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77t h CONGRESS 2d S ession H. R. 6391 IN THE HOUSE OE REPRESENTATIVES J anuary 19,1942 Mr. P atman introduced the following bill; which was referred to the Com mittee on Ways and Means A BILL Providing for the issuance of nonnegotiable United States bonds to Federal Reserve banks and terminating the authority of the Treasur}7 to issue other interest-bearing obligations of the United States to commercial banks, and for other purposes. 1 Be it enacted by the Senate and House of Representa- 2 tives of the United States of America in Congress assembled, 3 That the Secretary of the Treasury, with the approval of 4 the President, is authorized to issue from time to time United 5 States bonds, the proceeds of which shall be available to 6 meet any public expenditures authorized by law and to retire 7 any outstanding obligations of the United States bearing 8 interest or issued on a discount or on a combination interest9 bearing and discount basis. Such bonds shall he issued in 2 1 such form or forms and in such denominations, and mature 2 at such times (not in excess of forty years from the date of 3 issue) as the Secretary of the Treasury may prescribe. Such 4 bonds shall not bear interest or be issued on a discount basis, 5 and shall not be negotiable or transferable. 6 S e c . 2. Bonds issued under the provisions of this Act 7 shall be issued solely to Federal Reserve banks and shall he 8 subscribed for by the various Federal Reserve banks in such 9 proportions of the entire issue as may he agreed upon by the 10 Secretary of the Treasury and the Board of Governors of the 11 Federal Reserve System. The Secretary of the Treasury shall 12 pay, out of any funds hereafter appropriated for such purpose, 13 to each Federal Reserve bank subscribing to bonds issued 14 under this Act, such amounts as he deems necessary to 15 reimburse such bank for any expenses incurred by it in 16 connection with such bonds. 17 S e c . 3. The authority of the Secretary of the Treasury 18 to issue any interest-bearing obligations of the United States 19 (including obligations issued on a discount basis or on a 20 combination discount and interest-bearing basis) under any 21 other provisions of law is hereby terminated insofar as the 22 issuance of United States bonds to any bank receiving 23 demand deposits is authorized thereby. Except in accordance 24 with such regulations as the Secretary of the Treasury may 25 prescribe in order to provide for the orderly disposition of 3 1 United States bonds held by any bank receiving demand 2 deposits on the date of the enactment of this Act, no such 3 bank shall at any time hold any amount of United States 4 bonds in excess of the amount held by it on December 31, 5 1941. 6 S e c . 4. The first two paragraphs of section 7 of the 7 Federal Reserve Act, as amended, are amended to read 8 as follows: 9 “ S e c . 7. After all necessary expenses of a Federal 10 Reserve bank have been paid or provided for and a surplus 11 equal to the paid-in capital stock of such bank accumulated, 12 the annual net earnings of such bank shall be paid into the 13 general fund of the Treasury. 14 “Should a Federal Reserve bank be dissolved or go 15 into liquidation, any surplus remaining, after the payment 16 of all debts and the par value of all stock, shall be paid to 17 and become the property of the United States.” 1 & a cr ir*. H cr >-i p S crq p ^ S’ co CO co S' X p 3 3 co ' CL O *, *» ° SS 0 ® £ a ► > 3 ?o a & g d © 3 ^ S-* a ,o d < 2. 5- S'LJQ Ej C ^ o < ■*- ^ _ cd S p co CS CD 2* S* £3 co LC X 3 C CO P 3 CTC! £3 a sr a 1O c:% S5' CDg" f ® P CD H» sI- & P 3-1 8 cr § S CD 2. ?L 2 P r+5 2 ^ w? S’ o OTQ h , H o ^ COq b on 2 2 S3 O 2W 2B 03 to W co S . p o s 2 C- 2^ 3 CD CD 2 co > g X r r o 00 OD
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