The Washington herald., 1914-04-03

the reserve banks.
q Approve the compensation and al
lowances voted by the board OF directors
| of each reserve bank to its representa-
tive on the Federal advisory council
q. Draw up rules and regulations for
the guidance OF reserve banks in the
purchase and sale in the open market of
bills, acceptances. cable transfers. Unit
ed States bonds and notes and certain
| specified State and municipal securities
30. Authorize the establishment OF cor
respondents and agencies of reserve
banks in foreign countries.
| 81. Make and promulgate regulations
| governing the transfer of funds betwsen
| reserve banks
| j. At its discretion the board may
exercise the functions of a clearing house
! for the reserve banks or designate
/ reserve bank to do so.
80. Require each reserve bank to act
as a clearinghouse for its member
! banks
"a. Require the reserve banks to pur-
| chase United States bonds securing the
national bank circulation to be retired.
3. Require a reserve bank to furnish
any information as to the condition of
any member bank in its district
80. Order a yearly examination of each
reserve bank and, upon joint application
OF ten member banks. a special examina-
ton OF any reserve hank.
CONTROL OVER MEMBER BANKS.
q. Compel any member bank failing
to comply with the act or the regula-
tons OF the board to surrender its stock
in a reserve hank.
S. Upon application. grant TO a ma
tional bank, when not in cOntravention
of State or local law. the right to act
under rules and regulations as trustee.
executor. administrator. or registrar OF
stocks and bonds.
-. BY rule fix the charges to be col
lected by the member banks and by the
reserve banks for their services in clear
ing or collecting checks and drafts
40 Permit a member bank to act as
the agent of a non-member bank in
rediscounting.
IL. Prescribe regulations and penalties
(subject to stipulations) under which a !
member bank. in order to meet existing
liabilities. may withdraw its reserve held /
with reserve bank.
81 Authorize the examination OF State }
banks and trust companies by State au-
thoritics instead of by national as it may
see fit.
g. Authorize (subjcCt to stipulationsI |
the establishment by national banks OF
branches in foreign countries.
a. Order special examinations Of for
=. Approve subject to stipuIations) re-
ductions in the capital stock Of national !
banks
MISCELLANEOTs.
46. suspend for a period not exceed
ing thirty days and renew such suspen-
sion for periods not exceeding fifteen /
days, any reserve requirement specified |
in the act, subject to certain taxes II the |
reserves fall below specified minimum
percentages.
&. Add to the existing number Of re- /
serv" and central reserve cities. re-
classify them. or terminate their desg-
nation as such.
4S Employ attorneys experts. assist
ants. clerks or other employees as needed.
and fix their salaries. All such appoint
ments may be made without reference
to civil service rules although the Presi-
dent may place said employees in the
classified service.
~ Call special meetings Of the Federal
advisory council
"a, Approve the issue Of new per cent
United States bonds. or one-year per
cent gold notes. in exchange for rhe .
per cent United States bonds retired. or
the issue OF per cent bonds in eN-
change for the one-year notes.
81. Upon recommendation of the Comp
troller of the Currency. fix the salaries
of all bank examiners.
50. Approve. directly or through the re-
serve agents. regulations by any reserve
bank for the special examination of
member banks within its district.
So Add to the number Of cities in which
national banks shall not be permitted to
loan on real estate.
The foregoing list seems to include
everything necessary to enable the Fed
cal Reserve Board not only to supehvise
the system, hut manage and direct it.
Numerous instances OF legislative power
may be noticed in those paragraps which
permit the board to make rules and
regulations to govern operations of the
law
Member banks will continue to be man
aged by their directors and they will
fall under the supervision Of the board
only as their business touches, or be-
comes interviewer with. that Of the re-
serve banks.
Management of Banks.
The Federal reserve banks will be man
aged by nine directors. six Of whom are
10 he chosen by the member banks. But
the power OF the reserve board. which
Is only supervisory when applied to menu
Der banks. becomes more of a directing
agency when applied to reserve banks.
II will be noted that the Federal Re-
;erve Board has the power to review the
work of the organization committee and
-eadjus. the limits of Federal reserve
districts. II has the power also to ex-
erciSe the functions Of a clearing house