The Ontario Argus. (Ontario, Or.) 1???-1947, 1914-01-29
RESERVE BANK POWERS.
Principal Functions Of the New Re-
eional Institutions.

Sec. l3, 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.
ber or other federal reserve banks
payable upon presentation.
Upon the Endorsement of any of its
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-that 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 60 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 he construed to
prohibit such notes. drafts and bills of
exchange secured by staple ngricul-
tural products or other goods. wares
or merchandise from being eligible for
n i.,,, a .h.I
not include notes, drafts or bills COW
cring merely investments or issued or
drawn for the purpose of carrying or
trading In stocks. bonds or other In
vcstmcnt 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 ut
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 n maturity not ex-
cceding six months may he discounted
In nm amount TO be limited to per.
ccntage of the capital OF the federal
reserve bank. 10 he nscertnlned and
fixed by the federal reserve board.
Diseountina Aeeoptanees.
Any federal reserve bank may dla-
count ncceptnnces which nrc based o-
the importation or expectation or do
nestle shipment Of goods aud which
have n maturity nt time OF discount az
not more than three months and is
dorsed by nt least one member bank.
The amount OF ncccptnnccs no dis
counted shall nt 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 indorse-
mcnt of any one person. company or
firm or corporation rediscountcd for
any onS bank shall at no time exceed
10 per ccntum OF the unimpaircd cnpl.
tai and surplus OF said bank. but this
restriction shall not apply 10 the dis
count OF bills OF exchange drawn In
good faith against actually existing
values.
hilN uluh U'NtHN
or bills of exchange drawn upon II
ana growing out OF transactions In.
volylng the importation or expectation
OF goods having not more than six
months sight "a 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 aud regulations pre-
scrlbed by the federal reserve board,
purchase ana sell In the open market
at home or abroad, either from or 10
domestic or foreign banks, firms. cor
porntions or individuals. cable trans
fers and bankers acceptances and
bills OF exchange Of the kinds and ma.
TURTLES by this net made eligible for
rcdiscount with or without the indorse.
ment OF n member bank.
Every federal reserve bank shall
have power:
(a) TO deal In gold coin and bullion |
w w hbiNhbF w ibhh'
thereon, exchange federal reserve !
notes for gold gold coin or gold GER
tihcntes and 10 contract for loans OF |
gold coin or bullion, giving therefor,
when necessary. acceptable security, |
the hypothecatlon Of United
States bonds or other securities which
federal reserve banks are authorized
10 hold;
,bl To buy and sell at home or abroad |
bonds aud notes of the United States
ind bills. notes. revenue bonds and /
with n maturity from date /
n purchasing Of not exceeding six /
issued In anticipation Of the /
Of taxes or In anticipation Of
hc receipt Of assured revenues by any .
state. county, district, political subdl-
'isiou or municipality I'm the contl-
mental United States, including lrriga-
ion, drainage and reclamation dis
ricts, such purchases 10 be made In