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>5 Ex-Officio Members W . P . G . H A R D I N G . GOVERNOR A L B E R T S T R A U S S . VICE GOVERNOR ADOLPH C. MILLER CHARLES S. HAMLIN CARTER.GLASS SECRETARY OF THE TREASURY CHAIRMAN J O H N SKELTON WILLIAMS COMPTROLLER OF THE CURRENCY FEDERAL RESERVE BOARD J . A. B R O D E R I C K , SECRETARY L . C. A D E L S O N , ASSISTANT SECRETARY W . T . C H A P M A N , ASSISTANT SECRETARY W . M. IMLAY, FISCAL AGENT WASHINGTON ADDRESS R E P L Y TO FEDERAL RESERVE February 4,1519 X-1376 SUBJECT: S t a t e L e g i s l a t i o n t o s t a n d a r d i z e r e s e r v e s . Dear S i r : There a r e now in s e s s i o n , or w i l l be during t h e y e a r , t h e l e g i s l a t u r e s of about f o r t y - t h r e e s t a t e s , and t h e Board wishes t o c a l l your a t t e n t i o n to t h e f a c t t h a i the present i s an opportune time f o r i n i t i a t i n g any l e g i s l a t i o n that may be needed in connection with t h e membership of s t a t e banks in t h e Federal Reserve system. In many of the s t a t e s the laws which r e q u i r e s e p a r a t e r e s e r v e s o p e r a t e t o d e t e r s t a t e banks from becoming members, and you a r e urged t o take s t e p s t o have b i l l s introduced in t h e l e g i s l a t u r e s of the s t a t e s in your d i s t r i c t designed t o b r i n g about u n i f o r m i t y with r e s p e c t t o r e s e r v e s and o t h e r requirements- There i s enclosed herewith copy of a b i l l which has been introduced in s e v e r a l s t a t e s , which b i l l h a s been prepared by t h e General Counsel of t h e Board a f t e r c o n s u l t i n g w i t h counsel of v a r i o u s Federal Reserve banks. In some of t h e s t a t e s l e g i s l a t i o n has a l r e a d y been seoureo a l l o w i n g s t a t e banks and t r u s t companies, members of t h e system, t o d i s r e g a r d t h e s t a t e S t a t u t e s r e l a t i n g t o r e s e r v e s , and i t has been found t h a t a p p l i c a t i o n s from s t a t e banks have been most numerous in t h e s e s t a t e s . The Board would a p p r e c i a t e acknowledgment of t h i s l e t t e r as well as a r e p o r t a s t o t h e adequacy ©r the r e v e r s e of p r e s e n t laws of t h e v a r i o u s s t a t e s in your d i s t r i c t . Very t r u l y yours, Governor. BOARD L-799 An Act authorizing any bank or trust company incorporated under the laws of this Commonwealth to become a member of a Federal reserve bank; to vest in such bank all powers conferred on member banks; to provide that the exercise of sucn powers shall be subject to all of the provisions of the Federal Reserve Act and to regulations of the Federal Reserve Board, made'pursuant thereto; to allow any such bank or trust company to comply with reserve requirements of the Federal Reserve Act in lieu of those established by this Commonwealth; to permit tke authorities of this Commonwealth which supervise and examine banks and trust companies organized under its laws, to accept the examinations and audits made pursuant to the Federal Reserve Act in lieu of those required by the laws of this Commonwealth and to disclose to the Federal authorities information relating to the condition and affairs of banks and trust companies organised under the laws of this State which have become or which seek to become members of the Federal Reserve System. Be it enacted by the Senate and House of Representatives of the Commonwealth of „ in General Assembly met, and it is hereby enacted by the authority of the same * SECTION 1. The words "Federal Reserve Act as heroin used shall be held to mean and to include the Act of Congress of the United States approved December 23, 1913, as heretofore and hereafter amended, The words "Federal Reserve Board" shall be held to mean the Federal Reserve Board created and described in the Federal Reserve Act« The words "Federal reserve bank" shall be held to mean the. Federal reserve banks created and organized under authority of the Federal Reserve Act, The words "member bank" shall be held to mean any national bank, State bank or banking and trust company which lias become or -which becomes a member of one of the Federal reserve banks created by the Federal Reserve Act. SECTION 2* That any bank or trust company incorporated under the laws of this Commonwealth shall have the power to subscribe to the capital stock and become a member of a Federal reserve bank. 67 X-799 SECTION 3. Any bank or trust company incorporated under the l a w s of this Commonwealth which' is, or which becomes a member of a Federal reserve b a n k ; i s by this Act vested with all powers c o n f e r r e d upon member banks of the Federal reserve banks by the terms of t h e Federal Reserve Act as fully and completely as if such powers were specifically enumerated and described herein, and all such powers shall be exercised subject to all restrictions and limitations imposed by the Federal Reserve Act, or by regulations of the Federal Reserve Board made pursuant thereto. The right, however, is expressly reserved to revoke or to amend the powers herein conferred. SECTION 4. A compliance on the part of any such bank or trust company with the reserve requirements of the Federal Reserve Act shall be held to be a full compliance with tnose provisions of the laws of this State which require oanks or trust companies to maintain cash balances in their vaults or with other banks, and no such bank or trust company shall be required to carry or maintain reserve other than such as is required under the terms of the Federal Reserve Act. SECTION 5. Any such bank or t r u s t company s h a l l be subject to the examinations required under the terms of the Federal Reserve Act, and the authorities of this State having supervision over such bank, may in their discretion accept such examination in lieu of the examination required under the laws of this Commonwealth * Such authorities, their agents and employees, may furnish to the Federal Reserve Board, the Federal reserve banks, or to examiners duly appointed by the Federal Reserve Board, or the Federal reserve banks, copies of all examinations made, and may disclose to such Federal Reserve Board, Federal reserve banks, or examiner, any information with reference to the condition or affairs of State Danks or trust companies organised under the laws of this State which become members of a Federal r e s e r v e bank, or which apply for membership in a Federal reserve bank* SECTION 6. All a c t s and the p a r t s of a c t s incon- sistent herewith arc hereby repealed* 4-13-18
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