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X-7821 BY-LAWS OF THE FEDERAL RESERVE BOARD AS AMENDED MARCH 8, 1934. Article I. The Chairman* The Secretary of the Treasury, as Chairman of the Board, shall preside at all meetings when present# In the absence of the Chairman, the Governor shall act as presiding officer. In the ab- sence of both the Chairman and the Governor, the Yice-Governor shall preside, and in the absence of all three such officers, the remaining member of the Executive Committee shall preside. Article II. The Governor. Sec. 1. The Governor of the Federal Reserve Board shall be the active executive officer thereof; subject, however, to the supervision of the Board and to such rules and regulations as may be incorporated herein or may from time to time, by resolution, be established. Sec. 2. The Governor shall have general charge of the executive and routine business of the Board not specifically assigned under the by-laws or by resolution of the Board to any individual member or committee thereof, and shall have supervision of the Board's staff• Sec. 3. The Governor shall be an ex-officio member of —2— X-7821 all Standing Committees of the Board. Article III. The Vice-Governor. See. 1. In the absence or disability of the Governor, his powers shall be exercised and his duties discharged by the ViceGovernor# and in the absence or disability of both of these officers, such powers shall be exercised and such duties discharged by the remaining member of the Executive Committee; in the absence or disability of all members of the Executive Committee the powers and duties of the Governor shall be exercised by the senior member of the Board present. Sec. 2. It shall be the duty of the Vice-Governor to co- operate with the Governor in the administration of the executive business of the Board. Article IV. Secretary and Assistant Secretaries. Sec. 1. The Board shall appoint a Secretary and one or more assistant secretaries. Sec. 2. The Secretary shall keep an accurate record of the proceedings of the Board and shall conduct such correspondence and perform such other duties as may be assigned to him by the Governor or by the Board. In the absence or disability of the Secretary, the duties of that office may, by direction of the 183 -3- X-7821 Board, be performed by an assistant secretary. See, 3. Th6 Secretary shall have custody of the seal and, acting under the authority of the Board, shall have power to affix same to all instruments requiring it. Such instruments shall be at- tested by the Secretary. Sec. 4. The assistant secretaries shall each perform such duties as may be assigned to them from time to time by the Board or by the Secretary. Article V. Assistant to the Governor. Sec. 1. The Board may authorize appointment of an As- sistant to the Governor. Sec. 2. The Assistant to the Governor shall perform such duties as shall be assigned to him by the Governor. Article VI. The Executive Committee. Sec* 1. There shall be an Executive Committee of the Board consisting of three members, which shall include the Governor, Vice-Governor and one of the appointive members of the Board. The appointive member of the Committee shall be nominated and elected at a regular meeting of the Board. Members of the Board shall serve as far as practicable in rotation and for approximately equal terms# The presence of three members shall be requisite for the transaction -4- X-7821 of business by the Executive Committea, ano action shall be taken only on unanimous vote of the Committee. Sec. 2« In the absence of the Governor and Vice-Governor the appointive member of the Executive Committee shall act as Chairman and shall, with two other appointive members of the Board present in Washington to be chosen by him in the order of their seniority, exercise the powers and discharge the duties of the Executive Committee. In the absence of all three regular members of the Executive Committee the three remaining appointive members of the Board, provided there be three in Washington, shall act as an interim committee and exercise the powers and discharge the duties of the Executive Committee, the senior member acting as Chairman. Provided, however, that if only two of the appointive members of the Board are in Washington such two members may act as an interim committee and exorcise the powers and discharge the duties of the Executive Committee. Any action taken by such interim commit- tee of two members, however, shall net be finally effective unless and until ratified by the Board. At the next regular meeting of the Board there shall be reported to it for ratification all actions taken by such interim committee of two members since the last regular meeting of the Board. Upon ratification by the Board, all actions taken by such interim committee of two members shall have the same force and effect as actions taken by the Board itself and shall be effective as of the date such action was taken by the interim committee of two members unless otherwise specifically provided by the Board. -51 Sec. 3. JL X-7821 It shall be the duty of the Executive Committee to review and submit drafts of important correspondence involving the expression of opinions or decisions of the Board, and to prepare and make recommendations governing the conduct of the Board's business. Sec. 4. The Executive Committee shall also nave charge of all matters appertaining to the internal organization of the Board, and shall make recommendations from time to time on this matter. It shall also prepare annually a budget of proposed expenditures. Sec. 5. In the absence of a quorum of the Federal Reserve Board and for the transaction of business requiring action during the absence of such quorum, the Executive Committee is authorized to transact business which can be transacted in accordance with established principles and policies of the Board and to perform such additional duties as may be specifically delegated to it from time to time by instruction of the Federal Reserve Board. The Secretary of the Board shall serve as Secretary of the Executive Committee. Article VII. Standing Committees. In addition to the Executive Committee there shall be the following Standing Committees, appointments to which shall be made by the Governor, subject to the approval of the Board. See-. 1. Law. To the Law Committee shall be referred for study and X-7821 -6report all questions of a legal nature• To this Committee shall also be assigned the preparation or revision of the Board's regulations, contemplated amendments to the Federal Reserve Act, applications under the Kern amendment to the Clayton Act, and applications for the exercise by national banks of trust powers• The General Counsel shall serve as Secretary of the Committee• Sec. 2. Examination. To this Committee shall be referred all questions relating to the examination of Federal reserve or member banks including admission of state banks and permission to establish and operate branches• The Chief Examiner shall serve as Secretary of this Committee• Sec* 3. Research and Statistics. This Committee shall have charge of all investigations of an economic and statistical character authorized by the Board and shall supervise the work of the Division of Research and Statistics and the preparation and publication of the Federal Reserve Bulletin, This Committee shall also have supervision of the statis- tical and publication work of the Federal reserve banks• The Director of the Division of Research and Statistics shall serve as Secretary of this Committee, or in his absence the Assistant Director shall so serve. 7Sec. 4. X-7821 Salaries arid Expenditures of Federal Reserve Banks. To this Committee • shall be assigned all recommendations from Federal reserve banks for changes of salaries and other expenditures. This Committee shall make reports with respect to charge-of,?s ana franchise tax of Federal reserve banks. The Secretary of the Board shall serve as Secretary of this Committee. Sec. 5. District Committees. To each Federal reserve bank and district shall be assigned a Committee of not less than two members of the Federal Reserve Board. It shall be the duty of each Committee to keep itself informed by correspondence ai-d visit of the affairs of the bank and the condition of the district, and make investigation and report on all questions appertaining to the operation of any Federal reserve bank or the condition of any Federal reserve district that nay be referred to it by the Board. These Committees shall also aid the Commit- tee on Salaries and Expenditures with information regarding personnel of the respective Federal r-serve bancs of which they have charge. These Committees shall also make recommendations to the Board for the appointment of directors at Federal reserve banks and branches* Article VIII. The Fiscal Agent and Deputy Fiscal Agent. Sec. !• The Board shall appoint a Fiscal Agent and a Deputy Fiscal Agent. The duty of the Fiscal Agent shall be to collect 13 -8- X-7821 ana deposit all moneys and funds receivable by the Board with a Federal reserve bank designated by the Board for the purpose, to be placed in a special fund established on the books of such Federal reserve bank for the Federal Reserve Board. The Deputy Fiscal Agent shall perform the duties of the Fiscal Agent during his absence or disability. Sec. 2e The Fiscal Agent and Deputy Fiscal Agent shall each execute a separate bond with surety satisfactory to the Board. Sec. 3. Payments of expenses and other disbursements of the Board shall be mado by the Fiscal Agent upon proper vouchers out of moneys advanced to him by requisition out of the special fund above mentioned# as provided in section 6 of this Article, and placed to his official credit with the Federal reserve bank designated pursuant to section 1 of this Article. In the absence of the Fiscal Agent, pay- ment of expenses and other disbursements shall be made by the Deputy Fiscal Agent upon proper vouchers out of moneys advanced to the Fiscal Agent by requisition out of the special fund mentioned above and placed to his official credit with such Federal reserve bank, as provided in sections 6 and 7 of this Article. Sec. 4« The accounts of the Fiscal Agent shall be audited quarterly and at such other times as the Federal Reserve Board may direct, by or under the direction of an auditor of a Federal reserve bank designated for the purpose by the Federal Reserve Board. Sec, 5. The Governor of the Federal Reserve Board, from i -9- X-7621 time to time, shall make requisition on the Federal reserve bank, on the books of which the federal Reserve Board's special fund above mentioned has been established, for the advance to the Fiscal Agent from such special funds of such sums as may be necessary* Sums so advanced shall be placed to the official credit of the Fiscal Agent on the books of the Federal reserve bank designated pursuant to the provisions of section 1 of this Article* Sec. 6. The Deputy Fiscal Agent, in making disbursements for the Board upon proper vouchers out of moneys advanced to the Fiscal Agent, shall sign the necessary checks and other orders in the name of the Fiscal Agent by himself as Deputy Fiscal Agent. Article IX. Gold Settlement Fund and Federal Reserve Agents' Fund. All funds deposited by or for account of the respective Federal Reserve Agents in the Federal Reserve Agents' fund of the Federal Reserve Board and all funds deposited by or for account of the respective Federal reserve banks in the Gold Settlement Fund of the Federal Reserve Board shall be held on deposit -with the Treasurer of the United States and shall be subject to withdrawal only by check of the Federal Reserve Board signed by the Secretary or an Assistant Secretary and countersigned by the Governor or acting executive officer of the Board. -10. X-7821 Article X. Requisition for Delivery of Federal Reserve Notes» Requisitions upon the Comptroller of the Currency for the delivery of Federal reserve notes to the respective Federal Reserve; Agents shall be made by the Secretary or Assistant Secretary in response only to requests made by the Federal Reserve Agents to the Board for such notes. The Secretary or Assistant Secretary shall submit daily for appro veil to the Governor or acting executive officer of the Board a schedule sheaving the amount of each denomination of Federal reserve notes requisitioned by him for the account of each Federal Reserve Agent. Article XI# The Seal. The following is an impression of the seal adopted by the Board* SEAL. Article XII. Counsel. Sec. 1. The Board shall appoint a General Counsel whose duty it shall be to advise with the Board, or any member thereof, as -11- X-7821 to such legal questions as may arise in the conduct of its business; to prepare, at the Board's request opinions, regulations, rulings, forms and other legal papers and to perform generally such legal services as he may be called upon by the Board to perform# Sec. 2• Subject to the direction of the Governor, the Gen- eral Counsel shall have authority to correspond directly with the Counsel of the various Federal reserve banks and to request their opinions as to the interpretation of the local laws of the States included in their respective Federal reserve districts# Copies of all such correspondence shall be furnished to the Board for its information* Sec* 3# Whenever it may be deemed advisable, the Board may appoint one or more Associate or Assistant Counsel, or one or more Assistants to Counsel# The duty of such Associate or Assistant Counsel shall be to assist the General Counsel in the performance of his duties and to perform the duty of the General Counsel in his absence# The duty of such Assistant to Counsel or Assistants to Counsel shall be to assist the General Counsel in the performance of his duties# Sec# 4# The Board may appoint from time to time Consulting Counsel, who may be attorneys at law engaged in outside practice# Article XIII, Meetings* Sec* 1* Five members of the Board shall constitute a quorum for the transaction of business* -12- Sec* 2. X-7821 Stated meetings of the Board shall be held on such days of the week and at such hours as the Board "by a majority vote may fix from time to time. One meeting day each week shall be set apart for consideration of the following matters, advance notice of not less than two days being sent to members of important questions to be taken up at the meeting: Discount and open market matters; Approval of expenditures and salaries; Establishment of Federal reserve branches, agencies, currency stations; Permission for establishment of member bank branches; Amendment of Board's rules and regulations; New policies or changes of policy; Such other major matters as may be reserved for consideration at the weekly meeting. • Sec. 3. Special meetings of the Board may be called by the Chairman or Governor or upon the written request of -hhree members of the Board# Sec. 4. At all meetings of the Board the following shall be the order of business: (1) Reading or inspection of the minutes of the last regular meeting and minutes of meetings of the Executive Committee# (2) Report of the Governor• (3) Report of the Secretary. (4) Reports of the committees or members on assigned business# (5) Unfinished business• (6) Hew business• Sec# 5. No vote shall be taken or motion made by the Board at a meeting or conference when others than the members of the Board and its secretarial staff are present# -13- X-7821 Article XIV. Absences« Sec* 1* Absences of appointive members of the Board shall as far as practicable be ar rejig ed so as not to interfere with the expeditious conduct of the Board's business in Washington. Article XV. Information and Publication. Sec. 1. All persons employed by the Board shall keep inviolate its business, affairs, and concerns, and shall not disclose or divulge the same to any unauthorized person whomsoever, and any employee who shall give information contrary to this by-law shall be liable to immediate dismissal. Except upon vote of the Board, no one other than a Member of the Board, or the Secretary, Assistant Secretaries, Assistant to the Governor, and General Counsel, shall be permitted to inspect any of the Board's minutes• Sec. 2. No statements shall be made to the press expressive of the Board's policy or descriptive of its action except as authorized and approved by the Board. Such statements shall be issued only in written form and when authorized and approved they shall be issued through the office of the Governor or such other officer or member of the Board as may be specifically designated. Tilhile each member of the Board must determine for himself the propriety or necessity of expressing publicly his individual opinion on any question, members shall not quote publicly the opinion of other members on matters which -14- X-7821 have not formally been passed upon by the Board. Sec. 3* There shall be published monthly, a bulletin to be known as "The Federal Reserve Bulletin", •which shall be the official periodical organ or publication of the Federal Reserve Board. Sec. 4. No resolutions of a personal character shall be passed by the Board on the termination of the membership of a member of the Board. Article XVI. Amendments. These by-laws may be amended at any regular meeting of the Board by a majority vote of the entire Board, provided that a copy of such amendments shall have been delivered to each member at least seven days prior to such meeting.
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