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Audit The Federal Reserve

Discussion in 'Politics, Elections & Legislation' started by otnot, Nov 22, 2009.

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  1. otnot

    otnot Active Member

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    Hi everyone.
    If you want to really fix our country then we need to support HR 1207 that is going through Congress right now. It gives our government the power to finally audit the Federal Reserve Bank. PLEASE CONTACT YOUR REPRESENTATIVES

    For those of you how don't know who the Federal Reserve is. They were not even a part of the U.S government. They are a conglomeration of bankers from around the world whom our congress gave the power to print money and loan it back to us in 1913. We are paying them interest on paper money with nothing backing it except our hard earned wages in the form of bonds. These bonds are backed by taxes on us.

    We have the chance right now to take back control or our monetary system. And next fall we can take back our congress and senate.

    Best Regards

    Jim Trujillo
     
  2. slic lee

    slic lee Active Member

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    Miami Beach florida
    From what I read, if passed it will put all the money in the FDIC at the mercy of politicians as in general fund. If this is done who will insure depositors, certainly not Joe Biden or any other democrate, the money will disappear, the people of the USA who put money in banks will no longer do that, more money will be sent to banks out of the US and another law will be passed stating people of the US may not send money out of the country and what do you think will happen then when govt starts taking money from depositors........
     
  3. bigdogtx

    bigdogtx Well-Known Member

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    agree with slic,,,,with the corruption in congress right now,,,,why would we want them to control more of the economy ergo our lives????
     
  4. otnot

    otnot Active Member

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    So you would rather trust bankers whom you or I didn't elect to take care of your money? Until we get back the right to print our own money and quit borrowing it from the Fed we will never get out of debt. They just keep printing and loaning us more money there by devaluing our currency even more. Why do you think a car 30 years ago only cost $10K and now it costs $30K. It's not because everything cost more, it's because your money is worth less. And the side effect is an ever growing Federal Government. The bigger it gets the more money it needs to operate. One hand feeding the other. It's time to cut the hands off.

    Yes I agree that our government is corrupt but only because we have allowed them to be.
     
  5. bigdogtx

    bigdogtx Well-Known Member

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    Well yes I would,,,,they can be put in jail,,,,outside of Jefferson, not too many "elected" officials have been jailed lately,,,,if we stop BORROWING/SPENDING then we don't need to print more money,,,,it rots from the head down.....
     
  6. otnot

    otnot Active Member

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    So how are you going to put them in jail if you don't know what they have done?
     
  7. bocephus

    bocephus Member

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    If you want to see what is happening with the federal reserve take the time to watch this video, we have been handing out this dvd to many many people over the last several months. Please take the time to watch it.

    <object width="560" height="340"><param name="movie" value="http://www.youtube.com/v/eAaQNACwaLw&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/eAaQNACwaLw&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="560" height="340"></embed></object>
     
  8. otnot

    otnot Active Member

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    Until we begin to limit campaign spending the politicians that are elected will be the puppets of their masters no matter what party they serve.
     
  9. Dahaub

    Dahaub Active Member

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    In answer to the first statement. Yes finally we have a group of guys who are trying to do the right thing in going after the FED. Sic--em I say and for those of you who don't like it the boats back to England with the rest of the Tory's left a long time ago. Dan:)
     
  10. slipping into darkness

    slipping into darkness TS Member

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    So is this board of governors like are senate hearings were they interrogate everybody but nothing gets done? like bailing out all the banks, and where going to have accountability? you see how much accountability there is. Is there a site that shows how much has been payed out to are corrupt goverment for there health care, and for what service was preformed? How many times has Peloissss had face lifts! just kidding pelockeeee? I'm sorry I'll get it right some day. ----slid.
     
  11. otnot

    otnot Active Member

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    If the Federal Reserve is part of the government, then why do we have to sell them bonds for the money they print. Why are they charging us interest? We pay them billions a year in interest. Where as if we printed our own money there wouldn't be any interest and a national debt.

    Until we audit the Fed we will never really know who or what they have done or are currently doing. Why should we be kept in the dark? I want to know where 700 billion dollars went just last year. Why is the Fed so resistant to an audit?

    Walrus I will take you up on that offer. I would also like to say that the more I dig into this mess the more it repeats it's self.

    Jim
     
  12. Jeff P

    Jeff P Well-Known Member

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    "If we print our own money there wouldn't be any interest and a national debt."

    Awesome....I'd like to borrow $10 million, no, make that $50 million, interest free forever so that I can be rich too....

    Jim...really, you're so far off base here I can't even see you.....I'm not opposed to an audit of the fed (neccesarily) but we don't pay the Fed any interest directly - they just happen to own some of our bonds. Most of the interest the gov't pays goes to China, Japan and a host of other countries that still see us as a good investment. The Fed only owns bonds as a means to control the amount of money in circulation. Need to take a little out of circulation...they sell their bonds (forced sale) to banks and take the money and lock it up. Need to add a little...they buy bonds from the banks and the banks have more to circulate.

    The inflation of the late 70s and early 80s was (and always is) a case of too much money in circulation. That was mild...think Germany after WWI and Zimbabwe a couple years back. When it takes a wheelbarrow full of cash to buy a stamp to mail a letter....

    One of the main reason that oil and gold are so high right now is because its been priced in dollars. If we issue a bunch of those dollars, you'll see gold at $10,000 per ounce and oil at $1,000 per barrel. The ounce of gold or barrel of oil won't be any different then...its just that the person who has them will demand that quantity of dollars for them.
     
  13. Jeff P

    Jeff P Well-Known Member

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    Walrus, that's a great explanation....I was editing mine as you posted.

    You've done a better job....
     
  14. otnot

    otnot Active Member

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    OK Walrus and Jeff now you have me reading the orginal Federal Reserve act of 1913 and from what I have read so far it is set up as a corporation with a board of directors and stock. I don't like to paste articles but here is the orginal.

    [Public—No. 43—63d Congress.]
    [H. R. 7837.]
    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.
    Be it enacted by the. Senate and Hous* of Representatives of the United
    States of America in Congress assembled, That the short title of this
    Act shall bo the "Federal Reserve Act."
    Wherever the word "bank" is used in this Act, the word shall be
    held to include State bank, banking association, and trust company,
    except where national banks or Federal reserve banks are specincally
    referred to.
    The terms "national bank" and "national banking association"
    used in this Act shall be held to be synonymous and interchangeable.
    Tho term "member bank" shall be held to mean any national bank,
    State bank, or bank or trust company which has become a, member
    of one of the reserve banks created by this Act. The term "board"
    shall be held to mean Federal Reserve Board; the term "district"
    shall be held to mean Federal reserve district; the term "reserve
    bank" shall be held to mean Federal reserve bank.
    FEDERAL RESERVE DISTRICTS.
    Sec. 2. As soon as practicable, the Secretary of the Treasury, the
    Secretary of Agriculture and the Comptroller of the Currency, act
    ing as "The Reserve Bank Organization Committee," shall designate
    not less than eight nor more than twelve cities to bo known as Federal
    reserve cities, and shall divide the continental United States, ex
    cluding Alaska, into districts, each district to contain only one of such
    Federal reserve cities. The determination of said organization
    committee shall not be subject to review except by the Federal
    Reserve Board when organized: Provided, That the districts shall be
    apportioned with due regard to the convenience and customary course
    of ousiness and shall not necessarily be coterminous with any State
    or States. The districts thus created may be readjusted and new
    districts may from time to time be created by the Federal Reserve
    Board, not to exceed twelve in all. Such districts shall be known as
    Federal reserve districts and may be designated by number. A ma
    jority of the organization committee shall constitute a quorum with
    authority to act.
    Said organization committee shall be authorized to employ counsel
    and expert aid. to take testimony, to send for persons and papers, to
    administer oaths, and to make such investigation as may be deemed
    necessary by the said committee in determining the resei've districts
    and in designating the cities within such districts where such Federal
    reserve banks shall be severally located. The said committee shall
    supervise the organization in each of the cities designated of a
    Federal reserve bank, which shall include in its title tile name of the
    city in which it is situated, as "Federal Reserve Bank of Chicago."
    2 [Pun. 43.]
    Under regulations to be prescribed by the organization committee,
    every national banking association in the United States is hereby
    required, and every eligible bank in the United States and every
    trust company within the District of Columbia, is hereby authorized
    to signify in writing, within sixty days after the passage of this Act,
    its acceptance of the terms and provisions hereof. "When the organi
    zation committee shall have designated the cities in which Federal
    reserve banks are to be organized, and fixed the geographical limits
    of the Federal reserve districts, every national banking association
    within that district shall be required within thirty days after notice
    from the organization committee, to subscribe to the capital stock
    of such Federal reserve bank in a sum equal to six per centum
    of the paid-up capital stock and surplus of such bank, one-sixth of
    the subscription to be payable on call of the organization committee
    or of the Federal Reserve Board, one-sixth within three months and
    one-sixth within six months thereafter, and the remainder of the sub
    scription, or any part thereof, shall be subject to call when deemed
    necessary by the Federal Reserve Board, said payments to be in
    gold or gold certificates.
    The shareholders of everv Federal reserve bank shall be held indi
    vidually responsible, equally and ratably, and not one for another,
    for all contracts, debts, and engagements of such bank to the extent
    of the amount of their subscriptions to such stock at the par value
    thereof in addition to the amount subscribed, whether such subscrip
    tions have been paid up in whole or in part, under the provisions of
    this Act.
    Any national bank failing to signify its acceptance of the terms of
    this Act within the sixty days aforesaid, shall cease to act as a reserve
    agent, upon thirty days notice, to be given within the discretion of the
    said organization committee or of the Federal Reserve Board.
    Should any national banking association in the United States now
    organized fail within one year after the passage of this Act to become
    a member bank or fail to comply with any of the provisions of this
    Act applicable thereto, all of the rights, privileges, and franchises of
    such association granted to it under the national-bank Act, or under
    the provisions of this Act, shall be thereby forfeited. Any noncompUance
    with or violation of this Act shall, however, be determined
    and adjudged by any court of the United States of competent juris
    diction in a suit brought for that purpose in the district or territory
    in which such bank is located, under direction of the Federal Reserve
    Board, by the Comptroller of the Currency in his own name before
    the association shall be declared dissolved. In cases of such noncompliance
    or violation, other than the failure to become a member
    bank under the provisions of this Act, every director who partici
    pated in or assented to the same shall be held liable in his personal
    or individual capacity for all damages which said bank, its share
    holders, or any other person shall have sustained in consequence of
    such violation.
    Such dissolution shall not take away or impair any remedy against
    such corporation, its stockholders or officers, for any liability or
    penalty which shall have been previously incurred.
    Should the subscriptions by banks to the stock of said Federal
    reserve banks or any one or more of them be. in the judgment of the
    organization committee, insufficient to provide the amount of capital
    tPUB.43.) - 3
    required therefor, then and in that event the said organization com
    mittee may, under conditions and regulations to be prescribed by it,
    offer to public subscription at par such an amount of stock in said
    Federal reserve banks, or any one or more of them, as said committee
    shall determine, subject to the same conditions as to payment and
    stock liability as provided for member banks.
    No individual, copartnership, or corporation other than a member
    bank of its district shall be permitted to subscribe for or to hold at
    any time more than $25,000 par value of stock in any Federal reserve
    bank. Such stock shall be known as public stock and may be trans
    ferred on the books of the Federal reserve bank by the chairman of
    the board of directors of such bank.
    Should the total subscriptions by banks and the public to the stock
    of said Federal reserve banks, or any one or more of them, be, in the
    judgment of the organization committee, insufficient to provide the
    amount of capital required therefor, then and in that event the said
    organization committee shall allot to the United States such an
    amount of said stock as said committee shall determine. Said United
    States stock shall be paid for at par out of any money in the Treas
    ury not otherwise appropriated, and shall be neld by the Secretary
    of the Treasury and disposed of for the benefit of the United States
    in such manner, at such times, and at such price, not less than par,
    as the Secretary of the Treasury shall determine.
    Stock not held by member banks shall not be entitled to voting
    power.
    The Federal Reserve Board is hereby empowered to adopt and
    promulgate rules and regulations governing the transfers of said
    stock.
    No Federal reserve bank shall commence business with a sub
    scribed capital less than $4,000,000. The organization of reserve
    districts and Federal reserve cities shall not be construed as chang
    ing the present status of reserve cities and central reserve cities,
    except in so far as this Act changes the amount of reserves that
    may be carried with approved reserve agents located therein. The
    organization committee shall have power to appoint such assistants
    and incur such expenses in carrying out the provisions of this Act as
    it shall deem necessary, and such expenses shall be payable by the
    Treasurer of the United States upon voucher approved by the Secre
    tary of the Treasury, and the sum of $100,000, or so much thereof as
    may be necessary, is hereby appropriated, out of any moneys in the
    Treasury not otherwise appropriated, for the payment of ouch
    expenses.
    BRANCH OFFICES.
    Sec. 3. Each Federal reserve bank shall establish branch banks
    within the Federal reserve district in which it is located and may do
    so in the district of any Federal reserve bank which may bave been
    suspended. Such branches shall be operated by a board of directors
    under rules and regulations approved by the Federal Reserve Board.
    Directors of branch banks shall possess the same qualifications as
    directors of the Federal reserve banks. Four of said directors shall
    be selected by the reserve bank and three by the Federal Reserve
    Board, and they shall hold office during the pleasure, respectively)
    of the parent bank and the Federal Reserve Board. The reserve
    bank shall designate one of the directors as manager.
    4 [PUB.43J
    FEDEBAL BESERVE BANKS.
    Sec. 4. When the organization committee shall have established
    Federal reserve districts as provided in section two of this Act, a
    certificate shall be filed with the Comptroller of the Currency showing
    the geographical limits of such districts and the Federal reserve city
    designated in each of such districts. The Comptroller of the Cur
    rency shall thereupon cause to be forwarded to each national bank
    located in each district, and to such other banks declared to be eli
    gible by the organization committee which may apply therefor, an
    application blank in form to be approved by the organization com
    mittee, which blank shall contain a resolution to be adopted by the
    board of directors of each bank executing such application, author
    izing a subscription to the capital stock of the Federal reserve bank
    organizing in that district in accordance with the provisions of this
    Act.
    When the minimum amount of capital stock prescribed by this
    Act for the organization of any Federal reserve bank shall have been
    subscribed and allotted, the organization committee shall designate
    any five banks of those whose applications have been received, to
    execute a certificate of organization, and thereupon the banks so
    designated shall, under their seals, make an organization certificate
    which shall specifically state the name of such Federal reserve bank,
    the territorial extent of the district over which the operations of sucli
    Federal reserve bank are to be carried on, the city and State in which
    said bank is to be located, the amount of capital stock and the num
    ber 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 each, and the
    fact that the certificate is made to enable those banks executing
    same, and all banks which have subscribed or may thereafter sub
    scribe to the capital stock of such Federal reserve bank, to avail them
    selves of the advantages of this Act.
    The said organization certificate shall be acknowledged before a
    judge of some court of record or notary public; and shall be, together
    with the acknowledgment thereof, authenticated by the seal of such
    court, or notary, transmitted to the Comptroller of the Currency,
    who shall file, record and carefully preserve the same in his office.
    Upon the filing of such certificate with the Comptroller of the
    Currency as aforesaid, the said Federal reserve bank shall become a
    body corporate and as such, and in the name designated in such
    organization certificate, shall have power—
    First. To adopt and use a corporate seal.
    Second. To have succession for a period of twenty years from its
    organization unless it is sooner dissolved by an Act of Congress, or
    unless its franchise becomes forfeited by some violation of law.
    Third. To make contracts.
    Fourth. To sue and be sued, complain and defend, in any court of
    law or equity.
    Fifth. To appoint by its board of directors, such officers and em
    ployees as are not otherwise provided for in this Act, to define their
    duties, require bonds of them and fix the penalty thereof, and to dis
    miss at pleasure such officers or employees.
    [Pub. 43.] 5
    Sixth. To prescribe by its board of directors, by-laws not inconsist
    ent with law, regulating the manner in which its general business
    may be conducted, andthe privileges granted to it by law may be
    exercised and enjoyed.
    Seventh. To exercise by its board of directors, or duly authorized
    officers or agents, all powers specifically granted by the provisions of
    this Act and such incidental powers as shall be necessary to carry on
    the business of banking within the limitations prescribed by this Act.
    Eighth. Upon deposit with the Treasurer or the United States of
    any bonds of the United States in the manner provided by existing
    law relating to national banks, to receive from the Comptroller of the
    Currency circulating notes in blank, registered and countersigned as
    provided by law, equal in amount to the par value of the bonds so
    deposited, such notes to be issued under the same conditions and pro
    visions 01 law as relate to the issue of circulating notes of national
    banks secured by bonds of the United States bearing the circulating
    privilege, except that the issue of such notes shall not he limited to the
    capital stock of such Federal reserve bank.
    But no Federal reserve bank shall transact any business except such
    as is incidental and necessarily preliminary to its organization until it
    has been authorized by the Comptroller of the Currency to commence
    business under the provisions of this Act.
    Every Federal reserve bank shall be conducted under the super
    vision and control of a board of directors.
    The board of directors shall perform the duties usually appertaining
    to the office of directors of banking associations and all such duties as
    are prescribed by law.
    _ Said board shall administer the affairs of said bank f airly and impar
    tially and without discrimination in favor of or against any member
    bank or banks and shall, subject to the provisions of law and the orders
    of the Federal Reserve Board, extend to each member bank such dis
    counts, advancements and accommodations as may be safely and
    reasonably made with due regard for the claims and demands of
    other member banks.
    Such board of directors shall be selected as hereinafter specified and
    shall consist of nine members, holding office for three years, and
    divided into three classes, designated as classes A. B, and C.
    Class A shall consist of three members, who shall be chosen by and
    be representative of the stock-holding banks.
    Class B shall consist of three members, who at the time of their
    election shall be actively engaged in their district in commerce, agri
    culture or some other industrial pursuit.
    Class C shall consist of three members who shall be designated by
    the Federal Reserve Board. When the necessary subscriptions to the
    capital stock have been obtained for the organization of any Federal
    reserve bank, the Federal Reserve Board shall appoint the class C
    directors and shall designate one of such directors as chairman of the
    board to be selected. Pending the designation of such chairman, the
    organization committee shall exercise the powers and duties apper
    taining to the office of chairman in the organization of such Federal
    reserve bank.
    No Senator or Representative in Congress shall be a member of the
    Federal Reserve Board or an officer or a director of a Federal reserve
    bank.
    6 [POB. 43.]
    No director of class B shall be an officer, director, or employee of
    any bank.
    No director of class C shall be an officer, director, employee, or
    stockholder of any bank.
    Directors of class A and class B shall be chosen in the following
    manner:
    The chairman of the board of directors of the Federal reserve bank
    of the district in which the bank is situated or, pending the appoint
    ment of such chairman, the organization committee shall classify the
    member banks of the district into three general groups or divisions.
    Each group shall contain as nearly as may be one-third of the aggre
    gate number of the member banks of the district and shall consist, as
    nearly as may be, of banks of similar capitalization. The groups shall
    be designated by number by the chairman.
    At a regularly called meeting of the board of directors of each
    member bank in the district it shall elect by ballot a district reserve
    elector and shall certify his name to the chairman of the board of
    directors of the Federal reserve bank of the district. The chairman
    shall make lists of the district reserve electors thus named by banks
    in each of the aforesaid three groups and shall transmit one list to each
    elector in each group.
    Each member bank shall be permitted to nominate to the chair
    man one candidate for director of class A and one candidate for
    director of class B. The candidates so nominated shall be listed by
    the chairman, indicating by whom nominated, and a copy of said list
    shall, within fifteen days after its completion, be furnished by the
    chairman to each elector.
    Every elector shall, within fifteen days after the receipt of the said
    list, certify to the chairman his first, second, and other choices of a
    director or class A and class B, respectively, upon a preferential bal
    lot, on a form furnished by the chairman of the board of directors of
    the Federal reserve bank of the district. Each elector shall make a
    cross opposite the name of the first, second, and other choices for a
    director of class A and for a director of class B, but shall not vote
    more than one choice for any one candidate.
    Any candidate having a majority of all votes cast in the column
    of first choice shall be declared elected. If no candidate have a
    majority of all the votes in the first column, then there shall be added
    together the votes cast by the electors for such candidates in the
    second column and the votes cast for the several candidates in the first
    column. If any candidate then have a majority of the electors voting>
    by adding together the first and second choices, he shall be de
    clared elected. If no candidate have a majority of electors voting
    when the first and second choices shall have been added, then the
    votes cast in the third column for other choices shall be added to
    gether in like manner, and the candidate then having the highest
    number of votes shall be declared elected. An immediate report of
    election shall be declared.
    Class C directors shall be appointed by the Federal Reserve Board.
    They shall have been for at least two years residents of the district
    for which they are appointed, one of whom shall be designated by
    said board as chairman of the board of directors of the Federal
    reserve bank and as " Federal reserve agent." He shall be a person of
    tested banking experience; and in addition to his duties as chairman
    JPUB.«.) 7
    of the board of directors of the Federal reserve bank he shall be
    required to maintain under regulations to be established by the
    Federal Reserve Board a local office of said board on the
    premises of the Federal reserve bank. He shall make regular
    reports to the Federal Reserve Board, and shall act as its official
    representative for the performance of the functions conferred
    upon it by this Act. He shall receive an annual compensation
    to be fixed by the Federal Reserve Board and paid monthly by
    the Federal reserve bank to which he is designated. One of
    the directors of class C, who shall be a person of tested banking
    experience, shall bo appointed by the Federal Reserve Board us
    deputy chairman and deputy Federal reserve agent to exercise the
    powers of the chairman of the board and Federal reserve agent in
    case of absence or disability of his principal.
    Directors of Federal reserve banks shall receive, in addition to any
    compensation otherwise provided, a reasonable allowance for neces
    sary expenses in attending meetings of their respective boards, which
    amount shall be paid by the respective Federal reserve banks. Any
    compensation that may be provided by boards of directors of Federal
    reserve banks for directors, officers or employees shall be subject to
    the approval of the Federal Reserve Board.
    The Reserve Bank Organization Committee may, in organizing
    Federal reserve banks, callsuch meetings of bank directors in the sev
    eral districts as may be necessary to carry out the purposes of this
    Act, and may exercise the functions herein conferred upon the chair
    man of the board of directors of each Federal reserve Dank pending
    the complete organization of such bank.
    At the first meeting of the full board of directors of each Federal
    reserve bank, it shall X>e the duty of the directors of classes A, B and
    C, respectively, to designate one of the members of each class whose
    term of office shall expire in one year from the first of January
    nearest to date of such meeting, one whose term of office shall expire
    at the end of two years from said date, and one whose term of office
    shall expire at the end of three years from said date. Thereafter
    every director of a Federal reserve bank chosen as hereinbefore pro
    vided shall hold office for a term of three years. Vacancies that
    may occur in the several classes of directors of Federal reserve banks
    may be filled in the manner provided for the original selection of
    sucn directors, such appointees to hold office for the unexphvi terms
    of their predecessors.
    stock issues; increase and decrease of capital.
    Sec. 5. The capital stock of each Federal reserve bank shall be
    divided into shares of $100 each. The outstanding capital stock
    shall be increased from time to time as member banks increase their
    capital stock and surplus or as additional banks become members,
    and may bo decreased as member banks reduce their capital stock or
    surplus or cease to be members. Shares of the capital stock of
    Federal reserve banks owned by member banks shall not be trans
    ferred or hypothecated. When a member bank increases its capi
    tal stock or surplus, it shall thereupon subscribe for an additional
    amount of capital stock of the Federal reserve bank of its district
    equal to six per centum of the said increase, one-half of said sub8
    [Pub. 43.]
    scnption to be paid in the manner hereinbefore provided for original
    subscription, and one-half subject to call of the Federal Reserve
    Board A bank applying for stock in a Federal reserve bank at any
    time after the organization thereof must subscribe for an amount of
    the capital stock of the Federal reserve bank equal to six per centum
    of the paid-up capital stock and surplus of said applicant bank pay
    ing therefor its par value plus one-half of one per centum a month
    from the period of the last dividend. When the capital stock of any
    federal reserve bank shall have been increased either on account of
    the increase of capital stock of member banks or on account of the
    increase in the number of member banks, the board of directors shall
    cause to be executed a certificate to the Comptroller of the Currency
    showing the increase in capital stock, the amount paid in, and by
    whom paid. When a member bank reduces its capital stock it shall
    surrender a proportionate amount of its holdings in the capital of
    said Federal reserve bank, and when a member bank voluntarily
    liquidates it shall surrender all of its holdings of the capital
    stock of said Federal reserve bank and be released from its stock
    subscription not previously called. In either case the shares sur
    rendered shall be canceled and the member bank shall receive in
    payment therefor, under regulations to be prescribed by the Federal
    Reserve Board, a sum equal to its cash-paid subscriptions on the
    shares surrendered and one-half of one per centum a month from the
    period of the last dividend, not to exceed the book value thereof, less
    any liability of such member bank to the Federal reserve bank
    Seo. 6. If any member bank shall be declared insolvent and a
    receiver appointed therefor, the stock held by it in said Federal
    reserve bank shall be canceled, without impairment of its liability
    and all cash-paid subscriptions on said stock, with one-half of one per
    centum per month from the period of last dividend, not to exceed
    the book value thereof, shall be first applied to all debts of the insolvent
    member bank to the Federal reserve bank, and the balance if
    any, shall be paid to the receiver of the insolvent bank. Whenever
    the capital stock of a Federal reserve bank is reduced, either on
    account of a reduction in capital stock of any member bank or of the
    liquidation or insolvency of such bank, the board of directors shall
    cause to be executed a certificate to the Comptroller of the Currency
    showing such reduction of capital stock and the amount repaid to
    such bank.
    DIVISION OF EABNINGS.
    Seo. 7. After all necessary expenses of a Federal reserve bank
    have been paid or provided for, the stockholders shall be entitled to
    receive an annual dividend of six per centum on the paid-in capital
    stock, which dividend shall be cumulative. After the aforesaid
    dividend claims have been fully met, all the net earnings shall be
    paid to the United States as a franchise tax, except that one-half of
    such net earnings shall be paid into a surplus fund until it shall
    amount to forty per centum of the paid-in capital stock of such
    bank.
    The net earnings derived by the United States from Federal reserve
    banks shall, in the discretion of the Secretary, be used to supplement
    the gold reserve held against outstanding United States notes, or shall
    be applied to the reduction of the outstanding bonded indebtedness of
    ;Ji
    [Pub. 43.)
    the United States under regulations to be prescribed by the Secre
    tary of the Treasury. Should a Federal reserve bank be dissolved
    or go into liquidation, any surplus remaining, after the payment of all
    debts, dividend requirements as hereinbefore provided, and the par
    7? •?ie*T 8tocT AS. be.P^d t0 and become the property of the
    Umted States and shall be similarly applied. v
    Federal reserve banks, including the capital stock and surplus
    therein and the income derived therefrom shall be exempt from
    federal btate, and local taxation, except taxes upon real estate.
    bEC. 8. Section fifty-one hundred and fifty-four, United States
    Revised Statutes, is hereby amended to read as follows:
    n^Z 5. mcorporated by special law of any State or of the
    Umted btates or organized under the general laws of any State or of
    the United States and having an unimpaired capital sufficient to
    entitle it to become a national banking association under the pro
    visions of the existing laws may. by the vote of the shareholders
    owning not less than fifty-one per centum of the capital stock of
    such bank or banking association, with the approval of the Comp
    troller of the Currency be converted into a national banking associ
    ation, with any name approved by the Comptroller of the Currency
    Frowled, however, That said conversion shall not be in contravention
    of the State law. In such case the articles of association and organi
    zation certificate may be executed by a majority of the directors of
    the bank or banking institution, and the certificate shall declare that
    the owners of fifty-one per centum of the capital stock have author
    ized the directors to make such certificate and to change or convert
    the bank or banking institution into a national association. A ma
    jority of the directors, after executing the articles of association and
    the organization certificate, shall have power to execute all other
    papers and to do whatever may be required to make its organization
    perfect and complete as a national association. The shares of any
    such bank may continue to be for the same amount each as they
    were before the conversion, and the directors may continue to be
    directors of the association until others are elected or appointed in
    accordance with the provisions of the statutes of the United States
    When the Comptroller has given to such bank or banking association
    a certificate that the provisions of this Act have been complied with
    such bank or bankine association, and all its stockholders, officers!
    and employees, shall have the same powers and privileges, and shall
    be subject to the same duties, liabilities, and regulations, in all re
    spects, as shall have been prescribed by the Federal Reserve Act and
    by the national banking Act for associations originally organized as
    national banking associations.
    STATE BANKS AS MEMBERS.
    Sec. 9. Any bank incorporated by special law of any State or
    organized under the general laws of any State or of the United
    States, may make application to the reserve bank organization
    committee, pending organization, and thereafter to the Federal
    Reserve Board for the right to subscribe to the stock of the Federal
    reserve bank organized or to be organized within the Federal reserve
    district where the. applicant is located. The organization committee
    or the Federal Reserve Board, under such rules and regulations aa
    Pub. No. 43 2
    it may prescribe, subject to the provisions of this section, maj
    permit the applying bank to become a stockholder m the Federal
    Reserve bank of theT district in which the applying bank is located
    Whenever the organization committee or the federal Reserve Board
    shall permit the applying bank to become a stockholder in the Federal
    reser?bTnkof tfie SstTict, stock shall be issued and paid for under
    Se 7ules and regulations in this Act provided for national banks
    which become stockholders in Federal reserve banks.
    The organization committee or the Federal Reserve Board shall
    establish ly-laws for the general government of its conduct in acting
    upon applications made by the State banks, and banking associations
    and trust companies for stock ownership in Federal reserve banks.
    Such by-laws shall require applying banks not organized under
    FederaFlaw^to comply1 with the reserve and capitaF requn-ements
    and to submit to the examination and regulations prescribed by the
    organisation committee or by the Federal Reserve Board. No ap-
    Sg bank shall be admitted to membership in a Federal reserve
    bank unless it possesses a paid-up unimpaired capital sufficient to
    entitle it to become a national banking association in the place where
    it is situated, under the provisions of the national banking Act.
    Any bank becoming a member of a Federal reserve banfc under the
    provisions of this section shall in addition, to the regulations and
    KXtions hereinbefore proved, be required to conform, to he
    P?ovkions of law imposed on the national banks respecting the
    Cation of liability which may be incurred by any person, firm, or
    Soration to such banks, the prohibition against making purchase
    of or loans on stock of such banks, and the withdrawal or impairment
    of capital or the payment of unearned dividends, and to such *uleo
    and LguUions a? the Federal Reserve Board may, in pursuance
    thSuch faTkTand the officers, agents, and employees thereof, shall
    also be subiect to the provisions of and to the penalties prescribed
    by secW fifty-one hundred and ninety-eight fifty-two hundred,
    fifty-two hundred and one, and fifty-two hundred and eight, and
    fifty-two hundred and nine of the Revised Statutes. The member
    hanks shall abo be required to make reports of the conditions and
    ofthe payments ofdividends to the comptroller, as provided in
    sect^nsPXTwo hundred and eleven ancf fifty-two hundred and
    "weW the Revised Statutes and shall bo subject to the penalties
    prescribed by section fifty-two hundred and thirteen for the failure
    to make such reP.or*^dl t0 the Federal Reserve Board that a
    vy - h the provisions of this section
    ve Board, it shall be within the
    jg, to require such bank to sur-
    3 bank; upon such surrender the
    -pt
    tPOTB.43.]
    cancel and retire its stock and make payment therefor in the manner
    herein provided. The Federal Reserve Board may restore member
    ship upon due proof of compliance with the conditions imposed bv
    this section. v y
    FEDERAL RESERVE BOARD.
    Sec 10. A Federal Reserve Board is hereby created which shall
    consist of seven members, including the Secretary of the Treasury
    and the Comptroller of the Currency, who shall be members ex
    officio, and five members appointed by the President of the United
    btates, by and with the advice and consent of the Senate. In
    selecting the five appointive members of the Federal Reserve
    Board not more than one of whom shall be selected from any
    one Federal reserve district, the President shall have due regard to
    a fan- representation of the different commercial, industrial and
    geographical divisions of the country. The five members of the
    federal Reserve Board appointed by the President and confirmed
    as aforesaid shall devote their entire time to the business of the
    Federal Reserve Board and shall each receive an annual salary of
    SI2,000, payable monthly together with actual necessary traveling
    expenses, and the Comptroller of the Currency, as ex officio member
    of the Federal Reserve Board, shall, in addition to the salary now
    paid nun as Comptroller of the Currency, receive the sum of $7 000
    annually for his services as a member of said Board.
    The members of said board, the Secretary of the Treasury the
    Assistant Secretaries of the Treasury, and the Comptroller of the Cur
    rency shall be ineligible during the time they are in office and for two
    years thereafter to hold any office, position, or employment in any
    member bank. Of the five members thus appointed by the President
    at least two shall be persons experienced in banking or finance. One
    shall be designated by the President to serve for two, one for four one
    for six, one for eight, and one for ten years, and thereafter 'each
    member so appointed shall serve for a term of ten years unless
    sooner removed for cause by the President. Of the five persons thus
    appointed, one shall be designated by the President as governor and
    one as vice governor of the Federal Reserve Board. The governor of
    the Federal Reserve Board, subject to its supervision, shall be the
    active executive officer. The Secretary of the Treasury may assign
    offices in the Department of the Treasury for the use of the Federal
    Reserve Board. Each member of the Federal Reserve Board shall
    within fifteen days after notice of appointment make and subscribe
    to the oath of office.
    The Federal Reserve Board shall have power to levy semiannually
    upon the Federal reserve banks, in proportion to thdir capital stock
    and surplus, an assessment sufficient to pay its estimated expenses and
    the salaries of its members and employees for the half year succeed
    ing the hvying of such assessment, together with anv deficit carried
    forward from the preceding half year.
    The first meeting of the Federal Reserve Board shall be held in
    Washington, District of Columbia, as soon as may be after the passage
    of this Act, at a date to be fixed by the Reserve Bank Organization
    Committee. The Secretary of the Treasury shall be ex officio chair
    man of the Federal Reserve Board. No member of the Federal
    Reserve Board shall be an officer or director of any bank, banking
    institution trust company, or Federal reserve bank nor told stock
    than by expiraSon of term, among the five members
    ssnsss^a^g
    shall hold office for the unexpired term of the membei
    Sl^dMf«SL to fill all vacancies that may hapthe
    Federal Reserve Board during the recess of the Senate, by
    ^^«Xh shall expire thirty days after the next
    feS333£SSS£8§s
    tiie United States shall be amended so as to read as follows: There
    shaU be in the Department of the Treasury a bureau charged with
    KxecSionof alFlaws passed by ^^^8^t^^
    examine
    and emat
    its discretion the aocounts, books and aflEairs
    ^ d f ^%'JZ£gi ^X
    i^S#|§l^^sl
    terest to be fixeSby the Federal B^^J^Stiurty days, and from
    (c) To suspend for a period not «*Medmg tmrtj j , eeedin
    time to time to renew such suspension for penuus
    IPUD.43.) 13
    fifteen days any reserve requirement specified in this Act: Provided,
    Inat it shall establish a graduated tax upon the amounts by which
    the reserve requirements of this Act may be permitted to fall below
    the level hereinafter specified: And provided further, That when the
    gold reserve held against Federal reserve notes falls below forty per
    centum, the Federal Reserve Board shall establish a graduated tax of
    not more than one per centum per annum upon such deficiency until
    the reserves fall to thirty-two and one-half per centum, and when
    said reserve falls below thirty-two and one-half per centum, a tax at
    the rate increasingly of not less than one and one-half per centum
    per annum upon each two and one-half per centum or fraction thereof
    that such reserve falls below thirty-two and one-half per centum,
    rhe tax shall be paid by the reserve bank, but the reserve bank shall
    add an amount equal to said tax to the rates of interest and discount
    nxed by the Federal Reserve Board.
    (d) To supervise and regulate through the bureau under the charge
    ol the Comptroller of the Currency the issue and retirement of Federal
    reserve notes, and to prescribe rules and regulations under which such
    notes may be delivered by the Comptroller to the Federal reserve
    agents applying therefor.
    (e) To add to the number of cities classified as reserve and central
    reserve cities under existing law in which national banking associa
    tions are subject to the reserve requirements set forth in section
    twenty of this Act; or to reclassify existing reserve and central
    reserve cities or to terminate their designation as such.
    (f) To suspend or remove any officer or director of any Federal
    reserve bank, the cause of such removal to be forthwith communi
    cated in writing by the Federal Reserve Board to the removed officer
    or director and to said bank.
    (g) To require the writing off of doubtful or worthless assets upon
    the books and balance sheets of Federal reserve banks.
    (h) To suspend, for the violation of any of the provisions of this
    Act, the operations of any Federal reserve bank, to take possession
    thereof, administer the same during the period of suspension, and,
    when deemed advisable, to liquidate or reorganize such bank.
    (i) To require bonds of Federal reserve agents, to make regulations
    for the safeguarding of all collateral, bonds, Federal reserve notes,
    money or property of any kind deposited in the hands of such
    agents, and said board shall perform the duties, functions, or services
    specified in this Act, and make all rules and regulations necessary to
    enable said board effectively to perform the same.
    (j) To exercise general supervision over said Federal reserve banks.
    (k) To grant by special permit to national banks applying therefor,
    when not in contravention of State or local law, the right to act as
    trustee, executor, administrator, or registrar of stocks and bonds
    under such rules and regulations as the said board may prescribe.
    (1) To employ such attorneys, experts, assistants, clerks, or other
    employees as may be deemed necessary to conduct the business of
    the board. All salaries and fees shall be fixed in advance by said
    board and shall be paid in the same manner as the salaries of the
    members of said board. All such attorneys, experts, assistants,
    clerics, and othor employees shall bo appointed without regard to the
    provisions of the Act of January sixteenth, eighteen hundred and
    eighty-three (volume twenty-two, United States Statutes at Large,
    14 [Pun. 43.]
    page four hundred and three), and amendments thereto, or any rule
    or regulation made in pursuance thereof: Provided, That nothing
    herein shall prevent the President from placing said employees in the
    classified service.
    FEDERAL, ADVISORY COUNCIL.
    Sec. 12. There is hereby created a Federal Advisory Council,
    which shall consist of as many members as there are Federal reserve
    districts. Each Federal reserve bank by its board of directors shall
    annually select from its own Federal reserve district one member of
    said council, who shall receive such compensation and allowances as
    may be fixed by his board of directors subject to the approval of the
    Federal Reserve Board. Tho meetings of said advisory council shall
    be held at Washington, District of Columbia, at least four times each
    year, and oftener if called by the Federal Reserve Board. The
    council may in addition to the meetings above provided for hold such
    other meetings in Washington, District of Columbia, or elsewhere, as
    it may deem necessary, may select its own officers and adopt its own
    methods of procedure, and a majority of its members shall constitute
    a quorum for the transaction ot business. Vacancies in the council
    shall be filled by the respective reserve banks, and members selected
    to fill vacancies, shall serve for the unexpifed term.
    The Federal Advisory Council shall have power, by itself or through
    its officers, (1) to confer directly with the Federal Reserve Board on
    general business conditions; (2) to make oral or written representa
    tions concerning matters within the jurisdiction of said board; (3) to
    call for information and to make recommendations in regard to
    discount rates, rediscount business, note issues, reserve conditions in
    the various districts, the purchase and sale of gold or securities by
    reserve banks, open-market operations by said banks, and the general
    affairs of the reserve banking system.
    POWERS OP FEDERAL RESERVE BANKS.
    Seo. 13. Any Federal reserve bank may receive from any of its
    member banks, and from tho United States, deposits of current funds
    in lawful money, national-bank notes, Federal reserve notes, or
    checks and drafts upon solvent member banks, payable upon presen
    tation; or, solely for exchange purposes, may receive from other
    Federal reserve banks deposits of current funds in lawful money,
    national-bank notes, or checks and drafts upon solvent member or
    other Federal reserve banks, payable upon presentation.
    Upon the indorsement of any of its member banks, with a waiver of
    demand, notice and protest by such bank, any Federal reserve bank
    may discount notes, drafts, and bills of exchange arising out of actual
    commercial transactions; that is, notes, drafts, and bills of exchange
    issued or drawn for agricultural, industrial, or commercial purposes,
    or the proceeds of which have been used, or are to be used, tor such
    purposes, the Federal Reserve Board to have the.right to determine
    or define the character of the paper thus eligible for discount, within
    tho meaning of this Ast. Nothing in this Act contained shall be
    construed to prohibit such notes, drafts, and bills of exchange, secured
    by staple agricultural products, or other goods, wares, or merchandise
    [Pub. 43.) 15
    from being eligible for such discount; but such definition shall not
    include notes, drafts, or bills covering merely investments or issued
    or drawn for the purpose of carrying or trading in stocks, bonds or
    other investment securities, except bonds and notes of the Govern
    ment of the United States. Notes, drafts, and bills admitted to dis
    count under the terms of this paragraph must have a maturity at
    the time of discount of not more than ninety days: Provided, That
    notes, drafts, and bills drawn or issued for agricultural purposes or
    based on live stock and having a maturity not exceeding six months
    may be discounted in an amount to be limited to a percentage of tho
    capital of the Federal reserve bank, to be ascertained and fixed by the
    Federal Reserve Board.
    Any Federal reserve bank may discount acceptances which are
    based on the importation or exportation of goods and which have
    a maturity at time of discount of not more than three months, and
    indorsed by at least one member bank. The amount of acceptances
    so discounted shall at no time exceed ono-half the paid-up capital stock
    and surplus of the bank for which the rediscounts are made.
    The aggregate of such notes and bills bearing the signature or in
    dorsement of any one person, company, firm, or corporation rediscounted
    for any one bank shall at no time exceed ten per centum of the
    unimpaired capital and surplus of said bank; but this restriction shall
    not apply to the discount of bills of exchange drawn in good faith
    against actually existing values.
    Any member bank may accept drafts or bills of exchange drawn
    upon it and growing out of transactions involving the importation
    or exportation of goods having not more than six months sight to
    run; but no bank shall accept Buch bills to an amount equal at any
    time in the aggregate to more than one-half its paid-up capital stock
    and surplus.
    Section fifty-two hundred and two of the Revised Statutes of the
    United States is hereby amended so as to read as follows: No national
    banking association shall at any time be indebted, or in any wav
    liable, to an amount exceeding the amount of its capital stock at such
    time actually paid in and remaining undiminished by losses or other
    wise, except on account of demands of the nature following:
    First. Notes of circulation.
    Second. Moneys deposited with or collected by the association.
    Third. Bills of exchange or drafts drawn against money actually
    on deposit to the credit of the association, or due thereto.
    Fourth. Liabilities to the stockholders of the association for
    dividends and reserve profits.
    Fifth. Liabilities incurred under the provisions of the Federal
    Reserve Act.
    The rediscount by any Federal reserve bank of any bills receivable
    and of domestic and foreign bills of exchange, and of acceptances
    authorized by this Act, shall be subject to such restrictions, limita
    tions, and regulations as may be imposed by the Federal Reserve
    Board.
    OPEN-MAEKET OPERATIONS.
    Sec. 14. Any Federal reserve bank may, under rules and regula
    tions prescribed by the Federal Reserve Board, purchase and sell in
    the open market, at home or abroad, either from or to domestic or
    . 43.1
    foreign banks, firms, corporations, or individuals, cable transfers and
    CriFXafreS^e bank shall have power:
    faT¥o deaHn gold coin and bullion at tome or abroad to make
    loans thereon SccWe Federal reserve notes for gold, gold com,.or
    ^certificates aX! contract for loans of go d coin orjullion jnvfnTtSfor
    when necessary, acceptable security,, including the hy-
    Shtti " oTlJnited StatS'bonds" or other securities whicn Federal
    an/" tme^broad, bonds and notes of*,
    and bills notes, revenue bonds, and warrants with a
    frommember banks and to sell, with or ^thout its
    of exchange arising out of commercial transactions,
    ^SSSti^hSi time to time, subject to review and determi
    nation of Se Federal Reserve Board, rates of discount to be charged
    by the Federal reserve bank for each class of paper which shall be
    filed with a view of accommodating commerce and business,
    (e) To establish accounts with other Federal reserve banks for
    exchange purposes and, with the consent of the Federal Eeserve
    Board to S and maintain banking accounts in foreign countries,
    responsible parties
    GOVERNMENT DEPOSITS.
    15 The moneys held in the general fund of the Treasury,
    depositories.
    That notfing in tlus Act shall be construed to deny
    Secretary of tTie Treasury to use member banks as
    JPUB.43.) 17
    NOTE ISSUES.
    Sec. 16. Federal reserve notes, to be issued at the discretion, of the
    Federal Reserve Board for the purpose of making advances to Federal
    reserve banks through the Federal reserve agents as hereinafter set
    forth and for no other purpose, are hereby authorized. The said notes
    shall be obligations of the United States and shall be receivable by all
    national and member banks and Federal reserve banks and for all
    taxes, customs, and other public dues. They shall be redeemed in
    gold on demand at the Treasury Department of the United States, in
    the city of Washington, District of Columbia, or in gold or lawful
    money at any Federal reserve bank.
    Any Federal reserve bank may make application to the local
    Federal reserve agent for such amount of the Federal reserve notes
    hereinbefore provided for as it may require. Such application shall
    be accompanied with a tender to the local Federal reserve agent of
    collateral in amount equal to the sum of the Federal reserve notes thus
    applied for and issued pursuant to such application. The collateral
    security thus offered shall be notes and bills, accepted for rediscount
    under the provisions of section thirteen of this Act, and the Federal
    reserve agent shall each day notify the Federal Reserve Board of all
    issues and withdrawals of Federal reserve notes to and by the Federal
    reserve bank to which he is accredited. The said Federal Reserve
    Board may at any time call upon a Federal reserve bank for addi
    tional security to protect the Federal reserve notes issued to it.
    Every Federal reserve bank shall maintain reserves in gold or
    lawful money of not less than thirty-five per centum against its
    deposits and reserves in gold of not less than forty per centum
    against its Federal reserve notes in actual circulation, and not
    onset by gold or lawful money deposited with the Federal re
    serve agent. Notes so paid out shall bear upon their faces a
    distinctive letter and serial number, which shall be assigned
    by the Federal Reserve Board to each Federal reserve bank. When
    ever Federal reserve notes issued through one Federal reserve bank
    shall be received by another Federal reserve bank they shall be
    promptly returned for credit or redemption to the Federal reserve
    bank through which they were originally issued. No Federal reserve
    bank shall pay out notes issued through another under penalty of a
    tax of ten per centum upon the face value of notes so p^aid out. Notes
    presented ior redemption at the Treasury of the United States shall
    be paid out of the redemption fund and returned to the Federal
    reserve banks through which they were originally issued, and there
    upon such Federal reserve bank snail, upon demand of tno Secretary
    of the Treasury, reimburse such redemption fund in lawful money
    or, if such Federal reserve notes have been redeemed by the Treasurer
    in gold or gold certificates, then such funds shall be reimbursed to
    the extent deemed necessary by the Secretary of the Treasury in gold
    or gold certificates, and such Federal reserve bank shall, so long as
    any of its Federal reserve notes remain outstanding, maintain with
    the Treasurer in gold an amount sufficient in the judgment of the
    Secretary to provide for all redemptions to be made by the Treasurer.
    Federal reserve notes received by the Treasury, otherwise than for
    redemption, may be exchanged for gold out of the redemption fund
    18 [Pub. «-J
    hereinafter provided and returned to the reserve bank through which
    thev were originally issued, or they may be returned to such bank
    for the credit of the United States. Federal reserve notes unfit for
    circulation shall be returned by the Federal reserve agents to the
    Comptroller of the Currency for cancellation and destruction.
    The Federal Reserve Board shall require each Federal reserve bank
    to maintain on deposit in the Treasury of the United States a sum
    in gold sufficient m the judgment of the Secretary of the Treasury
    for the redemption of the Federal reserve notes issued to such
    bank, but in no event less than five per centum; but such de
    posit of gold shall be counted and included as part of the forty per
    centum reserve hereinbefore required. The board shall have the
    right acting through the Federal reserve agent, to grant inwnole
    or in part or to reject entirely the application of any Federal
    reserve bank for Federal reserve notes; but to the extent that such
    application may be granted the Federal Reserve Board shall, through
    its local Federal reserve agent, supply Federal reserve notes to the
    bank so applying, and such bank shall be charged with the amount
    of such notes and shall pay such rate of interest on said amount as
    may be established by the Federal Reserve Board, and the amount oi
    such Federal reserve notes so issued to any such bank shall, upon
    delivery together with such notes of such Federal reserve bank as
    may be issued under section eighteen of this Act upon security of
    United States two per centum Government bonds, become a nrst and
    paramount lien on all the assets of such bank. ,-,.,.. e
    Any Federal reserve bank may at any time reduce its liability lor
    outstanding Federal reserve notes by depositing, with the Federal
    reserve agent, its Federal reserve notes, gold, gold certificates, or
    lawful money of the United States. Federal reserve notes so depos
    ited shall not be reissued, except upon compliance with the conditions
    of an original issue. , in ,, , ,, , , ,.a .
    The Federal reserve agent shall hold such gold, gold certificates, or
    lawful money available exclusively for exchange for the outstanding
    Federal reserve notes when offered by the reserve bank of which he is
    a director. Upon the request of th"e Secretary of the Treasury the
    Federal Reserve Board shall require the Federal reserve agent to
    transmit so much of said gold to the Treasury of the United States as
    may be required for the exclusive purpose of the redemption of such
    notes. . n x i
    Any Federal reserve bank may at its discretion withdraw collateral
    deposited with the local Federal reserve agent for the protection of
    its Federal reserve notes deposited with it and shall at the same time
    substitute therefor other like collateral of equal amount with the
    approval of the Federal reserve agent under regulations to be pre
    scribed by the Federal Reserve Board.
    In order to furnish suitable notes for circulation as Federal reserve
    notes, the Comptroller of the Currency shall, under the direction of
    the Secretary of the Treasury, cause plates and dies to be engraved
    in the best manner to guard against counterfeits and fraudulent
    alterations, and shall have printed therefrom and numbered such
    quantities of such notes of the denominations of S5, 3>iu, bfi)}
    $50, $100, as may be required to supply the Federal reserve banks
    Suck notes shall be in form and tenor as directed by the Secretary of
    the Treasury under the provisions of this Act and shall bear the
    {Pub. 43.] 19
    distinctive numbers of the severtil Federal reserve banks through
    which they are issued.
    When such notes have been prepared, they shall be deposited in
    the Treasury, or in the subtreasury or mint of the United States
    nearest the place of business of each Federal reserve bank and shall
    be held for the use of such bank subject to the order of the Comp
    troller of the Currency for their delivery, as provided by this Act.
    The plates and dies to be procured by the Comptroller of the Cur
    rency for the printing of such circulating notes shall remain under
    his control and direction, and the expenses necessarily incurred in
    executing the laws relating to the procuring of such notes, and all
    other expenses incidental to their issue and retirement, shall be paid
    by the Federal reserve banks, and the Federal Reserve Board shall
    include in its ?.stiinate of expenses levied against the Federal reserve
    banks a sufficient amount to cover the expenses herein provided for.
    The examination of plates, dies, bed pieces, and so forth, and
    regulations relating to such examination of plates, dies, and so forth,
    of national-bank notes provided for in section fifty-one hundred and
    seventy-four Revised Statutes, is hereby extended to include notes
    herein provided for.
    Any appropriation heretofore made out of the general funds of
    the Treasury for engraving plates and dies, the purchase of distinc
    tive paper, or to cover any other expense in connection with the
    printing of national-bank notes or notes provided for by the Act of
    May thirtieth, nineteen hundred and eight, and any distinctive paper
    that may be on hand at the time of the passage of this Act may be
    used in the discretion of the Secretary for the purposes of this Act,
    and should the appropriations heretofore made be insufficient to
    meet the requirements of this Act in addition to circulating notes
    provided for by existing law, the Secretary is hereby authorized to
    use so much of any funds in the Treasury not otherwise appropriated
    for the purpose of furnishing the notes aforesaid: Provided, however,
    That nothing in this section contained shall be construed as exempt
    ing national banks or Federal reserve banks from their liability tj
    reunbruse the United States for any expenses incurred in p.- ;. nig
    and issuing circulating notes.
    Every Federal reserve bank shall receive on deposit at par from
    member banks or from Federal reserve banks checks and drafts drawn
    upon any of its depositors, and when remitted by a Federal reserve
    bank, checks and drafts drawn by any depositor in any other Federal
    reserve bank or member bank upon funds to the credit of said deposi
    tor in said reserve bank or member bank. Nothing herein contained
    shall be construed as prohibiting a member bank from charging its
    actual expense incurred in collecting and remitting funds, or for
    exchange sold to its patrons. The Federal Reserve Board shall, by
    rule fix the charges to be collected by the member banks from its
    patrons whose checks are cleared through the Federal reserve bank
    and the charge which may be imposed for the service of clearing or
    collection rendered by the Federal reserve bank.
    The Federal Reserve Board shall make and promulgate from time
    to time regulations governing the transfer of funds and charges
    therefor among Federal reserve banks and their branches, and may
    at its discretion exercise the functions of a clearing house for such
    Federal reserve banks, or may designate a Federal reserve bank to
    20 iPuB- «J
    exercise such functions, and may also require each such bank to
    exercise the functions of a clearing house for its member banks.
    Sec. 17. So much of the provisions of section fifty-one hundred
    and fifty-nine of the Revised Statutes of the United States, and
    section four of the Act of June twentieth, eighteen hundred and
    seventy-four, and section eight of the Act of July twelfth, eighteen
    hundred and eighty-two, and of any other provisions of existing
    statutes as require that before any national banking associations
    shall be authorized to commence banking business it shall transfer
    and deliver to the Treasurer of the United States a stated amount of
    United States registered bonds is hereby repealed.
    REFUNDING BONDS.
    Seo. 18. After two years from the passage of this Act, and at any
    time during a period of twenty years thereafter, any member bank
    desiring to retire the whole or any part of its circulating notes, may
    file with the Treasurer of the United States an application to sell for
    its account, at par and accrued interest, United States bonds secur
    ing circulation to be retired. . .
    The Treasurer shall, at the end of each quarterly period, furnish
    the Federal Reserve Board with a list of such applications, and the
    Federal Reserve Board may, in its discretion, require the Federal
    reserve banks to purchase such bonds from the banks whose appli
    cations have been filed with the Treasurer at least ten days before
    the end of any quarterly period at which the Federal Reserve Board
    mav direct the purchase to be made: Provided, That Federal reserve
    banks shall not be permitted to purchase an amount to exceed
    825,000,000 of such bonds in any one year, and which amount shall
    include bonds acquired under section four of this Act by the Federal
    rCSp7olided further, That the Federal Reserve Board shall allot to
    each Federal reserve bank such proportion of such bonds as the
    capital and surplus of such bank shall bear to the aggregate capital
    and surplus of all the Federal reserve banks.
    Upon notice from the Treasurer of the amount of bonds so sold for
    its account, each member bank shall duly assign and transfer, in
    writing such bonds to the Federal reserve bank purchasing the
    same and such Federal reserve bank shall, thereupon, deposit lawful
    money with the Treasurer of the United States for the purchase price
    of such bonds, and the Treasurer shall pay to the member bank selling
    such bonds any balance due after deducting a sufficient sum to
    redeem its outstanding notes secured by such bonds, which notes
    shall be canceled and permanently retired when redeemed.
    The Federal reserve banks purchasing such bonds shall be per
    mitted to take out an amount of circulating notes equal to the par
    VaUpo°n the delrosit with the Treasurer of the United States of bonds
    {POT. 43.1 21
    shall be the obligations of the Federal reserve bank procuring the
    Bame, and shall be in form prescribed by the Secretary of the Treas
    ury, and to the same tenor and effect as national-bank notes now
    provided by law. They shall be issued and redeemed under the
    same terms and conditions as national-bank notes except that they
    shall not be limited to the amount of the capital stock of the Federal
    reserve bank issuing them.
    Upon application of any Federal reserve bank, approved by the
    Federal Reserve Board, the Secretary of tho Treasury may issue, in
    exchange for United States two per centum gold bonds bearing the cir
    culation privilege, but against which no circulation is outstanding,
    one-year gold notes of the United States without the circulation
    privilege, to an amount not to exceed one-half of the two per centum
    bonds so tendered for exchange, and thirty-year three per centum
    gold bonds without the circulation privilege for the remainder of the
    two per centum bonds so tendered: Provided, That at the time of such
    exchange the Federal reserve bank obtaining such one-year gold
    notes shall enter into an obligation with the Secretary of the Treas
    ury binding itself to purchase from the United States for gold at the
    maturity of such one-year notes, an amount equal to those delivered
    in exchange for such bonds, if so requested by the Secretary, and at
    each maturity of one-year notes so purchased by such Federal reserve
    bank, to purchase from the United States such an amount of one-year
    notes as the Secretary may tender to such bank, not to exceed the
    amount issued to such bank in the first instance, in exchange for the
    two per centum United States gold bonds; said obligation to pur
    chase at maturity such notes shall continue in force for a period not
    to exceed thirty years.
    For the purpose of making the exchange herein provided for, the
    Secretary of the Treasury is authorized to issue at par Treasury notes
    in coupon or registered form as he may prescribe in denominations
    of one hundred dollars, or any multiple thereof, bearing interest at
    the rate of three per centum per annum, payable quarterly, such
    Treasury notes to be payable not more than one year from the date of
    their issue in gold coin of the present standard value, and to be exempt
    as to principal and interest from the payment of all taxes and duties
    of the United States except as provided by this Act, as well as from
    taxes in any form by or under State, municipal, or local authorities.
    And for the same purpose, the Secretary is authorized and empowered
    to issue United States gold bonds at par, bearing three per centum
    interest payable thirty years from date of issue, such bonds to be of
    the same general tenor and effect and to be issued under the same
    general terms and conditions as the United States three per centum
    bonds without the circulation privilege now issued and outstanding.
    Upon application of any Federal reserve bank, approved by the
    Federal Reserve Board, the Secretary may issue at par such three
    per centum bonds in exchange for the one-year gold notes herein
    provided for.
    BANK RESERVES.
    Seo. 19. Demand deposits within the meaning of this Act shall
    compri
     
  15. halfmile

    halfmile Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    15,643
    Location:
    Green Bay Wisconsin
    Use of the word "Federal" as in "Federal Reaserve Corporation" is intentional and Misleading.

    The fox has been in charge of the hen house since Woodrow Wilson(worst President until Obama) gave him the keys.

    The unfortunate truth is that money people will do a better job than politicians.

    Another truth is that deficit spending will kill us eventually.

    "Gee, Trudy, We are in trouble here, I think we had better get another credit card so we can keep buying stuff!"

    It's enough to make me puke.

    HM
     
  16. otnot

    otnot Active Member

    Joined:
    Jan 29, 1998
    Messages:
    1,426
    Walrus your obviously a gentleman and a scholar! Now JeffP I know your a scholar since your a CPA but the other I don't know. Just kidding Jeff.

    I maybe labeled a conspiratorist for my beliefs but it also my right as an American citizen to question the government and I will continue to do so as I hope all Americans will. I will leave you with a quote from Thomas Jefferson:

    I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

    Thomas Jefferson, (Attributed)
    3rd president of US (1743 - 1826)
     
  17. Hap MecTweaks

    Hap MecTweaks Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    9,226
    Location:
    Mesquite, Nevada
    And here's a Very Interesting Quote: In light of the present financial crisis, it's interesting to read what Thomas Jefferson said in 1802:

    "Banking institutions are more dangerous to our liberties than standing armies. If the American people e ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.


    A democracy is always temporary in nature. It cannot exist as a permanent form of government. A democracy will continue to exist up until the time the voter discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury with the result that every democracy will finally collapse due to loose fiscal policy which is always followed by a dictatorship." By Thomas Jefferson

    I certainly see today what TJ was talking about in 1802.

    Hap
     
  18. halfmile

    halfmile Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    15,643
    Location:
    Green Bay Wisconsin
    Let me see now. We will give Obama and his cronies control of the money instead of the peole who had it since 1913............

    Uhhh, gee, what to do?

    While I disagree wholeheartedly with the Fed, and the usury based economy in general, I would like some assurance we are not throwing the baby out with the bath water.

    who do you trust more? (incidentally the amendment passed, 11/19/09)

    HM
     
  19. Hap MecTweaks

    Hap MecTweaks Well-Known Member

    Joined:
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    Messages:
    9,226
    Location:
    Mesquite, Nevada
    Politicians that removed our monetary system from being backed by gold reserves was a mistake that allows the Federal Reserve to have control of our money! Money,, that our treasury doesn't have!! Hap
     
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