APPENDIX TO FEDERAL RESERVE ACT. ROVISIONS OF OTHER ACTS OF CONGRESS WHICH AFFECT THE FEDERAL RESERVE SYSTEM. INTERLOCKING BANK DIRECTORATES. ayton Antitrust Act, approved October 15, 1914, as amended by the Kern amendment, approved May 15, 1916, as amended by the Act approved May 26, 1920.1 SEC. 8. That from and after two years from the date the approval of this Act no person shall at the same me be a director or other officer or employee of more an one bank, banking association, or trust company ganized or operating under the laws of the United tates, either of which has deposits, capital, surplus, and divided profits aggregating more than $5,000,000; and o private banker or person who is a director in any ank or trust company organized and operating under he laws of a State, having deposits, capital, surplus, nd undivided profits aggregating more than $5,000,000, hall be eligible to be a director in any bank or banking ssociation organized or operating under the laws of the United States. The eligibility of a director, officer, or mployee under the foregoing provisions shall be deternined by the average amount of deposits, capital, surlus, and undivided profits as shown in the official statenents of such bank, banking association, or trust comany filed as provided by law during the fiscal year next preceding the date set for the annual election of directors, and when a director, officer, or employee has been elected or selected in accordance with the provisions of this Act t shall be lawful for him to continue as such for one year thereafter under said election or employment. No bank, banking association, or trust company organized or operating under the laws of the United States, in any city or incorporated town or village of more than two hundred thousand inhabitants, as shown by the last preceding decennial census of the United States, shall have as a director or other officer or em Amended by sec. 25 of Federal Reserve Act, as amended Sept. 7, 1916; and amended by ct approved Dec. 24, 1919, amending the Federal Reserve Act, as to corporations engaged in foreign banking and financial operations. See ante, pp. 216 and 221. State banks and trust companies, which have joined the Federal reserve system, or which may contract to join within fifteen days after the passage of this Act. Sec. 28. Section fifty-one hundred and forty-three of the Revised Statutes is hereby amended and reenacted to read as follows: Any association formed under this title may, by the vote of shareholders owning two-thirds of its capital stock, reduce its capital to any sum not below the amount required by this title to authorize the formation of associations; but no such reduction shall be allowable which will reduce the capital of the association below the amount required for its outstanding circulation, nor shall any reduction be made until the amount of the proposed reduction has been reported to the Comptroller of the Currency and such reduction has been approved by the said Comptroller of the Currency and by the Federal Reserve Board, or by the organization committee pending the organization of the Federal Reserve Board. Sec. 29. If any clause, sentence, paragraph, or part of this Act shall for any reason be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Act, but shall be confined in its operation to the clause, sentence, paragraph, or part thereof directly involved in the controversy in which such judgment shall have been rendered. Sec. 30. The right to amend, alter, or repeal this Act is hereby expressly reserved. APPENDIX TO FEDERAL RESERVE ACT. PROVISIONS OF OTHER ACTS OF CONGRESS WHICH AFFECT THE FEDERAL RESERVE SYSTEM. INTERLOCKING BANK DIRECTORATES. Clayton Antitrust Act, approved October 15, 1914, as amended by the Kern amendment, approved May 15, 1916, as amended by the Act approved May 26, 1920.1 SEC. 8. That from and after two years from the date of the approval of this Act no person shall at the same time be a director or other officer or employee of more than one bank, banking association, or trust company organized or operating under the laws of the United States, either of which has deposits, capital, surplus, and undivided profits aggregating more than $5,000,000; and no private banker or person who is a director in any bank or trust company organized and operating under the laws of a State, having deposits, capital, surplus, and undivided profits aggregating more than $5,000,000, shall be eligible to be a director in any bank or banking association organized or operating under the laws of the United States. The eligibility of a director, officer, or employee under the foregoing provisions shall be determined by the average amount of deposits, capital, surplus, and undivided profits as shown in the official statements of such bank, banking association, or trust company filed as provided by law during the fiscal year next preceding the date set for the annual election of directors, and when a director, officer, or employee has been elected or selected in accordance with the provisions of this Act it shall be lawful for him to continue as such for one year thereafter under said election or employment. No bank, banking association, or trust company organized or operating under the laws of the United States, in any city or incorporated town or village of more than two hundred thousand inhabitants, as shown by the last preceding decennial census of the United States, shall have as a director or other officer or em 1 Amended by sec. 25 of Federal Reserve Act, as amended Sept. 7, 1916; and amended by ct approved Dec. 24, 1919, amending the Federal Reserve Act, as to corporations engaged in foreign banking and financial operations. See ante, pp. 216 and 221. ployee any private banker or any director or other officer or employee of any other bank, banking association, or trust company located in the same place: Provided, That nothing in this section shall apply to mutual savings banks not having a capital stock represented by shares: Provided further, That a director or other officer or employee of such bank, banking association, or trust company may be a director or other officer or employee of not more than one other bank or trust company organized under the laws of the United States or any State where the entire capital stock of one is owned by stockholders in the other: And provided further, That nothing contained in this section shall forbid a director of class A of a Federal reserve bank, as defined in the Federal Reserve Act, from being an officer or director, or both an officer and director, in one member bank: And provided further, That nothing in this Act shall prohibit any private banker or any officer, director, or employee of any member bank or class A director of a Federal reserve bank, who shall first procure the consent of the Federal Reserve Board, which board is hereby authorized, at its discretion, to grant, withhold, or revoke such consent, from being an officer, director, or employee of not more than two other banks, banking associations, or trust companies, whether organized under the laws of the United States or any State, if such other bank, banking association, or trust company is not in substantial competition with such banker or member bank. The consent of the Federal Reserve Board may be procured before the person applying therefor has been elected as a class A director of a Federal reserve bank or as a director of any member bank. When any person elected or chosen as a director or officer or selected as an employee of any bank or other corporation subject to the provisions of this Act is eligible at the time of his election or selection to act for such bank or other corporation in such capacity his eligibility to act in such capacity shall not be affected and he shall not become or be deemed amenable to any of the provisions hereof by reason of any change in the affairs of such bank or other corporation from whatsoever cause, whether specifically excepted by any of the provisions hereof or not, until the expiration of one year from the date of his election or employment. DEPOSIT OF POSTAL SAVINGS FUNDS IN MEMBER OR NONMEMBER BANKS. Section 2 of the Postal Savings Act, approved June 25, 1910, as amended by the Act approved May 18, 1916. * * * * SEC. 2. That postal savings funds received under the provisions of this Act shall be deposited in solvent banks, whether organized under National or State laws, and whether member banks or not of the Federal Reserve System established by the Act approved December twenty-third, nineteen hundred and thirteen, being subject to National or State supervision and examination * ** The funds received at the postal savings depository offices in each city, town, village, and other locality shall be deposited in banks located therein (substantially in proportion to the capital and surplus of each such bank) willing to receive such deposits under the terms of this Act and the regulations made by authority thereof: Provided, however, If one or more member banks of the Federal Reserve System established by the Act approved December twenty-third, nineteen hundred and thirteen, exists in the city, town, village, or locality where the postal savings deposits are made, such deposits shall be placed in such qualified member banks substantially in proportion to the capital and surplus of each such bank, but if such member banks fail to qualify to receive such deposits, then any other bank located therein may, as hereinbefore provided, qualify and receive the same. If no such member bank and no other qualified bank exists in any city, town, village, or locality, or if none where such deposits are made will receive such deposits on the terms prescribed, then such funds shall be deposited under the terms of this Act in the bank most convenient to such locality. * * DEPOSIT OF FUNDS OF FEDERAL LAND BANKS IN MEMBER BANKS-FEDERAL RESERVE BANKS AND MEMBER BANKS AUTHORIZED TO BUY AND SELL FARM LOAN BONDS. Sections 5, 6, 13, and 27 of the Farm Loan Act, approved July 17, 1916. SEC. 5. At least twenty-five per centum of that part of the capital of any Federal land bank for which stock is out |