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316 FEDERAL RESERVE BOARD WASHINGTON X—7464 A D D R E S S OFFICIAL CORRESPONDENCE T O T H E FEDERAL RESERVE B O A R D June 23, 1933. SUBJECT; Assessment f o r g e n e r a l expenses of t h e Federal Reserve Board J u l y 1 t o December 31. 1933. Dear S i r : The Banking Act of 1933 c o n t a i n s an amendment t o S e c t i o n 10 of t h e F e d e r a l Reserve Act which i n c l u d e s t h e f o l l o w i n g p r o v i s i o n : "The Board s h a l l determine and p r e s c r i b e t h e manner i n which i t s o b l i g a t i o n s s h a l l be i n c u r r e d and i t s disbursements and expenses allowed and p a i d , and may l e a v e on d e p o s i t i n the Federal r e s e r v e banks t h e proceeds of assessments l e v i e d upon them t o d e f r a y i t s e s t i m a t e d expenses and t h e s a l a r i e s of i t s members and employees, * * * * and funds d e r i v e d from such a s s e s s ments s h a l l not be construed t o be Government f u n d s or a p p r o p r i a t e d moneys." I n view of the f a c t t h a t t h e B o a r d ' s f u n d s , under t h i s p r o v i s i o n of law, a r e not Government f u n d s or a p p r o p r i a t e d moneys and i n asmuch as t h e law appears to contemplate t h a t such f u n d s w i l l be l e f t on d e p o s i t w i t h Federal r e s e r v e banks i n s t e a d of b e i n g p l a c e d w i t h t h e Treasury as h a s been done h e r e t o f o r e , t h e Federal Reserve Board has arranged to open an account with t h e Federal Reserve Bank of Richmond i n which t h e proceeds of i t s semiannual assessments upon F e d e r a l r e s e r v e banks t o d e f r a y i t s e s t i m a t e d expenses and t h e s a l a r i e s of 8 1 X-7464 — 3 i t s members and employees may be deposited. I t i s requested, t h e r e - f o r e , t h a t the proceeds of such semiannual assessments h e r e a f t e r made by the Federal Reserve Board upon the Federal r e s e r v e banks be d e p o s i t e d by them through the Gold Settlement Fund with the Federal Reserve Bank of Richmond f o r c r e d i t to t h e account of the Federal Reserve Board. There i s inclosed herewith a copy of a r e s o l u t i o n adopted by the Federal Reserve Board levying aii assessment upon the several Federal r e s e r v e banks i n an amount equal to Ninety-two thousandths of one per cent (.00092) of the t o t a l p a i d - i n c a p i t a l stock and s u r p l u s of such banks as of the close of business June 30, 1933, to d e f r a y the estimated expenses and the s a l a r i e s of the members and employees of the Board from J u l y 1 to December 31, 1933, and s p e c i f y i n g , as i n d i cated above, the manner i n which such assessments s h a l l be deposited with the Federal Reserve Bank of Richmond. Very t r u l y yours, J . C. Noell, F i s c a l Agent. Inclosure. TO THE CHAIRMEN OF ALL FEDERAL RESERVE BANKS EXCEPT RICHMOND, 318 X~7464*-a. RESOLUTION LEVYING ASSESSMENT. WHEREAS, under Section 10 of the act approved December 23, 1913, and known as the Federal Reserve Act, the Federal Reserve Board i s empowered to levy semi—annually upon the Federal r e s e r v e banks, i n p r o p o r t i o n to t h e i r c a p i t a l stock and s u r p l u s , an assessment s u f f i c i e n t to pay i t s estimated expenses, i n c l u d i n g the s a l a r i e s of i t s members, a s s i s t a n t s , a t t o r n e y s , e x p e r t s and employees, f o r the h a l f year succeeding the levying of such assessment, t o g e t h e r with any d e f i c i t c a r r i e d forward from the p r e ceding h a l f y e a r ; WHEREAS, Section 10 of the Federal Reserve Act, as amended by the Banking Act of 1933, contains the following p r o v i s i o n : "The Board s h a l l determine and p r e s c r i b e the manner i n which i t s o b l i g a t i o n s s h a l l be incurred and i t s d i s b u r s e ments and expenses allowed and p a i d , and may leave on d e p o s i t i n the Federal reserve banks the proceeds of a s s e s s ments l e v i e d upon them to d e f r a y i t s estimated expenses and the s a l a r i e s of i t s members and employees, * * * and funds derived from such assessments s h a l l not be construed t o be Government funds or appropriated moneys." WHEREAS, i t appears from e s t i m a t e s submitted t o and considered by the Federal Reserve Board t h a t i t i s necessary t h a t a fund equal to ninety—two thousandths of one per cent (.00092) of t h e t o t a l paid—in c a p i t a l stock and surplus of the Federal r e s e r v e banks be c r e a t e d f o r the purpose h e r e i n b e f o r e d e s c r i b e d , exclusive of the cost of engraving and p r i n t i n g of Federal r e s e r v e notes; NOW, THEREFORE, BE IT RESOLVED BY THE FEDERAL RESERVE BOARD, That: (1) There i s hereby l e v i e d upon the s e v e r a l Federal r e s e r v e banks an assessment i n an amount equal to ninety—two thousandths of one per cent (.00092) of the t o t a l p a i d - i n c a p i t a l and s u r p l u s of each such bank at the close of b u s i n e s s on June 30, 1933; (2) Such assessment s h a l l be paid by each Federal r e s e r v e bank i n two equal i n s t a l l m e n t s on J u l y 1 , 1933, and September 1, 1933, r e s p e c t i v e ly; (3) Every Federal r e s e r v e bank except the Federal Reserve Bank of Richmond s h a l l pay such assessment by t r a n s f e r r i n g the amount t h e r e o f on the dates s t a t e d above through the Gold Settlement Fund to the Federal Reserve Bank of Richmond f o r c r e d i t to the account of the Federal Reserve Board on the books of t h a t bank, and the Federal Reserve Bank of Richmond s h a l l pay i t s assessment by c r e d i t i n g the amount thereof on i t s books to the Federal Reserve Board on the d a t e s s t a t e d above.
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