Reserve Act As Amended to April 13, 1920 Seven Members (See Page 22) Secretary of Treasury-ex officio Chairman. Five to be appointed by President with consent of Senate to serve ten years, not more than one from any District-two to be experienced in banking or finance-one to be Governor and one to be Vice Governor. All to give entire time to business of Board: salary, $12,000 each. No member shall be an officer, director, or stockholder of any bank or trust company, nor a member of Congress. The Secretary of the Treasury, Comptroller of the Currency, and appointive members of Federal Reserve Board, except members who have served the full term for which appointed, shall not be employed in any Member Bank while in office, nor for two years thereafter. Powers To examine Federal Reserve Banks and Member Banks. To permit or require Federal Reserve Banks to rediscount paper of other Federal Reserve Banks at rates to be fixed by this Board. To suspend for stated periods reserve requirements and to establish a tax on decreasing reserves. To regulate the issue of notes. To add to or reclassify existing Reserve and Central Reserve Cities. To suspend or remove officials of Federal Reserve Banks. To require writing off doubtful assets of Federal Reserve Banks. To suspend, liquidate or reorganize Federal Reserve Banks violating this Act. [5] To require bonds of Federal Reserve Agents; to perform all duties, etc., specified or implied in this Act, and to make all necessary rules and regulations. May exercise functions of Clearing House for Federal Reserve Banks, or may designate Federal Reserve Banks to do the same, or may require each Federal Reserve Bank to so act for its Member Banks. To levy upon Federal Reserve Banks semi-annual assessments sufficient to meet estimated expenses of the Board. To exercise general supervision over Federal Reserve Banks. To define character of bills eligible for discount, rediscount, purchase and sale by Federal Reserve Banks, and to limit and regulate rediscounts and acceptances. May establish rate of interest to be charged Federal Reserve Banks on amount of Federal Reserve notes outstanding, less amount of gold or gold certificates held by Federal Reserve Agent as collateral security. May fix the charges to be collected by Member Banks for checks cleared through Federal Reserve Banks. To employ necessary attorneys, clerks, etc., without regard to classified service; but President may place said employees in classified service. Organization Committee (See Page 22) To consist of Secretary of Treasury, Secretary of Agriculture and Comptroller of Currency. To designate as soon as practicable Federal Reserve Cities, and establish Federal Reserve Districts, its determination subject to review only by Federal Reserve Board. (This has been done.) To supervise organization of a Federal Reserve Bank in each Federal Reserve City. (This has been done.) (This committee automatically expired Aug. 10, 1914.) Federal Advisory Council (See Page 23) Composed of as many members as there are Federal Reserve Banks-one chosen by each bank. May act only in advisory capacity to Federal Reserve Board. Federal Reserve Banks (See Page 23) Not less than 8 nor more than 12 (12 have been designated by organization committee); one to be located in each of a like number of cities to be known as Federal Reserve Cities; one of such cities to be located in each of a like number of districts to be known as Federal Reserve Districts covering the entire continental U. S., excluding Alaska. Each controlled by nine directors, as follows: 3-Class A, Elected by Member Banks representing banks. 3-Class B, Elected by Member Banks representing business interests of District-directors, officers or employees of any bank not eligible. 3-Class C, Appointed by Federal Reserve Board, one a person of banking experience, to be chairman and designated as "Federal Reserve Agent." Directors, officers, employees or stockholders of any bank not eligible. No member of Congress shall be an officer or director. Federal Reserve Board to classify Member Banks of similar capitalization into three groups, designating each by number. Each Member Bank to nominate to the Chairman of the board of directors of Federal Reserve Banks of District, one candidate for director for each Class A and Class B. President, cashier, or other officer shall cast_vote of Member Bank for directors of Class A and Class B. Officers and directors of Member Banks shall not be eligible to serve as Class A directors unless elected by Member Banks of the same groups of which they are officers or directors. Officers and directors of more than one Member Bank shall be eligible for Class A directors only of Member Banks in the same group as the bank having the largest aggregate resources. The Federal Reserve Agent, subject to approval of Federal Reserve Board, shall appoint one or more assistants of tested banking experience. Capital not less than $4,000,000. Shares $100 par value, tax exempt, to be subscribed by Member Banks |