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About Coquille herald. (Coquille, Coos County, Or.) 1905-1917 | View Entire Issue (Jan. 13, 1914)
Q T h e Herald, the o ld estab-
liihed reliable newspaper of
the Gxjuille V alley in which
an “ ad always brings results.
V O L. 32.
T he C oquille H erald
C O Q U I L L E , C O O S C O U N T Y , O R E G O N , T U E S D A Y , J A N U A R Y 13, 1914.
N O . 16
exercise the powers and duties apper
taining to the office of chairman In the
organization o f such federal reserve
No senator or representative in con
gress shall be a member of federal re
serve board or an officer or u director
o f a federal reserve bank.
No director of Class B shall be an
officer, director or employee o f any
No director o f Class C shall be an
officer, director, employee or stock
holder o f any bank.
Class C directors shall be appointed
by the federal reserve board. They
shall have been for at least two years
residents o f the district for which
they are appointed, one of whom
shall be designated by said board as
chairman o f the board of directors of
the federal reserve bank and as “ fed
eral reserve agent.” * He shall be a
person of tested banking experience,
and in addition to his duties as chair
man o f the board o f directors of the
federal reserve bank he shall be re
quired to mnintuin under regulations
to be established by the federal reserve
board a local office of said board on
the premises of the federal reserve
Sec. 5. The capital stock o f each fed
eral reserve bank shall be divided into
shares o f $100 each.
this requirement. Whenever a vacan
RESERVE BANK POWERS.
cy shall occur other than by expiration
of term among the six mem hen o f the
P r in c ip a l F u n c t io n s o f th e N e w R e
Fraternal and Benevolent Orders
federal reserve board appointed by the
g io n a l In s tit u t io n s .
president, as above provided, a succes
F. 4 A. M.—Renulsr meeting of
Sec. 13. Any federal reserve bank
sor shull be appointed by the president,
. Chadwick Lodite No. 88 A. F. A A.
with the advice and consent of the may receive from any o f Its member
M.. at Masonic Hall, every Ba'urday
banks and from the United States de
night in each month on or before the
senate, to fill such vacancy.
D. I). P iebce , W. M.
The president shall have power to posits o f current funds in lawful mon
ey, national bank notes, federal reserve
K. H. M ast . Secretary.
fill all vacancies that may happen on
the federal reaerve hoard during the notes or checks and drafts upon mem
E. S.—Regular meeting of Beulah
ber banks, payable upon presentation
recess of the senate by granting com
. Chapter No. 6, second and fourth
missions which shall expire thirty day« or solely for exchange purposes may
Friday evenings of each month, in Ma
receive from other federal reserve
after the next aeaslon of the senati
banks deposits of current funds in
M ahy A. P iehce , W. M.
lawful money, national bank notes or
A nna L a w ren c e S e c .,
Eight to Twelve
Chief Feature* of
checks and drafts upon solvent mem
O. O. F.—Coquille Lodge No. 63, 1. O.
RESERVE BOARD POWERS.
New Fedora) Re.
ber or other federal reserve banks
. O. F., meets every Saturday night
payable upon presentation.
to Be Establish
n Odd Fellows Hall.
serve Act Here
H a s C o n t r o llin g H a n d on B a n k in g of
Upon the indorsement o f any o f its
C. H. C l e a v e » , N. G.
th « N a tio n .
member banks, with a waiver of de
J. 8. L a w r e n c e , 8ec.
ed In Various
Sec. 11. The federal reserve board mand notice and protest by such bank,
a m i e k k b e k a h l o d g e , No. 20
shall be authorized and empowered:
P a rts of the
eral R ese rve
any federal reserve bank may dis
I. O- O. F., meets every second and
(a) To examine at its discretion the count notes, drafi4, and hills o f ex
Land — Enacts
fourth Wednesday nights in Odd FellowB
Board of Seven
accounts, books and affairs o f each change arising out o f
E m il y H e k s e y , N. G,
federal reserve bank ami of each mem clal transactions—that is. n e rs. ’ rafts
Members to Su
A nnis L a w r e n c e , Sec.
ber bank and to require such state
and bills of exchange issued o r drawn
ments and reports as it may deem
/'■'OQUILI.E ENCAMPMENT, No. 25
for agricultural, Industrial or commer
necessary. The said board shall pub
I. O. O. F., meets the first and third
With Regard to
System of the
lish once each week a statement show cial purposes or the proceeds of which
Thursday nights in Odd Fellows Hall.
J. 8 . B ab ton , O . ? .
ing the condition of each federal re have been used or are to be used for
B. L. OWEN.
J . S .L aw kb n cb , Sec.
serve bank and a consolidated state such purposes, the federal reserve
ment for all federa! reserve banks. board to have the right to determine
n i g h t s o f p y t h i a s . —Lycurgus
statements shall show in detail or define the character o f the paper
Lodge No. 72, meets Tuesday nights
and liabilities of the federal thus eligible for discount within the
in \V. O. W. Hall.
reserve banks, single and combined, meaning of this act. Nothing in this
HE federal reserve act Is now a shall extublish branch banks within
R. R. W atbon , K R. S.
and shall furnish full information re act contained shall be construed to
D iv is i o n o f E a r n in g s .
part o f the law o f the land. the federal reserve district iu which
O . A. M in t o n y e , C. C.
With President Wilson's signa it is locuted and may do so in the dis
Sec. 7. After all necessary expenses garding the character of the money prohibit such notes, drafts and bills of
T jY T H IA N SISTERS—Justus Temple
ture to the new Glass-Owen trict of any federul reserve bank of a federal reserve bank have been held as reserve and the amount, na exchange secured by staple agricul
1 No. 35, meets first and Third Mon currency reform bill the country looks
which may have been suspended. paid or provided for, the stockhold ture and maturities of the paper and tural products or other goods, wares
day nights iu W. O. W. Hall.
forward to the practical working out Such branches shall be operated by a ers shall be entitled to receive an other Investments owned or held by or merchandise from being eligible for
M bs . G bokob D a v i s , M. E. C.
such discount, but such definition shall
of the u ct The law is in part as fol board of directors under the rules and annual dividend of 0 per centum on federal reserve banks.
Mas. F r e d L in e o a k , K. of R.
(b) To permit or on the affirmative not include notes, drafts or bills cov
fcgulations approved by the federal the paid In capital stock, which divi
ED MEN— Coquille Tribe No, 46, 1.
ering merely investments or issued or
An act to provide for the establish reserve board.
Directors of branch dend shall be cumulative. After the
O. R. M., meetB every Friday night ment o f federal reserve banks to fur banks shall possess the same qualifi
reserve board to require federal re drawn for the purpose of carrying or
aforesaid dividend claims have been
1 n W. O. W. Hall.
trading In stocks, bonds or other In
nish an elastic currency, to afford cations as directors of the federal re fully met nil net earnings shall be paid
J. S. B ar ton , Sachem.
means of redis
serve banks. Four o f said directors to the United States as a franchise ed paper o f other federal reserve vestment securities except bonds and
A. P. M ili . b r . C. of R.
notes of the government of the United
shall be selected by the reserve bank tax, except that one-half o f such net
States. Notes, drafts and hills admit
W. A.—Regular meetings of Bea- cial paper, to es
and three by the federal reserve board, earnings shall be paid into a surplus by the federal reserve board.
• ver Camp No. 10.550 in M. W . A. tablish a more ef-
ted to discount under the terms o f this
and they shall hold office during the fund until It shall amount to 40 per
Hall, Front street, first and third Sat f e c t i v e super
pleasure, respectively, of the parent centum o f the paid in capital stock of ceeding thirty days, and from time to paragraph must have a maturity at
urdays in each month.
the time of discount of not more than
vision o f banking
bank and the federal reserve board. such bank.
C. D. H u d so n , Consul.
riods not exceeding fifteen days, any
In the U n i t e d
The reserve bank shall designate one
The net earnings derived by the Unit reserve requirement specified In this ninety days, provided that notes,
R. B. R o g e r s , V. O.
S t a t e s and for
o f the directors as manager.
ed States from federal reserve banks act: Provided, that it shall establish a drafts and bills drawn or Issued for
L l H. I r v in e , Clerk.
agricultural purposes or based on live
Sec. 4. * * * Upon the filing of * * * shall, In the discretion o f the secretary,
graduated tax upon the amounts by
N. A.—Regular meeting of Laurel
stock and having a maturity not ex
That the short
certificate with the comptroller o f the be used to supplement the gold reserve
which the reserve requirements of this
• Camp No. 2972 at M. W . A . Hall, title o f this act
currency * * * the said federal re held against outstanding United States act may be permitted to fall below ceeding six months may he discounted
Front street, second and fourth Tues shall be the “ fed
serve bank shall become a body cor notes, or shall be applied to the re the level hereinafter specified; and In an amount to be limited to a per
day nights in each month.
eral reserve act.”
porate and us such and in the name duction o f the outstanding bonded in
M a r y K e r n , Oracle.
provided, further, that when the gold centage o f the capital of the federal
Sec. 2. As soon
designated In such organization cer debtedness o f the United States. Re reserve held against federal reserve reserve bank, to be ascertained and
E d na K e l l e y , Rec.
as practicable the @ 1913> by -American tificate shall have power—
serve banks shall not be taxed except notes falls below 40 per centum, the fixed by the federal reserve board.
O. W .— Myrtle Camp No. 197, secretary of the
F irst—To adopt and use a corporate upon real estate.
federal reserve board shall establish a
D is c o u n t in g A c c e p ta n c e s.
• meets every Wednesday at 7 :30 treasury, the sec-
THE p r e s id e n t .
Section 8 amends the existing bank graduated tax o f not more than 1 per
Any federal reserve hank may dis
p. m. at W. O. W . Hall.
retary of agriculture and the comp
Second.—To have succession for a pe ing laws, so that stockholders owning centum upon such deficiency until the count acceptances which are based on
Lee Currie, C. C.
troller o f the currency, acting as “ the riod of twenty years from Its organiza 51 per cent of the stock of banks other reserves fall to 32% per centum, and the importation or exportation or do
J o h n L e n k v e , Sec.
reserve bank organization committee,” tion unless it Is sooner dissolved by an than national banks can couvert their when said reserve falls below 32Vi mestic shipment o f goods and which
VENINGTIDE CIRCLE N o . 214, shall designate not less than eight nor act of congress or unless Its franchise organizations into national banks.
per centum, a tax at the rate increas have a maturity at time o f discount of
meets second and fourth Monday more than twelve cities to be known as becomes forfeited by some violation of
Section 9 describes how state banks ingly o f not less than 1 y3 per centum not more than three months and in
nights in W . O. W. Hall.
federal reserve cities, and shall divide law.
may become members o f reserve banks. upon each 2% per centum or fraction dorsed by at least one member bank.
O b a X . M a u r y , G. N.
thereof that such reserve falls below The amount of acceptances so dis
the continental United States, exclud
Third.—To make contracts.
M a r y A. P ie r c e , Clerk.
32% per centum. The tax shall be paid counted shall ut no time exceed oue-
ing Alaska, into districts, each district
Fourth.—To sue and be sued, com
by the reserve bank, but the reserve balf the paid up capital stock and sur
ARMERS UNION.— Regular meet to contain only one o f such federal re plain and defend. In any court o f law
bank shall add an amount equal to plus o f the hank for which the re
ings second and fourth Saturdays in serve cities.
said tax to the rates o f interest and discounts are made.
each month in W. O. W. Hall.
Fifth.—To appoint by its board of
F r a n k B u r k h o l d e r , Pres.
discount fixed by the federal reserve
directors, elected as hereinafter pro
The aggregate o f such notes and
O. A. M in t o n y e , Sec.
NAMING RESERVE BANKS.
Sec. 10. A federal reserve board Is board.
vided, such officers as are not other
bills bearing the signature or indorse
wise provided for in this act, to define hereby created, which shall consist of
ment of any one person, company or
r a t e r n a l a i d N o . 398, meets the T o T a k e T it le o f P r in c ip a l C it y In R e
the bureau under the charge of the
their duties, require bonds of them and seven members. Including the seere
firm or corporation rediscounted for
second and fourth Thursdays each
s e r v e D ist r ic t .
fix the penalty thereof, to dismiss such tary o f the treasury and the comptrol
any one bank shall at no time exceed
month at W. O. W . Hall.
The said committee shall supervise officers or any o f them as may be ap ler of the currency, who shall be mem
10 per centum of the unimpaired capi
M r s . C h a s . E v i . a n d , P res.
the organization In each of the cities pointed by them at pleasure and to ap bers ex officio, and five members ap notes, and to prescribe rules and regu tal and surplus of said bank, but this
M r s . L o r a H ar h in u to n , S ec.
pointed by the president of the Unit lations under which such notes may restriction shall not apply to the dis
designated o f a federal reserve bank, point others to fill their places.
which shall Include in its title the
Sixth.—To prescribe by its board of ed States, by and with the advice and be delivered by the comptroller to the
Educational Organizations and Clubs name o f the city In which It is situat directors bylaws not inconsistent with consent o f the senate. In selecting the federal reserve agents applying there count o f bills of exehunge drawn In
good faith against actually existing
O Q U I L L E E D U C A T I O N A L ed. as "Federal Reserve Bank o f Chi law regulating the manner In which i\> five appointive members o f the federal for.
general business may be conducted reserve hoard not more than one of
(e) To add to the number o f cities
LEAGUE—Meets mom lily at the cago.”
Any member bank may accept drafts
Under regulations to be prescribed by and the privileges granted to it by law whom shall be selected from any one classified as reserve and central re or bills of exchange drawn upon It
High School Building during the school
Year for the purpose 01 discussing euu- the organization committee every na may be exercised and enjoyed.
serve cities under existing law In and growing out o f transactions in
Seventh.—To exercise by Its board of shall have due regard to a fair repre
which national banking associations volving the importation or exportation
tional hanking association In the Unit
hKNA ANDERSON, 1'ieS.
are subject to the reserve require of goods having not more than six
ed States Is hereby required and every directors or duly authorized officers or
l . dn a M in a k d , S e c.
ments set forth in section 20 of this months sight to run, but no bank shall
eligible hank In the United States and agents all powers specifically granted
O KEEL KLUB—A business men’s every trust company within the Dis by the provisions of this act and such bers o f the federal reserve board ap act, or to reclassify existing reserve accept such bills to an amount equal
pointed by the prcsh le^ and confirmed and central reserve cities or to termi
social organization. Hall in i-airiPs trict o f Columbia Is hereby authorized
at any time In the aggregate to more
building, Second street.
to signify in writing within sixty days to carry on the business o f banking as aforesaid shall devote their entire nate their designation as such.
than one-half of its paid up capital
A. J. S h er w oo d . P,,es.
after the passnge of this act its ac
(f) To suspend or remove any officer stock and surplus.
F r e d S la o l e , S e ,.
ceptance o f the terms and provisions
or director of any federal reserve
O p e n M a r k e t O p e r a tio n s.
Eighth.—Upon deposit with the trens auntial salary of $12,000, together with bnnk, the cause of such removal to be
o m m e r c ia l c l u b
j . e . N orion
Sec. 14. Any federal reserve bank
When the organization committee
forthwith communicated In writing by
President; J. C. SAfAfaR, Secretary
o f the United States in the manner nml the comptroller o f the currency,
may, under rules and regulations pre
shall have designated the cities in
the federal reserve board to the re
provided by existing law reluting to as ex officio member o f the federal re
scribed by the federal reserve board,
which federal reserve banks are to be
national banks to receive from the serve board, shall In addition to the
purchase and sell in the open market
organized and fixed the geographical
at home or abroad, either from or to
RAINS —iAiave, south bound 9:00 a. limits o f the federal reserve districts comptroller of the currency circulating salary now paid him as comptroller of
notes in blank, registered und counter
m. and 3:00 p. m. North bound
every national banking association signed as provided by law. equal in the currency, receive the sum o f $7.000 doubtful or worthless assets upon the domestic or foreign banks, firms, cor
il):40 a. m. and 4:40 p. m.
within that district shall be required amount to the par value o f the bonds annually for his services as a member books and balance sheets of federal porations or individuals, cable trans
fers and bankers’ acceptances and
O A T S —Six boats plying on the Co-
within thirty days after notice from so dei>osited. such notes to be issued of said board. The members o f said reserve banks.
board, the secretary o f the treasury,
quille river afford ample accommo the organization committee to sub under the same conditions and provi
(h) To suspend, for the violation of bills o f exchange of the kinds and ma
the assistant secretary o f the treasury
dation lor carrying freight and passen
scribe to the capital stock of such fed
any o f the provisions of this act, the turities by this act made eligible for
gern to Bandon and way points. Boats eral reserve bank In n sum equal to 0 sions of law which relate to the issue vind the comptroller o f the currency
rediscount with or without the indorse
of circulating notes of national banks shall he Ineligible during tile time they operations o f any federal reserve
I eave at 7 :30, 8 :30, 9 :20 and 9 :C0 a. m.
I»er cent o f the paid up capital stock secured by bonds of the United States
bank, to» take possession thereof, ad ment of a member bank.
and at 1:00, 3 :30 and 4 :45 p. u..
are In office and for two yenrs thereaft
Every federal reserve bank shall
and surplus o f such bank.
minister the same during the period of
bearing the circulating privilege, ex
er to hold any office, position or em
TAGE—J. L. Laird, proprietor. De
Any national hank falling to signify cept that the Issue o f such notes shall
suspension and when deemed advisa have power:
(a) To deal In gold coin and bullion
parts 5:30 p. m. for Itoseburg via its acceptance of the terms of this act not be limited to the amount o f the
ble to liquidate or reorganize such
Myrtle Point,carrving the United Slates within the sixty days aforesaid shall capital stock o f such federal reserve the five members thus appointed by bank.
at home or nbrond. to make loans
mail and pasengers.
cease to act as a reserve agent upon bank.
(I) To require bonds o f federal re thereon, exchange federal reserve
Hut no federal reserve bank shall persons experienced In banking or serve agents, to make regulations for notes for gold, gold coin or gold cer
OSTOFFICE.—A. F. Linegar, post thirty days’ notice to he given within
master. The mails close as I0II0 W1 : the discretion of the said organization transact any business except such as
the safeguarding of all collateral, tificates and to contract for loans o f
Myrtle Point 8:40 a. m. and 2:35 p. m. committee or o f the federal reserve Is incidental and necessarily prelimi the president to serve for two, one for bonds, federal reserve notes, money or gold coin or bullion, giving therefor,
Marshfield 10:15 a. m. and 4:15 p. 111. board.
nary to its organization until It has
property of any kind deposited In the when necessary, acceptable security,
for ten, and thereafter each member
Bandon and way points, Norway and
Should any national hanking associa been authorized by the comptroller of so appointed shall serve for a term of hands o f such agents, and said board including the hypothecation of United
Arago 12:45 p. in. Eastern mail 4:45
tion in tAo United States now organ the currency to commence business un ten years unless sooner removed for shall perform the duties, functions or States bonds or other securities which
a. m. Eastern mail arrives 10: a. m.
services specified in this act and to federal reserve banks are authorized
ised fail within one year after the pas der the provisions of this a ct
cause by the president O f the five
sage o f this act to become a member
City and County- Officers
persons thus appointed one shnll he make all rules aud regulations neces
(b) To buy and sell at home or abroad
sary to enable said board effectively
bank under the provisions hereinbefore
CLASSES OF DIRECTORS.
designated by the president as gov
bonds and notes of the United States
stated or fail to comply with any of
ernor and one as vice governor of the to perform the same.
the provisions of this net applicable
(J) To exercise general supervision and bills, notes, revenue bonds and
................IR. tl. Mast thereto all of the rights, privileges and B o a r d o f N in e to C o n tro l E a c h R e s e rv e federal reserve board. The governor over said federal reserve banks.
warrants with a maturity from date
o f the federal reserve honrd, subject to
(k) To grant by special permit to na o f purchasing o f not exceeding six
Every federal reserve bank shall be Its supervision, shnll be the acting ex
..... P. M. Hall-Lewis franchises of such association granted
tional banks applying therefor, when months, issued in anticipation of the
to It under the national hank net or un conducted under the supervision and ecutive officer.
Marshal................... ....... C. A. FJveniden
not In contravention of state or local collection of taxes or in anticipation o f
Night Marshal..................... John Hurley der the provisions of this act shall be control of a board of directors.
The federal reserve board shall have
the receipt o f assured revenues by any
law, the right to act as trustee, ex
Water Superintendent ,S. V. Epperson thereby forfeited.
Such board o f directors shall be se power to levy semiannually upon the
ecutor. administrator or registrar o f state, county, district, political subdi
Fire Cliie;....................... Walter Oerding
No Individual, copartnership or cor
lected as hereinafter specified and shall federal reserve banks In proportion to
stocks and bonds under such rules and vision or municipality In the conti
Councilmen—D. D. Pierce, C. T. Skeels poratlon other than a member hank
W. C. Laird, G. O. Leach, W. H. Ly of its district shall be permitted ts consist of nine members, holding office their capital stock and surplus an as regulations as the said board may pre nental United States, including Irriga
ons, Leo J. Cary. Regular meetings
tion. drainage and reclamation dis
first and third Mondays eacli month. subscribe for or ts hold at any time classes, designated as Classes A, B expenses and salaries of its members
(l) To employ such attorneys, ex tricts. such purchases to be made in
more than $10,000 par value of stock and C.
and employees for the bulf year sue
perts, assistants, clerks or other em accordance with rules and regulations
111 any federal reserve bank. Such
Class A shall consist of three mem ceeding the levying of such assessment, ployees ns may be deemed necessary
Justice of the Peace.......... J. J. Stanley stock shall be known ns public stock
prescribed by the federal reserve
to properly conduct the business of board;
Constable............. .............Ned C. Kelley
snd may l>e transferred on the books representative o f the stock holding ward from the preceding half year.
the board. All salaries and fees shall
(c) To purchase from member banks
of the federal reserve bank by the banks.
The first meeting o f the federal re be fixed in advance by said board and
and to sell, with or without Its in
.................. John T. Hall chairman o f the board of directors of
Class B shall consist of three mem serve hoard shall be held in Washing shall be paid In the same manner as
Coinmissioners- •WT. T. Dement, Geo. J. such hank.
dorsement. bills o f exchange arising
bers, who at the time of their election ton, District o f Columbia, as soon as the salaries of the members o f said
•nit of commercial transactions as
may he after the passage o f this act at board.
All such attorneys, experts, hereinbefore defined:
C lerk.................. ...............Janies Watson
Sheriff............ — ...................W . W. Gage banks and the public be Inadequate trict iu commerce, in agriculture or in a date to he fixed by the reserve bank assistants, clerics and other employees
(d) To establish from time to time,
the government Itself may subscribe some other industrial pursuit
organization committee The secretary shnll be appointed without regard to
subject to review and determination
T. J. Thrift for stock. Stock not held by member
Class C shall consist o f throe mem of the treasury shall he ex ofHclo chair the provisions o f the act o f Jan. 16,
banks shall be voted by Class C direc bers. who shall be designated by the man o f the federal reserve hoard. No 1883 (volume 22. United States stat o f the federal reserve board, rates of
federal reserve board. When the nec member of the federal reserve board utes at large, page 403». and amend discount to be charged by the federal
essary subscriptions to the capital shall he an officer or director o f any ments thereto or any rule or regulation reserve bnnk for each class of paper,
which shnll he fixed with a view of ac
RESERVE BANK BRANCHES. stock have been obtained for the or bank, hanking institution, trust com made in pursuance thereof.
commodating commerce and business:
ganization for any federal reserve puny or federal reserve bank nor bold
Section 12 creates a ftsleral advisory
(e> To establish accounts with other
R e g io n a l
In s t it u t io n «
E m p o w e r e d te bank the fisleral reserve board shall stock In any bnnk. hanking Institution council, consisting of one member
federal reserve banks for exchange
Societies will get the very best
appoint the Class C directors and shall or trust company, and before entering from each federal reserve district,
E s t a b lis h 8 u b - B a n k s .
purposes and. with the » on<ent of the
No federal reserve bank «hall com designate one o f such directors as upon his duties as a member o f the wtdeh is empowered to confer with federal reserve !>oard. t»» open and
P R I N T I N G
mence business with a subscribed cap chairman o f the board to be selected. federal reserve board he shall certify the federal reserve board and make maintain banking accounts in foreign
at the office o f Coquille Herald
Pending the designation of such chair under oath to the secretary o f the representations regarding the business countries, appoint correspondents and
ital leas In amount than $3.000,000.
man the organization committee shall I treasury lltat be has compiled rltb o f the board.
Sec. 8. Each fe d e ra l re s e r v e b a n k
establish agencies In such countries
VITAL L TO WHOLE NATION
P E R Y E A R $ 1 .5 0
wheresoever it my deem best for the
purpose o f purchaslug. selling and col
lecting bills of exchange, and to buy
and sell with or without its Indorse
ment through such correspondents or
agencies, bills o f exchange arising out
o f actual commercial transactions
which have not more than ninety days
to run and which bear the signature
o f twe or more responsible parties.
Section 15 provides that moneys held
in the general fund of the United
States treasury, except the 5 per cen
tum fund for the redemption o f out
standing national bank notes and the
funds provided in the act for the re
demption of federal reserve notes,
may be deposited In federal reserve
banks which shall act as fiscal agents
and that the funds o f the Philippine
Islands, the postal savings and any
other government funds must be de
posited in federal reserve banks.
Section 16 provides for'th e issuance
o f federal reserve notes to federal re
serve banks, redeemable in gold on de
mand at the treasury department or
In gold or lawful money at any fed
eral reserve bank. The collateral se
curity shall be notes and bills accept*
ed for rediscount under section 13.
Federal reserve banks shall have a
gold reserve o f 40 per cent of their
federal reserve notes and shall main
tain in the United States treasury in
gold a reserve o f not less than 5 per
cent o f the federal reserve notes for
Section 17 repeals laws requiring na
tional banks to deposit government
bonds with the United States treasurer.
Section 18 provides a plan for retir
ing the 2 per cent bonds on which the
present currency is based. Under the
plan $25,000,000 worth o f these bonds
will be purchased each year, beginning
two years after the system is placed in
operation, by the new regional banks
from member banks. On one-half o f
Its holdings each regional bank may is
sue currency. The remainder will be
refunded In 3 per cent thirty year
bonds or 3 per cent one year treasury
notes, which the banks must agree to
renew each year for thirty years.
Section 19 describes how member
banks shall establish and maintain re
Section 21 provides for the examina
tion of each member bank by the
comptroller of the currency at least
twice a year, for a special examination
o f member banks when desired by
federal reserve banks and for a spe
cial examination of any federal re
serve bank upon the application of
ten member banks.
PENALTY FOR DISHONESTY.
T a m p e r in g W it h B a n k E x a m in e r s M a d e
C r im in a l O ffense.
Sec. 22. No member bank or any
officer, director or employee thereof
shall hereafter make any loan or
grant any gratuity to any bank ex
Any bank officer, director
or employee violating this provision
shall be deemed guilty of a misde
meanor and shall be imprisoned not
exceeding one year or fined uot more
than $5,000. or both, may be fined a fur
ther sum equal to the money so loan
ed or gratuity given. Any examiner
accepting a loan or gratuity from any
bank examined by him or from an
officer, director or employee thereof
shall be deemed guilty o f a misde
meanor and shall be imprisoued not
exceeding one year or fined uot more
than $5,000. or both.
Section 23 provides that national
bank stockholders shall he responsible
for all contracts, debts and engage
ments of their hanks to the amount of
their stock at par value in addltiou to
the amount Invested In nir I i stock.
If they transfer their stock within
sixty days before the failure o f their
banks they shall he liable to the same
extent In case the transferee fails to
meet such liability.
L o a n s on F a r m L a n d s .
Sec. 24. Any national hanking as
sociation not situated iu a central
reserve city may make loans secur
ed by improved aud unencumbered
farm land situated within Its fed
eral reserve district, but no such loan
shall be made for a longer time than
five yenrs nor for an amount exceeding
50 per centum of the actual value o f
the property offered ag security. Any
such bnnk may make such loans in an
aggregate 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
pay Interest on the same.
The federal reserve board shall have
power from time to time to add to the
list o f cities In which national banka
■hall not be permitted to make loans
secured upon real estate In the man
ner described in this section.
Section 25 authorizes national bank
ing associations possessing a capital
and surplus o f $1,000,000 or more to es
tablish foreign branches under the di
rection o f the federal reserve board.
Rectlou 26 authorises the secretary
of the treasury to strengthen the gold
reserve by borrowing gold on United
States bonds or by selling them.
Section 27 extends from June 80,
1014. until June 80. 1915, the life o f an
act authorizing national currency as
sociations, the issuance o f additional
national bank circulation and the cre
ation o f a national monetary commis
it re-enacts certain United
S ta b« banking statutes amended by
an act o f May 30. 1908, subject to such
amendments or modifications as are
contained in the new currency law It
amends the May 30, 1908, act Ut re
gard to the taxation o f circulating
notes held by national banking aaeo-
ciatious and secured otherwise than
by United States bonds.
Section 29 provides that if any part
of the act Is declared invalid by *
court the Judgment shall not affect th#
remainder o f the a c t