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W . P. G. HARDING, GOVERNOR P A U L M. WARBURG, V ic e G o v e r n o r FREDERIC A. DELANO ADOLPH C. M ILLER CHARLES S. H A M LIlf Ex -O ffic io Members W ILLIAM G. McADOO ^609. SECRETARY OF THE TREASURY C h a ir m a n JOHN SKELTON W ILLIAM S Co m p t r o l l e r o f t h e c u r r e n c y FEDERAL RESERVE BOARD W A S H IN G T O N H. PARKER W IL L IS , SECRETARY SHERMAN P . ALLE N , ASST. SECRETARY AND FISCAL AGENT AD D R E SS R E P LY TO FEDERAL RESERVE BOARD April 11, 1916. Dear Sir: The Federal Reserve Board has had under discussion with the Treasury Department, particularly with Assistant Secretary Malburn, suggestions which have come to it at various times that National hanks he permitted to make deposits to the credit of the Five Per cent Fund in the hands of the Treasurer of the United States at Washington through their own Federal Reserve Banks, ana that, if this can he arranged, it will enable Federal Re serve Banks to render an important and desirable service to their members* The rule heretofore has required National hanks to get drafts on New York, hut it is now suggested that that instead of requiring this, the hanks may properly he per mitted to request their own Federal Reserve Banks to remit to the Treasurer of the United States for their credit in the Five Per cent Redemption Fund. This would then he handled (in denominations of $10,000) and at the convenience of the Federal Reserve Bank of the District, through the Gold Redemp tion Fund at Washington. In carrying out this plan it is proposed that the Federal Reserve Bank of New York shall have the privilege of 609- - 2 - paying for its member banks directly to the Assistant Treasurer of the United States in that city, and, furthermore, it is the idea that nothing in this plan shall prevent National banks from making remittances direct to the Treasurer of the United States or to the Assistant Treasurer at Hew York in the cld way if they do not choose to avail themselves of the method herein proposed. As this is e. natter in connection with the operation of the Banks which nay well bo considered cy the Governors at their forthcoming conference in Washington, it is now submitted to you with the request that you take it up at that tine and offer such suggestions or conclusions as you may have arrived at. Yours very truly. Vice Governor
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