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(copy) Si X-6749 September 12, 1930. Mr. W. S. McLucas, Member Federal Advisory Council, Tenth Federal Reserve D i s t r i c t , c/o Mayflower H o t e l , Washington, D.C. Dear Mr. McLucas: At t h e meeting of our Executive Committee t h i s morning, Mr. Mull an ey brought to our a t t e n t i o n a r e s o l u t i o n which was adopted by our Board of D i r e c t o r s a t i t s meeting of A p r i l 24, 1930, i n r e g a r d to t h i s F e d e r a l r e s e r v e bank r e c e i v i n g d i r e c t l y from country non-member banks checks to be c o l l e c t e d and c r e d i t e d to t h e accounts of t h e i r c i t y c o r r e s pondents, a s f o l l o w s : "At t h e suggestion of Governor B a i l e y , Deputy Governor Worthington explained & p r o p o s a l t h a t non-membetf banks be p e r m i t t e d to forward items d i r e c t to t h e Federal r e s e r v e bank f o r c o l l e c t i o n and c r e d i t of t h e i r member bank c o r r e s p o n d e n t s , s t a t i n g t h a t a number of our member banks have r e q u e s t e d t h i s s e r v i c e . A f t e r g e n e r a l d i s c u s s i o n , in which i t was brought out t h a t Governor Young of the Federal Reserve Board c o n s i d e r s the p l a n worthy of c o n s i d e r a t i o n and t h a t the System Committee on C o l l e c t i o n s h a s taken t h e p o s i t i o n t h a t the p l a n should not be adopted, i t was moved by D i r e c t o r P a r k s , seconded by D i r e c t o r Mullaney and u n a n i mously c a r r i e d , t h a t t h e views of' t h e Board of D i r e c t o r s be recorded a s f a v o r i n g t h e a d o p t i o n of such a p l a n because of t h e g e n e r a l b e n e f i t s to be accomplished through saving in t h e p h y s i c a l h a n d l i n g of items, saving i n the time of c o l l e c t i o n of items, and in a f f o r d i n g an o p p o r t u n i t y f o r member banks l o c a t e d in o t h e r than Federal r e s e r v e bank and branch c i t i e s to b e t t e r s e r v e t h e i r correspondent banks." Our Executive Committee r e q u e s t e d me to w r i t e you, sending you t h i s r e s o l u t i o n , t h e same being in accord with the unanimous opinion of t h e Board, and a s k i n g you, i f p o s s i b l e , to get the endorsement of t h i s p l a n from t h e F e d e r a l Advisory Council. Very t r u l y y o u r s , (Signed) M. L. McClure, Chairman.
@FedFRASER