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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1921 Excerpt:...the acceptance, to the following effect: 'The obligation of the acceptor of this bill arises out of the purchase of goods from the drawer.' Such certificate may be accepted by the Federal reserve bank as sufficient evidence; provided, however, that the Federal reserve bank, in its discretion, may inquire into the exact nature of the transaction underlying the acceptance." Open-Market Purchase of Bankers' Acceptances Regulation S, Series of 1915 Superseding Regulation R of 1915 In Regulation R, Series of 1915, relating to the discount of bankers' acceptances, the Federal Reserve Board provided for the purchase in the open market of bankers' acceptances based on the importation or exportation of goods. The Board further stated that it had not felt justified, when admitting State banks and trust companies into the Federal Reserve System, in stipulating that such domestic acceptances should not be continued under reasonable limitations as a part of their business. Inasmuch as the making of these acceptances has been recognized by the Board as the exercise of a legitimate banking function when authorized by law, it is thought that they are of the character to make desirable investments for Federal reserve banks. The Board therefore issued a new regulation (Regulation S, Series of 1915), not only embodying the authority given in Regulation R, Series of 1915, to purchase bankers' acceptances based on the importation or exportation of goods, but also authorizing the purchase of bankers' domestic acceptances within the limits prescribed in the regulation, which provides: "The Federal Reserve Board has determined that, until further notice, to be eligible for purchase under Section 14 at the rates to be established for the purchase of bankers' domestic and...