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' <r> r) FEDERAL RESERVE BOARD WASHINGTON ADDRE'SS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD J u l y 12, i g z k . X-Ulll SUBJECT: Code words f o r use between the Federal Reserve Bank of New York and other Federal Reserve Banks i n connection with c e r t a i n t e l e g r a p h i c t r a n s a c t i o n s in U. 3. Government Securities* Dear S i r : In order t o reduce the phraseology in telegrams between Federal Reserve Banks in connection with c e r t a i n t r a n s a c t i o n s in U, S* Government S e c u r i t i e s f o r account of the Treasury and the Open Market Investment Comm i t t e e of t h e Federal Reserve System, i t has been suggested t h a t a d d i t i o n a l code words be supplied from the Federal Reserve Telegraphic Code, The Board has approved t h i s suggestion, and e f f e c t i v e J u l y 21st, t h e following code words w i l l be used between t h e Federal Reserve Bank of New York and other Federal Reserve Banks, covering t h e t r a n s a c t i o n s r e ferred to: "MIXEDLY" Treasury has a u t h o r i z e d under date of ( d a t e ) the p u r chase of (amount and i s s u e ) Government s e c u r i t i e s a t not exceeding ( p r i c e ) f o r account of (account) which w i l l have precedence over a l l orders f o r t h i s i s s u e placed through Committee except outstanding Treasury orders* Please wire condition market in your d i s t r i c t f o r t h i s i s s u e or issue# advising amount and p r i c e of any o f f e r i n g s made* "MIXING" Reference exchange of wires regarding Treasury 1 s a u t h o r i z a t i o n t o purchase Governments you a r e a u t h o r i z e d to purchase (amount and i s s u e ) Government s e c u r i t i e s a t ( p r i c e ) wibang d e t a i l s t o Under S e c r e t a r y of the Treasury and t o us on day purchase i s made. Charge General Account Treasurer United States$>cancel se*» c u r i t i e s and forward t o Washington on date of s e t t l e m e n t i n usual manner. "MIXTURE" Reference exchange of wires regarding Treasury*s a u t h o r i z a t i o n to purchase Governments f o r (account) you a r e a u t h o r i z e d to purchase (amount and i s s u e ) Government s e c u r i t i e s a t ( p r i c e ) -2- x-4iil advising us as purchases are made. Hold s e c u r i t i e s i n s a f e - k e e p i n g uncancelled subject to order of S e c r e t a r y of Treasury f o r t h i s account and charge New York bank with d e t a i l e d w i r e advice. "MIZZEN" Reference exchange of wires regarding Treasury 1 s a u t h o r i z a t i o n to purchase Governments f o r (account) you a r e a u t h o r i z e d to purchase (amount and i s s u e ) Government s e c u r i t i e s a t ( p r i c e ) advising us a s purchases a r e made, Hold sec u r i t i e s uncancelled i n s a f e - k e e p i n g subject t o the order of Secretary of Treasury f o r t h i s account and charge Treasurer*s account in usual mannerw "MIZZENMAST" United S t a t e s Treasury order (account) dated ( d a t e ) has been completed* Please consider a l l a u t h o r i z a t i o n s thereunder cancelled and confirm by wire t o t a l amount purchased by you. "MIZZLING" The new r a t i o of apportioning Government s e c u r i t i e s and b i l l s p u r chased by the System based on the estimated d e f i c i e n c y of earnings f o r the year as revised on the l a s t day of t h e previous month gives your bank jo r a t i o subject to f u r t h e r r e v i s i o n monthly as changes occur in earning a s s e t s . Earnings and t r a n s a c t i o n s w i l l be apportioned t h i s month on the new r a t i o . As purchases Governments since f i r s t of month aggregating $ have been temporarily d i s t r i b u t e d on previous fo r a t i o an adjustment of Treasury notes «and $ c e r t i f i c a t e s i s necessary. E n t r i e s covering adjustment of Government s e c u r i t i e s w i l l be given under separate wire while bankers acceptances w i l l be adj u s t e d through your p a r t i c i p a t i o n in f u t u r e purchases. "MOANED" R e f e r r i n g a c t i o n Committee a t meeting May 29, 1924, a u t h o r i z i n g temporary s a l e s Government s e c u r i t i e s from Special Account t o n e u t r a l i z e abnormal money conditions during q u a r t e r l y tax periods under s u i t a b l e p l a n f o r repurchase f o r Special Account, in handling these t r a n s a c t i o n s t h e same procedure as outl i n e d our wire June 14, 1924, w i l l be followed* We t h e r e f o r e c r e d i t you today . $ your p a r t i c i p a t i o n i n „ Government s e c u r i t i e s sold under r e purchase agreement from Special Investment Account to member banks today* "MOANFUL" R e f e r r i n g temporary s a l e s to member banks under repurchase agreement or of Government s e c u r i t i e s h e l d i n System Account, have repurchased $ system today# We charge you $ your p a r t i c i p a t i o n . Please c r e d i t u s , "MOANFTTLLY" R e f e r r i n g temporary s a l e s t o member banks under repurchase agreement of Government s e c u r i t i e s held in System Account of which $ -— ^ a v e ® en r e purchased f o r System Account thus completing t r a n s a c t i o n , we c r e d i t you o ay your share net earnings r e p r e s e n t i n g accrued earnings l e s s cost a t r a t e of fo per annum during the time s e c u r i t i e s were held by member a s< "MOANING" Have a r r a n g e d w i t h Treasury f o r s u b s c r i p t i o n by r e s e r v e banks t o new issue to r e p l a c e maturing i s s u e s held in Special Investment Account* i y°u r t h e r e f o r e place s u b s c r i p t i o n f o r $_ r e p r e s e n t i n g y°^- propor ion o new s e c u r i t i e s , a d v i s i n g Treasury t h a t payment w i l l be made by $ —— ^ U r ^ n c e r t i f i c a t e s and $ maturing n o t e s . Please wire us amount of V ov * allotment on t h i s exchange s u b s c r i p t i o n , a l s o s e r i a l numbers t o be used^ y York bank in forwarding t o Washington maturing Governments held in Special I' -3- X-Ulil Account. Upon a d v i c e from Washington of allotment please request them to i n s t r u c t u s to make allotment d e l i v e r y new issue through C P U f o r your account which s e c u r i t i e s a r e t o be held in Special Account. Please charge Treasurer d i r e c t and c r e d i t New York f o r maturing par amounts and c r e d i t Treasurer and charge New York f o r new i s s u e . . ] The code words i n d i c a t e d should be i n s e r t e d i n the Federal Reserve Telegraphic Code a t the end of page 153» following the code word "MIXABLE". Very t r u l y y o u r s , J . C. Noell, Assistant Secretary. TO GOVERNORS OP ALL P . R . BATES r'*>er V I. J
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