Draft of an Act to Incorporate the Federal Reserve Bank of the United States
Title
Draft of an Act to Incorporate the Federal Reserve Bank of the United States
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18876
Date
[1913]
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
SECOND REVISE
AN ACT
To incorporate THE FEDERAL RESERVE BANK OF THE UNITED STATES, establish banking districts, mobilize bank reserves, refund and retire a portion of the national debt, provide for an elastic currency, afford means for rediscounting commercial paper, establish more effective supervision of banking, and for other purposes.Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled:That the short title of this Act shall be “The Federal Reserve Act.”ORGANIZATION COMMITTEE.Sec. 3. That as soon as practicable after the passage of this Act the President shall appoint a committee of five, to be designated The Federal Reserve Bank Organization Committee, hereinafter called the “Committee.” The Committee:(a) Shall select a Chairman and Secretary and such other officers as it may deem necessary from its own members and appoint assistant officers, clerks and other necessary employes;(b) Shall organize The Federal Reserve Federal Reserve Bank of the United States, hereinafter called “The Federal Reserve Bank”, and branches thereof;(c) Shall adopt a seal for The Federal Reserve Bank, which shall, during the process of organization thereof, be the seal of the Committee, and adopt seals for the several branches, which shall correspond to the seal of The Federal Reserve Bank with the names of the branch added;(d) Shall invite and receive popular subscriptions at par to the capital stock of The Federal Reserve Bank, in accordance with the provisions of Sec. 5 of this Act and under regulations to be prescribed by the Committee;(e) Shall make the certificate provided in Sec. 6 hereof;(f) Shall do all other things necessary to effect the corporate organization of the Federal Reserve Bank.Sec. 34 The sum of seven million dollars, or so much thereof as may be necessary, That there is hereby appropriated out of any money in the Treasury not otherwise appropriated, a sum sufficient to establish and provide accomodations for the Bank and its Branches, not to exceed $500.000 for the Bank and each branch thereof, and for the purpose of carrying out the provisions of this Act, in accordance with the following limitations, viz: Each member of the Committee shall receive in full compensation for his services the sum of $10,000, besides his actual and necessary traveling expenses, and in carrying out the provisions of this Act the Committee is authorized to incur such expenses as it shall deem necessary, not exceeding the sum of $250,000 all of which compensation and expenses shall be payable by the Treasurer of the United States upon vouchers approved by the Committee. Not more than two hundred and fifty thousand dollars shall be expended in carrying out the provisions of this Act relating to the Committee. The balance of the appropriation herein made shall be disbursed by the Federal Reserve Board for the purposes of establishing the Federal Reserve Bank and its several branches and for furnishing permanent quarters for the same, herein set forth, payments to be made by the Treasurer of the United States upon vouchers approved by the Board. The total amount of the appropriastion herein made shall, from time to time, be reimbursed to the Government United States by the Federal Reserve Bank from its net earnings after the payment of dividends to the stockholders and before the cumulation establishment of any a surplus fund.
AN ACT
To incorporate THE FEDERAL RESERVE BANK OF THE UNITED STATES, establish banking districts, mobilize bank reserves, refund and retire a portion of the national debt, provide for an elastic currency, afford means for rediscounting commercial paper, establish more effective supervision of banking, and for other purposes.Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled:That the short title of this Act shall be “The Federal Reserve Act.”ORGANIZATION COMMITTEE.Sec. 3. That as soon as practicable after the passage of this Act the President shall appoint a committee of five, to be designated The Federal Reserve Bank Organization Committee, hereinafter called the “Committee.” The Committee:(a) Shall select a Chairman and Secretary and such other officers as it may deem necessary from its own members and appoint assistant officers, clerks and other necessary employes;(b) Shall organize The Federal Reserve Federal Reserve Bank of the United States, hereinafter called “The Federal Reserve Bank”, and branches thereof;(c) Shall adopt a seal for The Federal Reserve Bank, which shall, during the process of organization thereof, be the seal of the Committee, and adopt seals for the several branches, which shall correspond to the seal of The Federal Reserve Bank with the names of the branch added;(d) Shall invite and receive popular subscriptions at par to the capital stock of The Federal Reserve Bank, in accordance with the provisions of Sec. 5 of this Act and under regulations to be prescribed by the Committee;(e) Shall make the certificate provided in Sec. 6 hereof;(f) Shall do all other things necessary to effect the corporate organization of the Federal Reserve Bank.Sec. 34 The sum of seven million dollars, or so much thereof as may be necessary, That there is hereby appropriated out of any money in the Treasury not otherwise appropriated, a sum sufficient to establish and provide accomodations for the Bank and its Branches, not to exceed $500.000 for the Bank and each branch thereof, and for the purpose of carrying out the provisions of this Act, in accordance with the following limitations, viz: Each member of the Committee shall receive in full compensation for his services the sum of $10,000, besides his actual and necessary traveling expenses, and in carrying out the provisions of this Act the Committee is authorized to incur such expenses as it shall deem necessary, not exceeding the sum of $250,000 all of which compensation and expenses shall be payable by the Treasurer of the United States upon vouchers approved by the Committee. Not more than two hundred and fifty thousand dollars shall be expended in carrying out the provisions of this Act relating to the Committee. The balance of the appropriation herein made shall be disbursed by the Federal Reserve Board for the purposes of establishing the Federal Reserve Bank and its several branches and for furnishing permanent quarters for the same, herein set forth, payments to be made by the Treasurer of the United States upon vouchers approved by the Board. The total amount of the appropriastion herein made shall, from time to time, be reimbursed to the Government United States by the Federal Reserve Bank from its net earnings after the payment of dividends to the stockholders and before the cumulation establishment of any a surplus fund.
Original Format
Draft
Files
Collection
Citation
Strong, Benjamin, 1872-1928 , “Draft of an Act to Incorporate the Federal Reserve Bank of the United States,” [1913], WWP18876, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.