Second Revise, Sec. 10
Title
Second Revise, Sec. 10
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18871
Date
No date
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
SECOND REVISE.
Sec. 10. That the net earnings of the Federal Reserve Bank, after deducting taxes, expenses and proper reserves against the acquisition of permanent property, shall be devoted, first, to the payment of a five per cent. cumulative dividend upon the stock, and second, after the reimbursement to the United States of the Seven million dollars appropriated under Sec. 3 of this Act, to the accumulation of a surplus of Twenty million dollars, and after the accumulation of such surplus, one half of such earnings above said dividend requirements shall be paid to the United States and the other one half devoted to the accumulation of a further surplus until the total surplus reaches Fifty million dollars, and thereafter all earnings beyond such dividend requirements shall be paid to the United States so long as such surplus is maintained. The earnings so distributed to the United States shall be applied by the Secretary of the Treasury, not less than three months after the receipt thereof, to the redemption of outstanding bonds, after advertisement published in each Federal reserve district at least once a week for four successive weeks immediately preceeding the date fixed for such redemption, which advertisement shall call for the tender of bonds by the owners thereof at prices to be fixed by them in such tenders and the Secretary of the Treasury shall thereupon purchase of the bonds so tendered those offered at the lowest prices up to the amount of such earnings in his hands at such redemption date.
Sec. 10. That the net earnings of the Federal Reserve Bank, after deducting taxes, expenses and proper reserves against the acquisition of permanent property, shall be devoted, first, to the payment of a five per cent. cumulative dividend upon the stock, and second, after the reimbursement to the United States of the Seven million dollars appropriated under Sec. 3 of this Act, to the accumulation of a surplus of Twenty million dollars, and after the accumulation of such surplus, one half of such earnings above said dividend requirements shall be paid to the United States and the other one half devoted to the accumulation of a further surplus until the total surplus reaches Fifty million dollars, and thereafter all earnings beyond such dividend requirements shall be paid to the United States so long as such surplus is maintained. The earnings so distributed to the United States shall be applied by the Secretary of the Treasury, not less than three months after the receipt thereof, to the redemption of outstanding bonds, after advertisement published in each Federal reserve district at least once a week for four successive weeks immediately preceeding the date fixed for such redemption, which advertisement shall call for the tender of bonds by the owners thereof at prices to be fixed by them in such tenders and the Secretary of the Treasury shall thereupon purchase of the bonds so tendered those offered at the lowest prices up to the amount of such earnings in his hands at such redemption date.
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Citation
Strong, Benjamin, 1872-1928 , “Second Revise, Sec. 10,” No date, WWP18871, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.