The weekly times-record. (Valley City, N.D.) 1912-1922, 1914-01-08
RESERVE BANK POWERS.

RESERVE BANK POWERS.
Principal Functions Of che New Re.
eional Institutions.
Sec. 10. Any federal reserve bank
may receive from any Of its member
banks and from the United States de-
posits of current funds in lawful mon.
ey, national bank notes. federal reserve
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 waiver of de-
mand notice and protest by such bank.
any federal reserve bank may dis.
count notes, drafts and bills of ex.
change arising out Of actual CONNER.
cial ransactions-th is. notes. drafts
and bills OF exchange issued or drawn
for agricultural. industrial or CONNER.
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 agrlcul-
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.
ertng merely investments or issued or
drawn for the purpose o6carrying or
trading in stocks, bonds or other in
vestment 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 at
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 ex.
ceeding six months may be discounted
in an amount to be limited to per
centage Of the capital Of the federal
reserve bank, to be ascertained and
fixed by the federal reserve board.
Diseountino Aeeeptances.
Any federal reserve bank may dis
count acceptances which are based on
the Importation or expectation or do
nestle shipment of goods and which
have maturity at time of discount OF
not more than three months and In.
dorsed by at least one member bank.
The amount Of acceptances so dis
counted shall at no time exceed one
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 rediscounted for
any one bank 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
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 it
and growing out Of transactions In.
volving the importation or expectation
of goods having 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 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.
ment Of member bank.
Every federal reserve bank shall
have power:
(a) To deal in gold coin and bullion
at home or abroad. to make loans
thereon. exchange federal reserve
notes for gold. gold coin or gold Ger.
tificates 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 banks are authorized
to hold:
(b) To buy and sell at home or abroad
bonds and notes Of the United States
and bills. notes, revenue bonds and
warrants with 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-