National banks having a capital and surplus of $1,000,000 or more are permitted to establish foreign branches and also may invest an amount not exceeding 10% of their paid-in capital and surplus in the stock of one or more banks or corporations engaged in foreign banking. Until the passage of the Federal Reserve Act, a National bank could not loan money on real estate. The Federal Reserve Act provides that any National bank outside of New York, Chicago or St. Louis could make loans secured by improved and unencumbered farm land situated within its Federal Reserve district or within one hundred miles of the place in which the bank is located, irrespective of district lines and that it could make loans secured by clear or unencumbered real estate situated within one hundred miles of the bank's location. No such loan shall exceed 50% of the actual value of the real property offered as security. A National bank is not permitted to make such real estate loans to exceed in the aggregate 25% of its capital and surplus or one-third of its time deposits. No loans on farm lands should be made for more than five years and no loan on real estate should be made for more than one year.