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That until March 3, 1933, should the Federal Reserve Board deem it in
the public interest, it may, upon the affirmative vote of not less than a
majority of its members, authorize the Federal reserve banks to offer, and
the Federal reserve agents to accept, as such collateral security, direct obli-
gations of the United States. On March 3, 1933, or sooner should the
Felderal Reserve Board so decide, such authorization shall terminate and
such obligations of the United States be retired as security for Federal
reserve notes. In no event shall such collateral security be less than the
amount of Federal reserve notes applied for. The Federal reserve agent
shall each day notify the Federal Reserve Board of all issues and with-
drawals of Federal reserve notes to and by the Federal reserve bank to
which he is accredited. The said Federal Reserve Board may at any time
call upon a Federal reserve bank for additional security to protect the
Federal reserve notes issued to it.
And the Senate agree to the same.

HENRY B. STEAGALL,
C. H. BRAND,
W. F. STEVENSON,
L. T. McFaddEN,

JAMES G. STRONG,
Managers on the part of the House.

J. E. WATSON,
John G. TOWNSEND, JR.,

CARTER GLASS,
Managers on the part of the Senate.

STATEMENT OF THE MANAGERS ON THE PART OF THE HOUSE

The managers on the part of the House at the conference on the disagreeing votes of the two Houses on the amendment of the Senate to the bill (H. R. 9203) to improve the facilities of the Federal reserve system for the service of commerce, industry, and agriculture, to provide means for meeting the needs of member banks in exceptional circumstances, and for other purposes submit the following written statement in explanation of the effect of the action agreed upon by the conferees and recommended in the accompanying conference report:

The first section of the House bill added a new section 10(a) to the Federal reserve act, as amended, under which it was provided that upon receiving the consent of not less than a majority of the Federal Reserve Board any Federal reserve bank might make advances for a period not exceeding one year from the date of the approval of the bill to groups of five or more independently owned and controlled member banks if such banks had no adequate amount of eligible and acceptable assets to obtain sufficient credit accommodations through rediscounting at the Federal reserve bank.

The Senate amendment provides that such advances may be made upon receiving the consent of not less than six members of the Federal Reserve Board and removes the one year limitation contained in the House bill. The provision of the House bill limiting the advances in cases where the banks did not have eligible and acceptable assets to obtain sufficient credit accommodation through rediscounting is also clarified by the Senate amendment. The amendment also provides that such advances may be made to a lesser number of member banks if the aggregate amount of their deposit liability constitutes at least 10 per cent of the entire deposit liability of the member banks within the district of the Federal reserve bank from which the advances are to be obtained.

The first section of the bill as agreed to by the committee of conference provides that not less than five members of the Federal Reserve Board must consent to the making of such advances to groups of five or more member banks and retains the provision of the Senate amendment under which a lesser number of such banks may obtain such advances if their aggregate deposit liability constitutes at least 10 per cent of that of all the member banks in the district. The 1-year limitation contained in the House bill is eliminated.

Section 2 of the House bill added a new section 10 (b) to the Federal reserve act, as amended, under which it was provided that in exceptional and exigent circumstances and for a period of not exceeding one year from the date of the approval of the bill any Federal reserve bunk might make advances to any member bank of its district if such member bank had no further eligible and acceptable assets available to enable it to obtain adequate credit accommodations from the Federal reserve banks through rediscounting or any other method provided by the Federal reserve act other than through advances to groups of banks under the section added by section 1 of the bill ard if the advance to the member bank was approved by not less than a majority of the Federal Reserve Board.

The Senate amendment provides that such advances may be made until March 3, 1934, and that they must be approved by not less than six members of the Federal Reserve Board. It also imposes the limitation that the member banks applying for any such advance must have a capital of $2,000,000 or less. The other provisions of the second section of the bill and of the Senate amendment are the same except for minor clerical changes made by the Senate amendment

As agreed upon at the conference, this section is to remain operative until March 3, 1933, which in effect restores the time limitation contained in the House bill. It is also provided that an advance to any member bank must be approved by at lease five members of the Federal Reserve Board, and that member banks having a capital of not exceeding $5,000,000 shall be eligible to apply for such advances.

Section 3 of the House bill amended the second paragraph of section 16 of the Federal reserve act, as amended, so as to provide that Federal reserve banks might be authorized to offer direct obligations of the United States as collateral security for Federal reserve notes for a period of 12 months from the date of approval of the bill if the Federal Reserve Board deemed it to be in the public interest upon the affirmative vote of not less than a majority of its members. At the expiration of the 12 months period, or sooner if the Federal Reserve Board shall so decide, the authorization to the Federal reserve banks was to terminate and the obligations of the United States accepted as such collateral security were to be retired.

The Senate amendment extends the time for which such direct obligations of the United States may be offered as collateral security for Federal reserve notes to March 3, 1934.

At the conference it was agreed that the use of direct obligations of the United States as such collateral security should not extend beyond March 3, 1933. This in effect restores the time limitation contained in the House bill.

H. B. STEAGALL,
C. H. BRAND,
W. F. STEVENSON,
L. T. MCFADDEN,

JAMES G. STRONG,
Managers on the part of the House.

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BRIDGE ACROSS MISSOURI RIVER AT OR NEAR ARROW

ROCK, MO.

FEBRUARY 25, 1932.-Referred to the House Calendar and ordered to be printed

Mr. MILLIGAN, from the Committee on Interstate and Foreign

Commerce, submitted the following

REPORT

(To accompany H. R. 8379)

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The Committee on Interstate and Foreign Commerce, to whom was referred the bill (H. R. 8379) to extend the times for commencing and completing the construction of a bridge across the Missouri River at or near Arrow Rock, Mo., having considered and amended the same, report thereon with a recommendation that it pass.

Amend the bill as follows:

Page 1, line 6, after the word “Company,” strike out the words "a corporation"

Strike out all of line 7.
The act of Congress referred to in the bill is as follows:

(PUBLIC— No. 957—70th CONGRESS)

(S. 3834) AN ACT Authorizing the construction of a bridge across the Missouri River near Arrow Rock,

Missouri

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the consent of Congress is hereby granted to the Saint Louis-Kansas City Short Line Railroad Company, a corporation of the State of Missouri, and their successors and assigns, to construct, maintain, and operate a bridge and approaches thereto across the Missouri River, at a point suitable to the interests of navigation, at or near the town of Arrow Rock, in the State of Missouri, in accordance with the provisions of the act entitled “An act to regulate the construction of bridges over navigable waters," approved March 23, 1906.

Sec. 2. That the right to alter, amend, or repeal this act is hereby expressly reserved.

Approved, March 2, 1929.

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