Section I- Mission of the Federal Reserve Bank of Cyberia

Be it stated that the Federal Reserve is to provide for the economic growth and development of the Commonwealth. It shall hold power over the banks and see that they are efficient and ethical in their processes. It shall set the interest rates for loans and shall control the money supply. It shall have control of the currency and shall execute the economic policy of the government.

Section II-The Bank of Cyberia and The Federal Reserve Bank of Cyberia

Be it enacted that until the Chamber of Deputies of the Commonwealth deems it unnecessary, the Bank of Cyberia shall hold a government regulated monopoly over the banking industry. It shall be under the jurisdiction of the Federal Reserve Chairman. This bank shall be a public corporation and can sell stock in the Cyberian Stock Exchange. It shall have the power to appoint its own leadership such as decreed necessary by its share holders and board of directors. The Bank of Cyberia shall hold the power, delegated and regulated by the Federal Reserve Bank, to distribute the Federal Reserve money supply as it sees fit yet shall be inhibited to violate any order, regulation, or ordinance proposed by the Federal Reserve that ensures the fair distribution of the money supply. It shall be the legislative branch’s ability to command the Federal Reserve to enact such orders, regulations, or ordinances by appropriate legislation. Accounts shall be operated by the Bank of Cyberia and the Federal Reserve Bank shall hold absolute authority over auditing the Bank of Cyberia to ensure proper handling of these accounts. All rates shall be approved and determined by the Federal Reserve Bank. The Bank must adhere to the Federal Reserve’s mandates for the process of administering loans both for individuals and businesses.

Section III- The Federal Reserve Chairman

By the enactment of this bill the power OF leadership of the Federal Reserve Bank shall be vested in a chairman officially entitled the Chairman of the Federal Reserve Bank of Cyberia. He shall be a federally appointed official and his appointed by the appropriate process described by the constitution of the Commonwealth. The Chairman shall faithfully execute the policies of the Federal Reserve, The Legislative Branch of Cyberia, The Office of the President of the Commonwealth of Cyberia, and the Treasury Department. Before the Chairman takes hold of his power he must swear to the following oath “I (name here), do so solemnly swear (or affirm) to protect the interests of the Commonwealth and faithfully execute its economic policy.” After he affirms to this oath he may only be removed if the President so requests it and a majority vote in the Chamber of Deputies, which will later be vested in the Senate upon its formation, will remove the Chairman from his position. The Chairman serves a one year term without limit to the number of terms he may serve. The Chairman is vested with all authority to hire and release employees from Federal Reserve employment. The Chairman holds the ability to appoint all Governors of the provincial branches of the Federal Reserve. He is responsible for controlling all audits of the Bank of Cyberia and all other banks. The Chairman shall appoint a Federal Reserve Board and Vice Chairman. The Chairman will formulate Federal Reserve policy based on input from Banking and Currency committee, Treasury Department, and the Federal Reserve Board. He shall be subject to all laws of the commonwealth and must serve any punishment a court may determine he has warranted. He may be subpoenaed by the Banking and Currency committee at any time. He shall an employee of the Treasury Department. He shall behave without partisan biases.

Section IV-The Vice Chairman of the Federal Reserve Bank of Cyberia

The Vice Chairman shall hold the position of advisor to Chairman. He will be consulted on the policy of the Federal Reserve Bank. He will serve as liaison to the Treasury Department. He will preside over all meetings of the Federal Reserve Board in which the Chairman cannot attend. He shall be appointed by the Chairman for purpose of a cooperative relationship between the two offices. In the case of the resignation of the Chairman or of his removal or inability to hold office, the Vice-Chairman will serve out the remainder of his term.

Section V- The Federal Reserve Board

The Federal Reserve Board shall be appointed by the Chairman. It shall never contain less than 3 members and never more than 10. The Board will work with the Chairman on Federal Reserve policy. It will collect and analyze policy of the legislative branch and Treasury Department. It shall propose an agenda each quarter to the Chairman. It will be charged with the power to regulate the money supply. It will perform audits on the banks of Cyberia. It will analyze the market. It shall approve all appointments of provincial governors.

Section VI- The Banking and Currency Committee

Upon the enactment of this bill, the Chamber of Deputies shall appoint no less than 5 members to a committee entitled the Banking and Currency Committee. The Committee shall elect a Chairman who will oversee the Committee and set the agenda for the Committee. The Committee will be charged with the oversight of the Federal Reserve Bank of Cyberia, the Bank of Cyberia monopoly, and when other banks emerge it shall oversee them as well. The Committee shall determine the appropriate time for the Bank of Cyberia’s monopoly’s termination which shall be decided by the Committee and then shall be considered by the entire Chamber of Deputies. The Committee shall determine the appropriate time for the Bank of Cyberia to end salaries. It shall set the money supply for the Federal Reserve. All actions by the Committee must be approved by the entire legislative body and Presidential signature, as defined in the Constitution. The Committee will consult both the Minister of Treasury and the Federal Reserve Chairman before it makes any major policy initiatives. It may subpoena the Federal Reserve Chairman at any time. It shall determine if either the Bank of Cyberia or the Federal Reserve engage in unfair business or policy practices. In the instance that other banks have been established the Federal Reserve shall report any misconduct to the Committee. It may appoint a special counsel to investigate such practices. The Committee must appoint such a counsel to audit the records of the Federal Reserve Bank and the Bank of Cyberia monopoly no less than twice a year.

Section VII-Audits

It shall vested in the Federal Reserve Board and the appointee of the Banking and Currency Committee to conduct all audits on the banking and currency system of the Commonwealth. The Federal Reserve Board shall appoint an investigator or investigative panel to conduct audits periodically and unannounced upon all registered Banks and Brokerage Companies. The Board shall then hold a hearing on the information obtained. If illegal or unethical acts are found to be committed by those audited the Chairman must be informed and upon his understanding of the situation, he is to formally request an investigation by the Banking and Currency Committee. The Banking and Currency Committee shall be vested with the power to appoint an independent counsel which will perform an audit no less than twice a year on the Federal Reserve Bank and the Bank of Cyberia Monopoly. In the instance of misconduct by either organization a full investigation will commence by the Committee. The Federal Reserve Chairman’s powers may be suspended in this instance.

Section VIII-Treasury Department

It shall be the power of the Department of Treasury to propose a budget for the executive branch, manage the account and the investments of the federal government, and to devise a formal system of investing in stocks and bonds and how those bonds would be measured. The Minister of the Treasury shall be Comptroller of the Currency. The Federal Reserve shall be a subsidiary of the Treasury department.

Section IX- The currency and the 3/5ths rule

By the enactment of this bill the currency of Cyberia shall be entitled Cy and shall be represented by the symbol ~ . One Cy shall equal 3/5ths of a US currency (dollar) for the purpose of maintaining a realistic value for the currency. It shall therefore fluctuate as the US currency inflates and deflates. The Minister of Treaury and the Treasury Department shall be vested with the ability to overturn the 3/5ths rule if it sees fit.

Section X- The Money Supply

The amount of money supply exists as shall be determined by the legislative branch of the Commonwealth. It shall be vested in the Federal Reserve to disperse that money supply so as to allow the economy to grow. The Federal Reserve may set salaries that will be dispersed into individual accounts within the Bank of Cyberia. It shall be determined by the Federal Reserve Board when enough of the money supply has been released. If the Federal Reserve Board fails to take such an action the Banking and Currency Committee may demand that the Federal Reserve Chairman halts the dispensing of funds from the money supply.

Section XI-Interest Rates

Interest rates and the rate the Bank of Cyberia monopoly may charge shall be determined by the Federal Reserve.

Section XII-The President’s Role

The President may request the resignation of the Federal Reserve Chairman. In the instance that the Federal Reserve Chairman refuses to relieve himself of power, the President may request the Chamber of Deputies to vote to remove him. This is agreed to by the Chamber by a simple majority vote. The President may request a special report on the state of the economy from the Federal Reserve.

Section XIII- Loans

The amount of money each bank must retain and cannot loan shall be determined by the Federal Reserve. The banks may have any policy for loaning money they wish, that is in accordance with federal laws and the laws of whichever province they are respective to.