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09 6x O F F I C I O DAVID F. HOUSTON SECRETARY 02 THE TREASURY CHAIRMAN FEDERAL RESERVE BOARD JOHN SKELTON WILLIAMS COMPTROLLER OF THE CURRENCY A D D R E S S W, P. G, HARDING, GOVERNOR ALBERT STRAUSS. VICE GOVERNOR ADOLPH C. MILLER CHARLES S. HAMLIN HENRY A. MOEHLENPAH MEMBKftfl R E P L Y T O FEDERAL RESERVE BOARD W. T. CHAPMAN, SECRETARY R. G. EMERSON, ASSISTANT SECRETARY W. M, 1MLAY, FISCAL A6ENT WASHINGTON October 1 8 , 1 9 2 0 . X-2030 Subject- Uniformity in method of handling i n t e r - R e s e r v e Bank t r a n s a c t i o n s through the Gold Settlement Bind. Dear S i r : In order t o secure u n i f o r m i t y and to e l i m i n a t e c o n f u s i o n , the Board r e q u e s t s t h a t , commencing as soon as i t meets w i t h the convenience of the Federal Reserve Banks, but not l a t e r than November 1 , 1920, e l l i n t e r - R e s e r v e Bank t r a n s a c t i o n s through the Gold Settlement Fund, u n l e s s otherwise d i r e c t e d by the Board, be made through the d a i l y Gold Fund Clearing, w i t h the f o l l o w i n g e x c e p t i o n s which s h a l l always be made by d i r e c t t r a n s f e r through the Federal Reserve Board: 1. Payments on account of a l l i n t e r - F e d e r a l Reserve Bank r e d i s counts, i n c l u d i n g s a l e s of acceptances whether or not endorsed by the s e l l i n g Bank when such acceptances have been s o l d from the p o r t f o l i o of the s e l l i n g Bank. 2. A l l t r a n s f e r s on account of maturing r e d i s c o u n t s and advance payments and r e b a t e s of r e d i s c o u n t s . 3. Transfers of funds f o r account of the Treasurer of t h e United States. The above e x c e p t i o n s have been provided t o enable the Board to be promptly advised of t h e e f f e c t of l a r g e i n t e r - d i s t r i c t movements of gold UDOn the r e s e r v e p o s i t i o n of the Federal Reserve Banks i n c o n n e c t i o n w i t h the arranging of i n t e r - R e s e r v e Bank r e d i s c o u n t s , and a l s o i n order t h a t the Board may be ad vis ed of changes i n the s t a t u s of r e d i s c o u n t s between Reserve Banks. I t i s also requested; 1. That a l l telegrams covering payment on account of maturing r e d i s counts and advance payments and r e b a t e s of r e d i s c o u n t s by d i r e c t t r a n s f e r s through the Gold Settlement Fund be d i s p a t c h e d to reach the Board n o t l a t e r than 3 - 3 0 p . m . , ( 1 1 . 3 0 a.m. Saturdays ) , Washington time, i n order t h a t there may be no n e c e s s i t y f o r any bank t o reopen i t s books a f t e r c l o s i n g f o r the day to make e n t r i e s i n c i d e n t t o such t r a n s a c t i o n s . X-2030 -2- That a l l o t h e r telegrams to the Board r e q u e s t i n g payments to other Federal Reserve Banks "by d i r e c t t r a n s f e r through the Gold Settlement Fund be expedited as much a s p o s s i b l e . Very t r u l y yours, A s s i s t a n t to Governor. To Chairmen of a l l F,R. Banks.
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