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r:-. ;----·; . .----.. ., ucJlL} W. P. G. HARDING, GoVERNOR ALBERT STRAUSS, VICE GoVERNOR ADOLPH C. MILLER CHARLES S. HAMLIN EX·OFI'ICIO MEMBERS CARTER GLASS SECRETARY OF THE TREASURY CIIAIRIIAN J. A. BRODERICK, SECRETARY W. T. CHAPMAN, ASSISTANY SECRETARY W. M. IMLAY, fiSCAL A•ENT FEDERAL RESERVE BOARD JOHN SKELTON WILLIAMS COMPTROLLER OF THE CURRENCY ADDRESS REPLY TO WASHINGTON FEDERAL RESERVE BOARD June 10.1919. Subject: X-1574 Definition of Term "Readily Marketable Staples". Dear Sir: The Federal Reserve Board transmits herewith a definition of the term "readily marketable staples" as used in that part of Section 13 of the Federal Reserve Act which authorizes any member bank to accept drafts which are secured at the tirr.e of acceptance by a warehouse receipt or other such document conveying or securing title covering "readily marketable staples" .. The Board issues this definition as a guide to Federal Reserve Banks and rrember banks in determ.ining what staples may properly be considered readily marketable within the n:eaning of that Section and suggests that although the law does not expressly restrict eligible staples to those which are non-perishable, nevettheless banks as a matter of prudence and protection to themselves should not consider as eligible any staple which is in its nature so perishable as not to be reasonably sure of maintaining its .value as security at least for the life of the draft which is drawn against it .. - DEFINITION. -··• A readily marketable stc~le rr~y be defined as an article of corrmerce; agriculture or industry of such uses as to make it the subject of constant dealings in ready markets with such frequent quot'ations of prices as to rr.ake (a) the price easily and definitely ascertainable; and (b) the staple itself easy to realize upon by sale at any time. Governor .. Letter to Chairmen of all Federal Reserve
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