Page:United States Statutes at Large Volume 40 Part 1.djvu/256

 SIXTY·FIFTH coxemass. sm. 1. ca. 32. 1917. 237 through which they were or`¤·ina]ly issued, and thereu on such Federal reserve bank shall, upon ldemand of the Secretary ofp the Treasury, reimburse such redemption fund in lawful money or, if such Federal _ Rpimbumemeut by reserve notes have been redeemed by the Treasurer in gold or gold 'ssuing mm certificates, then such funds shall be reimbursed to the extent deemed necessary by the Secretary of the Treasury in gold or gold certificates, and suc Federal reserve bank shall, so long as any of its Federal keggld '°S°"'° l° l’° reserve notes remain outstanding, maintain with the reasurer in gold an amount sufficient in the jud ment of the Secretary to provide for _ all redem tions to be made by tilie Treasurer. Federal reserve notes ,.,§§‘$§d“F°’°t°‘*"“°t received by the Treasurer otherwise than for redemption may be exchanged for gold out of the redemption fund hereinafter provided and returned to the reserve bank through which they were originally · issued, or they may be returned to such bank for the credit of the Destruction of mt United States. Federal reserve notes unfit for circulation shall be mts. returned by the Federal reserve agents to the Comptroller of the Currency for cancellation and destruction. “ The Federal Reserve Board shall require each Federal reserve bank mg§’l{’,, '{lfg °»}‘},,‘§§§§’Q to maintain on deposit in the Treasury of the United States a sum in gold sufhcient in the judgment of the Secretargy of the Treasmy for the redem tion of the Federal reserve notes issue to such bank, but in no event lless than five per centum of the total amount of notes issued less the amount of gold or gold certificates held by the Federal reserve ent as collateral security; but such deposit of gold shall be t,g;*dm‘};°r$°l¤ °'h‘°“l°‘ coimtenel and included as part of the forty per centum reserve herein- B I before required. The board shall have the right, acting through the  t° °°°°'° Federal reserve agent, to grant, in whole or iiginrlzart, or to reject entirely the application of an Federal reserve b for Federal reserve notes; but to the extent that such application may be granted the Federal Reserve Board shall, through its local Federal reserve agent, supply Federal reserve notes to the anks so appl, and such ank I t t t sha e charged with the amount of notes it and shall pay umliték`? mmm such rate of mterest as may be established by the Federal Reserve Board on only that amount of such notes which equals the total amount of its outstanding Federal reserve notes less the amoimt of gold or gold certificates he d by the Federal reserve ent as collateral security. Federal reserve notes issued to aniy suchagank shall, upon S,,2§‘f“ ’°’ °°'°S is delivery, together with such notes of such ederal reserve bank as V¤1- 38, p- 268. may be issued under section eighteen of this Act upon sec1u·ity of United States two per centum Govemment bonds, become a first and paramount lien on all the assets of such bank. "Any Federal reserve bank may at ang time reduce its liability for u,,*§§‘;f“°" °' '°S°"° outstanding Federal reserve notes by epositing with the Federal V¤1-38.p-261 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 conditions of an original issue. " The Federal reserve agent shall hold such gold, gold certificates, or ,,,§°S°"° °g""*" "“‘ lawful money available exclusive] for exchange for the outstanding Vc!. 38. p- 267. Federal reserve notes when offeredy by the reserve bank of which he is °m°°d°d` a director. Upon the re uest of the Secreta of the Treasury the T,§§§{ °' gm ‘° Federal Reserve Board siliall re uire the Feldleral reserve a ent to transmit to the Treasurer of theqUnited States so much of the gold held by him as collateral security for Federal reserve notes as ma be required for the exclusive pur ose of the redemption of such Swim as mumml Federal reserve notes, but such gold when deposited with the Treas- rmmery _ yer shall ple lcioulntgd and considered as if collateral security on e it wit the e era reserve ent. llliny Federal reserve bank mag at its discretion withdraw col-  M mult. lateral deposited with the local Ferieral reserve agent for the protcc- ,,,Y“§’,j,,f8' P ‘ 2°" tion of IES Federal reserve notes issued to it and shall at the same time