Each of the twelve reserve banks may receive deposits, subject to certain provisions, restrictions, and limitations, from the Government of the United States, from member banks, from non-member banks, and from other reserve banks. Against these deposits the reserve bank must hold a reserve of 35 per cent in gold or lawful money. Reserves may be strengthened ( I ) by additional deposits (of which 35 per cent serves as a reserve against the new deposit and 65 per cent as an increase of reserves against other deposits), and (2) by increase of cash resources due to reduction of loans and discounts or investments in securities. Since the reserve banks may be the repositories of all Treasury funds except the required reserves which the Treasury must maintain against its own obligations, in BANKING 637 Eluding the gold-redemption fund, the Secretary of the Treasury, who controls the disposition of.Treasury funds, may strengthen the reserves of any reserve bank simply by depositing Treasury funds therein or by checking into them funds out of a reserve bank which has a superfluity of reserves. Any reserve bank, moreover, may come to the aid of any other reserve bank, by rediscounting its discounted paper in fact, may be required to do so, by the affirmative vote of five members of the Federal Reserve Board. The rates for such rediscounting are fixed by the Board. By these means mobility of reserves is assured....

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