A bill to amend the Federal Reserve Act to provide authority for Federal reserve banks to lend obligations to the Secretary of the Treasury and for the Secretary of the Treasury to borrow such obligations to meet the Treasury's short-term cash needs.

Amends the Federal Reserve Act to authorize the Federal Reserve banks to lend bonds, notes, and other obligations of Federal, State, and local governments to the Secretary of the Treasury under the direction and regulation of the Federal Open Market Committee.

Authorizes the Secretary of the Treasury to sell such obligations in the open market in order to meet the short-term cash needs of the Treasury. Directs the Secretary to repurchase such obligations and return them to the bank from which they were obtained within six months of their sale in the open market.