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.. FEDERAL RESERVE BOARD X-4688 WASHINGTON ADDRESS OFFICIAL. CORRESPONDENCE TO THE FEDERAL. RESERVE BOARD October 12, 1926. SUBJECT: TOPIC FOR GOVFJlJ.~ORS 1 CONFEREJ:T CE. Dear Sir: The question of ado,ting regulations covering the rediscount of notes secured by adjusted service certificates under the provisions of Section 502 of the World War Adjusted Compensation Act, which was on the program for the last conference of Governors, has also been placed upon the program for the forthcoming conference. For your information in this connection, there are enclosed herewith a copy of th~ Board's letter of March 13, 1926, (X-4561) suggesting ·this topic for the last conference, and also a copy of a letter received from the Director of the United States Veterans' ]".ll'oau on this su-oject, together with a copy of the Board's reply thereto. Very truly yours, Walter L. Eddy, Secretary. (Enclo3uros) To Governors of all F.R.Banks. j_fj5 c 0 p y X-4688-a August 3, 1926. Honorable Frank T. Hinec, ·Director, United States Veterans 1 Bureau, Washington, D.C. My dear Mr. Hines: The ]oard has considered further your letter of July 14th requesting its advice as to the best method of advising banks throughout the country of the provisions of the World War Adjusted Compensation Act and also requesting the advice of the Board as to whether or not it would be feasible to prescribe a standard form of promisaory note to be used by banks in making loans on adjusted service certificates. Before advising you on these questions the Board desires to have the suggestions of the Governors of the Federal Reserve Banks with reference thereto. It will, th&reiore, present your questions to the Governors of the Federal Reserve Banks at their next conference which will be held in Washington this JJ'all. It is noted that no loans can be made on adjusted service certificates before January 1, 1927, and it is believed sufficient time will remain after the.Conference of Governors of Federal Reserve Banks to advise banks throughout the country of the provisions of the Adjusted Compensation Act before Ja~uary 1, 1927. Very truly yours, (signed) D. :a. Crissinger · D. R. Crissinger, Governor. c ~ p r'6 -1i _Lot) . y -:x:~4688-b - UNITED STATES "I?'ETI:RMTS :BUREAU WASIENGTON July 14, 1926. Honorable D. R. Crissinge~, Governor, Federal R3se~ve Board, Treasury Department Building, Washington, D.C. My dear Mr. Crissinger: Under the provisions of the World Wa:r Adjusted Co!TI!'ensation Act (Public No. 120 - 68th Congz·ess) approximately 2,400,000 adjusted service certificates with a fc..ce value of approximately $2,500,000,000 have been issued, effective January l, 1925. Loans may be made on and after January 1, 1927 I to the holders of such certificateo by banks as provided by Title V of the Act. The adjusted service certificate co~tains a reprint of Section 502 of Title V1 which provides autho.rit~· for the gr z.nting of loans by banks and for redemption of such loans by the VeterarHl Bureau in the event of non-pe,yment by the veteran. The certificate alGo contains a table for determining the loan value of the certificate. It is dedrable that ba.'1.ks makin5 such loans be fully advised as to the requir~men ts of the law before JGnua.ry 1, 1927, and it is thought that pos.;;ibly a strw.d2Xd form of promissory note might be devised that could be recom;nended for use by the member banks of the Federal Reserve System and others. Your advice in tho premises, especially as to the best method of advising the banks and as to whether or not a stand,qrd form of promissory note isfeasible, will be greatly appreciated. For your convenience a copy of the World War Adjusted Compensation Act and a specimen of the adjusted service certificate are inclosed. Very truly yours, (Signed) Fran.J;. T. Hines FRANK T. ''HINES, Director. Incls.
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