Page:United States Statutes at Large Volume 48 Part 1.djvu/78

 52 73d CONGRESS. SESS. I. CH. 25. MAY 12, 1933 . Unit ed Sta tes is the m ajorit y stoc kholder, and (2) pu rchase direc tly and hold in portfolio for an agreed period or periods of time Treasury bills or other obligations of the United States Government in an aggregate sum of $3,000,000,000 in addition to those they may then hold, unless prior to the termination of such period or periods the Secretary shall consent to their sale. No suspension of reserve requirements of the Federal Reserve banks, under the terms of sec- tion 11(c) of the Federal Reserve Act, necessitated by reason of operations under this section, shall require the imposition of the graduated tax upon any deficiency in reserves as provided in said section 11(c). Nor shall it require any automatic increase in the rates of interest or discount charged by any Federal Reserve bank, as otherwise specified in that section. The Federal Reserve Board, with the approval of the Secretary of the Treasury, may require the Federal Reserve banks to take such action as may be necessary, in the judgment of the Board and of the Secretary of the Treasury, to prevent undue credit expansion. (b) If the Secretary, when directed by the President, is unable to secure the assent of the several Federal Reserve banks and the Federal Reserve Board to the agreements authorized in this section, or if operations under the above provisions prove to be inadequate to meet the purposes of this section, or if for any other reason additional measures are required in the judgment of the President to m eet such purpo ses, then the Presi dent is a uthor ized - (1) To direct the Secretary of the Treasury to cause to be issued in such amount or amounts as he may from time to time order, United States notes, as provided in the Act entitled "An Act to authorize the issue of United States notes and for the redemption of funding thereof and for funding the floating debt of the United States", appro ved February 25, 186 2, and Acts suppleme ntary thereto and amendatory thereof, in the same size and of similar color to th e Fede ral Re serve notes hereto fore is sued a nd in denomi nation s of $1, $5, $10, $20, $50, $100, $500, $1,000, and $10,000 ; but notes issued under this subsection shall be issued only for the purpose of meeting maturing Federal obligations to repay sums borrowed by the United States and for purchasing United States bonds and other interest-bearing obligations of the United States : Provided, That when any such notes are used for such purpose the bond or other obligation so acquired or taken up shall be retired and can- celed. Such notes shall be issued at such times and in such amounts as the President may approve but the aggregate amount of such notes outstanding at any time shall not exceed $3,000,000,000. There is he reby a ppropr iated, out o f any money i n the Treasu ry not other - wise appropriated, an amount sufficient to enable the Secretary of the Treasury to retire and cancel 4 per centum annually of such outstanding notes, and the Secretary of the Treasury is hereby dire cted to r etire and canc el an nuall y 4 per c entum of such out- standing notes. Such notes and all other coins and currencies here- tofore or hereafter coined or issued by or under the authority of the United States shall be legal tender for all debts public and private. President, by eight (2) By proclamation to fix the weight of the gold dollar in grains procla- mation, may fix w of gold dollar . nine tenths fine and also to fix the weight of the silver dollar in Silv er d ollar . Post, p. 344. grains nine tenths fine at a definite fixed ratio in relation to the gold dollar at su ch amo unts a s he f inds n ecessar y from his i nvesti gation to stabilize domestic prices or to protect the foreign commerce against the adverse effect of depreciated foreign currencies, and to provide for the unlimited coinage of such gold and silver at the ratio so fixed, or in case the Government of the United States Purchasedirectlyand hold Treas ury bills, etc ., additional to present holdings. Suspension of reserve requirements not to impo se g radua ted tax on any deficiency in reserves. Vol.38,p.262 . U .SC,p.276. Interest or discount rates. Measures to prevent undue credit expan- sion. If unable to secure assent of Federal Re- serve banks to author- ized agreements, etc . Authority of Presi- de nt. United States notes may be issued. Vol. 12, p. 345. Size, color, denomi- nations, etc. Purposes of issue de- fined. Proviso. Retirement of bonds so purchased. Issues, amounts, etc . App rop ria ti on for annual cancellation. Notes, etc. , to be legal tender. Post, p. 113. Unlimited coinage of gold and silver dollar at fixed ratio.