Page:United States Statutes at Large Volume 73.djvu/301

 73

STAT.]

PUBLIC LAW 86-114-JULY 28, 1959

263

Public Law 86-114 AN ACT To amend the National Bank Act and the Federal Keserve Act with respect to the reserves required to be maintained by member banks of the Federal Reserve System against deposits and to eliminate the classification "central reserve city".

July 28, 1959 rs 11201 —1 J

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 19 ^embe^ f anTI,' of the Federal Reserve Act, as amended, is further amended by strik- reserves. ing out the provisos in the fourth and fifth paragraphs of such section, lettered (b) and (c), respectively (U.S.C., title 12, sec. 462), by chang- 40 Stat. 970. ing the colon in each such paragraph to a period, and by adding after such fifth paragraph the following: "Notwithstanding the other provisions of this section— "(1) the Board of Governors, under such regulations as it may prescribe, may permit member banks to count all or part of their currency and coin as reserves required under this section; and "(2) a member bank in a reserve city may^hold and maintain the reserve balances which are in effect under this section for member banks described in paragraph (a), and a member bank in a central reserve city may hold and maintain the reserve balances which are in effect under this section for member banks described in paragraph (a) or (b), if permission for the holding and maintaining of such lower reserve balances is granted by the Board of Governors of the Federal Reserve System, either in individual cases or under regulations of the Board, on such basis as the Board may deem reasonable and appropriate in view of the character of business transacted by the member bank." SEC. 2. (a) The fifth paragraph of section 19 of the Federal Reserve Act, lettered (c) (U.S.C. title 12, sec. 462), is amended by striking ^o Stat. 970. out the word "thirteen" in such paragraph and substituting in lieu thereof the word "ten". (b) The sixth paragraph of section 19 of the Federal Reserve Act (U.S.C. title 12, sec. 462b) is amended by striking out the words '•9 Stat. 706, "on the date of enactment of the Banking Act of 1935", and by inserting before the period at the end thereof the following: ", except that in the case of member banks in reserve cities and central reserve cities the maximum amount of reserves which may be required to be maintained against demand deposits shall be 22 per centum". SEC. 3. (a) The amendments made by the first two sections of this Effective dates. Act shall be effective on the date of the enactment of this Act. (b) Effective three years after the date of the enactment of this Act— (1) New York and Chicago are reclassified as reserve cities under the Federal Reserve Act; \\ ^^^ ||gi; (2) the classification "central reserve city" under the Federal Reserve Act, and the authority of the Board of Governors of the Federal Reserve System to classify or reclassify cities as "central reserve cities" under such Act, are terminated; (3) section 5192 of the Revised Statutes of the United States (12 U.S.C. sec. 144) is amended by striking out "central reserve ® ^°*- ^^'^' ^ or"; (4) section 2 of the Act of March 3, 1887 (ch. 378; 24 Stat. 560) ^^P^^* is repealed;

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