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FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO T H E FEDERAL RESERVE BOARD June 17, 1 9 2 6 . St.1+988. SUBJECT: Bank F a i l u r e s . Dear S i r : The C o m p t r o l l e r of t h e C u r r e n c y h a s k i n d l y c o n s e n t e d t o supply t h e Board i n t h e f u t u r e w i t h i n f o r m a t i o n r e g a r d i n g the c a u s e s of f a i l u r e of N a t i o n a l b a n k s , and a c c o r d i n g l y i t w i l l b e u n n e c e s s a r y h e r e a f t e r t o o b t a i n any i n f o r m a t i o n r e g a r d i n g t h e c a u s e s of f a i l u r e s f r o m t h e r e c e i v e r s of N a t i o n a l b a n k s . Such i n f o r m a t i o n a s y o u h a v e r e a d i l y a v a i l a b l e s h o u l d c o n t i n u e t o b e r e p o r t e d on form X-4401. I n s u b m i t t i n g r e p o r t s on t h i s f o r m r e g a r d i n g f a i l u r e s of s t a t e b a n k and t r u s t company members and of non-member b a n k s , i t i s r e q u e s t e d t h a t s p e c i a l c a r e be e x e r c i s e d i n d e s i g n a t i n g t h e c a u s e s of f a i l u r e , a l s o t h a t s u c h a d d i t i o n a l i n f o r m a t i o n b e a r i n g on t h e c a u s e of t h e f a i l u r e a s y o u may h a v e a v a i l a b l e be shown i n t h e column m a r k e d " S u p p l e m e n t a r y c o m m e n t s . " I n a number of i n s t a n c e s t h e B o a r d h a s f o u n d i t d i f f i c u l t t o d e t e r m i n e whether a bank r e p o r t e d by t e l e g r a m # s h a v i n g c l o s e d should be c l a s s e d a s a bank f a i l u r e or merely a s a bank g o i n g i n t o v o l u n t a r y l i q u i d a t i o n . Accordingly i t i s r e q u e s t e d t h a t i n the f u t u r e t h e B o a r d b e g i v e n t e l e g r a p h i c a d v i c e of t h e c l o s i n g of o n l y s u c h b a n k s a s h a v e b e e n c l o s e d t o d e p o s i t o r s by s u p e r v i s o r y b a n k i n g a u t h o r i t i e s or b y the b a n k ' s d i r e c t o r s b e c a u s e of f i n a n c i a l d i f f i culties. I n c a s e t h e r e i s any d o u b t , however, a s t o whether a bank h a s b e e n c l o s e d on a c c o u n t of f i n a n c i a l d i f f i c u l t i e s , and s h o u l d t h e r e f o r e b e c l a s s e d a s a b a n k f a i l u r e , o r h a s gone i n t o l i q u i d a t i o n f o r o t h e r r e a s o n s , a d v i c e s h o u l d b e w i r e d of t h e c l o s i n g t o g e t h e r w i t h such p a r t i c u l a r s as a r e a v a i l a b l e . Very t r u l y y o u r s , W a l t e r L. E d d y , Secretary. LETTER TO ALL FEDERAL RESERVE AGENTS *
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