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397 federal reserve board WASHINGTON ODRESS OFFICIAL CORRESPONDENCE TO T H E FEDERAL RESERVE BOARD X-6320 Juno 3, 1929. SUBJECT: P r e s e r v a t i o n of member bank r e c o r d s . Dear S i r : There i s enclosed herewith a copy of a l e t t e r r e c e i v e d "by the Board from the Department of J u s t i c e , s t a t i n g t h a t s p e c i a l accountants of the Department a s signed to i n v e s t i g a t e a l l e g e d v i o l a t i o n s of the Federal criminal s t a t u t e s a t member banks of the Federal Reserve System n o t i n f r e q u e n t l y f i n d d i f f i c u l t y i n l o c a t i n g the records to support the charges and suggesting t h a t t h i s c o n d i t i o n would be remedied i f such banks were to p r e serve a l l bank records f o r the p e r i o d of the s t a t u t e of l i m i t a t i o n s , t h a t i s , three y e a r s . There i s a l s o enclosed a copy of the Board's r e p l y to t h i s l e t t e r . As s t a t e d in the Board's l e t t e r to the Attorney General, under the p r o v i s i o n s of the Federal Reserve Act i t i s not w i t h i n the j u r i s d i c t i o n of the Board or of the Federal r e s e r v e banks to d i r e c t or to r e q u e s t the member "banks of the Federal Reserve System to p r e s e r v e t h e i r r e c o r d s f o r any s t a t e d p e r i o d f o r the purpose mentioned. The Board suggests, however, t h a t you c a l l to the a t t e n t i o n of the member banks of your d i s t r i c t the communication r e c e i v e d "by the Federal Reserve Board from the Department of J u s t i c e with r e f e r e n c e to t h i s m a t t e r . By order of the Federal Reserve Board. Very t r u l y yours, E. M. McClelland, Assistant Secretary. Enclosures. TO F . R. AGENTS OF AIL F . R. BASKS, 398 COPY X-6320-a DEPARTMENT OF JUSTICE WASHINGTON, D, C. OHL - W R H WHRjDCK A p r i l 29, 1929. The Governor, The Federal Reserve Board. Sir: I t has "been 'brought to my a t t e n t i o n t h a t the Special Accountants of t h i s Department assigned to i n v e s t i g a t e a l l e g e d v i o l a t i o n s of the Federal criminal s t a t u t e s a t member banks not i n f r e q u e n t l y f i n d d i f f i c u l t y i n l o c a t i n g the necessary r e c o r d s to support the criminal charges, and i t has "been suggested t h a t t h i s c o n d i t i o n would be remedied i f such "banks were to p r e serve a l l bank r e c o r d s , s u b s i d i a r y and otherwise, f o r the p e r i o d named i n the S t a t u t e of L i m i t a t i o n s , t h a t i s , the term of t h r e e y e a r s . The question whether the proposed p r a c t i c e i s d e s i r a b l e , and, i f so, what s t e p s , i f any, may p r o p e r l y be taken by your Board to b r i n g i t about, i s submitted f o r your c o n s i d e r a t i o n . Respectfully, For the Attorney General, (S) 0 . B. LUHRING, A s s i s t a n t Attorney General. X-6320-1) COPY June 3., 1929. The Honorable. The Attorney General, Washington, D. C. S I R : The Federal Re serve Board has given cons i d e r a t i o n to your l e t t e r of April 29 (ORL - WHR), i n which you s t a t e t h a t i n v e s t i g a t o r s of your Department o f t e n f i n d d i f f i c u l t y i n l o c a t i n g r e c o r d s a t member banks of the Federal Reserve System t o support charges of a l l e g e d v i o l a t i o n s of the Federal c r i m i n a l s t a t u t e s , and suggest t h a t t h i s c o n d i t i o n would be remedied i f such banks were to p r e s e r v e a l l bank r e c o r d s f o r t h r e e y e a r s . I t i s not w i t h i n t h e j u r i s d i c t i o n of the Federal Reserve Board or of t h e Federal reserve banks under the p r o v i s i o n s of the Federal Reserve Act to d i r e c t or to r e q u e s t the member banks of the Federal ' Reserve System to preserve t h e i r records f o r any s t a t e d p e r i o d f o r the purpose mentioned. The Board, however, i n order to cooperate with your Department i n t h i s matt e r , w i l l address a l e t t e r to the Federal r e s e r v e agent a t each of the Federal r e s e r v e banks of the System, sugg e s t i n g t h a t ycur communication to the Board on t h i s s u b j e c t be c a l l e d to t h e a t t e n t i o n of the member banks of h i s p a r t i c u l a r Federal reserve d i s t r i c t . Very t r u l y yours, R. A. Young, Governor. GBVivdb
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