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About The Sunday Oregonian. (Portland, Ore.) 1881-current | View Entire Issue (Dec. 28, 1913)
THE SUNDAY OREGONIAN, PC5RTL ASP. DECEMBER 28. 1913. FARM LOANS TO BE PERMITTED UNDER NEW CURRENCY LAW Improved and Unimproved Lands Designated as Acceptably Security to Half Their Full Value and Not Exceeding in. Aggregate One-Fourth of Capital and Surplus or One-Third of Time Deposits. tary of the Treasury, be deposited In Federal reserve banks, which blnks, when required by the Secretary of the Trea.ury. sliall act as fiscal agents of the rnlted States; and the revenue, of the Government or any part thereof may be deposited in such banks, and disbursements may be made by checks drawn aicainst such deposits. No public funds of the Philippine Islands, or of the postal savings, or any Government funds, shall be depos ited in the continental United States in any bank not belonging to the sys tem established by this act: Provided, however that nothing In this act shall be construed to deny the right of the Secretary of the Treasury to use mem ber banks as depositories. tfec. 16. Federal reserve notes, to be issued at the discretion of the Federal Reserve Board for the purpose of mak ing advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are hereby authorized. The ."aid notes shall be obligations of the Tinted States and shall be receivable hy all National and member banks and J-fderal reserve banks and for all taxes, customs and ether public dues. They shall be redeemed In gold on demand at the Treasury Department of the 1'nited States, in the city of Washing ton. District of Columbia, or in gold or lawful money at any Federal reserve bank. Any Federal reserve bank may make tie respective reserve banks, and members selected to fill vacancies. hall serve for the unexpired term. The Federal Advisory Council shall have power, by itself or through Its officers (1) to confer directly with the ederal Keserve Board on general business conditions; (2) to make oral or written representations 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, i. pen-market operations by said banks, and the general affairs of the reserve banking system. Banks Powers Are Fixed. Sec. 13- Any Federal reserve bank may receive from any of its member banks, and from the United States, de posits of current funds In lawful money. National bank notes. Federal reserve notes, or checks and drafts upon solvent member banks, payable upon presenta tion; or. solely for exchange purposes, may receive from other Federal reserve banks deposits of current funds In law ful 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 or de mand, notice and protest by such bank, any Federal reserve bank may discount notes, drafts and bills of exchange arts ln:r out of actual commercial transac- tions; thnt Is, notes, drafts and bills of exrlmnse Issued or drawn for ajrricul tural. industrial or commercial pur popes, or the proceeds of which have been used, or are t bti iiFed. for such rurposp. the Federal Keserve Board to have the ripht to determine or deiine the character of the paper thus eligible for discount, within the meantng of this Act. Nnthlne in this Art contained .-hail be construed to prohibit such notes, drafts and bills of exchange, se cured by staole agricultural products, or other goods, ware or merchaudise from being eligible for such discount: hut such definition shall not Include notes, drafts, or bills covering merely investments or Issued or drawn for the purpose of carrying or trading In Mock, bonds, or other Investment se curities, except bonds and notes of the Government of the ' United States. Notea. drafts, and bills admitted to dis count under the terms or tills para Kraph must have a maturity at the time f discount of not more than SO days: Provided. That notes, drafts and bills drawn or Issued for agricultural pur poses or based on livestock and having a maturity not exceeding six months ma v be discounted In an amount to be limited to a percentaae of the capital of the Federal reserve bank, to be as certained and fixed by the Federal Ke serve Board. t Aeccptneces Slay Be Discounted. Any Federal reserve bank may dis count acceptances which are based on the Importation or exportation of goods and w hich have a maturity at time of discount of not more than three months, and indorsed by at leask one member bank. The amount of acceptances so discounted shall at no time exceed one half the paid-up capital stock and sur plus of the bank for which the redis counts are made. The aggregate of such notes and bills bearing the signature or Indorsement of any one person, company, firm, or cor poration redlscountcd for any one bank shall at no time exceed 10 per centum of the unimpaired capital and surplus of said bank: but this restriction shall not apply to the discount of bills of ex change drawn In good faith against actually existing values. Anv member bank may accept drafts or bills of exchange drawn upon It and rrrowinir out of transactions Involving tho Importation or exportation of goods having not more than six months sight t. run: but no bank shall accept such bills to an amount equal at any time In the atJtreijate to more than one-half Its aid-up capital stock and surplus. Section Z-OS of the Revised Statutes of the United States is hereby amended o as to read as follows: No National banking association shall at any time be indebted, or In any way liable, to an amount exceeding the amount of Its apital stock at such time actually paid In and remaining undiminished by losses or otherwise, 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 de posit to the credit of the association, or due thereto. FouVth. Liabilities to the stockhold ers of the association for dividends and "reserve profits. Fifth. Liabilities incurred under the provisions of the Federal Reserve Act. The rediscount by any Federal re serve bank of any bills receivable and of domestic and foreign bills of ex change, and of acceptances authorised by this Act, shall be subject to such re strictions, limitations and regulations as may be Imposed by the Federal Re serve Board. Paper May Be Marketed. Sec. 14. Any Federal reserve bank may. under rules and regulations pre scribed by the Federal Reserve Board, purchase and sell In the open market, at home or abroad, either from or to do mestic or foreign banks, firms, corpo rations, or Individuals, cable transfers and bankers- acceptances and bills of exchange of the kinds and maturities by this Act made eligible for rediscount, with or without the Indorsement of a member bank. Every Federal reserve bank shall have power: ta) To deal in gold coin and bullion at home or abroad, to make loans there on, exchange Federal reserve notes for gold, gold cola, or gold certificates, and to contract for loans of gold coin or bullion, giving therefore, when necessary, acceptable security. Includ ing the hypothecation of United States bonds or other securities which Federal reserve banks are authorised to hold: (h) To buy and sell, at home or abroad, bonds and notes of the United States, and bills, notes, revenue bonds, I ajid warrants with a maturity from date of purchase of not exceeding six months, issued In anticipation cf the collection of taxes or In anticipation of the receipt of assured revenues by any state, county, district, political subdi vision, or municipality In the continen tal United States. Including Irrigation, drainage and reclamation districts, such purchases to be made In accordance with rules and regulations prescribed by the Federal Reserve Board: (c) To purchase from member "banks and to sell, with or witnout its inaorse. ment. bills of exchange arising out of commercial transactions, as nereiuue f nr. rlefined: tA Trt staMlsh from time to time, subject to review and determination of the Federal Keserve noaro. rates oi m count to be charged by the Federal re serve bank for each class oi paper, which shall be fixed with a view of ac i.nmmnHitlnc commerce and business; (e) To establish accounts with other Federal reserve banks for exchange purposes and, with the consent of the Federal Keserve uoaro, io open mointnln banking accounts In foreign countries, appoint correspondents, and establish agencies In such countries wheresoever it may aeem oesi "r th nttrDose of n-urchastng, selling, and collecting bills of exchange, and to buy and sell wltn or wnnoui iu Indorsement, througn sucn correspond ents or agencies, bills of exchange arls in0 nt of actual commercial trans- actions which have not more than 90 days to run and which bear the sig natures of two or more responsible parties. Gevernment to Be Depositor. R.c 1. The monevs held In the gen eral fund of the Treasury, except the 6 per centum fund for the redemption of outstanding National bank notes and the funds provided In this act for the redemption of Federal reserve notes mav. upon the direction of the Secre application to the local Federal reserve agent for such amount of the Federal hereinbefore provided for as it may require- Such application shall be accompanied with a tender to the local Federal reserve agent of col lateral In amount equal to the sum of the Federal reserve notes thus applied for and issued pursuant to such appli cation. The collateral security tnus oi fered shall be notes and bills, accepted for rediscount under the provisions of section 13 of this act, and the Federal reserve agent shall each day notify the Federal Reserve Board of all issues and withdrawals of r ederal 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 additional security to protect the Federal reserve notes issued to it. Reserve Moat Be Maintained. Every Federal reserve bank shall maintain reserves In gold or lawful money of not less than 35 per centum against Its deposits and reserves in gold of not less than 40 per centum against its Federal reserve notes in actual circulation, and not offset by gold or lawful money deposited with the Federal reserve 'agent. Notes so paid out shall bear upon their faces a distinctive letter and Berlal number, which shall be assigned by the Federal Reserve Board to each Federal reserve bank. Whenever 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 10 per centum upon the face value of notes so paid out. Notes presented for 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 Is sued, and thereupon such Federal re serve bank shall, upon demand of the 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 certifi cates, and such Federal reserve iank shall, so long as any of Its Federal re serve notes remain outstanding, main tain with the Treasurer In gold an amount sufficient In the judgment of the Secretary to provide for all re demptions to be made by the Treas urer. Federal reserve notes received by the Treasury, otherwise than for re demption, may be exchanged for gold out of tho redemption fund herlnafter provided and returned to the reserve bank through which they were origi nally 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 Controller of the Currency for cancel lation and destruction. Treasury Deposit Required. The Federal Reserve Board shall re quire each Federal reserve bank to maintain on deposit in the Treasury of the United States a sum in gold suf ficient In the Judgment of the Secre tary of the Treasury for the redemp tion of the Federal reserve notes issued to such bank, but in no event less than 5 per centum: but Buch deposit of gold shall be counted and included as part of the 40 per centum reserve herein before required. The. board shall have the right, acting through the Federal reserve agent, to grant In whole or in part or to reject entirely the applica tion of any Federal reserve bank for federal reserve notes; but to the extent that such application may be granteji 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 in terest on said amount as may be es tablished by the Federal Reserve Board, and the amount of 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 18 of this act upon security of United States t per centum Government bonds, become a first and paramount lien on all the assets of such bank. Any Federal reserve bank may at any time reduce its liability for out standing Federal reserve notes by de positing, with the Federal reserve agent Its Federal reserve notes, gold, gold certificates or lawful money of the United States. Federal reserve notes so deposited shall not be reissued, except upon compliance with the condi tions of an original Issue. The Federal reserve agent shall hold such gold, gold certificates, or lawful money available exclusively for ex change for the outstanding Federal re serve notes when offered by the re serve bank of which he is a director. Upon the request of the Secretary of the Treasury the Federal Reserve Board shell 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 pur pose of redemption of such notes. Any Federal reserve bank may at its discretion withdraw collateral depos ited with the local Federal reserve agent for the protection of its Federal reserve notes deposited with It and shall at the same time substitute there tor other like collateral of equal amount with the approval of the Fed eral reserve agent under regulations to be proscribed by the Federal Reserve Board. New Notee io Be Printed. In order to furnish suitable notes for circulation as Federal reserve notes, the Controller 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 fraud ulent alterations, and shall have print ed therefrom and numbered such quan titles of such notes of the denomlna tions of 13, 110, $20. 50, 1100. as may be required to supply the Federal re serve banks. Such notes shall be in form and tenor as directed by the sec retary of the Treasury under the pro visions of this act and shall bear the distinctive numbers of the several Fed eral reserve banks through which they are issued. When such notes nave been prepared. thev shall be deposited In the Treas ury, 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 con troller of the Currency for their deliv ery. as provided by this act. The plates and dies to be procured by the Controller of the Currency for the printing of such circulating notes shall remain under his control ana di rection, and the expenses necessarily Incurred in executing the laws relating to the procuring of huch notes, and all other expenses incidental to their issue and retirement, shall be paid by tne Federal reserve banks and the i ederal Reserve Board shall Include In its es timate 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 oil Je vised Statutes, is hereby extended to Include notes herein provided for. An appropriation heretofore made out of the general runes oi tne treasury for engraving plates and dies, the pur chase of distinctive paper, or to cover anv other expense in connection with the printing of National bank notes or notes provided for by the act of May 30, 1908, and any distinctive paper that may be on hand at the time of the passage of this act may be used in the discretion or tne secretary iur me pur poses of this act. and should the appro nriations heretofore made be inauffi cient to meet the requirements of this act in addition to circulating notes pro vided for by existing law, the Secre tary Is hereby authorized to use so much of any funds in the Treasury not otherwise appropriated lor tne pur nose of furnishing the notes aforesaid. Provided, however. That nothing In this section shall be construed as exempt ing National banks or Federal reserve banks from their liability to reimDurse the United States for any expenses in curred in printing and Issuing circuiat Ing notes. Clearance Charge te Be Fixed. Every Federal reserve bank shall re ceive on deposit at par from member banks or from Federal reserve Danas checks and drafts drawn 'upon any of its denositors. and when remitted by a Federal reserve bank, checks and drafts drawn by any depositor in any other Federal reserve bank or member oan upon funds to the credit of said deposi tor in said reserve bank or member bank. Nothing herein contained shall be constructed as prohibiting a member bank from charging Its actual exponse incurred In collecting and remitting funds, or for exchange sold to its pat rons. 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 mav be Imposed for the service of clearing or collection rendered by the Federal reserve bank. The Federal Reserve Board snail make and promulgate from time to time regulations governing the transrer of funds and charges therefor among Federal reserve banks and their branches, and may at Its discretion exercise the functions or a clearing house for such Federal reserve banks, or may designate a Federal reserve bank to exercise such functions, and may also require each such bank to exercise the functions of a clearing house for Its member banks. Sec 17. Bo much of the provisions of section B16 of the Revised Statutes of the United States, and section 4 of tho act of June 20. 1874. and section 8 ot the act of July 12, 1883, and of any other provisions of existing statutes as require that before any National bank ing association 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. Notes May Be Retired. Sec 18. After two years from the passage of this 'act. and at any time during a period of 20 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 se.l for Its account, at par and accrued in terest. United States bonds securing circulation to be retired. The Treasurer shall, at the end of each quarterly period, furnish the Fed eral 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 ap plications have been filed with the Treasurer at least 10 days before the end of any quarterly period at which . v. - r-..,l t'rra Rnnrd mav direct the purchase to be made. Provided. That Federal reserve banks shall not be per mitted to purchase an amount to ex ceed 125,000.000 of such bonds In any one year, and which amount shall In clude bonds acquired under section 4 of this act by the Federal reserve bank. Provided further. That the Federal Re serve 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 ac count, each member bank shall duly assign and transfer, in writing, such bonds to the Federal reserve bank pur chasing the same, and such Federal re serve bank shall, thereupon, deposit lawful money with the Treasury 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 suf ficient sum to redeem Its outstanding notes secured by such bonds, which notes shall be canceled and permanent ly retired when redeemed. Bonds to Secure Note. The Federal reserve banks purchas ing such bonds shall be permitted to take out an amount of circulating notes equal to the par value of such bonds. Upon the deposit with the Treasurer of the United States of bonds so pur chased, or any bonds with the circu lating privilege acquired under section four of this act, any Federal reserve bank making such deposit In the man ner provided by existing law, shall be entitled to receive from the Con troller of the Currency circulating notes in blank, registered and counter signed as provided by law, equal In amount to the par value of the bonds so deposited. Such notes shall be the obligations of the Federal reserve bank procuring the same, and shall be In form prescribed by the Secretary of the Treasury, and to the same tenor and effect as National-bank notes now pro vided bylaw. They shall be issued and redeemed under the same terms and conditions as National-bank notes ex cept 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 re serve bank, approved by the Federal Reserve Board, the Secretary of f the Treasury may issue, in exchange for United States X per centum gold bonds bearing the circulation privilege, but against which no circulation Is out standing, one-year gold notes of the United States without the circulation privilege, to an amount not to exceed one-half of the 2 per centum bonds so tendered for exchange, and 80-year 3 per centum gold bonds without the cir culation privilege for the remainder of the 2 per centum bonds so tenaered: Provided. That at the time of such ex change the Federal reserve bank ob taining such one-year gold notes shall enter Into an obligation with the Secre tary of the Treasury binding itself to purchase from the United States for gold at the maturity of such one-year notes, an amount equal to those de livered 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 Is sued to such bank in the first instance, in exchange for the 2 per centum United States gold bonds: said obliga tion to purchase at maturity such notes shall continue in force for a period not to exceed 30 years. Coupon Notes Provided. For the purpose of making the ex change herein provided for, the Secre tary of the Treasury is authorized to issue at par Treasury notes in coupon or registered form as he may prescribe In denominations of 3100, or any mul tiple thereof, bearing Interest at, the rate of 3 per centum per annum, pay able 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 bs exempt as to principal and inter est 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 au thorized and empowered to issue United States gold bonds at par, bearing S per centum interest payable 30 years from date of issue, such bonds to be of the same general tenor ana enect ana to be issued under the same general terms and conditions as the United States 3 per centum bonds without the circu lation privilege now, issued and out stanc.ing. Upon application of any Federal re serve bank, approved by the Federal Reserve Board, the Secretary may issue at par such 3 per centum bonds in ex- change for the one-year gold notes herein provided for. Reserves to Be Maintained. Sec 19. Demand deposits within the meaning of this act shall comprise all deposits payable within 30 days, and time deposits shall comprise all depos its payable after 30 days, and all sav Ings accounts and certificates of de posit which are subject to not less than 30 days' notice before payment. When the Secretary of the Treasury shall have officially announced, in sucn manner as he may elect, the estaDiisn ment of a Federal reserve bank in any district, every subscribing member bank shall establish and maintain re serves as follows: (a) A bank not In a reserve or cen tral reserve city as now or hereafter defined shall bold and maintain re serves equal to 12 per centum of the aggregate amount of Its demana de posits and 5 per centum of its time de posits, as follows: In its vaults for a period of 36 months after said date five-twelfths thereof and permanently thereafter four-twelfths. In the Federal reserve bank of Its district, for a period of 12 months after said date, two-twelfths, and for eacn succeeding six months an additional one-twelfth.' until five-twelfths have been so deposited, which shall be the amount permanently required. For a period of 38 months alter saia date the balance of the reserves may be held In its own vaults, or In the Fed eral reserve bank, or In National banks in reserve or central reserve cities as now aeiinea Dy law. - After said 36 months' period said re serves, other than those hereinbefore required to be held In the vaults of the member bank and In the Federal re serve bank, shall be held in the vaults of the member bank or In the Federal reserve bank, or In both, at the option of the member bank. (b) A bank In a reserve city, as now or hereafter defined, shall hold and maintain reserves equal to 15 per centum of the aggregate amount of its demand deposits and 6 per centum of its time deposits, as follows: In its vaults for a period or 36 months after said date six-fifteenths thereof. and permanently thereafter five-fifteenths. x ' In the Federal reserve bank nt Its district for a period of 12 months after the date aforesaid at least three-fif-J teenths, and for each succeeding six months an additional one-fifteenth, un til six-fifteenths have been so depos ited, which shall be the amount perma nently required. For a period or bb months alter saia date the balance of the reserves may be held in Its own vaults, or in the Federal reserve bank, or in National banks In reserve or central reserve cities as now defined by law. After said 86 months' period all of said reserves, except those hereinbe fore required to be held permanently In the vaults of the member bank and in the FderaJ reserve bank, shall be held In its vaults or In the Federal reserve bank, or in both, at the option of the member bank. (c) A bank In a central reserve city, as now or hereafter defined, shall hold and maintain a reserve equal to 18 per centum of the aggregate amount of its demand deposits and 6 per centum of its time deposits, as follows: In its vaults six-eighteenths thereof. In the Federal reserve bank seven eighteenths. Reserve Deposits Optional. The balance of said reserves shall be held In Its own vaults or in the Fed eral reserve bank, at its option. Any Federal reserve bank may re ceive from the member banks as re serves, not exceeding one-half of each Installment, eligible paper as described in section 14 properly Indorsed and ac ceptable to the said reserve bank. It a state bank or trust company is required by the law of Its state to keep its reserves either in its own vaults or with another state bank or trust com pany, such reserve deposits so kept in such state bank or trust company shall be construed, within the meaning of this section, as if they were reserve deposits in a National bank in a reserve or central reserve city for a period of three years after the Secretary of the Treasury shall have officially an nounced the establishment of a Federal reserve bank in the district In which such state bank or trust company is situate. -Except as thus provided, no member bank shall keep on deposit with any nonmember bank a sum In excess of 10 per centum of its own paid-up capital and surplus. No mem ber bank shall act as the medium or agent of a nonmember bank in apply ing for or receiving discounts from a Federal reserve bank under the pro visions of this act except by permission of the Federal Reserve Board. The reserve carried by a member bank with a Federal reserve bank may, under the regulations and subject to such penalties as may be prescribed by the Federal Reserve Board, be checked against and withdrawn by such member bank for the purpose of meeting existing liabilities: Provided however, that no bank shall at any time make new loans or shall -pay any dividends unless and until the total reserve required by law Is fully re stored. ' Balances Counted as Reserves. In estimating the reserves required by this act, the net balance of amounts due to and from other banks shall be taken as the basis for ascertaining the deposits against which reserves shall be determined. Balances in reserve banks due to member banks shall, to the .extent herein provided, be counted as reserves. National banks located In Alaska or outside the continental United States may remain nonmember banks, and shall in that event maintain reserves and comply with all the conditions now provided by law regulating them; or said banks, except In the Philippine Islands, may, with the consent of the Reserve Board, become member banKs of any one of the reserve districts, and shall, in that event, take stock:, main tain reserves and be subject to all the other provisions of this act. Sec. 20. So much of sections 2 and 3 of the act of June 20, 1874, entitled "An act fixing the amount of United States notes, providing for a redistrl bution of the National bank currency, and for other purposes," as provides1 that the fund deposited by any Na tional banking association with the Treasurer of the United States for the redemption of Its notes shall be count ed as a part of its lawful reserve as provided In the act aforesaid Is hereby repealed. And from and after the. pass age of this act such fund of E per centum shall in no case be counted by any National banking association- as a part of its lawful reserve. Examinations Twice a Tear. Sec 21. Section 240, United States Revised Statutes, is amended to read as follows: The Controller of the Currency, with the approval of the Secretary of the Treasury, shall appoint examiners who shall examine every member bank at least twice in each calendar year and ' of tener if considered necessary: Pro vided, however, that the Federal Re serve Board may authorize examination by the state authorities to be accepted in the case of state banks and trust companies and may at any time direct the holding of a special examination of state banks or trust companies that are stockholders in any Federal re serve bank. The examiner making the examination of any National bank, or of any other member bank, shall have power to make a thorough examination of all the affairs of the bank and in doing so he shall have power to ad minister oaths and to examine any of the officers and agents thereof under oath and shall make a- full and de tailed report of the condition of said bank to the Controller of the Currency. The Federal Reserve Board, upon the recommendation of the Controller of the Currency, shall fix the salaries of all bank examiners and make report thereof to Congress. The expense of the examinations herein provided for shall be assessed by the Controller of the Currency upon the banks exam ined in proportion to assets or re sources held by the banks upon the dates of examination of the various banks. In addition to the examinations made and conducted by the Controller of the Currency, every Federal reserve bank may, with the approval of the Federal reserve agent or the Federal Reserve Board, provide for special examination of member banks within its district. The expense of such examinations shall be borne by the bank examined. Such examinations shall he so conducted as to Inform the Federal reserve bank of the condition of its member banks and ef the lines of credit which are being extended by them. Every Federal re serve bank shall at all times furnish to the Federal Reserve Board such In formation as may be demanded con cerning the condition of any member bank within the district of the said Federal reserve bank. No bank shall be subject to any visitatorial powers other than such as are authorized by law, or vested in the courts of justice or such as shall be or shall have been exercised or directed by Congress, or by either house there of or by any committee of Congress or of either house duly authorized. The Federal Reserve Board shall, at least once each year, order an examl nation of each Federal reserve bank. and upon joint application of 10 mem ber banks the Federal Reserve Board Shall order a special examination and report of the condition of any Federal reserve bank. Loans Denied Examiners. Sec 22. No member bank or any of ficer, director, or employe thereof shall hereafter make any loan or grant any gratuity to any bank examiner. Any bank officer, director, or employe vio lating this provision shall be deemed guilty of a misdemeanor and shall be Imprisoned not exceeding one year or fined not more than 35000, or both; and may be fined a further sum equal to the money so loaned or gratuity given. Any examiner accepting a loan or gra tuity from any bank examined by him or from an officer, director, or em ploye thereof shall be deemed guilty of a misdemeanor and shall be impris oned not exceeding one year or fined not more than 35000, or both; and may be fined a further sum equal to the money so loaned or gratuity given; and shall, forever thereafter be dis qualified from holding office as a Na tional bank examiner. No National bank examiner shall perform any other service for compensation while -hold lng such office for any bank or offi cer, director, or employe thereof. . Other than the usual salary or dl rector's fee paid to any officer, di rector, or employe of a member bank and other than a reasonable fee paid by said bank to such officer, director. or employe for services rendered to such bank, no officer, director, em ploye -or attorney of a member bank shall be a beneficiary of or receive, di rectly or Indirectly, any fee, commis sion, gift, or other consideration for or In connection with any transaction or business of the bank. No examiner, public or private, shall disclose the names of borrowers or tne collateral for loans of a member bank to other than the proper officers of such bank without first having obtained the ex press permission in writing from the Controller of tho Currency, or from the board of directors of such benk, except when ordered to do so by a court of competent jurisdiction, or by direction of the Congress of the United States, or of either House thereof, or any committee of Congress or of either House duly . authorized. Any person violating any provision of this section shall be punished by a fine of not ex ceeding $5000 or by Imprisonment not exceeding one year, or ootn. Except as provided In existing laws. this provision shall not take effect un til 60 days alter ue passage oi mis aot. See. 23. The stockholders of every National banking association shall be held Individually responsible for all contracts, debts, and engagements of such association, each to- the amount at his stock therein, at the par value thereof in addition to the amount ln-j vested In such stock. The stockholders! In any National banking association who shall have transferred" their shares or registered the transfer thereof within 60 days next before the date of the failure of such association to meet Its obligations, or with knowl edge of such impending failure, shall be liable to the same extent as if they had made no such transfer, to the ex tent that the subsequent transferee falls to meet such liability; but this provision shall not be construed to affect in any way any recourse which such shareholders might otherwise have ' against those in whose names such shares are registered at the time of such failure. Loans to Be Made on Farms. Sec. 24. Any National banking asso ciation not situated in a central re serve city may make loans secured by Improved and unencumbered farm land, situated within Its Federal reserve dis trict, but no such loan shall be made for a longer period than five years, nor for an amount exceeding B0 per centum of the actual value of the property offered as security. Any such bank may make such loans in an ag gregate sum equal to 25 per centum of its capital and surplus or to one third of its time deposits, and such banks may continue hereafter as here tofore to receive time deposits and to pay interest on the same. The Federal Reserve Board shall have power from time to time to add to the list of cities in which National banks shall not be permitted to make loans secured upon real estate in the manner described in this section. Foreign Branches Authorised. Sec. 25. Any National banking asso ciation possessing a capital and sur plus of $1,000,000 or more may file ap plication with the Federal Reserve Board, upon such conditions and under such regulations as may be prescribed by the said board for the purpose of se curing authority to establish branches In foreign countries or dependencies of the United States for the further ance of the foreign commerce of the United States, and to act, if required to do so, as fiscal agents of the United States. Such application shall specify, in addition to the name and capital of the banking association filing it, the place or places where the banking ope rations proposed are to be carried on, and the amount of capital set aside for the conduct of its foreign business. The Federal Reserve Board shall have power to approve or to reject such ap plication if, in Its Judgment, the amount of capital proposed to be set aside for the conduct of foreign busi ness is inadequate, or if for other rea sons the granting of such application is deemed inexpedient. Every National banking association which shall receive authority to estab lish foreign branches shall be required at all times to furnish information con cerning the condition of such branches to the Controller of the Currency upon demand, and the Federal Reserve Board may order special examinations of the said foreign branches at such time or times as it may deem best. Every such National banking associa tion shall conduct the accounts of each foreign branch Independently of the accounts of other foreign branches es tablished by it and of Its home office, and shall at the end of each fiscal period transfer to its general ledger the profit or loss accruing at each branch as a separate item. Fart of Old Law Repealed. Sec. 26. All provisions of law Incon sistent with or superseded by any ot the provisions of this act are to that extent and to that extent only hereby repealed: Provided, nothing in this act contained shall be construed to repeal the parity provision or provisions con tained in an act approved March 14. 1900, entitled "An act to define and fix the standard of -value, to maintain tho parity of all forms of money issued or coined by the United States, to refund the public debt, and for other purposes," and the Secretary of the Treasury may for the purpose of maintaining such parity and to strengthen the gold reserve, borrow gold on the security of United States bonds authorized by section & oi tne act last referred to or for one-year gold notes bearing interest at a rate of not to exceed 8 per cent per annum, or sell the same if necessary to obtain gold. When the funds of the treasury on hand Justify, he may purchase and re tire such outstanding bonds and notes. Sec. 27. The provisions of the act oi May 30, 1908, authorizing National cur rency associations, the issue of addi tional National bank circulation, and creating a National Monetary Commis sion, which expires by limitation under the terms of such act on June 30, 1914, are hereby extended to June 30, 1915, and sections 5253, 5172. G191 and E214 of the Revised Statutes of the United States, which were amended by the act of May 30, 1908, are hereby re-enacted to read as such sections read prior to May 30, 1908. subject to such amend The English Bull Terrier "London Lass" By Champion Noross Patrician ex-Champion "Virginalis Has Just Whelped a Beautiful Litter of Nine Pure White Puppies Sired by that Sterling Younirster, "London Lad of Won der." No finer blood nor finer specimens of this beau tiful breed can be found in any country. FOR QUICK SALE: DOGS, $25.00. BITCHES, $20.00. "London Lad of Wonder" In the Stud. Fee $15.00. Address W. G. INGRAM 543 Webster Street, Portland, Oregon. 1 v- f ' . i i' iM lift II llrf 1 This delightful "West Sifle home Is for sals at less than aotual cost. REASON: Mr Carl R. Grav Jr.. present owner, Is compelled. In connection with" Ills recent changa to 'the Burlington Railway, to make his reidence la Chicago. To any responnlble party we can offer most reasonabla terms, a rooms, grounds 75x100, modern sarace. View ot rivers, motin tains, city unsurpassed. JiEILAN PAKKHU.L, S03-4-S Stock Exchange bid., Third and Yamhill. ments or modifications as are pre scribed in this act. Provided further. That section 9 of the act first referred to in this section is hereby amended so as to change the tax rates fixed in caid act by making the portion appli cable thereto read as follows: National banking association having circulating notes secured - otherwise than by bonds of the United States, shall pay for the first three months a tax at the rate of 3 per cent per annum upon the average amount of such of their notes in circulation as are based upon the deposit of such securities. anJ afterward an additional tax rate of one half of 1 per cent per annum for each month until a tax of 6 per cent per annum is reached, and thereafter such tax of 6 per cent per annum upon the average amount of such notes. Capital Redaction Legalized. Sec 28. Section 5143 of the Revised Statutes is hereby amended and re-enacted to read as follows: Any asso ciation formed under this title may, by the vote of shareholders owning two thirds of its capital stock, reduce its capital to any sum not below tho amount required by this title to auth orize the formation of associations; but no such reduction shall be allowable which will reduce the capital of the as sociation below the amount required . for its outstanding circulation, nor shall' any reduction be made until the amount of the proposed reduction has been re ported to the Controller of the Currency and such reduction has been approved by the said Controller of the Currency and by the Federal Reserve Board, or by the organization committee pending the organization of the Federal Reserve Board. Sec. 29. If any clause, sentence, para- ; graph or part of this act shall for any reason be adjudged by any court of competent Jurisdiction to be invalid, such Judgment shall not affect, impair or invalidate the remainder of this act, but shall be confined in its opera tion to the clause, sentence, paragraph or part thereof directly involved in the controversy, in which such Judgment shall have been rendered. Sec. 30. The right to amend, alter or repeal this act Is hereby expressly reserved. Managers on the part of the Senate: ROBERT L. OWEN. J. A. O'GORMAN, JAMES A. REED. ATLEE POMERENE, J. F. 8HAFROTH, HENRf F. HOLLIS. Managers on the part of the House: CARTER GLASS. CHARLES A. KORBLT. PARCEL POST RATE ISSUED Reduction. Mad la Fonr Zones and Weight Limit Raised la Two. WASHINGTON. Dec 27. The office of the Third Assistant Postmaster-General has forwarded this week to nearly 60,000 postmasters information as to changes in parcel post rates and regu lations effective January 1. The orders provide for a reduction of rates In the third, fourth, fifth ana sixth zones, and for an increase ot the weight limit to 60 pounds on parcels mailed for deliv ery In the first and second zones. After March 16 books shall be em braced In the parcels of books weigh ing over eight ounces. On parcels of elght'ounces or less it will be required to pay 1 cent for each two ounces or fraction thereof. HILARITY COSTS $250,000 Estimate Made on What Chicago Will Pay to "Welcome) 1914. CHICAGO, Dec 27. Chicago will spend $260,000 New Tear's eve to wel come 1914. This is an estimate of res taurants and hotelkeepers and other purveyors of entertainment, 90 per cent of whose space already has been re served. All the best-known downtown places have planned elaborate festivities. JUDGE SHOT BY ' TRAMP Assailant of Missourlan Says He 19 A. Sampson, Glenn's Ferry, Idaho. ST. CHARLES, Mo., Dec 27. Henry C. Dlerker. ex-County Judge of St. Charles County, Missouri, was shot and dangerously wounded today by a tramp whom he attempted to drive from a schoolhouse near St. Charles. The "tramp later gave himself up, saying he was A. Sampson, of Glenn's Ferry. Idaho. V