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FEDERAL RESERVE BOARD * ( WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD X-HD-7 August 1, I92U, SUBJECT: Federal Reserve Bank Holidays. Dear S i r : The Board has given f u r t h e r c o n s i d e r a t i o n to the question of the observance by Federal r e s e r v e banks of h o l i d a y s , as discussed in the Board's c i r c u l a r l e t t e r X-U122, dated July 18, and in various r e p l i e s t h e r e t o which have been r e c e i v e d . I t has reached the conclusion t h a t no Federal Reserve bank or branch bank should c l o s e f o r business except on Sundays and such holidays as are generally observed throughout the United S t a t e s and have come by common custom &nd usage to be regarded as n a t i o n a l h o l i d a y s . In reaching t h i s conclusion t h e Board was i n fluenced l a r g e l y by a consideration of t h e b a s i c duty of Federal reserve banks to perform the f u n c t i o n s which a r e contemplated by the law of t h e i r c r e a t i o n and which necess a r i l y involve a c t i v i t i e s of a nation wide c h a r a c t e r . In some r e s p e c t s , Federal reserve banks may be a f f e c t e d by the laws of the S t a t e s in which they are s i t u a t e d . In many other r e s p e c t s t h e i r operations m y be l i m i t e d to Federal r e s e r v e d i s t r i c t l i n e s , but fundamentally they were c r e a t e d t o serve as banks of issue, of d i s c c u n t , and of r e serve f o r the whole n a t i o n , and are the i n s t i t u t i o n s through which the great m a j o r i t y of the banking t r a n s a c t i o n s of the country a r e c l e a r e d , and because they a r e e s s e n t i a l l y n a t i o n a l , r a t h e r than l o c a l , i n s t i t u t i o n s , t h e i r operations should be conducted with primary regard to t h e i n t e r e s t s of the n a t i o n as a whole. You are accordingly advised that the Board w i l l approve the following days as holidays f o r a l l Federal r e serve banks and branches: x-4te« January 1 - New Yearns Day February 2 2 ' - Washington's Birthday July 4 - Independence Day ; Labor Bay Thanksgiving Day December 25"- Chri s t r a Day As noted i n the Board's c i r c u l a r l e t t e r , X-4122, the Board w i l l leave to the d i s c r e t i o n of the Federal r e serve banks the question of c u t t i n g down t h e i r personnel on days when t h e r e i s a l o c a l holiday a f f e c t i n g t h e i r o p e r a t i o n s . This r u l i n g i s e f f e c t i v e August 1% 1924. By d i r e c t i o n of the Federal Reserve Board. Very t r u l y yours, J . C. Noell, .Assistant S e c r e t a r y , TO GOVERNORS /ND CHAIRMEN OF ALL F. R. BJSNFS,
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