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263 F E D E R A L RESERVE BOARD WASHINGTON x-3060 March 3 , SUBJECT: 1921. M o n t h l y Summary o f L o c a l A c c e p t a n c e M a r k e t C o n d i t i o n s * Bear S i r : The B o a r d i s i n f o r m e d t h a t t h e A m e r i c a n A c c e p t a n c e Covdacil h a s r e q u e s t e d e a c h F e d e r a l R e s e r v e Agent t o f u r n i s h i t o n t h e 1 5 t h o f e a c h month w i t h a two h u n d r e d word s t a t e m e n t o f c o n d i t i o n s i n t h e l o c a l a c c e p t a n c e m a r k e t , The B o a r d i s of t h e o p i n i o n t h a t a s t u d y o f c o n d i t i o n s i n t h e l o c a l a c c e p t a n c e noarket i s h i g h l y d e s i r a b l e and t h a t i t w o u l d h e w e l l t o i n c l u d e e a c h month i n t h e r e g u l a r r e p o r t o f " b u s i n e s s and t a n k i n g c o n d i t i o n s a summary o f t h e s i t u a t i o n w i t h respect to acceptances. The Board b e l i e v e s , h o w e v e r , t h a t t h e P u b l i c i t y D e p a r t m e n t s o f t h e F e d e r a } R e s e r v e Banks s h o u l d n o t a c t a s a g e n c i e s of p r i v a t e o r g a n i z a t i o n s , e v e n though an o r g a n i z a t i o n b e one a s u s e f u l and c o o p e r a t i v e a s the American Acceptance C o u n c i l . If t h i s were permitted i t m i g h t b e d i f f i c u l t t o draw t h e l i n e a g a i n s t o t h e r r e q u e s t s and an embarrassing s i t u a t i o n might a r i s e . The B o a r d u n d e r s t a n d s t h a t t h e m o n t h l y r e p o r t s w i l l now b e s e n t r e g u l a r l y t o t h e D i v i s i o n o f A n a l y s i s and R e s e a r c h and w o u l d s u g g e s t t h a t t h e i n f o r m a t i o n d e s i r e d b e g i v e n t o t h e A m e r i c a n A c c e p t a n c e C o u n c i l b y t h e D i v i s i o n o f A n a l y s i s and R e s e a r c h a s s o o n a s t h e m o n t h l y r e p o r t s of b u s i n e s s and b a n k i n g c o n d i t i o n s are r e c e i v e d from the s e v e r a l Federal Reserve Banks. Very t r u l y y o u r s , G o v e r n o r TO ALL FEDERAL RESERVE AGENTS* 264: F E D E R A L RESERVE B O A R D WASHINGTON X-3061 CONFIDENTIAL: March 5, 1921. SUBJECT: Transfer of Functions of the Comptroller of the Currency to the Federal Reserve Board. Dear Sir: A b i l l was introduced in Congress in December, 1920, which provided, among other things, for the abolition of the o f f i c e of the Comptroll e r e£ the Currency and the transfer of the functions of that office to tLe Federal Reserve Board. Under the provisions of this b i l l , the Board would have the power to place the responsibility for national bank examinations in each Federal Beserve District with the Federal Reserve Agent. This b i l l was not reported out of the Conmittee a t the l a s t Congress but the Board understands that i t will be brought up for action a t the extra session of the new Congress. In order that the Board may be In a better position to express an opinion concerning the merits of the b i l l , you are requested to furnish the Board with the following information: 1. Would i t be practicable, in case the responsibility for the examination of a l l national banks in your District should, be placed upon you, to use, as a basis of your examining force, the present national bank examiners assigned to your District? 2. Would you regard the placing of the responsibility for national bank examinations on the Federal Beserve Agent in each Federal Reserve District as an improvement over the present system? 3. What would be the effect of the above arrangement upon the relations of the Federal Reserve Banks with their national bank members? 4. Would the credit operations of the Federal Reserve Banks be facilitated by this arrangement? Besides furnishing the foregoing information you are invited to make any general conanents on the proposition that may occur to you. Very truly yours, Governor. TO ALL FEDERAL RESERVE AGENTS.
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