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[PUBLIC L A W 9 0 5 — 8 0 T H CONGKESS]
[CHAPTER 8 3 6 — 2 D

SESSION]

[S. J. Kes. 157]
JOINT RESOLUTION
To aid in protecting the Nation's economy against inflationary pressures..

Resolved by the Senate and House of Representatives of the United
States of America in Congress assembled. That in order to protect the
Nation's monetary, banking, and credit structure, and interstate and
foreign commerce, against increased inflationary pressures, the Board
of Governors of the Federal Reserve System are authorized, notwithstanding the Act of August 8,1947 (Public Law 386, Eightieth Congress), to exercise, up to and including June 30,1949, consumer-credit
controls in accordance with and to carry out the purposes of Executive
Order Numbered 8843 (August 9,1941) insofar as it relates to installment credit.
All the present provisions of sections 21 and 27 of the Securities
Exchange Act of 1934, as amended (relating to investigations, injunctions, jurisdictions, and other matters), shall be as fully applicable
with respect to the exercise by the Board of Governors of consumer
installment credit controls as they are now applicable with respect to
the exercise by the Securities' and Exchange Commission of its functions under that Act, and the Board shall have the same powers in the
exercise of such consumer installment credit controls as the Commission now has under the said sections.
SEC. 2. Section 19 of the Federal Reserve Act, as amended, is
amended by inserting after the sixth paragraph thereof the following
new paragraph:
"Notwithstanding any other provision of law, the Board of Governors of the Federal Reserve System, in order to prevent injurious
credit expansion, may bv regulation change the requirements as to
reserves to be maintained pursuant to this section against demand or
time deposits or both (1) by member banks in central reserve cities,
or (2) by member banks in reserve cities, or (3) by member banks not
in reserve or central reserve cities, or (4) by all member banks; but
no such change shall have the effect of requiring any such member
bank to maintain a reserve balance against its time deposits in an
amount equal to more than 7V£ per centum thereof, or a reserve balance
against its demand deposits in an amount equal to more than 30 per
centum thereof if such bank is in a central reserve city, 24 per centum
thereof if in a reserve city, or 18 per centum thereof if not in a reserve
or central reserve city. No change in reserve requirements made
under authority of this paragraph shall continue in effect after June 30,
1949."
Approved August 16, 1948.