Слике страница
PDF
ePub

act as its official representative for the performance of the functions conferred upon it by this Act. He shall receive an annual compensation to be fixed by the Fed. Res. Board and paid monthly by the Fed. Res. bank to which he is designated. One of the directors of class C shall be appointed by the Fed. Res. Board as deputy chairman to exercise the powers of the chairman of the board when necessary. In case of the absence of the chairman and deputy chairman, the third class C director shall preside at meetings of the board.

Subject to the approval of the Fed. Res. Board, the Fed. Res. agent shall appoint one or more assistants. Such assistants, who shall be persons of tested banking experience, shall assist the Fed. Res. agent in the performance of his duties and shall also have power to act in his name and stead during his absence or disability. The Fed. Res. Board shall require such bonds of the assistant Fed. Res. agents as it may deem necessary for the protection of the U. S. Assistants to the Fed. Res. agent shall receive an annual compensation, to be fixed and paid in the same manner as that of the Fed. Res. agent.

Directors of Fed. Res. banks shall receive, in addition to any compensation otherwise provided, a reasonable allowance for necessary expenses in attending meetings of their respective boards, which amount shall be paid by the respective Fed. Res. banks. Any compensation that may be provided by boards of directors of Fed. Res. banks for directors, officers or employees shall be subject to the approval of the Fed. Res. Board.

The Reserve Bank Organization Committee may, in organizing Fed. Res. banks, call such meetings of bank directors in the several Dists. as may be necessary to carry out the purposes of this Act, and may exercise the functions herein conferred upon the chairman of the board of directors of each Fed. Res. bank pending the complete organization of such bank.

At the first meeting of the full board of directors of each Fed. Res. bank, it shall be the duty of the directors of classes A, B and C, respectively, to designate one of the members of each class whose term of office shall expire in one year from the 1st of Jan. nearest to date of such meeting, one whose term of office shall expire at the end of 2 years from said date, and one whose term of office shall expire at the end of 3 years from said date. Thereafter every director of a Fed. Res. bank chosen as hereinbefore provided shall hold office for a term of 3 years. Vacancies that may occur in the several classes of directors of Fed. Res. banks may be filled in the manner provided for the original selection of such directors, such appointees to hold office for the unexpired terms of their predecessors.

STOCK ISSUES; INCREASE AND DECREASE OF CAPITAL

SEC. 5. The capital stock of each Fed. Res. bank shall be divided into shares of $100 each. The outstanding capital stock shall be increased from time to time as member banks increase their capital stock and surplus or as additional banks become members, and may be decreased as member banks reduce their capital stock or surplus or cease to be members. Shares of the capital stock of Fed. Res. banks owned by member banks shall not be transferred or hypothecated. When a member bank increases its capital stock or surplus, it shall thereupon subscribe for an additional amount of capital stock of the Fed. Res. bank of its Dist. equal to 6% of the said increase, of said subscription to be paid in the manner hereinbefore provided for original subscription, and subject to call of the Fed. Res. Board. A bank applying for stock in a Fed. Res. bank at any time after the organization thereof must subscribe for an amount of the capital stock of the Fed. Res. bank equal to 6% of the paid-up capital stock and surplus of said applicant bank paying therefor its par value plus % a month from the period of the last Div. When the capital stock of any Fed. Res. bank shall have been increased either on account of the increase of capital stock of member banks or on account of the increase in the number of

member banks, the board of directors shall cause to be executed a C't'f. to the Comptroller of the Currency showing the increase in capital stock, the amount paid in, and by whom paid. When a member bank reduces its capital stock it shall surrender a proportionate amount of its holdings in the capital of said Fed. Res. bank, and when a member bank voluntarily liquidates it shall surrender all of its holdings of the capital stock of said Fed. Res. bank and be released from its stock subscription not previously called. In either case the shares surrendered shall be canceled and the member bank shall receive in payment therefor, under regulations to be prescribed by the Fed. Res. Board, a sum equal to its cash-paid subscriptions on the shares surrendered and % a month from the period of the last Div., not to exceed the book value thereof, less any liability of such member bank to the Fed. Res. bank.

SEC. 6. If any member bank shall be declared insolvent and a receiver appointed therefor, the stock held by it in said Fed. Res. bank shall be canceled, without impairment of its liability, and all cash-paid subscriptions on said stock, with 1% per month from the period of last Div., not to exceed the book value thereof, shall be first applied to all debts of the insolvent member bank to the Fed. Res. bank, and the balance, if any, shall be paid to the receiver of the insolvent bank. Whenever the capital stock of a Fed. Res. bank is reduced, either on account of a reduction in capital stock of any member bank or of the liquidation or insolvency of such bank, the board of directors shall cause to be executed a C't'f. to the Comptroller of the Currency showing such reduction of capital stock and the amount repaid to such bank.

DIVISION OF EARNINGS

SEC. 7. After all necessary expenses of a Fed. Res. bank have been paid or provided for, the stockholders shall be entitled to receive an annual Div. of 6% on the paid-in capital stock, which Div. shall be cumulative. After the aforesaid dividend claims have been fully met, all the net earnings shall be paid to the U. S. as a franchise tax, except that of such net earnings shall be paid into a surplus fund until it shall amount to 40% of the paid-in capital stock of such bank.

The net earnings derived by the U. S. from Fed. Res. banks shall, in the discretion of the Secy., be used to supplement the gold reserve held against outstanding U. S. notes, or shall be applied to the reduction of the outstanding bonded debt of the U. S. under regulations to be prescribed by the Secy. of the Treas. Should a Fed. Res. bank be dissolved or go into liquidation, any surplus remaining, after the payment of all debts, Div. requirements as hereinbefore provided, and the par value of the stock, shall be paid to and become the property of the U. S. and shall be similarly applied.

Fed. Res. banks, including the capital stock and surplus therein, and the income derived therefrom shall be exempt from Federal, State, and local taxation, except taxes upon real estate.

SEC. 8. Sec. 5154, U. S. Rev. Sts., is hereby amended to read as follows: Any bank incorporated by special law of any State or of the U. S. or organized under the general laws of any State or of the U. S. and having an unimpaired capital sufficient to entitle it to become a Nat. B'k'g. Asso. under the provisions of the existing laws may, by the vote of the shareholders owning not less than 51% of the capital stock of such bank or B'k'g. Asso., with the approval of the Comptroller of the Currency be converted into a Nat. B'k'g. Asso., with any name approved by the Comptroller of the Currency:

Provided, however, That said conversion shall not be in contravention of the State law. In such case the Arts. of Asso. and organization C't'f. may be executed by a majority of the directors of the bank or B'k'g. Inst., and the C't'f. shall declare that the owners of 51% of the capital stock have

authorized the directors to make such C't'f. and to change or convert the bank or B'k'g. Inst. into a Nat. Asso. A majority of the directors, after executing the Arts. of Asso. and the organization C't'f., shall have power to execute all other papers and to do whatever may be required to make its organization perfect and complete as a Nat. Asso. The shares of any such bank may continue to be for the same amount each as they were before the conversion, and the directors may continue to be directors of the Asso. until others are elected or appointed in accordance with the provisions of the statutes of the U. S. When the Comptroller has given to such bank or B'k'g. Asso. a C't'f. that the provisions of this Act have been complied with, such bank or B'k'g. Asso., and all its stockholders, officers, and employees, shall have the same powers and privileges, and shall be subject to the same duties, liabilities, and regulations, in all respects, as shall have been prescribed by the Fed. Res. Act and by the Nat. B'k'g. Act for Assos. originally organized as national banking Assos.

STATE BANKS AS MEMBERS

SEC. 9. Any bank incorporated by special law of any State, or oganized under the general laws of any State or of the U. S., desiring to become a member of the Fed. Res. System, may make application to the Fed. Res. Board, under such rules and regulations as it may prescribe, for the right to subscribe to the stock of the Fed. Res. bank organized within the Dist. in which the applying bank is located. Such application shall be for the same amount of stock that the applying bank would be required to subscribe to as a Nat. bank. The Fed. Res. Board, subject to such conditions as it may prescribe, may permit the applying bank to become a stockholder of such Fed. Res. bank.

In acting upon such applications the Fed. Res. Board shall consider the financial condition of the applying bank, the general character of its management, and whether or not the corporate powers exercised are consistent with the purposes of this Act.

Whenever the Fed. Res. Board shall permit the applying bank to become a stockholder in the Fed. Res. bank of the Dist. its stock subscription shall be payable on call of the Fed. Res. Board, and stock issued to it shall be held subject to the provisions of this Act.

All banks admitted to membership under authority of this Sec. shall be required to comply with the reserve and capital requirements of this Act and to conform to those provisions of law imposed on Nat. banks which prohibit such banks from lending on or purchasing their own stock, which relate to the withdrawal or impairment of their capital stock, and which relate to the payment of unearned Divs. Such banks and the officers, agents, and employees thereof shall also be subject to the provisions of and to the penalties prescribed by Sec. 5209 of the Rev. Sts., and shall be required to make reports of condition and of the payment of Divs. to the Fed. Res. bank of which they become a member. Not less than 3 of such reports shall be made annually on call of the Fed. Res. bank on dates to be fixed by the Fed. Res. Board. Failure to make such reports within 10 days after the date they are called for shall subject the offending bank to a penalty of $100 a day for each day that it fails to transmit such report; such penalty to be collected by the Fed. Res. bank by suit or otherwise.

As a condition of membership such banks shall likewise be subject to examinations made by direction of the Fed. Res. Board or of the Fed. Res. bank by examiners selected or approved by the Fed. Res. Board.

Whenever the directors of the Fed. Res. bank shall approve the examinations made by the State authorities, such examinations and the reports thereof may be accepted in lieu of examinations made by examiners selected or approved by the Fed. Res. Board: Provided, however, That when it deems it necessary the board may order special examina

tions by examiners of its own selection and shall in all cases approve the form of the report. The expenses of all examinations, other than those made by State authorities, shall be assessed against and paid by the banks examined.

If at any time it shall appear to the Fed. Res. Board that a member bank has failed to comply with the provisions of this Sec. or the regulations of the Fed. Res. Board made pursuant thereto, it shall be within the power of the board after hearing to require such bank to surrender its stock in the Fed. Res. bank and to forfeit all rights and privileges of membership. The Fed. Res. Board may restore membership upon due proof of compliance with the conditions imposed by this Sec.

Any State bank or Tr. Co. desiring to withdraw from membership in a Fed. Res. bank may do so, after 6 months' written notice shall have been filed with the Fed. Res. Board, upon the surrender and cancellation of all of its holdings of capital stock in the Fed. Res. bank: Provided, however, That no Fed. Res. bank shall, except under express authority of the Fed. Res. Board, cancel within the same calendar year more than 25% of its capital stock for the purpose of effecting voluntary withdrawals during that year. All such applications shall be dealt with in the order in which they are filed with the board. Whenever a member bank shall surrender its stock holdings in a Fed. Res. bank, or shall be ordered to do so by the Fed. Res. Board, under authority of law, all of its rights and privileges as a member bank shall thereupon cease and determine, and after due provision has been made for any debt due or to become due to the Fed. Res. bank it shall be entitled to a refund of its cash-paid subscription with Int. at the rate of of 1% per month from date of last Div., if earned, the amount refunded in no event to exceed the book value of the stock at that time, and shall likewise be entitled to repayment of deposits and of any other balance due from the Fed. Res. bank. No applying bank shall be admitted to membership in a Fed. Res. bank unless it possesses a paid-up, unimpaired capital sufficient to entitle it to become a Nat. B'k'g. Asso. in the place where it is situated under the provisions of the Nat.-bank Act.

Banks becoming members of the Fed. Res. System under authority of this Sec. shall be subject to the provisions of this Sec. and to those of this Act which relate specifically to member banks, but shall not be subject to examination under the provisions of the first 2 paragraphs of Sec. 5240 of the Rev. Sts. as amended by Sec. 21 of this Act. Subject to the provisions of this Act and to the regulations of the board made pursuant thereto, any bank becoming a member of the Fed. Res. System shall retain its full charter and statutory rights as a State bank or Tr. Co., and may continue to exercise all corporate powers granted it by the State in which it was created, and shall be entitled to all privileges of member banks: Provided, however, That no Fed. Res. bank shall be permitted to discount for any State bank or Tr. Co. notes, drafts, or bills of exchange of any one borrower who is liable for borrowed money to such State bank or Tr. Co. in an amount greater than 10% of the capital and surplus of such State bank or Tr. Co., but the discount of bills of exchange drawn against actually existing value and the discount of commercial or business paper actually owned by the person negotiating the same shall not be considered as borrowed money within the meaning of this Sec. The Fed. Res. bank, as a condition of the discount of notes, drafts, and bills of exchange for such State bank or Tr. Co., shall require a C't'f. or guaranty to the effect that the borrower is not liable to such bank in excess of the amount provided by this Sec., and will not be permitted to become liable in excess of this amount while such notes, drafts, or bills of exchange are under discount with the Fed. Res. bank.

It shall be unlawful for any officer, clerk, or agent of any bank admitted to membership under authority of this Sec. to certify any check drawn upon such bank unless the person or Co. drawing the check has on de

[ocr errors]

posit therewith at the time such check is certified an amount of money equal to the amount specified in such check. Any check so certified by duly authorized officers shall be a good and valid obligation against such bank, but the act of any such officer, clerk, or agent in violation of this Sec. may subject such bank to a forfeiture of its membership in the Fed. Res. System upon hearing by the Fed. Res. Board.

FEDERAL RESERVE BOARD

SEC. 10. A Fed. Res. Board is hereby created which shall consist of 7 members, including the Secy. of the Treas. and the Comptroller of the Currency, who shall be members ex officio, and 5 members appointed by the Pres. of the U. S., by and with the advice and consent of the Senate. In selecting the 5 appointive members of the Fed. Res. Board, not more than one of whom shall be selected from any one Fed. Res. Dist., the Pres. shall have due regard to a fair representation of the different commercial, industrial and geographical Divs. of the country. The 5 members of the Fed. Res. Board appointed by the Pres. and confirmed as aforesaid shall devote their entire time to the business of the Fed. Res. Board and shall each receive an annual salary of $12,000, payable monthly together with actual necessary traveling expenses, and the Comptroller of the Currency, as ex efficio member of the Fed. Res. Board, shall, in addition to the salary now paid him as Comptroller of the Currency, receive the sum of $7,000 annually for his services as a member of said Board.

The members of said board, the Secy. of the Treas., the Asst. Secys. of the Treas., and the Comptroller of the Currency shall be ineligible during the time they are in office and for 2 years thereafter to hold any office, position, or employment in any member bank. Of the 5 members thus appointed by the Pres. at least 2 shall be persons experienced in banking or finance. One shall be designated by the Pres. to serve for 2, one for 4, one for 6, one for 8, and one for 10 years, and thereafter each member so appointed shall serve for a term of 10 years unless sooner removed for cause by the Pres. Of the 5 persons thus appointed, one shall be designated by the Pres. as governor and one as Vice-Gov. of the Fed. Res. Board. The Gov. of the Fed. Res. Board, subject to its supervision, shall be the active executive officer. The Secy. of the Treas. may assign offices in the Dept. of the Treas. for the use of the Fed. Res. Board. Each member of the Fed. Res. Board shall within 15 days after notice of appointment make and subscribe to the oath of office.

The Fed. Res. Board shall have power to levy semiannually upon the Fed. Res. banks, in proportion to their capital stock and surplus, an assessment sufficient to pay its estimated expenses and the salaries of its members and employees for the year succeeding the levying of such assessment, together with any deficit carried forward from the preceding year.

The first meeting of the Fed. Res. Board shall be held in Washington, D. C., as soon as may be after the passage of this Act, at a date to be fixed by the Reserve Bank Organization Committee. The Secy. of the Treas. shall be ex officio chairman of the Fed. Res. Board. No member of the Fed. Res. Board shall be an officer or director of any bank, B'k'g. Inst., Tr. Co., or Fed. Res. bank nor hold stock in any bank, B'k'g. Inst., or Tr. Co.; and before entering upon his duties as a member of the Fed. Res. Board he shall certify under oath to the Secy. of the Treas. that he has complied with this requirement. Whenever a vacancy shall occur, other than by expiration of term, among the 5 members of the Fed. Res. Board appointed by the Pres., as above provided, a successor shall be appointed by the Pres., with the advice and consent of the Senate, to fill such vacancy, and when appointed he shall hold office for the unexpired term of the member whose place he is selected to fill.

The Pres. shall have power to fill all vacancies that may happen on the Fed. Res. Board during the recess of the Senate, by granting commissions which shall expire 30 days after the next session of the Senate convenes.

« ПретходнаНастави »