Hopkinsville Kentuckian., 1914-01-03
Federal Reserve Act.

/ e'' 80 A"A"s iuLiOuuceu III
House
September IS. 1913, Passed by
House.
November p. 1913. Reported to
Senate.
December 10. 1913, Passed by Sem
ate in amended form.
December 10, 1913, Sent to con-
ference committee Of Senate and
House.
December %, 1913, Passed by
House in form agreed upon by Con-
ference Committee.
J December %, 1913, Passed by SEN
ate in form agreed upon by Confer
ence Committee.
December %, 1913, Signed byPres-
ident Wilson.
The Act requires (Sec. p that as
soon as practicable, the Secretary of
the Treasury, the Secretary Of Ag-
riculture and the Comptroller of the
Currency, acting as THE Reserve
Bank Organization Committee" shall
designate not less than eight nor
more than twelve cities to be known
as Federal reserve cities, and shall
divide the Continental United States,
including Alaska, into districts, each
district to contain only one Of the
such Federal reserve cities.
Every national banking associa-
ton in the United States is srequired,
and every eligible bank in the United
States and every trust company
within the District of Columbia, is
thereby authorized to signify in writ
ling, within sixty days after the pass
age of this Act, its acceptance of the
terms n d provisions hereof"
When the organization committee
shall have designated the cities in
which Federal reserve banks are to
be organized, and fixed the geograph-
ical limits of the Federal reserve
dist icts, every national banking as
yociation within the district shall be
required within thirty days after
notice from the organization commit
tee, to subscribe to the capital stock
of such Federal reserve bank in a
sum equal to six per centum Of the
paid up capital stock and surplus of
such bank, one-sixth of the subscrip-
ton to be payable on call Of the or
ganization committee or of the Fed
eral Reserve Board, one-sixth within
/ three months and one-sixth six
months thereafter and the remainder
Of the subscription, or any part
thereof, shall be subject to call when
deemed necessary by the Federal
Reserve Board, said payments to be
in gold or gold certificates"
SHOULD the subscriptions by banks
| to the stock of said Federal reserve
banks, or any one or more Of them
be III the judgment of the organiza-
ton committee, insufficient to pro-
vide the amount of capital required
therefor, then and in that event the
said organization committee may IN
der conditions and regulations to be
prescribed by it, offer to public sub
scription at par, such an amount of
stock in said Federal reserve banks,
or any one or more of them, as said
committee shall determine, subject
to the same conditions as to payment
and stock liability as provided for
member banks"
: These outside stockholders are
limited to S25, 100000 to any individ-
ual co-partnership or corporation.
The Regional Banks are to have a
, minimum capital of $4,000, 10000
each and may be much more, and
the member banks are required to
supply the greater part of this capi-
tai and to carry with them a certain
portion of their reserves.
For this they are to get 6 per cent.
dividends on their stock if earned
and to be supplied with loans in the
form Of cirulating notes on short
time with their customers paper as
collateral, when money is needed toe
move crops and other pressing legihi
innate demands, such notes viii