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63D C O NG RESS
APRIL

:

:

7 — D E C K M BE R

:
1.

Is T S E S S IO N
I'M'-

U.S.

SENATE

DOCUMENTS

VOL. 1 9

WASHINGTON



GOVERNMENT

P R IN T1NG

O F F 1C E




63D CONGRESS j
IST SESSION I

SEN .A.TE

HOUSE BAN

I DOCUMENT
"| No. 242

IT/

COMPARATIVE PRINT
SHOWING THE CHANUKS SUGGESTED BY THE AMENDMENT SUBMITTED TO THE SENATE BY ME. OWEN, ALSO THE CHANGES
SUGGESTED BY THE AMENDMENTS INTENDED TO BE PROPOSED
BY MS. HITOHOOOE TO

AN ACT TO PEOVIDE FOR THE ESTABLISHMENT OF FEDERAL EESERYE BANKS, TO FURNISH AN
ELASTIC CURRENCY, TO AFFORD MEANS OF EEDISCOUNTING COMMERCIAL PAPER,
TO ESTABLISH A MORE EFFECTIVE SUPERVISION OF BANKING IN
THE UNITED STATES. AND EOS OTHER PURPOSES.




lit % Senate of %
November 24, 1913.
Ordered, That the print in parallel columns of House bill 7837, "An Act
to provide for the establishment of Federal reserve banks, to furnish an elastic
currency, to afford means of rediscoimting commercial paper, to establish a
more effective supervision of banking in the United Stales, and for other
purposes/' be printed so as to show on the left-hand page the House bill as it
stands without amendment.

Also that in the reprint tho term "substitute"

be stricken from the print and it. be ina.de to read "Owen amendment," and
that within the $500 limit these documents be printed for the use of tho
country.

Attest:

JAMES M. BAKER,
Secretary.
(m)




THE PART PRINTED IN ROMAN AND STRICKEN-THROUGH TYPE IN EITHER COLUMN SHOWS THE HOUSE BILL; OMIT THE PART
STRUCK THROUGH AND INSERT THE PART PRINTED IN ITALIC.

HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

AN ACT

AN ACT

AN ACT

To provide for the establishment of Federal reserve banks, to
furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other
purposes.

To provide for the establishment of Federal reserve banks, to
furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other
purposes.

To provide for the establishment of Federal reserve banks, to
furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other
purposes.

1

Be it enacted by the Senate and House of Representa-

1

Be it enacted by the Senate and House of Representa-

1

Be it enacted by the Senate and House of Representa-

2

lives of the United States of America in Congress assembled,

2

lives of the United Stales of America in Congress assembled,

2

fives of the United States of America in Congress assembled,

3 That the short title of this Act shall be the " Federal Reserve

3

That the short title of this Act shall be the "Federal Reserve

4

Act."

3 That the short title of this Act shall be the " Federal Reserve

4

Act."

4
5

Act."
Wherever the word "bank'' is used in this Act, the word

5

The terms "national bank" and "national banking

6 shall be held to include Stale bank, banking association, and

6 association" used in this Act shall be held to be synonymous

1

trust company, except where national banks or Federal reserve

1

and interchangeable.

8

banks are specifically referred to.

8

held to mean any national bank, Stale bank, or trust com-

The term "member bank" shall be

9 pany which has become a member of one of the reserve banks
10

created by this A <:L

The, term.'' board'' shall be held to mean

11 Federal Reserve Board; the term "district" shall be held to




HOUSE BILL.

HITCHCOCK

OWEN AMENDMENT.

AMENDMENTS.

1
2
FEDERAL BESBEVB DISTRICTS.

FEDERAL EESEEVE DISTRICTS.

mean federal reserve district; the term "reserve bunk" shall
be held to mean Federal reserve bank.

3

FEDERAL RESERVE DISTRICTS.

4

SEC. 3. That within ninety days after the passage of

5

this Act, or ao soon thoraftor as practicable, the Secretory

6

ef the Treasury, the Secretary of Agriculture, and the Comp-

7

trollcr of the Currency, acting as "Tho Reserve Bank Or

8

ganization Committee," shall designate from—among the

9

reserve and central reserve cities now authorized by law a

10 number of auoh oitica to be known as Federal reserve citica,
11 and shall divide the continental United States into districts,
12 each district to contain one of auch Federal reserve cities-;
13

Provided, That the districts shall be apportioned with due

14 regard to the convenience and customary oourac of business
15 of the community and shall not necessarily coincide with
16 the area of such State or States as may be wholly or in part
17

included in any gireu districtr—The districts thus created

18 may be readjusted and ROW districts may from timc-te-4me
19 fee created by the Federal Reserve Board hereinafter cs
20

tahlishcd, acting upon a joint application made by not less

21

than ton member banks desiring to be organized into a new

22

district.—Tho districts thus constituted shall be known as

23

Federal reserve districts and shall be designated by number

24

according to the pleasure of the organization commi-ttee?

25

and no Federal reserve district shall be abolished, nor the
2




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1 location of a Federal reserve bank changed, except upon
2

tho application of three fourths of the member banks of such

3

,K~4-..!rt*Lllo UllvU*

4

The organization oommittoc shall, in accordance with

5 regulations to be catabliahcd by itself, proceed to organize in
6

caoh of tho reserve cities designated 03 hereinbefore specified

7 a Federal reserve bank.—Each such Federal reserve bank
8 shall include in its title the name of tho city in which it ia
9 situated, as "Pcdoral Reserve Bank of Chicago," and se
10 forth.—Tho total number of reserve oitica designated by the
11 organization committee shall be not less than twelve, and
12 the organization committee shall be authorized to employ
13 counsel and export aid, to take testimony, to send for persona
14 and papers, to administer oaths, and to make auoh inTcatiga15 tiona oa may be deemed necessary by the said committee for the
16 purpose of determining the reserve citico to be designated
17 and organizing the reserve dbtriots hereinbefore provided^
18

Every national bank located within a givc-s—dts

19 shall be required to aiibaoribo to the capital-steftk
20

Federal reserve bank of that district a sum equal to twenty

21 per centum of the capital stock of such national bank fajjy
22 paid in and unimpaired, one-fourth of-such aubacriptieft—te
23 be paid in eash and- one fourth within sixty days after said
24 subscription ia made.—The remainder of the aubacrip-feteft
25 er any part thereof aball bocomc-a liability of the member
3

o

3




HO USJG BILL,.

OWEN AMENDMENT.

HITCHCOCK

1

AMENDMENTS.

bank, subject to call and payment thereof whenever ncces-

2 sary to meet the obligations of the Federal reserve bank
3

under aucb terms and in accordance wttb such regularises

4

as the board of directors of said Ecdcral reserve bank fflay-

5

prescribe: Provided, T h a t ' n o Federal—feaef¥e—&mfe-abati:

6 commence business with a paid up and unimpaired capital
7 less in amount than S5,QOQ,'000. The organizatiefl-eeflamfetee
8 ahall have power to appoint such assiatants-aad-iftcur such-es9

pensca in carrying out the provisions of this Act as it sbaH:

10 deem necessary? and such oxponaca ahall be payable by the
11 Treasurer of the United States upon voucher approved-fey-tfee
12 Secretary of the Treasury, and the aum of $-100,000, or so
13 much thereof as may be necessary; is hereby appropriated,
14 etrt-ef- any moneys in the Treasury not otherwise appropriated?
15 for the payment of such cxpcnacsv
16

SEC. 2. That within ninety days after the passage of

17

this Act, or as soon thereafter as practicable, the Sec-

17 this Act, or as As soon thereafter as practicable, the Secre-

17 provided for, shall, as soon as practicable after their appoint-

18

retary of the Treasury, the Secretary of Agriculture, arid

18

tary of the Treasury, the Secretory of Agriculture, anti-fee

18 ment and confirmation, designate from among the reserve and

1.9 the Comptroller of the Currency, acting as " The Ileserve

19 Comptroller of the Currency? and not less than two members

19 central reserve cities now established a number of such cities

20

Bank Organization Committee," shall designate from among

20 of the Federal Reserve Board, acting as "The Reserve Bank

20

to be termed Federal reserve cities, and shall divide the con-

21 the reserve and central reserve cities now authorized by

21 Organization Committee," shall designate from among-the

21

tinental United States into districts, each district to embrace

22

law a number of such cities to be known aa Federal

22 reserve and central reserve cities now authorized by la^-a

23

reserve cities, and shall divide the continental United

23 number of such eight cities to be known as Federal reserve

24 States into districts, each district to contain one of such

24 cities, and shall divide the continental United States, includ-

Ifi

25

SEC. 2. That within ninety days after the paoaage of

ing Alaska, into districts, each district to contain one, and

16

SEC. 2. That the Federal Reserve Board, hereinafter

HOUSE BILL.

HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

1 only one, of such Federal reserve cities.

The determination

2 of said organization committee shall not be subject to review
3

except by the Federal .Reserve Hoard when organized: Pro-

4 Federal reserve cities: Provided, That the districts shall

4 vided, That the districts shall be apportioned with due regard

4

one of such Federal reserve cities: Provided, That the dis-

5 be apportioned with due regard to the convenience and

5

to the convenience and customary course of business ef~4fee

5

tricts shall be formed with due regard to the convenience and

6 customary course of business of the community and shall not

6 community and shall not necessarily coincide with the area

6

customary course of financial and commercial business in

7

7 ef such be coterminous with any State or States as may-be

7

each district, and need not necessarily coincide with State o

necessarily coincide with the area of such State or States as
The

8 wholly or in part included in any given district. The dis-

9 districts thus created may be readjusted and new districts

9 tricts thus created may be readjusted and new districts may

10 may from time to time be created by the Federal Keserve

10 from time to time be created by the Federal Reserve Board

11 Board hereinafter established, acting upon a joint application

11 hereinafter cstabliahcd, acting upon a joint application made

12 made by not less than ten member banks desiring to be organ-

12 fey—fiet—leea than—tea—member banks—desiring—te—be

13 ized into a new district. The districts thus constituted shall

13 organized into a now district. The districts thus con-

13 county boundaries. The districts thus established shall be

14 be known as Federal reserve districts and shall be designated

14 stituted shall be known as Federal

districts

14 known as Federal reserve districts, and each of them shall be

15 by number according to the pleasure of the organization

15 and shall may be designated by number according to the

15 designated by the name of the Federal reserve city located

16 committee, and no Federal reserve district shall be abolished,

16 pleasure of the organization committee, and no Federal rc-

17 nor the location of a Federal reserve bank changed, except

17 servo district shall bo abolished, nor the location of a Federal

18 upon the application of three-fourths of the member banks of

18 reserve bank changed, except upon the application of thrcc-

19 such district.

19 fourths of the member banks of suoh district.

8 may be wholly or in part included in any given district.




reserve

A majority of

20 the organization committee shall constitute a quorum with
21 authority to act.
22

Tho organization committee ahall, in accordance with

23 regulations to be established by itself, proceed to organize in
24

caoh of the reserve cities designated as hereinbefore specified

25 a Federal reserve bank.—Each such Federal rcacrvo bank

See page 7. lines 7 to 11, for amendments proposed on this subject.




HOUSE BILL,.

O \VICN

1 ahull iftehttk?4n ita title the nnmo-t4'-4liu (;i4v-i
2

ijituatcd, as- •''••Federal JRcscrve-Iiaiik— of CMeftgo, " asd- se

3 forth. The total number of reserve cit+es-t{esigfta4ed-b¥-4:he
4

organization committee almll be not less than

5

the organization committee shall be atrtfeerisred— t«

6

oounaol and expert aid, to takc-testimoTiy,

1

and papers, to administer oaths, and to inake-stteh invoe4iga-

8

lions oa may be doomed necessary by Ike aald

9

purpoao of determining tho reserve cities

10 and organizing tho reserve diatricls-hcrcinbcforo-proYidetlT
11

Every national bank located within a given distric4

12 shall bo required to subscribe to tho capita l-steek-trf— ttit
13 Federal roacrvo bank of-that distri-et-a sum equal t
14 pe* —eentum —el—fefee—capital—s4eefe —«i'—
15 bank fully paid ie—and
16 aubi3oriptio]i— te —be—p«M—is—eask—aed— efte-feuiih
1 1 sixty days after said subscription is made.—The
18 dor of tho subscription or any part thereof
19 a liability of the member-bank, subject to ca
'20

mont thereof whenever necessary to meet the-obligatiofts

•2 1 of the Federal reserve bank under such terms and-ie-ae22

cordancc with auoh regulations as the board of dircotefs

'2;{

ef said Federal rcacrvc bank- may- proscribe-;— Provident

24

HITCHCOCK AMEND3IENTS.




HOUSE BIIX.

A.11 rj« itai mx IB.

1

The organization committee shall, in accordance with

1

jS'airf organization committee shall be authorized to

2

regulations to be established by itself, proceed to organize in

2

employ counsel and expert aid, to take testimony, to send,

3

each of the reserve cities designated as hereinbefore specified

3 for persons and papers, to adminster oaths, and to make

4

a Federal reserve bank.

Each such Federal reserve bank

4

such investigation as may be deemed

5

shall include in its title the name of the city in which it is

5

said committee in determining the reserve districts and in

6

situated, as "Federal Reserve Bank of Chicago," and so

6

determining the cities within such districts where such Federal

7

forth.

The total number of reserve cities designated by the

1

reserve banks shall be severally located.

The said committee

7

therein.

8

organization committee shall be not less than twelve, and

8

shall supervise the organization, in each of the cities designated.

8

cable after the said district* ha.i'c Iwen estaltlislied, proceed,

9

the organization committee shall be authorized to employ

9

of a Federal reserve bank, which shall include in its title the

9

to organize, conformable to the provisions of this Act, in

10 counsel and expert aid, to take testimony, to send for persons

10 name of the city in ivhich it is situated, as " Federal .Reserve,

10

each. Federal reserve city designated as aforesaid, a Federal

11

and papers, to administer oaths, and to make such in?estiga-

11

11

reserve bank, which a/tall lie known by the name of the city

12

tions as may be deemed necessary by the said committee for the

12

in irhu-.h if is established, (is, for example, '' Federal fie-

13

purpose of determining the reserve cities to be designated

13 serve Bank of Chicago.''

14

and organizing the reserve districts hereinbefore provided.

14

appurtenant, to them, four federal reserve districts, and no

15

more, shall in thejirst instance be designated and established

16

as such by the Federal Reserve Board: Provided, That after

17

Federal reserve banks have been organized and in operation

Bank of Chicago,'' and so forth.

necessary by the

The Federal Reserve Board shall, as soon as practi-

Four Federal reserve cities, and

18 for a period of tiro years in, saul four Federal reserve cities,
19

f.hr. Fe.dwnl

20

l,o time, tlesignatv not to exceed in all eight ddd.itionol Federal

21

reserve cities, with the 'requisite Federal reserve districts ap-

22

purtenant thereto, a-ndfor that purpose may alter and change

23

the limits and areas of existing Federal reserve districts.

24

Every national bank located within a given district

24

There shall

25

shall be required to subscribe to the capital stock of the

25

a

Federal

/-fesf.ri'f

Hoard m<i.y, in it.x dixrre.t.io/i. frtrni /.iii/c

he allotted to even/ national, hank loithin
reserve, d.i.ttriet, of

the

capi.ta,!

stock

of

thr




OWEN AMENDMENT.

1IOI T SK RIM,.

HITCHCOCK AMENDMENTS.

1

Federal reserve bank of that district a sum equal to twenty

1

2

per

2 six per

3

bank fully paid in and unimpaired, one-fourth of such

3

and surplus

4

subscription to be paid in cash and one-fourth within

4

allotted shall be underwritten by said bank and for a period

5

sixty days after said subscription is made.

The remain-

5

of sixty days after allotment be offered for subscription at par

6

der of the subscription or any part thereof shall become

6

to the public at large, but no more than one hundred shares

7

a liability of the member bank, subject to call and pay-

1

shall be allowed to be subscribed for or held by any person,

8

ment thereof whenever necessary to meet the obligations

8 firm, or corporation and all of the allotted stock not arub-

9

of the Federal reserve bank under such terms and in ac-

9

centum

of

the capital

stock

of such

national

Federal reserve bank of such district, a sum equal to
centum of

the fully

of suck national

paid-up

capital

stock

bank, which stock so

scribed for andjtoken by the public shall immediately be sub-

10 cordance with such regulations as the board of directors

10 scribed for and taken by the national bank to which the same

11 of said Federal reserve bank may prescribe: Provided

11 was in the first instance allotted.

The preparation, allot-

12 ment, subscription to, and sale of stock shall be under the conIB

trol of the board, which in case of oversubscription shall

14 give preference to the smaller subscriptions.

The national

16

banks shall in the first instance act as agents of the Federal

16

Reserve Board to take subscriptions from the general public

17 and receive payment therefor which shall be held subject to
18

the order of the board.

That said stock subscription shall be

19 paid for in gold coin or gold certificates as follows: One-third
20
21

Under regulations to be prescribed by the organization

22 committee, every national banking association is hereby
. 23

required and every eligible bank is hereby authorized to sig-

24 nify in writing, within sixty days after the passage of this Act,
25

its acceptance of the terms and provisions hereof; When such

at the time of subscription, one-third within thirty days, and




HOUSE BILL.

"•" •"•"»•"«"•-"»•"-'•

1 Federal reserve bank shall have been organized, every national
2 banking association within that district shall be required and
3 every eligible bank may be permitted to subscribe to the capital
4 stock thereof in a sum equal to six per centum of the paid-up
5 capital stock and surplus of such bank, one-sixth of such
6 subscription to be payable on call of the organization
1 committee or of the Federal Reserve Board, one-sixth
8 within three months-and one-sixth within six months therec

after, and the remaind&r qf the subscription, or any part, there-

10 of, shall be subject to call when deemed necessary by the
11 Federal;Beserve. Board- -said payments
12
13

tobe,ingold,or^fold

certificates.
The shareholders of every Federal reserve bank shall be

14 held indixiduatty responsible, equally and rataUy, and not one
15 for another, for all-contracts, debts, and engagements of *uch
16 bank to the extent of the amount of their subscriptions to such
17 stock at the par value thereof in addition to the amount sub18 scribed, whether such subscriptions have been paid up in whole
19 or in part, under the provisions of this Act.
20

Any national bank failing to signify its acceptance of

21 the terms of this Act within the sixty days aforesaid shall
22 cease to act as a reserve agent, upon thirty days' notice, to be
28 given within the discretion of the said organization committee
24 or of the Federal Beserve Board.




HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

1

Should any national banking association now organized

2 fail, within one year after the passage of this Act, to become
3 a member bank under the provisions hereinbefore stated, or
4 fail to comply with any of the provisions of this Act applicable
5

thereto, all of the rights, privileges, and franchises of such

6

association granted to it under the national-bank Act, or

1

under the provisions of this Act, shall be thereby forfeited.

8

Any noncompliance with or violation of this Act shall, how-

9

ever, be determined and adjudged by a proper circuit, district,

10 or Territorial court of the United States in a suit brought for
11 that purpose by the Comptroller of the Currency in his own
12 name before the association shall be declared dissolved, and
13 in cases of such violation, other than the failure to become
14 a member bank under the provisions of this Act, every director
15 who participated in or assented to the same shall be held liable
16 in his personal or individual capacity for all damages which
17 said bank, its shareholders, or any other person shall have
18 sustained in consequence of such -violation.
19

Such dissolution shall not take away or impair any

20

remedy against such corporation, its stockholders or officers,

21 for any liability or penalty which shall have been previously
22

incurred.

23
24

Federal reserve banks or any one or more of them be, in the

25

10

Should the subscriptions by banks to the stock of said

judgment of the organization committee, insufficient
10

to pro10




OWEN AMENDMENT.

1

HITCHCOCK

AMENDMENTS.

vide the amount of capital required therefor, then and

2 in that event the said organization committee may, under
3

conditions and regulations to be prescribed by it, offer to public

4 subscription at par such an amount of stock in said Federal
5 reserve banks, or any one or more of them, as said committee
6

shall determine, subject to the same conditions as to payment

7 in and stock liability as provided for member banks.
8

No individual, copartnership, or corporation other than

9

a member bank of its district shall be permitted to subscribe for

10 or to hold at any time more than $10,000 par value of stock in
11 any Federal reserve bank.

Such stock shall be known as public

12 stock and may be transferred on the books of the Federal
13 reserve bank by the, chairman, of the board of directors of such
14
15

bank.
Should the total subscriptions by banks and the public to

16 the stock of said Federal reserve banks, or any one or more of
17 them, be, in the judgment of the organization committee, insuf18 ficient to provide the amount of capital required therefor, then
19 and in that event the said organization committee shall allot
20

to the United States such an amount of said stock as said com-

21 mittee shall determine.

Said United States stock shall be

22 paid for at par out of any money in the Treasury not other23 wise appropriated, and shall be held by the Secretary of the
24

Treasury and disposed of for the benefit of the United States

25 in such manner, at such times, and at such price, not less than
26 par, as the Secretary of the Treasury shall determine.
11

11

11

HOUSE BILL.

HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

1

Stock not held by member banks shall not be entitled to

2 voting power in the hands of its holders, but the voting power
H

thereon shall be vested, in ami be exercised solely by the class C

4

directors of the Federal reserve bank in which said stock may

5

be held, and who shall be designated- as "voting trustees."

6

The voting power on said public stock shall be limited to one

7

vote for each $15,000 par value thereof, fractional amounts

8

not to be considered.

The voting trustees shall exercise the

9 same powers as member banks in voting for class A and
10 class B directors.
11

The Federal Reserve Board is hereby empowered to

12 adopt and promulgate rules and regulations governing the
13

transfers of said stock and the exercise of the voting power

14 thereon.
15 That no Federal reserve bank shall commence business with

15

16

16 with a paid-up and unimpaired subscribed capital less in

a paid-up and unimpaired capital less in amount than $5,000, -

17 000.

The organization committee shall have power to appoint

No Federal reserve bank shall commence business

17 amount than 16,000,000 $3,000,000.

The organization of

18 such assistants and incur such expenses in carrying out the pro-

18 reserve districts and Federal reserve cities shall not be con-

19 visions of this Act as it shall deem necessary, and such ex-

19 strued as changing the present status of reserve cities and

20 penses shall be payable by the Treasurer of the United States

20 central reserve cities, except in so far as this Act changes the

21 upon voucher approved by the Secretary of the Treasury, and

21 amount of reserves that may be carried with approved reserve

22

22

the sum of $100,000, or so much thereof as may be necessary,

agents located therein. The organization committee shall

22

one-third within sixty days thereafter.

23 is hereby appropriated, out of any moneys in the Treasury not

23 have power to appoint such assistants and incur such expenses

23

empowered to appoint such assistants, to subpoena, swear, and

24 otherwise appropriated, for the payment of such expenses.

24 in carrying out the provisions of this Act as it shall deem

24 examine witnesses, to employ counsel and experts, and to incur

25

25 such expenses as may be necessary for establishing, organizing,




13

necessary, and such expenses shall be payable by the Treas13

12

The board is hereby




HOUSE BILL,.

1

and pn-lliug in operation the federal reserve banks and desir/-

2

iiating (he federal reserve cities and reserve districts provided

3 thereof as may be necessary, is hereby appropriated, out of any

3 for in /his Act, and such expenses shall be paid by the Treasurer

4 moneys in the Treasury not otherwise appropriated, for the

4

of the United States upon vouchers approved by the Secretary

5 payment of such expenses.

5

of the Treasury, and the sum of $100,000, or so much thereof

6

as may be necessary, is hereby appropriated, out of any money

1

in the Treasury not otherwise appropriated, for the payment

8

of such expenses.

9
STOCK ISSUES.

1

2 retary of the Treasury, and the sum of $100,000. or so much

10

urer of the United States upon voucher approved by the Sec-

constitute a quorum with power to do business.

10

RTOOK IBflUBO BRANCH

OFFICES.

10

11

Five members of the reserve hoard shall

STOCK ISSUES.

SBC. 3; That the capital Btook of each Federal reserve

12 bank shall be divided into shares of $100 each.—The out13 standing capital stock shall be increased from time to time as
14 member banks increase -their capital stock or as additional
15 banks become members, and shall bo decreased as member
16 banks reduce their capital stock or ccaac to be mcmbcra.
17 Each Federal reserve bank may establish branch offices under
18 regulations of the Federal Reserve Board at points w i t h i n
19 the Federal rcacrvc district in which it is located: Prvvidcd
20 That the total number of such branches shall not exceed one
21 for oaoh-$600,000 of the capital stook of twid Federal reserve
')')

£j£i

UU111L.

SBC. 3. That the capital stock of each Federal reserve

23

SEC. 3. The capital stock of each Federal reserve bank

24 bank shall be divided into shares of $100 each. The out-

24 bank shall bo divided into shares of $100 each.—The otrt-

24

shall be divided into shares of $100 each, and shall be without

25 standing capital stock shall be increased from time to time as

25 standing capital stock shall be increased from time to time -as

25

voting power.

13

13

23

SEC. 3. That the capital stock of each Federal reserve

23

k-^lr

The Federal Reserve Board s/uill have poirer
13




HOUSE BILL.

OWEN

AMENDMENT.

HITCHCOCK AMENDMENTS.

1

member banks increase their capital stock or as additional

1

member banks increase their capital atock or as additional

1

to prescribe regulations for the transfer of said stock.

2

banks become members, and shall be decreased as member

9

hanks become- members, and may bo decreased aa member

2

the consent and approval of the board, reserve banks may

3

banks reduce their capital stock or cease to be members.

3

banks reduce their capital stock or ocaso to bo mcmfeefflr

3

establish such branch offices, within their respective districts,

4

Each Federal reserve bank may establish branch offices under

4

Bach Federal reserve bank may shall establish branch offices

4

as they deem necessary to conform to the convenience and

5 under regulations of the Federal Rooorvo Board at pointo
5

regulations of the Federal Reserve Board at points within

5

established course of business.

6

the Federal reserve district in which it is located: Provided,

1

That the total number of such branches shall not exceed one

8

for each $500,000 of the capital stock of said Federal reserve

9

bank.

With

6 within the Federal reserve district in which it ia located!
7

Provided, That the total number of such branched ahall not

8

exceed one for each $600,000 of the capital stock of aaid

9

Federal reserve bank within the Federal reserve district in

10 which it is located and also in the district of any Federal
11 reserve bank which may have been suspended, such branches
12 to be established and conducted at places and under regula13 tions approved by the Federal Reserve Board.
14

14

FEDERAL RESERVE BANKS.

15

SBer-4. The national banka In oaoh Federal reserve

16

FEDERAL RESERVE BANKS.

district uniting to form the Federal roucrvc bank therein?

14

15

FEDERAL RESERVE BANKS.

SBO. 1. The national banks in caefe

16 district uniting to form the Federal reserve—baefe

17 horoinbcforo provided for, ahall under their seals, make an

17 hereinbefore provided for, shall under then' seals, mafee-aft

18 organization certificate, which ahall specifically atato the name

18 organization certificate, which Ghall spcoifieaHy-frtate4he-Hfme

19 of such Federal reserve bank ao organized, the territorial e«-

19 of auoh Federal rcaorvo bank ao organized, the tcrritoriai-es-

"20 tent of the diatriot over which the operations of said Federal

20 tent of the diatriot over which the operations of sai

"21 reserve bank aro to bo oarriod-ear the city and State in which

21 reserve bank aro to bo carried on, the oity-a

22 sttM-bftnk ia to bo located? the araouftt of oapital-rteefe-afld-the

22 said bank4s4e bo located, the amount-ef capital ateefe-aad-tfee

23 number of oharoa-tnto which the same ia divided, the names

23 number of shares into which the aamc is divided, the names

24 and places of doing buaincaa of oaoh of the makers of aaid cof-

24 and plaoco of doing business of each of the makers of said cor

25

25 tifioato and the number of shares hold by oaoh of them, and-fefee

tifioato and the number of aharoa hold by oaoh of thorn, and the
14

14

14




HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

HOUSE BILL.

1

Fact that the certificate is made to enable such- banks to avail

1 fact that-fehc certificate is made to enable such banks to avail

"2

thomaclvos of the advantages of thia Act.—The said organiza-

2

themselves ef-febo advantages of this Aot. The aaid organiza-

:! &on certificates shall bo acknowledged before a judge of some

3

tion certificate ahall bo acknowledged before a judge of seme

•I court of record or notary public; and shall be, togothef-wirfe

4

court of record- or notary public; and shall bo,-together with

~>

the acknowledgment thereof, authenticated by the seal of

5 the acknowledgment thereof, authenticated by the seal ef

I! inioh. court, or notary, transmitted to the Comptroller of-fee

6 sttek court, or notary; transmitted to the Comptroller of the

7 Currency, who shall file, record, and carefully preserve-fee

7

8 same in hio office. Upon the filing of auoh certificate with the

8 is his office.—Upon -the filing of auoh certificate with the

9 Comptroller of the Currency aa aforesaid, the said Federal

9

Currency,who ahall file,record, and carefully preserve the same

Comptroller of the Currency aa aforesaid, the said Federal

10 reserve bank BO formed shall bcoomo-ft body corporate, and-ae

10 reserve-bank so formed shall become a body corporate, and as

11 9ttoh.,-and in the name designated in such organization ccrtifi-

11 auoh,-and in-tho-aamo designated in auoh organization ocrtifi-

1\i

oatc, shall have power to perform all those aota and to cnjey

12 oato, shaH-hftvo power to perform all those acts and to enjoy

1:5 all those privilcgca and to exercise all thoac powers described

13 all those privileges and to exorcise all those powers described

14 in section fifty one hundred and thirty six, Eovisod Stafatesy

14 in section fifty one hundred and thirty six, Revised Statutes,

15 nave in 30 far aa the same ahall be limited by the provisiese

15 save in 30 far aa the same ahall be limited by the provisions

16 of thia Act.- The Federal reserve bank BO incorporated ahall

16 of this Aot.—The Federal reserve bank so incorporated shall

17

17 have succession for a period of twenty years from its organiza-

have Buoooaaion for a period of twenty years from ita organiza-

18 <4f>n, unloBB sooner dissolved by Act of Congress.

18 tion, unless sooner dissolved by Act of Congress.
19

Every Federal reserve bank ohall bo conducted under

20

the oversight and control • of a board of directors, whoso

21 powers shall bo the aamo 03 those conferred upon the boards
22 ef- directors of national banking associations under existing
23 law, not inoonaistont with the provisions of this Aot.—S«eb
24 board of dircotoro shall be constituted and elected aa here
25 inoftor specified and shall consist of nine momboro, holding
15

15

15




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1 effiee-lef -three ycars7-aad-fe4ded~iate-tlu'GC classcsy-destg2
3

^

4

4^

5
6
7 district.
8

Gfaas-^-shdA-eettaiat-ef-feee-iaeiabcrs, wha-shajj— be

9 desigeftted-by tho Fcdcral-Rciicrvc Eoardr

10

rf-claaa A liliall be-bhecicn in the followin

12

—tbe-bea^d-ef

1 3 directors of the Fed

14 eaeb-sucli

15
16 9ttoh group shall-eeRtein as neariy—as-emy
17 th-e—aggregate mtfaber— e£-satd—member banks of~the— said
18

sta-^—as-fl-eariy-as-may be,

1 9 sttatkff-eapirtftfea-tteftT — ^he-said-gfetrps-sball-b

20 by n unib cy-rt-4lj:e^J:eastH;e-ef-4be-ebait-Hiaa-ef-fee--bea¥d-ef
21

22

i'al reserve b
At a rogulaiiy -called (lirootog^-

23 baftfe-i-ft-tlio Fcdefal^escrvc distriet aforesaid, the-beafd-ef
24

-el-stteb-iaetHbei' bank shatl-eledT-by-baMel-diio of its

25 own members as a-distriot rciiorvc-eicctor and shall eertif}7 Ms
16

16

16




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.
1

name to the chairman of tho board of dlrcotora of the Federal

2

reserve bank of the district.—Tho said chairman ahall cstab-

3

lish lists of tho district reserve electors, class A, thus named

4

by banks in oach-ef-tho aforesaid three groups and shall traas-

5 mit-ono Hsl-te-eaeh-sttoh clcctor-iii each group:—Every elector
6

ahall, within, fifteen days-of the receipt of the said list, select

7

and certify to tho said chairman from among the names on

8_^ tho list pertaining to his group, transmitted to him by the
9

chairman, one name, not his own, as representing his choice

10 for Federal reserve director, class A.—Tho name receiving
11 the groatont number of votes, not less than a majority, shall
12 be designated by said chairman, as Federal reserve director
13 for the group to which he belongs—fe-casc no candidate
14

shall receive a majority of all votca cast in any group, the

15

chairman aforesaid shall establish an eligible lisV-eftmisting

16

of the throe names receiving tho greatest number of votes

17 on tho first ballot, and shall transmit said list to tho electors
18 ia-eaeb-ef tho gr-eags of banks established by him.—Eaeh
19

elector shall at once oclcot and certify to tho aaid chairman

20 feom among tho three persons submitted to him his chotee
21 fef-gettefftt-feaervc diroetefr-etess-A-rand tho name roeemag
22

the greatest number of-such votes shaM-be dcckrcd-by-fee

23 chairman as Federal reserve director, class A.—In case of a
24

tic vote the balloting shall continue in the-manncr hcrcUibe-

25 fere-prescribed until Otte-eattdidarte receives26
17

17

cither of tho others.17




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1

Directors of cloas B shall bo chosen by tho electors

2

of tho respective groups at tho same timo and in tho same

3

manner prcaoribod for directors of class A, except that they

4

must bo Boiootod from a list of namca furnished, ono by ouch

5

member bonk, and such names shall in no case bo thoso of offi

6

OOIB or directors of any bank 01 banking association.—They

7 ahull not oooopt office no such uring tho term of their serviced
8

as directors of the Federal reserve bank. They ahall bo fairly

9

roprosontatiTo of tho commercial, agricultural, or industrial

10 interests of their respective distrioto.—The Federal Boacrvo
11 Board shall have power at its discretion to romoTO any di
12 roetor of oloaa B in any Federal reserve bank, if it should-ap
13 pear at any time that auoh director docs not fairly represent
14 tho commercial, agricultural, or industrial intcroato of his
J.O

16

(US uFX CB'ii

-Throe directors belonging to class C shall be chosen

17 dircotly by tho Federal Roacrvo Booid, and shall bo residents
18 of the district for whioh-thoy-arc aolcotcd, ono of whom shall be
19

designated by said board OH chairman of the board of dircoters

20

of tho Federal reserve bank of the district to which he ia

21 appointed and shall be designated as —Federal rcaoryo agent.''
22

Ho shall bo a pcroon of tested banking experience; and in

23 addition to his duties as chairman of the board of diregtos-ef
24 the Federal reserve bank of tho district to which he is
25 appointed, ho shall bo required to maintain usdcr rcgulatieas
IS

18

18

'




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1

to bo established by tho Federal Reserve Board a local offiee

2

of said board, which shall bo aituatcd on the premises

3

of the Federal reserve bank of the district.—Se ohall make

4 regular reports to tho Federal KcBcrro Board, and- shall
5

act as its official representative for tho pcrforBaaaee-ef-tfle

6 functions conferred upon it by this Aefe — He-sbaH-feeei¥e-afi
7

annual compensation te bo fised— by—the Federal Eeserve

8

Board and paid monthly by the-3j:edefai-fe86rve-baBb-te-;wbieb;

9

he is designated.

10

Directors of- Federal -reserve— baafes

11 addition to any compensation otherwise
12 able allowance for noocssary-eBpeases-ia-atteBdiBg-Baeetiflge
13 of their respective boards, which-aaetHrt14 tho rospoctiYO Federal reserve baafe-h — Aay
1 5 -feat— may—be- provided by—bear-ds—ef—fee&ters—ef— federal
16 reserve banks for mcmbora of ouch boardo ahall be-aBfejeet
17

to review by tho Federal ROGOITO Beatdr

18

Tho Eosorvo Bank Organization Committee miiy, in or-

19

ganizing Federal rosorvo-bftHtes for tho first time, call auoli

20

mooting3-e£bank dircctoi'B in the aovoral diatricta aa may be

'21

iicocssaiy to cam" oat tho purposes of tbio Act and may exorcise

22

tho functions heroin oout'oiTud upon the oluiiriuan of tho board

23

of directors of each Federal reserve bank ponding tho complete

24

organization of such bank.

25
26
19

19

At tho first mooting of tho full board of directors of each
Federal roaorvo bank-after organization-it shall-be tho duty of
19




HOUSE BILL.

HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

1 fee-directors of olaoaoa A and B and Q, respectively, to dcsig
2

no-tO' one of the members of each class whoao term of ofiioo

3

shall expire in one year from the first of January nearest to

4

date of auoh meeting, one whoso torm of ofBoc shall expire

5

at the end of—two years from said date-, and one whoao term

6

of office shall expire at the end of three years from said date.

7

Thoroaftor every director of a Federal rosorvo bank ohoson

> 8

as hereinbefore) provided shall hold office for a term of throe

9

years; but—the—oh airman.—of the—board—of directors of

10 each Federal reserve bank designated by the Federal Reserve
11 Board, as hereinbefore described, shall bo removable at
12 the pleasure of the said board without' notice, and hia
13 successor shall hold office during the- uncxpirod term of the
14 director in whoso place ho was appointed.—Vacancies that
15 may ooour in the several classes of directors of Podcra.1 reserve
16 banks may be filled in the manner provided for the original
17
18
19

SEC. 4. The national banks in each Federal reserve

20

district uniting to form the Federal reserve bank therein,

21 hereinbefore provided for, shall under their seals, make an
22

organization certificate, which shall specifically state the name

23

of such Federal reserve bank so organized, the territorial ex-

24 tent of the district over which the operations of said Federal
25 reserve bank are to be carried on, the city and State in which
20

selection of such directors, such appointoca to hold office for
tho-unoxpirod terms of then: prodoocasora.

19

SEC. 4. When the organization committee shall have estab-

19

SBC. 4. When the Federal Reserve Board has estab-

20

Kshed Federal reserve districts as provided in section two of

20

lished Federal reserve districts, as prescribed in section two

21 this Act, a certificate shall be filed with the Comptroller of the

21 of this Act, the governor or vice governor of such board shall,

22

Currency showing the geographical limits of such districts

22

under his hand and seal, execute a certificate designating the

2!1 and the Federal reserve city designated in each of such dis-

23

territorial limits of such districts and the Federal reserve city

•J-t

tricts.

24 in each district, and shall file such certificate with the Secre-

25

cause to be forwarded to each national bank located in each

The Comptroller of the Currency shall thereupon

25

tary of the Treasury.

When such certificate
SO

has been




HOUSE BILL.

HITCHCOCK

OWEN AMENDMENT.

AMENDMENTS.

1

said bank is to be located, the amount of capital stock and the

district, and to such other banks declared to be eligible by the

1

executed and filed, as aforesaid,

2

number of shares into which the same is divided, the names

organization committee which may apply therefor, an appli-

2

to each and every national bank stock in the reserve

3

and places of doing business of each of the makers of said cer-

cation blank in form to be approved by the organization com-

0

banks as prescribed in section two of this Act, and when,

4

tificate and the number of shares held by each of them, and the

mittee, which blank shall contain a resolution to be adopted by

4 conformable to section two of this Act, an amount of

5

fact that the certificate is made to enable such banks to avali

the board of directors of each bank executing such applica-

5 such stock has been subscribed for in any Federal re-

tion, authorizing a subscription to the capital stock of the

6 serve district equal

federal reserve bank organizing in that district in accord-

1 such subscriptio'n has been paid in, the board shall, by its

ance with the provisions of this Act.

8

go oenior or vice governor, under liis hand and seal, issueacer-

9

tificate in writing specifying

When the minimum amount of capital slock prescribed by

the board shall allot

to $6,000,000,

and

one-third of

the name and location of the

this Act for the organization of any Federal reserve bank shall

10 reserve bank in such district, the territorial limits of the

have been subscribed and allotted the organization committee

11 district, the amount of the capital stock subscribed, and the

x/iall designate any five banks of those whose applications have

12 amount paid in on such subscription, and the name and

linen received, to execute a certificate of organization, and there-

13 amount of stock taken by each subscriber. Such certificate

upon the banks so designated shall, under tlieir seals, make an

14 shall be acknowledged before the clerk of a court of record, or

organization certificate which shall specifically state the name

15 a notary public, and shall be filed with the Secretary of the

af such Federal reserve bank so organized, the territorial extent

16

of the district over which the operations of such Federal reserve
hunk are to be carried on, the city and State in which said bank
w to be located, the amount of capital stock and the number
of shares into which the same is divided, the name and place
of doing business of each bank executing such certificate, and
of all banks which have subscribed to the capital stock of such
Federal reserve bank and the number of shares subscribed by
e./ich, and the fact that the certificate is made to enable those
hanks executing same, and all banks which have subscribed or
21

Treasury.




OWEN AMENDMENT.

HOUSE BILL.

HITCHCOCK

AMENDMENTS.

1 may thereafter subscribe to the capital stock of such Federal
2 reserve bank, to avail themselves of the advantages of this Act.
3 themselves of the advantages of this Act. The said organiza-

3

The said organization certificate shall be acknowledged

i

4

before a judge of some court of record or notary public; and

tion certificate shall be acknowledged before a judge of some

5 court of record or notary public; and shall be, together with

5 shall be, together with the acknowledgment thereof, authenti-

6

the acknowledgment thereof, authenticated by the seal of

6 cated by the seal of such court, or notary, transmitted to the

7

such court, or notary, transmitted to the Comptroller of the

7

8

{/urrency,who shall filo, record, and carefully preserve the same

8 fully preserve the same in his office.

9

in his office.

9

Upon the filing of such certificate with the

Comptroller of the Currency, who shall file, record and care-

Upon the filing of such certificate with the Comptroller of

9

Comptroller of the Currency as aforesaid, the said Federal

10 the Currency as aforesaid, the said Federal reserve bank so

10

11 reserve bank so formed shall become a body corporate, and as

11 formed shall become a body corporate and as such, and in the

11 formed shall become a body corporate and as such, and in the

12 such, and in the name designated in such organization certifi-

12 name designated in such organization certificate, shall have

12 name designated in such organization certificate, shall have

13 cate, shall have power to perform all those acts and to enjoy

13 power—

13 power—

14 all those privileges and to exercise all those powers described

14

First. To adopt and use a corporate seal.

14

First. To adopt and use a corporate seal.

15 in section fifty-one hundred and thirty-six, Revised Statutes,

15

Second. To have succession for a period of twenty years

15

Second. To have succession for a period of twenty

16 save in so far as the same shall be limited by the provisions

L6 from its organization unless it is sooner dissolved by an Act of

16

years from its organization unless it is sooner dissolved by an

17

The Federal reserve bank so incorporated shall

L7

Congress, or unless its franchise becomes forfeited by some

17

Act of Congress, or unless its franchise becomes forfeited by

18 have succession for a period of twenty years from its organiza-

L8

violation of law.

18 some violation of law.

19

L9

Third. To make contracts.

19

Third. To make contracts.

20

Fourth. To sue and be sued, complain and defend, in

20

Fourth. To sue and be sued, complain and defend, in

10

of this Act.

tion. unless sooner dissolved by Act of Congress.

Upon the filing of such certificate with the Secretary
of the Treasury as aforesaid,

the said reserve bank so

2 L any court of law and equity as fully as natural persons.

21 any court of law and equity as fully as natural persons.

22

Fifth. To appoint by its board of directors, elected as

22

Fifth. To appoint by its board of directors, elected as

•_':>

hereinafter provided, such officers as are no! otherwise, pro-

23

hereinafter provided, such officers as are not otherwise pro-

24 wded for in this Act, to define their duties, require bonds of

24 vided for in this Act, to define their duties, require bonds of

•_'5

25

them and fix the penalty thereof, to dismiss such officers or
22

them and fix the penalty thereof, to dismiss such officers or any
28




HOUSE BILL.

HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

1

any of them as may be appointed by them at pleasure, and to

1

of them as may be appointed by them at pleasure, and to

2

appoint others to jlll their places.

2

appoint others to fill their places.

3

Sixth. To prescribe by its board of directors by-laws

3

Sixth. To prescribe by its board of directors by-laws not

4 not inconsistent with law, regulating the manner in which its

4

inconsistent with law regulating the manner in which its

5 general business may be conducted, and the privileges granted

5

general business may be conducted and the privileges granted

6

6

to it by law may be exercised and enjoyed.

to it by law may be exercised and enjoyed.

1

Seventh. To exercise by its board of directors, or duly

7

8

authorized officers or agents, all powers specifically granted

8

authorized officers

9

by the provisions of this Act and such incidental powers as

9

by the provisions of this Act and such incidental powers as

Seventh. To exercise by its board of directors, or duly
or agents, all powers specifically granted

10 shall be necessary to carry on the business of banking within

10 shall be necessary to carry on the business of banking toithiii

11

11 the limitations prescribed by this Act.

12

the limitations prescribed by this Act.
Eighth. Upon deposit with the Treasurer of the United

13 States of any bonds of the United States in the manner pro14 vided by existing law relating to national banks, to receive
15 from the Comptroller of the Currency circulating notes in
16

blank, registered and countersigned as provided by law, equal

17 in amount to the par value of the bonds so deposited, such
18

notes to be issued under the same conditions and provisions of

19 law which relate to the issue of circulating notes of national
JO

banks secured by bonds of the United States bearing the

•J1 circulating privilege.
•J'J

But no Federal reserve bank shall transact any business

22

No Federal reserve bank shall transact any banking

•Jli

except such as is incidental and necessarily preliminary to its

23

business, except such as pertains to the perfection of its or-

•J4

organization until it has been authorized by the Comptroller of

24 ganization and management, until two-thirds of its stock

•Jf>

I lie Currency to commence business under the provisions of

25 subscribed for has been paid in as prescribed in section two

•J(i

this Act.

26

23

of this Act.

.

23

, •




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1

Every Federal reserve bank shall be conducted under

1

Every Federal reserve bank shall be conducted under

1

Every Federal reserve bank shall be conducted, managed,

2

the oversight and control of a board of directors, whose

2

the oversight supervision and control of a board of directorsr

2

and controlled by a board of nine directors, five of whom

3 powers shall he the same as those conferred upon the

3

whoao powers shall bo the stune-aa-these conferred upon-the

3 shall be appointed by the Federal Reserve Board, and shall

4

boards of directors of national banking associations under

4

boards of dirootora of national banking associations uader

4

5 existing law, not inconsistent with the provisions of this

5

existing law, not inconsistent with the provioions of this

5 known as directors "B,"

6

6 Aet.

Act.

Such board of directors shall be constituted and elected

6

7 as hereinafter specified and shall consist of nine members,

7

The board of directors shall perform the duties usually

8

holding office for three years, and divided into three classes,

8

appertaining to the office of directors of banking associa-

9

designated as classes A, B, and 0.

9

tions and all such duties as are prescribed by law.

10

Said board shall administer the affairs

of said bank

11 fairly and impartially and ivithout discrimination in favor
12 of or against any member bank or banks and shall, subject
13 to the provisions of law and the orders of the Federal Be14 serve Board, extend to each member banksuchadvancementsand .
15 accommodations as may be safely and reasonably made with
16 due regard for the claims and demands of other member banks.
17

Such board of directors shall be eonatituted-aftd-eteeted

18 selected as hereinafter specified and shall consist of nine mem19 bers, holding office for three years, and divided into three
20 classes, designated as classes A, B. and C.
21

Class A shall consist of three members, who shall be

22

chosen by and be representative of the stock-holding banks.

23

Class B shall consist of three members, who shall be repre-

21

Class A shall consist of three members, who shall be

22 chosen by and be representative of the stock-holding banks.
23

Class B shall consist of three members, who shall be repre-

24 sentative of the general public interests of the reserve district.

24 sentative of the general public interests of the reserve district.

25

25

Class 0 shall consist of three members, who shall be

26 designated by the Federal Eeserve Board.
24

Class C shall consist of three members, who shall be

26 designated by the Federal Keserve Board.
34:

be known as directors "A,"

and four of whom shal be

and ivho shall be selected and

appointed by the member banks as follows:




HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

HOUSE BILL.

1

No director of class B or of class C shall be an

officer,

2 director, or stockholder of a member bank.
3
4

Directors of class A shall be chosen in the following
manner:

3

Directors of class A and class B shall be chosen in the

4 following manner :

5

It shall be the duty of the chairman of the board of

6

directors of the Federal reserve bank of the district in which

5
j-fe sball-ke -the duty-ef-tbe The chairman of the board of
6 directors of the Federal reserve bank of the district in which

7

each such bank is situated to classify the member banks of the

7 each such the bank is situated te shall classify the member

8

said district into three general groups or divisions.

Bach

8 banks of the saM district into three general groups or divisions.

9

such group shall contain as nearly as may be one-third of

9 Each suefe group shall contain as nearly as may be one-third of

10

the aggregate number of said member banks of the said dis-

10 the aggregate number of said- the member banks of the stHd

11

trict and shall consist, as nearly as may be, of banks of simi-

11 district and shall consist, as nearly as may be, of banks of simi-

The said groups shall be designated by

12 lar capitalization. The said- groups shall be designated by

number at the pleasure of the chairman of the board of di-

13 number at the pluaimro-ef by the chairman ef-fcfee-ktwd-of

12 lar capitalization.
13

14 rectors of the federal reserve bank.

14

15

15

At a regularly called directors' meeting of each member

At a regularly called directors1 meeting of the board

16 bank in the Federal reserve district aforesaid, the board of

16 of directors of each member bank in the federal reserve

17

directors of such member bank shall elect by ballot one of its

17 district aforesaid, the board of diroetora- of auefa— mem-bey

18

own members as a district reserve elector and shall certify his

18 bank it shall elect by ballot one of its own members as

19

name to the chairman of the board of directors of the Federal

I'.)

a district reserve elector and shall certify his name to

•JO

the chairman of the board of directors of the Federal

20 reserve bank of the district.

The said chairman shall

21 establish lists of the district reserve electors, class A,

reserve bank of the district.

The said chairman shall

22

thus named by banks in each of the aforesaid three groups and

establish lists of the district reserve electorsj-etess— -&-

23 shall transmit one list to each such elector in each

thus named by banks in each of the aforesaid three groups
and shall transmit one list to each saeb elector in each
group. Evegy-elootor shall, wtthia-fifteea-daya-of the receipt
rtt-'-fcke mud liat, select aHd-eerttly-fee-the-stiM-ehairuiaa freat
!tn-m-Hff-4ho names on-thc list

25

25




HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

HOUSE BII.J..

1 mittod to him by-fee-ebatfma.n,-efte namc,-fte£-h4s-ewtt7 as rep2

reseating hia-ehoicc for Federal reserve director, class-Ar:— ¥fee

3 name rceemag tho grcatert-numbof-of A'otes? not leas than. . .a
4

majority, shall be designated by-sold chairman as Federal rc-

5 sef¥e-4tfeetop-ferfte-gfettp to wfeieli ho beienga. In case -no
6 eafi4iekrte-3hull •receive a

1 group, the chairman aforesaid shall cs
8 edftsis&ng of the three names receiving the gr
9

of votca on the first btritet, and 'sbd4-tfftasffltt-9ai44i»fe-4e-4he

10 electors in uaoh of-tbe-grettpa -of banks cst
1. 1 Each elector shall ftt-oncc-aolcct and-certif}' to
12

maa-f-fom among the4h?ee-pmoR9 submitte4-to-luin4ii3-eheke

13

for Federal reserve diroetor, oIiiss-Ar-afttHhe-ttame-feeemttg

14

the grcatost numbcr-ef-such-^yete-shtttt-be docUirett b,y ibe

\ 5 chairman. a3 Fodcnil rcaefve-feeetef^clnas-rA-: — Jft-e*se-f»l-ti
1 6 510 vote the balloting aluxll continue in the niii
17

befef e-py cscri bed u n tM—ette-eaftd t date—teeeiff ea

I O
I C*

•j'l^/tt^ CTCKtjI> r\t
LLlclll / ~ n f l ' i A i Cn

J~ \ (i (\i~\^ U I 3.
C-t Iv> " L L If^i^t'*

-Dlrootora -ef cln.33 II ahaU be •choiicn by ihe-eketefe
df-the-yespeeri-ve groups n-t-44te-aHttft-HfHe-iHtd in th-e-stttfte
manner preseytbecl for directors of class A, eKe

eui'3-or directors of any bank or bunking asseciati
25 group.
26

Every elector shall, within fifteen days of the receipt

of the said list, select and certify to the said chairman from
26

Every elector shall, u; itliin fifteen days after ike receipt
••'/' the said list, certify

to Ike ciiinmtan Ais jh'isl, secmnJ,

ao

25
26

.t-s soon as practicable after a reserve bank has been
incorporated as above provided, the board shall notify

the




OWEN AMENDMENT.

HOUSE BILL.

HITCHCOCK AMENDMENTS.

1

among the names on the list pertaining to his group, trans-

and other choices upon the list., upon a preferential ballot,

1

member banks in said Federal reserve district to elect four

2

mitted to him by the chairman, one name, not his own, as rep-

' on a form furnished by the chairman of the board of directors

2

directors within a certain date to be named in the notification.

3

resenting his choice for Federal reserve director, class A.

3

Said board shall supply to each member bank a blank for the

4

name receiving the greatest number of votes, not less than a

shall make a cross opposite the name of the first, second, and

4- purpose of recording the vote of said member bank.

5

majority, shall be designated by said chairman as Federal re-

other choices for a director of class A and for a director of

5

member bank shall vote for four "B'' directors upon the blank

6

serve director for the group to which he belongs. In case no

class B, but shall not vote more than one choice for any

(i

so forwarded, shall certify that they are the choice of the

one candidate.

7

board of directors of said member bank, which certificate

8

shall be signed by the officers of said bank and forwarded to

9

the board within the time which said board shall limit.

The

of the Federal reserve bank of the district.

7 candidate shall receive a majority of all votes east in any
8

Any candidate having a majority of all votes cast in the

group, the chairman aforesaid shall establish an eligible list.

9

Each elector

consisting of the three names receiving the greatest number

column of first choice shall be declared elected.

If no

Each

candidate have a majority of all the votes in the first column,

10 Said board shall canvass the ballots so received from

then there shall be added together the votes cast by the electors

11 said member banks and forward

Each elector shall at once select and certify to the said chair-

for such candidates in the second column to the votes cast for

12

13 man from among the three persons submitted to him his choice

the several candidates in the first column. If any candidate

13 for director receiving the largest number of votes shall

14 for Federal resen e director, class A, and the name receiving

then have a majority of the electors voting, by adding together

14 be elected for four years; the candidate for director receiv-

15 the greatest number of such votes shall be declared by the

the first and second choices, he shall be declared elected.

15 ing the second largest number of votes shall hold office

16 chairman as Federal reserve director, class A.

If no candidate have a majority of electors voting when the

16 three years; the candidate for director receiving the third.

first and second choices shall have been added, then the

17

18 fore prescribed until one candidate receives more votes than

voles cast in the third column for other choices shall be added

18 candidate for director receiving the fourth largest number

19 either of the others.

together in like manner, and, the candidate then having the

19 of votes shall hold office for one year.

20

highest number of votes shall be declared elected.

20

10 of votes on the first ballot, and shall transmit said list to the
11 electors in each of the groups of banks established by him.
12

I

r

In case of a

17 tie vote the balloting shall continue in the manner hereinbe-

Directors of class B shall be chosen by the electors

21 of the respective groups at the same time and in the same

1

An imme-

diate report of election shall be declared.

a certificate of the re-

suit to each of said member banks.

The candidate

for

largest number of votes shall hold office for two years; the

During each subse-

quent year, the election shall be held in the same manner

21 except that each bank shall vote for only one director unless

22

manner prescribed for directors of class A, except that they

The}* shall not accept office as such during the term of

23

must be selected from a list of names furnished, one by each

their service as directors of the Federal jcacrre-bttttfei— ¥fety

23 certified by the board to each member bank, and in such cases

24 member bank, and such names shall in no case be those of offi-

Directors of class B shall be fairly representative of the

24 a plurality vote shall elect.

25

commercial, agricultural, or industrial interests of their re-

25

Ao person shall be qualified to hold the office of director

spective districts.

26

~'A" or director "B" while he is an officer, director, stock-

cers or directors of any bank or banking association.

They

26 shall not accept oifice as such during the term of their service
27

The Federal Reserve Board ahull -

37

22

in case of vacancies, when the number to be elected shall be

27




HOUSE BILl,.

OWEN

1

as directors of the Federal reserve bank.

2

representative of the commercial, agricultural, or industrial

3 interests of 4heir respective districts

They shall be fairly

The Federal Reserve

4 Board shall .have power at its discretion to remove any di5

1

AMENDMENT.

HITCHCOCK AMENDMENTS.

powor at it3 diocrction to remove any director of

1

holder, or employee of any other bank or of any trust com-

2 any Federal reserve bank, if it'Should-apgcar at any time

2 pany, and no person shall be appointed or elected director who is

3 auoh director docs not fairly represent the commercial, agri

3

4

4 fide resident of the Federal reserve district for which he is ap-

cultural, or industrial interests of his district.

not at the time of his appointment or election an actual and bona

5 pointed or elected. The Federal Reserve Board shall designate

rector of class B in any Federal reserve bank, if it should ap-

6 pear at any time that such director does not fairly represent

6

and appoint one of said directors "A" as chairman of the board

7

the commercial, agricultural, or industrial interests of his

1

of directors, who shall be known as " Federal reserve agent."

8

district.

8

Directors "A" shall hold their offices for four years, except the

Three directors belonging to class C shall be chosen

9

Federal reserve agent, who shall hold his office at the pleasure of

10 directly by the Federal Reserve Board, and shall be residents

10 appointed directly by the Federal Reserve Board, and shall

10

11

of the district for which they are selected; one of whom shall be

11 be have been for at least two years residents of the district for

11 office for one year, one for two years, one for three years, and

12

designated by said board as chairman of the board of directors

12 which they are selected appointed, one of whom shall be des-

12 one for the full term of four years, as designated by the board.

13 of the Federal reserve bank of the district to which he is

13 ignated by said board as chairman of the board of directors of

13

Directors "B" shall hold their offices for four years except

14

appointed and shall be designated as "Federal reserve agent."

14 the Federal reserve bank of the district to which he is

14

that as to the first election one shall be elected for one year,

15 lie shall be a person of tested banking experience; and in

15 appointed and shall be designated by said board as " Federal

.15 one for two years, one for three years, and one for four years.

16 addition to his duties as chairman of the board of directors of

16 reserve agent." He shall be a person of tested banking experi-

17 the Federal reserve bank of the district to which he is

17 ence; and in addition to his duties as chairman of the board of

18 appointed, he Shall be required to maintain under regulations

18 directors of the Federal reserve bank of the district to which he

19 to be established by the Federal Reserve Board a local offi.ce

19 is appointed, he shall be required to maintain ander regulations

20 of said board, which shall be situated on the premises

20

21 of the Federal reserve bank of the district.

21 of said board, which shall be situated on the premises of

9

22

Three directors belonging to class C shall be chosen

He shall make

regular reports to the Federal Reserve Board, and shall

9

22

to be established by the Federal Reserve Board a local office

the Federal reserve bank of the district.

He shall make

23 act as ite official representative for the performance of the

23 regular reports to the Federal Reserve Board, and shall

24 functions conferred upon it by this Act.

24

He shall receive an

25 runual compensation to be filed by tbe Federal Reserve

28

act as its official representative for the performance of the

25 functions conferred upon it by this Act.

28

He shall receive an

the board.

Of the directors "A" first selected one shall hold




HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

HOUSE BILL.

1 Board and paid monthly by the Federal reserve bank to which

1 annual compensation to be fixed by the Federal Reserve,

2 he is designated.

2

Board and paid monthly by the Federal reserve bank to which

3 he is designated.
4

One of the directors of class 0 shall be

appointed by the Federal Reserve Board as deputy chairman

5 and deputy Federal reserve agent to exercise the powers of
6

the chairman of the board and Federal reserve agent in case

1

of the absence or disability of his principal.
Directors of Federal reserve banks shall receive, in

8

The salaries of the directors shall be fixed by the board,

9 addition to any compensation otherwise provided, a reason-

9 addition to any compensation otherwise provided, a reason-

9

find shall be -payable from the revenues of the Federal reserve

10 able allowance for necessary expenses in attending meetings

10 able allowance for necessary expenses in attending meetings

10

hank of ichich they are directors.

11 of their respective boards, which amount shall be paid by

11 of their respective boards, which amount shall be paid by

{[

uliall have authority to fix the salaries and wages of all the

12 the respective Federal reserve banks. Any compensation

12 the respective Federal reserve banks. Any compensation

12

employees of their bank.

13 that may be provided by boards of directors of Federal

13 that may be provided by boards of directors of Federal

14 reserve banks for members of such boards shall be subject

14 reserve banks for members of such boards shall be subject

15 to review by the Federal Keserve Board.

15 to review and subsequent readjustment at any time by the

8

Directors of Federal reserve banks shall receive, in

8

16 Federal Reserve Board.
17

The Reserve Bank Organization Committee may, in or-

17

The Reserve Bank Organization Committee may, in or-

18 ganizing Federal reserve banks for the first time, call such meet-

18 ganizing Federal reserve banks for the first time, call such meet-

19 ings of bank directors in the several districts as may be neces-

19 ings of bank directors in the several districts as may be neces-

20 sary to carry out the purposes of this Act and may exercise the

20

21 functions herein conferred upon the chairman of the board of

21 functions herein conferred upon the chairman of the board of.

22 directors of each Federal reserve bank pending the complete

22

23 organization of such bank.

23 organization of such bank.

24

24

At the first meeting of the full board of directors of each

sa,ry to carry out the purposes or' this Act, and may exercise the

directors of each Federal reserve bank pending the complete

At the first meeting of the full board of directors of each

25 Federal reserve bank after organization it shall be the duty of

25 Federal reserve bank after organization it shall be the duty of

29

29

The board of directors




INTIJSK BILL.

OWRN A M E N D M KNT.

H FTC HCOCK AMENDS! ENTS.

1

the directors of classes A and B and 0, respectively, to desig-

1

the directors of classes A and B and 0, respectively, to desig-

2

nate one of the members of each class whose term of office

2

nate one of the members of each class whose term of office

8

shall expire in one year from the first of January nearest to

3

shall expire in one year t'tmu the first of January nearest to

4

date of such meeting, one whose term of office shall expire

4

date of such meeting, one whose term of office shall expire

5

at tlie end of two years from said date, and one whose term

5

at the end of two years from said date, and one whose term

6

of office shall expire at the end of three years from said date.

6

of office shall expire at the end of three years from said date.

7

Thereafter every director of a Federal reserve bank chosen

7

Thereafter every director of a Federal reserve bank chosen

8

as hereinbefore provided shall hold office for a term of three

8

as hereinbefore provided shall hold office for a term of three

9

years; but the chairman of the board of directors of

9

years-j-but— fee —chairman—ef — fee —board—ef-—directors—ef

10 each Federal reserve bank designated by the Federal Reserve

10 each Federal rcacrvo bank doQ

11 Board, as hereinbefore described, shall be removable at

1 1 Board, -ua hereinbefore dcaoribocl, ahall-be removable at the

12 the pleasure of the said board without notice, and his

12 pleasure of the said board, without-aoticc, and hia suceesaet

13 successor shall hold office during the unexpired term of the

13 shall hold office during the unoxpircd tcrm-ef the dircc-tor

14 director in whose place he was appointed.

14 ift whoso place ho was appointed.

Vacancies that

Vacancies that may

14

Vacancies that occur in either class of directors of

15 may occur in the several classes of directors of Federal reserve

15 occur in the several classes of directors of Federal reserve

15 reserve banks may be filled in the manner provided for the

16 banks may be rilled in the manner provided for the original

16 banks may be filled in the manner provided for the original

16

original selection of such directors, the men so selected to hold

17

17 selection of such directors, such appointees to hold office

17

office for the unexpired terms of their predecessors.

18 for the unexpired terms of their predecessors.

18

selection of such directors, such appointees to hold office for

18 the unexpired terms of their predecessors.

Upon its own initiative, for cause, or upon written com-

19 plaint 'under oath presented by ten or more member banks
20
21

dishonesty, or other matter affecting his efficiency as a director,

22

the board shall have the power, after hearing and proof and

">,';>

pursuant to a written notice specifying the grounds thereof,

24

to remove such director.

25
30

charging any director of a reserve bank with incompetency,

allowed thirty days in which to make defense thereto.

The accused director shall be

30

Pend-




OUEN AMENDMENT.

HOUSE BILL.

HITCHCOCK AMENDMENTS.

1
2
INCREASE AND DECREASE OF CAPITAL.

3

STOCK

ISSUES;

INCREASE

AND DECREASE

OF

CAPITAL.

ing the hearing the board may within its discretion suspend
the accused director.

3

INCREASE AND DEOBEAOE OF CAPITAL.

4

Sao. 5. That obaroa of the capital otook of Federal

5

rcocrYG banks shall not bo transferable nor be hypothecated.

6

In. oaflo a member bank increases its capital, it aholl therc-

7

upon subscribe for an additional amount of capital stoak-ef

8

tho Federal rcaciTc bank of its district equal to twenty per

9

centum of the bank's own incrcaac of capital, ono half of

10 aaid subscription to be paid in cash in the manner heroin
11

before provided for original aubscription, and one half—to

12

become a liability of tho member bank according to the

13

terms of the original subscription;

A bank applying for

14 stock in a Federal reserve bank at any time after tho forsift1.5 tion of the latter must subscribe for an amount of the capita}
l(j

uf said Federal reserve bank equal to twenty per centum of

17

tho capital atock of said subscribing bank, paying therefor

18

it.3 par value in accordance with the terms prescribed by

19 section two of thia Act.

When the capital stock of any

20
21

account of the increase in the number of member banks,

23

tho board of directors shall mukc and execute a certificate

24

to the Comptroller of tho Currency allowing said-increase

25
31

of the meccano -of capital atook of mombor banks or on

22

31

Federal reoorvc bank haa been increased cither on account

in capital, the amount paid in, and by whom paid.—In case
31




HfOl^SK BHJ..

OWES

AMENDMENT.

HITCHCOCK

AMENDMENTS.

1

a member bank reduces its capital atook it shall surrender a

2

proportionate amount of its holdings in the capital of aoid

3

Federal reserve bank, and in case a member bank goes into

4

voluntary liquidation it shall surrender all of ita holdings

o

of the capital stock of aaid Federal reserve bank.—In cither

6

ease the shares aurrondcrcd shall bo canceled and auoh mom

7

bor bank shall receive in payment therefor, under rcgula

8

tiona to be proscribed by the Federal Reserve Board, a aum

9

equal to ita ooah paid subscriptions on the aharca aurrcndcrcd.

10

SEC. 5. That the capital stock in the reserve banks shall

10

SKO. 5. Tl)at shares of the capital slock of Federal reserve

11

hanks shall not be transferable, nor he hypothecated.

11 reserve bank shall be divided into shares of $100 each.

The

11 be maintained as nearly as practicable in an amount equal to

L'2

I n c;ise a member hank increases its capital, it shall there-

12 outstanding capital slock shall be increased from time to time

12 six per centum of the capital and surplus of the member banks

I'.j

upon subscribe for an additional amount of capital stock of

13 as member banks increase their capital stock and surplus or

13 in said district, and the board is authorised from time to time

14

the Federal reserve hank of its district equal to twenty per

14 as additional banks become members, and may be decreased

14 to sell to the public such additional stock in any reserve bank

1.")

centum of the bank's own increase <>t' c a p i t a l , one-half of

15 as member banks reduce their capital stock or surplus or cease

15 as may be required to maintain this proportion.

16 said subscription to be paid in cash in the manner horein-

16 to be members. Shares of the capital stock of Federal reserve

16 which said stock shall be offered to the public shall be at its fair

17

17 banks owned by member banks shall not be transferable, nor

17 market value, but in no case below par.

18 become a liability of the member bank according to the

18 be hypothecated hypothecate.

In case a member bank »-

18 for membership in a reserve bank shall be required by the board

Iy

terms of the original subscription.

A bank applying for stock

19

orcaacd increase its capital stock or surplus, it shall thereupon

19 to underwrite, at the pi-ice fixed by the board, such an amount

20

in a Federal reserve bank at any time after the formation of

20

subscribe for an additional amount of capital stock of the

20 of capital stock in said reserve bank, equal to six per centum

21

the latter must subscribe for an amount of the capital of said

21

Federal reserve bank of its district equal to twenty six per

21 of the capital and surplus of such applying bank, as may be

22

Federal reserve bank equal to twenty per centum of the

22 centum of the bank's owa said increase of-capitai, one-half of

22

allotted to it by the board, and to purchase and pay for such

I'.')

capital stock of said subscribing bank, paying therefor its par

23 said subscription to be paid in cash in the manner hereinbefore

23

portion of said allotment as may not be purchased by the

24

value in accordance with the terms prescribed by section two

24

'24 public, as 'provided for in this Act.

before provided for original subscription, and one-half to

10

SEC. 5. That aharoa The capital stock of each Federal

provided for original subscription, and one-half to become a lia-

25 bility of the member bank according to the tornia of the original
32

The price at

Any bank applying




OWEN AMENDMENT.

HOUSE BILL.

1 subscription subject to call of the Federal Reserve Board,

HITCHCOCK AMENDMENTS.

A

2 bank applying for stock in a Federal reserve bank at any time
3 after the formation of tho latter organization thereof must
4 subscribe for an amount of the capital stock of said- the
5 Federal reserve bank equal to twenty six per centum of the
6 paid-up capital stock and surplus of said subooribing applicant
1 bank, paying therefor its par value in accordance with tho
8
9
10 of this Act.

terms proscribed by section two of this Act plus one-half of
one per cent a month from the period of the last dividend.

When the capital stock of any Federal reserve

10 When the capital stock of any Federal reserve bank kas

10

11 bank has been increased either on account of the increase of

11 shall have been increased either on account of the increase of

11 creased, the board shall certify the same to the Secretary of

12 capital stock of member banks or on account of the increase

12 capital stock of member banks or on account of the increase

12 the Treasury.

13 in the number of member banks, the board of directors shall

13 in the number of member banks, the board of directors shall

14 make and execute a certificate to the Comptroller of the Cur-

14 moke and execute cause to be executed a certificate to the

15 rency showing said increase in capital, the amount paid in,

15 Comptroller of the Currency showing said the increase in cap-

16 and by whom paid.

In case a member bank reduces its

16 ital stock, the amount paid in, and by whom paid. In case a

17 capital stock it shall surrender a proportionate amount of its

17 member bank reduces its capital stock it shall surrender a pro-

18 holdings in the capital of said Federal reserve bank, and in

18

19 case a member bank goes into voluntary liquidation it shall

I!) reserve bank, and in case a member bank goes into voluntary

20

"20

liquidation it shall surrender all of its holdings of the capital

•Jl

stock of said Federal reserve bank and be released from its

surrender all of its holdings of the capital stock of said Federal

21 reserve bank.

In either case the shares surrendered shall

When the capital stock of any reserve bank has been in-

portionate amount of its holdings in the capital of said Federal

22 be canceled and such member bank shall receh e in payment

23 stock subscription not previously called. In either case the

23 therefor, under regulations to be prescribed by the Federal

38 shares surrendered shall be canceled and such member bank

24

24 shall receive in payment therefor, under regulations to be

Reserve Board, a sum equal to its cash paid subscriptions on

25 the shares surrendered.

25 prescribed by the Federal Reserve Board, a sum equal to ite
33

33




HOUSE BILL.

HITCHCOCK AMEM>MR\TS.

OWEN AMENDMENT.

1

cash paid subscriptions on the shares surrendered and one-half

2

of one percent a month from llie period of the last divide/it/,

3 not to exceed the book value thereof, less any liability of such
4

member bank to the Federal reserve bank.
5

SEC. (3.-That if any member bank aliall become insolvent

6

and a receiver bo appointed, the stock hckt by it in said

7

Federal rcnorvc bank shall be canceled and the balance, after

8

deducting from the amount of its caah paid subscription all

9

debts due by such insolvent bank to said Federal reserve

10 bank, shall bo paid to the receiver of the insolvent bank.
11 Whenever die capital stock of a Federal reserve bank is
12 reduced, cither-en account of a reduction in capital stock of
13 any member bank or of the liquidation or insolvency of any
14 such member bank, the board of directors shall make aftd15 execute a certificate to the Comptroller of the Currency
L6 showing' such reduction- of capital stock and the amount
17
18

SEC. 6.

repaid to such bank.
>i. That in. cam1, tin- ./<W«m/ JIIWITH Hoard ylui-ll

That if any member bank shall become

1.8

19 insolvent and a receiver be appointed, the stock held

19

and a receiver be appointed, the. stock held ky it in said

19 decide, after lico •ijeur.t' operation of the reserve banks Jimi estab-

20

by it in said Federal reserve bank shall be canceled

20

Federal-reserve-bank-shall—be ctiiioolcd-ftiid the balance?

20

21

and the balance, after deducting from the amount of its

21

after deducting from the timount-e£4ts cash paid Mitfenrnprnfts

21 situuliI, be established it sliull mi.ikc UK- necessary chan.rje in lines

22 cash paid subscriptions all debts due by such insolvent

22

all debts duo-by sueh-iiiaolvciu-bftftb-te-nald Fodojal-rouorvc

22

offitfuslwydiitrivki,

23

bank to said Federal reserve bank, shall be paid to the

2B

batik, ahall-be paid to the receiver of- the iRselvcnt bftftfe

23

notify the member banks a/aclud by such, change to associate

24 receiver of the insolvent bank. Whenever the capital_stock

24

// any member bank shall he declared insolvent and a re-

24

themselves with the -new -reserve bank or banks and change the

25

25

ceiver appointed therefor, the stock held by it in said Federal

25

deposit of their reserves accordingly.

of a Federal reserve bank is reduced, either on account of a

at

SBC. 6. That if any rnc.inl.icr bank lihtil

»4

18

tine.

tisfted, thai OHO or morn adiliiioual banks herein authorized

desii/ualo the lieu; reserve citi/ or cities, and

34

Stockholders in pre,-




HOUSE BILL.

HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

1

reduction in capital stock of any member bank or of the liquida-

1

reserve bank shall be canceled, and all cash-paid subscriptions

1 viotisly established reserve banks affected

2

tion or insolvency of any such member bank, the board of

2

o?i said stock, with one-half of one per cent per month from the

2

by the change shall

be invited to exchange a portion of their stock certificates ns

3 directors shall make and execute a certificate to the Comp-

3 period of last dividend, not to exceed the book value thereof,

3 indicated by the reserve board, and for all stock so exchanged

4

4 shall be first applied to all debts of the insolvent member bank

4

the reserve board shall direct the transfer to the new reserve

5 to the Federal reserve bank, and the balance, if any, shall be

5

bank or ba.nks from the old reserve bank or banks of the cor-

6 paid to the receiver of the insolvent bank. Whenever the

6 responding amount of cash capital in gold.

7 capital stock of a Federal reserve bank is reduced, either on

1

8

account of a reduction in capital stock of any member bank

8

the reserve board may offer to the general public at par

9

or of the liquidation or insolvency of any such member such

9

stock in the newly created district or districts to an amount,

troller of the Currency showing such reduction of capital

5 stock and the amount repaid to such bank.

If sufficient

stock certificates are not thus exchanged

10 bank, the board of directors shall make and execute cause to

10 necessary to make up the difference.

11 be executed a certificate to the Comptroller of the Currency

11

12 showing such reduction of capital stock and the amount repaid

12 reserve board may direct that the stock of the old reserve bank

13 to such bank.

13 or banks so exchanged shall be entitled to payment in cash of

As an inducement to make the excJiange of stock the

14 its share of the accumulated surplus.

15

DIVISION OF EABNIHGS.

15

DIVISION OP EARNINGS.

15

16

DIVISION OF EARNINGS.

SEO. 7. That after the payment of all ncoooaary expenses

17 and taxes of a Federal reserve bank, the member banks
18 ahall bo entitled to receive an annual dividend of five pur
19 centum on the paid in capital stock, which dividend shatt
20

bo cumulative.—Quo half of the not earnings, after the aforo-

21 said dividend claims have-been fully mot, shall be-paid into
22

a surplus fund until such fund shall amount to twenty peg

23

centum—of—fee—paM-ift—eftpttei—steefe—ef—s«eh:—bank,

24 and of the remaining one-half sixty per ocntum shaH
25 be--paid-—to—fee—United—Stetes- and- forty—pef—contusa
35

35

35




OWEN AMENDMENT.

HOTJSE BILL.

HITCHCOCK AMENDMENTS.

1 to the member banks in the ratio of thoir average bal
2 anoos with tho Federal reserve bank- for the preceding year;
3 Whenever and ao long as the surplus fund of a Federal
4 reserve—bank—amounts—to—twenty—per—oontum—of-—the
5 paid in—capital—stock—aed—the—member—banks—shall
6 have—received—tfee—dividends—at—the—rarfee—of

five—fer

7 oontum—pe?—annum—hereinbefore—provided—¥&¥-,—sixty
8 per centum of all excess earnings shall be paid to the
9 United States and forty per oontum to tho member banks4fi
10 proportion to their annual average balances with such Federal
11 reserve bank; all earnings derived by tho United States from
12 Federal reserve banks ahall constitute a sinking fund to bo
13 hold for the reduction of tho outstanding bonded indebtedness
14 of tho United States, said reduction to bo accomplished uadet
15 regulations to bo proscribed by the Secretary of tho Trcasufyr
16 Should a Federal reserve bank be dissolved or go into liquida17 tion, tho surplus fund of said bank, after tho payment of all
18 debts and dividend requirements as horoinbcforo provided
19 for, shall bo paid to and become tho property of tho United

•20
SEC. 7. That after the payment of all necessary expenses

21

SEC. 7. That after the payment of After all necessary

22 and taxes of a Federal reserve bank, the member banks

22

expenses and taxes of a Federal reserve bank have been paid

23 shalb be «ntitled to receive an annual .dividend of five per

23 or provided for, the member banks shall be entitled to receive

23

24 centum on the paid-in capital stock, which dividend shall

24

an annual dividend of frve six per centum on the paid-in capi-

24 shall be entitled to receive an annual dividend of Jive per

25 be cumulative. One-half of the net earnings, after the afore-

25

tal stock, which dividend shall be cumulative.

25 centum on the paid-in capital stock, which dividend shall be

21

36

One half-trf

21'

SEC. 7. That after the payment of all necessary expenses

22 and taxes, including its share of the expenses of the Federal
Reserve Board, the stockholders of each Federal-reserve bank

36




HITCHCOCK

OWKM AMENDMENT.

HOUSE BIW,.

AMENDMENTS.

1

said dividend claims have been fully met, shall be paid into

tho not oarniiiga, alter the aforesaid dividend claims have

1

cumulative.

2

a surplus fund until such fund shall amount to twenty per

beett fully met, ahall-bc paid inte-tt surplus-fttttd-ttfttH: such

2

aforesaid dividend shall be applied as follows: T loenty-Jice

3

centum of the paid-in

bank,

fund-shall amount to twenty per centum of the-paid in capital

o

per centum of such net earnings to be carried to a surplus fund

4

and of the remaining one-half sixty per centum shall

stock of such-bank, and of tho remaining one half a is ty per

4

until such fund s/iall amount to twenty per centum of the

5

be paid to the United States and forty per centum

fiuiitum uhaU-bo paid to the United Status and forty per cTiiiiini

5

paid-in, capital stock of such reserve bank, and thirty-seven

6

to the member banks in the ratio of their average bal-

(5 te—khe member banks—ia-tho ratio -t>f— thoir-avcnigo bai

(i

and one-halj per centniii. of said net earnings shall be set aside

7

ances with the Federal reserve bank for the preceding year.

7 an oca with the Federal reserve bnnk for tho prcocding-yeafr

7

in a trust fund to be known as the depositors' insurance fund

8

Whenever and so long as the surplus fund of a Federal

8 Whoncvor and so-long 03 tho surplus fund of a Federal

8

and shall be used for t/ie payment of the depositors of insolvent

;>

reserve bank

the

9 reserve—bank—amounts—te—twenty—pe?—centum—ef—Eke

9

member banks tinder rides and, regulations made by the board.

shall

10 paidjn capital atook and the member bankg jhall have re-

10

When, in the judgment of the board, there has been accumu-

11

have received the dividends at the rate of fivt! per

11 ceived tho dividends at the rate ef five, per centum per an-

11

latfd in SHC/I. depositors' insurance fund a, siiljiclent sum, fully

12

centum per

provided for, sixty

12 num hereinbefore provided for, sixty per centum of all excess

12

to insure the payment of the depositors of insolvent member

18

per centum of all excess earnings shall be paid to the

13 earnings shall be paid to tho United States and forty per

13

banks, the board shall have power to suspend the setting aside

14

United States and forty per centum to the member banks in

14 centum to the member banks in proportion to their annual

14

and accuiniiln/ioi/ of llie said t/iirti/-seren and one-half per

15 proportion to their annual average balances with such Federal

15 average balanooti—with sucli—l^ede.ral- reserve—bank-;—d4

[:>

i-i'.i/lnm. oj si/c/i learnings, and thereafter such Ihirlit-sitn'ii and

16 reserve bank; all earnings derived by the United States from

16 After the aforesaid divide/ill claims /tave been fiilli/ -iin-l,-iiit.

l(>

i>iii'-ii.iil.j per /•full/111. of sncli earni.-ngs shall be paid to tlie

17

Federal reserve banks shall constitute a sinking fund to be

17 the net earnings shall lie paid to the United Slates as a fran-

17

United Slates, except that in the event the depositors' insur-

18

held for the reduction of the outstanding bonded indebtedness

18 chise tax, excepting, however, that one-half of stick r.anihiyx

18

nnC.K fund is depleted hi/ the paymr.ii t of depositors of insolmu t

10 of the United States, said reduction to be accomplished under

19 shall be first applied to the creation and maintenance. <>j a

19

nienih<>r banks xnc/t fund s/iall be replenished, hi/ again setting

20

regulations to be prescribed by the Secretary of the Treasury.

20 surplus fund equal to twenty per centum, of the capital, stock

20

aside such thirty-seven and, one-half per centum of the earn-

21

Should a Federal reserve bank be dissolved or go into liquida-

•21

All net earnings derived by the United States

21

.•!//(/,•> or so iniic.li. I hereof as, in the judgment of the board, may

22

tion, the surplus fund of said bank, after the payment of all

22 from Federal reserve banks shall t*»nstitiito u. aiiibitig; tlm4

"2'2

lir. iiect'sMrt/.

23

debts and dividend requirements as hereinbefore provided

23 te' bc-hcld-fef be applied to the reduction of the outstanding

23

to the

24

for, shall be paid to and become the property of the United

24 bonded indebtedness of the United States- said rcdiictiett-te

24

pavl shall, be applied,

25

States.

25 be accomplished under regulations to be prescribed by the

25

accrued, interest, of the two per centum bonds of the United

10 paid-in

capital

capital stock

amounts to
stock

annum

and

twenty per
the

hereinbefore

of such

centum of

member banks

of said bank.

37

Net earnings over and above expenses and the

7'he remaining net earnings shall be paid

United Stales: Provided,
to

37

the

That

the amount so

[mrcliase, at

par, with




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1

Secretary of the Treasury.

Should a Federal reserve bank

1

States, said bonds then to be retired; or if such bonds can not

2

be dissolved or go into liquidation, tho surplus fund of saM

2

be so purchased sa'ul amount shall be applied to the purchase

3

bank any surplus remaining, after the payment of all debts

3

of other interest-bearing obligations of the United States,

4

and dividend requirements as hereinbefore provided for, shall

4

which obligations shall thereupon be retired.

5

be paid to and become the property of the United States and

6 shall be similarly applied.
7

Every Federal reserve bank incorporated under the

1

Every Federal reserve bank incorporated under the

1

Every Federal reserve bank incorporated under the

8

terms of this Act and the capital stock therein held by mem-

8

terms of this Act aad, the capital stock therein hold by mcm-

8

terms of this Act and the capital stock therein heM-by rnom-

9

her banks shall be exempt from Federal, State, and local

9

bcr banks and the income derived therefrom shall be exempt

9

bef-bunks and the income, derived therefrom shall be exempt

10 taxation, except in respect to taxes upon real estate.

10 from Federal, State, and local taxation, except in respect to

10 from Federal, State, and local taxation, except in respect to

11 taxes upon real estate.

11 taxes upon real estate.

12

SEC. 8. That any national banking association hcro-

12

SBO. 8. That any national—banking association horo-

13

toforo—organized—may—upon—application—at—any—fare

13

toforo—organized—may—upon—applioatioft—at—a«y—tiffie

14 within one year after tho- passage of- thia Act,--ftBd-^wi4h

.14

within—wte—yeas—after—fee—passage—ef-—this—A-et;—a-ftd

15 tho approval of tho Gomptrollor-el tho Currency, bo granted?

15 with—the approval—of- -the—Qomptrollor of the—Currency.

16 as heroin provided, all tho righta, and-be-8ttfeje«t-4«»-a4^-the

L6 bo granted, as-heretft provided, all tho righta, and be aub-

17 liabilities, of national banking aaaooiationa-organigod sttb-

17 jeet to all the liabilities, of national banking' associations

18 ooquont to the passage of thia Ao-fe: Provided, That-mefe

18 organized subsequent to the passage of this Aot-: Provided-;

19 application on the part of ouoh asaooiations shall-be-a«tbef-

19 That sueh application on the part-of ouoh aaaociations shall

20 kcd by tho conaont in writing of stockholders owatRg-flet

20 be—authorized by the coaoont in writing of stockholders

21

leas than a majority of tho capital atock of-thc aaaociatiefh-

21 ewning not loss than a majority of the capital stock of the

22

Any national banking asstxaafebft—ttew orgaatzed

_?2

association.—A113' liiitloiml ImnJcltig' uaaaciatioti now org'aii-

23 ahall not, within one year after tho passage of tb
24 become a national banking association under tho proviateas

24

Act, booomo a national banking association under the pro-

25 hereinbefore stated, or which shall fail to-eemply with-aay
38

'23 tged-w-bteh-shall not, withtft one ycar-alte-fehe passage-ef-tbis

25

j

38

ftste&9-• horoinboforc atatod, or which shall fail to comply
38




HOUSE BILL.

OWEN AMENDMENT.

1

HITCHCOCK AMENDMENTS.
1

with any of tho provisions of this Act applicable thereto,

2 solved; but auoh disaolution shall not tako away or impair

2

abn.lt be diasolred; but 'suoh dissolution shall not tako away

3

any remedy against auch corporation, its stockholders OF

3

or impair an}' remedy against such corporation, its stockholders

4

officers, for any liability or penalty which shall have pre-

4

or officers, for any liability or penalty which shall have pro-

5
6

ef- the proviaiona of this Act applicable thereto, shall be dis-

viouslv been incurred.

5

viously boon incurred.

SEC. 8. That any national banking association hereupon

application at

6

SEC. 8. That within six months after a national bank

7

tofore organized may

any time

7

shall have been notified by the Federal Reserve Board of its

8

within one year after the passage of this Act, and

8

allotment of stock under section, two of this Act, said national

9 •with the approval of the Comptroller of the Currency,

9

bank shall hold a meeting of its stockholders and decide by a

10 be granted, as herein provided, all the rights, and be sub-

10 majority vote whether it will become a member bank under the

11 ject to all the liabilities, of national banking associations

11

12 organized subsequent to the passage of this Act: Provided,

12 national bank.

13 That such application on the part of each associations shall

In case the stockholders of said national bank

13 shall decide that said national bank shall become a member

14 be authorized by the consent in -writing of stockholders

14

15 owning not less than a majority of the capital stock of the

bank, the officers of said bank, upon a blank provided by the

15 board, shall forward the formal acceptance by said national

16 association. Any national banking association now organ17

terms of this Act or whether it will give up its charter as a

16

ized which shall not, within one year after the passage of this

bank of the terms of this Act to the board, properly attested

17 before a notary public. In case any national bank shall

18 Act, become a national banking association under the pro-

18 fail to fonvard its acceptance to the board within six months

19 visions hereinbefore stated, or which shall fail to comply

19 from the time said board makes the allotment of stock to

20 with any of the provisions of this Act applicable thereto,
20

said bank, it shall be deemed to have declined to become a mem-

21

her bank and shall thereupon have six months within which to

22

surrender its charter and abandon its existence as a national

23

bank. In any case, however, every national bank shall be

24

and is required to accept the allotment of stock as provided

25

in section two, which stock may be freely sold and disposed of

21 shall be dissolved; but such dissolution shall not take away
22

or impair any remedy against such corporation, its stockholders

23 or officers, for any liability or penalty which shall have pre24 viously been incurred.

39




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1

as other assets of the bank: Provided, however, That any na-

2

tional bank acting as a reserve agent in a reserve or central

3

reserve city shall be required to accept the terms of this Act

4

within six mont/is from the date of notification of its allot-

5

ment of stock, or, upon failure to do so, shall cease to be a

6 reserve agent for national banks.
7

SEO. 9. That any bank or banking association incor-

7

SEC. 9. That any Any bank or banking association incor-

1

SBC. 9. That any bank or banking association incor-

8

porated by special law of any State or of the United States,

8

porated by special law of any State or of the United States,

8

porated by special law of any State or of the United States,

9

or organized under the general laws of any State or the

9 or organized under the general laws of any State or of the

9

or organized under the general laws of any State or the

10 United States, and having an unimpaired capital sufficient

10 United States, and having an unimpaired capital sufficient

10 United States, and having an unimpaired capital sufficient

11

to entitle it to become a national banking association under

11 to entitle it to become a national banking association under

11 to entitle it to become a national banking association under

12

the provisions of existing laws, may, by the consent in writ-

12 the provisions of existing laws, may, by t-be-eemert in \vr&-

12 the provisions of existing laws, may, by the consent in writ-

13

ing of the shareholders owning not less than fifty-one per

13 tsg vote of the shareholders owning not less than fifty-one per

13 ing of the shareholders owning not less than fifty-one per

14 centum of the capital stock of such bank or banking associa-

14 ceutuin of the capital stock of such bank or banking associa-

14 centum of the capital stock of such bank or banking associa-

15

tion, and with the approval of the Comptroller of the Currency,

15 tion, aftd with the approval of the Comptroller of the Currency,

15

16 become a national banking association under its former name

16 beeetfte-a and acting through a committee, organize a national

16 rency, become a national banking association under its

17 banking association with any name approved by the said

17 foimer name or by any name approved by the comptroller.

tion, and with the approval of the Comptroller of the Cur-

18 comptroller, and transfer its business to such national banking
19 association under its formef^tame-er-by any name approved
20
21

or by any name approved by the comptroller.

The directors

22

thereof may continue to be the directors of the association BO

by—the-eomp trailer; Provided, however, That said acts are

21 not in contravention of the State or local law.
22

thereof may

continue

to

be

the

The directors

directors of

the

21

The directors thereof may continue to be the directors of

22

the association so organized until others are elected or ap-

23 organized uatil others are elected or appointed in accordance

23 association so organized until others are elected or appointed

23 pointed in accordance with the provisions of the law.

24

with the provisions of the law.

24 in accordance with the provisions of the law.

When the

24

the comptroller has given to such bank or banking associa-

25

given to such bank or banking association a certificate that

25 comptroller has given to such bank or banking association

25

tion a certificate that the provisions of this Act have been

40

When the comptroller has

40

40

When




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1 the provisions of this Act have been complied with, such

1 a certificate that the provisions of this Act have been com-

1 complied with, such bank or banking association, and all

2 bank or banking association, and all its stockholders, officers,

2 plied with, such bank or banking association, and all its

2 its stockholders, officers, and employees, shall have the same

3 and" employees, shall have the same powers and privileges,

3 stockholders, officers, and employees, shall have the same

3 powers and privileges, and shall be subject to the same

4

and shall be subject to the same duties, liabilities, and regu-

4 powers and privileges, and shall be subject to the same

4 duties, liabilities, and regulations, in all respects, as shall

5 lations, in all respects, as shall have been prescribed by

5 duties, liabilities, and regulations, in all respects, as shall

5 have been prescribed by this Act or by the national bank-

6

6 have been prescribed by this Act e? and by the national

6 ing Act for associations originally organized as national

7 banking Act for associations originally organized as national

7 banking associations.

this Act or by the national banking Act for associations

7 originally organized as national banking associations.

8 banking associations.
9

10

STATE BANKS AS MEMBERS.

SEO. 10. That from and after the i passage of this A«t

9

10

STATE BANKS AS MEMBERS.

SEC. 10. That from and after the paasagc of thia A&6

9

10

STATE BANKS AS MEMBERS.

SEC. 10. That from and after the passage of this Act

11 any bank iW banking association or trust company incor-

11 afty Any bank or banking association or trunt company incor-

11 any bank or banking association or trust company incor-

12 porated by special law of any State, or organized under

12 porated by special law of any State, or organized under

12 porated by special law of any State, or organized under

13 the general laws of any State or the United States, may

13 the general laws of any State or of the United States, may

13 the general laws of any State or the United States, may

14 make application to the Federal Reserve Board hereinafter

14 make application to the reserve bank organization com*

14 make application to the Federal Reserve Board hereinafter

15 created for the right to subscribe to the stock of the Federal

15 mittee, pending organization, and thereafter to the Federal

15 created for the right to subscribe to the stock to become a

16 reserve bank organized or to be organized'within the Federal

1(5 Reserve Board hereinafter created for the right to subscribe

16 member of the Federal reserve bank organized or to be or-

17 reserve district where the applicant is located. The Federal

17 to the stock of the Federal reserve bank organized or to be

17 ganized within the Federal reserve district where the appli-

18 Reserve Board, under such rules and regulations as it may

18 organized within the Federal reserve district where the appli-

18 cant is located. The Federal Reserve Board, under such

19 prescribe, subject to the provisions of this section, shall

19 cant is located.

The organization committee or the Federal

19 rules and regulations as it may prescribe, subject to the

20 permit such applying bank to become a stockholder in the

20 Reserve Board, under such rules and regulations as it may pre-

20 provisions of this section Act, shall permit such applying

21 Federal reserve bank of the district in which such apply-

21 scribe, subject to the provisions of this section, shall may

21 bank to become a otoekholdor in member of the Federal

22 ing bank is located. Whenever the Federal Reserve Board

22 permit s«eh the applying bank to become a stockholder in the

22 reserve bank of the district in which such applying bank is

23 shall permit such applying bank to become a stockholder

23 Federal reserve bank of the district in which swk the applying

23 located-:—Whenever the Federal Reserve Board ahall permit

24 in the Federal reserve bank of the district in Tvhieh the ap-

24 bank is located. Whenever the organization committee or the

24 auoh applying bank to become a atookholdor in the Federal

25 plying bank is located, stock shall be issued and paid for under

25 Federal Reserve Board shall permit suefe the applying bank

25 reserve bank of the district in which the applying bank is

41

41

dl




HOUSE BILL.
1

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

the rules and regulations in this Act provided for national

1

to become a stockholder in the Federal reserve bank of the dis-

1 located, stock shall fee issued and-paid-fey-imclcr the rales

2 banks which become stockholders in Federal reserve banks.

2

trict ift which the applying bank io located, stock shall be

2

and- regulations in this Act provided fo? national bftftfa

3 issued and paid for under the rules and regulations in this Act

3 which become—stockholders in Federal rcacrve-bftftk-s, in

4

4

which case, stock sliidl be allotted to it as provided in thin

5 Federal reserve banks.

5

Act.

It shall be the duty of the Federal Reserve Board to

6

It shall bo the duty-of the The organization committee or

6

7 establish by-laws for the general government of its conduct

1

the Federal Reserve Board -te shall establish by-laws for the

7

8 in acting upon applications made by the State banks

8

general government of its conduct in acting upon applications

8 -m—acting'—»ptm—uppliealiunn—mtttte— by—the—8tate -b

9 and banking associations and trust companies hereinbefore

9

made by the State banks and banking associations and trust

I)

10 referred to for stock ownership in Federal reserve banks.

10 companies horoinboforo-¥oforred--te for stock ownership in

10

referred to for stock- ownership— is-rPedefa

11 Such by-laws shall require applying banks not organ-

11 Federal reserve banks.

LI

Such—by-laws shall- require applying bonks—»«-fc— w

12 ized under

Federal law to comply with the reserve

12 banks not organized under Federal law to comply with the re-

wed—mulcr—-Federal—law to—eeinply—with

13 requirements and submit to the inspection and regula-

13 serve and capital requirements and to submit to the inspection

requirement!! —a-ftd —submit— to — fee —tnspcctiett—awd— feg

14 tion provided for in this and other laws relating to

14 examination and regulation providcd-fer-4ft this and other laws

L4

tidtt —provided- for in—tfe+s—aad— etbe*—kwa—felft-ttflg— •t«

15 national banks. No such applying bank shall be admitted

15 rolating-to national banks regulations prescribed by the organi-

If)

«ftfri«tta4-bflrttfesr

16 to membership in a Federal reserve bank unless it pos-

16 zation committee or by the Federal Reserve Board. No srok

16

to membership in a Federal reserve bank unless it pos-

17 sesses a paid-up unimpaired capital sufficient to entitle it to

17 applying bank shall be admitted to membership in a Federal

17

sesses a paid-up unimpaired capital sufficient to entitle it to

18 become a national banking association in the place where it is

18 reserve bank unless it possesses a paid-up unimpaired capital

18

become a national banking association in the place where it is

19 situated, under[the provisions of the national banking Act,

19 sufficient to entitle it to become a national banking association

11)

situated, under the provisions of the national hanking Act,

20

and conforms to the provisions herein prescribed for national

20 in the place where it is situated, under the provisions of the

20 awt-emrferiim to the provisions hcrciii-pfeseribed-fef-tta-tjetifi-l

21

banking associations of similar capitalization and to the regu-

21 national banking Act, and conforms to the provisions hcroift

21

UftHJcing an!.tftciation!!Htf similar capitalizatitm-attd to the regti-

22

lations of the Federal Reserve Board.

22 prescribed for national banking aaseciations-ef similar capitali-

22

Itrttws of the Federal Reserve Board and it shall thereafter

23 zation-und to the regulations of tho-Pedoral Reseree

23

be required to make the same reports and be subject to the same

24

examination and supervision as national banking associations

6

provided for national banks which become stockholders in

Such by-laws shall require applying

It shall bo the duty of the Federal Reserve Board-te
establish by lawn for the general g

and banking' anuociationa and truat coiii[ninieij

No such applying hank shall he admitted

25 and subject also to the reserve requirements of this Act.
42

43




HOUSE

UITCtieOCK AMENDMENTS.

O\VK.V A M M X D M K M .

1

Any bank becoming a member of a Federal reserve bank

2

under the provision.? of this -section sh.all. in addition to the

8

regulations and. restrictions hereinbefore

4

quired to conform to the provisions of law imposed, on the

5

national banks and to such rules and- regulations as the Fed-

t>

eral Reserve Board, ma?/, in pursuance thereof, prescribe re-

7

specting the limitation, of liability which may be incurred by

8

any person, Jinn., or corporation to such, banks, the prohibi-

9

tion again.it making purchase of or loa.ns on stock of such

10

banks, and the withdrawal or impairment of capital, or the

-provided, be re-

11 payment of unearned dividends.
12
13

Such banks, and the officers,

agents, and employees

thereof, shall also be subject to the provisions of and, to the

14 penalties prescribed by sections fifty-one hundred and ninety15

eight, fifty-two hundred and eight, fifty-two hundred, fifty-two

16

hundred and one, andfifty-two

hundred and eight and fifty-two

17 hundred and nine of the Revised Statutes. The member banks
18

shall also be required to make reports of the conditions and of

19

the payments of dividends to the comptroller, as provided in

20

sections fifty-two hundred and eleven andfifty-two

21

and twelve of the Revised Statutes, and shall be subject to the

22

penalties prescribed by section fifty-two hundred and thirteen

hundred

28 for the failure to make such report.
24

If at any time it shall appear to the Federal Reserve

24

If at any time it siuill appear to the Federal Reserve

24

If at any time it shall appear to the Federal Reserve

25

Board that a banking association or trust company organized

25

Board that a banking association or trust company or-

25

Board that a banking association 01 traat company orga.ii-

43

'13




HOUSE BILL.
1

HITCHCOCK A MENPM KNTS.

under the laws of any State or of the United States has failed

1

ganized under the laws of any State or of the United

1

izod under the laws of any State or of the United States

2 to comply with the provisions of this section, or .the regu-

2

States and having become a iiip.inber hank has failed

2

member bank has failed to comply with the provisions of

J

lations of the federal Reserve Boardjjt'shall :%e within

3

to comply with the provisions of this section or the regu-

3

this seetio« Act or the regulations of the Federal Reserve

1 the power of the said board to require such banking assoeia-

4

lations of the Federal Reserve Board, it shall be within

4

Board, it shall be within the power of the said board te-r*-

5

tion or trust company to surrender its stock in the Federal

5

the power of the said board, after hem-ing, to require such

5

quire auoh banking association or trust company to surroadey

6

reserve bank in which it holds stock upon receiving from

6

banking association or trust company to surrender its stock in

6

ita stock in the Federal reserve bank in which it holds steefe

7

such Federal reserve bank the cash-paid subscriptions to

7

the Federal reserve bank; in whieb it holds steefe upon re-

7

upon receiving from such Federal reserve bank the oaah-

8

the said stock in current funds, and saidF,ederal reserve

8

cciving from such surrender

the Federal reserve bank

8

paid subscriptions to tho said-atook in current fttadsr-aftd-said

9

bank shall upon notice from the Federal Reserve Board

9 shall pay the cash-paid subscriptions to the said stock ttt

9

federal reserve bank shall upon notice from the Federal-

10 be required to suspend said banking association or trust

10 current funds with interest at the rate of one-half of one per

10 Reserve -Board bo required to suspend said banking osaooui-

11 company from further privileges of membership, and shall

11 centum per month interest, computed from the last dividend,

11

12

within thirty days of such notice cancel and retire its

12 if earned, not to exceed the book value thereof, less any liability

12 ship, and-shall within thirty days of such notice cafteel-M4

13 stock and make payment therefor in the manner herein

13 to said Federal reserve bank, except the subscription liability

13 retire its-a-teek and mnko payment therefor in the-ffltttt-Hef

,14: provided.

14 not previously called, which shall be canceled, and said Federal

14

15 reserve bank shall, upon notice from the Federal Reserve

15 said hank from members/iip.

It! Board, be required to suspend said banking association or (nisi

16

may restore nu-'iii.lierslup H/IOII di/e proof of compliance irilli

17

17

lli,e roitdili'iii.1 Lii/./xtxed In/ lh.ix Act.

company from further privileges of membership, and shall

tion or trust company from further privileges of mcm-bef-

herein provided, after due li.eaniu/. lo suspend or expel the
The Federal Reserve Board

18 within thirty days of such notice cancel and retire its
19

stock and ma.ke. payment, therefor in the manner herein

20

provided.

21

ship upon due proof nf complin iuv. irilh the, c.oivH Lions ini-

The Federal Reserve Board may restore meinber-

22 posed by this section.
23

FEDERAL RESERVE BOARD.

23

FEDERAL RESERVE BOARD.

23

FEDERAL RESERVE BOARD.

24

>vBPr--y-- Tha4--tkeFe-ah.all bo. ovcate4-a Federal .Reserve

2ft

Board, which »hall consist of scvoft members, including tho
44




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1

Secretary of the Trcuaury, the Secretory of Agriculture, and

2

tho Comptroller of the Currency, who shall bo members ox

3

offioio, and four members appointed by tho Prooidcnt of tho

4

United States, by and with the advice and consent of the

5

Senate.—In aclooting the four appointive members of tho

6

Federal Reserve Board, not more than one of whom shall bo

7 selected from any one Federal rcoervc district, the President
8

ahall have duo regard to a fair representation of different.

9 geographical divisions of tho country.—The four members of
10 tho Federal Reserve Board appointed by the Prcaidcnt and
11 confirmed aa aforesaid shall devote their entire time to -fee
12 business of the Federal Reserve Board and shall each receive
13 an annual salary of $10,000, together with an allowance
14 for actual necessary traveling expenses, and the Comptrolkf
15 of the Currency, aa ex offieio member ef said Federal Reserve
16 Board, shall, in addition to the salary now paid him aa -eefflg17 trollor, rcooivo tho aum of 85,000 annually for his services
18 aa a member of said board.—Of the four members thus ap19 pointed by tho President not more than two shall be of the
20 aamo political party, and at least one of whom shall be a
21 person experienced in banking.—One shall be designated by
22

tho President to serve for two, one for four, one for six, and

23 one for eight years, respectively, and thereafter each member
24 so appointed shall servo for a term of eight 3Teara unless
45

45

25 soonor removed for cauao by tho President. Of thu four per
45




HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

1 sons tb.ua appointed, one shall bo designated by the-President
2 aa manager and one aa vice manager of the Federal Reserve
3 Board. The manager of the Federal Reserve Board, subject
4

to the supervision of the Secretary of the Treasury and Fed

5

oral RoBorvo Board shall bo tho active executive officer of

6 tho Federal Reserve Board.
7

SBC. 11. That there shall be created a A Federal Ee-

7

SEC. 11. That the President of the United States shall

7

SEC. 11. That there shall be created a Federal Reserve

8

Board, which shall consist of seven members, including the

8 serve Board? is hereby created which shall consist of seven

8 appoint, by and with the advice and consent of the Senate, a

9

Secretary of the Treasury, the Secretary of Agriculture, and

9 members, including the Secretary of the Treasury, the See

9 Federal Reserve Board consisting of eight members, in addi-

10 the Comptroller of the Currency, who shall be members ex

10 rotary of Agriculture, and the Comptroller of the Currency.

10 tion to whom the Secretary of the Treasury shall be an ex

11 officio, and four members appointed by the President of the

11 who shall be members a inember ex officio, and few six mem-

11 officio member. Of the eight members appointed in the firm

12

12 bers appointed by the President of the United States, by

12 instance, the President shall appvint one for a term of one

13 and with the advice and consent of the Senate.

In select-

13 year, one for a term of two years, one for a term of three

14 Federal Reserve Board, not more than one of whom

14 ing the few six appointive members of the Federal Reserve

14 years, one for a term of four years, one for a term of five

15 shall be selected from any one Federal reserve district,

15 Board, not more than one of whom shall be selected from

15 years, one for a term of six years, one for a term of seven

16 the President shall have due regard to a fair represen-

16 any one Federal reserve district, the President shall have

16 years, and one for a term of eight years, and thereafter all

17

tation of different geographical divisions of the country.

17 due regard to a fair representation of different the financial,

17 appointments shall be made for a term of eight years.

IB

The four members of the Federal Reserve Board appointed

18 commercial, and geographical

18 less than one nor more than three of said members shall be

United States, by and with the advice and consent of the

13 Senate.

In selecting the four appointive members of the

divisions of the country.

Not

19 by the President and confirmed as aforesaid shall de-

19 The fore six members of the Federal Reserve Board appointed

19 appointed from any one Federal reserve district.

20 vote their entire time to the business of the Federal Re-

20 by the President and confirmed as aforesaid shall de-

20 ments to fill vacancies in the board shall be for the vnexpired

21 serve Board and shall each receive an annual salary of

21 vote their entire time to the business of the Federal Re-

21

term and may be made by the President when the Senate is

22

$10,000, together with an allowance for actual necessary

22 serve Board and shall each receive an annual salary of

22

not in session, which appointments shall expire at (fie end of

23 traveling expenses, and the Comptroller of the Currency, as

23 $10,000, together with an allowance for actual necessary

23

the next session. In selecting members of the reserve board

24

24 traveling expenses, and the Comptroller of the GuiTcneyr-fts

24 consideration shall be given to experience in commerce and

25

25 banking.

ex officio member of said Federal Reserve Board, shall,

25 in addition to the salary now paid him as comptroller,
4«

ox offioio member of aaid Federal Reserve Board, shall,
46

Appoint-

The eight members of the Federal Reserve Board
46




HITCHCOCK AMENDMENTS.

HOUSE BILL.

1

thus appointed by the President shall devote their entire time

2 feeeivo the sum-ef-ff SrQQ

2

to the work and duties of the board and shall not while in

3 President not more than two shall be of the same political

i>

Of the fotff six members thus appointed

3

office be officers, directors, or employees of any bank or trust

4 party, and at least one of whom shall be a person experienced

4 by the President not more-thaa-twe shall-be-ef-tbe-same

4

company, -nor hold stock in any such institution, and they

5 in banking.

One shall be designated by the President to

5 pdlitieajr partjt-aaMt at least efte-dHwhem two shall be a-pe*seft

5 shall each receive a salary of $12,000 per year, payable

6 serve for two, one for four, one for six, and one for

6 persons experienced in banking or finance. One shall be

6

monthly out of tlie Treasury of the United States upon the

7 eight years, respectively, and thereafter each member so

7 designated by the President to serve for two one, one for four

1

order or warrant of the Secretary of the Treasury.

8

8

two, one for sis three, and one for eigfct-years four, one for

8

President shall designate, other than the Secretary of the

9 removed for cause by the President. Of the four persons thus

9 five, and one for six years, respectively, and thereafter each

9

Treasury, one member of said board as governor thereof, and

10 appointed, one shall be designated by the President as manager

10 member so appointed shall serve for a term of eigt-fe six

10 one member as vice governor thereof who shall act in place

11 and one as vice manager of the Federal 'Reserve Board. The

11 years unless sooner removed for cause by the President. Of

11 of the governor during his disability or absence.

12 manager of the Federal Reserve Board, subject to the siiper-

12 the feiff six persons thus appointed, one shall be designated

12

13

vision of the Secretary of the Treasury and Federal Reserve

13 by the President as manager governor and one as vice manager

13 board.

14

Board, shall be the active executive officer of the Federal

14 governor of the Federal Reserve Board.

14 necessary office rooms for said board in the Treasury Depart-

1 receive the sum of $5.000 annually for his services as a mem-

1

2 ber of said board. Of the four members thus appointed by the

appointed shall serve for a term of eight years unless sooner

15 lleserve Board.

Hi- addition to— tbe—satey—aew--paid— baa—aa—ee

her of said-beard.

lefr

The manager

The

The gov-

ernor shall be the active executive and presiding officer of the
The Secretary of the Treasury shall provide the

15 governor of the Federal Reserve Board, subject to the super-

In

ment Building, or the board may select quarters elsewhere in

i.6

16

the city of Washington if sufficient office room can not be found

vision of the Secretary of tho Trcasmy-attd Federal Reserve

17 Board, shall be the active executive officer of the Federal

17 in said building.

18 Reserve Board. In case of vacancies, temporary appoint-

18 city of Washington, District of Columbia.

19 ments on the Federal Reserve Board may be made by the

19 ing of the board shall be held as soon as may be, upon the

20

President when the Senate is not in session, to be immedi-

20

21

ately submitted to the Senate when it convenes.

21 designated by him.

22

tary of the Treasury may assign offices in the Department of

23

the Treasury for the use of the Federal lleserve Board.

24

Each member of the Federal Reserve Board shall within

The Secre-

The said board sliall hold its office in the

call of the Secretary of the Treasury, at a time and place

25 fifteen days after notice of appointment make and subscribe
26
47

to the oath of

office.
47

The first meet-

47




HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

HOUSE BILL.

1

The Federal Reserve Board shall have power to levy

1

The Federal Reserve Board shall have power to levy

1

The Federal Reserve Board shall have power to levy

2

semiannually upon the Federal reserve banks, in proportion to

2 semiannually upon the Federal reserve banks, in proportion to

2 seiniaunually upon the Federal reserve banks, iu proportion to

3 their capital stock, an assessment sufficient to pay its esti-

3 their capital stock and surplus, an assessment sufficient to

3

4 mated expenses for the half year succeeding the levying of

4

pay its estimated expenses and salaries of its members and

4 pay its estimated expenses and salaries for the half year suc-

5 such assessment, together with any deficit carried forward

5

employees for the half year succeeding the levying of such

5 ceeding the levying of such assessment, together with any

6 from the preceding half year.

6 assessment, together with any deficit carried forward from the

6 deficit deficiency carried forward from the preceding half year.

their capital stock and sw-plus, an assessment sufficient to

7 preceding half year.
8

Tho- first mooting of—fehc Federal Reserve Board-skaH

9 be hold in Washington, District of Columbia, as soon as may
10 bo after tho^asaago-ef-thia Act, at a date4e be fised by tho-Be11 serve Bank Organization- Committee:—The Socrctayy-ef-the
12 Treasury shall bo ox oflioio chairman of-tho Federal Eoocrve
13 Board.—No member of— feho Federal—Reserve Board
14 bo an officer or director of any bank or banking—
15 or Federal reserve bank nor hold stock in afly-baak or baafe16 ing institution-;- and before • entering.....upon
17 member of-tho Federal Reserve Board h
18 oath to the Socrctaiy of the Treasury that
19 wttb1 this requirement-—Whonovcr-a- vacancy ahall
20 otbor-than by-expiration of-torm, among the four
21 the Fodoral Reserve Board appointed by the President, as
22

abovo provided, a suoocoaor ohall be appoioted-by-tke-feesi-

23 dent, with tho-advioo and uonaoHt of the Senate, -te-&U-8aek
24 vacancy i—aad- whoa- appointed—sbaH- hold--effiee-^ei:— the
25 uaospirod term of tho member whoao- place ho is selected26
48




OWEN AMENDMENT.

HOUSE BILL.

HITCHCOCK AMENDMENTS.

1

The first meeting of the Federal Reserve Board shall

1

The first meeting of the Federal Reserve Board shall

2

be held in Washington, District of Columbia, as soon as may

2

be held in Washington, District of Columbia, as soon as may

3 be after the passage of this Act, at a date to be fixed by the Re-

3

be after the passage of this Act. at a date to be fixed by the Re-

4

serve Bank Organization Committee.

The Secretary of the

•i

serve Bank Organization Committee.

5

Treasury shall be ex officio chairman of the Federal Reserve

5

Treasury shall be ex officio chairman of the Federal Reserve

6

Board. No member of the Federal Reserve Board shall

6

Board.

7

be an officer or director of any bank or banking institution

7

be an officer or director of any bank, or banking institution,

8

or Federal reserve bank nor hold stock in any bank or bank-

8

trust company, or Federal reserve bank nor hold stock in any

9

ing institution; and before entering upon his duties as a

9

bank, er banking institution, or trust company; and before

10 member of the Federal Reserve Board he shall certify under
11 oath to the Secretary of the Treasury that he has complied
12 with this requirement.

Whenever a vacancy shall occur,

13 other than by expiration of term, among the four members of
14 the Federal Reserve Board appointed by the President, as
15 above provided, a successor shall be appointed by the Presi16

dent, with the advice and consent of the Senate, to fill such

17 vacancy, and when appointed shall hold office

for the

18 unexpired term of the member whose place he is selected

19

The Secretary of the

"No member of the Federal Reserve Board shall

10 entering upon his duties as a member of the Federal Reserve
11 Board he shall certify under oath to the Secretary of the
12

Treasury that he has complied with this requirement.

Wlien-

13 ever a vacancy shall occur, other than by expiration of term,
14 among the few six members of the Federal Reserve Board
15 appointed by the President, as above provided, a successor
16 shall be appointed by the President, with the advice and
17

consent of the Senate, to fill such vacancy, and when appointed

18 he shall hold office for the unexpired term of the member
19 whose place he is selected to fill.

to fill.

20

Xot.li.ing in thin Act contained-shall be construed ax taking

21

away any powers heretofore vested by law in the Secretary of

22

the Treasury which relate to the supervision, management,

23

and control of the Treasury Department and bureaus under

24 such department, and wherever any power vested by this Act
25 in the Federal Reserve Board or the Federal reserve agent
26

appears to conflict with the powers of the Secretary of the
49

49

49




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1 Treasury, such poioers shall be exercised subject to the super2 vision and control of the Secretary.
3

The Federal Reserve Board shall annually make a report

4

The Federal Reserve Board shall annually make a fall

3

The Federal Reserve Board shall annually make a full

of its fiscal operations to the Speaker of the House of Repre-

4 report of its fiacal operations to the Speaker of the House of

4

report of its fiscal operations to the Speaker of the House of

5

sentatives, who shall cause the same to be printed for the

5 Representatives, who shall cause the same to be printed for

5

Representatives, who shall cause the same to-be printed for

6

information of the Congress.

6 the information of the Congress.

6

the information of the Congress.

7

Section three hundred and twenty-four of the Revised

8
9

3

Section three hundred and twenty-four of the Revised

7

Section three hundred and twenty-four of the Revised

Statutes of the United States shall be amended so as to

8 Statutes of the United States shall be amended so as to

8

Statutes of the United States shall be amended so as to

read as follows: "There shall be in the Department of the

9 read as follows: "There shall be in the Department of—fee

9

read as follows: "There shall be in the Department of the

10 Treasury a bureau charged, except as in this Act otherwise

10 Treasury a bureau charged, except as in this Act o-feeywise

10 Treasury a bureau charged- except as in this Act otherwise

11 provided, with the execution of all laws passed by Congress

1 1. provided, with the oxccutitm-ef nil laws passed \>y Ceftgress

11 provided^ with the execution of all laws passed by Congress

12 relating to the issue and regulation of currency issued by

12 relating to the issue and r

12 relating to the issue and regulation of national currency

13 or through banking associations, the chief officer of which

1 3 w through banking associations, the

13 issued secured by or through banking associations. United

14 bureau shall be called the Comptroller of the Currency, and

14 bwefttt-shall be called the Comptroller of the Cur

14 States bonds and, under the general supervision of the Federal

15 shall perform his duties under the general direction of the

1 5 abftH-porfomi his-dtt-feies-ttftdef-fee-

15

16 Secretary of the Treasury, acting as the chairman of the

L 6 Secretary of the Treasury, acting as—fee-ebftiymtm—ef— the

16 of which bureau shall be called the Comptroller of the Cur-

17 Federal Reserve Board:" Provided, however. That nothing

1 7 Federal Reserve Beard:" Provided,

17 rency, and shall perform his duties under the general direc-

18 herein contained shall be construed to affect any power now

18 heroin-eon taincd shall-be-eeftstrucd-te-affee-t

18 tion of the Secretary of the Treasury, acting as the chairman

19 vested by law in the Comptroller of the Currency or the

U) vcstcd-b}' law—ia—the Comptroller of the C'urron&y-er— fee

19 trf—fee-^edefttt-Reijeffe Board:" Provided, however, That

20 Secretary of the Treasury.

20 Secretary of the-Trcustny There shall be in the Department

20 nothhig-bttfeifi:.''

21 of the Treasury a bureau charged with the execution of all

21

22 laios passed by Congress relating to the issue and regulation

22 fore vested by law in the Oetttptrollcr-ef-fee-Gtfffeftey-ey-fee

7

2:>

of national currency secured by United States bonds and,

23

Reserve Board, of all Federal reserve notes, the chief officer

Nothing in this Act contained shall be con-

strued -to affect as taking away any power now powers hereto-

Secretary of the Treasury which relate to the supervision,

24 under the general supervision of the Federal Reserve Board,
25 of all Federal reserve notes, the chief officer of which bureau
50

24 management, and control of tlic Treasury Department and
25

50

the bureaus under such department.
50




HOUSE BILL.

HITCHCOCK AMENDMENT.

OWKX A.MEXDMKXT.

shall be called the Comptroller of the Currency and shall perform his duties under the general directions of the Secretary
3

4
5

SEC. 12. That the Federal Reserve Board hereinbefore
established shall be authorized and empowered:

of the Treasury."
SKC. 12.' i%*t-tfee The Federal Reserve Board hcrein-

4
f>

bofcro-ftstabliahed shall be authorized and empowered :

6

(a) To examine at its discretion the accounts, books, and

6

(a) To examine at its discretion the accounts, books, and

7

affairs of each Federal reserve bank and to require such

7

ail'am of each Federal reserve bank and of each member

8

statements and reports as it may deem necessary.

8

bnnk and to require such statements and reports ns it

9

board shall publish once each week a statement showing- the

The said

10 condition of each Federal reserve bank and ;i consolidated
11

statement fur all Federal reserve banks. Such statements

12 shall

show

in

detail

the

assets

and

liabilities of

13 such Federal reserve banks, single and combined, and
14 shall furnish

full

information regarding the

character

15 of the lawful money held as reserve and the amount, na-

9 may deem necessary. The
1.0 once each
1.1 of

each

said

board shall publish

week a statement showing the condition
Federal

reserve

bank

and

a

consolidated

12

statement for all Federal reserve banks.

Such statements

!;}

shall show in detail the assets and liabilities of stteh

14

the federal

reserve banks, single and combined, and

4
5

SEC. 12. That the Federal Reserve Board hereinbefore
established shall be authorized and empowered :

6

(a) To examine at its discretion the accounts, books, and

7

affairs of each Federal reserve bank and of each member bank

8

and to require such statements and reports as it may deem

9

necessary.

The said board shall publish once each week a

10 statement showing the condition of each Federal reserve bank
11

mid a consolidated statement for all Federal reserve banks.

12

Such statements shall show in detail the assets and liabilities

13 of such Federal reserve banks, single and combined, and
1.4 shall furnish full information regarding the umounl and

ture, and maturities of the paper owned by Federal reserve

17

banks.

I f>

i-hamcter of the lawful money held us reserve nnd the tinmiui 1,

16

of the lawful money held as reserve and the amount, na-

U>

nature, and maturities of the paper ami oilier invcMiM'-iiljf

1.7

Ki

regarding the character

ture, and maturities of the paper and other investments owned

I1

owned or held by Federal reserve banks,

15 shall furnish full information

18 or- held by Federal reserve banks.
19

(b) To permit or require, in time of emergency, Federal

20

reserve banks to rediscount the discounted prime paper of

21

other Federal reserve banks, at least five members of the

22

Federal Reserve Board being present when such action is

23

taken and all present consenting to the requirement. The

24

exercise of this compulsory rediscount power by the Federal

25

Eeserve Board shall be subject to an interest charge to the

19

(b) To permit or require-~m time of'-fetaefgeftey^ Fed-

Li;

(b) To permit or require, in time of emergency, Federal

•JO

eral reserve banks to rediscount the discounted f>«me paper of

2(.i

reserve banks to rediscount the discounted prime commercial

•Jl

other Federal reserve

'21

paper of other Federal reserve banks, at leastftv=e.*w:members

~l~i

of the Federal Reserve Board being present, when such action

taken and a

23 is taken and all present consenting to the requirement. ¥be

ese?<4se of this

•J4 e^efewe-e^-eh-is compulsory rcfeeemt-powcr by thehPefeal

-Reserve Board shalt-bc subject to an i

•25 jteseiare-ik>ftr4 shall be aubjcet-to an-irttereat chargo to-4he

51
51

51




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1 accommodated bank of not less than one nor greater than

1

accommodated bank of not loss than ono nor

1

aeeemmodatod bank of not loaa than one nor greater thaa

2

2

three por centum above the higher of-4ho rat

2

feee

3

in tho-diatriota immediately affeeted- at rates of interest to be

3

ift the clistriots-imaediatoly affootedr

4

eral board shall fix a special rediscount rate of not more than

5

three per centum in excess of the discount rate of the accom-

6

modated reserve bank.

three per centum above the higher of the rates prevailing

3 in the districts immediately affected.

4 fixed each week by the Federal Reserve Board.

per ooatum above the higher of the rates-prevailing
In such case the Fed-

1

(c) To suspend for a period not exceeding thirty days

1

(c) To suspend for a period not exceeding thirty days,

1

(o) To suBpeftd-fef-ft-pcriod-Ret-eseeeding thirty-days

8

(and to renew such suspension for periods not to exceed

8

{and from time to time to renew such suspension for periods

8

{and to renew aaeh auapeaaion for periods not te-eseeed-

9

fifteen days) any and every reserve requirement specified in

9

not to exceed- exceeding fifteen days}, any and every re-

9 ftfteeft days), -any aad- every reserve—yeqAcincn-t-speei^ed-

10 this Act: Provided, That it shall establish a graduated tax

10 serve requirement specified in this Act: Provided, That it

10 tft this Aet-; Provided, That it shaH-eatftMiBh a grad^a-ted-

11 upon the amounts by which the reserve requirements of

11 shall establish a graduated tax upon the amounts by whicli the

1 1 -tos-apea-thc am-ettttfe-by-whioli t

12 this Act may be permitted to fall below the level hereinafter

12 reserve requirements of this Act may be permitted to fall below

1 2 this Act-ffley-be-pcrniittcd4e-ffbH-feeJ:ew-fee4e¥ol hcrciEftftef

13 specified, such tax to be uniform in its application to all banks;

13 the level hereinafter specified, such tax to be uniform in its

13 specified, stteh tax to bo ufttfefm-itt its apptikatieB—te-aB

14 but said board shall not suspend the reserve requirements

14 application to all Federal reserve banks and to member banks,

J.T:

15 with reference to Federal reserve notes.

15 required to keep the same reserves; but said board shaH-ae-fe

15

t^ft ti'l.C.9 "j " ' U li'u—S£b t Ct~Ti Oflrl' Ct—Sn

16 stispead—fee-seae? ¥e-f eqttffeffieitts-wife-? efeeftee17 reserve notca.
18

(d) To supervise and regulate the issue and retirement

18

(d) rCe- supervise and-rogula-fee-fee4satte-attd-fe-fa

18

(Ac) To supervise and regulate the issue and retirement

19 of Federal reserve notes and to prescribe the form and tenor

19 ef Federal-reserve notes und to preseribe-fee-fem-afift

19 of Federal reserve notes and to prescribe the form and tenor

20 of such notes.

20 ef such notes.-

20

To supervise and regulate through the bureau

21 under the charge of the Comptroller of the Currency the issue
22

and retirement of Federal reserve notes, and to prescribe

23

rules and regulations under which such notes may be delivered

24

by the comptroller to the Federal reserve agents applying

25
52

therefor.
52

of such notes.




HOUSE BIIJ,.

1

O W EN AMENDMENT.

HITCHCOCK \3IE\UJIllSjSTS.

(e) To add to the number of cities classified as reserve

(e) To add to the number of cities classified as reserve

(?>d) To add to the number of cities classified as reserve

2 and central reserve cities under existing law in which national

2 and central reserve cities under existing law in which national

and centra! reserve cities under existing law in which national

3 banking associations are subject to the reserve requirements

3 banking associations are subject to the reserve requirements

banking associations arc subject to the reserve requirements

4 set forth in section twenty of this Act; or to reclassify

4 set forth in section twenty of this Act ; or to reclassify

set forth in seettftfi-rwett-ty-ef this Act; or to reclassify exist-

5 existing reserve and central reserve cities and to desig-

5 existing reserve and central reserve cities aftd to desig-aate

ing reserve and central reserve cities Mid or to designate

6 nate the banks therein situated as country banks at its

6 fee banks- therein aituate^-as-eeaatfy-banks at4te diacrctioft

f ^-bftffe-^emft^j4ttarfee4-as-eoHfi-^-fefHAs-f^4te

7

7 or to terminate their designation as such.

i<>ninnate their d-csif/nation as snclt.

8

discretion.
(f) To suspend the officials of Federal reserve banks

9 and, for cause stated in writing with opportunity of hearing,

8

(l)-^--»ttspeftd-4he-<:»ffi(4aj:S— ef Federal reaorvc-bftftk-a

(f) To suspend—the officials of Federal -roacrve-baafes

9 and, for cause stated in writing with opportunity of heari-agr

discretion-

•'

tt 'i"t€i.™ ~ ~I Ot1 —(f ti"H.&ti ft"Cu. t^fr —tri —"VV iriiTiirJ*"'" YV~ir X'fc — OJ^pOl* 1-1111 1 1\ " OT~" ri€ tlf"

10 require the removal of said officials for incompetency, derelic-

10 feqtttte-tbe-fomoval of said officials-fef-meefflpetoie;';

1 0 ing, rcqtttye-4rke-H^Hiovnl-fti-sai4-ftfth4fi:t3~l(W iucoinBetefteyr

11 tion of duty, fraud, or deceit, such removal to be subject to

11

1 1 4t^(4te44rtft~t4— dtfhY fraudy-ftr dot^tpt, ouch removal to—be

12 approval by the President of the United States.

12 approval by

To suspend or

12

13 remove any officer or director of any Federal reserve bank,
14 the cause of such removal to be fortJnvith communicated in
15 writing by the Federal Reserve Board to the removed officer
16 or director and to said bank.

17

(g) To require the writing off of doubtful or worthless

(g) To require the writing off of doubtful or worthless

17

(* e) To require the writing oil' of doubtful or worth-

18 assets upon the books and balance sheets of Federal reserve

18 assets upon the books and balance sheets of Federal reserve

!.S

less .-issel-t iijion the buoks and balance sheets of Federal

19 banks.

19 banks.

111

reserve banks.

20

~M

"J L

Hf^rrfe-i-;»^-\4^-BttH-trf-4ht!j-A-e4:r--lrbe-H[)eratiHtts-ijJ:'-aiiy Fudi'f

(h) To suspend, for cause relating to violation of any of

17

(h) To suspend, for muse relating to violation 01" any <>!'

21 the provisions of this Act, the operations of any Federal

21 the provisions of this Act, the operations of any Federal

22 reserve bank and appoint a receiver therefor.

22 reserve bank and appeift-t a rooetfef-thefefef take possession
23 thereof and administer the same during the period of suspen24 sion.

25

(i) To perform the duties, functions, or services specified
53

25

26 the duties, functions, or services specified or implied in this

26 or implied in this Act.

(i) To require bonds of Federal reserve agents, perform

2(i

25

53

(/)

To rain ire bonds of Federal reserve agents for the,

fn'Uiful, •jH'i-fnriitimcc. of iJic. did'ax of their office.
53




HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

HOUSE BILL,.

1

Act, and tn make all mle.i and regulations necessary to enable

2 said board effectively
3
4

1

(*} To perform tho dutioa, functions, or services spooi-

2 fie^-or implied in this Act.

to perform the same.

(j) To exercise- general supervision over said, Federal
reserve banks.

5

(k) To authorize the use, as reserves of member banks,

6

Federal reserve notes, or bank notes based on United States

7

bonds, to the extent thai savl board may find necessaiy.

S

(1) To </rant by special permit to national banks applying

9

therefor the right to act as trustee, executor, or to exercise

10 general trust powers under such rules and regulations as the
11 said board may prescribe.
12

13

12

FEDERAL ADVISORY COUNCIL.

SEC. 13. There is hereby created a Federal Advisory

13

FEDERAL ADVISORY COONOIL.

12

SEC. 13. There is hereby created a Federal Advisory

13

FEDERAL ADVISORY COOTCIL.

SEC. 13. There is hereby created a Fedeial Advisory

14 Council, which shall consist of as many members as there are

14 Council, which shall consist of as many members as there are

14 Council, which shall consist of as many members as there are

15 Federal reserve districts.

Each Federal reserve bank by its

15 Federal reserve districts. Each Federal reserve bank by its

15 Federal reserve districts.

16 board of directors shall annually select from its own Fed-

16 board of directors shall annually select from its awn Fed-

16

board of directors shall annually select from its own Fed-

17 eral reserve district one member of said council, who shall

17 eral reserve district one member of said council, who shall

17

eral reserve district one member of said council, who shall

18 receive no compensation for his services, but may be re-

18

18

receive ft^-eompcnsatioa for his-services, but may-be—?e-

19 imbursed for actual necessary expenses.

19 iffiburacd for actual -fteeoaaory oxpeftse^ such compensation

19

imburaccl for actual - noocaoary expenses such compensation
and alloioances as may be fixed by the board of directors sub-

The meetings

receive tt

Each Federal reserve bank by its

20

of said advisory council shall be held at Washington,

20

and allowances as may be fixed by his board of directors

20

21

District of Columbia, at least four times each year, and

21

subject to the approval of the Federal Reserve Board.

21 ject to the approval of the Federal Reserve Board.

22

oftener if called by the Federal Eeserve Board.

22

meetings of said advisory council shall be held at Washing-

22

meetings of said advisory council shall be held at Washing-

23 may select its own officers and adopt its own methods of pro-

23 ton, District of Columbia, at least four times each year, and

23

ton, District of Columbia, at least four times each year, and

24 cedure, and a majority of its members shall constitute a quo-

24 oftener if called by the Federal Reserve Board.

The council

24

oftener if called by the Federal Eeserve Board. The'council

25 rum for the transaction of business.

25 may select its own officers and adopt its own methods of pro-

25

may select its own officers and adopt its own methods of pro-

5<t

The council

Vacancies in the council

54

The

54

.

The




HITCHCOCK

OWEN AMENDMENT.

BOUStt BU.l;,

AMENDMENTS.

1

shall be filled by the respective reserve banks, and members

1

cedure, and a majority of its members shall constitute a quo-

J

cod11ro, and a majority of its members shall constitute a quo-

2

selected to fill vacancies shall serve for the unexpirecl term.

2

rum for the transaction of business.

Vacancies in the council

2

rum for (he tnmsacliou of business.

3

shall be tilled by the respective, reserve banks, and members

:.',

shall he filled by the respective reserve, banks, and members

4

selected to fill vacancies shall serve for the uuexpired term.

4

selected to lill vacancies shall serve, for the unexpired term.

5

The Federal Advisory Council shall have power by

Vacancies in the council

5

The Federal Advisory Council shall have power (1) to

5

The Federal Advisory Council shall have power,

G

meet and confer directly with the Federal Reserve Board on

6

by itself or through its officers, (1) to meet and confer directly

7

general business conditions; (2) to make oral or written rep-

7 with the Federal Eeserve Board on general business con-

7

with the Federal Eeserve .Board on general business condi-

8

resentations concerning matters within the jurisdiction of

8

ditions; (2) to make oral or written representations

8

tions; (2) to make oral or written representations concern-

9 concerning matters within tbe jurisdiction of said board;

9

ing matters within the jurisdiction of said board; (3) to call

ft said hoard: (3) to call for complete information and to make

0 itself or through Us officers (1) to meet and confer directly

10 recommendations in regard to discount rates, rediscount

10

(3) to call for eomplutc information and to make rec-

10 for complete information and to make recommendations in

11 business, note issues, reserve conditions in the various districts,

11 ommendations in regard to discount rates, rediscount busi-

11 regard to discount rates, rediscount business, note issues,

12 the purchase and sale of gold or securities by reserve banks,

12 ness, note issues, reserve conditions in the various districts,

12 reserve conditions in the various districts, the purchase and

18 open-market operations by said banks, and the general affairs

13 the purchase and sale of gold or securities by reserve banks,

13 sale of gold or securities by reserve banks, open-market op-

14 of tbe reserve banking system.

14 open-market operations by said banks, and the general affaire

14 orations by said banks, and the general affairs of .the reserve

15 of the reserve banking system.

15 banking system.

16

16

16

17

REDISCOUNTS.

SKO. 14. That any Federal reserve bank may receive

17

EEDIOOOUMTO. POWERS OF FEDERAL RESERVE BANKS.
SEC. 14. That any Any Federal reserve bank may re-

17

REDISCOUNTS.

SEC. 14. That any Federal reserve bank may receive

J8 from any member bank deposits of current funds in lawful

18 ceive from any of its member bank banks, and from the United

18 from any member bank and from the United States deposits

19 money, national bank notes, .Federal reserve notes, or

19 States, deposits of current funds in lawful money, national

19 of current funds in lawful money, national bank notes, Federal

20 checks and drafts upon solvent hanks, payable upon presenta-

20 bank

notes,

Federal

reserve

and

20

reserve notes, «= and checks and drafts upon solvent member

21 tion; or, solely for exchange purposes, may receive from other

21

upon

solvent

banks

reserve

21

banks of the Federal reserve system, payable upon presenta-

22

22 system,

for

22

tion; « and, solely for exchange purposes, may receive from

Federal

28

other Federal reserve bank deposits of current funds in lawful

reserve banks deposits of current funds in lawful money,

24

money, national bank notes, e* and checks and drafts upon

Federal reserve banks deposits of current funds in lawful

drafts

23 money, national bank notes, or checks and drafts upon

23 exchange

24 solvent banks, payable upon presentation.

24

payable

upon

notes,
of

the

presentation;

purposes, may receive

from

or checks
Federal
or,

solely

other

25 national bank notes, or checks and drafts upon solvont t/tem26
55

25 solvent member or other Federal reserve banks, payable upon
26

ber or other Federal reserve banks, payable upon presentation.
55

presentation.

Reserve banks shall notpay interest on deposits.
55




HOUSE BILL.

HITCHCOCK AMEXDMENTS.

O\VEX A M E N D M E N T .

1

Upon the indorsement of any member bank any Federal

1

Upon the. indorsement of any of its member bank banks,

Upon the indorsement of any member bank with a

2

reserve bank may discount notes and bills of exchange aris-

2

any Federal reserve bank may discount notes, drafts, and

ica'vur of demand notice and protest any Federal reserve bank

3

ing out of commercial transactions; that is, notes and bills

3

bills

may discount notes, d raj Is, and bills of exchange arising out of

4

of exchange issued or drawn for agricultural, industrial, or

4

transactions;

5

commercial purposes, or the proceeds of which have been used,

5

exchange

6

or may be used, for such purposes, the Federal Reserve Board to

7

of exchange

arising

out

of actual

commercial
of

actual commercial transactions; that is, notes, drafts, and bills

inrlus-

of exchange issued or drawn for agricultural, industrial, or

6

trial, or commercial purposes, or the proceeds of which have

commercial purposes, or the proceeds of which have been used,

have the right to determine or define the character of the

7

been used, or mtty- are to be used, for such purposes, the

i

8

paper thus eligible for discount, within the meaning of this

8

Federal Reserve Board to have the right to determine or

8 have the right to determine or define the character of the

9

Act; nothing herein contained shall be construed to prohibit

9

define the character of the paper thus eligible for discount,

9 paper thus eligible for discount, within the meaning of this

10 such notes and bills of exchange, secured by staple agri-

10

Nothing

10

Act: n o t h i n g herein contained shall be construed to prohibit

11 cultural products, or other goods, wares, or merchandise from

11 in this Act contained shall be construed to prohibit such notes,

11

such notes, drafts, and bills of exchange, secured by staple agri-

12 drafts, and bills of exchange, secured by staple agricultural

12 cultural products, or other goods, wares, or merchandise from

13 products, or other goods, wares, or merchandise from being

13

being eligible for such discount; but such definition shall not

12 being eligible for such discount; but such definition shall not
13 include notes or bills issued or drawn for the purpose of carry14 ing or trading in stocks, bonds, or other investment securities.
15 Notes and bills admitted to discount under the terms of
16 this paragraph must have a maturity of not more than
17 ninety days.

that

issued

is,
or

notes,
drawn

drafts,
for

and

bills

agricultural,

within the meaning of this Act; nothing' herein.

or may be used, for such purposes, the Federal Reserve Board to

•14

el igible for such discount; but such definition shall not include

14

include notes, drafts, or bills coverin/i invrelij Investments or

15

notes, drafts, or bills covering merely investments or issued or

to

issued or drawn for the purpose of carrying or trading in stocks,

16 drawn for the purpose of carrying or trading in stocks, bonds,

16

bonds, or other investment securities, except bonds and, notes

17 or other investment securities, except bonds and notes of die

17 of /he

18

Government of the United Stales.

18 Ijcririari olilif/ttlions

19

admitted to discount under the terms of this paragraph must

19

interest of ir/iirh. I/nre been fjimmntced Inj tlie United States.

20

have a maturity at the time of discoim I of not more than ninety

20

Xotos and bills admitted to discount under the terms of

21

this paragraph must have a maturity at the time of discount

21 days.

Notes, drafts, and bills

fjorernmcnt

of the United Stales and

i/iteresl-

of -its dependencies lite principal

22 of not more than H-tftetv one hundred and eighty days:

and

Pro-

23 vided, hoifcver, That not more than fifty per centum of the
24 paper discounted for an;/ member bank shall have a maturity
25 exceeding ninety days and in no case, shall any member bank
5C




JJOUSE BILL.

OWKN AMfiMJMENT.

H ITCHCOCK A3H5NDME?fTS.

have, •morn I'/inii §200,000 of red'scounls Imvlnij a maturity
longer than ninety days.
-y:pfttt-(4i*>4Htk)i'suiricnt-ef-aniy member bftftfe-any defeat

3

Upon the indorsement of any member bank any Federal

4

reserve bank may discount the paper of the classes herein-

reserve bank jnay-ttiseottft-t-t-h-e-yajre-F-tft-lrh

5

before described having a maturity of more than ninety

before described having' a ma-Htf^y-tff

6

and not more than one hundred and twenty days, when its

not moio than one lui-H«feefl-t

6

7

own cash reserve exceeds thirty-three and one-third per cent

uanh reserve oxcec4

7

8

of its total outstanding demand liabilities exclusive of its

of -its total outstandin

S

&t-ontstaiKUng; dciiiiino liabti+titia—esehitiire of i4s

9

outstanding Federal reserve notes by an amount to be fixed

9

rudcra-t-pesei^e-Htrtett-by an ametHrt-to ho iixed

Upon tlio •indorscincftt-ftf- any rnomber-bank imy-j^e

or of the-<Atsae
-!:>c-fei'o tifijcribucJ imving u -mtaurity— ef—fnafe— that*—.ni

9 outstanding Federal

10 by the Federal Reserve Board; but not more than fifty per

10 by the Federal llesoiTu i?tfftf4t

11

cent of the total paper so discounted for any member bank

11 oc n tu in -of the- to ( t\ lr-pa

12

shall have a maturity of more than ninety days.

12 shall have ti

13

Upon the indorsement of any member bank any

14 Federal
15 such

reserve

of

17 more than six

one

10
w-fti a 1 1 ! 1 e r- ria-ttk

.1.1
ttt4-tty-i iy of move tha

12
An;

the ip

tt—«f —ativ member—bftttk a«y

13
j

14 Federal reserve bank may discount arcopla IK-OS of t-Heh V.»M;.-

14 An;/ L'\\lo! al tesmo bank may discount acceptances of

1.5 her banks which are based on the exportation ov importation

(5 *Hffr iiii-iiii>cr I m n k s wlik-h are based on the exportation or

not

16 or domestic shipments of goods and \vlik--h +t:s-Hh?e-HT hnrc n

IG importation of goods and which -mttfuff-Ht have a vmlurily

months and bear the signature of at

17 maturity at lime of discount ofr.ot more than sis three, months,

17 ut lint1.' <>j ilixcoviil oj not moro than six months and of

bank

may discount acceptances of

banks which are based on the

16 importation

13

s-k-i-t^e!-\'o exee(.;d;< thi

goods

and

which

exportation or

mature

in

least one member bank in addition to that of the acceptor.

18

and bear the signature of at least one member bank in addi-

18 <ici;i.'i>li!i!ci'i; bii-yd un domestic sld[»tti''iils of goods and which

19 The amount so discounted shall at no time exceed one-half the

!9

tion to that of (he aooepbr.

The amoun! <>j i'.wi.ltuiM'y *o

19 linn' i.i HHtti'i-Ur/ at linn' of ditscoiint of not 'more than four

20 capital stock of the bank for which the rediscounts are made.

'JO discounted shall at no titno exceed une-half ( h e c a p i t a l oiodt

20 HIM u /!>.•> and boar the signature of at least one member bank

18

1

21 aiid surplus of the hank for which iho yeuisconnls tin nindo.

21 in addition to that of the acceptor. The amount so dis22 counted sh;i,l! at no time exceed one-half the capital stock of
23 the bank for which the rediscounts are made.'

24

The aggregate of such notes and bills bearing the signa-

25

ture or indorsement of any one person, company, firm, or

57

24

The aggregate of such notes :i.n;l bills. Ijcaring the si^na-

25

ture or indorsement of any one person, company, linn, or
57

24-

The aggregate of such notes and bills bearing the signature or indorsement of any one person, company, firm, or

57




HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

E BILL.

1

corporation rediscounted for any one bank shall at no time

1 corporation rediscounted for any one bank shall at no time

1 corporation rediscounted. for any one bank shall at no time

2

exceed ten per centum of the unimpaired capital and surplus

2

exceed ten per centum of the unimpaired capital and surplus

2 exceed ten per centum of the unimpaired capital and surplus

3

of said bank; but this restriction shall not apply to the

3

of said bank; but this restriction shall not apply to the

3 of said bank; but this restriction shall not apply to the

4

discount of bills of exchange drawn in good faith against

4 discount of bills of exchange drawn in good, faith againet

4 discount of bills of exchange drawn in good faith against

5 actually existing values.

5 actually existing values.

5 actually existing values.

6

6

Any national bank may, at ita diaorction, accept drafts

6'

7

or bills of exchange drawn upon it having not more than six

7 or bills of exchange drawn upon it having not more th&&

8 montha sight to ran and growing out of transactions involv-

8 oix montha aight to run and growing out of transactions in-

9 ing the importation, « exportation, or domestic shipment of

9 volving the importation or exportation of goods having not

10 goods having not more than six months sight to run; but no

10 more than six months to run or growing out of the domestic

11 bank shall accept such bills to an amount equal at any time in

11 shipment of goods and having not more than Jour months

12 the aggregate to more than one-half the face value of its paid-

12 to run; but no bank shall accept such bills to an amount

13 up and unimpaired capital stock and surplus.

13 equal at any time in the aggregate to more than one half

Any national bank may, at its discretion, accept

7 drafts

or bills

of exchange drawn upon it having

8

not more than six months sight to run and growing out

9

of transactions involving the importation or exportation

10 of goods; but

no

bank

shall

accept

such

bills

11 to an amount equal at anytime in the aggregate to more
12 than one-half the face value of its paid-up and unirn13 paired capital.

Any national bank may, at its discretion, accept drafts

14 the feee par value of its paid-up and unimpaired capital.
15

Section fifty-two hundred and two of the Revised Statutes

15

Section fifty two hundred and two of the Rcvincd Staltt-tes

15

Section fifty two hundred and two of the Revised

19 at such time actually paid in and remaining undiminished by

17 No association ohall at any time be indebted, or in any way

17 No association shall at any time bo indebted; or in any way

18 liable, to an amount cxeocding the amount of ita capital etock

18 liable, to an amount exceeding the amount of its capital ateefe

19 at auoh time actually paid in and remaining undiminiaked-by

19 at such time actually paid in and remaining undiminished-by
20 losses or-othcrwisc, except on account of demands of the
21 nature following-;

22

18 liable, to an amount exceeding the amount of its capital stock

16 of the United Statca is hereby amended BO as to read aa folley e-t

21 nature following-;

17 No association shall at any time be indebted, or in any way

16 of the United Statca is hereby amended ao as to read ua follower

20 IOBBCB or othcrwioo, except on account of demands of the

16 of the United States is hereby amended so as to read as follows :

First. Notes of circulation.

22

First. Notes of circulation.

23

Second. Moneys dcpoaitcd with or collected by the

23

Second:—Moneys dopoaitcd with or collected. b;r the

20 losses or otherwise, except on account of demands of the
21 nature following:
22

First. Notes of circulation.

23

Second. Moneys deposited with or collected by the

24 ofisooiationt

24 aesooiation.

24 association.
58

58




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK

AMENDMENTS.

1

Third. Bills of exchange or drafts drawn against money

1

-£MixL Bills of exchange or drafts drawn against ateaey

1

Third— Billa of exchange or drafts-dfttwa against money

2

actually on deposit to the credit of the association, or due

2

actually—on, deposit to the ore4i-t-ef the asaociatieft^-ef-dtie

2

actually on dopoait to tho orodi-fe of tho-aooociation, or d«e

3

tVirrrfr>
U11UJ. UlU.

3 thereto.
4
5
6
7

Fourth. Liabilities to the stockholders of the association for dividends and reserve profits.
Fifth. Liabilities incurred under the provisions of sec-

4
5
6

femrth.

Liabilities to tho stockheldcra-ef- the aaseeia-

tiun for dividonda and reserve-profits;
Fifth. Liabilities incurred under tho provisions of sce-

4
5
6

7 -feieaa-fewej five, and fourteen of tho Fodorri reserve Act.

7

8

tions two, five, and fourteen of the Federal reserve Act.

Fourth.—Liabilities to tho stockholders of-thc asaeeiation for dividends and reserve profits.
Fifth.- Liabilities inourrod-Hfidef the provisiess-ef-seetiona two, five, and fourteen of the Federal reaeyye-Aefe

The Federal Reserve Board may authorize the reserve

8

The Federal Reserve Board may authorize the reserve

(

J

bank of the district to discount tlte direct obligations of mem-

9

bank of the district to discount the direct obligations of mem-

10

ber banks, secured by the pledge and deposit of satisfactory

10

ber banks, secured by the pledge and deposit of satisfactory

11 securities; but in no case shall tlie amount so loaned by a

11 securities; but in no case shall the amount so loaned by a

12 Federal reserve bank exceed three-fourths of the actual value

12 reserve bank exceed three-fourths of the actual market value

13

13

of the securities so pledged.

of the securities so pledged or one-half the amount of the

14 paid-up and unimpaired capital of the member bank.
15

Tlte rediscount by any Federal reserve bank of any

16

bills receivable and of domestic and foreign bills of exchange

15

The rediscount by any Federal reserve bank of any bills

16 receivable and of domestic and foreign bills of exchange shall

17 ami acceptances shall be subject to such restrictions, limita-

17

18

tions. and regulations as may be imposed by the Federal

18 board.

19

Reserve Board.

19

equitably extended to all of its member banks by each reserve

20

bank upon equal terms, and each member bank shall be entitled

21

as a matter of right to the rediscount of eligible paper to the

be subject to such regulations as may be imposed by the
The discount provisions of this Act shall be

22 full amount of its capital stock upon the lowest current rate
23
24

an amount of paper exceeding the amount of its capital stock

25
59

of discount, and no member bank shall be permitted to discount

except upon payment of a higher rate of discount, the increase
59




HOUSE

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

in rate of discount to be one per centum for an additional fifty
per centum, of discounts or part Hiereof and two per centum
for all in excess.

In no case shall a Federal reserve bonk dis-

count paper for a member bank in excess of twice the amount
of its capital slock irii/iout special avlliorili/ hi/ the board.
6

OPEN-MARKET OPERATIONS.

6

OPEN-MARKET OPERATIONS.

OPEN-MARKET OPERATIONS.

7

SBC. 15. That any Federal reserve bank may, under

7

SEC. 15. That any Any Federal reserve- bank may. under

HEO. 15. ?-ka4-am= Ant/ Federal reserve bank ?>!;<;*, iindoz*

8

rules and regulations prescribed by the Federal Eeserve Board,

8

rules and regulations prescribed by the Federal Ilcserve

•Tiles and regulations prescribed by the Federal Reserve Board,

9

purchase and sell in the open market, either from or to

9

Board, purchase and sell in the open market, ni home or

purchase and sell in the open market, either from or to

10

domestic or foreign banks, firms, corporations, or individ-

10

abroad, either from or to domestic or foreign banks, iiriv^,

domestic or foreign banks, linns, corporations, or individ-

11 uals, prime bankers' bills, and bills of exchange of the kinds

11

corporations, or individuals, prime cubic- transfers m;<i 1 - a n k -

uals, prime bankers' bills, and bills of exchange of the kinds

12 and maturities by this Act made eligible for rediscount, and

12

ers' bills acceptances and bills of exchange of the kinds ;:n;i

and maturities by this Act made eligible for rediscount, and

13

13 maturities by this Act made eligible for redisrovu;V-«-Hr'

cable transfers.

cable transfers.

14 eablo tranafora.
15

Every Federal reserve bank shall have power (a) to deal

Every Federal reserve bank shall have pcr.ver: (;;,) to

15

Every Federal reserve bank shall have power (a) to deal

16 in gold coin and bullion both at home and abroad, to make

16 deal in gold coin and bullion betk at homo awet or inroad, in

Hi

in gold ciiin ami bullion both at home and abroad, to make

17

loans thereon, and to contract for loans of gold coin or bullion,

17 make loans thereon, exchange Federal reserve notes for no!-;,

17

loans thereon, and to contract for loans of gold coin or bullion,

18

giving therefor, when necessary, acceptable security, includ-

18

gold coin, or gold certificates, and to contract forloans of .S'oid

IB

/.riving therefor, when necessary, acceptable security, includ-

19

coin or bullion, giving therefor, when necessary, acceptable ?(• -

19

ing tlio hypothecation of •infercsl-bearhif/

20

curity, including the hypothecation of United States bonds or

21

other securities which Federal reserve banks arc, rintiwri'ai- .'."
'i"2

[raited fcitafos twfttls: fbj—to iii'r^-

:23

fb-i-Ht-4}s-;+fk-ss«e4-%¥-a^-4^ier-e6tt^

15

olilir/afion.? of t!ie

24

ing the hypothecation of United States bonds; (b) to invest

24

hold; (b) to invcst-ia buy and -sell, at !ionn' or abroi:-:.

•J4 t^iiw (b) to bini and sett iniersst-beai-iny objir/filions of tie

25

in United States bonds, and bonds issued by any State,

25

bonds and notes of the United States baH-tis. and bea^••--;:--

i-5

60

60

United States and of its dependencies witert iiui/weiil, of
60




OWEX A M HMIMUMT.

HOITSK BILL.

lllTOHTKHUv AMENDMENTS.

1

fitted—by iiii y—HtiUo.-ttuHtfVT-rfe-hHfrtv-»r—?. rutrtH-f-w-Ki-h- /)///.<,

!

i-'i .••rini/i <iml ////."/•(•.-;/ i.-i i/iKiriin/cei! lii; tin- United States, and

2

notes, revenue- bonds, ami •warrants -icil/t a iiniluri/i/ from

::

li.r.-in'.t >>r iriirnj.nl.; tif (mil St<ite, county, or municipality, or

3

date of i>ttn:h<ise of

"•'•

"/lorl-iiiii'' •ut!erest-l.><'a-i-iti(/ obligations issued by foreign goc-

4

anticipation of the colLi'i-tion of la.res <>r in

iiiitii-ifn/l.i.nn

\

i-rniiK'iiln, inlli ii mat/in/!/ from t/ati' of pni'dtase of not

5

of the receipt of assured revenues by ant/ Slate, coirnly,

.">

exceeding one year, such purchases to be made in accordance

6

district,

(>

->rith rules and regulations prescribed by the Federal Reserve

7

purchases to be made in accordance with rules and

8

regulations prescribed by the Federal

county, district, or municipality; (c) to purchase from mem-

9

(c) to purchase from member banks and (o sell, with or

'.)

IJudfil-; (c) to purcliasi! from a moinbov ksn^s ':><i:ik and io

10 ber banks and to sell, with or without its indorsement, bills

10

without its indorsement, bills of exchange arising out of com-

JO

sell, with or without its own indorsement, billti p.f exehuugo

11 of exchange arising out of commercial transactions, as herein-

11

mercial transactions, as hereinbefore definedr-pa¥ftWe-itt-fe¥-

i..l

arising out of cominovial transactions, as hereinbeioj.c de-

12 before defined, payable in foreign countries; but such bills

12 etgft-eetmtrioa; but-such bills-of cxchauge-must-havo-not es-

12

fiiied--payn-blp/ in lercifi'ii-^nuntrica; bu-fe auch bills of exchange

13 of exchange must have not exceeding ninety days to run

13 cocding ninety days to run and must bear the signatee-af-fewa

18 tti-ttstr-kftv-c not exceeding nlnely days to run. and nmat bear

14 and must bear the signature of two or more responsible parties,

14 or more roopeftsibte parties, of which the last-ahull bu that of

14 -the signature of two-w more i-onponsiblo parties, of which

15 of which the last shall be that of a member bank; (d) to

15 a- member bank; (d) to establish each week,-or—as niueh

15

^trhe laat shall be Hint of a mc'nibov-4wmk-; (d) to establish eaeh

16 establish each week, or as much oftener as required, subject

16 oftcncr aa required: from, time to time, subject to review and

1C

^eervv-of as lunch oftuncr aa required publicly from, time to

17

to review and determination of the Federal Reserve Board,

17 determination of the Federal Reserve Board, «H*te rates of

17

lime, subject to review and determination of the Federal

18

a rate of discount to be charged by such bank for each

18

discount to be charged by swjh- the Federal reserve bank for

IS

Reserve Board, a rale of discount to be charged by such

19

class of paper, which shall be fixed with a view of accom-

19

each class of paper, which shall be fixed with a view of

19 bank for each class of paper, which shall be fixed with a

20

accommodating -tke commerce- ef thc-eemrtfy and business;

20

view of accommodating the commerce of the country and

21 modating the commerce of the country: and (e) with the

21

attd- (e) to establish accounts with other Federal, reserve

21

promoting stability in business; and (c) establish accounts

22

22

banks for exchange purposes and, with the consent of the Fed-

22

milh other reserre batiks and with the consent of the

23 banking accounts in foreign countries and establish agencies

23 eral Reserve Board, to open and maintain banking accounts in

23

Federal Reserve Board, to open and maintain banking

24 in such countries wheresoever it may deem best for the pur-

24 foreign countries, appoint correspondents, and establish agen-

•24 accounts in foreign countries and establish agencies'in such

61

61

9

consent of the Federal Reserve Board, to open and maintain

riot exceeding sir mo/il/iy. i.?.tiH-<i i/t

or municipality

of

the

United ti tales, such

Reserve

Board;

25 pose of purchasing, selling, and collecting foreign bills of
61




JJOUSE KILL.

HITCHCOCK AMENDMENTS.

O \V KK AM KM) JIEXT..

1

exchange, and to buy and sell •with or without its indorsement.

1

cies in such countries wheresoever it may dwi' bi's! for the pur-

1 countries wheresoever it may deem best for (he purpose of

2

through sue!) correspondents or agencies, prime foreign bills

2

pose, of purc.basiiisf, selling, and col|i»r-.Hn.»; &-»r*4+F+t bilk of ex-

2

piiri'liasin::;, selling- a n d collecting fondgn hills or exchange,

8

of exchange arising' out of commercial transactions which

:•>

chsinge, and lo buy and sell with or wilh'Hit it-s i n i b ' r s ^ n i c i n .

M

iflti'rx of iTfilii, unit iYurfli>r.i' checks, iind to buy and sell

4

have not exceeding ninety days to run and which hear the

4

through such correspond en ts or agencies. priiHe-£-*v4«w bills nl

4

with or without its indorsement, through such correspond-

5

signature of two or more responsible parties.

5

exchange arising our. 01 actual coinmerciiii •i-vsirsaciions which

5

enfs or agoni.-ies. prime-fere ign bills of exchange arising out of

6

have not oxcc'editva; more Iliou niiieiy days in run an;! which

6

"ommoreial transactions which have not exceeding ninety

7

bear the signature of two or more responsible oar lies.

7

days (o mil and which bear the signature of two or more

3

responsible parties.

9

9

r.OVERN.MENT DEPOSITS.

9

GOVERNMENT DEPOSITS.

<K)VKRNirENT DEPOSITS.

16. That all The moneys «ev held in the general

LO

Si-x'. 16. That all moneys now held in the general fund

fund of the Treasury, except the (ivo per oenhiij! i'und for the

11

oi'thr Treasury ox cop f the fi vo per centum fund for the red em (;-

redemption of outstanding national-bank notes shall,

12 redemption of outstanding iiatiomu-bank notes and ike

12

tii;u of outstanding national-bank notes and the funds prn-

13

upon the

Treasury.

13 funds provided in this Act for Ike redemption '>/ Federal

13

tided in this Act for the. redemption of Federal reserve notes

14

within twelve months after the passage of this Act,

14 reserve notesfrttftH-may, upon the direction of (he Secretary

14 shall, upon the direction of ihe Secretary of the Treasury.

lf>

bo deposited in Federal reserve banks, which banks shall

15 of the Treasury, within twe^veHiWH^s-tfes'-ffe^

1-^

1G act as fiscal agents of the United States; and thereafter the

16 tbia Act, be deposited in Federal reserve banks, which banks

I'! deposited in Federal reserve banks, which banks shall act

17 revenues of the Government shall be regularly deposited in

17 skatt, wli'jii requiiwl It/ Ihi Sccn'iai-;/ nj //.v "A ••'.•.•.•.•//;•.'/, .•;/'."';'

17

as lis:;:i! a gen is of (lie United States; and thereafter the

15

IS

act as fiscal agents of the IhiiK^l atalcs: and Ttterefif-teF t h e

15

royeiUK'-: of the 'joverunient shall be regularly deposited in

19

revenues of the Government or <jny purl fli'-yp.oj' r^Hr-fl i:wy be

I.'.)

siich bank. 1 ;, and disbursements shall be made by cheeks

20 feg-ttlai'ly deposited in such banks, and dhbursemiMUs 4ttb!4

20

drawn against such deposits.

10

SEC. 1G. That all moneys no\\ heJd in (he genera! fund

10

11

of the Treasury except (he live per centum fund for the

11

12

direction of the Secretary of the

such banks, and disbursements shall be made by checks

19 drawn against such deposits.

21
22

SEC.

unii/ be made by cheeks drawn against such ilepiisiis.
No public fii mis of the Pliiliw>ht.v {stands. '»• of fhc

23 pottiil Sfiviiif/s.

or a»n Gorprnwetil fmu/3, .?/''/// be. i!.,-iir,.n!fd

24 in 'In'- conlinenl'jl (fulled fi!i.i/f'fi
25

in. <m-ii !ninl,- >x~-'

lifiwiriiiif/

to the system established hi/ this Aci: Provided, hwveoer,

-v^hift—i-wj^fe mouths after • the—passage—el—Ehts—A^tr l)e




HOUSE IHJ..U

HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

1

That nothing in this Act shall be construed to deny the right

2

of the Secretary of the Treasury to use member banks as

3

depositories.

4

The Secretary of the Treasury shall, subject to the

4

5

approval of the Federal Reserve Board, from time to time,

5

proval of the Federal Eoaorvo Boafdrfe&tH—feme—to—feme?

5 proval of the Federal Keserve Board, from time to time, appor-

6

apportion the funds of the Government among the said

6

apportion the funds of the Govonnaeat— ameflg— the—said

6

tion iiho funds of the Government deposits among the said

7

Federal reserve banks, distributing them, as far as practi-

7

Federal reserve banks, -distributing thorn, as far as prac-tt-

7

Federal reserve banks, distributing them-,- in proportion to

8

cable, equitably between different sections, and may, at

8

cable, equitably bct-weea—different— sections, aad— mayr— at

8 their capital stock as far as practicable, equitably between

9

their joint discretion, charge interest thereon and fix, from

9 thejf-jeint discretion, charge-interest thcroea and fix, frost

9 different sections, and may, at their joint discretion, charge

10 month to month, a rate which shall be regularly paid by the

10 flaeath'to month, a rate whi^h aluill be-eegaiftfiy-ptH-d-by-tae

10 interest-thereon and fix, from month to month, a rate waieh

11 banks holding such deposits: Provided, That no Federal

1 1 banks holdin

11 ahull bo regularly paid-by the banks heidiag such -depeaite-i

12 reserve bank shall pay interest upon any deposits except

12 reserve-bank shall pay interest upon aiiy-deposite-eaeep-t

12

13 those of the United States.

13 those-ef- the

13 ape-n any dopoaita -except those-of the United States; Pro--

The Secretary of the Treasury shallr-attfeje&t-te-tbe-ttp-

such deeaHs^Prort'efee^jrhat— ae—Federal

4

The Secretary of the Treasury shall, subject to the ap-

Provided, That no Federal reserve bank shall pay intcrea-t

14 •vided, That for the purposes of collection and transfer only
15 the Secretary of the Treasury may designate national banks
16 as Government depositories.
17

No Federal reserve bank shall receive or credit deposits

17

IS

except from the Government of the United States, its own

18

I!)

member banks, and, to the extent permitted by this Act,

20

from other Federal reserve banks.

17

j^o Federal reaorvc bank ahall receive or crcdit-depesi-fes

18

efft the Government of the United States, ite-ewa

19

19

iiiunibor banks, and, to the extent pcrmittod-by thia Act?

All domestic transactions

20

20

t'ruia other Federal reserve banks.—All domestic trafteae-rieas

21 of the Federal reserve banks involving loans made by such

21

22

banks, rediscount operations or the creation of deposit ae-

22

^

22

23 counts shall be confined to the Government and thedeposit-

23

-U»¥t*H&i«^^

23 eouata shall bo confined to tho Government and tho dcposi-fe-

24

ing and Federal reserve banks, with the exception of the

24

25

purchase or sale of Government or State securities or of gold

25

26

coin or bullion.

26
63

jfo Federal
fee G o

21 <rf tho Federal reserve banka involving loana made by suck

ttVf^^

-tiefi— e-t— tfee

24 i-ag aad Federal reserve banko, with tho exception of the
25

03

baukB, rudiacount oporatioaa or the creation of dcpoait ac-

-er sale of GoYorntaeftt-ef-Statc acouriticB or of-el4
63




OWEN AMENDMENT.

HOUSE BILL.
1

NOTE ISSUES.

1

2

HITCHCOCK AMENDMENTS.
1

NOTE ISSUES.

SEC. 17. ¥bftt Federal reserve notes, to be issued at

2

>fOTE ISSUES.

SEC. 17. That Federal reserve notes, to be issued at

2

SEC. 17. That Federal reserve notes, to be issued at

3

the discretion of the Federal Reserve Board for the purpose

3 the discretion of the Federal Reserve Board for the purpose

3 the discretion under authority of the Federal Reserve Board

4

of making advances to Federal reserve banks as hereinafter

4 of making advances to Federal reserve banks through

4

for the purpose of making advances to Federal reserve banks

5

set forth and for no other purpose, are hereby authorized.

5 the Federal reserve agents as hereinafter set forth and

5

as hereinafter set forth and for no other purpose, are hereby

6

The said notes shall be obligations of the United States

6 for no other purpose, are hereby authorized.

The said

6

authorized.

7

and shall be receivable for all taxes, customs, and other

7

notes shall be obligations of the United States and shall be

7

States and shall be receivable for all taxes, customs, and other

8

public dues. They shall be redeemed in gold or lawful

8 receivable for all taxes, customs? and other public dues ex-

8

public dues but shall not be. I/old as reserves by member banks

9 cept customs.

9 or by a reserve bank.

9 money on demand at the Treasury Department of the United

They shall be redeemed in gold or-kwfet

The said notes shall be obligations of the United

They shall be redeemed in gold w

10 States, in the city of Washington, District of Columbia, or

10 fHeaef on demand at the Treasury Department of the United

10 lawful mettey on demand at the Treasury Department of the

11 at any Federal reserve bank.

11 States, in the city of Washington, District of Columbia, or

11 United States, in the city of Washington, District of Colum-

12 in gold or lawful money at any Federal reserve bank.

12 bia, or at any Federal reserve bank.

13

13

13

Any Federal reserve bank may, upon vote of its direc-

Any

Federal reserve bank may, upon- • vote—ef—tts

Any Federal reserve bank may, upon vote of its clirec-

14 tors, make application to the local Federal reserve agent

14 directors,- make application to the local Federal reserve

14 tors, make application to the local Federal reserve agent

15 for such amount of the Federal reserve notes hereinbefore

15 agent for such amount of the Federal reserve notes here-

15 for such amount of the Federal reserve notes hereinbefore

16 provided for as it may deem best.

16 inbefore provided for as it may deem-best require.

16 provided for as it may deeta-fees* require.

Such application shall be

Such ap-

Such application

17 accompanied with a tender to the local Federal reserve agent

17 plication shall be accompanied with a tender to the local

17 shall be accompanied with a, tender to the local Federal

18 of collateral in amount equal to the sum of the Federal reserve

18 Federal reserve agent of collateral in amount equal to the

18 reserve agent of collateral security in amount equal to the sum

19

19 sum of the Federal reserve notes thus applied for and issued

19 of the Federal reserve notes thus applied for and issued pur-

20 pursuant to such application.

20 suant to such application.

notes thus applied, for and issued pursuant to such appiica-

20 tion.

The collateral security tlr.is offered shall be notes and

The collateral security thus

The collateral security thus

21

bills accepted for rediscount under the provisions of sec-

21 offered shall be notes and bills accepted for rediscount under

21 offered shall be notes and bills accepted for rediscount under

22

tion 14 of this Act, and the Federal reserve agent shall

22

22

the provisions of section 14 of this Act, and the Federal

the provisions of see-tiea—H—of this Act, and the Federal

23 each day notify the Federal Reserve Board of issues and

23 reserve agent shall each clay notify the Federal Reserve

23 reserve agent shall each day notify the Federal Reserve

24 withdrawals of notes to and by the Federal reserve bank to

24

Board of all issues and withdrawals of Federal reserve notes

24

Board of all issues and withdrawals of Federal reserve notes

25

to and by the Federal reserve bank to which he is accredited.

25

to and by the Federal reserve bank to which lie is accredited.

25 which he is accredited.

The said_ Federal Reserve Board
64

64

(54




HOUSE 151 LI.

HITCUCOCK AMENDMENTS.

OWEN AMENDMENT.

I

shall be authorized at any tiiue to eali upon a Federal reserve

1 The said Federal Jieserve Board shall be authorized at any

The said Federal Reserve Board shall be authorized at any

"2

bunk for additional security to protect the Federal reserve

2 time to call upon a Federal reserve bank for additional

time to call upon a Federal reserve bank for additional security

3

notes issued to it.

3 security to protect (he Federal reserve notes issued to it.

to protect, the Federal reserve notes issued to it.

Whenever any Federal reserve bank shall pafr-turi-ef

-Whenever- any Fodcr-al reserve -bank shall pay out or

5 disburac Federal reserve notua ii3ijiie44e-irt-as4tefeiftb€lftt'e-pyt»-

5 disburse Fodora-1 reserve notes issued to it ao hereinbefore pro-

6 vidocl, it, shall sugri'gn-to, in i48-o-wti-¥tm-Us-ft.R

G vided, it -shall -segregate In Its own vaulto and nhal! carry to

7 it-special- rcscrvc-accoHiit oH-rt8-bf

7 ft-;i|)ocial rciicrvo account on ita bookn gold -or lawful money

8 equal in amtHHtt-—H>— fetfty-t

6 equal in amount to thirty three and onu third pur cciituiii

9 ef the reserve -ftetei ao-pnifl-ettt- by H, sui'h- reserve-4e-be-Hi-e4

9 of the reserve notea ao paid out by-it, such reserve to bo

10 for the redemption of said roaeiTC iU)tes-tts-p<=eseft4etl-i-b-H4

10 used for-trhc redemption of said- reserve note.'j as projontod-}

11 any federal vcsevve bunk-aa uaiug any pari-ef— s

1 1 but- any Federal reserve bank ao uaing any part of- sttek

12

12 reserve to redeem notes- shall- immodiatoly carry to said

13 eetm-t-mi amount of gold or-knvl'iil

18

14 aattt- rcacrvc efiuftt-te-tMi'ty-

14 to -make .said reserve- equal to thirty three -and one-third per

'4

reserve account an amount- of gold or lawful money aufficient

15 of ir.3 outstanding Federal
16

Whenever any Federal reserve bank shall pay out or

17

disburse Federal reserve notes issued to it as hereinbefore pro-

17 gold or lawful money of not less than thirty-Jive per centum

17

18 video, it shall segregate hi its own vaults and shall carry to

18 against its deposits and its Federal reserve, notes in actiial

18 notes issued to it as hereinbefore provided, it shall segregate

19

a special reserve account on its books gold or lawful money

19 circulation, but the amount, of gold in tin'. Federal reserve

19 «nd turn over to its reserve agent r/old coin or gold bullion

20

equal in amount to thirty-three and one-third per centum

20 bank, together n-ith llie an>ount deposited % it iri.il: the Trras-

20

or United States gold, certificates to the amount of the face

21

of the reserve notes RO paid out by it, such reserve to be

21 unj, fikall be al least equal to thirty-three nntl ont-Htird per

•Jl

valne of the notes so outstanding, or, at its option, shall

22

used for the redemption of said reserve- notes as presented:

22 centum of the Federal reserve notex issued to said bonk and

22

segregate and turn over to the reserve agent gold coin or

23

but any Federal reserve bank so using any part of such re-

23 in. actual circulation and no! qf/'sset by gold or lawful in envy

23

gold bullion or United Xltiies gold certificates to the amount of

24

serve to redeem notes shall immediately carry to said

16

Every Federal reserve bank shall maintain reserves in

65

Whenever

any reserve bank shall pay oni or disburse Federal reserve

24 forty-five

25 reserve account an amount of gold or lawful money sufficient
65

16 eefttum. oi'4te outstanding Federal reserve notes.-

per centum of such face value and in addition




HOUSE BILL.

HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

1

accepted for rediscount under the provisions of this Act, or

3

refunding notes of the United States hereinafter provided for,

4

or both such collaterals and refunding notes equal at their face

5

to make said reserve equal to thirty-three and one-third per

thereto collaterals consisting of promissory notes a,nd bills

2

1

value to one hundred per centum of the face value of the notes

6 so outstanding.
7

Such collaterals may be exchanged from

time to time for other collaterals of like quality and of equal

8 face value or refunding notes within the limitations aforesaid:
9

Provided, That whenever and so long as such reserve shall fall

10

and remain below forty-five per centum, the reserve bank shall

11 pay a special tax upon the deficiency of reserve at a rate
12 increasing in proportion to such deficiency, as follows:
13 For each two and one-half per centum or fraction thereof
14 that the reserve falls below forty-five per centum a tax shall
15 be levied at the rate of one per centum per annum: Provided
16 further, That no additional circulating notes shall be issued
17 whenever and so long as the amount of such reserve falls
18 below thirty per centum of its outstanding notes: Provided,
19

That the amount of such tax paid by the bank during a

20 fiscal year shall be charged to the member banks in its district
21 in proportion to their average discounts during that year.
22

centum of its outstanding Federal reserve notes. Notes so

Notes so paid out

22

Notes so paid out shall bear upon their faces a distinctive

23 paid out shall bear upon their faces a distinctive letter and

23 shall bear upon their faces a distinctive letter and serial

23

letter and serial number, which shall be assigned by the

24 serial number, which shall be assigned by the Federal Reserve

24

24

Federal Reserve Board to each Federal reserve bank.

25 Board to each Federal reserve bank.

25 Board to each Federal reserve bank-

66

Whenever Federal

22

deposited with the Federal reserve agent.

number, which shall be assigned by the Federal Reserve

66

Whenever Federal

Wheu-

25 ever Federal reserve notes issued through one Federal re-




HOUSE BILL,

OWRN AMENDMENT.

TUTCnOOOK AMENDMENTS.

1

reserve notes issued through one Federal reserve bank shall

1 reserve notes issued through one Federal reserve bank shall

I

serve b a n k shall he received by another Federa, reserve bank

2

be received by another Federal reserve bank they shall be

2

be received by another Federal reserve bank they shall be

-

they shall be returned promptly for redemption to the Fed-

3

returned for redemption to the Federal reserve bank through

3

immediately promptly returned for credit or redemption to the

:i

eral reserve bank through which they were originally issued,

4

which they were originally issued, or shall be charged ofl'

4

Federal reserve bank through which they were originally is-

4

w shall be-eharged-eil' agiiinnt GorcrinHeftt-dcpoaits-and re-

5

against Government deposits and returned to the Treasury

5

suodf-or shall bo charged off against Govcrnnietrt-deftoaita and

5

hirnc4-4e-tho Treasury of die United States, or shall bo prc-

6

of the United States, or shall be presented to the said Treas-

6

returned to the Treasury of the United Statc3, of shall be

'>

sett-ted to the aaid Treasury tor re<temp4t«ft7

7

ury for redemption.

No Federal reserve bank shall pay out

7

presented to cho aaid Treasury—for rodc-mp&efi-.

No Fed-

i'

reserve bank shall pay out notes issued through another

8

notes issued through another under penalty of a tax of ten

8

eral reserve bank shall pay out notes issued through

8

under penalty of a tax of ten per centum upon the face value

9

per centum upon the face value of notes so paid out.

9

another under penalty of a tax of ten per centum upon

9

of notes so paid out.

Notes

No Federal

Notes presented for redemption at

10 presented for redemption at the Treasury of the United States

10 the face value of notes so paid out.

Notes presented

to

the Treasury of the United States shall be paid and returned

11 shall be paid and returned to the Federal reserve banks

11 for redemption at the Treasury of the United States

11

4-o-tfee Fcdoraj- reserve- banks through whioh thoy-wore orig-

12

through which they were originally issued, and Federal re-

12 shall be paid out of the redemption fund, and, if lit for cir-

12 iimlly- issued, and Federal reserve notes received by the

13 serve notes received by the Treasury otherwise than for

13 culation, returned to the Federal reserve banks through

1.3

14

14

14 for lawful money out of the five per centum redemption fund

redemption shall be exchanged for lawful money out of the

whicli they were originally issued.

Federal reserve notes

Treasury otherwise than for redemption shall be exchanged

15 five per centum redemption fund hereinafter provided and

15 received by the Treasury, otherwise than for redemption.

15

hcrri'uuit'tei' provided tvrid returned an* hereinbefore provided

16 returned as hereinbefore provided to the reserve bank through

16 sh*H may be exchanged for lawful inewey gold out of the &w>

Hi

to tltc reserve bank through which they were originally

17 which they were originally issued.

17

per centum redemption fund hereinafter provided and re-

17

tsstted out of tlie redemption fluid ami shall not he reissued

18 turned as hcrciftboforo provided to the reserve bank through

18

e.,r<;ept, upon compliance irith. the co/tdil.ions of an original

1.9

which they wore originally issued, or they may bi- returned

1.1)

issue.

20

to such bank for the credit of the United Stales.

21

reserve notes unfit for circulation shall be returned by the

22

Federal reserve agents to the Comptroller of the Currency

Federal

23 for cancellation and- destruction.

24

The Federal Reserve Board shall have power, in its dis-

24

The Federal .Reserve Board shall ha¥e-pdj?fefT-kt its dis-

'Irhe-t^c'dcral-Reserve Beard .-Imil-have power. i-H-4-t^-di^-

25

cretion, to require Federal reserve banks to maintain on de-

25

crctiou. to require each Federal reserve banks ban!; to main-

r-to require Federal reserve banks te shall m a i n t a i n on

67

07




HITCHCOCK AMENDMENTS.

O W K N AMENDMENT.

HOUSE BILL.

1 posit in the Treasury of the United States a sum in

1 tain on deposit in the Treasury of the United States a sum in

deposit in the Treasury of the United States a sum in gold

2 gold equal to five per centum of such amount of Fed-

2 gold etfttal-feo-five per w.ntum-Hf .fu.ffici,enl in t/if.j'tidrjiiu.'iit of the

equal to live per centum of such amount of Federal reserve

3 eral reserve notes as may be issued to them under

3 Secretary of the Tr/'as-uri/ for thi' redemption of awl'i iniiottfrt

tiotes as may he issued to them and, outstanding under the

4

4 H£ the Federal reserve notes tts nuiv4>e issued to -tJwm-twfk+ji-&tft

provisions of this Ai'tnndsitfi/i-fidrhtwnnl

the provisions of this Act; but such five per centum

sums fix (.lie Secre-

5 shall be counted and included as part of the thirty-three

5

tittwm-frf-thia A-et such ban/,: /nil in no event Ze&s l/irm /ire,

ln.ri/ of tli" 'I'ri'iisni'i/ ma.'i/ from tinif to time ilec,id<> l.o he neces-

6 and one-third per centum reserve hereinbefore required.

6 per centum: but such five per centum deposit of gold. shall

sary, not ('.Kce.eding in. the, aggregate ten, per centum, but such

7

The

7 be counted and included as part of the thirty-three and

foe per-eentum deposit of gold. ".which shall be segregated

8

to grant in whole or in

8 one-third

reserve hereinbefore required.

and maintained as a trust fund shall be counted and included

9 the application of any Federal reserve bank for Federal

9 The sai4 board shall have ttfee the right, acting thronyh

as part of the thirty-three and-tm-e-third-pei'-eeiituiii reserve

10 reserve notes; but to the extent and in the amount

10 the Federal reserve agent, to grant in whole or in part

10 keFetftbt&H-'c required against said notes. The said board

11 that such application may be granted the Federal Reserve

11 or to reject entirely the application of any Federal reserve

11 shall ttjrHe— -H-rtve—the right-It) grant ttt-wh-otc or in part or to

12 Board shall, through its local Federal reserve agent, deposit

12

bank for Federal reserve notes : but to the extent aftd-ift-t-ke

12 -Hy-ee-^etttweiy the application of any Federal reserve bank

13 Federal reserve notes with the bank so applying, and

13 ftttwturt that such application may be granted the Federal

13 for Federal reserve notes-;—btrt— to the extent- and- in the

14 such bank shall be charged with the amount of such notes

14 Reserve Board shall, through its local Federal reserve agent,

14

15 and shall pay such rate of interest on said amount as may be

15 4e{-wt4-t supply Federal reserve notes -TVH44+ !o Hie fetttrk* IxiiiL'

ttrtttfit —tfe —l«e»l —F

16 established by the Federal Reserve Board, which rate shall

16 so applying, and such bank shall be charged with the amount

-i-t—F-edefftl— fesewe-^totes —with the—baHfe-«t)-

17

not be less than one-half of one per centum per annum, and

17

of such notes and shall pay such rate of interest on said amount

18 the amount of such Federal reserve notes so issued to any

18

as may bo established by the Federal Reserve Board,

said

board

shall

also

have

the

part or to reject

right
entirely

19 such bank shall, upon delivery, become a first and para20 mount lien on all the assets of such bank.

per

centum

t stte-h—tttiefttwti- may b e - r a n t e d the— federal

rtp-ply-ttttfr- »ftd-sHelt, provided said

18

ini.t/i

Ilif-

rai/iiirciDents of /his

anil, collateral security

19

reserve bank

Act

as

find, o Ix'j-wise

to

complies

gold reserve

conforms

to

its

iumimi, and the amount of such Federal reserve notes so

iiroi.'i-ii.onx.

issued to any such bank shall, upon delivery, become a

amount of such notes i*n4—shall -pay—t^ttoh rate -of interest

['lie

bank

shall

first and paramount lion on ail the assets ol such bank.

be

charged

with

the

ed by tlie-^

-of one pei=
24

of auoh Federal reserve

25 ttetet—se—tatmett—te—*H s«elt—btts- — sfeaHr which, upon de—
68

68




( M V I v N A.MKNMMfKN'T.

H O I S K B1IJ..

1

livery, .-ilifi/l

become ;i lirsl ;ind i i a r a i i i o i i u l l i i ' i i on all the

2 assets of such bank.
3

Any Federal reserve bank may at any time reduce its

Any li'ederal reserve hank may n.t any time reduce ils

:'

A.ny Federal resei've bank may at any time reduce its

4

liability for outstanding Federal reserve notes by the

4 liability for out.stiiiidin.u: Federal reserve notes by i+se

4

liability tor outstanding Feiieral reserve notes by f-ke

ft deposit of Federal reserve notes, whether issued to such

5 tfe-|*»^ —fif

<i

bank or to some other reserve bank, or lawful money

6 .Federal reserve notes, •ffhethcr — tested —to —sw4t—btt-nk

6

Battk—&e—se—amtro oilier reaefvt!—bttttk-7- or lawfcl— m

7

of

-1
i

w—te-aomo other reserve— bank, -w- lawful niefMy— t*f— i-he

7

of the United States, ':-»f-gok44Hili'u)ii7 redeemi-ny the, same, and

8

Federal reserve agent or with the Treasurer of the United

8 IJiiitod States, gold certificates, or gold bullion. 'A--H-h-emy-

3

depositiny them with tt«¥ its Federal reserve agent or with the

9

the

United

States,

or gold

bullion, with

Slates, and such reduction shall be accompanied

any

by a

deposit-in ri, tril//

its Federti/ re.se.w nae-nl.

r

9 Fudoral reserve agon-tr ni- with-tke fretu-ui't'r-tif-4^e-

:

10 correp-pondiiiir reduction in the required reserve fund of

10 Statca,—ttttd—stteh— reduction sha-H be.~«teeeffipatwtl— 4re— a

I!

lawful money set apart for the. redumption of said notes and

11 eorrenponding reduction—w—the remttt-vd—-resef¥e— fetl— e-t-'

l~2

by the release of a corresponding amount of the collateral

9 -treasurer o£4lte-l?iiited Stal-es7-tm4-a-Hfeh— t:etttiet:

12 lawful money act apart for the reeemplieii of atiicl ttfrfe3-;md

13 security deposited with the local Federal reserve agent.

10fteeetttffiHM-ed—by—a con'ospouding ffiAueriett— m—thei of .j»wft
iote^-^twt4)¥-i:J:te-t:ej'eaafe of ;i >.'<.)iT».'i;x

13 bv the rolenac of a corresponding amount of ihe-mfekH'a -1

• il

trt4-!:rt-lrttfti4-*et'hH4Vr-Tteh>B*rtf4-- wtrli the 4tMt4~Fe

tccurity deposited witli-44-ie loetht-^^atvi-fesoi've-itigeti^.

I. I

ntfett!-, n'iiit xluill for i''ii I'll tin-in lo :/i<- 'Aw/.s/.'r// /nr

14
15

! hi', /''eili'i'nl rexerrc iii/i'til xlml.1 linltl »\u:lt i/o/c' wrl Ji-

i .'")

16 culf.s ami, gold available Jor n--ciio>ii/p- for (!IK ou! ••stand iiii'/ l-'ni-

iU

et4tate!ttlr-4t^+Hs44 eti—w^rt— >he4^fiil L'-etiemi feset^vti-n *L e ft t -i'vt

17 <:ral reserve notes when offertui by lii'i reserve bank (>j -icli'tch

17

tfe-fHf ff eerwtri— »f —Kef feftti —He.^rt^tt —ftfrte;* — rftfwoffetJ —wt-f ^

13 lie is a director.

18

k—tmn shall—tri- tlir.—^tue" uiiie— ati-hattfHt

Upon Ihc. re'/ueat of lite Sp.wcUtri/ of tin;

19

Any Federal reserve bank may at its discretion withdraw

eral reserve, a(/tjnl to lnnii>»tit said '/old !o tin'. Ti-fiaxiu-ti <>f //n-

21

22

Tre<urnry the Fe.de.ral Reserve Board .thai I reqiiire, I he Fed-

20

United Stales for {he. re//<!ii<i)l,/<jn ojsm-.h n files.

-:Vti-¥-Kfneftll I'i'St^-^tt-bfrHk U ! U V 111 1 i-S-

•to

Any FederaJ rescr\'e bank may at its disci'otion witiidrav.

23 collateral deposited with the local Federal reserve agent for
the protection of Federal reserve notes deposited with

-iH-r- St-r-Hr-,--;fK-f-V,- i

(,lie prr»tt'crion of /* l-'i'deral rosci^'e 'infe.s fio|:<.»Mled v v i l h il

25 it and shall at the same time substitute other collateral

21

collateral deposited with I lie local Federal reserve agent fur

24

the J^<-

and shall at the same l i m e substitute !i'n-refor other i-ike. col-

69

69




OWEN AMENDMENT.

HOVSK HI I . I . .

HITCHCOCK AMENDMENTS.

1

of equal value approved by tho Federal reserve agent under

1

lateral of equal value amount approved by the Federal reserve

1

bank upon funds to -fcho crcdit-of said -depositor in said-reseree

2

regulations to be prescribed by the Federal Reserve Board.

2

agent under regulations to be prescribed by the Federal

2

bank lost mentioned, nothing herein contained to be cea-

3 atruod as prohibiting member banka from making-^^eaaeftftkte

3 Eeserve Board.

4

oh.ttr.gca to oovor actual expenses incurred in collcetiag-aftd

5

In order to furnish suitable notes for circulation as

5

remitting funda for their patrons In order to furnish suitable

6

Federal reserve notes, the Comptroller of the Currency shall,

6

Federal

1

under the direction of the Secretary of the Treasury, cause

1 rency shall, under the direction of

reserve notes,

the

Comptroller

of

the

the Secretary

Curof

8 plates and dies to be engraved in the best manner to guard

8

the Treasury, cause plates and dies to be engraved in the best

9 against counterfeits and fraudulent alterations, and shall

9

manner to guard against counterfeits and fraudulent altera-

10 have printed therefrom and numbered such quantities of such

10

tions, and shall have printed therefrom and numbered such

11 notes in blank of the denominations of $1, $2, $5, $10, §20,

11

quantities of such notes in blank of the denominations of

12 $50, $100, as may be required to supply the Federal reserve

12

$5, $10, $20, $50, $100, $500, $1,000, as may be required to

13 banks.

13 supply

Such notes shall be in form and tenor as directed by

the reserve banks entitled to receive the same.

14 the Secretary of the Treasury under the provisions of this

14 Such notes shall be in form and tenor provided for in this

15 Act and shall bear the distinctive numbers of the several

15

Act.

16 Federal reserve banks through which they are issued.
17

When such notes have been prepared, they shall be depos-

17

When such notes have bee.n prepared, t/icy slutll lie deposited

18 ited in the Treasury, or in the subtreasury or mint of the

18 in the Treasury, or in the, siibtreasurt/ of the United States

19

19 nearest the place of business of each reserve bank, and shall

United States nearest the place of business of each Federal

20 reserve bank, and shall be held for the use of such bank subject

20

21

21 Federal Reserve Board for their delivery, as provided by this

to the order of the Comptroller of the Currency for their deliv-

be held for the use of such bank, subject to the order of the

22 ery, as provided by this Act.

22

23

The plates and dies to be procured by the Comptroller

23

The plates and dies to be procured by the, Comptroller of

24

of the Currency for the printing of such circulating notes

24

the Currency for the printing of such circulating notes shall

25 shall remain under his control and direction, and the expenses
70

70

Act.

25 remain under his control and direction, and the expenses
70

.

., '




OH'KA

HOUSE BILL.

HJTCHCOOIt

AMEXU31EXT.

necessarily incurred in executing the /ay.? relulimj to the

1

necessarily incurred in executing ike laws relating to the

1

2

procuring of such notes, and all other expenses incidental to

2 procuring of such notes, awl all. other expenses incidental to

3

their issue and retirement, .shall be paid by the Federal reserve

O

4

banks, and She .Federal Reserve Hoard ahull include, in its

4 and the Federal Reserve Hoard shall include in Us estimate

5

estimate of expenses levied against the Federal reserve banks

5 of expenses levied, against the reserve banks a sufficient amount

6

a sufficient amount to cover the expenses herein provided for.

6 to cover the expenses herein provided for.

1

The examination of plates, dies, bed pieces, and so forth,

8

arid regulations relating to such examination of plates, dies,

8 ami rrif/iilfilijifix

9

and so forth, of national-bank notes provided for in section

9 and so forth, of national-ban!.' notes provided for in section

10 fifty-one hundred and seventy-four,

Revised Statutes, is

"7

their issue and retirement, shall be paid by the reserve banks,

The examination of plates, dies, bed pieces, and so forth,

10 fifty-one

relating to stic.li, I'.Mi.minntion iif plates, dies,

hundred and seventy-four.

Revised Statv'tes, is

11 hereby extended to include .Federal reserve notes herein

11 hereby e.i'teni/ed to include Federal reserr-e notes herein

12

12 provided for.

IIr!

provided for.
Any appropriation hereto/ore -made out. of the general

13

Any appropriation heretofore made out of the general

14 funds of the Treasury for engraving plates and dies, the pur-

14 funds of the Treasury for engraving plates and dies, the pur-

15

chase of distinctive paper, or to cover any other expense in con-

15 chase of distinctive paper, or to cover any other expense in

1(5

nection with the printing of national-bank notes or notes

16 connection with the printing of national-bank notes or notes

1.7 provided for by the Act of May thirtieth, nineteen hundred

17 provided for by the Act of Mai/ 1/t.irlieth, luneleen hundred

18 and eight, and any distinctive paper that may be on hand at

IS and eight, ami any distinctive paper thai may be on hand at

19

the lime of the passage of this Act may lie. used- in the discre-

19 lit.?, time of the passage of this Act may be used, in the discretion

20

lion of the Secretary for the. purposes of this Act, and should

20 of the Secretary, for the purposes of this Act; and should the

21

the appropriations heretofore made be insufficient

to meet the

21 appro-fir iations heretofore made be insn/pcient to meet the

22

requirements of this Act in addition to circulating notes pro-

22 requirements of this Act, in addition to arwilaling '/totes pro-

"23

vided for by existing law, the Secretary is hereby authorized

wled for by fi.nslin.fj law, the Secretary.is hereby authorize!/ to

24

to use so much of any funds in the Treasury not otherwise

use so much as may be necessarij of an;/ funds in the Treas-

25

appropriated for the purpose of furnishing the notes afore-

ury not O//VTT w appropriated for the -purpose of furnish-

71

71

' '




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK A M E N D M E N T S .

1 said: Provided, however. That nothing in this section I'on-

1

iiir/ Ihe notes aforesaid: J}roi;i;ind,hoirercr, That itnl/rinrj in

2

tained shall be construed as exempting national banks or

2

this section, conlaineil sha.li, be construed us t'.rcmpting ua-

!>

Federal reserve banks from their liability to reimburse the

'•>

ti.on.id banks or Federal reserve bnnl:x from t/n-ir liriLliii.;/ !o

4

United States for any expenses incurred in printing and

4

reimburse l/te United States for any expenses incurred in

5

printing and ixsnina circitlrttiny notes.

5 issuing circulating notes.
(>

i-fe shall bo the duty of cveiy Federal rcsciTO-haA-te

7

receive on deposit, at par and without charge for cxehaftge

8

eg collection, cheeks and drafts drawn upon, any of tta-dopoai-

9

tora or liy any of its dopooilcm upon: tiny other dopoaitw

10 and checks and drafts drawn by any depositor in any otlief
11

Federal rcaorvo bank upon funds to the credit-of snid-clcpositef

12

in said—reserve bank last mentioned, notliliig licvoiu oon-

13 tallied to be construed an prohibiting member banks from
14

making—reasonable—charges—te—cover—actual expenses itt-

15 cuiTod in collecting- and rcinlttin!; funda -for their [la^ftM-r??
16

Kvery Federal reserve bank shall rece've on dejiosit from

16

Every Federal reserve bank shall receive on deposil from

17

member banks or from Federal reserve banks checks and drafts

L7

member banks or from reserve, banks checks and draffs dra-icn

18 for exchange or collection, checks and drafts drawn upon

18 draion upon any of its depositors, and n-fian remitted by a

18

upon a ni/ of i/s depositors and, when reunited by a reserve ba nk,

19

any of its depositors or by any of its depositors upon

19

Federal reserve bank, c/iecks ami drafts dra/'-n b// any deyos-

11)

checks and drafts draicn by any depositor in any oilier reserve

20

any other depositor and checks and drafts drawn by any

20

itor in any oilier Federal reserve, bank or member bank in/on

20

bank or member bank upon funds to Ike credit of said depositor

21 depositor in any other Federal reserve bank upon funds to the

21 funds to the credit of said depositor in said reserve bank or

-I

in. said reserve bank or member bank. Nolldny herein, con-

22

22 member bank.

Nothing herein contained shall be constrii.cd

22

tained shall be construed as prohibiting a member bank from

23 nothing herein contained to be construed as prohibiting rnem-

23 as pro/tibiting a member bank from making reasonable charges

23

making reasonable c/iarges for checks and drafts so debited to

24

24 Jor checks and drafts so debited to its account, or for

-4. its account, or for collecting and, remitting funds, or for ex-

25 collecting and remitting funds, or for excliang" xM to its

25 change sold to its patrons.

16

It shall be the duty of every Federal reserve bank to

17 receive on

deposit,

at

par

and

without

charge

credit of said depositor in said reserve bank last mentioned,

her banks from making reasonable charges to cover actual ex-

25 penses incurred in collecting and remitting funds for their

72

T3

The Federal Reserve Board




O W E N AMENDMENT.

HOUSE BILL.

1 patrons.

HITCHCOCK AMENDMENTS.

The Federal Reserve Board shall make ana pro-

1

patrons.

The Federal Jicserve Hoard may, by rule, fix Hie

1

may, by rule, fix reasonable charges to be collected by the

2 mulgate from time to time regulations governing the transfer

2

charges !o be, collected by the. member banks from its patrons

2

member banks from patrons whose checks are cleared, through

3

of funds at par among Federal reserve banks, and may at its

3 whose checks are cleared through the Federal reserve bank

3

the reserve bank and

4

discretion exercise the functions of a clearing house for such

4

and the charge which may be imposed for the service of

4

posed for the service of clearing or collection rendered by

5

Federal reserve banks, or may designate a Federal reserve

5

clearing or collection rendered, by the Federal reserve bank.

5

the Federal reserve bank. The Federal Reserve Board

6

bank to exercise such functions, and may also require each

0

The Federal .Reserve Board shall make arid promulgate

6

shall make arid promulgate from time to time regulations

7

such bank to exercise the functions of a clearing house for its

7

from tirao to time regulations governing the transfer of funds

7

governing the transfer of funds at par" among Federal re-

8 At—pftf and charges therefor among .Federal reserve banks

8

serve banksr-and may at ito-diacrotion-excrpiac the funo-tlefts

9

and their branches, and may at its discretion exercise the

9

ej-a clearing houac for such Foderal-rcuorvo-feanka, or may

10

functions of a clearing house for such Federal reserve banks,

10

designate a. Federal reserve—bank- to exercise ouch f'lme-

8 member banks.

the charge which may

be im-

11 or may designate a Federal reserve bank to exercise such
12

SEC. 18. That so much of the provisions of section

functions, and may also require each such bank to exercise

12 functiona of a clearing house for ita member--bask-a arid

13
14

11 tions, and may' also require cai'h ouch-bank to exercise—the

the functions, of a clearing house for its member banks.

13 their branches.

L4

SEC. 18. That so much of the provisions of section

14

SEC. 18. That so much of the provisions of section

15 fifty-one hundred and fifty-nine of the Revised Statutes

Lo fifty-one hundred arid fifty-nine of the Revised Statutes

15 fifty-one hundred and fifty-nine of the Revised Statutes

16 of the United States, and section four of the Act of

1.6 of the United States, and section four of the Act of

16 of the United States, and section four of the Act of

17 June twentieth, eighteen hundred and seventy-four, arid

17 Juno twentieth, eighteen hundred and seventy-four, arid

17 June twentieth, eighteen hundred and seventy-four, and

18 section eight of the Act of July twelfth, eighteen hundred

18 section eight of the Act of July twelfth, eighteen hundred

18 section eight of the Act of July twelfth, eighteen hundred

19 and eighty-two, and of any other provisions of existing stat-

19 and eighty-two, and of arty other provisions of existing stat-

19 and eighty-two, and of any other provisions of existing stat-

20 utes, as require that before any national banking association

20 utes, as require that before n.ny national banking association

20

utes. as require that before any national banking association

21 shall be authorized to commence banking business it shall

21

shall be authorized to commence banking business it shall

•Jl

shall be authorized to commence banking business it shall

22

transfer and deliver to the Treasurer of the United States

22

transfer and deliver to the Treasurer of the United States

22

transfer and deliver to the Treasurer of the United States

23

a stated amount of United States registered bonds be, and

23

a st;ited amount of United States registered bonds be, arid

23

a stated amount of United States registered bonds be, and

24

the same IB hereby, repealed.

24

the same is hereby, repealed.

24

the same is hereby, repealed.




HOrSE KILL.
REFUNDING BONDS.

OWEN AMENDMENT.
1

HITCHCOCK

REFUNDING BONDS.

AMENDMENTS.

REFUNDING BONDS.

2

SEO. 10— That upon application tbe-Sereetefy— ej— !4te

Or That upon application tho Secretary of the

3

Treasury shall exchange the t\vo per ccntim-i—be-ftds-el— fte

per C'ontum-botids-6f-4he

4

United States bearing tlie oiroutatteR privilege dcp

5

any national banking aaaociafeton with tlie-^yefMH

6

Unitod States ara security for circulatin nok'r<-

7

centum 'bonds- of the- United- Sta

8

privilege, payable after hvonty-ycatTi from i'at

9

exempt from Federal, State, aii

10

United Statoe-beariaf tho ciyetttetieu privilege doposi-ted-by

u'

any national banlcing association -wtth the

j— t-he

as aoettrit' for oireulatin-fte
\vithettt-4he oi
ltef twonty-yeftrg-&effi-date

9

income and principal.

10

1 1 year, present two per Gcntim^betttb-jef-efeeJ-i :wt«

11

feaettt— twe—pe? oontum boi^a f o f - e s e a f t e — t—t e

12

ro provided te an. amettnt exeeedisg-five
total amount of bo-ftfla on dopoait wttb-the

12

manner hereinbefore

13

per centum of the total amount of bo

13

14

Treasurer b said bank for cir

14

an o

$re-uational bank shall, i

1 5 national bank JaJJ--Ht-atty-ette ycnr-4e-so-e^et; ftft«e

15

1 6 quota of two per centum betnls un4^F4-h^-tefB^r-(->j-r

16

17

tho Secretary of thC"TrcaHiny-frtft¥-j>€^'mit H..IIV ^fritM^-

17

18

bank or bauks to cxoliniige-bettd^ft-v^-^es^erf-l-h-e

ef— by-saM baiA for cireulatioft purpesesr

is

1 9 centum aforesaid in an ametHrt-ettftMfl-rh e-4e-l i

t-te—be—msHl-e—^

21

this Ae-t
e-Seftye-te-ty-er-t'u'. Tfettsmy-tftay-pefinit

19 e<±H-ttHa-afefe3ttte!:4-a-aM: timouat-efptat to the-defieionoy-efttised
20 by—£ke— fatku'c of any one—ef- more banks to -make— es-

ifafe-ef

20

tt-ift an ono

21 ehattge— in any—eae—year, alletgteftt to bo made—te—ap-

22
23
24

Jiftitod States twe-ftef-eeft-te-m-ftfm-4^-fh

25
74

twent

ears

rccoivo payment at-^fiaj-aftd-a

y years from tho passage of this-A e-t

74

bonds-tfeee-ett-ttfeg shall rceoivo payment at pa? and
74




OWEN AMENDMENT.

HOUSIO lilLl..

1

! I ITOHCOCK A MEN DM ENTS.

years from tho dato of tlio-paasaff*? of iiiia Aet-tttit,ioiial

eftfs-frum tlte-ttatc of the passage of thia-Aet

2 ttotua still remaining outstanding shall bo recalled and rc-

tHtMeftttt-baab-aetes-stiB- remaining outstftmting shall be-fe-

3

doomed by the national banking associations mailing the

eatte4 and rcclcemod bj- the national banking aasociatt^Rs

4

same within a period and under regulations to he nrcficnl.u'.d

4

5

by tho Federal Koacrvo Board, and notca atil-t remaining

5 pfeseriked—ky-thc Federal—tteacrvo Boaixl, and

6

in circulation at tko cud of suek period alia.ll bo secured by-tHt

G

fefflaHHftg-4ft-eH=cuIatiott-at thc-e-ftd- of aue

7

equal amount otlawfu-t-moaey-to bo depe-jited in ti'.u Trctifinty

7

3eettfe4-by-aH-equaI amount of- lawful money to be-depestted

8

oi tho United Stiitou by the hanking iuiisuciatioita original^

•3

m-tlio Tn'.asmy of-the-trfttted States by the baiildng-ftaaeeia-

9

i33uing-3uoh notes.—Meamvhi4e- cvcry-Harieaat- bank may

!J

ttena orig-mtbHy issaing such notes:—lloamvbilc

10

continue to apply for and rcccive-eimtlal.ing notes trom the

LO

tional-aank may continue-to apply for and roccivc-etfe

11

Comptroller of the Currency -toed uixM-v-the-det^e^k-eiH^rtt

IL

notca from the Comptroller oi tlie-Currenoy based upon the

12 fef- centum- bonda—ef—ef—tmy- otlicr- bonds—bearing—the

12

dejwstt-rf-tffe-peir-eeatetHrbonds or of any other bonds-beating

13 circulation privilege; but no national bank shall—r>e—per-

13

the oiroultrtteii privltegei- but no national bank s

14

mittcd to issue other oirculattftg uoLes—exeept-such as—are

14

15

scoured as in this section provided, or to i:-:xtt€-<»r—to—ttiafef

1 5 seettyea M in this acefem provided.....or to issue-ei

16

use of any subatituto for such ciHfttttom^^e34fr

1 6 ttse-e^atty-^ttba-ti^Hte-lttiHitto li e I re u Ittrlrtttg-fttHies-iH-irhe-f ef

17

clearing-bouse loan certificates, (•ti^liior'iH i-bcefa

17

18

obligation.

LO

iasuing fc'te same \vitliin-ft-period and uneief-regtitoiona to be

eteftmtg-4wHae-4efttt— eert&eates, oashior'a

19

SEC. 19. That upon application the Secretary of the

L9

SEC. 19. Upon application by a Federal reserve haul;.

IV)

/Sii'O. I'J. Tlu.il asst>v>ntj'l<irtheu>r()a:>ii2iitu»ivj' tlwrti.iKrrc

20

Treasury shall exchange the two per centum bonds of the

20

the Secretary of the Treasury shall, for the account of such

20

banks us pmctMuble and under autfiuritij from the, Federal

21

United States bearing the circulation privilege deposited by

'21

bank, assume the redemption of circukili-nrj notes of any i<a-

21

Rinmrru hoard t-uc/i Federal reserve ban]; shall purchase til

22

any national banking association with the Treasurer of the

22

tional bank requesting lite same and surrendering in imtimj

22

par and accrui'.tl interest two per centum bonds oj the United

23

United States as security for circulating notes for three per

23

the two per centum bonds hold in trust by the Treasurer of llic,

23

Hlu-l.es.

24

centum bonds of the United States without the circulation

24

United States as security for its circulation.

Such two per

24

no I be mure l.kan jijli/ per centum of Us capital in any one

25

privilege, payable after twenty years from date of issue, and

25

centum bonds shall, at the option of such Federal reserve bank,

25

year.

'I'/iH uini/iiiil ixirc/ttised by each reserve ba.nk shall

'/'lie bonds so purchased may be held by such reserve

75

'




HOUSE BILL.

OWEN A M E N D M E N T .

HITCHCOCK

\:UEiM>M EM'S.

1

exempt from Federal, State, and municipal taxation both as to

1

he reissued by ilia Secretary of the I'reasnry us bond* bearini/

ban!,' mul itsei! for deposit n'llh -:ls reserve at/ei/l ax xccurili/

2

income and principal.

No national tank shall, in any (me

2

three per centum, interest, due July first, nineteen hundred

for the Fedci'iil jvw)';v notes issued, or l/iei/ nun/be excluinr/cd

3

year, present two per centum bonds for exchange in the manner

?>

and thirty-three, or us one-year notes renewable from year

at tile Trensnri/ for tine-year Treiisirri/ itald wiles hearing

4

hereinbefore provided to an amount exceeding five per centum

4.

to year until July first, nineteen hundred and thirty-three,

three per i-ciilinn. interest.

5

of the total amount of bonds on deposit with the Treasurer by

5

and bearing interest at the rate of three per centum per annum.

reserve batik sliall be bound at the- option of the United Slates

@

said bank for circulation purposes.

Should any national bank

6

The amount of the redemption of such notes shall not exceed

to reueir year l»j yeri>- fur Iirc.nl!/ i/earx the three- per centum

7 fail iu any one year to so exchange its full quota of two per-een-

7

§36,000,000 per annum and shall be apportioned pro rata

{/aid notes so issued, tin id- />ne->/ear three per centum United

8

turn bonds under the terms of this Act, die Secretary of the

8

among the national banks applyinr/ for such redemption at

titftlea f/olfl

9

Treasury may permit any other national bask or banks to ex-

9

the end of each quarterly period of any fiscal year.

a gen I as security for Hie United States reserve notes, or be

The

'In rase of such exchange l/ie

votes mai/ be ns<-::' to deposit /rilh the reserve

10 change bonds in excess of the five per centum aforesaid in an

10 circulating notes of any national bank, the redemption of

10

11

amount equal to the deficiency caused by the failure of any one

11 which is so assumed, shall, irhen delivered to the Treasury

11 idle funils, or sold to protect, the <iold supply.

12 or morebanis to make exchange in any one year, allotment to be

12 for redemption, be canceled and redeemed out of funds to be

12

13 made to applying banks in proportion to their faoldingsof bonds.

13 furnished

14 At tt s expiration 0? tw anty years from the passage of this Act

14

reserve bank making the applic-alion aforesaid: and, I lie.

nf lliL'ir onislfindinij

15

Federal. Reserve Board shall thereupon deliver to /I/a Fed-

tin: bunds so sold.

16

oral reserve bank an, equal, amount of Federal reserve notes

directed to issue three per cenluin one-ijcar (/old

17

'without interest or penalty of any kind, and the iiro per cen-

17 •notes i/ctir by year to exchange for tiro per ceninin bonds

18

turn bonds aforesaid, or Ike thre.e per cenluin bonds or notes

1.8 as above provided or to inke the place of three per cenluin

19

issued, in lien thereof, shall be held in trust for sncli Federal

19

one-i/ear (/old notes that hare been redeemed.

20

reserve bank by Ilie T-vensnrcr of flu: Uui/ed Stales as se-

20

nvntid hi'Sirccn Ilir 'first ami loxt pnrciiawx of bonds ant/ IKI-

21

i-iirtl'// for t/ic ri'dcniption at sifli

15

every holder of United States two per centum bonds then out-

16 standing shall receive payment at par aod accrued interest.
17

After twenty years from the date of the passage of this Act

18

national-bank notes still remaining outstanding shall be rc-

19

called and redeemed by the national banking associations

20

issuing the same within a period and under regulations to be

21

prescribed by the Federal Reserve Board, and notes still

22

secured by an equal amount of lawfnl money to foe deposited

24 in the Treasury of the United States by the banking associa25

tions originally issuing such notes.

26

tional bank may continue to apply for and receive circulating
76

Meanwhile every ua-

Xaiional banks irhich. sell li.vo par centum bonds to a
rt'.fci'i'i' i/ank under I It is provision shall retire snc/i, portion,

remaining in circulation at the end of such period shall be

23

the Secretary of the Treasury by I he Federal

freel;/ purchased by reserve banks from time to time to employ

ixiifx.

national-bank notes as are secured, bi/
The Secreturij of the. Treasury is hereby
Treasury

Durintj the

l//>i!'i/ fxitd.' iii'iij nuihniir /" njnili' l»r '//."/ ri-'i-rii'i-' cirrnftifinii
i-cl/'x /if/.sT 1 ?/ nfuni j//r ili'jiimil of lirr> )>t-'r rrntuni lioi'iil:; us tu'ni
iit\>vidc<l for In/ lair.

7'//r OHV-IICIIV liiri'r per centum <f<dd

24

Treasury notes above provided for aluill be .exempt from

25

Federal, State, and municipal taxation both as to income and

26 principal.




OWEJV A3IE.VD31J3.VT.

HOUSE BILL.

]

notes from the Comptroller of the Currency based upon the

'2

deposit of two per centum bonds or of any other bonds bearing

3

the circulation privilc-go: but no national bnnk shall be pcr-

4

HITCHCOCK AMENDMENTS.

mitted to issue other circulating notes except such as are

5 secured as in this section provided or to issue or to make
f>

uso of any substitute for such circulating notes in the form of

7

clearing-house loan certificates, cashier's checks, or other

8

obligation.

9

BANK RESERVES.

BANK RESERVES.

9

10

9

BANK RESERVES.

SEG. -20. That ••from and after the-datc when tho See-

1.0

1 1 fete)' of the Treasury ahull have officially amteiinced. ift

11

rctan'— df-

12 suteb- manner-aa-be may cfeefr-feke fact

.'. 2

?i:Mr't-iri;cih^

SBC. 20- That from and nftc?-4ko date ^'-hoit tl-to Be
ave o i e t f t f f — f t a u o u i i s c i : ~ H

13 bank has been, established in any deaignatod-fetriot, every
14 banking association within gatd- district—whteh— shall......have

.Hthiri ^ivirt—fefftet-^r-VH-e'^ I'luill—3i-

15 subscribed for stock in uuch Federal reaei'vc-biink pliall-be
16 requircd-k> establish and BiaiiiL'im-i^^yves-ifs-jelJ-fyffs-i
17

(a) If a country bavik-^

18

-r0^4d:4«rt-A.Hl4H}M4;r^

and maintain a roacrvo-^fj-ttttl to t-vr

II

'-;r)~lf—rt—e-fK-i'rr-rrV —!-!ftHh-i^-4eWe4-«^^e^rr HttJ— l-ftVrr

19 aggregate ainount onts-defte^^fr'
20 bore i rialtor provided

2 1 eensi.it of money \vh-lch' no.tte
2 2 li\w cottftt-aa4egat-fesefver- ttel23 ¥a^tei-ftftd-f»?-ft-petwd-o£-fewteeH:

ihii iVerft

24 aforceaHt at lca^

24

25
i
:
2 6 -feke-4 ed:efttl:-«}sep! e-b*rtk-sf'4te-4i?!Tf i^- —^e

26

27 the twelve-pel' ccrifeuiu fer^ei-vc lui

2 7 i-etrtn-'r',uU;r nf ;kt

feit'rttR60

\V li-'rt— rkfa

77
77




(riTOirc OCK AM RXDMEXTS.
ife4— :niiy. t'w !i period, uf iliirij'-gix nioiuha From and

;i!i4 nftor ihe-fere-feftl
2

by liie See.re.tary of the Tre

t i i c ditto lixeil by the Seeyetn.iy of the I'rcnuury as heiti-

m 11 before provided-;

lViiv —(tfovidud, uuiihinl of l.ialttnccM due from

etmstst of biilnnocH due IVom nai4on«l banks in
fett4i'ii| reserve (•iti^s-i^^»WH4t4^d4r¥-ltf^v--l%-)t
trt-ni \ months L<ii!)siN|iii'iU.-4e-t4te-ifa4»'-ti-

or (-oK-trai n'!i(irve-fitik\j !in-Httvf dciiiiod liy
5

Irt-Vrr

1^

£>eeniliirv of i.he Trcnuwy MS litHv'niliet'orc, provided
i

fettiiti ruler of-thc, twelve.

UelWfe-^Hn idod tlic mi'ul remainder of die two'vo ]ior eentett

s

country bank—ahail ooimii-t nit her in v.'lie-le or in port of

i;e:ii.'f¥(i nK|iiirc(l of eaeli cuutt-try bank ahull coiiijiat citlicr in

9

twerve nitHtey-Ht the bauk's-fWH-vfailts or of credit biilnnee/

whek^-w-m-^ttrt-et-rcscrvo inouoy in iho-baHk-a own vai.iltn or

wrth-+he-34e4eral refiervo-brt--H-kr of its-di»lnef.

ef oroflit Imlanc'C \vitli Uie [''lidonxl reserve bank of Us cliatrin-tr

10
II

•(•It)— tf-a rci^'i'vc-^ilv I m n k liH-f^ti-tt

1-2

shall hold ii.iuL-iiuiiniftHh— fa= u ji^fir-)

ft?) It a reserve cUy-bank an defined by cxis-Hiiff law r
-i-l i<lui.ll tt<44-ttiu[ iiininhuu, for tt-pciiod of laxly cldyii IV

13
14

Lo

'.o tw^nly [lov t-ontuni of the

\j< f<r;c ]ii'ov'uk'(L n rcsef

.ii: aa\ inys

15

(talc I'ixctt-Uy- the Score. tai;' oi' the TroahiLiy 0.15 U

14

'il. n rcMt'i^x 1 , equal. —k>—cwent}'—per eontuiii— 14'—l-he

L5

lv—m-wttml of ita (h-pwiite;—wtt—ittekttti-ng aiivi ngs

ir,

1C)
A-t

17

IV i-4tf-'riU'rn JUT i.'i'iiliiiii.—A I lra:U mteii.! l)imk:i uiay under oxislin

18

is «^)iiMi-il "I' meiu'v which naut+mtt-banUn m

19

-ktw-emtnt an le^iil reservo, lu'ltt lU'tnally in I lie-bank':; o

Li) 4«tw-f^ninl ins Ic.fflil i'1'i.turvc', kcid aokuillj' ift-fbe-bttvhk-tj-t

•20

Viiullt). —After shay ilayu I'funi the date til'orertaid, ;inil i'i)r a.

•_".)

pmeft-rf-oin' yi'iir, ttt It-niVi-t-ttfee-ei^hlcc'niliirtm

•21

¥tHtttfh —A f t e r nixt}' day;) IVoni Ihu dale albiTHatd. nnci-fef
yt'ar. at Ian I llirc(.'-ek!;tt4fretH:-hr> am.I

'1 '2
23

ot tlio 'Cvmiiiiiry i;:s

date feed oy

27 fevo provided^—etmaut of btiltnices due from
78

78

•24

i4a-4i^tfte-'er Tiic roniuiHU'.r nl' tliu-ivt;oL'Vi.i.-4H-i44a-p

25

4ir;lricl. —The rciiiniiKKii' u-t—t-liu r(!:st'.rvt;—i-u

ttt-lmkiuot' wtlh ilu 1 I'V'tifrnl R'aui'vi'

Ferfttt^e! may, fov a |n;iitnl ol' thiriy-ats-Hwiulia i'Vout mttt-a

2G

the Seei'iMtuy ul' 1'Uo Tix'iijm-tt
tVtttucI, CH'iUiiut ()!' LuilillUJCa (illC. fftiffl -nULLtffttt Hittttk

78




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMEND3IENTS.
trai iHli<eFV^^Tiet3-ttH-H-(-)jtv--4e-l4'fl±'(4-^y-4rt7Vr-— -Kfwft

^ci'VC'. eU4es as nftw-dofincd-by-ktwr
2

alte¥-a-4ftTe-tMrfff-!iix m0Hrtbs-3ttbscqucn-i~Tft tbo do tc-fised-by

3

the Score U«y-ef the Treasury aa luTcinkefefe-pfevidcd, the

4

mud vciua-mto-trf'-thG eighteen per contiitH reserve required

5

of each reserve city bank shall const8t-eithe¥-4»-^¥ht4e-ef4ft

6

part-ef reserve mency in tho-baakra-ewtt vaults-ef-ef-efedtt

7

balance witb the Federal roscrvo-bank of-t

9

*—a—4t4e—rk+rty-:s«—wt>w-HtH— s+i-ww^tpieH-t—tr> —t-tte—
-rke-siet-iH.' tiHT-Ht-liic Treag-Hf -tta-'iK'i'uitttxrfoye

-ve—(jity b;ittk-^4tttj4— e
rcacrvu nieno' in -th
ey of credit—balance with—fee

-(-c) If a central reserve citv

te)—k-a-eeft-tral roriefye-e-t-h'-tmi-i-n— ftfl-ft

aiiita^

10

I '2

ttere wte

i "2

13

st'^he^g

1 3 ef the a

14 ftepesi4a hereinafter provMed for, an
15

f443^fte*)ei^^

1 4 depesits hefeiaalte— pf

— ffffr-ftft^~ >^mafl^RT

eigl-Hree-ft-Hef-fe

— (4ie-4ft4t-~fi4«-

!8

frhcrcnftcr —n4—t

— ^ — f4^^--: — f e-H-H'ttt — -p^t-H-f^^ — f-'HV

M

79

OTVB—^

T9

79




HOUSE BILL.

HITCHCOCK AMENDMENTS.

O\VE\ A3IEXD3IENT.

. 20. That when a Federal reserve bank has been

1

SEC. 20. That from and after the date when the Sec-

SEC. 20. Demand liabilities n'ifhin /hf meaninr/ of this

2

retary of the Treasury shall have officially announced, in

Act shall rninffi'i.11' (ill liabi/i/ips hiahiririr/ >rif/,h) thirty flnf/x.

2

duly organized and. established as provided in this Act in any

3

such manner as he may elect, the fact that a Federal reserve

mid fnnc deposits shtiU ro'ittprixt-' nl.l deposits pai/alde after

M

Fi'ilftrfil. iv.tprn'. district every member hank of that district

4

bank has been established in any designated district, every

thirty days.

4 shall establish, and maintain, reserves as follows:

5

banking association within said district which shall have

6

subscribed for stock in such Federal reserve bank shall be

7

required to establish and maintain reserves as follows:

When, the Secretary of the Treasury shall //are

officially

announced, in such manner as lie may elect, the establishment,
I

of a Federal reserve bank in any district, every s'i.ibsvribin(/

8 member bank shall eslablisli and maintain reserves us follows:

(a) A bank not in n rexe-rcr or renlrul -ivserrt- city ax now

1)

fa.) A bank not in a reserve or central reserve city as now

10 shall hold and maintain a reserve equal to twelve per centum

10 or hereafter defined shall h,old and nnitiita-tit ream'vett equal to

10

or hereafter defined sha.ll /told and maintain reserves equal to

11

of the aggregate amount of its deposits, not including savings

11

twelve per centum, of tlie aygrer/ale amount of its demand

1.1

twelve per centum of the aggregate aw.ount of its net deposits,

12

deposits hereinafter provided for. Five-twelfths of such

12

liabilities and five per centum of Its I line deposits, <ix follmrx:

12

as folloii'.i :

13

reserve shall consist of money which national banks may

13

In its vaults for a period of thirty-six months after said

13

In its vaults, four-lv'elfths

14

under existing law count as legal reserve, held actually in the

14 date four-twelfths

9

(a) If a country bank as defined by existing law, it

9

thereof.

thereof.

15 bank's own vaults; and for a period of fourteen months from

15

In the Federal reserve bank for a period of fourteen

15

In the Federal reserve bank of its district., for a period

16 the date aforesaid at least three-twelfths and thereafter at

16 months after said date tii'o-lvelfths. and pmndtientty there-

Hi

of sir mouths after said date, one-ttuelfth, and for each .swe-

17

17 after

ll

ceedin;/ sir months an additional one-twelfth, until foitr-

least five-twelfths of such reserve shall consist of a credit

18 balance with the Federal reserve bank of its district.

The

18

five-twelfths.
For a period of thirly-si.c monf/is after said date the bal-

1.8 twelfths hf'.i:e been so deposited, which shall be the amount

19 remainder of the twelve per centum reserve hereinbefore

19 ance of the reserves may be I eld in its mm vaults, or in the

20 required may, for a period of thirty-six months from and

20

21 after the date fixed by the Secretary of the Treasury as here-

21 reserve city banks as now defined by kite.

22

inbefore provided, consist of balances due from national

22

After said thirty-six months' period said reserves, other

•>•>

After said period said mxerv-es, otlit-r Ihini those, /teivin-

23 banks in reserve or central reserve cities as now defined by

23

than those hereinbefore required, to he /i.eld in t/ie reserve

23

lit'fore required to lie held in the reserve bank, may be held

24 law. From and after a date thirty-six months subsequent

24 bank, shall be held in the vaults of the member bank or in the

24

in the vaults of the member bank or in the Federal reserve

25

to the date fixed by the Secretary of the Treasury as herein-

25 Federal reserve bank, or in bot/t, at its o/itioji-.

25

hunk, or in liolh, at the option of the member bank.

26

before provided the said remainder of the twelve per centum

27

reserve required of each country bank shall consist either in
8O

1.9 perintiiH'iitli/ required.

Federal reserve bank, or in banks in reserve or central

80

80




HOUSE

OXV'EX AMV,X!>.»!! ; :NT.

1

whole or in part of reserve money in the bank's own vaults or

2

of credit balance with the 'Federal reserve bank of its district.

3

(b) If a reserve city bank as defined by existing law.

•')

4

it shall hold and maintain, for a period of sixty days from the

4

shall hold and mam tain reserves ncii.iai to eiff/ueen

5

date fixed by the Secretary of the Treasury as hereinbefore

5

6

provided, a reserve equal to twenty per centum of the

7

illTCIICOCK AMENDMENTS.

3

(b) A bank in a reserve or a central reserve city, as now

per

4

or hereafter defined, shall hold and maintain reserves equal to

centum of the aggrer/aie amovnl of its demand liabililie,-: nr-d

5

/ifteen per centum, of the aggregate amount of its net deposits,

6 five per centum of its time deposits, as foiloics :

0

«,< follows:

aggregate amount of its deposits, not including savings

7

In its vaults six-eig/ileent/ts thereof.

1

fit its vaults, five-fifteenths

8

deposits hereinafter provided for, and permanently thereafter

B

In the federal reserve bonk for a period of fm:riven

8

in the Federal reserve bank of its district for a period of

9

eighteen per centum.

9

months after (he do,te aforeso'd fit least thrfie-Kinhteenilm find

9

ai-v months after the date aforesaid at least one-fifteenth, and

At least one-half of such reserve shall

(b) A bank in a, reserve city, a-s now or hereafter defined.

thereof.

10 consist of money which national banks may under existing

10 permanently thereafter six-eighteenths of said reserve.

10

11 law count as legal reserve, held actually in the bank's own

11

For a period of thirty-six months after said riaie the

11 -until six-jifieent/ts have been so deposited, which shall be the

12 vaults.

12

balance of said reserves shall be held f-n its vaults, in- cite

After sixty days from the date aforesaid, and for a

12

for each succeeding six months an additional

one-fifteenth,

amount permanently required.

13 period of one year, at least three-eighteenths and perma-

13 Federal reserve bank, or in central reserve city banks as HOW

14 nently thereafter at least five-eighteenths of such reserve shall

14 defined by law.

15 consist of a credit balance with the Federal reserve bank of

15

After said thirty-six months' period all of said reserves,

16 its district. The remainder of the reserve in this paragraph

16

except tliose hereinbefore required- to be held permanenth/ in

17 required may, for a period of thirty-six months from and after

17 the Federal reserve bank, shall be held in its vaults or in the

17

bank, may be held in its own vaults or in the Federal reserve

18

18 Federal reserve bank, or in, both, ai its option.

1.8

bank, or in both, at the option of the member bank.

the date fixed by the Secretary of the Treasury as herein-

I5

After said period all of said, reserves, except those herein-

1.6 before required to be held permanently in the Federal reserve

19 before provided, consist of balances due from national banks
20 in central reserve cities as now defined by law.

Prom and

21 after a date thirty-six months subsequent to the date
22 fixed by the Secretary of the Treasury as hereinbefore pro23 vided, the said remainder of the eighteen per centum reserve
24

required of each reserve city bank shall consist either in

25 whole or in part of reserve money in the bank's own vaults
26 or of credit balance with the Federal reserve bank of its
27

district.
81

31




HITCHCOCK AMENDMENTS.

o >v UN A :\i K>:r«re>:T.

HOUSE BILL.
1

(c) If a central reserve city bank as defined by exist-

I

2

ing law, it shall hold and maintain for a period of sixty days

"2

3

from the date fixed by the Secretary of the Treasury as

3 -jjC'T cdi'liini- '.>f the I'-i/ffi'iii/'i-tf-

4

hereinbefore provided a reserve equal to twenty per centum

4

5

of the aggregate amount of its deposits, not including savings

5

In its mulls sh'-eirj/itec))l./is

6

deposits hereinafter provided for, and permanently there-

6

/ft the Federal reserve bank for i< ^ei-iod of fourteen

7

after eighteen per centum.

At least one-half of such reserve

7

months after the date aforesaid <it lw<$i ikrw.-e.ifiiUc.e.inli^^and

8

shall consist of money which national banks may under

8

permanently thereafter

9

existing law count as legal reserve, held actually in the

9

/<Y;r a. period ui iMrtii-xi-r nmnili:: nfti-r .*niri ihiln lh<>

(c)

A bii.liL' in a. <'''.lil.r<i'l. i''-'S#n<: ''li'/>!.< ii'ni' •>?

!>M'i"lft*-r

ilefined shall. Imlrl ntii! nniini'i.i.ii u rcfi'i:i! i.-atirii. /'. t-i(//,f>'?v
(/.inn-lint in v/.-i i'.i'iiiiinii linliilil'ip*

n.riil. fine per coitinn of its i.iiiu' dr-jvunta. uxjnl-lrnrx:
thereof.

sKK-eighfevnf/is.

10

bank's own vaults.

After sixty days from the date afore-

10

balance of said r<i.ierct:s sSuill lie field in V/.v mi:it wtw/.'-v ur in tl<»

11

said, and thereafter for a period of one year, at least three-

11

Federal resercc. bank u-l llx :>/iii'tii.

12

eighteenths and permanently thereafter at least five-eight-

12

After sa.'ul thirty-six, ii.-'intli.i' /if.-iinl ".II «J -tti.ul rvtiwt:e,s.

13 eenths of such reserve shall consist of a credit balance with the

13

e.Wti))t tinHSK /twin iM'riiiniit'iti/!/

14

Federal reserve bank of its district.

14.

f'rtjprtil. ri'W'-t' 'I'/i/i.', .fli'l-U 'if- !>i'l<: in .'/•••• H i ' ' : : i-intii* ,<;• /;; i/if-

15

eighteen per centum reserve required of each central reserve

15

l'\',< !<'!'« I, rf.S«7'C</ Ixiltl,'-. HI' ll<>i!.l. Hi

16

city bank shall consist either in whole or in part of reserve

17

money actually held in its own vaults or of credit balance with

18

the Federal reserve bank of its district.

The remainder of the

rt-'i;iiirat! In !/C indi! l i t

I./IP

i/.-. < >!H !'••::.

All-// J/i'/ci-iil iwn-<: <:"'•!.• ; ''!/;7 ;';"'; '• '•' •'*'•••>•' '•'".' ii:"iiiii<'t

1C)
17

Illllll,'*

18

lli.".ri'.')J.

19

,ii:ci>]>iti!>i>' l:> Hi'' MI!'! i-'wrn- / , < / • / / • .

•>(\

"-1 ri'XI'l't'''*.

iditi'Mn-

'•""' '•.'•'•''.'"'/."/

<n*-.->ir,'«i

I'-:!'!.:''

/,•'-/.'/;-

';''

.-..'.'.'/

,•;•//":/•;

l!:."!l!::i:n ill

tminrxril

I'-wi

If a. State haul: or in-.ti c(»n}j.'i;:y f.s .'-i-tti'trcii iifi i/ic laic

If a 8tnte bank or trust <imiipan>t is required- by the Uurs

nf itn State l<> '•eefi it" r*:x«vr.>x i-U.iiw >•, ;/x <yn'i IYUK'/X ' • > ' -ii-.-ith

2I

a f its i~ltaltj. tt> la>.ep ».<,« re.suroos either in its own oaulf-a '>r nnth

22

another State him/.- or trust ''.'imvn.ij. .-•,'"••// r/'.v/?•/.> t/t>po.tit..<i

"-2

another filn.t,e, brink or trust company, mich reserve tJejioritu m>

23

.so kept in -swcA Htrtl'i >><',nk or i)-».-n. vt/inm-Hi xii:iii !••<'. c.o'n.-

23

kept in such State bank or trust company shall be construed,

24

striked, wil.ldh the iwrninn/ of //:w .w.i.i.<>n., us if they were.

24

within the meaning of this section, as if they were reserve

25

reserve depo.nis in a nnJionai .':<;?),v. :.*< /; rc^t-.-rr. nr cc.r.trni

2f>

deposits in it, national bank in a reserve or central reserve city

2G

reserve city for a period oj lln-ca -.'KHHV "./•«• UI.K oecr^ary of

2ti

for a period of three years after the establishment of a Federal

27
82

•JO

•f\

the. Treasury shall have offida.ll>!

n-iwnnnc.f.d t/n- «.s/o6feA-




HOUSE BIT.!,.

O'.VIi.N

HITCHCOCK AMEXDMEXTS.

A:U!-:.M»Ml'J.Vr.

ment of a Federal reserve bank in t/tc district in tckicli

1

reserve bank in the district in ivhich such State bank or trust

such

2

company is situate.

State

bank

or

trust

company

;.s- situate.

Except as thus provided no member bunksluiI! ke.t'./xm di-po-nl
with any nonme.mber battle a sum in e.rccsK oj ten par centum
oj its own paid-tip capital and surplus.

Xo member bank

shall extend direct!}/ or indirectly the benejils oj l/tis system
to a noiimember bank, except upon, u'l'ilte-n prrm.si-on oj t/tr
Federal Reserve Board, under jmiiiilty oj s/ispens-io/i.

9

The reserve carried I)?/ a member ban!,- n-ilh a Federal

10 reserve lank may, under the. regulations mid subject to -such
11 •penalties as may be prescribed, by the Federal Reserve Hoard,
12 be checked against and -withdrawn by sue//- member bnnk tor
13

the purpose oj meeting existing liabilities: Prodded, hoicecer,

14

That no bank shall at any t-nne inuka netr loiinn or a/iall j/n.1/

15 any dividends unless and -until '/n> total rcsn-re rer/aired by
16 law is fully restored.
17

SEC. 21. That so much of sections two and three of the

18

Act of June twentieth, eighteen hundred and seventy-four,

19 entitled " An Act fixing the amount of United Slates notes,
20

providing for a redistribution of the national bank currency,

21

and for other purposes," as provides that the fund deposiled

22

aforesaid, be, and the same is hereby, repealed.

SEC. 21. That so much of sections two and three of the

18

Act of June twentieth, eighteen hundrort and seventy-four, en-

18

Act of J u n e twentieth, eighteen hundred and seventy-four,

19

titled "An Act fixing the arnount of I ' u i t e d States notes, pro-

19

entitled '' An Act fixing the amount of United States notes.

-20

virliu»- for n. redistribution of the mi,Uon;i.l bank i-urrcncy.

2(1

providing for a redistribution of the national bank currency,

21 aiul for other purposes,'' ;i.s provides that the fund deposited

21

and for other purposes," as provides that the fund deposited

by any national banking association with the IVcasurer of

22

by any national banking association with the Treasurer of

the United States for the redemption of its notes nluill ho

23

the United States for the redemption of its notes shall be

counted as a part of its lawful reserve as provided in the Act

24

counted as a part of its lawful reserve as provided in the Act

And from

25

aforesaid, be. and the same is hereby, repealed.

and after the passage of this xVct such fund of five per centum

26

and after the passage of this Act such fund of five per centum

counted as a part of its lawful reserve as provided in the Act

25

17

the United States for the redemption of its notes shall be

24

SEC. 21. T hat-so So much ot sections two and ihroe <>! i he

by any national banking association with the Treasurer of

23

17

•24

25 aforesaid, be, and the same is hereby, repealed.
26
26 and after the passage of this Act such fund of five per centum
83

And from

And from
83

83

'




HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

HOUSE BJU,.

1

shall in no case be counted by any national banking associa-

1

shall in no case be counted by any national banking association

1 shall in no case be counted by any national banking associa-

2

tion as a part of its lawful reserve.

2

as .a. part of its lawful reserve.

2 tion as a part of its lawful reserve.

SEC. 22. That every Federal reserve bank In addition

3

SEC. 22. That every Federal reserve bank shall at all

all times have on hand in its own vaults, in gold or lawful

4 to the reserve required against the Federal reserve notes

4

times have on hand in its own vaults, in gold, gold certificates,

5 money, a sum equal to not less than thirty-three and one-third

5 emitted by a Federal reserve bank, it shall ai all times have

5 or lawful money, a sum equal to not less than thirty three and

6 per centum of its outstanding demand liabilities.

6 on hand maintain in its own vaults, in gold, or lawful money

6

7 other than Federal reserve notes, a sum equal to not less than

7 liabilities net deposits, in addition to the reserve required

8

8

against the Federal reserve notes emitted by such bank.

9

term "net deposits" wherever used in thi-s Act shall mean net

3

SEC. 22. That every Federal reserve bank shall at

4

3

thirty-three and one-third per centum of its outstanding

9 demand liabilities other than its Federal reserve notes.

one third thirty-five per centum of its outstanding demand

The

10 deposits as from time to time defined by the Comptroller of
11 • the Currency, subject to the approval of the Federal Reserve
12 Board13

The Federal Reserve Board may notify any Federal re-

13

The Federal Keserve Board may notify any Federal re-

IB

The Federal Reserve Board may notify any Federal re-

14 serve bank whose lawful reserve shall be below the amount

14 serve bank whose lawful reserve shall be below the amount

14 serve bank whose lawful reserve shall be below the amount

15 required to be kept on hand, to make good such reserve; and

15 required to be kept on hand maintained, to make good such

15 required to be kept on hand to make good such reserve; and

16 if such bank shall fail for thirty days thereafter so to make

16 reserve; and if such, bank shall fail for thirty days thereafter

16 if such bank ahall fail for thirty days thereafter ao to moke

17 good ite lawful reserve, the Federal Keserve Board may

17 so to make good its lawful reserve, the Federal Reserve Board

17 good ita lawful rcaorvo. the Federal Reserve Board may

18 appoint a receiver to wind up the business of said bank.

18 may appoint a receiver to wind up the buaincBS of aaid bank-

18 appoint a receiver to wind up the business of said bank in

19 suspend and take possession of such reserve bank and admin-

19 the meantime may prohibit such Federal reserve bank from

20 ister the same during the period of suspension.

20 making additional loans or discounts: Provided, however,
21

That the Federal Reserve Board may in case of emergency

22 permit the reserve against deposits to be reduced below the
23 said limit, but the reserve bank shall in such case pay a tax
24 at the rate of one per centum per annum for every two and
25 one-half per centum or fraction thereof that the reserve
26 falls below said thirty-five per centum, but in no case shall it
27
84

be allowed to fall below twenty-five per centum of its net
84




HOUSE BILL.

HITCHCOCK AMENDMENTS.

OWEX AMENDMENT.

I
'2

5

6

member banlcs in the district in proportion to their average

4
BANK EXAMINATIONS.

paid by ITie bank during a fiscal year shall be charged to the

3

5

deposits: Provided further, That the amount of such tax

discounts during that year.

5

BANK EXAMINATIONS.

SEC. 23. That the oxamiaatieft-ef-the-ftgatrs of every

6

BANK EXAMINATIONS.

SEC. 23. That the examination of the affairs of every

6

SEC. 23. That the examination of the affairs of every

7

national banking association authorized by existing law

7 ftfttteual banking as3ociatie&—atttberizetl—by oxkttBf*—tev-

7 ttfbtie-nal banking association authorized—by existing law

8

shall take place at least twice in each calendar year and as

8

Every member bank shall take plaee be examined by the

S member bank shall take place at least twice in each calendar

9

much oftener as the Federal Reserve Board shall con-

9

Comptroller of the Currency at least twice in each calendar

9

year and as much oftener as the Federal Reserve Board shall

10 sider necessary in order to furnish a full and complete knowl-

10 year and as much oftener as the Federal Reserve Board shall

10 consider necessary in order to furnish a full and complete knowl-

11 edge of its condition.

11 consider necessary7-tft-efdef to furnish-a full tirMt-eemp-lete

11 edge of its condition.

12 however, at any time direct the holding of a special examina-

12 knowledge of its condition-.

The Secretary' ef the Treastny

12 htwe^ef- Federal Reserve Board may authorize examina-

13 tion.

13

The Federal Reserve Board may authorize examinations by

13 tions by the State authorities to be accepted in the case of

14 tion of the affairs of any national banking association shall

14 the State authorities to be accepted in the case of State banks

14 State banks and trust companies and may at any time direct

15 have power to call together a quorum of the directors of such

15 and trust companies and may, however, at any time direct the

15

the holding of a special examination. The person assigned

16 association, who shall, under oath, state to such examiner the

16 holding of a special examination.

16

to the making of such examination of the affairs of any national:

17 character and circumstances of such of its loans or discounts

17 fee making of such the examination of the affairo of any

17 banking asiiobiuiidft member bank shall have power to call

18 as he may designate; and from and after the passage of this

18 national banking aaaooiatioe member bank shall have power

18

19 Act all bank examiners shall receive fixed salaries, the amount

19 to call together a quorum of the directors of such aeseeia-

19 who shall, under oath, state to such examiner the character

20 whereof shall be determined by the Federal Reserve Board

20 tieft bank, who shall, under oath, state to such examiner

20

21 and annually reported to Congress.

21

the character and circumstances of such of its loans or dis-

21 may designate; and from and after the passage of this Act

22

counts as he may designate; and from a-ftd after the passage

22

all bank examiners shall receive fixed salaries, the amount

23 of this Act all bank cxaininora shall receive lised-satariesT

23

whereof shall be, not less than $2,000 nor more than §7,000

24

the amount-whereof ahall-bo determined by the.

24 per annum and be determined by the Federal Reserve Board

25

eral Reserve Board shall fix the salaries of all bank examin-

25

and annually reported to Congress. But the expense of the

26

ers and annually reported make report thereof to Congress.

26

examinations herein provided for shall bo assessed by authority

27 ftut the The expense of the examinations herein provided for
85

27

of the Federal Reserve Board upon the asseehttte-R-s member

22

The Secretary of the Treasury may,

The person assigned to the making of such examina-

But the expense

of the examinations herein provided for shall be assessed by

23 the Federal Reserve Board upon the associations exam2 i ined in proportion to assets or resources held by such asso25 ciations upon a date during the year in which such examina26

tions are held to be established by the Federal Reserve

27

Board.

The Comptroller of the Currency shall so arrange
85

The person asstgfted-fee

The Fed-

The Secretary of the Treasury may,

together a quorum of the directors of such (laaociixtletit bank,

and circumstances of such of its loans or discounts as he

85




o \v i-:x .\ .11 1:\ mi rcivr.

HOUSE BILL.

H I TVUVOflK

\ .VJ5J¥I>3f B>TS.

1

the duties of national-bank examiners that no two successive

shall bo assessed by authority of tho Federal Reserve Board

1 (HI ilka examined in proportion to assets or resources held

2

examinations of any association shall be made by the same

upon the associations banks examined in proportion to assets

2

by such M'-sociat-tfrm mc-mber banks upon a date during the

or resources held by such ttsseet*44efte bank* upon jt-dftte

•5

year in \\-h4cli i-urli exainintitimi:; are held tn he cnl.tibluih.ud

(luring the year in -which such -examtH-irtiens- arc held to bu

"t

T¥\

established by the .Federal li.eHerve-Bettf4r —The Oonipirollc-H

.1 (.'iuTOwy-r4tt41-TjH arrange I l i e dmien nf- minimal t m n k e.\-

of the OiuTonoy ah all so arrange the duties of national bunk

6

3 examiner.

oxaininora that no two sttocesMivo examinations of any naaoelation shall be made by the same-examiner the dates n-he-n

rnt*

r~i* ff t"S tiT —rvt^t^t^rt1 fc>t)})l (IT

fttHttter^' that nu iwa I'licce^i-ve i!MitiHtt<ttw-HM of any a;<i<otrt-HHH- . • i i i

8

ir rt 1 ' \— Oil I |M 1 Or It 1 11' —f^i—t Ttt^1

tttk^-tj

t h e .<iinie i-xiiiriiiiey flu1 ilales ir/tc.n

the. rtiriotix hi

9 the various banks are examined.

in addition to the examinations made and conducted by

10

In addition to the examinations made and conducted by

10

\.i\ addilion to the examinations made and conducted by

11 the Comptroller of the Currency, every Federal reserve bank

11

the Comptroller of the Currency, every .Federal reserve bank

11

fhe CornpfroJJer of tho Lwnw.y. every Federal i-ese)-ve bank

12

may, with the approval of the Federal Reserve Board, arrange

12

may, with the approval of the Federal reserve acje.nl or

12

may, \viih the approval of rhe Federal, reserve a<jenl or oj the.

13 for special or periodical examination of the member banks

l!>

of the Federal Reserve Board, «»»««« prori.de for special er

! ;!

Federal Reserve Board, arrange for special or periodical exauri-

14 within ite district. Such examination shall be so conducted

1.4 ]-tww4ieftl

within

14

nation of the member hanks within its district.

15 as to inform the Federal reserve bank under whose auspices

15

its district.

Such examination shall be so conducted

15

animation shall bo so conducted as to inform the Federal

16 it is carried on of the condition of its member banks and of

16

as to inform the Federal reserve ba.nk under whose, auspices

H)

resei-\ e bank under whose auspices it is carried on of the, con-

17 the lines of credit which are being extended by them.

17

it is carried on of the conuition of its member banks and o!'

17

dition of its meinlier banks and of the lines of credit which are

18

the lines of credit w h i c h are being extended by then.

18

beinLj extended l-,y tiiem.

U)

Kvcry Federal reserve bank shall at all times furnish to

19

at a l l times furnish to the Fedonil Reserve Board such informa-

20

the Federal Reserve Board such iiiiYmnatiou as may oe de-

20

iion as may be demanded by the latter concerning the condi-

21

manded by the latter concern inn; the eondirior. of any tw-H-ritrtt-l-

'2 1 tion of a ny twH^wtH«ttltHt«-rts«jei«it+mt member bank located

'22

attt^k- located inf.mliui- lunik wit.hir. the district of the said

22

2B

Federal reserve bank.

10

18 Every Federal reserve bank shall at all times furnish to
19 the Federal Reserve Board such information as may be de20 manded by the latter concerning the condition of any national
21

banking association located within the district of the said

22

Federal reserve bank.

24

examination of tbe member

hanks

No association shit II be subject to any ri-nlorvil j.>oii:er.i
other than such nx urn iiuih.r.rize.d !>>/ i/m:, or r.exl.ed in. the
courts of justice., in- xnch ux xlndl />" or shall /uir.e I ><>.<>, n. I'.rnr86

86

Such ex-

Every Federal reserve bank shall

w i t h i n fhe district of the said Federal reserve bank.




HOUSE BILL.

HITCHCOCK AMENDMENTS.

O \V I W A 31 IIXDM KNT.

cised or directed by Congress, or either House thereof, or
any committee thereof.
The Federal Reserve—Board shall aa often as it deems

3

The Federal Reserve Board shall as often as it deems best,

The Federal Reserve Board shall as ofteM-aa-it-dccms-beatr

4

and in any case not less frequently than four times each year,

aftd in any case not leas froq-tteftlly-truat four times ca eh-y etHr

4 -beat, and in tiny I'MO not Ioi33 frequently than four times each

5

order an examination of national banking associations in

erdcr an examination of national bunking— asse&Htriefts—ift

o year, order ttH—examination-of national banking anaooiatiottii

6

reserve cities. Such examinations shall show in detail the

reserve cities.—Such cxaminatiotts ahull ahovi -m-dets+l-4-hfr

6 ta-rcaervc eUte.-h —Such examinations nhall allow in detail the

7

total amount of loans made by each bank on demand, on

total amount of leant- made by uaeh-btmfc-tm-ftefflttftfk-ett

1 fatal amou-ftt-of loans made by each-bank on demand. OB-

8

time, and the different classes of collateral held to protect

-time, and—the different ohmcM of oollateivit-heM-4e-pftH:efrt

8 -time, and the different olamieu of collateral held to protect

9

the various loans, and the lines of credit which are being ex-

9 the various loana, and-tfae-fetes-ef-efedtt which are-beiftg-es-

3

9

the va,riett9-teatt3, and the lines of credit which are being ex-

The Federal Reserve Board shall, at least

10 •tendod by them. The Federal Reserve Board shall, at least

10 tended by them. The Federal Reserve Board shall, at least

11 once each year, order an examination of each Federal re-

11 once each year, order an examination of each Federal re-

11

once each year, order an examination of each Federal re-

12 serve bank, and upon joint application of ten member banks

12 serve bank, and upon joint application of ten member banks

12

servo bank, and upon joint, application of ten member banks

13 the Federal Reserve Board shall order a special examination

13 the Federal Reserve Board shall order a special examination

13

iho Federal Reserve Board shall order a special examination

14 and report of the condition of any Federal reserve bank.

14 and report of the condition of any Federal reserve bank.

14

and report of the condition of any Federal reserve bank.

15

15

10 tended by them.

SEC. 24. That no national bank shall hereafter make

SEC. 24. That-tte natiotml No member bank or any of-

15

SEC. 24. That no «ftttmwi -member bank, or any

officer,

16 any loan or grant any gratuity to any examiner of such bank.

16 ficer, director, or employee thereof shall hereafter make

16 director, or employee l/iercof, shall hereafter make any loan

17

17 any

gratuity to any examiner

17

or grant any gratuity to any examiner of such bank.

Any bank offending against this provision shall be deemed

loan

or grant

any

Any

18 guilty of a misdemeanor and shall be fined not more than

18 of such bank.

Any bank officer, director, or employee

18

bank efrmt+ws-tt£*H*4 officer, director, or employee thereof

19 -$5,000, and a further sum equal to the money so loaned or

19 t/iereof oH'cnding agamat r-iolnh-nt/ this provision shall lie

19

r.ii)inl'ni<! this provision shall be deemed guilty of a mis-

20 gratuity given; and the officer or officers of a bank making

•20 deemed guilty of a misdemeanor and shall be IHI/JI-'-WIKH/

20 demeanor and shall lie inytri-ionetl -not exceeding one year or

21

such loan or granting such gratuity shall be likewise deemed

-21 KKCftediiiy one yew or fined not more l h a n Sfj.OOU, or bolli ;

22

guilty of a misdemeanor and each shall be fined not to exceed

•22 and fined a further sum equal to the money so loaned or

23

$5,000.

23 gratuity given; and the oilit-ef-ttf-ttitifefs-el'-rt-bniik makt-Hg

24

bank examined by him shall be deemed guilty of a misde-

24

25 meaner and shall be fined not more than $5,000, and a further

25

26 sum equal to the money so loaned or gratuity given; and shall

•26

27

Any examiner accepting a loan or gratuity from any

forever thereafter be disqualified from holding office as a

87

no!

21

r a l u i t - f f t v c M i ; and- the
-^

—lean or granting suet* gratuity sliall-W4ik-ejrt;t!je-deeme4

^
L'O

Any examiner accepting a loan or gratuity from any
bank examined by him or from an officer, director, or em87

lined not nmiv than $5,000. and a further sum ci{iia-l-te-i4ie

26

-f^TGOO or both.

Any examiner accept-

ing .iiic/i a loan or gratuity frmH-tttty-tmn k cxaminofl-by-h-im
shall be deemed guilty of a misdemeanor and shall be im87




HITCHCOCK AMENDMENTS.

OWEN AMENDMENT.

HOUSE BILL.

No national-bank examiner shall

1 ployee thereof shall be deemed guilty of a misdemeanor and

1 prisoned not exceeding one year or be fined not more than

2 perform any other service for compensation while holding

2 shall be imprisoned not exceeding one year or fined not more

2

3

3 than $5,000, or both; and fined a further sum equal to the

3 gratuity .given; and shall forever thereafter be disqualified

4 money so loaned or gratuity given; and shall forever there-

4 from holding office as a national bank examine? or'both. No

5 after be disqualified from holding office as a national-bank

5 national bank such examiner shall perform any other service

6 examiner. No national-bank examiner shall perform any

6 for compensation for a bank within his jurisdiction while

7 other service for compensation while holding ouch office for

7 holding such office.

1

national-bank examiner.

such office.

85,000, and a further gum equal to • the money BO loaned-ef

8 any bank or officer, director, or employee thereof.
No officer or director of a national bank shall receive er

9

No officer or director of a national bank shall receive.or

10 be beneficiary, cither dirootly or indirectly, of any fee (other

10

be beneficiary, either directly or indirectly, of any fee • (other

11 than a legitimate fee paid an attorney at law for legal Gcrviceafc

11 than a legitimate foe paid an attorney at law for legal acrv

12 commission, gift, or other consideration for or on account-of

12 tecs), ooiamisaipn, gift, or other consideration for or on account

13 any loan; purchase, aolc, payment, exchange, or tranaac-fe>ft

13 el any loan, purchaao, aalo, payment, exchange, or transao-

14 with rcapoot to stooka, bondo, OT other investment Bccuritios

14

15 or notes, bills of exchange, acocptanocar-bankcra' bills, eabte

15 securities or notca, billa of exchange, acccptancca, bankers'

16 transfers or mortgages made by or on bchalf-of a national baafe

16 billa, cable transfers or mortgages made by or on behalf of a

17 of which he is ouoh officer or director.

17 national bank of which he io such officer or director;—^y^r

9

tion with respect to stocks, bonds, or other investment

18 person violating any provision of this section shall bo punished
19 by a fine of not os.cccdi.ng So,000 or by imprioomnciit not
20 exceeding five ycura, or both 3uoh fine and impriaonmcfttr-iH
21
22

No officer or director of a national bank shall receive or

23 be beneficiary, either directly or indirectly, of any fee (other
24

than a legitimate fee paid an attorney at law for legal serv-

25 ices), commission, gift, or other consideration for or on account
26 of any loan, purchase, sale, payment, exchange, or transac88

22
23

Other than the usual salary or director's fee paid
to any officer,

director, or employee of a member bank

24 and other than a reasonable, fee paid to such officer,

22

the discretion of the court having juriodiction.
Other than the usual salary or director's fee paid to any

23 officer, director, or employee of a member bank and other than

di-

24 a reasonable fee paid to such officer, director, or employee

25 rector, or employee acting as an. attorney at law for

25 acting as an attorney at law for legal services rendered to

26

26 such bank, no officer, director, employee, or attorney ,of a

legal services rendered to such bank, no officer, director, em88

88




OWEN AMENDMENT.

HOUSE BILL.

HITCHCOCK AMENDMENTS.

tion with respect to stocks, bonds, or other investment

1 ployee, or attorney of a member bank shall be a beneficiary

1

2 securities or notes, bills of exchange, acceptances, bankers'

2 of or receive, directly or indirectly, any fee, commission, gift,

2 indirectly, any fee, commission, gift, or other consideration

3 bills, cable transfers or mortgages made by or on behalf of a

3 or other consideration for or in connection with any transaction

3 for or in connection with any transaction or business of the

1

member bank shall be a beneficiary of or receive, directly or

4 or business of the bank. No examiner, public or private, shall
5

disclose the names of borrowers or the collateral for loans of a

6 member bank to other than the 'proper officers of such bank with7 out first having obtained the express permission in writing from
8
9

Any

12 person violating any provision of this section shall be punished
13 by a fine of not exceeding $5,000 or by imprisonment not
14 exceeding five years, or both such fine and imprisonment, in
15 the discretion of the court having jurisdiction.
16

Except so far as already provided in existing laws this

18 sage of this Act.
SEC. 25. That from and after the passage of this Act the

20 stockholders of every national banking association shall be
21 held individually responsible for all contracts, debts, and
22

Congress of the United States, or either House thereof, or any

11 committee thereof.

Any person violating any provision

11 bank.

Any person violating any provision of this section

12 of this section shall be punished by a fine of not exceeding

12 shall be deemed guilty of a misdemeanor and punished by a fine

13 $5,000 or by imprisonment not exceeding fire years one year,

13 not exceeding $5,000 or by imprisonment not exceeding one

14 or both auoh fino and imprisonment, in the discrction-of- the

14 year, or both.

15 court having jurisdiction.
16

Except so far as already provided in existing laws this

16

"

Except so far as already provided in existing laws this

engagements of such association, each to the amount of his

23 stock therein, at the par value thereof in addition to the
24 amount invested in such stock.

The stockholders in any

25 national banking association who shall have transferred their
89

17 provision shall not take effect until six months sixty days

17 provision shall not take effect until six months after the pas-

18 after the passage of this Act.

17 provision shall not take effect until six months after the pas-

19

by a court of competent jurisdiction, or by direction of the

10
11 national bank of which he is such officer or director.

the Comptroller of the Currency, except when ordered to do so

18 sage of this Act.

19

SEC. 25. That from and after the passage of this-Act-the

19

20

The stockholders of every arttdnal banking association mem-

25 stockholders of every national banking association shall be

21 ber bank shall be held individually responsible for all con-

21 held individually responsible for all contracts, debts, and

22 tracts, debts, and engagements of such aaaociatioa bank,

22

23 each to the amount of his stock therein, at the par value

23 stock therein, at the par value thereof in addition to the

24 thereof in addition to the amount invested in such stock.

24 amount invested in such stock.

25 The stockholders in any aatio&ftt-banking association member
89

25 national banking association who shall have transferred their

SEC. 25. That from and after the passage of this Act the

engagements of such association, each to the amount of his

89

The stockholders in any




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1 shares or registered the transfer thereof within sixty days

1 bank who shall have transferred their shares or registered

1 shares or registered the transfer thereof within sixty days

2

next before the date of the failure of such association to meet

2 the transfer thereof within sixty days next before the date

2 next before the date of the failure of such association to meet

3 its obligations shall be liable to the same extent as if they had

3 of the failure of such association bank to meet its

3 its obligations shall be liable to the same extent as if they had

4 made no such transfer; but this provision shall not be con-

4 obligations, or with knowledge of such impending failure,

4

5 strued to affect in any way any recourse which such share-

5 shall be liable to the same extent as if they had made

5 strued to affect in any way any recourse which such share-

6 holders might otherwise have against those in whose names

6 no such transfer, to the extent that the subsequent trans-

6 holders might otherwise have against those in whose names

7 such shares are registered at the time of such failure.

Sec-

1 feree/ails to meet such liability; but this provision shall not be

7 such shares a,re registered at the time of such failure.

8

tion fifty-one hundred and fifty-one, Revised Statutes of the

8 construed to affect in any way any recourse which such share-

8

tion fifty-one hundred and fifty-one, Revised Statutes of the

9

United States, is hereby reenacted except in so far as modi-

9 holders might otherwise have against those in whose names

9

United States, is hereby reenacted except in so far as modi-

10 fied by this section.

10 such shares are registered at the time of such failure. See-

made no such transfer; but this provision shall not be con-

Sec-

10 fied by this section.

11 tion fifty one hundred and fifty one, Revised Statutcs-ef-4he
12 United States; is hereby rccnactod except in so far as modi13 fiod by this Bootion.

14

LOANS ON FARM LANDS.

14

LOANS OS" FABM LANDS.

14

15

LOANS ON PABM LANDS.

SBO. 36. That any national banking aaoooiation net

16 situated in a reserve oit}' or central rosorVo oity may make
17 loans scoured by improved and unencumbered farm land,
18 but no 3uoh loan shall bo made for a longer time than- twelve
19 monthi), nor for an amount exceeding fifty per ooatiim of the
20 not mil vuhu! of the propurt\' offered on security, and mich
21 property shall bo situated within Lho Federal reserve district
'22

In wkiok clio bank la located.—Any suoli bank may make

23 auoh loans in an. aggregate sum equal to twenty five pur
24

con turn of iia capital and surplus.
90




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1

The Federal:' Reserve Board shall have power from

2

time to time to add to the liat of cities in wl>wii-ftatiemt

3

-bftftk-9 ahtill ue4-fee-pc.rmittc.d-to inakc-joana-acciirod upon real

4

estate in trm-iiuinrmr described in this scefemr

5

SEC. 26. That any national banking association not

SKC. 26. That any Any national hanking association not

5

SEC. 26'. That deposits in national banks, pat/able more

6

situated in a reserve city or central reserve city may make

situated in a reserve city or central reserve city may make

G

than thirty days after they are made, shall be knon-n as time

7

loans secured by improved and unencumbered farm land,

loans secured by improved and unencumbered farm land,

1

deposit*, and such banks mat/ continue hereafter as heretofore.

8 but no such loan shall be made for a longer time than twelve

3 situated within its Federal reserve district, but no such loan

8

to receive time deposits and. to pan interest on the same.

9 months, nor for an amount exceeding fifty per centum of the

9 shall be made for a longer time than twelve months five years,

9

national hanks, not located in central reserve cities, may make

10 actual value of the property offered as security, and such

10 nor for an amount exceeding fifty per centum of the actual

10 loans, secured In/ improved, occupied, ami unencumbered

11

1.1

value of the property offered as seoiirityT-awl auoli property

11

farm lam/ sitnateiJ n-ith.in tlic. Federal reserve, district ir/tere

1.2

ahftH-be situated within the Federal reserve district-m which

12

the loaning hank ijs located to the n-tent of one-half of its

property shall be situated within the Federal reserve district

12 in -which the bank is located.

Any such bank may make

All

Any such bank may make such loans

13 value, but no such loan shall be made for a. longer period than

in an aggregate sum equal to twenty-five per centum of its

14 five, years, nor shall the af/yrcgale of xiir.li loans In/ nit// lunik

13 such loans in an aggregate sum equal to twenty-five per

13 the bank is located-.

14 centum of its capital and surplus.

14

15 capital and surplus.

15

The Federal Reserve Board shall have power from

Hi

The Federal .Reserve Board shall have power from

I. (3

--l/'t"' bi'iMDuiuj member ba.nks of ait.// rcsc.rre bank.

17 time to time to add to the list of cities in which national

17

time to time to add to the list of cities in which national

17

national banks are hereby aiitiwrized to act as ailwinislcators,

18 banks shall not be permitted to make loans secured upon real

18

banks shall not be permitted to make loans secured upon real

18

e.re.cni.ors, or Iri'slri'.-i.

19

estate in the manner described in this section.

16

19 estate in the manner described in this section.
20

SAVINGS DEPARTMENT.

21

SEC. 27. That any national banking association may,

22

subsequent to a date one year after the organization of

23

the Federal Reserve Board, make application to the Comp-

24

troller of the Currency for permission to open a savings

25 department. Such application shall set forth that the

•20

21
•>2

DISPAUTMIiXT.

8-HO. 27. That-any national hanktttgf-aasociattori nin.y-7

20

21

rrBer-27. That any national banking ajjoouUiuu may?

to a date en-e year after the ora'an

•23

Federal • Reserve Board, make application to the Comptroller

23

tlio [''(.'(IcL'iil lieai'iTe Board, make applieat.ioftHa^-the-^mp-

24

of the Currency for permission to open a wings d e p a r t m e n t .

24

i roller—«-4' l i i r ('iinviio.y tor [.u'ruiissitw—1^-> up en a 3a.vtttg'-<

25 Suoh application shall set forth that the directors of said

25

clupurriiiuiiiT—btwlt—ttfiplicatioft—all all—se4—t'oiili—thftt—the

91
91

exceed one-third, of i./s time d^pos'i/s.




HOUSE BILL.

OWEN AMENDMENT.

HITCHCOCK AMENDMENTS.

1

directors of said national bank have by a majority vote appor-

1

national bank have by—a—majority —¥ete—apportk>aed— a

directors of said national bank have by a majority vote appor-

2

tioned a specified percentage of their paid-in capital and sur-

2

specified.....percentage—of their paid-tfl— capital— and surplus

rieaed-ar-speoificd percentage of their paid in capital and sur

3

plus to said savings department and to that end have segre-

3

to said savings department and -te- that end—aaafe— segfe-

fd-rta-tft-satd-HaA'inga department and te that end have segre-

4

gated specified assets for the uses of said department, or that

4

gated specified assets for the uace-ef said

gated specified anacta for the uses of aaid department, or that

5

cash capital for the said savings department has been obtained

5

cash, capital for the aaid savings departme

cash capital for the said saving'!* department has been obtained

6

by subscription to additional issues of the capital stock of

6

by subscription to additional iaauca-ej-^

by-sttbscription to additional iosucs of the capital stock of

7

said national bank: Provided, That the capital thus set

7

aaid national bank: Provide^ That the capital teas-set

said national bank: Provided, That the capital thus sot

8

apart for the uses of the proposed savings

department

8

apart for —the uaoa of the proponed aavirigo

3 apart—fef—the—uses el—tae—proposed—savings—department

9

aforesaid shall in no case be less than $15,000, or than

9

afoicaaid shall in no caao be ICBO than gl&76QQ--ef

9 aforesaid shall in no oaau bo leoa than $15,000, or than

10

a sum equal to twenty per centum of the paid-up capital and

10

a sum equal to twenty per centum of the paid up capital as.d

10 a sum equal to twenty per centum of the paid up capital and

11 surplus of the said national bank.

11 surplus of the said national-baafe-

11 surplus of the aaid national bank.

12

12

12

In making the application aforesaid any national bank-

In making the application aforesaid any national-basfe-

In making the application aforesaid any national bank-

13 ing association may further apply for power to act as trustee

13 mg association may further apply for-powor to act aa-tfastee

13 ing association may further apply for power to act as trustee

14 for mortgage loans subject to the conditions and limitations

14 for mortgage loans subject to the

14 for mortgage leans subject to the conditions and limitations

15 herein prescribed or to be established as hereinafter provided.

15

15 heroin, prcacrlbed or to be established as hereinafter provided:

16

Whenever the Comptroller of the Currency shall have

16

17

approved any such application as hereinbefore provided, he

17

approved any aucb. application as

17 approved any uiich application as hereinbefore provided,-he

18 shall so inform the applying bank, and thereafter it shall be

18

ahall so inform tho-applying bank,

18 shall so inform the applying bank, and thereafter it shall be

19

authorized to receive savings deposits as so defined, and the

19

authorized to receive saving^epea

19 authorized to receive savings deposits as so defined, and the

20

organization and business conducted or possessed by said

20

organization and buaincaa conducted— ef—peaaeased— by-said

21

bank at the time of making said application, except such as

21

bank at the time of making said application, csccp-t-aBeh-aa .

•21 -bank at the time of malting' said application, except ouch as

22

has been specifically segregated for the savings department,

22

has bccn-apccifieally acgrcgated-fef-tae stiYings-departaef^y

22 aaa-beea-ageciticaUy segregated for the savings department?

23

and subsequent expansions thereof shall be known as the

23

and subsequent cspanaieaa—taefeef shall bo knowa-aa—the

•23 find subaeqaeat oxpanateaa thereof ahall. be known as the

24

commercial department of the said bank.

The said depart-

24

eommcrcial department-el the said-baafe — The said-depart-

-24 commercial department of the uaicl bank.—The said doport-

25

ments shall, to all intents and purposes, be separate and

25

monts ahall, to all iatonta and payposca, be separate-arid

•25 taoiits jliall, to all intents and purposes, bo separate and

92

heroin prcacribcd or to bo established as hereinafter p
Whenever the Comptroller of the Currency shall feftv

93

16

-Whenever tho Comptroller of the Currency ahull have

organization arid business conducted or posaoaaod by said

92




OWEN AMENDMENT.

HOUSE BILL.

HITCHCOCK AMENDMENTS.

1

distinct institutions save and except as hereinafter expressly

1

distinct institutions save and except as hereinafter expressly

1 distinct institutions save'and except aa hereinafter expressly

2

provided.

2

provided.—The capital, surplus, deposits, ooouritica, invcat-

-2

provided.—Tho capital, surplus, deposits, securities, investments.-and other property, effects, and assets of each, of said

The capital, surplus, deposits, securities, invest-

3

ments, and other property, effects, and assets of each of said

3

mcnts, and other property, cffoots, and assets of each of said

;>

4

departments shall, in no event, be mingled with those of

4

departments shall, in no event, bo mingled with those-ef

4 departments shall, in no ovont, bo mingled with those of

5

the other department, or used, either in whole or in part,

5

the other department, or used, either in whole or in part?

5 the other department, or used, either in whole or in pare,

6

to pay any of the deposits of the other department until all

6 to pay any of the deposits of the other department until ttlt

6 •te-ptty-any of the deposits of tke other department until all

7

of the deposits of its own department have been fully

7

of the deposits of its own department have been fully

i

8

paid and satisfied.

or

8

paid—and—satisfied.—National—banks—may—increase—e*

3

9

diminish their capital stock in the manner now provided

9

diminish their capital atock in the manner now provided

9 dimmish their capital stock in the manner now provided

10

by law, but whenever such general increase or reduction of

10 by law, but-wb.cn.ovcr snob general increase or rcduction-ef-

10 by law. but whenever such general increase, or reduction of

11 the capital stock of any national bank operating upon.the

11 the capital stock of any-national bank operating upon the

11 •tjic capital stock of any national bank operating upon tko

12

provisions of this section shall be made such increase or reduc-

12 provisions of this section shall be mode such increase or rothte-

12 provisions of thia section ahull be made such increase or rcdao

13

tion shall be apportioned between the commercial and sav-

13

13 •tion shall bo apportioned between the commercial and sav

14

ings departments of the said bank as its board of directors

14 ings departments of the said bank as its board-et-feeeters

14 ings departments of the said bank as its board of directors

15

shall prescribe, notice of such increase or reduction, and of the

15 shall prescribe, notice of such increase or reduction, arid o£4fee

15 shall prescribe, notice of such increase or reduction, and of the

16 apportionment thereof, being forthwith given to the Comp-

16 apportionment thereof, being forthwith-gtveft-te-thc Com-p-

16 ftpportionmcnt-thcrcof, being forthwith given to the Comp

17

trailer of the Currency; and any such national bank may

17 troller of the Currency; and any such national bank-may

17

18 increase or diminish the capital already apportioned to either

18 increase or diminish the capital already apportiofted-te-etther

18 increase e? diminish the capital already apportioned to cither

19

its savings or commercial department to an extent not incon-

19

itj savings or commercial department to an extent not iaeett-

19 •fe savings or commercial department to an extent not inoon-

20

sistent with the provisions of this section, notifying the

20

aistorit with, the provisions of this section, notifying the

•20 iiiritcnc with the provisions of this section, notifying the

21

Comptroller of the Currency as hereinbefore provided.

21

Comptroller of the Currency aa hereinbefore provided.—-H*e

•.'1

22

savings department for which authority has been solicited

22

savings department for which authority has been solicited

i'2 savings department for which authority has boon solicited

23

and granted shall have control of the cash or assets appor-

23

and granted shall have control of tlic cash or assets appw-

23 flriid granted ahali have control of the ooali or assets appor-

24

tioned to it as hereinbefore provided, and shall be organized

24

tionod-te it as hereinbefore provided, and-shatj-be organized

•24 tioned to i-fe a,'i hereinbefore provided, and shall bo organized

25

under rules and regulations to be prescribed by the Comp-

25

under ruloa and regulations to be-prcacribcd-by the Comp-

•-'5 midcr rules and regulations to be proscribed by the Comp-

26

troller of the Currency.

26

trailer of the Currency.

26 troller of the (JmTciiGVT

National

banks may increase

The

tion shuU bo apportioned between the oommcroial and say-

93
93

•:>

of the deposits of its own department have been fully
aid—aftd—satisfied';

National—ba»ks—may—increase—e?

troller ef the Curi'onoy-; and any suoh national bank may

Comptroller of the Currency aa hereinbefore1, provided.—¥fce

93




HOUSE BILL.

1

o w r;.\ \M K\ i > .11 i-:.\ r.

Both the savings and commercial departments so cre-

tl 1 1' 3tiv iiijTi- -iiiid-ta-rttwtfivi jH—

2 ated shall, however, be under the control and direction of a

'2

3 single board of directors and of the general officers of said

3

4

4

bank.

5

U l T f ' I l t O L K AMEM).MK.\TS.
Ijrtrh1.— ri-tt—•rr.trtHi^j— Hn-rtJ— «-titttHttMieirtl dc!|ltirl'llllj-ltf?) i«)

atud ahull, however, bo

of ft

of
DfXU'TCT

All business transacted by the commercial department

.VII

6 of any such national bank shall be in every respect subject

of any suoh national bank Jvn41-^t

7 to the limitations and requirements provided in the national

to tho liinitationa and roqiilrci)mnt.3-pffrirkiet!r4it-i4i «

8

banking Act as modified by this Act, and such business

T«-i:r.<

rf

i .rtHi r'rK: J—r'rl't

ll

fei

A Cfr—ftti-tt—t

9 shall lionccfonnuxi be-kno n as

9 shall henceforward be known as commercial business.
10

S banking Act tis modified-by tl ita—Vetr tuul auett

7

The savings department of each such national bank

10

The aavinga department of cae4t—ateh— ttfe

11 shall be authorized to accumulate and loan the funds of

;

£ke-^ftv4ttji:r (k'j)iirltm?ti:t—e-F— eafeh

11 ahall be authorized !o neetuhttjtri'e—rtttfl—kmtt—t-!-i

12 its

10

12 its—dcpoaltora,—Ee—rucuivc dope^t^—ol:

depositors, to

receive

deposits of current

funds,

13 to purchase securities authorized by the Federal Reserve

13 to purchase scouritic:; autfe»i4ge4-t>fr— t-be—t^edefai— Utt^set^e

14 Board, to loan any funds in its possession upon real

14 Board;—to—loan any—ftwds—Ht-4te—pessessteft— ttpeft— -tea t

15 estate or other authorized security, and to collect the same

La esftrte or other

16 with interest, and to declare and pay dividends or in-

16 with- interest^—aftd— te— deeta^e and ;.itty—4ivittett(t-j— Bf— Ht-

17 terest upon its deposits.

The Federal Reserve Board is

17 •tefeat— ttpen its dcpoait3.--:Hte—Ketkrd uesefTft-4»t>{tftt— ts

18 hereby authorized to exempt the savings departments of

18 hereby authorized te exempt rJte—saytftgB—ek-paytHtett-'rt— t>t'

1S

19 national banking associations from any and every restriction

19 national

U)

20 upon classes or kinds of business laid down in the national

-20 upon classes or kin.tk-t)i' buuiuejs laid do\vn l

21 banking Act, and it shall be the duty of the said board within

L'l

-exeww+i—i-he

banking Act, and i

22 one year after its organization to prepare and publish rales
23 and regulations for the conduct of business by such savings
24 departments.

aad

The said regulations shall require every na-ttv-i rr-priH i-hen t ;\ n d-tt

25 tional bank which shall conduct a savings department and a
94

94

94




OWEN

HOUSE BII,L.

1 commercial department to segregate in its own vaults the cash

AMENDMENT.

HITCHCOCK AMENDMENTS.

1 commercial department to segregate-in its own vaulte-tbe-easb
;

:

1 ia-ite-own vaults-febe-easb-asd-agse-ts-belefigiflg-te-SBeh-dffart-

2 and assets belonging to such departments respectively and

2 and assets belonging to such dcpartffl€Bta-H e8Beefe ejy-afi4

2 Bteats respectively aB

3 shall prescribe the general forms of separate books of account

3 ahull proscribe the general forms of sepafate-beefes of accoBR-t

3

4

to be used by each such department for its exclusive and

4 to-bo used by each such department for its exclusive aad

4 fer4te exclusive and iadrndttaj-Hser-^be-fegHlatieBS-afefesaid

5 individual use. The regulations aforesaid shall further

5 individual use.—-Phe- regulations- aforesaid- ahull—farther

5 shall further spocify-tbe-geried-ef-aetiee-^ef-tbe-wi-thdrawal

6 specify the period of notice for the withdrawal of deposits

6 apeeify-tho period of notice for the wj-thdrawal-ef-depes^ts

6 ef-depestts made in-t

7 made in the said savings department and shall forbid the

7 made in the said savings department and shall forbid—the

7 forbid the aocoptanee-ef

8

acceptance of deposits by one department of such national

8 acceptance of deposits by one dopartmont-ef-saeb-aatfeflai

8

national -bank from the other . departme

9

bank from the other department of such bank.

The Federal

9 bank from the other department of such-bank-—Tho Fcdemi

9

The Federal Eooorvo Board ohaH-fflakc aad— BftbMah-a-t-i-te

10 Keserve Board shall make and publish at its discretion lists of

10 Reserve Board shall make and publish at ita discretion liats-ef

10

11 securities, paper, bonds, and other forms of investment, which

11 securities, paper, bonds, and other forffls-ef-4a¥eateent, whieb

1 1 of investment, which the saviBga-degartaaeB-ta-ef—

12 the savings departments of national banks shall be authorized

12 the savings departments,of national-banks shall-be-atriberized

12 banks shall be authorized to buy or

13 to buy or loan upon; and said lists need not be uniform

13 to buy or loan upon; and said lista need not bo uniform

13 need not bo uniform throughout the

14 throughout the United States, but shall be adapted to the

14 throughout the United States, but shall be-adaptccl to the

14 bo adaptcd-fee-tho oonditieas-ef-bH8ifie8s4B-difi'efefit-3ee-tiefis

15 conditions of business in different sections of the country.

15 conditions of business in different sections of the country;

15 e£ tho country.

16

16

It shall bo the duty of every national bank to nmia-

16

It shall be tho duty of every national bank to main-

17

-fcaia;—with—respect—te—ftH—deposit—^abilities—el—ks

17

tain, with respect to ail deposit liabilities of ita savings dopart-

It shall be the duty of every national bank to main-

17 tain, with respect to

all

deposit

liabilities

of

18 savings department, a reserve in money which

its
may

30parate-beefes-ef-aeeetHrt-te-be-H8ed:-by-eaeh-8tteb-degaf-tfflefit

discrction-fets-of

18 savings—department,—a—rcsoiTo—m—money—wbieb—may

18 mont; a reserve in money which may under existing law be

19 under—existing—bw—be—counted

as—reserve;—equal

19

counted ao rcaorvo, equal to not less than five por centum of

to not less than five per centum of the total deposit

20 te—aet—teas—than five per—centum—ef—tbe—total -dcpoai-t

20

-febo total-deposit liabilities of such department, and every

21 liabilities of such department, and every national bank

21 liabilities—of sueh—department,—aad—eyefy national baafe

21 national bank authorized to maintain a savings department is

22

authorized to maintain a savings department is hereby

22 authorized to- maintain—a—savings—department—4e—hereby

22

hereby exempted from the-rcaorvc rcquircmcnto of the national

23 exempted from the reserve requirements of the national

23 exempted from- the reserve- roquiromcate- of the—satreaat

23

banking-Act and of this Act. . .in respect to tho said deposit

24 banking Act and of this Act in respect to the said deposit

24 baaMag Act and ef-this Act ie-fes]?eefr4e-tbe-said-4epesJrt

24

iiabilltica-of its savings department, except as in thia acotion

25 liabilities of its savings department, except as in this section

25 liabilities ef its savings dopartmont.-oscopt as-4n.-tb.ia

25

provided:—Every regulation made in pursuance—of thin

19 under existing
20

law

be

95

counted

as

reserve,

equal

95

95




OWEN AMENDMENT.

HOUSE BILL.

1

HITCHCOCK A3IRND3IENTS.

provided. Every regulation made in pursuance of this

1

provided.—Every- regulation made in pursuance of thia

1 section shall be duly published, and aho peetod in every

2 section shall be duly published, and also posted in every

2

section shall bo duly published, and also posted in every

2

3 member bank having a savings department.

3 ffiombor bank having a savings department.

4

Every officer, director, or employee of any member

4

Every officer, director, or cmpleyoo of any member

4

Ever;- officer, director, or employee of any member bank

5 bank who shall knowingly or willfully violate any of the

5

bank who shall knowingly or willfully violate any of the

5

who shall knowingly or willfully violate any of tho proviaiona

6

provisions of this section, or any of the regulations of the

6

provisions of this section, or any of the regulations of the

(i

of thui section, or any of the regulations of tho Federal Reserve

7

Federal Reserve Board, or of the Comptroller of the Cur-

7

Federal Ecaorvo Board, or of the Comptroller of the Cur-

7

Board, or of tho Comptroller of the Currency, made under

8

reucy, made under and by virtue of the provisions of this

8

fenoy, made under and by virtue-e£-tho provisiona-ef-this

8 and by virtue of tho. provisions of thia section ahall be guilty

!) section shall be guilty of a felony, and on conviction thereof

9 section, shall bo guilty of a felony;- and on -conviction thereof

1) of a felony, and on conviction thereof shall be punished by a

10 shall be punished by a fine not exceeding $5,000 or by

10 ahull bo punished by a fine- not oxoooding-^oyGOO-ef—by

10

I'uio not exceeding -$5,000 or by imprisonment not exceeding

11 imprisonment not exceeding two years, or both, in the dis-

11

imprisonment not exceeding two yoara, or both, in the

(1

hro 3'oara, or both, in the discretion of sho court.

12 cretion of the court.

12

discretion of the court.

13

13

14

FOREIGN HKANCHES.

SEC. 28. Thai any national banking association possess-

14

FORBIDS BBANCHES.

SEC. 28. That any national banking association possess-

13

14

member bank having a savinga department.

FOREIGN BBANCHE3.

SEC. 28. That any Federal reserve bank or national

15 ing a capital of $1,000,000 or more may file application with

15 ing a capital and surplus of SI,000,000 or more may file ap-

15 banking association possessing a capital of $1,000,000

10 the Federal Reserve Board, upon such conditions and under

16 plication with the Federal Keserve Board, upon such condi-

16 $5,000,000 or more may file application with the Federal

17 such circumstances as maybe prescribed by the said board,

17 tions and under such circumstances as may be prescribed by the

17 Reserve Board, upon such conditions and under such cir-

18 /'or the purpose of securing authority to establish brancbe*

18 said board, for the purpose of securing authority to establish

18 cumstaiices as may be prescribed by the said board, for the

19 in foreign countries for the furtherance of the foreign com-

19 branches in foreign countries or dependencies oj the United

L9 purpose of securing authority to establish branches in foreign

20 merce of the United States and to act, if required to do so,

20 States for the furtherance of the foreign commerce of the

20 countries or dependencies of t/ie United States for the fur-

21 as fiscal agents of the United States. Such application shall

21 United States and to act, if required to do so, as fiscal agents

21 therance of the foreign commerce of the United States and

22 specif}7, in addition to the name and capital of the banking

22 of the United States. Such application shall specify, in

22

23 association filing it, the foreign country or countries or the

23 addition to the name and capital of the banking association

23 Such applications shall specify, in addition to the name and

24 dependencies of the United States where the banking opera-

24 filing it, the foreign country or countries of-tbe-dcpcndonciea

'24 capital of the banking association filing it, the foreign cetm-

25 tions proposed are to be carried on and the amount of capital

25 qf the United Sin,tea place or places where the banking

25 try or countries or tho dependencies of the United States

96

96

to act, if required to do so, as fiscal agents of the United States.




OWEN SUBSTITUTE.

HOUSE BILL.

HITCHCOCK AMENDMENTS.

1

set aside by the said banking association filing such applica-

1

operations proposed are to be carried on and the amount of capi-

place or places where the banking operations proposed are

2

tion for the conduct of its foreign business at the branches

2

tal set aside by the said banking association filing such applica-

to be carried on and the amount of capital set aside by the

3

proposed by it to be established in foreign countries.

The

3

tion for the conduct of its foreign business at the branches

said banking association filing such application for the con-

4

Federal Reserve Board shall have power to approve or to

4

proposed by it to be established in foreign countries such

duct of its foreign business at the branches proposed by it

5

reject such application if, in its judgment, the amount of

5 place or places.

6

capital proposed to be set aside for the conduct of foreign

6

power to approve or to reject such application if, in its judg-

Board shall have power to approve or to reject such applica-

7

business is inadequate or if for other reasons the granting

7

ment, the amount of capital proposed to be set aside for the

tion if, in its judgment, the amount of capital proposed to be

8

of such application is deemed inexpedient.

8

conduct of foreign business is inadequate or if for other

set aside for the conduct of foreign business is inadequate

9

reasons the granting of such application is deemed inexpe-

9 or if for other reasons the granting of such application is

to be established in foreign countries.

The Federal Reserve Board shall have

10 dient.
11
12

Every national banking association which shall receive
authority

to

establish

branches

in

foreign

countries

13 shall be required at all times to furnish information con14 cerning the condition of such branches to the Comptroller
15 of the Currency upon demand, and the Federal Reserve
16

Board may order special examinations of the said for-

17

eign branches at such time or times as it may deem

18 best. Every

such

national

banking

association

shall

19 conduct the accounts of each foreign branch independently
20

of the accounts of other foreign branches established by it

21

and of its home office, and shall at the end of each fiscal period

22

transfer to its general ledger the profit or loss accruing at

23

each such branch as a separate item.

10 deemed inexpedient.

11

Every national banking association which shall receive

Li

12

authority to establish foreign branches in foreign-countries

to

establish

branches

in

foreign countries

14 cerning the condition of such branches to the Comptroller

14 cerning the condition of such branches to the Comptroller

15 of the Currency upon demand, and the Federal Reserve

15 of the Currency upon demand, and the Federal Reserve

16

Board may order special examinations of the said for-

16 Board may order special examinations of the said for-

17 eign branches at such time or times as it may deem

17 eign branches at such time or times as it may deem

18

18 best.

best.

Every

such national

banking

association

shall

Every Federal reserve bank and every such national

19 conduct the accounts of each foreign branch independently

19 banking association shall conduct the accounts of each foreign

20

of the accounts of other foreign branches established by it

20 branch independently of the accounts of other foreign branches

21

and of its home office, and shall at the end of each fiscal period

-M. establisl'ed by it and of its home office, and shall at the end of

22

transfer to its general ledger the profit or loss accruing at

22 each fiscal period transfer to its general ledger the profit or

23

each ewefe- branch as a separate item.

2.3 loss accruing at each such branch as a separate item.

SEC. 29. That all All provisions of law inconsistent

25

with or superseded by any of the provisions of this Act

superseded by any of the provisions of this Act be, and the
97
97

12 authority

13 shall be required at all times to furnish information con-

SBC. 29. That all provisions of law inconsistent with or

25

Every national banking association which shall receive

13 shall be required at all times to furnish information con-

24
24

The Federal Reserve

24

SEC. 29. ¥hat -ill All provisions of law inconsistent

25 with or superseded by any of the provisions of this Act fet^
97




OWEN SUBSTITUTE.

HOUSE BILL.

HITCHCOCK AMENDMENTS.

1 same are hereby, repealed : Provided, That nothing in this

1 bo, and the same arc are to that extent and to that extent

1

2

2 only hereby? repealed-;—Provided, That nothing.

2 hereby repealed: Provided, That nothing in this Act con-

Act contained shall be construed to repeal the parity pro-

Nothing

and tho same aro are to that extent and to that extent only

3 vision or provisions contained in an Act approved March

3 in this Act contained shall be construed to repeal the parity

3

4 fourteenth, nineteen hundred, entitled "An Act to define

4 provision or provisions contained in an Act approved

4 provisions contained in an Act approved March fourteenth,

5 and fix the standard of value, to maintain the parity of all

5 March

"An

5 nineteen hundred, entitled "An Act to define and fix the

6 forms of money issued or coined by the United States, to

6 Act to define and fix the standard of value, to maintain

6 standard of value, to maintain the parity of all forms of

7 refund the public debt, and for other purposes."

7

7 money issued or coined by the United States, to refund the

fourteenth,

nineteen

hundred,

entitled

the parity of all forms of money issued or coined by the

8 United States, to refund the public debt, and for other

tained shall be construed to repeal the parity provision or

8 public debt, and for other purposes."

9 purposes," and the Secretary of the Treasury may for such
10 purposes, or to strengthen the gold reserve, borrow gold
11 on the security of United States bonds or for one-year notes
12 bearing interest at a rate of not to exceed three per centum
13 per annum, or sell the same if necessary to obtain gold. When
14 the funds of the Treasury on hand justify, he may purchase
15 and retire such outstanding bonds and notes.
16

SEC. 29a. The provisions of the Act of May thirtieth,

16

SEC. 29a. That the provisions of the Act of May thirtieth.

17 nineteen hundred and eight, authorizing national currency

17 nineteen hundred and eight, authorizing national currency

18 associations, the issue of additional national-bank circula-

18 associations, the issue of additional national-bank circula-

19 tion, and creating a National Monetary Commission, which

19 tion, and creating a National Monetary Commission, which

20 expires by limitation under the terms of such Act on the

20 expires by limitation under the terms of such Act on the

21 thirtieth day of June, nineteen hundred and fourteen, are

21 thirtieth day of June, nineteen hundred and fourteen, are

22 hereby extended to December thirty-first, nineteen hundred

22 hereby extended to June thirtieth, nineteen hundred and

23 and fourteen, and sections fifty-one hundred and fifty-three,

23

fifteen.

24 fifty-one hundred and seventy-two, fifty-one hundred and
25 ninety-one, and fifty-two- hundred and fourteen of the Be98
98

98




HITCHCOCK AMENDMENTS.

OWEN SUBSTITUTE.

HOUSE HILL.
1

vised Statutes of the United States, which were amended

2

by the Act of May twentieth, nineteen hundred and eight,

3- are hereby reeriacled to read as such sections read prior to
4
5
6
7

SEC. 30. That the right to amend, alter, or repeal this
Act is hereby expressly reserved.

May twentieth, nineteen hundred and eight, subject to such
amendments or modifications as are prescribed in this Act.

6
7

SEC. 30. That the right to amend, alter, or repeal this
Act is hereby expressly reserved.

6
7

SBC. 30. That the right to amend, alter, or repeal this
Act is hereby expressly reserved.

Passed the House of Representatives September 18,1918.

Passed the House of Representatives September 18,1913.

Passed the House of Representatives September 18, 1913.

Attest:

Attest:

Attest:

SOUTH THIMBLE,
Clerk.

SOUTH TRIMBLE,
Clerk.

SOUTH TRIMBLE,
Clerk.