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FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL. CQRR.E$PONDENCE TO THE FEDERAL RESEI'tVE BOARD X-6251 February 27, 1929. StmJECT: Topics for next Governors 1 Conference. Dear Sir: There are enclosed herewith, for your informati~n in advance of the next Governors 1 Conference, copies of letters which have been addressed to the Secretary of the Conference submitting topics which the Board would like to have discussed at the meeting. Very truly yours, E. M. McClelland, Assistant Secretary. TO GOVERNORS OF ALL F • R • BANKS • (En~losures) ' • • X-6251-a February 26 1 1929. Dear Mr. Strater: Some of the Federal reserve banks have established currency depots from time to time at interior and other important points, all of which have had the approval of the Federal Reserve Board. A number of years ago the Board permitted the establishment of a currency depot in a certain city because of unsettled conditions in tr.at territory. Figures that the Eoard now has in its possession, however, convinced the Board that the emergency has passed a.nd the Board has abolished the depot for the reason that its continuation would result in furnishing the member batiks a good portion of their till money. 1 Requests for additional currency depots are being received and the Board has arrived at the conclusion that the practice must from now on be considered as a System matter rather than a regional one, because as various cities learn of the advantages of the currency depot they will request that accommodation. and it will be impossible to grant some and refuse others when the conditions are more or less identical. In view of this situation, the Board would like tc, have this subject placed upon the program for discussion at the next Governors' Conference. Yours very truly, (S) Mr. H. F. Strater, Secretary, Governors' Conference, Federal Reserve Earik, Cleveland, Ohio. R. A. Young, Governor. •• X-6251-b February 26, 1929 Dear Mr. Strater: I have been advised that the Texas legislature has passed a law authorizing depositary banks to include bankers acce,tances of bqnks having a capital of $500 1 000 or more in the pledge of collateral to secure public deposits. Governor Talley believes this will broaden the dema.nd for and the per.manent use of bankers bills by banks in his state, and from my e~~erience in the Ninth Federal Reserve District, I am inclined to agree with him. The mechanics of the transaction, hov.·ever, llla¥ be a bit difficult because no bank will care to turn over to inex-.:_:>erienced public officials the custody and handling of bankers bills any more than they 11ould care to turn over to them Government bonds, and it seems to me that from the st~ndpoint of serving member banks and also in order to promote the use of bankers bills, Federal reserve banks could well afford to act as custodian for public officials who have securities owned but pledged by member banks. In view of this possibility, the Board would like to have this subject placed on the program for discussion at the next Governors' Conference. Yours very truly, (S) Mr. H. F. Strater, Secretary, Governors• Conference, Federal Reserve Bank, Cleveland, Ohio. R. A. Young, Governor.
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