The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BOARD X-3801. August 2, 1923. WASHINGTON SUBJECT: 1:""' CURRENCY ST.AND.AB.D. Dea.r Sir; It ha.s been reported by the Boa.rdts Committee on Economy' and Efficiency tha.t in spite of the efforts of the Federal reserve banks and the Treasury- Depa.rtll'ient to establish a. uniform stanqa.rd of fitness of currency for circula.tion, there exists a.mong the Federa.l reserve ba.nk:s a. wide variation in the standard of fitness, as indica.ted by the fact that some Federa.l reserV-e banks have a.dvised the commit tee that all Federal rese r;.,e notes returned to them by other Federal reserve banks a.re sorted to such a low standa.rd that a resort is necessary, and other Federa.l rese:Mte banks ha:ve a.dvised tha.t returned notes are sorted. to a. standard highet than their own. From time to tirr.e during the past year or two, the. Trea.sury Depal'tm3nt ha.s sent circular letters and telegrams to all Federal reserve banks complain- · ing of too high a. standard of fitness of currency notes received from the Federal reserve banks by the Treasury redemption a.genci es. Th.e following recommendation ha.s been made by the Econonzy- and Efficiency Co:rmni ttee and ha.s been approved by the Federal Reserve Board: That the redemption agencies of the Treasury Department carefully scrutinize a.ll currency redeJI!Ption receipts from the Federal reserve banks ~and after examining them' ca~l the attention of the Boa.rd to each and every redemption lot which in the opinion of the agencies ma.y contain too grea.t a percenta.ge of notes fit for further circula.tion; That a representative of the :Boa.rd be cha.rged with the duty of examining the redemption lots in question, n!eking compa.rison of those notes contained therein which a.re a.lleged to be fit for further circula.tion with notes conta.ined in a. standa.rd pa.cka.ge of fit notes ma.de up by the Trea.sury Depa.rtment and lodged in the Boa.rd 1 s office, a.nd tha.t on the ba.sis of the report of the Boa.rd's representa.tive, the ma.tter be taken up by the ;Boa.rd direct with the Federa.l reserve bank concerned .. T.he plan of procedure outlined in the committee's recornmenda.tion is now ·effective. · By order of the Federal Reserve :Board. Very ~ruly yours, Wm.. w. Roxton, Secreta.ry. TO GOVERNORS OF ;r... R. :SANKS... -~ ,.., , . ~-J
@FedFRASER