UNITED STATES - CREDIT 



shall be required within thirty days after notice from the organization 

 committee, to subscribe to the capital stock of such Federal reserve bank 

 in a sum equal to six per centum of the paid-up capital stock (i) and sur- 

 plus of such bank, one sixth of the subscription to be payable on call of 

 the organization committee or of the Federal Reserve Board, one sixth 

 within three months and one sixth within six months thereafter, and the 

 remainder of the subscription or any part thereof shall be subject to call 

 when deemed necessary by the Federal Reserve Board, said payments 

 to be in gold or gold certificates... Any national bank failing to signify 

 its acceptance of the terms of this Act within the sixty days aforesaid shall 

 cease to act as a reserve agent, upon thirty days' notice, to be given 

 within the discretion of the said organization committee or of the Federal 

 Reserve Board. Should an^^ national banking association in the United 

 States now organized fail within one j^ear after the passage of this Act to 

 become a member bank or fail to comply with any of the provisions of 

 this Act applicable thereto, all of the rights, privileges and franchises of 

 such association granted to it under the national bank Act (1863) or under 

 the provisions of this Act shall be tliereb}^ forfeited... Should the total 

 subscriptions b}' banks and the public to the said Federal reserve banks 

 or any one or more of them be, in the judgement of the organization com- 

 mittee, insufficient to provide the amount of capital required therefor, 

 then that committee shall allot to the United States such, an amount of 

 said stock as said committee shall determine... No Federal reserve bank 

 shall commence business with a subscribed capital less than S4, 000, 000 ". 



Each Federal Reserve Bank is under the supervision and control of 

 a board of nine directors, of whom three represent and are chosen by the 

 stockholding banks, three must when elected be actively engaged in their 

 district in commerce, agriculture or other industrial pursuit, and three 

 are nominated by the Federal Reserve Board. The chairman of the board 

 of directors is chosen by the Federal Reserve Board from the last named 

 three, and also has the office of federal reserve agent, acting as official re- 

 presentative of the Federal Resei-ve Board for the performance of the func- 

 tions conferred on it b}^ the Act. 



Any bank incorporated by special law of any State, or organized un- 

 der the general laws of any State or of the United States, may apply for 

 the right to subscribe to the stock of the Federal Reserve Bank organized 

 or to be organized within the Federal Reserve District in which it is situa- 

 ted. If such application be eccepted the applicant bank must conform 

 to the regulations as to reserves and capital and inspections which the Or- 

 ganization Committee or the Federal Reserve Board establish. No bank 

 may thus subscribe to the stock of a Federal Reserv^e bank if it have not 

 unimpaired paid-up capital sufficient to aallow it to become a National 

 Bank within its own locality in accordance with the law regulating such 

 banks. When admitted it shall be subject to all laws applicable to National 

 Banks. A dividend up to 6 per cent, on paid-up capital shares may be distrib- 



(i) The shares are of Sioo. 



