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FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE T O T H E FEDERAL RESERVE BOARD November 1$, 1933# B-929. Dear Sir For your information there are i n c l o s e d c o p i e s of correspondence with the Treasury Department with reference to the redemption of twelve $100 Federal Reserve n o t e s of the Federal Reserve Bank of Minnea p o l i s which disappeared from the Bureau of Engraving and P r i n t i n g on March 11 and which are now being presented for redemption with c o u n t e r f e i t s e a l s and s e r i a l numbers. Very truly yours, L« P , Bethea, ~ A s s i s t a n t Secretary, Inclosures. T GOVERNORS OF ALL F. R. BANKS EXCEPT MINNEAPOLIS* O 543 TREASURY DEPARTMENT 544 Washington Movent) er 2, 1933 Mr, L, ? , Bothea, A s s i s t a n t Secretary, Federal Reserve Board, Sir: Receipt i s acknowledged of your l e t t e r of September 27, 1933* addressed to the Under Secretary concerning c e r t a i n incomplete Federal Reserve notes for the Federal Reserve Bank of Minneapolis, of the $100 denomination, with c o u n t e r f e i t s e a l s and s e r i a l numbers, which have been honored by the Federal Reserve Banks of Hew York and Minneapolis. You c a l l a t t e n t i o n to the f a c t that the incomplete notes d i s appeared from the Bureau of Engraving and p r i n t i n g , and suggest that l i a b i l i t y for their redemption devolves upon that Bureau, The only manner i n which the Bureau can s a t i s f y that l i a b i l i t y i s by p l a c i n g an assessment on the employees of the s e c t i o n from which t h i s sheet of notes disappeared. Many of these employees can i l l a f f o r d to pay such an assessment, and the Department i s r e l u c t a n t to impose such a penalty on innocent employees, I understand that some question was r a i s e d i n the Mew York bank concerning the v a l i d i t y of the four notes f i r s t submitted by that bank to the Treasury for redemption, or at l e a s t concerning the v a l i d i t y of the f i r s t one presented, and that even a f t e r the Federal Reserve Banks were apprised of the s i t u a t i o n , two notes from t h i s sheet were forwarded for redemption by the Federal Reserve Banks of Hew York and Minneapolis, Under those circumstances i t would appear that the p r e s e n t i n g banks might properly be h e l d responsible f o r those s i x n o t e s . The Department w i l l r e l y upon your judgment i n t h i s matter, and i f you s t i l l f e e l that the Bureau should be h e l d r e s p o n s i b l e f o r these n o t e s , the Department w i l l take steps to have the amount involved c o l l e c t e d from employees i n the manner o u t l i n e d above, f o r the r e l i e f of the Federal Reserve Banks concerned. Respectfully, (Signed) Thomas Hewes Thomas Hewes Assistant Secretary of the Treasury, t' 545 FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE T O T H E FEDERAL RESERVE BOARD November 15, 1933 • 3-929b > Honorable Thomas Hewes, A s s i s t a n t Secretary of the Treasury) Treasury Department^ Washington, D, C* Dear Mr, Hewes: Your l e t t e r of November 2, r e l a t i n g to incomplete Federal Reserve n o t e s of the Federal Reserve Bank of Minneapolis, of the $100 denomination, with c o u n t e r f e i t s e a l s and s e r i a l num> b e r s , has been c a r e f u l l y considered by the Board. In view of the statements contained i n your l e t t e r the Board w i l l suggest to the Federal Reserve banks that in the circumstances they absorb the l o s s on these n o t e s . The Board f e e l s , however, that any l i a b i l i t y i n connection with the c i r c u l a t i o n of i n complete notes should be assumed by the Treasury Department and hopes that the Treasury w i l l carry out the i n t e n t i o n expressed i n A s s i s t a n t Secretary Dewey's l e t t e r of July 7* 1925* of asking r e l i e f from Congress for incomplete Federal Reserve notes which get i n t o c i r c u l a t i o n and are subsequently presented for redemption. Very truly yours, I . P . Bethea, Assistant Secretary,
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