The Bottineau courant. (Bottineau, Bottineau County, N.D.) 1895-1929, 1914-01-02
RESERVE BANK POWERS.
Principal Functions Of the New Re-
oionai Institutions.

OSC. Id Ally tcucIoI ICHcSV OoAD
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 cheeks 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
payable upon presentation.
Upon the Endorsement Of any Of tts
member banks. with y waiver Of de-
mand notice and protest by such hank.
any federal reserve bank may dis.
count notes. drafts 9nd bills of rx'
change arising out Of actual CONNER
cial transactions that Is. notes. drifts
and bills Of exchange issued or draw
for agricultural. industrial or cOmmer
cial purposes or the prM'eedS Ut which
have been used Or are to be used for
such purposes. the federal reserve
hoard 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 he construed tn
prohibit such notes. drafts and hills Ut
exchange secured by staple agrirnl-
tural products or other gM,ds. wares
or mercha ndise from being eligible for
such discount but such definition shall
not inc'nde notes. drafts or bills GOV.
ering merely Investments or issued or
drawn for the purpose Of carrying or
trading in stO.kS. bonds or other In.
veStmpnt securities except bonds and
notes " the government Of the United
States Notes. drafts and bills admit.
ted to discount under the terms vt this
paragraph must have a maturity Mt
the time Of discount Of not more than
ninety days provided that notes.
drafts and bills ORA wn or Issued for
agricultural purposes or based on live
stock and having a maturity not tx.
reeding six months may he discounted
In an amount to he limited to q per-
Of the capital Of the federal
reserve bank. to be ascertainpd and
fixed ny the federal reserve hoard
O,scountins Acceptances.
ANY federal reserve bank may dis.
count acceptanc es which are based on
the Importation or expectation Or do
nestle shipment Of goods aud which
have u maturity at time of discount Of
not more than three months ant 10
dOrsed by ut least one member bauk
The amOun Of acceptances 70 dis
counted shall ut NO time EXCEED QUE
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-
Of any % person. company Or
firm or corporation rediscOunted for
any one bank shall ut no time exceed
10 per centum Of the unimpaired CAPT
tai and surplus Of said bank. but this
shall not apply to the dis
count Of bills Ut exchange drawn In
good faith against actually existing
values
Any member bank may accept drafts
Or bills of exchange drawn upon II
and growing mi Ut 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-haIf Ut its paid up capitaI
stock and surplus
Open Market Operations.
SCI. IA Any federal reserve bank
may. under rules and regulations pre-
scribed by the federal re~erve board.
purchase and sell in the open market
ut home Or abroad. either from Or to
domestic or foreign banks. firms. y
porations or individuals. cable trans.
fers and bankers ac.eptances and
bills of exchange Of the kinds and ma.
turtles by this act made eligible for
with or without the tndorss-
ment Of a member bank.
Every federal reserve bank shall
have power:
IA, To deal in gold coin and bullion
at home or. ahrOad. to make loans
thereon. exchange federal reaerve
notes for gold. gold coin or gold cer
tificates and to contract for i0ans Of
goid coin or bullion. giving therefor.
when necessary. acceptable security.
including the hyp0thecati0u Of United
States honda OF other securities. which
federal reserve hanks are authorized
to hold:
ID, To buy and sell at home or abroad
honds and notes Of the United States
and bills. notes. revenue bonds and
warrants with . maturity from date
NJ 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 suhdi-
Vision or municipality In the cont
mental United Statea, including irrtgA.
ton. drainage and reclamation dis
trtcts. srlch purchase. to BE- made In
accordance with rules and regulations
prescribed By the federal reserve