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X-488 TREASURY DEPARTMENT TELEGRAM. WHERE WRITTEN Mr. Leffingwellrs office* Washington, November 6, 1917 N I G H T L E T T E R . To Governors, Federal Reserve Banks Boston, Mass. New York, N.'Y. Philadelphia, Pa. Cleveland, Ohio. Richmond, Va. Atlanta, Ga. Second Liberty Loan. Chicago, Ills. St. Louis, Mo. Minneapolis, Minn. Kansas City, M O • Dallas, Texas. San Francisco, Cal Any qualified depositary may make payment by credit of amounts which correspondent banks and trust companies would other wise pay by chdck upon the qualified depositary* Stop. This may be done whether the qualified depositary and correspondent bank or trust company are in the same district ®r in different districts. Stop. In cases where they are in different districts, the federal reserve bank of the district where the subscription is made must be notified by telegraph by the reserve bank of the district where payment is made, and the reserve bank of the district where pay ment is n£tds must credit the war loan deposit account with the amount so paid but indicating that the payment is made on account of subscriptions in the other district,stop. Thus, if a bank or irust company in the Chicago district has payments which it does not intend to make in Treasury certificates nor by credit, and would otherwise make by check or by telegraphic transfer upon its New York correspondent, such bank or trust company may telegraph or write its New York bank or correspondent to pay a specified ambunt in cash or b$> credit to the -2- X-488, Federal Reserve Bank of New York as fiscal agent of the United States Deposit War Loa n/k ccount, and to notify the Federal Reserve Bank New York that such payment is made for account of the Chicago bank or trust company in payment of or on account of a subscription of the latter filed with the Federal Reserve Bank of Chicago* Stop, In case of payrant by a subscribing bank or trust company through a qualified depositary in the same district, the procedure is substantially the same except of course only the reserve bank of the district need be notified of the transaction* Stop* Subscribers desiring to avail themselves of this method must give ampl^ notice to the correspondent bank or trust company which they expect to Call upon to make payment in order u pared and qualified* Stop* that such bank or trust company may be pry It is essential that steps should be taken in ample time to avoid possibility of payment not reaching one or the other federal reserve bank on time. Stop* The object from the point of view of the Treasury Department in sanctioning this procedure is to avoid unnecessary dislocation of funds and to reduce float as far as practicable. Stop* The procedure is of course wholly permissive and applies only to such funds as the subscribing bank or trust compajgy would withdraw from its correspondent bank or trust company i■ _ t , whether in its district or out of its district* Stop ‘Please notify banks and trust companies in your district accordingly. (Signed) Leffingwell. (Charge Liberty Loan.)
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