63D CONGRESS, 1ST SESSION. H. R. 7837. STANFORD LIBPAY IN THE SENATE OF THE UNITED STATES. [The figures indented indicate the page of the bill in print showing proposed changes.] AN ACT TO PROVIDE FOR THE ESTABLISHMENT OF FEDERAL RESERVE BANKS, TO FURNISH HOUSE BILL. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the short title of this Act shall be the "Federal Reserve Act." FEDERAL RESERVE DISTRICTS. The terms "national bank" and "national banking association" used in this Act shall be held to be synonymous and interchangeable. The term "member bank" shall be held to mean any national bank, State bank, or bank or trust company which has become a member of one of the reserve banks created by this Act. The term "board" shall be held to mean Federal Reserve Board; the term "district" shall be held to mean Federal reserve district; the term "reserve bank" shall be held to mean Federal reserve bank. SECTION 2. FEDERAL RESERVE DISTRICTS. SEC. 2. That within ninety days after the passage of this Act, or as soon thereafter as practicable, the SEC. 2. That within ninety days after the passage of this Act, or as As soon thereafter as practicable, The Hitchcock amendment proposes to strike out all of section 2 of the House bill and insert the following: Sec. 2. That the Federal Reserve Board, hereinafter provided for, shall, as soon as practicable after their ap HOUSE BILL. SECTION 2-Continued. Secretary of the Treasury, the Secretary of Agriculture, and the Comptroller of the Currency, acting as "The Reserve Bank Organization Committee," shall designate from among the reserve and central reserve cities now authorized by law a number of such cities to be known as Federal reserve cities, and shall divide the continental United States into districts, each district to contain one of such Federal reserve cities: Provided, That the districts shall be apportioned with due regard to the convenience and customary course of business of the community and shall not necessarily coincide with the area of such State or States as may be wholly or in part included in any 2 given district. The districts thus created may be readjusted and new districts may from time to time be created by the Federal Reserve Board hereinafter established, acting upon a joint application made by not less than ten member banks desiring to be organized into a new district. The districts thus constituted shall be known as Federal reserve districts and shall be designated by number according to the pleasure of the organization committee, and no Federal reserve district shall be abolished, nor the location of a Federal reserve bank changed, except upon the application of three-fourths of the member banks of such district. The organization committee shall, in accordance with regulations to be established by itself, proceed to organize in each of the reserve cities designated as hereinbefore specified a Federal reserve bank. Each such Federal reserve bank shall include in its title the name of the city in which it is situated, as "Federal Reserve Bank of Chicago," and so forth. The total number of re OWEN AMENDMENT. the Secretary of the Treasury, the HITCHCOCK AMENDMENT. pointment and confirmation, designate from among the reserve and central reserve cities now established a number of such cities to be termed Federal reserve cities, and shall divide the continental United States into districts, each district to embrace one of 5 such Federal reserve cities: Provided, That the districts shall be formed with due regard to the convenience and customary course of financial and commercial business in each district, and need not necessarily coincide with State or county boundaries. The districts thus established shall be known as Federal reserve districts, and each of them shall be designated by the name of the Federal reserve city located therein. The organization committee-shall, The Federal Reserve Board in accordance with regulations to shall, as soon as practicable after the be established by itself, proceed to said districts have been established, organize in each of the reserve proceed to organize, conformable to eities designated as hereinbefore the provisions of this act, in each Fedspecified a Federal reserve bank eral reserve city designated as aforeEach such Federal reserve bank said, a Federal reserve bank, which shall include in its title the name shall be known by the name of the city of-the-eity in which it is situated, in which it is established, as, for examas Federal Reserve Bank of Chiple, "Federal Reserve Bank of Chieago, and-se-forth. The total cago." Four Federal reserve cities. HOUSE BILL. SECTION 2-Continued. OWEN AMENDMENT. number of reserve-eities designated-by-the-organiza tion committee shall be not less-than-twleve, and the organiza tion committee shall be authorized to employ counsel and expert aid, to take testimony, to send for per sons and papers, to administer oaths, and to make such investigations-as-may-be deemed necessary by the said committee for the pur pose of determining the reserve eities to be designated and organ izing the reserve districts herein before-provided. Every national bank located with- Every national bank located in a given district shall be required within a given district shall be re to subscribe to the capital stock of quired to subscribe to the capital the Federal reserve bank of that stock-of-the-Federal-reserve-bank district a sum equal to twenty per of that district a sum equal to centum of the capital stock of such twenty per centum-of-the-capital national bank fully paid in and un- stock of such-national-bank fully impaired, one-fourth of such sub- paid-in-and-unimpaired, one-fourth scription to be paid in cash and one- of-such-subseription-to-be-paid in fourth within sixty days after said eash-and-one-fourth-within-sixty subscription is made. The remainder of the subscription or any part thereof shall become a liability of the member bank, subject to call and payment thereof whenever necessary to meet the obligations of the Federal reserve bank under such terms and in accordance with such regulations as the board of directors of said Federal reserve bank may prescribe: Provided, That no days--after said-subscription-is Said organization committee shall as may be deemed necessary by 5 the said committee in determining the reserve districts and in determining the cities within such districts where such Federal reserve banks shall be severally located. The said committee shall supervise the organization, in each of the cities designated, of a Federal reserve bank, which shall include in its title the name of the city in which it is situated, as 66 Federal Reserve Bank of Chicago." Under regulations to be prescribed by the organization committee, every national banking association in the United States, including the trust companies engaged in commercial banking within the District of Columbia, is hereby required and every eligible bank is hereby authorized to signify in writing, within sixty days after the passage of this act, its acceptance HITCHCOCK AMENDMENT. and appurtenant to them four Federal reserve districts, and no more, shall in the first instance be designated and established as such by the Federal Reserve Board: Provided, That after Federal reserve banks have been organized and in operation for a period of two years in said four Federal reserve cities, the Federal Reserve Board may, in its discretion, from time to time, designate not to exceed in all eight additional Federal reserve cities, with the requisite Federal reserve districts appurtenant_thereto, and for that purpose may alter and change the limits and areas of existing Federal reserve districts. There shall allotted to every national bank be 6 within a Federal reserve district, of the capital stock of the Federal reserve bank of such district, a sum equal to six per centum of the fully paid-up capital stock and surplus of such national bank, which stock so allotted shall be underwritten by said bank and for a period of sixty days after allotment be offered for subscription at par to the public at large, but no more than one hundred shares shall be allowed to be subscribed for or held by any person, firm, or corporation and all of the allotted stock not subscribed for and taken by the public shall immediately be subscribed for and taken by the national bank to which the same was in the first instance allotted. The preparation, allotment, subscription to, and sale of stock shall be under the control of the board, which in case of oversubscription shall give preference to the smaller subscriptions. The national banks shall in the first instance act as agents of the Federal Reserve Board to take subscriptions from the general public and receive payment therefor which shall be held subject to the order of the board. |