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' ''itX-CiiPitUO Mlllf-
WllLIAif G. MCADOO
nntrrAIIY OF THit TRI.UUIIY
CIWaAN
JOliN SKELTON WILLIAMS
FEDERAL RESERVE BOARD
COIII't_._D OF THI CURRINCl
J. A. 8RODIR1Ck, SKRITUl
L. c.•ADELSOM. Ass! ITANT -AllY
W. T. CHAPMAN, AIIIIITANT
W. M. IMLAY, FISCAL ACINT
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smnrtm
WASHINGTON
ADDRDa REPLY TO
FEDERAL RESERVE 110AitD,
October 2,1918 ..
, X•l237
SUBJECT: PAYMENT BY' FEDERAL RESERVE BANKS OF EXPENSE
INCIDENT TO TRANSFE~S OF CURRENCY TO AND
FROM FEDERAL ~VE BANKS.
Dear Sir:
Confirming telegtam of e"<~en da.t$ 1 t beg to advise
that the Board has autbot-ized the inaug\itation at the earliest
possible date of the plan, outlined in its circular letter
X-1216, under date of September 20th, with modifitations as
hereinafter indicated:
MEMBER BANKS:
{*)
(a) Payment of all postage, e~pressa~~
insurance, etc., incident to shipuents
of currency to and from member banks~
Pay.ment of charges on all te~egt~•
received from' or sent to member banks ,in
connection with currency, exchange transfers,
(b)
and deposit transactions.
NONMEMBER BANKS MAINTAINING CLEARING ACCOUNTS
RESERVE BANKS;
~¥ITH
FEDERAL
(a) Payment Cff postage, insurance and ex•
pre asage in connection with shiprants of
currency in settlement of clearing balances~
NONMEMBER BANKS ON p.AJt>'tlST:
All postage in connection with remitt~ceo
made to cover collections· ( to be, provited
(a)
for by enclosing return stamped envelope).
(b) All expenses incident to shipnents of
currency to Federal Rosene banks. in payment of items.sent for collection.
(*) Currency does not include
silver or subsidiary coin.
X-1237
- 2-
You will notice tha.t ~ragraph (a) under 1MEW3ER BA~l(S 1 2
has been revised so as to omit, for the present at least, the payment of postage, exp-ressage, insurance, etc. incident to shipments
to and fro.m member banks of •collateral notes and bills for rediscount, and securities deposited as collateral to rr~mber bank promissory notes and notes rediscounted'· Paragraph (b) has been revised
so as to omit the payrr~nt of charges on all telegrams in connection
with 1 loans'.
It is believed that payment by the reserve banks of these
will have the effect of more nearly equalizing the advantages
offered member banks, and will also be helpful in our campaign for
State member banks. The Board, of course, in adopting this plan,
reserves the right to modify or rescind it at any time upon reasonable notice,. should it be deemed advisable.
ex~enses
You were also advised in the telegram above referred to
that the Federal Reserve Board appreciates the excellent results
already attained by the Federal reserve banks in gathering gold
from the banks in their respective districts and strongly urges
that efforts be continued to the end that all available gold be
mobilized in the Federal reserve banks. The Board authorizes you
to absorb the abrasion and to pay all expenses incident to the
shipn:ent of gold to your bank and shipment of Federal reserve notes
in exchange therefor.
Kindly acknowledge receipt of this letter and oblige,
Very truly your.s 1
Secretary.
The Governor,
Federal Reserve Bank 1
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@FedFRASER