The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BOARD WASHINGTON X-339S M a y 8, 1 9 2 2 . SUBJECT: T r a n s f e r s to F i v e P e r C e n t R e d e m p t i o n Fund Accounts of National Ban)s. Dear Sir: Practically all deposits for credit of national banks in the Five Per Cent Redemption F u n d against n a t i o n a l b a n k note circulation are made through the Federal Reserve Banks and Branches. T h e Treasury Department has a d v i s e d the B o a r d that it is d e s i r a b l e that f u n d s d e p o s i t e d b y n a t i o n a l b a n k s w i t h Federal Reserve Banks and Branches for credit in the national banks 1 Five Per Cent Redemption Fund accounts should be covered into the F i v e Per Cent R e d e m p t i o n Fund against national b a n k note c i r c u l a t i o n o n the d a y t h e y a r e r e c e i v e d b y t h e F e d e r a l R e s e r v e Banks and Branches. U n d e r t h e p r e s e n t p r o c e d u r e t h i s is i m p o s s i ble and a n e w procedure has, therefore, b e e n suggested a n d h a s the a p p r o v a l o f the T r e a s u r y D e p a r t m e n t a n d t h e F e d e r a l R e s e r v e Board. C o m m e n c i n g w i t h J u n e 1, 1 9 2 2 , e a c h F e d e r a l R e s e r v e B a n k a n d B r a n c h w i l l w i r e d i r e c t to the T r e a s u r e r o f t h e U n i t e d S t a t e s , National : " B a n k R e d e m p t i o n A g e n c y , W a s h i n g t o n , a t t h e c l o s e o f b u s i n e s s e a c h d a y t h e t o t a l a m o u n t d e p o s i t e d w i t h it b y n a t i o n a l b a n k s f o r t r a n s f e r to t h e T r e a s u r e r o f t h e U n i t e d S t a t e s f o r credit i n t h e i r Five Per Cent R e d e m p t i o n F u n d a c c o u n t s and in the same t e l e g r a m w i l l a u t h o r i z e t h e T r e a s u r e r o f t h e U n i t e d S t a t e s to c h a r g e t h e g i v e n t o t a l to t h e F e d e r a l R e s e r v e B a n k ' s ( h e a d o f f i c e ) F i v e P e r C e n t R e demption Fund account against Federal Reserve notes and request him to c o v e r a l i k e a m o u n t i n t o t h e F i v e P e r C e n t R e d e m p t i o n F u n d . a g a i n s t national bank notes. The necessary authority to authorize the T r e a s u r e r of the U n i t e d States to charge the parent b a n k ' s F i v e Per Cent R e d e m p t i o n F u n d a c c o u n t a g a i n s t F e d e r a l R e s e r v e n o t e s s h o u l d b e given to all b r a n c h banks. Each Federal Reserve Bank and Branch w i l l m a i l d i r e c t to t h e T r e a s u r e r o f t h e U n i t e d S t a t e s , N a t i o n a l Bank Redemption Agency,daily a schedule giving the names of national banks w h i c h h a v e during the day deposited funds to b e transferred to the T r e a s u r e r of the U n i t e d States for credit in their F i v e P e r Cent R e d e m p t i o n F u n d accounts and the amount so d e p o s i t e d b y each national bank-named should also be indicated. 2 - X-3398 The following code word will be used by the Federal Reserve B a n k s a n d B r a n c h e s in their t e l e g r a m s to the T r e a s u r e r of the U n i t e d States; D U R B A R Charge our (head o f f i c e ) Five Per Cent R e d e m p t i o n Fund account against Federal Reserve notes a n d cover like a m o u n t into Five Per Cent R e d e m p t i o n F u n d against national bank notes. Upon receipt of schedule mailed y o u today please credit Five Per Cent R e d e m p t i o n Fund a c c o u n t s of b a n k s n a m e d in a m o u n t s indicated. U p o n receipt b y the Treasurer of the United States of the a b o v e t e l e g r a m f r o m a F e d e r a l R e s e r v e B a n k , or a B r a n c h or B r a n c h e s thereof, the Treasurer will t e l e g r a p h the F e d e r a l Reserve B a n k as follows, u s i n g code w o r d : D U S K Y Have today charged your Five Per Cent R e d e m p t i o n Fund account against Federal Reserve notes in the following a m o u n t s , in a c c o r d a n c e w i t h t e l e g r a p h i c r e q u e s t s of this date made by y o u r b a n k and brandies: (Name of city in w h i c h h e a d o f f i c e is l o c a t e d ) $ j (Name of city in w h i c h b r a n c h is l o c a t e d ) 3 Total amount charged has b e e n covered into Five Per Cent R e d e m p t i o n Fund account against national bank notes. Upon receipt of schedules national banks named therein will be given credit. Very truly yours, G o v e r n o r . TO GOVERNORS OF ALL FEDERAL RESERVE BAFKS.
@FedFRASER