THE CU B A REV lEW 23 



shall have directly under his orders, one of the branches or departments into which 

 the work of the Commission shall be divided, the organization of which shall be 

 determined upon in the Regulations. 



TITLE II 



THE RESERVE BANK OF CUBA 



Name 



17. The "Reserve Bank of Cuba" is hereby created, with domicile in the City of 

 Havana and subject to the provisions of the present Law. 



Capital of the Bank 



18. The authorized capital stock of the Bank shall be $20,000,000 in gold coin 

 of the Republic of Cuba or of the United States of America, represented by shares 

 always to order and totally paid in of $100 par value each, of which $4,000,000 shall 

 be paid up in order for the Bank to commence its operations. After three years have 

 elapsed, counted from the date of the promulgation of the present law, the Board 

 of Directors of the Bank may sohcit, once or several times, the increase of the paid 

 in capital up to the maximum amount of $20,000,000, the President of the Republic 

 being invested with the power of authorizing said increase, after having obtained the 

 opinion in writing of the National Banking Commission. 



19. The four millions of dollars which are mentioned in the foregoing article 

 shall be subscribed: two parts thereof by the Cuban Government; one part by the 

 banks, bankers and savings societies, including the branches or agencies of foreign 

 banks, doing business in the republic; and one part by the public, in accordance wdth 

 what is hereinafter provided. In the case of any increase in the capital, the shares 

 shall be subscribed in this same proportion by the government, the banks, bankers 

 and savings societies and by the public. 



20. In order that the government may obtain the necessary means for paying 

 for the shares of the bank which it shall subscribe in accordance with the foregoing 

 article, that is, the sum of two million dollars ($2,000,000), temporary taxes will 

 be created as determined upon in the Appendix of the present Law. 



21. The banks, bankers and savings societies, including the branches or agencies 

 of foreign banks, which do business in the republic, which have not become subject 

 to the Law of January 31, 1921, shall be obliged to subscribe shares of the Reserve 

 Bank of Cuba for a value of one million dollars, which amount shall be distributed 

 proportionately among all of them, in accordance with the amount of the deposits in 

 current and savings accounts which each one of them may have, estimated by the 

 average of the six months prior to the date of the publication of the present Law 

 in the Official Gazette of the Republic. 



22. In order to obtain the fourth remaining part of the capital of the bank, 

 shares of the bank at par to the amount of $1,000,000 shall be offered to the public, 

 and the same may be acquired by individuals or corporations either national or foreign. 

 The subscription books shall be opened, not only in Cuba, but also in New York, 

 London, Paris and Madrid simultaneously, and if at the expiration of 120 days, 

 counted from the date on which said subscriptions have been opened, the million 

 dollars has not been subscribed, the balance remaining to make up said amount shall 

 be subscribed and paid in by the Cuban Government, which will utilize for that purpose 

 the surplus proceeds of the taxes that will be established in accordance with article 

 20 of this Law, if there be any, or any other funds that the government may be 

 authorized to use for that purpose pursuant to an Act of Congress. The government 

 may sell to the pubhc, at a rate not under par, those shares of the bank that it shall 

 acquire in this way and which shall be in excess of the two millions of dollars mentioned 

 in section 19, and said sale shall be made subject to the rules that shall be established 

 by the National Banking Commission. 



