The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-06-20

eight wears respectively. and thereafter
each member So appointed shall serve fOi
I, term Of eight years OF the four persons
thus appointed one Uf such members is "a
h. designated as governor. one A. Vice.
gu,.tuor and one secretary Of the
Federal reserve. board The governor ~
Ia" Federal ieseIV. board. subject TO the
super, ision Of tn. Secretary Of the Treas
AIRY aud board. shall be the active manag
ing officer uf the Federal reserve boa rd
IT.. shall b- subject to removal nv the
President upon "A statement Of the reasons
fo' such removal.
The Federal reserve board shall have
power to levy semi-annualiS upon the
Federal reserve banks In proportion Ia
capital an assessment Sufficient to pay
its estimated expenses for the half year
succeeding the levying of such assessment.
together with any deficit carried Forward
& ON the preceding half year.
That the first meeting OF the Federal
reserve board shall he held in Washing
ton. H. e.. as soon "a may be after the
passage Of this act and after the orEan,za
tion ~ Federal reserve banks In the seV-
.ral districts. as herein provided at a
date 10 be fixed by the reserve or2aniza-
ton committee hereinbefore created,
The Secretary OF the Treasury shall
be ex officio chairman OF the Federal re.
serve board No member OF the Federal
reserve board shall continue to hold once
or to act as director OF any bank or
banking Institution or Federal reserve
bank and before entering upon his duties
as Il member OF the Federal reserve board
hp shall certify under oath to the Secre-
tarv OF the Treasury that he has complied
with this requirement. Whenever va
cauacy shall occur among the four mem
bers OF the Federal reserve board chosen
py the President. as above provided. a sue
cessor shall be appointed by the President
with the advice and consent or the senate
TO All such vacancy and when chosen shall
hold office for the unsxpired term OF the
member whose place he Is selected To MI.
A. 20 NOte Issaes.
This is the verbatim section of the
bill in regard to note issues:
Section l., That an issue OF Federal
reserve treasury notes not 10 exceed
$500 O00. 900 is hereby authorized. The
said notes shall purpor' on their races
20 he the obligations OF the United states
and shall he issued at the discretion Of
the Federal reserve board and solely for
the purpose of making advances TO Fed =
eral reserve banks. as hereinafter Sc,
forth They shall be receivable for all
taxes customs and other public duties
and shall he redeemed IN gold on demand
AZ the Treasury Department in the city
OF Washington, u G. or at any Federal
reserve bank. and when deposited with
such bank for redemption may be charged
of by said bank against Treasury bal
ances on It's books or may be paid out
OF its lawful money funds specifically
SET apart for their redemption.
Any Federal reserve bank NAV upon
vote of It's directors make application TO
the Federal reserve hoard through the
local Federal reserve agent for such
amount Of the Treasury notes herein
before provided FOR as II may deem best
such application shall he accompanied
with tender to the local reserve agent
of collateral security to protect the notes
for which application In made, equal IN
amount TO the sum OF the notes tnus
applied for The collateral security
thus offered shall he notes and bills ac-
cep,ed for rediscount under the provisions
OF section IS OF this act and the Federal
reserve board shall be authorized at any
time to call upon a Federal reserve bank
for additional deposits of security
Whenever any Federal reserve bank
shall pay out or disburse Federal re-
serve Treasury notes of the issue herein
crowded ii snail hold in its own vaults
gold or lawful money equal in amount "a
33 l-3 per cent Of the Treasury notes sO
paid out by IL The Federal reserve board
shall haV" power In its discretion to re-
a'iire Federal reserve banks to maintain
on deposit In the Treasury OF the United
, states sum in gold ar lawful money
equal 10 per Centum OF whatever amount
| of Ftieral reserve Treasury notes may
| be issued to them under the provisions OF
| this act, hut such per centum shall b.
| counted and included ~ part OF the 20 3
per centum reserve hereinbcfor~ required
| l. shall also hay. the right TO grant it,
whole or in part or 70 reject entirely the
! application OF any Federal reserve bank
| FOR Federal reserve Treasury notes. bu,
, to the extent and in the amount tina,
| such Application may b~ granted the Fed
-rnl reserve board shall through It's Local
! Federal agent deposit Treasury notes
with th. bank SO applying. and such bank
shall b- charged with the amount OF such
! notes, aud shall pay such rate Of in.
! irt"si ou said amount es may be ~sta
lish-d bN the Federal r-serv- board and
! the amount OF such Treasury notes "
! ISSUED to any such bank shall upon de
| livery become n first and paramount lien
on all the assets OF such bank
! can always Reduc~ iisbiiit..
/ Any Federal reserve bank may az an,
/ time reduce its llabIits for outstauding
! Federal reserve Treasury notes by tn.
deposit OF Federal reserve Treasury notes
whether issued to such bank or to some
| other member bank other than Lawful
lion with the Treasurer OF the United
/ States. and such reduction shall he ac-
rOmpanied BY a corresponding reduct ior
: In the reserve fund OF lawful money sci
! apart for the redemption of said notes
! and by the release OF n corresponding
( amount Of the collateral security deposited
! with the local Federal reserve agent
| ANY Federal reserve bank may At its
' discretion Withdraw collateral depOsited
B with the local Federal reserve agent foi
! the protection ~ Federal reserve Treasur,
J notes deposited with II and shall AZ the
same time substitute other collateral ol
equal value approved by the Federal re
serve agent under regulations TO be pre-
! scribed hV the reserve board
1T shall be- the duty OF every Fedora
reserve bank to receive on deposit AZ pal
! and without charge for exchange or col
! lection checks and drafts drawn by an,
, Of i,s dapostors upon any other depostOl
, and checks and drafts drawn by an,