Reserves of National Banking Associations, Section 22 and 23

Title

Reserves of National Banking Associations, Section 22 and 23

Creator

Strong, Benjamin, 1872-1928

Identifier

WWP18769

Date

No date

Description

Regulations setting minimum reserve requirements for the National Bank

Source

Benjamin Strong Jr. Papers, New York Federal Reserve Bank

Language

English

Text

RESERVES OF NATIONAL BANKING ASSOCIATIONS.
Sec. 22. That from and after a date to be fixed by the Federal Reserve Board, in no event longer than five years nor less than thirty months from the date of the organization of the Federal Reserve Bank, all national bankingsassociations shall be required to keep and maintain a reserve of not less than twelve per centum of its net deposit liabilities, as defined in this Act by the Bonds Trader or the Currencer. Such reserve shall consist, as to one-half thereof, of a deposit with the Federal Reserve Bank, and as to one-half of gold and lawful money in the vaults of the National Bank, but the anypa entire amount of such reserve may consist of a deposit with the Federal Reserve Bank.
From and after the organization of the Federal Reserve Bank the Federal Reserve Board shall aeffect as rapidly as it may deem wise under commercial conditions from time to time existing, and within the periods herein provided, the change to the minimum reserve requirements above set forth. Such change shall be effected by the publication of notices to all national banking associations which shall state the percentage of the total reserve which must thirty months thereafter, and until further notice, be deposited with the Federal Reserve Bank, and the amount which thereafter may be held in gold or lawful money in its vaults. Such requirements, however, shall fairly consider the commercial and industrial conditions of the country and its various sections and be so apportioned and determined as to cause the least restrictions upon the business of national banking associations banks, and compliance with such directions of the Board shall be mandatory upon national banking associations banks, and in such directions the Board shall give due weight to the distinctions recognized under existing laws between country banks, reserve city banks and central reserve city banks, but such directions shall be uniform within respect to banks within each of such classes.
Sec. 23. That from and after the organization of the Federal Reserve Bank no action shall be taken under the provisions of Section 1 of the Act of March 3, 1903, or Section 2 of the Act of March 3, 1887, providing for the designation of cities as additional reserve cities and additional central reserve cities, respectively; and from and after the establishment of the new minimum reserve provided in this Act the classification of national banking associations, banks as now provided by Section 5191 of the Revised Statutes of the United States, as amended, shall be abolished.

Original Format

Miscellaneous

Files

http://resources.presidentwilson.org/wp-content/uploads/2017/03/D08475.pdf

Tags

Citation

Strong, Benjamin, 1872-1928, “Reserves of National Banking Associations, Section 22 and 23,” No date, WWP18769, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.