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EX-OFPICIO MEMBERS W. P. G. HARDING, GoVERNOR ALBERT STRAUSS, VICE GoYE8NOR ADOLPH C. MILLER CHARLES S. HAMLIN CARTER GLASS SECRETARY OF THE TREASURY CHAIRMAN JOHN SKELTON WILLIAMS FEDERAL RESERVE BOARD CoMPTROLLER OF THE CURRENCY J. A. BRODERICK, SECRETARY W. T. CHAPMAN, ASSISTANT SECRETARY W. M. IMLAY, FISCAL AOENT ADDRESS REPLY TO WASHINGTON FEDERAL RESERVE BOARD June 10, 1919. X-1573 Subject:Borrowings by Member Banks on Security of Government Obligations. Dear Sir: The Federal Reserve Board is concerned over the existing tendency towards excessive speculation, and while ordinarily this could . be corrected by an advance in discount rates at the Federal Reserve Banks, it is not practicable to apply this check at this time because of Govern- ment financing. By far the larger part of the invested assets of Federal Reserve Banks consists of paper secured by Government obligations, and the Board is anxious to get some information on which it can form an estimate as to the extent of member bank borrowings on Government collateral made for purposes other than for carrying customers who have purchased Liberty bonds on account, or other than for purely The Board would aypreciate your co~ercial co~ents purposes. on this situation in your district. Very truly yours, Governor. Draft of letter to the Chairman of each Federal Reserve Bank.
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