shall not suspend the reserve_re- board-shall-not-suspend-the quirements with reference to Fed- reserve requirements---with-ref eral reserve notes.

(d) To supervise and regulate the issue and retirement of Federal reserve notes and to prescribe the form and tenor of such notes.

(e) To add to the number of cities classified as reserve and central reserve cities under existing law in which national banking associations are subject to the reserve requirements set forth in section twenty of this act; or to reclassify existing reserve and central reserve cities and to designate the banks therein situated as country banks at its discretion.

-reserve

erenee to Federalnotes. And provided further, That when the gold reserve held against Federal reserve notes falls below forty per centum, the Federal Reserve Board shall establish a graduated tax of not more than one per centum upon such deficiency until the reserves fall to thirty-two and one-half per centum, and when said reserve falls below thirty-two and one-half per centum, a tax at the rate increasingly of not less than one and onehalf per centum upon each two and one-half per centum or fraction thereof that such reserve falls below thirtytwo and one-half per centum. The tax shall be paid by the reserve bank, but the reserve bank shall add an amount equal to said tax to the rates of interest and discount fixed by the Federal Reserve Board.

(d) To supervise and regulate the issue and retirement of Federal re serve notes and to prescribe the form and tener of such notes. To

supervise and regulate through the bureau under the charge of the Comptroller of the Currency the issue and retirement of Federal reserve notes, and to prescribe rules and regulations under which such notes may be delivered by the comptroller to the Federal reserve agents applying therefor.

(e) To add to the number of cities classified as reserve and central reserve cities under existing law in which national banking associations are subject to the reserve requirements set forth in section twenty of this Act; or to reclassify existing reserve and central reserve cities and to designate the banks therein sit uated as country banks-at-its-diseretion or to terminate their designation as such.

(f) To suspend the officials of (f) To-suspend the officials of Federal reserve banks and, for Federal-reserve-banks and, for cause stated in writing with oppor- eause-stated-in-writing-with-op tunity of hearing, require the removal of said officials for incompetency, dereliction of duty, fraud, or deceit, such removal to be subject to approval by the President of the United States.

portunity of hearing, require the removal-of-said-officials-for-incom peteney, derelection of duty, fraud, or deeeit, such removal to be sub jeet to approval-by-the-President of the United States To suspend or remove any officer or director of any Federal reserve bank, the cause of such removal to be forthwith communicated in writing by the Federal Reserve Board to the removed officer or director and to said bank.

CONFERENCE AGREEMENT.

And provided further, That when the gold reserve held against Federal reserve notes falls below forty per centum, the Federal Reserve Board shall establish a graduated tax of not more than one per centum PER ANNUM upon such deficiency until the reserves fall to thirtytwo and one-half per centum, and when said reserve falls below thirtytwo and one-half per centum, a tax at the rate increasingly of not less than one and one-half per centum PER ANNUM upon each two and one-half per centum or fraction thereof that such reserve falls below thirtytwo and one-half per centum. tax shall be paid by the reserve bank, but the reserve bank shall add an amount equal to said tax to the rates of interest and discount fixed by the Federal Reserve Board.

The

(d) To

supervise and regulate through the bureau under the charge of the Comptroller of the Currency the issue and retirement of Federal reserve notes, and to prescribe rules and regulations under which such notes may be delivered by the comptroller to the Federal reserve agents applying therefor.

(e) To add to the number of cities classified as reserve and central reserve cities under existing law in which national banking associations are subject to the reserve requirements set forth in section twenty of this Act; or to reclassify existing reserve and central reserve cities or to terminate their designation as such.

(f) To suspend or remove any officer or director of any Federal reserve bank, the cause of such removal to be forthwith communicated in writing by the Federal Reserve Board to the removed officer or director and to said bank.

HOUSE BILL.

(g) To require the writing off of doubtful or worthless assets upon the books and balance sheets of Federal reserve banks.

(h) To suspend, for cause relating to violation of any of the provisions of this act, the operations of any Federal reserve bank and appoint a receiver therefor.

(i) To perform the duties, functions, or services specified or implied in this Act.

PASSED BY SENATE.

(g) To require the writing off of doubtful or worthless assets upon the books and balance sheets of Federal reserve banks.

(h) To suspend, for cause relating to violation of any of the provisions of this Act, the operations of any Federal reserve bank and appoint a receiver-therefor take possession thereof and administer the same during the period of suspension.

(i) To require bonds of Federal reserve agents, perform the duties, functions, or services specified or implied in this Act, and to make all rules and regulations necessary to enable said board effectively to perform the same.

(i) To exercise general supervision over said Federal reserve banks.

(k) To authorize member banks to use, as reserves, Federal reserve notes, or bank notes based on United States bonds, to the extent that said board may find necessary.

(1) To grant by special permit to national banks applying therefor, when not in contravention of State or local law, the right to act as trustee, executor, administrator, or registrar of stocks and bonds under such rules and regulations as the said board may prescribe.

(m) To employ such attorneys, experts, assistants, clerks, or other employees as may be deemed necessary to properly conduct the business of such board, and to accomplish the purposes of this Act. All salaries, allowances, and expenses of those employed to be fixed in advance by said board and to be paid in the same manner as the salaries of the members of said board. All such attorneys, experts, assistants, clerks, and other employees to be appointed without regard to the provisions of the Act of January sixth, eighteen hundred and eighty-three (Twenty-second Revised Statutes, four hundred and three), and amendments thereto, or any rule or regulation made in pursuance thereof: Provided, That nothing herein shall prevent the President from placing said employees in the classified service.

CONFERENCE AGREEMENT

(g) To require the writing off of doubtful or worthless assets upon the books and balance sheets of Federal reserve banks.

(h) To suspend, for [cause relating to] THE violation of any of the provisions of this Act, the operations of any Federal reserve bank, [and] To take possession thereof, [and] administer the same during the period of suspension, AND, WHEN DEEMED ADVISABLE, TO LIQUIDATE OR REORGANIZE SUCH BANK.

(i) To require bonds of Federal reserve agents, TO MAKE REGULATIONS

FOR THE SAFEGUARDING OF ALL COLLATERAL, BONDS, FEDERAL RESERVE NOTES, MONEY OR PROPERTY OF ANY KIND DEPOSITED IN THE HANDS OF SUCH AGENTS, AND SAID

BOARD SHALL perform the duties, functions, or services specified [or implied in this Act, and [to] make all rules and regulations necessary to enable said board effectively to perform the same.

(i) To exercise general supervision over said Federal reserve banks.

[(k) To authorize member banks to use, as reserves, Federal reserve notes, or bank notes based on United States bonds, to the extent that said board may find necessary.]

(K) To grant by special permit to national banks applying therefor, when not in contravention of State or local law, the right to act as trustee, executor, administrator, or registrar of stocks and bonds under such rules and regulations as the said board may prescribe.

[(m)](L) To employ such attorneys, experts, assistants, clerks, or other employees as may be deemed necessary to properly conduct the business of [such ]THE board, and to accomplish the purposes of this Act]. All salaries, allowances, and expenses of those employed to] AND FEES SHALL be fixed in advance by said board and [to] SHALL be paid in the same manner as the salaries of the members of said board. All such attorneys, experts, assistants, clerks, and other employees [to] SHALL be appointed without regard to the provisions of the Act of January [sixth] SIXTEENTH, eighteen hundred and eighty-three (Twenty-second Revised Statutes,] VOLUME TWENTY-TWO, UNITED STATES STATUTES AT LARGE, PAGE four hundred and three), and amendments thereto, or any rule or regulation made in pursuance thereof: Provided, That nothing herein shall prevent the President from placing said employees in the classified service.

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