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. - 729 Ex OPP'ICIO W. P. G. HAIIDING, GOVIRNOO ALII!IIT STRAUSI, VICE GOVERNOR ADOLPH C. MILLER CHARLES S. HAMLIN MEMBERS CARTER GLASS IICRETARY OF THE TREASURY CHAIRMAN JOHN SKELTON WILLIAMS COIIPTROLLER OF THI! CURRENCY FEDERAL RESERVE BOARD WASHINGTON J, A. BRODERICK, SECIIITAIT W. T. CHAPMAN, ASIISTAHT SECRETARY W, M.IIILAY, FISCAL AGENT ADDRESS RIEPLY TO FEDERAL RESERVE BOARD September 20,1919. X-lb77 SubJect: Investment dewand fur Treasury Certificates. near Sir: Referring to,tbe telegrams of Assistant Secretary of the Treasury ~ff~ngwell under date of Septei.Jber 6th ani Septeu;ber 18th, the :Board is convinced tha.t the greo.t success ,of the offerings of certificutes Series T-9 and T-10 roarks the turning point of Treasury war financing, and will have the effect of demonstrating the desirability uf Liberty loan issues for investruent purposes. This shuuld l£:;ad to cuntractiun of credit ~;nd to cunsequen~ strengthening of the Foderfl.l R,eserve Bonks I reserve percentages~ This advant~eous situation will, however, work its full effect only if the banks of every district fully cooperate in .Placing these TreASury cer.-ifica.tes with actual investors and ta.JC1ayers~ In View uf circulars sent by the Treasury :pepartwent to over six hundred thvusand bondholders and taxpayers, a de~d for these certificates will uridoubtedly develo~ frvm these sourc~s, and banks should be urged wherever :J:>OSsible to. sell their .own certificates to investors and taxpeyers, e:.nd in cases where tbe banks hold no certificates they should be urged tu purchase certificates for account of their custumers~ The f~cilities of the Federal Reserve systeru should be freely used to secure the widest possible distribution of certificates to invt<sturs and l~~ers; Federal Reserve Banks that cannot supply certific&tes shuuld buy theru frum those Federal Reserve Banks which o.re in position to supply yhem. The procedure above outlined will be an i.Iuporta.nt factvr in carrying out the wishes of the Board for the establishment of a higher reserve percentage, ~s set forth in circulac letter of Septer1:ber 5th (X.:.l666)very truly yvurs, •• Governor .. Letter to each Governor ..
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