SECTION 5301
(a) The President may direct the Secretary of the Treasury to make
an agreement with the Federal reserve banks and the Board of Governors
of the Federal Reserve System when the President decides that the
foreign commerce of the United States is affected adversely because—
(1) the value of coins and currency of
a foreign country compared to the present standard value of gold is
depreciating;
(2) action
is necessary to regulate and maintain the parity of United States
coins and currency;
(3) an economic emergency requires an expansion of credit; or
(4) an expansion of credit
is necessary so that the United States Government and the governments
of other countries can stabilize the value of coins and currencies
of a country.
(b) Under
an agreement under subsection (a) of this section, the Board shall
permit the banks (and the Board is authorized to permit the banks
notwithstanding another law) to agree that the banks will—
(1) conduct through each entire specified
period open market operations in obligations of the United States
Government or corporations in which the Government is the majority
stockholder; and
(2)
buy directly and hold an additional $3,000,000,000 of obligations
of the Government for each agreed period, unless the Secretary consents
to the sale of the obligations before the end of the period.
(c) With the approval of the Secretary, the Board
may require Federal reserve banks to take action the Secretary and
Board consider necessary to prevent unreasonable credit expansion.
[31 USC 5301.
Previously 31 USC 821(a) (act of May 12, 1933 § 43(a) (48 Stat. 51)).
Restated and recodified by act of Sept. 13, 1982 (96 Stat. 993).]
