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W. P. G. HARDING, GOVERNOR ALBERT STRAUSS. VICE GOVERNOR ADOLPH C. MILLER CHARLES S. HAMLIN EX-OFFICIO MEMBERS CARTER GLASS SECRETARY OF THE TREASURY CHAIRMAN JOHN SKELTON WILLIAMS COMPTROLLER OF THE CURRENCY FEDERAL RESERVE BOARD J. A. BRODERICK, SECRETARY W. T. CHAPMAN. ASSISTANT SECRETARY W. M. IMLAY. FISCAL AGENT ADDRESS REPLY TO WASHINGTON FEDERAL RESERVE BOARD July 1?, 1919. . st/kgg. SUBJECT: V e r i f i c a t i o n of s t a t i s t i c s appearing •in the Federal R e s e r v e Bulletins« Dear S i r : With t h e v i e w of i n s u r i n g a c c u r a c y i n t h e f i g u r e s p u b l i s n e d . i n t h e Board* s an n u al R e p o r t s and of a v o i d i n g any i n c o n s i s t e n c i e s "between f i g u r e s shown t h e r e i n and i n t h e r e p o r t s of t h e F e d e r a l R e s e r v e A g e n t s , our S t a t i s t i c a l D i v i s i o n h a s been c a r e f u l l y comp a r i n g t h e f i g u r e s g i v e n i n t h o s e r e p o r t s "before sending t o t h e p r i n t e r t h e m a n u s c r i p t of t h e s t a t i s t i c a l p o r t i o n 01 t h e -doard 1 s r e p o r t . Owing to t h e l a r g e r volume of "business h a n d l e d d u r i n g 1318* and t o c e r t a i n c h a n g e s i n t h d method of p r e s e n t i n g s t a t i s t i c s , i t was f o u n d v e r y d i f f i c u l t t o r e c o n c i l e so Die of t h e f i g u r e s cont a i n e d i n t h e Agents 1 I 9 I 8 r e p o r t s v/ith t h o s e c o m p i l e d "by o u r S t a t i s t i c a l D i v i s i o n - T h i s c a u s e d c o n s i d e r a b l e c o r r e s p o n d e n c e and d e l a y e d t h e f i n a l p r i n t i n g of t h e r e p o r t , I t i s t h e B o a r d ' s d e s i r e t o have i t s a n n u a l r e p o r t a p p e a r a t t h e e a r l i e s t p r a c t i c a b l e d a t e a f t e r J a n u a r y 1 s t of each y e a r , and w i t h t h e v i e w of a v o i d i n g t h e n e c e s s i t y of h a v i n g t o r e c o n c i l e f i g u r e s c o v e r i n g 12 months 1 o p e r a t i o n s a f t e r t h e c l o s e of t h e y e a r , i t i s r e q u e s t e d t h a t your a c c o u n t i n g and s t a t i s t i c a l d e p a r t m e n t s b e i n s t r u c t e d t o c h e c k a l l f i g u r e s a p p e a r i n g i n t h e monthly F e d e r a l R e s e r v e B u l l e t i n s , so f a r a s t h e y r e l a t e to s t a t i s t i c a l m a t t e r which i s b e i n g c u r r e n t l y c o m p i l e d by your b a n k o r which may b e comp i l e d f o r i n s e r t i o n i n y o u r I 9 1 9 a n n u a l r e p o r t * I n c a s e any i n a c c u r a c i e s a r e f o u n d i n t h e f i g u r e s shown i n t h e F e d e r a l R e s e r v e B u l l e t i n s , t h e y s h o u l d b e c a l l e d i m m e d i a t e l y t o t h e a t t e n t i o n of our S t a t i s t i c a l D i v i s i o n i n o r d e r t h a t i t s r e c o r d s may be c o r r e c t e d a n d t h e n e c e s s a r y changes made i n t h e c u m u l a t i v e f i g u r e s which a r e c a r r i e d f o r w a r d f r o m month t o month * L i k e w i s e , any e r r o r s i n f i g u r e s p u b l i s h e d i n t h e B u l l e t i n s , which a r e d i s c o v e r e d b y our S t a t i s t i c a l D i v i s i o n , w i l l b e b r o u g h t t o your a t t e n t i o n p r o m p t l y , i n o r d e r t h a t p e r m a n e n t c o p i e s of t h e B u l l e t i n on f i l e a t your bank may b e c o r r e c t e d to a g r e e w i t h t h e p e r m a n e n t r e c o r d s of t h e Board* I f t h e above s u g g e s t i o n s a r e c a r e f u l l y c a r r i e d o u t , f i g u r e s f o r t h e f i r s t e l e v e n months of t h e y e a r , a s shown i n y o u r 193-9 a n n u a l r e p o r t * s h o u l d be i n e x a c t agreement w i t h t h o s e c o m p i l e d b y t h e Board f o r t h a t p e r i o d * T h i s w i l l l e a v e o n l y f i g u r e s f o r t h e month of December to b e r e c o n c i l e d a t t h e c l o s e of t h e y e a r when the. a n n u a l f i g u r e s a r e c o m p i l e d b y t h e Board# st.U85 1033 ' CLASSIFICATION OF WAR PAPER - W i t h u n i f o r m c l a s s i f i c a t i o n of wax p a p e r , i t m e t h o d of c l a s s i f i c a t i o n a d o p t e d by o u r w h i c h i s o u t l i n e d below, be f o l l o w e d by t n e v i e w of s e c u r i n g i s r e q u e s t e d t h a t the s t a t i s t i c a l Division, your bank; I n c l a s s i f y i n g war p a p e r t h e s t a t i s t i c a l D i v i s i o n i n c l u d e s o n l y c o l l a t e r a l n o t e s o r o t h e r d i s c o u n t s f u l l y s e c u r e d by war o b l i g a t i o n s a n d d i s c o u n t e d a t r a t e s a p p r o v e d f o r war l o a n p a p e r * p a p e r h a v i n g a m a t u r i t y i n e x c e s s of gO d a y s a t t h e t i m e of d i s c o u n t w i t h t h e F e d e r a l R e s e r v e bank, ( a g r i c u l t u r a l a n d l i v e s t o c k p a p p r ) , even when f u l l y s e c u r e d b y war o b l i g a t i o n s , i s n o t i n c l u d e d w i t h war p a p e r , n e i t h e r do our figures i n c l u d e p a p e r o n l y p a r t l y s e c u r e d by war o b l i g a t i o n s and d i s c o u n t e d a t r e g u l a r comm e r c i a l r a t e s , even t h o u g h t h e r a t e of d i s c o u n t may b e t h e same a s t h a t c h a r g e d on war p a p e r * Where c u s t o m e r s 1 p a p e r which i s f u l l y s e c u r e d by government war o b l i g a t i o n s i s u s e d a s s e c u r i t y f o r member b a n k s ' c o l l a t e r a l n o t e s , s u c h c o l l a t e r a l n o t e s a r e c l a s s e d a s war p a p e r * On t h e o t h e r hand, where a p o r t i o n o f t h e c u s t o m e r s ' p a p e r u s e d a s s e c u r i t y f o r c o l l a t e r a l n o t e s i s n o t f u l l y s u p p o r t e d by Government war o b l i g a t i o n s , t h e c o l l a t e r a l n o t e s a r e n o t c l a s s e d a s war p a p e r . TOTAL INVESTMENT OPERATIONS - p a r t i c u l a r a t t e n t i o n i s c a l l e d t o t n e f a c t t n a t f i g u r e s shown i n t h e t a b l e e n t i t l e d " T o t a l i n v e s t m e n t o p e r a t i o n s of e a c h F e d e r a l R e s e r v e Bank" (page 590 the J u n e B u l l e t i n ) , r e p r e s e n t t h e i n v e s t m e n t s of e a c h F e d e r a l R e s e r v e b a n k , e x c l u s i v e of p a p e r d i s c o u n t e d f o r o r p u r c h a s e d f r o m a n o t h e r F e d e r a l R e s e r v e bank* T a b l e s showing r e d i s c o u n t s a n d s a l e s of d i s c o u n t e d and p u r c h a s e d p a p e r between pedera.1 Reserve b a n k s a r e p u b l i s h e d q u a r t e r l y , i n t h e F e b r u a r y , Hey, A u g u s t and November B u l l e t i n s - i t w o u l d seem d e s i r a b l e fx e a c h R e s e r v e bank t o s e t u p i n s e p a r a t e columns i n t h e i r t a b l e s of i n v a s t ^ e n t o p e r a t i o n s f i g u r e s showing t h e amounts of p a p e r d i s c o u n t e d f o x o r p u r c h a s e d f r o a o t h e r F e d e r a l R e s e r v e b a n k s . T h i s w i l l b r i n g o u t more c l e a r l y t h e amount o f a c c o m o d a t i o n e x t e n d e d t o member b a n k s i n your d i s t r i c t , a s w e l l a s your open m a r k e t p u r e .oases of a c c e p t a n c e s . F i g u r e s r e p r e s e n t i n g p u r c h a s e s of u . S . s e c u r i t i e s s h o u l d i n c l u d e o n l y s u c h s e c u r i t i e s a s become a p a r t of t h e b a n k ' s e a r n i n g assets, s e c u r i t i e s p u r c h a s e d f o r a l l o t m e n t t o s u b s c r i b e r s e n d imm e d i a t e l y d e l i v e r e d s h o u l d be e x c l u d e d a n d s h o u l d n o t be l i s t e d on S c h e d u l e s 8 - 2 from w h i c h t h e B o a r d ' s s t a t i s t i c s a r e c o m p i l e d . I t w i l l b e a p p r e c i a t e d i f you w i l l c a l l o u r a t t e n t i o n , a t your e a r l i e s t c o n v e n i e n c e , t o any n e c e s s a r y c o r r e c t i o n s i n t h e figures r e l a t i n g t o t h e i n v e s t m e n t o p e r a t i o n s of y o u r bank, a s p u b l i s h e d i n t h e March, A p r i l , May, June e n d J u l y B u l l e t i n s - http://fraser.stlouisfed.org/ (Copy of Federal Reserve Bank of St. Louis Yours v e r y t r u l y , Secretary, ; t h i s l e t t e r sent to a l l chairmen.) ** •
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