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WlLLIAIIf G. McADOO I.CRITARY OP THI TIU.SURY CHAIRMAN JOHN SKELTON WU.LIAMS FEDERAL RESERVE BOARD COMPTROLLER OF THI CURRENCY H. PARKER WILLIS, SICIITAII'I SHERMAN P. ALLEN. Aaat.IJICRITARY AND FISCAL AeiNT ADDR&88 RI:PL.Y TO WASHINGTON FEDERAL. RESERVE aOARD June 17, 1918.;. • Dear Sir: There will mature on June 25th $1,600,000,000 of Treasury eertifica:t.es which were issued in anticipation oi taxes~ a.nd on or before that date the Treasury will be in receipt of the incane and excess p-rofit taxes. The Treasurt bas Dlade an urgent req1.1est that tax parers holding certificates will make payment as far as possible iD these certificates, a large am~~t of which have already been surrendered in this way. The Treasutr has no means of estimating in ad._,ace 'What the actual payments in ·ta.sh or in certif icat.es will be, or .. what. amoU.nt of certiticat.es will· be presented: tor payment in each Federal AeeeJ'Ye dietrict. It is eseential that tax payments .should be ade With tl)e least possible disturbance of the money market~ After discus tin& the ~tier with ·the Federal Resen-e B~ari •. . Aasiltant Secretary Letfingwell has reached the conclusion that it will . .,_ 'beat to avoid h8C'"7 drafts on, Liberty loan depositaries -for t.he ~r pose of placillg l'ederal Reserve banls in tun4s for the :'ademption of tax oertit:tcates preeelited. Federal Reserve banks are requested to . _ teleprapb as promptly as possible to the TJ-ea.sury'tbe amounts recei1red 'bJ t.b8lll for accoJin'\ of taxes and the amounts received in Treasury certificates, &.$ wll as the amounts paid out ;.n redemption of these certificat.es. A8 so~n as the result of these operations is definitely known, the Treas• ur.r ~poses to make the tranefers necessary for the adjustment of these a.e~ounts. Pending this,· and .before Friday, June 28th, the Assistant Secretary ,will d~cuss with t.he Board the amount of Treasury certificates of short maturity which it may be expedient to sell to the Federal Resel'ft · 1Manks in order to cover any overdra!·t.s which may occur during the short period before calls may· properly be made upon Liberty loan deposit&l'ies. Very truly yours, Governor. ThEi Oover.nor, Federal Reserve Bank, · 1 '
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