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1254 FEDERAL RESERVE BOARD WASHINGTON December 16, 1920s t .1653. SUBJECT: Reports of Paper pledged with Federal Reserve Agents- Dear S i r : With a visw t o decreasing the am-ont of work and of s i m p l i f y in™ r e c o r d s kept "by the Federal Reserve Banks and Agents in conn e c t i o n w i t h the pledge, s u b s t i t u t i o n , and r e l e a s e of e l i g i b l e paper a s c o l l a t e r a l s e c u r i t y for outstanding Federal Reserve n o t e s , you are authorized, be-inning with January 1, I92I, to d i s c o n t i n u e f u r n i s h i n g the Board with r e p o r t s on f o r a 3D-22, "Schedule of c o l l a t e r a l accepted by Agent as s e c u r i t y f o r issuance of Federal Reserve notes"* E f f e c t i v e a s of the same d a t e , paper which i s pledged w i t h the Federal Reserve Agent immediately a f t e r discount or purchase should be reported on schedules ED-4 and BD-7 separate frcm those covering paper which i s not so pledged, and a statement, signed by the Federal Reserve Agent or h i s a s s i s t a n t , shculd be t y p e w r i t t e n or stamped on su6h schedules reading s u b s t a n t i a l l y as follows: "Receipt i s acknowledged of $ of e l i g i b l e paper a s reported above a g a i n s t items numbered to i n c l u s i v e , t o be held as c o l l a t e r a l 1 s1 e c u r i t y a g a i n s t outstanding Federal Reserve notes. Federal Reserve Agent. 1255 - 2 - St.1653- In case e l i g i b l e paper i s pledged with the Federal Reserve Agent other than a t time of discount or purchase a separate schedule, BD-U or ED-7 as the case may he, covering such pledge should "be submitted t o the Board. I t w i l l be s u f f i c i e n t i f these schedules show the number and amount of each item and the date i t was discounted or purchased by the Federal Reserve Bank. The schedules should bear a c r o s s the top i n c a p i t a l l e t t e r s a s t a t e ment t o t h e following e f f e c t : "Schedule covering e l i g i b l e paper pledged with Federal Reserve Agent subsequent t o date of discount or purchase. 1 1 In a u t h o r i z i n g the discontinuance of r e p o r t s on schedules BB-22, the Board d e s i r e s t o s t a t e t h a t the r e c o r d s of both the Bank and Agent must continue t o be kept i n such manner t h a t there w i l l be no d i f f i c u l t y at any time i n l e t e m i t t i n g e x a c t l y which b i l l s and n o t e s are under pledge with the Federal Reserve Agent. Very t r u l y yours, Governor. (Copy sent t o each Federal Reserve Agent)
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