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FEDERAL RESERVE BOARD WASHINGTON address official correspondence to the federal reserve board X-6766 November 25, 1930. SUBJECT: Unissued Federal Reserve Motes a t Branches. Dear S i r : t h i s l e t t e r i s w r i t t e n f o r the purpose of c a l l i n g the a t t e n t i o n of those Federal reserve "banks^ which operate branches to the f a c t t h a t a stock of unissued Federal r e s e r v e notes f o r use i n emergencies has been e s t a b l i s h e d under t r i p l e c o n t r o l of the Federal r e s e r v e bank, the f e d e r a l r e s e r v e agent and the Auditing Department a t the P i t t s b u r g h ahd Cincinnati Branches of the Federal Reserve Bank of Cleveland and a t the J a c k s o n v i l l e and Hew Orleans Branches of the f e d e r a l Reserve Bank of A t l a n t a . The agreement under which Federal reserve notes have been placed a t these branches i s s i m i l a r to t h a t described i n the Board 1 s l e t t e r of October 7, 1926, (X-4682). I t may be t h a t other Federal reserve banks w i l l wish to e s t a b l i s h a supply of unissued notes a t one or more of t h e i r branches under s i m i l a r conditions and you ate advised t h a t the Federal Reserve Board would not o b j e c t to the establishment of such a p l a n a t any branch. In order t h a t t h i s p l a n may be put into operation, i t f i r s t w i l l be necessary fofc the Federal r e s e r v e bank and the Federal r e s e r v e agent to eftiet4 into an agreement s u b s t a n t i a l l y i n the form enclosed herewith. The Governor of the Bank should execute the agreement on behalf of the Federal r e s e r v e bank pursuant to a proper r e s o l u t i o n of a u t h o r i t y from the Board of D i r e c t o r s of the Bank, a c e r t i f i e d copy of which should be f u r n i s h e d the Federal Reserve Board, together with a c e r t i f i e d copy of the agreement as adopted. For the purpose of p l a c i n g unissued Federal r e s e r v e notes a t any branch, under the t r i p l e c o n t r o l agreement r e f e r r e d to, i t w i l l be necessary f o r the Federal reserve agent or an A s s i s t a n t Federal reserve agent *to v i s i t the branch to receive the notes from the Post O f f i c e a u t h o r i t i e s and to see t h a t they a r e p r o p e r l y deposited under the necessary c o n t r o l combinations# In the event t h a t t h i s p l a n i s e s t a b l i s h e d , you should n o t i f y the Federal Reserve Board of the date on which the Federal X-6766 — 2 ~ r e s e r v e agent or A s s i s t a n t Federal reserve agent w i l l "be p r e s e n t a t the "branch f o r t h i s purpose and. the Board w i l l ship to the agent or a s s i s t a n t agent such amount of Federal r e s e r v e notes as may "be d e s i r e d , to a r r i v e a t the branch on the date s p e c i f i e d . Very t r u l y yours, E. M. McClelland, Assistant Secretary. Enclosure. TO ALL FEDERAL RESERVE AGENTS. X~6766-a AGREEMENT REGARDING CUSTODY OF UNISSUED FEDERAL RESERVE NOTES AT THE BRANCH OF THE FEDERAL RESERVE BANK OF WHEREAS, a stock of unissued Federal reserve notes f o r use i n emergency purposes has been placed i n a number of chests w i t h i n the v a u l t of the branch of the Federal Reserve Bank of , each chest under t r i p l e control of an o f f i c e r of the branch, a r e p r e s e n t a t i v e of the a u d i t i n g department s t a t i o n e d a t the branch, and the Federal Reserve Agent and A s s i s t a n t Federal Reserve Agent a t the Federal Reserve Bank of ; WHEREAS, i t i s proposed t h a t when Federal r e s e r v e notes a r e needed f o r emergency purposes, the need w i l l be communicated to the Federal Reserve Agent a t , who w i l l t e l e g r a p h or telephone h i s c o n t r o l combination or combinations f o r a s p e c i f i c chest or c h e s t s to the s a i d branch; and the s a i d branch w i l l p r e p a r e and mail to the Federal Reserve Agent the u s u a l v a u l t record sheet showing the s e r i a l numbers, denominations and amount of notes i s s u e d , a t t e s t e d by the o f f i c e r of the branch and the r e p r e s e n t a t i v e of the a u d i t i n g department designated as j o i n t custodians, and c a r r y ing a r e c e i p t signed by an o f f i c e r of the branch f o r the amount of notes received from the Federal Reserve Agent through the r e l e a s e of the p a r t i c u l a r chest or chests; WHEREAS, i t i s f u r t h e r proposed t h a t whenever i t i s deemed n e c e s s a r y to r e p l e n i s h the emergency supply of Federal reserve n o t e s h e l d i n accordance with the conditions h e r e i n s e t f o r t h a t the branch of the Federal Reserve Bank of , e i t h e r the Federal Reserve Agent or an A s s i s t a n t "Federal Reserve Agent w i l l be p r e s e n t a t the branch i n order to r e c e i v e such Federal r e s e r v e notes from the p o s t o f f i c e a u t h o r i t i e s or from the branch whenever an accumulation of notes i s turned back to the Fede r a l Reserve Agent, and i n order to see t h a t such notes are p r o p e r l y d e p o s i t e d i n the chest or chests under the necessary control combinations; WHEREAS, the Federal Reserve Board has advised t h a t i t w i l l i n t e r p o s e no o b j e c t i o n to the operation of the p l a n as s e t f o r t h i n t h i s agreement, with the p r o v i s o , however, t h a t i f a t any time i t should appear f o r any reason t h a t the p l a n i s impracticable or i n any way o b j e c t i o n a b l e , the Federal Reserve Board w i l l r e q u i r e i t to be discontinued or modified i n any way which may seem proper under the circumstances; HOW, THEREFORE, i n c o n s i d e r a t i o n of the premises, the Federal Reserve Agent of the Federal Reserve Bank of and the Federal X-6766-a *i9,2 — 2 -* Reserve Bank of , through i t s Governor a c t i n g pursuant to a proper r e s o l u t i o n of i t s board of d i r e c t o r s , hereby e x p r e s s l y consent and agree t h a t the dispatch by the Federal Reserve Agent or by the A s s i s t a n t Federal Reserve Agent of the t e l e g r a p h or t e l e phone message giving the control combination or combinations to a p a r t i c u l a r chest or c h e s t s under the circumstances above s e t f o r t h , w i l l , i n each and every case, be considered as a d e l i v e r y to the Federal r e s e r v e bank of the amount of such Federal r e s e r v e notes shown by the r e c o r d s of the Federal Reserve Agent and of the other j o i n t custodians to have been p l a c e d i n the s a i d c h e s t or c h e s t s a t the time the c o n t r o l was e s t a b l i s h e d , and t h a t t h i s amount w i l l be accepted a s conclusive f o r a l l purposes. In witness whereof, the s a i d Federal Reserve Agent has h e r e unto s e t h i s hand and s e a l , and the s a i d Federal r e s e r v e bank has caused i t s corporate name to be hereunto signed by i t s Governor and i t s corporate s e a l to be hereunto a f f i x e d by i t s S e c r e t a r y t h i s day of 1930. Federal Reserve Agent Federal Reserve Bank of By_ (Corporate Seal) Attest: Secretary. Governor. (SEAL)
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