Sec. 12. There is hereby created a Federal Advisory Council, which shall consist of as many members as there are Fed. Res. Dists. Each Fed. Res. bank by its board of directors shall annually select from its own Fed. Res. Dist. one member of said council, who shall receive such compensation and allowances as may be fixed by his board of directors subject to the approval of the Fed. Res. Board. The meetings of said advisory council shall be held at Washington, D. C, at least 4 times each year, and oftener if called by the Fed. Res. Board. The council may in addition to the meetings above provided for hold such other meetings in Washington, D. C, or elsewhere, as it may deem necessary, may select its own officers and adopt its own methods of procedure, and a majority of its members shall constitute a quorum for the transaction of business. Vacancies in the council shall be filled by the respective reserve banks, and members selected to fill vacancies, shall serve for the unexpired term.

The Fed. Adv. Council shall have power, by itself or through its officers, (1) to confer directly with the Fed. Res. Board on general business conditions; (2) to make oral or written representations concerning matters within the jurisdiction of said board; (3) to call for information and to make recommendations in regard to discount rates, rediscount business, note issues, reserve conditions in the various Dists., the purchase and sale of gold or securities by reserve banks, open-market operations by said banks, and the general affairs of the reserve banking system.