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EX-OFFICIO MEMBERS W. P. G. HARDING, GOV!ItMOR PAUL M. WARBURG, VJCI rliOVIRNOIJ: WILLIAM G. McADOO FREDERIC A. DELANO ADOLPH C. MILLER CHARLES s. HAMLIN SECRETARY OF THE TREASURY CHAIRMAN JOHN SKELTON WILLIAMS COMPTROLLER OF' THE CURRENCY FEDERAL RESERVE BOARD WASHINGTON H. PARKER WILLIS, SECRETARY SHERMAN P. ALLEN, ASST. SECRETARY AND fiSCAL AGENT ADDRESS REPLY TO FEDERAL RESERVE BOARD Apr:l.l 22, 1918. X-892 Dear Sir Referring to cSrcu.lar letter of April 17 1 X-885, relating to drafts drawn vv:l th bill of lading a.ttachcd,. payab:~~;~ ~:J.t. ~ight n1· upon arriYa.l of car, tho Board wishes it 1.:..nderstooti that it :recog::1:i..zes the importance of haY~.:tJ.g ]"odoral reserve banks provide facilit:i.es for handling bill of lading drafts for ~~ber banks~ and that it regrets that legal considerations rr.ade i t necessary to :i.nterfere with the establi.shed practice of some of the Federal reserve banks respecting drafts of this character. The Board. is informed that some of the Federal. reserve banks havo boe.n taking drafts from ID3rnbers payable at sj.ght wHh insti.t\c-~ions to hold until arrival of car., thus IIa.k~g drafts in effect payable upon arrival of car, at the same t~.:r.r.e taking f:rom the mcmb0r bank a written order authorizing any drafts outst.anciing and unpaid after a per;i..od of sixty days from date of rece:i.Jlt by the· Fedor.;:.l reserve bank to be charged to the account of the m.;,mbe1· bank. After con~lting with counsel I wish to advise you th~t no objection will be rrade to yrur disco1..·.n·t5.ng fox- membez· banks drafts wi+.h bill of lading attached, drawn :payable "on or before thirty days ait-3!' da.te 11 ~ "on or before sixty days after date; 1 ~r 11 on or bo!ore ninety days after date", and any arrangement n:ade by you to cha!'go in·terest for the actual time the drafts are outstanding will be approved by tho Board. Very truly yours, Governor.
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