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\" Ye\_tf.:•• HARDING. Govlaaoll £X..QP'FIC10 M&MBKRS ~! ""Wt#L r.~ WARBURG. VICI GGYIRHOR FREDERIC: A. DELANO ADOLPH C:. MILLER C:HARLEI S. HAMUN WILLIAM Gl. MCADOO SICRITARY OF THE TREASURY CHAIRMAN JOHN SKELTON WILLIAMS H. PARKER WILLIS. SECRITARY IHIRMAN P. ALLEN. ASST. S&CRITARY AIID flSC:AL AGENT FEDERAL RESERVE BOARD COIIPTROL11R OF THE CURRENCY ADQII ..S8 REPLY TO WASHINGTON FEPERAL RESERVE 'BOARP January 26~ 1918. Dear Sir: As you have hsretofore been advised, the question of accepting exaudna.tions of State ~ber banks by the various State authorities in lieu of examinations uade by exaudners selected or approved by the federal Reserve Board, is now (by reason of amend~nts to the Federal Reserve Act) a. natter for detel"!Lina.tion by the Board of Directors of the several Federal Reserve !lanka. tion in ~mitteograph This taet was called to your atten- letter dated August 31, 1917. It apjears from subse~eDt correspondence that the Federal Reserve Banks have agreed to accept examinations bt State authorities in JW'lf States., but that tho State a.uthori ties have not authorized this in all of the States .. iD which State u:ernber banks are located, hence this letter is'to call your attention to the fact that it is necessary either for your Board of DirectOI'f to authorize an unqualified accept-ance of State reports, or for you to ll'J&ke arrangen:ents to have special examinations mde, in all States where such authority hae not been giveu; the oxarnina.tione in such caee to be Dade by your representatives o.r by ~ten who have been or may be designated as special exarrliners by the Jled- eral Reserve Board. / X··t 7'7 - 2 - Where the State has the e~nationu Gonsented~ and y~ have agreed to accept by State authorities, kindly make arrangenents if you have not already done so~ with the various State Banking Departments to furnish you with two signed or certified copies of each report of examir!ation~ one br the files of the Fede~l Reserve Bank and one for tne files of the Federal Reserve Board. As a number of the officers and eiLployes hereto£ or dl.esignated as special examiners., aro not now available for examination work, the Board would be pleased to have each Federal Reserve Agent, after consultation with the Governor of the Bank~ submit the namas of members of the official and clerical ·staff Whom he desires to be designated as special ezandners. It is believed desi~ble that in each bank there should be . an examiner available at all tilr8s to make examinations, if and when necessary., of banks applying for or which have been admitted to membership, to make joint ~ke e~nations with State or other authorities, and to any other special investigation. The exam;l.ner might also properly assist in ana.lyaing the reports of examinations of member banks and in the au<lit of the various banking and fiscal (!apartments of the Reserve Bank. A supply of forms of report for use in examination of State member banks baa been sent to you under separate cover, but examiners nay use forma prescribed by the State Banking Departnent. In general the Board desires that you assua.e the full responsibility for seeing that an &%amination is made of each State member ,. ' x..f7', - 3 - institution in. your district at least once designated State authority where the eact year, either by the :fun1is~1ing of a report r..as been • consented to by the State authorities and approved by y0\1.r bank, or "':Jy representatives of the Federal Reserve Bank who have been or may be designated as special e~ners by the Federal Reserve BoarcJ.. In eitheX' case the Federal Reserve Board nust be furnished with a signed or certified copy of the report. It r.rust, however, be understood., that even thov.g.n acceptance of State exanjnations is authorized, it nay be necessary to rrake special examinations by exar:,iners selected or approved by the Federal Reserve \ Board when such examinati.ons are deemed by the Board. to be requi:r.ed. .. Very truly yours, Governor. J
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