Page:United States Statutes at Large Volume 48 Part 1.djvu/364

 338 Application for notes ; collateral required. Post, p . 398. Vol 38, p. 263; IT S. C.,p.284. Reserves against de» posits and circulating notes. Vol. 40, p. 230; U .S. C., p . 285 . Pro vis o. Gold certificates held as collateral included in. Redemption of notes at the Treasury. Reimbursement by issuing bank . Vol. 40, p . 236 U .S. C., p. 285. Maintenance of gold certificate reserve for redemption. Disposition of notes recei ved o ther wise than for redemption . Vol. 40, p. 237; U.S. C.,p. 285. Gold certificates de- posited in Treasury for re demption of issued notes . M inim um amount. Reserve Board authority respecting note issues. Interest rate . 73d C ONGRESS. SESS. II. CH. 6. JAN UARY 30, 1934 . (2) So much of the third sentence of the second paragraph as precedes the proviso is amended to read as follows : "The collateral security thus offered shall be notes, drafts, bills of exchange, or acceptances acquired under the provisions of section 13 of this Act, or bills of exchange endorsed by a member bank of any Federal Reserve district and purchased under the provisions of section 14 of this Act, or bankers' acceptances purchased under the provisions of said section 14, or gold certificates : ". (3) The first sentence of the third paragraph is amended to read as follows : " Every Federal Reserve bank shall maintain reserves in gold certificates or lawful money of not less than 35 per centum agai nst its depos its and reserv es in gold ce rtifica tes of not le ss than 40 per centum against its Federal Reserve notes in actual circula- tion : Pro vid ed, however, That when the Federal Reserve agent holds gold certificates as collateral for Federal Reserve notes issued to the bank such gold certificates shall be counted as part of the res erve whi ch s uch bank is requ ired to main tain aga inst its Fed eral Reserve notes in actual circulation ." (4) The fifth and sixth sentences of the third paragraph are amended to read as follows : " Notes presented for redemption at the Treasury of the United States shall be paid out of the redemp- tion fund an d returned to the Federal Reserve banks through which they were originally issued, and thereupon such Federal Reserve bank shall, upon demand of the Secretary of the Treasury, reimburse such redemption fund in lawful money or, if such Federal Reserve notes have been redeemed by the Treasurer in gold certificates, then such funds shall be reimbursed to the extent deemed necessary by the Secretary of the Treasury in gold certificates, and such Federal Reserve bank shall, so long as any of its Federal Reserve notes remain outstanding, maintain with the Treasurer in gold certificates an amount sufficient in the judgment of the Secretary to provide for all redemptions to be made by the Treasurer . Federal Reserve notes received by the Treasurer otherwise than for redemption may be exchanged for gold certificates out of the redemption fund here- inafter provided and returned to the Reserve bank through which they were orig inally issued, or they may be returned t o such bank for the credit of the United States. „ ' (5) The fourth, fifth, and sixth paragraphs are amended to read as follows " The Federal Reserve Board shall require each Federal Reserve bank to maintain on deposit in the Treasury of the United States a sum in gold certificates sufficient in the judgment of the Secretary of the Treasury for the redemption of the Federal Reserve notes issued to such bank, but in no event less than 5 per centum of the total amount of notes issued less the amount of gold certificates held by the Federal Reserve agent as collateral security ; but such deposit of gold certificates shall be counted and included as part of the 40 per cent um r eser ve h erei nbef ore requ ired . The Board shall have th e right, acting through the Federal Reserve agent, to grant in whole or in part, or to reject entirely the application of any Federal Reserve bank 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 banks so applying, and such bank shall be charged with the amount of the notes issued to it and shall pay such rate of interest 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 amount of gold cer- tificates held by the Federal Reserve agent as collateral security.