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PROPOSED DRAFT OF A FORM OF CIRCULAR TO BE ISSUED BY ALL FEDERAL RESERVE BANKS WITH THE AUTHORITY AND APPROVAL OF THE FEDERAL RESERVE BOARD To Member Banks: T Section 13 of the Federal Reserve Act, which deals with the powers of Federal Reserve Banks, provides that: "Any Federal Reserve Bank may receive, from any of it's member banks * * * deposits of current funds in law ful money, National bank notes, Federal reserve notes, or checks and drafts oh solvent member banks payable upon presentation," The Federal Reserve Bank of a nnounces that it is now prepared to receive from any member bank on deposit at par, subject to final payment, check drawn on any of the member banks of District No . *, provided that each member bank availing itself of this privilege will authorize the Federal Reserve Bank of to charge its account with any checks drawn upon it that nay be received from other member banks or from the United States, such checks to be forwarded without delay to the member bank for final payment. Provided, however, that each member bank entering into this arrangement agrees to maintain with the Federal Reserve Bank of , subject to any penalty for in sufficient reserves that may be imposed by the Federal Reserve Board, a balance, in addition to the member bank's legal re serve, sufficient to cover any excess of debit over credit items. (*) Noto: The Federal Reserve Bank may wish to change this and, time being limit their taking of checks to those drawn on Dankv i reserve cities or on certain specified cities which they will designate.
@FedFRASER