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X-7350 6 ' > 1 E L E S U H FEDERAL ?35E2VE 30A3D WASKI1T&T01T Young - Boston Harrison - Hew York Korris - P h i l a d e l p h i a Pancher - Cleveland TRUSS 110. 1613 Seay - Richmond Black - A t l a n t a McDougal - Chicago Martin - S t . Louis March 10, 1933 G-eery - Minneapolis Hamilton - Kansas City McKinney - D a l l a s Calkins - San Francisco S e c t i o n 403 of the Act of March 9, 1933, amends s e c - t i o n 13 of the Federal Reserve Act a s amended by adding a t the end t h e r e of the f o l l o w i n g new paragraph: QUOTE Subject to such l i m i t a t i o n s , r e s t r i c t i o n s , and r e g u l a t i o n s a s the Federal Reserve Board may p r e s c r i b e , any Federal r e s e r v e bank may make advances to any i n d i v i d u a l , p a r t n e r s h i p , or c o r p o r a t i o n on the promissory n o t e s of such i n d i v i d u a l , p a r t n e r s h i p , or c o r p o r a t i o n secured by d i r e c t o b l i g a t i o n s of the United States. Such advances s h a l l be made f o r p e r i o d s not e x c e e d i n g 20 days and s h a l l bear i n t e r e s t a t r a t e s f i x e d from time to time by the Federal r e s e r v e bank, s u b j e c t to the review and determination of the Federal Reserve Board. U1TQU0TE Pursuant to a r e g u l a t i o n Issued by the S e c r e t a r y of the Treasury under the P r e s i d e n t ' s proclamations of March 6 and March 9, 1933, any Federal r e s e r v e bank may make advances complying w i t h the f o r e g o i n g amendment i n order to enable i n d i v i d u a l s , p a r t n e r s h i p s and c o r p o r a t i o n s to meet t h e i r immediate p a y r o l l requirements. It will be observed that a l l such advances must be secured by d i r e c t o b l i g a t i o n s of the United S t h t e s ; t h a t they may not be made f o r p e r i o d s l o n g e r than n i n e t y days and t h a t the i n t e r e s t r a t e thereon i s s u b j e c t to r e v i e w and d e t e r m i n a t i o n of the Federal Reserve Board. Pending f u r t h e r a c t i o n the Board approves a d i s c o u n t r a t e of 5$ per annum upon advances made under t h i s s e c t i o n to i n d i v i d u a l s , p a r t n e r s h i p s or c o r p o r a t i o n s . Morrill
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