SUMMARY OF AMENDMENTS

The following summary of amendments to the United States Statutes is given in detail because of their exceptional importance:

Section 8 of the Federal Reserve Act changes the provision in section 5154 of the United States Revised Statutes for conversion of "any bank incorporated by any special law of any State or of the United States, or organized under any general laws of any State or of the United States," into a National bank by reducing stockholders' vote from two-thirds to 51 per cent. of the capital stock. It also enacted that the converted bank shall be subject to the duties prescribed by the Federal Reserve Act as well as by the National bank laws. It omits the provision in said section 5154 that any State bank which is a stockholder in any other bank by authority of State laws may continue to hold its stock after conversion, although either bank or both may be organized under the provisions of the statute relating to National banks. [Line 1, section 8.]

Section 324 of the United States Revised Statutes created a bureau of the Treasury Department charged with the execution of all laws relating to the issue and regulation of National currency secured by United States bonds. The amendment in section 10 of the Federal Reserve Act provides that the bureau shall also be charged with the execution of all laws relating to the Federal reserve notes under the general supervision of the Federal Reserve Board. [Line 28, section 10.]

Section 5202 of the United States Revised Statutes enacted four exceptions to the rule that the indebtedness of a National bank shall not exceed its paid-in and undiminished capital stock. Section 13 of the Federal Reserve Act adds

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another exception, viz.: Liabilities incurred under the provisions of the Federal Reserve Act. [Line 1, section 13.]

Section 5240 of the United States Revised Statutes enacted a fixed rate of compensation for National bank examiners to be assessed by the comptroller upon and paid by the banks examined, in all places, except (a) in the redemption cities specified in section 5192, United States Revised Statutes; (b) in Oregon, California and Nevada and in the territories. In the places named in (a) and (b) the examiners received such compensation as was fixed by the Secretary of the Treasury upon recommendation of the comptroller, the same to be assessed and paid in the manner hereinbefore provided. Section 21 of the Federal Reserve Act changes section 5240 by authorizing the reserve board (a) to fix salaries of all bank examiners upon recommendation of the Comptroller of Currency, the expense of the examinations to be assessed by the comptroller upon the banks examined in proportion to assets or resources held by the banks upon the dates of examination of the various banks; (b) to accept examination of State banks and trust companies by the State authorities; (c) to order special examinations of State banks and trust companies that are stockholders in any federal reserve bank; (d) to examine each federal reserve bank at least once each year; (e) to order special examination of any federal reserve bank upon a joint application of ten member banks; (f) to approve special examinations of member banks by federal reserve banks. Section 21 of the Federal Reserve Act amended section 5240 of the United States Revised Statutes by enacting that "the Comptroller of the Currency, with the approval of the Secretary of the Treasury, shall appoint examiners who shall examine every member bank at least twice in each calendar year and oftener if considered necessary." [Line 57, section 24.]

Section 5153 of the United States Revised Statutes, which was amended by the Act of May 30, 1908, is reënacted

to read as such section read prior to May 30, 1908, subject to the amendments prescribed in this act. That provision was not in so many words amended by the Act of May 30, 1908. It was amended by section 3 of the Act of March 4, 1907, by providing that the Secretary of the Treasury shall make a public statement, on or before January 1 of each year, of the amount of securities other than United States bonds accepted by him against deposits of public moneys in national bank depositories. The Act of March 4, 1907, section 3, also provided that the secretary shall distribute deposits of public moneys, as far as practicable, equitably between the different States and sections. Section 15 of the Act of May 30, 1908, however, by implication amended section 5153 by providing that all National banks designated as depositories of public money shall pay interest upon such deposits at such rate as may be prescribed by the Secretary of the Treasury, "not less, however, than one per cent. per annum upon the average monthly interest," etc. [Line 53, section 27.]

Section 5172 of the United States Revised Statutes, by Act of May 30, 1908, is reenacted to read as such section read prior to May 30, 1908, subject to such amendments as are enacted in this statute. That provision is to the effect that National bank notes shall express upon their face that they are secured by United States bonds. Section 11 of the Act of May 30, 1908, prescribed that National bank notes shall state upon their face that they are secured by United States bonds or other securities. [Line 53, section 27.]

Section 5191 of the United States Revised Statutes, which was amended by the Act of May 30, 1908, is reënacted to read as such section read prior to that date, subject to the modifications mentioned in the Federal Reserve Act. [Line 53, section 27.]

Section 5214 of the United States Revised Statutes fixes a tax upon National bank notes of one-half of one per cent. each half year upon the average amount of such notes in cir

culation. Section 13 of the Act of March 14, 1900, reduces this tax to one-fourth of one per cent. each half year upon the average amount of such notes in circulation as are based upon the deposit of United States bonds bearing interest at the rate of two per cent. per annum issued under the provisions of said act. The Act of December 21, 1905, extended similar privileges to National bank notes secured by United States two per cent. Panama bonds. Section 9 of the Act of May 30, 1908, also amended said section 5214, as amended, by giving the benefit of the lower tax rate to National bank notes secured by Panama two per cent. bonds. [Line 53, section 27.]

Section 9 of the Act of May 30, 1908, changed the tax rates upon additional circulation. That amendment provided that National banks having circulating notes secured otherwise than by bonds of the United States shall pay a tax, upon the average amount in circulation, of five per cent. per annum for the first month, and afterwards an additional tax of one per cent. per annum for each month until a tax of ten per cent. is reached and thereafter ten per cent. Section 27 of the Federal Reserve Act reduces this tax to three per cent. per annum for the first three months and afterwards an additional tax rate of one-half of one per cent. per annum for each month until a tax of six per cent. is reached and thereafter a tax of six per cent. [Line 5, section 27.]

Section 5143 of the United States Revised Statutes provided that National banks may reduce their capital stock with the approval of the comptroller. Section 28 of the Federal Reserve Act reënacts and amends that section. It specifies that such reduction must also be approved by the Reserve Bank Organization Committee, pending the organization of the Federal Reserve Board, and after said organization, by the Federal Reserve Board. [Line 17, section 28.]

Section 27 of the Federal Reserve Act amended section

9 of the Act of May 30, 1908, by reducing the tax rate on the additional circulation. The statute enacted August 4, 1914, also amended section 29 by authorizing the Secretary of the Treasury to suspend the limitations in the Act of May 30, 1908, (a) limiting the privilege of issuing additional circulation to national banks having circulating notes secured by United States bonds outstanding to an amount not less than forty per cent. of their capital stock; (b) limiting total amount of circulating notes outstanding including those secured by United States bonds, to a sum not exceeding their unimpaired capital and surplus; (c) limiting total issue to five hundred millions of dollars. The law adopted August 4, 1914, also enacts that no bank shall issue circulating notes in excess of 125 per cent. of its unimpaired capital and surplus; also, for a gold redemption fund, not less than five per cent., to be maintained in the Treasury by each bank and currency association; for issue of additional currency during the period "for which such provisions are suspended" and for extending benefits of Act of May 30, 1908, to all qualified State banks and trust companies "which have joined the Federal Reserve System or which may contract to join within fifteen days after the passage of this act." [Line 4, section 27.

The civil service statute, enacted January 16, 1883, does not apply to appointment of attorneys, or other employees of the Federal Reserve Board. [Line 1, section 11.]

Certain sections of the United States Revised Statutes amended by Act of May 30, 1908, were reënacted to read as they read prior to May 30, 1908. [Line 3, section 27.]