Reference has already been made to the Federal Reserve agent. As chairman of the board of directors, his function is to preside over meetings of the board and in general to perform all those functions of organization which ordinarily fall to the chairman of a deliberative body. As representative of the government in his capacity of Federal Reserve agent, he communicates with the Federal Reserve Board and transmits communications from that body to the bank. He also acts in a fiduciary capacity, receiving from the board at Washington the notes ready for circulation in such amounts as the bank deems to be necessary, and issuing or transferring these to the bank whenever the institution has placed with him, for the special protection of such notes, commercial paper of the kinds specified in the Federal Reserve Act as eligible for rediscount. It is his duty to report regularly to the Federal Reserve Board upon prevailing banking and commercial conditions in his district and to inform the board of any special or unusual conditions demanding attention from the governing body.

An important function which falls to the Federal Reserve agent is that of advising the board, whenever necessary, that the bank desires to change the rate of discount on commercial paper. If such application for change is approved, the Reserve agent notifies his bank and announces the rates thus newly fixed to the public. Beyond these definite and well-recognized functions, the duties of Federal Reserve agent vary somewhat from bank to bank, according to the personality of the agent himself.