The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
W. P. G. HARDING, GoVERIIOR ALBERT STRAU$5, VICE GoVERNOR ADOLPH C. MILI;£R (~ CHARLES S. HA~N l_ .•- , . Ex ..OFP'JCIO MEMBBRI f.\ WILLIAM G. McADOO SECRETA.IY OF THE TREASURY \ CHAIRMAN JOHN SKELTON WILLIAMS COIIPTROLLIR OF THE CURRENCY FEDERAL RESERVE BOARD J. A. BRODERICK, SIII:REI'AIY L. C. ADELSON. ASSISTANT SICIETA.•Y W. T. CHAPMAN. ASSISTANT S!CREI'ARY W. M. IMLAY, FISCAL MDT WASHINGTON ADDRESS REPLY TO FEDERAL RESERVE BOARD November Z2 1 1918. X-1283. SUBJECT: REFERENCE BY NON-MEMBER BANKS TO }tAINTENANCE 'BY THEl·~ O'F' CLEARING ACCOUNTS WITH FEDERAL RESERVE BANKS. Dear Sir: The Loard has had frequent inquiries as to the propriety of p0rmitting non-mettber banks which rr.aintain accounts with Federal Reserve banks for purposes of e~change or. collection to rrake use of the expression "Clearing ~-:ember of thQ Fade!'al Fteser.re 3ank 11 • It vvould be in;proper to perrrJ.t this 1 · for ·the r.eafon the.t the banks are not rr.etubersJ nor is the tern "Clearing Mcmber 11 authorized by the Act. Any reference v'Thich rr.ay· be nad.e by a non-member bank to Hs account with the Federal Reserve bank shoull set forth the relatiun which actually ex.istst an.i if non-mettber depositing banks .vish to call attention to the fact that they have accounts with the Federal Resorvo banks for exchange and collection purposes 1 they rr4y use this expression: "Non-member Depositor of the Fede:.Mal Reserve Da.nk 1 thrqugh which checks on this bank are co~lectible." This is a brief statement of fact a.nd can not cor.vey any rr.isleading impression as to the bank's relation with the FedGral Reserve bank. This is a fonr.a.l ruling which supersedes all infonral I'ulings previously n:a.de on this subject. Very truly yours,
@FedFRASER