The Federal Reserve Act of 1913 History And Digest

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No Federal reserve bank shall pay out notes issued through another under penalty of a tax of ten per centum upon the face value of notes so paid out. Notes presented for redemption at the Treasury of the United States shall be paid out of the redemption fund and returned to the Federal reserve banks through which they were originally issued, and thereupon such Federal reserve bank shall, upon demand of the Secretary of the Treasury, reimburse such re- demption fund in lawful money, or, if such ...Federal re- serve notes have been redeemed by the Treasurer in gold or gold certificates, then such funds shall be reim- PAGE 70 The Federal Reserve Act bursed to the extent deemed necessary by the Secre- tary of the Treasury in gold or gold certificates, and such Federal reserve bank shall, so long as any of its Federal reserve notes remain outstanding, maintain with the Treasurer in gold an amount sufficient in the judg- ment of the Secretary to provide for all redemptions to be made by the Treasurer.

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