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2'91 W. P. G. HARDING. GovERNOR ALBERT STRAUSS, VICE GOVERNOR ADOLPH C. MILLER CHARLES S. HAMLIN EX·OFFICIO ME.MBERS CARTER GLASS SEc.11:ETA~1.i. 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 AGENT ADDRESS REPLY TO WASHINGTON FEDERAL RESERVE BOARD MJ.y 13, 1919. X-1534 Subject~Campaign for Par Points. Dear Sir: Four hundred and twenty-nine (429) banks were added to the par list during April, and a total of twelve hundred and seventy (1270) since January 1st. Eight. Of this number over eight hundred are in Districts Seven and The Victory Loan campaign is coupleted, and you are now asked to put the power of your bank organization back of a determined effort to place every solvent bank upon the par list of your District. Every non-par bank should be reached either by correspondence, or by a personal visit of a representative of your system. This latter Bank who is thoroughly familiar with the transit pl~n has been very successful in two districts. The prospect of the extension of the par territory by States is more favorable than by district%. the trend will be For instance, from present indic4tions westward from the Atlantic, and probably eastward from the Pacific States: PAR TERRITORY New England (6 States) New York New Jersey Delaware Districts 1 and 2 2 and 3 3 5 Pennsylvania All· banks 2 ............... ·?~ " " " II II " Number of non-par banks 28 52 33 95 -2-· X-1534 _4 ____ Districts .. Ohio Michiga.n Indid.Il.:l. 7 a.nd 8 Illinois 7 and 8 Number of non-par 200 324 292 7 267 Attention is called to the above extension of par lists by Benlk~ t~ble just to show the possibility of the St.;~.tes. For instance 1 where a. State is in two Federal the Reserve Districts, the campaign in both sections of/St~te should be simultaneous. A statement is frequently made to the Reserve Ba.nk representatives by officers of the non-par banks, tha.t such banks will not agree to remit at par until the Reserve Bank is in a position to place all banks in the State on the par list. It is recognized, of course, that lim some States an irreduc~ble minimum will shortly be reached. It has been suggested that, in justice to the banks that are now on the par list, in such States a date should be fixed, up to which time a.n intensive c~paign should be m.;l.de ~d every non-par ba.nk a.n opportunity to volunta.rily join the par collection system, but time the Reserve Bank should adopt such me~ns as r~y ~ft~r given which be necessary to insure collection at par of items on all banks in such Sta.teso The continued success of the collection system depends ;~pon to a.dd at lea.st four to five thousa.nd banks to the par list. The our ability p~r territory will spread if the Reserve Ba.nk officials enter wholeheartedly into the movement. The Boa.rd realizes tha.t difficulties in some districts a.ppear almost insurmounta.ble, but the objections will be gradually overcome and the system extended until items on every solvent bank .;~.re collectible through the Reserve Ba~~s~ . X-1534 ' - 3 The Board is confident this campaign be~use t~t successful results will be the officers of FederQl Reserve ~nks who ~re f~iliar with the transit problems • What progress will your B~nk report by July lst? Very truly yours, Governor. in it will be intelligently &nd carefully directed by ~ • att~ined 293
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