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About The Ontario Argus. (Ontario, Or.) 1???-1947 | View Entire Issue (Jan. 8, 1914)
CURRENCY VITAL TO Chief Features of New Federal Re. serve Act Here Presented Fed. eral Reserve Board of Seven Members to Su pervise Banking System oF the Country. CARTKIl (II, AM. TIIK federnl reserve net Is now n pnrt of the law of the Intnl. With President Wilson's signa ture to the new Glasgow en currency reform bill the country looks forward to the practical working out of the act The law Is In part as fol low: An net to provide for the establish ment of federal reserve banks to fur nish an elastic currency, to afford means of redls cnuntlng commer cial paper, to ee tnbllsh n more ef f e c 1 1 v e super vision of hauling In the United 8 tn t es and for other purposes. Tunt the short title of this act hall l.e the "fed eral reserve ai t " Sec. 'i. As soon i as practicable the ,," f American . Press AssiM'liitlnn. secretary of the treasury, the TH rnrainwrr. rotary of agriculture nnd th imp- troller of the currency, acting as "the reserve bank organization conimlttee." shall designate not less than eight nor mors than twelve cities to be known as federal reserve cities, ami shall divide the coiilliictit.il Culled States, exclud ing Alaska, Into districts, each district to ciiiitalu only one of such federnl re servo cities. NAMING RESERVE BANKS. To Tens Title of Principal City In Re serve District. The said (oiiiinlllee shall supervise the organization In each of the cities designated of a federal reserve bank, which shnll Include In Its title the name of the city In which It Is situat ed, ns "Federal Reserve Hnuk of Chi cago." Cnder regulations to lie prescribed by the orguiilxutlon committee every na tional banking a; snclntlon In tho Unit ed States Is hereby required and every ellglb'e bank In the Culled States and every trust company willtln the IMs- trie l of Columbia Is hereby authorized to signify in writing within slxtv dnvs ! nfter the miHsiiuu of this net Its no- OapteBCe of the terms and provisions hereof. When the organisation committee hall have designated the cities In which ftslerul reserve banks are to be organized and llxcd the geographical limits of the federal reserve districts every national banking association within that district shall be required within thirty dnvs after notice from the organization committee to sub scribe to the capital stock of such fed eral reserve bank in a sum equal to it per cent of the paid up capital stock and surplus of such bank. Any national bunk failing to signify Its ncceptance of the terms of this uct within the sixty days aforesaid shnll cease to net as s reserve agent upon thirty days' notice to be given within the discretion of the said organization committee or of the federal reserve bonrd. Should any national banking n -i.i tioll In the I'lilted States now orgau Iced fail within one year uftcr the pas sage of this uct to become u member bank under the provisions hereinbefore stated or fail to comply with any of the provisions of this act applicable thereto till of the rights, privileges and franchisee of such association granted to It under the national buuk act or un der the provlslous of this act shall bo thereby forfeited No Individual, copartnership or cor poration other than u member batik of Its district shnll be permitted to subscribe for or to bold at any time more than $10,000 pur value of stock In any federal reserve bunk. Such stock shall be known us public stock and may be transferred on the hooks of the federnl reserve bank by the chairman of the board of directors of aucb bank Should the subscription of stock by hunks and the public be Inadequate the government Itself may subscribe for stock Stock not held by member banks shall be voted by Clusa 0 direc tor only RESERVE BANK BRANCHES. Regional Institutions Empowered te Establish Sub-Banka. No federal reserve bunk shall com niciic e business with a subscribed cap Hal loss In amount thau l.oou.uuu. Sec. 3. Each federal reserve bank BILL NOW II LAW; . WHOLE NATION Fight to Twelve Reserve Banks to Be Establish ed In Various Parts of the Land ... Enacts Money Reforms, Particularly With Regard to Farmers. R L. OlBl shall establish branch liauks within the federal reserve district In which It Is local (si nnd may do so In the dis trict of any federal reserve bank which may hnve been suspended Buch branches shall be operated by a board of directors under the rules and regulations approved by the federal reserve hoard. IMrcctors of branch bunks shall possess the same quulifl callous as directors of the federal re serve banks, Four of said directors shall be selected by the reserve bank nnd three by the federal reserve board, and they shall bold otllee during the pleasure, respectively, ol the parent bank and the federal reserve board The reserve bank shall designate one of the directors as manager. His-. 4. Upon the tiling of certlllcnte with the comptroller of the currency the said federal re serve bank shall become a body cor poiate and as such and In the name designated In such orgn nidation cer tllli ate shall have power First. To adopt and use n corporate seal. Second. To have succession for n pe rlod of twont.v yours from Its organisa tion unless It Is sooner dlssilvisl bv an act of congress or unless Its franchise liieomes forfeited by some violation of law. Third. To make contracts' Fourth. To sue and ho sued, emu plain and defend. In any court of law or equity . Fifth.--To appoint by Its board of directors, SleetSd as hereinafter pro vided, such olllcers iis are not other wise provided for In this net. to define their duties, require bond-) of them and il the pen i 'i thereof, to dismiss such enlli ci s or any of llieiu in may be ap pointed by SIiciii ut pleasure nnd to ap point oilier- to till their places. Sixth. To prescribe by Its bonrd of dire, tors bylaws not Inconsistent with law regulating the milliner In w Ii i. h Its general business may lie conducted and the privilege giauted to It by law may be exercised and enjoyed. Seventh. To exercise by Its board Of dins tors or duly autlioilcd otllccrN or agents all powers speelllcally grunted by I he provisions of this net nnd sin h im Mental powers us shall taMcssaarj , '" "mv "" "'' I'Uslncss of banking within the limitations prescribed bv this act. Flghlll I 'ii deposit w lib the Irons lircr of the I lilted Slates of any boiiib of the United Slates In I lie iniHIUo' provided bv existing ! relating to national banks to receive from the comptroller of the currency (in ulutlug notes In blank, registered and counter signed as provided bj law, equal In a moll nl to tho par value of the bonds so deposited, such notes to be issued under the same londitlous and provi slous of law which relate to the Issue of i In ulutlug notes of national banks secured by bonds of the Lulled PtatSS bearing the circulating privilege, eX- I ccpt that the Issue of such notes shall i not be limited to the amount of the , capital stock of such federal reserve hunk. Hut no federnl reserve buuk shall I transact any business except such as! Is incidental and nSOSUMfllj ii liiul nary to lis organization until It has taM uuthorlzed by the comptroller of the currency to commence business un der the provisions of this act. CLASSES OF DIRECTORS. Board of Nine to Control Eafth Reserve Bank. Cv cry federal reserve buuk shull be conducted under the supervision and control of a bourd of directors. Such bourd of directors shull be se- lectod us hereinafter specified and shall federal reserve banks lu proportion to consist of nine members, holding otllee j their eupltnl htock und surplus uu as for three years und divided Into three Hessincnl sulil. lent to puy lis estimated classes, designs ted as Clusses A. B expenses nnd sulnrles of Its members EM 0c and employees for the half year suc- Cluss A shall consist of three mem- needing the levying of such assessment. hers, who shall be chosen by and lie representative of the stock holding bunks Class B shall consist of three mem bers. who at the time of tbelr election shall be actively engaged In tbelr dU Uict in commerce, in agriculture or lu eome other industrial pursuit. Class Q shull consist of three mem bers, who shull be designated by the federal reserve bourd. When the nec essary subscriptions to the capital stock have beeu obtaiued for the or ganizatlou for any federal reserve bank the federnl reserve bourd shall appoint the Class C directors und shall designate one of sucb directors as chairman of the board to be selected I't-ndiug the designation of such chair man tbe organization conimlttee aball exercise the powers nnd (Tntlpn upper- Itils requirement. Whenever n vncnn tnliilng to the otllee of chnlrmnn In the . ry shnll occur other than by expiration organisation or such federal reserve itnuk. do trail tor or rapreaentetlrs in con press shall In- ii tiKMiilx-r of fcilcrnl re serve board or an officer or n director of n federal rssarrs hunk. n0 director Of ('Ills'" ll shnll be nn Officer, director or employee of any bank No director of Class C shall be an Offli or. director, employee or stock holder of any bank. Class 0 directors shall be appointed by the federal reserve board. They shnll have been for at lenst two years residents of the district for which they are appointed, one of whom shall be designated by said board as ehalrmnn of the board of directors of the federal reserve bank nnd as "fed ernl reserve agent." He shnll be a person of tested banking cxterlencp, mill III nrlelltlo-c tn Ills cicelies nn .-li-ele- nui n of the board of directors of the federnl reserve bank he shnll tie re quired to maintain under regulations to be established bv the federal reserve hnnrd a local office of said board on the premises of the federal reserve bank. , Sec I. The capital stock of ench fed eral reserve bank shall be divided Into shares of Mini each. Division of Earnings. Sec. 7. After all necessnry expenses of n federal reserve bank have been pnld or provided for, tho stockhold ers shall be entitled to receive an annual dividend of (I per centum on the paki In capital stock, which divi dend Stall bo cumulative After the n foresaid dividend elnlms have been fully met nil net earnings shall be paid to the Fhltisl States as a franchise tux, except that one half of such net earnings shall be paid Into n surplus fund until It shall amount to 40 per centum of the paid In capital stock of such bank. The net earnings derived by the ('lilt ed States from federal reserve banks shnll. In the discretion of the secretary, be used to supplement the gold reserve held against outstanding I'lilted Slates notes, or shall be applied to the re ductioii of the outstanding boadssl in deliteduess of the ('nltcd States. Ho serve banks shall not be taxed except upon real estate. Section N amends the existing bunk lug laws, ho that stock holders owning Bl per cert of the stock of banks other than national banks cau convert their organization , Into national banks. Section 1 describes how state banks may become nieinbets of reserve banks. FEDERAL RESERVE BOARD. Sevan Members, Five of Whom Are to Oat $12,000 a Year Each. Sec. 1(1. A federal reserve board Is hereby created, which shall consist of seven Bombers, Including the secre tary of the treasury and the comptrol ler of tho currency, who shall be mem bers ex officio, and live members np pointed bv the president of the Cult ed States, by and with the advice nnd consent of the senate In selecting the the appointive members of the federal reserve Imard not more than olio of whom shall be sobs-ted from any one federal reserve district, the president shall have due regard to a fair repre sentation of the (IHTcrcnt geographical divisions of the country. The liv em bets of the federal reseive board up pointed bv the president ami confirmed as aforesaid shall devote their entire time to the business of Ihe federnl re serve board and stall. SMI receive an annual salary of 912A0Q, together with Urinal iic- . - i l.v tliivellng expenses, and file comptroller of the ciiricncy, olllc lo member of the federal re si i v c i". mi stall iii addition to the sulary now paid him ns comptroller of the currency, receive the sum of $7 000 annually for Ids services as u member of sulci hoard The members of said board, the secretin) of the treasury, the assistant secretary of the treasury nnd the comptroller of the currency shnll be Ineligible dining the time they are in otllee and for two years theicaft er to hold uny oflb e, position or em ploy incut In uny member buuk. Of the five I worn hers thus ilppolnted by the president ut lenst two shnll be persons experienced In bunking or nuance One shnll bo designated by four, one for six, one for eight, one for ten, and thereafter each uieiubei so appointed shall serve for n term of ten vears unless sooner removed for cause by the president, (if the live persons thus appointed one shall be designated by the president as gov ernor Kiitl one . vice governor of the ftslerul reserve board. The governor of the federal reserve bonrd, sul.io.-t to Its siiperv islou. shall be the ik ting ex ecutive officer The federal reserve hoard shull have power to levy semluunuully upon the together wltli any deficit carried for ward from the preceding half jeur. The first meeting of the federal re serve board shall be held ill Washing ton. I Mst riot of Columbia, as soon us may be after the passage of this uct at a date to be lived by the reserve- I. ink organization committee The secretary of the ticasury shall be ex officio chair nun of the federal reserve board. No member of the federal reserve board shall be an olflccr or dins lor of any bank, banking Institution (rust "in tuny or federal reserve bunk nor hold stock in anv buuk. banking institution or trust compuuy. and before entering upon bis duties ns a member of the federal reserve bonrd be shall certify in. del oath to the sccrcl.n.v of the treasury that be bus complied with af term among theali maintain of the I federal reserve board appointed by iiio prwldrat ns stars provided. snecea Mr stall lie appointed by Hie president, mit (ba advice and conowl of the J lenatei te 1111 racb ractney. i The president slmll have power to 111! nil vacancies t tint inny happen on the federnl reserve board during the recess of the senile by granting rniu Biiaatona which aball expire thirty dnys after the next session of the senate convenes. RESERVE BOARD POWERS. Haa Controlling Hand on Banking of the Nation. Sec. 11. The federnl reserve bonrd ahnll be nutlmrlzcd and empowered: (n) To examine nt Its discretion the aceouiiM, books nnd nffnlra of ench federal reserve bank nnd of ench mem ber bunk and to require such stato ments and reports as It may deem necessary The said bonrd shall pub llsh once each week a statement show ing tho condition of each federal re serve bnnk and n consolidated nfnte nient for nil federal reserve bunks. Sin h statements shall show In detail the assets and liabilities of the federal reserve banks, single nnd combined, nnd shall furnish full Information nj gnrdlng the character of the money held ns reserve and the amount, na ture and maturities of the paper and other Investments owned or held by federal reserve banks. (In To penult or on the ntllrniatlvo vote of nt least live members of tho reserve board to require federal re serve banks to rediscount tlu discount ed paper of other federal reserve banks at rates of Interest to be fixed by the federal reserve bonrd. (c) To suspend for n period not ex ceeding thirty days, nnd from time to time to renew sin h suspension for c rlods not exceeding fifteen days, any reserve requlr cut sieefled In this ml Provided, that It shall establish a graduated tax upon the amounts by which the reserve requirements of this ait may be permitted to fall below the level hereliiiu'ter specified: nnd provided, further, that when the gold reserve held against federal reserve notes fulls below -10 per centum, tho federal reserve board shall establish a gradualist tax of not more than I per centum upon such dsflctancj until the reserves full to :i"i,j per centum, and when said reserve fulls below Blty per centum, a tax. at the rate biennis lllgl.v of Hot less than ij per cctiluui Upon each "ii per centum or fraction thereof tfi.it mil ll reserve fulls below B3 per centum. The ma stall ba paid by the reserve bank, but the r. bank shall add an amount equal to said tax to Ihe rates of Inleiest and discount lived by the federal reserve 1 1. id) To supeiv si and regulate through Ihe bureau under the charge of tho comptroller of the currency the Issue ami retirement of federal reserve notes, nnd to prescribe rules and regit Iniioiis under which such notes may be delivered bv the comptroller to the federnl reserve agents applvlug thoic for lei To ad I to the number of cllles classified a reserve and central re s.ivc cllles under existing law In which national bunking a-social Ions ie subject to the reseive require incuts set forth In section "u of this act. or to reclassify existing reserve and central lesoiic ( Hies or to lerinl nnte their designation as such tfi To suspend or remove any officer or directs1 of any federal reserve bank, the eau-c of such removal to lie f -it'll with Communicated In writing by the rcdsml rsserre board to Ita to moved otlli er or d.ieclor and to said bank (gi To require the writing off of doubtful or wort bless assets upon the books and balance sheets of federal reserve bunks (h) To suspend. Tor the vlolali t I uny of the provisions of this net. the I operations of any federal reserve bSUk, I" take pOSSSSSfon thereof, ml I minister Ihe same during the period of 'suspension und when doomed nd visit hie to liquidate or reorganize such i buuk. (Ii To require bonds of federal re i serve agents, to make regulations for the salcguardlllg of all collateral. bonds, federal reserve notes, inonej or i propeit.v of ,in kind deposited In Ita bands of such agents, and said boanl shall perform the duties, functions or services spcciflisl In this uct ainl in make all rules ami regulations lieees sury to enable said Isniril effectively to lu'iloriu ihe same. ijl To exeie ise general supervision over said federal reserve banks ki To grant by special permit to mi lloiial banks applying therefor, when uot lu cont iii v out ion of stute or local law, tbe light to uct us trustee, ex ecutor, administrator or registrar of stocks and Isolds under such rules and regulations as the suld board may pre scribe (I) To employ such attorneys, ex perls, assistants, clerks or other em ployees us may be deemed necessary to properly conduct the buslliesa of tbe bourd All salaries and fees shull be fixed In advance by suld board ami ahull be paid In the suiue manner us tbe sulnrles of the members of suld board All mi I, attorneys, experts. assistant, clerks und other employees sbull be appointed artttaOl regard to the provision-, of the net or Jan HI. 1MK! (volume J-.'. United States stat utes nt large, puge pi.'li and amend meats thereto or any rule or regulutlon made lu pur.stTmi' .- thereof Section 11! creates a ftslerul advisor) council, consisting of one member from eueb federal reserve district. Which Is empowered to confer with Ihe federal reseive hoard and muke representations regarding Ihe business ef the board RESERVE BANK POWERS. Principal Functions of the New Re gional Institutions. Sec. 18, Any federal reserve hunk may leceive from any of its member banks and from the United Stabs de posits of em rent funds lu lawful moli- ov . national bank notes, federal reserve notes or checks ami draffs upon mem ber banks, payable upon presentation or solely for exchange purposes mny receive fiom other federal reserve banks deposits ccl current funds In law I ul money, national bunk notes or checks and drafts upon solvent nielli her or other federal reserve banks payable upon presentation. i pou the Indorsement or any of its member bunks, with I wnlver of de in.iinl notice and protest by such bank. any federal reserve bank imiy dis count BOtes, drafts and bills of ex change arising out of actual commer cial transactions that Is. notes, drafts and bills of exchange Issued or drawn for agricultural, industrial or eommtr (inl purposes or the proeeeds of which have Ins'ii used or are to bo used for such purposes, the federal reserve board to have the right to determine or define the character of the paper thus eligible for discount within the meaning of this act. Nothing In this net contained shnll be construed to prohibit such notes, drafts nnd bills of exchange secured by staple agiiciil tiirnl products or other goods, wares or merchandise from liclng eligible for such discount, but such definition shall not Include notes, drafts or bills cov erlng merely Investments or Issued or drawn for the purpose of currying or (railing In stocks, Isuids or other In vestment securities except bonds nnd notes of the government of the ('nltcd States Notes, drafts and bills admit ted to discount under the terms of this paragraph must have a maturity at file time of discount of not more than ninety days, provided that notes, drafts nnd bills drawn or Issiusl for agricultural purposes or taosd on live stock and having n maturity not ex ceedlng six months may bo dlsoonnteel In an amount to be limited to a per centage of the capital of the federal reserve bank, to he ascertained and llxcd by the federal reserve board. Discounting Acoeptanoaa. Any fislcral reserve bank may ills count nieoplni s which ure based am the Importation or exportation or do liiestle shipment of goods and vv lib S have a maturity at time of disc mint of uot more than three mouths nnd he iOrmd by ut least one member bank. The amount of acceptances so dis count. -d shall at no lime exceed one half the paid up capital Stock and sur plus of the bank feel which the re discounts are made. Tim aggregate of such notes and bills bearing the slguntuie or Indorse llielit of any one person, company or firm oi corporation radlscounted for any on bunk shull at M time exceed lu per centum of the uulmpnlnsl cupl till ami surplus of said b.nk. but this rSStlaktlon shnll UOl apply to Ihe elis count of bills ol (Milan e drawn In good faith against actunltj existing Vllllles Any meiiii.er buuk limy incept drill or bids oi . ., Iiange drawn u, o. I unci trau 0( to miring tin- ImpurteHou ekiwrtetiuu i Is I. v mm lio more Ie II .iiis si iii to 1 1. ii ion no bank accept such bills to an amount ru,ual at uny iii a.- in tine aggregate lu mora thai hall Ul lis paid Up capital stock and surplus Open Market Operations. Se- ii ai federal reearrs bank iiiav. im he i ii e . nnd regulation po s, rlbcil by Ihe ftslerul I v c buui I, purchase und sell lu Ihe open in. ul. el at home or BbTOSd. cither from or to elouiesilo or foreign banks, linns cor porations or liidlv lilmils cable- trans fees und tankers' acceptances ami bills of ei li.iuge- of Ihe kinds and ma tiliitles by this net made eligible for rcells ut wild or vv it In. ul I he Indorse ment of u member bank Kvery federal reserve bank shull luive power: (ill To deal in gold coin and bullion at home or abroad, to make loans thensiii. evcbaiige federal n notes for gold, gold coin or gold cer ilfbates and to contract for loans . .r gold coin or bullion. Living (liciefoi. when necessary, acceptable security, Im biding the hypothecation of I'lilted States bonds or other seem Hies which federal reserve banks are authorised to bold; do To buy and sell at homo or abroad bonds nnd notes of the 1'iilttil Stnles und bills, notes, revenue bonds und warrants with a inatnilty from date of purchasing of not exceeding six months, Issued In untie Ipatloii of the colic, lion of tuxes or In anticipation of tbe receipt of assured revenues by any stute. i iiiuty. district, political subdl vision or municipality In tho cont! neulal Culled States. Including lrrlga tion. drainage ami reclamation ills trie is. audi purchases to be made In uce ordiiiH'e with rules unci regulations prescribed by the fislcral reserve boa lei . (ci To purchase from member banks and to sell, with or without Its In dorseineiit. bills of exchange arising out of coinincii lal transactions aa hereinbefore defined; (di To establish from lime to time. subject to review nnd determination of the federal reserve honid rates of discount to be charged bv the federal reserve hank for em h i la s ..r p.,.er which shnll be fixed with a view of nr coiiiiii. .elating coiuincre e mid husim lei To esla'illsh ale .- with oil.- federal reserve tanks for agftaim pin I e.es and. with lie sent of I he federal reserve hoard n open nni malm in banking account in foil i mil, i i,--. appoint c . uudetll -estulillsh agem les ill aU b coillil . - opter it my iti em best for ita , urpose of purchasing, selling and col- Una bills of exchange, and In buy ml sell with or without lis ludorsu enl through such correspondents ,,r en ics, bills of cm Inn e arising ollt of actual cominerc ial traiisaclions Im h have not more than ninety days lo run and which hear the signature of tvo or more responsible pail, is. Sin tion 18 provides that nionc- held ill the general fund of the I cited States treasury, except the I pel en- luii fund for ihe redemption ul out" tending national bnnk notes nml the funds provided In the net for the te dempttofl of federal reserve Botes, mny be deposited In federnl reserve banks which shnll net ns flscnl n t-nt-s and that the funds of tbe Philippine Islands, the postal savings nnd my other government funds must he de posited in federal reserve bunks Section HI provides for the lsuinci of federal reserve notes to fede ll ie serve banks, redeemable In gold oinle mand at the trensury department eir ii gold or la win! money nt anv fed eral reservi' bnnk. Tho collateral se curity shnll lie notes nnd bills accept ed for rediscount under section II Federal reserve bnnks shnll hnve a gold reserve of -10 per cent of their federal reserve notes nnd shnll main lain In the I'lilted Slates trensury In gold n reserve of not less than f, per cent of the federal reserve notes for their redemption BSCtloa 17 repeals laws requiring nu tlounl bunks to deposit government bonds with the 1'nltcd Stnles trensnrei lection II provides n plnn for rein ing Ihe .' per cent bonds on which the present currency Is based. Under the plan JL'.i.cihi.ihhi worth of these bonds will be purchased each yeai. beginning I wee years after Ihe system Is placed In o elation, by the new regional banks from member banks tin one half of Its holdings each regional bank mny Is sue currency. The remainder will h re funded III .1 per cent thirty year 'minis or .i per cent one year treasury ioIcs. willed the bunks must agree in ciiew em h your for thirty years See Hon p.i dSSCritaa bow member eauks shall establish und maintain pa e-l e . Scollon L'l provides for the exiimlnn- iciii of e oh member bnnk hy Ita end iroier of the i urrciicy at least v li i' n year, for a special examination r member banks when desired by tci'il i rve bank- and for a spe- 4i exai 1 1 nation of any federal -" ban!, upon the application of in' er banks rtfJALTY FOR DISHONESTY.- n-v, paring With Bank Esaminera Made Criminal Offense. '.".' Nn member bank or any r director or employee tuetvof til ill lu leafier make auv loan or I t uny gratuity to uny bank , iiuluer Any lunik olli.er. dhe. i.ir i employee violating ilns provi-lou hall be chained gtllllv of II llllscle r ami shnll In- linpi isomsl not va coding one yeiir or Unci! nit morn than Sol shi. or bold, may be lined a fur ttar sum equal III the in iney so hum I or gratuity given. Anv cvuiulucr .eccpllng a loan or gratuity from any Milk examined by him or from nil i director or employee thereof ' ill be do. I guilty of a ml ile iceanor ami shall be imprisoned mil lllug one year or lined ii i more than S.M N Hi. or both Sis tion '.'.i provides that nutl.eu.il stockholders shall be tvajo!bl for all Ilaels, ill bis mill ellgugc ii, nls of their banks to the amount "' loe I, al pur v able In addition to ' I. MCI hV,-s, , U si h slHk. r lllev lllli-fer their -lo. k within III; days before Ita failure Of tbelr - I hey Stall be liable to Ihe same xteni in ci, so ii,,. transferee 'ails t aeel so, , I ihy Loans en Farm Lands. .'I Vuy national banking us i o :i i i, , in , , cnii.it icei-ivc ei. ma. make loans .n in isl by improved and m umbel cd fin an ktnd slluil.it within lis fed ci Si i' ' e- di Ii ni. but no -in Ii loan shall be made lor u longer lime than live years nor for an iilii.-iinl i m ccdins ill per Centum f the in lu, il value l the piopciiy iifle-risl as secUfttJ Any -ue h hank may make nub loans in an e- sillll equal In J.", pel cut I Hi ' - aplfal and surplus or In one third ecf ii . Urn,, deposits and -u, Ii may continue hcicafter, us here tofoic to leceive time deposits mid puy Inleiest on the same lie- fedcial reserve bourd shnll hnve povvei from time to lime to add lo the list of cities In which nutloiiul bunks shnll not be permitted to make loans sis u red upon real estate lu the- man ner desiillied in Ibis sis lion Sis'lhui '.'.' aulhori.es uutlotial buuk lug ii-sck nitidis possessing II I llplt ll and sin plus of fl.Um.lMMl or more to es tablish foreign ben. In-s under Ihe ill fee lion of Ita federal reseive Ismrd. Se. lion ".'li uulhon-es the see retury of the trensury to strengthen (he gold reseive by hollowing c.o!i) oil (lilted Stub - bonds or by selling rV.'n Se, lion ji' ti tends from si'1"' "' IUH. until June .in, KM., (be lite of au in I uilhoiling national 1 iirr.-u y us- soi la. ions, ihe Issuance of additional nan mil hank circulation uml the n aliou of 11 national monetary 11 1- slou ll re enacts cciiaiu I nnd States banking statutes amended by 1111 uct of May BO 11 Mis - ub.-. t to such umcndiiicnts or iiiodill. at ions us are 1 ..nl. lined In (he new lUiieii'V law It amend, Ihe Mnv RQ I'.Hi.S. ait In re gun! to the taxation of emulating notes held bv untioniil banking M00 ehilioiis and secured olhciwise than In I nltcd Males bonds See tunc J' prcev hies that if any part of tin- .oi 1- declared invalid by a com 1 ihe Judgment shall nol nticct the rem. 1 Huh-, of tin- uct.