Nothing in this Act contained shall be construed as taking away any powers heretofore vested by law in the Secy. of the Treas. which relate to the supervision, management, and control of the Treas. Dept. and bureaus under such Dept. and wherever any power vested by this Act in the Fed. Res. Board or the Fed. Res. agent appears to conflict with the powers of the Secy. of the Treas., such powers shall be exercised subject to the supervision and control of the Secy.

The Fed. Res. Board shall annually make a full report of its operations to the Speaker of the House of Representatives, who shall cause the same to be printed for the information of the Congress.

Sec. 324 of the Rev. Sts. of the U. S. shall be amended so as to read as follows: There shall be in the Dept. of the Treas. a bureau charged with the execution of all laws passed by Congress relating to the issue and regulation of Nat. currency secured by U. S. bonds and, under the general supervision of the Fed. Res. Board, of all Fed. Res. notes, the chief officer of which bureau shall be called the Comptroller of the Currency and shall perform his duties under the general directions of the Secy. of the Treas. SEC. 11. The Fed. Res. Board shall be authorized and empowered: (a) To examine at its discretion the accounts, books and affairs of each Fed. Res. bank and of each member bank and to require such statements and reports as it may deem necessary. The said board shall publish once each week a statement showing the condition of each Fed. Res. bank and a consolidated statement for all Fed. Res. banks. Such statements shall show in detail the assets and liabilities of the Fed. Res. banks, single and combined, and shall furnish full information regarding the character of the money held as reserve and the amount, nature and maturities of the paper and other investments owned or held by Fed. Res. banks.

(b) To permit, or, on the affirmative vote of at least 5 members of the Res. Board to require Fed. Res. banks to rediscount the discounted paper of other Federal Res. banks at rates of interest to be fixed by the Fed. Res. Board. (c) To suspend for a period not exceeding 30 days, and from time to time to renew such suspension for periods not exceeding 15 days, any reserve requirement specified in this Act: Provided, That it shall establish a graduated tax upon the amounts by which the reserve requirements of this Act may be permitted to fall below the level hereinafter specified: And provided further, That when the gold reserve held against Fed. Res. notes falls below 40%, the Fed. Res. Board shall establish a graduated tax of not more than 1% per annum upon such deficiency until the reserves fall to 321%, and when said reserve falls below 321%, a tax at the rate increasingly of not less than 1% per annum upon each 21% or fraction thereof that such reserve falls below 321%. The tax shall be paid by the reserve bank, but the reserve bank shall add an amount equal to said tax to the rates of Int. and Dis. fixed by the Fed. Res. Board.

(d) To supervise and regulate through the bureau under the charge of the Comptroller of the Currency the issue and retirement of Fed. Res. notes, and to prescribe rules and regulations under which such notes may be delivered by the Comptroller to the Fed. Res. agents applying therefor. (e) To add to the number of cities classified as reserve and centralreserve cities under existing law in which Nat. B'k'g. Assos. are subject to the reserve requirements set forth in Sec. 20 of this Act; or to reclassify existing reserve and central reserve cities or to terminate their designation as such. (f) To suspend or remove any officer or director of any Fed. Res. bank, the cause of such removal to be forthwith communicated in writing by the Fed. Res. Board to the removed officer or director and to said bank.

(g) To require the writing off of doubtful or worthless assets upon the books and balance sheets of Fed. Res. banks.

(h) To suspend, for the violation of any of the provisions of this Act, the operations of any Fed. Res. bank, to take possession thereof, administer the same during the period of suspension, and, when deemed advisable, to liquidate or reorganize such bank.

(i) To require bonds of Fed. Res. agents, to make regulations for the safeguarding of all collateral, bonds, Fed. Res. notes, money or property of any kind deposited in the hands of such agents, and said board shall perform the duties, functions, or services specified in this Act, and make all rules and regulations necessary to enable said board effectively to perform the same.

(j) To exercise general supervision over said Fed. Res. banks.

(k) To grant by special permit to Nat. banks applying therefor, when not in contravention of State or local law, the right to act as trustee, executor, administrator, or registrar of stocks and bonds under such rules and regulations as the said board may prescribe.

(1) To employ such attorneys, experts, assistants, clerks, or other employees as may be deemed necessary to conduct the business of the board. All salaries and fees shall be fixed in advance by said board and shall be paid in the same manner as the salaries of the members of said board. All such attorneys, experts, assistants, clerks, and other employees shall be appointed without regard to the provisions of the Act of Jan. 16, 1883 (Vol. 22, U. S. Sts. at Large, page 403), and amendments thereto, or any rule or regulation made in pursuance thereof: Provided, That nothing herein shall prevent the Pres. from placing said employees in the classified service.

(m) Upon the affirmative vote of not less than 5 of its members the Fed. Res. Board shall have power, from time to time, by general ruling, covering all Dists. alike, to permit member banks to carry in the Fed. Res. banks of their respective Dists. any portion of their reserves now required by Sec. 19 of this Act to be held in their own vaults.

FEDERAL ADVISORY COUNCIL

SEC. 12. There is hereby created a Federal Advisory Council, which shall consist of as many members as there are Fed. Res. Ďists. Each Fed. Res. bank by its board of directors shall annually select from its own Fed. Res. Dist. one member of said council, who shall receive such compensation and allowances as may be fixed by his board of directors subject to the approval of the Fed. Res. Board. The meetings of said advisory council shall be held at Washington, D. C., at least 4 times each year, and oftener if called by the Fed. Res. Board. The council may in addition to the meetings above provided for hold such other meetings in Washington, D. C., or elsewhere, as it may deem necessary, may select its own officers and adopt its own methods of procedure, and a majority of its members shall constitute a quorum for the transaction of business. Vacancies in the council shall be filled by the respective reserve banks, and members selected to fill vacancies, shall serve for the unexpired term.

The Fed. Adv. Council shall have power, by itself or through its officers, (1) to confer directly with the Fed. Res. Board on general business conditions; (2) to make oral or written representations concerning matters within the jurisdiction of said board; (3) to call for information and to make recommendations in regard to discount rates, rediscount business, note issues, reserve conditions in the various Dists., the purchase and sale of gold or securities by reserve banks, open-market operations by said banks, and the general affairs of the reserve banking system.

POWERS OF FEDERAL RESERVE BANKS

SEC. 13. Any Fed. Res. bank may receive from any of its member banks, and from the U. S., deposits of current funds in lawful money, Nat.-bank notes, Fed. Res. notes, or checks, and drafts, payable upon presentation, and also, for collection, maturing notes and bills; or solely for purposes of exchange or of collection, may receive from other Fed. Res. banks deposits of current funds in lawful money, Nat.-bank notes, or checks upon other Fed. Res. banks, and checks and drafts, pay

able upon presentation within its Dist., and maturing notes and bills payable within its Dist.; or, solely for the purposes of exchange or of collection, may receive from any nonmember bank or Tr. Co. deposits of current funds in lawful money, Nat.-bank notes, Fed. Res. notes, checks and drafts payable upon presentation, or maturing notes and bills: Provided, Such nonmember bank or Tr. Co. maintains with the Fed. Res. bank of its Dist. a balance sufficient to offset the items in transit held for its account by the Fed. Res. bank: Provided further, That nothing in this or any other Sec. of this Act shall be construed as prohibiting a member or nonmember bank from making reasonable charges, to be determined and regulated by the Fed. Res. Board, but in no case to exceed 10 cents per $100 or fraction thereof, based on the total of checks and drafts presented at any one time, for collection or payment of checks and drafts and remission therefor by exchange or otherwise; but no such charges shall be made against the Fed. Res. banks.

Upon the indorsement of any of its member banks, which shall be deemed a waiver of demand, notice and protest by such bank as to its own indorsement exclusively, any Fed. Res. bank may discount notes, drafts, and bills of exchange arising out of actual commercial transactions; that is, notes, drafts, and bills of exchange issued or drawn for agricultural, industrial, or commercial purposes, or the proceeds of which have been used, or are to be used, for such purposes, the Fed. Res. 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 agricultural products, or other goods, wares, or merchandise from being eligible for such discount; but such definition shall not include notes, drafts, or bills covering merely investments or issued or drawn for the purpose of carrying or trading in stocks, bonds, or other Inv. securities, except bonds and notes of the Govt. of the U. S. Notes, drafts, and bills admitted to discount under the terms of this paragraph must have a maturity at the time of discount of not more than 90 days, exclusive of days of grace: Provided, That notes, drafts, and bills drawn or issued for agricultural purposes or based on live stock and having a maturity not exceeding 6 months, exclusive of days of grace, may be discounted in an amount to be limited to a percentage of the assets of the Fed. Res. bank, to be ascertained and fixed by the Fed. Res. Board.

The aggregate of such notes, drafts, and bills bearing the signature or indorsement of any one borrower, whether a person, Co., firm, or Corp., rediscounted for any one bank shall at no time exceed 10% of the unimpaired capital and surplus of said bank; but this restriction shall not apply to the discount of bills of exchange drawn in good faith against actually existing values.

Any Fed. Res. bank may discount acceptances of the kinds hereinafter described, which have a maturity at the time of discount of not more than 3 months' sight, exclusive of days of grace, and which are indorsed by at least one member bank.

Any member bank may accept drafts or bills of exchange drawn upon it having not more than 6 months' sight to run, exclusive of days of grace, which grow out of transactions involving the importation or exportation of goods; or which grow out of transactions involving the domestic shipment of goods provided shipping documents conveying or securing title are attached at the time of acceptance; or which are secured at the time of acceptance by a warehouse receipt or other such document conveying or securing title covering readily marketable staples. No member bank shall accept, whether in a foreign or domestic transaction, for any one person, Co., firm, or Corp. to an amount equal at any time in the aggregate to more than 10% of its paid-up and unimpaired capital stock and surplus unless the bank is secured either by attached documents or by some other actual security growing out of the same transaction as the acceptance and

no bank shall accept such bills to an amount equal at any time in the aggregate to more than of its paid-up and unimpaired capital stock and surplus; Provided, however, That the Fed. Res. Board, under such general regulations as it may prescribe, which shall apply to all banks alike regardless of the amount of capital stock and surplus, may authorize any member bank to accept such bills to an amount not exceeding at any time in the aggregate 100% of its paid-up and unimpaired capital stock and surplus: Provided, further, That the aggregate of acceptances growing out of domestic transactions shall in no event exceed 50% of such capital stock and surplus.

Any Fed. Res. bank may make advances to its member banks on their promissory notes for a period not exceeding 15 days at rates to be established by such Fed. Res. banks, subject to the review and determination of the Fed. Res. Board, provided such promissory notes are secured by such notes, drafts, bills of exchange, or bankers' acceptances as are eligible for rediscount or for purchase by Fed. res. banks under the provisions of this Act, or by the deposit or pledge of bonds or notes of the U. S.

Sec. 5202 of the Rev. Sts. of the the U. S. is hereby amended so as to read as follows: No Nat. B'k'g. Asso. shall at any time be indebted, or in any way liable, to an amount exceeding the amount of its capital stock at such time actually paid in and remaining undiminished by losses or otherwise, except on account of demands of the nature following:

1st. Notes of circulation.

2d. Moneys deposited with or collected by the Asso.

3d. Bills of exchange or drafts drawn against money actually on deposit to the credit of the Asso., or due thereto.

. 4th. Liabilities to the stockholders of the Asso. for Divs. and reserve profits.

5th. Liabilities incurred under the provisions of the Fed. Res. Act.

The discount, and rediscount and the purchase and sale by any Fed. Res. bank of any bills receivable and of domestic and foreign bills of exchange, and of acceptances authorized by this Act, shall be subject to such restrictions, limitations, and regulations as may be imposed by the Fed. Res. Board.

That in addition to the powers now vested by law in Nat. B'k'g. Assos. organized under the laws of the U. S. any such Asso. located and doing business in any place the population of which does not exceed 5000 inhabitants, as shown by the last preceding decennial census, may, under such rules and regulations as may be prescribed by the Comptroller of the Currency, act as the agent for any fire, life, or other Ins. Co. authorized by the authorities of the State in which said bank is located to do business in said State, by soliciting and selling Ins. and collecting premiums on policies issued by such Co.; and may receive for services so rendered such fees or commissions as may be agreed upon between the said Asso. and the Ins. Co. for which it may act as agent; and may also act as the broker or agent for others in making or procuring loans on real estate located within 100 miles of the place in which said bank may be located, receiving for such services a reasonable fee or commission: Provided, however, That no such bank shall in any case guarantee either the principal or Int. of any such loans or assume or guarantee the payment of any premium on Ins. policies issued through its agency by its principal: And provided further, That the bank shall not guarantee the truth of any statement made by an assured in filing his application for insurance.

Any member bank may accept drafts or bills of exchange drawn upon it having not more than 3 months' sight to run, exclusive of days of grace, drawn under regulations to be prescribed by the Fed. Res. Board by banks or bankers in foreign countries or dependencies or insular possessions of the U. S. for the purpose of furnishing dollar exchange as required by the usages of trade in the respective countries, dependencies, or insular possessions. Such drafts or bills may be acquired by Fed. Res. banks in such

amounts and subject to such regulations, restrictions, and limitations as may be prescribed by the Fed. Res. Board: Provided, however, That no member bank shall accept such drafts or bills of exchange referred to in this paragraph for any one bank to an amount exceeding in the aggregate 10% of the paid-up and unimpaired capital and surplus of the accepting bank unless the draft or bill of exchange is accompanied by documents conveying or securing title or by some other adequate security: Provided further, That no member bank shall accept such drafts or bills in an amount exceeding at any time the aggregate of of its paid-up and unimpaired capital and surplus.

OPEN-MARKET OPERATIONS

SEC. 14. Any Fed. Res. bank may, under rules and regulations prescribed by the Fed. Res. Board, purchase and sell in the open market, at home or abroad, either from or to domestic or foreign banks, firms, Corps., or individuals, cable transfers and bankers' acceptances and bills of exchange of the kinds and maturities by this Act made eligible for rediscount, with or without the indorsement of a 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 Fed. Res. notes for gold, gold coin, or gold C't'fs., and to contract for loans of gold coin or bullion, giving therefor, when necessary, acceptable security, including the hypothecation of U. S. bonds or other securities which Fed. Res. banks are authorized to hold;

(b) To buy and sell, at home or abroad, bonds and notes of the U. S., and bills, notes, revenue bonds, and warrants with a maturity from date of purchase of not exceeding 6 months, issued in anticipation of the collection of taxes or in anticipation of the receipt of assured revenues by any State, county, Dist., political Subdiv., or municipality in the continental U. S., including irrigation, drainage and reclamation Dists., such purchases to be made in accordance with rules and regulations prescribed by the Fed. Res. Board;

(c) To purchase from member banks and to sell, with or without its indorsement, bills of exchange arising out of commercial transactions, as hereinbefore defined;

(d) To establish from time to time, subject to review and determination of the Fed. Res. Board, rates of discount to be charged by the Fed. Res. bank for each class of paper, which shall be fixed with a view of accommodating commerce and business;

(e) To establish accounts with other Fed. Res. banks for exchange purposes and, with the consent or upon the order and direction of the Fed. Res. Board and under regulations to be prescribed by said board, to open and maintain accounts in foreign countries, appoint correspondents, and establish agencies in such countries wheresoever it may deem best for the purpose of purchasing, selling, and collecting bills of exchange, and to buy and sell, with or without its indorsement, through such correspondents or agencies, bills of exchange (or acceptances) arising out of actual commercial transactions which have not more than ninety days to run, exclusive of days of grace, and which bear the signature of two or more responsible parties, and, with the consent of the Fed. Res. Board, to open and maintain banking accounts for such foreign correspondents or agencies. Whenever any such account has been opened or agency or correspondent has been appointed by a Fed. Res. bank, with the consent of or under the order and direction of the Fed. Res. Board, any other Fed. Res. bank may, with the consent and approval of the Fed. Res. Board, be permitted to carry on or conduct, through the Fed. Res. bank opening such account or appointing such agency or correspondent, any transaction authorized by this Sec. under rules and regulations to be prescribed by the board.