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',_·
FEDERAL RESERVE BOARD
WASHINGTON
X-3472
July 101 1922.
SUBJECT:
Reimbursement of Certain Specified
Fiscal Agency Expenses.
Dear Sir:
Referring
X-3468, there
t(')
13oard 1 s letter of July 7th,
is enclosed herewith for your informa-
tion copies of correspondence between the Under Secretary
of the Treasury md the Governor of one of th.e Federal
Reserve Banks, relating to the reimbursement of certain
fiscal agency expenses therein specified.
Very truly yoursr
G o v e r n o r.
(Enclosures}
TO GOVERNORS OF .ALL F. R. BANKS
COPIES TO F. R. AGENTS
cOPY
X-3472a
July 7, 1922.
My dear Governor:
I received the letter cf June 14, 1922 ------- regarding
reimbursement for fiscal agency expenses, and have delayed reply
pending further consideration of the whole matter with the Federal
Reserve
~oard.
To some extent at least the situation is now covered
by my letter of July
5, 1922, to Governor Harding, a copy of Which is
enclosed for your information.
On
the specific questions presented in the letter from your
bank, it is clear that even under the plan outlined in the letter of
July 5th, the expenses of handling accounts with special depositaries,
in connection with the sale of new securities, will be reimbursed
upon application as an expehse of new issues.
Expenses involved in
the receipt and redemption of Victory 4~% notes in payment of
allotted subscriptions to Treasury notes are likewise held to be
expenses of new issues and properly reimbursable.
redemption of Victory
3i% notes
Expenses of the
will not, however, be an item for
the fiscal year beginning July 1, 1922, though expenses incurred
in this connection during the fiscal year 1922 will be reimbursed
as previously stated.
4i• s
Expenses related to the purch.::.se of Victory
this year are likely to be small in amount and the Treasury
regards them also as non-reimbursable, there being now but little
connection between them and new issues of notes.
Very truly yours,
(Signed) S. P. Gilbert, Jr.,
L
Under Secretary.
,
..
COPY
X-3472'b
Q;'_\.~
"-"' ·~. ' ",•, -
June 14, 1922.
Dear Mr. Gilbert:
~oard
We are in receipt of a letter from the Federal Reserve
(X·3432), dated June 8, 1922, quoting from your letter
received on that day on the m.::t.tter of 11 Claims for Fiscal Agency
:Reimbursements". lt is noted that i 1fiscal agency expenses for
which reimbursement may be claimed • . • will not include expenses incident to the paying of Government warrants or cheCks
or interest coupons or the redemption of matured securities for
the account of the ~reasurer of the United States, nor will it
include any expenses ~rising in connection with the handling of
depesi tary accounts ... ,. .."
May we inquire if this letter reverses the ruling of
the Department embodied in your telegr~ of MarCh 16, 1922,
wherein
(1) the redemption of Victory 3i% Motes,
(2) the purchase of Vlctory 4i5b Notes, and
{3) the receipt and redemption of Victory 4!%
Notes in payment of allotted subscriptions
to Treasury Notes
are a part of the operations of Treasury Notes and expenses are
properly chargeable to the appropriation "Expenses of Loans, Act
September 24, 1917, as Amended and Extended, 11 J.nd that reimbursement for euch expenses 'Nill be rrnde upon applic::ttion in regular
course?
We also wish to make in~ui*y as to the exclusion of any
expenses arising in connection with the handling of depositary
accounts, if such term covers War Loan Accounts, which accounts
arise now only thro~ the s8le of Certificates of Indebtedness
or Treasury Notes and would seem to be properly reimbursable as
a part of the cost of operation in connection with the floating
of these issues.
Yours truly,
Governor.
Honorables. P. Gilbert, Jr.,
Under Secretary of the Treasury,
Washington, D. c.
@FedFRASER