First Revision, Sec. 7
Title
First Revision, Sec. 7
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18873
Date
No date
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
FIRST REVISE.
Sec. 7. The government of the Federal Reserve Bank shall be vested in a board of seven directors to be known as the Federal Reserve Board (hereinafter called the Board), whose powers shall be the same as those conferred upon boards of directors of national banking associations under existing law not inconsistent with the provisions fof this Act. Such directors shall be appointed by the President of the United States with the advice and consent of the Senate, to be selcted from men such selection shall be made from persons qualified by experience and training for the proper discharge of the duties imposed upon them by this act, and at least three of the members shall be persons of tested banking experience. Such selection shall be made from residents of different sections of the country, due weight being given to the various commercial interests of such sections.The term of office of each member of the Board shall be fourteen years, except that the terms of office of six of the persons first appointed to the Board by the President shall expire at the end of two, four, six, eight, ten, and twelve years, respectively. The President shall have power to remove any member of the Board for cause after due hearing, such removal and his reasons therefor to be communicated by him to the Senate. The president shall designate from among the members of the Board one person as Governor and one as Deputy Governor who shall, subject to the supervision of the Board, be the active executive officers of the Federal Reserve Bank. No member of the Board shall be an officer or director of any bank or banking institution, or hold stock in any bank or banking institution, and before entering on his duties as a member of the Board, he shall certify under oath that he has complied with this requirement. Vacancies caused by death, resignation or removal shall be filled by the President with the advice and consent of the Senate, and persons appointed to fill such vacancies shall hold office for the unexpired term of the member to whose place he is appointed. Members of the Board shall devote all their time to their official duties, and shall retire at the age of seventhy years. The Governor, or in his absence the Deputy Governor, shall act as Chairman of the Board. The salary of the Governor shall be $17,500 per annum, and of the other members of the Board $15,000 per annum. The Board shall make report annually of the operations of the Federal Reserve Bank to the Speaker of the House of Representatives, who shall cause the same to be printed for the information of Congress.BRANCH RESERVE BANKS. The Federal Reserve Board shall create and designate in the continental United States, exclusive of Alaska, twelve banking districts for the purpose of establishing within each of such districts a branch of the Federal Reserve Bank. Such districts shall be established with due regard to the convenience and customary course of business of the community and shall not necessarily coincide with the arrangement of such states or states as may be wholly or in part included within any given district. The Board shall also establish within each district a branch of the Federal Reserve Bank which shall be designated by prefixing the name of the city in which such branch is eestablished to the woreds “Branch, tThe Federal Reserve Bank”. The number of such branch banks and of such districts may be reduced by the Board when in its judgment the interests of trade and commerce so require; and in like manner the number of such brahch branch banks and districts may be increased by the Board after two years from the time of the organization of the original number of branch banks and districts.The government of such branch banks shall be vested in an Executive Committee consisting of five persons to be appointed by the Federal Reserve Board. The term of office of each member of such Executive Committee shall be five years, except that terms of office of four of the persons first appointed by the Board upon each such Executive Committee shall expire at the end of one, two, three and four years, respectively. The Federal Reserve Board shall fix the compensation to be received by the members of the Executive Committee and shall designate the chairman and vice-chairman for each Executive Committee. The chairman, or in his absence the vice-chairman, shall preside over the meetings of such Executive Committees and, subject to the supervision of the Executive Committees, shall be the active executive officers of the branch reserve banks. The Executive Committees shall have authority to establish and discontinue sub-branch banks, within their respective districts, subject to the approval of the Federal Reserve Board. No member of such Executive Committees shal be an officer or a director of any bank or banking institution, or hold stock in any bank or banking institution and, before entering upon his duties as a member of such Committee, he shall certify under oath that he has complied with this requirement. Vacancies caused by death, resignation or removal shall be filled by the Federal Reserve Board and any person appointed to fill such vacancy shall hold office for the unexpired term of the member to whose place he is appointed. Members of such Executive Committees may be summarily suspended and subsequently removed for cause by the Federal Reserve Board after due hearing. Each such Executive Committee shall annually make a report of the operations of the branch Reserve bank to the Federal Reserve Board to be by them transmitted with their annual report to the Speaker of the House of Representatives. Such report of the Executive Committee shall contain reports from each sub-branch bank established in the district.All actions of the executive committees shall be subject to the approval of the Federal Reserve Board. Each executive committee shall select a president and other executive officers to conduct the business of the branch. Such officers shall have no official or financial relation with any other financial institution.
Sec. 7. The government of the Federal Reserve Bank shall be vested in a board of seven directors to be known as the Federal Reserve Board (hereinafter called the Board), whose powers shall be the same as those conferred upon boards of directors of national banking associations under existing law not inconsistent with the provisions fof this Act. Such directors shall be appointed by the President of the United States with the advice and consent of the Senate, to be selcted from men such selection shall be made from persons qualified by experience and training for the proper discharge of the duties imposed upon them by this act, and at least three of the members shall be persons of tested banking experience. Such selection shall be made from residents of different sections of the country, due weight being given to the various commercial interests of such sections.The term of office of each member of the Board shall be fourteen years, except that the terms of office of six of the persons first appointed to the Board by the President shall expire at the end of two, four, six, eight, ten, and twelve years, respectively. The President shall have power to remove any member of the Board for cause after due hearing, such removal and his reasons therefor to be communicated by him to the Senate. The president shall designate from among the members of the Board one person as Governor and one as Deputy Governor who shall, subject to the supervision of the Board, be the active executive officers of the Federal Reserve Bank. No member of the Board shall be an officer or director of any bank or banking institution, or hold stock in any bank or banking institution, and before entering on his duties as a member of the Board, he shall certify under oath that he has complied with this requirement. Vacancies caused by death, resignation or removal shall be filled by the President with the advice and consent of the Senate, and persons appointed to fill such vacancies shall hold office for the unexpired term of the member to whose place he is appointed. Members of the Board shall devote all their time to their official duties, and shall retire at the age of seventhy years. The Governor, or in his absence the Deputy Governor, shall act as Chairman of the Board. The salary of the Governor shall be $17,500 per annum, and of the other members of the Board $15,000 per annum. The Board shall make report annually of the operations of the Federal Reserve Bank to the Speaker of the House of Representatives, who shall cause the same to be printed for the information of Congress.BRANCH RESERVE BANKS. The Federal Reserve Board shall create and designate in the continental United States, exclusive of Alaska, twelve banking districts for the purpose of establishing within each of such districts a branch of the Federal Reserve Bank. Such districts shall be established with due regard to the convenience and customary course of business of the community and shall not necessarily coincide with the arrangement of such states or states as may be wholly or in part included within any given district. The Board shall also establish within each district a branch of the Federal Reserve Bank which shall be designated by prefixing the name of the city in which such branch is eestablished to the woreds “Branch, tThe Federal Reserve Bank”. The number of such branch banks and of such districts may be reduced by the Board when in its judgment the interests of trade and commerce so require; and in like manner the number of such brahch branch banks and districts may be increased by the Board after two years from the time of the organization of the original number of branch banks and districts.The government of such branch banks shall be vested in an Executive Committee consisting of five persons to be appointed by the Federal Reserve Board. The term of office of each member of such Executive Committee shall be five years, except that terms of office of four of the persons first appointed by the Board upon each such Executive Committee shall expire at the end of one, two, three and four years, respectively. The Federal Reserve Board shall fix the compensation to be received by the members of the Executive Committee and shall designate the chairman and vice-chairman for each Executive Committee. The chairman, or in his absence the vice-chairman, shall preside over the meetings of such Executive Committees and, subject to the supervision of the Executive Committees, shall be the active executive officers of the branch reserve banks. The Executive Committees shall have authority to establish and discontinue sub-branch banks, within their respective districts, subject to the approval of the Federal Reserve Board. No member of such Executive Committees shal be an officer or a director of any bank or banking institution, or hold stock in any bank or banking institution and, before entering upon his duties as a member of such Committee, he shall certify under oath that he has complied with this requirement. Vacancies caused by death, resignation or removal shall be filled by the Federal Reserve Board and any person appointed to fill such vacancy shall hold office for the unexpired term of the member to whose place he is appointed. Members of such Executive Committees may be summarily suspended and subsequently removed for cause by the Federal Reserve Board after due hearing. Each such Executive Committee shall annually make a report of the operations of the branch Reserve bank to the Federal Reserve Board to be by them transmitted with their annual report to the Speaker of the House of Representatives. Such report of the Executive Committee shall contain reports from each sub-branch bank established in the district.All actions of the executive committees shall be subject to the approval of the Federal Reserve Board. Each executive committee shall select a president and other executive officers to conduct the business of the branch. Such officers shall have no official or financial relation with any other financial institution.
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Citation
Strong, Benjamin, 1872-1928 , “First Revision, Sec. 7,” No date, WWP18873, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.