Banking Act of 1935
The Banking Act of 1935 passed on August 19, 1935 and was signed into law by the president, Franklin D. Roosevelt, on August 23; the Act changed the structure and power distribution in the Federal Reserve System that began with the Banking Act of 1933. The Act contained three titles. Title I amended section 12B of the 1933 Act with regards to the creation of the Federal Deposit Insurance Corporation and its duties; the board of directors of the FDIC would include the Comptroller of Currency and two members selected by the President and confirmed by the Senate. They shall hold a term of 6 years and receive an annual salary of $10,000. Title I established the maximum insured deposit to be $5,000; the Act of 1935 made the FDIC permanent, included the following provisions: All accounts would be insured up to $5,000. At this time 98.5% of all deposits were under the $5,000 limit. This was a dramatic change from the initial guidelines under the 1933 act. All banks who were insured under the initial creation of the FDIC are still insured under the new permanent program.
All Federal Reserve member banks are required to participate in the FDIC. Smaller state banks, national banks who were not members of the Federal Reserve System and loan institutions and other similar organizations had differing requirements for participation. All banks who participated in the FDIC were able to advertise and place signage in their business stating that the deposits were insured by the FDIC; these signs are still displayed at local banks. Title II changed the name of the "Federal Reserve Board" to the "Board of Governors of the Federal Reserve System." The board consists of seven members selected by the President with consent of the Senate. Each member would serve a fourteen year term on the Board. Of those selected one member would be selected as chairman and one as vice-chairman each serving four years in that capacity. Title II creates a Federal Open Market Committee The membership of this committee will include the governors of the Federal Reserve System and five representatives of the Federal Reserve banks.
The Committee meets quarterly in Washington DC. The FOMC controls when Reserve Banks participate in open market operations. All such decisions go through the FOMC; the Act renewed the ability of each Federal Reserve bank to make loans to its member banks. The rates for these loans must be 0.5% above the current discount rate at the Federal Reserve. Title III included 46 sections of technical amendments; these included but were not limited to the rules of stock ownership, elimination of double liability, surplus requirements, rules for loans to executives, rules of branch banking, rules of securities transactions and the rights of shareholders. For a few years, there had been growing desire for changes to be made to the Federal Reserve Act. In 1934 Jacob Viner, was an assistant to the Treasury Secretary Henry Morgenthau, Jr. Viner chaired a committee tasked with determining what changes were needed to update the Federal Reserve Act. Marriner Stoddard Eccles became the governor of the Federal Reserve Board on November 15, 1934.
He dismissed the token reforms put forth by Viner and the committee. Eccles insisted that the two main goals of the new legislation were to "control speculation" and to "promote the stability of employment and business". To make this happen, Eccles wanted the Federal Reserve to become the Central Bank with concentrated power. Eccles proposed four key points to be included in the new legislation: Change the title and approval process for the bank's heads. On February 5, 1935, the "Administration banking bill", as it was titled, was given to the House Committee on Banking and Currency, it passed the House quickly and with all main points intact. In the Senate, the bill faced stiffer criticism from Carter Glass; the main sticking point was, to have the most control, the bankers or the politicians. The bill that passed the Senate was a compromise; the Act was signed into law by Franklin D. Roosevelt on August 23, 1935. Banking Act of 1935 at Federalreservehistory.org
Roy A. Young
Roy Archibald Young was an American banker. Most he was chairman of the Federal Reserve Board between 1927 and 1930 during the presidencies of Calvin Coolidge and Herbert Hoover. During his tenure as chairman of the Federal Reserve Board, the Stock Market Crash of 1929 occurred and the United States went into an economic depression, he was president of the Federal Reserve Banks in Minneapolis and Boston. He was born on May 1882 in Marquette, Michigan. Young was a messenger for a bank at the age of eight, he worked as assistant cashier and joined the Citizens National Bank as vice president in 1913. From 1919 to 1927 he was president of the Federal Reserve Bank of Minneapolis before becoming chairman of the Federal Reserve Board. From 1930 to 1942 he served as president of the Federal Reserve Bank of Boston. After his resignation, he changed to become chairman of the Merchants National Bank and chairman of American Woolen Company. During his term in office as chairman of the Federal Reserve Board there was confrontation between the Federal Reserve Board and the Federal Reserve Bank of New York under George L. Harrison of how to curb speculation that led inter alia to the stock market boom of the late 1920s.
The Board was in favor of putting "direct pressure" on the lending member banks while the Federal Reserve Bank of New York wanted to raise the discount rate. The Board under Young disapproved this step, however Young himself was not convinced that the policy of using pressure would work and refused to sign the 1929 Annual Report of the Board because it contained parts favorable to this policy, he died on December 1960 in Chestnut Hill, Massachusetts. Statements and Speeches of Roy A. Young
Richard Milhous Nixon was an American politician who served as the 37th president of the United States from 1969 to 1974. He had served as the 36th vice president of the United States from 1953 to 1961, prior to that as both a U. S. representative and senator from California. Nixon was born in California. After completing his undergraduate studies at Whittier College, he graduated from Duke University School of Law in 1937 and returned to California to practice law, he and his wife Pat moved to Washington in 1942 to work for the federal government. He subsequently served on active duty in the U. S. Navy Reserve during World War II. Nixon was elected to the House of Representatives in 1946 and to the Senate in 1950, his pursuit of the Hiss Case established his reputation as a leading anti-communist and elevated him to national prominence. He was the running mate of Dwight D. Eisenhower, the Republican Party presidential nominee in the 1952 election. Nixon served for eight years as Vice President, becoming the second-youngest vice president in history at age 40.
He waged an unsuccessful presidential campaign in 1960, narrowly losing to John F. Kennedy, lost a race for governor of California to Pat Brown in 1962. In 1968, he ran for the presidency again and was elected, defeating incumbent Vice President Hubert Humphrey. Nixon ended American involvement in the war in Vietnam in 1973 and brought the American POWs home, ended the military draft. Nixon's visit to China in 1972 led to diplomatic relations between the two nations and he initiated détente and the Anti-Ballistic Missile Treaty with the Soviet Union the same year, his administration transferred power from Washington D. C. to the states. He imposed wage and price controls for ninety days, enforced desegregation of Southern schools, established the Environmental Protection Agency and began the War on Cancer. Nixon presided over the Apollo 11 moon landing, which signaled the end of the moon race, he was reelected in one of the largest electoral landslides in U. S. history in 1972 when he defeated George McGovern.
In his second term, Nixon ordered an airlift to resupply Israeli losses in the Yom Kippur War, resulting in the restart of the Middle East peace process and an oil crisis at home. The Nixon administration supported a coup in Chile that ousted the government of Salvador Allende and propelled Augusto Pinochet to power. By late 1973, the Watergate scandal escalated. On August 9, 1974, he resigned in the face of certain impeachment and removal from office—the only time a U. S. president has done so. After his resignation, he was issued a controversial pardon by Gerald Ford. In 20 years of retirement, Nixon wrote nine books and undertook many foreign trips, helping to rehabilitate his image into that of an elder statesman, he suffered a debilitating stroke on April 18, 1994 and died four days at the age of 81. Richard Milhous Nixon was born on January 9, 1913 in Yorba Linda, California, in a house, built by his father, his parents were Francis A. Nixon, his mother was a Quaker, his father converted from Methodism to the Quaker faith.
Nixon was a descendant of the early American settler, Thomas Cornell, an ancestor of Ezra Cornell, the founder of Cornell University, as well as of Jimmy Carter and Bill Gates. Nixon's upbringing was marked by evangelical Quaker observances of the time, such as refraining from alcohol and swearing. Nixon had four brothers: Harold, Donald and Edward. Four of the five Nixon boys were named after kings who had ruled in legendary Britain. Nixon's early life was marked by hardship, he quoted a saying of Eisenhower to describe his boyhood: "We were poor, but the glory of it was we didn't know it"; the Nixon family ranch failed in 1922, the family moved to Whittier, California. In an area with many Quakers, Frank Nixon opened a grocery gas station. Richard's younger brother. At the age of twelve, a spot was found on Richard's lung, with a family history of tuberculosis, he was forbidden to play sports; the spot was found to be scar tissue from an early bout of pneumonia. Young Richard attended East Whittier Elementary School, where he was president of his eighth-grade class.
His parents believed that attending Whittier High School had caused Richard's older brother Harold to live a dissolute lifestyle before he fell ill of tuberculosis, so they sent Richard to the larger Fullerton Union High School. He had to ride a school bus for an hour each way during his freshman year, he received excellent grades, he lived with an aunt in Fullerton during the week. He played junior varsity football, missed a practice though he was used in games, he had greater success as a debater, winning a number of championships and taking his only formal tutelage in public speaking from Fullerton's Head of English, H. Lynn Sheller. Nixon remembered Sheller's words, "Remember, speaking is conversation... don't shout at people. Talk to them. Converse with them." Nixon stated. At the start of his junior year beginning in September 1928, Richard's parents permitted him to transfer to Whittier High School. At Whittier High, Nixon suffered his first electoral defeat, for student body president, he rose at 4 a.m. to drive the family truck into Los Angeles and purchase vegetables at the market.
He drove to the store to wash and display them, befo
United States Congress
The United States Congress is the bicameral legislature of the Federal Government of the United States. The legislature consists of two chambers: the House of the Senate; the Congress meets in the United States Capitol in Washington, D. C.. Both senators and representatives are chosen through direct election, though vacancies in the Senate may be filled by a gubernatorial appointment. Congress has 535 voting members: 100 senators; the House of Representatives has six non-voting members representing Puerto Rico, American Samoa, the Northern Mariana Islands, the U. S. Virgin Islands, the District of Columbia in addition to its 435 voting members. Although they cannot vote in the full house, these members can address the house and vote in congressional committees, introduce legislation; the members of the House of Representatives serve two-year terms representing the people of a single constituency, known as a "district". Congressional districts are apportioned to states by population using the United States Census results, provided that each state has at least one congressional representative.
Each state, regardless of population or size, has two senators. There are 100 senators representing the 50 states; each senator is elected at-large in their state for a six-year term, with terms staggered, so every two years one-third of the Senate is up for election. To be eligible for election, a candidate must be aged at least 25 or 30, have been a citizen of the United States for seven or nine years, be an inhabitant of the state which they represent; the Congress was created by the Constitution of the United States and first met in 1789, replacing in its legislative function the Congress of the Confederation. Although not mandated, in practice since the 19th century, Congress members are affiliated with the Republican Party or with the Democratic Party and only with a third party or independents. Article One of the United States Constitution states, "All legislative Powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and House of Representatives."
The House and Senate are equal partners in the legislative process—legislation cannot be enacted without the consent of both chambers. However, the Constitution grants each chamber some unique powers; the Senate ratifies treaties and approves presidential appointments while the House initiates revenue-raising bills. The House initiates impeachment cases. A two-thirds vote of the Senate is required before an impeached person can be forcibly removed from office; the term Congress can refer to a particular meeting of the legislature. A Congress covers two years; the Congress ends on the third day of January of every odd-numbered year. Members of the Senate are referred to as senators. Scholar and representative Lee H. Hamilton asserted that the "historic mission of Congress has been to maintain freedom" and insisted it was a "driving force in American government" and a "remarkably resilient institution". Congress is the "heart and soul of our democracy", according to this view though legislators achieve the prestige or name recognition of presidents or Supreme Court justices.
One analyst argues that it is not a reactive institution but has played an active role in shaping government policy and is extraordinarily sensitive to public pressure. Several academics described Congress: Congress reflects us in all our strengths and all our weaknesses, it reflects our regional idiosyncrasies, our ethnic and racial diversity, our multitude of professions, our shadings of opinion on everything from the value of war to the war over values. Congress is the government's most representative body... Congress is charged with reconciling our many points of view on the great public policy issues of the day. Congress is changing and is in flux. In recent times, the American south and west have gained House seats according to demographic changes recorded by the census and includes more minorities and women although both groups are still underrepresented. While power balances among the different parts of government continue to change, the internal structure of Congress is important to understand along with its interactions with so-called intermediary institutions such as political parties, civic associations, interest groups, the mass media.
The Congress of the United States serves two distinct purposes that overlap: local representation to the federal government of a congressional district by representatives and a state's at-large representation to the federal government by senators. Most incumbents seek re-election, their historical likelihood of winning subsequent elections exceeds 90 percent; the historical records of the House of Representatives and the Senate are maintained by the Center for Legislative Archives, a part of the National Archives and Records Administration. Congress is directly responsible for the governing of the District of Columbia, the current seat of the federal government; the First Continental Congress was a gathering of representatives from twelve of the thirteen British Colonies in North America. On July 4, 1776, the Second Continental Congress adopted the Declaration of Independence, referring to the new nation as the "United States of America"; the Articles of Confederation in 1781 created the Congress of the Confederation, a
Federal Reserve Board of Governors
The Board of Governors of the Federal Reserve System known as the Federal Reserve Board, is the main governing body of the Federal Reserve System. It is charged with overseeing the Federal Reserve Banks and with helping implement the monetary policy of the United States. Governors are appointed by the President of the United States and confirmed by the Senate for staggered 14-year terms. By law, the appointments must yield a "fair representation of the financial, agricultural and commercial interests and geographical divisions of the country"; as stipulated in the Banking Act of 1935, the Chair and Vice Chair of the Board are two of seven members of the Board of Governors who are appointed by the President from among the sitting Governors. The terms of the seven members of the Board span multiple congressional terms. Once a member of the Board of Governors is appointed by the president, he or she functions independently; the Board is required to make an annual report of operations to the Speaker of the U.
S. House of Representatives, it supervises and regulates the operations of the Federal Reserve Banks, the U. S. banking system in general. The Board obtains its funding from charges that it assesses on the Federal Reserve Banks, not from the federal budget. Membership is by statute limited in term, a member that has served for a full 14 year term is not eligible for reappointment. There are numerous occasions where an individual was appointed to serve the remainder of another member's uncompleted term, has been reappointed to serve a full 14-year term. Since "upon the expiration of their terms of office, members of the Board shall continue to serve until their successors are appointed and have qualified", it is possible for a member to serve for longer than a full term of 14 years; the law provides for the removal of a member of the Board by the President "for cause". The Chair and Vice Chair of the Board of Governors are appointed by the President from among the sitting Governors, they both serve a four-year term and they can be renominated as many times as the President chooses, until their terms on the Board of Governors expire.
All seven board members of the Federal Reserve Board of Governors and five Federal Reserve Bank presidents direct the open market operations that sets U. S. monetary policy through their membership in the Federal Open Market Committee. Records of the Federal Reserve Board of Governors are found in the Record Group n. 82 at the National Archives of the United States. The current members of the Board of Governors are as follows: *Indicates the date of term expiration for the individual nominated to this vacant position. President Donald Trump had nominated Marvin Goodfriend and Nellie Liang to fill the remaining two vacancies. Mr. Goodfriend and Ms. Liang never received a Senate vote. Liang withdrew herself as a nominee on January 7, 2019, after months passed without the Republican-led Senate granting her a hearing. Trump nominated Stephen Moore and Herman Cain. Source: Source: Federal Reserve List of Governors Nomination hearings for Chairmen and Members of the Board of Governors of the Federal Reserve System Public Statements of Federal Reserve Board Members and Chairmen Minutes of Meetings of the Board of Governors of the Federal Reserve System Works by the Board of Governors This article incorporates public domain material from websites or documents of the National Archives and Records Administration
The Federal Reserve System is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the monetary system in order to alleviate financial crises. Over the years, events such as the Great Depression in the 1930s and the Great Recession during the 2000s have led to the expansion of the roles and responsibilities of the Federal Reserve System; the U. S. Congress established three key objectives for monetary policy in the Federal Reserve Act: maximizing employment, stabilizing prices, moderating long-term interest rates; the first two objectives are sometimes referred to as the Federal Reserve's dual mandate. Its duties have expanded over the years, also include supervising and regulating banks, maintaining the stability of the financial system, providing financial services to depository institutions, the U. S. government, foreign official institutions.
The Fed conducts research into the economy and provides numerous publications, such as the Beige Book and the FRED database. The Federal Reserve System is composed of several layers, it is governed by the presidentially appointed board of Federal Reserve Board. Twelve regional Federal Reserve Banks, located in cities throughout the nation and oversee owned commercial banks. Nationally chartered commercial banks are required to hold stock in, can elect some of the board members of, the Federal Reserve Bank of their region; the Federal Open Market Committee sets monetary policy. It consists of all seven members of the board of governors and the twelve regional Federal Reserve Bank presidents, though only five bank presidents vote at a time. There are various advisory councils. Thus, the Federal Reserve System has both private components, it has a structure unique among central banks, is unusual in that the United States Department of the Treasury, an entity outside of the central bank, prints the currency used.
The federal government sets the salaries of the board's seven governors. The federal government receives all the system's annual profits, after a statutory dividend of 6% on member banks' capital investment is paid, an account surplus is maintained. In 2015, the Federal Reserve earned net income of $100.2 billion and transferred $97.7 billion to the U. S. Treasury. Although an instrument of the US Government, the Federal Reserve System considers itself "an independent central bank because its monetary policy decisions do not have to be approved by the President or anyone else in the executive or legislative branches of government, it does not receive funding appropriated by the Congress, the terms of the members of the board of governors span multiple presidential and congressional terms." The primary motivation for creating the Federal Reserve System was to address banking panics. Other purposes are stated in the Federal Reserve Act, such as "to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, for other purposes".
Before the founding of the Federal Reserve System, the United States underwent several financial crises. A severe crisis in 1907 led Congress to enact the Federal Reserve Act in 1913. Today the Federal Reserve System has responsibilities in addition to ensuring the stability of the financial system. Current functions of the Federal Reserve System include: To address the problem of banking panics To serve as the central bank for the United States To strike a balance between private interests of banks and the centralized responsibility of government To supervise and regulate banking institutions To protect the credit rights of consumers To manage the nation's money supply through monetary policy to achieve the sometimes-conflicting goals of maximum employment stable prices, including prevention of either inflation or deflation moderate long-term interest rates To maintain the stability of the financial system and contain systemic risk in financial markets To provide financial services to depository institutions, the U.
S. government, foreign official institutions, including playing a major role in operating the nation's payments system To facilitate the exchange of payments among regions To respond to local liquidity needs To strengthen U. S. standing in the world economy Banking institutions in the United States are required to hold reserves—amounts of currency and deposits in other banks—equal to only a fraction of the amount of the bank's deposit liabilities owed to customers. This practice is called fractional-reserve banking; as a result, banks invest the majority of the funds received from depositors. On rare occasions, too many of the bank's customers will withdraw their savings and the bank will need help from another institution to continue operating. Bank runs can lead to a multitude of economic problems; the Federal Reserve System was designed as an attempt to prevent or minimize the occurrence of bank runs, act as a lender of last resort when a bank run does occur. Many economists, following Nobel laureate Milton Friedman, believe that the Federal Reserve inappropriately refused to lend money to small banks during the bank runs of 1929.
Because some banks refused to clear checks from certain other banks during times of economic uncertainty, a check-clearing system was created in the Federal Reserve System. It is described in
The chairman is the highest officer of an organized group such as a board, a committee, or a deliberative assembly. The person holding the office is elected or appointed by the members of the group, the chairman presides over meetings of the assembled group and conducts its business in an orderly fashion. In some organizations, the chairman position is called president, in others, where a board appoints a president, the two different terms are used for distinctly different positions. Other terms sometimes used for the office and its holder include chair, chairwoman, presiding officer, moderator and convenor; the chairman of a parliamentary chamber is called the speaker. The term chair is sometimes used in lieu of chairman, in response to criticisms that using chairman is sexist, it is used today, has been used as a substitute for chairman since the middle of the 17th century, with its earliest citation in the Oxford English Dictionary dated 1658–1659, only four years after the first citation for chairman.
Major dictionaries state that the word derives from a person. A 1994 Canadian study found the Toronto Star newspaper referring to most presiding men as "chairman", to most presiding women as "chairperson" or as "chairwoman"; the Chronicle of Higher Education uses "chairman" for men and "chairperson" for women. An analysis of the British National Corpus found chairman used 1,142 times, chairperson 130 times and chairwoman 68 times; the National Association of Parliamentarians adopted a resolution in 1975 discouraging the use of “chairperson” and rescinded it in 2017. The Wall Street Journal, The New York Times and United Press International all use "chairwoman" or "chairman" when referring to women, forbid use of "chair" or of "chairperson" except in direct quotations. In World Schools Style debating, male chairs are called "Mr. Chairman" and female chairs are called "Madame Chair"; the FranklinCovey Style Guide for Business and Technical Communication, as well as the American Psychological Association style guide, advocate using "chair" or "chairperson", rather than "chairman".
The Oxford Dictionary of American Usage and Style suggests that the gender-neutral forms are gaining ground. It advocates using "chair" to refer both to women; the Telegraph style guide bans the use of both "Chair" and "Chairperson" on the basis that "Chairman" is correct English. The word chair can refer to the place from which the holder of the office presides, whether on a chair, at a lectern, or elsewhere. During meetings, the person presiding is said to be "in the chair" and is referred to as "the chair". Parliamentary procedure requires that members address the "chair" as "Mr. Chairman" rather than using a name – one of many customs intended to maintain the presiding officer's impartiality and to ensure an objective and impersonal approach. In the United States, the presiding officer of the lower house of a legislative body, such as the House of Representatives, is titled the Speaker, while the upper house, such as the Senate, is chaired by a President. In his 1992 State of the Union address, then-U.
S. President George H. W. Bush used "chairman" for men and "chair" for women. In the British music hall tradition, the Chairman was the master of ceremonies who announced the performances and was responsible for controlling any rowdy elements in the audience; the role was popularised on British TV in the 1960s and 1970s by Leonard Sachs, the Chairman on the variety show The Good Old Days."Chairman" as a quasi-title gained particular resonance when socialist states from 1917 onward shunned more traditional leadership labels and stressed the collective control of soviets by beginning to refer to executive figureheads as "Chairman of the X Committee". Vladimir Lenin, for example functioned as the head of Soviet Russia not as tsar or as president but in roles such as "Chairman of the Council of People's Commissars of the Russian SFSR". Note in particular the popular standard method for referring to Mao Zedong: "Chairman Mao". In addition to the administrative or executive duties in organizations, the chairman has the duties of presiding over meetings.
Such duties at meetings include: Calling the meeting to order Determining if a quorum is present Announcing the items on the order of business or agenda as they come up Recognition of members to have the floor Enforcing the rules of the group Putting questions to a vote Adjourning the meetingWhile presiding, the chairman should remain impartial and not interrupt a speaker if the speaker has the floor and is following the rules of the group. In committees or small boards, the chairman votes along with the other members. However, in assemblies or larger boards, the chairman should vote only when it can affect the result. At a meeting, the chairman only has one vote; the powers of the chairman vary across organizations. In some organizations the chairman has the authority to hire staff and make financial decisions, while in others the chairman only makes recommendations to a board of directors, still others the chairman has no executive powers and is a spokesman for the organization; the amount of power given to the chairman depends on the type of organization, its structure, the rules it has created for itself.
If the chairman exceeds the given authority, engages in misconduct, or fails to perform t