The State of New York has passed an Act, popularly known as the " False Prospectus Act," which prohibits the making or publishing of false or exaggerated statements of publications of or concerning the affairs, pecuniary condition, or property of any corporation, joint-stock association, copartnership, or individual, with the idea of giving misleading information as to the apparent value of the security or property. Massachusetts and other states have enacted similar legislation.
See Sec. 12, "Federal Reserve Act," at end of book.
The following extracts are taken from circulars issued by the Treasury Department at Washington:
"The Federal Farm Loan Act provides a way of getting mortgage loans for farmers at low rates of interest, at lengths of time to suit the borrower, and on easy terms of repayment. All farmers have to do is to form themselves into national farm loan associations. The Government will do its part in helping them."
"After the charter is granted the applicants no longer act in their individual capacity but become merged as shareholders into a corporation, which has a separate existence created by law, under the same name which has been chosen and set forth in the original application or articles of association. This corporation will have directors and officers selected by the shareholders to do its business in accordance with the by-laws which the shareholders make for their guidance. The active executive officer of the association will be the secretary-treasurer, and his duties are set forth in section 7 of the farm loan act."
See end of book.
(First read " Federal Reserve District.") In each district, an important city has been selected where the "Federal Reserve Bank" of that district is located. This bank takes the name of that city, as "Federal Reserve Bank of Chicago." (See "Federal Reserve Bank Act," at end of book, for more details. The powers of these banks are given in Secs. 13 et seq.)
Under the terms of the "Federal Reserve Act" (see end of book), a "Federal Reserve Board" was created, consisting of seven members, including the Secretary of the Treasury and the Comptroller of the Currency - who are members ex-officio - and five others appointed by the President of the United States, by and with the consent of the Senate. This board has very broad powers over the banking and monetary system of the nation. (See Sec. 11, " Federal Reserve Act.")