frsbog_mim_v38_complete.pdf

FEDERAL RESERVE BOARD WASHINGTON

A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O T H E FEDERAL R E S E R V E BOARD 3 1 9

January 6, 1933.

SUBJECT: Assessment for General Expenses of the Federal Reserve Board January 1 to June 30, 1933.

Dear Sir:

Confirming te legraphic advice, there i s enclosed

herewith copy of a reso lut ion adopted by the Federal Reserve

Board levying an assessment upon the several Federal reserve

banks of an amount equal t o nine hundred f i f t y - o n e ten thou-

sandths of one per cent (.000951) of the t o t a l pa id- in cap i ta l

stock and surplus of such banks as of the c lose of business

December 31, 1932, t o defray the estimated general expenses of

the Board from January 1 to June 30, 1933, and spec i fy ing how

such assessment s h a l l be paid.

Very t r u l y yours,

J , C. Noell F i sca l Agent.

Enclosure.

SENT TO CHAIRMAN OF EACH FEDERAL RESERVE BANK. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

X-7519-a

RESOLUTION LEVYING ASSESSMmT.

MEREAS, under Sect ion 10 of the act approved December 23, 1913, and known as the Federal Reserve Act, the Federal Reserve Board i s em-powered to levy semi-annually upon the Federal reserve banks, in propor-t i o n to t h e i r cap i ta l stock and surplus, an assessment s u f f i c i e n t t o pay i t s estimated expenses, including the sa lar i e s of i t s members, a s s i s t a n t s , attorneys , experts and employees, for the half year succeeding the levy-ing of such assessment, together with any d e f i c i t carried forward from the preceding half year; and

'7HEREAS, i t appears from estimates submitted to and considered by the Federal Reserve Board that i t i s necessary that a fund equal t o nine hundred f i f t y - o n e t en thousandths of one per cent (#000951) of the t o t a l pa id- in capi ta l stock and surplus of the Federal reserve banks be created for the purpose hereinbefore described, exclusive of the cost of engraving and printing of Federal reserve notes;

NOW, THEREFORE, BE IT RESOLVED BY THE FEDERAL RESERVE BOARD, That:

(1) There i s hereby lev ied upon the several Federal reserve banks an assessment in an amount equal t o nine hundred f i f t y - o n e t en thou-sandths of one per cent (,000951) of the t o t a l pa id- in cap i ta l and surplus of each such bank at the c lose of business on December 31, 1932;

(2) Such assessment shal l be paid by each Federal reserve bank in two equal instal lments on January 7, 1933, and March 1, 1933, respec-t i v e l y ; by cred i t ing the amount thereof on the books of the Federal re -serve bank in the General Account of the Treasurer of the United S ta te s , for credi t t o the Federal Reserve Board in an account designated and known as "Salaries and Expenses, Federal Reserve Board, Special Fund;"

(3) For each such instal lment of such assessment, each Federal reserve bank sha l l i s sue and send t o the Treasurer of the United States a c e r t i f i c a t e of deposit evidencing said deposit and the f a c t that i t i s in payment of the assessment levied by the Federal Reserve Board for i t s gen-eral expenses and i s t o be credited to the Federal Reserve Board in an ac -count designated and known as "Salaries and Expenses, Federal Reserve Board, Special Fund;" and

(4) A dupl icate copy of each such c e r t i f i c a t e of deposi t , together with a statement showing the amount of the capi ta l and surplus of the Fed^ eral reserve bank at the c lose of business on December 31, 1932, sha l l be sent t o the Federal Reserve Board on the date of the payment of each insta l lment .

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

3

X-7321

F E D E R A L R E S E R V E B O A R D

STATEMENT FOR THE PRESS.

For p u b l i c a t i o n i n Morning Papers, Friday, January 6, 1933.

The Open Market P o l i c y Conference of the Federal Reserve System,

wi th r e p r e s e n t a t i v e s from a l l of the twelve Federal r e s e r v e banks i n

attendance, concluded i t s meetings w i th the Federal Reserve Board today.

The s e s s i o n s of the Conference were devoted to a review of economic,

"business, f i n a n c i a l and banking condi t ions i n each of the twelve Federal

reserve d i s t r i c t s and to the economic and f i n a n c i a l s i t u a t i o n i n the

country as a whole. Par t i cu lar re ference was made i n the d i s c u s s i o n s

to the workings and e f f e c t s of the open market p o l i c y thus f a r pursued

by the Federal Reserve System during the course of the economic depress ion .

Consideration was a l s o g iven to the a t t i t u d e of the System i n ad jus t ing i t s

operations to condi t ions and needs as they may change and develop.

The f i r s t and immediate o b j e c t i v e of the open market p o l i c y was to

contr ibute f a c t o r s of s a f e t y and s t a b i l i t y i n meeting the f o r c e s of d e f l a t i o n .

The larger o b j e c t i v e s of the System's open market p o l i c y , to a s s i s t and

a c c e l e r a t e the f o r c e s of economic recovery, are now assuming importance.

With t h i s purpose i n mind, the Conference has decided that there should

be no change i n the System's p o l i c y intended to maintain a s u b s t a n t i a l amount

of excess member bank r e s e r v e s , the continuance of which i s deemed d e s i r a b l e

i n present condi t ions . Adjustments i n the System's ho ld ings i n the open

market account w i l l be i n accordance wi th t h i s p o l i c y .



A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O T H E FEDERAL R E S E R V E BOARD

X-7322

January 6, 1933.

SUBJECT: Hew Issue Treasury B i l l s .

.Dear S ir :

In connection with te legraphic transact ions i n

Government s e c u r i t i e s "between Federal reserve banks,

the code word "ITOXDIVER" has t een designated to cover

a new i s s u e of Treasury B i l l s , dated January 11, 1933,

and maturing Apri l 12, 1933.

This word should be inser ted i n the Federal r e -

serve telegraph code book, fo l lowing the supplemental

code word "UCOQDITTY'1 on page 172.

Very truly yours,

J . C. Noe l l , Ass i s tant Secretary.

TO GOVERNORS OF ALL F . E. BANKS



A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O T H E F E D E R A L R E S E R V E B O A R D

X-7323

January 13, 1933.

SUBJECT: Hew Issue Treasury B i l l s ,

Dear Sir:

In connection with telegraphic transact ions in

Government s e c u r i t i e s between Federal reserve banks,

the code word "NOXDOING" has been designated to cover

a new i s sue of Treasury B i l l s , dated January 18, 1933,

and tiaturing April 19, 1933*

This word should be inserted in the Federal re -

serve telegraph code book, fol lowing the supplemental

code word "ROXDIVER" on page 172i

Very truly yours,

J . C. Noe l l , Ass is tant Secretary.

TO GOVERNORS OF ALL F. B. BANKS


X-7324

STATEMENT OF BUREAU OF ENGRAVING- MD PRINTING

Federal Reserve Notes, Series 1928.

December 1 to 29, 1932.

Total $5 $10 $20 Sheets Amount

Boston, 37,000 42,000 10,000 89,000 $8,054.50 Phi ladelphia, 54,000 33,000 25,000 112,000 10,136.00 Cleveland, 70,000 48,000 27,000 145,000 13,122.50 Richmond, 18,000 mm 18,000 1 ,629.00 Atlanta, 12,000 10,000 22,000 1 ,991.00 Chicago, - 18,000 10,000 28,000 2 ,534.00 St . Louis 21,000 13,000 10,000 44,000 3 ,982 .00 Minneapolis 10,000 10,000 905.00 Kansas City 10,000 - - 10,000 905.00 San Francisco 58,000 24,000 22,000 104,000 '9 ,412.00

262,000 216,000 104,000 582,000 $52,671.00

582,000 sheets , @ $90.50 per M, $52,671.00


FEDERAL RESERVE BOARD

WASHINGTON ADDRESS OFFICIAL C O R R E S P O N D E N C E T O

T H E FEDERAL R E S E R V E B O A R D

X-7325

January 13, 1933.

SUBJECT: Extension of Provis ions of Sect ion 10(b) and the Second Paragraph of Sect ion 16 of Federal Reserve Act, as Amended.

Dear S ir :

For your information there i s transmitted herewith

copy of a l e t t e r dated January 9, 1933, addressed to the

Chairman of the Senate Committee on Banking and Currency by

Governor Meyer i n which the Federal Reserve Board recommended

the enactment at t h i s se s s ion of the Congress of appropriate

l e g i s l a t i o n extending for at l e a s t one year from March 3 ,

1933, the*authority conferred "by s e c t i o n 10(b) and by the

second paragraph of s e c t i o n 16 of the Federal Reserve Act as

amended by the Act of February 27, 1932, known as the G-las s~

Steagal l Act.

A s imi lar l e t t e r bearing the same date was addressed

the Chairman of the House Committee on Banking and Currency.

Very truly yours,

Chester Morri l l , Secretary.

Inc losure .

TO CHAIRMEN AND GOVERNORS OF ALL F. R. BANKS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

C O P T X-7325~a

Jan 9 1933

Honorable Peter Norbeck, Chairman, Senate Committee on Banking and Currency, United States Senate, Washington, D. C.

Dear Mr. Chairman:

The Federal Reserve Board r e s p e c t f u l l y recommends that

appropriate l e g i s l a t i o n he enacted at t h i s s e s s ion of the Congress

extending for at l e a s t one year from March 3, 1933, the authori ty

conferred by sec t ion 10(h) and hy the second paragraph of s e c t i o n

16 of the Federal Reserve Act as amended hy the Act of February 27,

1932, known as the G-lass-Steagall Act .

The G-lass-Steagall Act amended the Federal Reserve Act

"by adding thereto s e c t i o n 10(b) , which authorizes the Federal r e -

reserve banks, u n t i l March 3, 1933, i n exceptional and exigent circum-

stances and subject to the a f f i rmat ive ac t ion of not l e s s than f i v e

members of the Federal Reserve Board, to make advances to member

banks which lack s u f f i c i e n t e l i g i b l e and acceptable a s s e t s to enable

them to obtain adequate credi t accommodations from the Federal r e -

serve banks by the customary methods. TZhile demands upon the Fed-

eral reserve banks for accommodations under s e c t i o n 10(b) have not

been large , the ex i s tence of the authority to extend such accomoda-

t ions has been a h e l p f u l factor i n the disturbed s i t u a t i o n through

which we have been pass ing and has enabled the Federal reserve banks

to render serv ice to individual member banks i n a number of ins tances .

The G-lass-Steagall Act amended the second paragraph of


9 X-7325-a

honorable Peter ITorbeck - (2)

s e c t i o n 16 of the Federal Reserve Act so as to provide that u n t i l

March 3, 1933, should the Federal Reserve Board deem i t i n the publ ic

int .erest , i t may, upon the a f f irmat ive vote of not l e s s than a major-

i t y of i t s members, authorize the Federal reserve banks to o f f e r , and

the Federal reserve agents to accept , as c o l l a t e r a l secur i ty for Fed-

eral reserve notes , d i rec t obl igat ions of the United S t a t e s . This

amendment provides that such authorizat ion s h a l l terminate on March

3, 1935, and such ob l igat ions sha l l be re t i red as s e c u r i t y for Fed-

eral reserve notes . On May 5, 1933., the Federal Reserve Board author-

ized the Federal reserve banks to pledge d irec t ob l igat ions of the

United States as c o l l a t e r a l for Federal reserve notes and the proced-

ure therefor was se t out f u l l y i n the Federal Reserve B u l l e t i n for

the month of May, 1932, a copy of which i s inc losed for your conveni-

ence. In the opinion of the Board, the authority granted by sec t ion

3 of the Glass-Steagal l Act has served a very u s e f u l purpose.

In t h i s connection, i t may be s tated that the Federal

reserve agents and the Governors of the Federal reserve banks have

recommended unanimously that the authority conferred by these pro-

v i s i o n s be extended for at l e a s t one year and that the Federal Ad-

v isory Council, at i t s meeting i n Washington on November 17, 1932,

adopted the fo l lowing reso lut ion:

"It i s the sense of the Federal Advisory Council that Congress be asked to extend for a period of at l e a s t one year the provis ions of Section 10(b) and Sect ion 3 of the Glass-Steagal l B i l l , H. R, 9203."


t o X-7325-a

Honorable Peter iTorbeck - (3)

TThile the Grlass-Steagall Act was under cons idera t ion i n

Congress the quest ion of the a d v i s a b i l i t y of l i m i t i n g to I/iarch 3 ,

1953, the "period i n which the author i ty conferred "by the second and

th ird s e c t i o n s thereof could be exerc i sed was d i scussed and i t was

pointed out then that i f experience should i n d i c a t e the wisdom of

extending the per iod , there would "be ample time "before i t s exp ira -

t i o n f o r Congress to take the necessary a c t i o n . The Federal Reserve

Board f e e l s that the Congress might w e l l consider the enactment of

these prov i s i ons i n permanent form, ^'itli whatever safeguards may "be

deemed appropriate as to the e x e r c i s e of the author i ty granted "by

them, "but, i n any event , i t i s the opinion of the Board t h a t , i n

view of e x i s t i n g cond i t ions , i t would "be h ighly d e s i r a b l e to extend

such author i ty f o r at l e a s t one ;~ear beyond March 3, 1933,

R e s p e c t f u l l y ,

Eugene Meyer, Governor.

Inc losure .





X-7327

January 18, 1933.

SUBJECT: Holidays during February, 1933.

Dear Sir:

As February 12, Lincoln's Birthday, f a l l s on Sunday, the holiday

w i l l "be observed on Monday, February 13, when there w i l l be ne i ther

t rans i t nor Federal reserve note c learing and the books of the Board's

Gold Settlement Fund w i l l be c losed . For your information, the o f f i c e s

of the Federal Reserve Board and the fo l lowing Federal reserve banks and

branches w i l l be open for bus iness on February 13:

Boston !

Cleveland Cincinnati

Richmond Baltimore Charlotte

Atlanta New Orleans Birmingham Jacksonville Havana Agency

St . Louis L i t t l e tiodk

Kansas City Oklahoma City

On Wednesday, February 22, Washington's Birthday, the o f f i c e s of

the Federal Reserve Board and a l l Federal reserve banks and branches

w i l l be c lo sed .

On Friday, February 24, the Havana Agency of the Federal Reserve

Bank of Atlanta w i l l be c losed in observance of the anniversary of the

Revolution of Baire ,


X-7327

On Tuesday, February 28, Mardi Gras Day, the Hew Orleans and

Birmingham Branches of the Federal Reserve Bank of Atlanta r i l l be

c losed. Please include t r a n s i t c learing c r e d i t s of February 28 f o r New

Orleans Branch with your c r e d i t s in the c lear ing of March 1 .

Please n o t i f y Branches.

Very truly yours,

J . C. Noe l l , Ass istant Secretary.

TO ALL GOVERNORS.





X-7328 January 19, 1933.


Dear S i r :

In connection wi th te legraphic t ransact ions in


the code word "HOXDOWDY" has been des ignated to cover

a new i s s u e of Treasury B i l l s , dated January 25, 1933,

and maturing Apri l 26, 1933.

This word should be inser ted in the Federal r e - .

serve te legraph code book, fo l l owing the supplemental

code word "NOXDOIITG" on page 172.

Very tru ly yours,

J. 0. Noell, A s s i s t a n t Secretary .

TO GOVERNORS OF ALL F. R. BANKS.



ADDRESS OFFICIAL C O R R E S P O N D E N C E TO T H E F E D E R A L R E S E R V E BOARD v a (OG y

> V ' January 33, 1933.

SUBJECT: Discounts for IndividuaiSPartnerships and Corporations

Dear Sir: ,

The author i ty granted.by the Fedet^#^^jw^?foard to a l l Federal

reserve banks in i t g ' c i i S W a r . ^ r July 2 6 S & ' " 1 S t ^ 7 5 6 1 a ) to discount

e l i g i b l e no te s , d r a f t s and b i l l s of exchacgf i -oa^^diTt i taals , partnerships

and corporations, subject to the provis ions of the law/* the Board's regu~

l a t i o n s , and that c ircu lar , w i l l expire a t the c lose of business on

January 31, 1933, and the Board has decided to extend such authorizat ion

for an addi t iona l s i x months. Section II of the Board's c i rcu lar of July

26, 1932, en the subject of "Discounts for Individuals , Partnerships and

Corporations" has been amended, therefore, to read as f o l l ow s : y

"AUTHORIZATION BY THE FEDERAL RESERVE BOARD. " ' " *"** ' HThe Federal Reserve Board, pursuant to the power con-

ferred upon i t "by the amendment hereinbefore quoted, hereby authorizes a l l Federal reserve banks, f o r a period ending at the c lo se of business on July 31, 1933, to discount e l i -g i b l e notes , d r a f t s and b i l l s of exchange for ind iv iduals , partnerships and corporations, subject te the provis ions of the law, the Board's regulat ions , anc. th i s c ircular, 1 1

Very truly yours, #

Chester Morri l l Secretary

TO ALL CHAIBMEU AND GOVEBITORS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis


WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO

THE FEDERAL RESERVE BOARD

X-7331

January 24, 1933.

SUBJECT: New Issue of Treasury Botes.

Dear S ir :

In connection with te legraphic transactions "between

Federal reserve "banks covering Government s e c u r i t i e s , the

fo l lowing code word has "been designated to cover a new i ssue

of Treasury Notes:

"NOWHYNT" 2 5 /8$ Treasury Notes, Series A-1938, to "be dated February 1, 1933, and to mature February 1, 1938,

This code word should be inserted in the Federal

Reserve Telegraph Code book, fo l lowing the supplemental code

word "NOWHYMN" on page 172.

Very truly yours,

J . C. Noel l , Ass i s tant Secretary.

TO GOVBBNOHS OF ALL F. R, BANKS.



A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O T H E FEDERAL R E S E R V E B O A R D

X-7333

January 24, 1933,

SUBJECT: Proposed Amendment to the Bankruptcy Laws,

Dear S ir :

The Committee on the Judiciary of the House of

Representatives on January 23, 1933 reported favorably

H.R. 14359, a "bill to amend the Federal bankruptcy

s t a t u t e s so as to provide a procedure whereby, under

certa in condi t ions , an individual debtor may obtain a

composition or extension of the time of payment of h i s

debts and a corporate debtor may e f f e c t a plan of r e -

organizat ion. A copy of t h i s b i l l i n the form as

reported by the Committee and a copy of the Committee's

report are transmitted herewith for your information i n

view of the f a c t that the r igh t s of Federal reserve

banks as cred i tors may be a f f e c t e d i f the b i l l i s

enacted into law.

Very tru ly yours,


Inc losures ,

TO GOVERNORS OF ALL F. R. BAMS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

1.7


X-7335 A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O

T H E F E D E R A L R E S E R V E B O A R D

January 25, 1933.

Dear S ir ;

I i n c l o s e a copy of a memorandum, prepared under

my d i rec t i on at the request of Representative S t e a g a l l ,

Chairman of the House Committee on Banking and Currency,

and submitted to him on Monday, r e l a t i n g to the exten-

s ion of Sect ions 2 and 3 of the GlassSteagall Act of

February 27, 1932.

On Monday the Committee held a hearing on the

b i l l introduced by Representative Steagal l (H. R. 14 ,252) ,

extending f o r one year the sec t ions referred t o , but the

memorandum was not incorporated i n the record of the

hearing, and I am sending you the inc losed copy merely

for your information,

Very truly yours,

Eugene Meyer, Governor.

Inc losure .

TO CHAIRMEN AND GOVERNORS OF ALL F. R. BANKS.




X-7336

January 27, 1933-

SUBJECT: Expense, Main Lines, Leased Wire System, December, 1932.

Dear Sir:

Inclosed herewith you w i l l f ind two mimeographed statements, X-733&-& and X-7336-b, covering in d e t a i l operations of the main l i n e s , Leased Wire System, during the month of December, 1932.

Please credi t the amount payable by your bank in the general account, Treasurer, U. S. , on your books, and i ssue C/D Form 1, National Banks, for account of "Salaries and Expenses, Federal Reserve Board, Special Fund", Leased Wire System, sending dupl icate C/D to the Federal Reserve Board.

Very truly yours,

F i sca l Agent.

Inclosures .

TO GOVERNORS OF ALL F. R. BANKS.


X-7336-a

REPORT SHOmiG CLASSIFICATION AND NUMBER OF wORDS TRANSMITTED OVER MAIN LINES OF THE FEDERAL RESERVE LEASED TIRE SYSTEM FOR THE MONTH OF DECEMBER, 1932.

Words sent by Net Federal Business New York charge- reserve reported able to other bank Percent of t o ta l

From by banks F. R. Banks (1) business bank business (*)

Boston 34,985 2,144 37,129 4 .17 New York 187,219 - 187,219 21.05 Phi ladelphia 37,843 1,979 39,822 4.48 Cleveland 64,487 i , 7 H 66,198 7 .44 Richmond 56,805 1,607 58,412 6.57 Atlanta 58,448 2,067 60,515 6 .80 Chicago 93,122 2,238 95,360 10.72 St. Louis 65,679 2,584 68,263 7 .68 Minneapolis 32,785 1,670 34,455 3.87 Kansas City 70,937 1,771 72,708 8.17 Dal las 64,030 2,645 66,675 7 .50 San Francisco 99,372 3.311 102.683 11.55

Total 865,712 23,727 889,439 100.00

310,1+52 1,199,291

449.781

1,649,672

(*) These percentages used in ca lculat ing the pro rata share of leased wire expense as shown on the accompanying statement (X-7336-b).

F. R. Board business

Reimbursable business Incoming and Outgoing

Total words transmitted over main l i n e s . .

(1) Number of words sent by New York to other F. R. Banks for the ir so le b e n e f i t charged to banks indicated in accordance with act ion taken at Governors' Conference November 2-4 , 1925


X-'OjG-b

REPORT OF EXPENSE MAIN LINES FEDERAL EES3BVE LEASED WIH5 SYSTEM, DECEMBER, 1932.

Name of Bank Operators sa lar i e s

Operators' overtime

Wire rental

Total expenses

Pre rata share of to ta l expenses Credits

Payable to Federal Reserve Board

Boston $260.00 $ - $ $260.00 ' $711.37 $260.00 $451.37 New York 1,170.68 2.00 - 1,172.68 3,590.98 1,172.68 2,418.30 Phi ladelphia 225.00 - 225.00 764.26 225.00 539-26 Cleveland 306.66 - 306.66 1 ,269.21 306.66 962.55 Richmond 190.00 - 230.00 (&) 420.00 1 ,120.80 420.00 700.80 Atlanta 270.00 270.00 1 ,160.03 270.00 890.03 Chicago 3,794.71 (#) 11.00 - 3,805.71 1 ,828.76 3,805.71 1,976.95 (*) St. Louis 195.00 1.00 - 196.00 1,310.15 196.00 1,114.15 Minneapolis 201.58 - 201.58 660.20 201.58 458.62 Kansas City 287-50 - - 287.50 1 ,393.74 287-50 1 ,106.24 Ball as 251.00 ~ . - 251.00 1 ,279.45 251.00 1,028.45 San Francisco 380.00 - 380.00 1,970.35 . 380.00 1,590.35 Federal Reserve Board 15,677.88 15.677.88 -

Total $7,532.13 $ 14.00 $15,907.88 $23,454.01 $17,059.30 $7,776.13 $11,260.12 1,976.95 (a)

$ 9,283.17 Reimbursable charges;

Treasury Department $2,889.52 Reconstruction Finance Corporation . 3379- 33 Federal Farm Loan Board 26. J1 Federal Farm Beard H i . 81 Compt. of Currency, Insolv. Bank Div. 57.34

Less: Reimbursable charges 6,394.71 $17,059.30

(&) Main l i n e rental , Richmond-Washington. (#) Includes sa lar i e s of Washington operators. ( ) Credit. (a) Amount reimbursable to Chicago.


21 FEDERAL RESERVE BOARD

WASHINGTON X-7337

A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O JanUBry 31, 1933, THE FEDERAL R E S E R V E B O A R D

Dear Sir:

From the minutes of the Federal Reserve Agents' Conference

held on ITovember 15 and 16, 1932, the Federal Reserve Board notes

that during the d i scuss ion of the general subject of membership iq,

the Federal Reserve System and what can be done to bring i n more

e l i g i b l e nonmember banks, a t t en t ion was ca l l ed to the Federal Reserve

Board's l e t t e r of June 19, 1931 (X-6914), which required that at the

time of admission of a State bank or trust company i t should be f r e e

from a l l known l o s s e s or depreciat ion, so that i t s statement would

r e f l e c t as nearly as pos s ib l e the value of i t s a s s e t s . I t appears

that several of the Federal reserve agents s tated that on account of

bond depreciat ion and other unsat i s fac tory conditions very few non-

member banks could qua l i fy for membership at the present time.

In t h i s connection the Board des ires to c a l l the a t t e n t i o n

of the Federal reserve agents to i t s l e t t e r of March 9, 1932 (X-7113),

transmitt ing for the i r information and guidance a copy of a l e t t e r to

the Federal Reserve Agent at the Federal Reserve Bank of Richmond with

regard to the treatment of depreciat ion i n the investment accounts of

State banks and trust companies applying for membership i n the System.

In the l e t t e r to Mr. Eoxton i t was pointed out that i n some recent


X-7337

2

cases the Board, had not i n s i s t e d upon s t r i c t observance of the p o l i c y

out l ined in i t s l e t t e r of June 19, 1931, and had approved appl icat ions

for membership i n the System made by banks whose managements were

competent and whose a f f a i r s otherwise were general ly s a t i s f a c t o r y ,

upon condit ion that they should, prior to admission to the System,

charge off a l l known l o s s e s and depreciat ion on bonds other than

those c l a s s i f i e d i n the four highest grades by a recognized i n v e s t -

ment serv ice organization regularly engaged i n the -business of rat ing

or grading bonds.

As a number of the Federal reserve agents no doubt are

aware, the Board has taken similar ac t ion with respect to bond

depreciat ion i n a c t i n g upon appl icat ions for membership which, s ince

the date of the l e t t e r to Mr. Hoxton, have been submitted with the

favorable recommendations of the d irectors of the Federal reserve

banks of the d i s t r i c t s concerned.

Very truly yours,


TO ALL F. B. AGBBTS.



A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O T H E F E D E R A L R E S E R V E B O A R D

X-7338

February 3, 1933.


Dear S ir :

In connection with telegraphic transact ions in


the code word "NOXDOTO" has been designated to cover

a new i s sue of Treasury B i l l s , dated February 8, 1933,

and maturing May 10, 1933.

This word should be inserted in the Federal r e -


code word "H0XD0WDY" on page 172.

Very truly yours,

J . C. Uodll , Ass is tant Secretary.

TO GOVERNORS OF ALL F. B. BANKS.



A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O T H E FEDERAL R E S E R V E B O A R D X~7341

February 9, 1933.


Dear Sir:

In connection with te legraphic transact ions in

Government s e c u r i t i e s betweeil Federal reserve banks,

the code word 'TOXHREGS" has been designated to cover

a new i ssue of Treasury B i l l s , dated February 15, 1933,


This word should be inserted in the Federal r e -

serve telegraph code book, fol lowing the supplemental

code word "NOXDOYilT" on page 172.

Very truly yours,

J . C. ffoell, Ass is tant Secretary.

TO GOVERNORS OF ALL F. B. BAMS,



A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O T H E F E D E R A L R E S E R V E B O A R D X-7342

February 9, 1933.

SUBJECT: Shipment of Treasurer's Transcript with accompanying Checks and Warrants.

Bear Sir:

Conferences have been held with representat ives of the Treasury i

Department with a view to ascerta ining the most des irable procedure to

be fol lowed in sending the Treasurer's da i l y transcript and the

accompanying checks and warrants to the Treasury Department in Washington.

This matter was the subject of the Board's l e t t e r of November 30, 1918,

(X-1296), but because of the recent correspondence with representat ives

of the post O f f i c e Department regarding the manner in which cash l e t t e r s

and the accompanying checks should be shipped, i t was thought advisable

to reopen the matter.

As a re su l t of these conferences, i t i s suggested that in the

future your bank adopt the pract ice of forwarding Treasury forms 17, 17C,

17H, 17K, and 17M as f i r s t c l a s s mail , and Treasury forms 17A, 1TB, 17E

and 17G, together with the accompanying checks and warrants, as express

matter.

These l a s t four forms const i tute nothing more than adding machine

l i s t s , and as you were advised in the Board's l e t t e r of November 12, 1932,

(X-7290), the Post Of f i ce Department has no object ion to the shipment of

checks and warrants by express when accompanied only by adding machine?


X-7342

l i s t s . Moreover, i t i s understood, that the Treasury Department contem-

p la te s a rev i s ion of these four forms omitting some of the matter which

now appears on them. This i s "being done, however, merely out of an

abundance of caution, in order to avoid any poss ib le question regarding

them.

The Treasury o f f i c i a l s have stated that they would prefer to

have a l l of the forms inc losed in the same package with the checks and

warrants in so far as t h i s pract ice i s reasonably p o s s i b l e , because re -

ce iv ing them a l l at the same time would f a c i l i t a t e and expedite handling.

I t i s , therefore , suggested that , in cases where i t i s pract icable to do

so, the forms which cannot be sent as express matter be sent as f i r s t

c la s s mail , inc losed in the same express package with the checks and

warrants. In t h i s connection, a t t ent ion i s c a l l e d to the Board's l e t t e r

of December 23, 1932, (X-7315), with reference to the provis ions of s ec -

t ion 1712 of the Posta l Laws and Regulations of 1932, which permits the

shipping of matter which f a l l s within the category of " l e t t ers" in an

express package, provided such matter i s inc losed in a government stamped

envelope of the proper denomination which i s d irected , sealed and dated,

the purpose of t h i s regulat ion obviously being to require the payment of

the necessary f i r s t c l a s s postage and to prevent the government stamped

envelope being used more than once.

Very truly yours,


TO GOVBEIOHS OP ALL 3\ B. BAMS.



WASHINGTON

A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O T H E FEDERAL R E S E R V E B O A R D X-7343

February 18, 1933.


Dear S ir :


Government s e c u r i t i e s "between Federal reserve hanks,

the code word "1J0XDHBITCH" has been designated to cover

a new i s s u e of Treasury B i l l s , dated February 23, 1933,


This word should be inserted i n the Federal r e -


code word "HOXDEBG-S" on page 172.

Very tru ly yours,

J . C. Uoe l l , Ass i s tant Secretary.

TO GOVERNORS OF ALL F. R. BATIKS,



WASHINGTON

ADDRESS OFFICIAL C O R R E S P O N D E N C E T O T H E FEDERAL R E S E R V E B O A R D

x-7344

February 21, 1933

SUBJECT: Expense, Main Lines, Leased. Wire System, January, 1933*

Dear Sir*

Inc losed herewith you w i l l f i n d two mimeographed statements, X - 7 3 ^ ~ a and X-73^-"b covering i n d e t a i l operations of the main l i n e s , Leased Wire System, during the month of January, 1933*

Please credi t the amount payable by your bank in the general account, Treasurer, U. S . , on your books, and i s sue c / D Toot 1, National Banks, for account of "Salaries and Expenses, Federal Beserve Board, Special Fund", Leased Wire System, sending dupl icate C/D to the Federal Reserve Board.

Very truly yours,

F i s c a l Agent.

Inc losures .

TO GOVERNORS OF 4LL F. R. BANKS.


X-7344-a

HEPOET SHOWING CLASSIFICATION AND NUMBER OF WORDS TRANSMITTED OVER MAIN LINES OF THE FEDERAL RESERVE LEASED WIRE SYSTEM FOR THE MONTH OF JANUARY, 1933.

Words sent by Net Federal Business New Yoik charge- reserve reported able to other bank Percent of to ta l

From by banks F. R. Banks ( l ) business bank business (*)

Boston 32,048 1,323 33,371 4.01 New York 165,168 165,168 19.84 Philadelphia 34,478 l , 4 o i 35,879 4.31 Cleveland 59,796 i , o 4 i 60,837 7.31 Richmond 55,044 1,187 56,231 6.75 Atlanta 55,070 1,225 56,295 6.76 Chicago 87,758 l , 4o6 89,164 10.71 St . Louis 71,778 1,828 73,606 8.84 Minneapolis 31,598 1,013 32,611 3.92 Kansas City 69,895 1,258 71,153 8.54 Dallas 57,856 2,537 60,393 7.25 San Francisco 95,488 2,442 97,930 11.76

Total 815,977 16,661 832,638 100.00

F. R. Board "business 292,971

Reimbursable business Incoming and Outgoing

Total words transmitted over main l i n e s

1,125,609

403,507

1,529,116

(*) These percentages used in calculat ing the nro rata share of leased wire expense as shown on the accompanying statement (X-7344b).

( l ) Number of words sent by New York to other F. R. Banks for the ir sole bene f i t charged to banks indicated in accordance with act ion taken at Governors' Conference ^ November 2-4, 1925. CS


REPORT OF EXPENSE MAIN LINES FEDERAL RESERVE LEASED WIRE SYSTEM, JANUARY, 1933.

x-7344-b

Pro rata Payable to share of Federal

Operators' Operators' Wire Total t o t a l Reserve Name of Bank s a l a r i e s overtime rental expenses expenses Credits Board

Boston $260.00 $ $260.00 $686.33 $260.00 Hew York 1,232.80 1,232.80 3,395.70 1 ,232.80 Philadelphia 225.00 9 2 . 8 3

(&) Main l ine renta l , Richmond-Washington. (#) Includes s a l a r i e s of Washington operators. (* ) Credit. (a) Amount reimbursable to Chicago.


: 3 1

ItEDfiEAl iESERVE BOARD X-7345

STATEMENT FOR THE PRESS

For immediate r e l e a s e . February 21, 1933,

The f i r s t meeting of the Federal Advisory Council for 1933 was held

on Tuesday, February 21. Mr. Walter W. Smith was r e - e l e c t e d President

and Mr. Melvin A. Tray lor was re -e l ec ted Vice Pres ident . These o f f i c e r s

as e x - o f f i c i o members and Messrs. Davison, Loeb, Ottley and McLucas w i l l

comprise the Executive Committee. Mr. Walter Lichtenste in was reappointed

Secretary.

The Council i s composed of the fo l lowing members:

Federal Reserve D i s t r i c t No. 1. Thomas M. Stee le , of New Haven, Conn.

No. 2 . Geo. W. Davison, of New York City, N. Y.

No. 3 . Howard A. Loeb, of Phi ladelphia , Pa.

No. 4 . H. C. McEldowney, of Pittsburgh, Pa.

No. 5 . Howard Bruce, of Baltimore, Md.

No. 6 . John K. Ott ley , of Atlanta, Ga.

No. 7 . Melvin A. Traylor, of Chicago, 111.

No. 8 . Walter W. Smith, of St . Louis, Mo.

No. 9 . Theodore Wold, of Minneapolis, Minn.

No. 10. Walter S. McLucas, of Kansas City, Mo.

No. 11. Joseph H. Frost, of San Antonio, Texas.

No. 12 . Heniy M. Robinson, of Los Angeles, Cal i f


COPY THE MECHANICS NATIONAL BA.H AMD TRUST CO.

M i l l v i l l e , Hew Jersey

X-7346

3 3

TO ALL DEPOSITORS: February 13, 1933.

During the past few months there has "been an increas ing demand for funds from our depos i tors , far above the usual business requirements. The withdrawal of depos i t s has exceeded our a b i l i t y to l i q u i d a t e investments with-out severe l o s s and the general economic condition prevents the immediate c o l l e c t i o n of notes without poss ib l e forec losure and bankruptcy i n some cases .

Real iz ing the enormous expense always incurred i n l i q u i d a t i n g a s s e t s of a c losed i n s t i t u t i o n we f e e l that the i n t e r e s t of deposi tors and stockholders must be protected by some plan to prevent suspending business and forced l iqu idat ion .

The Board of Directors have therefore , t h i s day declared that a re -s t r i c t i o n be placed on withdrawals of any depos i t s as of the c l o s e of business on February 9th with the fo l lowing prov is ions:

1 - Vacation Club Funds and School Children's Savings Accts . are exempt.

2 - Balances of Time Accounts, Checking Accounts and C e r t i f i c a t e s of Depos i t , a t the c l o s e of business on February 9th, 1933, w i l l be subject to no further withdrawals.

3 - A port ion of these balances may be re leased from time to time when l i q u i d a t i o n of a s s e t s warrants.

4 - A l l depos i t s made on and a f t e r Feb. 10, 1933, w i l l be subject to check and withdrawal without i n t e r f e r e n c e .

5 - In teres t on Time Account Balances r e s t r i c t e d w i l l be continued and payment made semi-annually as usua l . New Time Accounts w i l l not be r e s t r i c t e d i n any way.

6 - No loans w i l l be made while t h i s plan i s i n e f f e c t .

The success of t h i s plan depends e n t i r e l y on the f u l l cooperation of a l l depositors for whose b e n e f i t the plan i s designed.

Further information regarding your part icular account and the advant-ages of the plan i n general w i l l be g ladly given by any d i r e c t o r , o f f i c e r or employee.

We would suggest that you ind ica te your i n t e n t i o n to cooperate on the form enclosed and mail or leave i t a t the bank at your e a r l i e s t convenience.

Yours very t ru ly ,

THE MECHANICS NATIONAL BANK AND TRUST CO.

H. H. MELVIN, Pres ident .


4 33 X-7346

THE IBCKalTICS 1IA.TI01JAL BAIIK MD TRUST C01IPA1TY

ivilLLVILLS, liEW JERSEY.

I approve of the plan to prevent forced l iqu idat ion as out l ined i n your l e t t e r of February 13th, and "rill cooperate in the plan submitted, for the mutual b e n e f i t of a l l .




X-7347

February 23, 1933,

SUBJECT: Holidays during March, 1933.

Dear Sir:

The Board has been advised that the fo l lowing hol idays w i l l

"be observed by Federal reserve banks and branches during March, 1933:

Thursday, March 2, Dal las Texas Independence Day El Paso Houston San Antonio

Saturday, March 25, Baltimore Maryland Day

On the dates indicated the o f f i c e s a f f e c t e d w i l l not p a r t i c i -

pate in e i ther the Gold Settlement Fund trans i t or Federal reserve

note c lear ing . Please include cred i t s for the o f f i c e s a f f e c t e d on

the above dates i n your trans i t c lear ing telegram for the fo l lowing

business day. Ho debits covering shipments of Federal reserve notes

for account of the Federal Reserve Ban].* of Dallas should be included

i n your note c l ear ing telegram for March 2.

Saturday, March 4 , w i l l be a l ega l holiday i n the D i s t r i c t of

Columbia, and therefore the o f f i c e s of the Federal Reserve Board w i l l


be o f f i c i a l l y c losed , Taut the c lear ings through the Gold Settlement

Fund w i l l take p lace as usual .

Please n o t i f y "branches.

Very truly yours,

J . C. Hoel l , Ass i s tant Secretary.

TO GOVERNORS OF ALL F. R. BAMS.



A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O T H E FEDERAL R E S E R V E BOARD X-7348

February 24, 1933.

SUBJECT: New Issue Treasury B i l l s .

Dear Sir:


Government s e c u r i t i e s "between Federal reserve banks,

the code word "NOXDRESS" has been designated to cover

a new i s s u e of Treasury B i l l s , dated March 1, 1933, and

maturing May 31, 1933.

This word should be inserted i n the Federal r e -


code word "ITOXDREHCH" on page 172.

Very truly yours,

J . C. Noe l l , Ass i s tant Secretary.

TO GOVERNORS OF ALL F. R. BAKES.


37

Off i cers ;

F E D E R A L A D V I S O R Y C 0 U H 0 I L

1933 Executive Committee:

X-7350

Walter W. Smith, President Kelvin A. Traylor, Vice President Walter Lichtenste in , Secretary

Walter 1. Smith Howard A. Loeb Melvin A. Traylor John K. Ottley George W. Davison Walter S. McLucas

M E M B E R S

D i s t r i c t

Ho. 1

No. 2

Ho. 3

No. 4

No. 5

No. 6

No. ?

No. 8

No. 9

No. 10

No. 11

No. 12

Thomas M. S t e e l e

George W. Davison

Howard A. Loeb

H. C. McEldowney

Howard Bruce

John K. Ott ley

Melvin A. Traylor

Walter W. Smith

Theodore Wold

Walter S. McLucas

Joseph H. Frost

Henry M. Robinson

P r e s . , F i r s t National Ban!: and Trust Co., New Haven, Connecticut.

Chrm., Central Hanover Bank and Trust Co,, New York, New York.

Chrm., Tradesmens National Bank & Tr. Co,, Phi lade lphia , Pennsylvania.

P r e s . , Union Trust Company, Pit tsburgh, Pennsylvania,

Chrm., Baltimore Trust Company, Baltimore, Maryland.

P r e s . , F i r s t National Bank, Atlanta, Georgia.

P r e s . , J i r s t National Bank, Chicago, I l l i n o i s .

P r e s . , F i r s t National Bank i n St . Louis, S t . Louis, Missouri .

Chrm., Northwestern Nat ' l .Bk .o f Minneapolis, Minneapolis, Minnesota.

Chrm., Commerce Trust Company, Kansas City , Missouri .

P r e s . , Frost National Bank, San Antonio, Texas.

Chrm., Secur i ty -F irs t National Bank, Los Angeles , C a l i f o r n i a .

Address of Mr. L ichtens te in , 38 South Dearborn S t r e e t , Chicago, I l l i n o i s .

February 25, 1933. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

0 P Y X-7351

FEDERAL 3ES5MV6 BAH OF HEW YORK

February 24, 1933.

Dear Governor Meyer:

In order to protect certa in banks in New Jersey a law was recent ly

introduced and passed in that s ta t e authorizing the supervisor of banks, when-

ever in h i s judgment circumstances warrant, to permit banks to defer payment

f a s p e c i f i e d port ion of the ir depos i t s for such time as he may determine.

Such banks may accept new deposi ts which w i l l not be subject to r e s t r i c t i o n s

but sha l l be payable in f u l l upon demand.

So far as we have been informed, t h i s law has been avai led of by

only one i n s t i t u t i o n in our d i s t r i c t , the Trust Company of ,

Hew Jersey, a member bank. The enclosed photos ta t i c copy (a) of a c ircular

issued under date of February 21, 1933 by the Trust Company to i t s

deposi tors quotes the New Jersey Act of Assembly #195, known as the "Altman

Bi l l" and n o t i f i e s i t s depositors that i t i s a v a i l i n g i t s e l f of the per-

mission granted by the Commissioner of Banking and Insurance to operate under

the provis ions of the act as of the c lose of business Tuesday, February 21,

1933. Also enclosed are the fo l lowing;

(b) Photos ta t i c copy of l e t t e r , February 23, 1933, from the Trust Company to Mr. L. F, S a i l e r , deputy governor of t h i s bank, n o t i f y i n g us that the trust company i s operating under the New Jersey Act of Assembly #195, and ins truct ing that a l l depos i t s from the beginning of business Thursday, February 23, 1933, be kept separate and apart from the general a s s e t s of the company and maintained in l i q u i d funds.

(c) Copy of l e t t e r from Mr. Sa i l er to the Trust Company, under date of February 24, 1933.


: 3 9

X-7351 Federal Reserve Sank of Hew York 2l 2 /24 /33 .

(d) Copy of l e t t e r from the Deputy Commissioner of the Department of Banking and Insurance, Hew Jersey , State of Hew Jersey, to Mr. B. M. Sidney, a s s i s t -ant deputy governor of t h i s bank, enclos ing

(e) Copy of a l e t t e r which the department i s sending to cer ta in of i t s i n s t i t u t i o n s re Chapter 27 of the Laws of 1933.

Al l of the foregoing i s sent you so that you may be kept currently

informed of what i s taking place along the l i n e s of recent l e g i s l a t i o n which

a f f e c t s banks in our d i s t r i c t .

At t h i s juncture i t appears probable that only those banks which

have p r a c t i c a l l y no l i q u i d resources w i l l ava i l themselves of the provis ions

of t h i s a c t , so that i t i s d i f f i c u l t to say jus t what i t s e f f e c t on the publ ic

mind w i l l be .

I understand that Mr. Logan has furnished you with copies of the

*Robinson b i l l passed by the Assembly of the State of Hew York on January 31,

1933.

F a i t h f u l l y yours,

(Signed) J . H. CASE Chairman.

Honorable Eugene Meyer, Governor, Federal Reserve Board, Washington, D. C.

enclosures (5)

This b i l l became law on February 21, 1933, by signature of the Governor.


X-7351-a

C O P Y (A)

TRUST COMPACT , IT. J .

TO OUH DEPOSITORS: February 21, 1933.

The Legis lature and. the Governor of the State of New Jersey , have deemed i t advisable to enact the fo l lowing b i l l to safeguard the depos i tors and banking structure of the State of New Jersey:

An Act concerning banks, trust companies and savings banks.

Be i t enacted by the Senate and General Assembly of the State of New Jersey:

The Commissioner of Banking and Insurance i s hereby authorized and empowered in addit ion to a l l other powers, whenever in h i s judgment the circumstances warrant i t , to authorize any and a l l banks, t rus t com-panies and savings banks under h i s j u r i s d i c t i o n .

(a) To extend for a period of n inety days, and for a further period i f he deems i t expedient, payment of any time accounts where not ice of withdrawal has been given or may hereaf ter be given.

(b) To authorize the postponement for any length of time of the payment of any proportion of the depos i t s in demand accounts of any i n -dividual , f irm or corporation as he may deem necessary and expedient, to be determined by him according to the a b i l i t y of any bank, t rus t company or savings bank to pay such withdrawals.

(c) To authorize a l l such banks, trust companies and savings banks to thereaf ter rece ive new depos i t s which shal l be segregated from the old depos i t s , and said new depos i t s shal l not be subject to the r e s t r i c t i o n s or l imi ta t ions herein or that may hereaf ter be imposed by the Commissioner of Banking and Insurance, pursuant to the provis ions herein , and sa id new deposi ts shal l be invested in such l iqu id a s s e t s as may be approved by the Commissioner of Banking and Insurance in order that banks, t rus t com* panies and savings banks may at a l l times have s u f f i c i e n t funds to meet the demands on such new depos i t s in accordance herewith*

(d) Whenever the Commissioner of Banking and Insurance sha l l authorize and empower any bank, t rus t company or savings bank to ac t under the provis ions of t h i s ac t , he i s hereby empowered to make and adopt such ru les and regulat ions as he may deem proper for the pro tec t ion of the i n s t i t u t i o n and may require da i l y reports in d e t a i l touching the i r f i n a n c i a l condit ion.

This act s h a l l take e f f e c t immediately.


. 2 ***

41 X-7351-a

STAT0S5HT

The design of the above act i s to permit the Commissioner of Banking and Insurance to make ru les and regulat ions f o r the purpose of protec t ing not only the bank but i t s depos i tors .

The fo l l owing statement was issued by Charles H. P lenty , president of the Hew Jersey Bankers Associat ion, in explaining the purpose of the emergency bank b i l l :

"The Altaian b i l l , passed by the Hew Jersey Legis la ture , Lionday, February 20, 1933, i s a law somewhat s imi lar to that of Hew York Sta te , and permits the Bank Commissioner where in h i s judgment a bank may have too large a percentage of frozen a s s e t s , to a f ford such bank a reason-able time to pay i t s depos i t s by requiring such deposi tors to present a ninety-day not ice of in tent ions to withdraw savings accounts, and per-mit t ing checking depos i tors to withdraw such percentage of t h e i r depos i t s as in h i s judgment l iqu id a s s e t s would permit.

"The object of the b i l l i s to safeguard the depos i tors in a p e r f e c t -l y solvent bank where under present business condit ions , i n a b i l i t y to convert frozen a s s e t s into cash might cause the c l o s i n g of such i n s t i t u t i o n .

"I have been asked to make t h i s statement that there may be no misapprehension as to the purpose of t h i s new law,"

The Trust Company has been granted permission by the Commissioner of Banking and Insurance to operate under the prov i s ions of the above act as of the c lose of business Tuesday, February 21, 1933.

Your cooperation and consideration i s s o l i c i t e d .


(B)

TRUST COUP AMY , N. J .

February 23, 1933.

L. F. S a i l e r , Esq., Deputy Governor, Federal 3eserve Bank of Hew York, New York, N. Y.

Dear Sir:

The Trust Company i s operating under New Jersey Act of Assembly #195, known as the "Altman S i l l " and, under that Act, a l l depos i t s from the "beginning of business Thursday, February 23, 1933, sha l l be kept separate and apart from the general a s s e t s of the Company, and maintained in l iqu id funds.

I t i s the intent ion of the Trust Company to maintain a l l funds received from deposi tors in the Federal 2eserve Bank, and we wish to open t h i s account as -

11 The Trust Company of , New Jersey, operating under Act of Legis lature #195, New Jersey - Approved February 21, 1933."

This account, being dis t inguished as above out l ined, we request that the Federal Reserve Bank advise the Trust Company that no part of t h i s new account w i l l ever be con-sidered as subject to any loans or discounts that the Trust Company now has or might in the future have with the Federal Re-serve Bank.

Thanking you f o r your cooperation, we remain

Very truly yours,

Pres ident .

CHF/n-MPC


C O P Y 43

jG-7351-e

(c)

February 24, 1933.

Pres ident , Trust Company, ,, Hew Jersey .

Dear Sir:

Receipt i s acknowledged of your l e t t e r of February 23, 1933, advis ing us that the Trust Company i s operating under Hew Jersey Act of Assembly #195, known as the "Altman B i l l " and that , under that Act, a l l depos i t s from the beginning of business Thursday, February 23, 1933, w i l l be kept separate and apart from the general a s s e t s of the Company, and maintained in l i q u i d funds.

As requested by you we have opened a new account designated -

"The Trust Company of , Hew Jersey , Operating Under Act of Legis lature #195, Hew Jersey -Approved February 21, 1933."

'7e agree that funds accepted for deposit in t h i s account w i l l not be ap-p l i e d by"us in payment of any loans or discounts heretofore made by us to or for the Trust Company, or to the payment of any loans or discounts hereaf ter made by us to or for the Trust Company the proceeds of which are not credited to the above account.

Yours very truly ,

L. F. SAILER, Deputy Governor.


C O P Y X-7351-d (D)

STATE OF HEW JERSEY

DEPAETlaENT OF MHXI3KJ AMD IFSUSAjCE

T3EETOH

February 23, 1933.

Mr. B. M. G-idney, Ass i s tant Deputy Governor, Federal Reserve Bank of New York, Hew York, IT. Y.

Dear Mr. Gi&ney:

As promised you over the telephone t h i s morning,

I am enclosing- herewith a copy of the l e t t e r which we are

sending to cer ta in of our i n s t i t u t i o n s re Chapter 27 of the

Laws of 1933.

Very truly yours,

(Signed) V. D. Peer, Deputy Commissioner.

Enc


C O P Y (E)

X-7351-e

STATE OF NEW JE2SEY

DEPARTMENT OP BANKING- AND INSURANCE

TRENTON

Gentlemen:

Pursuant to the power in me vested as Commissioner of Banking and Insurance under the terms of Chapter 27, Laws of 1933 and deeming the circumstances to warrant i t in your instance, your i n s t i t u t i o n i s hereby authorized to operate commencing * in accordance with the provis ions of the said act with the fo l lowing r e s t r i c t i o n s and condi t ions : -

(a) To r e s t r i c t the withdrawal f o r a period of n inety days of a l l depos i t s as shown by your books as of the c l o s e of business excepting school savings and club accounts and such accounts as are held preferred by s t a t u t e .

(b) To continue to rece ive new depos i t s which s h a l l be segregated from the old depos i t s and said new depos i t s and the income therefrom shal l be invested in such l i q u i d a s s e t s as may be approved by the Commissioner of Banking and Insurance in order that the i n s t i t u t i o n may a t a l l times have s u f f i c i e n t funds to meet the demand of such new depos i t s in accordance herewith.

In view of the authority herein conferred the fo l l owing ru le s and regulat ions are imposed while operating under t h i s a c t :

(1) No dividends sha l l be paid to stockholders .

(2) Ho payment of f e e s to d irec tors or committees.

(3) Ho new loans of any kind or character may be made.

(4) That the i n t e r e s t payments on the deferred depos i t s be continued as heretofore .

(5) That the Commissioner sha l l be supplied bi-monthly with a complete statement of the i n s t i t u t i o n ' s f i n a n c i a l condi t ion .

(6) That as soon as p o s s i b l e during the above mentioned Ainety day period, there sha l l be made ava i lab le to a l l de-p o s i t o r s a pro rata port ion of the i r accounts, such per -centage to be approved by the Commissioner upon ap-p l i c a t i o n to him by the i n s t i t u t i o n .


"** 2 *~

X-7351

(7) The c o s t s of p r o t e s t s occasioned by t h i s authorizat ion s h a l l he home hy the i n s t i t u t i o n in a l l cases where depos i tors ' accounts are s u f f i c i e n t to meet checks presented.

(8) That the authority herein conferred may only rece ive further extension upon the approval of the Commissioner upon appl icat ion to him at l e a s t ten days pr ior to the expirat ion of the term s p e c i f i e d .

(9) From time to time the Commissioner reserves the r i g h t to change or a l t e r in any way deemed advisable by him the r u l e s and regulat ions above enumerated.

P lease acknowledge r e c e i p t .

Very truly yours,

Commissioner.

Received 2 /24 /33


X-7353



For r e l e a s e at 3:30 P.M. March 2, 1933.

The Federal Reserve Board announces that the Federal

Reserve Bank of New York has es tabl i shed a rediscount rate of

3 l / 2 per cent on a l l c la s ses of paper of a l l matur i t i e s ,

e f f e c t i v e March 3, 1933



A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O T H E FEDERAL R E S E R V E B O A R D X7353

March 3, 1933.

SUBJECT: New Issue Treasury B i l l s .

Bear Sir:

In connection with te legraphic transact ions in

Government s e c u r i t i e s "between Federal reserve "banks,

the code word N^OXDRIB" has been designated to cover

a new i ssue of Treasury B i l l s , dated March 6, 1933, and

maturing June 7, 1933.

This word should "be inserted in the Federal r e -


code word "NOXDRESS" on page 172.

Very truly yours,

J . 0. Noe l l , Ass i s tant Secretary.

TO GOVERNORS 01 ALL J. R. BANKS.


X-7354



For r e l e a s e at 3:00 p.m. March 3 , 1933.

The Federal Reserve Board announces that the Federal

Reserve Bank of Chicago has es tabl i shed a rediscount ra te of

3 l / 2 per cent on a l l c l a s se s of paper of a l l matur i t i e s , e f -

f e c t i v e March 4 , 1933.


FEDERAL RESERVE BOARD WASHINGTON X-735-5

A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O M&rCh 6 , 1933. T H E F E D E R A L R E S E R V E B O A R D

Bear S ir :

In confirmation of the Board's telegram of t h i s date, there i s

inc losed herewith, for your information, a copy of the proclamation which

was i ssued "by the President of the United States early t h i s morning.

This l e t t e r a l s o confirms the l a t e r telegram, addressed j o i n t l y

to the Chairman and Governor of the Bank, requesting immediate wire ad-

v i c e of your suggest ions as to provis ions that should be included i n

the regulat ions to he i ssued by the Secretary of the Treasury i n

accordance with c lauses l e t t e r e d (a) (b) and (c ) i n the Pres ident ' s

proclamation, which suggest ions should r e l a t e to the operations of both

the Federal reserve banks and other banking i n s t i t u t i o n s as def ined i n

the proclamation. This telegram a l so suggested that arrangements be

made to send promptly to a l l other Federal reserve banks and the Board

several s e t s of each plan of procedure and forms that may be devised by

c lear ing houses i n pr inc ipa l c i t i e s i n your d i s t r i c t i n connection with

the use of c l ear ing house scr ipt or c e r t i f i c a t e s .

Very truly yours,

E. M. McClelland, Ass i s tant Secretary.

Inclosure.

TO GOVERNORS AMD CHAIRMEN OF ALL F. R. BAMS. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

51



T H E FEDERAL R E S E R V E B O A R D X-7356

March 11, 1933.

SUBJECTi Conditions of membership which w i l l be prescribed for State banks hereaf ter admitted to membership i n the Federal Reserve Systemi

Bear S ir :

I t has been the Federal Reserve Board's p r a c t i c e , as you know,

to prescribe for State banks applying for membership i n the Federal Reserve

System the seven condit ions of membership contained i n the Board's Regula-

t ion E and such spec ia l conditions as the f a c t s i n each individual case

indicated were des irable to correct unsat i s fac tory condit ions i n the

bank and to prevent the exerc ise of powers which the bank might have under

i t s charter or the State law that were not cons is tent with the purposes of

the Federal Reserve Act and considered undesirable in a commercial banking

i n s t i t u t i o n . Some of these spec ia l conditions have been of a general

nature and the Board f e e l s that i t would be advisable hereaf ter to pre-

scribe for each State bank applying for membership a l l spec ia l condit ions

of th i s character which have been approved by the Board and which tend to

prevent unsound developments in banks regardless of whether the bank

appears to be engaged i n pract ices at the time of admission to membership

which may lead to such developments. I t i s be l ieved that t h i s procedure

w i l l be he lp fu l i n developing a more e f f e c t i v e supervis ion of banking

i n the Federal Reserve System and w i l l tend to develop be t t er banking


X-7356

-2~

p r a c t i c e s , and i t i s contemplated that i f the Board's experience i n d i -

cates that any further condit ions of a general nature are des irable

they a l s o w i l l be prescribed for State banks subsequently admitted to

membership.

Some of the condit ions contained i n the Board's Regulation H

are very broad i n the ir terms and i t i s pos s ib l e that there i s some

overlapping of these condit ions and cer ta in of the condit ions regard-

ing s p e c i f i c prac t i ce s or powers; but t h i s i s not be l i eved to be

object ionable . Accordingly, in the case of each State bank hereaf ter

applying for membership, the Board w i l l prescribe the fo l lowing condi-

t ions of membership which include the seven condit ions contained i n

the Board's Regulation H, with one r e v i s i o n , and other condit ions of a

general nature that have been approved i n substance by the Board as

spec ia l condit ions i n indiv idual cases:

1 . Except with the permission of the Federal Reserve Board, such bank sha l l not cause or permit any change to be made in the general character o f i t s business or i n the scope of the corporate powers exercised by i t at the time of admission to member-ship.

2. Such bank s h a l l at a l l times conduct i t s business and exerc i se i t s powers with due regard to the s a f e t y of i t s depos i tors .

3 . Such bank s h a l l maintain i t s loans within the l i m i t s prescribed by the laws of the State in which i t i s l oca ted .

4 . The board of d irectors sha l l not permit loans to d i r e c t o r s , o f f i c e r s , employees, pr inc ipal s tock-holders and/or the ir i n t e r e s t s , including loans t o , or upon the secur i ty of stocks o f , corporations i n which any of them have substant ia l i n t e r e s t s , to assume unduly large proportions or to endanger the bank's solvency or the l i q u i d i t y of i t s a s s e t s , and the Board of d irectors s h a l l g ive spec ia l a t t e n t i o n to a l l such loans .


53 _3_ X-7356

5 Such "bank sha l l maintain adequate credit data i n con-nect ion with a l l unsecured loans .

6. Such hank s h a l l keep past due paper and overdrafts at a minimum, and sha l l not hold any checks i n cash items to avoid overdrafts ,

7 . Except with the permission of the Federal Reserve Board, such hank s h a l l not purchase or acquire through any device whatever any stock of any other hank, t rus t company, or other corporation of any kind or character except i n s a t i s f a c t i o n or protect ion of debts previous ly con-tracted i n good f a i t h ; and a l l stock acquired in s a t i s -f a c t i o n or protect ion of debts sha l l be disposed of within s i x months from the date on which i t was acquired unless the time i s extended by the Federal Reserve Board on the app l i ca t ion of such bank for good cause shown.

8 . Such bank s h a l l not permit any investment i n a bank bui ld ing or i n a s i t e for a bank bui ld ing to assume such proportions a s , i n the judgment of the Federal Reserve Board, would endanger the bank's solvency or l i q u i d i t y or would otherwise be unduly large or improper, and before any investment i s made in a bank bui lding or a s i t e for a bank bui lding the bank sha l l r e f e r the matter to the Federal Reserve Board for cons iderat ion.

3, Such bank s h a l l not reduce i t s capi ta l stock except with the permission of the Federal Reserve Board.

10. Such bank s h a l l not pay any dividends which w i l l reduce i t s surplus below an amount equal to at l e a s t 20 per cent of i t s cap i ta l stock, and i f at any time i t s sur-plus should be l e s s than 20 per cent of i t s cap i ta l stock i t s h a l l carry to i t s surplus account annually, or for any shorter period covered by each c lo s ing of i t s books, not l e s s than 50 per cent of i t s net earn-ings for any such period a f t e r deducting a l l l o s s e s and providing reserves for depreciat ion.

11. Such bank sha l l reduce to an amount equal to 10 per cent of i t s capi ta l and surplus a l l balances i n excess thereo f , i f any, which are carried with banks or trust companies which are not members of the Federal Reserve System, and sha l l at a l l times maintain such balances wi thin such l i m i t s .

12. Except with the permission of the Federal Reserve Board, such bank sha l l not , a f t e r t*he date of i t s admission to membership, engage i n the business of i s s u i n g or s e l l i n g , e i ther d i r e c t l y or i n d i r e c t l y (through a f f i l i a t e d corpor-a t ions or otherwise) , notes , bonds, mortgages, c e r t i f i -c a t e s , or other evidences of indebtedness represent ing


X-7356 54

- 4 -

real e s t a t e loans or par t i c ipa t ions there in , e i ther with or without a guarantee, indorsement or other ob l iga t ion of such "bank or an a f f i l i a t e d corporation.

13. Such "bank may accept d r a f t s and b i l l s of exchange drawn upon i t of any character permitted "by the laws of the State of i t s incorporation; "but the aggregate amount of a l l acceptances outstanding at any one time s h a l l not exceed the l imi ta t ions imposed "by s e c t i o n 13 of the Federal Reserve Act, that i s , the aggregate amount of acceptances outstanding at any one time which are drama for the purpose of furnishing do l lar exchange i n countries s p e c i f i e d by the Federal Reserve Board s h a l l not exceed 50 per cent of i t s cap i ta l and surplus, and the aggregate amount of a l l other acceptances, whether domestic or f o r e i g n , outstanding at any one time s h a l l not exceed 50 per cent of i t s cap i ta l and surplus , except that the Federal Reserve Board, upon the appl ica t ion of such bank, may increase t h i s l imi t from 50 per cent to 100 per cent of i t s cap i ta l and surplus; provided, however, that i n no event s h a l l the aggregate amount of domestic acceptances outstanding at any one time exceed 50 per cent of the cap i ta l and surplus of such bank.

14. The board of d irectors of such bank s h a l l adopt a reso-l u t i o n authorizing the interchange of reports and i n f o r -mation between the Federal reserve bank of the d i s t r i c t i n which such bank i s located and the banking a u t h o r i t i e s of the State i n which such bank i s l oca ted .

The Board w i l l a l so prescribe for each trust company or bank

exerc i s ing trust powers at the time of i t s admission to membership the

fo l lowing condit ions of membership which are appropriate for i n s t i t u t i o n s

exerc i s ing trus t powers:

15. Such bank sha l l not , a f t e r the date of i t s admission to membership, invest trust funds held by i t i n ob l igat ions of the bank's d i rec tors , o f f i c e r s , employees or the ir a f -f i l i a t i o n s or corporations a f f i l i a t e d with the bank.

16. Except with the permission of the Federal Reserve Board, such bank s h a l l not , a f t e r the date of i t s admission to membership, invest the funds of various t r u s t s held by the bank i n part ic ipat ions i n pools of mortgage bonds or other


- 5 - X-7356 55

s e c u r i t i e s , and the funds of a l l such trus t s s h a l l be invested separately from each other: Provided, how-ever, that the Federal Reserve Board w i l l not object to the c o l l e c t i v e investment of small amounts of trust funds where the c&sh balances to the cred i t of cer ta in t rus t e s t a t e s are too small to be invested separately to advantage, i f the bank owns no par t i c ipa t ion in the s e c u r i t i e s in which such c o l l e c t i v e investments are made and has no i n t e r e s t in them except as trus tee or o ther f iduc iary .

17. I f trust funds held by such bank are deposited in i t s banking department or otherwise used in the conduct of i t s bus iness , i t s h a l l deposit with i t s trust department s ecur i ty in the same manner and to the same extent as i s required of nat ional banks exerc i s ing f iduc iary powers.

Attention i s ca l l ed to the f a c t that the condit ion numbered

seven above i s a r e v i s i o n of the condition numbered three contained in

the Board's Regulation H and prohib i t s the a c q u i s i t i o n of s tock in any

other corporation except with the Board's permission. As you know, t h i s

condition as contained in the Board's Regulation H re fers only to the

acqu i s i t i on of s tock of other banks and trus t companies; but the Board

b e l i e v e s that i t i s des irable in future cases to prescribe a condition

which w i l l prohib i t the member bank from purchasing stock in any corp-

oration except with the Board's permission.

In connection with the condition numbered 10 i t may be noted

that i f in any case the appl icat ion of a bank with a surplus of l e s s than

20$ of i t s c a p i t a l i s approved the Board w i l l prescribe an addi t ional

requirement that the surplus s h a l l be increased to at l e a s t 20$ *f the

bank's c a p i t a l out of earnings.

One of the condit ions contained in the Board's Regulation H and

se t out above provides that , except with the permission of the Federal

Reserve Board, a member bank sha l l not cause or permit any change to be


56

- 6 - X-7356

made in the general character of i t s business or in the scope of the

corporate powers exerc ised "by i t a t the tijne ef admission to membership.

In some cases State member banks have overlooked t h i s requirement and

have made changes in the general character of the ir a s s e t s or in the

scope of the corporate powers exercised at the time of the i r admission

to membership without obtaining the Board's permission. Accordingly, in

the l e t t e r prescr ib ing condit ions of membership which i s addressed to

each State bank whose appl icat ion i s approved hereaf ter , spec ia l a t t e n -

t ion w i l l be c a l l e d to the neces s i ty for obtaining the Board's permission

under t h i s general condition covering any such change made by the bank

a f t e r i t s admission to membership in the System.

You w i l l understand that in part icu lar cases i t may be des irable

to prescribe spec ia l conditions nnt of a general nature to correct

unsat i s fac tory condit ions in the part icu lar bank, and, as a matter of

emphasis, to prescribe condit ions prohibi t ing , except with the Board's

permission, the exerc i se of s p e c i f i c powers which a par t i cu lar bank may

be authorized to exerc ise under i t s charter or the State law, even though

such powers are not exerc ised at the time of admission to membership and

accordingly, under the general condition referred to above, might not be

exercised except with the Board's permission. In connection with the sub-

mission of appl i ca t ions f o r membership, the Board would, of course, l i k e

to have your recommendation as to any spec ia l conditions which should be

prescribed in the part i cu lar case and as to any conditions of a general


- 7 - X-7356

nature which experience ind ica tes would be des irable as condit ions to

be prescribed for each State bank thereaf ter admitted to membership.

-Very truly yours,


P. S. This l e t t e r i s a confirmation of the telegram sent you today.

10 ALL EEDERAL RESERVE AG-ENTS


X-7357

March 12, 1933

Curtiss - Boston Case - STew York Austin - Phi ladelphia DeCnnrp Cleveland.

Eoxton - Hichaond Bai ley - Minneapolis Newton - Atlanta McClure - Kansas City Stevens - Chicago Walsh - Dallas Wood - St . Louis Newton - San j?r.~ncisco

TEAilS. 1638 In cases where you receive an appl icat ion f o r member-

ship from an e l i g i b l e State bank or trust company the condit ion and manage-

ment of which are not subject to substant ia l c r i t i c i s m and you f e e l that the

Board would be f u l l y j u s t i f i e d in admitting such i n s t i t u t i o n to membership,

Board w i l l upon te legraphic advice from you of e s s e n t i a l f a c t s involved in

case give prompt consideration thereto and advise you of i t s ac t ion thereon.

In such cases your advice should contain a statement of (A) the amount of

applicant bank's cap i ta l stock, (B) surplus, (C) undivided p r o f i t s , (D)

roservos for l o s s e s , depreciat ion or other cont ingencies , (28) aggregate

amount of depos i t s , (3P) l i a b i l i t y to Reconstruction Finance Corporation,

(G) other borrowings, (H) t o t a l resources, ( I ) date ef l a s t examination

and by what author i ty . On b a s i s of report of such examination (J) amount

amount of depreciat ion in investments in f i r s t four grades of s e c u r i t i e s

as c l a s s i f i e d by a recognized investment serv ice , (N) amount of deprecia-

t ion in other s e c u r i t i e s including stocks and defaul ted bonds, (0) any

undue concentrations of a s s e t s , and (P) l i q u i d i t y . Also advise (Q,) t# what

extent and in what manner any of such items have been el iminated, and

furnish (B) b r i e f summary of examiners comment on condition and management of

bank, and (S) concise statement of your own opinion of bank and i t s management.

and character of a s s e t s c l a s s i f i e d as slow, (K) doubtful , (L) l o s s e s , (M)


2

X-7357

In your wire s e t out information requested opposi te r e s p e c t i v e symbols used

above. Each such telegram should begin with the code word QUOTE A2TCH0EIST

UNQUOTE meaning QUOTE We have a p p l i c a t i o n blank bank (use A.B.A. t r a n s i t

number) f o r membership in the Federal Reserve System, the condi t ion and manage-

ment of which are not subject to subs tant ia l c r i t i c i s m and we f e e l that the

Board would be f u l l y j u s t i f i e d in admitt ing such i n s t i t u t i o n to membership.

I concur i n recommendation of execut ive committee of t h i s bank t h a t such

ac t ion be taken by the Board UNQUOTE. Such te l egraphic advice should include

advice that your counsel has approved form of a p p l i c a t i o n and has executed

c e r t i f i c a t e of counsel u s u a l l y accompanying membership a p p l i c a t i o n s and be

accompanied by a statement from him as to what powers, i f any, other than usual

commercial banking powers the i n s t i t u t i o n i s authorized to e x e r c i s e under i t s

charter or State law, and a statement from you as to whicH of such unusual

powers, i f any, are be ing exerc i s ed . Your advice should a l s o inc lude the

spec ia l condi t ions of membership i f any which in the opinion of y o u r s e l f and

execut ive committee of your bank should be prescr ibed in add i t ion to those con-

tained in Trans 1619. In case of banks e x e r c i s i n g t r u s t powers, f u r n i s h con-

c i s e statement regarding condi t ion and management of t r u s t department. As l a s t

word of telegram r e s t a t e A.B.A. t r a n s i t number of bank. In a c t i n g upon ap-

p l i c a t i o n s under such circumstances the Board w i l l n e c e s s a r i l y r e l y to an unusual-

l y large extent upon your recommendation and that of execut ive committee of your

bank. Accordingly, the most care fu l cons iderat ion should be given to whether

er not condi t ion of i n s t i t u t i o n involved i s such as to warrant i t s admission to


8 0

> -fc'7357

- 3 -

membership. In t h i s connection i t may be noted that the Board does not f e e l

usual standards for admission to membership should be relaxed i n these cases .

I t i s understood of course that i n any such case you w i l l forward to Board as

soon as p o s s i b l e bank's appl icat ion and a l l of papers usua l ly accompanying

such an appl ica t ion . In advis ing you by wire of approval of any appl icat ion

submitted through te legraphic advices from yeu, Board w i l l use i n such wire

word QUOTE MCHORIVET UNQUOTE fo l lowing name of bank involved. Such word

w i l l mean QUOTE Appl icat ion of such bank for membership has been approved by

Board subject to f i r s t 14 conditions set for th in Trans 1619 and spec ia l

condit ions s tated h e r e a f t e r . Please advise such bank of Board's approval and

conditions of membership prescribed, together with explanation thereof con-

tained i n Board's wire Trans 1619. Letter containing d e t a i l e d advice regard-

ing such approval w i l l be forwarded bank through you as soon as p o s s i b l e ,

When you have rece ived c e r t i f i e d copy of re so lu t ion of board of d irec tors of

such bank accepting condit ions of membership prescribed by Board together with

advice of compliance with any spec ia l conditions to be complied with prior to

admission to membership, the Federal reserve bank i s authorized upon payment

therefor to i s s u e appropriate amount of Federal reserve bank stock and to

accept required reserves . Please advise Board date upon which membership ef

bank becomes e f f e c t i v e and amount of Federal reserve bank stock i s sued to i t ,

forwarding copy of r e so lu t ion accepting conditions of membership and advis ing

of compliance with any conditions to be complied with prior to admission.UNQUOTE

Morri l l .


X-7357

March 12, 1933

BUSS. J 6 3 0 _ Information requested In Trans 1628 should include in each case after respective symbol advice as to ( I ) any affiliation, u d subsidiaries of bank and (D) Branches, if any, located outside of corporate limits of city in which hank is located and date of establishment of each such branch. Information requested in Trans 1628 with reference to (Juote chat powers, if any, other than commercial tanking powers Unquote are held or exercised by bank is intended to develop whether bank is authorized to exercise and the extent to which it has exercised any powers such as trust powers, surety, title Insurance, sale of mortgage securities with or without guarantee or recourse or other broad powers not coming within usual meaning of term banking powers.

M o r r i l l .



A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O T H E FEDERAL R E S E R V E B O A R D X-7359

March 13, 1933.

SUBJECT: Hew Issues of Treasury C e r t i f i c a t e s of Indebtedness.

Dear Sir i

In connection with te legraphic transact ions between

Federal reserve banks covering Government s e c u r i t i e s , the

fo l lowing code words have been designated to cover new i s s u e s

of Treasury C e r t i f i c a t e s of Indebtedness:

"FOWHOBM" Treasury C e r t i f i c a t e s of Indebtedness, Series TAG-1933 - 4$, to be dated March 15, 1933, maturing August 1-5, 1933. ( f i v e months)

"U0T7HQBEST" Treasury C e r t i f i c a t e s of Indebtedness, Series TD3-1933 - 43$, to be dated March 15, 1933, maturing December 15, 1933. (nine months)

These code words should be inserted i n the Federal

reserve telegraph code book, fo l lowing the supplemental code

word l,i'TOWHOBADfl on page 172.

Very truly yours,

J . C. IToell, Ass i s tant Secretary.

TO GOVERNORS OF ALL F. B. B

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