Page:United States Statutes at Large Volume 48 Part 1.djvu/32

 6 "Capita l stock ." Rec onst ruct ion F i- nance Corporation. Subscription for pre- ferred stock. Post, p. 21. Sale of, perm itte d. Increase of outstand- ing obligations author- ized. Federal Reserve Act, amen dmen ts. Vol. 38, p. 2 69, amended. U.S.C.,p . 286. Delivery of circulat- ing notes on deposit of U.S. bonds, etc . Post, p. 21. Amount of issue. Value, use, etc. Redemption. Regul atio ns. Tax. Issue to cease when emergency terminates exception. 73d CONGRESS. SESS. I. CH.1. MARCH 9, 1933 . the a mount of pref erred stock ou tstanding and unimpaired ; a n d th e term " capital stock ", as used in section 12 of the Act of March 14, 190 0, shall mean only the amo unt of common stock outstan ding. S_-c. 304. If in the opinion of the Secretary of the Treasury any national banking association or any State bank or trust company is in need of funds for capital purposes either in connection with the organ ization or re organization o f such associ ation, State bank or trust company or otherwise, he may, with the approval of the Presi- dent, request the Reconstruction Finance Corp oration to su bscribe for preferred stock in such association, State bank or trust company, or to make loans secured by such stock as collateral, and the Recon- struc tion Finance Corporation ma y comply with such request. The Reconstruction Finance Corporation may, with the approval of the Secretary of the Treasury, and under such rules and regulations as he may prescribe, sell in the open market or otherwise the whole or any part of the preferred stock of any national banking association, State bank or trust company acquired by the Corporation pursuant to this section. The amount of notes, bonds, debentures, and other such obligations which the Reconstruction Finance Corporation is authorized and empowered to issue and to have outstanding at any one time under existing law is hereby increased by an amount suffi- cient to carry out the provisions of this section. TITLE IV SEa. 401 . The sixth paragraph of Section 18 of the Federal Reserve Act is amended to read as follows : " Upon the deposit with the Treasurer of the United States, (a) of any direct obligations of the United States or (b) of any notes, drafts, bills of exchange, or bankers' acceptances acquired under the provisions of this Act, any Federal reserve bank making such deposit i n the manner p rescribed by the Secretary of the Treasu ry shal l be e ntitle d to receiv e from the C omptr oller of the Cur- rency circulating notes in blank, duly registered and counter- signed . When such circulating notes are issued against the security of obligations of the United States, the amount of such circulating notes shall be equal to the face value of the direct obligations of the United States so deposited as security ; and, when issued against the security of notes, drafts, bills of exchange and bankers' acceptances acquired under the provisions of this Act, the amount thereof shall be equal to not more than 90 per cent of the estimated value of such notes, drafts, bills of exchange and bankers' acceptances so deposited as security. Such notes shall be the obligations of the Federal reserve bank procuring the same, shall be in form prescribed by the Secretary of the Treasury, shall be receivable at par in all parts of the United States for the same purposes as are national bank notes, and shall be redeemable in lawful money of the United States on presentation at the United States Treasury or at the bank of issue . The Secretar y of the Trea sury is autho rized and empo wered to pre- scribe regulations governing the issuance, redemption, replacement, retirement and destruction of such circulating notes and the release' and substitution of security therefor. Such circulating notes shall be subject to the same tax as is provided by law for the circulating notes of nat ional banks s ecured by 2 p er cent bonds of the United States. No such circulating notes shall be issued under this para-