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EX-OFFICIO MEMBERS W. P. G. HARDING. GOVERNOR - - - - , VICE GOVERNOR WILLIAM G. McADOO , , ,..... ADOLPH C. MILLER CHARLES 5. HAMLIN SECRETARY OF THE TREASURY CHAIRMAN - - --__ JOHN SKELTON WILLIAMS FEDERAL RESERVE BOARD COMPTROLLER OF THE CURRENCY WASHINGTON ADDRESS REPLY TO FEDERAL RESERVE BOARD October 21, 1918 SUBJECT: Weeklr report of gold receipts and disbursements, form X-1053 · Dear Sir: Doubts ha\~ng arisen at sane. of th~ Federal Reserv~ _ banks regarding p~oper methods of reporting e;old ·'iransactions o~: Form x~.l053, the following explanations as to the charac ... ter of transactions which should be r.aported against .:;ach ... item are gi~en with the view of insuring corrGct and unifonn reports frOm all banks: .·.. RECE·IPTS ' 0 Itetn. oARs,· 11All debits iri Gold ·Settl~Gnt ·Fund account .·other Fe.deral Rq $crve :Banks," . ThiS i should include . all·debi ts "GOld Settlament Fllrtd" on fonu 34 wade on ·ac...:. cdiin't·,; of· credits ·rac.::ived the daiiy settl~el'l,t or througn ·!.tom otrur 'Federal Reserve bankG, including transfer's foX' :Government ac.cou.nt. ot tern to in trartsfcrs 0 \ •· L. C. ADELSON, ASSISTANT SECRETA~JY W. T. CHAPMAN. ASSISTANT SECRETARY W. M. IMLAY, F'ISCAL AGENT ~-- ... t~) /'; ~-~·! J. A. BRODERICK, SECRETAIIY<' • . Item ODEN, "In·exchan~e for :E'esioral Reserve not3$t 11 shou1d. include all .gold received. t.n exchange· fpr FedJral Rese:t;'ve-:nptcs,' iric~ud.ing cred~t~ received fran the. Treamircr o~. ,-the_ trnitcd .States on acco'Ullt. of Federal 'Reserve p.otes of ether Fede.ral Reserve banks :tcrward.ed for rad0mption. Item o:BER. Thh item should inc:}.ude all gold. r..3C..3·ived and erodi ted to depos~i- accounts other than gold roc0ivcd .. from foreign corruspondcnts, which sh()uld be raport.Jd against itam ORAL, and gold rocoivcd from other Federal Reserve banks which should be included in it~ OARS. It~m ORIN· ·In ca~e any subs.tantial Cll:Uounts arc reported against this item it is requeste.d that the source from which reeoivod be specifically m.:;ntianed~ 0 :OI··SBtrn Sl!:MENTS h \ I It001 PAIL, 1'A11' ~radits in Gold Settlement P\md. ~ccoun~ oth~r F~derai Reserve Banks.n: This item should includ.;; all cr.adi ts to i tam "Gold Settlern~nt Furl.4 11 on form 34, on account of pa;9r:nents to other Federal Reserve banks in th~ daily set':'" tlement as well as all transf.;rs· of fu.-·lds to other Federal Reserve banks :for Qovernnent ac-e ount or otherwise. st.24 248: Item PLt.JM:, "In Exchange :for F. R. notes, le~al tender notes, silve.J", etc.," should include all gold paid out in exchange :for such currency, whether to u. s. Treasurer on account of J'ederai Reserve notes redeemed or to banks, inclividuals, etc. Item PORK• In case a:ny substantial am:nmts are reported against this item it is ·requested that a statement shoWing details of the transactions be sent with the report. The net gain or loss as shown by items QUAD and QUIZ should eqUal the net gain or loss as shown by for.m J4. Gold transferred from the bank's balance in ·the settlement f'Ulld to its Gold Redemption Fmld, or sitnilar transactions with reference to the Agent's gold holdings as well as transfers between the Bank and Agent, should be disregarded in making this report as they involve no change in the tot41 gold reserves of the reporting bank. From an analysis of the enclosed stat~ent shoWing gold receipts and disbursements b,y all Federal Reserve Banks daring the week ending October 4, it Will be seen that the aggregate credits to "Gold Settlement Fund account other Reserve banks," item PA~L, exceed the aggregate debits to this account, item OARS, by $1,747,000. This difference, caused by incorrect classifications by some of the banks, results in showing correspondingly incorrect figures of the gain or loss in gold ft>r the System as a whole. If care is taken to see that debits and credits to "Gold Settlement Fund acco'Ul'lt other Reserve banks" are made up entirely of gross debits and gross credits in the. daily settlements and transfers between Reserve banks Whether for Government acco•mt or otherwise, the aggregate of such de.. bits and credits for all Reserve banks as reported against item OARS and PAIL should balance. It will therefore be seen that if the aggregate debits and credits through the Gold Settlement Fund account other Reserve banks balance, the di:f- · terence between the sum of i terns ODEN, OBER, ORAL and ORIN and the sum of items PLUM, PEAKt PILL and PORK must equ.al the net gain or loss of gold for the System as a whole. It is essential that the Board be advised regarding the movement of gold in to an.d out of the Syatem and 1 t is there-. fore requested that utmost care be exercised in the preparation of future weekly reports on form X-1053· ~ Yours'very truly,
@FedFRASER