“There are hundreds of court cases where the IRS has sued citizens for tax evasion.
The late Eustace Mullins said that there was a 100 year charter for the
Federal Reserve. Mullins was an expert on the Federal Reserve. FED HAS
ENDED DECEMBER 2013.
Please, read carefully this law, the Pepper McFadden Bill in 1927… the FED is not included because it is not a bank from any state but
above the states in this case, even if in 12 states altogether, it is
not under State laws, then this law doe not apply to the FED and
they can not go against the common law forbidding perpetual agreement if
not made clear in writing and as defined very clearly…
… banks, used in this section, shall be held to include trust companies, savings
banks, or other such corporations or institutions carrying on the
banking business under the authority of State laws.”
limit, the Pepper McFadden Bill in 1927 is not valid in this case, the
definition of itself is clear, under the authority of State laws and the
FED is NOT covered by this definition, because it was voted by the
Congress ( even if I doubt the validity of this vote in the middle of
the night and with most voters sleeping or away, just before Christmas, at home…) Do they respect really the
bona fide in this case ???
The original Federal Reserve Act of 1913 did indeed provide for
expiration of the corporate “power” of the twelve Federal Reserve Banks
to exist in 20 years from the banks’ organization (not the adoption of
the Act).
Sec. 4 … the said Federal reserve bank shall become a body corporate
and as such … shall have power: … Second. To have succession for a
period of twenty years from its organization unless it is sooner
dissolved by an Act of Congress, or unless its franchise becomes
forfeited by some violation of law. Federal Reserve Act of 1913 (P.L.
63-43, 38 STAT. 251, 12 USC 221).
If you want to apply the State’s law, then in New-York ( see below…), the real seat of the biggest and “true” and strongest FED…It is by far the largest (by assets), most active (by volume) and most influential of the 12 regional Federal Reserve Banks.
According to the Pepper McFadden Bill in 1927, page 2, near the middle…
Quote:
law of the State under which such bank is incorporated.
The Uniform Statutory Rule Against Perpetuities
is not yet valid in New-York, it validates non-vested interests that would otherwise be void as
violating the common law rule if that interest actually vests within 90
years of its creation;[8]
it has been enacted in only 29 states (Alabama, Alaska, Arizona, Arkansas,
California, Colorado, Connecticut, Florida, Georgia, Hawaii, Indiana,
Kansas, Massachusetts, Minnesota, Montana, Nebraska, Nevada, New Jersey,
New Mexico, North Carolina, North Dakota, Oregon, South Carolina, South
Dakota, Tennessee, Utah, Virginia, Washington, West Virginia), the
District of Columbia, and the U.S. Virgin Islands, and is currently
under consideration in New York for 2013.[9]
We should fight against it urgently.
http://en.wikipedia.org/wiki/Rule_against_perpetuities
Sec. 2. (a) That section 5130 of the Revised Statutes of the
United States, subsection “ second n thereof as amended, be amended
to read as follows:
44 Second. To have succession from the date of the approval of
this Act, or from the date of its organization if organized after such
date of approval until such time as it be dissolved by the act o f its
shareholders owning two-thirds of its stock, or until its franchise
becomes forfeited by reason of violation of law, or until terminated
by either a general or a special Act of Congress or until its affairs
be placed in the hands of a receiver and finally wound up by him.”
(b) That section 5136 of the Revised Statutes o f the United
States, subsection “ seventh ” thereof, be further amended by adding
at the end of the first paragraph thereof the following:
“ Provided, That the business of buying and selling investment
securities shall hereafter be limited to buying and selling without…
END POINT AND IRS IS ILLEGAL, please see below
25 Fast Facts About The Federal Reserve – Please Share With Everyone You Know
By Michael Snyder, on September 15th, 2013
As
we approach the 100 year anniversary of the creation of the Federal
Reserve, it is absolutely imperative that we get the American people to
understand that the Fed is at the very heart of our economic problems.
It is a system of money that was created by the bankers and that
operates for the benefit of the bankers. The American people like to
think that we have a “democratic system”, but there is nothing
“democratic” about the Federal Reserve. Unelected, unaccountable
central planners from a private central bank run our financial system
and manage our economy. There is a reason why financial markets respond
with a yawn when Barack Obama says something about the economy, but
they swing wildly whenever Federal Reserve Chairman Ben Bernanke opens
his mouth. The Federal Reserve has far more power over the U.S. economy
than anyone else does by a huge margin. The Fed is the biggest Ponzi scheme in the history of the world,
and if the American people truly understood how it really works, they
would be screaming for it to be abolished immediately. The following
are 25 fast facts about the Federal Reserve that everyone should know…
#1 The greatest period of economic growth in U.S. history was when there was no central bank.
#2 The United States never had a persistent, ongoing problem with inflation until the Federal Reserve was created.
In the century before the Federal Reserve was created, the average
annual rate of inflation was about half a percent. In the century since
the Federal Reserve was created, the average annual rate of inflation
has been about 3.5 percent, and it would be even higher than that if the inflation numbers were not being so grossly manipulated.
#3 Even using the official numbers, the value of the
U.S. dollar has declined by more than 95 percent since the Federal
Reserve was created nearly 100 years ago.
#4 The secret November 1910 gathering at Jekyll
Island, Georgia during which the plan for the Federal Reserve was
hatched was attended by U.S. Senator Nelson W. Aldrich, Assistant
Secretary of the Treasury Department A.P. Andrews and a whole host of
representatives from the upper crust of the Wall Street banking
establishment.
#5 In 1913, Congress was promised that if the Federal Reserve Act was passed that it would eliminate the business cycle.
#6 The following comes directly from the Fed’s official mission statement: “To
provide the nation with a safer, more flexible, and more stable
monetary and financial system. Over the years, its role in banking and
the economy has expanded.”
#7 It was not an accident that a permanent income tax was also introduced the same year
when the Federal Reserve system was established. The whole idea was to
transfer wealth from our pockets to the federal government and from the
federal government to the bankers.
#8 Within 20 years of the creation of the Federal Reserve, the U.S. economy was plunged into the Great Depression.
#9 If you can believe it, there have been 10 different economic recessions
since 1950. The Federal Reserve created the “dotcom bubble”, the
Federal Reserve created the “housing bubble” and now it has created the largest bond bubble in the history of the planet.
#10 According to an official government report, the Federal Reserve made 16.1 trillion dollars
in secret loans to the big banks during the last financial crisis. The
following is a list of loan recipients that was taken directly from page 131 of the report…
Citigroup – $2.513 trillion
Morgan Stanley – $2.041 trillion
Merrill Lynch – $1.949 trillion
Bank of America – $1.344 trillion
Barclays PLC – $868 billion
Bear Sterns – $853 billion
Goldman Sachs – $814 billion
Royal Bank of Scotland – $541 billion
JP Morgan Chase – $391 billion
Deutsche Bank – $354 billion
UBS – $287 billion
Credit Suisse – $262 billion
Lehman Brothers – $183 billion
Bank of Scotland – $181 billion
BNP Paribas – $175 billion
Wells Fargo – $159 billion
Dexia – $159 billion
Wachovia – $142 billion
Dresdner Bank – $135 billion
Societe Generale – $124 billion
“All Other Borrowers” – $2.639 trillion
#11 The Federal Reserve also paid those big banks $659.4 million in fees to help “administer” those secret loans.
#12 The Federal Reserve has created approximately 2.75 trillion dollars
out of thin air and injected it into the financial system over the past
five years. This has allowed the stock market to soar to unprecedented
heights, but it has also caused our financial system to become
extremely unstable.
#13 We were told that the purpose of quantitative
easing is to help “stimulate the economy”, but today the Federal Reserve
is actually paying the big banks not to lend out 1.8 trillion dollars in “excess reserves” that they have parked at the Fed.
#14 Quantitative easing overwhelming benefits those
that own stocks and other financial investments. In other words,
quantitative easing overwhelmingly favors the very wealthy. Even Barack Obama has admitted that 95 percent of the income gains since he has been president have gone to the top one percent of income earners.
#15 The gap between the top one percent and the rest of the country is now the greatest that it has been since the 1920s.
#16 The Federal Reserve has argued vehemently in federal court that it is “not an agency” of the federal government and therefore not subject to the Freedom of Information Act.
#17 The Federal Reserve openly admits that the 12 regional Federal Reserve banks are organized “much like private corporations“.
#18 The regional Federal Reserve banks issue shares of stock to the “member banks” that own them.
#19 The Federal Reserve system greatly favors the biggest banks. Back in 1970, the five largest U.S. banks held 17 percent of all U.S. banking industry assets. Today, the five largest U.S. banks hold 52 percent of all U.S. banking industry assets.
#20 The Federal Reserve is supposed to “regulate” the big banks, but it has done nothing to stop a 441 trillion dollar interest rate derivatives bubble from inflating which could absolutely devastate our entire financial system.
#21 The Federal Reserve was designed to be a perpetual debt machine.
The bankers that designed it intended to trap the U.S. government in a
perpetual debt spiral from which it could never possibly escape. Since
the Federal Reserve was established nearly 100 years ago, the U.S.
national debt has gotten more than 5000 times larger.
#22 The U.S. government will spend more than 400 billion dollars just on interest on the national debt this year.
#23 If the average rate of interest on U.S.
government debt rises to just 6 percent (and it has been much higher
than that in the past), we will be paying out more than a trillion
dollars a year just in interest on the national debt.
#24 According to Article I, Section 8 of the U.S. Constitution,
the U.S. Congress is the one that is supposed to have the authority to
“coin Money, regulate the Value thereof, and of foreign Coin, and fix
the Standard of Weights and Measures”. So exactly why is the Federal
Reserve doing it?
#25 There are plenty of possible alternative financial systems, but at this point all 187 nations that belong to the IMF have a central bank. Are we supposed to believe that this is just some sort of a bizarre coincidence?
More at:
http://desiebenthal.blogspot.ch/2013/10/fed-has-ended-end-of-2012-mayan.html
IRS, the Internal Revenue Service, is illegal.
“There are hundreds of court cases where the IRS has sued citizens for tax evasion.
http://www.youtube.com/watch?v=YGAaPjqdbgQ
http://www.youtube.com/watch?v=N331kGvh0U0
http://www.youtube.com/watch?v=YGAaPjqdbgQ
http://freedomtofascism.com
The Federal Mafia exposes every facet of the government’s illegal
enforcement of the income tax – and will convince you that Organized
Crime in America begins with The Federal Government – which is why the
federal government has enjoined me from selling the book, so now I’m
posting it for FREE!
http://www.paynoincometax.com/
…..
The government doesn’t
want you to know what’s in this book, so now you can download it for
FREE! Just right click the button below, to save it on your computer.
Please share it with everyone you know who will read it.
http://video.google.com/videop…..8446177859 …. Irwin Schiff’s Secrets of Living an Income Tax-Free Life – 1:57:40 – Nov 16, 2006
http://video.google.com/videop…..2700134771 …. Irwin Schiff speaks out on the war – 52:14 – Jun 9, 2006
http://www.believe.com.au/Who%20or%20What%20Influences%20your%20Mind.swf
(518) 656-3578 ; Bob Schulz, the chairman of the Foundation that ran the ad.]
These are the major points expressed in a Remonstrance, that was hand
delivered to leaders of the three branches of the federal government
on April 13, 2000, by a group of citizen-delegates representing all 50
states. These grievances concern alleged illegal operations of the federal income tax system and the IRS.
Remonstrance was signed by thousands of citizens, and was delivered as
part of an event sponsored by We The People Foundation for
Constitutional Education, a not-for-profit corporation dedicated to research and education in matters of taxation & governance.
The 16th amendment to the U.S. Constitution (the “income tax
amendment”) was fraudulently and illegally proclaimed to be ratified in
1913. Exhaustive legal research from both state and national archives
documented conclusively that the amendment did not even come close to
being legally approved by the required number of states. The Courts
have refused to hear this issue.
Stahl’s claim that ratification of the 16th Amendment was fraudulently
certified constitutes a political question , because we could not
undertake independent resolution of this issue without expressing lack
of respect due coordinate branches of government?.” — U.S. v Stahl (1986), 792 F2d 1438
Citizens cannot “voluntarily” file a federal income tax return without
surrendering their 5th amendment right not to bear witness against
themselves. You can be criminally prosecuted for your “voluntary” return.
Schulz, chairman of the Foundation, and Joseph Banister, a former
special agent of the Criminal Investigation Division of the IRS (accompanied by a videographer) delivered copies of the Remonstrance to designated officials of the three branches.
the White House and the Capitol, the delegates had the opportunity to
explain and discuss the contents of the Remonstrance, and to ask that
the government send experts representing the three branches to a
conference to be held in June, where those experts could debate the tax
issues with a group of researchers invited by the Foundation.
officials the delegates delivered the Remonstrance to were: At the
White House-Jason Furman, Senior Director and Senior Economic Advisor
of the National Economic Council; at the Capitol-Dr. William Koetzle,
Legislative Director for Speaker Hastert, and Keith Hennessey, Policy
Director for Senate Majority Leader Lotte.
on June 2nd the White House reneged on the promises it made during the
April 13th meeting. As with three previous conferences, the government
has again refused to debate the grievances. Jason Furman told Robert
Schulz, “The legality of the income tax is not a high priority item at
the White House, and we will not participate in any conference on the
subject.”
the government had valid counter-arguments to the Remonstrance, it
should be a simple matter to clarify the law, provide the appropriate
regulatory references and promptly settle the matter. Our government’s repeated avoidance of these debates should speak volumes.
this, the 224th birth celebration of our one Nation under God, the We
The People Foundation offers the following facts, internet links and a
challenge for each American: Read the facts for yourself. Judge what is
truth. Pass it on.
hope you will join many who now believe that the time has come for our
government and our nation to begin a long-overdue process of public
debates concerning the economic, political and constitutional problems
posed by the true legal restrictions upon our current system of
taxation.
a nation of justice and due process, we cannot tolerate a tax system,
or a government, that seizes our property, sends us to prison and
induces fear in our hearts — while refusing to provide us basic proof
of their legal authority, clearly written tax codes and unambiguous
legal rulings on Constitutional and legal issues concerning the income
tax.
pray that you be convinced that nothing less than our freedoms, our
property and our Republic are at stake. The Soul of America needs
illumination. Please join us.
issue of the fraudulent ratification of the 16th amendment has never
been decided by a court of law. The courts have instead tossed the issue
into the lap of Congress as a “political question,” even though fraud
is a clear issue for judicial review, not a political question.
brief report printed by the Congressional Research Service in 1985
states up front that, “The report does not attempt to rebut specific
factual allegations?.” It then goes on to make the astonishing assertion
that the actions of a government official must be presumed to be
correct and cannot be judged or overturned by the courts! (John Ripy, “Ratification of the Sixteenth Amendment.” CRS, 1985.)
attorney speaking for Senator Orin Hatch in 1984 offered to pay former
tax investigator William Benson a fortune not to publish his research
proving that the 16th amendment did not even come close to being
legally ratified by the required number of states in 1913.
Knox, Secretary of State from 1909 to 1913 during the Taft
administration, proclaimed the 16th amendment to be ratified just a few
days before he left office in 1913, to make way for the Wilson
administration, even though he knew it had not been legally ratified. Philander
Knox had for many years been the primary attorney for the richest men
in America, including Carnegie, Rockefeller, Morgan and the
Vanderbilts. He had created for them the largest cartel in the world,
then was appointed, at their request, as Attorney General in the
McKinley/Roosevelt administrations, where he refused to enforce the
Sherman anti-trust laws against the cartel he had just created.
income tax amendment was pushed through Congress in 1909 by Sen.
Nelson Aldrich, father-in-law of John D. Rockefeller, Jr. and
grandfather and namesake of Nelson A. Rockefeller, and would not have
been ratified if Knox had not fraudulently proclaimed it so.
Kentucky’s legislature rejected the amendment, but Knox counted
Kentucky as having approved it. Example: Oklahoma’s legislature changed
the amendment’s wording so that it meant just the opposite of what was
submitted to the states by Congress, but Knox counted Oklahoma as
approving the amendment. Minnesota did not submit any results or copy of
their vote to Knox, yet he counted Minnesota as approving the
amendment.
scholars have agreed that if any state violated provisions of its own
state constitution in the ratification process, its approval would be
null and void. At least 20 states were guilty of serious violations of
their constitutions. For example, Tennessee’s constitution provided that
the state legislature could not act upon any proposed amendment to the
U.S. Constitution submitted by Congress until after the next state
legislative elections. Yet the Tennessee legislature acted on the
proposed 16th amendment the same month it was received and before any
elections.
have been extraordinarily unwilling to allow defendants in “failure to
file” cases to present evidence or testimony of expert researchers
regarding the constitutionality of the 16th amendment.
have been acquitting defendants in failure-to-file income tax return
cases due to lack of demonstrable evidence that there is any law or
regulation that requires it.
increasing number of employers have stopped withholding taxes from
their workers, and stopped filing W-2s and 1099s for the same reason.
one is a foreigner working in the U.S., or a U.S. citizen earning
money abroad, one is not liable for the federal income tax.
OMB Number on Form 1040 is cross-referenced in the Code of Federal
Regulations to the section covering taxes by resident aliens, which,
therefore, doesn’t apply to most Americans.
to an inquiry by a constituent who was a tax consultant, Sen. Daniel
Inouye told him that based on research performed by the Congressional
Research Service, no provision of the Internal Revenue Code requires an
individual to pay income taxes. He then went on to warn that Section
7201 sets forth numerous penalties for not paying income taxes owed.
However —
failure-to-file law applies to alcohol-tobacco-firearms taxes,
(Section 7201), not to income taxes, and convictions are based on the
mis-application of the alcohol-tobacco- firearm regulations.
law requires employees to provide a Social Security Number to an
employer, nor for an employer to demand one from an employee.
10th Circuit Court of Appeals has ruled that the filing of an income
tax return (Form 1040) and the information on the 1040 is not
compelled, and, therefore, the principle that no one may be forced to
waive their 5th amendment rights in order to comply with a law is not
applicable to federal income tax returns.
[5th Amendment] privilege protects against compelled testimonial
communications?.” U.S. v Conklin (1994), WL 504211 (10th Cir. Colo.)
Benson’s detailed legal research exposing the FRAUDULENT RATIFICATION
of the 16th Amendment. * Buy his 2-volume report!
agent quits, in 1999, because the IRS refused to rebut his research
showing the illegal status of the income tax system *Free viewing of
report.
research on tax, constitutional issues. {The website is now under
federal court injunction, which they proudly display! — see below.}
1-800-794-1791
Schiff’s site. Author & Lecturer on income taxes. {Their federal
court order was suspended! Is this a great country or what?}
ADVERTISEMENT IS OUR “CALL TO ACTION.” IF WHAT YOU HAVE JUST READ MADE
YOU ANGRY (WITH THEM OR WITH US), OR IF YOU JUST WANT TO KNOW MORE,
CONTACT US. WE’LL SEE THAT YOU ARE UPDATED REGULARLY ON THIS IMPORTANT
ISSUE. GO TO <www.givemeliberty.org> AND CLICK ON ” UPDATE ME ON INCOME TAX ISSUE.” THOMAS JEFFERSON SAID IT BEST: “WHEN
THE GOVERNMENT FEARS THE PEOPLE, YOU HAVE LIBERTY. WHEN THE PEOPLE
FEAR THE GOVERNMENT, YOU HAVE TYRANNY.” Sponsored by the “We The People
Foundation for Constitutional Education, Inc.” www.givemeliberty.org ;
http://www.youtube.com/watch?v=x-CrNlilZho
For
the New World Order, a world government is just the beginning. Once in
place they can engage their plan to exterminate 80% of the world’s
population, while enabling the “elites” to live forever with the aid of
advanced technology. For the first time, crusading filmmaker ALEX JONES
reveals their secret plan for humanity’s extermination: Operation
ENDGAME.
Jones chronicles the history of the global elite’s
bloody rise to power and reveals how they have funded dictators and
financed the bloodiest wars—creating order out of chaos to pave the way
for the first true world empire. * Watch as Jones and his team track
the elusive Bilderberg Group to Ottawa and Istanbul to document their
secret summits, allowing you to witness global kingpins setting the
world’s agenda and instigating World War III. * Learn about the
formation of the North America transportation control grid, which will
end U.S. sovereignty forever. * Discover how the practitioners of
the pseudo-science eugenics have taken control of governments worldwide
as a means to carry out depopulation. * View the progress of the
coming collapse of the United States and the formation of the North
American Union.
FED ? the Pepper McFadden Bill in 1927
[Public—No. 639—69th Congress]
[H. R. 2]
An Aot To further amend the national banking laws and tfce
Federal Reserve Aot, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled} That the Act
entitled “An Act to provide for the consolidation of national
banking associations,” approved November 7, 1918, be amended by
adding at the end thereof a new section to read as follows:
“ Sec. 3. That any bank incorporated under the laws of any State,
or any bank incorporated in the District of Columbia, may be
consolidated with a national banking association located in the
same county, city, town, or village under the charter of such
national banking association on such terms and conditions as may
be lawfully agreed upon by a majority of the board of directors of
each association or bank proposing to consolidate, and which agree*
ment shall be ratified and confirmed by the affirmative vote oi the
shareholders of each such association or bank owning at least two*
thirds of its capital stock outstanding, or by a greater proportion
of such capital stock in the case of such State bank if the laws of
the State where the same is organized so require, at a meeting to
be held on the call of the’directors after publishing notice of the
time, place, and object of the meeting for four consecutive weeks
in some newspaper of general circulation published in the place
where the said association or bank is situated, and in the legal*
newspaper for the publication of legal notions or advertisements,
i f any such paper has been designated by the rules of a court in
the county where such association or bank is situated, and if no
newspaper is published in the place, then in a paper of general
circulation published nearest thereto, unless such notice of meeting
is waived in writing by all stockholders of any such association
or bank, and after sending such notice to each shareholder of-record
by registered mail at least ten days prior to said meeting, but any1
additional notice shall be given to the shareholders of such State
bank which may be required by the laws of the State where the
same is organized. The capital stock of such consolidated association
shall not be less than that required under existing law for the
organization of a national banking association in the place in which
such consolidated association is located; and all the rights, franchises,
and interests of such State or District bank so consolidated.. with a
national banking association in and to every species of property,
real, personal, and mixed, and choses in action thereto belonging,
shall De deemed to be transferred to and vested in such national
banking association into which it is consolidated without any deed
or other transfer, and the said consolidated national banking association
shall hold and enjoy the same and all rights of property,
franchises, and interests including the right of succession as trustee,
executor, or in any other fiduciary capacity in the same manner ana
to the same extent as was held and enjoyed by such State or District
Digitized for FRASER
http://fraser.stlouisfed.org/
Federal Reserve Bank of St. Louis
2 [P u b . f>39.)
bank so consolidated with such national banking association. When
such consolidation shall have been effected and approved by the comptroller
any shareholder of either the association or of the State or
District bank so consolidated, who has not voted for such consolidation,
may give notice to the directors of the consolidated association
within twenty days from the date o f the certificate of approval of the
comptroller that he dissents from the plan of consolidation as
adopted and approved, whereupon he shall be entitled to reeeive the
value of the shares so held by him, to be ascertained by an appraisal
mode by a committee o f three persons, one to be selected by the
shareholder, one by the directors o f the consolidated association, and
the third by the two so chosen; and in case the valuejso fixed shall
Currency, who cauge a reappraisal to be made, which shall be
final and binding; and the consolidated association shall pay the
expenses o f reappraisal, and the value as ascertained by such
appraisal or reappraisal shall be deemed to be a debt due and shall
be forthwith paia to said shareholder by said consolidated association,
and the shares so paid for shall be surrendered and, after due
ftotice; sold at public auction within thirty days after the final
appraisement provided for in this Act; and i f the shares so sold at
public auction shall be sold at a price greater than the final
appraised value, the excess in such sale price shall be paid to the
said shareholder; and the consolidated association shall have the
right to purchase puch shares at public auction, i f it is the highest
bidder therefor, for the purpose of reselling such shares within
thirty days thereafter to such person or persons and at such price
as it« board of directors by resolution may determine. The liquidation
of such shares of stock in any State bank shall be determined
in the manner prescribed by the law of the State in such cases i f
such provision is made in the State law; otherwise as hereinbefore f>rovided. No such consolidation shall be in contravention of the
aw of the State under which such bank is incorporated.
u The Avoi ds 4 State bank,’ 4 State banks,’ 4 bank/ or 4 banks,’ a$
used in this section, shall be held to include trust companies, savings
banks, or other such corporations or institutions carrying on tho
banking business under the authority of State laws.”
Sec. 2. (a) That section 5130 of the Revised Statutes of th$
United States, subsection “ second n thereof as amended, be amended
to read as follows:
44 Second. To have succession from the date of the approval of
this Act, or from the date of its organization if organized after such
date of approval until such time as it be dissolved by the act o f its
shareholders owning two-thirds of its stock, or until its franchise
becomes forfeited by reason of violation of law, or until terminated
by either a general or a special Act of Congress or until its affairs
be placed in the hands of a receiver and finally wound up by him.”
(b) That section 5136 of the Revised Statutes o f the United
States, subsection “ seventh ” thereof, be further amended by adding
at the end of the first paragraph thereof the following:
“ Provided, That the business of buying and selling investment
securities shall hereafter be limited to buying and selling without
Digitized for FRASER
http://fraser.stlouisfed.org/
Federal Reserve Bank of St. Louis
recourse marketable obligations evidencing indebtedness of any
person, copartnership, association, or corporation, in the form of
bonds, notes and/or debentures, commonly known as investment
securities, under such further definition of the term ‘ investment
securities ’ as may bv regulation be prescribed by the Comptroller
of the Currency, ana the total amount of such investment securities
of any one obligor or maker held by such association shall at no
time exceed 25 per centum of the amount of the capital stock of such
association actually paid in and unimpaired and 25 per centum of
its unimpaired surplus fund, but this limitation as to total amount
shall not apply to obligations of the United States, or general
obligations or any State or of any political subdivision thereof, or
obligations issued under authority of the Federal Farm Loan Act:
And provided further, That in carrying on the business commonly
known as the safe-deposit business no such association shall invest
in the capital stock o f a corporation organized under the law of jtny
State to conduct a safe-deposit business in an amount in excess of
15 per centiim of the capital stock of such association actually paid
in and unimpaired and 15 per centum of its unimpaired surplus,99
so that the subsection as amended shall read as follows:
“ Seventh. To exercise by its board of directors, or duly authorized
officers or agents, subject to law, all such incidental powers as shall
be necessary to carry on the .business of banking; oy discounting
and negotiating promissory notes, drafts, bills of exchange, and
other evidences *f debt; by receiving deposits; by buying and
selling exchange, ooin, and bullion; by loaning money on personal
security; and by obtaining, issuing, and circulating notes according
to the provisions of this title: Prmnded, That the business of buying
and selling investment securities shall hereafter be limited to buying
and selling without recourse marketable obligations evidencing
indebtedness of any person, copartnership, association, or corporation,
in the form at bonds, notes and/or debentures, commonly
known as investment securities, under such fifrther definition of the
term 4 investment securities ’ as may by regulation be prescribed by
the Comptroller of the Currency, and the total amount of sucn
investment securities of any one obligor or maker held by such
association shall at no time exceed 25 per centum of the amount of
the capital stock of such association actually paid in and unimpaired
and 25 per centum of its unimpaired surplus fund, but this limitation
as to total amount shall not apply to obligations of the United
States, or general obligations of any State or of any political
subdivision thereof, or obligations issued under authority of the
Federal Farm Loan Act: And provided further, That in carrying
on the business commonly known as the safe deposit business no
such association shall invest in the capital stock of a corporation
organized under the law of any State to conduct a safe deposit
business in an amount in excess of 15 per centum of the capital
stock of such association actually paid in and unimpaired and 15
per centum of its unimpaired surplus.
“ But no association shall transact any business except such as is
incidental and necessarily preliminary to its organization, until it
has been authorized by the Comptroller of the Currency to commence
the business of banking.”
(Pub. « t j 8
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S ec, 3. That section 0187 of the Revised Statute* o l the United
Staten, subsection “ First ” thereof, be amended to rettd as follows:
“ First Such m shall b« necessary for its accommodation in the
transaction of its business.”
Sbo. 4. That section 5188 o f tho Revised Statutes o f the ITnited
States, as amended, be amended to read as follows:
“ Skc. 5138. No national banking association shall be organized
with a less capital than $100,000, except that such associations with
a capital of not less than $50,000 may, with the approval of the
Secretary of the Treasury, be organized in any place Che population
of which does not excced six thousand inhabitants, aikf except
that such associations with a capital of not less than $25,000 may,
with die sanction of the Secretary of tile Treasury, be organized fn
any plaoe the population of which does not exceed three thousand
inhabitants. No such association shall be organized in a city the
population of which exceeds fifty thousand persons with a capital
of less than $200,000, except that in the outlying districts of such a
city where the State laws permit the organization of State banks
with a capital of $100,000 or less, national banking associations now
organized or hereafter organized may, with the approval of the
Comptroller of the Currency, have a capital of not less than
$100,000.”
See. 5. That section 6142 of the Revised Statutes of the United
States, as amended, be amended to read as follows:
“ Sec. 5142. Any national banking association may, with the
approval of the Comptroller of the Currency, and by a vote of
shareholders owning two-thirds o f the stock of such associations,
increase its capital stock to any sutn approved by the said comptroller,
but no increase in capital shall be valid until the whole
amount of such increase is paid in and notice thereof, duly acknowledged
before a notary public by the president, vioe president, or
cashier of said association, has been transmitted to the Comptroller
of the Currency and his certificate obtained specifying the amount
of such increase in capital stock and his approval thereof, and
that it has been duly paid in as part of the capital of such association:
Provided, hon-cner, That a national banking association mav, with
the approval of the Comptroller of the Currency, and by me vote
of shareholders owning two-thirds of the stock of such association,
increase its capital stock by the declaration of a stock dividend,
provided tlmt the surplus of said lysociation, after the approval of
the increase, i-hall be at least equal to 20 per centum of the capital
stock as increased. Such increase shall not be effective until a
certificate certifying to such declaration of dividend, signed by the
president, vice president, or cashier of said association and duly
acknowledged before a notary public, shall have been forwarded
to the Comptroller of the Currency and his certificate obtaihed specifying
the amount of such increase of capital stock by stock dividend,
and his approval thereof.”
Sr.o. 6. That section 5150 of the Revised Statutes of the United
States be amended to read as follows:
“ Sec. 5150. The president of the bank shall be a member of the
board and shall be the chairman thereof, but the board may designate
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a director in lieu of the president to be chairman of the board,
who shall perform such duties as may be designated by the board.”
Seo. 7. That section 5155 of the Kevised Statutes of the United
States be amended to read as follows:
“ S ec, 5155. The conditions upon which a national banking association
may retain or establish and operate a branch or branches are
the following:
“ (a) A national banking association may retain and operate
such branch or branches as it may have in lawful operation at the
date of the approval of this Act, and any national banking association
which has continuously maintained and operated not more than
one branch for a period of more than twenty-five years immediately
preceding the approval of this Act may continue to maintain and
operate such branch.
“ (b) I f a State bank is hereafter converted into or consolidated
with a national banking association, or if two or more national banking
associations are consolidated, such converted or consolidated
association may, with respect to any of such banks, retain and operate
any of their branches which may have been in lawful operation
by any bank at the date of the approval of the Act.
“ (c) A national banking association may, after the date of the
approval of this Act, establish and operate new brandies within the
limits of the city, town, or village in which said association is situated
if such establishment and operation are at the time permitted to
State banks by the law of the State in question.
“ (d) No branch shall be established after the date of the approval
of tnis Act within the limits of any city, town, or village of which
the population by the last decennial census was less than twenty-five
thousand. No more than one such branch may be thus established
where the’population, so determined, of such municipal unit does not
exceed fifty thousand.; and not more than two such branches where
the population does not exceed one hundred thousand. In any such
municipal unit where the population exceeds one hundred thousand
the determination of the number of branches shall be within the
discretion of the Comptroller of the Currency.
“ (e) No branch ot any national banking association shall be
established or moved from one location to another without first
obtaining the consent and approval of the Comptroller of the
Currency.
“ ( f) The term ‘ branch’ as used in this section shall be held to
include any branch bank, branch office, branch agency, additional
office, or any branch place of business located in any State or Territory
of the United States or in the District of Columbia at which
deposits are received, or checks paid, or money lent.
“ (g) This section shall not be construed to amend or repeal section
25 of the Federal Reserve Act, as amended, authorizing the
establishment by national banking associations of branches in foreign
countries, or dependencies, or insular possessions of the United
Stilt es.
“ (h) The words ‘ State bank,’ ‘ State banks,’ ‘ bank,’ or ‘ banks,’
as used in this section, shall be held to include trust companies,
savings banks, or other such corporations or institutions carrying
on the banking business under the authority of State laws.”
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Sm & TJv»t section 5190 of the Reyised Statute* ot tb» United
States be amended to read m follows:
“ S e c . 6190. The general business of each national banking
association shall be transacted in the place specified in its
organisation certificate and in the brunch or branches, i l any.
established or maintained by it in accordance with the provision* o f
section 5155 of the Revised Statutes, as amended by this Act.”
Sec. 9, That the first paragraph of action 9 of the Federal
Reserve Act, as amended, be amended sp tut to read as follows:
“ Sec. 9. Any hank incorporated by special law o i any State, or
organized under the general laws of any State or of the United
States, desiring to become a member o f th» Federal reserve system,
may make application to the Federal Reserve Board, under such
rules and regulations as it may prescribe, for th» right to subscribe
to the stock of the Federal reserve bank organized within the district
in which the applying’ bank is located, Such application shall be
for the same amount of stock that the applying bank would be
required to subscribe to as a national bank. The. Federal Reserve
Roard* subject to the provisions of this Act and to such conditions
as it may prescribe pursuant thereto niuy permit the applying bank
to become a stockholder of such Federal reserve bank.
“ Any such State bank which, at the date of the approval of this
Act, has established and is operating a branch or branches in
conformity with the State law, may retain and- operate the same
while remaining, or upon becoming a stockholder of such Federal
reserve bank; but no such State bank may retain or acquire stock
in a Federal reserve bank except upon relinquishment of any branch
or branches established after the date of the approval of this Act
beyond the limits of the city, town, or village in which the parent
bank is situated,”
Sec. 10, That section 5200 of the Revised Statutes of the United
States, as amended, be amended to read a? follows:
u Sec, 5200. The total obligations to any national banking association
of any person, copartnership, association, or corporation shall
at no time exceed 10 per centum o f the amount of the capital stock
of such association actually paid in and unimpaired and 10 per
centum of its unimpaired surplus fund. The tem ‘ obligations ’
shall mean the direct liability of the maker or acceptor of paper
discounted with or sold to such association and the liability of the
indorser, drawer, or guarantor who obtains a loan from or discounts
paper with or sells paper under tiis guaranty to such association
and shall include in the case o f obligations of a copartnership or
association the obligations of the several members thereof. Sueh
limitation of 10 per centum shall be subject to the following
exceptions:
“ (1) Obligations in the form of drafts or bills of exchange
drawn in good faith against actually existing values shall not be
subject under this section to any limitation based upon such capital
and surplus.
“ (2) Obligations arising out o f the discount o f commercial or
business paper actually owned by the person, copartnership, association,
or corporation negotiating the same shall not be subject under
this section to any limitation based upon such capital and surplus.
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“ (8) Obligations drawn in good faith against actually existing
value* and secured by goods or commodities in process o f shipment
shall not be subject under tliia section to any limitation based upon
•uch capital and surplus.
“ (4) Obligations as indorwr or guarantor of notes, other than
commercial or business paper excepted under (2) hereof, having a
maturity of not more than six months, and owned by the person,
Corporation, association, or copartnership indorsing and negotiating
the same, shall be subject under this section to a limitation of 15
per centum of such capital and surplus in addition to such 10 per
centum of such capital and surplus.
“ (5) Obligations in the form of banker’s acceptances of other
banks of the kind described in section 18 of the Federal Reserve
Act, shall not be subject under this section to any limitation based
upon such capital and surplus*
“ (6) Obligations o f any person, copartnership, association or
corporation, in the form of notes or drafts secured by shipping
documents, warehouse receipts or other such documents transferring
pr securing title covering readily marketable nonpenshable staples
when such property is fully covered by insurance, i f it is customary
to insure such staples, shall be subject under this seetion to a limitation
o f 15 per centum of such capital and surplus in addition to
such 10 per centum of such capital and surplus when the market
value of such staples securing such obligation is not at any time less
than 115 per centum of the face amount of such obligation, and to an
additional increase o f limitation of 5 per centum of such capital and
surplus in addition to such 25 per centum of such capital and surplus
when the market value of such staples securing such additional
obligation is not at any time less than 120 per centum of the face
amount of such additional obligation, and to a further additional
increase of limitation of 5 per centum of such capital and surplus
in addition to such 30 per centum of such capital and surplus
when the market value of such staples securing such additional
obligation is not at any time less than 125 per centum of the face
amount of such additional obligation, and to a further additional
increase of limitation of 5 per centum of such capital and surplus
in addition to such 35 per centum of such capital and surplus when
the market value o f such staples securing sucn additional obligation
is not at any time less than 130 per centum of the face amount of such
additional obligation, and to a further additional increase of limitation
of 5 per centum of such capital and surplus in addition to such
40 per centum of such capital and surplus when the market value
of such staples securing such additional, obligation is not at any
time less than 135 per centum of the face amount of such additional
obligation, and to a further additional increase of limitation of
5 per centum of such capital and surplus in addition to such 45
per centum of such capital and surplus when the market value of
such staples securing such additional obligation not at any time
less than 140 per centum of the face amount of such additional
obligation, but this exception shall not apply to obligations of any
one person* copartnership, association or corporation arising from
the same transactions and/or secured upon the identical staples for
more than ten months.
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8
“ (7) Obligations of any person, copartnership, association, or
corporation in the forip of notes or drafts secured bv shipping
documents or instruments transferring or securing title covering
livestock or giving a lien on livestock when the market value ox
the livestock securing the obligation is not at any time less than
115 per centum of the face amount of the notes covered by such
documents shall be subject under this section to a limitation of
15 per centum of such capital and surplus in addition to such 10
per centum of such capital and surplus.
“ (8) Obligations of any person, copartnership, association, ^ or
corporation m the form of notes secured by not less than a like
amount of bonds or notes of the United States issued since April
24, 1917, or certificates of indebtedness of the United States, snail
(except to the extent permitted by rules and regulations prescribed
by the Comptroller of the Currency, with the approval of the
Secretary or the Treasury) be subject under this section to a
limitation of 15 per centujpi of such capital and surplus in addition
to such 10 per centum of such capital and surplus.”
S ec. 11. That section 5202 of the Revised Statutes of the United
States as amended be amended by adding at the end thereof a new
paragraph to read as follows:
“ Eighth. Liabilities incurred under the provisions of section 202
of Title II of the Federal Farm Loan Act, approved July 17, 1916,
as amended by the Agricultural Credits Act or 1923.”
Seo. 12. That section 5208 of the Revised Statutes of the United
States as amended be amended by striking out the words “ or who
shall certify a check before the amount thereof shall have been
regularly entered to the credit of the drawer upon the books of the
bank,” and in lieu thereof inserting the following: “ or who shall
certify a check before the amount thereof shall have been regularly
deposited in the bank by the drawer thereof,” so that the section
as amended shall read as follows:
“ S eo. 5208. It shall be unlawful for any officer, director, agent,
or employee of any Federal reserve bank, or any member bans as
defined in the Act. of December 23, 1913, known as the Federal
Reserve Act, to certify any check drawn upon such Federal reserve
bank or member bank unless the person, firm, or corporation drawing
the (‘heck has on deposit with such Federal reserve bank or member
bank, at the time such check is certified, an amount of money not
less than the amount specified in such check. Any check so
certified by a duly authorized officer, director, agent, or employee
shall be a good and valid obligation against such Federal reserve
bank or member bank; but the act of any officer, director, agent, or
employee of any such Federal reserve bank or member bank in
violation of this section shall, in the discretion of the Federal
Reserve Board, subject such Federal reserve bank to the penalties
imposed by section 11, subsection (h) of the Federal Reserve Act,
and shall subject such member bank, if a national bank, to
the liabilities and proceedings on the part of the Comptroller of
the Currency provided for in section 5234, Revised Statutes,
and shall, in the discretion of the Federal Reserve Board, subject
any other member bank to the penalties imposed by section 9
ol* said Federal Reserve Aet for the violation of any of the provi-
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•tow of rtrfd Act. Any ofllcor, director, agent, or employee of any
SeAw*! reserve bank or member tank who snail willfully violate
lb* provisions of this weetion, or who shfltll resort to any device,
or’*eeelv« any fictitious obligation, directly or collaterally, in order
to •vide the provMons thereof, or who shall certify a check
%e#ord the amount thereof ahall have been regularly deposited in tho
bank by the drawer thereof, shall be deemed guilty of a misdemeanor
and ctMli, on conviction thereof in any district court of the United
States, be fined not more than $5,00(), or shall be imprisoned for not
more than five years, or both, in the discretion of tne court.”
Sw. 18. That section 5211 of the Revised Statutes of the United
IStfttea as amended be amended to read as follows:
*8»c. 5211. Every association shall make to the Comptroller of
the Currency not leas than three reports during each year, according
to the form which may be prescribed by him, verified by the oath or
affirmation of the president, or of the cashier, or of a vice president,
Or of an assistant cashier o f the association designated by its board
of directors to verify such reports in the absence of the president
and cashier, taken before a notary public properly authorised find
■commissioned by the State in which such notary resides and tho
association is located, or any other officer having an official seal,
anthomed in such State to administer oaths, ana attested by the
signature of at least three of the directors. Each such report shall
exhibit, in detail and under appropriate heads, the resources and
liabilities of the association at the close of business on any past day
by him specified, and shall be transmitted to the comptroller within
five days after the receipt of a request or requisition therefor from
him; and the statement of resources and liabilities, together with
acknowledgment and attestation in the same form in which it is
made to the comptroller, shall be published in a newspaper published
in the place where such association is established, or if there is rio
newspaper in the place, then in the one published nearest thereto in
the same county* at the expense of the association; and such proof
o f publication shall be furnished as may be required by the comptroller.
The comptroller shall also have power to calf for special
reports from any particular association whenever in his judgment
th® same are necessary in order to obtain a full and complete
knowledge of its condition.”
Sec. 15. That section 22 of the Federal Reserve Act, subsection
(a), paragraph 2 thereof, be amended to read as follows:
“ (a) No member bank and no officer, director, or employee thereof
shall hereafter make any loan or grant any gratuity to any bank
examiner. Any bank officer, director, or employee violating this
provision dhall lie deemed guilty of a misdemeanor and shall bo
imprisoned not exceeding one year, or fined not more than $5,000,
or both, and may be fined a further sum equal to the money so
loaned or gratuity given.
“Any examiner Or assistant examiner who shall accept a loan or
gratuity from any bank examined by him, or from an officer,
director, or employee thereof, or who shall steal, or unlawfully take,
or unlawfully conceal any money, note, draft, bond, or security or
any other property of value in the possession of any memt>or bank or
from any safe deposit box in or adjacent to the” premises of such
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bank, shall be deemed guilty of a misdemeanor and Bfrall, upon
conviction thereof m any district court of the United States, be
imprisoned for not exceeding one year, or fined not more than
$5,000, or both, and may be fined a farther sum equal to the money
so loaned, gratuity given, or property stolen, and shall forever
thereafter be disqualified from holding office as a national bank
examiner.”
Sec. 16. That section 24 of the Federal Reserve Act be amended
to read as follows:
“ Sec. 24. Any national banking association may make loans
secured by first lien upon improved real estate, including improved
farm land, situated within its Federal reserve district or within a
radius of one hundred miles of the place in which such bank is
located, irrespective of district lines. A loan secured by real estate
within the meaning of this section shall be in the form of an
obligation or obligations secured by mortgage, trust deed, or other
such instrument upon real estate when the entire amount o f such
obligation or obligations is made or is sold to such association. The
amount of any-such loan shall not exceed 50 per centum of the
actual value of the real estate offered for security, but. no such loan
upon such security shall be made for a longer term- than five years.
Any such bank may make such loans in an aggregate sum including
in such aggregate any such loans on which it is liable as indorser or
guarantor or otherwise equal to 25 per centum of the amount of the
capital stock of such association actually paid in and unimpaired
and 25 per centum of its unimpaired surplus fund, or to one-half
of its savings deposits, at the election of the association, subject to
the general limitation contained in section 5200 of the Revised
Statutes of the United States. Such banks may continue hereafter
as heretofore to receive time and savings deposits and to pay
interest on the same, but the rate of interest which such banks
may pay upon suoh time deposits or upon savings or other deposits
shall not exceed the maximum rate authorized by law to be
paid upon 6uch deposits by State banks or trust companies organized
under the laws o f the State wherein such national banking association
is located.”
Seo. 16. That section 5139 of the Revised Statutes of the United
States be amended by inserting in the first sentence thereof the
following words: ‘‘ or into shares of such less amount as may be
provided in the articles: o f association ” so that the section as amended
shall read as follows:
“ Sec. 5139. The capital stock of each association shall be divided
into shares of $100 each, or into shares o f such less amount as may
be provided in the articles of association, and be deemed personal
property, and transferable on the books of the association in such
manner as may be prescribed in the by-laws or articles of association.
Every person becoming a shareholder by such transfer shall, in
proportion to his shares, succeed to all rights and liabilities of the
prior holder of such shares; and no change shall be made in the
articles of association by which the rights, remedies, or security of
the existing creditors of the association snail be impaired.”
Sf.c. 17. That section 5146 of the Revised Statutes of the United
States as amended be amended by inserting in lieu of the second
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(Pub. m. 11
sentence thereof the following: “ Evenr director must, own in his
own right shares of the capital stock of the association of which he
is a director the aggregate par value of which shall not be less than
$1,000, unless the capital of the bank shall not exceed $25,000 in
which case he must own in his own right shares of such capital
stock the aggregate value of which shall not be less than $500,” so
that the section as amended shall read as follows:
a Sec. 5146. Every director must during his whole term of service,
be a citizen of the United States, and at least three-fourths of
the directors must have resided in the State, Territory, or District
in which the association is located, or within fifty miles of the location
of the office of the association, for at least one year immediately
preceding their election, and must be residents of such State or
within a fifty-mile territory of the location of the association during
their continuance in office. Every director must own in his own
right shares of the capital stock of the association of which he is a
director the aggregate par value of which shall not be less than
$1,000, unless the capital of the bank shall not exceed $25,000 in
which case he must own in. his own right shares of such capital stock
the aggregate par value of which shall not be less than $500. Any
director who ceases to be the owner of the required number of shares
of the stock, or who becomes in any other manner disqualified, shall
thereby vacate his place.”
Skc. 18. That the second subdivision of the fourth paragraph of
section 4 of the Federal Reserve Act be amended to read as follows:
“ Second. To have succession after the approval of this Act until
dissolved bv Act of Congress or until forfeiture of franchise for
violation of law.”
Sec. 19. That section 3 of the Federal Reserve Act, as amended,
is further amended by adding at the end thereof the following:
44 The Federal Reserve Board may at any time require any Federal
Reserve Bank to discontinue any “branch of such Federal Reserve
Bank established under this section. The Federal IWerve Bank
shall thereupon proceed to wind up the business of such branch bank,
subject to such rules and regulations as the Federal Reserve Board
may prescribe.”
Approved, February 25, 1927.
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