The Nezperce herald. (Nezperce, Idaho) 1900-1957, 1914-01-01

nestle shipment OF goods and whiea
have a maturity at time Of Discount 81
not more than three months an0 In
dorsed by at least one member bank
The amount OF acceptaneea 80 DIS
counted shall ut no time exceed on@
half the paid up capital stock and sur
plus Of the bank for which the re-
discounts are made.
The aggregate OF such notes and
bills bearing the signature or tndorse'
ment of any one person, company or
firm or corporation redlseounted fog
any one bank shall at 40 time exceed
10 per eentnm OF the unimpaired CAPT
tai 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 member bank may accept drafts
or bills OF exchange drawn upon IL
and growing out OF transactions In
yoIving the importation or expectation
OF goods aaving not more than SIX
months sight to run. but no bank shall
accept such bills TO an amount equal
at any time In the aggregate TO more
than one-half OF its paid up capital
stock and surplus
Open Market Operations
| Sec. IL Any federal reserve hank
may, under rules and regulations pre-
serlbed by the federal reserve board
purchase aud sell In the open market
at home or abroad. either from or 10
domestic or foreign banks. llrms. cor
poratfons or individuals. cable trans
fers and bankers aeceptances and
bills OF exchange Of the kinds and ma
TURTLES by this act made eligible for
rediscount with or without the indorse-
ment OF a member bank.
Every federal reserve bank shall
have power:
(al To deal IN gold coin and bullion
az home or abroad. 10 make loans
thereon. exchange federal reserve
notes for gold. gold coin or gold GER
dictates 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 hanks are authorized
to hold:
fbl To buy and sell at home or abroad
bonds and notes Of the United States
and bills. notes. revenue bonds and
warrants with a 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 suhdi-
vision or municipality In the conf
mental United States. Including irri@@
ton. drainage and reclamation Ola
trIcts. such purchases "a be- made Ia
accordance with rules and regulations
prescribed by the. federal reserve
board:
(cy 10 purchase from member banks
and TO sell. with or without It's In
lorsemenf. bills Of exchange arising
out Of commercial transactions a@
hereinbefore defined.
ID To establish from time 20 time.
subject 20 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 q view Of &C.
commodating commerce and business
tei To establish accounts with other
federnl reserve banks for exchange
purposes and. with the consent Of the
federal reserve board. a. open and
maintain banking accounts IN foreign
countries. appoint correspondents and
establish agencies In such countries
wheFesoever II my deem best for fh@
purpose Of purchasing. selling and col /
Iecting bills Of exchange. and TO buy
and sell with or without Its indorHe- \
ment through such correspondents cr /
agencies, bills of exchange arising oct |
Of actual commercial transactions
which have not more than ninety days l
to run and which bear the signature /
of two or more responsible parties.
Section Is 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 us fiscal agents
and that the funds OF the Philippine
islands, the postal savings and any
other government funds must be de-
posted In federal reserve banks.
Section 10 provides for the issuance
" federal reserve notes TO federal re-
serve banks. redeemable In gold on de-
nand at the treasury department or
m gold or iawfuI money st amy fed |
sral reserve bank. The collateral Sc
.urity shall be notes and Bills acceps-
"a for rediscount under section 10.
Federal reserve banks shall have q
gold reserve Of 40 per cent Of their
federal reserve notes and shall main
ain in the United States treasury IN
gold reserve Of not less than 5 per
,ent Of the federal reserve notes for
heir redemption.
Section IL repeats laws requiring ma
ional banks TO deposit government
bonds with the United States treasurer.
Section iS provides plan for refir-
na the 2 per cent bonds on which the