The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BOARD washington ADDRESS OFFICIAL CORRESPONDENCE TO T H E FEDERAL RESERVE BOARD X-6456 December 21, 1929. SUBJECT: Currency Policy effective January 2, 1930. Dear S i r : For your information and guidance there are enclosed herewith copies of correspondence with the Undersecretary of the Treasury in which the Undersecretary expresses the accord of the Treasury with the action taken by the Governors at their recent conference in voting to discontinue, as of January 2, 1930, the payment of old series Federal reserve notes in the denominations of $5 to $100, inclusive, and authorizes the same procedure with respect to old series United States currency in those denominations. With regard to the recommendation of the Governors' Conference that the Treasury continue to maintain at the highest possible level i t s f a c i l i t i e s for the redemption of old series National bank notes, and the request of the Undersecretary that steps be taken to insure the receipt for redemption of $6,00Q,000 old series notes daily, on an average, on and a f t e r January 2, you are requested to forward for redemption, from your d i s t r i c t , not to exceed weekly, old series National bank notes, regardless of the ir condition of f i t n e s s . In other words, in order to maintain the above schedule of shipments which i s based, a t the suggestion of the Treasurer of the United States, upon your proportion of total redemptions during the f i s c a l year 1928, you are authorized to make any adjustment necessary in tjae standard of f i t n e s s in e f f e c t in your d i s t r i c t . I f , for any reason, you should not be able either now or l a t e r to maintain this schedule of shipments you are requested to immediately advise the Board in order that adjustments may be made i n the shipping schedules of other d i s t r i c t s . On the contrary, should you f e e l that you could maintain a larger schedule, please advise t h i s o f f i c e . Needless to say, should your bank be able to maintain i t s schedule of redemptions with shipments of worn notes they should be f o r warded in preference to new notes or notes in good condition. I t is understood that a l l shipments from the parent o f f i c e s will continue to receive one charter number assortment. X-6456 — 3 — In order to avoid d i f f i c u l t y in Cent Redemption Fund, the Treasurer would Federal reserve "banks, particularly those would spread their shipments over several maintaining the 5 Per appreciate i t if the with large weekly quotas, days of the week. Very truly yours, E. M. McClelland, Assistant Secretary. TO G V R O S OF ALL F. R. BAMS. OENR (COPT) X-6456-a TRMSlffiY DEPARTMENT Washington December 18, 1929. My dear Governor; I have your l e t t e r of the 13th instant in which you convey the action of the Governors' conference on December 12, 1929, in voting that the payment of Old. Series Federal reserve notes in the denominations of $5 to $100, inclusive, be discontinued on January 2, 1930» and recommending that the Treasury continue to maintain a t the highest possible level i t s f a c i l i t i e s for the redemption of Old Series National bank notes. In your l e t t e r you ask advice regarding Qld Serie's United States notes and gold c e r t i f i c a t e s of corresponding denominations. The Treasury i s in hearty accord with the action taken by the Governors with respect to Old Series Federal reserve notes, and hereby authorizes the same procedure with respect to Old Series United States currency in the denominations $5 to $100, inclusive. Accord- ingly, will you please i n s t r u c t the Federal Reserve Banks on and a f t e r January 2, 1930, to discontinue f u r t h e r payments of Old Series United States currency in denominations up to $100, inclusive, to cancel and redeem any such Old Series United States currency t h e r e a f t e r received, and t h e r e a f t e r to r e s t r i c t payments of United States currency in such denominations to the Hew Series only. As regards Old Series National bank notes outstanding, i t i s requested that the Board inaugurate such measures, with the cooperation of the Treasurer of the United States, as will insure the receipt for 326 -2- X-6456-a redemption of $6,000,000 Old. Series daily, on an average, on and a f t e r January 2. The Treasurer of the United States is being given similar advice. A copy of my l e t t e r addressed to him under t h i s date is enclosed for your information. Very t r u l y yours, (signed) Ogden L. Mills, Under Secretary of the Treasury. Hon. 2. A. Young, Governor, Federal Reserve^ Board. Enclosure: 327 (COPY) X~6456-b December 1.8, 1929. The Treasurer of the United States: Sir,* With t h i s please f i n d cony of a communication, addressed under t h i s date, to the Governor of the Federal Reserve Board, with respect to discontinuing payments af Old Series United States currency in denominations up to $100, inclusive, Oil January 2, next, and with respect to insuring redemptions of Old Series National hank notes up to the established average Of $6*000,000 daily. Oil and a f t e r January 2, next, will you please confine your payments of a l l kinds of paper currency in denominations up to $100, inclusive, to the Hew Series only* and thereafter cancel and redeem a l l Old Series currency of these denominations whitih may be received. Respectfully, (Signed) Ogden 1. Kills, U n d e r s e c r e t a r y of t h e T r e a s u r y . ' Enclosure: COPY X-6456-fi December 13, 1929, Dear Mr, S e c r e t a r y : Under d a t e of O c t o b e r 1 4 , 1929, you a d d r e s s e d a l e t t e r t o me w i t h r e g a r d t o t h e p o l i c y which s h o u l d "be p u r s u e d i n t h e m a t t e r of c o n t i n u i n g payments of U n i t e d S t a t e s and F e d e r a l R e s e r v e n o t e s of t h e o l d s i z e . This s u b j e c t was made a t o p i c f o r c o n s i d e r a t i o n a t t h e C o n f e r e n c e of Governors which was h e l d i n Washington t h i s week and I am e n c l o s i n g copy of a r e p o r t made "by t h e s e c r e t a r y of t h e c o n f e r e n c e f r o m which you w i l l n o t e t h a t i t was v o t e d t o d i s c o n t i n u e payment of o l d s e r i e s F e d e r a l R e s e r v e n o t e s , i n t h e d e n o m i n a t i o n s of $ 5 . 0 0 t o $ 1 0 0 . 0 0 i n c l u s i v e , on J a n u a r y 2 , 1930. w i l l you p l e a s e a d v i s e w h e t h e r t h e T r e a s u r y d e s i r e s t o a u t h o r i z e F e d e r a l r e s e r v e bankd t o d i s c o n t i n u e payments of o l d s i z e U n i t e d S t a t e s n o t e s a n d g o l d c e r t i f i c a t e s At t h e same t i m e . I u n d e r s t a n d t h a t the Treasury program f o r the r e d e m p t i o n of n a t i o n a l "bank n a t e s c o n t e m p l a t e s t h a t a f t e r t h e f i r s t of t h e y e a r t h e F e d e r a l r e s e r v e "banks w i l l "be a u t h o r i z e d t o redeem o l d s e r i e s n o t e s r e g a r d l e s s of c o n d i t i o n . I f t h i s i s t r u e , c o u l d n o t a d v i c e to t h e F e d e r a l r e s e r v e b a n k s r e g a r d i n g a l l of t h e s e i s s u e s b6 i n c o r p o r a t e d i n one communication, which i t ; i s S u g g e s t e d s h o u l d be d i s p a t c h e d a t the e a r l i e s t p o s s i b l e d a t e . Very t r u l y -yours, R. A. Young, Governor, H o n o r a b l e Ogden L, M i l l s , U n d e r s e c r e t a r y of t h e T r e a s u r y , Washington, D. C. X—645&-d COPY December 12, 1929. Dear S i r : The Board's l e t t e r X-6393 of October 19, 1929, submitting as topics to the Governors1 Conference the question of discontinuing payments of old series Federal reserve notes in the denominations of five dollars to one hundred dollars inclusive and the problem of handling national bank notes of those denominations a f t e r discontinuance of payments of Federal reserve and United States notes in the old series, was discussed at the Governors' Conference today and i t vas voted t h a t the payment of old s e r i e s Federal r e s e r v e notes i n the denominations mentioned be discontinued on January 2nd and that the Conference recommend that the Treasury continue to maintain at the highest possible level t h e i r f a c i l i t i e s for the redemption of national bank no te s. Very t r u l y yours, (S) Hon. Boy A. Young, Governor, Federal Reserve Board, Washington, D. C. H. F. Strater, Secretary, Governors' Conference. X-6456-e COPY Amount Redeemable Weekly on Basis of $6,000,000 per day. 3y D i s t r i c t s . Boston $ 2,520,000 New York 7,560,000 Philadelphia 3,170,000 Cleveland 3,815,000 Richmond 2,520,000 Atlanta 2,485,000 Chi cago 4,750,000 S t . Louis 1,905,000 Minneapolis 755,000 Kansas City 1,440,000 Dallas 1,730,000 San Francisco 3,135,000 $35,785,000 Other Sources Total 215,000 $36,000,000
@FedFRASER