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"I propose that we SEIZE only the Federal Reserve Bank of New York. and install it as a Bureau of the United States Department of Treasury."

That is still a bad idea. For one it violates the separation of powers. You'd have a bank capable of performing open market transactions with the Treasury that is now part of the Executive instead of a quasi-public or private (whatever you want to call it) corporation set up by Congress. Obama couldn't just order the Treasury to issue debt, up to the limits imposed by congress, he could order the NY Federal Reserve Bank to buy that debt at whatever price Obama designated.

"But as you said: the federal reserve banks themselves are private corporations. "

They can be called that because the member banks do own the private corporation. But because of the following differences with normal private corporations, I don't really consider them to be private.

Dividends are fixed at 6% by law,
the bank is not operated for profit,
membership, not stock ownership, determines voting power,
a third of the directors are appointed, by the Federal Reserve Board of Governors which itself is appointed by the President, and
restrictions forcing another third of directors to represent the business community, instead of the bank members.