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FEDERAL RESERVE BOARD 533 WASHINGTON July 12, 1933 B-905 address official correspondence to the federal reserve board SUBJECT: Safekeeping of s e c u r i t i e s 'byFederal reserve banks Dear S i r : As questions have arisen regarding the extent and cost of service rendered "by Federal reserve "banks to member banks and others in the s a f e keeping of s e c u r i t i e s , the Board w i l l appreciate i t i f you w i l l submit the f o l l o w i n g information pertaining thereto as of July 31, 1933. t h i s date being s e l e c t e d w i t h a view to allowing ample time f o r the preparation of the desired data: 1. Number of member banks in d i s t r i c t f o r which s e c u r i t i e s are held in safekeeping, showing separately the number l o c a t e d i n each Federal reserve bank and branch c i t y and the number outside such c i t i e s . 2 . Amount of s e c u r i t i e s held in safekeeping f o r member banks, showing separately the amounts held f o r banks located in each Federal reserve bank and branch c i t y and for benks located outside such c i t i e s . 3 . Number of outstanding individual vault custody r e c e i p t s issued to member banks, or acknowledgements when no formal r e c e i p t s are issued, covering s e c u r i t i e s held in safekeeping, showing separately f i g u r e s f o r banks located in each Federal reserve bank and branch c i t y and f o r banks located outside such c i t i e s . Figures i n paragraphs 1, 2 and 3 should be e x c l u s i v e of s e c u r i t i e s held as c o l l a t e r a l to loans and to public d e p o s i t s . - 2 4. B-905 Statement of bank's p o l i c y with respect to acceptance of se- c u r i t i e s from member banks f o r safekeeping, with separate comment on such s e r v i c e , i f any, rendered member banks in Federal reserve bank and branch c i t i e s , and with p a r t i c u l a r reference to precautions taken to prevent the d e p o s i t , f o r safekeeping, of s e c u r i t i e s which are the property of customers I of member banks. 5. Copy of l a t e s t general c i r c u l a r furnished member banks covering the safekeeping of s e c u r i t i e s , and a l l supplements thereto. 6. Statement showing amount of s e c u r i t i e s held in safekeeping f o r others than member banks, including s e c u r i t i e s of member banks, i f any, held i n escrow to secure public d e p o s i t s , g i v i n g in each case name and address of party f o r whom held, amount held in each account and number of individual vault custody r e c e i p t s outstanding; and statement of p o l i c y with respect to acceptance of such s e c u r i t i e s f o r safekeeping. 7. Percentage increase i n current holdings of cash and s e c u r i t i e s (cubic contents, not d o l l a r value) that can be accommodated i n vaults at head o f f i c e and at each of your branches, i f any. In addition, the Board d e s i r e s an estimate of cost, prepared in accordance with the attached form, of the various operations performed in the S e c u r i t i e s f u n c t i o n at the head o f f i c e and at each branch, i f any, during 1932, and your opinion as to whether there has been any substantial change in such c o s t s since l a s t year. Very t r u l y yours, Chester Morrill, Secretary. TO GOVERNOR OE EACH FEDERAL RESERVE BAH*
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