An Act to amend the National Bank Act and the Federal Reserve Act with respect to the reserves required to be maintained by member banks of the Federal Reserve System against deposits and to eliminate the classification ""central reserve city.""
PL 86-114 (S.1120), enacted 07/28/1959

73 S T A T . ] 
PUBLIC LAW 86-114-JULY 28, 1959 
263 
Public Law 86-114 
AN ACT 
July 28, 1959 
rs 11201 
To amend the National Bank Act and the Fedei-al Keserve Act with respect to 
—1 
J 
40 Stat. 970. 
the reserves required to be maintained by member banks of the Federal Reserve 
System against deposits and to eliminate the classification "central reserve 
city". 
Be it enacted by tlie Senate and House of Representatives 
of the 
United States of America in Congress assemhled, That section 19 
^embe^ f anTI,' 
of the Federal Reserve Act, as amended, is further amended by strik- reserves. 
ing out the provisos in the fourth and fifth paragraphs of such section, 
lettered (b) and (c), respectively (U.S.C., title 12, sec. 462), by chang-
ing the colon in each such paragraph to a period, and by adding after 
such fifth paragraph the following: 
"Notwithstanding the other provisions of this section— 
"(1) the Board of Governors, under such regulations as it 
may prescribe, may permit member banks to count all or part 
of their currency and coin as reserves required under this section; 
and 
"(2) a member bank in a reserve city may^hold and maintain 
the reserve balances which are in effect under this section for 
member banks described in paragraph (a), and a member bank 
in a central reserve city may hold and maintain the reserve bal-
ances w^hich are in effect under this section for member banks 
described in paragraph (a) or (b), if permission for the hold-
ing and maintaining of such lower reserve balances is granted 
by the Board of Governors of the Federal Reserve System, either 
in individual cases or under regulations of the Board, on such 
basis as the Board may deem reasonable and appropriate in view 
of the character of business transacted by the member bank." 
SEC. 2. (a) The fifth paragraph of section 19 of the Federal Reserve 
Act, lettered (c) (U.S.C, title 12, sec. 462), is amended by striking 
^o stat. 970. 
out the word "thirteen" in such paragraph and substituting in lieu 
thereof the word "ten". 
(b) The sixth paragraph of section 19 of the Federal Reserve Act 
(U.S.C, title 12, sec. 462b) is amended by striking out the words 
'•9 stat. 706, 
"on the date of enactment of the Banking Act of 1935", and by insert-
ing before the period at the end thereof the following: ", except that 
in the case of member banks in reserve cities and central reserve cities 
the maximum amount of reserves which may be required to be main-
tained against demand deposits shall be 22 per centum". 
SEC. 3. (a) The amendments made by the first two sections of this 
Effective dates. 
Act shall be effective on the date of the enactment of this Act. 
(b) Effective three years after the date of the enactment of this 
Act— 
(1) New^ York and Chicago are reclassified as reserve cities 
under the Federal Reserve Act; 
\\ ^^^ ||gi; 
(2) the classification "central reserve city" under the Federal 
Reserve Act, and the authority of the Board of Governors of the 
Federal Reserve System to classify or reclassify cities as "central 
reserve cities" under such Act, are terminated; 
(3) section 5192 of the Revised Statutes of the United States 
(12 U.S.C, sec. 144) is amended by striking out "central reserve 
®
^ ^°*- ^^'^' 
or"; 
(4) section 2 of the Act of March 3,1887 (ch. 378; 24 Stat. 560) 
^^P^^* 
is repealed; 
38 Stat. 262. 
38 Stat. 270. 
264 
PUBUC LAW 86-115-JULY 28, 1959 
[73 STAT. 
(5) the last paragraph of section 2 of the Federal Reserve Act 
38 Stat. 251. 
^ 2 U.S.C, scc. 224) is amended by striking out "and central 
reserve cities"; 
(6) section 11(e) of the Federal Reserve Act (12 U.S.C, sec. 
248e) is amended by striking out "and central reserve" each place 
it appears; 
(7) the third paragraph (lettered (a)) of section 19 of the 
Federal Reserve Act (12 U.S.C, sec. 462) is amended by striking 
out "or central reserve"; 
38 Stat. 270. 
^g^ ^j^^ ^f|.j^ paragraph (lettered (c)) of such section 19 is 
repealed; 
(9) subparagraph (2) of the sixth paragraph of such section 19 
(as added by the first section of this Act) is amended by striking 
out "and a member bank in a central reserve city may hold and 
maintain the reserve balances which are in effect under this section 
for member banks described in paragraph (a) or (b),"; 
It vie 46^. 
(10) ^^^ seventh paragraph of such section 19 is amended by 
striking out clauses (1), (2), (3), and (4) and inserting in lieu 
thereof the following: "(1) by member banks in reserve cities, 
(2) by member banks not in reserve cities, or (3) by all member 
banks"; and 
(11) the seventh paragraph of such section is further amended 
by striking out "and central reserve cities". 
iJ°Lmultes!""' 
^^^- ^- Paragraph (c) of section 5144 of the Revised Statutes (12 
48 Stat. 186.' 
U.S.C. 61 (c)) is amended by inserting before the semicolon at the en'd. 
thereof a period and the following: "In any case in which there is more 
than one holding company affiliate with respect to the same bank or 
group of banks the establishment and maintenance of the reserve of 
readily marketable assets required by this paragraph by only one of 
such holding company affiliates, designated by the Board under such 
conditions as the Board may prescribe, shall constitute compliance 
with such reserve requirement: Provided, That all of the stock of the 
banks affiliated with such holding company affiliates which is directly 
or indirectly owned or controlled by them shall be owned or controlled, 
directly or indirectly, by the one so designated by the Board. This pro-
viso shall not be interpreted as authorizing the Board to require any 
such designated company to own such stock directly". 
Approved July 28, 1959. 
Public Law 86-115 
July 28, 1959 
•'^^ ACT 
[H. R. 6054] 
rj,^ continue until the close of .Tune 30, 1960, the suspension of duties on metal 
scrap, and for other purposes. 
Be it enacted by the Senate and House of Representatives 
of the 
Metal scrap. 
United Statcs of America in Congress assembled, That the first sen-
tence of section 2 of the Act of September 30, 1950 (Public Law 869, 
i9^u^sc^%oi Eighty-first Congress), is hereby amended by striking out "June 30, 
par. 301 note. 
' 1959" and inserting in lieu thereof "June 30, 1960": Provided, 
That 
this Act shall not apply to lead scrap, lead alloy scrap, antimonial lead 
scrap, scrap battery lead or plates, zinc scrap, or zinc alloy scrap, or to 
any form of tungsten scrap, tungsten carbide scrap, or tungsten alloy 
scrap; or to articles of lead, lead alloy, antimonial lead, zinc, or zinc 
alloy, or to articles of tungsten, tungsten carbide, or tungsten alloy, 
imported for remanufacture by melting. 
Nonappiica- 
SEC. 2. This Act shall not apply to any article provided for in section 
68A Stat. 541. 
4541 of the Internal Revenue Code of 1954. 
26 use 4541. 
Approved July 28, 1969.