Full text of Mimeograph Letters and Statements of the Board : Congressional Bill, re Annual Tax on Checks Paid by Banks and Collected Through Other Banks, Neither Bank Operating Under Federal Reserve Act, Number X-68, Volume 5, Page 2228

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X-63

BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES
OF THE UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED.

"That every bank,, banking association, and trust com­
pany authorized by the laws of the United States or of any State
to receive money on deposit subject to check shall pay an annual
tax of one-tenth of one per cent on the ggregate amount of
checks paid by it during each fiscal year which bear the indorse­
ment of or which are collected through any other bank, banking
association, trust company, or private banker located outside of
the State in which such checks are made payable, and every bank,
banking association, and trust company shall make a return at
the end of each quarterly period to the Collector of Internal
Revenue showing the aggregate amount of such checks paid during
that quarter, such return being verified by the oath of at least
two of its officers, PROVIDED, however, That this tax shall not
apply to any Federal reserve bank or member bank of any Federal
reserve bank, or to any nonmember bank or trust company which
carries and maintains a collection or exchange account with any
Federal reserve bank under authority of Section 3 of this Act.
"Section 2,
Any Federal reserve bank, solely for the
purposes of exchange or.of collection, may receive from any non­
member bank or trust company deposits of current funds in lawful
money, national bank notes, Federal reserve notes, checks and
drafts payable upon presentation, or maturing notes and bills:
Provided, such nonmember bank or trust company maintains with
the Federal reserve bank of its district, under such rules and
regulations as the Federal reserve board, may prescribe, a bal­
ance in an amount to be determined by such Board, but in no
event to exceed the amount of reserves which it would be re­
quired to maintain with its Federal reserve bank if it were a
member bank, and, Provided, further, That such nonmember bank
or trust company agrees to comply with the provisions of law
and the regulations of the Federal Reserve Board relating to
the collection or clearance of checks, drafts, notes, and bills
through Federal reserve banks."

4/4/17