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173 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM .r S-595 WASHINGTON ADORES& OF"I'"ICIAL CORRESPONDENCE TD THE SDARO . • • .. Dear Sir: Enclo(>ed h•:!rewlth is a copy of a letter wri tt~:m by the Treasury Department to a State member bank with respect to the establishment of a banking faeil.:i.ty at a 1lili.tary reservation by the member bank under its cie:3ignation by the Treasury as a. Depositary and FinanciAl Agent of the Govermnent. It is under:->tood that the letter to the State member bank in this case :Ls typical of letters writt.en to b<mks es- t'3.blishing these facilities but that in o>ome caseG there may be other points covered. • The Board's Division of Examinatiom; will 1\e,c.p the F'edera1 Heserve Banks currently infonned as to the esta:)J.ishment of these facilities by State ncember banks i.:n their re-spective districts and vdll pass on any information recoived from the Treasury Department wi.th resped to speeia1 points covered in the agreements between the State member hsnk D.nd the Treasury Dc~partment. v ••~ry truly yours' • . •· ~--,; --····- ~--??-t~tt04 L. P. Bethea, Assistant Secreb. ry. Enclosure TO Tllli PRESIDENTS OF ALL FEDEli.AL RbSEHVE BANKS· • • .. • • • • • • . •· .. • Dear Mr • Reference is mrtde to the recent conference in your bank at whieh Mr. of this Deoa.rtment and Maior of the War Department were present rclati~e to the need for limited banking facHities at Camp It L:> 1.mderstood that your bank is -v;'illing to render this essentio:,l banking facility provided a satisfactory arrangement hi perfected to of.f.set costs of operatj.on. The Treasury is rJcsirow:: of having the ~~---:~--~--~-~ -.::---' under its designation as a Depositary and Financial Agent of the Government, perform the following functions: (l), provide paying and receiving facilities for Arm.,y p~>rsonnel, including custodians of Post Exch<mgc funds, Company funds and other similar unit funds; (2) furnish the cash requirements of Finance Officers except cash for month-end pay·rolls; ( 3) accept deposits from Fin.<:mee Officer:> for credit to the account of the Treasurer of the United States; (h) sell iVar Savings Bonds and Stamps; and ( 5) sell cashi::r' ~3 c:hocks ;:u·ld bank money orders. All of the foregoing services should lY~ rendered without charg•;) to the Arrey personnel t:~xcopt for the sale of cashier's ehecks a.nd bank money orders. Authorization to perform thc~se functions ::tt Camp :Ls contingent upon the mil:i.tary authorities providlng adequate quarters at the Post and military proteetlon to the extent neces~mr.J • Confirming the a.rrangm::t\.mt agreect to at the conference, you are o.dviseri tho.t. the Treasury, as a. b<O c::is for your providing limited banking .facilities ~t Cnmp , b wilUng to place c.>.n initial balance of $ with your ba.nk, with the privilege of investing such b2.lance in a 2% Depos:itar; Bond. The Treasury is 'fVi.lling, also, to permit your bank to purcha.se w:i. th its ow1:1 i\n1ds a ?% Dep0si:Lary Bond in the amount of $ , makinc a total of ~'--- invest<!d in these bonds. The arrangement vrill be reviewed monthly for the purpose of mHking such adjustments as maJ be warranted. I wish to assure you that sufficient 2% Depositary Bonds wiJ.l be ,"lllott.cd to your b:mk- to o.f.t'set the costs involvud in providing banking facilities at Camp_ _ • It will be nBeessarJ for your bank to exocute and return to the Treasury the original and two coo:ie;s o.f Form No. 3f'?, Subscription Form for 2% Depositary· B~md. Thu amount of yot~r subscription on Form No. 387 ~•hould be $ ;:md vou ahou1ci i.ndicate that Methods A and C, as outlined on the r'CV\:;:se or' t.he form, are to be usod in making paymc~nt for the 2% Depositary Bond . 175 S-595-a -2- In order thc.t the TY"easur',r may nroceed with the mattsr, it is requested that you for~Nard your d;cch: ~n: d·:-aft for $ payable to the Treas,u·er of the Unit~Jd States in pal~t payment for a 2% Depositary Bond. WU.h respect to the rcm.aLning ~~ , y-ou are advised that .funds in that amount will b:~ ph.ceri to the:: cre~oi your b<:mh: by the Treasurer of the United Stl'.tes and. used in making payment for 11 deposit3.ry bond. • . . It shc•uld be und<:T~;~ood tlv:t the fac:l.lity at Camp_ _ will be in no Z>ense n branch bank but will he a function which your bank ha;:; been requested to pcrJ'o.rm. by virtue of its de::oigna.tior1 :1~> a Deposita.ry :.md Financial Jl.gent nf the Government. Upon receipt of Form No. 387, cornplet'Jly executed, tog::th•ar wi tb ,your check or draft fm· $ , naya.IJle to th.:: Trcn;.sur·~;r o.f the United States, irmnediat~.~ step:-> w'iTfh'"e tat~ en to cc.mplcte the arran;~ement an<1 ;you will be advised • Very truJ.y your.9, (S:Lrrned) • • • • . .. , . . • Under Seeret~:~.ry D. W. Bell of the Treasury
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