Norwich bulletin., 1913-12-25
than one-half of its paid up capital stock and surplus.
 onen Market Operations.

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 porataons or individuals, cable trans fers and bankers acceptances and bills of exchange of the kinds and ma turtles by this act made eligible for redfscount with or without the indorse- ment of q member bank.
 Every federal reserve bank shall have power:
 Gal 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 cer- tfcates 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;
 ! Cb) 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 cOntf- 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 it's in- dorsefnent. bills of exchange arising out of commercial transactions as hereinbefore defined;
 (O 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 view of ac- commodating commerce and business;
 (e) To establish accounts with other federal reserve banks for exchange purposes and. with the consent of the federal reserve board, to open and 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 it's 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 15 provides that moneys held in the general fund of the United States treasury, except the per cen tum fund for the redemption of out standing national bank notes and the funds provided in the act for the re demption of federal reserve notes, may be deposited in federal reserve banks which shall act as fiscal agents and that the funds of the Philippine Islands, the postal savings and any other government funds must be de posited in federal reserve banks.
 Section 16 provides for the issuance of federal reserve notes to federal re- serve banks, redeemable in gold on de mand at the treasury department or in gold or lawful money at any fed eral reserve bank. The collateral se- curity shall be notes and bills accept cd for rediscount under section 13. Federal reserve banks shall have a gold reserve of 40 per cent of their federal reserve notes and shall main tain in the United States treasury in gold a reserve of not less than per cent of the federal reserve notes for their redemption
 Section IT repeals laws requiring na ttonal banks to deposit government
 Section 1e provides a plan for retir- ing the 2 per cent bonds on which the present currency is based. Under the plan S25 100000 worth of these bonds will be purchased each year, beginning two years after the system is placed in operation, by the new regional banks from member banks. On one-half Of it's holdings each regional bank may is- sue currency. The remainder will be refunded in per cent thirty year bonds or 8 per cent one year treasury notes. which the banks must agree to renew each year for thirty years.
 Section 19 describes how member banks shall establish and maintain re- serves.
 Section 21 provides for the examina- ton of each member bank by the comptroller of the currency at least twice year, for special examination of member banks when desired by federal reserve banks and for a spe- cisl examination of any federal re- serve bank upon the application of ten member banks.
 PENALTY FIR nISH0MFST