4.] [Footnote 7: The Act does not explicitly say by whom the notes are issued: it says that they are "to be issued at the discretion of the Federal Reserve Board"; that "the said notes shall be obligations of the United States." Further on the notes are spoken of as "issued to" a Federal reserve bank, and again as "issued through" a Federal reserve bank, but not _by_ it.

But the phrase occurs (sec.

16) "its [i.e., the Federal reserve bank's] Federal reserve notes." The notes thus are technically issued by the United States, but not as ordinary political (fiat) money, for they are not given a forced circulation by the Government in paying its indebtedness.

But the banks "shall pay such rate of interest on" the amounts of notes outstanding as may be established by the Federal Reserve Board (i.e., to the Government of the United States).

Practically the notes (as respects choice of time of issue, amounts, profits from them, commercial assets to secure them and to redeem them) are asset currency issued by the several Federal reserve banks.] [Footnote 8: This may be shown in the following table: When reserves against notes are the tax rate upon the total are-- deficiency shall be-- Below 40.0 to 32.5 per cent 1.0 per cent " 35.5 to 30.0 " " 2.5 " " " 30.0 to 27.5 " " 4.0 " " " 27.5 to 25.0 " " 5.5 " " " 25.0 to 22.5 " " 7.0 " " " 22.5 to 20.0 " " 8.5 " " " 20.0 to 17.5 " " 10.0 " " " 17.5 to 15.0 " " 11.5 " " " 15.0 to 12.5 " " 13.0 " " " 12.5 to 10.0 " " 14.5 " " " 10.0 to 7.5 " " 16.0 " " " 7.5 to 5.0 " " 17.5 " " " 5.0 to 2.5 " " 19.0 " " " 2.5 to 0.0 " " 20.5 " " ] [Footnote 9: The complete application of the new rule is deferred for a period of three years from the passage of the act.] [Footnote 10: See on "piping" provision, sec.