The Ontario Argus. (Ontario, Or.) 1???-1947, 1914-01-08
RESERVE BANK POWERS.
Principal Functions of the New Re-
aionaI Institutions.

notes or checks and drafts upon MEM
Der banks, payable upon presentation
or solely for exchange purposes may
receive from other federal reserve
banks deposits of current funds In
lawful money, national bank notes or
checks and drafts upon solvent mem
Der or other federal reserve banks
payable upon presentation.
Upon the Endorsement of any of It's
member banks. with a waiver of de-
mand notice and protest 10y such bank.
any federal reserve bank may dis
count notes. drafts and bills OF ex-
change arising out of actual CONNER
cial ransactions-that Is. notes, drafts
and bills Of exchange issued or drawn
for agricultural. Industrial or CONNER
4, cial purposes or the proceeds OF which
have been used or are to be used for
such purposes. the federal reserve
board to have the right TO determine
or define the character OF the paper
thus eligible for discount within the
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
or merchandise from being eligible for
such discount. but such definition shall
not include notes. drafts or bills Gov
ering merely Investments or issued or
drawn for the purpose of carrying or
trading In stocks. bonds or other In
vcstmcnt 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 nt
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 cS-
ceeding six months may he discounted
In nm amount 90 be limited to per
centage OF the capital Of the federal
reserve bank. 10 be asccrtalncd and
fixed by the federal reserve board.
Diseounting Aeeeptanees.
Any federal reserve bank may dis
count ncccptnnccs which are based 90
the importation or expectation or do
nestle shipment OF goods and which
have n maturity nc time OF discount -
not more than three months aud In
dorscd by nt least one member bank
Tho amount Of ncccptnnccs so dis
counted shall nc no time exceed one.
half the paid up capital stock and sur.
plus OF the bank for which the rc-
discounts are made.
The aggregate OF such notes and
bills bearing the signature or indorso-
mcnt OF any one person, company or
firm or corporation rcdscountcd for
any ono bank shall at no tlme exceed
10 per ccntum OF tho unlmpnlrcd capl.
tal 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.
ANY mcmirr bank may accept drafts |
or bills 0l rgchangc drawn u.oI !, |
and growth. oUt of tram actions In
volvIng the importation az cApurtntiur
%, gunls having not more ilnn siN
,Auuths Slght tO run, but 40 bank shall
accept such bills 10 an amount equal
at amy tIElr In the aggregate to moro
than one half at its paid up capital
stock and surplus,
Open Market Operations.
Sec. II ANY federal reserve bank
may. under ru'es aud regulations pre-
scrlbed 10y the federal reserve board.
purchase aud sell IN the open market
at home or abroad. either from or 20
domestic or foreign banks. firms. cor.
poratlons or individuals. cable trans
fcrs aud bankers acccptances and
bills of exchange Of the kinds ana ma
TURTLES by this net made eligible for
rediscount with or without the indorse-
ment Of a member bank.
Every federal reserve bank shall
have power:
(a) TO deal I'm gold coin ana bullion
nj home or abroad. 10 make loans
thereon, exchange federal reserve
notes for gold. gold coin or gold GER
tihcates and 10 contract for loans OF
gold coin or bullion. giving therefor,
when necessary. acceptable security.
including the hypothecatlon OF United
States bonds or other securities which
federal reserve banks are authorized
10 hold:
tbI To buy ana sell at home or abroad
bonds and notes OF the United States
md bills. notes. revenue bonds and
with maturity from date
II purchasing OF not exceeding six
months, issued In anticipation OF the
OF taxes or In anticipation OF
he receipt OF assured revenues by any
state. county. district. political subdl-
Vision or municipality In the CONT
mental United States. including irriga-
ion. drainage and reclamation dis
ricts. such purchases TO be made In
accordance with rules and regulations
prescribed by the federal reserve
BOARD;
(c) TO purchase from member banks