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EX-OFFICIO MEMBERS W . P . 6 . HARDING. GOVERNOR PAU L M. WARBURG, VICE GOVERNOR FREDERIC A. DELANO ADOLPH C. M ILLER CHARLES S. HAMLIN W ILLIAM 6 . MCADOC SECRETARY OF THE TREASURY C h a ir m a n JOHN SKELTON W ILLIAM S Co m p t r o l l e r o f t h e Cu r r e n c y FEDERAL RESERVE BOARD H. PARKER W ILLIS , SECRETARY SHERMAW p ASST. SECRETARY AjpP“F KtCQ&LrAfi ENT WASHINGTON ADDRESS REPLY TO FEDERAL RESERVE BOARD Novsaber 8, 1917. Dear Sir: Under an Act of Congress, passed September 24, 1917, provision was made for the issuance by the Secretary of the Treas ury of two billions of war savings certificates in snail denomina tions, payments for which were to be evidenced by stamps. The Secretary of the Treasury was given a wide latitude and discretion in making the arrangements for the issuance and sale of these war savings certificates. Under thetterms of this Act, the Secretary of the Treasury has appointed a Committee to organise the work of selling these war savings certificates and has named Mr. Frank A, Vanderlip, President of the National City Bank cf New York, as Chairman, and Mr. Delano of this Board as one of the members, (for -full list of Committee see page 730 of the October Bulletin). The plans thus far developed are stated in considerable detail in Treasury Department Circular of November, 1917, a copy of which is inclosed herewith; but in addition to the information there in contained, it is proper to explain that the Secretary of the Treas ury will desire to employ the Federal Reserve Banks as Fiscal Agents for the Government distribution of these certificates. It is not expected that this will throw any large amount of additional labor on the Federal Reserve Banks for the reason that it is thought that the sale of cumulative $5.00 certificates will, to a very great extent do away with the necessity of the selling of "baby11 bonds in denominations of $50.00, and also take the place very largely of the part-payment plan of selling bonds. The main object is that the Federal Reserve Banks shall serve as centers of distribution and supply for these war savings certificates stamps, literature, etc., and it is the thought of the Board that the Federal Reserve Banks can readily utilize a part of their Liberty Loan bond facilities for hand ling the new certificates. This will be especially possible for the reason that the brunt of the campaign for the selling of the war savings certificates will cone in December and January in the interim between the major campaigns for selling Government bonds. X-489 - 2 - As w i l l be seen from the Treasury Da partner, t C ir c u la r ' . a lre a d y referred- to, the Se cre ta ry of the Troaaury ’w i l l u t i l i z e the p ost o f f i c e s fo r the d is t r ib u t io n of the war sa v in g s c e r t i f icates,, stamps and lit e r a t u r e . Furthermore, through the courtesy of the American Bankers' A e s o c ia t io n . it i s expected to in t e r e s t not ' only a l l the n a tio n a l banks but a l l the S ta te banks in the enter p rise . The r e s u lt w i l l be th a t w hile the Federal Reserve Banks w i l l not them selves be expected to take a c tiv e p art in the s a le of war sa v in g s c e r t if ic a t e s , i t i s desired th a t they s h a ll be the main depots from which banks, la r g e employers of la b o r, r a ilr o a d s , mer chants, m anufacturers, and others, who have consented or may here a ft e r consent to a c t a s s e l l i n g agents, w i l l receive t h e ir supply. The Federal Reserve Banks a s F is c a l Agents of the Govern ment w i l l receive c e r t if ic a t e s and stamps in su ita b le pamphlet form and in la r g e consignments and w i l l account fo r them to the Treasury Department as r a p id ly a s they cake s a le s . I t i s not the d e sire of the Boa.rd th a t they s h a ll be c a lle d upon to make r e t a i l s a le * , but only th at they s h a l l deal in consid erab le or w holesale q u a n titie s in su p p ly in g banks, r a ilr o a d s , merchants, m anufacturers, and other • e rp oration s who may s a i l upon them. A l i s t of the su p p lie s which w i l l be sent d ir e c t t o the Federal Reserve Sinks i s as fo llo w s: 1. Form of a p p lic a t io n fo r a u th o rity to a c t a s au th orized " s a le s a ge n t". 2. An illu m in a te d p o ste r or s ig n to be giv e n only to duly au th orised age n cie s. 3. A la r g e envelope co ntainer fo r c e r t if ic a t e s , stamps, etc. 4. The standard war sa v in g s c e r t if ic a t e blanks s iz e 8" x H * . 5. The envelope co n tain e r f o r the c e r t if ic a t e blank, siz e 4" x 83-" X-489 - 3 - 6, The war sa v in g s c e r t if ic a t e stamp ($5.00 m a tu rity v a lu e ) in standard p ack ages. 7, The t h r i f t card, to be used c h ie fly by sch o o l ch ild re n . 8, Tw enty-five &ent t h r i f t stamps in standard packages; to be used c h ie fly by school ch ild re n - Po st o f f i c e s through which s a le s of c e r t if ic a t e stamps and t h r i f t stamps w i l l la r g e ly be made; w i l l make rem ittances to designated -member banks who w i l l in tu rn remit to the Federal Reserve Bank of t h e ir d i s t r i c t fo r the c r e d it of the Treasurer of the United S ta te s. 'These rem ittances should be accompanied by a dep osit s l i p in t r ip li c a t e * one copy to be re tain e d by the Federal Reserve Bank* one copy to be sent to the re m ittin g bank and one copy to be sent to the T reasu rer of the •United S ta te s. • o b lig e . You are requested to k in d ly acknowledge the above* and Yours very tru ly * Governor. X tc lo su re .
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