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137
FEDERAL RESERVE BOARD
WASHINGTON
ADDRESS OFFICIAL CORRESPONDENCE TO
THE FEDERAL RESERVE BOARD
X-9452
January 20, 1956.
Dear Sir:
Referring to previous correspondence with respect to whether
the Federal Reserve banks should continue to pay out new Federal Reserve notes of the 1928 series when notes of the 1954 series are
available and to the additional orders which have been placed for the
printing of notes of the 1954 series, there is inclosed one cop,y each
of a letter received from the Secretary of the Treasury dated December 15, 1935, the Boa.rd' s reply thereto, dated December 20, 1955, and
a letter from the Acting Secretary of the Treasury dated January 3,
1956, in which he states that he assumes the Board of Governors of
the Federal Reserve System and the Federal Reserve banks are issuing
the appropriate instructions with respect to the matter discussed in
the letter of December 13, 1955.
The Board wishes to cooperate with the Treasury Department in
this matter and therefore requests that you make no further issues of
new Federal Reserve notes of the 1928 series to your Federal Reserve
bank when you have on hand notes of the 1954 series available to meet
the requests for currency by the bank.
You are also requested to
submit promptly to the Board requisitions for a sufficient amount of
Federal Reserve notes of the 1954 series to build up your stock of
138
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X-9452
the various denominations of such notes to a point where you will
be able to meet probable requirements of your bank for new Federal
Reserve notes.
New Federal Reserve notes of the 1928 series now
held by you should be retained for the present for possible emergency use.
For your information in this connection there is attached
hereto a statement showing the stock of Federal Reserve notes of the
1934 series of each Federal Reserve bank now on hand at the Bureau
of Engraving and Printing and a supplemental statement showing the
amount of such notes by denominati6ns which are still dtie
ftbm the
Bureau of Engraving and Printing on orders placed during 1955.
You
have been advised in a separate communication of the orders placed
during January 1936 with the Bureau for printing Federal Reserve
notes of the 1934 series for the remainder of the current fiscal
year.
Very truly yours,
Chester Morrill,
Secretary.
Inclosures.
TO ALL FEDERAL RESERVE AGENTS
£Qf1
X-9452-a
The Secretary of the Treasury
Washington
December 13, 1935.
Dear Sirs:
It is the vie¥/ of the Treasury that the issuance of new
Federal Reserve notes of the 1928 series, ?thich bear on their face the
words
11
redeemable in gold 11 should be discontinued by the Federal Reserve
banks as soon as a sufficient stock of Federal Reserve notes of the 1934
series is available to meet current requirements of the respective banks.
Accordingly, I propose to instruct the Director of the Bureau of &1graving and Printing to cease the delivery of Federal Reserve notes of the
1928 series and to cease working on any of such notes that are now in
~he
process of completion.
These instructions would be issued to the Director of the
Bureau of Engraving and Printing on the assumption that for the present
(a)
Federal Reserve agents will not issue Federal Reserve
notes of the 1928 series to the Federal Reserve banks
when notes of the 1934 series are or can be made available for such banks;
(b)
The Board of Governors of the Federal Reserve System will
not c.sk for the shipment of Federal Reserve notes of the
1928 series from the Bureau of Engraving and Printing
when notes of the 1954 series are available or can be
made available to meet current requirements, and would
instruct the Federal Reeerve agents not to issue any Federal Reserve notes of the 1928 series to the Federal Reserve banks when notes of the 1954 series are available.
In view of the foregoing assumptions, involving action on be-
half of the Federal Reserve
bank~,
and of the fact that it is the banks
who are liable for the cost of printing and shipping Federal Reserve
140
X-9452-a
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notes, I feel that, prior to taking the contemplated action as above described, I should first receive the approval of the Federal Reserve banks.
I shall therefore very much a.ppreciate it if you will communicate with
the several banks and advise me whether it will be satisfactory for me to
instruct the Director of the Bureau of Engraving and Printing as proposed.
If the procedure herein contemplated is followed, I will submit to members of the e.ppropriate committees of Congress the question of
making, at its next session, an appropriation with which to defray
(a)
the cost of printin~: a stock of Federnl Reserve
notes of the 1934 series to re_plac0 those of the
1928 series held by or for the account of the
Federal Reserve agents and by the Bureau of Engraving and Printing;
(b)
the cost of shipping Federal Reserve notes of
the 1934 series to the Federal Reserve agents to
replace new Federal Reserve notes of t.he 1928
series held by them;
(c)
the cost of returning to Washington new Federal
Reserve notes of the 1928 series held by the
Federal Reserve agents; and
(d)
the cost of dt:stroying notes of the 1928 series
replaced by notes of th8 1954 series, if and when
such notes arc destroyed.
Very truly yours,
Signed.
H. MORGENTHAU, Jr.
Secretary of tho Treasury.
Board of Governors of the Federal Reserv8 System,
Washington, D.
c.
X-945;~-b
December 20, 1935.
Hon. H. Morgenthau, Jr.,
Secretary of the Treasury,
Washington, D. C.
Dear Mr. Morgenthau:
In compliance with the suggestion contained in your letter of
December 15 with respect to the discontinuance of the issuance
by the Fed-
eral Reserve banks of Federal Reserve notes of the 1928 series which bear
on their face the words "Redeemable in gold", as soon as a sufficient stock
of Federal Reserve notes of the 1934 series are available to meet current
requirements of the respective baaks, your letter was referred to the
Governors at their conference in Washington on Wednesday of this week.
After discussing this matter the GoYernors advised the Board that they
are in accord with the procedure set forth in your letter, with the understanding that, i f Congress does not at the forthcoming session authorize
the Treasury to reple.ce the stock of new Fedf;ral Reserve notes of the 1928
series with notec of the 1954 series, the question as to whether the Federal Reserve banks should resume paying out notes of the 1928 series, will
be given consideration promptly after the adjournment of Coneress.
It is understood, of course, that acquiescence of the Board and
the Federal Reserve banks at this
t:irnB
in the progrwn outlined in your let-
ter will not in e.ny way prejudice the right of tho Federal Reserve banks to
resume the payint; out of the existing stock of notes of tho 1928 seriGs in
case the Treasury Department is not authorized to replace this stock with
notes of the 1954 series.
Very truly yours,
(Signed)
fJI •
M.
.s.
Eccles.
s. Eccles,
Chairman.
141
142
c 0
p
y
X-9452-c
THE SECRETARY OF THE TREASURY
Washington
January 5, 1956
Dear Mr .. Eccles:
I have your letter of December 20, 1935 1 relating
to the discontinuance for the present of the issuance by the Federal Reserve banks of F'ederal Reserve notes of the 1928 Series.
The conditions referred to in your letter on which the Board and
the banks are taking such action are noted.
I have accordingly instructed the Director of the
Bureau of Engraving and Printing, for the present to cease the
delivery of Federal Reserve notes of the 1928 Series and to cea.se
working on any such notes now in the process of completion.
I assume that ·.the Federal Reserve Board and the Federal
Reserve banks are issuing the appropriate instructions with respect
to this matter.
Very truly yours,
(Signed)
T. J. COOLIDGE
Acting Secretary of the Treasury.
Hon. M. s. Eccles,
Chairman, Board of Governors,
of the Federal Reserve System.
X-9452-d
FEDERAL RESERVE NOTES OF THE 1954 SERIES ON HAND AT THE BUREAU OF ENGRAVING AND PRINTING
ON JAl'l"UARY 15, 1956
(In tnousands of dollars)
Ss
lOs
20s
50s
lOOs
SOOs
1000s
5000s
lO,OOOs
Totals
Boston
5,840
49,680
4,800
5,200
4,400
9,000
9,000
6,000
6,000
95,920
New York
9,220
95,280
14,48;)
9,400
15,200
12,900
21,600
15,000
12,000
203,080-
19,680
59,960
22,640
7,200
7,200
9,000
9,000
Cleveland
8,280
25,240
12,160
8,400
8,400
5,100
10,200
Richmond
6,660
31,560
55,600
6,000
6,000
Atlanta
14,460
17,640
9,600
6,6JO
6,000
Chicago
11,700
69,800
16,160
8,400
8,400
114,460
St. Louis
29,000
14,040
19,600
6,000
4,800
75,440
Minneapolis
16,020
17,8~0
7,840
4,200
2,400
48,540
Kansas City
7,080
16,120
10,400
6,000
6,000
45,600
Dallas
6,120
10,680
9,840
4,800
4,800
56,240
San Francisco
12,640
16,440
15,760
8,400
7,200
58,440
Total
144,700
404,120
176,880
78,600
78,800
Philadelphia
114,680
6,000
12,000
95,780
85,620
11,400
156,000
61,200
65,700
27,000
50,000
1,057 '500
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X-9452-e
1934 SERIES FEDERAL RESERVE NOTES BEirm PRINTED AS OF JANUARY 13, 1936, ON
ORDERS PLACED DUR!l'{l THE CALENDAR YEAR 1935
(In thousands of dollars)
5s
Boston
New York
Philadelphia
Cleveland
20s
45,080
4,800
50s
lOOs
Total
47,880
193,800
193,800
8,340
25,200
11,040
360
30,120
13,680
44,160
23,640
26,880
50,520
Richmond
Atlanta
lOs
9,720
Chicago
600
5,640
45,180
15,960
110,€40
600
111,240
16,260
12,.840
1,200
50,300
Minneapolis
2,580
1,320
1,200
5,700
Kansas City
420
15,560
St. Louis
Dallas
San Francisco
Total
37,680
600
13,980
120
960
4,680
720
464,640
58,080
1,080
600
1,200
6,600
4,800
566,400
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