Sec. 10. A Fed. Res. Board is hereby created which shall consist of 7 members, including the Secy. of the Treas. and the Comptroller of the Currency, who shall be members ex officio, and 5 members appointed by the Pres. of the U. S., by and with the advice and consent of the Senate. In selecting the 5 appointive members of the Fed. Res. Board, not more than one of whom shall be selected from any one Fed. Res. Dist., the Pres. shall have due regard to a fair representation of the different commercial, industrial and geographical Divs. of the country. The 5 members of the Fed. Res. Board appointed by the Pres. and confirmed as aforesaid shall devote their entire time to the business of the Fed. Res. Board and shall each receive an annual salary of $12,000, payable monthly together with actual necessary traveling expenses, and the Comptroller of the Currency, as ex efficio member of the Fed. Res. Board, shall, in addition to the salary now paid him as Comptroller of the Currency, receive the sum of $7,000 annually for his services as a member of said Board.

The members of said board, the Secy. of the Treas., the Asst. Secys. of the Treas., and the Comptroller of the Currency shall be ineligible during the time they are in office and for 2 years thereafter to hold any office, position, or employment in any member bank. Of the 5 members thus appointed by the Pres. at least 2 shall be persons experienced in banking or finance. One shall be designated by the Pres. to serve for 2, one for 4, one for 6, one for 8, and one for 10 years, and thereafter each member so appointed shall serve for a term of 10 years unless sooner removed for cause by the Pres. Of the 5 persons thus appointed, one shall be designated by the Pres. as governor and one as Vice-gov. of the Fed. Res. Board. The Gov. of the Fed. Res. Board, subject to its supervision, shall be the active executive officer. The Secy. of the Treas. may assign offices in the Dept. of the Treas. for the use of the Fed. Res. Board. Each member of the Fed. Res. Board shall within 15 days after notice of appointment make and subscribe to the oath of office.

The Fed. Res. Board shall have power to levy semiannually upon the Fed. Res. banks, in proportion to their capital stock and surplus, an assessment sufficient to pay its estimated expenses and the salaries of its members and employees for the 1/2 year succeeding the levying of such assessment, together with any deficit carried forward from the preceding \ year.

The first meeting of the Fed. Res. Board shall be held in Washington, D. C, as soon as may be after the passage of this Act, at a date to be fixed by the Reserve Bank Organization Committee. The Secy. of the Treas. shall be ex officio chairman of the Fed. Res. Board. No member of the Fed. Res. Board shall be an officer or director of any bank, B'k'g. Inst., Tr. Co., or Fed. Res. bank nor hold stock in any bank, B'k'g. Inst., or Tr. Co.; ' and before entering upon his duties as a member of the Fed. Res. Board he shall certify under oath to the Secy. of the Treas. that he has complied with this requirement. Whenever a vacancy shall occur, other than by expiration of term, among the 5 members of the Fed. Res. Board appointed by the Pres., as above provided, a successor shall be appointed by the Pres., with the advice and consent of the Senate, to fill such vacancy, and when appointed he shall hold office for the unexpired term of the member whose place he is selected to fill.

The Pres. Shall have power to fill all vacancies that may happen on the Fed. Res. Board during the recess of the Senate, by granting commissions which shall expire 30 days after the next session of the Senate convenes.

Nothing in this Act contained shall be construed as taking away any powers heretofore vested by law in the Secy. of the Treas. which relate to the supervision, management, and control of the Treas. Dept. and bureaus under such Dept. and wherever any power vested by this Act in the Fed. Res. Board or the Fed. Res. agent appears to conflict with the powers of the Secy. of the Treas., such powers shall be exercised subject to the supervision and control of the Secy.

The Fed. Res. Board shall annually make a full report of its operations to the Speaker of the House of Representatives, who shall cause the same to be printed for the information of the Congress.

Sec. 324 of the Rev. Sts. of the U. S. shall be amended so as to read as follows: There shall be in the Dept. of the Treas. a bureau charged with the execution of all laws passed by Congress relating to the issue and regulation of Nat. currency secured by U. S. bonds and, under the general supervision of the Fed. Res. Board, of all Fed. Res. notes, the chief officer of which bureau shall be called the Comptroller of the Currency and shall perform his duties under the general directions of the Secy. of the Treas.

Sec. 11. The Fed. Res. Board shall be authorized and empowered:

(a) To examine at its discretion the accounts, books and affairs of each Fed. Res. bank and of each member bank and to require such statements and reports as it may deem necessary. The said board shall publish once each week a statement showing the condition of each Fed. Res. bank and a consolidated statement for all Fed. Res. banks. * Such statements shall show in detail the assets and liabilities of the Fed. Res. banks, single and combined, and shall furnish full information regarding the character of the money held as reserve and the amount, nature and maturities of the paper and other investments owned or held by Fed. Res. banks.

(b) To permit, or, on the affirmative vote of at least 5 members of the Res. Board to require Fed. Res. banks to rediscount the discounted paper of other Federal Res. banks at rates of interest to be fixed by the Fed. Res. Board.

(c) To suspend for a period not exceeding 30 days, and from time to time to renew such suspension for periods not exceeding 15 days, any reserve requirement specified in this Act: Provided, That it shall establish a graduated tax upon the amounts by which the reserve requirements of this Act may be permitted to fall below the level hereinafter specified: And provided further, That when the gold reserve held against Fed. Res. notes falls below 40%, the Fed. Res. Board shall establish a graduated tax of not more than 1% per annum upon such deficiency until the reserves fall to 32 1/2%, and when said reserve falls below 32 1/2%, a tax at the rate increasingly of not less than 1 1/2 % per annum upon each 2 1/2% or fraction thereof that such reserve falls below 32 1/2%. The tax shall be paid by the reserve bank, but the reserve bank shall add an amount equal to said tax to the rates of Int. and Dis. fixed by the Fed. Res. Board.

(d) To supervise and regulate through the bureau under the charge of the Comptroller of the Currency the issue and retirement of Fed. Res. notes, and to prescribe rules and regulations under which such notes may be delivered by the Comptroller to the Fed. Res. agents applying therefor.

(e) To add to the number of cities classified as reserve and central reserve cities under existing law in which Nat. B'k'g. Assos. are subject to the reserve requirements set forth in Sec. 20 of this Act; or to reclassify existing reserve and central reserve cities or to terminate their designation as such.

(f) To suspend or remove any officer or director of any Fed. Res. bank, the cause of such removal to be forthwith communicated in writing by the Fed. Res. Board to the removed officer or director and to said bank.

(g) To require the writing off of doubtful or worthless assets upon the books and balance sheets of Fed. Res. banks.

(h) To suspend, for the violation of any of the provisions of this Act, the operations of any Fed. Res. bank, to take possession thereof, administer the same during the period of suspension, and, when deemed advisable, to liquidate or reorganize such bank.

(i) To require bonds of Fed. Res. agents, to make regulations for the safeguarding of all collateral, bonds, Fed. Res. notes, money or property of any kind deposited in the hands of such agents, and said board shall perform the duties, functions, or services specified in this Act, and make all rules and regulations necessary to enable said board effectively to perform the same.

(j) To exercise general supervision over said Fed. Res. banks.

(k) To grant by special permit to Nat. banks applying therefor, when not in contravention of State or local law, the right to act as trustee, executor, administrator, or registrar of stocks and bonds under such rules and regulations as the said board may prescribe.

(1) To employ such attorneys, experts, assistants, clerks, or other employees as may be deemed necessary to conduct the business of the board. All salaries and fees shall be fixed in advance by said board and shall be paid in the same manner as the salaries of the members of said board. All such attorneys, experts, assistants, clerks, and other employees shall be appointed without regard to the provisions of the Act of Jan. 16, 1883 (Vol. 22, U. S. Sts. at Large, page 403), and amendments thereto, or any rule or regulation made in pursuance thereof: Provided, That nothing herein shall prevent the Pres. from placing said employees in the classified service.

(m) Upon the affirmative vote of not less than 5 of its members the Fed. Res. Board shall have power, from time to time, by general ruling, covering all Dists. alike, to permit member banks to carry in the Fed. Res. banks of their respective Dists. any portion of their reserves now required by Sec. 19 of this Act to be held in their own vaults.