The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-01-02

6Ted by the federal reserve board.
Dissenting Aecepsaness,
Amy federal reserve bank may dis
count aeceptanees which ara based on
the importation Or expectation or do
raestSc shipment Of goods and which
have a maturity at time OF discount OF
not more than three months and In
dorsed by at least one member bank. |
The amount Of acceptances 90 dis
counted shall at no time exceed one
half the paid up CAPITAL stock and u
plus OF the bank for which the re-
discounts are made.
Tha aggregate Of such notes and
bills bearing the signature or indorsa.
hen& OF any person, company or
firm or corporation .rediscounted for
any one hank shall at no time exceed
10 per centum Of the ~unimpaired CAPT.
tai and surplus of said bank. but this
restriction shall not apply TO the dis
sount of bills Of exchange drawn in
rood faith against actually existing
values.
ANY member bank may accept drafts
UE p4kAS S1 SASAhnAl&S N1dWu upUA IL
and growing out Of transactions in-
volving the importation or expectation
Of goods having not 1nore than six
months sight 10 run, but no bank shall
accept such bills to an amount equal
at any time in the aggregate to more
than one-half OF it's paid up capital
stock and surplus.
Open Market Operations.
Sec. Id. 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
porations or individuals, cable trans
fers and bankers acceptances and
bills Of exchange Of the kinds and ma
turtles by this act made eligible for
rediscount with or without the indorse-
unert OF a member bank.
Every federal reserve bank shall
have power:
(a) TO deal in gold coin and bullion
&C home Or abroad, to make loans
thereon, exchange federal reserve
notes for gold, gold coin or gold GER
tifcates ana 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 In authorized
to holds
% 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 subdi-
vision or municipality in the CONT
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;
() To purchase from member banks
and to sell, with or without its in
dorsement. bills Of exchange arising
out Of commercial transactions as
hereinbefore defined:
Id To establish from time to time,
subject to review and determination
Of the federal reserve board. rates OF
discount 20 be. charged by the federal
reserve bank for each class OF paper,
which shall be fixed with q view Of &C.
eommodating commerce ana business;
te) 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
~WheTaso0vag 10 my 0eeLn DeSe AvE UA
purpoae OF purchasing. selling and col
lecting bills Of exchange. and to buy
and sasl with or without its tndorse
aaaans through such correspondents o.
agencies, bills OF exchanges arising on
OF actual commercial transaction
which have not more than ninety day
: TO run and which bear the signatur'
OF two og more responsible parties.
Section LIS provides that moneys bel
In the general fund Of the Unite
States treasury, except the S per Ger
tum fund for the redemption OF ont
standing national bank notes ana tn
funds provided In the act for the y
dernption Of federal note'
may BIO deposited In federal reserv
BANKS which shall act as fiscal agent
and chat the funds OF the PhiIippir
Islands, the postal savings and an
other goveenmenS funds must be d
posted In federal reserve banks.
Section 16 provides for the issuant
OF federal reserve notes to federal r
serve banks, ~redeemabls I'm gold ond
mand dc the treasury department.
In gold sor lawful money at any fe
eral reserve bank. The collateral 9
curaty shall be notes and bills accep
ed for r~ediscount under section ]
Federal reserve banks shall have
gola reserve OF 20 per cent OF the
federal reserve notes ana shall NAL
tain ia the United States treasury
gold a reserve OF not less than s p
eent of the federal reserve notes {
their redemption.
Section az repeats laws requiring =
hunal banks 60 deposit governnae
bonds with the United States fEeasnrt
Section 10 provides q plan FOR ret
ing the q per cent bonds on WHICH q
present currency Ia based. Unner 2