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FEDERAL RESERVE BOARD WASHINGTON A D D R E S S OFFICIAL C O R R E S P O N D E N C E T O T H E FEDERAL R E S E R V E B O A R D X-7408 A p r i l 12, 1933. SUBJECT: Deposits of Federal Home Loan Bank. Dear S i r : There i s inclosed herewith, f o r your i n f o r m a t i o n and guidance, a copy of a l e t t e r which the Federal Reserve Board has addressed to the a s s i s t a n t Federal r e s e r v e agent a t the Federal Reserve Bank of Boston, a d v i s i n g t h a t d e p o s i t s made by a Federal Home Loan Bank i n a member "bank may p r o p e r l y be c l a s s i f i e d by the l a t t e r as amounts due to banks i n computing i t s r e s e r v e s and i n p r e p a r i n g i t s r e p o r t s of c o n d i t i o n . Very t r u l y yours, Chester M o r r i l l , Secretary. Inclosure. TO CHAIRMEN OF ALL F . R. BAMS. X-7408-a A p r i l 12, 1933. Mr. Charles F. Gettemy, A s s i s t a n t F e d e r a l Reserve Agent, Federal Reserve Bank of Boston, Boston, Massachusetts. Dear Mr. Gettemy: I r e g r e t t h a t , due to p r e s s u r e of other m a t t e r s , i t has not been p o s s i b l e f o r me to make an e a r l i e r r e p l y to your l e t t e r s of January 13 and March 30, 1933, i n q u i r i n g whether d e p o s i t s made i n a member bank by the Federal Home Loan Bank of Cambridge may be c l a s s i f i e d by t h e member bank as amounts due to banks i n computing i t s reserve. A Federal Home Loan Bank i s authorized by t h e Federal Home Loan Bank Act to r e c e i v e d e p o s i t s , not s u b j e c t to check, from i t s members and nonmember borrowers, and to make loans t o i t s members and nonmember borrowers under c e r t a i n p r e s c r i b e d conditions. Moreover, the law provides t h a t , when designated f o r t h a t purpose by the Secretary of the Treasury, i t s h a l l be a d e p o s i t a r y of p u b l i c money, and i t may be employed as a f i n a n c i a l agent of t h e Government. In the l a t t e r c a p a c i t i e s , i t must perform a l l such reasonable d u t i e s as may be r e q u i r e d of i t . tfpon c o n s i d e r a t i o n of t h i s m a t t e r , i t i s t h e opinion of t h e Federal Reserve Board t h a t a Federal Home Loan Bank may p r o p e r l y be considered a bank w i t h i n the meaning of t h e e i g h t h X-7408l i Mr. Charles ? . Gettemy -3- paragraph of s e c t i o n 19 of the Federal Reserve Act and t h a t dep o s i t s made by such an i n s t i t u t i o n i n a member hank may p r o p e r l y he c l a s s i f i e d hy t h e l a t t e r as amounts due to banks i n computing i t s r e s e r v e s and i n preparing i t s r e p o r t s of c o n d i t i o n . Very t r u l y yours, (Signed) Chester M o r r i l l , Secretary.
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