Precision Shooting Program

In the Federal Reserve Act it was specified that each Federal Reserve bank might act as a clearing house for its members, but that the Federal Reserve Board might act as a clearing house for the Federal Reserve banks, or might designate one of the Federal Reserve Banks thus to act. In pursuance of this authority, the board has established a Division of Clearing ha Washington for the purpose of settling balances between Federal Reserve banks without the actual shipment of coin. This division is hi charge of a fund of about $426,000,000 in gold, and conducts a set of books on which are recorded from day to day credits and debits between Federal Reserve banks arising out of their operations during the day. As given banks are credited or debited on these books, the amount of their ownership in the gold fund changes. Federal Reserve banks which are under special obligations and duties are not only closely supervised by, but in fact operated under, close government supervision. Two features deserve to be specially noted in this connection: 1. Owing to its close relation with the government, each Federal Reserve bank has a special officer representing the government, who is chairman of its board of directors and who is designated as " Federal Reserve agent." 2. Every Federal Reserve bank confines its discount business to other banks, a fact which at once alters the type of organization of the institution in some important particulars....