,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #hihd  ,,in ,,the ,,house ,,of  
,,representatives  ,december #af1       
#bjbj,mr4 ,hill of ,arkansas introduced 
the following bill2 which was referred  
to the ,committee on ,financial         
,services  ,a ,,bill  ,to ensure that   
the operations of the ,board of         
,governors of the ,federal ,reserve     
,system remain independent from the     
credit policy of the ,united ,states1   
and for other purposes4  #a4 ,short     
title ,this ,act may be cited as the    
,independence from ,credit ,policy ,act 
of #bjbj4  #b4 ,independence from credit
 policy  7a7 ,returning to a monetary   
policy balance sheet  7#a7 ,in general  
,not later than #a year after the date  
of the enactment of this ,act-- 7,a7 the
 ,board of ,governors of the ,federal   
,reserve ,system shall transfer to the  
,department of the ,treasury all covered
 assets that are neither gold stock1    
,treasury currency1 nor direct          
obligations of the ,united ,states1     

foreign central banks1 or the           
,international ,monetary ,fund2 and     
7,b7 the ,secretary of the ,treasury    
shall transfer to the ,federal reserve  
banks direct obligations of the ,united 
,states of equivalent market value to   
such covered assets4  7#b7 ,covered     
assets defined ,in this subsection1 the 
term covered assets means all assets--  
7,a7 purchased through open-market      
operations by the ,federal reserve      
banks2 or  7,b7 acquired through        
transactions under the following        
sections of the ,federal ,reserve ,act  
7#ab ,u4,s4,c4 #bba et seq473 7i7       
,section #aj;,a before the date of the  
enactment of this ,act4  7ii7 ,section  
#aj;,b4  7iii7 ,section #ac4  7iv7      
,section #ac;,a4  7v7 ,section #bd4  7b7
 ,open market asset purchases ,section  
#ad7;b7 of the ,federal ,reserve ,act   
7#ab ,u4,s4,c4 #cee7 7relating to       
,purchase and sale of obligations of    
,united ,states1 ,states1 counties1     
etc47 is amended to read as follows3    

7b7 ,to buy and sell in the open market1
 at home or abroad1 under the direction 
and regulations of the ,federal ,open   
,market ,committee1 gold stock1         
,treasury currency1 or direct           
obligations of the ,united ,states1     
foreign central banks1 or the           
,international ,monetary ,fund4 ,nothing
 in this subsection shall be construed  
to limit advances under section #aj;,b1 
or discount loans under sections #ac1   
#ac;,a1 or #bd4  4  7c7 ,maintaining a  
monetary policy balance sheet  7#a7     
,assets acquired under emergency lending
 ,section #ac7c7 of the ,federal        
,reserve ,act 7#ab ,u4,s4,c4 #cdc7c77 is
 amended by inserting after subparagraph
 7,e7 following new subparagraph3  7,f7 
,not later than #a year after a ,federal
 reserve bank acquires any assets under 
this paragraph that are neither gold nor
 direct obligations of the ,united      
,states1 foreign central banks1 or the  
,international ,monetary ,fund-- 7i7 the
 ,board shall transfer such assets of   

the ,federal reserve bank to the        
,department of the ,treasury2 and  7ii7 
the ,secretary of the ,treasury shall   
transfer to the ,federal reserve banks  
direct obligations of the ,united       
,states of equivalent market value to   
the assets described in clause 7i74  4  
7#b7 ,repeal of authority to provide    
emergency advances to groups of member  
banks ,section #aj;,a of the ,federal   
,reserve ,act 7#ab ,u4,s4,c4 #cdg;a7 is 
repealed4  7#c7 ,assets acquired through
 advances to member banks ,the second   
undesignated paragraph of subsection 7a7
 of section #aj;,b of the ,federal      
,reserve ,act 7#ab ,u4,s4,c4 #cdg;b7a77 
is amended-- 7,a7 by inserting not      
before secured by mortgage loans2 and   
7,b7 by striking lowest discount rate   
and inserting highest discount rate4