Federal Reserve: A Faustian Bargain?

8/9/2019 Federal Reserve: A Faustian Bargain?

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Federal Reserve:

A Faustian Bargain?

By William P. Litynski



Federal Reserve: The Monopoly of Big Cred

Current and former presidents of the Federal Reserve Bank of New York pose for a group portrait on May ! "# $%right: &illiam '% M()onough! &illiam C% )udley! *aul +% ,ol(ker! -% .erald Corrigan! and Timothy F% .eithner%are /or were0 mem1ers of the Coun(il on Foreign Relations and mem1ers of the Trilateral Commission%/*hoto:Federal Reserve0

+ndrew 'a(kson

2It is to be regretted that the rich and powerful too often bend the acts ofgovernment to their selfish purposes. )istin(tions in so(iety will always e3istunder every 4ust government% -5uality of talents! of edu(ation! or of wealth (an 1e produ(ed 1y human institutions% 6n the full en4oyment of the gifts of 7eaventhe fruits of superior industry! e(onomy! and virtue! every man is e5ually entitled prote(tion 1y law8but when the laws undertake to add to these natural and just

advantages artificial distinctions, to grant titles, gratuities, and exclusiveprivileges, to make the rich richer and the potent more powerful, the humblemembers of society—the farmers, mechanics, and laborers—who have neitherthe time nor the means of securing like favors to themselves, have a right tocomplain of the injustice of their Government. There are no necessary evils ingovernment. Its evils exist only in its abuses. 6f it would (onfine itself to e5ual prote(tion! and! as 7eaven does its rains! shower its favors alike on the high and tlow! the ri(h and the poor! it would 1e an un5ualified 1lessing%9 +ndrew 'a(kson! *resident of the ;nited <tates! in his ,eto Message regarding th<e(ond Bank of the ;%<% on 'uly #! =>"

https://www.flickr.com/photos/federalreserve/14103256893/




Federal Reserve Chairman Ben Bernanke /right0 appears with former Federal Reserve Chairman *aul ,ol(ker /left0 and Federal Reserve Chairman +lan .reenspan /(enter0 after parti(ipating in the (eremonial signing of a (ertifi(ate (ommemor

##th anniversary of the signing of the Federal Reserve +(t at the Federal Reserve Building in &ashington! )%C% on M)e(em1er ! "# >% Bernanke! 4oined 1y his two prede(essors! marked the ##th anniversary of the Federal Reserve the 1old a(tions past (hairmen have had to take in the 1est interest of the +meri(an e(onomy% /+* *hoto@*a1lo Martin

2 ost !mericans have no real understanding of the operation of the international moneylenders. The bankers want itthat way. &e re(ogniAe in a haAy sort of way that the Roths(hilds and the &ar1urgs of -urope and the houses of '%

uhn! oe1 and Company! <(hiff! ehman! and Ro(kefeller possess and (ontrol vast wealth% 7ow they a(5uired tfinan(ial power and employ it is a mystery to most of us% 6nternational 1ankers make money 1y e3tending (redit tgovernments% The greater the de1t of the politi(al state! the larger the interest returned to the lenders% The natio-urope are a(tually owned and (ontrolled 1y private interests% 6n the early years of the Repu1li( the ;nited <tates ewith a (entral 1anking system% 'efferson opposed +le3ander 7amiltonDs s(heme for the First Bank of the ;nited <t+ndrew 'a(kson a1olished Ni(holas BiddleEs <e(ond Bank of the ;nited <tates% The &all <treet 1anks (ontri1uted mus(le to ele(t &oodrow &ilson *resident in "% Their agent! Colonel -% M% 7ouse! 1e(ame the most powerf&ilson administration% *aul MoritA &ar1urg! s(ion of the M% M% &ar1urg Company of 7am1urg and +msterdam;%<% in #"% -ight years later he was a partner in the 1anking house of uhn! oe1 of New York%"arburg was the architectof our #ederal $eserve %ystem, creating a privately owned mechanism to control the currency and credit of the &nited%tates. The #ederal $eserve is a bank of monetary issue. It is empowered to establish a national discount rate and toauthori'e the printing of the currency of the &nited %tates. The accounts of the #ederal $eserve %ystem have never beenaudited. It operates outside the control of (ongress and through its )oard of Governors manipulates the credit of the&nited %tates. ;nder Franklin )% Roosevelt the original term of offi(e for governors was e3tended from seven to fou

putting the 1oard 1eyond the rea(h of any *resident% The powerful -uropean 1anker +nselm Roths(hild on(e saithe power to issue a nationEs money! then 6 do not (are who makes the laws%9

;%<% <enator Barry .oldwater!With No Apologies ! page "= G"=" /written in H 0



&illiam '% M()onough! 'ohn *% ipsky! <tanley Fis(her! &illiam C% )udley /*resident of the Federal Reserve BanYork0! and Roger &% Ferguson 'r% listen as Federal Reserve Chairman 'anet Yellen delivers a spee(h during an -(oof New York 1an5uet in New York City on +pril ! "# $% /*hoto:-(onomi( Clu1 of New York 0

&oodrow &ilson

27owever it has (ome a1out! it is more important still thatthe control of credit also hasbecome dangerously centrali'ed % 6t is the mere truth to say that the finan(ial resour(esthe (ountry are not at the (ommand of those who do not su1mit to the dire(tion anddomination of small groups of (apitalists who wish to keep the e(onomi( development (ountry under their own eye and guidan(e%The great monopoly in this country is themonopoly of big credits. %o long as that exists, our old variety and freedom andindividual energy of development are out of the *uestion. ! great industrial nation iscontrolled by its system of credit. +ur system of credit is privately concentrated. Thegrowth of the nation, therefore, and all our activities are in the hands of a few men who,even if their action be honest and intended for the public interest, are necessarilyconcentrated upon the great undertakings in which their own money is involved andwho necessarily, by very reason of their own limitations, chill and check and destroygenuine economic freedom. This is the greatest 5uestion of all! and to this statesmen muaddress themselves with an earnest determination to serve the long future and the trueli1erties of men%This money trust, or, as it should be more properly called, this credittrust, of which (ongress has begun an investigation, is no myth it is no imaginarything. It is not an ordinary trust like another. It doesn-t do business every day. It doesbusiness only when there is occasion to do business. You (an sometimes do somethinglarge when it isnIt wat(hing! 1ut when it is wat(hing! you (anIt do mu(h%!nd I have seenmen s*uee'ed by it I have seen men who, as they themselves expressed it, were put outof business by "all %treet, because "all %treet found them inconvenient and didn-twant their competition. 9 ;%<% *resident &oodrow &ilson!The New Freedom / >0!Chapter = /Monopoly! or Jpportunity?0

https://econclubny.org/photoalbum.asp?AlbumNo=46

https://econclubny.org/photoalbum.asp?AlbumNo=46



#ederal $eserve /0/1 2residential 3lection4

!n +ctober %urprise5

#rom the Grassy 6noll in ilwaukee47one Gunman or 2atsy5

The !ttempted !ssassination of Theodore $oosevelt on +ctober /8, /0/1

*rogressive *arty (andidate Theodore Roosevelt appears on the (ampaign trail in "% /*hoto: i1rary of Con



*rogressive *arty (andidate Theodore Roosevelt appears on the (ampaign trail on J(to1er $! "! ten days 1efore TRoosevelt was shot in the (hest 1y a 2lone gunman9 in Milwaukee% /*hoto:i1rary of Congress0

Former ;%<% *resident Theodore Roosevelt was shot in the (hest 1y a 2lone gunman9 named 'ohn F% <(hrank / =H G1orn immigrant from Bavaria! while (ampaigning in Milwaukee! &is(onsin on J(to1er $! "%

http://www.loc.gov/pictures/item/ggb2004010870/

http://www.loc.gov/pictures/item/ggb2004010870/





President-elect Woodrow Wilson (left), member of the Democratic Party, and outgoing President William oward !aft (right), member of the"e#ublican Party and a member of $kull % Bones at &ale 'ni ersity, laugh together outside the White ouse #rior to Wilson s inauguration on*arch +, . !he /th 0mendment of the '.$. 1onstitution legali2ing the federal income ta3 was ratified on 4ebruary , 5 the 4ederal"eser e 0ct was signed by President Woodrow Wilson on December 6 , . !he "ockefeller 4oundation and the 0nti-Defamation Leagueof B nai B rith were founded in . (Photo7 Library of 1ongress )

8ncoming President Woodrow Wilson (left) shakes hands with outgoing President William oward !aft on *arch +, . Kuhn, Loeb & Co.banking partner Felix Warburg (a Jewish banker from Hamburg, erman!" supporte# William Howar# $aft% Kuhn, Loeb & Co.banking partner aul Warburg (a Jewish banker from Hamburg, erman! an# Felix Warburg's brother" supporte# Woo#row Wilson#uring the ) * presi#ential ele+tion.

http://commons.wikimedia.org/wiki/Image:WilsonTaftLaughing.jpg





2resident Taft The 9ewish 7obby at the "hite :ouse4 Mem1ers of the BEnai BErith visit ;%<% *resident &illiamTaft /(enter0 at the &hite 7ouse in &ashington! )%C%! ;%<%+% &illiam 7oward Taft was a mem1er of%kull )ones ! a se(rso(iety at Yale ;niversity% The +ntiG)efamation eague of BEnai BErith /a 'ewish politi(al organiAation0 was fouThe Federal Reserve +(t and the federal in(ome ta3 /the th +mendment0 were esta1lished in >%/*hoto:7arris K -wing Colle(tion@ i1rary of Congress *rints and *hotographs )ivision0

http://www.loc.gov/pictures/item/hec2009001865/?sid=a686ea9e9fe6f02184a602a270d1d5cc

http://www.loc.gov/pictures/item/hec2009001865/?sid=a686ea9e9fe6f02184a602a270d1d5cc





Federal Reserve: A Continuation of theBank of the United States?

!he ($econd) Bank of the 'nited $tates in Philadel#hia o#erated from 9 / to 9 /. !he ($econd) Bank of the 'nited $tates, which wasrenamed 'nited $tates Bank of Pennsyl ania in 9 :, became a #ri ate bank until the bank failed in 9+ . President 0ndrew ;ackson etoedthe renewal of the Bank on ;uly <, 9 6. =icholas Biddle was arrested for fraud in Philadel#hia in 9+ 5 howe er, Biddle was ne er tried incourt and was e entually released from #rison.

resi#ents of the ank of the -nite# tates ( /) 0 1 , 1 20 132"

$homas WillingPresident of the Bank of the'nited $tates ( : - 9<:)5

*ayor of Philadel#hia( :/ - :/+)

William JonesPresident of the Bank of the'nited $tates ( 9 /- 9 )5

$ecretary of the =a y( 9 - 9 +)

Lang#on Che4esPresident of the Bank of the'nited $tates ( 9 - 966)5

$#eaker of the '.$. ouse of"e#resentati es ( 9 +- 9 >)

5i+holas i##lePresident of the Bank of the'nited $tates ( 96 - 9 /)5

President of the 'nited $tatesBank of Pennsyl ania

( 9 :- 9 )



3xcerpts of 2resident !ndrew 9ackson-s #arewell !ddress $egarding the )ank of the &nited %tates; arch 8, /<=>?

+ndrew 'a(kson

2$ecent events have proved that the paper@money system of this country may be used as an engine to undermine yourfree institutions, and that those who desire to engross all power in the hands of the few and to govern by corruption orforce are aware of its power and prepared to employ it. Your 1anks now furnish your only (ir(ulating medium! and mplenty or s(ar(e a((ording to the 5uantity of notes issued 1y them% &hile they have (apitals not greatly disproportio

other! they are (ompetitors in 1usiness! and no one of them (an e3er(ise dominion over the rest8 and although in theof the (urren(y these 1anks may and do operate in4uriously upon the ha1its of 1usiness! the pe(uniary (on(erns! andtone of so(iety! yet! from their num1er and dispersed situation! they (an not (om1ine for the purposes of politi(al inwhatever may 1e the dispositions of some of them their power of mis(hief must ne(essarily 1e (onfined to a narrowfelt only in their immediate neigh1orhoods%

But when the (harter for the Bank of the ;nited <tates was o1tained from Congress it perfe(ted the s(hemes of the paand gave to its advo(ates the position they have struggled to o1tain from the (ommen(ement of the Federal .overnmpresent hour% The immense (apital and pe(uliar privileges 1estowed upon it ena1led it to e3er(ise despoti( sway ov1anks in every part of the (ountry%#rom its superior strength it could seriously injure, if not destroy, the business of anyone of them which might incur its resentment and it openly claimed for itself the power of regulating the currencythroughout the &nited %tates. In other words, it asserted ;and it undoubtedly possessed? the power to make money plenty

or scarce at its pleasure, at any time and in any *uarter of the &nion, by controlling the issues of other banks andpermitting an expansion or compelling a general contraction of the circulating medium, according to its own will. Theother 1anking institutions were sensi1le of its strength! and they soon generally 1e(ame its o1edient instruments! retimes to e3e(ute its mandates8 and with the 1anks ne(essarily went also that numerous (lass of persons in our (ommwho depend altogether on 1ank (redits for their solven(y and means of 1usiness! and who are therefore o1liged! forsafety! to propitiate the favor of the money power 1y distinguished Aeal and devotion in its servi(e% The result of legislation whi(h esta1lished this great monopoly was to (on(entrate the whole moneyed power of the ;nion! with itmeans of (orruption and its numerous dependents! under the dire(tion and (ommand of one a(knowledged head! thuthis parti(ular interest as one 1ody and se(uring to it unity and (on(ert of a(tion throughout the ;nited <tates! and ena1ring forward upon any o((asion its entire and undivided strength to support or defeat any measure of the .overnmehands of this formida1le power! thus perfe(tly organiAed! was also pla(ed unlimited dominion over the amount of tmedium! giving it the power to regulate the value of property and the fruits of la1or in every 5uarter of the ;nion! a

prosperity or 1ring ruin upon any (ity or se(tion of the (ountry as might 1est (omport with its own interest or poli(y%&e are not left to (on4e(ture how the moneyed power! thus organiAed and with su(h a weapon in its hands! would use it%The distress and alarm which pervaded and agitated the whole country when the )ank of the &nited %tates wagedwar upon the people in order to compel them to submit to its demands can not yet be forgotten. The ruthless andunsparing temper with which whole cities and communities were oppressed, individuals impoverished and ruined, and ascene of cheerful prosperity suddenly changed into one of gloom and despondency ought to be indelibly impressed on thememory of the people of the &nited %tates. 6f su(h was its power in a time of pea(e! what would it not have 1een in aof war! with an enemy at your doors? No nation 1ut the freemen of the ;nited <tates (ould have (ome out vi(torious(ontest8 yet! if you had not (on5uered! the .overnment would have passed from the hands of the many to the hands and this organiAed money power from its se(ret (on(lave would have di(tated the (hoi(e of your highest offi(ers andyou to make pea(e or war! as 1est suited their own wishes% The forms of your .overnment might for a time have re

its living spirit would have departed from it%





+rti(le of the Constitution for the ;nited <tates of +meri(a /<e(tions =G #0

+rti(le ! <e(tion =% *owers of CongressThe Congress shall have *ower To lay and (olle(t Ta3es! )uties!6mposts and -3(ises ! to pay the )e1ts and provide for the (omm)efen(e and general &elfare of the ;nited <tates8 1ut all )uties! 6mposts and-3(ises shall 1e uniform throughout the ;nited <tTo borrow money on the credit of the &nited %tatesTo regulate Commer(e with foreign Nations! and among the several <tates! and with the 6ndian Tri1es8To esta1lish an uniform Rule of NaturaliAation! and uniform aws on the su14e(t of Bankrupt(ies throughout the ;nited To coin oney, regulate the Aalue thereof, and of foreign (oin, and fix the %tandard of "eights and easuresTo provide for the 2unishment of counterfeiting the %ecurities and current (oin of the &nited %tates

To esta1lish *ost Jffi(es and*ost Roads8To promote the *rogress of <(ien(e and useful +rts! 1y se(uring for limited Times to +uthors and 6nventors the e3(lusivetheir respe(tive &ritings and )is(overies8To (onstitute Tri1unals inferior to the supreme Court8To define and punish *ira(ies and Felonies (ommitted on the high <eas! and Jffenses against the aw of Nations8To de(lare &ar! grant etters of Mar5ue and Reprisal! and make Rules (on(erning Captures on and and &ater8To raise and support +rmies! 1ut no +ppropriation of Money to that ;se shall 1e for a longer Term than two Years8To provide and maintain a Navy8To make Rules for the .overnment and Regulation of the land and naval For(es8To provide for (alling forth the Militia to e3e(ute the aws of the ;nion! suppress 6nsurre(tions and repel 6nvasions8To provide for organiAing! arming! and dis(iplining the Militia! and for governing su(h *art of them as may 1e employe<ervi(e of the ;nited <tates! reserving to the <tates respe(tively! the +ppointment of the Jffi(ers! and the +uthority of traiMilitia a((ording to the dis(ipline pres(ri1ed 1y Congress8To e3er(ise e3(lusive egislation in all Cases whatsoever! over su(h )istri(t /not e3(eeding ten Miles s5uare0 as may! 1y parti(ular <tates! and the a((eptan(e of Congress! 1e(ome the <eat of the .overnment of the ;nited <tates! and to e3er(ise+uthority over all *la(es pur(hased 1y the Consent of the egislature of the <tate in whi(h the <ame shall 1e! for the -re(MagaAines! +rsenals! do(kGYards! and other needful Buildings8 +ndTo make all aws whi(h shall 1e ne(essary and proper for (arrying into -3e(ution the foregoing *owers! and all other *ow1y this Constitution in the .overnment of the ;nited <tates! or in any )epartment or Jffi(er thereof%

+rti(le ! <e(tion %The Migration or 6mportation of su(h *ersons as any of the <tates now e3isting shall think proper to admit! shall not 1e the Congress prior to the Year one thousand eight hundred and eight! 1ut a ta3 or duty may 1e imposed on su(h 6mportae3(eeding ten dollars for ea(h *erson%The privilege of the &rit of 7a1eas Corpus shall not 1e suspended! unless when in Cases of Re1ellion or 6nvasion the pu1lmay re5uire it%No Bill of+ttainder or e3 post fa(to aw shall 1e passed%/No (apitation! or other dire(t! Ta3 shall 1e laid! unless in *roportion to the Census or-numeration herein 1efore dire(ted to 1e t/<e(tion in parentheses modified 1y+mendment O,6%0No Ta3 or )uty shall 1e laid on +rti(les e3ported from any <tate%No *referen(e shall 1e given 1y any Regulation of Commer(e or Revenue to the *orts of one <tate over those of another,essels 1ound to! or from! one <tate! 1e o1liged to enter! (lear! or pay )uties in another%Bo oney shall be drawn from the Treasury, but in (onse*uence of !ppropriations made by 7aw and a regular %tatementand !ccount of the $eceipts and 3xpenditures of all public oney shall be published from time to time.NoTitle of No1ility shall 1e granted 1y the ;nited <tates: +nd no *erson holding any Jffi(e of *rofit or Trust under them! swithout the Consent of the Congress! a((ept of any present!-molument! Jffi(e! or Title! of any kind whatever! from any ingor foreign <tate%

+rti(le ! <e(tion #%Bo %tate shall enter into any Treaty, !lliance, or (onfederation grant 7etters of ar*ue and $eprisal coin oney emit )iof (redit make any Thing but gold and silver (oin a Tender in 2ayment of Cebts pass any )ill of !ttainder , ex post facto 7aw, or 7aw impairing the +bligation of (ontracts, or grant any Title of Bobility .

No <tate shall! without the Consent of the Congress! lay any6mposts or )uties on 6mports or -3ports! e3(ept what may 1e a1sone(essary for e3e(utingitIs inspe(tion aws: and the net *rodu(e of all )uties and6mposts! laid 1y any <tate on 6mports or -3pshall 1e for the ;se of the Treasury of the ;nited <tates8 and all su(h aws shall 1e su14e(t to the Revision andControul of theCongress%

No <tate shall! without the Consent of Congress! lay any duty of Tonnage! keep Troops! or <hips of &ar in time of *ea(any +greement or Compa(t with another <tate! or with a foreign *ower! or engage in &ar! unless a(tually invaded! or inimminent )anger as will not admit of delay%

http://www.usconstitution.net/glossary.html#IMPOST

http://www.usconstitution.net/glossary.html#EXCISE



http://www.usconstitution.net/glossary.html#WELFARE






http://www.usconstitution.net/glossary.html#POSTROAD


http://www.usconstitution.net/glossary.html#MARQUE



http://www.usconstitution.net/glossary.html#REPRISAL


http://www.usconstitution.net/glossary.html#HABCOR



http://www.usconstitution.net/glossary.html#ATTAINDER


http://www.usconstitution.net/glossary.html#EXPOST


http://www.usconstitution.net/glossary.html#ENUMERATE

http://www.usconstitution.net/const.html#Am16%23Am16


http://www.usconstitution.net/glossary.html#NOBILITY

http://www.usconstitution.net/glossary.html#EMOLUMENT





http://www.usconstitution.net/glossary.html#CREDIT








http://www.usconstitution.net/constmiss.html















http://www.usconstitution.net/glossary.html#ENUMERATE



http://www.usconstitution.net/glossary.html#EMOLUMENT














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'une >#! >= G P>H! $!H$#!> L%$L

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'une >#! L G P> H!"H>!= =! =>% $'une >#! G P> ! #H!#=H!H L%$='une >#! H G P>" !""#! >H!H $%L$'une >#! = G P>$H!LH=!$# !$"L%=='une >#! G P>L>!H"#!"L>!=$ %$'une >#! H# G P>H#! =!H# ! $ % >'une >#! H G P> =! " !H$$!$LL%L$'une >#! H" G P$"H!" #!$ #! $#%L#'une >#! H> G P$L=! $ ! #L!> "%#'une >#! H$ G P$HL!#L != L!H> %LL'une >#! HL G PL>>! = !###!###%##Q'une >#! H G P "#!$>>!###!###%##Q<eptem1er >#! HH G P =!=$#!###!###<eptem1er >#! H= G PHH !L$$!###!###<eptem1er >#! H G P=" !L !###!###%<eptem1er >#! =# G P #H!H# !###!###%<eptem1er >#! = GP H!=LL!###!###%<eptem1er >#! =" G P ! $"!#>$!###!###<eptem1er >#! => G P !>HH!" #!###!##<eptem1er >#! =$ G P !LH"!" !###!##<eptem1er >#! =L G P !=">! #>!###!##<eptem1er >#! = G P"! "L!>#"! ! L<eptem1er >#! =H GP"!>L#!"H != #! L<eptem1er >#! == G P"! #"!>>H!H "!#$<eptem1er " ! = G P"!=LH!$>#! #! =<eptem1er "=! # G P>!">>!> >!$L !HH<eptem1er >#! G P>! L!>#>!>L !<eptem1er >#! " G P$!# $! "#! LL!L"<eptem1er >#! > G P$!$ !$==!==>! ><eptem1er >#! $ G P$! "!H$ ! #!#<eptem1er " ! L G P$! H>! ="! ##!H#<eptem1er >#! G PL!""$!= #! > ! ><eptem1er >#! H G PL!$ >! $ !# !><eptem1er >#! = G PL!L" ! >!##=!=<eptem1er >#! G PL! L !"H#! # !<eptem1er >#! "### G PL! H$! H=!"# !==<eptem1er >#! "## G PL!=#H!$ >!$ "!"##<eptem1er >#! "##" G P !""=!">L! L!L H<eptem1er >#! "##> G P !H=>!"> !# "!H$<eptem1er >#! "##$ G PH!>H !#L"! !>><eptem1er >#! "##L G PH! >"!H# ! !H<eptem1er >#! "## G P=!L# ! H>!= !"<eptem1er >#! "##H G P !##H! L>!>H"!"<eptem1er >#! "##= G P #!#"$!H"$!= !<eptem1er >#! "## G P ! # !=" !##>!L<eptem1er >#! "# # G P >!L ! ">!#>#!=<eptem1er >#! "# G P $!H #!>$#!>"=!L

<eptem1er >#! "# " G P !# !"$ !$#H!>=



uly ! = $ G P != L!H=$!>H#%LH



Fe#eral 6eser4e7 Wall treet 6obber arons% 1ash 1ow for the 1ouncil on 4oreign "elations?

eft to right: Federal Reserve ,i(e Chairman 'anet Yellen! former Federal Reserve Board Chairman *aul +dolph ,olkformer Federal Reserve Board Chairman <ir +lan .reenspan! and outgoing Federal Reserve Board Chairman Ben Blisten to remarks during the Federal Reserve (entennial (ommemoration at the Federal Reserve 1uilding in &ashing)e(em1er ! "# >% /+((ording to the Chinese (alendar! "# > is known as Year of the <nake%0 The Federal Rese

##th anniversary with a (ommemoration (eremony featuring the past! outgoing! and in(oming (hairmen of the Fed9anet Dellen, 2aul !dolph Aolcker, and %ir !lan Greenspan are members of the (ouncil on #oreign $elations, a privateforeign affairs organi'ation in Bew Dork (ity. /*hoto 1y Mark &[email protected] 6mages0



Federal Reserve 1ankers pose for a group portrait at the Federal Reserve head5uarters in &ashington! )%C% on 'unFrom left to right: 'erome 7% *owell! Federal Reserve Chairman )r% 'anet Yellen! )r% ael Brainard! and Federal Chairman )r% <tanley Fis(her% +ll four individuals are mem1ers of the Coun(il on Foreign Relations! a private orNew York City% )r% ael Brainard and )r% <tanley Fis(her were mem1ers of the Trilateral Commission%/*hoto:Federal Reserve0

https://www.flickr.com/photos/federalreserve/14435366834/in/set-72157645246881113

https://www.flickr.com/photos/federalreserve/14435366834/in/set-72157645246881113



Dr. $tanley 4ischer (right) is sworn in as a *ember of the Board of @o ernors of the 4ederal "eser e $ystem by 4ederal"eser e 1hairman Dr. ;anet &ellen on *ay 69, 6< +. $tanley 4ischer, a dual citi2en of 0merica and 8srael, ser ed as the@o ernor of the Bank of 8srael (8srael s central bank) from 6<<> until 6< . (Photo7 4ederal "eser e )

4ederal "eser e 1hairman Dr. ;anet &ellen (left) swears in Dr. $tanley 4ischer as Aice 1hairman of the 4ederal "eser e inWashington, D.1. on ;une /, 6< +. (Photo7 4ederal "eser e )

https://www.flickr.com/photos/federalreserve/14291494605/in/photostream/


https://www.flickr.com/photos/federalreserve/14436482025/in/set-72157645246881113/






1urrent and former 4ederal "eser e Bank Presidents and current and former 4ederal "eser e 1hairmen #ose for a grou# #ortrait on *ay ,6< +. 4ront row7 William 1. Dudley ( rd left), ;anet L. &ellen (+ th left), 0lan @reens#an (> th left), Ben Bernanke (/ th left), . @erald 1orrigan (faright). Paul 0. Aolcker a##ears on the far left in the third row5 !imothy 4. @eithner a##ears rd from left in the third row.(Photo7 4ederal "eser e )

4ederal "eser e 1hairman ;anet &ellen (center) shakes hands with 4ederal "eser e Board @o ernor Daniel !arullo (left) after she was swornin as 4ederal "eser e 1hairman, as her husband @eorge 0kerlof (right) stands nearby, at the 4ederal "eser e Building in Washington, D.1.on 4ebruary , 6< +. ;anet &ellen re#laced Ben Bernanke as 1hairman of the 4ederal "eser e. ;anet &ellen and Daniel !arullo are members

of the 1ouncil on 4oreign "elations. (Photo by *ark WilsonC@etty 8mages)






4ederal "eser e 1hairman Ben Bernanke smiles before deli ering remarks to the 1ouncil on 4oreign "elations in Washington,D.1. on *arch <, 6<< . ( "euters )

http://www.daylife.com/photo/0ak9cWd9Sd2CK?q=council+on+foreign+relations

http://www.daylife.com/photo/0ak9cWd9Sd2CK?q=council+on+foreign+relations



Ben <halom Bernanke! Chairman of the Federal Reserve! meets with other Federal Reserve 1ankers at a Federal Rmeeting in "## % *rominent Federal Reserve 1ankers attending the meeting in(lude: &illiam C% )udley /*residenFederal Reserve Bank of New York0! )onald ohn /,i(e Chairman of the Federal Reserve0! )aniel Tarullo /Mem1erFederal Reserve Board0! and evin &arsh /Mem1er of the Federal Reserve Board0% /Federal Reserve photo0

Ben <halom Bernanke /left0! Chairman of the Federal Reserve! meets with other Federal Reserve 1ankers at a Fed1oard meeting% Jther Federal Reserve 1ankers in(lude 'anet Yellen /"nd left! ,i(e Chairman of the Federal Reserve0 and Tarullo /"nd right! Mem1er of the Federal Reserve Board0%9anet Dellen and Caniel Tarullo are members of the (ouncil on#oreign $elations, a private organi'ation in Bew Dork (ity. /'im &atson@+gen(e Fran(eG*[email protected] 6mages0



The Board of .overnors hold an open 1oard meeting on )e(em1er $! "# " to dis(uss proposed rules to implement tenhan(ed prudential standards and early remediation re5uirements of se(tions L and of the )oddGFrank +(t 1anking organiAations and foreign non1ank finan(ial (ompanies% /*hoto:Federal Reserve0

http://www.flickr.com/photos/federalreserve/8549580872/




!he 4ederal "eser e Board of @o ernors hold an o#en board meeting on December +, 6< 6 to discuss #ro#osed rules to im#lement theenhanced #rudential standards and early remediation re uirements of sections /> and // of the Dodd-4rank 0ct for foreign bankingorgani2ations and foreign nonbank financial com#anies. 4ederal "eser e 1hairman Ben Bernanke and 4ederal "eser e Aice 1hairman ;anet&ellen #reside o er the meeting. (Photo7 4ederal "eser e )

4ormer 1hairmen of the 4ederal "eser e $ir 0lan @reens#an (left) and Paul Aolcker share a laugh while #artici#ating in a #anel discussion onca#ital markets at @eorgetown 'ni ersity in Washington, D.1. on *arch , 6<<:. ir 8lan reenspan an# aul 9ol+ker are members ofthe Coun+il on Foreign 6elations, a pri4ate organi:ation in 5ew ;ork Cit!. (Photo by 1hi# $omode illaC@etty 8mages)








($ource7 Back From the Brink: The Greenspan Years by $te en E. Beckner)




Left #hoto7 @old ault of 4ederal "eser e Bank of =ew &ork. @old bars are held in 66 com#artments in the main and au3illary

aults. (Photo7 htt#7CCgonyc.about.comCodC#hotogalleriesCigC4ederal-"eser e-Bank-PicturesC*o [email protected] )

"ight #hoto7 F er G6 million in foreign gold are counted by HsittersH in the bottom most ault, (:/ feet below the busy financial district), of the4ederal "eser e Bank of =ew &ork in =ew &ork 1ity on *arch 9, /9. ach gold bar weighed between 6: and 69 #ounds and was worth

G +,<<< (in /9 dollars). F er one uarter of all the official monetary gold of the free world--about G .+ billion worth--is stored in 6<com#artments held by o er :< countries and watched constantly by Hsitters.H $ales occasion fre uent transfers and gold is shifted bar by barfrom one to another of the com#artments. (BettmannC1F"B8$)

2Yeah! itEs interestingSthe former head of .oldman <a(hs! 'ohn &hitehead! was also the former head of the New York FReserve% +nd 6 met with him! and he said as soon as the Fed stops 1uying all the de1t that weEre issuing whi(h theyEthe FedEs 1uying like threeG5uarters of the de1t that +meri(a issues% 7e said! on(e thatEs over! he said weEre going toTreasury au(tion! interest rates are going to have to go up% &eEre living in this 1orrowed fantasy world! where the govon 1orrowing money% You know! we 1orrow this e3tra trillion a year! we wonder whoEs loaning us the trillion? The Cloaning us anymore% The Russians arenEt loaning it to us anymore% <o whoEs giving us the trillion? +nd the answer imaking it up% The Federal Reserve is 4ust taking it and saying! 27ere! weEre giving it%E 6tEs 4ust made up money! awell for our e(onomi( future% You know! some of these things are (omple3 enough itEs not easy for people to understanpoint of saying! 1ankrupt(y usually (on(entrates the mind%9

Mitt Romney! "# " presidential (andidate for the Repu1li(an *arty! in a spee(h that was se(retly videotaped in "# " /2*eople ,ideo90

2There are $H per(ent of the people who will vote for the president no matter what% +ll right! there are $H per(ent whowho are dependent upon government! who 1elieve that they are vi(tims! who 1elieve the government has a responsi1ilitthem! who 1elieve that they are entitled to health (are! to food! to housing! to youGnameGit GG that thatIs an entitlemegovernment should give it to them% +nd they will vote for this president no matter what% %%% These are people who

MUy 4o1 is not to worry a1out those people% 6Ill never (onvin(e them they should take personal responsi1ility and (a Mitt Romney! "# " presidential (andidate for the Repu1li(an *arty! in a spee(h that was se(retly videotaped in "# " /2

*eople ,ideo90

http://gonyc.about.com/od/photogalleries/ig/Federal-Reserve-Bank-Pictures/Moving-Gold-Bars.htm

http://gonyc.about.com/od/photogalleries/ig/Federal-Reserve-Bank-Pictures/Moving-Gold-Bars.htm



4ederal "eser e Board 1hairman Ben Bernanke (>th ") chairs a meeting of the 4ederal F#en *arket 1ommittee, the 4ederal "eser eIsinterest rate-setting body, in Washington, D.1. in this *arch :, 6<< #icture released on *arch , 6<< . !he 4ederal "eser e announcedthe #urchase of longer-dated !reasury securities to hel# end a dee#ening '.$. recession.(" '! "$C;oe Pa elC4ederal "eser e BoardC andout)

0n em#loyee hauls a set of gold bars inside the gold ault at the 4ederal "eser e Bank of =ew &ork in =ew &ork 1ity on ;une 6 , 6<<9.(J "andy FlsonC=ational @eogra#hic $ocietyC1orbis)



2The real truth of the matter is! as you and 6 know! that a finan(ial element in the large (enowned the government ever sin(e the days of +ndrew 'a(kson%9

;%<% *resident Franklin )% Roosevelt! from a Novem1er ">! >> letter to -dward Ma



=ew $eries 6<< one dollar bill notes #ass through a #rinting #ress on =o ember 6 , 6<< at the Bureau of ngra ing and Printing inWashington, D.1. !he new dollar bills contain the signatures of '.$. !reasury $ecretary Paul FII=eill and '.$. !reasurer "osario *arin.(Photo by 0le3 WongC@etty 8mages)



+ Vim1a1we man named +le3 Mupondi hangs oneGdollar Federal Reserve Notes on a drying line after washing theVim1a1we on 'uly ! "# #% The washing ma(hine (y(le takes a1out $L minutes! and 2.eorge &ashington9 oneGd(ome out mu(h (leaner than 1efore in Vim1a1weGstyle laundering of dirty money% Vim1a1weans suffer from hypafter the Muga1e regime massGprodu(ed their own 1ank notes8 Vim1a1weans now use +meri(an (urren(y as legal attempt to (ur1 e(onomi( inflation in their own nation% /+* *hoto0

o(als sell pirated C)Es from the street for ;%<% dollars in )ili! -ast Timor on <eptem1er ! "## % The ;%<% do(urren(y of -ast Timor% -ast Timor is a former *ortuguese (olony and a former provin(e of 6ndonesia% /.etty 6mages0

http://www.daylife.com/photo/0ekJ9Ab2Wg9fe?q=zimbabwe+dollar

http://www.life.com/image/1160548

http://www.daylife.com/photo/0ekJ9Ab2Wg9fe?q=zimbabwe+dollar

http://www.life.com/image/1160548



Fwen D. &oung watches mile *oreau (left),@o ernor of the Bank of 4rance, shake hands with Kalmar $chacht (right), President ofthe "eichsbank, in 6 after they acce#ted the terms of the &oung Plan. Kalmar $chacht was tried in =uremberg, @ermany for warcrimes and collaboration with the =a2is after World War 88. Fwen D. &oung was the 1hairman of the board of @eneral lectric1om#any ( 66- , +6- ++), <eput! Chairman of the Fe#eral 6eser4e ank of 5ew ;ork ( )*/0 )3/", Chairman of theFe#eral 6eser4e ank of 5ew ;ork ( )310 )=>" , Director of the 1ouncil on 4oreign "elations ( 6:- +<), and !rustee of the"ockefeller 4oundation ( 69- ). (Photo7 Owen D. Young: A New Type of In ustria! "ea er by 8da *. !arbell)



680 F.2d 1239John L. LEWIS, !ainti""#A$$%!!ant,

&.'(I)E* S)A)ES o" A+%ri a, *%"%ndant#A$$%!!%%.

No. 80-5905.

United States Court of Appeals,Ninth Circuit.

Submitted March 2, 1982. Decided April 19, 1982.

As Amended une 2!, 1982.

afayette % Blair! Compton! Cal%! for plaintiff@appellant%ames R% <ullivan! +sst% ;% <% +tty%! os +ngeles! Cal%! argued! for defendant@appellee8 +ndrea <heridan Jrdin! ;% <%Cal%! on 1rief%+ppeal from the ;nited <tates )istri(t Court for the Central )istri(t of California%Before *JJ - and BJJC7-,-R! Cir(uit 'udges! and <J JMJN! )istri(t 'udge% Q*JJ -! Cir(uit 'udge:

-n Ju! 2/, 19/9, a$$%!!ant John L% is as in ur%d a &%hi !% o n%d and o$%rat%d th% Los Ang%!%s ran h o" th% F%d%ra

%s%r&% Ban4 o" San Fran is o. L% is rought this a tion in distri t ourt a!!%ging urisdi tion und%r th% F%d%ra! )ort 5!ai+s A tth% A t7, 28 '.S.5. 13 6 7. )h% 'nit%d Stat%s +o&%d to dis+iss "or !a 4 o" su % t +att%r urisdi tion. )h% distri t ourtdis+iss%d, ho!ding that th% F%d%ra! %s%r&% Ban4 is not a "%d%ra! ag%n ithin th% +%aning o" th% A t and that th% ourtth%r%"or% !a 4%d su % t +att%r urisdi tion. W% a""ir+.

In %na ting th% F%d%ra! )ort 5!ai+s A t, 5ongr%ss $ro&id%d a !i+it%d ai&%r o" th% so&%r%ign i++unit o" th% 'nit%d Stat%s "or%rtain torts o" "%d%ra! %+$!o %%s. 'nit%d Stat%s &. -r!%ans, 2: '.S. 80/, 813, 96 S.5t. 19/1, 19/:, 8 L.Ed.2d 390 19/67.

S$% i"i a!! , th% A t r%at%s !ia i!it "or in uri%s ; aus%d th% n%g!ig%nt or rong"u! a t or o+ission; o" an %+$!o %% o" an"%d%ra! ag%n a ting ithin th% s o$% o" his o""i % or %+$!o +%nt. 28 '.S.5. 13 6 7, 26/1. ;F%d%ra! ag%n ; is d%"in%d as

th% %=% uti&% d%$art+%nts, th% +i!itar d%$art+%nts, ind%$%nd%nt %sta !ish+%nts o" th% 'nit%d Stat%s, and or$orations a ting$ri+ari! as instru+%nta!iti%s o" th% 'nit%d Stat%s, ut do%s not in !ud% an ontra tors ith th% 'nit%d Stat%s.

28 '.S.5. 26/1. )h% !ia i!it o" th% 'nit%d Stat%s "or th% n%g!ig%n % o" a F%d%ra! %s%r&% Ban4 %+$!o %% d%$%nds, th%r%"oh%th%r th% Ban4 is a "%d%ra! ag%n und%r 26/1.

)h%r% ar% no shar$ rit%ria "or d%t%r+ining h%th%r an %ntit is a "%d%ra! ag%n ithin th% +%aning o" th% A t, ut th% riti a"a tor is th% %=ist%n % o" "%d%ra! go&%rn+%nt ontro! o&%r th% ;d%tai!%d $h si a! $%r"or+an %; and ;da to da o$%ration; o" %ntit . 'nit%d Stat%s &. -r!%ans, 2: '.S. 80/, 81 , 96 S.5t. 19/1, 19/:, 8 L.Ed.2d 390 19/67, Logu% &. 'nit%d Stat%s, 12 '.S.:21, :28, 93 S.5t. 221:, 2219, 3/ L.Ed.2d 121 19/37. -th%r "a tors ourts ha&% onsid%r%d in !ud% h%th%r th% %ntit is anind%$%nd%nt or$oration, %ar! &. 'nit%d Stat%s, 230 F.2d 2 3 10th 5ir. 19:67, Fr%%!ing &. F%d%ra! *%$osit Insuran %5or$oration, 221 F.Su$$. 9:: W.*.-4!a.19627, a"">d $%r uria+, 326 F.2d 9/1 10th 5ir. 19637, h%th%r th% go&%rn+%nt isin&o!&%d in th% %ntit >s "inan %s. oddard &. *istri t o" 5o!u+ ia %d%&%!o$+%nt Land Ag%n , 28/ F.2d 3 3, 3 :

*.5.5ir.19617, %rt. d%ni%d, 366 '.S. 910, 81 S.5t. 108:, 6 L.Ed.2d 23: 19617, Fr%%!ing &. F%d%ra! *%$osit Insuran %5or$oration, 221 F.Su$$. 9::, and h%th%r th% +ission o" th% %ntit "urth%rs th% $o!i o" th% 'nit%d Stat%s, oddard &. *istri to" 5o!u+ ia %d%&%!o$+%nt Land Ag%n , 28/ F.2d at 3 :. E=a+ining th% organi@ation and "un tion o" th% F%d%ra! %s%r&%Ban4s, and a$$! ing th% r%!%&ant "a tors, % on !ud% that th% %s%r&% Ban4s ar% not "%d%ra! instru+%nta!iti%s "or $ur$os%s o

th% F)5A, ut ar% ind%$%nd%nt, $ri&at%! o n%d and !o a!! ontro!!%d or$orations.Ea h F%d%ra! %s%r&% Ban4 is a s%$arat% or$oration o n%d o++%r ia! an4s in its r%gion. )h% sto 4ho!ding o++%r ia!

an4s %!% t t o thirds o" %a h Ban4>s nin% +%+ %r oard o" dir% tors. )h% r%+aining thr%% dir% tors ar% a$$oint%d th%F%d%ra! %s%r&% Board. )h% F%d%ra! %s%r&% Board r%gu!at%s th% %s%r&% Ban4s, ut dir% t su$%r&ision and ontro! o" %is %=%r is%d its oard o" dir% tors. 12 '.S.5. 301. )h% dir% tors %na t !a s r%gu!ating th% +ann%r o" ondu ting g%n%ra!Ban4 usin%ss, 12 '.S.5. 3 1, and a$$oint o""i %rs to i+$!%+%nt and su$%r&is% dai! Ban4 a ti&iti%s. )h%s% a ti&iti%s in !ud%

o!!% ting and !%aring h% 4s, +a4ing ad&an %s to $ri&at% and o++%r ia! %ntiti%s, ho!ding r%s%r&%s "or +%+ %r an4s,dis ounting th% not%s o" +%+ %r an4s, and u ing and s%!!ing s% uriti%s on th% o$%n +ar4%t. S%% 12 '.S.5. 3 1 361.

Ea h Ban4 is statutori! %+$o %r%d to ondu t th%s% a ti&iti%s ithout da to da dir% tion "ro+ th% "%d%ra! go&%rn+%nt. )hus,"or %=a+$!%, th% int%r%st rat%s on ad&an %s to +%+ %r an4s, indi&idua!s, $artn%rshi$s, and or$orations ar% s%t %a h %s%Ban4 and th%ir d% isions r%garding th% $ur has% and sa!% o" s% uriti%s ar% !i4% is% ind%$%nd%nt! +ad%.

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http://ftp.resource.org/courts.gov/c/F2/680/680.F2d.1239.80-5905.html#fn-s



It is %&id%nt "ro+ th% !%gis!ati&% histor o" th% F%d%ra! %s%r&% A t that 5ongr%ss did not int%nd to gi&% th% "%d%ra! go&%rdir% tion o&%r th% dai! o$%ration o" th% %s%r&% Ban4s<

It is $ro$os%d that th% o&%rn+%nt sha!! r%tain su""i i%nt $o %r o&%r th% r%s%r&% an4s to %na !% it to %=%r is% a dir% t auth%n n% %ssar to do so, ut that it sha!! in no a att%+$t to arr on through its o n +% hanis+ th% routin% o$%rations andan4ing hi h r% uir% d%tai!%d 4no !%dg% o" !o a! and indi&idua! r%dit and hi h d%t%r+in% th% "unds o" th% o++unit in an

gi&%n instan %. In oth%r ords, th% r%s%r&% an4 $!an r%tains to th% o&%rn+%nt $o %r o&%r th% %=%r is% o" th% road%r "un tions, hi!% it !%a&%s to indi&idua!s and $ri&at%! o n%d institutions th% a tua! dir% tion o" routin%.

C. . %$ort (o. 69, 63 5ong. 1st S%ss. 18 19 19137.

)h% "a t that th% F%d%ra! %s%r&% Board r%gu!at%s th% %s%r&% Ban4s do%s not +a4% th%+ "%d%ra! ag%n i%s und%r th% Anit%d Stat%s &. -r!%ans, 2: '.S. 80/, 96 S.5t. 19/1, 8 L.Ed.2d 390 19/67, th% Su$r%+% 5ourt h%!d that a o++unit a tionag%n as not a "%d%ra! ag%n or instru+%nta!it "or $ur$os%s o" th% A t, %&%n though th% ag%n as organi@%d und%r "%dr%gu!ations and h%a&i! "und%d th% "%d%ra! go&%rn+%nt. B% aus% th% ag%n >s da to da o$%ration as not su$%r&is%d "%d%ra! go&%rn+%nt, ut !o a! o""i ia!s, th% 5ourt r%"us%d to %=t%nd "%d%ra! tort !ia i!it "or th% n%g!ig%n % o" th% ag%n%+$!o %%s. Si+i!ar! , th% F%d%ra! %s%r&% Ban4s, though h%a&i! r%gu!at%d, ar% !o a!! ontro!!%d th%ir +%+ %r an4s.t $i a! "%d%ra! ag%n i%s, %a h an4 is %+$o %r%d to hir% and "ir% %+$!o %%s at i!!. Ban4 %+$!o %%s do not $arti i$at% in th5i&i! S%r&i % %tir%+%nt S st%+. )h% ar% o&%r%d or4%r>s o+$%nsation insuran %, $ur has%d th% Ban4, rath%r thaF%d%ra! E+$!o %%s 5o+$%nsation A t. E+$!o %%s tra&%!ing on Ban4 usin%ss ar% not su % t to "%d%ra! tra&%! r%gu!ations annot r% %i&% go&%rn+%nt %+$!o %% dis ounts on !odging and s%r&i %s.

)h% Ban4s ar% !ist%d n%ith%r as ; ho!! o n%d; go&%rn+%nt or$orations und%r 31 '.S.5. 8 6 nor as ;+i=%d o n%rshi$;or$orations und%r 31 '.S.5. 8:6, a "a tor onsid%r%d in %ar! &. 'nit%d Stat%s, 230 F.2d 2 3 10th 5ir. 19:67, hi h h%!d that

th% 5i&i! Air atro! is not a "%d%ra! ag%n und%r th% A t. 5!os%! r%s%+ !ing th% status o" th% F%d%ra! %s%r&% Ban4, th% 5iatro! is a non $ro"it, "%d%ra!! hart%r%d or$oration organi@%d to s%r&% th% $u !i %!"ar%. But % aus% 5ongr%ss> ontro!

th% 5i&i! Air atro! is !i+it%d and th% or$oration is not d%signat%d as a ho!! o n%d or +i=%d o n%rshi$ go&%rn+%ntor$oration und%r 31 '.S.5. 8 6 and 8:6, th% ourt on !ud%d that th% or$oration is a non go&%rn+%nta!, ind%$%nd%nt

%ntit , not o&%r%d und%r th% A t.

Additiona!! , %s%r&% Ban4s, as $ri&at%! o n%d %ntiti%s, r% %i&% no a$$ro$riat%d "unds "ro+ 5ongr%ss. 5". oddard &. *istri t 5o!u+ ia %d%&%!o$+%nt Land Ag%n , 28/ F.2d 3 3, 3 : *.5.5ir.19617, %rt. d%ni%d, 366 '.S. 910, 81 S.5t. 108:, 6 L.Ed.2d23: 19617 ourt h%!d !and r%d%&%!o$+%nt ag%n as "%d%ra! ag%n "or $ur$os%s o" th% A t in !arg% $art % aus% ag%nr% %i&%d dir% t a$$ro$riat%d "unds "ro+ 5ongr%ss.7

Fina!! , th% Ban4s ar% %+$o %r%d to su% and % su%d in th%ir o n na+%. 12 '.S.5. 3 1. )h% arr th%ir o n !ia i!it insuran %and t $i a!! $ro %ss and hand!% th%ir o n !ai+s. In th% $ast, th% Ban4s ha&% d%"%nd%d against tort !ai+s dir% t! , through$ri&at% ouns%!, not go&%rn+%nt attorn% s, %.g., Ban o *% Es$ana &. F%d%ra! %s%r&% Ban4 o" (% Dor4, 11 F.2d 38 2d 5ir.

19 07 Cuntington )o %rs &. Fran4!in (ationa! Ban4, ::9 F.2d 863 2d 5ir. 19//7 Bo!!o &. F%d%ra! %s%r&% Ban4 o" SanFran is o, 6:0 F.2d 1093 9th 5ir. 19817, and th% ha&% n%&%r %%n r% uir%d to s%tt!% tort !ai+s und%r th% ad+inistrati&%$ro %dur% o" 28 '.S.5. 26/2. )h% ai&%r o" so&%r%ign i++unit ontain%d in th% A t ou!d th%r%"or% a$$%ar to % ina$$osit% toth% Ban4s ho ha&% not histori a!! !ai+%d or r% %i&%d g%n%ra! i++unit "ro+ udi ia! $ro %ss.

)h% %s%r&% Ban4s ha&% $ro$%r! %%n h%!d to % "%d%ra! instru+%nta!iti%s "or so+% $ur$os%s. In 'nit%d Stat%s &. Co!!ingsh6/2 F.2d /:1 9th 5ir. 19827, this ourt h%!d that a F%d%ra! %s%r&% Ban4 %+$!o %% ho as r%s$onsi !% "or r% o++%nding%=$%nditur% o" "%d%ra! "unds as a ;$u !i o""i ia!; und%r th% F%d%ra! Bri %r Statut%. )hat statut% road! d%"in%s $u !i o""ito in !ud% an $%rson a ting ;"or or on %ha!" o" th% o&%rn+%nt.; S. %$. (o. 2213, 8/th 5ong., 2nd S%ss. 19627, r%$rint%d in

19627 '.S. 5od% 5ong. Ad. (% s 38:2, 38:6. S%% 18 '.S.5. 201 a7. )h% t%st "or d%t%r+ining status as a $u !i o""i ia! turnson h%th%r th%r% is ;su stantia! "%d%ra! in&o!&%+%nt; in th% d%"%ndant>s a ti&iti%s. 'nit%d Stat%s &. Co!!ingsh%ad, 6/2 F.2d at/: . In ontrast, und%r th% F)5A, "%d%ra! !ia i!it is narro ! as%d on traditiona! ag%n $rin i$!%s and do%s not n% %ssari! !i%

h%n th% tort"%asor si+$! or4s "or an %ntit , !i4% th% %s%r&% Ban4s, hi h $%r"or+ i+$ortant a ti&iti%s "or th% go&%rn+%nt.

)h% %s%r&% Ban4s ar% d%%+%d to % "%d%ra! instru+%nta!iti%s "or $ur$os%s o" i++unit "ro+ stat% ta=ation. F%d%ra! %s%r&%Ban4 o" Boston &. 5o++ission%r o" 5or$orations )a=ation, 99 F.2d 60 1st 5ir. 19/ 7, a"t%r r%+and, :20 F.2d 221 1st 5ir.19/:7 F%d%ra! %s%r&% Ban4 o" Ginn%a$o!is &. %gist%r o" *%%ds, 288 Gi h. 120, 28 (.W. 66/ 19397. )h% t%st "or d%t%r+ining

h%th%r an %ntit is a "%d%ra! instru+%nta!it "or $ur$os%s o" $rot% tion "ro+ stat% or !o a! a tion or ta=ation, ho %&%r, is &%rroad< h%th%r th% %ntit $%r"or+s an i+$ortant go&%rn+%nta! "un tion. F%d%ra! Land Ban4 &. Bis+ar 4 Lu+ %r 5o., 31 '.S.

9:, 102, 62 S.5t. 1, :, 86 L.Ed. 6: 19 17 ust &. Johnson, :9/ F.2d 1/ , 1/8 9th 5ir. 19/97, %rt. d%ni%d, '.S. 96 , 100 S.5t.:0, 62 L.Ed.2d 3/6 19/97. )h% %s%r&% Ban4s, hi h "urth%r th% nation>s "is a! $o!i , !%ar! $%r"or+ an i+$ortant

go&%rn+%nta! "un tion.

%r"or+an % o" an i+$ortant go&%rn+%nta! "un tion, ho %&%r, is ut a sing!% "a tor and not d%t%r+inati&% in tort !ai+s a tions.F%d%ra! %s%r&% Ban4 o" St. Louis &. G%tro %ntr% I+$ro&%+%nt *istri t, 6:/ F.2d 183, 18: n.2 8th 5ir. 19817, 5". %ar! &. 'nit%dStat%s, 230 F.2d 2 3 10th 5ir. 19:67. Stat% ta=ation has traditiona!! %%n &i% %d as a gr%at%r o sta !% to an %ntit >s a i!it to$%r"or+ "%d%ra! "un tions than %=$osur% to udi ia! $ro %ss th%r%"or% ta= i++unit is !i %ra!! a$$!i%d. F%d%ra! Land Ban4 &

ridd , 29 '.S. 229, 23:, :: S.5t. /0:, /08, /9 L.Ed. 1 08 19::7. F%d%ra! tort !ia i!it , ho %&%r, is as%d on traditiona! ag%n



$rin i$!%s and thus d%$%nds u$on th% $rin i$a!>s a i!it to ontro! th% a tions o" his ag%nt, and not si+$! u$on h%th%r th%%ntit $%r"or+s an i+$ortant go&%rn+%nta! "un tion. S%% 'nit%d Stat%s &. -r!%ans, 2: '.S. 80/, 81:, 96 S.5t. 19/1, 19/6, 8L.Ed.2d 390 19/67, 'nit%d Stat%s &. Logu%, 12 '.S. :21, :2/ 28, 93 S.5t. 221:, 2219, 3/ L.Ed.2d 121 19/37.

Brin4s In . &. Board o" o&%rnors o" th% F%d%ra! %s%r&% S st%+, 66 F.Su$$. 116 *.*.5.19/97, h%!d that a F%d%ra! %s%r&% is a "%d%ra! instru+%nta!it "or $ur$os%s o" th% S%r&i % 5ontra t A t, 1 '.S.5. 3:1. 5iting F%d%ra! %s%r&% Ban4 o" Boston andF%d%ra! %s%r&% Ban4 o" Ginn%a$o!is, th% ourt a$$!i%d th% ;i+$ortant go&%rn+%nta! "un tion; t%st and on !ud%d that th% t%r;F%d%ra! o&%rn+%nt; in th% S%r&i % 5ontra t A t +ust % ;!i %ra!! onstru%d to %""% tuat% th% A t>s hu+anitarian $ur$os%s$ro&iding +ini+u+ ag% and "ring% %n%"it $rot% tion to indi&idua!s $%r"or+ing ontra ts ith th% "%d%ra! go&%rn+%nt.; Id.288 Gi h. at 120, 28 (.W.2d 66/.

Su h a !i %ra! onstru tion o" th% t%r+ ;"%d%ra! ag%n ; "or $ur$os%s o" th% A t is un arrant%d. 'n!i4% in Brin4s, $!ainti""s ar%not ithout a "oru+ in hi h to s%%4 a r%+%d , "or th% +a ring an a$$ro$riat% stat% tort !ai+ dir% t! against th% Ban4 andi" su %ss"u!, th%ir $ros$% ts o" r% o&%r ar% right sin % th% institutions ar% oth high! so!&%nt and a+$! insur%d.

For th%s% r%asons % ho!d that th% %s%r&% Ban4s ar% not "%d%ra! ag%n i%s "or $ur$os%s o" th% F%d%ra! )ort 5!ai+s A t and %a""ir+ th% udg+%nt o" th% distri t ourt.

AFFI GE*.

)h% Conora !% us J. So!o+on, S%nior *istri t Judg% "or th% *istri t o" -r%gon, sitting d%signation

<our(e:http:@@ftp%resour(e%org@(ourts%gov@(@F"@ =#@ =#%F"d% "> %=#GL #L%html

*residents of the Federal Reserve Bank of New York

BenKamin $trongPresident of the 4ederal

"eser e Bank of =ew&ork ( +- 69)

@eorge L. arrisonB.0. &ale <President of the 4ederal

"eser e Bank of =ew&ork ( 69- +<)5

President of =ew &orkLife 8nsurance 1o.

( + - +9)

0llan $#roulPresident of the 4ederal

"eser e Bank of =ew&ork ( + - >/)

0lfred ayesB.0. &ale <President of the 4ederal

"eser e Bank of =ew&ork ( >/- :>)

Paul 0. Aolcker 0.B. Princeton +

President of the 4ederal"eser e Bank of =ew

&ork ( :>- : )51hairman of the 4ederal

"eser e ( : - 9:)

0nthony *. $olomonB.0. '. of 1hicago +President of the 4ederal

"eser e Bank of =ew&ork ( 9<- 9+)

. @erald 1orriganPresident of the 4ederal

"eser e Bank of =ew&ork ( 9>- )

William ;. *cDonoughPresident of the 4ederal

"eser e Bank of =ew&ork ( -6<< )

!imothy 4. @eithner 0.B. Dartmouth 9

President of the 4ederal"eser e Bank of =ew

&ork (6<< -6<< )5'.$. $ecretary of the!reasur y (6<< -6< )

William 1. DudleyPresident of the 4ederal

"eser e Bank of =ew&ork (6<< -#resent)

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http://ftp.resource.org/courts.gov/c/F2/680/680.F2d.1239.80-5905.html







*rominent )ire(tors of the Federal Reserve Bank of New York Pierre ;ay 1hairman of the 4ederal "eser e Bank of =ew &ork ( +- 6/)

1hairman of the board of 4iduciary !rust 1om#any M=ew &ork 1ityN ( <- +>)Fwen D. &oung 1hairman of the 4ederal "eser e Bank of =ew &ork ( 9- +<)

De#uty 1hairman of the 4ederal "eser e Bank of =ew &ork ( 6:- :)1hairman of the board of @eneral lectric 1o. ( 66- , +6- ++)

Beardsley "uml 1hairman of the 4ederal "eser e Bank of =ew &ork ( + - +/)!reasurer of ". . *acy % 1o. M*acy s de#artment storeN ( +- +>)1hairman of the board of ". . *acy % 1o. ( +>- + )

Phili# D. "eed 1hairman of the 4ederal "eser e Bank of =ew &ork ( /<- />)1hairman of the board of @eneral lectric 1o. ( +<- +6, +>- >9)

0lbert L. =ickerson 1hairman of the 4ederal "eser e Bank of =ew &ork ( / - : )1hairman and 1 F of $ocony-*obil Fil 1o. (later *obil Fil 1or#.) ( / - / )

"oswell L. @il#atric 1hairman of the 4ederal "eser e Bank of =ew &ork ( :6- :>)Partner of 1ra ath, $waine % *oore Mlaw firm in =ew &ork 1ityN ( - > , > - / , /+- ::)

ohn Brademas 1hairman of the 4ederal "eser e Bank of =ew &ork ( 9 - 9:)President of =ew &ork 'ni ersity ( 9 - )5 '.$. 1ongressman (D-8ndiana, > - 9 )

ohn ". F#el 1hairman of the 4ederal "eser e Bank of =ew &ork ( 9:- 99)1lass B Director of the 4ederal "eser e Bank of =ew &ork ( 9 - 9/)1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( 9:- 99)1hairman of the board of 8nternational Business *achines 1or#. (8B*) ( 9 - 9/)

1yrus ". Aance 1hairman of the 4ederal "eser e Bank of =ew &ork ( 9 - )Partner of $im#son, !hacher % Bartlett Mlaw firm in =ew &ork 1ityN ( >/- / , /:- ::, 9<- 9)

*aurice ". @reenberg 1hairman of the 4ederal "eser e Bank of =ew &ork ( +- >)1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( 9 - >)1hairman and 1 F of 0merican 8nternational @rou# ( 9 -6<<>)

ohn 1. Whitehead 1hairman of the 4ederal "eser e Bank of =ew &ork ( /- )1o-1hairman of @oldman, $achs % 1o. ( :/- 9+)5 1hairman of 0 0 8n estors 8nc. ( 9 - :)Peter @. Peterson 1hairman of the 4ederal "eser e Bank of =ew &ork (6<<<-6<< )

1hairman and 1 F of Lehman Brothers ( : - ::) and Lehman Brothers Euhn Loeb % 1o. ( ::- 9+)$enior 1hairman of !he Blackstone @rou# ( 9>-#resent)1hairman of the 1ouncil on 4oreign "elations ( 9>-6<<:)

Winthro# W. 0ldrich 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( +:- + )1hairman of the board of 1hase =ational Bank ( +- > )

Da id "ockefeller 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork (;anuary , : -December , :/)1hairman of the board of 1hase *anhattan Bank ( / - 9 )1hairman of the 1ouncil on 4oreign "elations ( :<- 9>)5 1o-4ounder of the !rilateral 1ommission ( : )

Lewis !. Preston 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( 9/- 99)1hairman and 1 F of ;.P. *organ % 1o. M*organ @uaranty !rust 1o. of =ew &orkN ( 9<- 9 )

Walter A. $hi#ley 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( 9-6<<<)1hairman of the board of 1hase *anhattan 1or#. ( /- )

$anford 8. Weill 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork (6<< -6<</)1hairman of the board of 1itigrou# ( 9-6<</)

amie Dimon 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork (6<<:-6< 6)1hairman of the board of ;P *organ 1hase (6<<:-#resent)

1harles . *itchell 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( 69- )1hairman of the board of =ational 1ity Bank of =ew &ork ( 6 - )

0lbert . Wiggin 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( 6- )1hairman of the board of 1hase =ational Bank ( 9- <)

oward 1. $he#erd 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( >/- >9)1hairman of the board of =ational 1ity Bank of =ew &ork Mlater 1itibankN ( >6- > )

enry 1. 0le3ander 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( > - / )1hairman of ;.P. *organ % 1o. ( >>- > )1hairman of the board of *organ @uaranty !rust 1o. of =ew &ork ( > - />)

@eorge 1ham#ion 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( /6- /+)

1hairman of the board of 1hase *anhattan Bank ( / - / )William B. !hom#son 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( +- )@eorge 4. Peabody 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( +- 6 )William . Woodin 1lass B Director of the 4ederal "eser e Bank of =ew &ork (0#ril , 6:-*arch , )

$ecretary of the !reasury ( )!homas ;. Watson 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( - +<)

1hairman ( + - >/) and President ( +- + ) of 8nternational Business *achines 1or#. (8B*)"ichard $. 4uld ;r. 1lass B Director of the 4ederal "eser e Bank of =ew &ork (6<<6-6<<9)

1hairman and 1 F of Lehman Brothers ( +-6<<9)@erald *. Le in 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork (=o ember 6<< -6<< )

1hairman and 1 F of !ime Warner, 8nc. ( -6<<6)ohn 4. Welch ;r. 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( 9>- <)

1hairman and 1 F of @eneral lectric 1o. ( 9 -6<< )



Federal Reserve )istri(ts and Their Bran(h Territories



4ederal "eser e chairmen ugene *eyer (left, *ay , 6) and *arriner $. ccles (right, 4ebruary <, /) a##ear on the front co er ofTime maga2ine during the @reat De#ression.

4ederal "eser e chairmen William *c1hesney *artin ;r. (left, $e#tember <, >/) and 0rthur 4. Burns (right, ;une , :<) a##ear on thefront co er of Time maga2ine.



4ederal "eser e chairmen Paul Aolcker (left, *arch 9, 96) and Ben Bernanke (right, December 69, 6<< ) a##ear on the front co er of Timaga2ine.

4ederal "eser e 1hairman 0lan @reens#an a##ears on the front co er of !ime maga2ine (left, =o ember <, :) and (with "obert . "ubinand Lawrence $ummers (right, 4ebruary >, ).



)h% Esta !ish+%nt o" th% F%d%ra! %s%r&%

!he 4ederal "eser e $ystem head uarters in Washington D.1.

Frigins of the 4ederal "eser e $ystem

!he Panic of <: brought the 0merican economy into a recession. 8n <9, members of 1ongress created a =ational *onetary 1ommissionto e3amine the Panic of <:. '.$. $enator =elson 0ldrich was a##ointed as the 1hairman of the =ational *onetary 1ommission. ($enator0ldrich s grandsons are Da id "ockefeller and =elson "ockefeller.) 8n =o ember <, $enator 0ldrich, along with Paul Warburg, enry P.Da ison, 4rank Aanderli#, BenKamin $trong, and 0bram Piatt 0ndrew, tra eled secretly to ;ekyll 8sland, an offshore island near $a annah,@eorgia, to write a bill establishing a central bank. !he si3 men de#arted from =ew ;ersey by train at night to ;ekyll 8sland on =o ember 66,

<5 the secret meeting on ;ekyll 8sland lasted a week.

8n 6, $enator 0ldrich #ro#osed a bill, known as the 0ldrich Bill, establishing a central bank. !he 0ldrich Bill, a "e#ublican bill, failed to #assin the Democratic-dominated 1ongress5 after the election of 6, the Democratic-dominated 1ongress #ro#osed an Oalternati e bill, knownas the Fwen-@lass Bill, establishing the 4ederal "eser e. ;.P. *organ, ;acob $chiff, and other Wall $treet bankers financed the #residentialcam#aigns of Woodrow Wilson (Democratic Party), William oward !aft ("e#ublican Party), and !heodore "oose elt (Progressi e Party) in

6. !he '.$. ouse of "e#resentati es a##ro ed the 4ederal "eser e 0ct on December 66, by a ote of 6 9 in fa or, /< against, and:/ absent5 the '.$. $enate a##ro ed the 4ederal "eser e 0ct on December 6 , by a ote of + in fa or, 6> against, and 6: absent..$. President Woodrow Wilson signed the 4ederal "eser e 0ct at /7<6 P.*. ( astern standard time) on December 6 , (two days before1hristmas) using Ofour gold #en.

!he 4ederal "eser e $ystem is a central bank that is owned and controlled by maKor #ri ate banks of =ew &ork 1ity and London. !he 4ederal"eser e $ystem is neither owned nor controlled by the '.$. go ernment. !he federal go ernment s role in the 4ederal "eser e is limited toa##ointments made by the President of the 'nited $tates and confirmations made by 1ongress. 0lthough the '.$. 1onstitution states thatO1ongress shall ha e Power !o coin *oney, regulate the Aalue thereof , it is the 4ederal "eser e that Oha e Power !o coin *oney, regulatethe Aalue thereof . !he 4ederal "eser e e3ercises its OPower !o coin *oney by #roducing bank notes, called O4ederal "eser e =otes ,which are backed by the Ofaith of the shareholders of the 4ederal "eser e.



Federal Reserve head5uarters in &ashington! )%C%





Prelude to the 4ederal "eser e7 !he Panic of <:

Wall $treet in =ew &ork 1ity during the Panic of <:



;.P. *organ talks to another banker in Fctober <:, Kust before the Panic.

;.P. *organ % 1o. #artner enry P. Da ison at his desk. (Photo7 arris % wing 1ollectionCLibrary of 1ongress)



New York Bank Note Company protest in New York City in >



The Godfathers of the #ederal $eserve

Paul *. Warburg (left) and 4rank 0. Aanderli# (right)

Left to right7 0bram Piatt 0ndrew, $en. =elson W. 0ldrich, BenKamin $trong, enry P. Da ison

1o-4ounders and @odfathers of the 4ederal "eser e $ystemPaul Warburg (OPaul ) Q Aice 1hairman of the 4ederal "eser e ( /- 9)5 *ember of the Board of @o ernors of the 4ederal"eser e ( +- 9)5 Director of the 1ouncil on 4oreign "elations ( 6 - 6)5 Partner of Euhn, Loeb % 1o. M=ew &ork 1ityN( <6- +)5 @erman-born ;ewish banker from amburg, @ermany

4rank 0. Aanderli# (OFr ille ) Q President of =ational 1ity Bank M=ew &ork 1ityN ( < - )5 0ssistant $ecretary of the !reasury( 9 :- < )5 1hairman of the conomic 1lub of =ew &ork ( /- 9)

BenKamin $trong (OBen ) Q @o ernor of the 4ederal "eser e Bank of =ew &ork ( +- 69)5 President of Banker s !rust of =ew&ork ( +)5 Aice President of Banker s !rust of =ew &ork ( < - +)5 *ember of the 1ouncil on 4oreign "elations

0bram Piatt 0ndrew (O0be ) Q '.$. ouse of "e#resentati es ( 6 - /, "e#ublican-*assachusetts)5 0ssistant $ecretary ofthe !reasury ( <- 6)5 Director of '.$. *int ( < - <)

=elson W. 0ldrich (O=elson ) Q '.$. $enator ( 99 - , "e#ublican-"hode 8sland)5 1hairman of the =ational *onetary1ommission ( <9- 6)5 Da id "ockefeller s grandfather5 former Aice President =elson 0. "ockefeller s grandfather5 father offormer 1hase =ational Bank chairman Winthro# W. 0ldrich

enry P. Da ison (OWilbur ) Q Partner of ;.P. *organ % 1o. M=ew &ork 1ityN5 father of 180 agent 4. !rubee Da ison



26n )e(em1er #H! *aul &ar1urgU first met +ldri(h when the latter visited uhn! oe1 to ask how the Rei(hs1antreasury 1illsSJn the last day of the year! while merrier souls got ready for New YearEs -ve! *aul sent +ldri(h a prouniform (urren(y! showing how (ompetitive hoarding of reserves produ(ed (alamity in 1anking (rises% By early giving spee(hes a1out how the *ani( (ould have 1een averted% +t the time! the Bank of -ngland! the Rei(hs1ank! aBan5ue de Fran(e operated independently of government and their 5uasiGprivate (hara(ter aroused alarm in +meri(a proponent of a strong (entral 1ank! *aul realiAed that any +meri(an (ounterpart would need popular (onstraints onJn May >#! #=! Congress ena(ted the +ldri(hG,reeland Curren(y Bill! whi(h instantly thrust *aul into the hurlyG+meri(an politi(s! for the law mandated a National Monetary Commission to investigate foreign 1anking systems areport with Congress% The (hairman would 1e <enator Nelson +ldri(h% a(king the re5uisite te(hni(al knowledg(ame to lean heavily upon *aulEs e3pertise% &hen +ldri(h and other (ommission mem1ers sailed for -urope that s

'a(o1U <(hiff provided introdu(tory letters to open doors in Berlin and later in Tokyo% 6n New York that fall! +ldhearings at the Metropolitan Clu1 and asked *aul to testify% +fterward! he drew him aside for an intimate teteGaGta1le% *aul was thunderstru(k to find that +ldri(h had not only read his essays 1ut now (ategori(ally endorsed a (e

The Warburgs 1y Ron Chernow! p% >"G >>

26n Novem1er #! NelsonU +ldri(h! *aul &ar1urgU! and four other e3perts sneaked off to dis(uss 1ank reforhideaway on 'ekyll 6sland off the .eorgia (oast% &ith )emo(rats now in (ontrol of Congress and *rogressives railin&all <treet! the 1ankers had to travel in(ognito! lest they 1e a((used of hat(hing a (a1al% + favorite haunt of &all <ty(oons! 'ekyll 6sland was deserted in Novem1er and thus was a natural (hoi(e for a (landestine rendeAvous% 6n 'e*aul and his (o(onspirators! outfitted as du(k hunters! 1oarded a private railroad (ar% Never having shot a 1ird! *a1orrow a rifle to parti(ipate in the mas5uerade% The men traveled 1y night! with the 1linds tightly drawn! and theother 1y their first names% /7en(e! they were (hristened The First Name Clu1%0 &hen they got off the train in Br.eorgia! they spoke loudly and ostentatiously a1out sport% +pparently! they were rather amateurish a(tors! for the knew at on(e who they were and said suspi(ious reporters had 1een snooping a1out% For a long time! the (onspiraadmit the meeting had even o((urred% &riting in "=! *aul still a1ided 1y the oath of se(re(y% 2Though eighteesin(e gone 1y! 6 do not feel free to give a des(ription of this most interesting (onferen(e (on(erning whi(h <enator +pledged all parti(ipants to se(re(y%9 )uring ten days at 'ekyll 6sland! *aulEs lowGkey 1ut for(eful personality stoomen de1ated at a round ta1le% &hen a (ause engaged him! *aul was tena(ious and he semihumorously du11ed him2fanati(9 a1out 1ank reform% +ldri(h wanted a (entral 1ank (ontrolled 1y 1ankers%9

The Warburgs 1y Ron Chernow! p% >>

Left #hoto7 '.$. $enator "obert Latham Fwen (Democratic Party-Fklahoma, <:- 6>)1enter #hoto7 William @. *c0doo, $ecretary of the !reasury ( - 9) and President Woodrow Wilson s son-in-law"ight #hoto7 1arter @lass, '.$. 1ongressman (Democratic Party-Airginia, <6- 9), $ecretary of the !reasury ( 9- 6<)and '.$. $enator (Democratic Party-Airginia, 6<- +/)

1arter @lass and "obert Latham Fwen were #rimary s#onsors of the 4ederal "eser e 0ct (formerly Fwen-@lass bill) that wouldbe signed by President Woodrow Wilson in December . "obert Latham Fwen re#udiated his su##ort for the 4ederal"eser e later and s#ent the rest of his life condemning the 4ederal "eser e.





&hen 6 (ame to that (ar! the 1linds were down and only slender threads of am1er light showed the shape of the windowsthe private (ar we 1egan to o1serve the ta1oo that had 1een fi3ed on last names% &e addressed one another as 2Ben!9 22Nelson!9 2+1e9 it is +1ram *iatt +ndrew% )avison and 6 adopted even deeper disguises! a1andoning our own first ntheory that we were always right! he 1e(ame &il1ur and 6 1e(ame Jrville! after those two aviation pioneers! the &right 16n(identally! for years afterward )avison and 6 (ontinued the pra(ti(e! in (ommuni(ations! and when we were together%

<e(ret Meeting on 'ekyl 6sland

The servants and the train (rew may have known the identities of one or two of us! 1ut they did not know all! and it was

all printed together that would have made our mysterious 4ourney signifi(ant in &ashington! in &all <treet! even in on)is(overy! we knew! simply must not happen! or else all our time and! effort would 1e wasted% 6f it were to 1e e3posedour parti(ular group had got together and written a 1anking 1ill! that 1ill would have no (han(e whatever of passage 1y Cwho was there in Congress who might have drafted a sound pie(e of legislation dealing with the te(hni(al 1anking pro1lewe were (on(erned? 6ndeed! there were surprisingly few 1ankers! 1esides those of us who had 1een (alled together! whspe(ial matters under (onsideration any thorough study whatever% Most 1ankers were relu(tant to a((ept any (hange8 .eowas%

&e pro(eeded! in the rear room of that private (ar! to get to work as soon as the train was moving% That first dis(ussionstru(ture and of what ought to 1e done a1out it produ(ed s(raps of ideas as formless as the (ontents of a rag 1ag% -veryolittle pie(e of a pro4e(t to throw on the ta1le for dis(ussion! and everyoneEs pet s(heme en(ountered some other fellowE

&e had traveled a good many miles ! without making mu(h progress! when 6 told my (ompanions of a pie(e of advi(e! away to (ondu(t a (onferen(e! that had 1een given to me 1y Frank Trum1ull! a dear friend of mine who was then the (hair1oard of the Chesapeake K Jhio Railway%

2&hat we ought to do first!9 6 said! 2is to set down those things a1out whi(h we are agreed8 then! one 1y one! we (an tathings a1out! whi(h we seem to disagree%9

From then on we made swift progress% 6 was appointed amanuensis and in my paleolithi( shorthand re(orded those proall were ready to e(ho as we heard them8 of (ourse! we knew that what we simply had to have was a more elasti( (urren1ank that would hold the reserves of all 1anks%

&e were taken 1y 1oat from the mainland to 'ekyl si(U 6sland and for a week or ten days were (ompletely se(luded! w(onta(t 1y telephone or telegraph with the outside% &e had disappeared from the world onto a deserted island% There (olored servants! 1ut they had no idea who Ben and *aul and Nelson were8 even ,anderlip! or )avison! or +ndrew! woulless than nothing to them% There we worked in a (lu1house 1uilt for people with a taste for lu3ury% The liveGoak tre1eards of <panish moss on 'ekyl si(U 6sland8 in Novem1er 1rown leaves make its forests utterly (harming% &ithout oto hunt! deer! turkey and 5uail appeared on the ta1le8 there were pans of oysters not an hour old when they were s(allop(ountry hams with that in(ompara1le flavor that is given to them in the <outh% &e were working so hard that we ate enoworked morning! noon and night%

&e put in the most intense period of work that 6 have ever had% <ometimes )avison and <trong would 1e up at day1reahorse1a(k ride! or a swim 1efore 1reakfast! 1ut right after 1reakfast the si3 of us would gather around the ta1le and resudis(ussion had ended the previous midnight% &e stu(k to the plan of putting down on paper what we agreed upon8 theretra(king! no wrangling% 7arry )avison was a splendid person to prevent wrangles in any (ompany% &ar1urg! the 1estGthere in an a(ademi( sense! was so intense and apparently felt a little antagonism toward +ldri(h that some of our momenmight have developed into real hindran(e had it not 1een for )avison% +lways he (ould 1e (ounted on to (ra(k a 4oke 4u

moment to ease a strain% No telephones rang! none (ould 1other us to ask for an opinion of the market! there were no dmeetings! no interruptions whatever% Thanksgiving o((urred during that week! and we ate wild turkey with oyster stuffright 1a(k to work% &e gave! ea(h of us! every 1it of our mental energy to the 4o1! and 6 en4oyed that period as 6 neveanything else% 6 lived during those days on 'ekyl si(U 6sland at the highest pit(h of intelle(tual awareness that 6 have 6t was entirely thrilling%

Colla1orating with +ldri(h

+s we dealt with 5uestions 6 re(orded our agreements in that shorthand 6 had first pra(ti(ed with (halk on the tail sto(k o1a(k in +urora% 6f it was to 1e a (entral 1ank! how was it to 1e owned 1y the 1anks! 1y the .overnment! or 4ointly? fi3ed upon 1ank ownership and 4oint (ontrol! we took up the politi(al pro1lem of whether it should 1e a num1er of institone% <hould the rate of interest 1e the same for the whole nation! or should it 1e higher in a (ommunity that was e3panand lower in another that was lagging? <hould it restri(t its servi(es to 1anks? &hat openGmarket operations should 1e



That was the sort of 5uestions we dealt with! and finally! at the end of our week! we had whipped into shape a 1ill that wpridefully! should 1e presented to Congress% +s 6 re(all it &ar1urg had some o14e(tions! 1ut we were in su1stantial agmeasure we had (reated% &e returned to the North as se(retly as we had gone <outh% 6t was agreed that <enator +ldrithe 1ill we had drafted to the <enate% 6t 1e(ame known to the (ountry as the +ldri(h *lan% +ldri(h and +ndrew left us aand &ar1urg! )avison! <trong and 6 returned to New York%

Congress was a1out to meet! 1ut on a <aturday we got word in New York that <enator +ldri(h was ill too ill to write ado(ument to a((ompany his plan% Ben <trong and 6 went on to &ashington and together we prepared that report% 6f wthen had 1een made known pu1li(ly! the effort would have 1een denoun(ed as a pie(e of &all <treet (hi(anery! whi(h it (not% +ldri(h never was a man to 1e a mere servant of the soG(alled money interests% 7e was a (ons(ientious! pu1li(Gsp

had (alled on the four of us who had &all <treet addresses 1e(ause he knew that we had for years 1een studying aspe(ts pro1lem with whi(h it was his pu1li( duty to deal%

6 Be(ome a Millionaire

+s is now well known! the 1ill we drafted did not get through Congress% +ldri(h retired from the <enate! and then a )emma4ority (ame down to &ashington along with &oodrow &ilson! who had defeated *resident Taft% The platform on wele(ted (ontained a statement e3pressing the opposition of the )emo(rati( *arty to the +ldri(h *lan! or a (entral 1ank% Thgood deal of dis(ussion a1out that% 6t was (ontended that originally the platform (ommittee had agreed upon the statemopposed to the +ldri(h *lan for a (entral 1ank%9

Now! although the +ldri(h Federal Reserve plan was defeated when it 1ore the name of +ldri(h! nevertheless its essentiaall (ontained in the plan that finally was adopted% 6t provided an organiAation to hold the reserves of all mem1er 1ankthat they would always 1e ready to relieve a mem1er 1ank under pressure 1y redis(ounting loans that it held% The law aprovided for twelve 1anks instead of the one whi(h the +ldri(h *lan would have (reated8 1ut the intent of the law was to twelve through the Federal Reserve Board in &ashington! so that in effe(t they would operate as a (entral 1ank% There5uestion a1out it: +ldri(h undou1tedly laid the essential! fundamental lines whi(h finally took the form of the Federal Re

!he ;ekyll 8sland 1lub at ;ekyll 8sland, @eorgia, '.$.0., near $a annah



O1olonel dward *. ouse (left) stands beside '.$. President Woodrow Wilson. dward *. ouse was a #olitical #owerbroker from 0ustin,!e3as, '.$.0. who su##orted the establishment of the 4ederal "eser e $ystem. dward *. ouse, one of the co-founders of the 1ouncil on4oreign "elations in =ew &ork 1ity, was the author of #hi!ip Dru: A ministrator , a book in which he #romotes communism, socialism, centralbank, and income ta3 in 0merica. O1olonel dward *. ouse was the son of British-born "ebel (1onfederate) blockade runner andbusinessman !homas William ouse5 !homas William ouse was the mayor of ouston, !e3as in 9/6.

dward *. ouse su##orted the establishment of the League of =ations while meeting with uro#ean #olitical leaders at the Paris Peace1onference. Woodrow Wilson once said7 @ r. House is m! se+on# personalit!. He is m! in#epen#ent self. His thoughts an# mine areone. Df D were in his pla+e D woul# #o Eust as he suggeste#... Df an!one thinks he is refle+ting m! opinion b! whate4er a+tion he takes,the! are wel+ome to the +on+lusion.A (p. =, Chapter B, 9olume , The Intimate Papers of Colonel House "



*resident &oodrow &ilson delivers a spee(h in Congress in &ashington! )%C% on +pril =! >% /*hoto: i1ra

eft photo: 'ekyll 6sland Clu1 in .eorgia in the early ##s

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The signing of the Federal Reserve +(t 1y *resident &oodrow &ilson! )e(em1er ">! >! is depi(ted in this painti&il1ur .% urtA! <r% Commissioned 1y the Federal Reserve Bank of +tlanta in ">% The painting is presently Federal Reserve Board of .overnors in &ashington! )%C% from the &oodrow &ilson Birthpla(e Foundation in ,irgmore people were present at the a(tual signing of the +(t! Mr% urtA (hose to pi(ture the following men% eft to rM% .arrison! <e(retary of &ar8 'osephus )aniels! <e(retary of the Navy8 Franklin % ane! <e(retary of the 6nteriBurleson! *ostmaster .eneral8 <enator Ro1ert Jwen! Chairman of the <enateEs Banking and Curren(y Committee8Clark! <peaker of the 7ouse8 &illiam .% M(+doo! <e(retary of the Treasury8 &oodrow &ilson! *resident of the ;niRepresentative Carter .lass! Chairman of the 7ouse Committee on Banking and Curren(y8 Representative Js(ar &%;nderwood8 and &illiam B% &ilson! <e(retary of a1or% /Courtesy! &oodrow &ilson Birthpla(e Foundation0





E7auds Glass and +wenF Cecember 18, /0/= edition of The New York Times









1o#y of international banker ;acob $chiff s letter from !reasury $ecretary William @. *c0doo (Fctober 69, ) and letter to '.$. PresidentWoodrow Wilson (December 6 , ) ($ource7 $aco% &. 'chiff: &is "ife an "etters by 1yrus 0dler, Aolume , #age 69:)







2<ele(t )ire(tors For Reserve Bank9 New York Times /May "H! $0

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“Name Class C Directors” – New York Times (October 1, 1914)

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2aul "arburg-s (rusade to 3stablish a (entral )ank in the &nited %tates

*aul &ar1urg was an advo(ate for a (entral 1ank in the ;nited <tates and was (hosen 1y *resident &oodrow &ilson tone of the first mem1ers of the Federal Reserve Board%

Mi(hael +% &hitehouseMay =

Whitehouse is staff assistant in the Office of the Secretary at the oard of !o"ernors in Washington# $%&% He has written andlectured e'tensi"ely on the early history of the Federal (eser"e System and )%S% banking%

6n paying tri1ute re(ently to 7enry &alli(h! late mem1er of the Federal Reserve Board of .overnors! Bankers MagaAthat &alli(h was a su((essor! in more than one respe(t! to *aul &ar1urg% Both of these 1oard mem1ers were emigr.ermany and from the higher (ir(les of .erman and -uropean finan(e% &ar1urg! a mem1er of the first Federal Reselike &alli(h! was a staun(h advo(ate of sound finan(e% Both! having witnessed the strengths and weaknesses of the1anking system during e(onomi( de1a(les as younger men! 1rought their e3perien(e to the ;nited <tates (ommitted tthose lessons to use%

6tIs 1een said that .overnor &alli(hIs spee(hes and essays represent one of the 1est finan(ial histories of our time% (ertainly 1e said of &ar1urgIs writings! spee(hes and testimony for the period after the turn of the (entury% 7is life(onstitutes perhaps the 1est history of the development of (entral 1anking in the ;nited <tates and mirrors its (ontrovstruggles and the final a((omplishment%

6tIs seems fitting then! in this HLth anniversary year of the Federal Reserve <ystem! to look at the life of &ar1urg!<ystemIs ar(hite(ts and staun(hest proponents%

"arburgHs 3arly )anking 3xperience

*aul &ar1urg was 1orn in 7am1urg in = =% The offspring of a prominent .erman 1anking family! he had 1een tra1anking in the -uropean finan(ial (apitals% +fter attending the university! at age = he 1egan his (areer in ondon years he worked for a 1anking and dis(ounting firm! followed 1y a short stint with a ondon sto(k1roker% +fter thaFran(e and gained additional e3perien(e at the Russian 1ank for foreign trade! whi(h had an agen(y in *aris% 7e the6ndia! China and 'apan 1efore returning to 7am1urg to 1e(ome a partner in M%M% &ar1urg K Co%! the family 1a

&ar1urgIs father had fully e3pe(ted that *aul would take (harge of his familyIs 1anking 1usiness along with his 1roand Ma3! 1ut in = L &ar1urg married an +meri(an (itiAen! Nina oe1! an a((omplished violinist! and 1egan to li

year in New York% <i3 years later! at age >$! he left .ermany! took up permanent residen(y in the ;nited <tates! anposition as a partner at his fatherGinGlawIs firm! uhn! oe1 and Co% one of &all <treetIs most important and rehouses% &hile adapting 5ui(kly to his new 1usiness! he still viewed the ;nited <tates through the eyes of a -uropeanwas literally sho(ked at what he (onsidered the primitive status of 1anking and finan(ial affairs%

6n the early ##s! the nation was suffering from periodi( li5uidity (rises% These (rises or pani(s o((urred 1e(ausystem was fettered with a rigid amount of (urren(y that (ould not meet unusual demands! and a system of reservespyramided up to New York% )uring these pani(s 1usinessmen and farmers were una1le to o1tain (redit to finan(e inand the produ(tion and transportation of (rops% The (rises spread a(ross the (ountry and (onverged upon &all <treeplunges in the sto(k market! a large num1er of 1ank and 1usiness failures! and a further shortage of (urren(y%

<u(h phenomena deeply affe(ted &ar1urg! a small unassuming man whose most o1vious physi(al (hara(teristi( was

drooping musta(he that gave him more the appearan(e of a tenor in a 1ar1ershop 5uartet than an important internati



&hile small in stature! however! he was hardly tame or timid in his professional assessment of (onditions then prevnew (ountry% The ;nited <tates! he said! is at a1out the same point that had 1een rea(hed 1y -urope at the timeMedi(is% &itnessing firstGhand a period of high interest rates where (all money went up to "L and ## per(en(ompelled to write an arti(le on the su14e(t then and there for hisU own 1enefit%

&ar1urg thought it a 1it presumptuous to attempt to edu(ate a (ountry to whi(h he was so new a resident! so when aasso(iate to put the paper aside! he did so and attended to duties at his firm% 7owever! when the same (onditions a1eginning of #H! he (ould hold his tongue no longer! and he 1egan to (ir(ulate his writings for the 1enefit of oth

The 2anic of /0 >

-arly in #H! New York Times +nnual Finan(ial Review pu1lished &ar1urgIs first offi(ial reform plan! entitled +Modified Central Bank! in whi(h he outlined remedies that he thought might avert pani(s! like the great one that wlater that year% Furthermore! he identified what he saw as the evils of the system in the ;nited <tates the de(of reserves and the immo1iliAation of (ommer(ialU paper% To remedy this! he advo(ated the development of andis(ount market and a -uropeanGstyle (ommer(ial paper% This system was 1ased partly on a (on(ept known as the do(trine! whi(h maintained that the money supply should vary with the shortGterm legitimate needs of 1usiness By allowing 1anks to 1orrow only against shortGterm loans! the real 1ills do(trine! in theory! provided li5uidity thrdis(ounting /or selling0 of loans and at the same time restri(ted the a1ility of a (entral 1ank to e3pand the supply of &ar1urg also proposed the (reation of a (entral reserve or (entral 1ank that would hold the reserve funds of memthat (olle(tive funds (ould 1e made availa1le to a 1ank in need of li5uidity% Both the dis(ounting and reserve (on(e(ontended! would help make money and (redit more elasti( and keep interest rates sta1le%

The *ani( of #H hit full stride in J(to1er% The (rash was of su(h severity that it immediately helped fo(us pu1li( the pro1lems with the monetary and 1anking system% +lthough the issue of a (entral 1ank was unpopular 1e(ause o(onnotations of powerful (entral authority! Congress was now for(ed to a(t% The +ldri(hG,reeland +(t! passed 1y CMay #=! provided for the issuan(e of emergen(y (urren(y and (reated a 1ipartisan National Monetary Commissio(entral 1anking and other alternatives for monetary and 1anking reform% &ar1urg would serve this (ommittee and!efforts for the (ommission! a(hieve an influen(e on su1se5uent proposals for reform%

"arburg eets %en. !ldrich

<en% Nelson +ldri(h of Rhode 6sland! (hairman of the <enate Finan(e Committee! was appointed head of the Nati

Commission% 7e divided the (ommission into two groups: one would study the ;< 1anking system and (ompile a reother! headed 1y the senator himself! would travel to -urope and study the (entral 1anking systems in ondon! *aris

+ldri(h was a known advo(ate of the e3tant 1ondG1a(ked (urren(y arrangement! whi(h provided that 1ank notes (ouissued 1y national 1anks on the 1asis of the amount of ;< government 1onds that were held to 1a(k them% 7oweveryearGold +ldri(h! who was (onsidered the most influential figure in Congress on finan(ial matters! was (ommitted tnew ideas for reform% 6n #=! he announ(ed that he would not seek offi(e again and instead would devote his futhe (urren(y and 1anking 5uestion%

Meanwhile! &ar1urg 1egan to enlarge his (ir(le of professional (onta(ts and have his voi(e heard throughout the (ou7owever! the .erman 1anker still didnIt have the ear of the man who mattered most +ldri(h%

+ldri(h first met &ar1urg 1y (han(e when the senator was preparing for the -uropean trip and visited uhn! oe1 angather preliminary material a1out the .erman 1anking system% Following that meeting! the .erman native 1egan wr+ldri(h outlining his proposals! 1ut +ldri(h was (ool to &ar1urgIs plan and deferred his (orresponden(e to +% *iatt 7arvard professor whom +ldri(h had appointed offi(ial se(retary of the National Monetary Commission% +s new id1anking reform 1egan to (rystalliAe for the senator! +ndrew 1rought the work of &ar1urg to the senatorIs attentionsoon +ndrew was (orresponding with &ar1urg on 1ehalf of the senator% &ar1urg was asked to write a study on theof (ommer(ial 1ills for the National Monetary Commission! and 1e(ame an unoffi(ial advisor to the group% 7owe1anker and the senator still were at loggerheads on the 5uestion of what shape the (entral 1ank should take in the ;nand on the issue of dis(ounting (ommer(ial paper%

6n his monograph! The )is(ount <ystem in -urope! &ar1urg de(lared that the effe(tive utiliAation of the dis(ountone of the most impressive vi(tories for (entral 1anks in -urope during the *ani( of #H% The only stru(ture that i

(on(luded! is one that provides for effe(tive (on(entration of (ash reserves and their freest use in (ase of need! ena1l



when ne(essary! to turn into (ash a ma3imum of their assets with a minimum distur1an(e to general (onditions% 7ethat a (entral 1ank is a1le to guard the (ash reserve of the (ountry and a((ommodate nonreserve 1anks 1y a((epting pse(urity! like 1ankGa((epted 1ills%

&ar1urg! in the meantime! (ontinued his (ampaign on other fronts% 7e had followed his first New York Times arti(spee(h at Colum1ia ;niversity on +meri(an and -uropean Banking Methods and Banking egislation Compared! privately pu1lished a new! more (omplete proposal for a ;< 1anking system! entitled + Modified *lan for a Centra

6n May #=! the New York Times gave his revised plan prominent (overage% *rimarily! &ar1urg (ontinued to emthe ;nited <tates must finally develop some sort of (entral 1ank system! giving the (ountry an elasti( (urren(y 1ased (ommer(ial 1ills paya1le in gold: a system similar in prin(iple! if not e3a(tly alike in form! to those of the important(entral 1anks% 7e 1elieved that no measure that 1ases (urren(y on a long term 1asis like the +ldri(hG,reeland -meCurren(y 1ill! /whi(h allowed 1anks in regional (urren(y asso(iations to use their aggregate 1ank 1alan(es as the 1asissuan(e of (urren(y0 (an 1e a((epta1le% +lso! he stressed that issuing notes must 1e (entraliAed into a few orgafeasi1le! into one organ to ensure effe(tive e3pansion and (ontra(tion of reserves% The tireless reformer further st(entral 1ank (ould 1e effe(tive that vests the powers of a (entral 1ank in politi(al offi(ers alone% That power (learlought to 1e vested in politi(al offi(ers and 1usinessmen (om1ined! in a way that would render impossi1le any politifinan(ial a1use% +ny hasty de(isions on the (omposition of the dire(tors of a (entral 1ank! he said! (ould stand in t(reation of su(h an organiAation% Better that those pra(ti(al and politi(al 5uestions (ould 1e worked out after (arefu(onsideration%

"arburgHs (ontribution

The idea of an elasti( (urren(y! whi(h would e3pand to meet the legitimate needs of 1usiness and (ommer(e! wasfa(t! &ar1urg himself (laimed no originality for the idea! 1ut through his writings! spee(hes and (ounsel to others hehave a greater impa(t than anyone else% &ar1urg did! however! su((eed in in4e(ting two new ideas into the dis(ussshifting of emphasis from the (urren(y pro1lem to the reserve pro1lem8 and se(ond! advo(a(y of the prin(iple of rednew kind of (ommer(ial paper%

These ideas were starting to 1e dis(ussed more seriously throughout the (ountry! and other individuals involved in tand (urren(y reform movement 1egan to take note% &ith 1oth the 1uilding momentum of other 1anking reform advand +ldri(hIs own e3posure to the effi(ient and effe(tive (entral 1anking system in -urope! the senator finally openeother ideas%

The de1ate on (entral 1anking reform was still in full swing several years after the #H *ani(% 6ndeed! it 1egan tthe +meri(an Bankers +sso(iation standing opposed to any form of (entral 1ank yet suggested 1y legislators% M&ar1urg! +ldri(h and several other prominent figures intensified their efforts and 1egan to form an allian(e that wasthe (oming (ru(ial years of the 1anking reform movement%

!ldrich $econsiders :is 2osition

The -uropean interviews of the National Monetary Commission had a profound influen(e upon +ldri(h% 7e had a (reform when he returned from -urope! radi(ally different from his original 1eliefs% The (hange in the senatorIs thindrasti( that +ldri(hIs 1iographer e3plained it as an epiphany! saying! +ldri(h was (onverted on the road to )amas(u

&hen +ldri(h and the National Monetary Commission returned from -urope in the fall of #=! +ldri(h asked &ar1present his own ideas and answer 5uestions regarding the -uropean interviews at a meeting at New YorkIs Metropo

+fter &ar1urgIs Metropolitan Clu1 testimony! +ldri(h pulled the 1anker aside and told him that he liked his plan fohe was 1eing too timid a1out it% &ar1urg was surprised to learn that +ldri(h! who 1efore his -uropean travels had n(entraliAation and had advo(ated a national (urren(y 1a(ked 1y government 1onds! had (hanged his thinking and en-uropeanGtype (entral 1ank for the ;nited <tates% &hile &ar1urg now warned the senator against attempts to esta1s(ale (entral 1ank in the -uropean sense 1elieving it politi(ally unrealisti( he was nonetheless en(ouraged%

+ parti(ular key feature of the -uropean systems persuaded the senator to re(onsider his thinking% +((ording to (ommem1er <en% Theodore Burton! the (on(ept of (urren(y 1a(ked 1y (ommer(ial assets 1egan to take hold in +ldri(hI

ondon! and the interviews in Berlin finally (onvin(ed him% Commission +ssistant .eorge Reynolds (on(urred! note3perien(e and pra(ti(e of .erman 1ankers in meeting the needs of (ommer(e in their (ountry demonstrated to +ldri(h



validity of the use of (ommer(ial assets as a 1asis for (urren(y% The idea! formerly so o1s(ure! (ame home to him ifrom its demonstration in a nonGpoliti(al! pra(ti(al atmosphere%

&hile +ldri(hIs (onversion was a wel(ome one to &ar1urg and other progressive reformers! the very (on(ept of a -ustyle (entral 1ank was still an anathema to a great many 1ankers and politi(ians% Bankers wanted reform that woul1anking system more effi(ient and 1etter (oordinated 1ut were fearful of government interferen(e in the managemen(entral 1ank% &hile Reynolds! as president of the +meri(an Bankers +sso(iation! had traveled to -urope and had 1eintimate of +ldri(h! his asso(iation was not supportive of reform% Moreover! many politi(ians 1elieved that the geoof the ;nited <tates and its diverse 1usiness (onditions warranted a different 1anking system than those e3isting in -uCompli(ating the matter further was the fa(t that any plan to whi(h +ldri(h atta(hed himself was sure to 1e atta(ked )emo(rats and others who 1elieved the senator had only the interest of eastern 1usinessmen and 1ankers in mind% +(lose ties with '% *% Morgan and other important 1ankers! and his eldest daughterIs marriage to 'ohn )% Ro(kefellhelp to dispel this suspi(ion%

The 9ekyll Island 3xpedition

Jne evening in early Novem1er #! &ar1urg and a small party of men from New York 5uietly 1oarded <en% +ldrailway (ar! ostensi1ly for a trip south to an e3(lusive hunting (lu1 on an island off the (oast of .eorgia%

6n addition to &ar1urg and +ldri(h! the others! all highly regarded in the New York 1anking (ommunity! were: Franpresident of National City Bank8 7arry *% )avison! a '%*% Morgan partner8 Ben4amin <trong! vi(e president of BCo%8 and +% *iatt +ndrew! former se(retary of the National Monetary Commission and now assistant se(retary ofThe real purpose of this histori( du(k hunt was to formulate a plan for ;< 1anking and (urren(y reform that +ldri(present to Congress%

-ven &ar1urg at first 5uestioned the motives of this gathering! not knowing if he was in(luded 1e(ause the group knprea(hed and was interested in what he had to offer! or if he was to 1e involved as a (onspirator in order to 1e muAsaw that the 'ekyll 6sland (onferen(e was pulled together 1e(ause! as &ar1urg later wrote! +ldri(h was 1ewildered had a1sor1ed a1road and he was fa(ed with the diffi(ult task of writing a highly te(hni(al 1ill while 1eing harassed 1grind of his parliamentary duties%

The group was se(luded on 'ekyll 6sland for a1out # days% +ll the parti(ipants (ame to the (onferen(e with strong su14e(t and did not agree on the e3a(t shape a ;< (entral 1ank should take% ,anderlip noted: Jf (ourse we knew tha

simply had to have was a more elasti( (urren(y through a 1ank that would hold the reserves of all 1anks% But therother 5uestions that needed to 1e answered% 6f it was to 1e a (entral 1ank! how was it to 1e owned: 1y the 1anks! government! or 4ointly? <hould there 1e a num1er of institutions or only one? <hould the rate of interest 1e the samwhole nation! or would it 1e higher in a (ommunity that was e3panding too fast and lower in another that was laggiopen market operations should the 1ank 1e engaged?

&ar1urg realiAed that he had not 1een a1le to persuade the senator that if a (entral 1anking organiAation was to 1e to 1e a modified s(heme 1ased on the -uropean models% 6n fa(t! &ar1urg! the 1est e5uipped man there in the a(aa((ording to ,anderlip! was so intense %%% and apparently felt a little antagonism towards +ldri(h! so that theremoments of strain that had to 1e eased 1y the others% +ldri(h had his mind set on a -uropeanGstyle (entral 1ank! seemed loath to a1andon! a((ording to &ar1urg! and the senator strongly 1elieved that the proposed (entral 1ank sout of politi(s% &ar1urg and the others felt that whatever the theoreti(al 4ustifi(ation for su(h a (entral 1ank! +meri

(onditions would re5uire some sort of (ompromise and that (on(essions should 1e made (onsidering government infrepresentation% +ldri(h! yielding somewhat! allowed that the government should 1e represented on the 1oard of dihave full knowledge of the 1ankIs affairs! 1ut a ma4ority of the dire(tors were to 1e (hosen! dire(tly or indire(tly! 1mem1ers of the asso(iation%

&ar1urg also didnIt agree with +ldri(hIs position on note issuan(e! (onditions of mem1ership of state 1anks and tru(ompanies! or on the need for a uniform dis(ount rate% +ldri(h insisted! however! that a (entral 1ank should maintarate of dis(ount throughout the ;nited <tates% 7e thought su(h a measure politi(ally wise 1e(ause it would refute thethat other great finan(ial (entres would attempt to esta1lish favora1le rates for themselves in different regions to disadvantage of other lo(alities in the (ountry%



-ventually all of the individuals at the 'ekyll 6sland (onferen(e had to modify their views on a (entral 1ank plan% N+ldri(h got out of the (onferen(e 4ust what he intended a 1anking s(heme that rested upon a (onsensus of opinion rethe 1estGinformed 1ankers of this (ountry%

The 1anking 1ill the group 1rought north! whi(h (ame to 1e known as the +ldri(h *lan! (alled for the esta1lishme(entral 1ank in &ashington! to 1e named the National Reserve +sso(iation! meaning a (entral reserve organiAatielasti( note issue 1ased on gold and (ommer(ial paper% The asso(iation was to have L 1ran(hes at geographi(ally lo(ations throughout the (ountry% The 1ank was to serve as fis(al agent for the ;< government and! 1y mo1iliAing its mem1er 1anks! 1e(ome a lender of last resort to the +meri(an 1anking system% The asso(iation as a whole was 1ank of redis(ount! that is! it was empowered to dis(ount a se(ond time (ommer(ial paper that mem1ers of the asso(already dis(ounted% By redis(ounting! the asso(iation (ould issue new money that might stay in (ir(ulation so long for whi(h it was issued was not redeemed%

No one person was responsi1le for the final draft 1ill that was written% 6t was a re(ord of their (omposite views% regarded &ar1urg as having made signifi(ant and important (ontri1utions to the final result: +s a philosophi(al stu1anking he was first among us at that time% &ar1urg was satisfied that the +ldri(h *lan was not a (entral 1ank in sense% 6t was stri(tly a 1ankersI 1ank with 1ran(hes under the (ontrol of separate dire(torates having supervision redis(ount operations with mem1er 1anks! he said%

&ar1urg viewed the result of the 'ekyll 6sland meeting as pivotal: The period during whi(h nonpoliti(al thought heleadership in the 1anking reform movement may 1e (onsidered as having ended with this (onferen(e% ;p until thereform had 1een an edu(ational (ampaign (arried on 1y individuals and groups8 1ut at that point! the movement assnational (hara(ter% &ar1urg saw <enator +ldri(h as 1eing the standardG1earer of a politi(al proposal for a (entral 1&ar1urg: From then on until the final passage of the Federal Reserve +(t! the generalship was in the hands of poliwhile the role of 1anking reformers was to aid the movement 1y edu(ational (ampaigns and! at the same time! to doto prevent fundamental parts of the nonpoliti(al plan from 1eing disfigured 1y (on(essions 1orn of politi(al e3pedien+ldri(h presented his draft plan to the pu1li( in 'anuary % Jne year later! on 'an% ! "! the National MonCommission presented its report and endorsed the +ldri(h *lan%

The #inal (ampaign

&ar1urg playfully des(ri1ed himself as a fanati( for what he (onsidered sound finan(e% 7e was also pragmati( anpoliti(al realities! however% Thus he tempered his approa(h to a (entral 1ank in the ;nited <tates! and his (ampaignseveral years refle(ted that position% &hen he saw the road1lo(ks that lay ahead with +ldri(h attempting to sell his greater part of the (ountry! &ar1urg 1egan a formal edu(ational (ampaign to assist% &ar1urg 1elieved that 1eyondunless pu1li( opinion all over the ;nited <tates (ould 1e edu(ated and mo1iliAed! any sound 1anking reform plan wafail%

The National Board of Trade appointed &ar1urg the head of a sevenGman (ommittee to set up a national group to preform% The group was (alled The National CitiAens eague For the *romotion of <ound Banking% 6t a((omplishwhat it set out to do: esta1lishing effe(tive organiAations in $L states! printing a vast amount of edu(ational materia1usinessman and layman alike! and pu1lishing essays in pamphlets and arti(les in newspapers% &ar1urg also (ontipu1lish in important 4ournals and le(ture 1efore influential groups! doing all he (ould to help promote sound 1ankinand (onvin(e larger audien(es of the urgen(y for reform%

The #inal 2lan — The #ederal $eserve !ct

Before the +ldri(h *lan (ould 1e ena(ted into law! the )emo(rats won the &hite 7ouse and took (ontrol of the Congre"% The )emo(rati( position (alled for a divisional reserve 1ank system! with a num1er of reserve 1anks or (entr

(ities% Nevertheless! *resident &oodrow &ilson 1elieved that the +ldri(h *lan was #GH# per(ent (orre(t% +s a1e(ame the 1asis for (onstru(ting the Federal Reserve 1ill! whi(h 1egan to take shape in Congress with the presentaproposed 1y <en% Ro1ert atham Jwen in May >%

&hen the +ldri(h 1ill was re4e(ted and the )emo(rats 1egan to rework the 1anking 1ill! the group of 1ankers that hahard in support of the +ldri(h *lan 1egan to split apart! and many of those 1ankers refused to (onsider an alternative&ar1urg was more (on(iliatory and remained in (onta(t with prominent )emo(rats! in(luding Carter .lass! (hairman o7ouse 1anking (ommittee! and 7% *arker &illis! the (ommittee e3pert! and (ontinued to write and speak on the new

&ar1urgIs reserve and dis(ounting (on(epts were em1ra(ed in the Federal Reserve plan! though the (entral 1ank gra



a1andoned the emphasis on dis(ounting in favor of open market operations as the ma4or monetary poli(y tool% Noefforts in edu(ating the (ountry! 1ringing sound 1anking te(hni5ues to the forefront of de1ate! were of tremendous ifinal preparation and passage of the Federal Reserve +(t%

3pilogue

&ar1urgIs (areer didnIt end with passage of the Federal Reserve +(t% 6n a sense! the (lose of this (hapter marked thof his ne3t important role as a (entral 1anker% 7e was to wield a tremendous influen(e on the development of the <worked so hard to help esta1lish% 6n spite of vehement opposition from many )emo(rats and populists! *resident &&ar1urg to 1e(ome a mem1er of the first Federal Reserve Board%

6t appears *resident &ilson made a wise de(ision% Jn(e &ar1urg was appointed to the 1oard! <e(retary of the TreaM(+doo! who often (lashed with &ar1urg over poli(y matters! e3plained &ar1urgIs appointment this way: 6t was his te(hni(al knowledge in international finan(e would 1e useful% 6t was useful! in some respe(ts it was invalua1le<trong! governor of the Federal Reserve Bank of New York! went even further in his estimation of &ar1urg% +lthowas appointed as a mem1er of the 1oard /not as the (hairman or vi(e (hairman0! <trong (alled &ar1urg the real he1oard in &ashington! so far as knowledge and a1ility goes%

But the fa(t that he was at all (hosen to serve on the 1oard seems to have 1een as mu(h a surprise to the -uropeanG1as to those who took issue with his nomination% 6ndeed! he first de(lined the appointment 1e(ause of the rampanthis (ountry against a &all <treet man! and 1alked at testifying 1efore the <enate 1anking (ommittee 1e(ause otherhad not 1een asked to do so% 7owever! when &orld &ar 6 erupted in -urope! &ar1urg de(ided to waive all persona(onsiderations in deferen(e to the presidentIs urgent re5uest and in view of the present urgen(y whi(h render desirapromptest organiAation of the Federal Reserve Board! and appeared 1efore a largely antagonisti( (ommittee%

&ith &ar1urg 1efore them! rather than take advantage of his vast knowledge in (entral 1anking to learn how the (ouadapt to this new system! the senators (hose instead to 5uestion the 1anker on uhn! oe1 and Co%Is money trusThus! one of the 1est opportunities for history to re(ord &ar1urgIs e3temporaneous impressions on the final .lassGJReserve 1ill was lost% But when &ar1urg was 5uestioned as to his motives for making the sa(rifi(e finan(ial andto 1e(ome a mem1er of the Federal Reserve Board! the nomineeIs answer was (hara(teristi(ally to the point:

&hen *resident &ilson asked me againU whether 6 would take this onU and make the sa(rifi(e %%% 6 felt thade(line it8 and 6 will 1e glad to make the sa(rifi(e! 1e(ause 6 think there is a wonderful opportunity for 1ringing a g

(onstru(tive work into su((essful operation! and it appeals to me to do that%<our(e: The Federal Reserve Bank of Minneapolishttp:@@www%minneapolisfed%org@pu1li(ationsZpapers@pu1Zdisplay%(fm?idX>= L

2But then the (onferen(e (losed! after a week of earnest deli1eration! the rough draft of what later 1e(ame the +ldri

1een agreed upon! and a plan had 1een outlined whi(h provided for a DNational Reserve +sso(iation!E meaning a (organiAation with an elasti( note issue 1ased on gold and (ommer(ial paper % % %The results of the conference were entirelyconfidential. 3ven the fact there had been a meeting was not permitted to become public % % %Though eighteen yeasin(e gone 1y! 6 do not feel free to give a des(ription of this most interesting (onferen(e (on(erning whi(h <enator +pledged all parti(ipants to se(re(y% % % The matter of a uniform dis(ount rate was dis(ussed and settled at 'ekyll 6

*aul &ar1urg! "=% *aul &ar1urg served as ,i(e Chairman of the Federal Reserve during &orld &ar 6%

http://www.minneapolisfed.org/publications_papers/pub_display.cfm?id=3815

http://www.minneapolisfed.org/publications_papers/pub_display.cfm?id=3815



Congressman Lin#bergh's 8rti+les of Dmpea+hment against the Fe#eral 6eser4e&ongressional (ecord /;%<% 7ouse of Representatives0! Fe1ruary "! H! p% > " G>

;%<% Congressman Charles +% ind1ergh <r% / =L G "$0

Mr% 6N)B-R.7% Mr% <peaker and the 7ouse of Representatives! 6! Charles +% ind1ergh! the undersigned! upon mas a Mem1er of the 7ouse of Representatives! do here1y impea(h &% *% .% 7arding! governor8 *aul M% &ar1urg! vi(Frederi(k +% )elano! +dolph C% Miller! and Charles <% 7amlin! mem1ers! ea(h individually as a mem1er of the FederBoard! and also all of them (olle(tively as the five a(tive working mem1ers of said 1oard! or high (rimes and misdemean

6! upon my responsi1ility as a Mem1er of the 7ouse of Representatives! do here1y impea(h &% *% .% 7arding! govern&ar1urg! vi(e governor8 and Frederi(k +% )elano! +dolph C% Miller! and Charles <% 7amlin! mem1ers! and ea(h of thof the Federal Reserve Board! and also impea(h all of them (olle(tively as the five a(tive working mem1ers of the FederBoard! of high (rimes and misdemeanors in aiding! a1etting! and (onspiring with (ertain persons and firms hereinafter nwith other persons! and firms! known and unknown! in a (onspira(y to violate the Constitution and the laws of the ;nitedthe 4ust and e5uita1le poli(ies of the .overnment! whi(h said (onspira(y developed and grew out of and was (onsummatefollowing fa(ts and a(ts! to wit:

First% Jn or a1out the month of 'uly! # ! the e3a(t date 1eing unknown to the relater! the late '%*% Morgan of the fiK Co%! and the said firm! private 1ankers and 1rokers! with their main offi(e in New York City and doing 1usiness all o*aul M% &ar1urg! of the firm uhn! oe1 K Co%! and the firm of uhn! oe1 K Co! also private 1ankers and 1rokersall over the world! with their main offi(e in New York City8 ee! 7igginson! K Co%! also private 1ankers and 1rokers! all over the world with their main offi(es in Boston and New York: idder! *ea1ody K Co% +lso private 1ankers and 1r1usiness all over the world! with their main offi(es in Boston and New York! the National City Bank of New York with (ity of New York and doing a general 1anking 1usiness domesti( and foreign8 the First National Bank of New York withNew York (ity doing a general 1anking 1usiness domesti( and foreign8 and various other persons and firms! known unkrelator ! did (onspire with ea(h other to devise a means through so(ial! politi(al! and other ways of strategy of and 1y gen(hi(anery! to de(eive the people of the ;nited <tates! the Congress! and the *resident of the ;nited <tates for the purpose ao14e(t to se(ure an a(t of Congress providing for a new monetary and 1anking system to have in in a provision for a manvested with unusual and e3traordinary powers and to se(ure the appointment upon the 1oard of management that should for in the a(t persons for mem1ership on the 1oard who would 1y su1terfuge manipulation! and false administration! so avoid the spirit and the purpose of the people of the ;nited <tates! the Congress! and the *resident aimed at in the passagand instead of administering the a(t to meet with the spirit and (omply with its terms! to indu(e and se(ure su(h 1oard to (onspira(y aforesaid! to administer the a(t for the spe(ial 1enefit and advantage of all of the said (onspirators herein1efortheir asso(iates and (ontrary to the letter! intent and purpose of the a(t itself and in (ontravention of the Constitution and order to start the (ampaign with a plan well matured to su((eed in said (onspira(y *aul M% &ar1urg! now vi(e governor Reserve Board! 1ut then a mem1er of the firm of uhn! oe1! K Co was a most a(tive parti(ipant in drafting the main feprin(iples whi(h should 1e em1odied into whatever 1ill might 1e put through Congress! and did also assist in a plan for a(ampaign to 1e kept from the knowledge of the *resident with the appointing power! and from the <enate! with the (onfiin the sele(tion and (onfirmation of all high Federal appointive offi(ials in order that a 1oard of administration should! w(ame for its sele(tion! 1e appointed that would (arry out the designs of the (onspirators aforesaid8 that there that were mmeetings held 1y the (onspirators for this purpose whi(h under the very (ir(umstan(es would 1e s(reened and kept from t

made pra(ti(ally impossi1le to dis(over! 1ut nevertheless made (ertain of the fa(t 1e(ause of the a(ts whi(h point 1a(k to t



(reation8 that one of su(h meetings whi(h your relator does not undertake to verify the truth of its holding! 1ut is relia1lyit was held is des(ri1ed in eslieEs 6llustrated &eekly MagaAine in the J(to1er ! ! num1er thereof! whi(h is has showing the method most likely to have 1een followed for planning the then (ontemplated a(t of Congress whi(h is noknown as the Federal reserve a(t%

<e(ond% That in pursuan(e of said (onspira(y to promote the o14e(t of the (onspirators aforesaid and as part of that geneindu(e Congress to legislate upon the monetary and 1anking system as stated herein1efore! said (onspirators (aused to 1the soG(alled CitiAens eague with head5uarters in the (ity of Chi(ago! to a(t as a mother organiAation and promoter toorganiAation of the several states of au3iliary and affiliated leagues! and 1y misrepresentation to the pu1li( and to the ormother league and its purpose to indu(e (itiAens who should have no knowledge of the said (onspira(y and would 1e inn

wrong intention! and whose motives and intent would 1e to a(t in the (ommon interests of their (ountry! to 4oin in the foau3iliary league throughout the several <tates in order to give the outward and surfa(e appearan(e of respe(ta1ility and hin pursuan(e of that plan the (onspirators su((eeded in organiAing affiliated leagues in $L of the <tates8 that when organ(onspirators herein1efore named! themselves dire(ted who should 1e sent to these organiAations as speakers and instru(the kind of literature that should 1e distri1uted to the mem1ers and to the general pu1li(! the design of whi(h was to havespeakers! instru(tors! and literature as would dis(redit the then e3isting 1anking and (urren(y system and pre4udi(e the pway possi1le against it8 1ut notwithstanding the then e3isting 1anking and (urren(y system was 1ad and unfitted to the dNation and the needs of (ommer(e and trade! and su(h (ampaign was 1y its (onspirators aforesaid dire(ted not to designapu1li( what sort of a 1anking and (urren(y system would 1e adopted in its stead! 1ut the promoters of the (onspira(y shothat the o14e(t of the (ampaign was to aid in every way to (reate a new monetary 1anking and (urren(y system to take ththen e3isting 1ad one! and! as far as it (ould 1e (one! the (onspirators should prevent the people getting together to prepatheir own to 1e presented to Congress: that the purpose of the (onspirators was simply to make the pu1li( 1elieve that a nand (urren(y system was a1solutely ne(essary and at the same time keep the pu1li( from find out what would 1e its formall this for the reason that the (onspirators aforesaid had their own pre(on(eived plan prepared as a part of their (onspira(would se(retly manage in their own way to have presented to Congress as the plan in response to all this pu1li( sentimen(onspirators themselves had ingeniously worked out through the (ampaign aforesaid! and with the intent that Congress a*resident would legislate the (onspiratorsE said plan into effe(t8 that it was part of said plan to (reate many offi(es and plu(rative salaries! whi(h offi(es and positions would 1e e5uivalent to a 1id for the am1itious to support it! 1e(ause these positions would 1e filled 1y the leaders and most a(tive persons who would 4oin in the (ampaign to put the (onspira(y ininfluen(e Congress and the *resident for the purpose of se(uring the legislation%

Third% That in further pursuan(e of said (onspira(y and to 1e in (ontrol of the information and literature that should 1e dthrough the Nation! the said (onspirators then having (ontrol of a large num1er of magaAines! newspapers! and pu1lishiused all of these! and pro(eeded to pro(ure (ontrol of as many more as (ould 1e pur(hased or su1sidiAed to pu1lish arti(lsu1sidiAed writers who would (riti(iAe the e3isting 1anking and (urren(y system so as to (reate pu1li( sentiment againstthousands of (ountry newspapers! a ma4ority of them use DsoG(alled 2patent9 arti(les not edited or even pra(ti(ally (ontowners of the papers! whi(h patent arti(les are (ommonly (alled 21oilerGpla(e9 stuff! and no responsi1ility as to the inflarti(les have upon the pu1li( atta(hes to any1ody8 that those writing this 21oilerGplate9 stuff so pu1lished! many of themsu1sidiAed and (ontrolled 1y the said (onspirators! so that the small newspapers were pra(ti(ally for(ed to (arry on a (amthe then e3isting 1anking and (urren(y system along the same lines of the others referred to herein1efore8 that readers gehave the opportunity to distinguish 1etween 21oilerGplate9 arti(les and the arti(les whi(h the editors of the smaller paperthemselves8 that the newsGdistri1uting agen(ies through the telegraph and telephone were then and still are largely (ont(onspirators! and the operators of the news agen(ies have 1een allowed to report only su(h news relating to a new 1ankin(urren(y system as would promote said (onspira(y! and re5uired to suppress and everything in the way of information orwould tend to en(ourage the people to prepare for themselves a (on(rete plan for 1anking and (urren(y in the interest of athat the general play of the (onspira(y was to suppress every arti(le! statement! and thing so far as possi1le! whi(h wouldinformation as to the e3isten(e of said (onspira(y all of whi(h was for the purpose of ena1ling the (onspirators aforesaid tpeople as well as Congress and the *resident! in order that said (onspirators might finally (onsummate their aforesaid (o

Fourth% That in (onse5uen(e of the (ampaign (arried on 1y said (onspirators stated and re(ited in paragraphs named 2Fiand 2Third9 in these impea(hment arti(les! and numerous se(ret! (landestine! and underground methods employed 1y sa(onspirators! the people of the ;nited <tates! the Congress! and the *resident were de(eived! and as the first offi(ial a(t in(onsummation of the o14e(ts sought 1y said (onspirators Congress did legislate and pass and a(t of Congress whi(h was *resident! and is known as the Federal reserve a(t! whi(h a(t is su1stantially the plan prepared 1y said (onspirators as afo

Fifth% That immediately upon the passage of the Federal reserve a(t the said (onspirators disorganiAed the soG(alled 2Cand all the affiliated leagues in the $L <tates referred to in the paragraph named 9<e(ond9 herein8 that prior to su(h disosaid (onspirators had 1y se(ret and underground methods! and for the purpose of using the same in (ompleting and perpe(onspira(y! organiAed another 2 asso(iation 2 and (alled it the 2;nited <tates Cham1er of Commer(e!9 giving it that namde(eive the pu1li( 1y making it appear that is a department of the .overnment! whi(h organiAation is administered with mma(hinery for management the soG(alled 2CitiAensE eague9 was! and with a purpose of taking up the work of (oordin



so(ial! politi(al! 1usiness and other to work for the 1enefit of the said (onspirators in (arrying out their plan to for(e the mmankind into a1solute and a14e(t industrial slavery8 that the methods and the design of the 2;nited <tates Cham1er of Cset forth to remarks whi(h your relator pla(ed in the CJN.R-<<6JN+ R-CJR) Mar(h #! ! and are here1y referredmore spe(ifi( detail8 that the influen(e of the 2;nited <tates Cham1er of Commer(e9 is one of the agen(ies 1eing used asfurther (onsummate the (onspira(y (harged in these arti(les of impea(hment%

<i3th% That the said Federal reserve a(t is so framed that it has the possi1ility and (ontains the provisions whi(h! under impartial administration! would furnish a remedy to some of the faults that e3isted in the 1anking and (urren(y system wsuperseded! 1ut also (ontains provisions whi(h! under a 1ad and improper administration! makes it more dangerous to thwelfare than ever the old 1anking and (urren(y system was8 that the main feature of the said Federal reserve a(t in givin

the authority vested in the Federal Reserve Board and the dis(retion entrusted to the mem1ers thereof in its 2administrat2administration9 of said Federal reserve a(t is vested in the Federal Reserve Board! advised 1y the Federal reserve advismade up of " persons! sele(ted 1y ea(h of the " Federal reserve 1anks8 that the L a(tive working mem1ers of the FeBoard are the said &%*%.% 7arding! governor8 *aul M% &ar1urg! vi(e governor8 and Frederi(k +% )elano! +dolph CCharles <% 7amlin! mem1ers8 and that the Federal reserve advisory (oun(il is formed 1y the following persons to wit: )of Boston8 '% *% Morgan! or New York8 evi % Rue! of *hiladelphia8 &%<% Rose! of Cleveland8 '% N% Norwi(h

yerly! of +tlanta8 '%B% Forgan% of Chi(ago8 Frank J% &atts! of <t ouis8 '%R% Mit(hell! of Minneapolis8 -%F% <T% '% Re(ord! of )allas8 and 7er1ert Fleish1a(ker! of <an Fran(is(o8 that the said Federal Reserve Board and the said Fadvisory (oun(il held many meetings and are now and have 1een ever sin(e the Federal reserve a(t was passed! fully advfinan(ial and 1usiness (onditions! domesti( and foreign8 that the mem1ers of the Federal Reserve Board and the mem1eFederal reserve advisory (oun(il are men with enormous 1usiness interests! and ea(h of them have 1een for more than Lpast! and are now e3(essive operators and spe(ulators for individual profit and gain in the markets! and (ontrol several o1anks in the (ountry8 that '%*% Morgan 'r% is the lending mem1er of the firm of '%*% Morgan K Co%! one of the firm(harged with 1eing a party to the (onspira(y aforesaid8 that several of the mem1ers of the Federal reserve advisory (oun(in the National City Bank of New York and the First National Bank of New York! they 1eing the two 1anks (harged here1eing parties to the said (onspira(y! and said mem1ers also own sto(k and are interested in 1usiness and managed and (othe parties spe(ifi(ally named as the (onspirators in the paragraph herein1efore designated as 2First98 that *aul M% &arand vi(e governor of the Federal Reserve Board! was at the time of the original formation of the (onspira(y aforesaid a psaid (onspira(y! and a partner and mem1er of the firm of uhn! oe1 K Co%! one of the (onspirators8 that ea(h of the mFederal Reserve Board and of the Federal reserve advisory (oun(il are asso(iated with and form a part of a group of promspe(ulators! the individual mem1ers of whi(h reside in various parts of the ;nited <tates! prin(ipally in the large (ities! anthem live in -urope! whi(h said group individually and (olle(tively deal in (redits! sto(ks! 1onds! se(urities and various penterprises from whi(h they have made 1illions of dollars in profits! and still operate and propose to (ontinue their operapurpose of making still greater profits upon their future dealings8 that in further pursuan(e of their said purpose! they 4ooriginal (onspira(y aforesaid and it was planned as a part of the said original (onspira(y to (reate several great 1usiness a(enters in different parts of the ;nited <tates in order to fa(ilitate with (elerity a (oordination of all 1ig 1usiness and all fin(ontrol8 for the 1enefit of the said (onspirators in (arrying out their plan of personal gain in (ontravention to the pu1li( wsaid group instigated the (ampaign whi(h finally resulted in the passage of the Federal reserve a(t8 that in the administra1y the said five a(tive working mem1ers of the Federal Reserve Board! and through the influen(e e3er(ised over them 1yof the Federal reserve advisory (oun(il! and (olle(tively all of the mem1ers and mem1ership of 1oth the Federal Reservethe Federal reserve advisory (oun(il! a part of and influen(ed 1y said larger 2group9 in this paragraph designated as havithe (onspira(y aforesaid! the said five a(tive working mem1ers of the Federal Reserve Board! ea(h individually and all (all times sin(e they 1e(ame mem1ers of the said Federal Reserve Board! knowingly and intentionally have 1een imprope1y the said 2group!9 and 1e(ause of su(h influen(e have failed to administer the Federal reserve a(t in a((ordan(e with thand intent of Congress and the *resident when the a(t was passed8 1ut! on the (ontrary! the said five a(tive working memFederal Reserve Board herein1efore spe(ifi(ally named as su(h! with intent to evade and set aside 1y 2administration9 aof Congress and of the *resident in the passage and approval of the a(t! and of the a(t itself! have administered! and are administering! the Federal reserve a(t with the intent to (oordinate 21ig 1usiness9 and 2spe(ulation9 for the 1enefit of th

of operators and spe(ulators herein1efore designated as having taken part in the original (onspira(y8 that said National Cherein1efore named! in whi(h many of the other (onspirators own sto(k! a(ts as the 2offi(ial mouthpie(e9 for them all! tote(hni(al information to ena1le them all to a(t in (on(ert8 that to fa(ilitate its distri1ution said 1ank issues a monthly 1ulleFe1ruary! H! 1ulletin! in an arti(le dealing with the present plethora of money and (redit availa1le! among other 2tipthe (onspirators to a(t upon! is the following and 6 would like the 7ouse to hear it this is what is (ontained the 1ulletNational City Bank issued:&nder the circumstances money promises to be in abundant supply, but if bankers have a proper regard for theirresponsibilities it will not be correspondingly cheap. (ompensatory rates for money and ample reserves should be consistentlymaintained.That said 1ulletin was sent to the Federal Reserve Board! to all the Federal reserve 1anks! to all the larger National and trust (ompanies! in order to 2tip9 off to the (onspirators and those a(ting in (on(ert to tighten the rates of interest8 that su(ommon pra(ti(e and do prevent the redu(tion of interest rates to 1orrowers for legitimate 1usiness! (ontrary to the intentof Congress and the *resident and in (ontravention of the a(t itself and to the enormous loss of the people and in4ury to t



welfare%

<eventh% That there are appro3imately "#!### <tate 1anks and trust (ompanies in the ;nited <tates! in(orporated and orgthe <tate laws of the respe(tive <tates in whi(h their offi(es and pla(es of 1usiness are lo(ated! and doing a general 1anki<tate and interstate! many of whi(h are eligi1le to 1e(ome mem1ers of the Federal Reserve <ystem! and many not know1e(ome so without an in(rease of their (apitaliAation8 that of those now eligi1le and that (ould 5ualify for mem1ership iReserve <ystem without an in(rease of their (apital! they have more than half of the (apitaliAation of all the 1anks not nothe Federal Reserve <ystem8 that the (apitaliAation of <tate 1anks and trust (ompanies! whi(h are not mem1ers of the F<ystem e3(eeds the (apital of the 1anks whi(h are mem1ers of the Federal <ystem8 that the governors and other high andadministrative offi(ials of the " Federal reserve 1anks! through their influen(e with mem1er 1anks! wittingly or unwitti

of them wittingly! 1e(ame a((essories to the said (onspira(y of the said persons and parties named in these arti(les of impthe paragraph herein designated as 2First9 and have (aused a 1oy(ott of all 1anks not mem1ers of the Federal Reserve <influen(ing the mem1er 1anks to hamper! in(onvenien(e! and annoy the patrons of the nonmem1er 1anks 1y dis(riminatithem in the (learing of (he(ks drawn upon them and otherwise! that they threaten and seek to (a4ole the nonmem1er 1anattempt to for(e them to 1e(ome mem1ers of the Federal Reserve <ystem8 that the said five a(tive working mem1ers of Reserve Board are (ogniAant of the same8 that the intent! purpose! and aim of ea(h and all of the said (onspirators afore(ompel the <tate 1anks to 4oin the Federal Reserve <ystem for the purpose of 1ringing the said 1anks under the 4urisdi(Federal Reserve Board in order that all of the 1anks! National and <tate! may 1e(ome one giganti( (om1ination with an (omplete monopoly and have the power of e3ploiting the people for the 1enefit of the (onspirators aforesaid%

-ighth% That Congress in (reating the Federal Reserve Board had in mind! and it is the spirit of the Federal reserve a(t! 1oard should keep a guardian wat(h over the operations of the 1anking and (urren(y system and report to Congress and tfrom time to time su(h fa(ts and o((urren(es relating to 1anking and (urren(y as affe(t the 1usiness of the people in trade (ommer(e e3(hanges! domesti( and foreign! so that Congress should re(eive information that would give to Congress thewhi(h to 1ase any ne(essary amendments to the a(t in order to make it responsive to the general welfare8 that (ontrary tothe Federal Reserve a(t! the aforesaid five a(tive working mem1ers of the Federal Reserve Board have willfully failed topu1li( and Congress informed of the inflation of 1ank (redits and the effe(t of it that has taken pla(e under the 2administsaid a(t! and in violation of the spirit thereof said mem1ers have (onspired with the mem1ers of the Federal reserve adviand their 1usiness asso(iates herein1efore named and have aided and a1etted in a (onspira(y to a systemati( inflation of 1for the 1enefit of the said (onspirators and against the pu1li( welfare8 that in (onse5uen(e of said unlawful a(ts and misfeoffi(e of the said mem1ers of the Federal Reserve Board the 1ank have! for private gain! in(reased the 1ank (redits of ththe passage of said a(t appro3imately seven thousand millions of dollars and without effe(ting a (orresponding redu(tionrate! thus in(reasing the aggregate amount of interest paid 1y the people to the said 1anks e5ual to that (harged upon saideffe(t of the inflation of 1ank (redits has 1een and is to also in(rease spe(ulative (redits enormously more than e5ual to th1ank (redits! and that su(h in(rease sin(e the Federal reserve a(t took effe(t has 1een 1illions of dollars that the in(rease iaggregate sum of interest paid to the 1anks upon the said inflated 1ank (redits and the in(rease (aused 1y the said inflatiospe(ulative values upon (ommodities re5uired to supply the ne(essities of life for the people has 1een many 1illions of dhave 1een added to the (ost of living for the people to pay8 that said in(rease in the (ost of living is mainly the profits tha(onspirators have added to their individual fortunes to the e5uivalent loss of the people generally and to the .overnment a

Ninth% That as part of the said (onspira(y and in furtheran(e of the same the said aforesaid (onspirators! in violation of heretofore esta1lished e(onomi( poli(y of (onservation of material and natural resour(es! (onspired -uropean spe(ulators upon the material resour(es of this Nation for e3port with no (orrelation 1etween value of the materials e3ported and thematerials imported8 that in (onse5uen(e of the (onspira(y to affe(t said e3port of material resour(es 1elonging to this Natpeople of it appro3imately eight thousand millions of dollars in value of the material resour(es have 1een e3ported sin(e-urope 1egan8 that as a result thereof the said (onspirators a(ted with the said five mem1ers of the Federal Reserve Boarmanipulating 1ank (redits! and through (redits the markets in(reased the (ost to +meri(an (onsumers in the same periodappro3imately si3teen thousand millions of dollars in e3(ess of the real values! whi(h e3tra (ost has mainly 1een the prof

1een added to the fortunes of the aforesaid (onspirators8 that as an additional and future loss to the people of this Nation(onse5uen(e of the fa(ts aforesaid! the natural material resour(es of the Nation are forever less! and the (osts made forevthey would 1e if trade and (ommer(e were not manipulated through a false administration of finan(es%

Tenth% That to further (arry out the said (onspira(y the aforesaid (onspirators have! ever sin(e the Federal reserve a(t toosought to influen(e! and in fa(t have influen(ed! said five mem1ers of the Federal Reserve Board in an attempt to furtherCongress to se(ure legislation granting to the said 1oard enlarged powers of 2administration98 that in the <i3tyGthird Co1oard! (on(ealing the real purpose to aid said (onspirators! de(eived the <enate Banking and Curren(y Committee to get passage the then <enate 1ill L#L and it passed the <enate and su1se5uently (ame 1efore the 7ouse Banking and Currenand was favora1ly reported! your relator! however! filing a minority report in opposition% ater! on the floor of the 7ouof the Banking and Curren(y Committee withdrew a(tion on the 1ill8 that the aim of said 1ill was to give the Federal Regreater 2administrative9 power over the gold supply! so that it (ould! whenever the (onspirators aforesaid wished it! inflthe 1anking (redit 1y an issue of the FederalGreserve notes for the 1enefit of said (onspirators8 that again in this <i3tyG



said a(tive working mem1ers of the Federal Reserve Board alleged! repeatedly sought the 7ouse Banking and Curren(y report a 1ill giving greater 2administrative9 powers to said 1oard than is authoriAed 1y the original a(t8 in fa(t! to give spower to for(e from 1anks all over the (ountry the gold in their vaults and into the " Federal reserve 1anks! there to forwhi(h to issue still more FederalGreserve notes and further inflate (redit without (ausing a redu(tion of interests that in thwould e5ual the (harge made on the inflated (urren(y! 1ut serving mainly as a guaranty to reinfor(e the (onspirators herenamed in e3ploiting of the people for private gain%

-leventh% That the Federal reserve a(t o1ligates the ;nited <tates to redeem in gold at the ;nited <tates Treasury all Fedenotes! and as a part of the said (onspira(y and in furtheran(e of the same! and to e3tend the spe(ulation of the operators aperpetrators of the said (onspira(y to in(lude -urope and other foreign territory! they! most of them 1eing international as

domesti( 1ankers! seek to dominate the relations of the ;nited <tates with foreign (ountries and to selfishly influen(e the means of the (ontrol of finan(es! and in furtheran(e of said 1ran(h of their spe(ulations have (onspired with the said five working mem1ers of the Federal Reserve Board to se(ure aid from the Federal Reserve <ystem for said selfish purposesinterest of the pu1li(! the (onspirators in (onnivan(e with the said five a(tive working mem1ers of the Federal Reserve Bsaid 1oard sele(t and appoint! through the Federal reserve 1ank of New York! the soG(alled Bank of -ngland as its agentthe (redit of the .overnment of the ;nited <tates 1a(k of this foreign (orporation! organiAed for private gain! whi(h is no lto make payments in gold and fails to give a statement of its true (onditions8 that said Federal Reserve Board is threatenand also to render aid to the international 1ankers in +meri(a who dominate the 1anking system! to enter into further entallian(es with 1ankrupt (ountries of -urope at the very time this .overnment (ontemplates issuing hundreds of millions ofinterestG1earing 1onds upon the (redit of the people of the Nation to meet the .overnment e3penses%

Twelfth% That during the Civil &ar the .overnment of the ;nited <tates issued money (ommonly (alled 2green1a(ks9 8 t1eing issued upon the (redit of the people of the Nation8 that of said 2green1a(ks9 so issued there have 1een ever sin(e tnow are outstanding and in general (ir(ulation 1ased upon the (redit of the people of the ;nited <tates P>$ ! = !# ! foreserve of P L#!###!### in gold is held 1y the .overnment to guarantee their redemption if demanded8 that said (ir(ulat2green1a(ks9 have already saved the .overnment from paying appro3imately P !###!###!### interest during the time thin (ir(ulation and are now saving the .overnment appro3imately P !###!### annually8 that in furtheran(e of said (onspirarti(les of impea(hment alleged and as part thereof! the (onspirators have sought and 1y se(ret (onnivan(e new seek to ha2green1a(ks9 retired and the P L#!###!### of gold guarantee pla(ed in the Federal reserve 1anks on whi(h to 1ase the l21ank (redits9 as a su1stitute for the money owned 1y the people8 that if the Federal reserve 1anks are allowed to se(uresaid gold! when the time (omes that the (onspirators aforesaid shall 1e a1le to use additional 1ank (redits to their advantae3ploiting the people! the same would 1e(ome the 1asis for additional 1ank inflation! dire(tly and indire(tly! to the e3ten1illion dollars upon whi(h the 1anks would (olle(t a great sum of interest! and the spe(ulators would s(alp even greater padditional manipulation of the markets! all of whi(h would 1e added to the (ost of living for the people to pay%

Thirteenth% That in furtheran(e of the said aforesaid (onspira(y and as a part of the same the said five a(tive working mFederal Reserve Board! in their (apa(ity as mem1ers! have ar1itrarily at all times and with intent to prevent the legitimatinterests of the (ountry se(uring the advantages that Congress sought to give 1y the passage of the Federal reserve a(t! an(onnivan(e with the 1ig reserve and (entral reserve 1anks (ontrolled 1y the (onspirators aforesaid! esta1lished redis(ountmem1er 1anks desiring to 1orrow from Federal reserve 1anks a1ove the rates (harged 1y the reserve and (entral reserve (reates an e3(use for the mem1er 1anks in the (ountry to (harge higher rates of interest to legitimate 1orrowers than theywould8 that the interest rates (harged 1y the reserve and (entral reserve 1anks! on the one hand! and the higher rates (haFederal reserve 1anks on the other hand! is maintained at (ertain times when the (onspirators aforesaid desire to draw ththe (ountry 1anks to the reserve and (entral reserve (ities for the interest that these reserve 1anks pay on deposit 1alan(esanti(ipation of times when the (ountry 1anks may wish to redis(ount paper with said 1anks8 that 1y following the ar1itraredis(ounts aforesaid the said (onspirators are ena1led to and do go on with their spe(ulations! manipulate the markets! apeople! and whenever they find themselves in finan(ial stress they (an raise the rates of interest in the reserve and (entra1anks! whi(h they (ontrol! a1ove the Federal reserve 1ank dis(ount rates! thus for(ing the (ountry 1anks! whi(h may hav

with reserve 1anks in order to give a((ommodations to their 1orrowers! to redis(ount with the Federal reserve 1anks to erepay the reserve and (entral reserve 1anks! in order to (reate free money and (redit for said (onspirators to (arry on theirthat the Federal reserve a(t (ontains several provisions whi(h when applied under the 2administrative9 power of the FedeBoard serve as a means of taking or imposing a toll in the nature of dis(riminatory interest rates in order to for(e a shift o(redits from one se(tion of the (ountry to another! or out of the (ountry and to foreign (ountries8 that this dis(riminatory in the Federal Reserve Board is willfully a1used 1y the said five a(tive working mem1ers of the said 1oard for the 1enefinterest of the said aforesaid (onspirators8 that the people of the ;nited <tates have 1een in4ured to the e3tent of several 1dollars 1y reason thereof%

Fourteenth% That in furtheran(e of said aforesaid (onspira(y and to give the said aforesaid (onspirators (omplete pra(ti(a(arry out and put into effe(t their purpose of making the masses of mankind a1solutely dependent upon 21ig 1usiness!9 a(reate industrial slaves of the masses the said aforesaid (onspirators did (onspire and now (onspire to have the Federal re2administered9 so as to ena1le the (onspirators to (oordinate all kinds of 21ig 1usinessE and to keep themselves in (ontr



1usiness!9 in order to amalgamate all of the 2trusts9 into one great trust in restraint and (ontrol of trade and (ommer(e! aa1le to e3ploit the masses and take from them their earnings! e3(ept what they would re5uire for 1are su1sisten(e8 that tto give them power to a((omplish the same said (onspirators have marshaled all of the different kinds of 21ig 1usiness9 those in (ontrol to use their means and whatever kind of patronage and favors they have to give in su(h way as to promoand purposes of said (onspirators and to enslave the masses of humanity8 that at the same time that the said (onspiratorsown 21ig 1usiness9 supporters 1y a (oordination of all their interests they have use every tri(k and su1terfuge possi1le tofri(tion among the masses and divide them into hostile (ontending fa(tions! thus keeping the masses from (oordinating thpromote the general welfare that the said aforesaid five a(tive working mem1ers of the Federal Reserve Board have all twillful and wrongful 2administration9 of the Federal reserve a(t! aided and a1etted the said aforesaid (onspirators in pro(arrying out the o14e(ts of their said (onspira(y and have refused and failed to so administer the Federal reserve a(t as to

same promote and operate in favor of the general welfare%Fifteenth% That the Federal reserve a(t is void and un(onstitutional! 1ut that notwithstanding! the (onspirators aforesaid manipulated things as to prevent the 5uestion of (onstitutionality of the a(t from 1eing 1rought 1efore the (ourts%C7+R -< +% 6N)B-R.7

Mr% <7-R&JJ)% Mr% <peaker! 6 would like to ask the gentleman a 5uestion%

Mr% 6N)B-R.7% 6 suppose my privilege stops now! does it?

The <*-+ -R% 6t does%

Mr% 6N)B-R.7% 6 ask for five minutes in whi(h to answer the 5uestion of the gentleman%

The <*-+ -R% The gentleman asks five minutes% 6s there o14e(tion? There was no o14e(tion%

Mr% <7-R&JJ)% 6n (ase the <enate should sit as an impea(hment (ourt! you have eviden(e to esta1lish that (harge?

Mr% 6N)B-R.7% 6 want to say this: 6 have spent enough time and made enough investigation of this (ase to know thademonstrate a((urately! 6 may say! 1ut to a mathemati(al (ertainty that the (harges in this impea(hment are su1stantimay not 1e a1le to esta1lish 1y dire(t proof that that some of these meetings to whi(h the impea(hment refers were held!(harges are su1stantially true! 6 will (ertainly show%

Mr% <7-R&JJ)% That is! 1y su1stantial eviden(e?

Mr% 6N)B-R.7% By su1stantial eviden(e! and 1y effe(ts whi(h the 1usiness of this (ountry demonstrates 1eyond 5uesMr% <peaker! 6 ask leave to insert! following the reading of these arti(les! my remarks upon them and the 5uestions thainvolved in the impea(hment arti(les%

The <*-+ -R% The gentleman from Minnesota asks unanimous (onsent to e3tend his remarks in the R-CJR)% 6s there

Mr% <6-.- % 6 o14e(t%

The <*-+ -R% The gentleman from New York o14e(ts%

Mr% 6TC76N% Mr% Chairman! 6 move that the impea(hment arti(les 1e referred to the Committee on the 'udi(iary! ademand the previous 5uestion%

The <*-+ -R% The gentleman from North Carolina moves that the impea(hment arti(les 1e referred to the Committee oudi(iary! and on that he demands the previous 5uestion% The previous 5uestion was ordered%

The <*-+ -R% The 5uestion is on agreeing to the motion to refer% The 5uestion was taken! and the motion was agreed

Note: Charles +% ind1ergh <r% /Repu1li(an *artyGMinnesota0 was a Mem1er of the ;%<% 7ouse of Representa$! #H to Mar(h >! H%













Congressman ouis T% M(FaddenEs <pee(h6n the ;%<% 7ouse of Representatives

# 'une >"

Mr% Chairman! at the present session of Congress we have 1een dealing with emergen(y situations% &e have 1eethe effe(t of things rather than with the (ause of things% 6n this parti(ular dis(ussion 6 shall deal with some of the (up to these proposals% There are underlying prin(iples whi(h are responsi1le for (onditions su(h as we have at the pand 6 shall deal with one of these in parti(ular whi(h is tremendously important in the (onsideration that you are nowthis 1ill%

r. (hairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the#ederal $eserve )oard and the #ederal $eserve )anks. The #ederal $eserve )oard, a Government board, has cheatedthe Government of the &nited %tates and the people of the &nited %tates out of enough money to pay the national debt.The depredations and ini*uities of the #ederal $eserve )oard has cost this country enough money to pay the nationaldebt several times over. This evil institution has impoverished and ruined the people of the &nited %tates, hasbankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law underwhich it operates, through the maladministration of that law by the #ederal $eserve )oard, and through the corruptpractices of the moneyed vultures who control it.

%ome people think the #ederal $eserve banks are &nited %tates Government institutions. They are not Governmentinstitutions. They are private credit monopolies which prey upon the people of the &nited %tates for the benefit ofthemselves and their foreign customers foreign and domestic speculators and swindlers and rich and predatory moneylenders. In that dark crew of financial pirates there are those who would cut a manHs throat to get a dollar out of hispocket there are those who send money into %tates to buy votes to control our legislation and there are those whomaintain international propaganda for the purpose of deceiving us and of wheedling us into the granting of newconcessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.

These twelve private credit monopolies were deceitfully and disloyally foisted upon this country by the bankers whocame here from 3urope and repaid us for our hospitality by undermining our !merican institutions. Those 1ankers tomoney out of this (ountry to finan(e 'apan in a war against Russia% They (reated a reign of terror in Russia with ouorder to help that war along% They instigated the separate pea(e 1etween .ermany and Russia and thus drove a wedthe +llies in the &orld &ar% They finan(ed TrotskyIs passage from New York to Russia so that he might assist in thof the Russian -mpire% They fomented and instigated the Russian revolution and they pla(ed a large fund of +meriTrotskyIs disposal in one of their 1ran(h 1anks in <weden so that through him Russian homes might 1e thoroughly and Russian (hildren flung far and wide from their natural prote(tors% They have sin(e 1egun the 1reaking up of +mhomes and the dispersal of +meri(an (hildren%

6t has 1een said that *resident &ilson was de(eived 1y the attentions of these 1ankers and 1y the philanthropi(assumed% 6t has 1een said that when he dis(overed the manner in whi(h he had 1een misled 1y Colonel 7ouse! he that 1usy1ody! that holy monk of the finan(ial empire! and showed him the door% 7e had the gra(e to do that! anopinion he deserves great (redit for it%

*resident &ilson died a vi(tim of de(eption% &hen he (ame to the *residen(y! he had (ertain 5ualities of mindwhi(h entitled him to a high pla(e in the (oun(ils of this Nation8 1ut there was one thing he was not and whi(h he neto 1e8 he was not a 1anker% 7e said that he knew very little a1out 1anking% 6t was! therefore! on the advi(e of othini5uitous Federal Reserve a(t! the death warrant of +meri(an li1erty! 1e(ame law in his administration%

Mr% Chairman! there should 1e no partisanship in matters (on(erning the 1anking and (urren(y affairs of this

do not speak with any%6n " the National Monetary +sso(iation! under the (hairmanship of the late <enator Nelson &% +ldri(h! mand presented a vi(ious 1ill (alled the National Reserve +sso(iation 1ill% This 1ill is usually spoken of as the +ldri(<enator +ldri(h did not write the +ldri(h 1ill% 7e was the tool! 1ut not the a((ompli(e! of the -uropeanG1orn 1ankernearly twenty years had 1een s(heming to set up a (entral 1ank in this (ountry and who in " had spent and wereto spend vast sums of money to a((omplish their purpose%

The +ldri(h 1ill was (ondemned in the platform upon whi(h Theodore Roosevelt was nominated in the year that same year! when &oodrow &ilson was nominated! the )emo(rati( platform! as adopted at the Baltimore (onvene3pressly stated: &e are opposed to the +ldri(h plan for a (entral 1ank% This was plain language% The men wh)emo(rati( *arty then promised the people that if they were returned to power there would 1e no (entral 1ank esta1liwhile they held the reigns of government% Thirteen months later that promise was 1roken! and the &ilson administhe tutelage of those sinister &all <treet figures who stood 1ehind Colonel 7ouse! esta1lished here in our free (ount

eaten monar(hi(al institution of the kingIs 1ank to (ontrol us from the top downward! and to sha(kle us from the



grave% The Federal Reserve a(t destroyed our old and (hara(teristi( way of doing 1usiness8 it dis(riminated againsname (ommer(ial paper! the finest in the world8 it set up the anti5uated twoGname paper! whi(h is the present (urs(ountry! and whi(h wre(ked every (ountry whi(h has ever given it s(ope8 it fastened down upon this (ountry the verfrom whi(h the framers of the&onstitution sought to save us%

Jne of the greatest 1attles for the preservation of this Repu1li( was fought out here in 'a(ksonIs day! when the Bank of the ;nited <tates! whi(h was founded upon the same false prin(iples as those whi(h are here e3emplified in Reserve a(t! was hurled out of e3isten(e% +fter the downfall of the <e(ond Bank of the ;nited <tates in =>H! the (warned against the dangers that might ensue if the predatory interests! after 1eing (ast out! should (ome 1a(k in disgunite themselves to the -3e(utive! and through him a(5uire (ontrol of the .overnment% That is what the predatory inwhen they (ame 1a(k in the livery of hypo(risy and under false pretenses o1tained the passage of the Federal Reserv

The danger that the (ountry was warned against (ame upon us and is shown in the long train of horrors attendaaffairs of the traitorous and dishonest Federal Reserve Board and the Federal Reserve 1anks are fully lia1le% This finan(ed (rime and in the finan(ing of (rime! the Federal Reserve Board does not play the part of a disinterested spe

6t has 1een said that the draughtsman who was employed to write the te3t of the Federal Reserve 1ill used a te+ldri(h 1ill for his purpose% 6t has 1een said that the language of the +ldri(h 1ill was used 1e(ause the +ldri(h 1ill hdrawn up 1y e3pert lawyers and seemed to 1e appropriate% 6t was indeed drawn up 1y lawyers% The +ldri(h 1ill wa((eptan(e 1ankers of -uropean origin in New York City% 6t was a (opy and in general a translation of the statutes oRei(hs1ank and other -uropean (entral 1anks%

7alf a million dollars was spent one part of the propaganda organiAed 1y those same -uropean 1ankers for the misleading pu1li( opinion in regard to it! and for the purpose of giving Congress the impression that there was an opopular demand for that kind of 1anking legislation and the kind of (urren(y that goes with it! namely! an asset (urron human de1ts and o1ligations instead of an honest (urren(y 1ased on gold and silver values% )r% 7% *arker &illemployed 1y the &all <treet 1ankers and propagandists and when the +ldri(h measure (ame to naught and he o1tainemployment with Carter .lass to assist in drawing a 1anking 1ill for the &ilson administration! he appropriated the t+ldri(h 1ill for his purpose% There is no se(ret a1out it% The te3t of the Federal Reserve a(t was tainted from the 1

Not all of the )emo(rati( Mem1ers of the <i3tyGthird Congress voted for this great de(eption% <ome of them the tea(hings of 'efferson8 and! through the years! there had 1een no (riti(isms of the Federal Reserve Board and thReserve 1anks so honest! so outGspoken! and so unsparingly as those whi(h have 1een voi(ed here 1y )emo(rats% although a num1er of Repu1li(ans voted for the Federal Reserve a(t! the wisest and most (onservative mem1ers of Repu1li(an *arty would have nothing to do with it and voted against it% + few days 1efore the 1ill (ame to a vote! Ca1ot odge! of Massa(husetts! wrote to <enator 'ohn &% &eeks as follows:

New York City, December 17, 1913My Dear Senator Weeks:

Throu hout my !ub"ic "i#e $ ha%e su!!orte& a"" measures &esi ne& to take the 'o%ernment out o#the bankin business(((( This bi"" !uts the 'o%ernment into the bankin business as ne%erbe#ore in our history an& makes, as $ un&erstan& it, a"" notes 'o%ernment notes when theyshou"& be bank notes(

The !owers %este& in the )e&era" *eser%e +oar& seem to me hi h"y &an erous,es!ecia""y where there is !o"itica" contro" o# the +oar&( $ shou"& be sorry to ho"& stock in abank sub ect to such &omination( The bi"" as it stan&s seems to me to o!en the way to a %astin#"ation o# the currency( There is no necessity o# &we""in u!on this !oint a#ter theremarkab"e an& most !ower#u" ar ument o# the senior Senator #rom New York( $ can be contenthere to #o""ow the e-am!"e o# the .n "ish can&i&ate #or /ar"iament who thou ht it enou h 0tosay &itto to Mr( +urke(0 $ wi"" mere"y a&& that $ &o not "ike to think that any "aw can be!asse& which wi"" make it !ossib"e to submer e the o"& stan&ar& in a #"oo& o# irre&eemab"e!a!er currency(

$ ha& ho!e& to su!!ort this bi"", but $ can not %ote #or it as it stan&s, because itseems to me to contain #eatures an& to rest u!on !rinci!"es in the hi hest &e ree menacin toour !ros!erity, to stabi"ity in business, an& to the enera" we"#are o# the !eo!"e o# the

nite& States(

2ery sincere"y yours,enry Cabot 4o& e

6n eighteen years that have passed sin(e <enator odge wrote that letter of warning all of his predi(tions have (ome.overnment is in the 1anking 1usiness as never 1efore% +gainst its will it has 1een made the 1a(ker of horsethievessharps! 1ootleggers! smugglers! spe(ulators! and swindlers in all parts of the world% Through the Federal Reserve Federal Reserve 1anks the riffraff of every (ountry is operating on the pu1li( (redit of this ;nited <tates .overnment%

Meanwhile! and on a((ount of it! we ourselves are in the midst of the greatest depression we have ever known% Th



to our prosperity! so feared 1y <enator odge! has indeed stru(k home% From the +tlanti( to the *a(ifi( our (ountryravaged and laid waste 1y the evil pra(ti(es of the Federal Reserve Board and the Federal Reserve 1anks and the int(ontrol them% +t no time in our history has the general welfare of the people of the ;nited <tates 1een at a lower levmind of the people so filled with despair%

Re(ently in one of our <tates #!### dwelling houses and farms were 1rought under the hammer in a single dato the Rev% Father Charles -% Coughlin! who has lately testified 1efore a (ommittee of this 7ouse! H !### housesJakland County! Mi(higan! have 1een sold and their erstwhile owners dispossessed% <imilar o((urren(es have pro1pla(e in every (ounty in the ;nited <tates% The people who have thus 1een driven out are the wastage of the FederaThey are the vi(tims of the dishonest and uns(rupulous Federal Reserve Board and Federal Reserve 1anks% Their (new slaves of the au(tion 1lo(ks in the revival here of the institution of human slavery%

6n >! 1efore the <enate Banking and Curren(y Committee! Mr% +le3ander assen made the following st+ut the who"e scheme o# the )e&era" *eser%e bank with its commercia"5!a!er basis is anim!ractica", cumbersome machinery, is sim!"y a co%er, to #in& a way to secure the !ri%i"e e o#issuin money an& to e%a&e !ayment o# as much ta- u!on circu"ation as !ossib"e, an& thencontro" the issue an& maintain, instea& o# re&uce, interest rates( $t is a system that, i#inau urate&, wi"" !ro%e to the a&%anta e o# the #ew an& the &etriment o# the !eo!"e o# the

nite& States( $t wi"" mean continue& shorta e o# actua" money an& #urther e-tension o#cre&its6 #or when there is a "ack o# rea" money !eo!"e ha%e to borrow cre&it to their cost(

+ few days 1efore the Federal Reserve a(t was passed <enator -lihu Root denoun(ed the Federal Reserve 1ill as an oour li1erties and made the following predi(tion: ong 1efore we wake up from our dreams of prosperity through a(urren(y! our gold! whi(h alone (ould have kept us from (atastrophe! will have vanished and no rate of interest will return%

6f ever a prophe(y (ame true! that one did% 6t was impossi1le! however! for those luminous and instru(ted th(ontrol the (ourse of events% Jn )e(em1er ">! >! the Federal Reserve 1ill 1e(ame law! and that night Colonel 7his hidden master in &all <treet as follows:

$ want to say a wor& o# a!!reciation to you #or the si"ent but no &oubt e##ecti%e work youha%e &one in the interest o# currency "e is"ation an& to con ratu"ate you that the measure has#ina""y been enacte& into "aw( We a"" know that an entire"y !er#ect bi"", satis#actory toe%erybo&y, wou"& ha%e been an im!ossibi"ity, an& $ #ee" uite certain that un"ess the/resi&ent ha& stoo& as #irm as he &i& we shou"& "ike"y ha%e ha& no "e is"ation at a""( Thebi"" is a oo& one in many res!ects6 anyhow oo& enou h to start with an& to "et e-!erienceteach us in what &irection it nee&s !er#ection, which in &ue time we sha"" then et( $n anye%ent you ha%e !ersona""y oo& reason to #ee" rati#ie& with what has been accom!"ishe&(

The words unless the *resident had stood as firm as he did we should likely have had no legislation at all! were areminder that it was Colonel 7ouse himself! the holy monk! who had kept the *resident firm%

The foregoing letter affords striking eviden(e of the manner in whi(h the predatory interests then sought to (on.overnment of the ;nited <tates 1y surrounding the -3e(utive with the personality and the influen(e of a finan(ial 'udto itself and to the (ondu(t of its own legislative fun(tions without pressure from the -3e(utive! the Congress would passed the Federal Reserve a(t% +((ording to Colonel 7ouse! and sin(e this was his report to his master! we may 1etrue! the Federal Reserve a(t was passed 1e(ause &ilson stood firm8 in other words 1e(ause &ilson was under the g(ontrol of the most fero(ious usurers in New York through their hireling! 7ouse% The Federal Reserve a(t 1e(ame l1efore Christmas -ve in the year >! and shortly afterwards the .erman international 1ankers! uhn! oe1 and Cof their partners here to run it%

6n >! when the Federal Reserve 1ill was su1mitted to the )emo(rati( (au(us! there was a dis(ussion in regaform the proposed paper (urren(y should take% The proponents of the Federal Reserve a(t! in their determination tokind of paper money! had not needed to go outside of the +ldri(h 1ill for a model% By the terms of the +ldri(h 1ill!were to 1e issued 1y the National Reserve +sso(iation and were to 1e se(ured partly 1y gold or lawful money and p(ir(ulating eviden(es of de1t% The first draft of the Federal Reserve 1ill presented the same general plan! that is! foopposed to .overnment notes! 1ut with (ertain differen(es of regulation%

&hen the provision for the issuan(e of Federal Reserve notes was pla(ed 1efore *resident &ilson he approved other )emo(rats were more mindful of )emo(rati( prin(iples and a great protest greeted the plan% Foremost amongsdenoun(ed it was &illiam 'ennings Bryan! the <e(retary of <tate% Bryan wished to have the Federal Reserve notes .overnment o1ligations% *resident &ilson had an interview with him and found him adamant% +t the (on(lusion ofBryan left with the understanding that he would resign if the notes were made 1ank notes% The *resident then sent<e(retary and e3plained the matter to him% Mr% Tumulty went to see Bryan and Bryan took from his li1rary shelv(ontaining all the )emo(rati( platforms and read e3tra(ts from them 1earing on the matter of the pu1li( (urren(y% Re



the *resident! Mr% Tumulty told him what had happened and ventured the opinion that Mr% Bryan was right and twas wrong% The *resident then asked Mr% Tumulty to show him where the )emo(rati( *arty in its national platfortaken the view indi(ated 1y Bryan% Mr% Tumulty gave him the 1ook! whi(h he had 1rought from BryanIs house! read very (arefully plank after plank on the (urren(y% 7e then said! 6 am (onvin(ed there is a great deal in what Msays! and thereupon it was arranged that Mr% Tumulty should see the proponents of the Federal Reserve 1ill in ana1out an ad4ustment of the matter%

The remainder of this story may 1e told in the words of <enator .lass% Con(erning BryanIs opposition to the pallowing the proposed Federal Reserve notes to take the form of 1ank notes and the manner in whi(h *resident &ilsproponents of the Federal Reserve 1ill yielded to Bryan in return for his support of the measure! <enator .lass makefollowing statement:

The on"y other #eature o# the currency bi"" aroun& which a con#"ict ra e& at this time was thenote5issue !ro%ision( 4on be#ore $ knew it, the /resi&ent was &es!erate"y worrie& o%er it(

is economic oo& sense to"& him the notes shou"& be issue& by the banks an& not by theo%ernment6 but some o# his a&%isers to"& him Mr( +ryan cou"& not be in&uce& to i%e hissu!!ort to any bi"" that &i& not !ro%i&e #or a 0'o%ernment note(0 There was in the Senate an&

ouse a "ar e +ryan #o""owin which, unite& with a natura""y a&%ersary !arty %ote, cou"&!re%ent "e is"ation( Certain o%ercon#i&ent ent"emen !ro##ere& their ser%ices in the task o#0mana in +ryan(0 They &i& not bu& e him(((( When a &ecision cou"& no "on er be !ost!one& the/resi&ent summone& me to the White ouse to say he wante& )e&era" *eser%e notes to 0beob"i ations o# the nite& States(0 $ was #or an instant s!eech"ess( With a"" the earnestnesso# my bein $ remonstrate&, !ointin out the unscienti#ic nature o# such a thin , as we"" asthe e%i&ent inconsistency o# it(

0There is not, in truth, any 'o%ernment ob"i ation here, Mr( /resi&ent,0 $ e-c"aime&(0$t wou"& be a !retense on its #ace( Was there e%er a 'o%ernment note base& !rimari"y on the!ro!erty o# bankin institutions8 Was there e%er a 'o%ernment issue not one &o""ar o# whichcou"& be !ut out e-ce!t by &eman& o# a bank8 The su este& 'o%ernment ob"i ation is so remoteit cou"& ne%er be &iscerne&,0 $ conc"u&e&, out o# breath(

0.-act"y so, '"ass,0 earnest"y sai& the /resi&ent( 0.%ery wor& you say is true6 theo%ernment "iabi"ity is a mere thou ht( n& so, i# we can ho"& to the substance o# the thinan& i%e the other #e""ow the sha&ow, why not &o it, i# thereby we may sa%e our bi""80

<hadow and su1stan(e[ Jne (an see from this how little *resident &ilson knew a1out 1anking% ;nknowingly! he gasu1stan(e to the international 1anker and the shadow to the (ommon man% Thus was Bryan (ir(umvented in his effthe )emo(rati( do(trine of the rights of the people% Thus the uns(ientifi( 1lur upon the 1ill was perpetrated% The1lur! however! was not the fa(t that the ;nited <tates .overnment! 1y the terms of BryanIs edi(t! was o1liged to ass

o1ligation whatever (urren(y was issued% Mr% Bryan was right when he insisted that the ;nited <tates should pressovereignty over the pu1li( (urren(y% The uns(ientifi( 1lur was the nature of the (urren(y itself! a nature whi(h mto 1e assumed as an o1ligation of the ;nited <tates .overnment% 6t is the worst (urren(y and the most dangerous thiever known% &hen the proponents of the a(t saw that the )emo(rati( do(trine would not permit them to let the propissue the new (urren(y as 1ank notes! they should have stopped at that% They should not have foisted that kind of (namely! an asset (urren(y! on the ;nited <tates .overnment% They should not have made the .overnment lia1le on thde1ts of individuals and (orporations and! least of all! on the private de1ts of foreigners%

The Federal Reserve note is essentially unsound% +s emmerer says: The Federal Reserve notes! therefore!some of the 5ualities of .overnment paper money! 1ut! in su1stan(e! are almost a pure asset (urren(y possessing a .oguaranty against whi(h (ontingen(y the .overnment has made no provision whatever% 7on% -%'% 7ill! a former M7ouse! said! and truly: They are o1ligations of the .overnment for whi(h the ;nited <tates has re(eived nothing andpayment of whi(h at any time it assumes the responsi1ility looking to the Federal Reserve to re(oup itself%

6f the ;nited <tates .overnment is to redeem the Federal Reserve notes when the general pu1li( finds out what deliver this flood of paper money to the twelve Federal Reserve 1anks! and if the .overnment has made no provisioredeeming them! the first element of unsoundness is not far to seek%

Before the Banking and Curren(y Committee! when the Federal Reserve 1ill was under dis(ussion! Mr% CroACin(innati! said:

$n other wor&s, the im!eria" !ower o# e"asticity o# the !ub"ic currency is wie"&e& e-c"usi%e"yby these centra" cor!orations owne& by the banks( This is a "i#e an& &eath !ower o%er a"""oca" banks an& a"" business( $t can be use& to create or &estroy !ros!erity, to war& o## orcause strin encies an& !anics( +y makin money arti#icia""y scarce, interest rates throu houtthe country can be arbitrari"y raise& an& the bank ta- on a"" business an& cost o# "i%inincrease& #or the !ro#it o# the banks ownin these re iona" centra" banks, an& without thes"i htest bene#it to the !eo!"e( These twe"%e cor!orations to ether co%er the who"e country

an& mono!o"i e an& use #or !ri%ate ain e%ery &o""ar o# the !ub"ic currency an& a"" !ub"ic



re%enue o# the nite& States( Not a &o""ar can be !ut into circu"ation amon the !eo!"e bytheir 'o%ernment without the consent o# an& on terms #i-e& by these twe"%e !ri%ate moneytrusts(

6n defian(e of this and all other warnings! the proponents of the Federal Reserve a(t (reated the twelve private (redi(orporations and gave them an a1solute monopoly of the (urren(y of the ;nited <tates! not of the Federal Reserve no1ut of all the (urren(y! the Federal Reserve a(t providing ways 1y means of whi(h the gold and general (urren(y in tthe +meri(an people (ould 1e o1tained 1y the Federal Reserve 1anks in e3(hange for Federal Reserve notes! whi(h money! 1ut merely promises to pay money% <in(e the evil day when this was done the initial monopoly has 1een evi(ious amendments to the Federal Reserve a(t and 1y the unlawful and treasona1le pra(ti(es of the Federal Reserve

the Federal Reserve 1anks%Mr% Chairman! when a Chinese mer(hant sells human hair to a *aris wigmaker and 1ills him in dollars! the F1anks (an 1uy his 1ill against the wigmaker and then use that 1ill as (ollateral for the Federal Reserve notes% The ;.overnment thus pays the Chinese mer(hant the de1t of the wigmaker and gets nothing in return e3(ept a shady title Chinese hair%

Mr% Chairman! if a <(ottish distiller wishes to send a (argo of <(ot(h whiskey to the ;nited <tates! he (an drawagainst the pur(hasing 1ootlegger in dollars8 and after the 1ootlegger has a((epted it 1y writing his name a(ross the <(ot(h distiller (an send that 1ill to the nefarious open dis(ount market in New York City! where the Federal Reservthe Federal Reserve 1anks will 1uy it and use it as (ollateral for a new issue of Federal Reserve notes% Thus the .ovthe ;nited <tates pays the <(ot(h distiller for the whiskey 1efore it is shipped8 and if it is lost on the way! or if the CseiAes it and destroys it! the Federal Reserve 1anks simply write off the loss and the .overnment never re(overs thewas paid to the <(ot(h distiller% &hile we are attempting to enfor(e prohi1ition here! the Federal Reserve Board an

Reserve 1anks are finan(ing the distillery 1usiness in -urope and paying 1ootleggersI 1ills with the pu1li( (redit of t<tates .overnment%Mr% Chairman! if a .erman 1rewer ships 1eer to this (ountry or anywhere else in the world and draws his 1ill

dollars! the Federal Reserve 1anks will 1uy that 1ill and use it as (ollateral for Federal Reserve notes% Thus! they (.overnment to pay the .erman 1rewer for his 1eer% &hy should the Federal Reserve Board and the Federal Reservepermitted to finan(e the 1rewing industry in .ermany! either in this way or as they do 1y (ompelling small and fearf<tates 1anks to take sto(k in the 6sen1e(k 1rewery and in the .erman 1ank for 1rewing industries?

Mr% Chairman! if )ynamit No1el of .ermany wishes to sell dynamite to 'apan to use in Man(huria or elsewherdraw its 1ill against the 'apanese (ustomers in dollars and send that 1ill to the nefarious open dis(ount market in Newwhere the Federal Reserve Board and Federal Reserve 1anks will 1uy it and use it as (ollateral for a new issue of FeReserve notes! while at the same time the Federal Reserve Board will 1e helping )ynamit No1el 1y stuffing its sto(k;nited <tates 1anking system% &hy should we send our representatives to the disarmament (onferen(e at .eneva wh

Federal Reserve Board and the Federal Reserve 1anks are making our .overnment pay 'apanese de1ts to .erman mumakers?Mr% Chairman! if a 1ean grower of Chile wishes to raise a (rop of 1eans and sell them to a 'apanese (ustomer

a 1ill against his prospe(tive 'apanese (ustomer in dollars and have it pur(hased 1y the Federal Reserve Board and FReserve 1anks and get the money out of this (ountry at the e3pense of the +meri(an people 1efore he has even planin the ground%

Mr% Chairman! if a .erman in .ermany wishes to e3port goods to <outh +meri(a or anywhere else! he (an drawagainst his (ustomer and send it to the ;nited <tates and get the money out of this (ountry 1efore he ships or even mthe goods%

Mr% Chairman! why should the (urren(y of the ;nited <tates 1e issued on the strength of Chinese human hair?it 1e issued on the trade whims of a wigmaker? &hy should it 1e issued on the strength of .erman 1eer? &hy shouldissued on the (rop of unplanted 1eans to 1e grown in Chile for 'apanese (onsumption? &hy should the .overnment o

;nited <tates 1e (ompelled to issue many 1illions of dollars every year to pay the de1ts of one foreigner to another f&as it for this that our nationalG1ank depositors had their money taken out of our 1anks and shipped a1road? &as ithey had to lose it? &hy should the pu1li( (redit of the ;nited <tates .overnment and likewise money 1elonging to ounationalG1ank depositors 1e used to support foreign 1rewers! nar(oti( drug vendors! whiskey distillers! wigmakersmer(hants! Chilean 1ean growers! and the like? &hy should our nationalG1ank depositors and our .overnment 1e fofinan(e the munition fa(tories of .ermany and <oviet Russia?

Mr% Chairman! if a .erman in .ermany! wishes to sell wheel1arrows to another .erman! he (an draw a 1ill in dget the money out of the Federal Reserve 1anks 1efore an +meri(an farmer (ould e3plain his re5uest for a loan to mto market% 6n .ermany! when (redit instruments are 1eing given! the (reditors say! <ee you! it must 1e of a kind tat the reserve% Jther foreigners feel the same way% The reserve to whi(h these gentry refer is our reserve! whi(his entirely made up of money 1elonging to +meri(an 1ank depositors% 6 think foreigners should (ash their own tradnot send it over here to 1ankers who use it to fish (ash out of the po(kets of the +meri(an people%

Mr% Chairman! there is nothing like the Federal Reserve pool of (onfis(ated 1ank deposits in the world% 6t i



of +meri(an wealth in whi(h foreigners (laim rights e5ual to or greater than those of +meri(ans% The Federal Reseragents of the foreign (entral 1anks% They use our 1ank depositorsI money for the 1enefit of their foreign prin(ipalsthe pu1li( (redit of the ;nited <tates .overnment and hire it out to foreigners at a profit to themselves%

+ll this is done at the e3pense of the ;nited <tates .overnment! and at a si(kening loss to the +meri(an people%great wealth ena1led us to stand the drain of it as long as we did%

6 1elieve that the nations of the world would have settled down after the &orld &ar more pea(efully if we hadstanding temptation here GG this pool of our 1ank depositorsI money given to private interests and used 1y them inwith illimita1le drafts upon the pu1li( (redit of the ;nited <tates .overnment% The Federal Reserve Board invited th(ome in and to (arry away (ash! (redit! goods! and everything else of value that was mova1le% ,alues amounting to1illions of dollars have 1een taken out of this (ountry 1y the Federal Reserve Board and the Federal Reserve 1anks 1enefit of their foreign prin(ipals% The ;nited <tates has 1een ransa(ked and pillaged% Jur stru(tures have 1een gutthe walls are left standing% &hile this (rime was 1eing perpetrated everything the world (ould rake up to sell us wahere at our own e3pense 1y the Federal Reserve Board and the Federal Reserve 1anks until our markets were swamunneeded and unwanted imported goods pri(ed far a1ove their value and made to e5ual the dollar volume of our hoand to kill or redu(e our favora1le 1alan(e of trade% +s agents of the foreign (entral 1anks! the Federal Reserve BoFederal Reserve 1anks try 1y every means within their power to redu(e our favora1le 1alan(e of trade% They a(t foprin(ipals and they a((ept fees from foreigners for a(ting against the 1est interests of the ;nited <tates% Naturally thgreat (ompetition among foreigners for the favors of the Federal Reserve Board%

&hat we need to do is to send the reserves of our national 1anks home to the people who earned and produ(edwho still own them and to the 1anks whi(h were (ompelled to surrender them to predatory interests% &e need to deFederal Reserve pool! wherein our nationalG1ank reserves are impounded for the 1enefit of the foreigners% &e nevery diffi(ult for outlanders to draw money away from us% &e need to save +meri(a for +meri(ans%

Mr% Chairman! when you hold a P # Federal Reserve note in your hand you are holding a pie(e of paper whlater is going to (ost the ;nited <tates .overnment P # in gold! unless the .overnment is o1liged to give up the gold sis prote(ted 1y a reserve of $# per (ent% or P$ in gold% 6t is 1ased on im1urger (heese! reputed to 1e in foreign won (ans purported to (ontain peas 1ut whi(h may (ontain salt water instead8 or on horse meat8 illi(it drugs8 1ootlegrags and 1ones from <oviet Russia of whi(h the ;nited <tates imported over a million dollarsI worth last year8 on wwhiskey! natural gas! on goat or dog fur! garli( on the string! or Bom1ay du(ks% 6f you like to have paper money w1y su(h (ommodities! you have it in the Federal Reserve note% 6f you desire to o1tain the thing of value upon whi(urren(y is 1ased GG that is! the im1urger (heese! the whiskey! the illi(it drugs! or any of the other staples GG yovery hard time finding them% Many of these worshipful (ommodities are in foreign (ountries% +re you going to .einspe(t her warehouses to see if the spe(ified things of value are there? 6 think not% +nd what is more! 6 do not thifind them there if you did go%

6mmense sums 1elonging to our nationalG1ank depositors have 1een given to .ermany on no (ollateral se(uritThe Federal Reserve Board and the Federal Reserve 1anks have issued ;nited <tates (urren(y on mere finan(e drafts.ermans% Billions upon 1illions of our money has 1een pumped into .ermany and money is still 1eing pumped intothe Federal Reserve Board and the Federal Reserve 1anks% 7er worthless paper is still 1eing negotiated here and reon the pu1li( (redit of the ;nited <tates .overnment and at the e3pense of the +meri(an people% Jn +pril "H! >"! tReserve outfit sent PHL#!###! 1elonging to +meri(an 1ank depositors! in gold to .ermany% + week later! another Pgold was shipped to .ermany in the same way% +1out the middle of May P "!###!### in gold was shipped to .ermFederal Reserve Board and the Federal Reserve 1anks% +lmost every week there is a shipment of gold to .ermany%shipments are not made for profit on the e3(hange sin(e the .erman marks are 1elow parity with the dollar%

Mr% Chairman! 6 1elieve that the nationalG1ank depositors of the ;nited <tates are entitled to know what the Reserve Board and the Federal Reserve 1anks are doing with their money% There are millions of nationalG1ank de(ountry who do not know that a per(entage of every dollar they deposit in a mem1er 1ank of the Federal Reserve syautomati(ally to +meri(an agents of the foreign 1anks and that all their deposits (an 1e paid away to foreigners with

knowledge or (onsent 1y the (rooked ma(hinery of the Federal Reserve a(t and the 5uestiona1le pra(ti(es of the FedBoard and the Federal Reserve 1anks% Mr% Chairman! the +meri(an people should 1e told the truth 1y their serva6n ># we had over half a 1illion dollars outstanding daily to finan(e foreign goods stored in or shipped 1etw

(ountries% 6n its yearly total! this item amounts to several 1illion dollars% &hat goods are those on whi(h the Fede1anks yearly pledge several 1illions of dollars of the pu1li( (redit of the ;nited <tates? &hat goods are those whi(h ain -uropean and +siati( storehouses and whi(h have never 1een seen 1y any offi(er of this .overnment! 1ut whi(h arefinan(ed on the pu1li( (redit of the ;nited <tates .overnment? &hat goods are those upon whi(h the ;nited <tates .oveis 1eing o1ligated 1y the Federal Reserve 1anks to issue Federal Reserve notes to the e3tent of several 1illions of d

The Federal Reserve Board and the Federal Reserve 1anks have 1een international 1ankers from the 1eginning;nited <tates .overnment as their enfor(ed 1anker and supplier of (urren(y% But it is none the less e3traordinary to stwelve private (redit monopolies 1uying the de1ts of foreigners against foreigners in all parts of the world and askin.overnment of the ;nited <tates for new issues of Federal Reserve notes in e3(hange for them%

6 see no reason why the +meri(an ta3payers should 1e hewers of wood and drawers of water for the -uropean



(ustomers of the Federal Reserve 1anks% 6 see no reason why a worthless a((eptan(e drawn 1y a foreign swindler agetting gold out of this (ountry should re(eive the lowest and (hoi(est rate from the Federal Reserve Board and 1e tr1etter se(urity than the note of an +meri(an farmer living on +meri(an land%

The magnitude of the a((eptan(e ra(ket! as it has 1een developed 1y the Federal Reserve 1anks! their foreign(orrespondents! and the predatory -uropeanG1orn 1ankers who set up the Federal Reserve institution here and taugh1rand of pirates how to loot the people GG 6 say the magnitude of this ra(ket is estimated to 1e in the neigh1orhoodP !###!###!### a year% 6n the past ten years it is said to have amounted to P #!###!###!###% 6n my opinion! itseveral times as mu(h% Coupled with this you have! to the e3tent of 1illions of dollars! the gam1ling in the ;nited <se(urities! whi(h takes pla(e in the same open dis(ount market GG a gam1ling upon whi(h the Federal Reserve Boaspending P ##!###!### per week%

Federal Reserve notes are taken from the ;nited <tates .overnment in unlimited 5uantities% 6s it strange that thsupplying these immense sums of money to the gam1ling fraternity has at last proved too heavy for the +meri(an pendure? &ould it not 1e a national (alamity if the Federal Reserve Board and the Federal Reserve 1anks should aga1urden down on the 1a(ks of the +meri(an people and! 1y means of the long rawhide whips of the (redit masters! (oto enter another seventeen years of slavery? They are trying to do that now% They are taking P ##!###!### of the the ;nited <tates .overnment every week in addition to all their other seiAures! and they are spending that money innefarious open market in New York City in a desperate gam1le to reesta1lish their graft as a going (on(ern%

They are putting the ;nited <tates .overnment in de1t to the e3tent of P ##!###!### a week! and with the mon1uying up our .overnment se(urities for themselves and their foreign prin(ipals% Jur people are disgusted with the eof the Federal Reserve Board% The Federal Reserve Board is not produ(ing a loaf of 1read! a yard of (loth! a 1ushpile of (ordwood 1y its (he(kGkiting operations in the money market%

+ fortnight or so ago great aid and (omfort was given to 'apan 1y the firm of +% .erli K <ons! of New York! anfirm! whi(h 1ought P !###!### worth of raw silk from the 'apanese .overnment% Federal Reserve notes will 1e ithat amount to the 'apanese .overnment! and these notes will 1e se(ured 1y money 1elonging to our nationalG1ank

&hy should ;nited <tates (urren(y 1e issued on this de1t? &hy should ;nited <tates (urren(y 1e issued to pay th.erli K <ons to the 'apanese .overnment? The Federal Reserve Board and the Federal Reserve 1anks think more of tsilkworms of 'apan than they do of +meri(an (itiAens% &e do not need P !###!### work of silk in this (ountry attime! not even to furnish work to dyers and finishers% &e need to wear homeGgrown and +meri(anGmade (lothesown money for our own goods and staples% &e (ould spend P !###!### in the ;nited <tates of +meri(a on +meriand that would 1e a 1etter investment for us than 'apanese silk pur(hased on the pu1li( (redit of the ;nited <tates .ov

Mr% <peaker! on the >th of 'anuary of this year 6 addressed the 7ouse on the su14e(t of the Re(onstru(tion FCorporation% 6n the (ourse of my remarks 6 made the following statement:

$n 19;< the member banks o# the )e&era" *eser%e system borrowe& =>?,@9<,>9?,??? #rom the

)e&era" *eser%e banks on their #i#teen5&ay !romissory notes( Think o# itA Si-ty bi""ion&o""ars !ayab"e u!on &eman& in o"& in the course o# one sin "e year( The actua" !ayment o#such ob"i ations ca""s #or si- times as much monetary o"& as there is in the entire wor"&(Such transactions re!resent a rant in the course o# one sin "e year o# about =7,???,??? toe%ery member bank o# the )e&era" *eser%e system( $s it any won&er that there is a &e!ressionin this country8 $s it any won&er that merican "abor, which u"timate"y !ays the cost o# a""bankin o!erations o# this country, has at "ast !ro%e& une ua" to the task o# su!!"yin thishu e tota" o# cash an& cre&it #or the bene#it o# the stock5market mani!u"ators an& #orei nswin&"ers8

Mr% Chairman! some of my (olleagues have asked for more spe(ifi( information (on(erning this stupendous graft! 1urden whi(h has 1een pla(ed on the wage earners and ta3payers of the ;nited <tates for the 1enefit of the Federal RBoard and the Federal Reserve 1anks% They were surprised to learn that mem1er 1anks of the Federal Reserve sys

re(eived the enormous sum of P #!L =! #!### from the Federal Reserve Board and the Federal Reserve 1anks opromissory notes in the (ourse of one single year! namely! "=% +nother Mem1er of this 7ouse! Mr% Beedy! thegentleman from Maine! has 5uestioned the a((ura(y of my statement and has informed me that the Federal Reservea1solutely that these figures are (orre(t% This Mem1er has said to me that the thing is unthinka1le! that it (an not 11eyond all reason to think that the Federal Reserve Board and the Federal Reserve 1anks should have so su1sidiAeendowed their favorite 1anks of the Federal Reserve system% This Mem1er is horrified at the thought of a graft so so detrimental to the pu1li( welfare as si3ty and a half 1illion dollars a year and more shoveled out to favored 1anksFederal Reserve system%

6n >#! while the spe(ulating 1anks were getting out of the sto(k market at the e3pense of the general pu1li(Reserve Board and the Federal Reserve 1anks advan(ed them P >!#""!H="!###% This shows that when the 1anks on the pu1li( (redit of the ;nited <tates .overnment as represented 1y the Federal Reserve (urren(y! they were su1sidany amount they re5uired 1y the Federal Reserve Board and the Federal Reserve 1anks% &hen the swindle 1egan t

1ankers knew it in advan(e and withdrew from the market% They got out with whole skins and left the people of th





in(luding the su1sidiary (ompanies of reuger and Toll! should 1e investigated and that the issuan(e of ;nited <tatesin (onne(tion with those enterprises and the use of our nationalG1ank depositorsI money for reugerIs 1enefit shouknown to the general pu1li(% 6 am referring! not only to the se(urities whi(h were floated and sold in this (ountry! (ommer(ial loans to reugerIs enterprises and the mass finan(ing of reugerIs (ompanies 1y the Federal Reserve BFederal Reserve 1anks and the predatory institutions whi(h the Federal Reserve Board and the Federal Reserve 1anhar1or%

+ few days ago! the *resident of the ;nited <tates! with a white fa(e and shaking hands! went 1efore the <enateof the moneyed interests and asked the <enate to levy a ta3 on the people so that foreigners might know that the ;niwould pay its de1t to them% Most +meri(ans thought it was the other way around% &hat do the ;nited <tates owe t&hen and 1y whom was the de1t in(urred? 6t was in(urred 1y the Federal Reserve Board and the Federal Reserve 1they peddled the signature of this .overnment to foreigners for a pri(e% 6t is what the ;nited <tates .overnment has tredeem the o1ligations of the Federal Reserve Board and the Federal Reserve 1anks% +re you going to let those ths(ot free? 6s there one law for the looter who drives up to the door of the ;nited <tates Treasury in his limousine andthe ;nited <tates veterans who are sleeping on the floor of a dilapidated house on the outskirts of &ashington?

The Baltimore K Jhio Railroad is here asking for a large loan from the people and the wage earners and the tathe ;nited <tates% 6t is 1egging for a handGout from the .overnment% 6t is standing! (ap in hand! at the door of theFinan(e Corporation! where all the other 4a(kals have gathered to the feast% 6t is asking for money that was raisedpeople 1y ta3ation! and wants this money of the poor for the 1enefit of uhn! oe1! K Co%! the .erman internationthere one law for the Baltimore K Jhio Railroad and another for the needy veterans it threw off its freight (ars the othere one law for sleek and prosperous swindlers who (all themselves 1ankers and another law for the soldiers who;nited <tates flag?

Mr% Chairman! some people are horrified 1e(ause the (ollateral 1ehind reuger and Toll de1entures was remoworthless (ollateral su1stituted for it% &hat is this 1ut what is 1eing done daily 1y the Federal Reserve 1anks? &heReserve a(t was passed! the Federal Reserve 1anks were allowed to su1stitute other like (ollateral for (ollateral 1Reserve notes 1ut 1y an amendment o1tained at the re5uest of the (orrupt and dishonest Federal Reserve Board! the(hanged so that the word like was stri(ken out% +ll that immense trou1le was taken here in Congress so that the permit the Federal Reserve 1anks to swit(h (ollateral% +t the present time 1ehind the s(enes in the Federal Reservea nightGandGday movement of (ollateral% + visiting -nglishman! leaving the ;nited <tates a few weeks ago! said thwould look 1etter here after they (leaned up the mess at &ashington% Cleaning up the mess (onsists in fooling tmaking them pay a se(ond time for the 1ad foreign investments of the Federal Reserve Board and the Federal Rese(onsists in moving that heavy load of du1ious and worthless foreign paper GG the 1ills of wigmakers! 1rewers! disdrug vendors! munition makers! illegal finan(e drafts! and worthless foreign se(urities! out of the 1anks and putting1a(k of +meri(an la1or% That is what the Re(onstru(tion Finan(e Corporation is doing now% They talk a1out loansrailroads 1ut they say very little a1out that other 1usiness of theirs whi(h (onsists in relieving the swindlers who proinvestment trusts in this (ountry and dumped worthless foreign se(urities into them and then resold that mess of pot+meri(an investors under (over of their own (orporate titles% The Re(onstru(tion Finan(e Corporation is taking oveworthless se(urities from those investment trusts with ;nited <tates Treasury money at the e3pense of the +meri(an tand the wage earner%

6t will take us twenty years to redeem our .overnment% Twenty years of penal servitude to pay off the gam1lithe traitorous Federal Reserve Board and the Federal Reserve 1anks and to earn again that vast flood of +meri(an wsavings! 1ank deposits! and ;nited <tates .overnment (redit whi(h the Federal Reserve Board and the Federal Reserve3ported out of this (ountry to their foreign prin(ipals%

The Federal Reserve Board and the Federal Reserve 1anks lately (ondu(ted an antiGhoarding (ampaign here%took that e3tra money whi(h they had persuaded the +meri(an people to put into the 1anks and they sent it to -uropethe rest% 6n the last several months! they have sent P !>##!###!### in gold to their foreign employers! their foreievery dollar of that gold 1elonged to the people of the ;nited <tates and was unlawfully taken from them%

6s not it high time that we had an audit of the Federal Reserve Board and the Federal Reserve 1anks and an e3all our .overnment 1onds and se(urities and pu1li( moneys instead of allowing the (orrupt and dishonest Federal Reand the Federal Reserve 1anks to spe(ulate with those se(urities and this (ash in the notorious open dis(ount marketYork City?

Mr% Chairman! within the limits of the time allowed me! 6 (an not enter into a parti(ulariAed dis(ussion of thReserve Board and the Federal Reserve 1anks% 6 have singled out the Federal Reserve (urren(y for a few remarks has lately 1een some talk here of fiat money% &hat kind of money is 1eing pumped into the open dis(ount markit into foreign (hannels and sto(k e3(hanges? Mr% Mills of the Treasury has spoken here of his horror of the printinhis horror of dishonest money% 7e has no horror of dishonest money% 6f he had! he would 1e no party to the presthe Federal Reserve Board and the Federal Reserve 1anks in the nefarious open dis(ount market of New York! a mathe sellers are represented 1y ten great dis(ount dealer (orporations owned and organiAed 1y the very 1anks whi(h o(ontrol the Federal Reserve Board and the Federal Reserve 1anks% Fiat money! indeed[

+fter the several raids on the Treasury Mr% Mills 1orrows the spee(h of those who protested against those raid



now with pretended horror of a raid on the Treasury% &here was Mr% Mills last J(to1er when the ;nited <tates TrePL =!###!### of the ta3payersI money whi(h was supposed to 1e in the safeGkeeping of +ndrew &% Mellon in thdepositories of Treasury funds! and whi(h was not in those depositories when the Treasury needed it? Mr% Mills w+ssistant <e(retary of the Treasury then! and he was at &ashington throughout J(to1er! with the e3(eption of a very week he spent at &hite <ulphur <prings (loseted with international 1ankers! while the 6talian minister! <ignor .randentertained GG and 1argained with GG at &ashington%

&hat Mr% Mills is fighting for is the preservation whole and entire of the 1ankerIs monopoly of all the (urren;nited <tates .overnment% &hat Mr% *atman proposes is that the .overnment shall e3er(ise its sovereignty to the e3issuing some (urren(y for itself% This (onfli(t of opinion 1etween Mr% Mills as the spokesman of the 1ankers and the spokesman of the people 1rings the (urren(y situation here into the open% Mr% *atman and the veterans are (ostone wall GG the wall that fen(es in the 1ankers with their spe(ial privileges% Thus! the issue is 4oined 1etween thdemo(ra(y! of whi(h the veterans are a part! and the men of the kingIs 1ank! the wouldG1e aristo(rats! who deflateagri(ulture and ro11ed this (ountry for the 1enefit of their foreign prin(ipals%

Mr% Chairman! last )e(em1er! 6 introdu(ed a resolution here asking for an e3amination and an audit of the FeBoard and the Federal Reserve 1anks and all related matters% 6f the 7ouse sees fit to make su(h an investigation! tthe ;nited <tates will o1tain information of great value%This is a Government of the people, by the people, for the people.(onse*uently, nothing should be concealed from the people. The man who deceives the people is a traitor to the &nited%tates. The man who knows or suspects that a crime has been committed and who conceals or covers up that crime is anaccessory to it. r. %peaker, it is a monstrous thing for this great Bation of people to have its destinies presided over by atraitorous Government board acting in secret concert with international usurers. 3very effort has been made by the#ederal $eserve )oard to conceal its power but the truth is the #ederal $eserve )oard has usurped the Government ofthe &nited %tates. It controls everything here and it controls all our foreign relations. It makes and breaks governmentsat will. Bo man and no body of men is more entrenched in power than the arrogant credit monopoly which operates the#ederal $eserve )oard and the #ederal $eserve banks. These evil@doers have robbed this country of more than enoughmoney to pay the national debt. "hat the Bational Government has permitted the #ederal $eserve )oard to steal fromthe people should now be restored to the people. The people have a valid claim against the #ederal $eserve )oard andthe #ederal $eserve banks. If that claim is enforced, !mericans will not need to stand in the breadlines or to suffer anddie of starvation in the streets. :omes will be saved, families will be kept together, and !merican children will not bedispersed and abandoned. The #ederal $eserve )oard and the #ederal $eserve banks owe the &nited %tates Governmentan immense sum of money. "e ought to find out the exact amount of the peopleHs claim. "e should know the amount ofthe indebtedness of the #ederal $eserve )oard and the #ederal $eserve banks to the people and we should investigatethis treacherous and disloyal conduct of the #ederal $eserve )oard and the #ederal $eserve banks.

7ere is a Federal Reserve note% 6mmense num1ers of these notes are now held a1road% 6 am told that they aupwards of a 1illion dollars% They (onstitute a (laim against our .overnment and likewise a (laim against the monehave deposited in the mem1er 1anks of the Federal Reserve system% Jur peopleIs money to the e3tent of P !>##!#has within the last few months 1een shipped a1road to redeem Federal Reserve notes and to pay other gam1ling detraitorous Federal Reserve Board and the Federal Reserve 1anks% The greater part of our monetary sto(k has 1een foreigners% &hy should we promise to pay the de1ts of foreigners to foreigners? &hy should our .overnment 1e puposition of supplying money to foreigners? &hy should the Federal Reserve Board and the Federal Reserve 1anks 1to finan(e our (ompetitors in all parts of the world? )o you know why the tariff was raised? 6t was raised to shut outFederal Reserve goods pouring in here from every 5uarter of the glo1e GG (heap goods! produ(ed 1y (heaply paid on unlimited supplies of money and (redit sent out of this (ountry 1y the dishonest and uns(rupulous Federal Reservthe Federal Reserve 1anks% .o out in &ashington to 1uy an ele(tri( light 1ul1 and you will pro1a1ly 1e offered one made in 'apan on +meri(an money% .o out to 1uy a pair of fa1ri( gloves and in(onspi(uously written on the inside othat will 1e offered to you will 1e found the words made in .ermany and that means made on the pu1li( (redit o<tates .overnment paid to .erman firms in +meri(an gold taken from the (onfis(ated 1ank deposits of the +meri(an p

The Federal Reserve Board and the Federal Reserve 1anks are spending P ##!###!### a week 1uying .overnmse(urities in the open market and are making a great 1id for foreign 1usiness% They are trying to make rates so attrhumanGhair mer(hants and distillers and other 1usiness entities in foreign lands will (ome here and hire more of thof the ;nited <tates .overnment and pay the Federal Reserve outfit for getting it for them%

Mr% Chairman! when the Federal Reserve a(t was passed! the people of the ;nited <tates did not per(eive thatsystem was 1eing set up here whi(h would make the savings of an +meri(an s(hoolGtea(her availa1le to a nar(oti(Gin Ma(ao% They did not per(eive that the ;nited <tates were to 1e lowered to the position of a (oolie (ountry whi(h 1ut raw materials and heavy goods for e3port8 that Russia was destined to supply the man power and that this (ounsupply finan(ial power to an international superstate GG a superstate (ontrolled 1y international 1ankers and internaindustrialists a(ting together to enslave the world for their own pleasure%

The people of the ;nited <tates are 1eing greatly wronged% 6f they are not! then 6 do not know what wrongimeans% They have 1een driven from their employments% They have 1een dispossessed of their homes% They hav

from their rented 5uarters% They have lost their (hildren% They have 1een left to suffer and to die for la(k of shelt



(lothing! and medi(ine%The wealth of the ;nited <tates and the working (apital of the ;nited <tates has 1een taken away from them and

1een lo(ked in the vaults of (ertain 1anks and the great (orporations or e3ported to foreign (ountries for the 1enefit foreign (ustomers of those 1anks and (orporations% <o far as the people of the ;nited <tates are (on(erned! the (up16t is true that the warehouses and (oal yards and grain elevators are full! 1ut the warehouses and (oal yards and graiare padlo(ked and the great 1anks and (orporations hold the keys% The sa(k of the ;nited <tates 1y the Federal Reseand the Federal Reserve 1anks is the greatest (rime in history%

Mr% Chairman! a serious situation (onfronts the 7ouse of Representatives toGday% &e are trustees of the peorights of the people are 1eing taken away from them% Through the Federal Reserve Board and the Federal Reservepeople are losing the rights guaranteed to them 1y the&onstitution % Their property has 1een taken from them without dpro(ess of law% Mr% Chairman! (ommon de(en(y re5uires us to e3amine the pu1li( a((ounts of the .overnment and(rimes against the pu1li( welfare have and are 1eing (ommitted%

&hat is needed here is a return to the&onstitution of the ;nited <tates% &e need to have a (omplete divor(e of Ba<tate% The old struggle that was fought out here in 'a(ksonIs day must 1e fought over again% The independent ;nitTreasury should 1e reGesta1lished and the .overnment should keep its own money under lo(k and key in the 1uildinprovided for that purpose% +sset (urren(y! the devi(e of the swindler! should 1e done away with% The .overnmentgold and issue ;nited <tates (urren(y on it% The 1usiness of the independent 1ankers should 1e restored to them% T1anking systems should 1e freed from (oer(ion The Federal Reserve distri(ts should 1e a1olished and the <tate 1oushould 1e respe(ted% Bank reserves should 1e kept within the 1orders of the <tates whose people own them! and thmoney of the people should 1e prote(ted so that the international 1ankers and a((eptan(e 1ankers and dis(ount dealedraw it away from them% The e3(hanges should 1e (losed while we are putting our finan(ial affairs in order% The Reserve a(t should 1e repealed and the Federal Reserve 1anks! having violated their (harters! should 1e li5uidated iFaithless .overnment offi(ers who have violated their oaths of offi(e should 1e impea(hed and 1rought to trial% ;nledone 1y us! 6 predi(t that the +meri(an people! outraged! ro11ed! pillaged! insulted! and 1etrayed as they are in thewill rise in their wrath and send a *resident here who will sweep the money (hangers out of the temple%

<our(e:http:@@www%afn%org@\govern@m(faddenZspee(hZ >"%html

;%<% Congressman ouis T% M(Fadden / i1rary of Congress0

http://www.afn.org/~govern/mcfadden_speech_1932.html

http://www.afn.org/~govern/mcfadden_speech_1932.html



FJR-&JR) to *oney &reators 1y former <enator Ro1ert % Jwen

To the +meri(an *eople:

6t gives me spe(ial pleasure to have the opportunity to e3plain the prin(iples and purposes of this 1ook! written 1y MM% Coogan of Chi(ago%

The fa(ts that Miss Coogan was awarded a MasterIs )egree in -(onomi(s and Finan(e 1y Northwestern ;niversity8 w

eight years a <e(urity +nalyst for The Northern Trust Company of Chi(ago8 that from the 1eginning she had a deepunderstand the fan(ied enigma of money! have given her great insight into monetary s(ien(e%

The 1asi( prin(iples of monetary s(ien(e are simple% ] nowledge of the s(ien(e has 1een made diffi(ult 1y those w(onverted these simple prin(iples into an enigma% They have done so with ponderous volumes written on pri(es anpro(esses of produ(tion! transportation! distri1ution and allied topi(s8 weaving into the su14e(t matter de(eptive terpu1li( has 1een grossly misled 1y the use of words whi(h (ontain a((epted false premises% %%%

The purpose of this 1ook is to 1ring 1efore the +meri(an people the knowledge that they must have regarding the namanipulations of their money system% 6n my opinion! +meri(a fa(es a (risis whi(h may result in the loss of our ReConstitutional .overnment unless every man and woman! ri(h or poor! young or old8 do(tor! lawyer! mer(hant la1o(lergyman! so(ial worker! so(iety leader8 will 1estir himself or herself toward the pro1lem of 1ringing the fundame

monetary s(ien(e to every fireside%6t is time for intelligent +meri(ans to e3amine their money system %%%% Those who own insuran(e poli(ies and must 1estir themselves to prote(t those a((umulations% %%%

%%% The truths themselves are very simple! 1ut many of the newspapers and pu1lishing (ompanies allow themsel(arry misinformation to the +meri(an pu1li(! while negle(ting to print the truths% 7onest money prin(iples are undeevery one when the money su14e(t is presented in its true light%

6t re5uired the assistan(e of every loyal +meri(an to help win the &orld &ar% 6n my opinion! the +meri(an people stake today than they had at the time of the &orld &ar% 6 1elieve the future of our nation and the prin(iples for whstood! were less in 4eopardy then than they are today% %%%

The solution of the pro1lem to prote(t our homes does not rest with a few leaders in a distant (ity% 6t is ne(essary tand woman appoint himself and herself a leader% 7onest Money .roups must 1e formed in every 1lo(k! in every prthroughout the ;nited <tates! and in every rural (ommunity% The rural (ommunity (enters and s(hoolhouses (an 1e profita1ly employed this winter in showing the +meri(an farmers how simply they (an solve all of their own pro1legrave trou1les have 1een (aused not 1y overprodu(tion! 1ut 1y money manipulations fre5uently e3e(uted upon foreand to harmoniAe with foreign poli(ies% The result has 1een the e3tra(tion of dollars of a distorted pur(hasing p+meri(an farmer% Colle(ting dollars of su(h unfair pur(hasing power has deprived many +meri(an farmers of their all farmers of their share in the industrial produ(ts whi(h this nation is so well e5uipped to manufa(ture and distri1u

The prin(ipal reason for endorsing this 1ook is that 6 feel it is an intelligent vehi(le for the dissemination of the truthmust 1e understood in every home %%%%

%%% 6 am glad to (ommend it8 to give the 1ook my 1lessings in its prin(iples and purposes %%% 6t (ontains s(ie5ua(kery% %%%

This writer is informed% The information is sound% %%% it is written in an attra(tive way with an engaging stylethe +meri(an people truths of the very first magnitude%

&hen these truths are known! and the +meri(an people demand their (onstitutional right of an honest money system(ountry will enter upon an era of material and physi(al prosperity8 of opportunity! and spiritual and (ultural advan(ewill not only (harm and delight its own people 1ut will 1e(ome a model for the rest of the human ra(e%

Ro1ert % Jwen! New York City! J(to1er " ! >$%<our(e:http:@@www%sonnet%(om@usr@kidogo@(oogan%html

http://www.sonnet.com/usr/kidogo/coogan.html

http://www.sonnet.com/usr/kidogo/coogan.html



2The 2monetary reform9 plan prepared at 'ekyll 6sland was to 1e presented to Congress as the (ompleted work of thMonetary Commission% 6t was imperative that the real authors of the 1ill remain hidden% <o great was popular re1ankers sin(e the *ani( of #H that no Congressman would dare to vote for a 1ill 1earing the &all <treet taint! no had (ontri1uted to his (ampaign e3penses% The 'ekyll 6sland plan was a (entral 1ank plan! and in this (ountry theretradition of struggle against infli(ting a (entral 1ank on the +meri(an people% 6t had 1egun with Thomas 'effersonE+le3ander 7amiltonEs s(heme for the First Bank of the ;nited <tates! 1a(ked 1y 'ames Roths(hild% 6t had (ontinued*resident +ndrew 'a(ksonEs su((essful war against +le3ander 7amiltonEs s(heme for the <e(ond Bank of the ;nited <whi(h Ni(holas Biddle was a(ting as the agent for 'ames Roths(hild of *aris% The result of that struggle was the (re6ndependent <u1GTreasury <ystem! whi(h supposedly had served to keep the funds of the ;nited <tates out of the hfinan(iers% + study of the pani(s of =H>! = >! and #H indi(ates that these pani(s were the result of the internoperations in ondon% The pu1li( was demanding in #= that Congress ena(t legislation to prevent the re(urren(eindu(ed money pani(s% <u(h monetary reform now seemed inevita1le% 6t was to head off and (ontrol su(h reformNational Monetary Commission had 1een set up with Nelson +ldri(h at its head! sin(e he was ma4ority leader of thThe main pro1lem! as *aul &ar1urg informed his (olleagues! was to avoid the name 2Central Bank9% For that reasde(ided upon the designation of 2Federal Reserve <ystem9% This would de(eive the people into thinking it was no1ank% 7owever! the 'ekyll 6sland plan would 1e a (entral 1ank plan! fulfilling the main fun(tions of a (entral 1ank8owned 1y private individuals who would profit from ownership of shares% +s a 1ank of issue! it would (ontrol the money and (redit%9 Secrets of the Federal (eser"e 1y -usta(e Mullins! Chapter

2The *residential (ampaign of " re(ords one of the more interesting politi(al upsets in +meri(an history% The i&illiam 7oward Taft! was a popular president! and the Repu1li(ans! in a period of general prosperity! were firmly ithe government through a Repu1li(an ma4ority in 1oth houses% The )emo(rati( (hallenger! &oodrow &ilson! .overersey! had no national re(ognition! and was a stiff! austere man who e3(ited little pu1li( support% Both parties in(lmonetary reform 1ill in their platforms: The Repu1li(ans were (ommitted to the +ldri(h *lan! whi(h had 1een denou&all <treet plan! and the )emo(rats had the Federal Reserve +(t% Neither party 1othered to inform the pu1li( that thalmost identi(al e3(ept for the names% 6n retrospe(t! it seems o1vious that the money (reators de(ided to dump Taf&ilson% 7ow do we know this? Taft seemed (ertain of reele(tion! and &ilson would return to o1s(urity% <uddenlyRoosevelt 2threw his hat into the ring%9 7e announ(ed that he was running as a third party (andidate! the 2Bull Mo(andida(y would have 1een ludi(rous had it not 1een for the fa(t that he was e3(eptionally wellGfinan(ed% Moreovgiven unlimited press (overage! more than Taft and &ilson (om1ined% +s a Repu1li(an e3Gpresident! it was o1vioRoosevelt would (ut deeply into TaftEs vote% This proved the (ase! and &ilson won the ele(tion% To this day! no what Theodore RooseveltEs program was! or why he would sa1otage his own party% <in(e the 1ankers were finan(andidates! they would win regardless of the out(ome% ater Congressional testimony showed that in the firm of Company! Feli3 &ar1urg was supporting Taft! *aul &ar1urg and 'a(o1 <(hiff were supporting &ilson! and Jtto ahsupporting Roosevelt% The result was that a )emo(rati( Congress and a )emo(rati( *resident were ele(ted in " t(entral 1ank legislation passed% 6t seems pro1a1le that the identifi(ation of the +ldri(h *lan as a &all <treet operatithat it would have a diffi(ult passage through Congress! as the )emo(rats would solidly oppose it! whereas a su((ess)emo(rati( (andidate! supported 1y a )emo(rati( Congress! would 1e a1le to pass the (entral 1ank plan% Taft was thover1oard 1e(ause the 1ankers dou1ted he (ould deliver on the +ldri(h *lan! and Roosevelt was the instrument of hiThe final ele(toral vote in " was &ilson G $# 8 Roosevelt G H8 and Taft G L%9

Secrets of the Federal (eser"e 1y -usta(e Mullins! Chapter >

2Col% -lisha -lyU .arrison! an agent of Brown Brothers 1ankers! later Brown Brothers 7arriman! had entree everyfinan(ial (ommunity% 7e writes of Col% 7ouse! 2Col% 7ouse agreed entirely with the early writing of Mr% &ar1u.arrison! Roosevelt! &ilson and the Federal Reserve aw! Christopher *u1li(ations! Boston! > *age >>H!U he7ouse: 26 am also suggesting that the Central Board 1e in(reased from four mem1ers to five and their terms lengthe

eight to ten years% This would give sta1ility and would take away the power of a *resident to (hange the personnelduring a single term of offi(e%9 7ouseEs phrase! 2take away the power of a *resident9 is signifi(ant! 1e(ause laterfound themselves helpless to (hange the dire(tion of the government 1e(ause they did not have the power to (hange (omposition of the Federal Reserve Board to attain a ma4ority on it during that *residentEs term of offi(e% .arrisonthis 1ook! 2*aul &ar1urg is the man who got the Federal Reserve +(t together after the +ldri(h *lan aroused su(h naresentment and opposition% The mastermind of 1oth plans was Baron +lfred Roths(hild of ondon%99




Colonel -dward Mandell 7ouse was referred to 1y Ra11i <tephen &ise in his auto1iography! Challenging Years as 2unoffi(ial <e(retary of <tate9% 7ouse noted that he and &ilson knew that in passing the Federal Reserve +(t! they hinstrument more powerful than the <upreme Court% The Federal Reserve Board of .overnors a(tually (omprised a Court of Finan(e! and there was no appeal from any of their rulings% 6n ! prior to &ilsonEs taking offi(e as had returned to his home in Te3as and (ompleted a 1ook (alled +hilip $ru# Administrator % Jstensi1ly a novel! it was a(tuadetailed plan for the future government of the ;nited <tates! 2whi(h would esta1lish <o(ialism as dreamed 1y arl Ma((ording to 7ouse% This 2novel9 predi(ted the ena(tment of the graduated in(ome ta3! e3(ess profits ta3! unemploinsuran(e! so(ial se(urity! and a fle3i1le (urren(y system% 6n short! it was the 1lueprint whi(h was later followed 1&oodrow &ilson and Franklin )% Roosevelt administrations% 6t was pu1lished 2anonymously9 1y B% &% 7ue1sand widely (ir(ulated among government offi(ials! who were left in no dou1t as to its authorship% .eorge <ylvesterwho knew 7ouse for years! later wrote an a((ount of the &ilsonG7ouse relationship! The <trangest Friendship in 7i

LL! &est1rook *egler! the 7earst (olumnist from >" to L ! heard of the *hilip )ru 1ook and (alled ,iere(k thad a (opy% ,iere(k sent *egler his (opy of the 1ook! and *egler wrote a (olumn a1out it! stating: 2Jne of the instituoutlined in *hilip )ru is the Federal Reserve <ystem% The <(hiffs! the &ar1urgs! the ahns! the Ro(kefellers and Mtheir faith in 7ouse% The <(hiff! &ar1urg! Ro(kefeller and Morgan interests were personally represented in the my(onferen(e at 'ekyll 6sland%9


The .lass Bill /the 7ouse version of the final Federal Reserve +(t0 had passed the 7ouse on <eptem1er =! > 1yJn )e(em1er ! >! the <enate passed their version 1y a vote of L$G>$% More than forty important differen(eand <enate versions remained to 1e settled! and the opponents of the 1ill in 1oth houses of Congress were led to 1emany weeks would yet elapse 1efore the Conferen(e 1ill would 1e ready for (onsideration% The Congressmen prep&ashington for the annual Christmas re(ess! assured that the Conferen(e 1ill would not 1e 1rought up until the folloNow the money (reators prepared and e3e(uted the most 1rilliant stroke of their plan% 6n a single day! they ironedthe disputed passages in the 1ill and 5ui(kly 1rought it to a vote% Jn Monday! )e(em1er ""! >! the 1ill was pass7ouse "="G # and the <enate $>G">% Jn )e(em1er " ! >! The New York Times (ommented editorially on theYork will 1e on a firmer 1asis of finan(ial growth! and we shall soon see her the money (entre of the world%9


These developments following the passing of the Federal Reserve +(t proved every one of the allegations Thomas 'made against a (entral 1ank in H : that the su1s(ri1ers to the Federal Reserve Bank sto(k had formed a (orporatisto(k (ould 1e and was held 1y aliens8 that this sto(k would 1e transmitted to a (ertain line of su((essors8 that it wou1eyond forfeiture and es(heat8 that they would re(eive a monopoly of 1anking! whi(h was against the laws of monothat they now had the power to make laws! paramount to the laws of the states% No state legislature (an (ountermalaws laid down 1y the Federal Reserve Board of .overnors for the 1enefit of their private sto(kholders% This 1oardas to what the interest rate shall 1e! what the 5uantity of money shall 1e and what the pri(e of money shall 1e% +ll powers a1rogate the powers of the state legislatures and their responsi1ility to the (itiAens of those states%


The true purposes of the Federal Reserve +(t soon 1egan to disillusion many who had at first 1elieved in its (laims%wrote in MoodyEs MagaAine! ! 2The purpose of the Federal Reserve +(t was to prevent (on(entration of monYork 1anks 1y making it profita1le for (ountry 1ankers to use their funds at home! 1ut the movement of (urren(y shNew York 1anks gained from the interior in every month e3(ept )e(em1er! L! sin(e the +(t went into effe(t% Tsta1iliAation of rates has taken pla(e in New York alone% 6n other parts! high rates (ontinue% The +(t! whi(h was <treet of its funds for spe(ulation! has really given the 1ulls and the 1ears su(h a supply as they have never had 1efois that far from having (logged the (hannel to &all <treet! as Mr% .lass so (onfidently 1oasted! it a(tually widened t(hannels and opened up two new ones% The first of these leads dire(tly to &ashington and gives &all <treet a strinsurplus (ash in the ;nited <tates Treasury% Besides! in the power to issue 1ankGnote (urren(y! it furnishes an ine3hsupply of (redit money8 the se(ond (hannel leads to the great (entral 1anks of -urope! where1y! through the sale of virtually guaranteed 1y the ;nited <tates .overnment! &all <treet is granted immunity from foreign demands for golhave pre(ipitated every great (risis in our history%9




2For many years! there has 1een (onsidera1le mystery a1out who a(tually owns the sto(k of the Federal Reserve BaCongressman &right *atman! leading (riti( of the <ystem! tried to find out who the sto(kholders were% The sto(k itwelve regional Federal Reserve Banks was pur(hased 1y national 1anks in those twelve regions% Be(ause the FedBank of New York was to set the interest rates and dire(t open market operations! thus (ontrolling the daily supply money throughout the ;nited <tates! it is the sto(kholders of that 1ank who are the real dire(tors of the entire systemfirst time! it (an 1e revealed who those sto(kholders are% This writer has the original organiAation (ertifi(ates of thFederal Reserve Banks! giving the ownership of shares 1y the national 1anks in ea(h distri(t% The Federal ReserveYork issued "#>!#L> shares! and! as filed with the Comptroller of the Curren(y May ! $! the large New Yortook more than half of the outstanding shares% The Ro(kefeller uhn! oe1G(ontrolled National City Bank took thnum1er of shares of any 1ank! >#!### shares% '%*% MorganEs First National Bank took L!### shares% &hen tmerged in LL! they owned in one 1lo(k almost one fourth of the shares in the Federal Reserve Bank of New Yor(ontrolled the entire system! and thus they (ould name *aul ,ol(ker or anyone else they (hose to 1e Chairman of the Reserve Board of .overnors% Chase National Bank took !### shares% The Marine Nation Bank of Buffalo! laterMarine Midland! took !### shares% This 1ank was owned 1y the <(hoellkopf family! whi(h (ontrolled Niagara *and other large interests% National Bank of Commer(e of New York City took " !### shares% The shareholders owhi(h own the sto(k of the Federal Reserve Bank of New York are the people who have (ontrolled our politi(al anddestinies sin(e $% They are the Roths(hilds! of -urope! aAard Freres /-ugene Meyer0! uhn oe1 Company! Company! ehman Brothers! .oldman <a(hs! the Ro(kefeller family! and the '%*% Morgan interests% These intereand (onsolidated in re(ent years! so that the (ontrol is mu(h more (on(entrated% National Bank of Commer(e is now.uaranty Trust Company% ehman Brothers has merged with uhn! oe1 Company! First National Bank has mergNational City Bank! and in the other eleven Federal Reserve )istri(ts! these same shareholders indire(tly own or (onin those 1anks! with the other shares owned 1y the leading families in those areas who own or (ontrol the prin(ipal these regions%9 Secrets of the Federal (eser"e 1y -usta(e Mullins! Chapter >2 &Ue have in this (ountry one of the most (orrupt institutions the world has ever known% 6 refer to the Federal Rand the Federal Reserve Banks% The Federal Reserve Board! a .overnment 1oard! has (heated the .overnment of th<tates and the people of the ;nited <tates out of enough money to pay the national de1t% The depredations and ini5Federal Reserve Board has (ost this (ountry enough money to pay the national de1t several times over% This evil inimpoverished and ruined the people of the ;nited <tates! has 1ankrupted itself! and has pra(ti(ally 1ankrupted our .o6t has done this through the defe(ts of the law under whi(h it operates! through the maladministration of that law 1yReserve Board! and through the (orrupt pra(ti(es of the moneyed vultures who (ontrol it% <ome people think the FReserve 1anks are ;nited <tates .overnment institutions% They are not .overnment institutions% They are private (rmonopolies whi(h prey upon the people of the ;nited <tates for the 1enefit of themselves and their foreign (ustomerand domesti( spe(ulators and swindlers8 and ri(h and predatory money lenders% 6n that dark (rew of finan(ial pirat

those who would (ut a manIs throat to get a dollar out of his po(ket8 there are those who send money into <tates to (ontrol our legislation8 and there are those who maintain international propaganda for the purpose of de(eiving us awheedling us into the granting of new (on(essions whi(h will permit them to (over up their past misdeeds and set agmotion their giganti( train of (rime%9

;%<% Congressman ouis Thomas M(Fadden /Repu1li(an *artyG*ennsylvania0! in a spee(h to the ;%<% 7ouseRepresentatives on 'une #! >"% Note: M(Fadden was a Congressman from Mar(h $! L to 'anuary >! >died on J(to1er ! > while on a visit in New York City%U

2Jur finan(ial system is a false one and a huge 1urden on the people % % % This Federal ReserveU +(t esta1lishegiganti( trust on earth% &hen the *resident signs this 1ill! the invisi1le government 1y the Monetary *ower will 1eThe people may not know it immediately! 1ut the day of re(koning is only a few years removed% The trusts will sthey have gone too far even for their own good% The people must make a de(laration of independen(e to relieve th

from the Monetary *ower% This they will 1e a1le to do 1y taking (ontrol of Congress% &all <treeters (ould not (<enators and Representatives did not make a hum1ug of Congress % % % 6f we had a peopleEs Congress! there wThe greatest (rime of Congress is its (urren(y system% The worst legislative (rime of the ages is perpetrated 1y thisThe (au(us and the party 1osses have again operated and prevented the people from getting the 1enefit of their owngovernmentS From now on! depressions will 1e s(ientifi(ally planned and (reated%9

;%<% Congressman Charles +% ind1ergh! <r%! in a spee(h to the ;%<% 7ouse of Representatives on )e(em1e

2The finan(ial system has 1een turned over to the Federal Reserve Board% That Board administers the finan(e systauthority of a purely profiteering group% The system is private! (ondu(ted for the sole purpose of o1taining the greprofits from the use of other peopleEs money%9 Charles +% ind1ergh! <r%! ">



!he 4ederal 8ncome !a3 (enforced by the 8nternal "e enue $er ice) and the 4ederal "eser e $ystem were established in .(Photo7 4lickr )

ignifi+ant Histori+al ?4ents in ) 3

• !he "ockefeller 4oundation was founded in .• !he 0nti-Defamation League of B nai B rith was founded in .• !he /th 0mendment of the '.$. 1onstitution establishing the federal income ta3 was ratified on 4ebruary , .• !he :th 0mendment of the '.$. 1onstitution recogni2ing #o#ular election of '.$. $enators was ratified on 0#ril 9, .• !he '.$. De#artment of Labor was established on *arch +, .• '.$. President Woodrow Wilson signed the 4ederal "eser e 0ct into law on December 6 , .• 4rancisco 8. *adero, former President of *e3ico, was assassinated in *e3ico on 4ebruary 66, .• Woodrow Wilson was inaugurated President of the 'nited $tates on *arch +, .• Eing @eorge 8 of @reece was assassinated in !hessaloniki, @reece on *arch 9, • 0merican international banker ;ohn Pier#ont *organ $r. died in "ome, 8taly on *arch , .• !he !reaty of London ending the 4irst Balkan War was signed on *ay <, .• !he !reaty of Bucharest ending the $econd Balkan War was signed on 0ugust <, .

http://www.flickr.com/photos/shashachu/486843386/





Fe#eral 6eser4e earne# =B billion in *>>)By Neil 6rwin&ashington *ost <taff &riterTuesday! 'anuary "! "# #

&all <treet firms arenEt the only 1anks that had a 1anner year%The #ederal $eserve made record profits in 1 0 ! as its un(onventional efforprop up the e(onomy (reated a windfall for the government%

The Fed will return a1out P$L 1illion to the ;%<% Treasury for "## ! a((ording to (al(ulations 1y The &ashington *ost 1ased on pu1That refle(ts the highest earnings in the Gyear history of the (entral 1ank% The Fed! unlike most government agen(ies! funds itseloperations and returns its profits to the Treasury%

The num1ers are good news for the federal 1udget and a sign that the Fed has 1een su((essful! at least so far! in prote(ting ta3payers in the e(onomy GG though there remains a risk of signifi(ant losses in the future if the Fed sells some of its investments or loses mon1ailedGout firms%

This turn of events (omes as the 1anks that 1enefited from the FedIs a(tions are under the mi(ros(ope% <tarting at the end of the weeare e3pe(ted to announ(e signifi(ant earnings and employee 1onuses% +nger in &ashington is at su(h a high 1oil that the J1ama admipro1a1ly propose a fee on finan(ial firms to re(oup the (ost of their 1ailout! offi(ials (onfirmed Monday%

+s it happens! the FedEs earnings for the year will dwarf those of the large 1anks! easily topping the e3pe(ted profits of Bank of +me<a(hs and '%*% Morgan Chase (om1ined%

Mu(h of the higher earnings (ame a1out 1e(ause of the FedIs aggressive program of 1uying 1onds! aiming to push interest rates downe(onomy and thus stimulate growth% By the end of "## ! the Fed owned P %= trillion in ;%<% government de1t and mortgageGre

from P$ H 1illion a year earlier% The interest in(ome on those investments was a ma4or sour(e of Fed profits GG though that in(omas the (entral 1ank (ould lose money if it later sells those se(urities to redu(e the money supply%

The Fed also made money on its emergen(y loans to 1anks and other firms and on spe(ial programs to prop up lending! su(h as one th(redit (ards! auto loans! and other (onsumer and 1usiness lending% Those programs impose interest and fees on parti(ipants! with thethat the Fed does not lose money%

+nd while the (entral 1ank in its most re(ent finan(ial report had re(orded a P>%= 1illion de(line in the value of loans it made in 1ailiinvestment 1ank Bear <tearns and the insurer +meri(an 6nternational .roup! the Fed also logged P$%H 1illion in interest payments frFurther losses GG or gains GG on the two 1ailouts are possi1le as time goes 1y% The Fed also (harges fees for operating the plum1insystem! su(h as (learing (he(ks and ele(troni( payments 1etween 1anks%

From its revenue! the Fed dedu(ts operating e3penses! su(h as employee salaries! then returns to the Treasury almost all of the earninThe largest previous refund to the Treasury was P>$% 1illion! in "##H%

2This shows that (entral 1anking is a great 1usiness to 1e in! espe(ially in a (risis!9 said ,in(ent Reinhart! a resident s(holar at the +me-nterprise 6nstitute and a former Fed offi(ial% 2You 1uy assets that have a ni(e yield! and your (ost of funds is very low% The differe

The Fed plans to release its estimate of "## earnings Tuesday% The *ostIs (al(ulation is 1ased on (om1ining data through <eptem1emonthly 1alan(e sheet report with more re(ent data from the TreasuryIs daily 1udget statement%

Fed offi(ials do not make poli(y with an eye toward ma3imiAing profits% They are (harged 1y law with managing the nationIs moneemployment high and pri(es sta1le! and earnings flu(tuate depending on a wide range of fa(tors as they pursue that goal% 6n the (risi1ankIs poli(y has 1een to (reate money and use it to 1uy a wide variety of assets! whi(h in turn pay interest%

6n effe(t! the unpre(edented range of a(tions taken to address the (risis has made the FedIs 1alan(e sheet more like that of a private 1aas Bank of +meri(a takes money from depositors! whom it pays little or nothing in interest! and lends it out at signifi(antly higher ratsimilarly! takes money that 1anks keep on deposit! at a rate of #%"L per(ent! and lends it to the ;%<% government 1y 1uying Treasu

lately! to home 1uyers and other private 1orrowers though more e3oti( investments%&hile that resulted in higher earnings in "## ! it e3poses the Fed to more risks down the road% TheyIve moved up the riskGreturn more longGterm assets and more things that involve (redit risk! said )iane <wonk! (hief e(onomist at Mesirow Finan(ial%

6f the pri(e of Treasury 1onds or mortgageGrelated se(urities issued 1y Fannie Mae and Freddie Ma( were to fall in the years ahead! de(ided they need to drain money from the finan(ial system 1y selling off some of their portfolio! the (entral 1ank would lose moneyenough asset sales and rates go high enough! that (ould eat into future profits pretty su1stantially!9 said Mi(hael Feroli! an e(onomistChase%

-ven as the Fed (omes to resem1le private 1anks in terms of its 1alan(e sheet and its earnings power! there remains one 1ig differen(ethe Federal Reserve! Chairman Ben <% Bernanke! re(eived a modest (ostGofGliving raise for "# #! despite the re(ord earnings: 7e nP !H##! with no 1onus at all%

<our(e:The Washington +ost 8 http:@@www%washingtonpost%(om@wpGdyn@(ontent@arti(le@"# #@# @ @+R"# ## #>=

http://www.washingtonpost.com/wp-dyn/content/article/2010/01/11/AR2010011103892.html







rose in wartime and sank in #eacetime. 8t sank in #eacetime because technological #rogress and the o#ening of new regions toagricultural #roduction made merchandise and commodities chea#er and more abundant.

=ot e eryone agreed that these arrangements were hea en-sent. 8n com#arison to the rigor of the gold standard, #a#er moneyseemed, to many, an intelligent and forgi ing alternati e. 8n 9:9, a committee of the ouse of "e#resentati es was formed toin estigate the causes of the suffering of working #eo#le in the de#ression that was fi e years old and counting. =ot a few witnesses#leaded for the creation of more greenbacks. !hey asked that the go ernment not go through with its #lan to return to the goldstandard in 9: . But the nation did return to gold -- it had financed the 1i il War with #a#er money -- and the de#ression ended in the

ery same year.

@old is a hard master, and a ca#ricious one, too, insofar as growth in the worldIs monetary base de#ends on the enter#rise of miningengineers. But, as we ha e seen lately, there is no ca#rice like the ca#rice of slee#-de#ri ed *andarins im#ro ising a monetarysolution to a credit crisis (or, for that matter, of fully rested *andarins setting interest rates by the lights of their econometric models).

!he times were hard in the 9:<s and, for that matter, again in the 9 <s, but 0mericans re#eatedly s#urned the Po#ulist cries for adollar you didnIt ha e to dig out of the ground but could rather #rint u# by the Kob lot. H8f the @o ernment can create money,H as a hard-money #ro#agandist #ut it in an 9 6 broadside entitled H1hea# *oney,H Hwhy should not it create all that e erybody wants? Whyshould anybody work for a li ing?H 0nd -- in a most #rescient rhetorical uestion -- he went on to ask, HWhy should we ha e any limit#ut to the olume of our currency?H

0 cou#le of #anics later, the 4ederal "eser e came along -- the year was . Promoters of the legislation to establish 0mericaIs newcentral bank #rotested that they wanted no soft currency. !he dollar would continue to be e3changeable into gold at the customary rateof G6<./: an ounce. But, they added, under the 4edIs enlightened stewardshi#, the currency would become He3#ansi e.H 0ccordion-fashion, the number of dollars in circulation would e3#and or contract according to the needs of commerce and agriculture.

?lihu 6oot, 6epubli+an senator from 5ew ;ork, thought he smelle# a rat. 8nti+ipating the +re#it inflations of the future an#re+alling the #isturban+es of the past, r. 6oot atta+ke# the bill in this fashion7 GLittle b! little, business is enlarge# with eas!mone!. With the exhaustless reser4oir of the o4ernment of the -nite# tates furnishing eas! mone!, the sales in+rease, thebusinesses enlarge, more new enterprises are starte#, the spirit of optimism per4a#es the +ommunit!.

G ankers are not free from it,G r. 6oot went on. G$he! are human. $he members of the Fe#eral 6eser4e boar# will not be freeof it. $he! are human....?4er!one is making mone!. ?4er!one is growing ri+h. Dt goes up an# up, the margin between +ostsan# sales +ontinuall! growing smaller as a result of the operation of ine4itable laws, until finall! someone whose Eu#gmentwas ba#, someone whose +apa+it! for business was small, breaks% an# as he falls he hits the next bri+k in the row, an# thenanother, an# then another, an# #own +omes the whole stru+ture.

G$hat, sir,G r. 6oot +on+lu#e#, Gis no #ream. $hat is the histor! of e4er! mo4ement of inflation sin+e the worl# s businessbegan, an# it is the histor! of man! a perio# in our own +ountr!. $hat is what happene# to greater or less #egree before thepani+ of 13/, of 1B/, of 1/3, of 1)3 an# of )>/. $he pre+ise formula whi+h the stu#ents of e+onomi+ mo4ements ha4ee4ol4e# to #es+ribe the reason for the +rash following the uni4ersal pro+ess is that when +re#it ex+ee#s the legitimate#eman#s of the +ountr! the +urren+! be+omes suspe+te# an# gol# lea4es the +ountr!.G

Little did *r. "oot sus#ect that the dollar would lose its gold backing altogether -- that, starting in : , there would be nothing behind itmore than the good intentions of the '.$. go ernment and (somewhat more substanti ely) the demonstrated strength of the '.$.economy. $till less could he ha e guessed that the world would nonetheless fall in lo e with that uncollaterali2ed #iece of #a#er or --e en more astoundingly -- that the 'nited $tates would enKoy so great a reser oir of good will that it would be allowed to borrow its wayto a net international in estment #osition of minus G6.++ trillion (G :./+ trillion of foreign assets held by 0mericans s. G6<.<9 trillion of0merican assets held by foreigners). H8t goes u# and u#,H *r. "oot said of the inflationary cycle, but Kust how high he could not ha edreamt.

Enowledge of the #rece#ts of classical central banking #re#ared no one to understand, much less to antici#ate, the 4edIs conduct inthis credit cracku#. !he central bank is lending freely, all right, but not at the sti#ulated HhighH interest rate. 0s a matter of fact, it isstarting to lend at a rate below which there is no #ositi e rate. !he gold standard was obKecti e. *odern monetary management issubKecti e (under 0lan @reens#an, it was intuiti e). !he gold standard was rules-based. !he 6 st century 4ed goes with what works --or seems to work. What it ho#es is going to work for the fellow who fell off the ste#ladder is more debt and more dollars. ;ust how muchof each can be found e ery !hursday e ening on the 4edIs own Web site. F#en u# form +. and #re#are to be ama2ed. $ince LaborDay, the 4edIs assets ha e 2oomed to G6. trillion from G <>.: billion. 0nd what is the significance of this stunning rate of assetgrowth? $im#ly this7 !he 4ed #ays for its assets with freshly made dollars. 8t conKures them into e3istence on a com#uter5 H#rintingH is afigure of s#eech.

8n this crisis, the 4edIs assets ha e grown much faster than its ca#ital. !he truth is that the 4ederal "eser e is itself a highly le eragedfinancial institution. !he flagshi# branch of the 6-bank system, the 4ederal "eser e Bank of =ew &ork, shows assets of G . trillionand ca#ital of Kust G 6.6 billion. 8ts le erage ratio, a mere <. S, is less than one-third of that #rescribed for banks in the #ri ate sector.$uch a thin film of #rotection would #resent no s#ecial risk if the bank managed by !imothy 4. @eithner, the !reasury secretary-designate, owned only short-dated !reasurys. owe er, the mystery meat ac uired from Bear $tearns and 08@ foots to G//./ billion. 0writedown of Kust 9. S in the alue of those risky #ortfolios would erase the =ew &ork 4edIs ca#ital account. Dn +ongressionaltestimon! eight !ears ago, Lauren+e e!er, then a Fe# go4ernor, trie# to alla! an! su+h +on+erns (whi+h then must ha4e



seeme# remote, in#ee#". GCre#itors of +entral banks...are at no risk of a loss be+ause the +entral bank +an alwa!s +reatea##itional +urren+! to meet an! obligation #enominate# in that +urren+!,G he soothingl! remin#e# his listeners.

&es, todayIs #olicy makers allow, there are risks to HcreatingH a trillion or so of new currency e ery few months, but that is tomorrowIsworry. Fn todayIs agenda is a deflationary abyss. 4rostbite ictims tend not to dwell on the summertime #erils of heatstroke.

But the seasons of finance are un#redictable. Prescience is rare enough in the #ri ate sector. 8t is almost unheard of in Washington.!he credit troubles took the 4ed unawares. $o, likely, will the outbreak of the ne3t inflation. 0lready the stars are aligned for a doo2y.=ot only the 4ed, but also the other leading central banks are frantically ram#ing u# money #roduction. $imultaneously, miners and oil#roducers are ram#ing down commodity #roduction -- as is, for instance, is "io !into, the hea ily encumbered mining giant, which theother day disclosed +,<<< layoffs and a G> billion cutback in ca#ital e3#enditure. 1ome the economic reco ery, resource #roducerswill certainly increase out#ut. But it is far less certain that, once the cycle turns, the central banks will #unctually tighten.

!he #ublic has been slow to anger in this costliest and scariest of #ost World War 88 financial crises. Wall $treet and the debt ratingsagencies ha e come in for well-deser ed castigation. But #ointing fingers rarely find the 4ederal "eser e, whose low, low interest rateshel#ed to set house #rices le itating in the first #lace.

0fter *r. Bernanke gets a good nightIs slee#, he should be called to account for once again cutting interest rates at the e3#ense of thelong-suffering (and #ossibly hungry) sa ers. e should be asked to e3#lain how the central-banking methods of the #a#er-dollar erare#resent any im#ro ement, either in #ractice or theory, o er the rigor, elegance, sim#licity and #redictability of the gold standard. eshould be directed to read aloud the te3t of criti ue by lihu "oot and e3#lain where, if at all, the old gentleman went wrong. 4inally, heshould be directed to #ut himself into the shoes of a foreign holder of '.$. dollars. H!ell us, *r. Bernanke,H a congressman mightconsider asking him, Hif you had the choice, would you hold dollars? 0nd may 8 remind you, *r. 1hairman, that you are under oath?H

;ames @rant, the editor of @rantIs 8nterest "ate Fbser er, is the author most recently of H*r. *arket *iscalculates.H#rinte in The (a!! 'treet $ourna!) page (*

<our(e:The Wall Street ,ournal ! http:@@online%ws4%(om@arti(le@<B "" H>$> L"LL">" L%html

2 ittle 1y little! 1usiness is enlarged with easy money% &ith the e3haustless reservoir of the .overnment of the ;nifurnishing easy money! the sales in(rease! the 1usinesses enlarge! more new enterprises are started! the spirit of optpervades the (ommunity% Bankers are not free from it% They are human% The mem1ers of the Federal reserve 1free of it% They are human% Regional 1ankers will not 1e free from it% They are human% +ll the world moves growing tide of optimism% -veryone is making money% -veryone is growing ri(h% 6t goes up and up! the marginand sales (ontinually growing smaller as a result of the operation of inevita1le laws! until finally someone whose 4u1ad! some one whose (apa(ity for 1usiness was small! 1reaks8 and as he falls he hits the ne3t 1ri(k in the row! and and then another! and down (omes the whole stru(ture% That! sir! is no dream% That is the history of every movesin(e the worldIs 1usiness 1egan! and it is the history of many a period in our own (ountry% That is what happenedless degree 1efore the pani( of =>H! of =LH! of =H>! of = >! and of #H% <o! sir! 6 (an see in this 1ill itof our duty! no influen(e interposed 1y us against the o((urren(e of one of those periods of false and delusive prospinevita1ly end in ruin and suffering% For! Mr% *resident! the most direful results of the awakening of the people dream are not to 1e found in the 1anking houses no8 not even in the 1usiness houses% They are to 1e found amowho have lost the means of earning their daily 1read%9

Former ;%<% <enator -lihu Root! in a spee(h he delivered in the ;%<% <enate on )e(em1er >! >! from Addresses on!o"ernment and &iti-enship / 0! p% >>HG>>=

2S .Uold always leaves a (ountry in whi(h the amount of (urren(y e3(eeds the demands of legitimate 1usiness%9 Former ;%<% <enator -lihu Root! in a spee(h he delivered in the ;%<% <enate on )e(em1er >! >! from Addresses on

!o"ernment and &iti-enship / 0! p% >LL

http://online.wsj.com/article/SB122973431525523215.html

http://online.wsj.com/article/SB122973431525523215.html



I!!ustrat%d Cistor o" th% F%d%ra! %s%r&%

!he 4ederal "eser e Board in +. !he se en original members of the 4ederal "eser e Board sit for a grou# #ortrait on 0ugust <, +,shortly after being sworn in. $tanding, left to right7 Paul *. Warburg, ;ohn $kelton Williams (1om#troller of the 1urrency), W.P.@. arding,and 0dol#h 1. *iller5 seated, left to right7 1harles amlin (@o ernor), William @. *c0doo (1hairman and $ecretary of the !reasury), and4rederic 0. Delano. 4rederic 0. Delano was the son of "ussell % 1om#any M1hina o#ium syndicateN #artner Warren Delano ;r. and '.$.President 4ranklin Delano "oose elt s uncle. *c0doo is wearing a mourning armband to commemorate the death, four days earlier, of hismother-in-law, llen 03son Wilson, the former 4irst Lady and wife of President Woodrow Wilson. William @. *c0doo had married WoodrowWilson s daughter leanor "andol#h Wilson in *ay +. (Photo7 @eorge @rantham Bain 1ollectionCLibrary of 1ongress)



4ederal "eser e bankers #ose for a grou# #ortrait in +. 4ront row, left to right7 Paul Warburg, ;ohn $kelton Williams, 1harles amlin, and4rederic 0. Delano. 8n the rear is a large grou# of @o ernors and *embers of the arious branches of the 4ederal "eser e banks.(Photo7 arris % wing 1ollectionCLibrary of 1ongress)

*embers of the "ed 1ross War 1ouncil meet with President Woodrow Wilson during World War 8. 4ront row, left to right7 "obert W. De4orest,President Woodrow Wilson, former President William oward !aft, unidentified. Back row, left to right7 enry P. Da ison, unidentified, 1harlesD. =orton, and dward =. urley. Fne of the unidentified #erson in this #hoto is 1ol. @rayson *.P. *ur#hy. 1harles D. =orton, dward =.

urley, and "obert W. De4orest were members of the 1ouncil on 4oreign "elations. enry P. Da ison went to ;ekyll 8sland in < alongwith Paul Warburg and $enator =elson 0ldrich to create a legislation that would establish the 4ederal "eser e.



+ group portrait of the )istri(t .overnors of the Federal Reserve in (ir(a Novem1er $: -% R% FR+NC7-R! Cleve)istri(t $8 .-JR.- '% <-+Y! Ri(hmond! )istri(t L8 'J<-*7 +% M(CJR)! +tlanta! )istri(t 8 T7-J)JR- &J )!Minneapolis! )istri(t 8 C7+R -< M% <+&Y-R! Topeka! )istri(t #% B+C RJ&: C7+R -< '% R7J+)<! *hiladelp)istri(t >8 J<C+R &- <! 7ouston! )istri(t 8 + FR-) % +6 -N! Boston! )istri(t 8 B-N'+M6N <TRJN.! New Y)istri(t "8 +RC76B+ ) +6N<! <an Fran(is(o! )istri(t "%/Repository: i1rary of Congress *rints and *hotographs )ivision0/<our(e:http:@@www%lo(%gov@pi(tures@item@he("##=##>$ >@?sidX>#H 1 dHde(> L(ee >"f ea(1 (=0

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http://www.loc.gov/pictures/item/hec2008003493/?sid=3071b16d7dec395cee932f6eacb6c8f4



+ group portrait of the Chairmen of the Federal Reserve )istri(ts in (ir(a Novem1er $: Front row: FR-)-R6C 7C;RT6<<! Boston! )istri(t 8 *6-RR- '+Y! New York City! )istri(t "8 R6C7+R) % +;<T6N! *hiladelphia! )istri(t >&6 <! Bellevue! *ennsylvania! )istri(t $8 &6 6+M 6N. -! Baltimore! )istri(t L8 M%B% &6 BJRN! +nnisto)istri(t 8 Ba(k row: C%7% BJ<&JRT7! Chi(ago! )istri(t H8 +%-% R+M<-Y! Muskogee! Jklahoma! )istri(t #8 -%T-NN6<JN! )allas! )istri(t 8 'J7N *-RR6N! <an Fran(is(o! )istri(t "% *ierre 'ay and 'ohn *errin were mem1ers K Bones at Yale ;niversity% /Repository: i1rary of Congress *rints and *hotographs )ivision0/<our(e:http:@@www%lo(%gov@pi(tures@item@he("##=##>$ "@resour(e@he(%#$= @?sidX (" L "#e#0

http://www.loc.gov/pictures/item/hec2008003492/resource/hec.04861/?sid=6c295120e06f5cd632c0653485e9c219

http://www.loc.gov/pictures/item/hec2008003492/resource/hec.04861/?sid=6c295120e06f5cd632c0653485e9c219



Federal Reserve Board mem1er *aul M% &ar1urg /wearing a top hat and a mousta(he0 attends the First *an +meriConferen(e in &ashington! )%C% in May L% /*hoto: 7arris K -wing Colle(tion@i1rary of Congress0

http://www.loc.gov/pictures/item/hec2008004237/




*hotograph of a Federal Reserve Board meeting in (ir(a H% Clo(kwise! 1eginning from left: &illiam .% M(+dof the Treasury0! 'ohn <kelton &illiams /Comptroller of the Curren(y0! +dolph C% Miller! Frederi( +% )elano! un7arding /.overnor of the Federal Reserve0! *aul &ar1urg /,i(e .overnor of the Federal Reserve0! and Charles <% 7a

/*hoto: 7arris K -wing Colle(tion@ i1rary of Congress0



4ederal "eser e Board members #ose for a grou# #ortrait during World War 8. 1lockwise, from left7 unidentified, W.P.@. arding, PaulWarburg, William @. *c0doo (1hairman and $ecretary of the !reasury), 1harles amlin, ;ohn $kelton Williams (1om#troller of the 1urrency),0dol#h 1. *iller, and 4rederic 0. Delano. (Photo7 arris % wing 1ollectionCLibrary of 1ongress)



Paul Warburg stands on the far left in the rear as a member of the 4ederal "eser e Board. Paul Warburg was one of the founders of the4ederal "eser e. Paul Warburg was a @erman citi2en at the time he attended a secret meeting in ;ekyll 8sland, @eorgia in =o ember <5he became an 0merican citi2en on *arch 6 , . Paul Warburg ser ed as Aice 1hairman of the 4ederal "eser e during World War 85 heser ed as director of the 1ouncil on 4oreign "elations from 6 until his death in 6.

William Boyce !hom#son (bottom left, seated) was a Class <ire+tor of the Fe#eral 6eser4e ank of 5ew ;ork from ) =to ) ) and one of the original 6 members of the 1ouncil on 4oreign "elations. e is seen with se eral "ussian Bolshe iks.



+ photo of a Federal Reserve Board .overnorEs meeting in the early "#s% Federal Reserve 1ankers in the (onfein(lude *ierre 'ay /third from right! Chairman of the Federal Reserve Bank of New York0 and 'ohn *errin /se(ond frChairman of the Federal Reserve Bank of <an Fran(is(o0% /*hoto: 7arris K -wing Colle(tion@i1rary of Congress0





Take BoticeJ Federal Reserve Board mem1ers pose for a group portrait in )e(em1er " % From left to right: +ndMellon /<e(retary of the Treasury0! &%*%.% 7arding /.overnor ChairmanU of the Federal Reserve0! -dmund *la.overnor of the Federal Reserve0! Charles <% 7amlin! +dolph C% Miller! )aniel R% Crissinger /Comptroller of th%R% Mit(hell% /*hoto: 7arris K -wing Colle(tion@i1rary of Congress0





Federal Reserve Board mem1ers pose for a group portrait on May ! ">% From left to right! +dolph C% Mill)awes /Comptroller of the Curren(y0! unidentified! +ndrew &% Mellon /<e(retary of the Treasury0! -dmund *latt /.overnor of the Federal Reserve0! unidentified! )aniel R% Crissinger /.overnor ChairmanU of the Federal Reserve<% 7amlin% The two unidentified men are Federal Reserve Board mem1ers .eorge R% 'ames /appointed on May -dward 7% Cunningham /appointed on May $! ">0% /*hoto: National *hoto Company Colle(tion@i1rary of Congress0

http://www.loc.gov/pictures/item/npc2008004687/

http://www.loc.gov/pictures/item/npc2008004687/



*embers of the 4ederal "eser e Board #ose for a grou# #ortrait in December 6 , with 0ndrew W. *ellon, $ecretary of the !reasury, as its1hairman. 4rom left to right, 0ndrew W. *ellon, 1hairman, W.P.@. arding, @o ernor, dmund Platt, Aice @o ernor, 1harles $. amlin,0dol#h 1. *iller, Daniel ". 1rissinger, 1om#troller of the 1urrency, and ;.". *itchell. (J 'nderwood % 'nderwoodC1F"B8$)

.$. President 4ranklin D. "oose elt signs the @old Bill in Washington, D.1. on ;anuary <, +. Witnesses standing in the rear include!reasury $ecretary enry *orgenthau ;r. (second from left) and @eorge L. arrison (second from right), the President of the 4ederal "eser e

Bank of =ew &ork. (J BettmannC1F"B8$)



*resident Franklin )% Roosevelt signs the .old Bill in &ashington! )%C% on 'anuary >#! >$% &itnesses standinin(lude Treasury <e(retary 7enry Morgenthau 'r% /se(ond from left0 and .eorge % 7arrison /se(ond from right0! thof the Federal Reserve Bank of New York%/*hoto Credit: ;nderwood K ;nderwood@Franklin )% Roosevelt *residential i1rary and Museum0





New home of Federal Reserve Board in (ir(a >H% /*hoto: 7arris K -wing Colle(tion@i1rary of Congress0





The governmentEs e3perts on money matters met with <enate and 7ouse leaders in &ashington! )%C% on 'anuary dis(uss legislation to 1e su1mitted to the HLth session of Congress% + dis(ussion was made at the (onferen(e to e3timportant federal monetary lending agen(ies! and also! to move in giving the *resident authority to dis(ontinue the anytime the (onditions warrant% 6n the photograph! from left to right: 'esse 7% 'ones! ;%<% <enator Carter .lass /),irginia0! Chairman of the <enate Finan(e Committee ;%<% <enator *at 7arrison /)emo(ratGMississippi0! and MarChairman of the Federal Reserve Board% /*hoto: 7arris K -wing Colle(tion@ i1rary of Congress0



Marriner -((les /right0! Chairman of the Federal Reserve Board! gestures with his middle finger as he drives home ;%<% <enator *at 7arrison! Chairman of the <enate Finan(e Committee! during a private (onversation in &ashingtanuary H! >H% They were snapped while attending a (onferen(e 1etween the administration fis(al e3perts and <7ouse leaders to dis(uss legislation to 1e su1mitted to the HLth session of Congress%/*hoto: 7arris K -wing Colle(tion@i1rary of Congress0





4ederal "eser e Board 1hairman *arriner ccles, seen with both of his hands on his face, urges a##ro al of administrationIs lending #rogramduring a $enate Banking and 1urrency 1ommittee hearing in Washington, D.1., ;uly , . ccles told the $enate Banking and 1urrency1ommittee that the President s lending #rogram is the only immediately #racticable means of stimulating business and em#loyment u# to#ros#erity le els. (Photo7 arris % wing 1ollectionCLibrary of 1ongress)

!homas ;. Watson (sitting to itler s left), the President of 8nternational Business *achines 1or#. (also known as 8B*), meets with =a2i@ermany s dictator 0dolf itler in :. $homas J. Watson was a Class <ire+tor of the Fe#eral 6eser4e ank of 5ew ;ork from )33to )=> and a member of the 1ouncil on 4oreign "elations. !homas ;. Watson and his 8B* #ro ided 0dolf itler and the =a2is with #unch-card machines. !he =a2i @erman go ernment, military, and cor#orations used #unch-card machines to create and assign serial numbers for#risoners working as sla e laborers in the concentration cam#s.



+ppearing 1efore the <pe(ial <enate Committee on unemployment in &ashington! )%C% on 'anuary $! >=! FedBoard Chairman Marriner -((les de(lared that payment of the soldiers 1onus in > helped (reate pri(e distortion tre(overy out of 1alan(e and led toward the (urrent 1usiness re(ession% /*hoto: 7arris K -wing Colle(tion@ i1rary



Marriner -((les /left0! Chairman of the Federal Reserve Board! and -%+% .oldeneiser! )ire(tor of the BoardEs )ivisResear(h and <tatisti(s! putting their heads together to find an answer during the (ommittee meeting of the <pe(ial <Committee in &ashington! )%C% on Mar(h ">! > % /*hoto: 7arris K -wing Colle(tion@i1rary of Congress0





+n impe((a1ly dressed Marriner -((les! Chairman of the Federal Reserve Board! attends a party in &ashington! )%C)e(em1er ! > % /*hoto: 7arris K -wing Colle(tion@i1rary of Congress0





Marriner <% -((les! Chairman of the Federal Reserve Board! appears 1efore the <enate Banking and Curren(y <u1&ashington! )%C% on 'une >! $# and e3presses his opposition to a 1ill li1eraliAing provisions of the Federal 77e said that ena(tment of the a(t! sponsored 1y <enator &agner! would e3pand operations of the 7ome oan Bank <1eyond the s(ope of its original purposes% /*hoto: 7arris K -wing Colle(tion@i1rary of Congress0





.roup portrait of +meri(an delegation to international monetary (onferen(e to plan for postwar re(onstru(tion at Bret&oods! New 7ampshire /;%<%+%0 on 'uly "! $$% <eated /left to right0: <enator Ro1ert F% &agner! Congress<e(retary of the Treasury 7enry Morgenthau 'r% and <enator Charles &% To1ey8 <tanding /left to right0: 7enry )e3Fred ,inson! )ean +(heson! -dward -% Brown! Federal Reserve Chairman Marriner <% -((les and Congressman 'ess/Time ife photo 1y +lfred -isenstaedt0

http://images.google.com/hosted/life/l?imgurl=badebb8e254355be&q=Marriner+S.+Eccles&usg=__dH_TVD1uoJj4FG0fhpF6hcSHPYI=&prev=/images%3Fq%3DMarriner%2BS.%2BEccles%26um%3D1%26hl%3Den%26sa%3DN&um=1

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*edestrians walk down Nassau <treet past the Federal Reserve Bank of New York Building /left0 in $$ during &The New York <to(k -3(hange (an 1e glimpsed at the foot of the image%/+ndreas Feininger@Time K ife *i([email protected] 6mages0



Federal Reserve Chairman Thomas M(Ca1e leaves the &hite 7ouse after visiting with *resident 7arry <% Truman i$=% Thomas M(Ca1e was a mem1er of the Coun(il on Foreign Relations% /ife MagaAine photo 1y Thomas )% M(+v0

http://images.google.com/hosted/life/l?imgurl=75a960da5c6095fe&q=thomas+mccabe+federal+reserve&usg=__HgX_hf0ZT94go8m2sj73ZyDnPEM=&prev=/images%3Fq%3Dthomas%2Bmccabe%2Bfederal%2Breserve%26um%3D1%26hl%3Den&um=1

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William *c1hesney *artin ;r. ra ( > - :<)

President Lyndon B. ;ohnson meets with !reasury $ecretary enry 4owler (left, front), 4ederal "eser e 1hairman William *c1. *artin ;r.(left, rear), 1ouncil of conomic 0d isers 1hairman @ardner 0ckley, and ;ames Duesenberry. 4owler and *artin were members of the1ouncil on 4oreign "elations.

nder $ecretary of !reasury Paul Aolcker (") a##ears before the $enate Banking subcommittee on $e#tember <, / to testify against abill to regulate ma3imum interest rates in loans charged by federally su#er ised banks, which was introduced after the #rime rate rose to arecord 9.> #ercent. 0##earing with him are from left to right7 Preston *artin, 1hairman of 4ederal ome Loan Bank Board5 Eenneth "andall,1hairman of 4ederal De#osit 8nsurance 1or#.5 William *c1hesney *artin, 1hairman of the 4ederal "eser e5 and Aolcker.(BettmannC1F"B8$)



Aice President "ichard =i3on chats with 4ederal "eser e 1hairman William *c1. *artin ;r. (second from right) at a dinner in =ew &ork 1ity in>>. "udol#h $mutny stands on the far left, and *organ @renfell #artner Aiscount William arcourt stands on the far right. "ichard =i3on

and William *c1. *artin ;r. were members of the 1ouncil on 4oreign "elations.

Aice President ubert um#hrey, $ecretary of 1ommerce ;ohn !. 1onnor, 0ndrew Brimmer, and 4ederal "eser e 1hairman William*c1hesney *artin ;r. a##ear at the White ouse on *arch , //. Brimmer was sworn in as a @o ernor of the 4ederal "eser e Board thatday. 0ll four men are or were members of the 1ouncil on 4oreign "elations.(Photo7 &oichi ". Fkamoto, Lyndon B. ;ohnson Presidential Library)





*embers of the Board of @o ernors of the 4ederal "eser e $ystem #ose for a grou# #ortrait in Washington, D.1. on *ay 9,/:. 4ederal "eser e 1hairman William *c1hesney *artin ;r. a##ears in the foreground. Fther members, from left to right,are7 seated Q ;.L. "obertson, Aice 1hairman5 ;. Dewey Daane5 and @eorge W. *itchell5 standing Q $herman ;. *aisel, 0ndrew4. Brimmer, and William W. $herrill. (0P Photo)



President Lyndon B. ;ohnson watches 4ederal "eser e 1hairman William *c1hesney *artin ;r. administer the oath of office to 0ndrewBrimmer, the incoming member of the Board of @o ernors of the 4ederal "eser e $ystem, at the White ouse on *arch , //. !he womanis *rs. Brimmer, and the child is sther Brimmer. William *c1hesney *artin ;r. was a member of the 1ouncil on 4oreign "elations.(Photo7 "obert EnudsenCLyndon B. ;ohnson Library )

http://photolab.lbjlib.utexas.edu/detail.asp?id=18229





0rthur 4. Burns ra ( :<- :9)

"e#ublican Party #residential candidate "ichard =i3on (center) meets with 0rthur 4. Burns (6 nd right) and economics #rofessor *ilton4riedman (second from left) on Fctober , /9. '.$. President "ichard =i3on a##ointed 0rthur 4. Burns as the 1hairman of the 4ederal"eser e in :<.

Futgoing 4ederal "eser e chairman 0rthur 4. Burns (left), '.$. President ;immy 1arter (6 nd left), and incoming 4ederal "eser e chairman @.William *iller (6 nd right) #ose for a #ortrait. (0ssociated Press5 Photogra#her7 Barry !humma)



President @erald 4ord meets with international bankers at the White ouse in :> to discuss the Ofiscal crisis of =ew &ork 1ity. 4rom left toright7 L. William $eidman, ;.P. *organ 1hairman llmore 1. Patterson, 1iticor# 1hairman Walter Wriston, !reasury $ecretary William $imon,@erald 4ord, 1hase *anhattan Bank 1hairman and 1 F Da id "ockefeller, and 4ederal "eser e 1hairman 0rthur Burns. eryone in this#hoto e3ce#t for L. William $eidman is or was a member of the 1ouncil on 4oreign "elations. Da id "ockefeller was a director of the 4ederal"eser e Bank of =ew &ork at the time this #hoto was taken in :>.

President ;immy 1arter signs the Windfall Profits !a3 Bill in Washington, D.1. on 0#ril 6, 9< as $enators and "e#resentati es who hel#ed it#ass look on. 0lso #resent is !reasury $ecretary and former 4ederal "eser e 1hairman @. William *iller (far left). (Wally *c=ameeC1F"B8$)



/<our(e: !reenspan. The *an ehind *oney 1y 'ustin Martin0

*embers of the Board of @o ernors of the 4ederal "eser e $ystem #ose for a #ortrait in Washington, D.1. on *ay 6 , :<. @rou#ings areas follows7 4oreground7 1hairman 0rthur Burns5 background (left to right)7 ;.L. "obertson, ice chairman5 $herman ;. *aisel5 ;. Dewey Daane50ndrew 4. Brimmer5 @eorge *itchell5 and *itchell W. $herrill. (BettmannC1F"B8$)



0rthur 4. Burns (left), 1hairman of the 4ederal "eser e, meets with former !e3as @o ernor ;ohn 1onnally at a @eneral0ssembly of the 8nternational *onetary 4und (8*4) in Washington, D.1. on $e#tember 6:, : . President "ichard =i3ona##ointed ;ohn 1onnally as $ecretary of the !reasury the day after the meeting. (BettmannC1F"B8$)

Paul 0. Aolcker (left), the 'nder $ecretary of the !reasury for *onetary 0ffairs , $ecretary of the !reasury @eorge P. $hult2 (center),and 4ederal "eser e 1hairman 0rthur 4. Burns (right) attend the international monetary meeting at Paris 1hateau de la *uetteon *arch /, : , called in by the western worldIs wealthiest countries to sol e the monetary crisis. 0ll three men are (or were)members of the 1ouncil on 4oreign "elations. (BettmannC1F"B8$)



President @erald 4ord faces a formidable array of economic ad isers during a meeting in the 1abinet "oom of the White ouse on 0ugust 6:,:+. 0t the economic meeting are (left to right)7 L. William $eidman, chief #lanner for a economic summit conference held in $e#tember:+5 ousing $ecretary ;ames !. Lynn5 0lan @reens#an, chairman of the 1ouncil of conomic 0d isers5 !reasury $ecretary William $imon5

1ounselor Eenneth "ush5 Budget Director "oy 0sh5 0rthur Burns, 1hairman of the 4ederal "eser e $ystem5 and President 4ord.(BettmannC1F"B8$)

President @erald 4ord meets with his ad isers in a secret meeting in the 1abinet "oom on 0#ril 69, :>. 1lockwise from left to right7 4ederal"eser e Board 1hairman 0rthur Burns, !reasury $ecretary William $imon, Aice President =elson "ockefeller, F*B Director ;ames !. Lynn,Domestic 1ouncil Director ;ames 1annon, Domestic 1ouncil De#uty Director "ichard Dunham, De#uty 0ssistant Dick 1heney, PB DirectorBill $eidman, 1ommerce $ecretary "ogers 1.B. *orton, @erald 4ord, F*B 0ssociate Director 4rank Rarb, and 1 0 1hairman 0lan@reens#an. eryone e3ce#t for *orton, $eidman, and Dunham is or was a 14" member. (Photo7 @erald ". 4ord Library)



+ugust L! H : 2Ni3on <ho(k9

*embers of the Board of @o ernors of the 4ederal "eser e $ystem #ose for a #ortrait in Washington, D.1. on *ay 6 , :<. @rou#ings areas follows7 4oreground7 1hairman 0rthur Burns5 background (left to right)7 ;.L. "obertson, ice chairman5 $herman ;. *aisel5 ;. Dewey Daane50ndrew 4. Brimmer5 @eorge *itchell5 and *itchell W. $herrill. (BettmannC1F"B8$)

0rthur Burns (L), 1hairman of the 4ederal "eser e, meets with 4ormer !e3as @o ernor ;ohn 1onnally at a @eneral 0ssembly of the8nternational *onetary 4und (8*4) in Washington, D.1. on $e#tember 6:, : . President "ichard =i3on a##ointed ;ohn 1onnally as

$ecretary of the !reasury the day after the meeting. (BettmannC1F"B8$)



President "ichard =i3on meets with $ecretary of $tate William P. "ogers (left) and =ational $ecurity 0d isor enry Eissinger (right) aboard 0ir4orce Fne on ;uly 9, : . (BettmannC1F"B8$)

President "ichard =i3on began a series of budget meetings at the White ouse on ;uly 6 , : . 4rom left to right7 1as#er Weinberger,De#uty Director of the Fffice of *anagement and Budget5 Paul *c1racken, 1hairman of the 1ouncil of conomic 0d isors5 and !reasury$ecretary ;ohn B. 1onnally, "ichard =i3on, and =ational $ecurity 0d isor enry Eissinger. President "ichard =i3on and his financial ad isorsOclosed the gold window on 0ugust >, : by ending the con ersion between the '.$. Dollar (O4ederal "eser e =ote ) and gold.(BettmannC1F"B8$)



!rading on the floor of the 0merican $tock 3change in =ew &ork 1ity on 0ugust /, : was at a record #ace following President "ichard=i3onIs announcement on 0ugust >t, : of a new Oeconomic course for the nation to combat inflation. =i3on s included a <-day free2e onwages and #rices, ta3 benefits and what amounted to an unofficial de aluation of the dollar. (J BettmannC1F"B8$)

0n 0merican em#loyee re iews co#ies of the O4ederal "eser e =ote at the Bureau of ngra ing and Printing in Washington, D.1. on Fctober9, : . Fn $unday 0ugust >, : , '.$. President "ichard =i3on scra##ed the gold e3change standard, in effect cancelling the ++

Bretton Woods agreement that set u# the 8nternational *onetary 4und (8*4), leading to the introduction of a <S ta3 on im#orts and a free2eon #rices and 0merican salaries for three months. 0s a result, the #rinting of dollar notes accelerated at the Bureau of ngra ing and Printing(B P), em#loying <<< #eo#le. ach #late #asses a strict isual control test and any faulty dollar #lates are subse uently withdrawn and sentto the basement to be burned under the su#er ision of ins#ectors. (J ;P LaffontC$ygmaC1orbis)



President "ichard =i3on (third from right) meets with (left to right) retired '.$. 0rmy @eneral Lucius 1lay, !homas Dewey (former @o ernor of=ew &ork), Dean 0cheson (former '.$. $ecretary of $tate), ;ohn *c1loy (former 1hairman and 1 F of 1hase *anhattan Bank), and=ational $ecurity 0d isor enry Eissinger at the White ouse on December :, :<. 1lay, Dewey, 0cheson, *c1loy, and Eissinger weremembers of the 1ouncil on 4oreign "elations in :<. (BettmannC1F"B8$)

@eorge .W. Bush shares a light moment after he is sworn-in as the 'nited $tates "e#resentati e to the 'nited =ations at the White ouse inWashington, D.1. on 4ebruary 6/, : . 4rom left to right7 '.$. $u#reme 1ourt ;ustice Potter $tewart, Barbara Bush, @eorge .W. Bush, and.$. President "ichard *. =i3on. @eorge .W. Bush, Potter $tewart, and "ichard =i3on are (or were) members of the Bohemian @ro e in1alifornia. @eorge .W. Bush and Potter $tewart were members of $kull % Bones at &ale 'ni ersity. @eorge .W. Bush s father Prescott$heldon Bush was a #artner of Brown Brothers arriman % 1o., an international banking firm in =ew &ork 1ity, in : .(J "on $achsC1=PC1orbis)





Paul Aolcker ra ( : - 9:)

Aice President @eorge .W. Bush (1), a former director of the 1entral 8ntelligence 0gency, gi es a thumbs-u# sign while meeting with!reasury $ecretary Donald "egan (L) and 4ederal "eser e Board 1hairman Paul Aolcker at the White ouse on ;anuary , 9+ to ratifytheir agreement on a swee#ing #ro#osal to reorgani2e commercial bank regulating agencies. (BettmannC1F"B8$)

President "onald "eagan arri es at the De#artment of the !reasury in Washington, D.1. on ;anuary 6 , 9 for a luncheon with $ecretary ofthe !reasury Donald "egan (center), 4ederal "eser e 1hairman Paul Aolcker (right), and other economic ad isors. (BettmannC1F"B8$)



4ederal "eser e 1hairman Paul Aolcker (left) and 1ouncil on 4oreign "elations chairman Peter @. Peterson eat at the aroldPratt ouse. (Photo7 1ouncil on 4oreign "elations 0nnual "e#ort)

4ederal "eser e 1hairman Paul Aolcker (left), *argaret Fsmer-*cTuade (center), and former President ;immy 1arter ha e adinner at the arold Pratt ouse in c. 96. (Photo7 1ouncil on 4oreign "elations 0nnual "e#ort)



4ederal "eser e 1hairman Paul Aolcker, left, confers with ;ohn 0shcroft, the @o ernor of *issouri, before the o#ening general session of the$outhern @o ernors 0ssociation meeting in *iami, 4lorida on $e#tember , 9>. (BettmannC1F"B8$)

4inance ministers of the maKor industriali2ed nations meet in the 'nited $tates of 0merica to discuss the international economy on $e#tember66, 9>. 0ttending are from left to right7 4inance *inister @erhard $toltenberg of West @ermany, 4inance *inister Pierre Berego oy of4rance, '.$. !reasury $ecretary ;ames 0. Baker 888, '.$. 4ederal "eser e Bank 1hairman Paul Aolcker, 4inance *inister =igel Lawson of@reat Britain, and 4inance *inister =oboru !akeshita of ;a#an. Aolcker, $toltenberg, Berego oy, and Lawson ha e attended the Bilderberg*eetings in the #ast. (J BettmannC1F"B8$)



0lan @reens#an ra ( 9:-6<</)

President "onald "eagan a##ears with (left to right) 0lan @reens#an, 4ederal "eser e 1hairman Paul Aolcker, and $ecretary of the !reasury;ames 0. Baker 888 in the Press "oom at the White ouse on ;une 6, 9: as he announces the nomination of 0lan @reens#an as 1hairmanof the Board of @o ernors of the 4ederal "eser e Board. @reens#an, Aolcker, and Baker are members of the 1ouncil on 4oreign "elations.(Photo7 "onald "eagan Presidential Library)

4ederal "eser e 1hairman 0lan @reens#an is gi en his honorary knighthood from Tueen li2abeth 88 of the 'nited Eingdom of @reat Britain(left) at Balmoral castle in the $cottish ighlands on !hursday, $e#tember 6/, 6<<6 as 0lan @reens#an s wife 0ndrea *itchell, a Kournalist for=B1, stands at his side. $ir 0lan @reens#an and 0ndrea *itchell are members of the 1ouncil on 4oreign "elations5 $ir 0lan @reens#an and0ndrea *itchell attended the 6<<6 Bilderberg *eetings in 1hantilly, Airginia together in *ay-;une 6<<6. (0P PhotoC Da id 1heskin)





President "onald "eagan holds an economic briefing with !reasury $ecretary ;ames 0. Baker 888, 4ederal "eser e 1hairman 0lan@reens#an, 1ouncil of conomic 0d isers 1hairman Beryl $#rinkel, White ouse 1hief of $taff oward Baker, and Dan 1ri##en in the F alFffice on 4ebruary <, 99. (Photo7 "onald "eagan Presidential Library )

(0PCWide World Photos5 $ource7 Back From the Brink: The Greenspan Years by $te en E. Beckner)

http://www.reagan.utexas.edu/archives/photographs/staff.html




President "onald "eagan attends an economic meeting with 4ederal "eser e 1hairman 0lan @reens#an, White ouse 1hief of $taff owardBaker, and !reasury $ecretary ;ames 0. Baker 888 in the West $itting all on Fctober 6<, 9:, a day after OBlack *onday , when the stockmarkets crashed. 0lan @reens#an, oward Baker, and ;ames 0. Baker 888 are members of the 1ouncil on 4oreign "elations.(Photo7 "onald "eagan Presidential Library )

=B1 Kournalist 0ndrea *itchell watches Aice President Dick 1heney (right) administer the oath of office to her husband $ir 0lan@reens#an, the 1hairman of the 4ederal "eser e, in the home of former President @erald 4ord in Bea er 1reek, 1olorado on;une , 6<<+. (Photo by Da id BohrerCWhite ouse)







4ederal "eser e 1hairman 0lan @reens#an (left) shakes hands with '.$. President @eorge .W. Bush. eorge H.W. ush's gran#father(an# former -. . enator res+ott ush's father" amuel . ush was a Class <ire+tor of the Fe#eral 6eser4e ank of Cle4elan#from )*/ to )3>. (Photo7 Greenspan: The +an Behin +oney by ;ustin *artinC@eorge Bush Presidential Library)

$o iet 1ommissar *ikhail @orbache , President @eorge .W. Bush, and 4ederal "eser e 1hairman 0lan @reens#an a##ear in a recei ingline at a state dinner in Washington, D.1. on *ay , <. !his #hoto a##ears in the book The Age of Tur%u!ence: A ,entures in a New(or! by 0lan @reens#an. (Photo7 @eorge .W. Bush Presidential Library)



President Bill 1linton a##ears with 4ederal "eser e 1hairman 0lan @reens#an at the White ouse.

4ederal "eser e 1hairman 0lan @reens#an, right, shakes hands with $enator illary "odham 1linton (D-=&) #rior to testifyingbefore the $enate Budget 1ommittee on 1a#itol ill on ;anuary 6>, 6<< . (Photo by 0le3 WongC=ewsmakers)



.$. $ecretary of the !reasury Lawrence $ummers (left), '.$. President Bill 1linton (center), and 4ederal "eser e 1hairman 0lan @reens#anmeet at the White ouse on =o ember 6, after a new financial law was #assed by 1ongress. (J "on $achsC1=PC$ygmaC1orbis)

.$. !reasury $ecretary ;ohn $now (1), 4ederal "eser e 1hairman 0lan @reens#an (L), and $ecurities and 3change 1hairman WilliamDonaldson confer during at a meeting of the PresidentIs Working @rou# on 4inancial *arkets at the !reasury De#artment in Washington, D.1.on =o ember +, 6<< . (J '.$. !reasury De#artment andoutC"eutersC1orbis)




+lan .reenspan! the Federal Reserve Chairman! appears with Treasury <e(retary Ro1ert -% Ru1in! left! at a 7ouse hL% Both men were mem1ers of the Coun(il on Foreign Relations at the time this photo was taken%



President Bill 1linton meets with (from left to right) 4ederal "eser e 1hairman 0lan @reens#an, @ene $#erling, *artin =. Baily,!reasury $ecretary Lawrence $ummers, and ;ohn Podesta on ;anuary +, 6<<<.

President @eorge W. Bush (left) and Aice President Dick 1heney listen to 4ederal "eser e 1hairman 0lan @reens#an. Dick1heney and 0lan @reens#an are members of the 1ouncil on 4oreign "elations. ( Washington PostCWhite ouseC0P Photo )

http://blog.washingtonpost.com/cheney/chapters/a_strong_push_from_back_stage/comments.html

http://blog.washingtonpost.com/cheney/chapters/a_strong_push_from_back_stage/comments.html



=ational conomic 1ouncil Director $te#hen 4riedman (right) watches President @eorge W. Bush talk with 4ederal "eser eBoard 1hairman 0lan @reens#an (left) in the F al Fffice on *ay 9, 6<<+.

!reasury $ecretary ;ohn $now, $en. Lindsey @raham ("-$1), 4ederal "eser e 1hairman 0lan @reens#an, and $en. 1harles$chumer (D-=&) discuss #olicy on "ed 1hina trade during a meeting on 1a#itol ill on ;une <, 6<<>.(Photo by 0le3 WongC@etty 8mages)



4ederal "eser e Board 1hairman 0lan @reens#an discusses his #ending testimony with '.$. $enator illary "odham 1linton (D-=ew &ork)and '.$. $enator Eit Bond ("-*issouri) before the '.$. $enate Budget 1ommittee meeting in Washington, D.1. on ;anuary 6>, 6<< .(J "on $achsC1=PC1orbis)

0lan @reens#an, 1hairman and Board of @o ernors of 4ederal "eser e $ystem, chats with 1hairman Paul $arbanes (D-*aryland), center,and '$ $enator Bill =elson (D-4lorida) following @reens#anIs testimony before the '$ $enate Banking, ousing, 'rban 0ffairs 1ommittee inWashington, D.1. on ;uly /, 6<<6. !he hearing focused on the 4ederal "eser e BoardIs monetary #olicy re#ort.(J "on $achsC1=PC1orbis $ygma)



4ederal "eser e 1hairman 0lan @reens#an talks with $en. 1harles $chumer (D-=&) before a $enate Banking, ousing andrban 0ffairs 1ommittee hearing on 1a#itol ill on ;uly 6 , 6<<>. 0lan @reens#an is a member of the 1ouncil on 4oreign"elations (14")5 1harles $chumer is a former 14" member. (Photo by *ark WilsonC@etty 8mages)

!reasury $ecretary "obert "ubin (left) and 4ederal "eser e 1hairman 0lan @reens#an arri e for hearings on 1a#itol ill on*ay 6 , 9. (;amal 0. WilsonC04PC@etty 8mages)




4ederal "eser e Board 1hairman 0lan @reens#an s#eaks during a luncheon meeting held by the 1ouncil on 4oreign "elations

in Washington, D.1. on =o ember , 6<<6. (Photo by 0le3 WongC@etty 8mages)



4ederal "eser e 1hairman 0lan @reens#an talks to !reasury $ecretary =icholas Brady in <.

4ederal "eser e 1hairman 0lan @reens#an listens to !reasury $ecretary Lloyd Bentsen.






4ederal "eser e 1hairman 0lan @reens#an Kokes with 1ongressman ;im Leach (left) and !reasury $ecretary "obert "ubin(center) in . 0ll three men are members of the 1ouncil on 4oreign "elations.

/<our(e: ack From the rink. The !reenspan Years 1y <teven % Be(kner0



4ederal "eser e 1hairman 0lan @reens#an (center) and *er yn Eing (right), @o ernor of !he Bank of ngland, #ose with1hancellor of the 3che uer @ordon Brown after collecting their honorary doctorate degrees in the #resence of !he Duke of

dinburgh on 4ebruary :, 6<<> in dinburgh, $cotland. @reens#an, Eing, and Brown ha e attended the Bilderberg *eetings inthe #ast. (Photo by 1hristo#her 4urlongC@etty 8mages)

4ederal "eser e Board 1hairman 0lan @reens#an testifies as !reasury $ecretary Lawrence . $ummers looks on before theBanking, ousing and 'rban 0ffairs 1ommittee in Washington D.1. on ;une 6 , 6<<<. (Photo by *ichael $mithC=ewsmakers)



4ederal "eser e 1hairman 0lan @reens#an (right) recei es an honorary Doctor of 1ommercial $cience degree from =ew &orkni ersity President ;ohn $e3ton in =ew &ork 1ity on December +, 6<<>. @reens#an and $e3ton are members of the 1ouncilon 4oreign "elations. (Photo by *ario !amaC@etty 8mages)

$ir 0lan @reens#an (left), the 1hairman of the 4ederal "eser e, shakes hands with @ordon Brown, 1hancellor of the 3che uerof the 'nited Eingdom, after recei ing honorary degrees from =ew &ork 'ni ersity in =ew &ork 1ity on December +, 6<<>.(Photo by *ario !amaC@etty 8mages)



4ederal "eser e 1hairman 0lan @reens#an talks to uro#ean 1entral Bank President ;ean-1laude !richet at the beginning ofthe @6< finance ministers and central bank go ernorsI meeting in Berlin, @ermany on =o ember , 6<<+. @reens#an and!richet attended the 6<<6 Bilderberg *eetings in 1hantilly, Airginia, '.$.0. together in 6<<6.(Photo by $ean @allu#C@etty 8mages)

4rom left to right7 4ederal "eser e 1hairman 0lan @reens#an, '.$. !reasury $ecretary ;ohn $now, (unidentified), uro#eannion 1entral Bank @o ernor ;ean-1laude !richet, 8nternational *onetary 4und *anaging Director "odrigo de "ato, and WorldBank President ;ames D. Wolfensohn a##ear at the beginning of the @-: ministerial meeting on 0#ril /, 6<<> in Washington,D.1. @reens#an, !richet, "odrigo de "ato, and Wolfensohn ha e attended the Bilderberg *eetings in the #ast. (0P Photo)



!reasury $ecretary ;ames 0. Baker 888 (left) watches outgoing 4ederal "eser e 1hairman Paul Aolcker shake hands with incoming 4ederal"eser e 1hairman 0lan @reens#an (right) in ;uly 9:.

"oger 4erguson (left), Aice 1hairman of the 4ederal "eser e, s#eaks with 4ederal "eser e 1hairman 0lan @reens#an during a meeting of the8nternational *onetary and 4inancial 1ommittee Board of @o ernors at the 8nternational *onetary 4und Building in Washington, D.1. onFctober 6, 6<<+. (Photo by Brendan $mialowskiC@etty 8mages)



Left #hoto7 4ederal "eser e 1hairman 0lan @reens#an and 4ederal "eser e Aice 1hairman "oger W. 4erguson #re#are for ameeting.

"ight #hoto7 4ederal "eser e 1hairman 0lan @reens#an a##ears with President @eorge W. Bush.



4rench 4inance *inister =icolas $arko2y (right) meets with '$ 1hairman of the 4ederal "eser e Board 0lan @reens#an (L) at the8nternational *onetary 4und building in Washington, D.1. on 0#ril 6+, 6<<+ !he leaders met during the 8*4 and World Bank @rou# 6<<+$#ring *eetings. (=icholas "obertsC04PC@etty 8mages)

4ederal "eser e Board 1hairman 0lan @reens#an s#eaks to the #ress at the White ouse in Washington, D.1. on ;uly <, after beingrea##ointed by President Bush (") to a second four-year term. (J BettmannC1F"B8$)




1ongressman Dick @e#hardt and William ;. *cDonough, the President of the 4ederal "eser e Bank of =ew &ork, are seenlaughing during a 1ouncil on 4oreign "elations meeting on *arch , 9. (Photo7 1ouncil on 4oreign "elations 0nnual "e#ort)



($ource7 The Age of Tur%u!ence: A ,entures in a New (or! by 0lan @reens#an)

;anet L. &ellen, the President of 4ederal "eser e Bank of $an 4rancisco, and *ichael . *oskow, the President of 4ederal"eser e Bank of 1hicago, a##ear at the arold Pratt ouse in =ew &ork 1ity.(Photo7 6<</ 1ouncil on 4oreign "elations 0nnual "e#ort)



!he 4ederal "eser e Board in /. 4ront row7 0lice "i lin, 0lan @reens#an, ;anet &ellen. Back row7 Laurence . *eyer, $usan *. Philli#s,dward O*ike Eelley ;r., and Lawrence B. Lindsay. "i lin, @reens#an, and &ellen are members of the 1ouncil on 4oreign "elations.

Left #hoto7 4ederal "eser e 1hairman 0lan @reens#an (left) and World Bank President ;ames Wolfensohn a##ear at a #arty together in ;une6<<+. (Photo7 htt#7CCwww.washingtonlife.comCissuesC6<<+-</CbloombergC)

"ight #hoto7 Washington Post Kournalist ;im oagland and 4ederal "eser e 1hairman 0lan @reens#an a##ear at a #arty in $e#tember 6<<>.(0##eared in7 ;ane $tanton itchcock Book Partys on $e#tember 6<<>)htt#7CCwww.washingtonlife.comCdirectoriesC#hotosC?letterU;%nameU;im- oagland

http://www.washingtonlife.com/issues/2004-06/bloomberg/

http://www.washingtonlife.com/directories/photos/?letter=J&name=Jim-Hoagland

http://www.washingtonlife.com/issues/2004-06/bloomberg/

http://www.washingtonlife.com/directories/photos/?letter=J&name=Jim-Hoagland




4ederal "eser e 1hairman 0lan @reens#an (right) shakes hands with 1ommunist 1hina s President ;iang Remin as '.$.President Bill 1linton is seen engaging in a con ersation with ;iang during a White ouse state dinner in Washington, D.1. inFctober :. (Photo7 !he =ew &ork !imesC"euters )

http://partners.nytimes.com/library/world/103097us-china.5.jpg.html





4ederal "eser e 1hairman 0lan @reens#an listens to "ichard D. Parsons (left) as he s#eaks to 1ouncil on 4oreign "elationsmembers at the arold Pratt ouse on December /, <. (Photo7 1ouncil on 4oreign "elations 0nnual "e#ort)

;essica !. *athews (left), 4ederal "eser e 1hairman 0lan @reens#an (center), and 4ranklin D. "aines a##ear at a 1ouncil on4oreign "elations meeting on $e#tember :, /. (Photo7 1ouncil on 4oreign "elations 0nnual "e#ort)



President of 4ederal "eser e Bank of =ew &ork . @erald 1orrigan (left), 0lan @reens#an (center), and 8sidor "abi meet#ri ately at a 1ouncil on 4oreign "elations meeting. (1ouncil on 4oreign "elations 0nnual "e#ort)

*artin 4eldstein (left) and 0lan @reens#an walk u# the stairs at the arold Pratt ouse.(Photo7 1ouncil on 4oreign "elations 0nnual "e#ort)



Left #hoto7 0lan @reens#an and "obert A. "oosa sign their names in a ledger. "obert A. "oosa was a #artner of BrownBrothers arriman % 1om#any, a banking firm in =ew &ork 1ity. (Photo7 1ouncil on 4oreign "elations 0nnual "e#ort)

"ight #hoto7 Da id "ockefeller listens to enry 1. Wallich, *ember of the @o ernor of the 4ederal "eser e $ystem, during ameeting held at the arold Pratt ouse. (Photo7 1ouncil on 4oreign "elations 0nnual "e#ort)

elene D. @ayle, President of the 4ederal "eser e Bank of 1hicago *ichael *oskow (center), and =orthwestern 'ni ersityPresident enry $. Bienen a##ear at a 1ouncil on 4oreign "elations meeting. 0ll three indi iduals are members of the 1ouncilon 4oreign "elations. (Photo7 1ouncil on 4oreign "elations 0nnual "e#ort)



William ;. *cDonough (left) was the President of the 4ederal "eser e Bank of =ew &ork at the time this #hoto was taken.0dmiral Aern 1lark was the 1hief of =a al F#erations at the time this #hoto was taken.(Photo7 1ouncil on 4oreign "elations 0nnual "e#ort)

Left #hoto7 . @erald 1orrigan (left), the President of the 4ederal "eser e Bank of =ew &ork, and 0ir 4orce 1hief of $taff @en.Larry D. Welch smile for the camera at the arold Pratt ouse in =ew &ork 1ity on December :, 9 .(Photo7 1ouncil on 4oreign "elations 0nnual "e#ort)

"ight #hoto7 1itibank 1hairman Walter Wriston (left) and 0lan @reens#an are seen laughing during a 1ouncil on 4oreign"elations meeting. (Photo7 1ouncil on 4oreign "elations 0nnual "e#ort)



4ederal "eser e 1hairman 0lan @reens#an (left), 0ndrea *itchell (center), and !reasury $ecretary "obert "ubin laugh together in /.

Left #hoto7 Paula Dobriansky talks to 4ederal "eser e 1hairman 0lan @reens#an at a meeting on ;anuary , ."ight #hoto7 4ederal "eser e 1hairman 0lan @reens#an listens to 0merican 8nternational @rou# 1hairman and 1ouncil on 4oreign "elationsAice 1hairman *aurice @reenberg at a 1ouncil on 4oreign "elations meeting in ;uly 6<<<.(Both #hotos from the 1ouncil on 4oreign "elations 0nnual "e#ort)





@erman 1hancellor 0ngela *erkel (1) with 4ederal "eser e 1hairman 0lan @reens#an (left) and former '.$. $ecretary of $tate 1olin Powell(right) during a rece#tion at the @erman mbassy in Washington, D.1. on ;anuary 6, 6<</. (J @'8DF B "@*0== CPFFLC P0C1orbis)

;a#anese Prime *inister ;unichiro Eoi2umi (") shakes hands with '.$. 4ederal "eser e 1hairman 0lan @reens#an before their talks at the#rime ministerIs official residence in !okyo, ;a#an on Fctober :, 6<<>. Eoi2umi and @reens#an discussed macroeconomic and financialissues on *onday, a senior finance ministry official said. (J Ea2uhiro =ogiCPoolC"eutersC1orbis)



.$. 4ederal "eser e 1hairman 0lan @reens#an (L) meets with Bank of ;a#an (BF;) @o ernor !oshihiko 4ukui at BF; head uarters in!okyo, ;a#an on Fctober :, 6<<>. @reens#an was in !okyo for a two-day isit. (J 8$$ 8 E0!FC"eutersC1orbis)

.$. 4ederal "eser e 1hairman 0lan @reens#an (L) s#eaks with Peo#leIs Bank of 1hina @o ernor Rhou Viaochuan during a @-6< financeministers and central bank go ernors meeting in Vianghe, 1ommunist 1hina in ebei #ro ince, about << kms (/6 miles) east of BeiKing onFctober >, 6<<>. 1ommunist 1hina s President u ;intao, under #ressure from Washington to let the yuan rise faster, said on $aturdayduring the o#ening ceremony of the meeting that maKor countries had an obligation to kee# their currencies reasonably steady for the sake ofthe world economy. (J 0lfred 1heng ;inC"eutersC1orbis)



!reasury $ecretary "obert "ubin (left), 4ederal "eser e 1hairman 0lan @reens#an (center), and 1ommunist 1hina s Premier Rhu "ongKi

#ose for #ress #hotogra#hers at Blair ouse in Washington, D.1. on 0#ril , . (Photo7 0le3 WongC@etty 8mages)

4ederal "eser e Board 1hairman 0lan @reens#an (left) shakes hands with "ed 1hina s 1ommissar u ;intao during a meeting with leadersof the :th @-6< 4inance *inisters and 1entral Bank @o ernors inside the @reat all of the Peo#le in BeiKing, 1ommunist 1hina on Fctober >,6<<>. (Photo by ;ason Lee-PoolC@etty 8mages)



!his #hoto a##ears in the book The Age of Tur%u!ence: A ,entures in a New (or! by 0lan @reens#an.

;iang Remin (left), the 1ommissar of 1ommunist 1hina, entertains Aice 1hairman of the 4ederal "eser e 0lice "i lin (wearing ared dress) and !reasury $ecretary "obert "ubin (right) at a tem#le in BeiKing on $e#tember 6/, :. Both 0lice "i lin and"obert "ubin were members of the 1ouncil on 4oreign "elations at the time this #hoto was taken on $e#tember 6/, :.(Photo by *ike 4iala)



4ormer 1hairman of 1hase *anhattan Bank Da id "ockefeller (left), former !reasury $ecretary "obert "ubin (center), andPresident of 4ederal "eser e Bank of =ew &ork William ;. *cDonough meet #ri ately at the arold Pratt ouse. !his #hotoa##ears on the back co er of the 6<<< 1ouncil on 4oreign "elations 0nnual "e#ort.

4ederal "eser e 1hairman 0lan @reens#an has a meeting with 1ouncil on 4oreign "elations 1hairman Peter @. Peterson.(Photo7 1ouncil on 4oreign "elations 0nnual "e#ort)



World Bank President ;ames Wolfensohn (left) greets 4ederal "eser e 1hairman 0lan @reens#an before their meeting at theWorld Bank in Washington D.1 on 0#ril 6 , . (;oyce =altchayanC04PC@etty 8mages)

4ederal "eser e Board 1hairman 0lan @reens#an (left), 4ederal "eser e Aice 1hairman 0lice "i lin (center), and World BankPresident ;ames Wolfensohn talk together before the start of 8nternational *onetary 4und (8*4) 8nterim 1ommittee meetings atthe 8*4 in Washington, D.1. on 0#ril 69, . (*ario !amaC04PC@etty 8mages)



4ederal "eser e 1hairman 0lan @reens#an leans o er to chat with '.$. Labor $ecretary laine 1hao before he addressed the =ational$ummit on "etirement $a ings at a Washington D.1. hotel on 4ebruary 69, 6<<6. President @eorge W. Bush addressed the summit following@reens#an. (" '! "$CEe in Lamar ue)

!reasury $ecretary ;ohn $now (L) and 1hairman of the 4ederal "eser e 0lan @reens#an ha e a laugh during the un eiling of the new G6<bills at the '.$. Bureau of ngra ing and Printing in Washington, D.1. on *ay , 6<< . !he new bill, to be issued this autumn, has enhancedsecurity features and subtle background colors as #art of an ongoing effort to stay ahead of the counterfeiting of '.$. currency.(" '! "$CEe in Lamar ue)



4ederal "eser e 1hairman 0lan @reens#an (left) and ;ean-1laude !richet, President of the uro#ean 1entral Bank ( 1B),attend the +th 4rankfurt uro#ean Banking 1ongress ( B1) in 4rankfurt, @ermany on =o ember , 6<<+.(Photo by "al#h FrlowskiC@etty 8mages)

4ederal "eser e 1hairman 0lan @reens#an (center) meets with uro#ean 1entral Bank President ;ean-1laude !richet (right)and Bank of ngland @o ernor *er yn Eing at the beginning of the @6< finance ministers and central bank go ernorsI meetingin Berlin on =o ember , 6<<+. 0ll three men ha e attended the Bilderberg *eetings at least once.(Photo by $ean @allu#C@etty 8mages)



1hairman of the 4ederal "eser e 0lan @reens#an (L) and @reat BritainIs Duke of dinburgh stand outside the *c wan all in dinburgh,$cotland, @reat Britain after attending an award ceremony on 4ebruary :, 6<<>. @reens#an recei ed a onorary Degree from the 'ni ersity of

dinburgh. (J ; 44 ; *8!1 LLC"eutersC1orbis)

Lawrence $ummers (far left) watches 4ederal "eser e 1hairman 0lan @reens#an shake hands with $ecretary of the !reasury "obert "ubin

at a conference held in Washington, D.1. in $e#tember 9. (J *ark PetersonC1F"B8$)



.$. President @eorge W. Bush (") awards his Presidential *edal of 4reedom to former 1hairman of the 4ederal "eser e 0lan @reens#an ata ceremony in the ast "oom of the White ouse in Washington, D.1. on =o ember , 6<<>. Bush #resented the highest ci il awardrecogni2ing e3ce#tional meritorious ser ice to + honorees from the s#ort, entertainment and #olitical world at the ceremony.(J ;0$F= " DC"eutersC1orbis)

4ederal "eser e 1hairman 0lan @reens#an (L) and World Bank President Paul Wolfowit2 attend a @: ministers working lunch at the !reasury

De#artment in Washington, D.1. on $e#tember 6 , 6<<>. (J &'"8 @"8P0$C"eutersC1orbis)



$ecretary of Defense Donald . "umsfeld (right) congratulates 4ederal "eser e 1hairman 0lan @reens#an (left) after awardinghim the De#artment of Defense *edal for Distinguished Public $er ice at the Pentagon in 0rlington, Airginia on ;anuary 6 ,6<</. (Photo7 '.$. De#artment of DefenseCPetty Ffficer st 1lass 1had ;. *c=eeley, '.$. =a y)



Ben Bernanke ra (6<</-6< +)

President Barack Fbama meets with !reasury $ecretary !imothy @eithner (left) and 1hairman of the 4ederal "eser e Ben Bernanke (right) inthe "oose elt "oom of the White ouse in Washington, D.1. on ;une :, 6<< . ( "euters )

.$. President Barack Fbama shakes hands with 4ederal "eser e 1hairman Ben Bernanke (left) after nominating Bernanke for a second termin Fak Bluffs, *assachusetts on the island of *arthaIs Aineyard on 0ugust 6>, 6<< . ("euters)

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President Barack Fbama (center) s#eaks during an economic daily meeting in the 1abinet "oom of the White ouse in Washington, D.1. on*arch 6 , 6<< . L-" with the President are7 Larry $ummers, head of the White ouse conomic 1ouncil, 1ouncil of conomic 0d isers 1hief1hristina "omer, !reasury $ecretary !imothy @eihtner, Fbama, 4ederal "eser e 1hairman Ben Bernanke and 4D81 1hairman $heila 1. Bair.(@etty 8mages)

Ffficials listen as '.$. President Barack Fbama s#eaks at the White ouse in Washington, D.1. on ;une :, 6<< . 4rom left to right71ongressman Barney 4rank (D-*0), $enator Dick Durbin (D-8L), $enator 1hris Dodd (D-1!), Director of the Fffice of *anagement andBudget Peter Frs2ag, !reasury $ecretary !im @eithner, Director of the =ational conomic 1ouncil Lawrence $ummers and 4ederal "eser eBoard 1hairman Ben Bernanke. Barney 4rank, 1hris Dodd, Peter Frs2ag, !im @eithner, and Lawrence $ummers are (or were) members ofthe 1ouncil on 4oreign "elations. ("euters)



Lawrence $ummers (left), Director of =ational conomic 1ouncil, s#eaks with Ben Bernanke, 1hairman of the Board of@o ernors of the 4ederal "eser e, before President Barack Fbama s#eaks on the economy and com#rehensi e #lan forfinancial regulations in the ast "oom at the White ouse in Washington, D.1., on ;une :, 6<< . Lawrence $ummers and BenBernanke attended the Bilderberg *eetings in 1hantilly, Airginia in ;une 6<<9. (@etty 8mages)



4ederal "eser e Board 1hairman Ben $. Bernanke (left) shakes hands with 4ederal "eser e Board @o ernor Daniel E. !arullo, as his wifeLouisa B. !arullo looks on during the swearing-in ceremony in Washington, D.1. on ;anuary 69, 6<< . !arullo on Wednesday took the oath ofoffice as a member of the Board of @o ernors of the 4ederal "eser e $ystem to fill an une3#ired term ending ;anuary , 6<66. ( "euters )

President-elect Barack Fbama shakes hands with Daniel !arullo after introducing him as his selection to the 4ederal "eser e Board of@o ernors during a #ress conference at the Drake otel in 1hicago, 8llinois on December 9, 6<<9. Daniel !arullo is a member of the 1ouncilon 4oreign "elations. ( @etty 8mages )

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$ President @eorge W. Bush (6nd left) looks at the 1hairman of the President s Working @rou# on 4inancial *arkets, !reasury$ecretary enry Paulson (6nd right), as he s#eaks following a meeting with the @rou# in the "oose elt "oom of the White

ouse in Washington, D.1. on ;anuary +, 6<<9. Looking on from left are Aice President Dick 1heney and 4ederal "eser e1hairman Ben Bernanke. (04PC@etty 8mages)

.$. !reasury $ecretary enry Paulson (left), 4ederal "eser e 1hairman Ben Bernanke (center) and President and 1 F of the 4ederal"eser e Bank of =ew &ork !imothy 4. @eithner listen as 4D81 1hairman $heila Bair (not #ictured) s#eaks at the !reasury De#artment 1ash"oom in Washington, D.1. on Fctober +, 6<<9. Paulson announced the !reasury De#artmentIs #lan to take e uity stakes in #otentiallythousands of banks totaling about G6>< billion. 0ll three men attended the 6<<9 Bilderberg *eetings in 1hantilly, Airginia in ;une 6<<9.("euters )

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4ederal "eser e 1hairman Ben Bernanke (right) s#eaks with committee chairman '.$. 1ongressman Barney 4rank before gi ing testimony tothe ouse 4inancial 1ommittee on 1a#itol ill in Washington, D.1. on ;uly 6 , 6<< . (@etty 8mages)

4ederal "eser e 1hairman Ben Bernanke (center) s#eaks to the $enate Banking, ousing and 'rban 0ffairs 1ommittee 1hairman $en.1hristo#her Dodd (left) and "anking *ember $en. "ichard $helby as he arri es to testify before the committee on 1a#itol ill in Washington,D.1. on ;uly 66, 6<< . ("euters)



President @eorge W. Bush (left) looks on as 4ederal "eser e Aice 1hairman "oger W. 4erguson, ;r. (center) administers the oath of office,during the swearing-in ceremony for Ben Bernanke (right) as the new 1hairman of the 4ederal "eser e, while BernankeIs wife, 0nnaBernanke, holds a bible at the 4ederal "eser e in Washington, D.1. on 4ebruary /, 6<</. (Photo by ;ay L. 1lendenin-PoolC@etty 8mages)

President @eorge W. Bush (left) looks on as 4ederal "eser e Aice 1hairman "oger W. 4erguson, ;r., (6nd left) administers the oath of office,during the swearing-in ceremony for Ben Bernanke, (6nd right) as the new 1hairman of the 4ederal "eser e Bank , while BernankeIs wife,0nna holds a bible, at the 4ederal "eser e Bank in Washington, D.1. on 4ebruary /, 6<</. 4ormer 1hairman of 4ederal "eser e Board 0lan@reens#an (right) looks on during the ceremony. (Photo by ;ay L. 1lendenin-PoolC@etty 8mages)



President @eorge W. Bush nominates Ben Bernanke (right) to succeed 0lan @reens#an (left) as 4ederal "eser e 1hairman onFctober 6+, 6<<>. (Photo by *ark WilsonC@etty 8mages)

.$. President @eorge W. Bush (1), flanked by '.$. !reasury $ecretary enry Paulson (right) and 4ederal "eser e 1hairman Ben Bernanke(left) and also followed by $ 1 1hairman 1hristo#her 1o3, arri e for a statement in the "ose @arden at the White ouse for anannouncement on a federal go ernment #lan to try and shore u# failing financial markets on $e#tember , 6<<9. !he #lan would attem#t tostabili2e money market mutual funds, absorb bad debt held by mortgage com#anies, and ban short selling of financial com#any stocks.

(@etty 8mages )

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.$. President @eorge W. Bush (6nd left), flanked by (left to right) 4ederal "eser e 1hairman Ben Bernanke, '.$. !reasury$ecretary enry Paulson and $ 1 1hairman 1hristo#her 1o3, announces a #lan by the federal go ernment to try and shore u#failing financial markets in Washington, D.1. on $e#tember , 6<<9. !he #lan would attem#t to stabili2e money market mutualfunds, absorb bad debt held by mortgage com#anies, and ban short selling of financial com#any stocks. ( @etty 8mages )

President @eorge W. Bush s#eaks about the economy in the "ose @arden of the White ouse in Washington, D.1. on$e#tember , 6<<9. 4rom left to right are7 1hairman of the 4ederal "eser e Ben Bernanke, Bush, '.$. $ecretary of the!reasury enry Paulson, and $ 1 1hairman 1hristo#her 1o3. ( "euters )

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4ederal "eser e 1hairman Ben Bernanke (center) s#eaks ne3t to !reasury $ecretary enry Paulson (left) and ouse $#eaker=ancy Pelosi after their meeting with other congressional leaders in the '.$. 1a#itol in Washington, D.1. on $e#tember 9,6<<9. ( "euters )

4ederal "eser e 1hairman Ben Bernanke ( rd left) and !reasury $ecretary enry Paulson (+th left) attend a closed meetingwith '.$. ouse $#eaker =ancy Pelosi (Democrat-1alifornia) ( rd right), '.$. 1ongressman "ahm manuel (left, Democrat-8llinois), '.$. $enator 1hristo#her Dodd (/ th left), and other congressional leaders in the '.$. 1a#itol in Washington, D.1. on$e#tember 9, 6<<9. ( "euters )

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!reasury $ecretary enry Paulson (left) talks to 4ederal "eser e Board 1hairman Ben Bernanke before testifying with$ecurities and 3change 1ommission 1hairman 1hristo#her 1o3 (right) at the $enate Banking, ousing and 'rban 0ffairs1ommittee on 1a#itol ill in Washington, D.1. on ;uly >, 6<<9. 8n light of recent bank failures and the housing crisis, thefinancial leaders testified about the rescue of 4annie *ae and 4reddie *ac, the nationIs largest mortgage buyers, and #ro#osedregulatory res#onses. ( @etty 8mages )

.$. !reasury $ecretary enry Paulson (left) rubs his eyes as he and 4ederal "eser e Board 1hairman Ben Bernanke (right)testify at a hearing of the ouse 4inancial $er ices 1ommittee on 1a#itol ill in Washington, D.1. on ;uly <, 6<<9. enryPaulson and Ben Bernanke attended the 6<<9 Bilderberg *eetings conference held in 1hantilly, Airginia in ;une 6<<9. ( "eute

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!imothy @eithner (left), President of the 4ederal "eser e Bank of =ew &ork, and 4ederal "eser e 1hairman Ben Bernanke(right) use na#kins during lunch at the conomic 1lub of =ew &ork in =ew &ork 1ity on Fctober >, 6<<9.(0ssociated PressC*ark Lennihan )

Left #hoto7 !his #hoto, #ro ided by the 4ederal "eser e, shows Ben Bernanke, right, sworn in as the +th 1hairman of the

4ederal "eser e Board by Aice 1hairman "oger 4erguson ;r. (Britt Leckman C 4ederal "eser e $ystem ia 0P)"ight #hoto7 ;ohn Li#sky (left), the 1hief conomist of ;P *organ 1hase, listen to ;anet &ellen, the President of the 4ederal"eser e Bank of $an 4rancisco. ;ohn Li#sky and ;anet &ellen are members of the 1ouncil on 4oreign "elations.

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4ederal "eser e 1hairman Ben Bernanke (left), !im @eithner (center), the President of the 4ederal "eser e Bank of =ew &ork,and 4ederal "eser e Aice 1hairman Donald Eohn take a walk for a #hoto o##ortunity during the 0nnual conomic $ym#osiumin ;ackson ole on Wyoming on 0ugust 66, 6<<9. ( "euters )

=ew &ork 4ederal "eser e President !im @eithner (left), 4ederal "eser e Aice 1hairman Donald Eohn (center), and 4ederal"eser e 1hairman Ben Bernanke take a walk during the 0nnual conomic $ym#osium in ;ackson ole, Wyoming on 0ugust66, 6<<9. @eithner and Bernanke attended the 6<<9 Bilderberg *eetings conference held in 1hantilly, Airginia nearWashington, D.1. from ;une >-9, 6<<9. ( "euters )

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$ecurities and 3change 1ommission 1hairman 1hristo#her 1o3 (left) and !imothy @eithner (right), the President of the 4ederal "eser eBank of =ew &ork, listen during a hearing before the ouse 4inancial $er ices 1ommittee on 1a#itol ill in Washington, D.1. on ;uly 6+,6<<9. !he hearing was focused on H4inancial *arket "egulatory "estructuring.H ( @etty 8mages )

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0lan @reens#an ("), former 1hairman of the 4ederal "eser e, shakes hands with current 4ederal "eser e 1hairman BenBernanke at a rece#tion to celebrate the 6<th anni ersary of !he 8nternational conomy maga2ine at the ay-0dams otel inWashington, D.1. on Fctober 9, 6<<:. ;ean-1laude !richet, President of the uro#ean 1entral Bank, was honored as 6<<:#olicymaker of the year. (@etty 8mages)

President of the uro#ean 1entral Bank ;ean-1laude !richet (center) stands with 4ederal "eser e 1hairman Ben Bernanke(right) and former 4ederal "eser e 1hairman 0lan @reens#an (left) during a #arty in !richetIs honor at the ay 0dams otel inWashington, D.1. on Fctober 9, 6<<:. (!im $loanC04PC@etty 8mages)



uro#ean 1entral Bank 1hairman ;ean-1laude !richet (left), former 4ederal "eser e 1hairman Paul 0. Aolcker (center), and4ederal "eser e 1hairman Ben Bernanke attend the 8nternational Banking $eminar on *onday, Fctober 66, 6<<:.($ource7 @rou# of !hirty )

8nternational bankers #artici#ate in the 8nternational Banking $eminar meeting on *onday, Fctober 66, 6<<:. 4ederal "eser e1hairman Ben Bernanke is seated on the far right. (Photo7 @rou# of !hirty )

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!imothy @eithner, President of the =ew &ork 4ederal "eser e Bank, s#eaks at the 1ouncil on 4oreign "elations in =ew &ork1ity on ;anuary , 6<<:. (Photogra#her7 Daniel 0ckerCBloomberg =ews)

!imothy 4. @eithner (left) was the President of the 4ederal "eser e Bank of =ew &ork at the time this #hoto was taken. .@erald 1orrigan is a former President of the 4ederal "eser e Bank of =ew &ork. !his #hoto was #ublished in the 6<<: 1ouncilon 4oreign "elations 0nnual "e#ort.



4ederal "eser e 1hairman Ben Bernanke (left) recei es the 1olumbia Business $chool Distinguished Leader in @o ernmentaward at the Waldorf-0storia in =ew &ork 1ity on *ay >, 6<<9. ( "euters )

Prime *inister of @reat Britain @ordon Brown meets with Ben Bernanke, 1hairman of the 4ederal "eser e, before a breakfastmeeting at the British mbassy in Washington, D.1. on 0#ril 9, 6<<9. ( 1rown co#yrightC4lickr )

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Britain s Prime *inister @ordon Brown (left) greets 4ederal "eser e Bank 1hairman Ben Bernanke at < Downing $treet inLondon on ;anuary , 6<< . ( "euters )

Britain s Prime *inister @ordon Brown (L) greets 4ederal "eser e chairman Ben Bernanke at < Downing $treet, in London on;anuary , 6<< . ( 04PC@etty 8mages )

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4ederal "eser e 1hairman Ben Bernanke (left) greets 1ommunist 1hina s Aice Premier Wang Tishan in Washington, D.1. on ;uly 6 , 6<< .("euters)

4ederal "eser e 1hairman Ben Bernanke (left) shakes hands with Rhou Viaochuan (right), @o ernor of the Peo#le s Bank of 1hina, before ameeting with 1ommunist 1hinaIs Aice Premier Wang Tishan (center) at the conclusion of the '.$.-1hina $trategic and conomic Dialogue, inWashington, D.1. on ;uly 6 , 6<< . (0P Photo)



!he @-: central bank go ernors stand together for a #ortrait in Washington D.1. on 0#ril , 6<<:. 4rom left to right7 Da idDodge of 1anada, 1hristian =oyer of 4rance, 03el Weber of @ermany, 4ederal "eser e 1hairman Ben Bernanke of the 'nited$tates, *ario Draghi of 8taly, !oshihiko 4ukui of ;a#an, *er yn Eing of the 'nited Eingdom, and ;ean-1laude !richet of the

uro#ean 1entral Bank, and World Bank President Paul Wolfowit2. (Photo by Brendan $mialowskiC@etty 8mages)

4rom left to right7 4ederal "eser e 1hairman Ben Bernanke, $ecurities and 3change 1ommission ($ 1) 1hairman1hristo#her 1o3, 'nder $ecretary of !reasury for Domestic 4inance "obert $teel, and the President of the 4ederal "eser e

Bank of =ew &ork !imothy @eithner testify before the $enate Banking 1ommittee hearing on the go ernment bailout of Bear$tearns on 1a#itol ill in Washington, D.1. on 0#ril , 6<<9. '.$. senators e3#ressed concern that billions of dollars in ta3#ayerfunds has been #ut on the line to back last monthIs emergency takeo er of troubled in estment bank Bear $tearns.(04PC@etty 8mages )

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4ederal "eser e Board 1hairman Ben Bernanke (left) talks to ;ean-1laude !richet, President of the uro#ean 1entral Bank ( 1B), during the@: summit in ssen, @ermany on 4ebruary <, 6<<:. !he @: finance ministers and central bank go ernors discussed the de elo#ment ofglobal economy for 6<<:. (Photo by "al#h FrlowskiC@etty 8mages)

uro#ean 1entral Bank President ;ean-1laude !richet (L) s#eaks alongside ;acob 4renkel from the 0merican 8nternational @rou# (6nd L),Deutsche Bundesbank 1hairman 03el Weber (6nd ") and '.$. 4ederal "eser e 1hairman Ben Bernanke, at a rece#tion where !richet was#resented with the H6<<: Policymaker of the &earH award, gi en out by an international economy maga2ine, in Washington, D.1. on Fctober

9, 6<<:. ( "euters )

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4ederal "eser e 1hairman Ben $. Bernanke is seen lea ing the 6<<9 Bilderberg *eetings at the Westfields *arriott otel in1hantilly, Airginia, '.$.0., located near the Dulles 8nternational 0ir#ort, on $unday, ;une 9, 6<<9.

Donald Eohn, Aice 1hairman of the 4ederal "eser e, reacts to a uestion during a s#eech at the 1ouncil on 4oreign "elationsin =ew &ork 1ity on =o ember 69, 6<<:. Eohn said that recent financial turbulence has re ersed some of the im#ro ement seenin markets in #re ious weeks, and could s uee2e credit for households and businesses. ( 0ssociated PressC*ark Lennihan )

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4ormer conomic 1lub of =ew &ork 1hairmen William ;. *cDonough (left) and Peter @. Peterson (center) #ose with @uest of onor !imothy4. @eithner at the @rand yatt otel in =ew &ork 1ity on ;une , 6<<9. William ;. *cDonough ser ed as President of the 4ederal "eser eBank of =ew &ork from to 6<< . !imothy 4. @eithner ser ed as President of the 4ederal "eser e Bank of =ew &ork from 6<< to 6<< .Peter @. Peterson ser ed as the 1hairman of the 4ederal "eser e Bank of =ew &ork from 6<<< to 6<< . (Photo7 conomic 1lub of =ew &or

!he 4ederal "eser e Fne-4inger $alute7 4ederal "eser e Board 1hairman Ben Bernanke testifies before the $enate Banking 1ommittee on1a#itol ill in Washington, D.1. on ;uly 66, 6<< . (@etty 8mages)

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President @eorge W. Bush (6nd ") laughs with 4ederal "eser e 1hairman Ben Bernanke ("), $ecretary of the !reasury enryPaulson (1), $ecurities and 3change 1ommission 1hairman 1hristo#her 1o3 (6nd L) and others during a meeting with thePresidentIs Working @rou# on 4inancial *arkets at the White ouse on *arch :, 6<<9. enry Paulson is a member of the1ouncil on 4oreign "elations. ( 04PC@etty 8mages )

Ben Bernanke (1), 1hairman of the 4ederal "eser e, #oses for a #hoto with *er yn Eing (L), @o ernor of the Bank of ngland,and ;ean-1laude !richet, President of the uro#ean 1entral Bank, during the @: meeting in !okyo, ;a#an on 4ebruary , 6<<9.("euters)

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!reasury $ecretary !imothy @eithner (L) looks at his watch at the beginning of his meeting with 4ederal "eser e 1hairman Ben Bernanke inthe $ecretary s office at the !reasury De#artment in Washington, D.1. on *ay :, 6<< . ("euters)

4ederal "eser e 1hairman Ben Bernanke (L) testifies with Paul Aolcker, 1hairman of the PresidentIs conomic "eco ery 0d isory Board,during a ouse 4inancial $er ices 1ommittee hearing on 1a#itol ill in Washington, D.1. on *arch :, 6< <. (@etty 8mages)



.$. President Barack Fbama (1) s#eaks alongside 4ederal "eser e 1hairman Ben Bernanke (L) and !reasury $ecretary !imothy @eithner(") during the conomic Daily Briefing in the F al Fffice of the White ouse in Washington, D.1. on ;une 6 , 6< <. (@etty 8mages)

4ederal "eser e Board 1hairman Ben Bernanke (1) #oses with board members at a two-day meeting of the 4ederal F#en *arket 1ommittee,the 4ederal "eser eIs interest rate-setting body, in Washington, D.1. in this *arch :, 6<< #icture released on *arch , 6<< . !he 4ederal"eser e on Wednesday announced the #urchase of longer-dated !reasury securities to hel# end a dee#ening '.$. "ecession. 4ront row (leftto right)7 @o ernor li2abeth Duke, @o ernor Ee in Warsh, 1hairman Bernanke, Aice 1hairman Donald Eohn, @o ernor Daniel !arullo. Backrow (left to right)7 =ew &ork 4ed President William Dudley, Boston 4ed President ric "osengren, $t. Louis 4ed President ;ames Bullard,1hicago 4ed President 1harles ans, Eansas 1ity 4ed President !homas oenig, Dallas 4ed President "ichard 4isher, *innea#olis 4edPresident @ary $tern, 1le eland 4ed President $andra Pianalto, 0tlanta 4ed President Dennis Lockhart, Philadel#hia 4ed President 1harlesPlosser, "ichmond 4ed President ;effrey Lacker, and $an 4rancisco 4ed President ;anet &ellen. <aniel $arullo, <ennis Lo+khart, 6i+har#

Fisher, an# Janet ;ellen are members of the Coun+il on Foreign 6elations. (J oC"eutersC1orbis)



William 1. Dudley, President and 1hief 3ecuti e Ffficer of the 4ederal "eser e Bank of =ew &ork, s#eaks at the 1ouncil on 4oreign"elations in =ew &ork 1ity on *ay 6+, 6< 6. ("euters)

With the !eton *ountains behind them, 4ederal "eser e 1hairman Ben Bernanke (left) and Bank of 8srael @o ernor $tanley 4ischer (right)walk together outside of the ;ackson ole conomic $ym#osium at @rand !eton =ational Park near ;ackson ole, Wyoming, '.$.0. on 4riday0ugust , 6< 6. (Photo7 !ed $. WarrenC0P)



Federal Reserve Chairman Ben <% Bernanke /left0 appears with Timothy F% .eithner! *resident of the Federal ReNew York% /+ndrew 7arrer@Bloom1erg News0





Ben $. Bernanke lea es the Board of @o ernors of the 4ederal "eser e $ystem on ;anuary , 6< + after eight years as its1hairman. (Photo7 4ederal "eser e )





E=tra hotos o" au! Ho! 4%r A!an r%%ns$an

$ir 0lan @reens#an (left) and Paul Aolcker (right) share a laugh while #artici#ating in a #anel discussion on ca#ital markets at@eorgetown 'ni ersity in Washington, D.1. on *arch , 6<<:. Both men once ser ed as 1hairman of the 4ederal "eser e.@reens#an and Aolcker are members of the 1ouncil on 4oreign "elations. (Photo by 1hi# $omode illaC@etty 8mages)



1hairman of the 4ederal "eser e Ben Bernanke (L) talks with former chairman of the 4ederal "eser e 0lan @reens#an (") at a cocktail #artyhosted by 8nternational conomy *aga2ine, in Washington, D.1. on Fctober 9, 6<<:. (J $tefan RaklinC P0C1orbis)

Left to right7 4ormer 4ederal "eser e 1hairman 0lan @reens#an, former '.$. $u#reme 1ourt ;ustice $andra Day F 1onnor, '.$. $u#reme1ourt ;ustice Da id $outer, $te#hen Breyer, @eorgetown 'ni ersity President ;ohn ;. De@ioia, and @eorgetown Law Dean 0le3 0leinikoffstand together for a grou# #ortrait at @eorgetown 'ni ersity Law 1enter in Washington, D.1. on Fctober 6, 6<<9.(Photo7 @eorgetown 'ni ersity Law 1enter )

http://www.law.georgetown.edu/alumni/magazine/2009-spring/lectures-and-events/alan-greenspan/





. @erald 1orrigan (left) and ;ames Wolfensohn (right) celebrate as Paul Aolcker holds a #la ue. 0ll three men are members ofthe Bretton Woods 1ommittee.

Paul Aolcker (left), $tanley 4ischer (center, red tie), and William ;. *cDonough (right) ha e attended the Bilderberg *eetings inthe #ast.



Paul Aolcker shakes hands with 'nited =ations $ecretary-@eneral Eofi 0nnan.

!rilateral 1ommission members Peter $utherland, $adako Fgata, Rbigniew Br2e2inski, Paul Aolcker, and Da id "ockefellersmile for the camera at a #arty on December , 9.



Left to right7 !reasury $ecretary ;ames 0. Baker 888, retiring 4ederal "eser e Board 1hairman Paul 0. Aolcker, and '.$. $ecretary of $tate@eorge P. $hult2 #ose for a #hoto in ;uly 9:. (Photo by 1ynthia ;ohnsonCC!ime Life PicturesC@etty 8mages)

.$. $enator ;udd @regg (of =ew am#shire) recei es the 1oncord 1oalitionIs Paul . !songas conomic Patriot 0ward on =o ember 9,6<< . Pictured left to right are7 4ormer '.$. 1om#troller @eneral Da id *. Walker, $enator @regg, 1oncord 1oalition President Peter @.Peterson, and former 1hairman of the 4ederal "eser e Paul Aolcker. Peter @. Peterson and Paul Aolcker are members of the 1ouncil on4oreign "elations. (Photo7 Fffice of '.$. $enator ;udd @reggC htt#7CCgregg.senate.go CaboutCawardsC)

http://gregg.senate.gov/about/awards/

http://gregg.senate.gov/about/awards/



4ormer 1hairman of 4ederal "eser e 0lan @reens#an (left) smiles as his wife, =B1 1hief 4oreign 0ffairs 1orres#ondent,0ndrea *itchell (right) s#eaks during a ta#ing of H!ake !woH segment of H*eet the PressH at the =B1 studios on $e#tember 6 ,6<<: in Washington, D.1. 0lan @reens#an and his wife 0ndrea *itchell attended the 6<<6 Bilderberg *eetings in 1hantilly,Airginia together in 6<<6. 0lan @reens#an and his wife 0ndrea *itchell are members of the 1ouncil on 4oreign "elations.(Photo by 0le3 WongC@etty 8mages for *eet the Press)

Left to right7 4rank 1arlucci, Paul Aolcker, and Donna $halala testify before 1ongress.



Left to right7 !reasury $ecretary enry Paulson, former 4ederal "eser e $ystem chairmen 0lan @reens#an and Paul Aolcker,0rthur Le itt, senior ad iser to !he 1arlyle @rou# and former 1hairman of the $ecurities and 3change 1ommission ($ 1), and$ 1 1hairman 1hristo#her 1o3 meet at @eorgetown 'ni ersity in Washington, D.1. on *arch , 6<<:.(Photo by 1hi# $omode illaC@etty 8mages)

Left to right7 =ew &ork 1ity *ayor *ichael Bloomberg, former 4ederal "eser e $ystem 1hairman 0lan @reens#an, and former4ederal "eser e $ystem 1hairman Paul Aolcker #artici#ate in a #anel discussion on ca#ital markets at @eorgetown 'ni ersityin Washington, D.1. on *arch , 6<<:. 0ll three men are members of the 1ouncil on 4oreign "elations.(Photo by 1hi# $omode illaC@etty 8mages)



=ew &ork 1ity *ayor *ichael Bloomberg (left) listens as former 4ederal "eser e $ystem 1hairman 0lan @reens#an talk aboutthe economy at @eorgetown 'ni ersity in Washington, D.1. on *arch , 6<<:. (Photo by 1hi# $omode illaC@etty 8mages)

!reasury $ecretary enry Paulson (left), =ew &ork 1ity *ayor *ichael Bloomberg (center), and former 4ederal "eser e1hairman 0lan @reens#an #artici#ate in a discussion on ca#ital markets at @eorgetown 'ni ersity in Washington, D.1. on*arch , 6<<:. Paulson, Bloomberg, and @reens#an are members of the 1ouncil on 4oreign "elations.(Photo by 1hi# $omode illaC@etty 8mages)



Left #hoto7 !reasury $ecretary enry Paulson and former 4ederal "eser e 1hairman 0lan @reens#an a##ear at @eorgetown 'ni ersity inWashington, D.1. on *arch , 6<<:. $ecretary Paulson hosted the H!reasury 1onference on '.$. 1a#ital *arkets 1om#etiti eness,H a day-long #rogram to focus on ca#ital market issues like regulation, com#etition and other related to#ics. (Photo by 1hi# $omode illaC@etty 8mages)

"ight #hoto7 Paul 0. Aolcker, the 1hairman of the 4ederal "eser e, #oses for a #ortrait in front of the 4ederal "eser e building in Washington,D.1. in ;anuary 9/. (J Wally *c=ameeC1F"B8$)

;ohn Deutch (left), former Director of 1entral 8ntelligence 0gency, and former 4ederal "eser e 1hairman Paul Aolcker smile for the camera ata 1ouncil on 4oreign "elations meeting on *arch , :.



4ormer 4ederal "eser e 1hairman 0lan @reens#an talks to former !reasury $ecretary "obert "ubin (left) at @eorgetownni ersity on *arch , 6<<:. (Photo by 1hi# $omode illaC@etty 8mages)

4ormer 4ederal "eser e 1hairman Paul Aolcker (left), 0rthur Le itt (center), senior ad iser to !he 1arlyle @rou# and former1hairman of the $ecurities and 3change 1ommission, and former !reasury $ecretary "obert "ubin #artici#ate in a #aneldiscussion called O4raming the 8ssues7 *arkets Pers#ecti es at @eorgetown 'ni ersity in Washington, D.1. on *arch , 6<<:.0ll three men in this #hoto are members of the 1ouncil on 4oreign "elations. (Photo by 1hi# $omode illaC@etty 8mages)



conomists ;ohn Eenneth @albraith (L) and 0lan @reens#an a##ears before a ;oint conomic 1ommittee in Washington, D.1. on Fctober <,: in obser ance of the ><th anni ersary of the H1rash of I6 .H @albraith #ro#osed a G> a gallon H#enalty le elH federal gasoline ta3 aimed at

cutting oil im#orts before the committee. (J Larry DowningCBettmannC1F"B8$)

*illion dollar newscaster Barbara Walters, escorted by her date, 0lan @reens#an, arri es at the s#ecial screening of #roducer 0llen EleinIsThe Greek Tycoon at the Pla2a !heatre on *ay , :9. !he film, an o#ulent look at the li es of the su#er rich, was followed by an e ening ofdisco dancing and a la ish dinner at "egineIs, the society discothe ue. (J BettmannC1F"B8$)



0lan @reens#an (center) a##ears with his mother "ose @oldsmith (far left), his mentor 0yn "and (second from right), 0yn "and s husband4rank F 1onnor (far right), and President @erald ". 4ord (second from left) at the White ouse in :+. 0yn "and, who was born 0lisaRino Iye na "osenbaum, was a "ussian-born ;ewish economic #hiloso#her. (Da id ume EennerlyC@erald ". 4ord Library)

President "ichard =i3on (left) a##oints 0lan @reens#an as the new 1hairman of the 1ouncil of conomic 0d isers during a meeting in $an1lemente, 1alifornia, '.$.0. on ;uly 6 , :+. @reens#an was an economist from =ew &ork 1ity and President of !ownsend and @reens#an,a #ri ate consulting firm. (J BettmannC1F"B8$)



4ormer 4ederal "eser e chairman 0lan @reens#an a##ears with his wife 0ndrea *itchell and '.$. $u#reme 1ourt ;ustice $te#hen Breyer atthe 6<</ 0s#en 8nstitute 8deas 4esti al in 0s#en, 1olorado, '.$.0. on ;uly , 6<</. !hey #resented their ideas on current issues at the 0s#en8deas 4esti al. 0ll three indi iduals are members of the 1ouncil on 4oreign "elations. (J Lynn @oldsmithC1orbis)

0lan @reens#an, former 1hairman of the 4ederal "eser e, a##ears with Democratic '.$. $enator Dianne 4einstein (Democrat-1alifornia) atthe 6<</ 0s#en 8nstitute 8deas 4esti al in 0s#en, 1olorado, '.$.0. on ;uly >, 6<</. !hey were s#eaking on current issues at the 0s#en 8deas4esti al in 0s#en, 1olorado. (J Lynn @oldsmithC1orbis)



4ederal "eser e 1hairman 0lan @reens#an testifies during a $enate Banking, ousing and 'rban 0ffairs 1ommittee hearing on1a#itol ill on ;uly 6 , 6<<>. @reens#an commented on "ed 1hinaIs #lan to use a more fle3ible currency system, stating it is Hagood start.H (Photo by *ark WilsonC@etty 8mages)

4ederal "eser e 1hairman 0lan @reens#an testifies during a $enate Banking, ousing and 'rban 0ffairs 1ommittee hearing on1a#itol ill on 4ebruary /, 6<<>. (Photo by *ark WilsonC@etty 8mages)



0lan @reens#an, former 1hairman of the 4ederal "eser e, s#eaks about his new memoir The Age of Tur%u!ence: A ,entures ina New (or! at Barnes % =oble in =ew &ork 1ity on $e#tember :, 6<<:. 0lan @reens#an is a member of the 1ouncil on4oreign "elations and a former member of the !rilateral 1ommission. 0lan @reens#an attended the 6<<6 Bilderberg *eetingsin 1hantilly, Airginia in 6<<6. (Photo by $#encer PlattC@etty 8mages)

4ederal "eser e 1hairman 0lan @reens#an smiles as he is welcomed at the $enate Banking, ousing and 'rban 0ffairs1ommittee in Washington, 4ebruary 6+, 6<<+. @reens#an s#oke about im#ro ing the regulation of the housing go ernments#onsored enter#rises such as 4annie *ae. (J ;F=0! 0= "=$!C"eutersC1orbis)



4ederal "eser e 1hairman 0lan @reens#an (1), his wife, =B1 Kournalist 0ndrea *itchell (L), and 1== anchor ;udy Woodruff enter the annualWhite ouse 1orres#ondentsI 0ssociation dinner in Washington, D.1. on 0#ril 6/, 6<< . 0ll three indi iduals in this #hoto are members of the1ouncil on 4oreign "elations, an internationalist organi2ation in =ew &ork 1ity. ("eutersCBrendan *cDermid)

4ormer '.$. !reasury $ecretary enry Paulson (left) and former 4ederal "eser e 1hairman 0lan @reens#an a##ear on O*eet the Press inWashington, D.1. on 4ebruary :, 6< <. enry Paulson and 0lan @reens#an are members of the 1ouncil on 4oreign "elations, aninternationalist organi2ation in =ew &ork 1ity. ("euters) htt#7CCwww.daylife.comC#hotoC<:t fA8eEc =w? U#aulson greens#an

http://www.daylife.com/photo/07tvfVIeKc1Nw?q=paulson+greenspan

http://www.daylife.com/photo/07tvfVIeKc1Nw?q=paulson+greenspan



embership of the )oard of Governorsof the #ederal $eserve %ystem, /0/8@2resent+ppointive Mem1ers

Mem1ers ̂Chairmen ̂,i(e Chairmen

-3GJffi(io Mem1ers<e(retaries of the Treasury ̂Comptrollers of the Curren(y 7istori(al Notes

!ppointive embers

Bameand Cistrict

Cate ofinitial

oath of office+ther dates and information relating to membership

Charles <% 7amlinBoston +ug% #! $ Reappointed in and " % <erved until Fe1% >! > %

*aul M% &ar1urgNew York +ug% #! $ Term e3pired +ug% ! =%

Frederi( +% )elanoChi(ago +ug% #! $ Resigned 'uly " ! =%

&%*%.% 7arding+tlanta +ug% #! $ Term e3pired +ug% ! ""%

+dolph C% Miller <an Fran(is(o +ug% #! $Reappointed in "$% Reappointed in >$ from the

Ri(hmond )istri(t% <erved until Fe1% >! > %+l1ert <trauss

New York J(t% " ! = Resigned Mar% L! "#%

7enry +% MoehlenpahChi(ago Nov% #! Term e3pired +ug% ! "#%

dmund *lattNew York 'une =! "# Reappointed in "=% Resigned <ept% $! >#%

avid C% &illsCleveland <ept% " ! "# Term e3pired Mar% $! " %

ohn R% Mit(hellMinneapolis May "! " Resigned May "! ">%

Milo )% Camp1ellChi(ago Mar% $! "> )ied Mar% ""! ">%

aniel R% Crissinger Cleveland May ! "> Resigned <ept% L! "H%

eorge R% 'ames<t% ouis May $! "> Reappointed in > % <erved until Fe1% >! > %

dward 7% CunninghamChi(ago May $! "> )ied Nov% "=! >#%

Roy +% YoungMinneapolis J(t% $! "H Resigned +ug% > ! >#%

ugene Meyer New York <ept% ! ># Resigned May #! >>%

&ayland &% Mageeansas City May =! > Term e3pired 'an% "$! >>%

ugene R% Bla(k May ! >> Resigned +ug% L! >$%

http://www.federalreserve.gov/bios/boardmembership.htm#appointive


http://www.federalreserve.gov/bios/boardmembership.htm#chairmen


http://www.federalreserve.gov/bios/boardmembership.htm#vicechairmen


http://www.federalreserve.gov/bios/boardmembership.htm#treasury

http://www.federalreserve.gov/bios/boardmembership.htm#currency



http://www.federalreserve.gov/bios/boardmembership.htm#historical

http://www.federalreserve.gov/




http://www.federalreserve.gov/bios/boardmembership.htm#treasury


http://www.federalreserve.gov/bios/boardmembership.htm#historical



+tlantaM%<% <Aym(Aak

Chi(ago 'une $! >> Reappointed in > and $=% Resigned May > ! %

%'% Thomasansas City 'une $! >> <erved until Fe1% #! > %

Marriner <% -((les<an Fran(is(o Nov% L! >$Reappointed in > ! $#! and $$% Resigned

'uly $! L %oseph +% Broderi(k

New York Fe1% >! > Resigned <ept% >#! >H%

ohn % M( eeCleveland Fe1% >! > <erved until +pr% $! $ %

Ronald Ransom+tlanta Fe1% >! > Reappointed in $"% )ied )e(% "! $H%

Ralph &% Morrison)allas Fe1% #! > Resigned 'uly ! > %

Chester C% )avisRi(hmond 'une "L! > Reappointed in $#% Resigned +pr% L! $ %

rnest .% )raper New York Mar% >#! >= <erved until <ept% ! L#%

Rudolph M% -vansRi(hmond Mar% $! $" <erved until +ug% >! L$%

ames % ,ardaman! 'r%<t% ouis +pr% $! $ Resigned Nov% >#! L=%

awren(e ClaytonBoston Fe1% $! $H )ied )e(% $! $ %

Thomas B% M(Ca1e*hiladelphia +pr% L! $= Resigned Mar% > ! L %

dward % Norton+tlanta <ept% ! L# Resigned 'an% > ! L"%

Jliver <% *owellMinneapolis <ept% ! L# Resigned 'une >#! L"%

&m% M(C% Martin! 'r%New York +pr% "! L Reappointed in L % Term e3pired 'an% > ! H#%

+% % Mills! 'r%<an Fran(is(o Fe1% =! L" Reappointed in L=% Resigned Fe1% "=! L%

% % Ro1ertsonansas City Fe1% =! L" Reappointed in $% Resigned +pr% >#! H>%

C% Can1y Balderston*hiladelphia +ug% "! L$ <erved through Fe1% "=! %

*aul -% Miller Minneapolis +ug% >! L$ )ied J(t% " ! L$%

Chas% N% <hepardson)allas Mar% H! LL Retired +pr% >#! H%

%7% ing! 'r%+tlanta Mar% "L! L Reappointed in #% Resigned <ept% =! >%

eorge &% Mit(hellChi(ago +ug% > ! Reappointed in "% <erved until Fe1% >! H %

% )ewey )aaneRi(hmond Nov% " ! > <erved until Mar% =! H$%



<herman '% Maisel<an Fran(is(o +pr% >#! L <erved through May > ! H"%

+ndrew F% Brimmer *hiladelphia Mar% ! Resigned +ug% > ! H$%

&illiam &% <herrill)allas May ! H Reappointed in =% Resigned Nov% L! H %

+rthur F% BurnsNew York 'an% > ! H# Term 1egan Fe1% ! H#% Resigned Mar% > ! H=%

ohn -% <heehan<t% ouis 'an% $! H" Resigned 'une ! HL%

effrey M% Bu(her <an Fran(is(o 'une L! H" Resigned 'an% "! H %

Ro1ert C% 7ollandansas City 'une ! H> Resigned May L! H %

7enry C% &alli(hBoston %Mar% =! H$ Resigned )e(% L! = %

*hilip -% Coldwell)allas J(t% " ! H$ <erved through Fe1% " ! =#%

*hilip C% 'a(kson! 'r%+tlanta 'uly $! HL Resigned Nov% H! H=%

% Charles *arteeRi(hmond 'an% L! H <erved until Fe1% H! = %

<tephen <% .ardner *hiladelphia Fe1% >! H )ied Nov% ! H=%

avid M% illyMinneapolis 'une ! H Resigned Fe1% "$! H=%

% &illiam Miller <an Fran(is(o Mar% =! H= Resigned +ug% ! H %

Nan(y 7% TeetersChi(ago <ept% =! H= <erved through 'une "H! =$%

mmett '% Ri(eNew York 'une "#! H Resigned )e(% > ! = %

Frederi(k 7% <(hultA+tlanta 'uly "H! H <erved through Fe1% ! ="%

*aul +% ,ol(ker *hiladelphia +ug% ! H Resigned +ugust ! =H%

yle -% .ramleyansas City May "=! =# Resigned <ept% ! =L%

*reston Martin

<an Fran(is(oMar% > ! =" Resigned +pril >#! = %

Martha R% <eger Chi(ago 'uly "! =$ Resigned Mar(h ! %

&ayne )% +ngellansas City Fe1% H! = <erved through Fe1% ! $%

Manuel 7% 'ohnsonRi(hmond Fe1% H! = Resigned +ugust >! #%

7% Ro1ert 7eller <an Fran(is(o +ug% ! = Resigned 'uly > ! = %

dward &% elley! 'r%

)allasMay " ! =H Reappointed in #8 resigned )e(% > ! "## %



+lan .reenspanNew York +ug% ! =H Reappointed in "8 term e3pired 'an% > ! "## %

ohn *% a&areBoston +ug% L! == Resigned +pril >#! L%

avid &% Mullins! 'r%<t% ouis May " # Resigned Fe1% $! $%

awren(e B% indseyRi(hmond Nov% " ! Resigned Fe1% L! H%

<usan M% *hillipsChi(ago )e(% "! <erved through 'une >#! =%

+lan <% Blinder *hiladelphia 'une "H! $ Term e3pired 'an% > ! %

anet % Yellen<an Fran(is(o +ug% "! $ Resigned Fe1% H! H8 reappointed J(t% $! "# #%

auren(e 7% Meyer <t% ouis 'une "$! Term e3pired 'an% > ! "##"%

+li(e M% Rivlin*hiladelphia 'une "L! Resigned 'uly ! %

Roger &% Ferguson! 'r%Boston Nov% L! H Reappointed in "## 8 resigned +pril "=! "##

dward M% .ramli(hRi(hmond Nov% L! H Resigned +ugust > ! "##L%

<usan <% BiesChi(ago )e(% H! "## Resigned Mar(h >#! "##H%

Mark &% JlsonMinneapolis )e(% H! "## Resigned 'une >#! "## %

Ben <% Bernanke+tlanta +ug% L! "##" Resigned 'une " ! "##L8 reappointed Fe1% ! "## %

onald % ohnansas City +ug% L! "##" Resigned <eptem1er ! "# #%

evin M% &arshNew York Fe1% "$! "## Resigned +pril "! "# %

Randall <% rosAner Ri(hmond Mar% ! "## Resigned 'anuary " ! "## %

Frederi( <% MishkinBoston <ept% L! "## Resigned +ugust > ! "##=%

liAa1eth +% )uke*hiladelphia +ug% L! "##= Resigned +ugust > ! "# >%

aniel % Tarullo

Boston'an% "=! "##

<arah Bloom RaskinRi(hmond J(t% $! "# # Resigned Mar(h >! "# $%

erome 7% *owellNew York May "L! "# "

eremy C% <teinChi(ago May >#! "# " Resigned May "=! "# $%

<tanley Fis(her New York May "=! "# $

ael Brainard

Ri(hmond'une ! "# $



(hairmen Cate of term

Charles <% 7amlin +ug% #! $G+ug% ! &%*%.% 7arding +ug% #! G+ug% ! ""aniel R% Crissinger May ! ">G<ept% L! "H

Roy +% Young J(t% $! "HG+ug% > ! >#ugene Meyer <ept% ! >#GMay #! >>ugene R% Bla(k May ! >>G+ug% L! >$

Marriner <% -((les Nov% L! >$G'an% > ! $=Thomas B% M(Ca1e +pr% L! $=GMar% > ! L&m% M(C% Martin! 'r +pr% "! L G'an% > ! H#+rthur F% Burns Fe1% ! H#G'an% > ! H="

% &illiam Miller Mar% =! H=G+ug% ! H*aul +% ,ol(ker +ug% ! H G+ug% ! =H+lan .reenspan +ug% ! =HG'an% > ! "##>

Ben <% Bernanke Fe1% ! "## G 'an% > ! "# $

anet % Yellen Fe1% >! "# $ G% <erved as Chairman *ro Tempore from Fe1ruary >! $=! to +pril L! $=%Return to te3t"% <erved as Chairman *ro Tempore from Fe1% ! H=! to Mar(h H! H=8 served as .overnor from Mar(h =!

H=%Return to te3t>% <erved as Chairman *ro Tempore from Mar(h >! ! to 'une "#! %Return to te3tReturn to top

Aice (hairmen Cate of term

Frederi( +% )elano +ug% #! $G+ug% ! *aul M% &ar1urg +ug% #! G+ug% ! =+l1ert <trauss J(t% " ! =GMar% L! "#dmund *latt 'uly ">! "#G<ept% $! >#%'% Thomas +ug% " ! >$GFe1% #! >Ronald Ransom +ug% ! > G)e(% "! $HC% Can1y Balderston Mar% ! LLGFe1% "=! % % Ro1ertson Mar% ! G+pr% >#! H>eorge &% Mit(hell May ! H>GFe1% >! H<tephen <% .ardner Fe1% >! H GNov% ! H=Frederi(k 7% <(hultA 'uly "H! H GFe1% ! ="*reston Martin Mar% > ! ="G+pr% >#! =Manuel 7% 'ohnson +ug% $! = G+ug% >! #avid &% Mullins! 'r% 'uly "$! GFe1% $! $

+lan <% Blinder 'une "H! $G'an% > ! +li(e M% Rivlin 'une "L! G'uly ! Roger &% Ferguson! 'r% J(t% L! G+pr% "=! "##onald % ohn 'une ">! "## G'une ">! "# #anet % Yellen J(t% $! "# # G Fe1% >! "# $<tanley Fis(her 'une ! "# $GReturn to top

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3x@+fficio embers

%ecretaries of the Treasury Cate of term

&%.% M(+doo )e(% ">! >G)e(% L! =Carter .lass )e(% ! =GFe1% ! "#avid F% 7ouston Fe1% "! "#GMar% >! "

+ndrew &% Mellon Mar% $! " GFe1% "! >"Jgden % Mills Fe1% "! >"GMar% $! >>&illiam 7% &oodin Mar% $! >>G)e(% > ! >>7enry Morgenthau! 'r% 'an% ! >$GFe1% ! >

(omptrollers of the (urrency Cate of term

ohn <kelton &illiams Fe1% "! $GMar% "! "aniel R% Crissinger Mar% H! " G+pr% >#! ">

7enry M% )awes May ! ">G)e(% H! "$oseph &% M(6ntosh )e(% "#! "$GNov% "#! "=%&% *ole Nov% " ! "=G<ept% "#! >"%F%T% JIConnor May ! >>GFe1% ! >

:istorical Botes;nder the provisions of the original Federal Reserve +(t! the Federal Reserve Board was (omposed of seven mem1ers! in(ludingappointive mem1ers! the <e(retary of the Treasury! who was e3Goffi(io (hairman of the Board! and the Comptroller of the Curoriginal term of offi(e was ten years! and the five original appointive mem1ers had terms of two! four! si3! eight! and ten years6n "" the num1er of appointive mem1ers was in(reased to si3! and in >> the term of offi(e was in(reased to twelve years%

The Banking +(t of >L! approved +ug% ">! >L! (hanged the name of the Federal Reserve Board to the Board of .overnoReserve <ystem and provided that the Board should 1e (omposed of seven appointive mem1ers8 that the <e(retary of the TreasComptroller of the Curren(y should (ontinue to serve as mem1ers until Fe1% ! > 8 that the appointive mem1ers in offi(e oa(t should (ontinue to serve until Fe1% ! > ! or until their su((essors were appointed and had 5ualified8 and that thereaftermem1ers should 1e fourteen years and that the designation of Chairman and ,i(e Chairman of the Board should 1e for a term of

)ate after words Resigned and Retired denotes final day of servi(e%Chairman and ,i(e Chairman were designated .overnor and ,i(e .overnor 1efore +ug% ">! >L%Return to top7ome ^+1out the Fed+((essi1ility ^Conta(t us

ast update: May >#! "# "

Federal Reserve Board Mem1ers /as of 'une ! "# $0

;anet L. &ellen (left, 1hairman) and $tanley 4ischer (right, Aice 1hairman)



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Board *embers, left to right7 Daniel E. !arullo, ;erome . Powell, and Lael Brainard

0ll fi e board members of the 4ederal "eser e (as of ;une /, 6< +) are members of the 1ouncil on 4oreign "elations, a #ri ateorgani2ation in =ew &ork 1ity.

Board Mem1ers!he se en members of the Board of @o ernors of the 4ederal "eser e $ystem are nominated by the President and confirmed by the $enate.0 full term is fourteen years. Fne term begins e ery two years, on 4ebruary of e en-numbered years. 0 member who ser es a full term maynot be rea##ointed. 0 member who com#letes an une3#ired #ortion of a term may be rea##ointed. 0ll terms end on their statutory dateregardless of the date on which the member is sworn into office. !he 1hairman and the Aice 1hairman of the Board are named by thePresident from among the members and are confirmed by the $enate. !hey ser e a term of four years. 0 memberIs term on the Board is not

affected by his or her status as 1hairman or Aice 1hairman. ($ource7 htt#7CCwww.federalreser e.go CaboutthefedCbiosCboardCdefault.htm)

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9anet 7. Dellen

;anet L. &ellen took office as 1hair of the Board of @o ernors of the 4ederal "eser e $ystem on 4ebruary , 6< +, for a four-year termending 4ebruary , 6< 9. Dr. &ellen also ser es as 1hairman of the 4ederal F#en *arket 1ommittee, the $ystemIs #rinci#al monetary#olicymaking body. Prior to her a##ointment as 1hair, Dr. &ellen ser ed as Aice 1hair of the Board of @o ernors, taking office inFctober 6< <, when she simultaneously began a +-year term as a member of the Board that will e3#ire ;anuary , 6<6+.

Dr. &ellen is Professor meritus at the 'ni ersity of 1alifornia at Berkeley where she was the ugene . and 1atherine *. !refethenProfessor of Business and Professor of conomics and has been a faculty member since 9<.

Dr. &ellen took lea e from Berkeley for fi e years starting 0ugust +. $he ser ed as a member of the Board of @o ernors of the4ederal "eser e $ystem through 4ebruary :, and then left the 4ederal "eser e to become chair of the 1ouncil of conomic0d isers through 0ugust . $he also chaired the conomic Policy 1ommittee of the Frgani2ation for conomic 1oo#eration andDe elo#ment from : to . $he also ser ed as President and 1hief 3ecuti e Ffficer of the 4ederal "eser e Bank of $an4rancisco from 6<<+ to 6< <.

Dr. &ellen is a member of both the 1ouncil on 4oreign "elations and the 0merican 0cademy of 0rts and $ciences. $he has ser ed asPresident of the Western conomic 0ssociation, Aice President of the 0merican conomic 0ssociation and a 4ellow of the &ale1or#oration.

Dr. &ellen graduated summa cum laude from Brown 'ni ersity with a degree in economics in /:, and recei ed her Ph.D. inconomics from &ale 'ni ersity in : . $he recei ed the Wilbur 1ross *edal from &ale in :, an honorary doctor of laws degree

from Brown in 9, and an honorary doctor of humane letters from Bard 1ollege in 6<<<.

0n 0ssistant Professor at ar ard 'ni ersity from : to :/, Dr. &ellen ser ed as an conomist with the 4ederal "eser eIs Boardof @o ernors in :: and :9, and on the faculty of the London $chool of conomics and Political $cience from :9 to 9<. Dr.&ellen has written on a wide ariety of macroeconomic issues, while s#eciali2ing in the causes, mechanisms, and im#lications ofunem#loyment. Dr. &ellen is married and has an adult son.

Last up#ate7 Februar! 3, *> =htt#7CCwww.federalreser e.go CaboutthefedCbiosCboardCyellen.htm

%tanley #ischer

$tanley 4ischer took office as a member of the Board of @o ernors of the 4ederal "eser e $ystem on *ay 69, 6< +, to fill an

une3#ired term ending ;anuary , 6<6<.

Prior to his a##ointment to the Board, Dr. 4ischer was go ernor of the Bank of 8srael from 6<<> through 6< .

4rom 4ebruary 6<<6 to 0#ril 6<<>, Dr. 4ischer was ice chairman of 1itigrou#. Dr. 4ischer ser ed as the first de#uty managing directorof the 8nternational *onetary 4und from $e#tember + through 0ugust 6<< . 4rom ;anuary 99 to 0ugust <, he was the chiefeconomist of the World Bank.

4rom :: to , Dr. 4ischer was a #rofessor of economics at the *assachusetts 8nstitute of !echnology (*8!). 4rom 6 to >,he was the li2abeth and ;ames Eillian 1lass of 6/ #rofessor. 4rom : to ::, Dr. 4ischer was an associate #rofessor ofeconomics at *8!. Prior to Koining the *8! faculty, Dr. 4ischer was an assistant #rofessor of economics and a #ostdoctoral fellow at theni ersity of 1hicago.

Dr. 4ischer has #ublished many articles on a wide ariety of economic issues, and he is the author and editor of se eral scholarlybooks. e has been a fellow at the @uggenheim 4oundation, the 0merican 0cademy of 0rts and $ciences, and the conometric$ociety, as well as a research associate at the =ational Bureau of conomic "esearch and an honorary fellow at the London $chool of

conomics.

Dr. 4ischer was born in Lusaka, Rambia, in Fctober + . e recei ed his B.$c. and *.$c. in economics from the London $chool ofconomics. e recei ed his Ph.D. in economics from the *assachusetts 8nstitute of !echnology in / .

Dr. 4ischer is married with three adult children.

Last up#ate7 June 3, *> =htt#7CCwww.federalreser e.go CaboutthefedCbiosCboardCfischer.htm

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Caniel 6. Tarullo

Daniel E. !arullo took office on ;anuary 69, 6<< , to fill an une3#ired term ending ;anuary , 6<66.

Prior to his a##ointment to the Board, *r. !arullo was Professor of Law at @eorgetown 'ni ersity Law 1enter, where he taught coursesin international financial regulation, international law, and banking law. Prior to Koining the @eorgetown Law faculty, *r. !arullo heldse eral senior #ositions in the 1linton administration.

4rom to 9, *r. !arullo ser ed, successi ely, as 0ssistant $ecretary of $tate for conomic and Business 0ffairs, De#uty0ssistant to the President for conomic Policy, and 0ssistant to the President for 8nternational conomic Policy. e also ser ed as a#rinci#al on both the =ational conomic 1ouncil and the =ational $ecurity 1ouncil. 4rom > to 9, *r. !arullo also ser ed asPresident 1lintonIs #ersonal re#resentati e to the @:C@9 grou# of industriali2ed nations.

Before Koining the 1linton administration, he ser ed as 1hief 1ounsel for m#loyment Policy on the staff of $enator dward *.Eennedy, and #racticed law in Washington, D.1. e also worked in the 0ntitrust Di ision of the De#artment of ;ustice and as $#ecial0ssistant to the 'ndersecretary of 1ommerce. 4rom 9 to 9:, *r. !arullo taught at ar ard Law $chool.

*r. !arullo has also ser ed as a senior fellow at the 1ouncil on 4oreign "elations and as a non-resident senior fellow at the 1enter for0merican Progress. *r. !arullo has also held a isiting #rofessorshi# at Princeton 'ni ersity.

*r. !arullo was born in =o ember >6 in Boston, *assachusetts. e recei ed his 0.B. from @eorgetown 'ni ersity in : and his*.0. from Duke 'ni ersity in :+. 8n ::, *r. !arullo recei ed his ;.D. (summa cum laude) from the 'ni ersity of *ichigan Law$chool, where he ser ed as 0rticle and Book "e iew ditor of the +ichigan "aw -e,iew.

*r. !arullo is married and has two children.

Last up#ate7 I+tober =, *> >htt#7CCwww.federalreser e.go CaboutthefedCbiosCboardCtarullo.htm

9erome :. 2owell

;erome . Powell took office on *ay 6>, 6< 6, to fill an une3#ired term ending ;anuary , 6< +.

Prior to his a##ointment to the Board, *r. Powell was a isiting scholar at the Bi#artisan Policy 1enter in Washington, D.1., where hefocused on federal and state fiscal issues. 4rom : through 6<<>, *r. Powell was a #artner at !he 1arlyle @rou#.

*r. Powell ser ed as an 0ssistant $ecretary and as 'ndersecretary of the !reasury under President @eorge .W. Bush, withres#onsibility for #olicy on financial institutions, the !reasury debt market, and related areas. Prior to Koining the 0dministration, heworked as a lawyer and in estment banker in =ew &ork 1ity.

8n addition to ser ice on cor#orate boards, *r. Powell has ser ed on the boards of charitable and educational institutions, including theBendheim 1enter for 4inance at Princeton 'ni ersity and !he =ature 1onser ancy of Washington, D.1., and *aryland.

*r. Powell was born in 4ebruary > in Washington, D.1. e recei ed an 0.B. in #olitics from Princeton 'ni ersity in :> andearned a law degree from @eorgetown 'ni ersity in : . While at @eorgetown, he was editor-in-chief of the Georgetown "aw $ourna!

*r. Powell is married with three children.

Last up#ate7 Jul! 3, *> 3htt#7CCwww.federalreser e.go CaboutthefedCbiosCboardC#owell.htm

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6? D<?5$ IF $H? F?<?68L 6? ?69? 685CH 85K

F-)-R+ R-<-R,- B+N JF N-& YJR President Term of office Reason for Termination Source Date Page

William C. Dudley 01/27/2009 - present

Timothy F. Geithner 11/17/2003 - 01/27/2009 ppt. !e"retary o# Treasury F$%&'

amie %. !te)art* 0+/11/2003 - 11/17/2003 $esi,ned F$%&'

William (. "Donou,h 07/19/1993 - 0+/11/2003 $etired F$%&'

. Gerald Corri,an 01/01/19 - 07/19/1993 $etired F$%&'

nthony . !olomon 0 /01/19 0 - 01/01/19 $etired F$%&'

aul . ol"4er 0 /01/197 - 0 /02/1979 ppt. Chairman %oard o#Go5ernors F$% 0 /1979 p. +31

l#red 6ayes 0 /01/19 + - 0 /01/197 $etired F$%&'/ $ 197 p. 3

llan !proul 01/01/19 1 - 0+/30/19 + $esi,ned F$% 07/19 + p. 70

Geor,e . 6arrison 11/22/192 - 12/31/19 0 $esi,ned F$% 01/19 1 p. 2

%en8amin !tron, 10/0 /191 - 10/1+/192 Died in o##i"e F$% 11/192 p. 739

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$ - nnual $eportF$% - Federal $eser5e %ulletinF$%&' - Federal $eser5e %an4 o# &e) 'or4

F-)-R+ R-<-R,- B+N JF C76C+.Jresident Term of office Reason for Termination Source Date Page

Charles . 5ans 09/01/2007 - present

i"hael 6. os4o) 09/01/199 - 0 /31/2007 $etired F$%C

ilas :eehn 07/01/19 1 - 0 /31/199 $etired F$%C

o;ert . ayo 07/29/1970 - 0 /01/19 1 $etired F$%C

Charles (. !"anlon 01/0 /19+2 - 0 /1 /1970 $esi,ned F$%C

Carl . llen 10/01/19 + - 12/31/19+1 $esi,ned F$% 01/19+2 p. 37

Cli##ord !. 'oun, 03/01/19 1 - 02/29/19 + $etired F$%C

Geor,e (. !"haller 03/02/193 - 02/2 /19 1 $etired %G $ 19 1 p. 21

ames %. "Dou,al 10/23/191 - 03/01/193 $etired F$%C

%G $ - %oard o# Go5ernors nnual $eportF$% - Federal $eser5e %ulletinF$%C - Federal $eser5e %an4 o# Chi"a,o

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F-)-R+ R-<-R,- B+N JF BJ<TJNresident Term of office Reason for Termination Source Date Page

ri" $osen,ren 07/23/2007 - present

Cathy . inehan 07/13/199 - 07/22/2007 $etired F$%%

i"hard F. !yron 01/01/19 9 - 03/31/199 $esi,ned F$%%

Fran4 . orris 0 /1 /19+ - 12/31/19 $etired

Geor,e 6. llis 03/01/19+1 - 0+/30/19+ $esi,ned F$%%

oseph . ri"4son 12/1 /19 - 02/2 /19+1 $etired F$% 03/19+1 p. 302

auren"e F. Whittemore 03/01/19 + - 10/0 /19 $esi,ned F$% 10/19 p. 1239

alph . Flanders 0 /01/19 - 02/2 /19 + $etired F$% 03/19 + p. 2

William W. addo"4 0 /01/19 2 - 0 /01/19 $etired F$% 0 /19 p. 3

oy . 'oun, 09/01/1930 - 03/31/19 2 $esi,ned F$% 0 /19 2 p. 32+

Wm. .G. 6ardin, 01/1+/1923 - 0 /07/1930 Died in o##i"e $ 1930 p. 2+

Charles orss 12/20/1917 - 12/31/1922 $esi,ned $ 1923 p. 2l#red i4en 11/2 /191 - 12/20/1917 $esi,ned $ 1917 p. 19

$ - nnual $eportF$% - Federal $eser5e %ulletinF$%% - Federal $eser5e %an4 o# %oston

F-)-R+ R-<-R,- B+N JF *76 +)- *76+resident Term o# o##i"e $eason #or Termination !our"e Date a,e

Charles . losser 0 /01/200+ - presentnthony . !antomero 07/10/2000 - 03/31/200+ $etired F$%

d)ard G. %oehne 02/01/19 1 - 0 /31/2000 $etired F$%

Da5id . ast;urn 03/01/1970 - 01/31/19 1 $etired F$%

arl $. %opp 03/01/19 - 02/2 /1970 $etired F$%

l#red 6. Williams 07/01/19 1 - 02/2 /19 $etired F$% 03/19 p. 299

ohn !. !in"lair 03/13/193+ - 0+/30/19 1 $esi,ned F$% 0+/19 1 p. 17

Geor,e W. &orris 03/03/1920 - 02/29/193+ $etired $ 193+ p. 3

. . assmore 02/0 /191 - 03/01/1920 $esi,ned $ 1920 p. 2+

Charles (. $hoads 10/0 /191 - 02/0 /191 $esi,ned $ 191 p. 27

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F-)-R+ R-<-R,- B+N JF +T +NT+resident Term of office Reason for Termination Source Date Page

Dennis o"4hart 03/01/2007 - present

a"4 Guynn 01/01/199+ - 10/01/200+ $etired F$%

o;ert . Forrestal 12/07/19 3 - 01/01/199+ $etired F$%

William F. Ford 0 /01/19 0 - 10/01/19 3 $esi,ned F$%

onroe :im;rel 02/01/19+ - 03/31/19 0 $etired F$%

arold T. atterson 10/01/19+ - 01/31/19+ $etired F$%

al"olm %ryan 0 /01/19 1 - 09/30/19+ $etired F$% 10/19+ p. 1 11

W. !. " arin (r. 0 /09/19 1 - 03/01/19 1 $etired F$% 03/19 1 p. 27+

o;ert !. ar4er 02/1 /1939 - 03/2 /19 1 Died in o##i"e F$% 0 /19 1 p. 310

s"ar &e)ton 01/1+/193 - 02/13/1939 Died in o##i"e F$% 03/1939 p. 172

u,ene $. %la"4 0 /1+/193 - 12/19/193 =2nd term> Died in o##i"e $ 193 p. 19

u,ene $. %la"4 01/13/192 - 0 /1 /1933 =1st term> --. %. Well;orn 03/01/1919 - 12/31/1927 $esi,ned F$% 01/192 p. 7

oseph . "Cord 11/1+/191 - 03/01/1919 le"ted F$ ,ent F$% 03/1919 p. 201

$ - nnual $eportF$% - Federal $eser5e %ulletinF$% - Federal $eser5e %an4 o# tlanta

F-)-R+ R-<-R,- B+N JF C -,- +N)President Term of office Reason for Termination Source Date Page

andra ianalto 02/01/2003 - present

erry . (ordan 03/10/1992 - 01/31/2003 $esi,ned F$%C

W. ee 6os4ins 09/21/19 7 - 11/1 /1991 $esi,ned F$%C

aren &. 6orn 0 /01/19 2 - 0 /0 /19 7 $esi,ned F$%C

Willis (. Winn 09/01/1971 - 0 /30/19 2 $etired F$%C

W. %raddo"4 6i"4man 0 /01/19+3 - 11/2 /1970 Died in o##i"e F$% 12/1970 p. 9+3

Wil;ur D. Fulton 0 /1 /19 3 - 0 /30/19+3 $etired F$% 0 /19+3 p. +

ay . Gidney 11/01/19 - 0 /1+/19 3 $esi,ned* F$% 0 /19 3 p. 73

atthe) (. Flemin, 01/19/193 - 09/1 /19 $etired F$% 10/19 p. 9+

l5adore $. Fan"her 11/02/191 - 01/1+/193 Died in o##i"e F$% 02/193 p. 7

* ppointed Comptroller o# Curren"yF$% - Federal $eser5e %ulletinF$%C - Federal $eser5e %an4 o# Cle5eland

F-)-R+ R-<-R,- B+N JF )+ +<



President Term of office Reason for Termination Source Date Page

i"hard W. Fisher / /200 - present F$%D

elen 6ol"om;* 11/200 - /3/200 nterim F$%D 11/200

o;ert D. "Teer (r. 02/1991 - 11/200 $esi,ned F$%D 11/200

o;ert 6. %oy4in 01/01/19 1 - 01/31/1991 $etired F$%D

rnest T. %au,hman 01/01/197 -12/31/19 0 $etired F$%D

hilip . Cold)ell 02/01/19+ -10/09/197 $esi,ned F$% 11/197 p. 799

Watrous 6. rons 02/1 /19 - 02/01/19+ $etired F$%D

. $. Gil;ert 0 /13/1939 - 09/01/19 3 $etired F$% 09/19 3 p. 9 2

%. . ":inney 10/0 /1931 - 0 /02/1939 Died in o##i"e F$% 0 /1939 p. 3 +

ynn . Talley 07/01/192 - 10/01/1931 $esi,ned F$% 10/1931 p. 7

%. . ":inney 01/1+/1922 - 0 /1+/192 $esi,ned $ 192 p. 1+

. . an?andt 0 /0+/191 - 01/07/1922 &ot re-ele"ted

s"ar Wells 10/1+/191 - 02/2 /191 $esi,ned $ 191 p. +

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F-)-R+ R-<-R,- B+N JF M6NN-+*J 6<President Term of office Reason for Termination Source Date Page

Gary 6. !tern 03/21/19 - present

. Gerald Corri,an 0 /01/19 0 - 12/31/19 $esi,ned F$%

ar4 6. Willes 0 /1+/1977 - 0+/30/19 0 $esi,ned F$%

%ru"e :. a" aury 07/01/1971 - 02/2 /1977 $esi,ned F$% 03/1977 p. 30

u,h D. Galusha (r. 0 /01/19+ - 01/31/1971 Died in o##i"e F$% 02/1971 p. 1+3

Frederi"4 Demin, 0 /01/19 7 - 01/31/19+ ppt. @nder !e"Ay Treas. F$%

li5er !. o)ell 07/01/19 2 - 03/31/19 7 ppt. "onomi" d5isor F$%

ohn &. eyton 03/01/193+ - 0+/30/19 2 $etired F$% 07/19 2 p. 77+

W. %. Geery 09/27/1927 - 03/01/193+ Desi,nated Chair B ,ent F$% 03/193+ p. 1

oy . 'oun, 10/01/1919 - 09/2+/1927 ppt. to %oard o# Go5ernors $ 1927 p. 13

Theodore Wold 10/27/191 - 10/01/1919 $etired $ 1919 p. 1

$ - nnual $eportF$% - Federal $eser5e %ulletinF$% - Federal $eser5e %an4 o# inneapolis




F-)-R+ R-<-R,- B+N JF +N<+< C6TYPresident Term of office Reason for Termination Source Date Page

Thomas . 6oeni, 10/01/1991 - present F$%:C

o,er Gu##ey 03/01/197+ - 10/01/1991 $etired F$% 03/197+ p. 2 0

Geor,e 6. Clay 03/01/19+1 - 02/29/197+ $etired F$%:C

. G. eedy 0 /2 /19 1 - 03/01/19+1 $etired %G $ 19 1 p. 22

Geor,e 6. 6amilton 01/07/1932 - 02/2 /19 1 $etired F$%:C

W. (. %ailey 07/01/1922 - 01/07/1932 $etired $ 1922 p. 12

. ?. iller (r. 01/0 /191+ - 07/01/1922 $esi,ned F$%:C

Charles . !a)yer 10/1+/191 - 01/0 /191+ ppt. Chairman

$ - nnual $eportF$% - Federal $eser5e %ulletinF$%:C - Federal $eser5e %an4 o# :ansas City

F-)-R+ R-<-R,- B+N JF R6C7MJN)President Term of office Reason for Termination Source Date Page

e##rey . a"4er 0 /01/0 - present

. l#red %roaddus (r. 01/01/1993 - 07/31/0 $etired F$%$

o;ert . %la"4 0 /0+/1973 - 12/31/92 $etired F$%/F$%$ 0 /1973 p. +0+

u;rey &. 6e#lin 0 /01/19+ - 01/1+/1973 Died in o##i"e F$% 01/1973 p. 3

d)ard . Wayne 03/01/19+1 - 03/31/19+ $etired $ 19+ p. 17

u,h ea"h 03/12/193+ - 02/2 /19+1 $etired F$% 03/19+1 p. 302

Geor,e (. !eay 10/0 /191 - 02/29/193+ $etired F$%$

$ - nnual $eportF$% - Federal $eser5e %ulletinF$%$ - Federal $eser5e %an4 o# $i"hmond





F-)-R+ R-<-R,- B+N JF <T% J;6<resident Term o# o##i"e $eason #or Termination !our"e Date a,e

ames %ullard 0 /01/200 - present

William oole 03/23/199 - 03/31/200 $etired

Thomas C. el er 0+/01/19 - 01/31/199 $esi,ned

Theodore 6. $o;erts 02/01/19 3 - 12/31/19 $esi,ned $ 19 p. 2

a)ren"e :. $oos 03/22/197+ - 01/31/19 3 $etired $ 19 3 p. 3

Darryl $. Fran"is 01/17/19++ - 02/29/197+ $etired F$% 03/197+ p. 2 0

arry . !hu#ord 10/01/19+2 - 01/1+/19++ $esi,ned F$% 01/19++ p. 3

Delos C. (ohns 02/01/19 1- 02/2 /19+2 $etired F$% 03/19+2 p. 300

Chester C. Da5is 0 /1+/19 1 - 02/01/19 1 $esi,ned F$% 02/19 1 p. 1+3

Wm. "C. artin 01/1+/1929 - 02/2 /19 1 $etired %G $ 19 1 p. 21

Da5id C. %i,,s 02/0 /1919 - 12/31/192 $esi,ned F$% 02/1929 p. 9+

olla Wells 10/2 /191 - 02/0 /1919 $esi,ned $ 1919 p. 1

$ - nnual $eport%G $ - %oard o# Go5ernors nnual $eportF$% - Federal $eser5e %ulletin

F-)-R+ R-<-R,- B+N JF <+N FR+NC6<CJresident Term of office Reason for Termination Source Date Page

anet . 'ellen 0+/1 /200 - present

o;ert T. arry 02/0 /19 + - 0+/01/200 $etired F$%!F

ohn (. %alles 09/2 /1972* - 02/01/19 + $etired

liot (. !)an 03/01/19+1 - 0+/01/1972 $etired F$% 10/1972 p. 9 2

. &. an,els 03/01/19 + - 02/2 /19+1 $etired F$% 03/19+1 p. 302

C. . arhart 10/17/19 + - 03/01/19 + $etired F$%!F ress$elease 02/197+

ra Cler4 01/01/19 + - 09/2 /19 + Died in o##i"e F$% 10/19 + p. 11 2

William . Day 0 /01/193+ - 12/31/19 $etired F$% 01/19 + p. 32

ohn @. Cal4ins 0 /0+/1919**- 02/29/193+ $etired F$% 03/193+ p. 111

ames :. yn"h 0 /07/1917 - 0 /2+/1919 Died in o##i"e $ 1919 p. 1

r"hi;ald :ains 11/2 /191 - 07/0 /1917 $esi,ned $ 1917 p. 29

* %io,raphy "ompiled ;y Fran4 <A%rien o# the %oard o# Go5ernors** /2/1919 - $ 1919 p. 99

$ - nnual $eportF$% - Federal $eser5e %ulletinF$%!F - Federal $eser5e %an4 o# !an Fran"is"o

=ote7 *arriner $. ccles was a member of the board of directors of Planned Parenthood World Po#ulation.



1ouncil on 4oreign "elations *embers in the 4ederal "eser eoar# of o4ernorsPaul Warburg ( +- 9)0lbert $trauss ( 9- 6<)

ugene *eyer ( <- )"al#h W. *orrison ( /)!homas *c1abe ( +9- > )William *c1. *artin ;r. ( > - :<)

0ndrew 4. Brimmer ( //- :+)0rthur 4. Burns ( :<- :9)"obert 1. olland ( : - :/)

enry 1. Wallich ( :+- 9/)@. William *iller ( :9- : )=ancy . !eeters ( :9- 9+)

mmett ;. "ice ( : - 9/)Paul 0. Aolcker ( : - 9:)0lan @reens#an ( 9:-6<</)0lan $. Blinder ( +- /)0lice *. "i lin ( /- )"oger W. 4erguson ( :-6<</)Daniel E. !arullo (6<< -#resent)anet L. &ellen ( +- :, 6< <-#resent)erome . Powell (6< 6-#resent)

$tanley 4ischer (6< +-#resent)Lael Brainard (6< +-#resent)

Chairman of the Fe#eral 6eser4eugene *eyer ( <- )

!homas B. *c1abe ( +9- > )William *c1. *artin ;r. ( > - :<)0rthur 4. Burns ( :<- :9)@. William *iller ( :9- : )

Paul 0. Aolcker ( : - 9:) 0lan @reens#an ( 9:-6<</);anet L. &ellen (6< +-#resent)

9i+e Chairman of the Fe#eral 6eser4ePaul Warburg ( /- 9)0lbert $trauss ( 9- 6<)

dmund Platt ( 6<- <)4rederick . $chult2 ( : - 96)

0lan $. Blinder ( +- /) 0lice *. "i lin ( /- )"oger W. 4erguson ( -6<</)Donald L. Eohn (6<</-6< <);anet L. &ellen (6< <-6< +)$tanley 4ischer (6< +-#resent)

Fe#eral 6eser4e ank of 5ew ;orkWilliam 1. Dudley Q President1hristine *. 1umming Q 4irst Aice President!errence ;. 1hecki Q 3ecuti e Aice President@lenn . utchins Q Director (1lass B)

=ote7 !he 1hairman of the 4ederal "eser e isalso the 1hairman of the 4ederal F#en *arket1ommittee5 the President of the 4ederal "eser eBank of =ew &ork is the Aice 1hairman of the4ederal F#en *arket 1ommittee.

=ote7 !he #osition of President of the 4ederal"eser e Bank of =ew &ork was called O@o ernorof the 4ederal "eser e Bank of =ew &ork from

+ to /.

4ederal "eser e Bank of Boston70lfred L. 0iken Q President of the 4ederal "eser e Bank of Boston ( +- :)"al#h . 4landers Q President of the 4ederal "eser e Bank of Boston ( ++- +/)Laurence 4. Whittemore Q President of the 4ederal "eser e Bank of Boston ( +/- +9)

"ichard 4. $yron Q President of the 4ederal "eser e Bank of Boston ( 9 - +)

0lbert *. 1reighton Q 1hairman of the 4ederal "eser e Bank of Boston ( +6- ><)"obert 1. $#rague Q 1hairman ( >/- /<) and De#uty 1hairman ( >>) of the 4ederal "eser e Bank of Boston=ils &. Wessell Q 1hairman ( / - /6) and De#uty 1hairman ( > - /<) of the 4ederal "eser e Bank of Boston

rwin D. 1anham Q 1hairman ( / - /:) and De#uty 1hairman ( / - /6) of the 4ederal "eser e Bank of Bostonoward W. ;ohnson Q 1hairman of the 4ederal "eser e Bank of Boston ( /9- / )

Louis W. 1abot Q 1hairman ( :>- :9) and De#uty 1hairman ( : - :>) of the 4ederal "eser e Bank of Boston"ichard =. 1oo#er Q 1hairman ( <- 6) and De#uty 1hairman ( 99- 9 ) of the 4ederal "eser e Bank of Boston

Donald E. Da id Q De#uty 1hairman ( +:) and 1lass 1 Director ( +/- +:) of the 4ederal "eser e Bank of Boston;ames ". Eillian ;r. Q De#uty 1hairman ( >/) and 1lass 1 Director ( >+- >/) of the 4ederal "eser e Bank of Boston1harles W. 1ole Q De#uty 1hairman ( /:- /9) and 1lass 1 Director ( //- /9) of the 4ederal "eser e Bank of Boston

Warren B. "udman Q De#uty 1hairman ( - +) and 1lass 1 Director ( - +) of the 4ederal "eser e Bank of Boston

Laurence 4. Whittemore Q 1lass B Director of the 4ederal "eser e Bank of Boston ( ++- +>)Earl !. 1om#ton Q 1lass 1 Director of the 4ederal "eser e Bank of Boston ( > - > )*ilton P. iggins Q 1lass B Director of the 4ederal "eser e Bank of Boston ( >/- /6)

*atina $. orner Q 1lass B Director of the 4ederal "eser e Bank of Boston ( 9 - 99)*arshall =. 1arter Q 1lass 0 Director of the 4ederal "eser e Bank of Boston ( /- 9)"obert ". @lauber Q 1lass B Director of the 4ederal "eser e Bank of Boston ( /-6<< )Frit @adiesh Q 1lass B Director of the 4ederal "eser e Bank of Boston (6<<<-6<<6)"obert E. Eraft Q 1lass B Director of the 4ederal "eser e Bank of Boston (6<< -6< <)





4 D "0L " $ "A B0=E F4 = W &F"E

resi#ent of the Fe#eral 6eser4e ank of5ew ;ork

BenKamin $trong ( +- 69)@eorge L. arrison ( 69- +<)0llan $#roul ( + - >/)0lfred ayes ( >/- :>)

Paul 0. Aolcker ( :>- : )0nthony *. $olomon ( 9<- 9+)

. @erald 1orrigan ( 9>- )William ;. *cDonough ( -6<< )amie B. $tewart (6<< ) MactingN

!imothy 4. @eithner (6<< -6<< )William 1. Dudley (6<< -#resent)

Chairman of the Fe#eral 6eser4e ank of5ew ;ork

Pierre ;ay ( +- 6/)@ates *c@arrah ( 6:- <)Fwen D. &oung ( 9- +<)Beardsley "uml ( + - +/);ay . 1rane ( > - >/);ohn . Bierwirth ( >:- > )Phili# D. "eed ( /<- />)

erett =. 1ase ( //- /9)0lbert Lindsay =ickerson ( / - : )"oswell L. @il#atric ( :6- :>)"obert untington Enight ( :9- 96)

;ohn Brademas ( 9 - 9:);ohn ". F#el ( 9:- 99)1yrus ". Aance ( 9 - )llen A. 4utter ( 6- )

*aurice ". @reenberg ( +- >);ohn 1. Whitehead ( /- )Peter @. Peterson (6<<<-6<< );ohn . $e3ton (6<<+-6<</);erry 8. $#eyer (6<<:)$te#hen 4riedman (6<<9)Lee 1. Bollinger (6< -6< 6)

<eput! Chairman of the Fe#eral 6eser4eank of 5ew ;ork@eorge 4. Peabody ( /- 6 )Fwen D. &oung ( 6:- :)Beardsley "uml ( 9- +<)

dmund . Day ( +<- + )William 8. *yers ( + - >+)4orrest 4. ill ( >>- /<)

erett =. 1ase ( />);ames *. ester ( / - :<)"oswell L. @il#atric ( : )"obert untington Enight ( :/- ::)

1lifton ". Wharton ;r. ( 9+- 9/)llen A. 4utter ( 9 - )

*aurice ". @reenberg ( 6- )Da id 0. amburg ( +- >);ohn 1. Whitehead ( >)

!homas W. ;ones ( /- 9)Peter @. Peterson (=o ember 9- )1harles 0. eimbold ;r. (6<<<-6<< )

@erald *. Le in (=o ember 6<< -6<<6);ohn . $e3ton (6<< );erry 8. $#eyer (6<<+-6<</)Lee 1. Bollinger (6< <)

Directors of the 4ederal "eser e Bank of =ew &ork7William B. !hom#son Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( +- )@eorge 4. Peabody Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( +- 6 )Pierre ;ay Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( +- 6/);ames $. 0le3ander Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( - 66)1harles 0. $tone Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( - 66)1larence *. Woolley Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( 6 - /)@ates W. *c@arrah Q Director of the 4ederal "eser e Bank of =ew &ork (1lass 07 6 - 6>, 1lass 17 6:- )Fwen D. &oung Q Director of the 4ederal "eser e Bank of =ew &ork (1lass B7 6 - 6>, 1lass 17 6/- +<)$amuel W. "eyburn Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( 6>- )William . Woodin Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork (0#ril , 6:-*arch , )1harles . *itchell Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( 69- )0lbert . Wiggin Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( 6- )@eorge W. Da ison Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( - :)

!homas ;. Watson Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( - +<)Beardsley "uml Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( :- +/)dmund . Day Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( 9- +6)

Donaldson Brown Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( + - +/)Leon 4raser Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( + - + )William 8. *yers Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( + - >+)1harles . 0dams Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( +>- +9)Winthro# W. 0ldrich Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( +:- + )*arion B. 4olsom Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( + - >6);ay . 1rane Q Director of the 4ederal "eser e Bank of =ew &ork (1lass B7 + - >65 1lass 17 > - >/);ohn 1. !ra#hagen Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( ><- >6)"obert P. Patterson Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( ><- >6)Phili# &oung Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( >6);ohn . Bierwirth Q Director of the 4ederal "eser e Bank of =ew &ork (1lass B7 > - >/5 1lass 17 >:- > )4orrest 4. ill Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( >>- /<)

oward 1. $he#erd Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( >/- >9)enry 1. 0le3ander Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( > - / )Phili# D. "eed Q Director of the 4ederal "eser e Bank of =ew &ork (1lass B7 > 5 1lass 17 /<- />)0lbert Lindsay =ickerson Q Director of the 4ederal "eser e Bank of =ew &ork (1lass B, / - //5 1lass 1, / - : )

erett =. 1ase Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( / - /9)@eorge 1ham#ion Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( /6- /+);ames *. ester Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( />- :<)0rthur E. Watson Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( />- :<)"oswell L. @il#atric Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( / - :>)William D. berle Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( : )0lan Pifer Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( :6- :/)*aurice 4. @ran ille Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( :6- : )

Da id "ockefeller Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork (;anuary , : -December , :/)William $. $neath Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( : - 9<)"obert untington Enight Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( :/- 96)

llmore 1. Patterson Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( ::- : )



@ordon !. Wallis Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( 9<- 96);ohn ". F#el Q Director of the 4ederal "eser e Bank of =ew &ork (1lass B7 9 - 9/, 1lass 17 9:- 99)0lfred Brittain 888 Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( 9 - 9>)

;ohn Brademas Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( 9 - 99)1lifton ". Wharton ;r. Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( 9+- 9/)

;ohn 4. Welch ;r. Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( 9>- <)Lewis !. Preston Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( 9/- 99);ohn 4. *c@illicuddy Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( 99- )llen A. 4utter Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( 99- )1yrus ". Aance Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( 9 - )

*aurice ". @reenberg Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( 9 - >)!homas @. Labrec ue Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( 6- +)

"obert @. Wilmers Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( - 9)$andra 4eldman Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( +- /);. 1arter Bacot Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( >- :)

ugene ". *c@rath Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork ( >-6<<<);ohn 1. Whitehead Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ($e#tember >- )

!homas W. ;ones Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( /- 9)Peter @. Peterson Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork ( /-6<<+)0nn *. 4udge Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork (Fctober /-6<<6)Walter A. $hi#ley Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( 9-6<<<)

"ichard L. 1arrion Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork ( )1harles 0. eimbold ;r. Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork (;uly -6<< )$anford 8. Weill Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork (6<< -6<</);erry 8. $#eyer Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork (6<< -6<<:)

@erald *. Le in Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork (=o ember 6<< -6<< );ill *. 1onsidine Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork (6<<6-6<<:)

"ichard $. 4uld ;r. Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork (6<<6-6<<9)*arta !ienda Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork (6<< -6<<>);ohn . $e3ton Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork (6<< -6<</);ames O;amie Dimon Q 1lass 0 Director of the 4ederal "eser e Bank of =ew &ork (6<<:-6< 6)Lee 1. Bollinger Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork (6<<:-6< 6)$te#hen 4riedman Q 1lass 1 Director of the 4ederal "eser e Bank of =ew &ork (6<<9-6<< );ames $. !isch Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork (6<< -6< 6)@lenn . utchins Q 1lass B Director of the 4ederal "eser e Bank of =ew &ork (6< -#resent)

Fther 3ecuti es of the 4ederal "eser e Bank of =ew &ork7@eorge L. arrison Q De#uty @o ernor of the 4ederal "eser e Bank of =ew &ork ( 6<- 69)W. "andol#h Burgess Q De#uty @o ernor ( <- /) and Aice President ( /- 9) of 4ederal "eser e Bank of =ew &orkL. Werner Enoke Q Aice President of the 4ederal "eser e Bank of =ew &ork (c. - >+)"obert @. "ouse Q Aice President of the 4ederal "eser e Bank of =ew &ork (c. -c. >/);ohn . Williams Q Aice President of the 4ederal "eser e Bank of =ew &ork ( /- +:);ohn 3ter Q Aice President of the 4ederal "eser e Bank of =ew &ork ( >+- > )

0llan $#roul Q 4irst Aice President of the 4ederal "eser e Bank of =ew &ork ( /- +<)"ichard 0. Debs Q 4irst Aice President of the 4ederal "eser e Bank of =ew &ork ( : - :/)

rnest !. Patrikis Q 4irst Aice President of the 4ederal "eser e Bank of =ew &ork ( >- 9)5 3ecuti e Aice President and @eneral1ounsel of 4ederal "eser e Bank of =ew &ork ( 99- >);amie B. $tewart ;r. Q 4irst Aice President of the 4ederal "eser e Bank of =ew &ork ( -6<<+)1hristine *. 1umming Q 4irst Aice President of the 4ederal "eser e Bank of =ew &ork (6<<+-#resent)

$am &. 1ross Q 3ecuti e Aice President of 4ederal "eser e Bank of =ew &ork (c. 9 - )Peter ". 4isher Q 3ecuti e Aice President of 4ederal "eser e Bank of =ew &ork ( +-6<< )!errence ;. 1hecki Q 3ecuti e Aice President of the 4ederal "eser e Bank of =ew &ork (6<< -#resent)

0lan ". olmes Q $enior Aice President of 4ederal "eser e Bank of =ew &ork ( / - :6)

"oger *. Eubarych Q $enior Aice President of 4ederal "eser e Bank of =ew &ork ( :6- 9>);. 0ndrew $#indler Q $enior Aice President of the 4ederal "eser e Bank of =ew &ork ( 9 - )Darryll . endricks Q former $enior Aice President of the 4ederal "eser e Bank of =ew &orkPeter Bakstansky Q $enior Aice President of the 4ederal "eser e Bank of =ew &ork (?-6<<>)1harles 0. 1oombs Q $enior Aice President in charge of foreign function at 4ederal "eser e Bank of =ew &ork ( > - :>)$cott . Pardee Q $enior Aice President for 4oreign 3change at 4ederal "eser e Bank of =ew &ork ( : - 9 )"obert A. "oosa Q Aice President for "esearch De#artment at the 4ederal "eser e Bank of =ew &ork ( >/- /<)Dorothy $obol Q former Aice President for "esearch De#artment at the 4ederal "eser e Bank of =ew &ork

=ote7 1lass 0 Directors are elected by member banks to re#resent member banks, 1lass B Directors are elected by member banks tore#resent the #ublic, and 1lass 1 Directors are a##ointed by Board of @o ernors to re#resent the #ublic.

=ote7 U#ast members of the 1ouncil on 4oreign "elations



)h% Ban4%rs o" th% F%d%ra! %s%r&%

Paul *. Warburg

Aice 1hairman of the 4ederal "eser e (0ugust <, /-0ugust , 9)*ember of the Board of @o ernors of the 4ederal "eser e (0ugust <, +- 0ugust , 9)1o-4ounder of the 4ederal "eser e at ;ekyll 8sland, @eorgia, '.$.0. ( <9)Director, 1o-4ounder, and *ember of the 1ouncil on 4oreign "elations ( 6 - 6)Partner of Euhn, Loeb and 1om#any M;ewish banking firm in =ew &ork 1ityN ( <6- +)Partner of *.*. Warburg and 1om#any M;ewish banking firm in amburg, @ermanyN ( 9 >- <:)*ember of the board of directors of Western 'nion !elegra#h 1om#any*ember of the board of directors of 'nion Pacific "ailroad 1o.*ember of the board of directors of 0merican 8.@. 1hemical 1or#oration

8mmigrated to 0merica in <65 =aturali2ed 0merican citi2en in Brother of *a3 Warburg, chief of *.*. Warburg and 1o. and director of 8.@. 4arben chemical cartelBorn in amburg, @ermany on 0ugust <, 9/95 died in =ew &ork 1ity on ;anuary 6+, 6

BenKamin $trong

@o ernor MPresidentN of the 4ederal "eser e Bank of =ew &ork (Fctober >, +-Fctober /, 69)1o-4ounder of the 4ederal "eser e at ;ekyll 8sland, @eorgia ( <9)President of Banker s !rust of =ew &ork ( +)Aice President of Banker s !rust Mof =ew &orkN ( < - +)*ember of the 1ouncil on 4oreign "elations ( 69)Born December 66, 9:65 Died in =ew &ork 1ity on Fctober /, 69

ugene *eyer

1hairman of the 4ederal "eser e ($e#tember /, <-*ay <, )President of !he World Bank ( +/)1hairman of the board of !he Washington Post 1o. ( +:- > )Publisher of The (ashington #ost ( - +/)4arm Loan 1ommissioner (De#artment of the !reasury) ( 6:- 6 )*ember of the 1ouncil on 4oreign "elations ( <- >9)B.0. &ale 9 >4ather of former Washington Post 1o. 1hairman Eatharine @raham@randfather of Washington Post 1o. 1hairman Donald @rahamBorn in Los 0ngeles on Fctober , 9:>5 Died in Washington, D.1. on ;uly :, >

William *c1hesney *artin ;r.

1hairman of the 4ederal "eser e (0#ril 6, > -;anuary , :<) 0ssistant '.$. $ecretary of the !reasury for 8nternational 0ffairs ( + - > )1hairman and President of 3#ort-8m#ort Bank of the 'nited $tates ( +>- + )President of =ew &ork $tock 3change ( 9- + )*ember of =ew &ork $tock 3change ( - 9)Partner of 0.@. dwards % $ons M$t. LouisN ( - 9)*ember of the 1ouncil on 4oreign "elations ( +:- >)!rustee of &ale 'ni ersity ( /9- :+)'.$. 0rmy officer during World War 884ormer *ember of the board of directors of 0merican 3#ress, 1ater#illar !ractor, Dow ;ones % 1o.,8nternational Business *achines (8B*), '.$. $teel 1or#., li Lilly, and "oyal Dutch PetroleumB.0. &ale 69Born in $t. Louis, *issouri on December :, </5 Died in Washington, D.1. on ;uly 69, 9

0rthur 4rank Burns

1hairman of the 4ederal "eser e (4ebruary , :<-;anuary , :9)

'.$. 0mbassador to West @ermany (;une <, 9 -*ay /, 9>)1ounselor to the President of the '.$. M"ichard =i3onN ( / - :<)1hairman of =ational Bureau of conomic "esearch ( /:- /9)President of =ational Bureau of conomic "esearch ( >:- /:)1hairman of the 1ouncil of conomic 0d isers ( > - >/)Professor of conomics at 1olumbia 'ni ersity ( ++- / )*ember of the 1ouncil on 4oreign "elations ( /<- 9/)4ormer *ember of the !rilateral 1ommissionPh.D. 1olumbia 'ni ersity +5 B.0. 1olumbia 'ni ersity 6>Born in 8 ano-4ranki sk, 'kraine Mformerly 0ustria- ungaryN on 0#ril 6:, <+5 Died ;une 6/, 9:



Paul 0dol#h Aolcker

1hairman of the 4ederal "eser e (0ugust /, : Q0ugust , 9:)President of the 4ederal "eser e Bank of =ew &ork (*ay 6, :>Q0ugust >, : )'nder $ecretary of the !reasury for *onetary 0ffairs ( / - :+)Aice President of 1hase *anhattan Bank ( />- /9)Bilderberg *eetings #artici#ant ( 96- 9 , 9/- 99, 6, :)=orth 0merican 1hairman of !he !rilateral 1ommission ( -6<< )=orth 0merican onorary 1hairman of the !rilateral 1ommission (6<< -#resent)1hairman of the Board of !rustees of the @rou# of !hirty (@- <)Director of the 8nstitute for 8nternational conomics*ember of the Bretton Woods 1ommittee*ember of the 1ouncil on 4oreign "elations ( :<-#resent)

Director of the 1ouncil on 4oreign "elations ( :>- : , 99- ) 0.B. summa cum laude Princeton 'ni ersity + 5 *.0. ar ard >Postgraduate student at London $chool of conomics ( > - >6)Born in =ew ;ersey on $e#tember >, 6:

$ir 0lan @reens#an

1hairman of the 4ederal "eser e (0ugust , 9:Q;anuary , 6<</)1hairman of the =ational 1ommission on $ocial $ecurity "eform ( 9 - 9 )1hairman of the 1ouncil of conomic 0d isors ( :+- ::)*ember of President s 4oreign 8ntelligence 0d isory Board ( 9 - 9>)*ember of President s conomic Policy 0d isory Board ( 9 - 9:)*ember of the 1ouncil on 4oreign "elations ( :9-#resent)Director of the 1ouncil on 4oreign "elations ( 96- 99)4ormer *ember of the @rou# of !hirty (@- <)4ormer *ember of the !rilateral 1ommissionBilderberg *eetings #artici#ant (6<<6)4ormer *ember of the Bohemian @ro e in 1alifornia*arried to =B1 Kournalist 0ndrea *itchellPh.D. =ew &ork 'ni ersity ::5 *.0. =ew &ork 'ni ersity ><

0warded the onorary Enight 1ommander of the British m#ire (6<<6)Born in =ew &ork 1ity on *arch /, 6/

Ben $halom Bernanke

1hairman of the 4ederal "eser e (4ebruary , 6<</-;anuary , 6< +)1hairman of the 1ouncil of conomic 0d isers (6<<>-6<</)*ember of the Board of @o ernors of the 4ederal "eser e (6<<6-6<<>, 6<</-6< +)Professor of conomics and Public 0ffairs at Princeton 'ni ersity ( 9>-6<<6)Bilderberg *eetings #artici#ant (6<<9)B.0. summa cum laude ar ard :>5 Ph.D. *assachusetts 8nstitute of !echnology :Born in 0ugusta, @eorgia, '.$.0. on December , > 5 raised in Dillon, $outh 1arolina, '.$.0.

@eorge L. arrison

President of the 4ederal "eser e Bank of =ew &ork (=o ember 66, 69-December , +<)De#uty @o ernor of the 4ederal "eser e Bank of =ew &ork ( 6<- 69)@eneral 1ounsel of the 4ederal "eser e Board ( - 6<)President of =ew &ork Life 8nsurance 1o. ( + - +9)1hairman of the board of =ew &ork Life 8nsurance 1o. ( +9- >+)*ember of the 1ouncil on 4oreign "elations ( 6 - > )*ember of $kull % Bones at &ale 'ni ersity*ember of the Pilgrims $ocietyB.0. &ale <5 LL.B. ar ard Born in $an 4rancisco on ;anuary 6/, 99:5 Died in Washington, D.1. on *arch >, >9

0llan $#roul

President of the 4ederal "eser e Bank of =ew &ork (;anuary , + -;une <, >/)4irst Aice President of the 4ederal "eser e Bank of =ew &ork ( /- +<)*ember of the 1ouncil on 4oreign "elations ( >- >>)4ormer *ember of the Bohemian @ro e in 1aliforniaB.$. 'ni ersity of 1alifornia at Berkeley Born in $an 4rancisco on *arch , 9 /5 Died 0#ril , :9

0lfred ayes

President of the 4ederal "eser e Bank of =ew &ork (0ugust , >/-0ugust , :>)1hairman of *organ $tanley 8nternational 8nc. ( :>- 9 )Aice President of the =ew &ork !rust 1om#any ( + - >/)*ember of the 1ouncil on 4oreign "elations ( +9- 9>)1hairman of the conomic 1lub of =ew &ork ( />- //)4ormer *ember of the Pilgrims $ociety"hodes $cholar at F3ford 'ni ersityB.0. &ale <5 B.Litt. F3ford Born in 8thaca, =ew &ork on ;uly +, <5 Died in =ew 1anaan, 1onnecticut on Fctober 6 , 9



0nthony *. $olomon

President of the 4ederal "eser e Bank of =ew &ork (0#ril , 9<-December , 9+)'nder $ecretary of the !reasury for *onetary 0ffairs ( ::- 9<)

0ssistant $ecretary of $tate for conomic 0ffairs ( />- / )4ormer 1hairman of $.@. Warburg 8nc. ('.$.0.)*ember of the 1ouncil on 4oreign "elations ( //-6<<:)4ormer *ember of the !rilateral 1ommissionBilderberg *eetings #artici#ant ( :9)Ph.D. ar ard ><5 B.0. 'ni ersity of 1hicago +Born in =ew ;ersey on December 6:, 5 Died in =ew &ork 1ity on ;anuary 9, 6<<9

. @erald 1orrigan

President of the 4ederal "eser e Bank of =ew &ork (;anuary , 9>-;uly , )President of the 4ederal "eser e Bank of *innea#olis ( 9<- 9+)*anaging Director of @oldman $achs ( :-#resent)*ember of the 1ouncil on 4oreign "elations ( 9/- :)Director of the 1ouncil on 4oreign "elations ( - >)Bilderberg *eetings #artici#ant ( +)*ember of the !rilateral 1ommission*ember of the conomic 1lub of =ew &orkPh.D. 4ordham 'ni ersity :Born in Waterbury, 1onnecticut on ;une , +

William ;. *cDonough

President of the 4ederal "eser e Bank of =ew &ork (;uly , -;une , 6<< )1hairman of the Public 1om#any 0ccounting F ersight Board (6<< -6<<>)Aice 1hairman of *errill Lynch % 1o. (6<</-#resent)

Aice 1hairman of 4irst 1hicago 1or#. and 4irst =ational Bank of 1hicago ( 9/- 9 )*ember of the 1ouncil on 4oreign "elations ( :>-#resent)Director of the 1ouncil on 4oreign "elations ( >-6<<+)4ormer *ember of the !rilateral 1ommissionBilderberg *eetings #artici#ant ( :-6<<<, 6<<6, 6<<+, 6<<9)1hairman of the conomic 1lub of =ew &ork ( /-6<<<)*.0. @eorgetown 'ni ersity /6Born on 0#ril 6 , +

!imothy 4ran2 @eithner

$ecretary of the !reasury (;anuary 6/, 6<< Q;anuary 6>, 6< )President of the 4ederal "eser e Bank of =ew &ork (=o ember :, 6<< Q;anuary 6/, 6<< )'nder '.$. $ecretary of the !reasury for 8nternational 0ffairs ( :-6<< )*ember of the @rou# of !hirty (@- <)*ember of the 1ouncil on 4oreign "elations ( /-#resent)

4ormer *ember of the !rilateral 1ommissionBilderberg *eetings #artici#ant (6<<+-6<<9)B.0. Dartmouth 9 5 *.0. ;ohns o#kins 'ni ersity 9>Born in =ew &ork 1ity on 0ugust 9, /

*ichael . *oskow

President of the 4ederal "eser e Bank of 1hicago ( +-6<<:)De#uty '.$. !rade "e#resentati e ( - )'nder '.$. $ecretary of Labor ( :/- ::)4ormer 1hairman of !he conomic 1lub of 1hicago*ember of the 1ouncil on 4oreign "elations ( /-#resent)Director of the 1ouncil on 4oreign "elations ( 9-6<<9)Bilderberg *eetings #artici#ant (6<< -6<<6)Ph.D. 'ni ersity of Pennsyl ania />

Born in =ew ;ersey on ;anuary :, 9

"oger W. 4erguson ;r.

Aice 1hairman of the 4ederal "eser e (Fctober >, -0#ril 69, 6<</)1hairman of the conomic 1lub of =ew &ork (6< 6-#resent)President and 1 F of !800-1" 4 (6<<9-#resent)1hairman of $wiss "e 0merica olding 1or#oration (6<</-6<<9)*ember of the 1ouncil on 4oreign "elations (6<<+-#resent)*ember of the !rilateral 1ommission (c.6<<>-#resent)!rustee of 1arnegie ndowment for 8nternational Peace (6<<9-#resent)Ph.D. ar ard 9 5 ;.D. ar ard : 5 B.0. ar ard :Born in Washington, D.1. on Fctober 69, >



0 co#y of the O4ederal "eser e =ote , a bank note #roduced by the 4ederal "eser e




+ (opy of an +meri(an oneGdollar 1ill that is issued as a 2<ilver Certifi(ate9% This oneGdollar 1ill is re2(ertifi(ate9 as opposed to a 2note%9

2Throughout the ages! national governments have had a (hroni( tenden(y to engage in a(tivities that outstrip the ta3willing or a1le to (olle(t a pra(ti(e that was fa(ilitated in earlier times 1y (lipping pre(ious (oins and in modern time3(essive printing of paper money and (oer(ion of (entral 1anks% To afford a measure of prote(tion against su(h poa1uses! the authors of the Federal Reserve +(t provided for an independent (entral 1ank! and their a(tion while at5uestioned has 1een (onfirmed time and again 1y the Congress% 6n other words! su1stantial independen(e in e3over money (reation is not something that Federal Reserve offi(ials have arrogated unto themselves! nor is it sometothers have (onferred 1e(ause of a 1elief that (entral 1ankers have uni5ue insight that sets them apart from other pethe a1ility of the Federal Reserve to a(t with some independen(e from the e3e(utive 1ran(h! and also with immunitytransient (ongressional pressures! was deli1erately esta1lished and has 1een deli1erately maintained 1y the Congresinterest of prote(ting the integrity ofour money%9

+rthur F% Burns! Chairman of the Federal Reserve! in his spee(h to the National *ress Clu1 in 'anuary H=

<our(e:The &entral anks 1y Mar4orie )eane and Ro1ert *ringle! p% ""



/<our(e:http:@@rageman(hoo%tripod%(om@ dollarZ ">Z<ilverCert%4pg0/<our(e:http:@@rageman(hoo%tripod%(om@us(urren(y%html0

http://ragemanchoo.tripod.com/1dollar_1923_SilverCert.jpg

http://ragemanchoo.tripod.com/uscurrency.html

http://ragemanchoo.tripod.com/1dollar_1923_SilverCert.jpg






/<our(e:http:@@rageman(hoo%tripod%(om@ ####dollarZ =="Z.oldCert%4pg0/<our(e:http:@@rageman(hoo%tripod%(om@us(urren(y%html0

http://ragemanchoo.tripod.com/10000dollar_1882_GoldCert.jpg






/<our(e:http:@@rageman(hoo%tripod%(om@ ####dollarZ =ZFedReserveNote%4pg0/<our(e:http:@@rageman(hoo%tripod%(om@us(urren(y%html0

http://ragemanchoo.tripod.com/10000dollar_1918_FedReserveNote.jpg


http://ragemanchoo.tripod.com/10000dollar_1918_FedReserveNote.jpg




/<our(e:http:@@rageman(hoo%tripod%(om@"#dollarZ "=Z.oldCert%4pg0/<our(e:http:@@rageman(hoo%tripod%(om@us(urren(y%html0







+ (opy of an +meri(an P ## 1ill gold (ertifi(ate! printed in "=%

/<our(e:http:@@usrare(urren(y%(om@ "=P ##.oldCertifi(ateFR"$#L*M.+;L=<n+##$= L> +%htm0

http://usrarecurrency.com/1928$100GoldCertificateFR2405PMGAU58SnA00486531A.htm

http://usrarecurrency.com/1928$100GoldCertificateFR2405PMGAU58SnA00486531A.htm



Knighthoo# for Fe# s reenspanhursday, $e#tember 6/, 6<<6 Posted7 +7>/ P* D! (6<>/ @*!)

LI5<I5, ?nglan# (C55" 00 -. . Fe#eral 6eser4e Chairman 8lan reenspan has re+ei4e# an honorar! knighthoo#from ritain s ueen ?li:abeth DD.

!he honour, recommended by the 'E 4oreign Fffice and a##ro ed by the Tueen in 0ugust, is in recognition of @reens#anIs Hcontribution toglobal economic stability.H

@reens#an, :/, has been dubbed the second most #owerful man in 0merica and has steered the countryIs economy through four#residencies.

H8tIs a ery unusual day for an economist,H he said, as he recei ed the knighthood at the ueenIs Balmoral estate in the $cottish ighlands.

H8 am dee#ly a##reciati e of this honour which 8 shall always cherish,H he said.

e Koked with the Tueen and her husband, Prince Phili#, saying he was tired because the HBritish @o ernment #ut me to work yesterday.H

e arri ed in London on Wednesday and made a series of s#eeches to business leaders and dignitaries at both the !reasury and the Bank ofngland about the im#act of the euro.

London was still at the Hto# of the financial #yramidH with =ew &ork, he said, des#ite #redictions that foreign e3change trading would shift tothe 1ontinent following the introduction of the euro.

@reens#an was honoured by the @o ernor of the Bank of ngland, $ir dward @eorge, and British 1hancellor @ordon Brown at a dinner onWednesday night.

@reens#an cannot call himself H$irH since he is not a 'E citi2en.

owe er, he will be able to add the letters EB -- which stand for Enight 1ommander of the British m#ire -- after his name.

8t is an honour shared by former '.$. President "onald "eagan, former '.$. President @eorge Bush, former =ew &ork *ayor "udy @iuliani,entertainer Bob o#e and '.$. @en. =orman $chwar2ko#f.

@reens#an was decorated with the #restigious 4rench Legion of onour (1ommander) in 6<<<.

e has also recei ed honorary degrees from ar ard, &ale, Pennsyl ania, Leu en (Belgium), =otre Dame, Wake 4orest and 1olgateuni ersities.

!he son of a stockbroker and a retail worker, he took u# his current #ost in 9: and has ke#t his #osition through the #residencies of "eagan,Bush senior, 1linton and Bush Kunior.

is fourth term as chairman of the 4ederal "eser e Board ends in 6<<+.

<our(e:http:@@ar(hives%(nn%(om@"##"@&JR )@europe@# @" @greenspan%knighthood@inde3%html

http://archives.cnn.com/2002/WORLD/europe/09/26/greenspan.knighthood/index.html

http://archives.cnn.com/2002/WORLD/europe/09/26/greenspan.knighthood/index.html



+bama taps %tanley #ischer, 7ael )rainard for #ed posts

<T+FF@Reuters G + (om1ination of file photos of /left to right0 <tanley Fis(her8 ael Brainard8 and 'erome *owe

J1ama has nominated all three for Federal Reserve posts%;Bote4 #ischer, )rainard, and 2owell are members of the (ouncilon #oreign $elations, a private organi'ation in Bew Dork (ity.?

By Va(hary +% .oldfar1! *u1lished: 'anuary #! "# $

*resident J1ama on Friday took another signifi(ant step toward making his mark on the powerful Federalannoun(ing he will tap<tanley Fis(her ! the former governor of 6sraelEs (entral 1ank and a mentor to many otop minds in e(onomi(s! to serve as the FedEs vi(e (hairman%

Jnly days after the <enate (onfirmed J1amaEs nominee to lead the Fed! (urrent ,i(e Chair 'anet % Yellen! the

president also announ(ed he would nominateael Brainard! a longtime )emo(rati( e(onomi( poli(ymaker and tTreasury )epartmentEs former top diplomat! to serve as a Fed governor% 7e also is nominating 'erome *o(urrent Fed governor who served in .eorge 7%&% BushEs administration! for a se(ond term%

.iven the <enateEs re(ent de(ision to lower the vote threshold for nonG<upreme Court nominations! all thare likely to 4oin the Fed over the (oming months% +s a result! J1ama will have fully shaped the Fed in tyears of his presiden(y when e(onomi( progress might depend as mu(h on what the (entral 1ank does asanything he is a1le to a((omplish if Congress (ontinues to prove resistant to new legislation%

2These three distinguished individuals have the proven e3perien(e! 4udgment and deep knowledge of thesystem to serve at the Federal Reserve during this important time for our e(onomy!9 J1ama said in a state

2<tanley Fis(her 1rings de(ades of leadership and e3pertise from various roles! in(luding serving at the 6Monetary Fund and the Bank of 6srael!9 J1ama added% 27e is widely a(knowledged as one of the worldmost e3perien(ed e(onomi( poli(y minds%9

Fed Chairman Ben <% Bernanke is e3pe(ted to step down at the end of the month and 1e repla(ed 1y Yeldespite the highGprofile turnover! the Fed is not e3pe(ted to (hange dire(tion! either when Yellen takes thFis(her and Brainard 4oin%

&ith the unemployment rate at %H per(ent! the Fed is starting to wind down its e3traordinary stimulus month! it announ(ed it would slow its monthly 1ond pur(hases to PHL 1illion per month! a modest P # 1

month redu(tion that finan(ial markets seemed to digest easily%

http://www.washingtonpost.com/zachary-a-goldfarb/2011/03/09/AB1OHIQ_page.html


http://www.washingtonpost.com/blogs/wonkblog/wp/2013/12/11/four-reasons-stan-fischer-makes-sense-for-the-fed/

http://www.washingtonpost.com/business/economy/janet-yellen-confirmed-as-next-fed-chief/2014/01/06/14b38582-76f2-11e3-8963-b4b654bcc9b2_story.html


http://www.washingtonpost.com/business/economy/sources-white-house-considers-top-female-treasury-official-for-post-at-federal-reserve/2013/09/08/793b144e-1882-11e3-82ef-a059e54c49d0_story.html



http://www.washingtonpost.com/blogs/wonkblog/wp/2013/12/11/four-reasons-stan-fischer-makes-sense-for-the-fed/





Fed offi(ials have suggested they would stop asset pur(hases 1y the end of the year! though whether the sitself would 1e tempered was an open 5uestion after FridayEs report thata meager H$!### 4o1s were (reated lasmonth%

+s governor of 6sraelEs (entral 1ank! Fis(her was (redited with keeping the (ountryEs e(onomy sta1le thrglo1al finan(ial (risis of "##H through "## % 7e has also spent time as a senior offi(ial at the 6nternationFund and the &orld Bank and worked in the private se(tor at Citigroup% 7e was a longtime professor at Mhe taught Bernanke and many other top e(onomists%

Brainard spent a1out four years as TreasuryEs underse(retary for international affairs! its top offi(ial fo(ue(onomi( and finan(ial poli(y% 6n that role! she helped manage the ;%<% response to the sovereign de1t-urope and e(onomi( affairs with China and other key (ountries% <he also worked at the Brookings 6nstithe Clinton administration% <he was a professor at M6T early in her (areer%

2 ael Brainard has served as one of my top and most trusted international e(onomi( advisers during a (hatime not 4ust at home! 1ut for our glo1al e(onomy as well! and her knowledge of international monetary issues will 1e an important addition to the Fed!9 J1ama said in the statement%

*owell 4oined the Fed in "# " after a (areer that in(luded time as a lawyer! an investment 1anker and a to

offi(ial in .eorge 7%&% BushEs administration% 7e also was a s(holar at the Bipartisan *oli(y Center%<our(e:&ashington *ost

4ormer '.$. $ecretary of the !reasury Lawrence $ummers (left), former @o ernor of the Bank of 8srael $tanley 4ischer (6 nd left), 4ederal"eser e 1hairman Ben Bernanke (6 nd right), and 8*4 "esearch De#artment Director Fli ier Blanchard #artici#ate in an economic forum onHPolicy "es#onses to 1risesH at the 8nternational *onetary 4und head uarters in Washington, D.1. on =o ember 9, 6< . !he forum was #artof the fourteenth ;ac ues Polak 0nnual "esearch 1onference. $tanley 4ischer was a##ointed Aice 1hairman of the 4ederal "eser e in;anuary 6< +. Ben Bernanke finishes his term as 1hairman of the 4ederal "eser e at the end of ;anuary 6< +. Lawrence $ummers, $tanley4ischer, and Ben Bernanke ha e attended the Bilderberg *eetings in the #ast. (Photo7 1hi# $omode illaC@etty 8mages =orth 0merica)

http://www.washingtonpost.com/business/economy/economy-added-74000-jobs-in-weak-december-report-jobless-rate-down-to-67percent/2014/01/10/3b2b82c6-7960-11e3-8963-b4b654bcc9b2_story.html



http://www.washingtonpost.com/business/economy/obama-taps-fischer-brainard-for-fed-posts/2014/01/10/5f48e728-7a1b-11e3-af7f-13bf0e9965f6_story.html



http://www.washingtonpost.com/business/economy/obama-taps-fischer-brainard-for-fed-posts/2014/01/10/5f48e728-7a1b-11e3-af7f-13bf0e9965f6_story.html





6 Bank 3amination

66 Fffenses of 3aminers, *ember Banks, Ffficers, and Directors

6 8nterbank Liabilities

6 0 "elations with 0ffiliates

6 B "estrictions on !ransactions with 0ffiliates

6+ "eal state Loans6+0 8n estment in Bank Premises or $tock of 1or#oration olding Premises

6> 4oreign Branches

6>0 Banking 1or#orations 0uthori2ed to Do 4oreign Banking Business

6>B ;urisdiction of $uits

6>1 Potential Liability on 4oreign 0ccounts

6/ M"e#ealedN

6: !a3 on =ational Bank =otes

69 "eduction of 1a#ital of =ational Banks

6 1i il *oney Penalty

< $a ing 1lause

"eser ation of "ight to 0mend

Last up#ate7 8ugust 3, *>>1

<our(e:http:@@www%federalreserve%gov@a1outthefed@fra(t%htm

%ection /. %hort Title and Cefinitions

. $hort !itleBe it enacte %y the 'enate an &ouse of -epresentati,es of the nite 'tates of America in /ongress assem%!e , !hat the short titleof this 0ct shall be the H4ederal "eser e 0ct.H

M 6 '$1 66/. Part of original 4ederal "eser e 0ct5 not amended.N

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6. Definition of HBankHWhere er the word HbankH is used in this 0ct, the word shall be held to include $tate bank, banking association, and trust com#any,e3ce#t where national banks or 4ederal reser e banks are s#ecifically referred to. 4or #ur#oses of this 0ct, a $tate bank includes anybank which is o#erating under the 1ode of Law for the District of 1olumbia.

M 6 '$1 66 . Part of original 4ederal "eser e 0ct. 0s amended by act of Fct. , 6<</ ( 6< $tat. 6<69). X N

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. Definitions of Fther !erms!he terms Hnational bankH and Hnational banking associationH used in this 0ct shall be held to be synonymous and interchangeable.!he term Hmember bankH shall be held to mean any national bank, $tate bank, or bank or trust com#any which has become a member

of one of the reser e banks created by this 0ct. !he term HboardH shall be held to mean Board of @o ernors of the 4ederal "eser e

http://www.federalreserve.gov/aboutthefed/section21.htm



http://www.federalreserve.gov/aboutthefed/section23a.htm

http://www.federalreserve.gov/aboutthefed/section23b.htm






http://www.federalreserve.gov/aboutthefed/section25c.htm







http://www.federalreserve.gov/aboutthefed/fract.htm

http://www.federalreserve.gov/aboutthefed/section1.htm#_edn1



http://www.federalreserve.gov/aboutthefed/section1.htm#top






































http://www.federalreserve.gov/aboutthefed/fract.htm








$ystem5 the term HdistrictH shall be held to mean 4ederal reser e district5 the term Hreser e bankH shall be held to mean 4ederal reser ebank5 the term Hthe continental 'nited $tatesH means the $tates of the 'nited $tates and the District of 1olumbia.

Back to !o#

+. Definition of HBonds and =otes of the 'nited $tatesH!he terms Hbonds and notes of the 'nited $tates,H Hbonds and notes of the @o ernment of the 'nited $tates,H and Hbonds or notes ofthe 'nited $tatesH used in this 0ct shall be held to include certificates of indebtedness and !reasury bills issued under section <+ oftitle .

M 6 '$1 66 . 0s amended by acts of ;une 6>, > (: $tat. +6) and $e#t. , 96 ( / $tat. <>9). 4or further definitions, see section 6 of Banking 0ct of, a##ro ed ;une /, . $ection 6< (a) of the Banking 0ct of >, a##ro ed 0ug. 6 , > (+ $tat. :<+), #ro ided7 H ereafter the 4ederal "eser e

Board shall be known as the IBoard of @o ernors of the 4ederal "eser e $ystemI, and the go ernor and ice go ernor of the 4ederal "eser e Board shall beknown as the IchairmanI and the I ice chairmanI, res#ecti ely, of the Board of @o ernors of the 4ederal "eser e $ystem.H 0ccordingly, the words H4ederal"eser e BoardH, Hgo ernorH, and H ice go ernorH, where er they formerly a##eared in the 4ederal "eser e 0ct (or in other acts of 1ongress), ha e beenchanged here to read HBoard of @o ernors of the 4ederal "eser e $ystemH, HchairmanH and H ice chairmanH, res#ecti ely, notwithstanding the fact that suchchange has not been made by s#ecific amendment of the law.

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Paragra#h numbers, to#ical headings and notes are not #art of the law and should not be regarded as affecting the construction of the law.

Paragra#h numbers, to#ical headings and notes are not #art of the law and should not be regarded as affecting the construction of the law.

X 0n identical amendment was made by act of Fct. /, 6<</ ( 6< $tat. 6<69).

%ection 1. #ederal $eserve Cistricts

. stablishment of "eser e 1ities and Districts0s soon as #racticable, the $ecretary of the !reasury, the $ecretary of 0griculture and the 1om#troller of the 1urrency, acting as H!he"eser e Bank Frgani2ation 1ommittee,H shall designate not less than eight nor more than twel e cities to be known as 4ederal reser ecities, and shall di ide the continental 'nited $tates, e3cluding 0laska, into districts, each district to contain only one of such 4ederalreser e cities. !he determination of said organi2ation committee shall not be subKect to re iew e3ce#t by the Board of @o ernors of the4ederal "eser e $ystem when organi2ed7 #ro,i e ) !hat the districts shall be a##ortioned with due regard to the con enience andcustomary course of business and shall not necessarily be coterminous with any $tate or $tates. !he districts thus created may be

readKusted and new districts may from time to time be created by the Board of @o ernors of the 4ederal "eser e $ystem, not toe3ceed twel e in all. $uch districts shall be known as 4ederal reser e districts and may be designated by number. When the $tate of0laska or awaii is hereafter admitted to the 'nion the 4ederal "eser e districts shall be readKusted by the Board of @o ernors of the4ederal "eser e $ystem in such manner as to include such $tate. ery national bank in any $tate shall, u#on commencing businessor within ninety days after admission into the 'nion of the $tate in which it is located, become a member bank of the 4ederal "eser e$ystem by subscribing and #aying for stock in the 4ederal "eser e bank of its district in accordance with the #ro isions of this 0ct andshall thereu#on be an insured bank under the 4ederal De#osit 8nsurance 0ct, and failure to do so shall subKect such bank to the #enalty#ro ided by the si3th #aragra#h of this section.

MPartly incor#orated in 6 '$1 666 and 66 . 0s amended by acts of ;uly :, >9 (:6 $tat. ><)5 *arch 9, > (: $tat. 6).N

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6. Powers of Frgani2ation 1ommittee$aid organi2ation committee shall be authori2ed to em#loy counsel and e3#ert aid, to take testimony, to send for #ersons and #a#ers,to administer oaths, and to make such in estigation as may be deemed necessary by the said committee in determining the reser edistricts and in designating the cities within such districts where such 4ederal reser e banks shall be se erally located. !he saidcommittee shall su#er ise the organi2ation in each of the cities designated of a 4ederal reser e bank, which shall include in its title thename of the city in which it is situated, as H4ederal "eser e Bank of 1hicago.H

MFmitted from '.$. 1ode e3ce#t #art of last sentence, which is incor#orated in 6 '$1 66>. Part of original 4ederal "eser e 0ct5 not amended.N

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. $ubscri#tion to $tock by =ational Banksnder regulations to be #rescribed by the organi2ation committee, e ery national banking association in the 'nited $tates is herebyre uired, and e ery eligible bank in the 'nited $tates and e ery trust com#any within the District of 1olumbia, is hereby authori2ed to



http://www.federalreserve.gov/aboutthefed/section1.htm#_ednref1


















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. Limitation on 0mount to Fne $ubscriber =o indi idual, co#artnershi#, or cor#oration other than a member bank of its district shall be #ermitted to subscribe for or to hold at anytime more than G6>,<<< #ar alue of stock in any 4ederal reser e bank. $uch stock shall be known as #ublic stock and may betransferred on the books of the 4ederal reser e bank by the chairman of the board of directors of such bank.

M 6 '$1 69 . Part of original 4ederal "eser e 0ct5 not amended.N

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<. $tock 0llotted to 'nited $tates$hould the total subscri#tions by banks and the #ublic to the stock of said 4ederal reser e banks, or any one or more of them, be, inthe Kudgment of the organi2ation committee, insufficient to #ro ide the amount of ca#ital re uired therefor, then and in that e ent thesaid organi2ation committee shall allot to the 'nited $tates such an amount of said stock as said committee shall determine. $aidnited $tates stock shall be #aid for at #ar out of any money in the !reasury not otherwise a##ro#riated, and shall be held by the$ecretary of the !reasury and dis#osed of for the benefit of the 'nited $tates in such manner, at such times, and at such #rice, not lessthan #ar, as the $ecretary of the !reasury shall determine.

MFmitted from '.$. 1ode. Part of original 4ederal "eser e 0ct5 not amended. 8n a communication from the Board of @o ernors of the 4ederal "eser e $ystemdated *arch :, + , it was stated, H0s originally enacted the 4ederal "eser e 0ct #ro ided for a "eser e Bank Frgani2ation 1ommittee to ha e charge of theinitial ste#s in organi2ing the 4ederal "eser e $ystem and this 1ommittee was authori2ed to allot 4ederal "eser e Bank stock to the 'nited $tates in the e entthat subscri#tions to such stock by banks and by the #ublic were inade uate. owe er, subscri#tions by member banks were ade uate and there was nonecessity or authority for the allocation of any stock to the 'nited $tates. 0ccordingly, Mthis #aragra#hN is now of no #ractical effect and may be regarded asobsolete.HN

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. Aoting "ights$tock not held by member banks shall not be entitled to oting #ower.

M 6 '$1 69>. Part of original 4ederal "eser e 0ct5 not amended.N

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6. !ransfer of $tock!he Board of @o ernors of the 4ederal "eser e $ystem is hereby em#owered to ado#t and #romulgate rules and regulationsgo erning the transfers of said stock.

M 6 '$1 69/. Part of original 4ederal "eser e 0ct5 not amended.N

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. *inimum 1a#ital5 $tatus of "eser e 1ities=o 4ederal reser e bank shall commence business with a subscribed ca#ital less than G+,<<<,<<<. !he organi2ation of reser e districtsand 4ederal reser e cities shall not be construed as changing the #resent status of reser e cities, e3ce#t in so far as this 0ct changesthe amount of reser es that may be carried with a##ro ed reser e agents located therein. !he organi2ation committee shall ha e#ower to a##oint such assistants and incur such e3#enses in carrying out the #ro isions of this 0ct as it shall deem necessary, andsuch e3#enses shall be #ayable by the !reasurer of the 'nited $tates u#on oucher a##ro ed by the $ecretary of the !reasury, andthe sum of G <<,<<<, or so much thereof as may be necessary, is hereby a##ro#riated, out of any moneys in the !reasury nototherwise a##ro#riated, for the #ayment of such e3#enses.

MLast sentence of this #aragra#h is omitted from '.$. 1ode5 rest of #aragra#h is incor#orated in 6 '$1 66+ and 69 . 0mended by act of ;uly 69, > (: $tat.6/+).N

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%ection 1a. onetary 2olicy +bjectives!he Board of @o ernors of the 4ederal "eser e $ystem and the 4ederal F#en *arket 1ommittee shall maintain long run growth of themonetary and credit aggregates commensurate with the economyIs long run #otential to increase #roduction, so as to #romoteeffecti ely the goals of ma3imum em#loyment, stable #rices, and moderate long-term interest rates.















M 6 '$1 66>a. 0s added by act of =o ember /, :: ( $tat. 9:) and amended by acts of Fctober 6:, :9 ( 6 $tat. 9 :)5 0ug. 6 , 99 ( <6 $tat.:>)5 and Dec. 6:, 6<<< ( + $tat. <69).N

%ection 1). !ppearances )efore and $eports to the (ongress(a" 8ppearan+es before the Congress

. !he 1hairman of the Board shall a##ear before the 1ongress at semi-annual hearings, as s#ecified in #aragra#h (6),

regarding 0. the efforts, acti ities, obKecti es and #lans of the Board and the 4ederal F#en *arket 1ommittee with res#ect to theconduct of monetary #olicy5 and

B. economic de elo#ments and #ros#ects for the future described in the re#ort re uired in subsection (b).6. !he 1hairman of the Board shall a##ear

0. before the 1ommittee on Banking and 4inancial $er ices of the ouse of "e#resentati es on or about 4ebruary 6< ofe en numbered calendar years and on or about ;uly 6< of odd numbered calendar years5

B. before the 1ommittee on Banking, ousing, and 'rban 0ffairs of the $enate on or about ;uly 6< of e en numberedcalendar years and on or about 4ebruary 6< of odd numbered calendar years5 and

1. before either 1ommittee referred to in sub#aragra#h (0) or (B), u#on re uest, following the scheduled a##earance ofthe 1hairman before the other 1ommittee under sub#aragra#h (0) or (B).

(b" Congressional report. !he Board shall, concurrent with each semi-annual hearing re uired by this section, submit a written re#ortto the 1ommittee on Banking, ousing, and 'rban 0ffairs of the $enate and the 1ommittee on Banking and 4inancial $er ices of the

ouse of "e#resentati es, containing a discussion of the conduct of monetary #olicy and economic de elo#ments and #ros#ects forthe future, taking into account #ast and #ros#ecti e de elo#ments in em#loyment, unem#loyment, #roduction,in estment, real income,#roducti ity, e3change rates, international trade and #ayments, and #rices.

M 6 '$1 66>b. 0s added by act of Dec. 6:, 6<<< ( + $tat. <69).N

%ection =. )ranch +ffices

. stablishment of Branches of "eser e Banks!he Board of @o ernors of the 4ederal "eser e $ystem may #ermit or re uire any 4ederal reser e bank to establish branch banks

within the 4ederal reser e district in which it is located or within the district of any 4ederal reser e bank which may ha e beensus#ended. $uch branches, subKect to such rules and regulations as the Board of @o ernors of the 4ederal "eser e $ystem may#rescribe, shall be o#erated under the su#er ision of a board of directors to consist of not more than se en nor less than threedirectors, of whom a maKority of one shall be a##ointed by the 4ederal reser e bank of the district, and the remaining directors by theBoard of @o ernors of the 4ederal "eser e $ystem. Directors of branch banks shall hold office during the #leasure of the Board of@o ernors of the 4ederal "eser e $ystem.

M 6 '$1 >6 . 0s amended by act of ;une 6 , : (+< $tat. 6 6).N

6. Discontinuance of Branches!he Board of @o ernors of the 4ederal "eser e $ystem may at any time re uire any 4ederal "eser e Bank to discontinue any branchof such 4ederal "eser e Bank established under this section. !he 4ederal "eser e Bank shall thereu#on #roceed to wind u# thebusiness of such branch bank, subKect to such rules and regulations as the Board of @o ernors of the 4ederal "eser e $ystem may#rescribe.

M 6 '$1 >6 . 0s added by act of 4eb. 6>, 6: (++ $tat. 6 +).N

. rection of Branch Buildings=o 4ederal "eser e Bank shall ha e authority hereafter to enter into any contract or contracts for the erection of any branch bankbuilding of any kind or character or to authori2e the erection of any such building, e3ce#t with the a##ro al of the Board of @o ernors ofthe 4ederal "eser e $ystem.

M 6 '$1 >6 . 0s added by act of 0ug. , /6 (:/ $tat. + 9).N



%ection 8. #ederal $eserve )anks

. Frgani2ation of "eser e BanksWhen the organi2ation committee shall ha e established 4ederal reser e districts as #ro ided in section two of this 0ct, a certificateshall be filed with the 1om#troller of the 1urrency showing the geogra#hical limits of such districts and the 4ederal reser e citydesignated in each of such districts. !he 1om#troller of the 1urrency shall thereu#on cause to be forwarded to each national banklocated in each district, and to such other banks declared to be eligible by the organi2ation committee which may a##ly therefor, ana##lication blank in form to be a##ro ed by the organi2ation committee, which blank shall contain a resolution to be ado#ted by theboard of directors of each bank e3ecuting such a##lication, authori2ing a subscri#tion to the ca#ital stock of the 4ederal reser e bankorgani2ing in that district in accordance with the #ro isions of this 0ct.

MFmitted from '.$. 1ode. Part of original 4ederal "eser e 0ct5 not amended.N

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6. Frgani2ation 1ertificateWhen the minimum amount of ca#ital stock #rescribed by this 0ct for the organi2ation of any 4ederal reser e bank shall ha e beensubscribed and allotted, the organi2ation committee shall designate any fi e banks of those whose a##lications ha e been recei ed, toe3ecute a certificate of organi2ation, and thereu#on the banks so designated shall, under their seals, make an organi2ation certificatewhich shall s#ecifically state the name of such 4ederal reser e bank, the territorial e3tent of the district o er which the o#erations ofsuch 4ederal reser e bank are to be carried on, the city and $tate in which said bank is to be located, the amount of ca#ital stock andthe number of shares into which the same is di ided, the name and #lace of doing business of each bank e3ecuting such certificate,and of all banks which ha e subscribed to the ca#ital stock of such 4ederal reser e bank and the number of shares, subscribed byeach, and the fact that the certificate is made to enable those banks e3ecuting same, and all banks which ha e subscribed or may

thereafter subscribe to the ca#ital stock of such 4ederal reser e bank, to a ail themsel es of the ad antages of this 0ct.


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. 0cknowledgment and 4iling!he said organi2ation certificate shall be acknowledged before a Kudge of some court of record or notary #ublic5 and shall be, togetherwith the acknowledgment thereof, authenticated by the seal of such court, or notary, transmitted to the 1om#troller of the 1urrency,who shall file, record and carefully #reser e the same in his office.


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+. @eneral 1or#orate Powers#on the filing of such certificate with the 1om#troller of the 1urrency as aforesaid, the said 4ederal reser e bank shall become a bodycor#orate and as such, and in the name designated in such organi2ation certificate, shall ha e #ower --

4irst. !o ado#t and use a cor#orate seal.

$econd. !o ha e succession after the a##ro al of this 0ct until dissol ed by 0ct of 1ongress or until forfeiture of franchise for iolationof law.

!hird. !o make contracts

4ourth. !o sue and be sued, com#lain and defend, in any court of law or e uity.

4ifth. !o a##oint by its board of directors a #resident, ice #residents, and such officers and em#loyees as are not otherwise #ro idedfor in this 0ct, to define their duties, re uire bonds for them and fi3 the #enalty thereof, and to dismiss at #leasure such officers orem#loyees. !he #resident shall be the chief e3ecuti e officer of the bank and shall be a##ointed by the board of directors, with thea##ro al of the Board of @o ernors of the 4ederal "eser e $ystem, for a term of fi e years5 and all other e3ecuti e officers and allem#loyees of the bank shall be directly res#onsible to him. !he first ice #resident of the bank shall be a##ointed in the same mannerand for the same term as the #resident, and shall, in the absence or disability of the #resident or during a acancy in the office of the#resident, ser e as chief e3ecuti e officer of the bank. Whene er a acancy shall occur in the office of the #resident or the first ice#resident, it shall be filled in the manner #ro ided for original a##ointments5 and the #erson so a##ointed shall hold office until thee3#iration of the term of his #redecessor.

$i3th. !o #rescribe by its board of directors, by-laws not inconsistent with law, regulating the manner in which its general business may

be conducted, and the #ri ileges granted to it by law may be e3ercised and enKoyed.









$e enth. !o e3ercise by its board of directors, or duly authori2ed officers or agents, all #owers s#ecifically granted by the #ro isions ofthis 0ct and such incidental #owers as shall be necessary to carry on the business of banking within the limitations #rescribed by this0ct.

ighth. '#on de#osit with the !reasurer of the 'nited $tates of any bonds of the 'nited $tates in the manner #ro ided by e3isting lawrelating to national banks, to recei e from the $ecretary of the !reasury circulating notes in blank, registered and countersigned as#ro ided by law, e ual in amount to the #ar alue of the bonds so de#osited, such notes to be issued under the same conditions and#ro isions of law as relate to the issue of circulating notes of national banks secured by bonds of the 'nited $tates bearing thecirculating #ri ilege, e3ce#t that the issue of such notes shall not be limited to the ca#ital stock of such 4ederal reser e bank.

M 6 '$1 + . 0s amended by act of 4eb. 6>, 6: (++ $tat. 6 +), which amended sub#aragra#h H$econd5H by act of 0ug. 6 , > (+ $tat. :< ), which

amended sub#aragra#h H4ifthH effecti e *arch , /5 and by act of $e#t. 6 , + ( <9 $tat. 66 ), which amended sub#aragra#h H ighth.H 0s to issuance of4ederal "eser e bank notes and redem#tion of bonds securing such notes, see section 9, and note to the first #aragra#h of that section.N

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>. 0uthority to 1ommence BusinessBut no 4ederal reser e bank shall transact any business e3ce#t such as is incidental and necessarily #reliminary to its organi2ationuntil it has been authori2ed by the 1om#troller of the 1urrency to commence business under the #ro isions of this 0ct.

M 6 '$1 + . Part of original 4ederal "eser e 0ct5 not amended.N

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/. Board of Directorsery 4ederal reser e bank shall be conducted under the su#er ision and control of a board of directors.

M 6 '$1 < . Part of original 4ederal "eser e 0ct5 not amended.N

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:. Duties of Directors @enerally!he board of directors shall #erform the duties usually a##ertaining to the office of directors of banking associations and all such dutiesas are #rescribed by law.


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9. 0dministration of 0ffairs5 3tension of 1redit$aid board of directors shall administer the affairs of said bank fairly and im#artially and without discrimination in fa or of or against anymember bank or banks and may, subKect to the #ro isions of law and the orders of the Board of @o ernors of the 4ederal "eser e$ystem, e3tend to each member bank such discounts, ad ancements, and accommodations as may be safely and reasonably madewith due regard for the claims and demands of other member banks, the maintenance of sound credit conditions, and theaccommodation of commerce, industry, and agriculture. !he Board of @o ernors of the 4ederal "eser e $ystem may #rescriberegulations further defining within the limitations of this 0ct the conditions under which discounts, ad ancements, and theaccommodations may be e3tended to member banks. ach 4ederal reser e bank shall kee# itself informed of the general characterand amount of the loans and in estments of its member banks with a iew to ascertaining whether undue use is being made of bankcredit for the s#eculati e carrying of or trading in securities, real estate, or commodities, or for any other #ur#ose inconsistent with themaintenance of sound credit conditions5 and, in determining whether to grant or refuse ad ances, rediscounts or other creditaccommodations, the 4ederal reser e bank shall gi e consideration to such information. !he chairman of the 4ederal reser e bankshall re#ort to the Board of @o ernors of the 4ederal "eser e $ystem any such undue use of bank credit by any member bank,together with his recommendation. Whene er, in the Kudgment of the Board of @o ernors of the 4ederal "eser e $ystem, any memberbank is making such undue use of bank credit, the Board may, in its discretion, after reasonable notice and an o##ortunity for ahearing, sus#end such bank from the use of the credit facilities of the 4ederal "eser e $ystem and may terminate such sus#ension ormay renew it from time to time.

M 6 '$1 < . 0s amended by act of ;une /, (+9 $tat. / ).N

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. =umber and 1lasses of Directors$uch board of directors shall be selected as hereinafter s#ecified and shall consist of nine members, holding office for three years, anddi ided into three classes, designated as classes 0, B, and 1.













M 6 '$1 <6. Part of original 4ederal "eser e 0ct5 not amended.N

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<. 1lass 0 Directors1lass 0 shall consist of three members, without discrimination on the basis of race, creed, color, se3, or national origin, who shall bechosen by and be re#resentati e of the stockholding banks.

M 6 '$1 <6. 0s amended by act of =o . /, :: ( $tat. 9:).N

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. 1lass B Directors1lass B shall consist of three members, who shall re#resent the #ublic and shall be elected without discrimination on the basis of race,creed, color, se3, or national origin, and with due but not e3clusi e consideration to the interests of agriculture, commerce, industry,ser ices, labor, and consumers.

M 6 '$1 <6. 0s amended by act of =o . /, :: ( $tat. 99).N

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6. 1lass 1 Directors1lass 1 shall consist of three members who shall be designated by the Board of @o ernors of the 4ederal "eser e $ystem. !hey shallbe elected to re#resent the #ublic, without discrimination on the basis of race, creed, color, se3, or national origin, and with due but note3clusi e consideration to the interests of agriculture, commerce, industry, ser ices, labor and consumers. When the necessarysubscri#tions to the ca#ital stock ha e been obtained for the organi2ation of any 4ederal reser e bank, the Board of @o ernors of the4ederal "eser e $ystem shall a##oint the class 1 directors and shall designate one of such directors as chairman of the board to beselected. Pending the designation of such chairman, the organi2ation committee shall e3ercise the #owers and duties a##ertaining tothe office of chairman in the organi2ation of such 4ederal reser e bank.

M 6 '$1 <6. 0s amended by act of =o . /, :: ( $tat. 99).N

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. $enator or "e#resentati e 8neligible=o $enator or "e#resentati e in 1ongress shall be a member of the Board of @o ernors of the 4ederal "eser e $ystem or an officeror a director of a 4ederal reser e bank.


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+. 1lass B Directors as m#loyees of Banks=o director of class B shall be an officer, director, or em#loyee of any bank.


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>. 1lass 1 Directors as m#loyees or $tockholders of Banks=o director of class 1 shall be an officer, director, em#loyee, or stockholder of any bank.


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/. =omination and lection of 1lass 0 and B DirectorsDirectors of class 0 and class B shall be chosen in the following manner7

!he Board of @o ernors of the 4ederal "eser e $ystem shall classify the member banks of the district into three general grou#s ordi isions, designating each grou# by number. ach grou# shall consist as nearly as may be of banks of similar ca#itali2ation. achmember bank shall be #ermitted to nominate to the chairman of the board of directors of the 4ederal reser e bank of the district onecandidate for director of class 0 and one candidate for director of class B. !he candidates so nominated shall be listed by the



















6 . 0ssistant 4ederal "eser e 0gents$ubKect to the a##ro al of the Board of @o ernors of the 4ederal "eser e $ystem, the 4ederal reser e agent shall a##oint one or moreassistants. $uch assistants, who shall be #ersons of tested banking e3#erience, shall assist the 4ederal reser e agent in the#erformance of his duties and shall also ha e #ower to act in his name and stead during his absence or disability. !he Board of@o ernors of the 4ederal "eser e $ystem shall re uire such bonds of the assistant 4ederal reser e agents as it may deem necessaryfor the #rotection of the 'nited $tates. 0ssistants to the 4ederal reser e agent shall recei e an annual com#ensation, to be fi3ed and#aid in the same manner as that of the 4ederal reser e agent.

M 6 '$1 </. 0s added by act of ;une 6 , : (+< $tat. 6 6).N

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66. 1om#ensation and 3#enses of Directors, Ffficers, and m#loyeesDirectors of 4ederal reser e banks shall recei e, in addition to any com#ensation otherwise #ro ided, a reasonable allowance fornecessary e3#enses in attending meetings of their res#ecti e boards, which amounts shall be #aid by the res#ecti e 4ederal reser ebanks. 0ny com#ensation that may be #ro ided by boards of directors of 4ederal reser e banks for directors, officers or em#loyeesshall be subKect to the a##ro al of the Board of @o ernors of the 4ederal "eser e $ystem.

M 6 '$1 <:. Part of original 4ederal "eser e 0ct5 not amended.N

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6 . *eetings of Directors Pending Frgani2ation!he "eser e Bank Frgani2ation 1ommittee may, in organi2ing 4ederal reser e banks, call such meetings of bank directors in the

se eral districts as may be necessary to carry out the #ur#oses of this 0ct, and may e3ercise the functions herein conferred u#on thechairman of the board of directors of each 4ederal reser e bank #ending the com#lete organi2ation of such bank.


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6+. !erms of Directors5 Aacancies0t the first meeting of the full board of directors of each 4ederal reser e bank, it shall be the duty of the directors of classes 0, B and 1,res#ecti ely, to designate one of the members of each class whose term of office shall e3#ire in one year from the first of ;anuarynearest to date of such meeting, one whose term of office shall e3#ire at the end of two years from said date, and one whose term ofoffice shall e3#ire at the end of three years from said date. !hereafter e ery director of a 4ederal reser e bank chosen as hereinbefore#ro ided shall hold office for a term of three years. Aacancies that may occur in the se eral classes of directors of 4ederal reser e

banks may be filled in the manner #ro ided for the original selection of such directors, such a##ointees to hold office for the une3#iredterms of their #redecessors.

M 6 '$1 <9. Part of original 4ederal "eser e 0ct5 not amended.N

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%ection K. %tock Issues Increase and Cecrease of (apital

. 0mount of $hares5 8ncrease and Decrease of 1a#ital5 $urrender and 1ancellation of $tock!he ca#ital stock of each 4ederal reser e bank shall be di ided into shares of G << each. !he outstanding ca#ital stock shall beincreased from time to time as member banks increase their ca#ital stock and sur#lus or as additional banks become members, andmay be decreased as member banks reduce their ca#ital stock or sur#lus or cease to be members. $hares of the ca#ital stock of4ederal reser e banks owned by member banks shall not be transferred or hy#othecated. When a member bank increases its ca#italstock or sur#lus, it shall thereu#on subscribe for an additional amount of ca#ital stock of the 4ederal reser e bank of its district e ual to/ #er centum of the said increase, one-half of said subscri#tion to be #aid in the manner hereinbefore #ro ided for original subscri#tion,and one-half subKect to call of the Board of @o ernors of the 4ederal "eser e $ystem. 0 bank a##lying for stock in a 4ederal reser ebank at any time after the organi2ation thereof must subscribe for an amount of the ca#ital stock of the 4ederal reser e bank e ual to /#er centum of the #aid-u# ca#ital stock and sur#lus of said a##licant bank, #aying therefor its #ar alue #lus one-half of #er centum amonth from the #eriod of the last di idend. When a member bank reduces its ca#ital stock or sur#lus it shall surrender a #ro#ortionateamount of its holdings in the ca#ital stock of said 4ederal "eser e bank. 0ny member bank which holds ca#ital stock of a 4ederal"eser e bank in e3cess of the amount re uired on the basis of / #er centum of its #aid-u# ca#ital stock and sur#lus shall surrender











such e3cess stock. When a member bank oluntarily li uidates it shall surrender all of its holdings of the ca#ital stock of said 4ederal"eser e bank and be released from its stock subscri#tion not #re iously called. 8n any such case the shares surrendered shall becanceled and the member bank shall recei e in #ayment therefor, under regulations to be #rescribed by the Board of @o ernors of the4ederal "eser e $ystem, a sum e ual to its cash-#aid subscri#tions on the shares surrendered and one-half of #er centum a monthfrom the #eriod of the last di idend, not to e3ceed the book alue thereof, less any liability of such member bank to the 4ederal"eser e bank.

M 6 '$1 69:. 0s amended by act of 0ug. 6 , > (+ $tat. : ).N

%ection L. Insolvency of ember )anks

. 8nsol ency of *ember Banks8f any member bank shall be declared insol ent and a recei er a##ointed therefor, the stock held by it in said 4ederal reser e bankshall be canceled, without im#airment of its liability, and all cash-#aid subscri#tions on said stock, with one-half of #er centum #ermonth from the #eriod of last di idend, if earned, not to e3ceed the book alue thereof, shall be first a##lied to all debts of the insol entmember bank to the 4ederal reser e bank, and the balance, if any, shall be #aid to the recei er of the insol ent bank.

M 6 '$1 699. 0s amended by act of 0#ril 6 , < (+/ $tat. 6><).N

6. =ational Bank Discontinuing Banking F#erations8f any national bank which has not gone into li uidation as #ro ided in section >66< of the "e ised $tatutes ('nited $tates 1ode, title

6, section 9 ) and for which a recei er has not already been a##ointed for other lawful cause, shall discontinue its bankingo#erations for a #eriod of si3ty days the 1om#troller of the 1urrency may, if he deems it ad isable, a##oint a recei er for such bank.!he stock held by the said national bank in the 4ederal reser e bank of its district shall thereu#on be canceled and said national bankshall recei e in #ayment therefor, under regulations to be #rescribed by the Board of @o ernors of the 4ederal "eser e $ystem, a sume ual to its cash-#aid subscri#tions on the shares canceled and one-half of #er centum a month from the #eriod of the last di idend, ifearned, not to e3ceed the book alue thereof, less any liability of such national bank to the 4ederal reser e bank.

M 6 '$1 699. 0s added by act of 0#ril 6 , < (+/ $tat. 6><). 0s amended by act of 0ug. 6 , > (+ $tat. : ).N

%ection >. Civision of 3arnings

Di idends and $ur#lus 4und of "eser e Banks(a"

. 0. 0fter all necessary e3#enses of a 4ederal reser e bank ha e been #aid or #ro ided for, the stockholders of the bank

shall be entitled to recei e an annual di idend of / #ercent on #aid-in ca#ital stock.B. !he entitlement to di idends under sub#aragra#h (0) shall be cumulati e.

6. !hat #ortion of net earnings of each 4ederal reser e bank which remains after di idend claims under sub#aragra#h ( )(0)ha e been fully met shall be de#osited in the sur#lus fund of the bank.

(b" $ransfer for fis+al !ear *>>>.

. !he 4ederal reser e banks shall transfer from the sur#lus funds of such banks to the Board of @o ernors of the 4ederal"eser e $ystem for transfer to the $ecretary of the !reasury for de#osit in the general fund of the !reasury, a total amount ofG ,:>6,<<<,<<< in fiscal year 6<<<.

6. Ff the total amount re uired to be #aid by the 4ederal reser e banks under #aragra#h ( ) for fiscal year 6<<<, theBoard shall determine the amount each such bank shall #ay in such fiscal year.

. During fiscal year 6<<<, no 4ederal reser e bank may re#lenish such bankIs sur#lus fund by the amount of anytransfer by such bank under #aragra#h ( ).

M 6 '$1 69 . 0s amended by acts of *arch , (+< $tat. +)5 ;une /, (+9 $tat. / )5 0ug. <, ( <: $tat. :)5 $e#t. 6 , + ( <9$tat. 66 )5 and =o . 6 , ( $tat. >< 0- <+), which added this subsection (b) but failed to redesignate e3isting subsection (b) ( 6 '$1 6 <).N

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'se of arnings !ransferred to the !reasury

(b" !he net earnings deri ed by the 'nited $tates from 4ederal reser e banks shall, in the discretion of the $ecretary, be usedto su##lement the gold reser e held against outstanding 'nited $tates notes, or shall be a##lied to the reduction of theoutstanding bonded indebtedness of the 'nited $tates under regulations to be #rescribed by the $ecretary of the !reasury.$hould a 4ederal reser e bank be dissol ed or go into li uidation, any sur#lus remaining, after the #ayment of all debts,di idend re uirements as hereinbefore #ro ided, and the #ar alue of the stock, shall be #aid to and become the #ro#erty ofthe 'nited $tates and shall be similarly a##lied.

M 6 '$1 6 <. Part of original 4ederal "eser e 0ct5 not amended. Designated subsection (b) by act of 0ug. <, ( <: $tat. :).N

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3em#tion from !a3ation

(+" 4ederal reser e banks, including the ca#ital stock and sur#lus therein, and the income deri ed therefrom shall be e3em#tfrom 4ederal, $tate, and local ta3ation, e3ce#t ta3es u#on real estate.

M 6 '$1 > . Part of original 4ederal "eser e 0ct5 but in effect amended by '$1 6+(a), which reads as follows7

H(a) $tocks and obligations of the 'nited $tates @o ernment are e3em#t from ta3ation by a $tate or #olitical subdi ision of a $tate. !he e3em#tiona##lies to each form of ta3ation that would re uire the obligation, the interest on the obligation, or both, to be considered in com#uting a ta3, e3ce#t--

( ) a nondiscriminatory franchise ta3 or another non#ro#erty ta3 instead of a franchise ta3, im#osed on a cor#oration5 and

(6) an estate or inheritance ta3.H

MDesignated subsection (c) by act of 0ug. <, ( <: $tat. 9).N

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%ection <. (onversion of %tate )anks into Bational )anks. 1on ersion of $tate Banks into =ational Banks

$ection fifty-one hundred and fifty-four, 'nited $tates "e ised $tatutes, is hereby amended to read as follows7

0ny bank incor#orated by s#ecial law of any $tate or of the 'nited $tates or organi2ed under the general laws of any $tate or of thenited $tates and ha ing an unim#aired ca#ital sufficient to entitle it to become a national banking association under the #ro isions ofthe e3isting laws may, by the ote of the shareholders owning not less than fifty-one #er centum of the ca#ital stock of such bank orbanking association, with the a##ro al of the 1om#troller of the 1urrency be con erted into a national banking association, with anyname a##ro ed by the 1om#troller of the 1urrency.

M 6 '$1 >. Part of original 4ederal "eser e 0ct5 not amended.N

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6. Frgani2ation of =ew Bank5 0mount of $hares5 Powers and Duties#ro,i e ) howe,er , !hat said con ersion shall not be in contra ention of the $tate law. 8n such case the articles of association andorgani2ation certificate may be e3ecuted by a maKority of the directors of the bank or banking institution, and the certificate shall declarethat the owners of fifty-one #er centum of the ca#ital stock ha e authori2ed the directors to make such certificate and to change orcon ert the bank or banking institution into a national association. 0 maKority of the directors, after e3ecuting the articles of associationand the organi2ation certificate, shall ha e #ower to e3ecute all other #a#ers and to do whate er may be re uired to make itsorgani2ation #erfect and com#lete as a national association. !he shares of any such bank may continue to be for the same amounteach as they were before the con ersion, and the directors may continue to be directors of the association until others are elected ora##ointed in accordance with the #ro isions of the statutes of the 'nited $tates. When the 1om#troller has gi en to such bank orbanking association a certificate that the #ro isions of this 0ct ha e been com#lied with, such bank or banking association, and all itsstockholders, officers, and em#loyees, shall ha e the same #owers and #ri ileges, and shall be subKect to the same duties, liabilities,and regulations, in all res#ects, as shall ha e been #rescribed by the 4ederal "eser e 0ct and by the =ational Banking 0ct for

associations originally organi2ed as national banking associations.











M 6 '$1 6 . 0s added by act of 4eb. 6>, 6: (++ $tat. 66 )5 and amended by acts of ;une /, (+9 $tat. /+)5 0ug. 6 , > (+ $tat. :6 )5 ;uly >,>6 (// $tat. / )5 and Fct. <, 6<<+ ( 9 $tat. 66 6). !he act referred to in this #aragra#h was a##ro ed 4eb. 6>, 6:. 4or #ro isions go erning domestic

branches of national banks, see section > >>, "e ised $tatutes5 for #ro isions go erning foreign branches, see section 6>, this act.N

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+. 4inancial 1ondition, *anagement, and Powers8n acting u#on such a##lications the Board of @o ernors of the 4ederal "eser e $ystem shall consider the financial condition of thea##lying bank, the general character of its management, and whether or not the cor#orate #owers e3ercised are consistent with the#ur#oses of this 0ct.

M 6 '$1 66. 0s added by act of ;une 6 , : (+< $tat. 6 ), which com#letely re ised this section.N

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>. Payment of $ubscri#tionWhene er the Board of @o ernors of the 4ederal "eser e $ystem shall #ermit the a##lying bank to become a stockholder in the4ederal reser e bank of the district its stock subscri#tion shall be #ayable on call of the Board of @o ernors of the 4ederal "eser e$ystem, and stock issued to it shall be subKect to the #ro isions of this 0ct.

M 6 '$1 6 . 0s amended by act of ;une 6 , : (+< $tat. 6 ), which com#letely re ised this section.N

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/. Pro ision of Law to Be 1om#lied with5 "e#orts of 1ondition0ll banks admitted to membershi# under authority of this section shall be re uired to com#ly with the reser e and ca#ital re uirementsof this 0ct, to conform to those #ro isions of law im#osed on national banks which #rohibit such banks from lending on or #urchasingtheir own stock and which relate to the withdrawal or im#airment of their ca#ital stock, and to conform to the #ro isions of sections> (b) and >6<+ of the "e ised $tatutes with res#ect to the #ayment of di idends5 e3ce#t that any reference in any such #ro ision tothe 1om#troller of the 1urrency shall be deemed for the #ur#oses of this sentence to be a reference to the Board of @o ernors of the4ederal "eser e $ystem. $uch banks and the officers, agents, and em#loyees thereof shall also be subKect to the #ro isions of and tothe #enalties #rescribed by sections +, />/, and <<> of !itle 9, 'nited $tates 1ode, and shall be re uired to make re#orts ofcondition and of the #ayment of di idends to the 4ederal "eser e bank of which they become a member. =ot less than three of suchre#orts shall be made annually on call of the 4ederal "eser e bank on dates to be fi3ed by the Board of @o ernors of the 4ederal"eser e $ystem. 0ny bank which (0) maintains #rocedures reasonably ada#ted to a oid any inad ertent error and, unintentionally andas a result of such an error, fails to make or #ublish any re#ort re uired under this #aragra#h, within the #eriod of time s#ecified by theBoard, or submits or #ublishes any false or misleading re#ort or information, or (B) inad ertently transmits or #ublishes any re#ortwhich is minimally late, shall be subKect to a #enalty of not more than G6,<<< for each day during which such failure continues or such

false or misleading information is not corrected. !he bank shall ha e the burden of #ro ing that an error was inad ertent and that are#ort was inad ertently transmitted or #ublished late. 0ny bank which fails to make or #ublish such re#orts within the #eriod of times#ecified by the Board, or submits or #ublishes any false or misleading re#ort or information, in a manner not described in the 6nd#receding sentence shall be subKect to a #enalty of not more than G6<,<<< for each day during which such failure continues or suchfalse or misleading information is not corrected. =otwithstanding the #receding sentence, if any bank knowingly or with recklessdisregard for the accuracy of any information or re#ort described in such sentence submits or #ublishes any false or misleading re#ortor information, the Board may assess a #enalty of not more than G ,<<<,<<< or #ercent of total assets of such bank, whiche er isless, #er day for each day during which such failure continues or such false or misleading information is not corrected. 0ny #enaltyim#osed under any of the + #receding sentences shall be assessed and collected by the Board in the manner #ro ided insub#aragra#hs ( ), (4), (@), and (8) of section 9(i)(6) of the 4ederal De#osit 8nsurance 0ct (for #enalties im#osed under such section)and any such assessment (including the determination of the amount of the #enalty) shall be subKect to the #ro isions of such section.0ny bank against which any #enalty is assessed under this subsection shall be afforded an agency hearing if such bank submits are uest for such hearing within 6< days after the issuance of the notice of assessment. $ection 9(h) of the 4ederal De#osit 8nsurance0ct shall a##ly to any #roceeding under this #aragra#h. $uch re#orts of condition shall be in such form and shall contain such

information as the Board of @o ernors of the 4ederal "eser e $ystem may re uire and shall be #ublished.

M 6 '$1 6+. 0s amended by act of ;une 6 , : (+< $tat. 6 ), which com#letely re ised this section5 and by acts of 0ug. 6 , > (+ $tat. : )5 $e#t. ,>+ (/9 $tat. 6 /)5 $e#t. 9, > (: $tat. +//)5 0ug. , 9 ( < $tat. +9<)5 and $e#t. 6 , + ( <9 $tat. 66 9). 4or #ro isions co ering loans on or

#urchase of their own stock by national banks, see section >6< , "e ised $tatutes ( 6 '$1 9 )5 for #ro isions co ering withdrawal of ca#ital or #ayment ofunearned di idends by national banks, see sections >6<+ and > , "e ised $tatutes ( 6 '$1 >/ and /<)5 for #ro isions relating to im#airment of ca#ital ofnational banks, see section >6<>, "e ised $tatutes ( 6 '$1 >>) and section +> of Banking 0ct of > ( 6 '$1 > b- ).N

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:. 3aminations0s a condition of membershi# such banks shall likewise be subKect to e3aminations made by direction of the Board of @o ernors of the4ederal "eser e $ystem or of the 4ederal reser e bank by e3aminers selected or a##ro ed by the Board of @o ernors of the 4ederal"eser e $ystem.













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6. Wai er of *embershi# "e uirements as to 8nsured Banks8n order to facilitate the admission to membershi# in the 4ederal "eser e $ystem of any $tate bank which is re uired under subsection(y) of section 6B of this 0ct to become a member of the 4ederal "eser e $ystem in order to be an insured bank or continue to ha eany #art of its de#osits insured under such section 6B, the Board of @o ernors of the 4ederal "eser e $ystem may wai e in whole orin #art the re uirements of this section relating to the admission of such bank to membershi#7 #ro,i e ) !hat, if such bank is admittedwith a ca#ital less than that re uired for the organi2ation of a national bank in the same #lace and its ca#ital and sur#lus are not, in theKudgment of the Board of @o ernors of the 4ederal "eser e $ystem, ade uate in relation to its liabilities to de#ositors and othercreditors, the said Board may, in its discretion, re uire such bank to increase its ca#ital and sur#lus to such amount as the Board maydeem necessary within such #eriod #rescribed by the Board as in its Kudgment shall be reasonable in iew of all the circumstances7

#ro,i e ) howe,er) !hat no such bank shall be re uired to increase its ca#ital to an amount in e3cess of that re uired for theorgani2ation of a national bank in the same #lace.

M4ormerly 6 '$1 6 a, as added by act of 0ug. 6 , > (+ $tat. :<+). Fmitted from the '.$. 1ode. !he #ro ision of section 6B(y) re uiring membershi# in4ederal "eser e $ystem was re#ealed by act of ;une 6<, (> $tat. 9+6)5 and all of section 6B was withdrawn and enacted as a se#arate 4ederal De#osit8nsurance 0ct by act of $e#t. 6 , >< (/+ $tat. 9: ).N

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. Laws to Which $ubKectBanks becoming members of the 4ederal "eser e $ystem under authority of this section shall be subKect to the #ro isions of thissection and to those of this 0ct which relate s#ecifically to member banks, but shall not be subKect to e3amination under the #ro isionsof the first two #aragra#hs of section fifty-two hundred and forty of the "e ised $tatutes as amended by section twenty-one of this 0ct.$ubKect to the #ro isions of this 0ct and to the regulations of the board made #ursuant thereto, any bank becoming a member of the4ederal "eser e $ystem shall retain its full charter and statutory rights as a $tate bank or trust com#any, and may continue to e3erciseall cor#orate #owers granted it by the $tate in which it was created, and shall be entitled to all #ri ileges of member banks, e3ce#t thatthe Board of @o ernors of the 4ederal "eser e $ystem may limit the acti ities of $tate member banks and subsidiaries of $tatemember banks in a manner consistent with section 6+ of the 4ederal De#osit 8nsurance 0ct. =o 4ederal reser e bank shall be#ermitted to discount for any $tate bank or trust com#any notes, drafts, or bills of e3change of any one borrower who is liable forborrowed money to such $tate bank or trust com#any in an amount greater than that which could be borrowed lawfully from such $tatebank or trust com#any were it a national banking association. !he 4ederal reser e bank, as a condition of the discount of notes, drafts,and bills of e3change for such $tate bank or trust com#any, shall re uire a certificate or guaranty to the effect that the borrower is notliable to such bank in e3cess of the amount #ro ided by this section, and will not be #ermitted to become liable in e3cess of this amountwhile such notes, drafts, or bills of e3change are under discount with the 4ederal reser e bank.

M 6 '$1 <. 0s added by act of ;une 6 , : (+< $tat. 6 +), which com#letely re ised this section5 and amended by acts of ;uly , 66 (+6 $tat. 96 ) andDec. , ( <> $tat. 6 > ). 0s to limitations on loans by national banks to one #erson, see section >6<<, "e ised $tatutes.N

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+. 4alse 1ertification of 1hecks8t shall be unlawful for any officer, clerk, or agent of any bank admitted to membershi# under authority of this section to certify anycheck drawn u#on such bank unless the #erson or com#any drawing the check has on de#osit therewith at the time such check iscertified an amount of money e ual to the amount s#ecified in such check. 0ny check so certified by duly authori2ed officers shall be agood and alid obligation against such bank, but the act of any such officer, clerk, or agent in iolation of this section may subKect suchbank to a forfeiture of its membershi# in the 4ederal "eser e $ystem u#on hearing by the Board of @o ernors of the 4ederal "eser e$ystem.

M 6 '$1 . 0s added by act of ;une 6 , : (+< $tat. 6 +), which com#letely re ised this section. 4or additional #ro isions co ering false certification ofchecks by officers of 4ederal "eser e Banks and member banks, see also section >6<9, "e ised $tatutes and 9 '$1 <<+.N

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>. @o ernment De#ositaries and 4inancial 0gents0ll banks or trust com#anies incor#orated by s#ecial law or organi2ed under the general laws of any $tate, which are members of the4ederal "eser e $ystem, when designated for that #ur#ose by the $ecretary of the !reasury, shall be de#ositaries of #ublic money,under such regulations as may be #rescribed by the $ecretary5 and they may also be em#loyed as financial agents of the @o ernment5and they shall #erform all such reasonable duties, as de#ositaries of #ublic money and financial agents of the @o ernment, as may bere uired of them. !he $ecretary of the !reasury shall re uire of the banks and trust com#anies thus designated satisfactory security,by the de#osit of 'nited $tates bonds or otherwise, for the safe kee#ing and #rom#t #ayment of the #ublic money de#osited with themand for the faithful #erformance of their duties as financial agents of the @o ernment.

M 6 '$1 6. 0s added by act of *ay :, 69 (+> $tat. + 6).N

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/. 0dmission to *embershi# of *utual $a ings Banks0ny mutual sa ings bank ha ing no ca#ital stock (including any other banking institution the ca#ital of which consists of weekly or othertime de#osits which are segregated from all other de#osits and are regarded as ca#ital stock for the #ur#oses of ta3ation and thedeclaration of di idends), but ha ing sur#lus and undi ided #rofits not less than the amount of ca#ital re uired for the organi2ation of anational bank in the same #lace, may a##ly for and be admitted to membershi# in the 4ederal "eser e $ystem in the same mannerand subKect to the same #ro isions of law as $tate banks and trust com#anies, e3ce#t that any such sa ings banks shall subscribe forca#ital stock of the 4ederal reser e bank in an amount e ual to si3-tenths of #er centum of its total de#osit liabilities as shown by themost recent re#ort of e3amination of such sa ings bank #receding its admission to membershi#. !hereafter such subscri#tion shall beadKusted semiannually on the same #ercentage basis in accordance with rules and regulations #rescribed by the Board of @o ernors ofthe 4ederal "eser e $ystem. 8f any such mutual sa ings bank a##lying for membershi# is not #ermitted by the laws under which it wasorgani2ed to #urchase stock in a 4ederal reser e bank, it shall, u#on admission to the system, de#osit with the 4ederal reser e bankan amount e ual to the amount which it would ha e been re uired to #ay in on account of a subscri#tion to ca#ital stock. !hereaftersuch de#osit shall be adKusted semiannually in the same manner as subscri#tions for stock. $uch de#osits shall be subKect to the sameconditions with res#ect to re#ayment as amounts #aid u#on subscri#tions to ca#ital stock by other member banks and the 4ederalreser e bank shall #ay interest thereon at the same rate as di idends are actually #aid on outstanding shares of stock of such 4ederalreser e bank. 8f the laws under which any such sa ings bank was organi2ed be amended so as to authori2e mutual sa ings banks tosubscribe for 4ederal reser e bank stock, such sa ings bank shall thereu#on subscribe for the a##ro#riate amount of stock in the4ederal reser e bank, and the de#osit hereinbefore #ro ided for in lieu of #ayment u#on ca#ital stock shall be a##lied u#on suchsubscri#tion. 8f the laws under which any such sa ings bank was organi2ed be not amended at the ne3t session of the legislaturefollowing the admission of such sa ings bank to membershi# so as to authori2e mutual sa ings banks to #urchase 4ederal reser ebank stock, or if such laws be so amended and such bank fail within si3 months thereafter to #urchase such stock, all of its rights and#ri ileges as a member bank shall be forfeited and its membershi# in the 4ederal "eser e $ystem shall be terminated in the manner#rescribed elsewhere in this section with res#ect to $tate member banks and trust com#anies. ach such mutual sa ings bank shallcom#ly with all the #ro isions of law a##licable to $tate member banks and trust com#anies, with the regulations of the Board of@o ernors of the 4ederal "eser e $ystem and with the conditions of membershi# #rescribed for such sa ings bank at the time ofadmission to membershi#, e3ce#t as otherwise hereinbefore #ro ided with res#ect to ca#ital stock.

M 6 '$1 . 0s added by act of ;une /, (+9 $tat. /+). 0s to the amount of ca#ital re uired for the organi2ation of a national bank, see section > 9,"e ised $tatutes.N

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:. "e#orts of 0ffiliatesach bank admitted to membershi# under this section shall obtain from each of its affiliates other than member banks and furnish to

the 4ederal reser e bank of its district and to the Board of @o ernors of the 4ederal "eser e $ystem not less than three re#orts duringeach year. $uch re#orts shall be in such form as the Board of @o ernors of the 4ederal "eser e $ystem may #rescribe, shall be

erified by the oath or affirmation of the #resident or such other officer as may be designated by the board of directors of such affiliateto erify such re#orts, and shall disclose the information hereinafter #ro ided for as of dates identical with those fi3ed by the Board of@o ernors of the 4ederal "eser e $ystem for re#orts of the condition of the affiliated member bank. ach such re#ort of an affiliate

shall be transmitted as herein #ro ided at the same time as the corres#onding re#ort of the affiliated member bank, e3ce#t that theBoard of @o ernors of the 4ederal "eser e $ystem may, in its discretion, e3tend such time for good cause shown. ach such re#ortshall contain such information as in the Kudgment of the Board of @o ernors of the 4ederal "eser e $ystem shall be necessary todisclose fully the relations between such affiliate and such bank and to enable the Board to inform itself as to the effect of suchrelations u#on the affairs of such bank. !he re#orts of such affiliates shall be #ublished by the bank under the same conditions asgo ern its own condition re#orts.

M 6 '$1 +. 0s added by act of ;une /, (+9 $tat. />). 0s to re#orts of affiliates of national banks, see section >6 , "e ised $tatutes ( 6 '$1 / ).N

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9. 0dditional "e#orts of 0ffiliates0ny such affiliated member bank may be re uired to obtain from any such affiliate such additional re#orts as in the o#inion of its

4ederal reser e bank or the Board of @o ernors of the 4ederal "eser e $ystem may be necessary in order to obtain a full andcom#lete knowledge of the condition of the affiliated member bank. $uch additional re#orts shall be transmitted to the 4ederal reser ebank and the Board of @o ernors of the 4ederal "eser e $ystem and shall be in such form as the Board of @o ernors of the 4ederal"eser e $ystem may #rescribe.

M 6 '$1 +. 0s added by act of ;une /, (+9 $tat. />).N

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. 4ailure to Fbtain "e#orts of 0ffiliates0ny such affiliated member bank which fails to obtain from any of its affiliates and furnish any re#ort #ro ided for by the two #receding#aragra#hs of this section shall be subKect to a #enalty of G << for each day during which such failure continues, which, by direction ofthe Board of @o ernors of the 4ederal "eser e $ystem, may be collected, by suit or otherwise, by the 4ederal reser e bank of thedistrict in which such member bank is located.









M 6 '$1 +. 0s added by act of ;une /, (+9 $tat. />) and amended by act of ;uly , // (9< $tat. 6+ ). 4or definition of HaffiliateH see section 6 of theBanking 0ct of , a##ro ed ;une /, .N

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6<. Dealings in 8n estment $ecurities and $tock$tate member banks shall be subKect to the same limitations and conditions with res#ect to the #urchasing, selling, underwriting, andholding of in estment securities and stock as are a##licable in the case of national banks under #aragra#h H$e enthH of section > / ofthe "e ised $tatutes, as amended. !his #aragra#h shall not a##ly to any interest held by a $tate member bank in accordance withsection > /0 of the "e ised $tatutes of the 'nited $tates and subKect to the same conditions and limitations #ro ided in such section.

M 6 '$1 >. 0s added by act of ;une /, (+9 $tat. />) and amended by act of =o . 6, ( $tat. 9 ).N

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6 . $tock "e#resenting $tock of Fther 1or#orations0fter the date of the enactment of the Banking 0ct of >, no certificate e idencing the stock of any $tate member bank shall bear anystatement #ur#orting to re#resent the stock of any other cor#oration, e3ce#t a member bank or a cor#oration engaged on ;une /,

+ in holding the bank #remises of such member bank, nor shall the ownershi#, sale, or transfer of any certificate re#resenting thestock of any $tate member bank be conditioned in any manner whatsoe er u#on the ownershi#, sale, or transfer of a certificatere#resenting the stock of any other cor#oration, e3ce#t a member bank or a cor#oration engaged on ;une /, + in holding the bank#remises of such member bank7 #ro,i e ) !hat this section shall not o#erate to #re ent the ownershi#, sale, or transfer of stock of anyother cor#oration being conditioned u#on the ownershi#, sale, or transfer of a certificate re#resenting stock of a $tate member bank.

M 6 '$1 /. 0s added by act of ;une /, (+9 $tat. />)5 and amended by act of 0ug. 6 , > (+ $tat. : <). !he Banking 0ct of >, referred to in this#aragra#h, was a##ro ed 0ug. 6 , >. 4or similar #ro ision a##licable to stock of national banks, see section > , "e ised $tatutes ( 6 '$1 >6).N

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66. 3aminations of 0ffiliates8n connection with e3aminations of $tate member banks, e3aminers selected or a##ro ed by the Board of @o ernors of the 4ederal"eser e $ystem shall make such e3aminations of the affairs of all affiliates of such banks as shall be necessary to disclose fully therelations between such banks and their affiliates and the effect of such relations u#on the affairs of such banks. !he e3#ense ofe3amination of affiliates of any $tate member bank may, in the discretion of the Board of @o ernors of the 4ederal "eser e $ystem, beassessed against such bank and, when so assessed, shall be #aid by such bank. 8n the e ent of the refusal to gi e any informationre uested in the course of the e3amination of any such affiliate, or in the e ent of the refusal to #ermit such e3amination, or in the e entof the refusal to #ay any e3#ense so assessed, the Board of @o ernors of the 4ederal "eser e $ystem may, in its discretion, re uireany or all $tate member banks affiliated with such affiliate to surrender their stock in the 4ederal reser e bank and to forfeit all rights

and #ri ileges of membershi# in the 4ederal "eser e $ystem, as #ro ided in this section.

M 6 '$1 9. 0s added by act of ;une /, (+9 $tat. //). 0s to e3aminations of affiliates of national banks, see this act, section 6 .N

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6 . 1ommunity De elo#ment 0uthority0 $tate member bank may make in estments directly or indirectly, each of which #romotes the #ublic welfare by benefiting #rimarilylow- and moderate-income communities or families (such as by #ro iding housing, ser ices, or Kobs), to the e3tent #ermissible under$tate law. 0 $tate member bank shall not make any such in estment if the in estment would e3#ose the $tate member bank tounlimited liability. !he Board shall limit a $tate member bankIs in estment in any #roKect and a $tate member bankIs aggregatein estments under this #aragra#h. !he aggregate amount of in estments of any $tate member bank under this #aragra#h may note3ceed an amount e ual to the sum of > #ercent of the $tate member bankIs ca#ital stock actually #aid in and unim#aired and >#ercent of the $tate member bankIs unim#aired sur#lus, unless the Board determines, by order, that a higher amount will #ose nosignificant risk to the affected de#osit insurance fund5 and the $tate member bank is ade uately ca#itali2ed. 8n no case shall theaggregate amount of in estments of any $tate member bank under this #aragra#h e3ceed an amount e ual to the sum of > #ercent ofthe $tate member bankIs ca#ital stock actually #aid in and unim#aired and > #ercent of the $tate member bankIs unim#aired sur#lus.!he foregoing standards and limitations a##ly to in estments under this #aragra#h made by a $tate member bank directly and by itssubsidiaries.

M 6 '$1 9a. 0s added by act of Fct. 6 , 6 ( </ $tat. 6::+) and amended by acts of 4eb. >, 6<</ ( $tat. / /) and Fct. , 6<</ ( 6< $tat. : ).N

0n identical amendment was made by act of Fct. /, 6<</ ( 6< $tat. 6<69).

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%ection 0!. 2articipation in 7otteries 2rohibited(a" 8 tate member bank ma! not00

. deal in lottery tickets56. deal in bets used as a means or substitute for #artici#ation in a lottery5

. announce, ad ertise, or #ublici2e the e3istence of any lottery5

+. announce, ad ertise, or #ublici2e the e3istence or identity of any #artici#ant or winner, as such, in a lottery.

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(b" 8 tate member bank ma! not permit00 . the use of any #art of any of its banking offices by any #erson for any #ur#ose forbidden to the bank under subsection (a), or

6. direct access by the #ublic from any of its banking offices to any #remises used by any #erson for any #ur#ose forbidden to thebank under subsection (a).

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(+" 8s use# in this se+tion00 . !he term Hdeal inH includes making, taking, buying, selling, redeeming, or collecting.

6. !he term HlotteryH includes any arrangement whereby three or more #ersons (the H#artici#antsH) ad ance money or credit toanother in e3change for the #ossibility or e3#ectation that one or more but not all of the #artici#ants (the HwinnersH) will recei eby reason of their ad ances more than the amounts they ha e ad anced, the identity of the winners being determined by anymeans which includes--

0. a random selection5B. a game, race, or contest5 or1. any record or tabulation of the result of one or more e ents in which any #artici#ant has no interest e3ce#t for its

bearing u#on the #ossibility that he may become a winner.. !he term Hlottery ticketH includes any right, #ri ilege, or #ossibility (and any ticket, recei#t, record, or other e idence of any

such right, #ri ilege, or #ossibility) of becoming a winner in a lottery.

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(#" =othing contained in this section #rohibits a $tate member bank from acce#ting de#osits or cashing or otherwise handling checksor other negotiable instruments, or #erforming other lawful banking ser ices for a $tate o#erating a lottery, or for an officer or em#loyeeof that $tate who is charged with the administration of the lottery.

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(e" !he Board of @o ernors of the 4ederal "eser e $ystem shall issue such regulations as may be necessary to the strict enforcementof this section and the #re ention of e asions thereof.

M 6 '$1 . 0s added by act of Dec. >, /: (9 $tat. /< ) effecti e 0#ril , /9. 1orres#onding #rohibitions are contained in section > /B of the "e ised$tatutes, section 6< of the 4ederal De#osit 8nsurance 0ct, and section + < of the =ational ousing 0ct with res#ect to national banks, nonmember insuredbanks, and institutions insured by the 4ederal $a ings and Loan 8nsurance 1or#oration, res#ecti ely.N

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%ection 0). $esolution of (learing )anks(a" Conser4atorship or re+ei4ership

%8ppointment. !he Board may a##oint a conser ator or recei er to take #ossession and control of any uninsured $tatemember bank which o#erates, or o#erates as, a multilateral clearing organi2ation #ursuant to section +< of the 4ederalDe#osit 8nsurance 1or#oration 8m#ro ement 0ct of to the same e3tent and in the same manner as the 1om#troller of the1urrency may a##oint a conser ator or recei er for a national bank.

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. 0ssessments on 4ederal "eser e Banks!he Board of @o ernors of the 4ederal "eser e $ystem shall ha e #ower to le y semiannually u#on the 4ederal reser e banks, in#ro#ortion to their ca#ital stock and sur#lus, an assessment sufficient to #ay its estimated e3#enses and the salaries of its membersand em#loyees for the half year succeeding the le ying of such assessments, together with any deficit carried forward from the#receding half year, and such assessments may include amounts sufficient to #ro ide for the ac uisition by the Board in its own nameof such site or building in the District of 1olumbia as in its Kudgment alone shall be necessary for the #ur#ose of #ro iding suitable andade uate uarters for the #erformance of its functions. 0fter $e#tember , 6<<<, the Board may also use such assessments to ac uire,in its own name, a site or building (in addition to the facilities e3isting on such date) to #ro ide for the #erformance of the functions ofthe Board. 0fter a##ro ing such #lans, estimates, and s#ecifications as it shall ha e caused to be #re#ared, the Board may,notwithstanding any other #ro ision of law, cause to be constructed on any site so ac uired by it a building or buildings suitable andade uate in its Kudgment for its #ur#oses and #roceed to take all such ste#s as it may deem necessary or a##ro#riate in connectionwith the construction, e ui#ment, and furnishing of such building or buildings. !he Board may maintain, enlarge, or remodel anybuilding or buildings so ac uired or constructed and shall ha e sole control of such building or buildings and s#ace therein..

M 6 '$1 6+ . 0s reenacted without change by act of ;une , 66 (+6 $tat. /6 )5 and amended by acts of ;une , + (+9 $tat. <9) and Dec. 6:, 6<<<( + $tat. <6:). By act a##ro ed ;une 6:, > (+ $tat. +6>), #ro ision was made for the furnishing of steam from the central heating #lant to the 4ederal"eser e Board, now the Board of @o ernors of the 4ederal "eser e $ystem.N

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+. Princi#al Fffices5 3#enses5 De#osit of 4unds5 *embers =ot to Be Ffficers or $tockholders of Banks!he #rinci#al offices of the Board shall be in the District of 1olumbia. 0t meetings of the Board the chairman shall #reside, and, in hisabsence, the ice chairman shall #reside. 8n the absence of the chairman and the ice chairman, the board shall elect a member to actas chairman #ro tem#ore. !he Board shall determine and #rescribe the manner in which its obligations shall be incurred and itsdisbursements and e3#enses allowed and #aid, and may lea e on de#osit in the 4ederal "eser e banks the #roceeds of assessments

le ied u#on them to defray its estimated e3#enses and the salaries of its members and em#loyees, whose em#loyment, com#ensation,lea e, and e3#enses shall be go erned solely by the #ro isions of this 0ct, s#ecific amendments thereof, and rules and regulations ofthe Board not inconsistent therewith5 and funds deri ed from such assessments shall not be construed to be @o ernment funds ora##ro#riated moneys. =o member of the Board of @o ernors of the 4ederal "eser e $ystem shall be an officer or director of any bank,banking institution, trust com#any, or 4ederal "eser e bank or hold stock in any bank, banking institution, or trust com#any5 and beforeentering u#on his duties as a member of the Board of @o ernors of the 4ederal "eser e $ystem he shall certify under oath that he hascom#lied with this re uirement, and such certification shall be filed with the secretary of the Board. Whene er a acancy shall occur,other than by e3#iration of term, among the si3 members of the Board of @o ernors of the 4ederal "eser e $ystem a##ointed by thePresident as abo e #ro ided, a succcessor shall be a##ointed by the President, by and with the ad ice and consent of the $enate, tofill such acancy, and when a##ointed he shall hold office for the une3#ired term of his #redecessor.

M 6 '$1 6++. 0s amended by acts of ;une , 66 (+6 $tat. /6 )5 ;une /, (+9 $tat. /:)5 0ug. 6 , > (+ $tat. :<>). !he reference to Hthe si3membersH of the Board of @o ernors is an a##arent error in the law and should read Hthe se en members.H $ee section <, first #aragra#h.N

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>. Aacancies During "ecess of $enate!he President shall ha e #ower to fill all acancies that may ha##en on the Board of @o ernors of the 4ederal "eser e $ystem duringthe recess of the $enate by granting commissions which shall e3#ire with the ne3t session of the $enate.

M 6 '$1 6+>. 0s amended by act of ;une , 66 (+6 $tat. /6 ).N

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/. "eser ation of Powers of $ecretary of !reasury=othing in this 0ct contained shall be construed as taking away any #owers heretofore ested by law in the $ecretary of the !reasurywhich relate to the su#er ision, management, and control of the !reasury De#artment and bureaus under such de#artment, andwhere er any #ower ested by this 0ct in the Board of @o ernors of the 4ederal "eser e $ystem or the 4ederal reser e agent a##earsto conflict with the #owers of the $ecretary of the !reasury, such #owers shall be e3ercised subKect to the su#er ision and control of the$ecretary.

M 6 '$1 6+/. 0s reenacted without change by act of ;une , 66 (+6 $tat. /6 ).N

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:. 0nnual "e#ort!he Board of @o ernors of the 4ederal "eser e $ystem shall annually make a full re#ort of its o#erations to the $#eaker of the ouseof "e#resentati es, who shall cause the same to be #rinted for the information of the 1ongress. !he re#ort re uired under this#aragra#h shall include the re#orts re uired under section :<: of the ual 1redit F##ortunity 0ct, section 9(f)(:) of the 4ederal!rade 1ommission 0ct, section + of the !ruth in Lending 0ct, and the tenth undesignated #aragra#h of this section.

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M 6 '$1 6+:. 0s reenacted without change by act of ;une , 66 (+6 $tat. /6 ) and amended by acts of ;une , 66, and Dec. 6:, 6<<< ( + $tat. < <).N

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9. 8ssuance of =ational 1urrency and 4ederal "eser e =otes$ection three hundred and twenty-four of the "e ised $tatutes of the 'nited $tates shall be amended so as to read as follows7

$ec. 6+. !here shall be in the De#artment of the !reasury a bureau charged with the e3ecution of all laws #assed by 1ongressrelating to the issue and regulation of national currency secured by 'nited $tates bonds, and under the general su#er ision of theBoard of @o ernors of the 4ederal "eser e $ystem, of all 4ederal "eser e notes, e3ce#t for the cancellation and destruction, andaccounting with res#ect to such cancellation and destruction, of 4ederal "eser e notes unfit for circulation, the chief officer of whichbureau shall be called the 1om#troller of the 1urrency and shall #erform his duties under the general directions of the $ecretary of the!reasury. !he 1om#troller of the 1urrency shall ha e the same authority o er matters within the Kurisdiction of the 1om#troller as theDirector of the Fffice of !hrift $u#er ision has o er matters within the DirectorIs Kurisdiction under section (b)( ) of the ome FwnersILoan 0ct. !he $ecretary of the !reasury may not delay or #re ent the issuance of any rule or the #romulgation of any regulation by the1om#troller of the 1urrency.

M 6 '$1 . 0s reenacted without change by act of ;une , 66 (+6 $tat. /6 )5 and amended by acts of *ay 6<, // (9< $tat. / ) and $e#t. 6 , + ( <9$tat. 66 6).N

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. Branch 4ederal "eser e Bank Buildings=o 4ederal "eser e bank may authori2e the ac uisition or construction of any branch building, or enter into any contract or other

obligation for the ac uisition or construction of any branch building, without the a##ro al of the Board.

M 6 '$1 >66. 0s added by act of ;une , 66 (+6 $tat. /66)5 and amended by acts of 4eb. /, 6 (+6 $tat. 66 )5 ;uly <, +: (/ $tat. >6<)5 *ay 6 , >(/: $tat. + )5 0ug. , /6 (:/ $tat. + 9)5 Fct. 69, :+ (99 $tat. ><>)5 and Fct. 6+, 6 ( </ $tat. ++).N

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<. "ecord of F#en *arket and Fther Policies!he Board of @o ernors of the 4ederal "eser e $ystem shall kee# a com#lete record of the action taken by the Board and by the4ederal F#en *arket 1ommittee u#on all uestions of #olicy relating to o#en-market o#erations and shall record therein the otestaken in connection with the determination of o#en-market #olicies and the reasons underlying the action of the Board and the1ommittee in each instance. !he Board shall kee# a similar record with res#ect to all uestions of #olicy determined by the Board, andshall include in its annual re#ort to the 1ongress a full account of the action so taken during the #receding year with res#ect to o#en-market #olicies and o#erations and with res#ect to the #olicies determined by it and shall include in such re#ort a co#y of the recordsre uired to be ke#t under the #ro isions of this #aragra#h.

M 6 '$1 6+:a. 0s added by act of 0ug. 6 , > (+ $tat. :<>).N

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%ection / !. 3mergency !dvances to Groups of ember )anks M

. 0uthority of "eser e Banks to *ake 0d ances#on recei ing the consent of not less than fi e members of the Board of @o ernors of the 4ederal "eser e $ystem, any 4ederalreser e bank may make ad ances, in such amount as the board of directors of such 4ederal reser e bank may determine, to grou#s offi e or more member banks within its district, a maKority of them inde#endently owned and controlled, u#on their time or demand#romissory notes, #ro ided the bank or banks which recei e the #roceeds of such ad ances as herein #ro ided ha e no ade uateamounts of eligible and acce#table assets a ailable to enable such bank or banks to obtain sufficient credit accommodations from the4ederal reser e bank through rediscounts or ad ances other than as #ro ided in section <(b). !he liability of the indi idual banks ineach grou# must be limited to such #ro#ortion of the total amount ad anced to such grou# as the de#osit liability of the res#ecti ebanks bears to the aggregate de#osit liability of all banks in such grou#, but such ad ances may be made to a lesser number of suchmember banks if the aggregate amount of their de#osit liability constitutes at least < #er centum of the entire de#osit liability of themember banks within such district. $uch banks shall be authori2ed to distribute the #roceeds of such loans to such of their number andin such amount as they may agree u#on, but before so doing they shall re uire such reci#ient banks to de#osit with a suitable trustee,re#resenting the entire grou#, their indi idual notes made in fa or of the grou# #rotected by such collateral security as may be agreedu#on. 0ny 4ederal reser e bank making such ad ance shall charge interest or discount thereon at a rate not less than #er centum





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abo e its discount rate in effect at the time of making such ad ance. =o such note u#on which ad ances are made by a 4ederalreser e bank under this section shall be eligible under section / of this 0ct as collateral security for 4ederal reser e notes.

M 6 '$1 +:a. 0s added by act of 4eb. 6:, 6 (+: $tat. >/).N

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6. 4oreign Fbligations as $ecurity for 0d ances=o obligations of any foreign go ernment, indi idual, #artnershi#, association, or cor#oration organi2ed under the laws thereof shall beeligible as collateral security for ad ances under this section.


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. 0uthority of *ember Banks to Fbligate !hemsel es=o obligations of any foreign go ernment, indi idual, #artnershi#, association, or cor#oration organi2ed under the laws thereof shall beeligible as collateral security for ad ances under this section.


Pre iously section <(a), this section was redesignated by act of Dec. , ( <> $tat. 66: ).

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%ection / ). !dvances to Individual ember )anks M(a" 0ny 4ederal "eser e bank, under rules and regulations #rescribed by the Board of @o ernors of the 4ederal "eser e $ystem, maymake ad ances to any member bank on its time or demand notes ha ing maturities of not more than four months and which aresecured to the satisfaction of such 4ederal "eser e bank. =otwithstanding the foregoing, any 4ederal "eser e bank, under rules andregulations #rescribed by the Board of @o ernors of the 4ederal "eser e $ystem, may make ad ances to any member bank on its timenotes ha ing such maturities as the Board may #rescribe and which are secured by mortgage loans co ering a one-to-four familyresidence. $uch ad ances shall bear interest at a rate e ual to the lowest discount rate in effect at such 4ederal "eser e bank on thedate of such note.

M 6 '$1 +:b(a). 0s added by act of 4eb. 6:, 6 (+: $tat. >/)5 and amended by acts of 4eb. , (+: $tat. : +)5 *arch , (+9 $tat. :)5 0ug. 6 , >(+ $tat. :<>)5 Fct. 9, :+ (99 $tat. /9)5 *arch , 9< ( + $tat. +<)5 and Dec. , ( <> $tat. 66: ).N

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Limitations on 0d ances(b"

. 3ce#t as #ro ided in #aragra#h (6), no ad ances to any underca#itali2ed de#ository institution by any 4ederal "eser e bankunder this section may be outstanding for more than /< days in any 6<-day #eriod.

6.

0. 8f-- i. the head of the a##ro#riate 4ederal banking agency certifies in ad ance in writing to the 4ederal "eser ebank that any de#ository institution is iable5 or

ii. (ii)the Board conducts an e3amination of any de#ository institution and the 1hairman of the Board certifies inwriting to the 4ederal "eser e bank that the institution is iable, the limitation contained in #aragra#h ( ) shallnot a##ly during the /<-day #eriod beginning on the date such certification is recei ed.

B. !he /<-day #eriod may be e3tended for additional /<-day #eriods u#on recei#t by the 4ederal "eser e bank ofadditional written certifications under sub#aragra#h (0) with res#ect to each such additional #eriod.

1. !he authority of the head of any agency to issue a written certification of iability under this #aragra#h may not bedelegated to any other #erson.

D. =otwithstanding #aragra#h ( ), an underca#itali2ed de#ository institution which does not ha e a certificate of iabilityin effect under this #aragra#h may ha e ad ances outstanding for more than /< days in any 6<-day #eriod if theBoard elects to treat--

i. such institution as critically underca#itali2ed under #aragra#h ( )5 and

ii. any such ad ance as an ad ance described in sub#aragra#h (0)(i) of #aragra#h ( ).



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. =otwithstanding any other #ro ision of this section, if--i. in the case of any critically underca#itali2ed de#ository institution--

8. any ad ance under this section to such institution is outstanding without #ayment ha ing beendemanded as of the end of the >-day #eriod beginning on the date the institution becomes a criticallyunderca#itali2ed de#ository institution5 or

88. any new ad ance is made to such institution under this section after the end of such #eriod5 andii. after the end of that >-day #eriod, the De#osit 8nsurance 4und of the 4ederal De#osit 8nsurance 1or#oration

incurs a loss e3ceeding the loss that the 1or#oration would ha e incurred if it had li uidated that institution asof the end of that #eriod the Board shall, subKect to the limitations in sub#aragra#h (B), be liable to the4ederal De#osit 8nsurance 1or#oration for the e3cess loss, without regard to the terms of the ad ance or anycollateral #ledged to secure the ad ance.

4. !he liability of the Board under sub#aragra#h (0) shall not e3ceed the lesser of the following7i. !he amount of the loss the Board or any 4ederal "eser e bank would ha e incurred on the increases in the

amount of ad ances made after the >-day #eriod referred to in sub#aragra#h (0) if those increased ad anceshad been unsecured.

ii. !he interest recei ed on the increases in the amount of ad ances made after the >-day #eriod referred to insub#aragra#h (0).

@. !he Board shall #ay the 4ederal De#osit 8nsurance 1or#oration the amount of any liability of the Board undersub#aragra#h (0).

. !he Board shall re#ort to the 1ongress on any e3cess loss liability it incurs under sub#aragra#h (0), as limited bysub#aragra#h (B)(i), and the reasons therefore, not later than / months after incurring the liability.

. 0 4ederal "eser e bank shall ha e no obligation to make, increase, renew, or e3tend any ad ance or discount under this 0ctto any de#ository institution.

+. 0. !he term 0appropriate Fe era! %anking agency0 has the same meaning as in section of the 4ederal De#osit

8nsurance 0ct.B. !he term H critica!!y un ercapita!i1e H has the same meaning as in section 9 of the 4ederal De#osit 8nsurance 0ct.1. !he term 0 epository institution0 has the same meaning as in section of the 4ederal De#osit 8nsurance 0ct.D. !he term 0un ercapita!i1e epository institution0 means any de#ository institution which--

i. is underca#itali2ed, as defined in section 9 of the 4ederal De#osit 8nsurance 0ct5 orii. has a com#osite 10* L rating of > under the 'niform 4inancial 8nstitutions "ating $ystem (or an e ui alent

rating by any such agency under a com#arable rating system) as of the most recent e3amination of suchinstitution.

. 0 de#ository institution is 0,ia%!e0 if the Board or the a##ro#riate 4ederal banking agency determines, gi ing dueregard to the economic conditions and circumstances in the market in which the institution o#erates, that theinstitution--

i. is not critically underca#itali2ed5ii. is not e3#ected to become critically underca#itali2ed5 andiii. is not e3#ected to be #laced in conser atorshi# or recei ershi#.

M 6 '$1 +:b(b). 0s added by act of Dec. , ( <> $tat. 66: ).N

Pre iously section <(b), this section was redesignated by act of Dec. , ( <> $tat. 66: ).

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%ection //. 2owers of )oard of Governors of the #ederal $eserve %ystem!he Board of @o ernors of the 4ederal "eser e $ystem shall be authori2ed and em#owered7

3aminations and "e#orts(a"

. !o e3amine at its discretion the accounts, books, and affairs of each 4ederal reser e bank and of each member bank and tore uire such statements and re#orts as it may deem necessary. !he said board shall #ublish once each week a statementshowing the condition of each 4ederal reser e bank and a consolidated statement for all 4ederal reser e banks. $uchstatements shall show in detail the assets and liabilities of the 4ederal reser e banks, single and combined, and shall furnishfull information regarding the character of the money held as reser e and the amount, nature, and maturities of the #a#er andother in estments owned or held by 4ederal reser e banks.

6. !o re uire any de#ository institution s#ecified in this #aragra#h to make, at such inter als as the Board may #rescribe, suchre#orts of its liabilities and assets as the Board may determine to be necessary or desirable to enable the Board to dischargeits res#onsibility to monitor and control monetary and credit aggregates. $uch re#orts shall be made (0) directly to the Board in

the case of member banks and in the case of other de#ository institutions whose reser e re uirements under section of this

http://www.federalreserve.gov/aboutthefed/section10b.htm#_ednref1







0ct e3ceed 2ero, and (B) for all other re#orts to the Board through the (i) 4ederal De#osit 8nsurance 1or#oration in the case ofinsured $tate nonmember banks, sa ings banks, and mutual sa ings banks, (ii) =ational 1redit 'nion 0dministration Board inthe case of insured credit unions, (iii) the Director of the Fffice of !hrift $u#er ision in the case of any sa ings associationwhich is an insured de#ository institution (as defined in section of the 4ederal De#osit 8nsurance 0ct) or which is a memberas defined in section 6 of the 4ederal ome Loan Bank 0ct, and (i ) such $tate officer or agency as the Board may designatein the case of any other ty#e of bank, sa ings and loan association, or credit union. !he Board shall endea or to a oid theim#osition of unnecessary burdens on re#orting institutions and the du#lication of other re#orting re uirements. 3ce#t asotherwise re uired by law, any data #ro ided to any de#artment, agency, or instrumentality of the 'nited $tates #ursuant toother re#orting re uirements shall be made a ailable to the Board. !he Board may classify de#ository institutions for the#ur#oses of this #aragra#h and may im#ose different re uirements on each such class.

M 6 '$1 6+9(a). 0s amended by acts of *arch , 9< ( + $tat. 6) and 0ug. , 9 ( < $tat. + ).N

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"ediscounts by Fne "eser e Bank for 0nother (b" !o #ermit, or, on the affirmati e ote of at least fi e members of the Board of @o ernors of the 4ederal "eser e $ystem to re uire4ederal reser e banks to rediscount the discounted #a#er of other 4ederal reser e banks at rates of interest to be fi3ed by the Board of@o ernors of the 4ederal "eser e $ystem.

M 6 '$1 6+9(b). Part of original 4ederal "eser e 0ct5 not amended.N

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$us#ension of "eser e "e uirements(+" !o sus#end for a #eriod not e3ceeding thirty days, and from time to time to renew such sus#ension for #eriods not e3ceeding fifteendays, any reser e re uirements s#ecified in this 0ct.

M 6 '$1 6+9(c). 0s amended by acts of ;une 6, +> (> $tat. 6 :) and *arch 9, /9 (96 $tat. ><).N

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8ssue and "etirement of 4ederal "eser e =otes(#" !o su#er ise and regulate through the $ecretary of the !reasury the issue and retirement of 4ederal reser e notes, e3ce#t for thecancellation and destruction, and accounting with res#ect to such cancellation and destruction, of notes unfit for circulation, and to#rescribe rules and regulations under which such notes may be deli ered by the $ecretary of the !reasury to the 4ederal reser eagents a##lying therefor.

M 6 '$1 6+9(d). 0s amended by acts of *ay 6<, // (9< $tat. / ) and $e#t. 6 , + ( <9 $tat. 66 ). 4or #ro isions go erning the issue of 4ederal"eser e notes, see section /.N

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"eclassification of "eser e 1ities(e" !o add to the number of cities classified as reser e cities under e3isting law in which national banking associations are subKect tothe reser e re uirements set forth in section twenty of this 0ct5 or to reclassifying e3isting reser e cities or to terminate their designationas such.

M 6 '$1 6+9(e). 0s amended by act of ;uly 69, > (: $tat. 6/+), effecti e ;uly 69, /6. !he reference to Hsection twentyH is an error in the law and shouldcorrectly refer to Hsection nineteen.HN

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$us#ension or "emo al of Ffficers and Directors of "eser e Banks(f" !o sus#end or remo e any officer or director of any 4ederal reser e bank, the cause of such remo al to be forthwith communicatedin writing by the Board of @o ernors of the 4ederal "eser e $ystem to the remo ed officer or director and to said bank.

M 6 '$1 6+9(f). Part of original 4ederal "eser e 0ct5 not amended.N

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1harging Fff Losses of "eser e Banks(g" !o re uire the writing off of doubtful or worthless assets u#on the books and balance sheets of 4ederal reser e banks.















M 6 '$1 6+9(g). Part of original 4ederal "eser e 0ct5 not amended.N

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$us#ension, Li uidation, or "eorgani2ation of "eser e Banks(h" !o sus#end, for the iolation of any of the #ro isions of this 0ct, the o#erations of any 4ederal reser e bank, to take #ossessionthereof, administer the same during the #eriod of sus#ension, and, when deemed ad isable, to li uidate or reorgani2e such bank.

M 6 '$1 6+9(h). Part of original 4ederal "eser e 0ct5 not amended.N

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"ules and "egulations(i" !o re uire bonds of 4ederal reser e agents, to make regulations for the safeguarding of all collateral, bonds, 4ederal reser e notes,money or #ro#erty of any kind de#osited in the hands of such agents, and said board shall #erform the duties, functions, or ser icess#ecified in this 0ct, and make all rules and regulations necessary to enable said board effecti ely to #erform the same.

M 6 '$1 6+9(i). Part of original 4ederal "eser e 0ct5 not amended.N

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$u#er ision F er "eser e Banks(E" !o e3ercise general su#er ision o er said 4ederal reser e banks.

M 6 '$1 6+9(K). Part of original 4ederal "eser e 0ct5 not amended.N

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Delegation of 4unctions(k" !o delegate, by #ublished order or rule and subKect to the 0dministrati e Procedure 0ct, any of its functions, other than thoserelating to rulemaking or #ertaining #rinci#ally to monetary and credit #olicies, to one or more administrati e law Kudges, members orem#loyees of the Board, or 4ederal "eser e banks. !he assignment of res#onsibility for the #erformance of any function that the Boarddetermines to delegate shall be a function of the 1hairman. !he Board shall, u#on the ote of one member, re iew action taken at adelegated le el within such time and in such manner as the Board shall by rule #rescribe.

M 6 '$1 6+9(k). 0s added by the acts of =o . >, // (9< $tat. +) and *arch 6:, :9 ( 6 $tat. 9 ).N

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m#loyees of Board of @o ernors of the 4ederal "eser e $ystem(l" !o em#loy such attorneys, e3#erts, assistants, clerks, or other em#loyees as may be deemed necessary to conduct the business ofthe board. 0ll salaries and fees shall be fi3ed in ad ance by said board and shall be #aid in the same manner as the salaries of themembers of said board. 0ll such attorneys, e3#erts, assistants, clerks, and other em#loyees shall be a##ointed without regard to the#ro isions of the 0ct of ;anuary si3teenth, eighteen hundred and eighty-three ( olume twenty-two, 'nited $tates $tatutes at large, #agefour hundred and three), and amendments thereto, or any rule or regulation made in #ursuance thereof7 Pro ided, !hat nothing hereinshall #re ent the President from #lacing said em#loyees in the classified ser ice.

M 6 '$1 6+9(l). Part of original 4ederal "eser e 0ct5 not amended.N

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Loans by *ember Banks on $tock or Bond 1ollateral

M$ubsection (m) ( 6 '$1 6+9(m)) was re#ealed by act of =o . 6, ( $tat. +: ).N

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3amination of De#ository 8nstitutions and 0ffiliates(n" !o e3amine, at the BoardIs discretion, any de#ository institution, and any affiliate of such de#ository institution, in connection withany ad ance to, any discount of any instrument for, or any re uest for any such ad ance or discount by, such de#ository institutionunder this 0ct.

















M 6 '$1 6+9(n). 0s added by act of Dec. , . !he original subsection (n), which authori2ed the $ecretary of the ! reasury, as necessary, to re uire the#ayment and deli ery of all gold coin, gold bullion, and gold certificates to the !reasurer of the 'nited $tates in e3change for another form of '.$. currency, wasre#ealed by act of $e#t. , 96 ( / $tat. </9).N

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0##ointment of 1onser ator or "ecei er (o" !he Board may a##oint the 4ederal De#osit 8nsurance 1or#oration as conser ator or recei er for a $tate member bank undersection (c)( ) of the 4ederal De#osit 8nsurance 0ct.

M 6 '$1 6+9(o). 0s added by act of Dec. , ( <> $tat. 66: ) and redesignated by act of Fct. 69, 6 ( </ $tat. +<9<).N

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0uthority(p" !he Board may act in its own name and through its own attorneys in enforcing any #ro ision of this title, regulations #romulgatedhereunder, or any other law or regulation, or in any action, suit, or #roceeding to which the Board is a #arty and which in ol es theBoardIs regulation or su#er ision of any bank, bank holding com#any (as defined in section 6 of the Bank olding 1om#any 0ct of

>/), or other entity, or the administration of its o#erations.

M 6 '$1 6+9(#). 0s added by act of $e#t. 6 , + ( <9 $tat. 66 6).N

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niform Protection 0uthority for 4ederal "eser e 4acilities( "

. =otwithstanding any other #ro ision of law, to authori2e #ersonnel to act as law enforcement officers to #rotect and safeguardthe #remises, grounds, #ro#erty, #ersonnel, including members of the Board, of the Board, or any 4ederal reser e bank, ando#erations conducted by or on behalf of the Board or a reser e bank.

6. !he Board may, subKect to the regulations #rescribed under #aragra#h (>), delegate authority to a 4ederal reser e bank toauthori2e #ersonnel to act as law enforcement officers to #rotect and safeguard the bankIs #remises, grounds, #ro#erty,#ersonnel, and o#erations conducted by or on behalf of the bank.

. Law enforcement officers designated or authori2ed by the Board or a reser e bank under #aragra#h ( ) or (6) are authori2edwhile on duty to carry firearms and make arrests without warrants for any offense against the 'nited $tates committed in their#resence, or for any felony cogni2able under the laws of the 'nited $tates committed or being committed within the buildingsand grounds of the Board or a reser e bank if they ha e reasonable grounds to belie e that the #erson to be arrested hascommitted or is committing such a felony. $uch officers shall ha e access to law enforcement information that may benecessary for the #rotection of the #ro#erty or #ersonnel of the Board or a reser e bank.

+. 4or #ur#oses of this subsection, the term Hlaw enforcement officersH means #ersonnel who ha e successfully com#leted lawenforcement training and are authori2ed to carry firearms and make arrests #ursuant to this subsection.>. !he law enforcement authorities #ro ided for in this subsection may be e3ercised only #ursuant to regulations #rescribed by

the Board and a##ro ed by the 0ttorney @eneral.

M 6 '$1 6+9( ). 0s added by act of Fct. 6/, 6<< ( > $tat. ).N

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0uthority of Board When $ufficient =umber of *embers 0re =ot in Fffice or 0 ailable(r"

. 0ny action that this 0ct #ro ides may be taken only u#on the affirmati e ote of > members of the Board may be taken u#onthe unanimous ote of all members then in office if there are fewer than > members in office at the time of the action.

0. 0ny action that the Board is otherwise authori2ed to take under section ( ) may be taken u#on the unanimous oteof all a ailable members then in office, if--i. at least 6 members are a ailable and all a ailable members #artici#ate in the action5ii. the a ailable members unanimously determine that--

8. unusual and e3igent circumstances e3ist and the borrower is unable to secure ade uate creditaccommodations from other sources5

88. action on the matter is necessary to #re ent, correct, or mitigate serious harm to the economy or thestability of the financial system of the 'nited $tates5

888. des#ite the use of all means a ailable (including all a ailable tele#honic, telegra#hic, and otherelectronic means), the other members of the Board ha e not been able to be contacted on thematter5 and

8A. action on the matter is re uired before the number of Board members otherwise re uired to ote onthe matter can be contacted through any a ailable means (including all a ailable tele#honic,telegra#hic, and other electronic means)5 and

iii. any credit e3tended by a 4ederal reser e bank #ursuant to such action is #ayable u#on demand of the Board.











B. !he a ailable members of the Board shall document in writing the determinations re uired by sub#aragra#h (0)(ii),and such written findings shall be included in the record of the action and in the official minutes of the Board, andco#ies of such record shall be #ro ided as soon as #racticable to the members of the Board who were not a ailable to#artici#ate in the action and to the 1hairman of the 1ommittee on Banking, ousing, and 'rban 0ffairs of the $enateand to the 1hairman of the 1ommittee on 4inancial $er ices of the ouse of "e#resentati es.

M 6 '$1 6+9(r). 0s added by act of =o ember 6/, 6<<6 ( / $tat. 6 +<).N

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%ection //!. 2ricing of %ervices(a" =ot later than the first day of the si3th month after the date of enactment of the *onetary 1ontrol 0ct of 9<, the Board shall#ublish for #ublic comment a set of #ricing #rinci#les in accordance with this section and a #ro#osed schedule of fees based u#onthose #rinci#les for 4ederal "eser e bank ser ices to de#ository institutions, and not later than the first day of the eighteenth monthafter the date of enactment of the *onetary 1ontrol 0ct of 9<, the Board shall begin to #ut into effect a schedule of fees for suchser ices which is based on those #rinci#les.

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(b" !he ser ices which shall be co ered by the schedule of fees under subsection (a) are--. currency and coin ser ices5

6. check clearing and collection ser ices5. wire transfer ser ices5

+. automated clearinghouse ser ices5>. settlement ser ices5/. securities safekee#ing ser ices5:. 4ederal "eser e float5 and9. any new ser ices which the 4ederal "eser e $ystem offers, including but not limited to #ayment ser ices to effectuate the

electronic transfer of funds.

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(+" !he schedule of fees #rescribed #ursuant to this section shall be based on the following #rinci#les7. 0ll 4ederal "eser e bank ser ices co ered by the fee schedule shall be #riced e3#licitly.

6. 0ll 4ederal "eser e bank ser ices co ered by the fee schedule shall be a ailable to nonmember de#ository institutions andsuch ser ices shall be #riced at the same fee schedule a##licable to member banks, e3ce#t that nonmembers shall be subKectto any other terms, including a re uirement of balances sufficient for clearing #ur#oses, that the Board may determine area##licable to member banks.

. F er the long run, fees shall be established on the basis of all direct and indirect costs actually incurred in #ro iding the4ederal "eser e ser ices #riced, including interest on items credited #rior to actual collection, o erhead, and an allocation ofim#uted costs which takes into account the ta3es that would ha e been #aid and the return on ca#ital that would ha e been#ro ided had the ser ices been furnished by a #ri ate business firm, e3ce#t that the #ricing #rinci#les shall gi e due regard tocom#etiti e factors and the #ro ision of an ade uate le el of such ser ices nationwide.

+. 8nterest on items credited #rior to collection shall be charged at the current rate a##licable in the market for 4ederal funds.

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(#" !he Board shall re uire reductions in the o#erating budgets of the 4ederal "eser e banks commensurate with any actual or#roKected decline in the olume of ser ices to be #ro ided by such banks. !he full amount of any sa ings so reali2ed shall be #aid intothe 'nited $tates !reasury.

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(e" 0ll de#ository institutions, as defined in section (b)( ) ( 6 '.$.1. +/ (b)( )), may recei e for de#osit and as de#osits anye idences of transaction accounts, as defined by section (b)( ) ( 6 '.$.1. +/ (b)( )) from other de#ository institutions, as defined insection (b)( ) ( 6 '.$.1. +/ (b)( )) or from any office of any 4ederal "eser e bank without regard to any 4ederal or $tate lawrestricting the number or the #hysical location or locations of such de#ository institutions.













M 6 '$1 6+9a. 0s added by acts of *arch , 9< ( + $tat. +<) and 0ug. <, 9: ( < $tat. />6).N

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%ection //). !nnual Independent !udits of #ederal $eserve )anks and )oard!he Board shall order an annual inde#endent audit of the financial statements of each 4ederal reser e bank and the Board.

M 6 '$1 6+9b. 0s added by act of =o . 6, ( $tat. +:>).N

%ection /1. #ederal !dvisory (ouncil

. 1reation, *embers, and *eetings!here is hereby created a 4ederal 0d isory 1ouncil, which shall consist of as many members as there are 4ederal reser e districts.

ach 4ederal reser e bank by its board of directors shall annually select from its own 4ederal reser e district one member of saidcouncil, who shall recei e such com#ensation and allowances as may be fi3ed by his board of directors subKect to the a##ro al of theBoard of @o ernors of the 4ederal "eser e $ystem. !he meetings of said ad isory council shall be held at Washington, District of1olumbia, at least four times each year, and oftener if called by the Board of @o ernors of the 4ederal "eser e $ystem. !he councilmay in addition to the meetings abo e #ro ided for hold such other meetings in Washington, District of 1olumbia, or elsewhere, as itmay deem necessary, may select its own officers and ado#t its own methods of #rocedure, and a maKority of its members shallconstitute a uorum for the transaction of business. Aacancies in the council shall be filled by the res#ecti e reser e banks, andmembers selected to fill acancies, shall ser e for the une3#ired term.

M 6 '$1 6/ . Part of original 4ederal "eser e 0ct5 not amended.N

6. Powers!he 4ederal 0d isory 1ouncil shall ha e #ower, by itself or through its officers, ( ) to confer directly with the Board of @o ernors of the4ederal "eser e $ystem on general business conditions5 (6) to make oral or written re#resentations concerning matters within theKurisdiction of said board5 ( ) to call for information and to make recommendations in regard to discount rates, rediscount business,

note issues, reser e conditions in the arious districts, the #urchase and sale of gold or securities by reser e banks, o#en-marketo#erations by said banks, and the general affairs of the reser e banking system.

M 6 '$1 6/6. Part of original 4ederal "eser e 0ct5 not amended.N

%ection /1!. #ederal +pen arket (ommittee

1reation, *embers, and *eetings(a" !here is hereby created a 4ederal F#en *arket 1ommittee (hereinafter referred to as the H1ommitteeH), which shall consist of themembers of the Board of @o ernors of the 4ederal "eser e $ystem and fi e re#resentati es of the 4ederal "eser e banks to beselected as hereinafter #ro ided. $uch re#resentati es shall be #residents or first ice #residents of 4ederal "eser e banks and,beginning with the election for the term commencing *arch , + , shall be elected annually as follows7 Fne by the board of directorsof the 4ederal "eser e Bank of =ew &ork, one by the boards of directors of the 4ederal "eser e Banks of Boston, Philadel#hia, and"ichmond, one by the boards of directors of the 4ederal "eser e Banks of 1le eland and 1hicago, one by the boards of directors ofthe 4ederal "eser e Banks of 0tlanta, Dallas, and $t. Louis, and one by the boards of directors of the 4ederal "eser e Banks of*innea#olis, Eansas 1ity, and $an 4rancisco. 8n such elections each board of directors shall ha e one ote5 and the details of suchelections may be go erned by regulations #rescribed by the committee, which may be amended from time to time. 0n alternate toser e in the absence of each such re#resentati e shall likewise be a #resident or first ice #resident of a 4ederal "eser e bank andshall be elected annually in the same manner. !he meetings of said committee shall be held at Washington, District of 1olumbia, atleast four times each year u#on the call of the chairman of the Board of @o ernors of the 4ederal "eser e $ystem or at the re uest ofany three members of the 1ommittee.

M 6 '$1 6/ (a). 0s added by act of ;une /, (+9 $tat. /9)5 com#letely re ised by act of 0ug. 6 , > (+ $tat. :<>)5 and further amended by act of ;uly, +6 (>/ $tat. /+:).N





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Partici#ation of "eser e Banks5 "egulations of 1ommittee(b" =o 4ederal "eser e bank shall engage or decline to engage in o#en-market o#erations under section + of this 0ct e3ce#t inaccordance with the direction of and regulations ado#ted by the 1ommittee. !he 1ommittee shall consider, ado#t, and transmit to these eral 4ederal "eser e banks, regulations relating to the o#en-market transactions of such banks.

M 6 '$1 6/ (b). 0s added by act of ;une /, (+9 $tat. /9)5 and amended by act of 0ug. 6 , > (+ $tat. :</).N

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@o erning Princi#les(+" !he time, character, and olume of all #urchases and sales of #a#er described in section + of this 0ct as eligible for o#en-marketo#erations shall be go erned with a iew to accommodating commerce and business and with regard to their bearing u#on the generalcredit situation of the country.

M 6 '$1 6/ (c). 0s added by act of ;une /, (+9 $tat. /9)5 and reenacted without change by act of 0ug. 6 , > (+ $tat. :</).N

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%ection /=. 2owers of #ederal $eserve )anks

. "ecei#t of De#osits and 1ollections0ny 4ederal reser e bank may recei e from any of its member banks, or other de#ository institutions, and from the 'nited $tates,de#osits of current funds in lawful money, national-bank notes, 4ederal reser e notes, or checks, and drafts, #ayable u#on#resentation, or other items, and also, for collection, maturing notes and bills5 or, solely for #ur#oses of e3change or of collection, mayrecei e from other 4ederal reser e banks de#osits of current funds in lawful money, national-bank notes, or checks u#on other 4ederalreser e banks, and checks and drafts, #ayable u#on #resentation within its district, or other items, and maturing notes and bills #ayablewithin its district5 or, solely for the #ur#oses of e3change or of collection, may recei e from any nonmember bank or trust com#any orother de#ository institution de#osits of current funds in lawful money, national-bank notes, 4ederal reser e notes, checks and drafts#ayable u#on #resentation or other items, or maturing notes and bills7 #ro,i e , $uch nonmember bank or trust com#any or otherde#ository institution maintains with the 4ederal reser e bank of its district a balance in such amount as the Board determines takinginto account items in transit, ser ices #ro ided by the 4ederal "eser e Bank, and other factors as the Board may deem a##ro#riate5#ro,i e further , !hat nothing in this or any other section of this 0ct shall be construed as #rohibiting a member or nonmember bank orother de#ository institution from making reasonable charges, to be determined and regulated by the Board of @o ernors of the 4ederal"eser e $ystem, but in no case to e3ceed < cents #er G << or fraction thereof, based on the total of checks and drafts #resented atany one time, for collection or #ayment of checks and drafts and remission therefor by e3change or otherwise5 but no such chargesshall be made against the 4ederal reser e banks.

M 6 '$1 +6. 0s amended by act of $e#t. :, / ( $tat. :>6), which com#letely re ised this section5 ;une 6 , : (+< $tat. 6 +)5 and *arch , 9< ( +$tat. ). With res#ect to the recei#t by "eser e Banks of checks and drafts on de#osit, see also section /.N

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6. Discount of 1ommercial, 0gricultural, and 8ndustrial Pa#er #on the indorsement of any of its member banks, which shall be deemed a wai er of demand, notice and #rotest by such bank as toits own indorsement e3clusi ely, any 4ederal reser e bank may discount notes, drafts, and bills of e3change arising out of actualcommercial transactions5 that is, notes, drafts, and bills of e3change issued or drawn for agricultural, industrial, or commercial#ur#oses, or the #roceeds of which ha e been used, or are to be used, for such #ur#oses, the Board of @o ernors of the 4ederal"eser e $ystem to ha e the right to determine or define the character of the #a#er thus eligible for discount, within the meaning of this0ct. =othing in this 0ct contained shall be construed to #rohibit such notes, drafts, and bills of e3change, secured by sta#le agricultural#roducts, or other goods, wares, or merchandise from being eligible for such discount, and the notes, drafts, and bills of e3change offactors issued as such making ad ances e3clusi ely to #roducers of sta#le agricultural #roducts in their raw state shall be eligible forsuch discount5 but such definition shall not include notes, drafts, or bills co ering merely in estments or issued or drawn for the #ur#ose

of carrying or trading in stocks, bonds, or other in estment securities, e3ce#t bonds and notes of the go ernment of the 'nited $tates.











=otes, drafts, and bills admitted to discount under the terms of this #aragra#h must ha e a maturity at the time of discount of not morethan < days, e3clusi e of grace.

M 6 '$1 + . 0s amended by act of $e#t. :, / ( $tat. :>6), which com#letely re ised this section5 and by act of *arch +, 6 (+6 $tat. +:9). 0s used inthis #aragra#h the #hrase Hbonds and notes of @o ernment of the 'nited $tatesH includes !reasury bills or certificates of indebtedness. ($ee act of ;une :,

6 , amending section > of $econd Liberty Bond 0ct of $e#t. 6+, :). 0s to eligibility for discount under this #aragra#h of notes re#resenting loans to financebuilding construction, see this act, section 6+).N

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. Discounts for 8ndi iduals, Partnershi#s, and 1or#orations

8n unusual and e3igent circumstances, the Board of @o ernors of the 4ederal "eser e $ystem, by the affirmati e ote of not less thanfi e members, may authori2e any 4ederal reser e bank, during such #eriods as the said board may determine, at rates established inaccordance with the #ro isions of section +, subdi ision (d), of this 0ct, to discount for any indi idual, #artnershi#, or cor#oration,notes, drafts, and bills of e3change when such notes, drafts, and bills of e3change are indorsed or otherwise secured to the satisfactionof the 4ederal "eser e bank7 #ro,i e , !hat before discounting any such note, draft, or bill of e3change for an indi idual, #artnershi#,or cor#oration the 4ederal reser e bank shall obtain e idence that such indi idual, #artnershi#, or cor#oration is unable to secureade uate credit accommodations from other banking institutions. 0ll such discounts for indi iduals, #artnershi#s, or cor#orations shallbe subKect to such limitations, restrictions, and regulations as the Board of @o ernors of the 4ederal "eser e $ystem may #rescribe.

M 6 '$1 + . 0s added by act of ;uly 6 , 6 (+: $tat. : >)5 and amended by acts of 0ug. 6 , > (+ $tat. : +) and Dec. , ( <> $tat. 6 9/.N

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+. Discount or Purchase of $ight Drafts#on the indorsement of any of its member banks, which shall be deemed a wai er of demand, notice, and #rotest by such bank as toits own indorsement e3clusi ely, and subKect to regulations and limitations to be #rescribed by the Board of @o ernors of the 4ederal"eser e $ystem, any 4ederal reser e bank may discount or #urchase bills of e3change #ayable at sight or on demand which grow outof the domestic shi#ment or the e3#ortation of non#erishable, readily marketable agricultural and other sta#les and are secured by billsof lading or other shi##ing documents con eying or securing title to such sta#les7 #ro,i e , !hat all such bills of e3change shall beforwarded #rom#tly for collection, and demand for #ayment shall be made with reasonable #rom#tness after the arri al of such sta#lesat their destination7 #ro,i e further , that no such bill shall in any e ent be held by or for the account of a 4ederal reser e bank for a#eriod in e3cess of ninety days. 8n discounting such bills 4ederal reser e banks may com#ute the interest to be deducted on the basisof the estimated life of each bill and adKust the discount after #ayment of such bills to conform to the actual life thereof.

M 6 '$1 ++. 0s added by act of *arch +, 6 (+6 $tat. +: )5 and amended by act of *ay 6 , 69 (+> $tat. :>).N

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>. Limitation on Discount of Pa#er of Fne Borrower !he aggregate of notes, drafts, and bills u#on which any #erson, co#artnershi#, association, or cor#oration is liable as maker, acce#tor,indorser, drawer, or guarantor, rediscounted for any member bank, shall at no time e3ceed the amount for which such #erson,co#artnershi#, association, or cor#oration may lawfully become liable to a national banking association under the terms of section >6<<of the "e ised $tatutes, as amended7 #ro,i e ) howe,er , !hat nothing in this #aragra#h shall be construed to change the character orclass of #a#er now eligible for rediscount by 4ederal reser e banks.

M 6 '$1 +>. 0s reenacted without change by act of *arch , > ( 9 $tat. >9)5 and amended by act of $e#t. :, / ( $tat. :>6), which com#letelyre ised this section5 and by act of 0#ril 6, < (+/ $tat. /6).N

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/. Discount of 0cce#tances0ny 4ederal reser e bank may discount acce#tances of the kinds hereinafter described, which ha e a maturity at the time of discountof not more than < daysI sight, e3clusi e of days of grace, and which are indorsed by at least one member bank7 #ro,i e , !hat suchacce#tances if drawn for an agricultural #ur#ose and secured at the time of acce#tance by warehouse recei#ts or other suchdocuments con eying or securing title co ering readily marketable sta#les may be discounted with a maturity at the time of discount ofnot more than si3 monthsI sight e3clusi e of days of grace.

M 6 '$1 +/. 0s amended by act of *arch , > ( 9 $tat. >9)5 by act of $e#t. :, / ( $tat. :>6), which com#letely re ised this section5 and by act of*arch +, 6 (+6 $tat. +: ).N

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:. BankerIs 0cce#tances 0. 0ny member bank and any 4ederal or $tate branch or agency of a foreign bank subKect to reser e re uirements under section

: of the 8nternational Banking 0ct of :9 (hereinafter in this #aragra#h referred to as HinstitutionsH), may acce#t drafts or billsof e3change drawn u#on it ha ing not more than si3 monthsI sight to run, e3clusi e of days of grace--

i. which grow out of transactions in ol ing the im#ortation or e3#ortation of goods5ii. which grow out of transactions in ol ing the domestic shi#ment of goods5 oriii. which are secured at the time of acce#tance by a warehouse recei#t or other such document con eying or securing

title co ering readily marketable sta#les.B. 3ce#t as #ro ided in sub#aragra#h (1), no institution shall acce#t such bills, or be obligated for a #artici#ation share in such

bills, in an amount e ual at any time in the aggregate to more than >< #er centum of its #aid u# and unim#aired ca#ital stockand sur#lus or, in the case of a 'nited $tates branch or agency of a foreign bank, its dollar e ui alent as determined by theBoard under sub#aragra#h ( ).

1. !he Board, under such conditions as it may #rescribe, may authori2e, by regulation or order, any institution to acce#t suchbills, or be obligated for a #artici#ation share in such bills, in an amount not e3ceeding at any time in the aggregate 6<< #ercentum of its #aid u# and unim#aired ca#ital stock and sur#lus or, in the case of a 'nited $tates branch or agency of a foreignbank, its dollar e ui alent as determined by the Board under sub#aragra#h ( ).

D. =otwithstanding sub#aragra#hs (B) and (1), with res#ect to any institution, the aggregate acce#tances, including obligationsfor a #artici#ation share in such acce#tances, growing out of domestic transactions shall not e3ceed >< #er centum of theaggregate of all acce#tances, including obligations for a #artici#ation share in such acce#tances, authori2ed for such institutionunder this #aragra#h.

. =o institution shall acce#t bills, or be obligated for a #artici#ation share in such bills, whether in a foreign or domestictransaction, for any one #erson, #artnershi#, cor#oration, association or other entity in an amount e ual at any time in theaggregate to more than < #er centum of its #aid u# and unim#aired ca#ital stock and sur#lus, or, in the case of a 'nited$tates branch or agency of a foreign bank, its dollar e ui alent as determined by the Board under sub#aragra#h ( ), unlessthe institution is secured either by attached documents or by some other actual security growing out of the same transaction asthe acce#tance.

4. With res#ect to an institution which issues an acce#tance, the limitations contained in this #aragra#h shall not a##ly to that#ortion of an acce#tance which is issued by such institution and which is co ered by a #artici#ation agreement sold to anotherinstitution.

@. 8n order to carry out the #ur#oses of this #aragra#h, the Board may define any of the terms used in this #aragra#h, and, withres#ect to institutions which do not ha e ca#ital or ca#ital stock, the Board shall define an e ui alent measure to which thelimitations contained in this #aragra#h shall a##ly.

. 0ny limitation or restriction in this #aragra#h based on #aid-u# and unim#aired ca#ital stock and sur#lus of an institution shallbe deemed to refer, with res#ect to a 'nited $tates branch or agency of a foreign bank, to the dollar e ui alent of the #aid-u#ca#ital stock and sur#lus of the foreign bank, as determined by the Board, and if the foreign bank has more than one 'nited$tates branch or agency, the business transacted by all such branches and agencies shall be aggregated in determiningcom#liance with the limitation or restriction.

M4ormerly 6 '$1 :6, as amended by act of *arch , > ( 9 $tat. >9)5 by act of $e#t. :, / ( $tat. :>6), which com#letely re ised this section5 and byacts of ;une 6 , : (+< $tat. 6 >) and Fct. 9, 96 ( / $tat. 6 ). Fmitted from the '.$. 1ode.N

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9. 0d ances to *ember Banks on Promissory =otes0ny 4ederal reser e bank may make ad ances for #eriods not e3ceeding fifteen days to its member banks on their #romissory notessecured by the de#osit or #ledge of bonds, notes, certificates of indebtedness, or !reasury bills of the 'nited $tates, or by the de#ositor #ledge of debentures or other such obligations of 4ederal intermediate credit banks which are eligible for #urchase by 4ederalreser e banks under section a of this 0ct, or by the de#osit or #ledge of bonds issued under the #ro isions of subsection (c) ofsection + of the ome FwnersI Loan 0ct of , as amended5 and any 4ederal reser e bank may make ad ances for #eriods note3ceeding ninety days to its member banks on their #romissory notes secured by such notes, drafts, bills of e3change, or bankersIacce#tances as are eligible for rediscount or for #urchase by 4ederal reser e banks under the #ro isions of this 0ct, or secured bysuch obligations as are eligible for #urchase under section +(b) of this 0ct. 0ll such ad ances shall be made at rates to be establishedby such 4ederal reser e banks, such rates to be subKect to the re iew and determination of the Board of @o ernors of the 4ederal

"eser e $ystem. 8f any member bank to which any such ad ance has been made shall, during the life or continuance of such ad ance,and des#ite an official warning of the reser e bank of the district or of the Board of @o ernors of the 4ederal "eser e $ystem to thecontrary, increase its outstanding loans secured by collateral in the form of stocks, bonds, debentures, or other such obligations, orloans made to members of any organi2ed stock e3change, in estment house, or dealer in securities, u#on any obligation, note, or bill,secured or unsecured, for the #ur#ose of #urchasing andCor carrying stocks, bonds, or other in estment securities (e3ce#t obligationsof the 'nited $tates) such ad ance shall be deemed immediately due and #ayable, and such member bank shall be ineligible as aborrower at the reser e bank of the district under the #ro isions of this #aragra#h for such #eriod as the Board of @o ernors of the4ederal "eser e $ystem shall determine7 #ro,i e , !hat no tem#orary carrying or clearance loans made solely for the #ur#ose offacilitating the #urchase or deli ery of securities offered for #ublic subscri#tion shall be included in the loans referred to in this#aragra#h.

M 6 '$1 +:. 0s added by act of $e#t. :, / ( $tat. :> ), which com#letely re ised this section5 and amended by acts of *ay , 6 (+: $tat. /<)5 *ay6, (+9 $tat. +/)5 ;une /, (+9 $tat. 9<)5 ;an. , + (+9 $tat. +9)5 0#ril 6:, + (+9 $tat. /+/)5 Fct. +, / (:> $tat. :: )5 and $e#t. 6 , /9

(96 $tat. 9>/).N





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. 0ggregate Liabilities of =ational Banks

"e#ealed by act of Fct. >, 96 ( / $tat. > <).

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<. "egulation by Board of @o ernors of Discounts, Purchases and $ales!he discount and rediscount and the #urchase and sale by any 4ederal reser e bank of any bills recei able and of domestic andforeign bills of e3change, and of acce#tances authori2ed by this 0ct, shall be subKect to such restrictions, limitations, and regulations asmay be im#osed by the Board of @o ernors of the 4ederal "eser e $ystem.

MFmitted from '.$. 1ode. 0s amended by act of $e#t. :, / ( $tat. :> ), which com#letely re ised this section.N

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. =ational Banks as 8nsurance 0gents or "eal state Loan Brokers!hat in addition to the #owers now ested by law in national banking associations organi2ed under the laws of the 'nited $tates anysuch association located and doing business in any #lace the #o#ulation of which does not e3ceed fi e thousand inhabitants, as shownby the last #receding decennial census, may, under such rules and regulations as may be #rescribed by the 1om#troller of the1urrency, act as the agent for any fire, life, or other insurance com#any authori2ed by the authorities of the $tate in which said bank islocated to do business in said $tate, by soliciting and selling insurance and collecting #remiums on #olicies issued by such com#any5and may recei e for ser ices so rendered such fees or commissions as may be agreed u#on between the said association and theinsurance com#any for which it may act as agent5 and may also act as the broker or agent for others in making or #rocuring loans onreal estate located within one hundred miles of the #lace in which said bank may be located, recei ing for such ser ices a reasonablefee or commission7 #ro,i e ) howe,er , !hat no such bank shall in any case guarantee either the #rinci#al or interest of any such loansor assume or guarantee the #ayment of any #remium on insurance #olicies issued through its agency by its #rinci#al7 An pro,i efurther , !hat the bank shall not guarantee the truth of any statement made by an assured in filing his a##lication for insurance.

MFmitted from '.$. 1ode. 0s added by act of $e#t. :, / ( $tat. :> ), which com#letely re ised this section.N

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6. Bank 0cce#tances to 1reate Dollar 3change0ny member bank may acce#t drafts or bills of e3change drawn u#on it ha ing not more than three monthsI sight to run, e3clusi e ofdays of grace, drawn under regulations to be #rescribed by the Board of @o ernors of the 4ederal "eser e $ystem by banks or

bankers in foreign countries or de#endencies or insular #ossessions of the 'nited $tates for the #ur#ose of furnishing dollar e3changeas re uired by the usages of trade in the res#ecti e countries, de#endencies, or insular #ossessions. $uch drafts or bills may beac uired by 4ederal reser e banks in such amounts and subKect to such regulations, restrictions, and limitations as may be #rescribedby the Board of @o ernors of the 4ederal "eser e $ystem7 #ro,i e ) howe,er , !hat no member bank shall acce#t such drafts or billsof e3change referred to this #aragra#h for any one bank to an amount e3ceeding in the aggregate ten #er centum of the #aid-u# andunim#aired ca#ital and sur#lus of the acce#ting bank unless the draft or bill of e3change is accom#anied by documents con eying orsecuring title or by some other ade uate security7 #ro,i e further , !hat no member bank shall acce#t such drafts or bills in an amounte3ceeding at any time the aggregate of one-half of its #aid-u# and unim#aired ca#ital and sur#lus.

M4ormerly 6 '$1 : , as added by act of $e#t. :, / ( $tat. :>+), which com#letely re ised this section. =ot codified to the 4ederal "eser e 0ct. Fmittedfrom the '.$. 1ode.N

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. 0d ances to 8ndi iduals, Partnershi#s, and 1or#orations on Fbligations of 'nited $tates$ubKect to such limitations, restrictions and regulations as the Board of @o ernors of the 4ederal "eser e $ystem may #rescribe, any4ederal reser e bank may make ad ances to any indi idual, #artnershi# or cor#oration on the #romissory notes of such indi idual,#artnershi# or cor#oration secured by direct obligations of the 'nited $tates or by any obligation which is a direct obligation of, or fullyguaranteed as to #rinci#al and interest by, any agency of the 'nited $tates. $uch ad ances shall be made for #eriods not e3ceeding

< days and shall bear interest at rates fi3ed from time to time by the 4ederal reser e bank, subKect to the re iew and determination ofthe Board of @o ernors of the 4ederal "eser e $ystem.

M 6 '$1 +:c. 0s added by act of *arch , (+9 $tat. :) and amended by act of $e#t. 6 , /9 (96 $tat. 9>/).N

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http://www.federalreserve.gov/aboutthefed/section13.htm#fn1













+. "ecei#t of De#osits from, Discount Pa#er ndorsed by, and 0d ances to 4oreign Banks$ubKect to such restrictions, limitations, and regulations as may be im#osed by the Board of @o ernors of the 4ederal "eser e $ystem,each 4ederal "eser e bank may recei e de#osits from, discount #a#er endorsed by, and make ad ances to any branch or agency of aforeign bank in the same manner and to the same e3tent that it may e3ercise such #owers with res#ect to a member bank if suchbranch or agency is maintaining reser es with such "eser e bank #ursuant to section : of the 8nternational Banking 0ct of :9. 8ne3ercising any such #owers with res#ect to any such branch or agency, each 4ederal "eser e bank shall gi e due regard to accountbalances being maintained by such branch or agency with such "eser e bank and the #ro#ortion of the assets of such branch oragency being held as reser es under section : of the 8nternational Banking 0ct of :9. 4or the #ur#oses of this #aragra#h, the termsHbranchH, HagencyH, and Hforeign bankH shall ha e the same meanings assigned to them in section of the 8nternational Banking 0ct of

:9.

M 6 '$1 +:d. 0s added by act of $e#t. :, :9 ( 6 $tat. /6 ).N

$o in original. Probably should read Hreferred to in this #aragra#h.H

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%ection /=!. Ciscount of !gricultural 2aper M

. 0uthority of 4ederal "eser e Banks to Discount 0gricultural Pa#er #on the indorsement of any of its member banks, which shall be deemed a wai er of demand, notice, and #rotest by such bank as toits own indorsement e3clusi ely, any 4ederal reser e bank may, subKect to regulations and limitations to be #rescribed by the Board of@o ernors of the 4ederal "eser e $ystem, discount notes, drafts, and bills of e3change issued or drawn for an agricultural #ur#ose, orbased u#on li e stock, and ha ing a maturity, at the time of discount, e3clusi e of days of grace, not e3ceeding nine months, and suchnotes, drafts, and bills of e3change may be offered as collateral security for the issuance of 4ederal reser e notes under the #ro isionsof section / of this 0ct7 #ro,i e ) !hat notes, drafts, and bills of e3change with maturities in e3cess of si3 months shall not be eligibleas a basis for the issuance of 4ederal reser e notes unless secured by warehouse recei#ts or other such negotiable documentscon eying or securing title to readily marketable sta#le agricultural #roducts or by chattel mortgage u#on li e stock which is beingfattened for market.

M 6 '$1 +9. 0s added by act of *arch +, 6 (+6 $tat. +: ).N

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6. "ediscounts for, and Discount of =otes Payable to, 4ederal 8ntermediate 1redit Banks!hat any 4ederal reser e bank may, subKect to regulations and limitations to be #rescribed by the Board of @o ernors of the 4ederal"eser e $ystem, rediscount such notes, drafts, and bills for any 4ederal 8ntermediate 1redit Bank, e3ce#t that no 4ederal reser e bankshall rediscount for a 4ederal 8ntermediate 1redit Bank any such note or obligation which bears the indorsement of a nonmember $tatebank or trust com#any which is eligible for membershi# in the 4ederal reser e system, in accordance with section of this 0ct. 0ny4ederal reser e bank may also, subKect to regulations and limitations to be #rescribed by the Board of @o ernors of the 4ederal"eser e $ystem, discount notes #ayable to and bearing the indorsement of any 4ederal intermediate credit bank, co ering loans orad ances made by such bank #ursuant to the #ro isions of section 6<6(a) of !itle 88 of the 4ederal 4arm Loan 0ct, as amended('.$.1., title 6, ch. 9, sec. < ), which ha e maturities at the time of discount of not more than nine months, e3clusi e of days ofgrace, and which are secured by notes, drafts, or bills of e3change eligible for rediscount by 4ederal "eser e banks.

M 6 '$1 + . 0s added by act of *arch +, 6 (+6 $tat. +9<)5 and amended by act of *ay , 6 (+: $tat. /<).N

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. Purchase and $ale of Debentures of 4ederal 8ntermediate 1redit Banks0ny 4ederal reser e bank may also buy and sell debentures and other such obligations issued by a 4ederal 8ntermediate 1redit Bankor by a =ational 0gricultural 1redit 1or#oration, but only to the same e3tent as and subKect to the same limitations as those u#on whichit may buy and sell bonds issued under !itle 8 of the 4ederal 4arm Loan 0ct.

M 6 '$1 ><. 0s added by act of *arch +, 6 (+6 $tat. +9<). !he meaning of the term HdebenturesH, as used abo e, was affected by act of 0ug. , :(>< $tat. : 9), 6 '$1 <+<, which #ro ides7

H!he terms IdebentureI and IdebenturesI, when used in any 0ct of 1ongress, whene er enacted, e3ce#t the 4ederal 4arm Loan 0ct, relating to the #urchase,sale, or use as security, of debentures issued by or for the benefit and account of any 4ederal intermediate credit bank or banks, shall be deemed to mean

debentures issued by any such bank indi idually and consolidated debentures issued by such banks acting together.HN

http://www.federalreserve.gov/aboutthefed/section13.htm#ref1





http://www.federalreserve.gov/aboutthefed/section13.htm#ref1







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+. Pa#er of 1oo#erati e *arketing 0ssociations=otes, drafts, bills of e3change or acce#tances issued or drawn by coo#erati e marketing associations com#osed of #roducers ofagricultural #roducts shall be deemed to ha e been issued or drawn for an agricultural #ur#ose, within the meaning of this section, ifthe #roceeds thereof ha e been or are to be ad anced by such association to any members thereof for an agricultural #ur#ose, or ha ebeen or are to be used by such association in making #ayments to any members thereof on account of agricultural #roducts deli eredby such members to the association, or if such #roceeds ha e been or are to be used by such association to meet e3#endituresincurred or to be incurred by the association in connection with the grading, #rocessing, #acking, #re#aration for market, or marketingof any agricultural #roduct handled by such association for any of its members7 #ro,i e ) !hat the e3#ress enumeration in this#aragra#h of certain classes of #a#er of coo#erati e marketing associations as eligible for rediscount shall not be construed as

rendering ineligible any other class of #a#er of such associations which is now eligible for rediscount.

M 6 '$1 > . 0s added by act of *arch +, 6 (+6 $tat. +9<).N

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>. Limitations!he Board of @o ernors of the 4ederal "eser e $ystem may, by regulation, limit to a #ercentage of the assets of a 4ederal reser ebank the amount of notes, drafts, acce#tances, or bills ha ing a maturity in e3cess of three months, but not e3ceeding si3 months,e3clusi e of days of grace, which may be discounted by such bank, and the amount of notes, drafts, bills, or acce#tance ha ing amaturity in e3cess of si3 months, but not e3ceeding nine months, which may be rediscounted by such bank.

M 6 '$1 >6. 0s added by act of *arch +, 6 (+6 $tat. +9<).N

Pre iously section a, this section was redesignated by act of Dec. , ( <> $tat. 669 ).

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%ection /8. +pen arket +perations

Purchase and $ale of 1able !ransfers, Bank 0cce#tances and Bills of 3change0ny 4ederal reser e bank may, under rules and regulations #rescribed by the Board of @o ernors of the 4ederal "eser e $ystem,#urchase and sell in the o#en market, at home or abroad, either from or to domestic or foreign banks, firms, cor#orations, orindi iduals, cable transfers and bankersI acce#tances and bills of e3change of the kinds and maturities by this 0ct made eligible forrediscount, with or without the indorsement of a member bank.

M 6 '$1 > . Part of original 4ederal "eser e 0ct5 not amended.N

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Dealings in, and Loans on, @oldery 4ederal reser e bank shall ha e #ower7

(a" !o deal in gold coin and bullion at home or abroad, to make loans thereon, e3change 4ederal reser e notes for gold, gold coin, orgold certificates, and to contract for loans of gold coin or bullion, gi ing therefor, when necessary, acce#table security, including thehy#othecation of 'nited $tates bonds or other securities which 4ederal reser e banks are authori2ed to hold5

M 6 '$1 >+. Part of original 4ederal "eser e 0ct5 not amended. $ee also 6 '$1 > / through > 9.N

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Purchase and $ale of Fbligations of 'nited $tates, $tates, 1ounties, etc., and of 4oreign @o ernments(b"

. !o buy and sell, at home or abroad, bonds and notes of the 'nited $tates, bonds issued under the #ro isions of subsection (c)of section + of the ome FwnersI Loan 0ct of , as amended, and ha ing maturities from date of #urchase of note3ceeding si3 months, and bills, notes, re enue bonds, and warrants with a maturity from date of #urchase of not e3ceeding
















si3 months, issued in antici#ation of the collection of ta3es or in antici#ation of the recei#t of assured re enues by any $tate,county, district, #olitical subdi ision, or munici#ality in the continental 'nited $tates, including irrigation, drainage andreclamation districts, and obligations of, or fully guaranteed as to #rinci#al and interest by, a foreign go ernment or agencythereof, such #urchases to be made in accordance with rules and regulations #rescribed by the Board of @o ernors of the4ederal "eser e $ystem. =otwithstanding any other #ro ision of this cha#ter, any bonds, notes, or other obligations which aredirect obligations of the 'nited $tates or which are fully guaranteed by the 'nited $tates as to the #rinci#al and interest maybe bought and sold without regard to maturities but only in the o#en market.

6. !o buy and sell in the o#en market, under the direction and regulations of the 4ederal F#en *arket 1ommittee, any obligationwhich is a direct obligation of, or fully guaranteed as to #rinci#al and interest by, any agency of the 'nited $tates.

M 6 '$1 >>. 0s amended by acts of ;an. , + (+9 $tat. +9)5 0#ril 6 :, + (+9 $tat. /+/)5 0ug. 6 , > (+ $tat. :</)5 *arch 6:, +6 (>/ $tat. 9<)50#ril 69, +: (/ $tat. >/)5 ;une <, >< (/+ $tat. <:)5 ;une 6 , >6 (// $tat. >+)5 ;une 6 , >+ (/9 $tat. 6 )5 ;une 6>, >/ (:< $tat. )5 ;une <,

>9 (:6 $tat. 6/ )5 ;uly , /< (:+ $tat. 6 >)5 Fct. +, / (:> $tat. :: )5 ;une 69, /6 (:/ $tat. 6)5 ;une <, /+ (:9 $tat. 6 >)5 ;une <, // (9< $tat.6 >)5 $e#t. 6 , // (9< $tat. 96>) (as amended by acts of $e#t. 6 , /: (9 $tat. 66/) and $e#t. 6 , /9 (96 $tat. 9>/)5 *ay +, /9 (96 $tat. )5 ;uly ,

:< (9+ $tat. //9)5 ;uly 6, : (9> $tat. <<)5 0ug. +, : (9: $tat. +)5 Fct. 69, :+ (99 $tat. ><>)5 =o . 6, :> (9 $tat. / 9)5 0#ril , :: ($tat. + )5 Fct. 6, :: ( $tat. )5 =o . :, :: ( $tat. 6>/)5 ;une 9, : ( $tat. >)5 and *arch , 9< ( + $tat. +<). $ee also 6 '$1 6 >9 and

'$1 > < . !he Hcontinental 'nited $tatesH is defined in #aragra#h of section of the 4ederal "eser e 0ct, so as to mean the H$tates of the 'nited $tatesand the District of 1olumbia.HN

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Purchase and $ale of Bills of 3change(+" !o #urchase from member banks and to sell, with or without its indorsement, bills of e3change arising out of commercialtransactions, as hereinbefore defined5

M 6 '$1 >/. Part of original 4ederal "eser e 0ct5 not amended.N

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"ates of Discount(#" !o establish from time to time, subKect to re iew and determination of the Board of @o ernors of the 4ederal "eser e $ystem, ratesof discount to be charged by the 4ederal reser e bank for each class of #a#er, which shall be fi3ed with a iew of accommodatingcommerce and business5 but each such bank shall establish such rates e ery fourteen days, or oftener if deemed necessary by theBoard5

M 6 '$1 >:. 0s amended by acts of 0#ril , 6< (+ $tat. >><)5 *arch +, 6 (+6 $tat. +9<)5 0ug. 6 , > (+ $tat. :</).N

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4oreign 1orres#ondents and 0gencies(e" !o establish accounts with other 4ederal reser e banks for e3change #ur#oses and, with the consent or u#on the order anddirection of the Board of @o ernors of the 4ederal "eser e $ystem and under regulations to be #rescribed by said board, to o#en anmaintain accounts in foreign countries, a##oint corres#ondents, and establish agencies in such countries wheresoe er it may bedeemed best for the #ur#ose of #urchasing, selling, and collecting bills of e3change, and to buy and sell, with or without itsindorsement, through such corres#ondents or agencies, bills of e3change (or acce#tances) arising out of actual commercialtransactions which ha e not more than ninety days to run, e3clusi e of days of grace, and which bear the signature of two or moreres#onsible #arties, and, with the consent of the Board of @o ernors of the 4ederal "eser e $ystem, to o#en and maintain bankingaccounts for such foreign corres#ondents or agencies, or for foreign banks or bankers, or for foreign states as defined in section 6>(b)of this 0ct. Whene er any such account has been o#ened or agency or corres#ondent has been a##ointed by a 4ederal reser e bank,with the consent of or under the order and direction of the Board of @o ernors of the 4ederal "eser e $ystem, any other 4ederalreser e bank may, with the consent and a##ro al of the Board of @o ernors of the 4ederal "eser e $ystem, be #ermitted to carry onor conduct, through the 4ederal reser e bank o#ening such account or a##ointing such agency or corres#ondent, any transactionauthori2ed by this section under rules and regulations to be #rescribed by the board.

M 6 '$1 >9. 0s amended by acts of $e#t. :, / ( $tat. :>+)5 ;une 6 , : (+< $tat. 6 >)5 0#ril :, + (>> $tat. ).N

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Purchase and $ale of 0cce#tances of 4ederal 8ntermediate 1redit Banks(f" !o #urchase and sell in the o#en market, either from or to domestic banks, firms, cor#orations, or indi iduals, acce#tances of4ederal 8ntermediate 1redit Banks and of =ational 0gricultural 1redit 1or#orations, whene er the Board of @o ernors of the 4ederal"eser e $ystem shall declare that the #ublic interest so re uires.

M 6 '$1 > . 0s added by act of *arch +, 6 (+6 $tat. +9<).N

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"elationshi#s and !ransactions with 4oreign Banks and Bankers(g" !he Board of @o ernors of the 4ederal "eser e $ystem shall e3ercise s#ecial su#er ision o er all relationshi#s and transactions ofany kind entered into by any 4ederal reser e bank with any foreign bank or banker, or with any grou# of foreign banks or bankers, andall such relationshi#s and transactions shall be subKect to such regulations, conditions, and limitations as the Board may #rescribe. =oofficer or other re#resentati e of any 4ederal reser e bank shall conduct negotiations of any kind with the officers or re#resentati es ofany foreign bank or banker without first obtaining the #ermission of the Board of @o ernors of the 4ederal "eser e $ystem. !he Boardof @o ernors of the 4ederal "eser e $ystem shall ha e the right, in its discretion, to be re#resented in any conference or negotiationsby such re#resentati e or re#resentati es as the Board may designate. 0 full re#ort of all conferences or negotiations, and allunderstandings or agreements arri ed at or transactions agreed u#on, and all other material facts a##ertaining to such conferences ornegotiations, shall be filed with the Board of @o ernors of the 4ederal "eser e $ystem in writing by a duly authori2ed officer of each4ederal reser e bank which shall ha e #artici#ated in such conferences or negotiations.

M 6 '$1 +9a. 0s added by act of ;une /, (+9 $tat. 9 ).N

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%ection /K. Government Ceposits

. 4ederal "eser e Banks as De#ositaries and 4iscal 0gents of 'nited $tates!he moneys held in the general fund of the !reasury, e3ce#t the fi e #er centum fund for the redem#tion of outstanding national-banknotes may, u#on the direction of the $ecretary of the !reasury, be de#osited in 4ederal reser e banks, which banks, when re uired bythe $ecretary of the !reasury, shall act as fiscal agents of the 'nited $tates5 and the re enues of the @o ernment or any #art thereofmay be de#osited in such banks, and disbursements may be made by checks drawn against such de#osits.

M 6 '$1 . 0s amended by the act of *arch 9, /9 (96 $tat. ><). 0lso, in effect amended by 0ct of *ay 6 , 6< (+ $tat. />+).

"eimbursement as fiscal agents is #ro ided by '$1 <6(f) as follows7

H(f) When authori2ed by the $ecretary, an official or agent of the @o ernment ha ing custody or #ossession of #ublic money, or #erforming other f iscal agentser ices, may be allowed necessary e3#enses to collect, kee#, transfer, and #ay out #ublic money and to #erform those ser ices. owe er, money a##ro#riatedfor those e3#enses may not be used to em#loy or #ay officers and em#loyees of the @o ernment.HN

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6. =onmember Banks as De#ositaries of 'nited $tates=o #ublic funds of the Phili##ine 8slands, or of the #ostal sa ings, or any @o ernment funds, shall be de#osited in the continentalnited $tates in any bank not belonging to the system established by this 0ct7 #ro,i e ) howe,er) !hat nothing in this 0ct shall beconstrued to deny the right of the $ecretary of the !reasury to use member banks as de#ositaries.

M 6 '$1 6. Part of original 4ederal "eser e 0ct5 not s#ecifically amended, but amended in effect by the following statutes #ermitting the de#osit ofgo ernment funds in nonmember banks7 'nder section < of the act of ;une , +6, all insured banks designated for the #ur#ose by the $ecretary of the!reasury may be de#ositaries of #ublic moneys of the 'nited $tates under the Liberty Bond 0cts, the #roceeds of sales of Liberty bonds may be de#osited innonmember banks5 and under the 8nternal "e enue 1ode, the $ecretary of the !reasury may authori2e banks or trust com#anies to recei e ta3es. 4ordesignation of state member banks as de#ositaries of #ublic money, see section of the 4ederal "eser e 0ct5 for designation of national banks as de#ositariesof #ublic money, see section > > of the "e ised $tatutes. H1ontinental 'nited $tatesH means Hthe $tates of the 'nited $tates and the District of 1olumbia.H(4ederal "eser e 0ct, section , third #aragra#h.) Presidential Proclamation =o. 6/ > of ;uly +, +/ (/< $tat. >65 6 '$1 + note) recogni2es the

inde#endence of the Phili##ine 8slands. !herefore the words Hof the Phili##ine 8slands orH ha e been omitted from the '.$. 1ode.N

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. De#ositaries and 4iscal 0gents of 8nstitutions of the 4arm 1redit $ystem!he 4ederal "eser e banks are authori2ed to act as de#ositaries for and fiscal agents of any 4ederal land bank, 4ederal intermediatecredit bank, bank for coo#erati es, or other institutions of the 4arm 1redit $ystem.

M 6 '$1 . 0s added by act of *arch +, 6 (+6 $tat. +9<)5 and amended by act of Dec. <, : (9> $tat. /6>).N

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%ection /L. Bote Issues

. 8ssuance of 4ederal "eser e =otes5 =ature of Fbligation5 Where "edeemable4ederal reser e notes, to be issued at the discretion of the Board of @o ernors of the 4ederal "eser e $ystem for the #ur#ose ofmaking ad ances to 4ederal reser e banks through the 4ederal reser e agents as hereinafter set forth and for no other #ur#ose, arehereby authori2ed. !he said notes shall be obligations of the 'nited $tates and shall be recei able by all national and member banksand 4ederal reser e banks and for all ta3es, customs, and other #ublic dues. !hey shall be redeemed in lawful money on demand atthe !reasury De#artment of the 'nited $tates, in the city of Washington, District of 1olumbia, or at any 4ederal "eser e bank.

M 6 '$1 + . 0s amended by act of ;an. <, + (+9 $tat. :). 4or redem#tion of 4ederal reser e notes whose bank of issue cannot be identified, see act ofune , .N

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6. 0##lication for =otes by 4ederal "eser e Banks0ny 4ederal "eser e bank may make a##lication to the local 4ederal "eser e agent for such amount of the 4ederal "eser e noteshereinbefore #ro ided for as it may re uire. $uch a##lication shall be accom#anied with a tender to the local 4ederal "eser e agent ofcollateral in amount e ual to the sum of the 4ederal "eser e notes thus a##lied for and issued #ursuant to such a##lication. !hecollateral security thus offered shall be notes, drafts, bills of e3change, or acce#tances ac uired under section <0, <B, , or 0 ofthis 0ct, or bills of e3change endorsed by a member bank of any 4ederal "eser e district and #urchased under the #ro isions ofsection + of this 0ct, or bankersI acce#tances #urchased under the #ro isions of said section +, or gold certificates, or $#ecial

Drawing "ight certificates, or any obligations which are direct obligations of, or are fully guaranteed as to #rinci#al and interest by, thenited $tates or any agency thereof, or assets that 4ederal "eser e banks may #urchase or hold under section + of this 0ct or anyother asset of a 4ederal reser e bank. 8n no e ent shall such collateral security be less than the amount of 4ederal "eser e notesa##lied for. !he 4ederal "eser e agent shall each day notify the Board of @o ernors of the 4ederal "eser e $ystem of all issues andwithdrawals of 4ederal "eser e notes to and by the 4ederal "eser e bank to which he is accredited. !he said Board of @o ernors ofthe 4ederal "eser e $ystem may at any time call u#on a 4ederal "eser e bank for additional security to #rotect the 4ederal "eser enotes issued to it. 1ollateral shall not be re uired for 4ederal "eser e notes which are held in the aults of, or are otherwise held by oron behalf of, 4ederal "eser e banks.

M 6 '$1 + 6. 0s amended by the acts of $e#t. :, / ( $tat. :>+)5 ;une 6 , : (+< $tat. 6 /)5 4eb. 6:, 6 (+: $tat. >:)5 4eb. , (+: $tat. : +)5an. <, + (+9 $tat. 9)5 *arch /, + (+9 $tat. )5 ;une <, + (>> $tat. >)5 *ay 6>, + (>: $tat. 9>)5 ;une 6, +> (> $tat. 6 :)5 ;une ,

/9 (96 $tat. 9 )5 =o . <, :9 ( 6 $tat. /:6)5 *arch , 9< ( + $tat. +<)5 Dec. /, ( $tat. / 9)5 and Fct. 69, 6<< ( : $tat. ).N

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. Distincti e Letter on =otes5 Destruction of 'nfit =otes4ederal "eser e notes shall bear u#on their faces a distincti e letter and serial number which shall be assigned by the Board of@o ernors of the 4ederal "eser e $ystem to each 4ederal "eser e bank. 4ederal "eser e notes unfit for circulation shall be canceled,destroyed, and accounted for under #rocedures #rescribed and at locations designated by the $ecretary of the !reasury. '#ondestruction of such notes, credit with res#ect thereto shall be a##ortioned among the twel e 4ederal "eser e banks as determined bythe Board of @o ernors of the 4ederal "eser e $ystem.

M 6 '$1 + . 0s amended by acts of ;une 6 , : (+< $tat. 6 /)5 ;an. <, + (+9 $tat. 9)5 ;une 6, +> (> $tat. 6 :)5 ;uly , >+ (/9 $tat. + >)5*arch , /> (: $tat. >)5 *ay 6<, // (9< $tat. / )5 and *arch 9, /9 (96 $tat. ><).N

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+. @ranting "ight to 8ssue =otes!he Board of @o ernors of the 4ederal "eser e $ystem shall ha e the right, acting through the 4ederal "eser e agent, to grant inwhole or in #art, or to reKect entirely the a##lication of any 4ederal "eser e bank for 4ederal "eser e notes5 but to the e3tent that sucha##lication may be granted the Board of @o ernors of the 4ederal "eser e $ystem shall, through its local 4ederal "eser e agent,su##ly 4ederal "eser e notes to the banks so a##lying, and such bank shall be charged with the amount of the notes issued to it andshall #ay such rate of interest as may be established by the Board of @o ernors of the 4ederal "eser e $ystem on only that amount ofsuch notes which e uals the total amount of its outstanding 4ederal "eser e notes less the amount of gold certificates held by the4ederal "eser e agent as collateral security. 4ederal "eser e notes issued to any such bank shall, u#on deli ery, together with suchnotes of such 4ederal "eser e bank as may be issued under section 9 of this 0ct u#on security of 'nited $tates 6 #er centum@o ernment bonds, become a first and #aramount lien on all the assets of such bank.

M 6 '$1 + +. 0s amended by acts of ;une 6 , : (+< $tat. 6 :)5 ;an. <, + (+9 $tat. 9)5 ;une 6, +> (> $tat. 6 :)5 and *arch 9, /9 (96 $tat.><).N

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>. De#osit to "educe Liability for Futstanding =otes0ny 4ederal "eser e bank may at any time reduce its liability for outstanding 4ederal "eser e notes by de#ositing with the 4ederal"eser e agent its 4ederal "eser e notes, gold certificates, $#ecial Drawing "ight certificates, or lawful money of the 'nited $tates.4ederal "eser e notes so de#osited shall not be reissued, e3ce#t u#on com#liance with the conditions of an original issue. !he liabilityof a 4ederal "eser e bank with res#ect to its outstanding 4ederal "eser e notes shall be reduced by any amount #aid by such bank tothe $ecretary of the !reasury under section + of the Fld $eries 1urrency 0dKustment 0ct.

M 6 '$1 + >. 0s reenacted by act of ;une 6 , : (+< $tat. 6 :)5 and as amended by acts of ;an. <, + (+9 $tat. )5 ;une <, / (:> $tat. +:)5 *arch9, /9 (96 $tat. ><)5 and ;une , /9 (96 $tat. 9 ). !he act of ;une <, / , is the Fld $eries 1urrency 0dKustment 0ct.N

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/. $ubstitution of 1ollateral5 "etirement of 4ederal "eser e =otes0ny 4ederal reser e bank may at its discretion withdraw collateral de#osited with the local 4ederal reser e agent for the #rotection ofits 4ederal reser e notes issued to it and shall at the same time substitute therefor other collateral of e ual amount with the a##ro al ofthe 4ederal reser e agent under regulations to be #rescribed by the Board of @o ernors of the 4ederal "eser e $ystem. 0ny 4ederalreser e bank may retire any of its 4ederal reser e notes by de#ositing them with the 4ederal reser e agent or with the !reasurer of thenited $tates, and such 4ederal reser e bank shall thereu#on be entitled to recei e back the collateral de#osited with the 4ederalreser e agent for the security of such notes. 0ny 4ederal "eser e bank shall further be entitled to recei e back the collateral de#ositedwith the 4ederal "eser e agent for the security of any notes with res#ect to which such bank has made #ayment to the $ecretary of the!reasury under section + of the Fld $eries 1urrency 0dKustment 0ct. 4ederal reser e notes so de#osited shall not be reissued e3ce#tu#on com#liance with the conditions of an original issue.

M 6 '$1 + /. 0s amended by acts of ;une 6 , : (+< $tat. 6 :)5 ;une <, / (:> $tat. +:)5 and *arch 9, /9 (96 $tat. ><). !he act of ;une <, / isthe Fld $eries 1urrency 0dKustment 0ct.N

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:. 1ustody of "eser e =otes, @old 1ertificates, and Lawful *oney0ll 4ederal "eser e notes and all gold certificates, $#ecial Drawing "ight certificates, and lawful money issued to or de#osited with any4ederal "eser e agent under the #ro isions of the 4ederal "eser e 0ct shall hereafter be held for such agent, under such rules andregulations as the Board of @o ernors of the 4ederal "eser e $ystem may #rescribe, in the Koint custody of himself and the 4ederal"eser e bank to which he is accredited. $uch agent and such 4ederal "eser e bank shall be Kointly liable for the safekee#ing of such4ederal "eser e notes, gold certificates, $#ecial Drawing "ight certificates, and lawful money. =othing herein contained, howe er,shall be construed to #rohibit a 4ederal "eser e agent from de#ositing gold certificates and $#ecial Drawing "ight certificates with theBoard of @o ernors of the 4ederal "eser e $ystem, to be held by such Board subKect to his order, or with the !reasurer of the 'nited$tates for the #ur#oses authori2ed by law.

M 6 '$1 + :. 0s added by act of ;une 6 , : (+< $tat. 6 9)5 and amended by acts of ;an. <, + (+9 $tat. ) and ;une , /9 (96 $tat. 9 ).N

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9. ngra ing of Plates5 Denominations and 4orm of =otes8n order to furnish suitable notes for circulation as 4ederal reser e notes, the $ecretary of the !reasury shall cause #lates and dies tobe engra ed in the best manner to guard against counterfeits and fraudulent alterations, and shall ha e #rinted therefrom andnumbered such uantities of such notes of the denominations of G , G6, G>, G <, G6<, G><, G <<, G><<, G ,<<< G>,<<<, G <,<<< asmay be re uired to su##ly the 4ederal reser e banks. $uch notes shall be in form and tenor as directed by the $ecretary of the!reasury under the #ro isions of this 0ct and shall bear the distincti e numbers of the se eral 4ederal reser e banks through whichthey are issued.

M 6 '$1 + 9. 0s amended by acts of $e#t. 6/, 9 (+< $tat. :<)5 ;une +, / (:: $tat. >+)5 and $e#t. 6 , + ( <9 $tat. 66 ).N

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. 1ustody of 'nissued =otesWhen such notes ha e been #re#ared, the notes shall be deli ered to the Board of @o ernors of the 4ederal "eser e $ystem subKectto the order of the $ecretary of the !reasury for the deli ery of such notes in accordance with this 0ct.

M 6 '$1 + . 0s amended by acts of *ay 6 , 6< (+ $tat. />+) and $e#t. 6 , + ( <9 $tat. 66 ).N

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<. 1ustody of Plates and Dies5 3#enses of 8ssue and "etirement of =otes!he #lates and dies to be #rocured by the $ecretary of the !reasury for the #rinting of such circulating notes shall remain under his

control and direction, and the e3#enses necessarily incurred in e3ecuting the laws relating to the #rocuring of such notes, and all other













e3#enses incidental to their issue and retirement, shall be #aid by the 4ederal reser e banks, and the Board of @o ernors of the4ederal "eser e $ystem shall include in its estimate of e3#enses le ied against the 4ederal reser e banks a sufficient amount to co erthe e3#enses herein #ro ided for.

M 6 '$1 +6<. Part of original 4ederal "eser e 0ct5 not amended.N

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. 3aminations of Plates, Dies, tc.!he $ecretary of the !reasury may e3amine the #lates, dies, bed #ieces, and other material used in the #rinting of 4ederal "eser enotes and issue regulations relating to such e3aminations.

M 6 '$1 +6 . 0s amended by act of $e#t. 6 , + ( <9 $tat. 66 ).N

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6. 0##ro#riation for ngra ing, tc.0ny a##ro#riation heretofore made out of the general funds of the !reasury for engra ing #lates and dies, the #urchase of distincti e#a#er, or to co er any other e3#ense in connection with the #rinting of national-bank notes or notes #ro ided for by the 0ct of *aythirtieth, nineteen hundred and eight, and any distincti e #a#er that may be on hand at the time of the #assage of this 0ct may be usedin the discretion of the $ecretary for the #ur#oses of this 0ct, and should the a##ro#riations heretofore made be insufficient to meet there uirements of this 0ct in addition to circulating notes #ro ided for by e3isting law, the $ecretary is hereby authori2ed to use so muchof any funds in the !reasury not otherwise a##ro#riated for the #ur#ose of furnishing the notes aforesaid7 #ro,i e ) howe,er , !hatnothing in this section contained shall be construed as e3em#ting national banks or 4ederal reser e banks from their liability to

reimburse the 'nited $tates for any e3#enses incurred in #rinting and issuing circulating notes.

MFmitted from '.$. 1ode. Part of original 4ederal "eser e 0ct. !his #aragra#h was in effect amended by subsection (a) of section of the Permanent0##ro#riation "e#eal 0ct of +, a##ro ed ;une 6/, + (+9 $tat. 66+5 '$1, :6>), which #ro ides7 H!hat effecti e ;uly , >, such #ortions of any actsas #ro ide #ermanent or continuing a##ro#riations from the general fund of the !reasury to be disbursed under the a##ro#riation accounts a##earing on thebooks of the @o ernment, and listed in subsection (b) of this section, are hereby re#ealed, and any unobligated balances under such accounts as of ;une <,

>, shall be co ered into the sur#lus fund of the !reasury.H 0mong the a##ro#riation accounts listed in subsection (b) is that for the #re#aration and issue of4ederal reser e notes.N

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. 1hecks and Drafts to Be "ecei ed on De#osit at Par ery 4ederal reser e bank shall recei e on de#osit at #ar from de#ository institutions or from 4ederal reser e banks checks and other

items, including negotiable orders of withdrawal and share drafts and drafts drawn u#on any of its de#ositors, and when remitted by a

4ederal reser e bank, checks and other items, including negotiable orders of withdrawal and share drafts and drafts drawn by anyde#ositor in any other 4ederal reser e bank or de#ository institution u#on funds to the credit of said de#ositor in said reser e bank orde#ository institution. =othing herein contained shall be construed as #rohibiting a de#ository institution from charging its actuale3#ense incurred in collecting and remitting funds, or for e3change sold to its #atrons. !he Board of @o ernors of the 4ederal "eser e$ystem shall, by rule, fi3 the charges to be collected by the de#ository institutions from its #atrons whose checks and other items,including negotiable orders of withdrawal and share drafts are cleared through the 4ederal reser e bank and the charge which may beim#osed for the ser ice of clearing or collection rendered by the 4ederal reser e bank.

M 6 '$1 /<. 0s amended by act of *arch , 9< ( + $tat. +<).N

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+. !ransfer of 4unds 0mong 4ederal "eser e Banks!he Board of @o ernors of the 4ederal "eser e $ystem shall make and #romulgate from time to time regulations go erning thetransfer of funds and charges therefor among 4ederal reser e banks and their branches, and may at its discretion e3ercise thefunctions of a clearing house for such 4ederal reser e banks, or may designate a 4ederal reser e bank to e3ercise such functions, andmay also re uire each such bank to e3ercise the functions of a clearing house for de#ository institutions.

M 6 '$1 6+9- . 0s amended by acts of 0ug. 6 , > (+ $tat. :<+) and *arch , 9< ( + $tat. +<). "eclassified (#re iously 6 '$1 6+9(o).N

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>. @old De#osits and @old 1ertificate De#osits!he $ecretary of the !reasury is hereby authori2ed and directed to recei e de#osits of gold or of gold certificates or of $#ecial Drawing"ight certificates with the !reasurer or any 0ssistant !reasurer of the 'nited $tates when tendered by any 4ederal "eser e bank or4ederal "eser e agent for credit to its or his account with the Board of @o ernors of the 4ederal "eser e $ystem. !he $ecretary shall#rescribe by regulation the form of recei#t to be issued by the !reasurer or 0ssistant !reasurer to the 4ederal "eser e bank or 4ederal













"eser e agent making the de#osit, and a du#licate of such recei#t shall be deli ered to the Board of @o ernors of the 4ederal "eser e$ystem by the !reasurer at Washington u#on #ro#er ad ices from any 0ssistant !reasurer that such de#osit has been made. De#ositsso made shall be held subKect to the orders of the Board of @o ernors of the 4ederal "eser e $ystem and de#osits of gold or goldcertificates shall be #ayable in gold certificates, and de#osits of $#ecial Drawing "ight certificates shall be #ayable in $#ecial Drawing"ight certificates, on the order of the Board of @o ernors of the 4ederal "eser e $ystem to any 4ederal "eser e bank or 4ederal"eser e agent at the !reasury or at the subtreasury of the 'nited $tates nearest the #lace of business of such 4ederal "eser e bankor such 4ederal "eser e agent. !he order used by the Board of @o ernors of the 4ederal "eser e $ystem in making such #aymentsshall be signed by the chairman or ice chairman, or such other officers or members as the Board may by regulation #rescribe. !heform of such order shall be a##ro ed by the $ecretary of the !reasury.

M 6 '$1 +/:. 0s added by act of ;une 6 , : (+< $tat. 6 9)5 and amended by acts of ;an. <, + (+9 $tat. ) and ;une , /9 (96 $tat. 9 ). Prior toenactment of the Banking 0ct of >, a##ro ed 0ug. 6 , >, the chairman and ice chairman of the Board of @o ernors of the 4ederal "eser e $ystem wereknown as the go ernor and ice go ernor of the 4ederal "eser e Board, res#ecti ely. $ee note to section .N

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/. 3#enses!he e3#enses necessarily incurred in carrying out these #ro isions, including the cost of the certificates or recei#ts issued for de#ositsrecei ed, and all e3#enses incident to the handling of such de#osits shall be #aid by the Board of @o ernors of the 4ederal "eser e$ystem and included in its assessments against the se eral 4ederal reser e banks.

M 6 '$1 +/:. 0s added by act of ;une 6 , : (+< $tat. 6 9).N

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/. 3#enses=othing in this section shall be construed as amending section si3 of the 0ct of *arch fourteenth, nineteen hundred, as amended bythe 0cts of *arch fourth, nineteen hundred and se en, *arch second, nineteen hundred and ele en, and ;une twelfth, nineteenhundred and si3teen, nor shall the #ro isions of this section be construed to a##ly to the de#osits made or to the recei#ts or certificatesissued under those 0cts.

M 6 '$1 +/:. 0s added by act of ;une 6 , : (+< $tat. 6 ).N

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%ection />. Ceposit of )onds by Bational )anks

. "e#eal of Pro isions "e uiring =ational Banks to De#osit Bonds with 'nited $tates !reasurer $o much of the #ro isions of section fifty-one hundred and fifty-nine of the "e ised $tatutes of the 'nited $tates, and section four ofthe 0ct of ;une twentieth, eighteen hundred and se enty-four, and section eight of the 0ct of ;uly twelfth, eighteen hundred and eighty-two, and of any other #ro isions of e3isting statutes as re uire that before any national banking association shall be authori2ed tocommence banking business it shall transfer and deli er to the !reasurer of the 'nited $tates a stated amount of 'nited $tatesregistered bonds, and so much of those #ro isions or of any other #ro isions of e3isting statutes as re uire any national bankingassociation now or hereafter organi2ed to maintain a minimum de#osit of such bonds with the !reasurer is hereby re#ealed.

M 6 '$1 < a note. 0s amended by act of ;une 6 , : (+< $tat. 6 ).N

%ection /<. $efunding )onds









. 0##lication to $ell Bonds $ecuring 1irculation0fter two years from the #assage of this 0ct, and at any time during a #eriod of twenty years thereafter, any member bank desiring toretire the whole or any #art of its circulating notes, may file with the !reasurer of the 'nited $tates an a##lication to sell for its account,at #ar and accrued interest, 'nited $tates bonds securing circulation to be retired.

M 6 '$1 ++ . Part of original 4ederal "eser e 0ct5 not amended. Fn *arch , >, the $ecretary of the !reasury called for redem#tion on ;uly , >, and0ug. , >, res#ecti ely, the only bonds of the 'nited $tates bearing the circulating #ri ilege after ;uly 66, >, namely the 6 #ercent 1onsols of < andthe 6 #ercent Panama 1anal Loan bonds of /- / and 9- 9.N

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6. Purchase of Bonds by 4ederal "eser e Banks!he !reasurer shall, at the end of each uarterly #eriod, furnish the Board of @o ernors of the 4ederal "eser e $ystem with a list ofsuch a##lications, and the Board of @o ernors of the 4ederal "eser e $ystem may, in its discretion, re uire the 4ederal reser e banksto #urchase such bonds from the banks whose a##lications ha e been filed with the !reasurer at least ten days before the end of any

uarterly #eriod at which the Board of @o ernors of the 4ederal "eser e $ystem may direct the #urchase to be made7 #ro,i e , !ha4ederal reser e banks shall not be #ermitted to #urchase an amount to e3ceed G6>,<<<,<<< of such bonds in any one year, and whichamount shall include bonds ac uired under section four of this 0ct by the 4ederal reser e bank.

M 6 '$1 ++6. Part of original 4ederal "eser e 0ct5 not amended.N

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. 0llotment of Bonds to Be Purchased

#ro,i e further) !hat the Board of @o ernors of the 4ederal "eser e $ystem shall allot to each 4ederal reser e bank such #ro#ortionof such bonds as the ca#ital and sur#lus of such bank shall bear to the aggregate ca#ital and sur#lus of all the 4ederal reser e banks.

M 6 '$1 + . 0s amended by acts of ;une 6 , : (+< $tat. 6 /)5 ;an. <, + (+9 $tat. 9)5 ;une 6, +> (> $tat. 6 :)5 ;uly , >+ (/9 $tat. + >)5*arch , /> (: $tat. >)5 *ay 6<, // (9< $tat. / )5 and *arch 9, /9 (96 $tat. ><).N

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+. !ransfer and Payment#on notice from the !reasurer of the amount of bonds so sold for its account, each member bank shall duly assign and transfer, inwriting, such bonds to the 4ederal reser e bank #urchasing the same, and such 4ederal reser e bank shall, thereu#on, de#osit lawfulmoney with the !reasurer of the 'nited $tates for the #urchase #rice of such bonds, and the !reasurer shall #ay to the member bankselling such bonds any balance due after deducting a sufficient sum to redeem its outstanding notes secured by such bonds, whichnotes shall be canceled and #ermanently retired when redeemed.

M 6 '$1 ++ . Part of original 4ederal "eser e 0ct5 not amended.N

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>. 4ederal "eser e Bank =otes!he 4ederal reser e banks #urchasing such bonds shall be #ermitted to take out an amount of circulating notes e ual to the #ar alueof such bonds.

M 6 '$1 +++. Part of original 4ederal "eser e 0ct5 not amended.N

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/. 1ollateral for =otes5 4orm and !enor5 "edem#tion#on the de#osit with the !reasurer of the 'nited $tates, (a) of any direct obligations of the 'nited $tates or (b) of any notes, drafts,bills of e3change, or bankersI acce#tances ac uired under the #ro isions of this 0ct, any 4ederal reser e bank making such de#osit inthe manner #rescribed by the $ecretary of the !reasury shall be entitled to recei e from the $ecretary of the !reasury circulating notesin blank, duly registered and countersigned. When such circulating notes are issued against the security of obligations of the 'nited$tates, the amount of such circulating notes shall be e ual to the face alue of the direct obligations of the 'nited $tates so de#ositedas security5 and, when issued against the security of notes, drafts, bills of e3change and bankersI acce#tances ac uired under the#ro isions of this 0ct, the amount thereof shall be e ual to not more than < #er cent of the estimated alue of such notes, drafts, billsof e3change and bankersI acce#tances so de#osited as security. $uch notes shall be the obligations of the 4ederal reser e bank#rocuring the same, shall be in form #rescribed by the $ecretary of the !reasury, shall be recei able at #ar in all #arts of the 'nited$tates for the same #ur#oses as are national bank notes, and shall be redeemable in lawful money of the 'nited $tates on#resentation at the 'nited $tates !reasury or at the bank of issue. !he $ecretary of the !reasury is authori2ed and em#owered to#rescribe regulations go erning the issuance, redem#tion, re#lacement, retirement and destruction of such circulating notes and therelease and substitution of security therefor. $uch circulating notes shall be subKect to the same ta3 as is #ro ided by law for the













circulating notes of national banks secured by 6 #er cent bonds of the 'nited $tates. =o such circulating notes shall be issued underthis #aragra#h after the President has declared by #roclamation that the emergency recogni2ed by the President by #roclamation of*arch /, , has terminated, unless such circulating notes are secured by de#osits of bonds of the 'nited $tates bearing thecirculation #ri ilege. When re uired to do so by the $ecretary of the !reasury, each 4ederal reser e agent shall act as agent of the!reasurer of the 'nited $tates or of the $ecretary of the !reasury, or both, for the #erformance of any of the functions which the!reasurer or the $ecretary of the !reasury may be called u#on to #erform in carrying out the #ro isions of this #aragra#h.0##ro#riations a ailable for distincti e #a#er and #rinting 'nited $tates currency or national bank currency are hereby made a ailablefor the #roduction of the circulating notes of 4ederal reser e banks herein #ro ided5 but the 'nited $tates shall be reimbursed by the4ederal reser e bank to which such notes are issued for all e3#enses necessarily incurred in connection with the #rocuring of suchnotes and all other e3#enses incidental to their issue, redem#tion, re#lacement, retirement and destruction.

M4ormerly 6 '$1 ++>. 0s amended by acts of *arch , (+9 $tat. /)5 ;une 6, +> (> $tat. 6 9)5 and $e#t. 6 , + ( <9 $tat. 66 ). !his #aragra#hwas in effect re#ealed by section of the act of ;une 6, +>, which #ro ided7

H0ll #ower and authority with res#ect to the issuance of circulating notes, known as 4ederal "eser e bank notes, #ursuant to the si3th #aragra#h of section 9 ofthe 4ederal "eser e 0ct, as amended by section +< of the 0ct a##ro ed *arch , (+9 $tat. , /), shall cease and terminate on the date of enactment ofthis 0ct.H

0s to redem#tion of 4ederal "eser e bank notes when the bank of issue cannot be identified, see section 6 of the act of ;une , ( 6 '$1 66a).N

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:. 3change of 6 Percent @old Bonds for Fne-&ear @old =otes and <-&ear Percent @old Bonds#on a##lication of any 4ederal reser e bank, a##ro ed by the Board of @o ernors of the 4ederal "eser e $ystem, the $ecretary ofthe !reasury may issue, in e3change for 'nited $tates two #er centum gold bonds bearing the circulation #ri ilege, but against which

no circulation is outstanding, one-year gold notes of the 'nited $tates without the circulation #ri ilege, to an amount not to e3ceed one-half of the two #er centum bonds so tendered for e3change, and thirty-year three #er centum gold bonds without the circulation#ri ilege for the remainder of the two #er centum bonds sotendered7 #ro,i e , !hat at the time of such e3change the 4ederal reser ebank obtaining such one-year gold notes shall enter into an obligation with the $ecretary of the !reasury binding itself to #urchase fromthe 'nited $tates for gold at the maturity of such one-year notes, an amount e ual to those deli ered in e3change for such bonds, if sore uested by the $ecretary, and at each maturity of one-year notes so #urchased by such 4ederal reser e bank, to #urchase from thenited $tates such an amount of one-year notes as the $ecretary may tender to such bank, not to e3ceed the amount issued to suchbank in the first instance, in e3change for the two #er centum 'nited $tates gold bonds5 said obligation to #urchase at maturity suchnotes shall continue in force for a #eriod not to e3ceed thirty years.

M 6 '$1 ++/. Part of original 4ederal "eser e 0ct5 not amended.N

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9. 8ssue of Fne-&ear !reasury =otes and <-&ear Percent @old Bonds4or the #ur#ose of making the e3change herein #ro ided for, the $ecretary of the !reasury is authori2ed to issue at #ar !reasury notesin cou#on or registered form as he may #rescribe in denominations of one hundred dollars, or any multi#le thereof, bearing interest atthe rate of three #er centum #er annum, #ayable uarterly, such !reasury notes to be #ayable not more than one year from the date oftheir issue in gold coin of the #resent standard alue, and to be e3em#t as to #rinci#al and interest from the #ayment of all ta3es andduties of the 'nited $tates e3ce#t as #ro ided by this 0ct, as well as from ta3es in any form by or under $tate, munici#al, or localauthorities. 0nd for the same #ur#ose, the $ecretary is authori2ed and em#owered to issue 'nited $tates gold bonds at #ar, bearingthree #er centum interest #ayable thirty years from date of issue, such bonds to be of the same general tenor and effect and to beissued under the same general terms and conditions as the 'nited $tates three #er centum bonds without the circulation #ri ilege nowissued and outstanding.

M 6 '$1 ++:. Part of original 4ederal "eser e 0ct5 not amended.N

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. 3change of Percent Bonds for Fne-&ear =otes#on a##lication of any 4ederal reser e bank, a##ro ed by the Board of @o ernors of the 4ederal "eser e $ystem, the $ecretary mayissue at #ar such three #er centum bonds in e3change for the one-year gold notes therein #ro ided for.

M 6 '$1 ++9. Part of original 4ederal "eser e 0ct5 not amended.N

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ii% in the ratio of 6 #er centum, or in such other ratio as the Board may #rescribe not greater than + #ercentum and not less than 9 #er centum, for that #ortion of its total transaction accounts in e3cess ofG6>,<<<,<<<, subKect to sub#aragra#h (1). X

B. ach de#ository institution shall maintain reser es against its non#ersonal time de#osits in the ratio of #er centum,or in such other ratio not greater than #er centum and not less than 2ero #er centum as the Board may #rescribe byregulation solely for the #ur#ose of im#lementing monetary #olicy.

1. Beginning in 9 , not later than December of each year the Board shall issue a regulation increasing for the ne3tsucceeding calendar year the dollar amount which is contained in sub#aragra#h (0) or which was last determined#ursuant to this sub#aragra#h for the #ur#ose of such sub#aragra#h, by an amount obtained by multi#lying suchdollar amount by 9< #er centum of the #ercentage increase in the total transaction accounts of all de#ositoryinstitutions. !he increase in such transaction accounts shall be determined by subtracting the amount of such

accounts on ;une < of the #receding calendar year from the amount of such accounts on ;une < of the calendaryear in ol ed. 8n the case of any such 6-month #eriod in which there has been a decrease in the total transactionaccounts of all de#ository institutions, the Board shall issue such a regulation decreasing for the ne3t succeedingcalendar year such dollar amount by an amount obtained by multi#lying such dollar amount by 9< #er centum of the#ercentage decrease in the total transaction accounts of all de#ository institutions. !he decrease in such transactionaccounts shall be determined by subtracting the amount of such accounts on ;une < of the calendar year in ol edfrom the amount of such accounts on ;une < of the #re ious calendar year.

D. 0ny reser e re uirement im#osed under this subsection shall be uniformly a##lied to all transaction accounts at allde#ository institutions. "eser e re uirements im#osed under this subsection shall be uniformly a##lied to non#ersonaltime de#osits at all de#ository institutions, e3ce#t that such re uirements may ary by the maturity of such de#osits.

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>%(ai,er of ratio !imits in e3traor inary circumstances . '#on a finding by at least > members of the Board that e3traordinarycircumstances re uire such action, the Board, after consultation with the a##ro#riate committees of the 1ongress, mayim#ose, with res#ect to any liability of de#ository institutions, reser e re uirements outside the limitations as to ratios and as toty#es of liabilities otherwise #rescribed by #aragra#h (6) for a #eriod not e3ceeding 9< days, and for further #eriods note3ceeding 9< days each by affirmati e action by at least > members of the Board in each instance. !he Board shall #rom#tlytransmit to the 1ongress a re#ort of any e3ercise of its authority under this #aragra#h and the reasons for such e3ercise ofauthority.

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$% 'upp!ementa! reser,es . 0. !he Board may, u#on the affirmati e ote of not less than > members, im#ose a su##lemental reser e re uirement on

e ery de#ository institution of not more than + #er centum of its total transaction accounts. $uch su##lemental reser ere uirement may be im#osed only if--

i. the sole #ur#ose of such re uirement is to increase the amount of reser es maintained to a le el essential forthe conduct of monetary #olicy5

ii. such re uirement is not im#osed for the #ur#ose of reducing the cost burdens resulting from the im#osition ofthe reser e re uirements #ursuant to #aragra#h (6)5

iii. such re uirement is not im#osed for the #ur#ose of increasing the amount of balances needed for clearing#ur#oses5 and

i . on the date on which the su##lemental reser e re uirement is im#osed, e3ce#t as #ro ided in #aragra#h( ), the total amount of reser es re uired #ursuant to #aragra#h (6) is not less than the amount of reser esthat would be re uired if the initial ratios s#ecified in #aragra#h (6) were in effect.

B. !he Board may re uire the su##lemental reser e authori2ed under sub#aragra#h (0) only after consultation with theBoard of Directors of the 4ederal De#osit 8nsurance 1or#oration, the Director of the Fffice of !hrift $u#er ision, andthe =ational 1redit 'nion 0dministration Board. !he Board shall #rom#tly transmit to the 1ongress a re#ort withres#ect to any e3ercise of its authority to re uire su##lemental reser es under sub#aragra#h (0) and such re#ort shallstate the basis for the determination to e3ercise such authority.

C%!he su##lemental reser e authori2ed under sub#aragra#h (0) shall be maintained by the 4ederal "eser e banks inan arnings Partici#ation 0ccount. 3ce#t as #ro ided in subsection (c)( )(0)(ii), such arnings Partici#ation 0ccountshall recei e earnings to be #aid by the 4ederal "eser e banks during each calendar uarter at a rate not more thanthe rate earned on the securities #ortfolio of the 4ederal "eser e $ystem during the #re ious calendar uarter. !heBoard may #rescribe rules and regulations concerning the #ayment of earnings on arnings Partici#ation 0ccounts by4ederal "eser e banks under this #aragra#h. Y

D. 8f a su##lemental reser e under sub#aragra#h (0) has been re uired of de#ository institutions for a #eriod of one yearor more, the Board shall re iew and determine the need for continued maintenance of su##lemental reser es andshall transmit annual re#orts to the 1ongress regarding the need, if any, for continuing the su##lemental reser e.

. 0ny su##lemental reser e im#osed under sub#aragra#h (0) shall terminate at the close of the first <-day #eriod aftersuch re uirement is im#osed during which the a erage amount of reser es re uired under #aragra#h (6) are less thanthe amount of reser es which would be re uired during such #eriod if the initial ratios s#ecified in #aragra#h (6) werein effect.











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L%-eser,es re!ate to foreign o%!igations or assets . 4oreign branches, subsidiaries, and international banking facilities ofnonmember de#ository institutions shall maintain reser es to the same e3tent re uired by the Board of foreign branches,subsidiaries, and international banking facilities of member banks. 8n addition to any reser es otherwise re uired to bemaintained #ursuant to this subsection, any de#ository institution shall maintain reser es in such ratios as the Board may#rescribe against--

0. net balances owed by domestic offices of such de#ository institution in the 'nited $tates to its directly related foreignoffices and to foreign offices of non-related de#ository institutions5

B. loans to 'nited $tates residents made by o erseas offices of such de#ository institution if such de#ository institutionhas one or more offices in the 'nited $tates5 and

1. assets (including #artici#ations) held by foreign offices of a de#ository institution in the 'nited $tates which wereac uired from its domestic offices.

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%43emption for certain eposits . !he re uirements im#osed under #aragra#h (6) shall not a##ly to de#osits #ayable onlyoutside the $tates of the 'nited $tates and the District of 1olumbia, e3ce#t that nothing in this subsection limits the authority ofthe Board to im#ose conditions and re uirements on member banks under section 6> of this 0ct or the authority of the Boardunder section : of the 8nternational Banking 0ct of :9 ( 6 '.$.1. <>).

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H%Discount an %orrowing . 0ny de#ository institution in which transaction accounts or non#ersonal time de#osits are held shallbe entitled to the same discount and borrowing #ri ileges as member banks. 8n the administration of discount and borrowing#ri ileges, the Board and the 4ederal "eser e banks shall take into consideration the s#ecial needs of sa ings and otherde#ository institutions for access to discount and borrowing facilities consistent with their long-term asset #ortfolios and thesensiti ity of such institutions to trends in the national money markets.

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=%Transitiona! a 5ustments . 0. 0ny de#ository institution re uired to maintain reser es under this subsection which was engaged in business on ;uly

, : , but was not a member of the 4ederal "eser e $ystem on or after that date, shall maintain reser es againstits de#osits during the first twel e-month #eriod following the effecti e date of this #aragra#h in amounts e ual to one-eighth of those otherwise re uired by this subsection, during the second such twel e-month #eriod in amounts e ualto one-fourth of those otherwise re uired, during the third such twel e-month #eriod in amounts e ual to three-eighthsof those otherwise re uired, during the fourth twel e-month #eriod in amounts e ual to one-half of those otherwisere uired, and during the fifth twel e-month #eriod in amounts e ual to fi e-eighths of those otherwise re uired, duringthe si3th twel e-month #eriod in amounts e ual to three-fourths of those otherwise re uired, and during the se enthtwel e-month #eriod in amounts e ual to se en-eighths of those otherwise re uired. !his sub#aragra#h does nota##ly to any category of de#osits or accounts which are first authori2ed #ursuant to 4ederal law in any $tate after

0#ril , 9<.B. With res#ect to any bank which was a member of the 4ederal "eser e $ystem during the entire #eriod beginning on

;uly , : , and ending on the effecti e date of the *onetary 1ontrol 0ct of 9<, the amount of re uired reser esim#osed #ursuant to this subsection on and after the effecti e date of such 0ct that e3ceeds the amount of reser eswhich would ha e been re uired of such bank if the reser e ratios in effect during the reser e com#utation #eriodimmediately #receding such effecti e date were a##lied may, at the discretion of the Board and in accordance withsuch rules and regulations as it may ado#t, be reduced by :> #er centum during the first year which begins after sucheffecti e date, >< #er centum during the second year, and 6> #er centum during the third year.

1.i. With res#ect to any bank which is a member of the 4ederal "eser e $ystem on the effecti e date of the

*onetary 1ontrol 0ct of 9<, the amount of reser es which would ha e been re uired of such bank if thereser e ratios in effect during the reser e com#utation #eriod immediately #receding such effecti e date werea##lied that e3ceeds the amount of re uired reser es im#osed #ursuant to this subsection shall, inaccordance with such rules and regulations as the Board may ado#t, be reduced by 6> #er centum during thefirst year which begins after such effecti e date, >< #er centum during the second year, and :> #er centumduring the third year.

ii. 8f a bank becomes a member bank during the four-year #eriod beginning on the effecti e date of the*onetary 1ontrol 0ct of 9<, and if the amount of reser es which would ha e been re uired of such bank,determined as if the reser e ratios in effect during the reser e com#utation #eriod immediately #recedingsuch effecti e date were a##lied, and as if such bank had been a member during such #eriod, e3ceeds theamount of reser es re uired #ursuant to this subsection, the amount of reser es re uired to be maintained bysuch bank beginning on the date on which such bank becomes a member of the 4ederal "eser e $ystemshall be the amount of reser es which would ha e been re uired of such bank if it had been a member on the











day before such effecti e date, e3ce#t that the amount of such e3cess shall, in accordance with such rulesand regulations as the Board may ado#t, be reduced by 6> #er centum during the first year which begins aftersuch effecti e date, >< #er centum during the second year, and :> #er centum during the third year.

D.i. 0ny bank which was a member bank on ;uly , : , and which withdraws from membershi# in the 4ederal

"eser e $ystem during the #eriod beginning on ;uly , : , and ending on *arch , 9<, shall maintainreser es during the first twel e-month #eriod beginning on the date of enactment of this clause in amountse ual to one-half of those otherwise re uired by this subsection, during the second such twel e-month #eriodin amounts e ual to two-thirds of those otherwise re uired, and during the third such twel e-month #eriod inamounts e ual to fi e-si3ths of those otherwise re uired.

ii. 0ny bank which withdraws from membershi# in the 4ederal "eser e $ystem on or after the date ofenactment of the De#ository 8nstitutions Deregulation and *onetary 1ontrol 0ct of 9< shall maintainreser es in the same amount as member banks are re uired to maintain under this subsection, #ursuant tosub#aragra#hs (B) and (1)(i).

. !his sub#aragra#h a##lies to any de#ository institution that, on 0ugust , :9, (i) was engaged in business as ade#ository institution in a $tate outside the continental limits of the 'nited $tates, and (ii) was not a member of the4ederal "eser e $ystem at any time on or after such date. $uch a de#ository institution shall not be re uired tomaintain reser es against its de#osits held or maintained at its offices located in a $tate outside the continental limitsof the 'nited $tates until the first day of the si3th calendar year which begins after the effecti e date of the *onetary1ontrol 0ct of 9<. $uch a de#ository institution shall maintain reser es against its de#osits during the si3th calendaryear which begins after such effecti e date in an amount e ual to one-eighth of that otherwise re uired by #aragra#h(6), during the se enth such year in an amount e ual to one-fourth of that otherwise re uired, during the eighth suchyear in an amount e ual to three-eighths of that otherwise re uired, during the ninth such year in an amount e ual toone-half of that otherwise re uired, during the tenth such year in an amount e ual to fi e-eighths of that otherwisere uired, during the ele enth such year in an amount e ual to three-fourths of that otherwise re uired, and during thetwelfth such year in an amount e ual to se en-eighths of that otherwise re uired.

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%43emption . !his subsection shall not a##ly with res#ect to any financial institution which-- 0. is organi2ed solely to do business with other financial institutions5B. is owned #rimarily by the financial institutions with which it does business5 and1. does not do business with the general #ublic.

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#%(ai,ers . 8n indi idual cases, where a 4ederal su#er isory authority wai es a li uidity re uirement, or wai es the #enalty forfailing to satisfy a li uidity re uirement, the Board shall wai e the reser e re uirement, or wai e the #enalty for failing to satisfya reser e re uirement, im#osed #ursuant to this subsection for the de#ository institution in ol ed when re uested by the4ederal su#er isory authority in ol ed.

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% A itiona! e3emptions . 0.

i. =otwithstanding the reser e re uirement ratios established under #aragra#hs (6) and (>) of this subsection, areser e ratio of 2ero #er centum shall a##ly to any combination of reser able liabilities, which do not e3ceedG6,<<<,<<< (as adKusted under sub#aragra#h (B)), of each de#ository institution.

ii. ach de#ository institution may designate, in accordance with such rules and regulations as the Board shall#rescribe, the ty#es and amounts of reser able liabilities to which the reser e ratio of 2ero #er centum shalla##ly, e3ce#t that transaction accounts which are designated to be subKect to a reser e ratio of 2ero #er

centum shall be accounts which would otherwise be subKect to a reser e ratio of #er centum under#aragra#h (6).iii. !he Board shall minimi2e the re#orting necessary to determine whether de#ository institutions ha e total

reser able liabilities of less than G6,<<<,<<< (as adKusted under sub#aragra#h (B)). 1onsistent with theBoardIs res#onsibility to monitor and control monetary and credit aggregates, de#ository institutions whichha e reser e re uirements under this subsection e ual to 2ero #er centum shall be subKect to less o erallre#orting re uirements than de#ository institutions which ha e a reser e re uirement under this subsectionthat e3ceeds 2ero #er centum.

B.i. Beginning in 96, not later than December of each year, the Board shall issue a regulation increasing for

the ne3t succeeding calendar year the dollar amount s#ecified in sub#aragra#h (0), as #re iously adKustedunder this sub#aragra#h, by an amount obtained by multi#lying such dollar amount by 9< #er centum of the#ercentage increase in the total reser able liabilities of all de#ository institutions.

ii. !he increase in total reser able liabilities shall be determined by subtracting the amount of total reser able

liabilities on ;une < of the #receding calendar year from the amount of total reser able liabilities on ;une <









of the calendar year in ol ed. 8n the case of any such twel e-month #eriod in which there has been adecrease in the total reser able liabilities of all de#ository institutions, no adKustment shall be made. 0decrease in total reser able liabilities shall be determined by substracting the amount of total reser ableliabilities on ;une < of the calendar year in ol ed from the amount of total reser able liabilities on ;une < ofthe #re ious calendar year.

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"%4arnings on %a!ances .Z 0. Balances maintained at a 4ederal "eser e bank by or on behalf of a de#ository institution may recei e earnings to be

#aid by the 4ederal "eser e bank at least once each calendar uarter, at a rate or rates not to e3ceed the generalle el of short-term interest rates.

B. !he Board may #rescribe regulations concerning--i. the #ayment of earnings in accordance with this #aragra#h5ii. the distribution of such earnings to the de#ository institutions which maintain balances at such banks, or on

whose behalf such balances are maintained5 andiii. the res#onsibilities of de#ository institutions, 4ederal ome Loan Banks, and the =ational 1redit 'nion

0dministration 1entral Li uidity 4acility with res#ect to the crediting and distribution of earnings attributable tobalances maintained, in accordance with subsection (c)(l)(0), in a 4ederal "eser e bank by any such entityon behalf of de#ository institutions.

1. 4or #ur#oses of this #aragra#h, the term Hde#ository institutionH, in addition to the institutions described in #aragra#h(l)(0), includes any trust com#any, cor#oration organi2ed under section 6>0 or ha ing an agreement with the Boardunder section 6>, or any branch or agency of a foreign bank (as defined in section l(b) of the 8nternational Banking 0ctof :9).

M 6 '$1 +/ (b). 0s amended by acts of ;une 6 , : (+< $tat. 6 )5 $e#t. 6/, 9 (+< $tat. :<)5 *ay 6, (+9 $tat. >+)5 0ug. 6 ,> (+ $tat. :</)5 ;uly :, +6 (>/ $tat. /+9)5 ;uly 69, > (: $tat. 6/+) effecti e ;uly 69, /65 $e#t. 6 , // (9< $tat. 96 ) (as

amended by acts of $e#t. 6 , /: (9 $tat. 66/) and $e#t. 6 , /9 (96 $tat. 9>/))5 Dec. 6 , / (9 $tat. :>)5 *arch , 9< ( + $tat., 9)5 0ug. , 9 ( > $tat. + )5 Fct. >, 96 ( / $tat. >6<, >6 )5 0ug. , 9 ( < $tat. + )5 and Fct. , 6<</ ( 6< $tat.

/9, / ).N

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Promulgation of "ules and "egulations "egarding *aintenance of Balances(+"

. "eser es held by a de#ository institution to meet the re uirements im#osed #ursuant to subsection (b) shall, subKect to suchrules and regulations as the Board shall #rescribe, be in the form of--

+%balances maintained for such #ur#oses by such de#ository institution in the 4ederal "eser e bank of which it is a

member or at which it maintains an account, e3ce#t that (i) the Board may, by regulation or order, #ermit de#ositoryinstitutions to maintain all or a #ortion of their re uired reser es in the form of ault cash, e3ce#t that any #ortion so#ermitted shall be identical for all de#ository institutions, and (ii) ault cash may be used to satisfy any su##lementalreser e re uirement im#osed #ursuant to subsection (b)(+), e3ce#t that all such ault cash shall be e3cluded from anycom#utation of earnings #ursuant to subsection (b)(+)(1)5 and

B. balances maintained by a de#ository institution in a de#ository institution which maintains re uired reser e balancesat a 4ederal "eser e bank, in a 4ederal ome Loan Bank, or in the =ational 1redit 'nion 0dministration 1entralLi uidity 4acility, if such de#ository institution, 4ederal ome Loan Bank, or =ational 1redit 'nion 0dministration1entral Li uidity 4acility maintains such funds in the form of balances in a 4ederal "eser e bank of which it is amember or at which it maintains an account. Balances recei ed by a de#ository institution from a second de#ositoryinstitution and used to satisfy the reser e re uirement im#osed on such second de#ository institution by this sectionshall not be subKect to the reser e re uirements of this section im#osed on such first de#ository institution, and shallnot be subKect to assessments or reser es im#osed on such first de#ository institution #ursuant to section : of the4ederal De#osit 8nsurance 0ct ( 6 '.$.1. 9 :), section +<+ of the =ational ousing 0ct ( 6 '.$.1. :6:), or section

6<6 of the 4ederal 1redit 'nion 0ct ( 6 '.$.1. :96).1. !he balances maintained to meet the reser e re uirements of subsection (b) by a de#ository institution in a 4ederal"eser e bank or #assed through a 4ederal ome Loan Bank or the =ational 1redit 'nion 0dministration 1entralLi uidity 4acility or another de#ository institution to a 4ederal "eser e bank may be used to satisfy li uidityre uirements which may be im#osed under other #ro isions of 4ederal or $tate law.

M 6 '$1 +/ (c). 0s amended by acts of 0ug. >, + ( 9 $tat. / )5 ;une 6 , : (+< $tat. 6 )5 ;uly 69, > (: $tat. 6/ )5 $e#t. 6 , // (9<$tat. 96 ) (as amended by acts of $e#t. 6 , /: (9 $tat. 66/) and $e#t. 6 , /9 (96 $tat. 9>/))5 Dec. 6 , / (9 $tat. :>)5 *arch , 9< ( +$tat. , 9)5 Fct , 6<</ ( 6< $tat. / , 9<).N

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*ember Banks *aking $ecurity Loans for Fthers(#" =o member bank shall act as the medium or agent of any nonbanking cor#oration, #artnershi#, association, business trust, or

indi idual in making loans on the security of stocks, bonds, and other in estment securities to brokers or dealers in stocks, bonds, and















other in estment securities. ery iolation of this #ro ision by any member bank shall be #unishable by a fine of not more than G <<#er day during the continuance of such iolation5 and such fine may be collected, by suit or otherwise, by the 4ederal reser e bank ofthe district in which such member bank is located.

M 6 '$1 :+a. 0s added by act of ;une /, (+9 $tat. 9 ) and amended by act of $e#t. 6 , // (9< $tat. 96+) (as amended by acts of $e#t. 6 , /: (9$tat. 66/) and $e#t. 6 , /9 (96 $tat. 9>/)).N

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De#osits with De#ository 8nstitutions Without 0ccess to 4ederal "eser e 0d ances5 Discounts for =onmember Banks(e" =o member bank shall kee# on de#osit with any de#ository institution which is not authori2ed to ha e access to 4ederal "eser ead ances under section <(b) of this 0ct a sum in e3cess of < #er centum of its own #aid-u# ca#ital and sur#lus. =o member bankshall act as the medium or agent of a nonmember bank in a##lying for or recei ing discounts from a 4ederal reser e bank under the#ro isions of this 0ct, e3ce#t by #ermission of the Board of @o ernors of the 4ederal "eser e $ystem.

M 6 '$1 +/ , :+. 0s reenacted without change by act of 0ug. >, + ( 9 $tat. / 6)5 and amended by acts of ;une 6 , : (+< $tat. 6 ) (which com#letelyre ised this section) and $e#t. 6 , // (9< $tat. 96+) (as amended by acts of $e#t. 6 , /: (9 $tat. 66/)5 $e#t. 6 , /9 (96 $tat. 9>/)5 and *arch , 9<( + $tat. +<).N

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1hecking 0gainst and Withdrawal of "eser e Balance(f" !he re uired balance carried by a member bank with a 4ederal reser e bank may, under the regulations and subKect to such#enalties as may be #rescribed by the Board of @o ernors of the 4ederal "eser e $ystem, be checked against and withdrawn by suchmember bank for the #ur#ose of meeting e3isting liabilities.

M 6 '$1 +/+. 0s reenacted without change by act of 0ug. >, + ( 9 $tat. / 6)5 as amended by acts of ;une 6 , : (+< $tat. 6 ) (which com#letelyre ised this section ;uly :, +6 (>/ $tat. /+9))5 and $e#t. 6 , // (9< $tat. 96+) (as amended by acts of $e#t. 6 , /: (9 $tat. 66/) and $e#t. 6 , /9 (96$tat. 9>/)).N

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Deductions in 1om#uting "eser es(g" 8n estimating the reser e balances re uired by this 0ct, member banks may deduct from the amount of their gross demand de#ositsthe amounts of balances due from other banks (e3ce#t 4ederal "eser e banks and foreign banks) and cash items in #rocess ofcollection #ayable immediately u#on #resentation in the 'nited $tates, within the meaning of these terms as defined by the Board of@o ernors of the 4ederal "eser e $ystem.

M 6 '$1 +/>. 0s amended by acts of 0ug. >, + ( 9 $tat. / 6)5 ;une 6 , : (+< $tat. 6+<) (which com#letely re ised this section)5 0ug. 6 , > (+ $tat.+)5 and $e#t. 6 , // (9< $tat. 96+) (as amended by acts of $e#t. 6 , /: (9 $tat. 66/) and $e#t. 6 , /9 (96 $tat. 9>/)).N

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"eser es of Banks in De#endencies and 8nsular Possessions(h" =ational banks, or banks organi2ed under local laws, located in the de#endency or insular #ossession or any #art of the 'nited$tates outside the continental 'nited $tates may remain nonmember banks, and shall in that e ent maintain reser es and com#ly withall the conditions now #ro ided by law regulating them5 or said banks may, with the consent of the Board of @o ernors of the 4ederal"eser e $ystem, become member banks of any one of the reser e districts, and shall in that e ent take stock, maintain reser es, andbe subKect to all the other #ro isions of this 0ct.

M 6 '$1 +//. 0s reenacted without change by act of 0ug. >, + ( 9 $tat. / 6)5 and as amended by acts of ;une 6 , : (+< $tat. 6+<)5 ;une 6>, > (:$tat. +6) and $e#t. 6 , // (9< $tat. 96+) (as amended by acts of $e#t. 6 , /: (9 $tat. 66/) and $e#t. 6 , /9 (96 $tat. 9>/)). !he Hcontinental 'nited$tatesH is defined in the third #aragra#h of section of the 4ederal "eser e 0ct to mean the H$tates of the 'nited $tates and the District of 1olumbia.HN

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8nterest on Demand De#osits(i" =o member bank shall, directly or indirectly, by any de ice whatsoe er, #ay any interest on any de#osit which is #ayable ondemand7 #ro,i e ) !hat nothing herein contained shall be construed as #rohibiting the #ayment of interest in accordance with theterms of any certificate of de#osit or other contract entered into in good faith which is in force on the date on which the bank becomessubKect to the #ro isions of this #aragra#h5 but no such certificate of de#osit or other contract shall be renewed or e3tended unless itshall be modified to conform to this #aragra#h, and e ery member bank shall take such action as may be necessary to conform to this#aragra#h as soon as #ossible consistently with its contractural obligations7 #ro,i e further) !hat this #aragra#h shall not a##ly to anyde#osit of such bank which is #ayable only at an office thereof located outside of the $tates of the 'nited $tates and the District of1olumbia7 #ro,i e further) !hat until the e3#iration of two years after the date of enactment of the Banking 0ct of > this #aragra#h

shall not a##ly ( ) to any de#osit made by a sa ings bank as defined in section 6B of this 0ct, as amended, or by a mutual sa ings













bank, or (6) to any de#osit of #ublic funds made by or on behalf of any $tate, county, school district, or other subdi ision ormunici#ality, or to any de#osit of trust funds if the #ayment of interest with res#ect to such de#osit of #ublic funds or of trust funds isre uired by $tate law. $o much of e3isting law as re uires the #ayment of interest with res#ect to any funds de#osited by the 'nited$tates, by any !erritory, District, or #ossession thereof, or by any #ublic instrumentality, agency, or officer of the foregoing, as isinconsistent with the #ro isions of this section is re#ealed. =otwithstanding any other #ro ision of this section, a member bank may#ermit withdrawals to be made automatically from a sa ings de#osit that consists only of funds in which the entire beneficial interest isheld by one or more indi iduals through #ayment to the bank itself or through transfer of credit to a demand de#osit or other account#ursuant to written authori2ation from the de#ositor to make such #ayments or transfers in connection with checks or drafts drawn u#onthe bank, #ursuant to terms and conditions #rescribed by the Board.

M 6 '$1 : a. 0s added by act of ;une /, (+9 $tat. 9 )5 and amended by acts of 0ug. 6 , > (+ $tat. : +), $e#t. 6 , // (9< $tat. 96+) (asamended by acts of $e#t. 6 , /: (9 $tat. 66/) $e#t. 6 , /9 (96 $tat. 9>/)5 Dec. 69, : ( $tat. 6 )5 and *arch , 9< ( + $tat. +>). !he Banking0ct of >, referred to in this #aragra#h, was a##ro ed 0ug. 6 , >. $ection 6B was withdrawn and enacted as a se#arate act of $e#t. 6 , ><5 fordefinition of Hsa ings bankH under the act, see 6 '$1 9 (g). Presidential Proclamation =o. 6/ > of ;uly +, +/ (/< $tat. >65 6 '$1 + note)recogni2es the inde#endence of the Phili##ine 8slands. !herefore the words H(including the Phili##ine 8slands)H ha e been omitted f rom the '.$. 1ode.

$ection 6 of Public Law - << of 0ug. /, : ( 6 '$1 9 6) as amended by acts of 4eb. 6:, :/ ( < $tat :)5 =o . <, :9 ( 6 $tat. : 6)5 Dec. 69,: ( $tat. 6 >)5 *arch , 9< ( + $tat. +/)5 Fct. >, 96 ( / $tat. >+<)5 and 0ug. <, 9: ( < $tat. >: ) #ro ides as follows7

(a) ( ) =otwithstanding any other #ro ision of law but subKect to #aragra#h (6), a de#ository institution is authori2ed to #ermit the owner of a de#osit or accounton which interest or di idends are #aid to make withdrawals by negotiable or transferable instruments for the #ur#ose of making transfers to third #arties.

(6) Paragra#h ( ) shall a##ly only with res#ect to de#osits or accounts which consist solely of funds in which the entire beneficial interest is held by one or moreindi iduals or by an organi2ation which is o#erated #rimarily for religious, #hilanthro#ic, charitable, educational, #olitical, or other similar #ur#oses and which isnot o#erated for #rofit, and with res#ect to de#osits of #ublic funds by an officer, em#loyee, or agent of the 'nited $tates, any $tate, county, munici#ality, or#olitical subdi ision thereof, the District of 1olumbia, the 1ommonwealth of Puerto "ico, 0merican $amoa, @uam, any territory or #ossession of the 'nited$tates, or any #olitical subdi ision thereof.

(b) 4or #ur#oses of this section, the term Hde#ository institutionH means[

. any insured bank as defined in section of the 4ederal De#osit 8nsurance 0ct56. any $tate bank as defined in section of the 4ederal De#osit 8nsurance 0ct5

. any mutual sa ings bank as defined in section of the 4ederal De#osit 8nsurance 0ct5+. any sa ings bank as defined in section of the 4ederal De#osit 8nsurance 0ct5>. any insured institution as defined in section +< of the =ational ousing 0ct5 and/. any building and loan association or sa ings and loan association organi2ed and o#erated according to the laws of the $tate in which it is chartered or

organi2ed5 and, for #ur#oses of this #aragra#h, the term H$tateH means any $tate of the 'nited $tates, the District of 1olumbia, any territory of the'nited $tates, Puerto "ico, @uam, 0merican $amoa, or the Airgin 8slands.

(c) 0ny de#ository institution which iolates this section shall be fined G ,<<< for each iolation.N

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0d ertisement of 8nterest on !ime and $a ings De#osits(E" !he Board may from time to time, after consulting with the Board of Directors of the 4ederal De#osit 8nsurance 1or#oration and the4ederal ome Loan Bank Board, #rescribe rules go erning the ad ertisement of interest on de#osits by member banks on time andsa ings de#osits. !he #ro isions of this #aragra#h shall not a##ly to any de#osit which is #ayable only at an office of a member banklocated outside of the $tates of the 'nited $tates and the District of 1olumbia. During the #eriod commencing on Fctober >, /6,and ending on Fctober >, /9, the #ro isions of this #aragra#h shall not a##ly to the rate of interest which may be #aid by memberbanks on time de#osits of foreign go ernments, monetary and financial authorities of foreign go ernments when acting as such, orinternational financial institutions of which the 'nited $tates is a member.

M 6 '$1 : b. 0s added by act of ;une /, (+9 $tat. 96). 0mended by acts of 0ug. 6 , > (+ $tat. : +)5 Fct. >, /6 (:/ $tat. > )5 ;uly 6 , />(: $tat. 6++)5 $e#t. 6 , // (9< $tat. 96+) (as amended by acts of $e#t. 6 , /: (9 $tat. 66/) and $e#t. 6 , /9 (96 $tat. 9>/), ;oint "esolution of $e#t.66, / (9 $tat. >)5 0ct of Dec. 6 , / (9 $tat. : )5 ;oint "esolution of *arch , : (9> $tat. )5 and act of *ay 9, : (9> $tat. 9))5 $e#t. 6 ,

/9 (96 $tat. 9>/)5 ;uly /, : (9: $tat. +:)5 0ug. /, : (9: $tat. +6)5 Fct. 69, :+ (99 $tat. ><>), Dec. , :> (9 $tat. 6+)5 0#ril , :: ($tat. + )5 and =o . /, :: ( $tat. 9:).N

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0##licability of $tate 'sury 1eilings to 1ertain Fbligations 8ssued by Bank and 0ffiliates

M$ubsection (k) ( 6 '$1 : b- ) was re#ealed by act of *arch , 9< ( + $tat. /9).N

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1i il *oney Penalty(l"









. 0ny member bank which, and any institution-affiliated #arty (within the meaning of section (u) of the 4ederal De#osit8nsurance 0ct) with res#ect to such member bank who, iolates any #ro ision of this section, or any regulation issued #ursuantthereto, shall forfeit and #ay a ci il #enalty of not more than G>,<<< for each day during which such iolation continues.

6. =otwithstanding #aragra#h ( ), any member bank which, and any institution-affiliated #arty (within the meaning of section (u)of the 4ederal De#osit 8nsurance 0ct) with res#ect to such member bank who--

0.i. commits any iolation described in #aragra#h ( )5ii. recklessly engages in an unsafe or unsound #ractice in conducting the affairs of such member bank5 oriii. breaches any fiduciary duty5

B. which iolation, #ractice, or breach--i. is #art of a #attern of misconduct5ii. causes or is likely to cause more than a minimal loss to such member bank5 oriii. results in #ecuniary gain or other benefit to such #arty,

shall forfeit and #ay a ci il #enalty of not more than G6>,<<< for each day during which such iolation, #ractice, orbreach continues.

. =otwithstanding #aragra#hs ( ) and (6), any member bank which, and any institution-affiliated #arty (within the meaning ofsection (u) of the 4ederal De#osit 8nsurance 0ct) with res#ect to such member bank who--

0. knowingly--i. commits any iolation described in #aragra#h ( )5ii. engages in any unsafe or unsound #ractice in conducting the affairs of such member bank5 oriii. breaches any fiduciary duty5 and

B. knowingly or recklessly causes a substantial loss to such member bank or a substantial #ecuniary gain or otherbenefit to such #arty by reason of such iolation, #ractice, or breach,shall forfeit and #ay a ci il #enalty in an amountnot to e3ceed the a##licable ma3imum amount determined under #aragra#h (+) for each day during which such

iolation, #ractice, or breach continues.+. !he ma3imum daily amount of any ci il #enalty which may be assessed #ursuant to #aragra#h ( ) for any iolation, #ractice, or

breach described in such #aragra#h is-- 0. in the case of any #erson other than a member bank, an amount not to e3ceed G ,<<<,<<<5 andB. in the case of a member bank, an amount not to e3ceed the lesser of --

i. G ,<<<,<<<5 orii. #ercent of the total assets of such member bank.

>. 0ny #enalty im#osed under #aragra#h ( ), (6), or ( ) may be assessed and collected by the Board in the manner #ro ided insub#aragra#hs ( ), (4), (@), and (8) of section 9(i)(6) of the 4ederal De#osit 8nsurance 0ct for #enalties im#osed (under suchsection) and any such assessment shall be subKect to the #ro isions of such section.

/. !he member bank or other #erson against whom any #enalty is assessed under this subsection shall be afforded an agencyhearing if such member bank or #erson submits a re uest for such hearing within 6< days after the issuance of the notice ofassessment. $ection 9(h) of the 4ederal De#osit 8nsurance 0ct shall a##ly to any #roceeding under this subsection.

:. 0ll #enalties collected under authority of this subsection shall be de#osited into the !reasury.9. 4or #ur#oses of this section, the term H iolateH includes any action (alone or with another or others) for or toward causing,

bringing about, #artici#ating in, counseling, or aiding or abetting a iolation.. !he Board shall #rescribe regulations establishing such #rocedures as may be necessary to carry out this subsection.

M 6 '$1 ><>, as added by act of =o . <, :9 ( 6 $tat. /+6) and amended by acts of Fct. >, 96 ( / $tat. >66, >6 ) and 0ug. , 9 ( < $tat. +:6).N

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=otice 'nder !his $ection 0fter $e#aration from $er ice(m" !he resignation, termination of em#loyment or #artici#ation, or se#aration of an institution-affiliated #arty (within the meaning ofsection (u) of the 4ederal De#osit 8nsurance 0ct) with res#ect to a member bank (including a se#aration caused by the closing of sucha bank) shall not affect the Kurisdiction and authority of the Board to issue any notice and #roceed under this section against any such

#arty, if such notice is ser ed before the end of the /-year #eriod beginning on the date such #arty ceased to be such a #arty withres#ect to such bank (whether such date occurs before, on, or after the date of the enactment of this subsection).

M 6 '$1 ><>. 0s added by act of 0ug. , 9 ( < $tat. +/ ).N

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ffecti e Fct. , 6< , section (b)(6)(0)(i) is amended by striking Hthe ratio of #er centumH and inserting Ha ratio of not greater than #ercent (and whichmay be 2ero)H (as amended by act of Fct. , 6<</ ( 6< $tat. / )).

X ffecti e Fct. , 6< , section (b)(6)(0)(ii) is amended by striking Hand not less than 9 #er centum,H and inserting H(and which may be 2ero)H (as amended byact of Fct. , 6<</ ( 6< $tat. / )).

Y ffecti e Fct. , 6< , section (b)(+)(1) is remo ed, and sub#aragra#hs (D) and ( ) are redesignated as (1) and (D), res#ecti ely (as amended by act ofFct. , 6<</ ( 6< $tat. / )).
















from, any or all of such national banks in such #ro#ortions as the 1om#troller of the 1urrency may #rescribe. !he e3aminers andassistant e3aminers making the e3aminations of national banking associations and affiliates thereof herein #ro ided for and the chiefe3aminers, re iewing e3aminers and other #ersons whose ser ices may be re uired in connection with such e3aminations or there#orts thereof, shall be em#loyed by the 1om#troller of the 1urrency with the a##ro al of the $ecretary of the !reasury5 theem#loyment and com#ensation of e3aminers, chief e3aminers, re iewing e3aminers, assistant e3aminers, and of the other em#loyeesof the office of the 1om#troller of the 1urrency whose com#ensation is and shall be #aid from assessments on banks or affiliatesthereof or from other fees or charges im#osed #ursuant to this section shall be without regard to the #ro isions of other laws a##licableto officers or em#loyees of the 'nited $tates. !he funds deri ed from such assessment may be de#osited by the 1om#troller of the1urrency in accordance with the #ro isions of section >6 + of the "e ised $tatutes ('.$.1., title 6, sec. 6) and shall not beconstrued to be @o ernment funds or a##ro#riated monies5 and the 1om#troller of the 1urrency is authori2ed and em#owered to#rescribe regulations go erning the com#utation and assessment of the e3#enses of e3aminations herein #ro ided for and thecollection of such assessments from the banks andCor affiliates e3amined. $uch funds shall not be subKect to a##ortionment for the#ur#ose of cha#ter > of title , 'nited $tates 1ode, or under any other authority. 8f any affiliate of a national bank shall refuse to#ermit an e3aminer to make an e3amination of the affiliate or shall refuse to gi e any information re uired in the course of any suche3amination, the national bank with which it is affiliated shall be subKect to a #enalty of not more than G>,<<< for each day that any suchrefusal shall continue. $uch #enalty may be assessed by the 1om#troller of the 1urrency and collected in the same manner ase3#enses of e3aminations. !he 1om#troller of the 1urrency, u#on the re uest of the Board of @o ernors of the 4ederal "eser e$ystem, is authori2ed to assign e3aminers a##ointed under this section to e3amine foreign o#erations of $tate banks which aremembers of the 4ederal "eser e $ystem.

M 6 '$1 +9 5 "e ised $tatutes Z >6+<, \ 6. 0s added by act of ;une /, (+9 $tat. 6)5 and amended by acts of 0ug. 6 , > (+ $tat. :66)5 ;une <,+9 (/6 $tat. / )5 *arch , 9< ( + $tat. 99)5 0ug. <, 9: ( < $tat. / )5 0ug. , 9 ( < $tat. +:<)5 and Dec. , ( <> $tat. 66+9).N

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+. $alaries of 3aminers5 0ssessments to Defray 3#enses=otwithstanding any of the #receding #ro isions of this section or section < (f)( ) of title , 'nited $tates 1ode, to the contrary, the1om#troller of the 1urrency shall fi3 the com#ensation and number of, and a##oint and direct, all em#loyees of the Fffice of the1om#troller of the 1urrency. "ates of basic #ay for all em#loyees of the Fffice may be set and adKusted by the 1om#troller withoutregard to the #ro isions of cha#ter > or subcha#ter 888 of cha#ter > of title >, 'nited $tates 1ode. !he 1om#troller may #ro ideadditional com#ensation and benefits to em#loyees of the Fffice if the same ty#e of com#ensation or benefits are then being #ro idedby any other 4ederal bank regulatory agency or, if not then being #ro ided, could be #ro ided by such an agency under a##licable#ro isions of law, rule, or regulation. 8n setting and adKusting the total amount of com#ensation and benefits for em#loyees of theFffice, the 1om#troller shall consult with, and seek to maintain com#arability with, other 4ederal banking agencies.

!he 1om#troller of the 1urrency may im#ose and collect assessments, fees, or other charges as necessary or a##ro#riate to carry outthe res#onsibilities of the office of the 1om#troller. $uch assessments, fees, and other charges shall be set to meet the 1om#trollerIse3#enses in carrying out authori2ed acti ities.

M 6 '$1 +965 "e ised $tatutes Z >6+<, \\ and +. 0s amended by acts of 0ug. 6 , > (+ $tat. :66)5 0#ril <, >/ (:< $tat. 6+)5 0ug. , 9 ( < $tat>6<)5 Dec. , ( <> $tat. 66+9)5 Fct. 69, 6 ( </ $tat. +<: )5 and $e#t. 6 , + ( <9 $tat. 66 6).N

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>. $#ecial 3aminations by "eser e Banks8n addition to the e3aminations made and conducted by the 1om#troller of the 1urrency, e ery 4ederal reser e bank may, with thea##ro al of the 4ederal reser e agent or the Board of @o ernors of the 4ederal "eser e $ystem, #ro ide for s#ecial e3amination ofmember banks within its district. !he e3#ense of such e3aminations may, in the discretion of the Board of @o ernors of the 4ederal"eser e $ystem, be assessed against the banks e3amined, and, when so assessed, shall be #aid by the banks e3amined. $uche3aminations shall be so conducted as to inform the 4ederal reser e bank of the condition of its member banks and of the lines ofcredit which are being e3tended by them. ery 4ederal reser e bank shall at all times furnish to the Board of @o ernors of the 4ederal"eser e $ystem such information as may be demanded concerning the condition of any member bank within the district of the said

4ederal reser e bank.

M 6 '$1 +9 5 "e ised $tatutes Z >6+<, \ >. 0s amended by act of ;une 6/, < (+/ $tat. 9 +).N

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/. Aisitatorial Powers(a" =o national bank shall be subKect to any isitatorial #owers other than such as are authori2ed by law, or ested in the courts ofKustice or such as shall be or shall ha e been e3ercised or directed by 1ongress, or by either ouse thereof or by any committee of1ongress or of either ouse duly authori2ed.

(b" =otwithstanding subsection (a) of this section, lawfully authori2ed $tate auditors and e3aminers may, at reasonable times and u#onreasonable notice to a bank, re iew its records solely to ensure com#liance with a##licable $tate unclaimed #ro#erty or escheat laws

u#on reasonable cause to belie e that the bank has failed to com#ly with such laws.









M 6 '$1 +9+5 "e ised $tatutes Z >6+<, \ /. 0s amended by acts of Fct. >, 96 ( / $tat. >6 ) and ;an. 6, 9 ( / $tat. 6> <).N

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:. 3aminations of 4ederal "eser e Banks!he Board of @o ernors of the 4ederal "eser e $ystem shall, at least once each year, order an e3amination of each 4ederal reser ebank, and u#on Koint a##lication of ten member banks the Board of @o ernors of the 4ederal "eser e $ystem shall order a s#eciale3amination and re#ort of the condition of any 4ederal reser e bank.

M 6 '$1 +9>5 "e ised $tatutes Z >6+<, \ :. Part of original 4ederal "eser e 0ct5 not amended.N

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9. 3#enses of 3amining !rust De#artments of =ational Banks8n addition to the e3#ense of e3amination to be assessed by the 1om#troller of the 1urrency as heretofore #ro ided, all national bankse3ercising fiduciary #owers and all banks or trust com#anies in the District of 1olumbia e3ercising fiduciary #owers shall be assessedby the 1om#troller of the 1urrency for the e3amination of their fiduciary acti ities a fee ade uate to co er the e3#ense thereof.

M 6 '$1 +96. 0s added by act of ;uly 6, 6 (+: $tat. >/9)5 and amended by act of 0#ril <, >/ (:< $tat. 6+).N

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. Wai er of "e#orts and 3aminations of 0ffiliatesWhene er member banks are re uired to obtain re#orts from affiliates, or whene er affiliates of member banks are re uired to submitto e3amination, the Board of @o ernors of the 4ederal "eser e $ystem or the 1om#troller of the 1urrency, as the case may be, maywai e such re uirements with res#ect to any such re#ort or e3amination of any affiliate if in the Kudgment of the said Board or1om#troller, res#ecti ely, such re#ort or e3amination is not necessary to disclose fully the relations between such affiliate and suchbank and the effect thereof u#on the affairs of such bank.

M 6 '$1 +9/. 0s added by act of 0ug. 6 , > (+ $tat. : >).N

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%ection 11. +ffenses of 3xaminers, ember )anks, +fficers, and Cirectors

. 8nsol ency of *ember Banks

M$ubsections (a), (b), and (c) were re#ealed by section 6 , act of ;une 6>, +9 (/6 $tat. 9/+), but substance thereof was incor#orated in 9 '$1 6 6, 6 , 6 >,/>>, </, and < .N

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Purchases by *ember Banks from !heir Directors(#" 0ny member bank may contract for, or #urchase from, any of its directors or from any firm of which any of its directors is a member,any securities or other #ro#erty, when (and not otherwise) such #urchase is made in the regular course of business u#on terms not lessfa orable to the bank than those offered to others, or when such #urchase is authori2ed by a maKority of the board of directors notinterested in the sale of such securities or #ro#erty, such authority to be e idenced by the affirmati e ote or written assent of suchdirectors7 #ro,i e ) howe,er) !hat when any director, or firm of which any director is a member, acting for or on behalf of others, sellssecurities or other #ro#erty to a member bank, the Board of @o ernors of the 4ederal "eser e $ystem by regulation may, in any or allcases, re uire a full disclosure to be made, on forms to be #rescribed by it, of all commissions or other considerations recei ed, andwhene er such director or firm, acting in his or its own behalf, sells securities or other #ro#erty to the bank the Board of @o ernors ofthe 4ederal "eser e $ystem, by regulation, may re uire a full disclosure of all #rofit reali2ed from such sale.

M 6 '$1 :>. 0s added by act of $e#t. 6/, 9 (+< $tat. : ), which com#letely re ised this section.N

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$ales by *ember Banks to !heir Directors0ny member bank may sell securities or other #ro#erty to any of its directors, or to a firm of which any of its directors is a member, inthe regular course of business on terms not more fa orable to such director or firm than those offered to others, or when such sale isauthori2ed by a maKority of the board of directors of a member bank to be e idenced by their affirmati e ote or written assent7#ro,i e ) howe,er) !hat nothing in this subsection contained shall be construed as authori2ing member banks to #urchase or sellsecurities or other #ro#erty which such banks are not otherwise authori2ed by law to #urchase or sell.

M 6 '$1 :>. 0s added by act of $e#t. 6/, 9 (+< $tat. : ), which com#letely re ised this section.N

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8nterest on De#osits of Directors, Ffficers, and m#loyees(e" =o member bank shall #ay to any director, officer, attorney, or em#loyee a greater rate of interest on the de#osits of such director,officer, attorney, or em#loyee than that #aid to other de#ositors on similar de#osits with such member bank.

M 6 '$1 :/. 0s added by act of ;une 6 , : (+< $tat. 6+<)5 and amended by act of $e#t. 6/, 9 (+< $tat. : ), which com#letely re ised this section.N

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Liability for Damages "esulting from Aiolations(f" 8f the directors or officers of any member bank shall knowingly iolate or #ermit any of the agents, officers, or directors of anymember bank to iolate any of the #ro isions of this section or regulations of the board made under authority thereof, or any of the#ro isions of sections 6 :, 6 9, 6 , 66<, />>, <<>, < +, </, or < of title 9, 'nited $tates 1ode, e ery director and officer#artici#ating in or assenting to such iolation shall be held liable in his #ersonal and indi idual ca#acity for all damages which the

member bank, its shareholders, or any other #ersons shall ha e sustained in conse uence of such iolation.

M 6 '$1 >< . 0s added by act of $e#t. 6/, 9 (+< $tat. : ), which com#letely re ised this section5 amended by act of $e#t. , >+ (/9 $tat. 6 /). $ections6 :, 6 9, 6 , and 66< were res#ecti ely redesignated sections 6 6, 6 , 6 +, and 6 > by the act of Fct. 6 , /6 (:/ $tat. 6>).N

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Loans to 3ecuti e Ffficers by *ember Banks(g"

. 3ce#t as authori2ed under this subsection, no member bank may e3tend credit in any manner to any of its own e3ecuti eofficers. =o e3ecuti e officer of any member bank may become indebted to that member bank e3ce#t by means of ane3tension of credit which the bank is authori2ed to make under this subsection. 0ny e3tension of credit under this subsectionshall be #rom#tly re#orted to the board of directors of the bank, and may be made only if--

0. !he bank would be authori2ed to make it to borrowers other than its officers5B. it is on terms not more fa orable than those afforded other borrowers51. the officer has submitted a detailed current financial statement5 andD. it is on condition that it shall become due and #ayable on demand of the bank at any time when the officer is indebted

to any other bank or banks on account of e3tensions of credit of any one of the three categories res#ecti ely referredto in #aragra#hs (6), ( ), and (+) in an aggregate amount greater than the amount of credit of the same category thatcould be e3tended to him by the bank of which he is an officer.

6. 0 member bank may make a loan to any e3ecuti e officer of the bank if, at the time the loan is made-- 0. it is secured by a first lien on a dwelling which is e3#ected, after the making of the loan, to be owned by the officer and

used by him as his residence, andB. no other loan by the bank to the officer under authority of this #aragra#h is outstanding.

. 0 member bank may make e3tensions of credit to any e3ecuti e officer of the bank, to finance the education of the children ofthe officer.

+. 0 member bank may make e3tensions of credit not otherwise s#ecifically authori2ed under this subsection to any e3ecuti eofficer of the bank, in an amount #rescribed in a regulation of the member bankIs a##ro#riate 4ederal banking agency.

>. 3ce#t to the e3tent #ermitted under #aragra#h (+), a member bank may not e3tend credit to a #artnershi# in which one ormore of its e3ecuti e officers are #artners ha ing either indi idually or together a maKority interest. 4or the #ur#oses of#aragra#h (+), the full amount of any credit so e3tended shall be considered to ha e been e3tended to each officer of the bankwho is a member of the #artnershi#.

/. !his subsection does not #rohibit any e3ecuti e officer of a member bank from endorsing or guaranteeing for the #rotection ofthe bank any loan or other asset #re iously ac uired by the bank in good faith or from incurring any indebtedness to the bankfor the #ur#ose of #rotecting the bank against loss or gi ing financial assistance to it.

:. ach day that any e3tension of credit in iolation of this subsection e3ists is a continuation of the iolation for the #ur#oses ofsection 9 of the 4ederal De#osit 8nsurance 0ct.

9. !he Board of @o ernors of the 4ederal "eser e $ystem may #rescribe such rules and regulations, including definitions ofterms, as it deems necessary to effectuate the #ur#oses and to #re ent e asions of this subsection.









M 6 '$1 :>a. 0s added by act of ;une /, (+9 $tat. 96)5 amended by Public "esolution a##ro ed ;une +, > (+ $tat. :>)5 and by acts of 0ug. 6 ,> (+ $tat. : /)5 0#ril 6>, 9 (>6 $tat. 66 )5 ;une 6<, (> $tat. 9+6)5 ;uly , /: (9 $tat. < )5 =o . <, :9 ( 6 $tat. //>)5 Fct. >, 96 ( /

$tat. >66)5 $e#t. 6 , + ( <9 $tat. 66 )5 and Fct. , 6<</ ( 6< $tat. :9).N

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3tensions of 1redit to 3ecuti e Ffficers, Directors, and Princi#al $hareholders of *ember Banks(h"

. =o member bank may e3tend credit to any of its e3ecuti e officers, directors, or #rinci#al shareholders, or to any relatedinterest of such a #erson, e3ce#t to the e3tent #ermitted under #aragra#hs (6), ( ), (+), and (/).

6.

0. 0 member bank may e3tend credit to its e3ecuti e officers, directors, or #rinci#al shareholders, or to any relatedinterest of such a #erson, only if the e3tension of credit--i. is made on substantially the same terms, including interest rates and collateral, as those #re ailing at the time

for com#arable transactions by the bank with #ersons who are not e3ecuti e officers, directors, #rinci#alshareholders, or em#loyees of the bank5

ii. does not in ol e more than the normal risk of re#ayment or #resent other unfa orable features5 andiii. the bank follows credit underwriting #rocedures that are not less stringent than those a##licable to

com#arable transactions by the bank with #ersons who are not e3ecuti e officers, directors, #rinci#alshareholders, or em#loyees of the bank.

B. =othing in this #aragra#h shall #rohibit any e3tension of credit made #ursuant to a benefit or com#ensation #rogram--i. that is widely a ailable to em#loyees of the member bank5 andii. that does not gi e #reference to any officer, director, or #rinci#al shareholder of the member bank, or to any

related interest of such #erson, o er other em#loyees of the member bank.. 0 member bank may e3tend credit to a #erson described in #aragra#h ( ) in an amount that, when aggregated with the

amount of all other outstanding e3tensions of credit by that bank to each such #erson and that #ersonIs related interests,would e3ceed an amount #rescribed by regulation of the a##ro#riate 4ederal banking agency (as defined in section of the4ederal De#osit 8nsurance 0ct) only if--

0. the e3tension of credit has been a##ro ed in ad ance by a maKority ote of that bankIs entire board of directors5 andB. the interested #arty has abstained from #artici#ating, directly or indirectly, in the deliberations or oting on the

e3tension of credit.+. 0 member bank may e3tend credit to any e3ecuti e officer, director, or #rinci#al shareholder, or to any related interest of such

a #erson, only if the e3tension of credit is in an amount that, when aggregated with the amount of all outstanding e3tensions ofcredit by that bank to that #erson and that #ersonIs related interests, would not e3ceed the limits on loans to a single borrowerestablished by section >6<< of the "e ised $tatutes. 4or #ur#oses of this #aragra#h, section >6<< of the "e ised $tatutesshall be deemed to a##ly to a $tate member bank as if the $tate member bank were a national banking association.

>. 0. 0 member bank may e3tend credit to any e3ecuti e officer, director, or #rinci#al shareholder, or to any related interest

of such a #erson, if the e3tension of credit is in an amount that, when aggregated with the amount of all outstanding

e3tensions of credit by that bank to its e3ecuti e officers, directors, #rinci#al shareholders, and those #ersonsI relatedinterests would not e3ceed the bankIs unim#aired ca#ital and unim#aired sur#lus.B. !he Board may, by regulation, #rescribe a limit that is more stringent than that contained in sub#aragra#h (0).1. !he Board may, by regulation, make e3ce#tions to sub#aragra#h (0) for member banks with less than G <<,<<<,<<<

in de#osits if the Board determines that the e3ce#tions are im#ortant to a oid constricting the a ailability of credit insmall communities or to attract directors to such banks. 8n no case may the aggregate amount of all outstandinge3tensions of credit to a bankIs e3ecuti e officers, directors, #rinci#al shareholders, and those #ersonsI relatedinterests be more than 6 times the bankIs unim#aired ca#ital and unim#aired sur#lus.

/. 0. 8f any e3ecuti e officer or director has an account at the member bank, the bank may not #ay on behalf of that #erson

an amount e3ceeding the funds on de#osit in the account.B. $ub#aragra#h (0) does not #rohibit a member bank from #aying funds in accordance with--

i. a written #reauthori2ed, interest-bearing e3tension of credit s#ecifying a method of re#ayment5 orii. a written #reauthori2ed transfer of funds from another account of the e3ecuti e officer or director at that bank.

:. =o e3ecuti e officer, director, or #rinci#al shareholder shall knowingly recei e (or knowingly #ermit any of that #ersonIs relatedinterests to recei e) from a member bank, directly or indirectly, any e3tension of credit not authori2ed under this subsection.9.

0. 4or #ur#oses of this subsection, any e3ecuti e officer, director, or #rinci#al shareholder (as the case may be) of anycom#any of which the member bank is a subsidiary, or of any other subsidiary of that com#any, shall be deemed to bean e3ecuti e officer, director, or #rinci#al shareholder (as the case may be) of the member bank.

B. !he Board may, by regulation, make e3ce#tions to sub#aragra#h (0) for any e3ecuti e officer or director of asubsidiary of a com#any that controls the member bank if--

i. the e3ecuti e officer or director does not ha e authority to #artici#ate, and does not #artici#ate, in maKor#olicymaking functions of the member bank5 and

ii. the assets of such subsidiary do not e3ceed < #ercent of the consolidated assets of a com#any that controlsthe member bank and such subsidiary (and is not controlled by any other com#any).

. 4or #ur#oses of this subsection7 0.





i% 3ce#t as #ro ided in clause (ii), the term 0company0 means any cor#oration, #artnershi#, business or othertrust, association, Koint enture, #ool syndicate, sole #ro#rietorshi#, unincor#orated organi2ation, or otherbusiness entity.

ii% !he term 0company0 does not include--8. an insured de#ository institution (as defined in section of the 4ederal De#osit 8nsurance 0ct)5 or

88. a cor#oration the maKority of the shares of which are owned by the 'nited $tates or by any $tate.B% 0 #erson contro!s a com#any or bank if that #erson, directly or indirectly, or acting through or in concert with or more

#ersons--i. owns, controls, or has the #ower to ote 6> #ercent or more of any class of the com#anyIs oting securities5ii. controls in any manner the election of a maKority of the com#anyIs directors5 oriii. has the #ower to e3ercise a controlling influence o er the com#anyIs management or #olicies.

C% 0 #erson is an 0e3ecuti,e officer0 of a com#any or bank if that #erson #artici#ates or has authority to #artici#ate (otherthan as a director) in maKor #olicymaking functions of the com#any or bank.

D.i% 0 member bank e3ten s cre it by making or renewing any loan, granting a line of credit, or entering into any

similar transaction as a result of which a #erson becomes obligated (directly or indirectly, or by any meanswhatsoe er) to #ay money or its e ui alent to the bank.

ii. !he Board may, by regulation, make e3ce#tions to clause (i) for transactions that the Board determines #oseminimal risk.

-% !he term 0mem%er %ank0 includes any subsidiary of a member bank.F%!he term 0principa! shareho! er0 --

i. means any #erson that directly or indirectly, or acting through or in concert with one or more #ersons, owns,controls, or has the #ower to ote more than < #ercent of any class of oting securities of a member bank orcom#any5 and

ii. does not include a com#any of which a member bank is a subsidiary..% 0 0re!ate interest0 of a #erson is--

i. any com#any controlled by that #erson5 andii. any #olitical or cam#aign committee that is controlled by that #erson or the funds or ser ices of which will

benefit that #erson.7%!he term 0su%si iary0 has the same meaning as in section 6 of the Bank olding 1om#any 0ct of >/.

. !he Board of @o ernors of the 4ederal "eser e $ystem may #rescribe such regulations, including definitions of terms, as itdetermines to be necessary to effectuate the #ur#oses and #re ent e asions of this subsection.

M 6 '$1 :>b. 0s added by act of =o . <, :9 ( 6 $tat. /++) and amended by acts of Fct. >, 96 ( / $tat. >6<, >66)5 Dec. , ( <>$tat. 6 >>, 6 >9, 6 > )5 Fct. 69, 6 ( </ $tat. 9 >, +<9/)5 $e#t. 6 , + ( <9 $tat. 66 )5 and $e#t. < / ( < $tat. << -+ <).N

M$ubsections (i), (K), and (k) were re#ealed by section 6 , act of ;une 6>, +9 (/6 $tat. 9//). owe er, substance of subsections (h), (i), and (k) wasincor#orated in 9 '$1 6 +, />/, <<>, and < +. $ubsection (K), which #rohibited members of 1ongress from recei ing benefits from any contractsor agreements of any 4ederal "eser e Bank was in effect continued in ti tle 9, section + , which does not include contracts of 4ederal "eser eBanks as e3em#t from the #rohibition of section + against such members ha ing an interest in federal agency contracts.N

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%ection 1=. Interbank 7iabilities M(a" !he #ur#ose of this section is to limit the risks that the failure of a large de#ository institution (whether or not that institution is aninsured de#ository institution) would #ose to insured de#ository institutions.

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0ggregate Limits on 8nsured De#ository 8nstitutionsI 3#osure to Fther De#ository 8nstitutions(b" !he Board shall, by regulation or order, #rescribe standards that ha e the effect of limiting the risks #osed by an insured de#ositoryinstitutionIs e3#osure to any other de#ository institution.

M 6 '$1 : b-6(b). 0s added by act of Dec. , ( <> $tat. 6 /6).N

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H 3#osureH Defined(+"

. 4or #ur#oses of subsection (b), an insured de#ository institutionIs He3#osureH to another de#ository institution means-- 0. all e3tensions of credit to the other de#ository institution, regardless of name or descri#tion, including--

i. all de#osits at the other de#ository institution5ii. all #urchases of securities or other assets from the other de#ository institution subKect to an agreement to

re#urchase5 andiii. all guarantees, acce#tances, or letters of credit (including endorsements or standby letters of credit) on behalf

of the other de#ository institution5B. all #urchases of or in estments in securities issued by the other de#ository institution51. all securities issued by the other de#ository institution acce#ted as collateral for an e3tension of credit to any #erson5

andD. all similar transactions that the Board by regulation determines to be e3#osure for #ur#oses of this section.

6. !he Board may, at its discretion, by regulation or order, e3em#t transactions from the definition of He3#osureH if it finds thee3em#tions to be in the #ublic interest and consistent with the #ur#ose of this section.

. 4or #ur#oses of this section, any transaction by an insured de#ository institution with any #erson is a transaction with anotherde#ository institution to the e3tent that the #roceeds of the transaction are used for the benefit of, or transferred to, that otherde#ository institution.

M 6 '$1 : b-6(c). 0s added by act of Dec. , ( <> $tat. 6 /6.N

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H8nsured De#ository 8nstitutionH Defined(#" 4or #ur#oses of this section, the term Hinsured de#ository institutionH has the same meaning as in section of the 4ederal De#osit8nsurance 0ct.

M 6 '$1 : b-6(d). 0s added by act of Dec. , ( <> $tat. 6 /6).N

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"ulemaking 0uthority5 nforcement(e" !he Board may issue such regulations and orders, including definitions consistent with this section, as may be necessary toadminister and carry out the #ur#ose of this section. !he a##ro#riate 4ederal banking agency shall enforce com#liance with thoseregulations under section 9 of the 4ederal De#osit 8nsurance 0ct.

M 6 '$1 : b-6(e). 0s added by act of Dec. , ( <> $tat. 6 /6).N

!he original section 6 was re#ealed by section : of the act of $e#t. 9, > (: $tat. +>:). !his section 6 is effecti e Dec. , 6.

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%ection 1=!. $elations with !ffiliates

"estrictions on !ransactions with 0ffiliates(a"

. 0 member bank and its subsidiaries may engage in a co ered transaction with an affiliate only if-- 0. in the case of any affiliate, the aggregate amount of co ered transactions of the member bank and its subsidiaries will

not e3ceed < #er centum of the ca#ital stock and sur#lus of the member bank5 andB. in the case of all affiliates, the aggregate amount of co ered transactions of the member bank and its subsidiaries will

not e3ceed 6< #er centum of the ca#ital stock and sur#lus of the member bank.6. 4or the #ur#ose of this section, any transaction by a member bank with any #erson shall be deemed to be a transaction with

an affiliate to the e3tent that the #roceeds of the transaction are used for the benefit of, or transferred to, that affiliate.. a member bank and its subsidiaries may not #urchase a low- uality asset from an affiliate unless the bank or such subsidiary,

#ursuant to an inde#endent credit e aluation, committed itself to #urchase such asset #rior to the time such asset wasac uired by the affiliate.












+. 0ny co ered transactions and any transactions e3em#t under subsection (d) between a member bank and an affiliate shall beon terms and conditions that are consistent with safe and sound banking #ractices.

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Definitions(b" 4or the #ur#ose of this section--

. the term HaffiliateH with res#ect to a member bank means-- 0. any com#any that controls the member bank and any other com#any that is controlled by the com#any that controls

the member bank5B. a bank subsidiary of the member bank51. any com#any--

i. that is controlled directly or indirectly, by a trust or otherwise, by or for the benefit of shareholders whobeneficially or otherwise control, directly or indirectly, by trust or otherwise, the member bank or any com#anythat controls the member bank5 or

ii. in which a maKority of its directors or trustees constitute a maKority of the #ersons holding any such office withthe member bank or any com#any that controls the member bank5

D.i. any com#any, including a real estate in estment trust, that is s#onsored and ad ised on a contractual basis

by the member bank or any subsidiary or affiliate of the member bank5 orii. any in estment com#any with res#ect to which a member bank or any affiliate thereof is an in estment

ad isor as defined in section 6(a)(6<) of the 8n estment 1om#any 0ct of +<5 and. any com#any that the Board determines by regulation or order to ha e a relationshi# with the member bank or any

subsidiary or affiliate of the member bank, such that co ered transactions by the member bank or its subsidiary withthat com#any may be affected by the relationshi# to the detriment of the member bank or its subsidiary5 and

6. !he following shall not be considered to be an affiliate7 0. any com#any, other than a bank, that is a subsidiary of a member bank, unless a determination is made under

#aragra#h ( )( ) not to e3clude such subisidary com#any from the definition of affiliate5B. any com#any engaged solely in holding the #remises of the member bank51. any com#any engaged solely in conducting a safe de#osit business5D. any com#any engaged solely in holding obligations of the 'nited $tates or its agencies or obligations fully guaranteed

by the 'nited $tates or its agencies as to #rinci#al and interest5 and. any com#any where control results from the e3ercise of rights arising out of a bona fide debt #re iously contracted,

but only for the #eriod of time s#ecifically authori2ed under a##licable $tate or 4ederal law or regulation or, in theabsence of such law or regulation, for a #eriod of two years from the date of the e3ercise of such rights or the effecti edate of this 0ct, whiche er date is later, subKect, u#on a##lication, to authori2ation by the Board for good cause shownof e3tensions of time for not more than one year at a time, but such e3tensions in the aggregate shall not e3ceedthree years5

. 0. a com#any or shareholder shall be deemed to ha e control o er another com#any if--

i. such com#any or shareholder, directly or indirectly, or acting through one or more other #ersons owns,controls, or has #ower to ote 6> #er centum or more of any class of oting securities of the other com#any5

ii. such com#any or shareholder controls in any manner the election of a maKority of the directors or trustees ofthe other com#any5 or

iii. the Board determines, after notice and o##ortunity for hearing, that such com#any or shareholder, directly orindirectly, e3ercises a controlling influence o er the management or #olicies of the other com#any5 and

B. notwithstanding any other #ro ision of this section, no com#any shall be deemed to own or control another com#anyby irtue of its ownershi# or control of shares in a fiduciary ca#acity, e3ce#t as #ro ided in #aragra#h ( )(1) of thissubsection or if the com#any owning or controlling such shares is a business trust5

+. the term HsubsidiaryH with res#ect to a s#ecified com#any means a com#any that is controlled by such s#ecified com#any5>. the term HbankH includes a $tate bank, national bank, banking association, and trust com#any5/. the term Hcom#anyH means a cor#oration, #artnershi#, business trust, association, or similar organi2ation and, unless

s#ecifically e3cluded, the term Hcom#anyH includes a Hmember bankH and a HbankH5:. the term Hco ered transactionH means with res#ect to an affiliate of a member bank--

0. a loan or e3tension of credit to the affiliate5B. a #urchase of or an in estment in securities issued by the affiliate51. a #urchase of assets, including assets subKect to an agreement to re#urchase, from the affiliate, e3ce#t such #urchase

of real and #ersonal #ro#erty as may be s#ecifically e3em#ted by the Board by order or regulation5D. the acce#tance of securities issued by the affiliate as collateral security for a loan or e3tension of credit to any #erson

or com#any5 or. the issuance of a guarantee, acce#tance, or letter of credit, including an endorsement or standby letter of credit, on

behalf of an affiliate59. the term Haggregate amount of co ered transactionsH means the amount of the co ered transactions about to be engaged in

added to the current amount of all outstanding co ered transactions5. the term HsecuritiesH means stocks, bonds, debentures, notes, or other similar obligations5 and<. the term Hlow- uality assetH means an asset that falls in any one or more of the following categories7

0. an asset classified as HsubstandardH, HdoubtfulH, or HlossH or treated as Hother loans es#ecially mentionedH in the most

recent re#ort of e3amination or ins#ection of an affiliate #re#ared by either a 4ederal or $tate su#er isory agency5





B. an asset in a nonaccrual status51. an asset on which #rinci#al or interest #ayments are more than thirty days #ast due5 orD. an asset whose terms ha e been renegotiated or com#romised due to the deteriorating financial condition of the

obligor.. 8n addition to #aragra#h ( ), a com#any or shareholder shall be #resumed to control any other com#any if the com#any or

shareholder, directly or indirectly, or acting through or more other #ersons, owns or controls > #ercent or more of the e uityca#ital of the other com#any #ursuant to sub#aragra#h ( ) or (8) of section +(k)(+) of the Bank olding 1om#any 0ct of >/or rules ado#ted under section 66 of the @ramm-Leach-Bliley 0ct, if any, unless the com#any or shareholder #ro idesinformation acce#table to the Board to rebut this #resum#tion of control.

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1ollateral for 1ertain !ransactions with 0ffiliates(+"

. ach loan or e3tension of credit to, or guarantee, acce#tance, or letter of credit issued on behalf of, an affiliate by a memberbank or its subsidiary shall be secured at the time of the transaction by collateral ha ing a market alue e ual to-

0. << #er centum of the amount of such loan or e3tension of credit, guarantee, acce#tance, or letter of credit, if thecollateral is com#osed of--

i. obligations of the 'nited $tates or its agencies5ii. obligations fully guaranteed by the 'nited $tates or its agencies as to #rinci#al and interest5iii. notes, drafts, bills of e3change or bankersI acce#tances that are eligible for rediscount or #urchase by a

4ederal "eser e Bank5 ori . a segregated, earmarked de#osit account with the member bank5

B. < #er centum of the amount of such loan or e3tension of credit, guarantee, acce#tance, or letter of credit if thecollateral is com#osed of obligations of any $tate or #olitical subdi ision of any $tate5

1. 6< #er centum of the amount of such loan or e3tension of credit, guarantee, acce#tance, or letter of credit if thecollateral is com#osed of other debt instruments, including recei ables5 or

D. < #er centum of the amount of such loan or e3tension of credit, guarantee, acce#tance, or letter of credit if thecollateral is com#osed of stock, leases, or other real or #ersonal #ro#erty.

6. 0ny such collateral that is subse uently retired or amorti2ed shall be re#laced by additional eligible collateral where needed tokee# the #ercentage of the collateral alue relati e to the amount of the outstanding loan or e3tension of credit, guarantee,acce#tance, or letter of credit e ual to the minimum #ercentage re uired at the ince#tion of the transaction.

. 0 low- uality asset shall not be acce#table as collateral for a loan or e3tension of credit to, or guarantee, acce#tance, or letterof credit issued on behalf of, an affiliate.

+. !he securities issued by an affiliate of the member bank shall not be acce#table as collateral for a loan or e3tension of creditto, or guarantee, acce#tance, or letter of credit issued on behalf of, that affiliate or any other affiliate of the member bank.

>. !he collateral re uirements of this #aragra#h shall not be a##licable to an acce#tance that is already fully secured either byattached documents or by other #ro#erty ha ing an ascertainable market alue that is in ol ed in the transaction.

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3em#tions(#" !he #ro isions of this section, e3ce#t #aragra#h (a)(+), shall not be a##licable to--

. any transaction, subKect to the #rohibition contained in subsection (a)( ), with a bank-- 0. which controls 9< #er centum or more of the oting shares of the member bank5B. in which the member bank controls 9< #er centum or more of the oting shares5 or1. in which 9< #er centum or more of the oting shares are controlled by the com#any that controls 9< #er centum or

more of the oting shares of the member bank56. making de#osits in an affiliated bank or affiliated foreign bank in the ordinary course of corres#ondent business, subKect to any

restrictions that the Board may #rescribe by regulation or order5. gi ing immediate credit to an affiliate for uncollected items recei ed in the ordinary course of business5

+. making a loan or e3tension of credit to, or issuing a guarantee, acce#tance, or letter of credit on behalf of, an affiliate that is

fully secured by-- 0. obligations of the 'nited $tates or its agencies5B. obligations fully guaranteed by the 'nited $tates or its agencies as to #rinci#al and interest5 or1. a segregated, earmarked de#osit account with the member bank5

>. #urchasing securities issued by any com#any of the kinds described in section +(c)( ) of the Bank olding 1om#any 0ct of>/5

/. #urchasing assets ha ing a readily identifiable and #ublicly a ailable market uotation and #urchased at that market uotationor, subKect to the #rohibition contained in subsection (a)( ), #urchasing loans on a nonrecourse basis from affiliated banks5 and

:. #urchasing from an affiliate a loan or e3tension of credit that was originated by the member bank and sold to the affiliatesubKect to a re#urchase agreement or with recourse.

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(e" "ules relating to banks with financial subsidiaries.









. 4or #ur#oses of this section and section 6 B, the term Hfinancial subsidiaryH means any com#any that is a subsidiary of a bankthat would be a financial subsidiary of a national bank under section > /0 of the "e ised $tatutes of the 'nited $tates.

6. 4or #ur#oses of a##lying this section and section 6 B, and notwithstanding subsection (b)(6) of this section or section 6 B(d)( ), a financial subsidiary of a bank--

0. shall be deemed to be an affiliate of the bank5 andB. shall not be deemed to be a subsidiary of the bank.

. 0. =otwithstanding #aragra#h (6), the restriction contained in subsection (a)( )(0) shall not a##ly with res#ect to co ered

transactions between a bank and any indi idual financial subsidiary of the bank.B. =otwithstanding #aragra#h (6) or subsection (b)(:), a bankIs in estment in a financial subsidiary of the bank shall not

include retained earnings of the financial subsidiary.+. 4or #ur#oses of this section and section 6 B--

0. any #urchase of, or in estment in, the securities of a financial subsidiary of a bank by an affiliate of the bank shall beconsidered to be a #urchase of or in estment in such securities by the bank5 and

B. any e3tension of credit by an affiliate of a bank to a financial subsidiary of the bank shall be considered to be ane3tension of credit by the bank to the financial subsidiary if the Board determines that such treatment is necessary ora##ro#riate to #re ent e asions of this 0ct and the @ramm-Leach-Bliley 0ct.

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"ulemaking and 0dditional 3em#tions(f"

. !he Board may issue such further regulations and orders, including definitions consistent with this section, as may benecessary to administer and carry out the #ur#oses of this section and to #re ent e asions thereof.

6. !he Board may, at its discretion, by regulation or order e3em#t transactions or relationshi#s from the re uirements of thissection if it finds such e3em#tions to be in the #ublic interest and consistent with the #ur#oses of this section.

. 0. =ot later than 9 months after the date of the enactment of the @ramm-Leach-Bliley 0ct, the Board shall ado#t final

rules under this section to address as co ered transactions credit e3#osure arising out of deri ati e transactionsbetween member banks and their affiliates and intraday e3tensions of credit by member banks to their affiliates.

B. !he effecti e date of any final rule ado#ted by the Board #ursuant to sub#aragra#h (0) shall be delayed for such#eriod as the Board deems necessary or a##ro#riate to #ermit banks to conform their acti ities to the re uirements ofthe final rule without undue hardshi#.

M 6 '$1 : c. 0s added by act of ;une /, (+9 $tat. 9 ) and amended by acts of 0ug. 6 , > (+ $tat. : :)5 ;une <, >+ (/9$tat. >9)5 $e#t. 9, > (: $tat. +>:)5 ;uly , // (9< $tat. 6+ , 6+ )5 Fct. >, 96 ( / $tat. > >)5 ;an. 6, 9 ( / $tat. 6>< )5 and=o . 6, ( $tat. :9, : , 9<). $ection + < of the @arn-$t @ermain De#ository 8nstitutions 0ct of 96, which com#letelyre ised this section, #ro ides in #aragra#h (c) ( 6 '$1 : c note) the following7

(c) $ection 6 0 of the 4ederal "eser e 0ct, as amended by this section, shall a##ly to any transaction entered into after the date ofenactment of this 0ct MFctober >, 96N, e3ce#t for transactions which are the subKect of a binding written contract or commitment enteredinto on or before ;uly 69, 96, and e3ce#t that any renewal of a #artici#ation in a loan outstanding on ;uly 69, 96, to a com#any thatbecomes an affiliate as a result of the enactment of this 0ct, or any #artici#ation in a loan to such an affiliate emanating from the renewal ofa binding written contract or commitment outstanding on ;uly 69, 96, shall not be subKect to the collateral re uirements of this 0ct.N

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%ection 1=). $estrictions on Transactions with !ffiliates(a"

. 0 member bank and its subsidiaries may engage in any of the transactions described in #aragra#h (6) only-- 0. on terms and under circumstances, including credit standards, that are substantially the same, or at least as fa orable

to such bank or its subsidiary, as those #re ailing at the time for com#arable transactions with or in ol ing othernonaffiliated com#anies, or

B. in the absence of com#arable transactions, on terms and under circumstances, including credit standards, that ingood faith would be offered to, or would a##ly to, nonaffiliated com#anies.

6. Paragra#h ( ) a##lies to the following7 0. 0ny co ered transaction with an affiliate.

B. !he sale of securities or other assets to an affiliate, including assets subKect to an agreement to re#urchase.







1. !he #ayment of money or the furnishing of ser ices to an affiliate under contract, lease, or otherwise.D. 0ny transaction in which an affiliate acts as an agent or broker or recei es a fee for its ser ices to the bank or to any

other #erson.. 0ny transaction or series of transactions with a third #arty--

i. if an affiliate has a financial interest in the third #arty, orii. if an affiliate is a #artici#ant in such transaction or series of transactions.

. 4or the #ur#ose of this subsection, any transaction by a member bank or its subsidiary with any #erson shall be deemed to bea transaction with an affiliate of such bank if any of the #roceeds of the transaction are used for the benefit of, or transferred to,such affiliate.

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Prohibited !ransactions(b"

. 0 member bank or its subsidiary-- 0. shall not #urchase as fiduciary any securities or other assets from any affiliate unless such #urchase is #ermitted--

i. under the instrument creating the fiduciary relationshi#,ii. by court order, oriii. by law of the Kurisdiction go erning the fiduciary relationshi#5 and

B. whether acting as #rinci#al or fiduciary, shall not knowingly #urchase or otherwise ac uire, during the e3istence of anyunderwriting or selling syndicate, any security if a #rinci#al underwriter of that security is an affiliate of such bank.

6. $ub#aragra#h (B) of #aragra#h ( ) shall not a##ly if the #urchase or ac uisition of such securities has been a##ro ed, beforesuch securities are initially offered for sale to the #ublic, by a maKority of the directors of the bank based on a determinationthat the #urchase is a sound in estment for the bank irres#ecti e of the fact that an affiliate of the bank is a #rinci#alunderwriter of the securities.

. 4or the #ur#ose of this subsection-- 0. the term HsecurityH has the meaning gi en to such term in section (a)( <) of the $ecurities 3change 0ct of +5

andB. the term H#rinci#al underwriterH means any underwriter who, in connection with a #rimary distribution of securities--

i. is in #ri ity of contract with the issuer or an affiliated #erson of the issuer5ii. acting alone or in concert with one or more other #ersons, initiates or directs the formation of an underwriting

syndicate5 oriii. is allowed a rate of gross commission, s#read, or other #rofit greater than the rate allowed another

underwriter #artici#ating in the distribution.

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0d ertising "estriction

(+" 0 member bank or any subsidiary or affiliate of a member bank shall not #ublish any ad ertisement or enter into any agreementstating or suggesting that the bank shall in any way be res#onsible for the obligations of its affiliates.

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Definitions(#" 4or the #ur#ose of this section--

. the term HaffiliateH has the meaning gi en to such term in section 6 0 (but does not include any com#any described in section(b)(6) of such section or any bank)5

6. the terms HbankH, HsubsidiaryH, H#ersonH, and HsecurityH (other than security as used in subsection (b)) ha e the meanings gi ento such terms in section 6 05 and

. the term Hco ered transactionH has the meaning gi en to such term in section 6 0 (but does not include any transaction whichis e3em#t from such definition under subsection (d) of such section).

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"egulations(e" !he Board may #rescribe regulations to administer and carry out the #ur#oses of this section, including--

. regulations to further define terms used in this section5 and6. regulations to--

0. e3em#t transactions or relationshi#s from the re uirements of this section5 andB. e3clude any subsidiary of a bank holding com#any from the definition of affiliate for #ur#oses of this section,

if the Board finds such e3em#tions or e3clusions are in the #ublic interest and are consistent with the #ur#oses of this section.

M 6 '$1 : c- . 0s added by act of 0ug. <, 9: ( < $tat. >/+) and amended by act of =o . 6, ( $tat. +9<)N.











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%ection 18!. Investment in )ank 2remises or %tock of (orporation :olding 2remises(a" Con#itions of in4estment. =o national bank or $tate member bank shall in est in bank #remises, or in the stock, bonds,debentures, or other such obligations of any cor#oration holding the #remises of such bank, or make loans to or u#on the security ofany such cor#oration--

. unless the bank recei es the #rior a##ro al of the 1om#troller of the 1urrency (with res#ect to a national bank) or the Board(with res#ect to a $tate member bank)5

6. unless the aggregate of all such in estments and loans, together with the amount of any indebtedness incurred by any suchcor#oration that is an affiliate of the bank, is less than or e ual to the amount of the ca#ital stock of such bank5 or

. unless-- 0. the aggregate of all such in estments and loans, together with the amount of any indebtedness incurred by any such

cor#oration that is an affiliate of the bank, is less than or e ual to >< #ercent of the ca#ital and sur#lus of the bank5and

B. the bank--i. has a 10* L com#osite rating of or 6 under the 'niform 4inancial 8nstitutions "ating $ystem (or an

e ui alent rating under a com#arable rating system) as of the most recent e3amination of such bank5ii. is well ca#itali2ed and will continue to be well ca#itali2ed after the in estment or loan5 andiii. #ro ides notification to the 1om#troller of the 1urrency (with res#ect to a national bank) or to the Board (with

res#ect to a $tate member bank) not later than < days after making the in estment or loan.

(b" <efinitions. For purposes of this se+tion00

. the term HaffiliateH has the same meaning as in section 6 of the Banking 0ct of 5 andthe term Hwell ca#itali2edH has thesame meaning as in section 9(b) of the 4ederal De#osit 8nsurance 0ct.

M 6 '$1 : d. 0s added by act of ;une /, (+9 $tat. 9 )5 amended by acts of ;une <, >+ (/9 $tat. >9) and $e#t. <, / ( < $tat. << -+<>).N

%ection 1K. #oreign )ranches

. 1a#ital and $ur#lus "e uired to 3ercise Powers0ny national banking association #ossessing a ca#ital and sur#lus of G ,<<<,<<< or more may file a##lication with the Board of@o ernors of the 4ederal "eser e $ystem for #ermission to e3ercise, u#on such conditions and under such regulations as may be#rescribed by the said board, the following #owers7

M 6 '$1 /< . 0s amended by act of $e#t. :, / ( $tat. :>>), which com#letely re ised this section, and by act of ;uly , // (9< $tat. 6+ ).N

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6. stablishment of 4oreign Branches4irst. !o establish branches in foreign countries or de#endencies or insular #ossessions of the 'nited $tates for the furtherance of theforeign commerce of the 'nited $tates, and to act if re uired to do so as fiscal agents of the 'nited $tates.

M 6 '$1 /< . 0s amended by act of $e#t. :, / ( $tat. :>>), which com#letely re ised this section.N

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. Purchase of $tock in 1or#orations ngaged in 4oreign Banking$econd. !o in est an amount not e3ceeding in the aggregate ten #er centum of its #aid-in ca#ital stock and sur#lus in the stock of oneor more banks or cor#orations chartered or incor#orated under the laws of the 'nited $tates or of any $tate thereof, and #rinci#allyengaged in international or foreign banking, or banking in a de#endency or insular #ossession of the 'nited $tates either directly orthrough the agency, ownershi#, or control of local institutions in foreign countries, or in such de#endencies or insular #ossessions.

M 6 '$1 /< . 0s added by act of $e#t. :, / ( $tat. :>>), which com#letely re ised this section.N

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+. 0c uisition of Fwnershi# of 4oreign Banks!hird. !o ac uire and hold, directly or indirectly, stock or other e idences of ownershi# in one or more banks organi2ed under the law ofa foreign country or a de#endency or insular #ossession of the 'nited $tates and not engaged, directly or indirectly, in any acti ity in

the 'nited $tates e3ce#t as, in the Kudgment of the Board of @o ernors of the 4ederal "eser e $ystem, shall be incidental to the













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%ection 1K!. )anking (orporations !uthori'ed to Co #oreign )anking )usiness M

. Frgani2ation1or#orations to be organi2ed for the #ur#ose of engaging in international or foreign banking or other international or foreign financialo#erations, or in banking or other financial o#erations in a de#endency or insular #ossession of the 'nited $tates, either directly orthrough the agency, ownershi#, or control of local institutions in foreign countries, or in such de#endencies or insular #ossessions as#ro ided by this section, and to act when re uired by the $ecretary of the !reasury as fiscal agents of the 'nited $tates, may beformed by any number of natural #ersons, not less in any case than fi e7 #ro,i e , !hat nothing in this section shall be construed todeny the right of the $ecretary of the !reasury to use any cor#oration organi2ed under this section as de#ositaries in Panama and thePanama 1anal Rone, or in the Phili##ine 8slands and other insular #ossessions and de#endencies of the 'nited $tates.

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6. Pur#ose!he congress hereby declares that it is the #ur#ose of this section to #ro ide for the establishment of international banking andfinancial cor#orations o#erating under 4ederal su#er ision with #owers sufficiently broad to enable them to com#ete effecti ely withsimilar foreign-owned institutions in the 'nited $tates and abroad5 to afford to the 'nited $tates e3#orter and im#orter in #articular, andto 'nited $tates commerce, industry, and agriculture in general, at all times a means of financing international trade, es#ecially 'nited$tates e3#orts5 to foster the #artici#ation by regional and smaller banks throughout the 'nited $tates in the #ro ision of internationalbanking and financing ser ices to all segments of 'nited $tates agriculture, commerce, and industry, and, in #articular small business

and farming concerns5 to stimulate com#etition in the #ro ision of international banking and financing ser ices, throughout the 'nited$tates5 and, in conKunction with each of the #receding #ur#oses, to facilitate and stimulate the e3#ort of 'nited $tates goods, wares,merchandise, commodities, and ser ices to achie e a sound 'nited $tates international trade #osition. !he Board of @o ernors of the4ederal "eser e $ystem shall issue rules and regulations under this section consistent with and in furtherance of the #ur#osesdescribed in the #receding sentence, and, in accordance therewith, shall re iew and re ise any such rules and regulations at least oncee ery fi e years, the first such #eriod commencing with the effecti e date of rules and regulations issued #ursuant to section (a) of the8nternational Banking 0ct of :9, in order to ensure that such #ur#oses are being ser ed in light of #re ailing economic conditions andbanking #ractices.

M 6 '$1 / . 0s added by act of Dec. 6+, (+ $tat. :9)5 and amended by act of 4eb. 6:, 6 (+ $tat. +>) and $e#t. :, :9 ( 6 $tat. /< ).Presidential Proclamation =o. 6/ > of ;uly +, +/ (/< $tat. >65 6 '$1 + note) recogni2es the inde#endence of the Phili##ine 8slands. !herefore, thewords Hin the Phili##ine 8slands andH ha e been omitted from the '.$. 1ode.N

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. 0rticles of 0ssociation$uch #ersons shall enter into articles of association which shall s#ecify in general terms the obKects for which the association is formedand may contain any other #ro isions not inconsistent with law which the association may see fit to ado#t for the regulation of itsbusiness and the conduct of its affairs.

M 6 '$1 / 6. 0s added by act of Dec. 6+, (+ $tat. :9).N

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+. 3ecution of 0rticles of 0ssociation5 1ontents of Frgani2ation 1ertificate$uch articles of association shall be signed by all of the #ersons intending to #artici#ate in the organi2ation of the cor#oration and,thereafter, shall be forwarded to the Board of @o ernors of the 4ederal "eser e $ystem and shall be filed and #reser ed in its office.

!he #ersons signing the said articles of association shall, under their hands, make an organi2ation certificate which shall s#ecificallystate7

First. !he name assumed by such cor#oration, which shall be subKect to the a##ro al of the Board of @o ernors of the 4ederal"eser e $ystem.

e+on#. !he #lace or #laces where its o#erations are to be carried on.

$hir#. !he #lace in the 'nited $tates where its home office is to be located.

Fourth. !he amount of its ca#ital stock and the number of shares into which the same shall be di ided.













Fifth. !he names and #laces of business or residence of the #ersons e3ecuting the certificate and the number of shares to which eachhas subscribed.

ixth. !he fact that the certificate is made to enable the #ersons subscribing the same, and all other #ersons, firms, com#anies, andcor#orations, who or which may thereafter subscribe to or #urchase shares of the ca#ital stock of such cor#oration, to a ail themsel esof the ad antages of this section.

M 6 '$1 / . 0s added by act of Dec. 6+, (+ $tat. : ).N

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>. 4iling Frgani2ation 1ertificate5 8ssuance of Permit!he #ersons signing the organi2ation certificate shall duly acknowledge the e3ecution thereof before a Kudge of some court of record ornotary #ublic, who shall certify thereto under the seal of such court or notary, and thereafter the certificate shall be forwarded to theBoard of @o ernors of the 4ederal "eser e $ystem to be filed and #reser ed in its office. '#on duly making and filing articles ofassociation and an organi2ation certificate, and after the Board of @o ernors of the 4ederal "eser e $ystem has a##ro ed the sameand issued a #ermit to begin business, the association shall become and be a body cor#orate, and as such and in the namedesignated therein shall ha e #ower to ado#t and use a cor#orate seal, which may be changed at the #leasure of its board of directors5to ha e succession for a #eriod of twenty years unless sooner dissol ed by the act of the shareholders owning two-thirds of the stock orby an 0ct of 1ongress or unless its franchises become forfeited by some iolation of law5 to make contracts5 to sue and be sued,com#lain, and defend in any court of law or e uity5 to elect or a##oint directors5 and, by its board of directors, to a##oint such officersand em#loyees as may be deemed #ro#er, define their authority and duties, re uire bonds of them, and fi3 the #enalty thereof, dismisssuch officers or em#loyees, or any thereof, at #leasure and a##oint others to fill their #laces5 to #rescribe, by its board of directors, by-laws not inconsistent with law or with the regulations of the Board of @o ernors of the 4ederal "eser e $ystem regulating the mannerin which its stock shall be transferred, its directors elected or a##ointed, its officers and em#loyees a##ointed, its #ro#erty transferred,and the #ri ileges granted to it by law e3ercised and enKoyed.

M 6 '$1 / +. 0s added by act of Dec. 6+, (+ $tat. : ) and $e#t. :, :9 ( 6 $tat. /< ).N

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/. Powers5 "egulations of Board of @o ernors of the 4ederal "eser e $ystemach cor#oration so organi2ed shall ha e #ower, under such rules and regulations as the Board of @o ernors of the 4ederal "eser e

$ystem may #rescribe7

M 6 '$1 / >. 0s added by act of Dec. 6+, (+ $tat. : ) and amended by act of $e#t. :, :9 ( 6 $tat. /< ).N

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Banking Powers(a" !o #urchase, sell, discount, and negotiate, with or without its indorsement or guaranty, notes, drafts, checks, bills of e3change,acce#tances, including bankersI acce#tances, cable transfers, and other e idences of indebtedness5 to #urchase and sell, with orwithout its indorsement or guaranty, securities, including the obligations of the 'nited $tates or of any $tate thereof but not includingshares of stock in any cor#oration e3ce#t as herein #ro ided5 to acce#t bills or drafts drawn u#on it subKect to such limitations andrestrictions as the Board of @o ernors of the 4ederal "eser e $ystem may im#ose5 to issue letters of credit5 to #urchase and sell coin,bullion, and e3change5 to borrow and to lend money5 to issue debentures, bonds, and #romissory notes under such general conditionsas to security and such limitations as the Board of @o ernors of the 4ederal "eser e $ystem may #rescribe5 to recei e de#ositsoutside of the 'nited $tates and to recei e only such de#osits within the 'nited $tates as may be incidental to or for the #ur#ose ofcarrying out transactions in foreign countries or de#endencies or insular #ossessions of the 'nited $tates5 and generally to e3ercisesuch #owers as are incidental to the #owers conferred by this 0ct or as may be usual, in the determination of the Board of @o ernors ofthe 4ederal "eser e $ystem, in connection with the transaction of the business of banking or other financial o#erations in the countries,

colonies, de#endencies, or #ossessions in which it shall transact business and not inconsistent with the #owers s#ecifically grantedherein. =othing contained in this section shall be construed to #rohibit the Board of @o ernors of the 4ederal "eser e $ystem, underits #ower to #rescribe rules and regulations, from limiting the aggregate amount of liabilities of any or all classes incurred by thecor#oration and outstanding at any one time. Whene er a cor#oration organi2ed under this section recei es de#osits in the 'nited$tates authori2ed by this section it shall carry reser es in such amounts as the Board of @o ernors of the 4ederal "eser e $ystemmay #rescribe for member banks of the 4ederal "eser e $ystem.

M 6 '$1 / >(a). 0s added by act of Dec. 6+, (+ $tat. : )5 and amended by act of $e#t. :, :9 ( 6 $tat. /< ).N

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Branches(b" !o establish and maintain for the transaction of its business branches or agencies in foreign countries, their de#endencies orcolonies, and in the de#endencies or insular #ossessions of the 'nited $tates, at such #laces as may be a##ro ed by the Board of











@o ernors of the 4ederal "eser e $ystem and under such rules and regulations as it may #rescribe, including countries orde#endencies not s#ecified in the original organi2ation certificate.

M 6 '$1 / >(b). 0s added by act of Dec. 6+, (+ $tat. : ).N

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Fwnershi# of $tock in Fther 1or#orations(+" With the consent of the Board of @o ernors of the 4ederal "eser e $ystem to #urchase and hold stock or other certificates ofownershi# in any other cor#oration organi2ed under the #ro isions of this section, or under the laws of any foreign country or a colonyor de#endency thereof, or under the laws of any $tate, de#endency, or insular #ossession of the 'nited $tates but not engaged in thegeneral business of buying or selling goods, wares, merchandise or commodities in the 'nited $tates, and not transacting anybusiness in the 'nited $tates e3ce#t such as in the Kudgment of the Board of @o ernors of the 4ederal "eser e $ystem may beincidental to its international or foreign business7 #ro,i e ) howe,er) !hat, e3ce#t with the a##ro al of the Board of @o ernors of the4ederal "eser e $ystem, no cor#oration organi2ed hereunder shall in est in any one cor#oration an amount in e3cess of < #ercentum of its own ca#ital and sur#lus, e3ce#t in a cor#oration engaged in the business of banking, when > #er centum of its ca#italand sur#lus may be so in ested7 Pro ided further, !hat no cor#oration organi2ed hereunder shall #urchase, own, or hold stock orcertificates of ownershi# in any other cor#oration organi2ed hereunder or under the laws of any $tate which is in substantialcom#etition therewith, or which holds stock or certificates of ownershi# in cor#orations which are in substantial com#etition with the#urchasing cor#oration.

M 6 '$1 / >(c). 0s added by act of Dec. 6+, (+ $tat. 9<).N

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:. Purchase of $tock to Pre ent Loss on Debt Pre iously 1ontracted=othing contained herein shall #re ent cor#orations organi2ed hereunder from #urchasing and holding stock in any cor#oration wheresuch #urchase shall be necessary to #re ent a loss u#on a debt #re iously contracted in good faith5 and stock so #urchased orac uired in cor#orations organi2ed under this section shall within si3 months from such #urchase be sold or dis#osed of at #ublic or#ri ate sale unless the time to so dis#ose of same is e3tended by the Board of @o ernors of the 4ederal "eser e $ystem.

M 6 '$1 / >(c). 0s added by act of Dec. 6+, (+ $tat. 9<).N

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9. "estrictions on Business in 'nited $tates=o cor#oration organi2ed under this section shall carry on any #art of its business in the 'nited $tates e3ce#t such as, in the Kudgment

of the Board of @o ernors of the 4ederal "eser e $ystem, shall be incidental to its international or foreign business7 An pro,i efurther , !hat e3ce#t such as is incidental and #reliminary to its organi2ation no such cor#oration shall e3ercise any of the #owersconferred by this section until it has been duly authori2ed by the Board of @o ernors of the 4ederal "eser e $ystem to commencebusiness as a cor#oration organi2ed under the #ro isions of this section.

M 6 '$1 / /. 0s added by act of Dec. 6+, (+ $tat. 9 ).N

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. 1or#oration !rading in 1ommodities or 0ttem#ting to 1ontrol Prices=o cor#oration organi2ed under this section shall engage in commerce or trade in commodities e3ce#t as s#ecifically #ro ided in thissection, nor shall it either directly or indirectly control or fi3 or attem#t to control or fi3 the #rice of an such commodities. !he charter ofany cor#oration iolating this #ro ision shall be subKect to forfeiture in the manner hereinafter #ro ided in this section. 8t shall beunlawful for any director, officer, agent, or em#loyee of any such cor#oration to use or to cons#ire to use the credit5 the funds, or the#ower of the cor#oration to fi3 or control the #rice of any such commodities, and any such #erson iolating this #ro ision shall be liableto a fine of not less than G ,<<< and not e3ceeding G>,<<< or im#risonment not less than one year and not e3ceeding fi e years, orboth, in the discretion of the court.

M 6 '$1 / :. 0s added by act of Dec. 6+, (+ $tat. 9 ).N

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<. 1a#ital $tock=o cor#oration shall be organi2ed under the #ro isions of this section with a ca#ital stock of less than G6,<<<,<<<, one- uarter of whichmust be #aid in before the cor#oration may be authori2ed to begin business, and the remainder of the ca#ital stock of such cor#orationshall be #aid in installments of at least < #er centum on the whole amount to which the cor#oration shall be limited as fre uently asone installment at the end of each succeeding two months from the time of the commencement of its business o#erations until the

whole of the ca#ital stock shall be #aid in7 #ro,i e ) howe,er) !hat whene er G6,<<<,<<< of the ca#ital stock of any cor#oration is #aid













in the remainder of the cor#orationIs ca#ital stock or any un#aid #art of such remainder may, with the consent of the Board of@o ernors of the 4ederal "eser e $ystem and subKect to such regulations and conditions as it may #rescribe, be #aid in u#on call fromthe board of directors5 such un#aid subscri#tions, howe er, to be included in the ma3imum of < #er centum of the national bankIsca#ital and sur#lus which a national bank is #ermitted under the #ro isions of this 0ct to hold in stock of cor#orations engaged inbusiness of the kind described in this section and in section 6> of the 4ederal "eser e 0ct as amended. !he ca#ital stock of any suchcor#oration may be increased at any time, with the a##ro al of the Board of @o ernors of the 4ederal "eser e $ystem, by a ote oftwo-thirds of its shareholders or by unanimous consent in writing of the shareholders without a meeting and without a formal ote, butany such increase of ca#ital shall be fully #aid in within ninety days after such a##ro al5 and may be reduced in like manner, #ro idedthat in no e ent shall it be less than G6,<<<,<<<. =o cor#oration, e3ce#t as herein #ro ided, shall during the time it shall continue itso#erations, withdraw or #ermit to be withdrawn, either in the form of di idends or otherwise, any #ortion of its ca#ital. 0ny national bankmay in est in the stock of any cor#oration organi2ed under this section. !he aggregate amount of stock held by any national bank in allcor#orations engaged in business of the kind described in this section or section 6> shall not e3ceed an amount e ual to < #ercent ofthe ca#ital and sur#lus of such bank unless the Board determines that the in estment of an additional amount by the bank would not beunsafe or unsound and, in any case, shall not e3ceed an amount e ual to 6< #ercent of the ca#ital and sur#lus of such bank.

M 6 '$1 / 9. 0s added by act of Dec. 6+, (+ $tat. 9 )5 and amended by acts of ;une +, 6 (+6 $tat. 69) and $e#t. <, / ( < $tat. << -+6/).N

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. 1iti2enshi# of $tockholders3ce#t as otherwise #ro ided in this section, a maKority of the shares of the ca#ital stock of any such cor#oration shall at all times be

held and owned by citi2ens of the 'nited $tates, by cor#orations the controlling interest in which is owned by citi2ens of the 'nited$tates, chartered under the laws of the 'nited $tates or of a $tate of the 'nited $tates, or by firms or com#anies, the controllinginterest in which is owned by citi2ens of the 'nited $tates. =otwithstanding any other #ro isions of this section, one or more foreignbanks, institutions organi2ed under the laws of foreign countries which own or control foreign banks, or banks organi2ed under the lawsof the 'nited $tates, the $tates of the 'nited $tates, or the District of 1olumbia, the controlling interests in which are owned by anysuch foreign banks or institutions, may, with the #rior a##ro al of the Board of @o ernors of the 4ederal "eser e $ystem and u#onsuch terms and conditions and subKect to such rules and regulations as the Board of @o ernors of the 4ederal "eser e $ystem may#rescribe, own and hold >< #er centum or more of the shares of the ca#ital stock of any cor#oration organi2ed under this section, andany such cor#oration shall be subKect to the same #ro isions of law as any other cor#oration organi2ed under this section, and theterms HcontrolsH and Hcontrolling interestH shall be construed consistently with the definition of HcontrolH in section 6 of the Bank olding1om#any 0ct of >/. 4or the #ur#oses of the #receding sentence of this #aragra#h the term Hforeign bankH shall ha e the meaningassigned to it in the 8nternational Banking 0ct of :9. 0ny com#any, other than a bank as defined in section 6 of the Bank olding1om#any 0ct of >/, that after *arch >, 9:, directly or indirectly ac uires control of a cor#oration organi2ed or o#erating under the#ro isions of this section or section 6> shall be subKect to the #ro isions of the Bank olding 1om#any 0ct of >/ in the same mannerand to the same e3tent that bank holding com#anies are subKect thereto, e3ce#t that such com#any shall not by reason of this#aragra#h be deemed a bank holding com#any for the #ur#ose of section of the Bank olding 1om#any 0ct of >/.

M 6 '$1 / . 0s added by act of Dec. 6+, (+ $tat. :9) and amended by acts of 0ug. 6 , > (+ $tat. : :)5 $e#t. :, :9 ( 6 $tat. /< )5 and 0ug. <,9: ( < $tat. >//).N

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6. *embers of Board of @o ernors of the 4ederal "eser e $ystem as Directors, Ffficers or $tockholders=o member of the Board of @o ernors of the 4ederal "eser e $ystem shall be an officer or director of any cor#oration organi2ed underthe #ro isions of this section, or of any cor#oration engaged in similar business organi2ed under the laws of any $tate, nor hold stock inany such cor#oration, and before entering u#on his duties as a member of the Board of @o ernors of the 4ederal "eser e $ystem heshall certify under oath to the $ecretary of the !reasury that he has com#lied with this re uirement.

M 6 '$1 /6<. 0s added by act of Dec. 6+, (+ $tat. 96).N

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. $hareholdersI Liability5 1or#oration =ot to Become *ember of 4ederal "eser e Bank$hareholders in any cor#oration organi2ed under the #ro ision of this section shall be liable for the amount of their un#aid stocksubscri#tions. =o such cor#oration shall become a member of any 4ederal reser e bank.

M 6 '$1 /6 . 0s added by act of Dec. 6+, (+ $tat. 96).N

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+. 4orfeiture of 1harter for Aiolation of Law$hould any cor#oration organi2ed hereunder iolate or fail to com#ly with any of the #ro isions of this section, all of its rights, #ri ileges,and franchises deri ed herefrom may thereby be forfeited. Before any such cor#oration shall be declared dissol ed, or its rights,#ri ileges, and franchises forfeited, any noncom#liance with, or iolation of such laws shall, howe er, be determined and adKudged by acourt of the 'nited $tates of com#etent Kurisdiction, in a suit brought for that #ur#ose in the district or territory in which the home office











of such cor#oration is located, which suit shall be brought by the 'nited $tates at the insistence of the Board of @o ernors for the4ederal "eser e $ystem or the 0ttorney @eneral. '#on adKudication of such noncom#liance or iolation, each director and officer who#artici#ated in, or assented to, the illegal act or acts, shall be liable in his #ersonal or indi idual ca#acity for all damages which the saidcor#oration shall ha e sustained in conse uence thereof. =o dissolution shall take away or im#air any remedy against the cor#oration,its stockholders, or officers for any liability or #enalty #re iously incurred.

M 6 '$1 /66. 0s added by act of Dec. 6+, (+ $tat. 96).N

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>. Aoluntary Li uidation0ny such cor#oration may go into oluntary li uidation and be closed by a ote of its shareholders owning two-thirds of its stock.

M 6 '$1 /6 . 0s added by act of Dec. 6+, (+ $tat. 96.)N

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/. 0##ointment of "ecei er or 1onser ator 0. 8n general. !he Board may a##oint a conser ator or recei er for a cor#oration organi2ed under the #ro isions of this section to

the same e3tent and in the same manner as the 1om#troller of the 1urrency may a##oint a conser ator or recei er for anational bank, and the conser ator or recei er for such cor#oration shall e3ercise the same #owers, functions, and duties,subKect to the same limitations, as a conser ator or recei er for a national bank.

B. ui alent authority. !he Board shall ha e the same authority with res#ect to any conser ator or recei er a##ointed for acor#oration organi2ed under the #ro isions of this section under this #aragra#h and any such cor#oration as the 1om#troller of

the 1urrency has with res#ect to a conser ator or recei er of a national bank and the national bank for which a conser ator orrecei er has been a##ointed.1. !itle #etitions. !he Board may direct the conser ator or recei er of a cor#oration organi2ed under the #ro isions of this

section to file a #etition #ursuant to title , 'nited $tates 1ode, in which case, title , 'nited $tates 1ode, shall a##ly to thecor#oration in lieu of otherwise a##licable 4ederal or $tate insol ency law.

M 6 '$1 /6+. 0s added by act of Dec. 6+, (+ $tat. 96) and amended by act of Dec. 6, 6<<< ( + $tat. 6:/ 0- /).N

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:. $tockholdersI *eetings5 "ecords5 "e#orts5 3aminationsery cor#oration organi2ed under the #ro isions of this section shall hold a meeting of its stockholders annually u#on a date fi3ed in

its bylaws, such meeting to be held at its home office in the 'nited $tates. ery such cor#oration shall kee# at its home office books

containing the names of all stockholders thereof, and the names and addresses of the members of its board of directors, together withco#ies of all re#orts made by it to the Board of @o ernors of the 4ederal "eser e $ystem. ery such cor#oration shall make re#orts tothe Board of @o ernors of the 4ederal "eser e $ystem at such times and in such form as it may re uire5 and shall be subKect toe3amination once a year and at such other times as may be deemed necessary by the Board of @o ernors of the 4ederal "eser e$ystem by e3aminers a##ointed by the Board of @o ernors of the 4ederal "eser e $ystem, the cost of such e3aminations, includingthe com#ensation of the e3aminers, to be fi3ed by the Board of @o ernors of the 4ederal "eser e $ystem and to be #aid by thecor#oration e3amined.

M 6 '$1 /6>. 0s added by act of Dec. 6+, (+ $tat. 96).N

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9. Di idends and $ur#lus 4und!he directors of any cor#oration organi2ed under the #ro isions of this section may, semiannually, declare a di idend of so much of thenet #rofits of the cor#oration as they shall Kudge e3#edient5 but each cor#oration shall, before the declaration of a di idend, carry one-tenth of its net #rofits of the #receding half year to its sur#lus fund until the same shall amount to 6< #er centum of its ca#ital stock.

M 6 '$1 /6/. 0s added by act of Dec. 6+, (+ $tat. 9 ).N

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. !a3ation0ny cor#oration organi2ed under the #ro isions of this section shall be subKect to ta3 by the $tate within which its home office is locatedin the same manner and to the same e3tent as other cor#orations organi2ed under the laws of that $tate which are transacting a similarcharacter of business. !he shares of stock in such cor#oration shall also be subKect to ta3 as the #ersonal #ro#erty of the owners orholders thereof in the same manner and to the same e3tent as the shares of stock in similar $tate cor#orations.

M 6 '$1 /6:. 0s added by act of Dec. 6+, (+ $tat. 9 ).N













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6<. 3tension of 1or#orate 3istence0ny cor#oration organi2ed under the #ro isions of this section may at any time within the two years ne3t #re ious to the date of thee3#iration of its cor#orate e3istence, by a ote of the shareholders owning two-thirds of its stock, a##ly to the Board of @o ernors of the4ederal "eser e $ystem for its a##ro al to e3tend the #eriod of its cor#orate e3istence for a term of not more than twenty years, andu#on certified a##ro al of the Board of @o ernors of the 4ederal "eser e $ystem such cor#oration shall ha e its cor#orate e3istencefor such e3tended #eriod unless sooner dissol ed by the act of the shareholders owning two-thirds of its stock, or by an 0ct of1ongress or unless its franchise becomes forfeited by some iolation of law.

M 6 '$1 /69. 0s added by act of Dec. 6+, (+ $tat. 9 ).N

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6 . 1on ersion of $tate 1or#oration into 4ederal 1or#oration0ny bank or banking institution, #rinci#ally engaged in foreign business, incor#orated by s#ecial law of any $tate or of the 'nited $tatesor organi2ed under the general laws of any $tate or of the 'nited $tates and ha ing an unim#aired ca#ital sufficient to entitle it tobecome a cor#oration under the #ro isions of this section may, by the ote of the shareholders owning not less than two-thirds of theca#ital stock of such bank or banking association, with the a##ro al of the Board of @o ernors of the 4ederal "eser e $ystem, becon erted into a 4ederal cor#oration of the kind authori2ed by this section with any name a##ro ed by the Board of @o ernors of the4ederal "eser e $ystem7 #ro,i e ) howe,er) !hat said con ersion shall not be in contra ention of the $tate law. 8n such case thearticles of association and organi2ation certificate may be e3ecuted by a maKority of the directors of the bank or banking institution, andthe certificate shall declare that the owners of at least two thirds of the ca#ital stock ha e authori2ed the directors to make suchcertificate and to change or con ert the bank or banking institution into a 4ederal cor#oration. 0 maKority of the directors, after e3ecutingthe articles of association and the organi2ation certificate, shall ha e #ower to e3ecute all other #a#ers and to do whate er may bere uired to make its organi2ation #erfect and com#lete as a 4ederal cor#oration. !he shares of any such cor#oration may continue tobe for the same amount each as they were before the con ersion, and the directors may continue to be directors of the cor#orationuntil others are elected or a##ointed in accordance with the #ro isions of this section. When the Board of @o ernors of the 4ederal"eser e $ystem has gi en to such cor#oration a certificate that the #ro isions of this section ha e been com#lied with, suchcor#oration and all its stockholders, officers, and em#loyees, shall ha e the same #owers and #ri ileges, and shall be subKect to thesame duties, liabilities, and regulations, in all res#ects, as shall ha e been #rescribed by this section for cor#orations originallyorgani2ed hereunder.

M 6 '$1 /6 . 0s added by act of Dec. 6+, (+ $tat. 9 ).N

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66. 1riminal Fffenses of Directors, Ffficers, and m#loyeesery officer, director, clerk, em#loyee, or agent of any cor#oration organi2ed under this section who embe22les, abstracts, or willfully

misa##lies any of the moneys, funds, credits, securities, e idences of indebtedness or assets of any character of such cor#oration5 orwho, without authority from the directors, issues or #uts forth any certificate of de#osit, draws any order or bill of e3change, makes anyacce#tance, assigns any note, bond, debenture, draft, bill of e3change, mortgage, Kudgment, or decree5 or who makes any false entryin any book, re#ort, or statement of such cor#oration with intent, in either case, to inKure or defraud such cor#oration or any othercom#any, body #olitic or cor#orate, or any indi idual #erson, or to decei e any officer of such cor#oration, the Board of @o ernors ofthe 4ederal "eser e $ystem, or any agent or e3aminer a##ointed to e3amine the affairs of any such cor#oration5 and e ery recei er ofany such cor#oration and e ery clerk or em#loyee of such recei er who shall embe22le, abstract, or willfully misa##ly or wrongfullycon ert to his own use any moneys, funds, credits, or assets of any character which may come into his #ossession or under his controlin the e3ecution of his trust or the #erformance of the duties of his em#loyment5 and e ery such recei er or clerk or em#loyee of suchrecei er who shall, with intent to inKure or defraud any #erson, body #olitic or cor#orate, or to decei e or mislead the Board of@o ernors of the 4ederal "eser e $ystem, or any agent or e3aminer a##ointed to e3amine the affairs of such recei er, shall make anyfalse entry in any book, re#ort, or record of any matter connected with the duties of such recei er5 and e ery #erson who with like intentaids or abets any officer, director, clerk, em#loyee, or agent of any cor#oration organi2ed under this section, or recei er or clerk orem#loyee of such recei er as aforesaid in any iolation of this section, shall u#on con iction thereof be im#risoned for not less than twoyears nor more than ten years, and may also be fined not more than G>,<<<, in the discretion of the court.

M 6 '$1 / <. 0s added by act of Dec. 6+, (+ $tat. 9+).N

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6 . "e#resentation that 'nited $tates 8s Liable for FbligationsWhoe er being connected in any ca#acity with any cor#oration organi2ed under this section re#resents in any way that the 'nited$tates is liable for the #ayment of any bond or other obligation, or the interest thereon, issued or incurred by any cor#oration organi2edhereunder, or that the 'nited $tates incurs any liability in res#ect of any act or omission of the cor#oration, shall be #unished by a fineof not more than G <,<<< and by im#risonment for not more than fi e years.

M 6 '$1 / . 0s added by act of Dec. 6+, (+ $tat. 9+).N











Pre iously section 6>(a), this section was redesignated by act of Dec. , ( <> $tat. 669 ).

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%ection 1K). 9urisdiction of %uits M

. $uits 0rising Fut of 4oreign Banking Business=otwithstanding any other #ro ision of law all suits of a ci il nature at common law or in e uity to which any cor#oration organi2edunder the laws of the 'nited $tates shall be a #arty, arising out of transactions in ol ing international or foreign banking, or banking in ade#endency or insular #ossession of the 'nited $tates, or out of other international or foreign financial o#erations, either directly orthrough the agency, ownershi#, or control of branches or local institutions in de#endencies or insular #ossessions of the 'nited $tatesor in foreign countries, shall be deemed to arise under the laws of the 'nited $tates, and the district courts of the 'nited $tates shallha e original Kurisdiction of all such suits5 and any defendant in any such suit may, at any time before the trial thereof, remo e suchsuits from a $tate court into the district court of the 'nited $tates for the #ro#er district by following the #rocedure for the remo al ofcauses otherwise #ro ided by law. $uch remo al shall not cause undue delay in the trial of such case and a case so remo ed shallha e a #lace on the calendar of the 'nited $tates court to which it is remo ed relati e to that which it held on the $tate court fromwhich it was remo ed.

M 6 '$1 / 6. 0s added by act of ;une /, (+9 $tat. 9+).N

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. $uits 0rising Fut of 4oreign Banking Business=otwithstanding any other #ro ision of law all suits of a ci il nature at common law or in e uity to which any cor#oration organi2edunder the laws of the 'nited $tates shall be a #arty, arising out of transactions in ol ing international or foreign banking, or banking in ade#endency or insular #ossession of the 'nited $tates, or out of other international or foreign financial o#erations, either directly orthrough the agency, ownershi#, or control of branches or local institutions in de#endencies or insular #ossessions of the 'nited $tatesor in foreign countries, shall be deemed to arise under the laws of the 'nited $tates, and the district courts of the 'nited $tates shallha e original Kurisdiction of all such suits5 and any defendant in any such suit may, at any time before the trial thereof, remo e suchsuits from a $tate court into the district court of the 'nited $tates for the #ro#er district by following the #rocedure for the remo al ofcauses otherwise #ro ided by law. $uch remo al shall not cause undue delay in the trial of such case and a case so remo ed shallha e a #lace on the calendar of the 'nited $tates court to which it is remo ed relati e to that which it held on the $tate court fromwhich it was remo ed.


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6. $uits 8n ol ing 4ederal "eser e Banks=otwithstanding any other #ro ision of law, all suits of a ci il nature at common law or in e uity to which any 4ederal "eser e bankshall be a #arty shall be deemed to arise under the laws of the 'nited $tates, and the district courts of the 'nited $tates shall ha eoriginal Kurisdiction of all such suits5 and any 4ederal "eser e bank which is a defendant in any such suit may, at any time before thetrial thereof, remo e such suit from a $tate court into the district court of the 'nited $tates for the #ro#er district by following the#rocedure for the remo al of causes otherwise #ro ided by law. =o attachment or e3ecution shall be issued against any 4ederal"eser e bank or its #ro#erty before final Kudgment in any suit, action, or #roceeding in any $tate, county, munici#al, or 'nited $tatescourt.


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. 4ederal "eser e Banks "ecei ing Pro#erty of 4oreign $tates and 1entral BanksWhene er ( ) any 4ederal "eser e bank has recei ed any #ro#erty from or for the account of a foreign state which is recogni2ed bythe @o ernment of the 'nited $tates, or from or for the account of a central bank of any such foreign state, and holds such #ro#erty inthe name of such foreign state or such central bank5 (6) a re#resentati e of such foreign state who is recogni2ed by the $ecretary of$tate as being the accredited re#resentati e of such foreign state to the @o ernment of the 'nited $tates has certified to the $ecretaryof $tate the name of a #erson as ha ing authority to recei e, control, or dis#ose of such #ro#erty5 and ( ) the authority of such #ersonto act with res#ect to such #ro#erty is acce#ted and recogni2ed by the $ecretary of $tate, and so certified by the $ecretary of $tate tothe 4ederal "eser e bank, the #ayment, transfer, deli ery, or other dis#osal of such #ro#erty by such 4ederal "eser e bank to or u#onthe order of such #erson shall be conclusi ely #resumed to be lawful and shall constitute a com#lete discharge and release of anyliability of the 4ederal "eser e bank for or with res#ect to such #ro#erty.

M 6 '$1 / 6. 0s added by act of 0#ril :, + (>> $tat. ).N
















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+. 8nsured Banks "ecei ing Pro#erty of 4oreign $tates and 1entral BanksWhene er ( ) any insured bank has recei ed any #ro#erty from or for the account of a foreign state which is recogni2ed by the@o ernment of the 'nited $tates, or from or for the account of a central bank of any such foreign state, and holds such #ro#erty in thename of such foreign state or such central bank5 (6) a re#resentati e of such foreign state who is recogni2ed by the $ecretary of $tateas being the accredited re#resentati e of such foreign state to the @o ernment of the 'nited $tates has certified to the $ecretary of$tate the name of a #erson as ha ing authority to recei e, control, or dis#ose of such #ro#erty5 and ( ) the authority of such #erson toact with res#ect to such #ro#erty is acce#ted and recogni2ed by the $ecretary of $tate, and so certified by the $ecretary of $tate tosuch insured bank, the #ayment, transfer, deli ery, or other dis#osal of such #ro#erty by such bank to or u#on the order of such #ersonshall be conclusi ely #resumed to be lawful and shall constitute a com#lete discharge and release of any liability of such bank for or

with res#ect to such #ro#erty. 0ny suit or other legal #roceeding against any insured bank or any officer, director, or em#loyee thereof,arising out of the recei#t #ossession, or dis#osition of any such #ro#erty shall be deemed to arise under the laws of the 'nited $tatesand the district courts of the 'nited $tates shall ha e e3clusi e Kurisdiction thereof, regardless of the amount in ol ed5 and any suchbank or any officer, director, or em#loyee thereof which is a defendant in any such suit may, at any time before trial thereof, remo esuch suit from a $tate court into the district court of the 'nited $tates for the #ro#er district by following the #rocedure for the remo alof causes otherwise #ro ided by law.

M 6 '$1 / 6. 0s added by act of 0#ril :, + (>> $tat. 6).N

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>. Licenses "elating to Pro#erty of 4oreign $tates and 1entral Banks=othing in this section shall be deemed to re#eal or to modify in any manner any of the #ro isions of the @old "eser e 0ct of + (ch./, +9 $tat. :), as amended, the $il er Purchase 0ct of + (ch. /:+, +9 $tat. :9), as amended, or subdi ision (b) of section > ofthe 0ct of Fctober /, : (+< $tat. + ), as amended, or any actions, regulations, rules, orders, or #roclamations taken, #romulgated,made, or issued #ursuant to any of such statutes. 8n any case in which a license to act with res#ect to any #ro#erty referred to in thissection is re uired under any of said statutes, regulations, rules, orders, or #roclamations, notification to the $ecretary of $tate by the#ro#er @o ernment officer or agency of the issuance of an a##ro#riate license or that a##ro#riate licenses will be issued on a##licationshall be a #rere uisite to any action by the $ecretary of $tate #ursuant to this section, and the action of the $ecretary of $tate shallrelate only to such #ro#erty as is included in such notification. ach such notification shall include the terms and conditions of suchlicense or licenses and a descri#tion of the #ro#erty to which they relate.

M 6 '$1 / 6. 0s added by act of 0#ril :, + (>> $tat. 6).N

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/. Definitions4or the #ur#oses of this section, ( ) the term H#ro#ertyH includes gold, sil er, currency, credits, de#osits, securities, choses in action,and any other form of #ro#erty, the #roceeds thereof, and any right, title, or interest therein7 (6) the term Hforeign stateH includes anyforeign go ernment or any de#artment, district, #ro ince, county, #ossession, or other similar go ernmental organi2ation or subdi isionof a foreign go ernment, and any agency or instrumentality of any such foreign go ernment or of any such organi2ation or subdi ision5( ) the term Hcentral bankH includes any foreign bank or banker authori2ed to #erform any one or more of the functions of a centralbank5 (+) the term H#ersonH includes any indi idual, or any cor#oration, #artnershi#, association, or other similar organi2ation5 and (>)the term Hinsured bankH shall ha e the meaning gi en to it in section 6B of this 0ct.

M 6 '$1 / 6. 0s added by act of 0#ril :, + (>> $tat. 6). $ection 6B was withdrawn and enacted as a se#arate act by act of $e#t. 6 , >< (/+ $tat. 9: )5for definition of Hinsured bankH under that act, see 6 '$1 9 (h).N

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Pre iously section 6>(b), this section was redesignated by act of Dec. , ( <> $tat. 669 ).


%ection 1K(. 2otential 7iability on #oreign !ccounts(a" 3ce#tions from re#ayment re uirement. 0 member bank shall not be re uired to re#ay any de#osit made at a foreign branch of thebank if the branch cannot re#ay the de#osit due to--

. an act of war, insurrection, or ci il strife5 or6. an action by a foreign go ernment or instrumentality (whether de Kure or de facto) in the country in which the branch is located5

unless the member bank has e3#ressly agreed in writing to re#ay the de#osit under those circumstances.














(b" "egulations. !he Board and the 1om#troller of the 1urrency may Kointly #rescribe such regulations as they deem necessary toim#lement this section.

M 6 '$1 / . 0s added by act of $e#t. 6 , + ( <9 $tat. 666 ). $ection 6/(c) of the "iegle 1ommunity De elo#ment and "egulatory 8m#ro ement 0ct of+ ( 6 '$1 / note) #ro ides as follows7

(+" $ection 6>1 of the 4ederal "eser e 0ct (as added by subsection (a)) shall not be a##lied retroacti ely and shall not be construed to affect or a##ly to anyclaim or cause of action addressed by that section arising f rom e ents or circumstances that occurred before the date of enactment of this 0ct.N


%ection 1L

M$ection 6/ authori2ed the secretary of the !reasury to maintain #arity of all forms of money and to strengthen the gold reser e by borrowing gold on security ofnited $tates bonds or by issuing gold notes for one year. !he authority to issue the bonds was re#ealed by section < of the act of *arch 9, /9 (96 $tat.> )5 therefore, in the recodification of title (act of $e#t. , 96, / $tat. 9::), section 6/ of the 4ederal "eser e 0ct, which had been #artly incor#orated in

'$1 +< , was deleted as obsolete.N

%ection 1>. Tax on Bational )ank Botes

. =ational 1urrency 0ssociations5 0mendments to =ational Bank 0ct!he #ro isions of the 0ct of *ay thirtieth, nineteen hundred and eight, authori2ing national currency associations, the issue ofadditional national-bank circulation, and creating a =ational *onetary 1ommission, which e3#ires by limitation under the terms of such0ct on the thirtieth day of ;une, nineteen hundred and fourteen, are hereby e3tended to ;une thirtieth, nineteen hundred and fifteen,and sections fifty-one hundred and fifty-three, fifty-one hundred and se enty-two, fifty-one hundred and ninety-one, and fifty-twohundred and fourteen of the "e ised $tatutes of the 'nited $tates, which were amended by the 0ct of *ay thirtieth, nineteen hundredand eight, are hereby reenacted to read as such sections read #rior to *ay thirtieth, nineteen hundred and eight, subKect to suchamendments or modifications as are #rescribed in this 0ct7 #ro,i e ) howe,er) !hat section nine of the 0ct first referred to in thissection is hereby amended so as to change the ta3 rates fi3ed in said 0ct by making the #ortion a##licable thereto read as follows7

MFmitted from '.$. 1ode. Part of original 4ederal "eser e 0ct5 not amended. $ections > > , > :6, > , and >6 + of the "e ised $tatutes, referred to in this#aragra#h, are incor#orated in 6 '$1 <, <+, + - + , and >+ , res#ecti ely.N

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6. !a3 on =ational Bank =otes =ot $ecured by 'nited $tates Bonds=ational banking associations ha ing circulating notes secured otherwise than by bonds of the 'nited $tates, shall #ay for the firstthree months a ta3 at the rate of three #er centum #er annum u#on the a erage amount of such of their notes in circulation as arebased u#on the de#osit of such securities, and afterwards an additional ta3 rate of one-half of #er centum #er annum for each monthuntil a ta3 of / #er centum #er annum is reached, and thereafter such ta3 of / #er centum #er annum u#on the a erage amount of suchnotes7 #ro,i e further , !hat whene er in his Kudgment he may deem it desirable, the $ecretary of the !reasury shall ha e #ower tosus#end the limitations im#osed by section one and section three of the 0ct referred to in this section, which #rescribe that suchadditional circulation secured otherwise than by bonds of the 'nited $tates shall be issued only to =ational banks ha ing circulatingnotes outstanding secured by the de#osit of bonds of the 'nited $tates to an amount not less than +< #er centum of the ca#ital stock ofsuch banks, and to sus#end also the conditions and limitations of section fi e of said 0ct e3ce#t that no bank shall be #ermitted toissue circulating notes in e3cess of one hundred and 6> #er centum of its unim#aired ca#ital and sur#lus. e shall re uire each bankand currency association to maintain on de#osit in the !reasury of the 'nited $tates a sum in gold sufficient in his Kudgment for theredem#tion of such notes, but in no e ent less than fi e #er centum. e may #ermit =ational banks, during the #eriod for which such#ro isions are sus#ended, to issue additional circulation under the terms and conditions of the 0ct referred to as herein amended7#ro,i e further , !hat the $ecretary of the !reasury, in his discretion, is further authori2ed to e3tend the benefits of this 0ct to all

ualified $tate banks and trust com#anies, which ha e Koined the 4ederal reser e system, or which may contract to Koin within fifteendays after the #assage of this 0ct.

MFmitted from '.$. 1ode. 0s amended by act of 0ug. +, + ( 9 $tat. /96).N

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%ection 1<. $eduction of (apital of Bational )anks(a" In genera!. $ubKect to the a##ro al of the 1om#troller of the 1urrency, a national banking association may, by a ote ofshareholders owning, in the aggregate, two-thirds of its ca#ital stock, reduce its ca#ital.

(b" 'hareho! er istri%utions authori1e . 0s #art of its ca#ital reduction #lan a##ro ed in accordance with subsection (a), and with theaffirmati e ote of shareholders owning at least two thirds of the shares of each class of its stock outstanding (each oting as a class),a national banking association may distribute cash or other assets to its shareholders.

M 6 '$1 > . $ection > + , "e ised $tatutes, as amended and renacted by this section, was further amended by acts of 0ug. 6 , > (+ $tat. :6<) and Fct., 6<</ ( 6< $tat. :<).N


%ection 10. (ivil oney 2enalty

4irst !ier (a" 0ny member bank which, and any institution-affiliated #arty (within the meaning of section (u) of the 4ederal De#osit 8nsurance0ct) with res#ect to such member bank who, iolates any #ro ision of section 66, 6 0, or 6 B, or any regulation issued #ursuantthereto, shall forfeit and #ay a ci il #enalty of not more than G>,<<< for each day during which such iolation continues.

M 6 '$1 ><+(a). 0s added by act of =o . <, :9 ( 6 $tat. /+ ) and amended by acts of Fct. >, 96 ( / $tat. >6 ) and 0ug. , 9 ( < $tat. +:<).N

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$econd !ier (b" =otwithstanding subsection (a), any member bank which, and any institution-affiliated #arty (within the meaning of section (u) ofthe 4ederal De#osit 8nsurance 0ct) with res#ect to such member bank who

. 0. commits any iolation described in subsection (a)5B. recklessly engages in an unsafe or unsound #ractice in conducting the affairs of such member bank5 or1. breaches any fiduciary duty5

6. which iolation, #ractice, or breach-- 0. is #art of a #attern of misconduct5B. causes or is likely to cause more than a minimal loss to such member bank5 or1. results in #ecuniary gain or other benefit to such #arty,

shall forfeit and #ay a ci il #enalty of not more than G6>,<<< for each day during which such iolation, #ractice, or breachcontinues.

M 6 '$1 ><+(b). 0s added by act of =o . <, :9 ( 6 $tat. /+ ) and amended by act of 0ug. , 9 ( < $tat. +:<).N

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!hird !ier (+" =otwithstanding subsections (a) and (b), any member bank which, and any institution-affiliated #arty (within the meaning of section

(u) of the 4ederal De#osit 8nsurance 0ct) with res#ect to such member bank who--. knowingly--

0. commits any iolation described in subsection (a)5B. engages in any unsafe or unsound #ractice in conducting the affairs of such credit union5 or1. breaches any fiduciary duty5 and

6. knowingly or recklessly causes a substantial loss to such credit union or a substantial #ecuniary gain or other benefit to such#arty by reason of such iolation, #ractice, or breach,

shall forfeit and #ay a ci il #enalty in an amount not to e3ceed the a##licable ma3imum amount determined under subsection (d) foreach day during which such iolation, #ractice, or breach continues.

M 6 '$1 ><+(c). 0s added by act of =o . <, :9 (:6 $tat. /+ ) and amended by act of 0ug. , 9 ( < $tat. +:<).N

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*a3imum 0mounts of Penalties for 0ny Aiolation Described in $ubsection (c)(#" !he ma3imum daily amount of any ci il #enalty which may be assessed #ursuant to subsection (c) for any iolation, #ractice, orbreach described in such subsection is--

. in the case of any #erson other than a member bank, an amount to not e3ceed G ,<<<,<<<5 and6. in the case of a member bank, an amount not to e3ceed the lesser of --

0. G ,<<<,<<<5 orB. #ercent of the total assets of such member bank.

M 6 '$1 ><+(d). 0s added by act of =o . <, :9 ( 6 $tat. /+ ) and amended by acts of Fct. >, 96 ( / $tat. >6 ) and 0ug. , 9 ( < $tat. +:<).N

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0ssessment, tc.(e" 0ny #enalty im#osed under subsection (a), (b), or (c) shall be assessed and collected by

. in the case of a national bank, by the 1om#troller of the 1urrency5 and6. in the case of a $tate member bank, by the Board,

in the manner #ro ided in sub#aragra#hs ( ), (4), (@), and (8) of section 9(i)(6) of the 4ederal De#osit 8nsurance 0ct for #enaltiesim#osed (under such section) and any such assessment shall be subKect to the #ro isions of such section.

M 6 '$1 ><+(e). 0s added by act of =o . <, :9 ( 6 $tat. /+ ) and amended by act of 0ug. , 9 ( < $tat. +:<).N

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earing(f" !he member bank or other #erson against whom any #enalty is assessed under this section shall be afforded an agency hearing ifsuch member bank or #erson submits a re uest for such hearing within 6< days after the issuance of the notice of assessment. $ection9(h) of the 4ederal De#osit 8nsurance 0ct shall a##ly to any #roceeding under this section.

M 6 '$1 ><+(f). 0s added by act of =o . <, :9 ( 6 $tat. /+ ) and amended by act of 0ug. , 9 ( < $tat. +:<).N

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Disbursement(g" 0ll #enalties collected under authority of this #aragra#h shall be de#osited into the !reasury.

M 6 '$1 ><+(g). 0s added by act of =o . <, :9 ( 6 $tat. /+ ) and amended by act of 0ug. , 9 ( < $tat. +:<).N

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HAiolateH Defined(h" 4or #ur#oses of this section, the term H iolateH includes any action (alone or with another or others) for or toward causing, bringingabout, #artici#ating in, counseling, or aiding or abetting a iolation.

M 6 '$1 ><+(h). 0s added by act of 0ug. , 9 ( < $tat. +:<).N

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"egulations(i" !he 1om#troller of the 1urrency and the Board shall #rescribe regulations establishing such #rocedures as may be necessary tocarry out this section.

M 6 '$1 ><+(i). 0s added by act of 0ug. , 9 ( < $tat. +:<).N

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=otice 'nder !his $ection 0fter $e#aration from $er ice(m" !he resignation, termination of em#loyment or #artici#ation, or se#aration of an institution-affiliated #arty (within the meaning ofsection (u) of the 4ederal De#osit 8nsurance 0ct) with res#ect to a member bank (including a se#aration caused by the closing of sucha bank) shall not affect the Kurisdiction and authority of the a##ro#riate 4ederal banking agency to issue any notice and #roceed underthis section against any such #arty, if such notice is ser ed before the end of the /-year #eriod beginning on the date such #arty













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