(c) Each federal reserve bank shall, on receipt of the telegram from the settling agent, debit the "due to" federal reserve banks' accounts, and shall credit the gold settlement fund; and shall credit the "due from"
federal reserve banks' accounts and charge the gold settlement fund. The difference between the total debits and credits shall equal the net debit or credit to the gold settlement fund, as advised in the telegram from the settling agent.
VII
DEFICITS
(a) Should the debit settlement balance of any federal reserve bank be in excess of the amount of its credit in the gold settlement fund, such deficit must be immediately covered either by the deposit of gold, gold certificates, or gold order certificates in the Treasury or nearest Sub-Treasury, or by credit operations with other federal reserve banks which have an excess balance with the gold settlement fund. Any delay in covering such deficit shall be subject to such charge as the Federal Reserve Board may impose.
(b) As required in III (c) of this regulation, each federal reserve bank shall maintain a balance in the gold settlement fund of not less than $1,000,000. Should the credit balance of any federal reserve bank in such fund fall below $1,000,000, such bank shall restore its balance to that amount in either manner indicated under VII (a) of this regulation on or before Tuesday of the following week.
VIII
EXCESS BALANCES
Any excess balance shall, on request, either by telegraph or letter, of the federal reserve bank to which it is due, be refunded by the return to the reserve bank of the gold order certificates held by the gold settlement fund properly indorsed; or by the indorsement and delivery to the Treasurer of a like amount of such certificates for which he will give in exchange bearer gold certificates, which the Federal Reserve Board may send by registered mail, insured, to the banks, if they want funds other than gold order certificates, or in lieu of such payment, the Treasurer may by wire or mail direct payment to be made by a Sub-Treasury office through the medium of the general account, provided funds are held in such office available for the purpose. Gold order certificates will, when presented at the office of the Treasurer of the United States or any Sub-Treasury, bearing the signatures of duly authorised officers of the federal reserve bank, be payable in gold or gold certificates. If the Treasury finds it necessary to ship from one point to another in order to have the gold or gold certificates available at the Sub-Treasury to which such gold order certificates are presented, the Federal Reserve Board will, for the account of the gold settlement fund, refund any expense incurred by the Treasury in making such shipments.
IX
RESERVE
Each federal reserve bank shall count as a part of its legal reserve the funds standing to the credit of its account on the books of the gold settlement fund.
X
EXPENSES
Cost of operation of and shipment of currency by the gold settlement fund shall be apportioned by a semi-annual accounting among the 12 federal reserve banks on a basis to be hereafter determined by the board after consultations with the federal reserve banks.
XI
AUDIT
At least once in each three months an audit shall be made of the gold settlement fund by a representative of the Federal Reserve Board and representative appointed by the federal reserve banks.
XII
The Federal Reserve Board reserves the right to add to, alter, or amend these regulations.
CHARLES S. HAMLIN, Governor.
H. PARKER WILLIS, Secretary.
FEDERAL RESERVE BOARD
WASHINGTON, June 7, 1915.
MEMBERSHIP OF STATE BANKS
I
STATUTORY REQUIREMENTS
Specific provisions of the Federal Reserve Act applicable to State banks and trust companies which become member banks are quoted at the end of this regulation.
II
BANKS ELIGIBLE FOR MEMBERSHIP
A State bank or a trust company to be eligible for membership in a federal reserve bank must comply with the following conditions:
(1) It must have been incorporated under a special or general law of the State or district in which it is located.
(2) It must have a minimum paid-up unimpaired capital stock as follows:
In cities or towns not exceeding 3,000 inhabitants, $25,000.
In cities or towns exceeding 3,000 but not exceeding 6,000 inhabitants, $50,000.
In cities or towns exceeding 6,000 but not exceeding 50,000 inhabitants, $100,000.
In cities exceeding 50,000 inhabitants, $200,000.
III
APPLICATION FOR MEMBERSHIP
Any eligible State bank or trust company may make application on Form 83, made a part of this regulation, to the federal reserve agent of its district for an amount of capital stock in the federal reserve bank of such district equal to 6 per cent. of the paid-up capital stock and surplus of such State bank or trust company.[328]
Upon receipt of such application the federal reserve agent shall submit the same to a committee composed of the federal reserve agent, the governor of the federal reserve bank, and at least one other member of the board of directors of such bank, to be appointed by such board, but no Class A director whose bank is in the same city or town as the applying bank or trust company shall be a member of such committee. This committee shall, after receiving the report of such examination as may be required by the federal reserve bank in pursuance of directions from the Federal Reserve Board, consider the application and transmit it to the Federal Reserve Board with its report and recommendations.
IV
APPROVAL OF APPLICATION
In passing upon an application the Federal Reserve Board will consider especially:
(1) The financial condition of the applying bank or trust company and the general character of its management.