Part I. Banking and Monetary Reform

SECTION 6. REFORMATION OF THE FEDERAL RESERVE BANKS
 

(A) The word “Federal” within the titles of the twelve existing Federal Reserve Banks is hereby changed to “United States Treasury” as “Federal Reserve Bank of New York” becomes “United States Treasury Reserve Bank of New York.”

(B) At the written request of the Board of Governors of the Treasury Reserve System, the Secretary of the Treasury is hereby directed to authorize the production of United States Treasury credit-notes for the Treasury Reserve Account in sufficient quantity to complete the exchanges or replacements specified by this Act. On request of the Board of Governors or at the discretion of the Secretary of the Treasury, treasury credit-notes may be produced in any desired denominations larger than $100.00 provided that their use is restricted to the Treasury Reserve Banks, the Treasury Reserve Account, and the General Account of the United States Treasury.

(C) All securities, notes, bonds or other evidences of indebtedness, whatever the source, type or issue, held by the twelve United States Treasury Reserve Banks shall be delivered to the Office of the Director of the Board of Governors of the Treasury Reserve System and exchanged for United States Treasury credit-notes from the Treasury Reserve Account at an equivalent face value of one for one. These credit-notes may be used for the ordinary operating expenses of the Treasury Reserve Banks.

(D) All evidences of indebtedness and obligations of the United States other than United States Treasury credit-notes, whatever the type or issue, received in the Office of the Director of the Treasury Reserve Board of Governors will be delivered to the Secretary of the Treasury whereupon they shall be canceled out of existence.

(E) All United States Treasury Reserve Banks are hereby declared to be Treasury agents. The Secretary of the Treasury shall distribute the standard gold and silver coin of the United States among the twelve Treasury Reserve Banks as it becomes available to the Treasury. Any individual may trade treasury credit-notes for standard gold and silver coin at any Treasury Reserve Bank at the current exchange-ratio on an as available basis.

(F) United States Treasury Reserve Banks shall continue their normal operations under the Office of the Comptroller of the Currency except that they are prohibited from purchasing or holding for their own account income-producing obligations of the United States or those of other nations. This Act does not change their present clearinghouse functions.

(G) The Office of the Comptroller of the Currency is hereby directed to revise or create, subject to the provisions of this Act and the approval of Congress, the necessary policies, procedures and regulations to promote the normal operation of the United States Treasury Reserve Banks. Fees charged for clearinghouse functions and other such banking services at all Treasury Reserve Banks will be uniform and approved by the Comptroller of the Currency. Treasury Reserve Banks shall not issue checks against nor otherwise make dispersals from accounts which contain no funds.

Read Explanation and Details for Section 6.