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W. P. G. HARDING, GOVUNOR PAUL M. WAllBURG, VtCI GCIV. ."OI FREDERIC A. DELANO ADOLPH C. MILLER CHARLES S. HAMLIN Ex·O,,ICIO Mtt:M81t:ll8 WILLIAM G. MCADOO SICRITAIY OF THI TRIAIUIY CHAIRilAN JOHN SKELTON WILLIAMS COMPTROLLIR OF THI CUIRINCY H. PARKER WILL;;:-;ICRITARY : SHERMAN P. ALLEN, AIST.liiCR~TAIY FEDERAL RESERVE BOARD AND FISCAL AIINT WASHINGTON . A.DDRIE88 RKPLY TO FEDERAL. REsERVE BOARD DIVISION OF REPORTS AND STATISTICS July 26~ 1918. ·. X-1093 Dear Sir: The attention of the Board has been .called to the fact. that in some Federal Reserve districts note brokero, in order to place paper held by them, have advised banks that Treasury CJrtificates of indebtedness will be taken in payment for pap~r purchased. These certificates are taken by the b~okets at a discount and are s~bsequently offered by them in the market at a ptice below par.· · It is n.ecdless for thE! Board to point out that transactions of · this kind are highly detrimental to the interests of the United States and that they should be avoided. It is i.mp·ortant however, that no steps be taken which w®ld give any ba»k the impression that it is not free to sell. Treasury certificates owned by it whenever its own condition is such as to make a sale advisable. The Board is info~sd that. the Federal Reserve Bank of New York rGcently called a meeting of the New York note brokers, and that after a vary· full and free discussion of the subject, it was agreed by all present that "effecting an exchange or selling these certificates at a disco1.1nt from par had an evil effect on the Government's current program for placing large amounts of the certificates bi-weekly, and is a practice that should be stopped." · There is inclosed hereWith a list of the firms present at .. the meeting, all of which agr~ed to advise their branch offices inthe variou~ cities to discontinue the practice above described. It is suggested that Y0\1 take such st.eps as n:a.y be ne~essary to prevent transactions of this kind being undertaken in your district 1 or to bring about the discontinuance of such a practice if it already exists. Very .truly yours, . Governor, 1'he Governor, Federal Reserve Bank; . ~ r, '1...J!'1._.) ·.. COMMERCIAL BRQKER~. 61 Bnad.vay Bayne, Hinc & Company Bl~ko PAPER Brothers & Co~pany 44 .Wall StrJot R3ctor 9580 ·John 2431 Bond & Company, S. N. 111 Broadway Rector 7820 Bond & Goodwin 111 Broadway Roctor 5770 BUrr & Company 1 Gee. H. 120 Dl·oadway 'Ro ct or 87 40 ·, Heath & Company Campbol~, Curtis & w. Nassau Str3·.Jt 49 v•c.;.lJ Street Sanger Gay & Company, 5 0. 61 Sachs & Company Bro~dway Restor 2334 Hanovor 6144 Re-ctor 5868 60 Wall Stroot. Hancwar 5800 Hathaway, Smith, Folds & Company 45 Wall Stro3t Hanov:::r 6180 Holbrook, Corey. & Company 31 Nassau StrQ6t Cortland 5320 Goldrr~n, Morrill, Lynch & Company MOsoloy & Company, F. s. 7 Wall Stroot· Recto~ 6070 26 Exchange Placa Hanover 6474 14 Viall Stroot Rector 8780 Shaw & Company, Philip M. 15 'lllilli::un Street Broad Woil, Farrell & Company 60 V'all Stroot Hanover 2217 Saloman Bros. & Hutzler 27 Pine Stro.ot John 6300 Naumbu rg & Company, E- July 25 1 1918. 1800 . .1!';./i Q-6 :tt
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