OF
Federal reserve banks in the several
districts. as herein provided. at date
% be fixed by the reserve organization
committee hereinbefore created.
THE Secretary of the Treasury shall
,e ex officio chairman OF the Federal
-eserve board. No member OF the Fed
raj reserve board shall continue to hold
,ffice or to act as a director OF any bank
,r banking institution or Federal reserve
,ank, and before entering upon his
Iuties as member Of the Federal reserve
,oard he shall certify that oath to the
secretary OIL hS AsAo
complied with this requirement. When
.ver a vacancy shall occur among the
our members Of the Federal reserve
,oard chosen by the President, as above
provided, a successor shall be appointed
" the President. with the advice and
onsent Of the Senate. to fill such
'acancy, and when chosen, shall hold
flee for the unexpired term Of the men,
er whose place he is selected to fill"
Issuance of Notes.
This is the verbatim section OF the bill
n regard to note issue:
Section II. That an issue Of Federal
eserve Treasury notes, not to exceed
500, 900, 600, is hereby authorized. The said
otes shall purport on their faces to be
he obligations of the United States, and
hall be issued at the discretion OF the
'ederal reserve board and solely for the
urpose of making advances to Federal
eserve banks, as hereinafter set forth.
They shall be receivable for all taxes.
ustoms, and other public dues, and shall
9 redeemed in gold on demand at the
reasury Department in the city of
District of Columbia, or at
ny Federal reserve bank: and when de-
osited with such bank for redemption
lay be charged on by said bank against
reasury balances on its books, or may
set apart for their redemp-
on.
Application for Notes.
"Any Federal reserve bank may, upon
ote of its directors, make application
!, the Federal Reserve Board through the
zeal Federal reserve agent for such
mount of the Treasury notes hereinbe-
,re provided for as II may deem best.
UGH application shall be accompanied
18th a tender to the local reserve agent
collateral security to protect the notes
Or which application Is made, equal in
mount to the sum Of the notes thus ap- |
lied for. The collateral security thus |
nered shall be notes and bills accepted |
u rediscount under the provisions Of
,ction thirteen of this act, and the Fed |
al reserve Board shall be authorized at
ny time to call upon a Federal reserve |
ank for additional deposits of security.
whenever any Federal reserve bank |
lall pay out or disburse Federal reserve |
notes of the issue herein pro-
ded II shall hold in its own vaults gold |
lawful money equal in amount to 80 l-3 !
II centum of the Treasury notes SO paid |,
1t by it. The Federal reserve board |
lall have power. in its discretion, to re-
lire Federal reserve banks to maintain |
deposit in the Treasury of the United |
ates a sum in gold or lawful money |
Iual to per centum of whatever amount |
Federal reserve Treasury notes may !.
issued to them under the provisions
this act; but such per centum shall
counted and included as part of the
1-3 per centum reserve hereinbefore re-
Tired. 1t shall also have the right to
ant in whole or in part or to reject en-
rely the application Of any Federal re-
rye bank for Federal reserve Treasury