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1033 W . P . G . HARDING, GOVERNOR ALBERT STRAUSS. VICE GOVERNOR ADOLPH C . MILLER C H A R L E S S . HAMLIN EX-OFFICIO MEMBERS CARTER GLASS SECRETARY OF THE TREASURY CHAIRMAN J O H N SKELTON WILLIAMS COMPTROLLER OF THE CURRENCY FEDERAL RESERVE BOARD J . A . B R O D E R I C K , SECRETARY W . T . CHAPMAN. ASSISTANT SECRETARY w . M. IMLAY. FISCAL AGENT ADDRESS REPLY TO WASHINGTON FEDERAL RESERVE BOARD J u l y 15, 1319 S u b j e c t : Open market o p e r a t i o n s of Federal Reserve "branch banks. Dear Sir .An eicamination of r e p o r t a r e c e i v e d from Federal Reserve branch banks shows t h a t v/hile come of them have been purchasing bankers* acceptances from member banks and carrying thorn on t h e i r own books, o t h e r s have r ofr a i n e d from do i n s so f o r the reason tSiat t h e i r by-lav/a have been i n t e r p r e t e d as p r o h i b i t i n g t h e carrying of bankers' acceptances purchased from member banks on t h e books of the branches. In t h i s connection, I may say t h a t the s e c t i o n in t h e by-laws of c e r t a i n branches which provides that they s h a l l not engage f o r t h e i r o«m account in open market t r a n s a c t i o n s , bankers' acceptances, e t c . , except upon the order and f o r t h e account of the head o f f i c e , i s not construed by the Board as p r o h i b i t i n g board- of d i r e c t o r s of Federal Reserve banks from a u t h o r i z i n g a branch t o purchase bankers' acceptances f r o m member bonks and to c a r r y such acceptance's on t h e branch books. T7i.ll you k i n d l y bring t h i s matter to t h e a t t e n t i o n of your Board of D i r e c t o r s , and o b l i g e , Yours very truly / Governor S t . kSj (Copy of .fcfcis l e t cer sent to : a l l Chairmen)
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