The Federal Reserve banks may use their funds (1) in lending to member banks and in buying bills, notes, revenue bonds and warrants due within six months in anticipation of taxes or assured revenues by municipalities, etc, (2) in buying in the open market commercial drafts accepted or indorsed by member banks, thereby coming into direct touch with business men and producers. The Federal Reserve banks can buy and sell United States, State or municipal bonds or notes and gold bullion at home or abroad in the open market.