Nation. 5. Reserve Board of Governors — Seven persons appointed by the President of the United States, confirmed by the Senate, who serve 14 years. They supervise the operation of the 12 Reserve Banks, and pump money into circulation or siphon it out at their pleasure. 6. Twelve Reserve Banks — Each serves a district, with its branch Reserve Banks. Each is a corporation. Member banks are their stockholders, and their principal function is to create and hold the member bank reserves, cash and clear their cheques. 7. Reserve Open Market Committee — Is comprised of the seven members of the Reserve Board of Governors, and five members of the Federal Reserve Banks. The committee directs the open market operations of the Federal Reserve banks, that is, the purchase and sale of Government securities, bonds, and corporation securities, stocks and bonds. The purpose of these operations is to create bank reserves, basis of bank credit, which banks use to buy investment obligations, and to make loans. 8. Reserve Advisory Council — Twelve members, one chosen by each district Reserve Bank, who work in conjunction with the seven members of the Board of Governors, in making policies, directing the over-all affairs of the Reserve System. 9. Reserve Authorities — A term applied to any group of Reserve officials when it is unnecessary to indicate which group is functioning.
- Member Banks — All national banks, and such state banks and trust companies as meet requirements for membership. There are some 14,000 member commercial banks, and trust companies, and several thousand smaller banks who must function under the wing of some larger member bank. 11. Commercial Banks — Private corporations who carry the deposit accounts of the people, make loans and buy investment obligations. They are the contact points between the Reserve Banks and the people. 12. Currency — Is bills and coin engraved and minted by the Treasury to be used as cash register and pocket change. 13. Treasury Certificates — Are the smaller bills, ten, five and one-dollar silver certificates, redeemable in silver. 14. United