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CIRCULAR NO. 2. FEDERAL RESERVE BANK OF N E W YORK TEMPORARY OFFICE. 2 7 PINE STREET NEW YORK, October 31, To THE MEMBER BANKS OE DISTRICT No. 1914. 2: This circular letter is sent to member banks in accordance with the desire of the directors of the Federal Reserve Bank of New York, that they should be kept fully informed from time to time of the steps which have been taken in its organization, and of all matters of general interest to them in connection with its operation and policies. At its first meeting on October 5th, 1914, the directors elected Benjamin Strong, Jr., of New York City, Governor of the Federal Reserve Bank of New York. In accordance with the provisions of the law, the directors have classified themselves as follows: CLASS A The term of office of Franklin D. Locke expires December 31, 1915. " " 31, 1916. « « « William Woodward « R. H. Treman " " 31, 1917. « « < « CLASS B The term of office of Leslie R. Palmer " Henry R. Towne « « " Wm. B. Thompson expires December 31, 1915. " " 31, 1916. " " 31, 1917. CLASS C The term of office of Geo. Foster Peabody expires December 31, 1915. U .. « M Pierre Jay " " 31, 1916. it « « <« Charles Starek " " 31, 1917. The directors have adopted By-laws, a copy of which when printed will be sent to each member bank. The directors have received from the Secretary of the Treasury a telegram dated October 26th, in which he expresses his intention of formally announcing the establishment of the Federal Reserve Banks in each of the Federal Reserve districts on the 16th day of November, 1914. In view of the shortness of the time between the receipt of this telegram and the proposed date of opening, it is obviously impossible for the directors and officers of this bank to assemble a permanent organization adequate to receive the volume of reserves to be deposited by member banks, and to transact such business as may be undertaken at first. The staff of the bank at its opening must, therefore, of necessity, be largely temporary, drawn from the banks in this city, until the permanent staff can be gradually selected. The spirit of co-operation shown by those banks which have already been asked to contribute to this temporary staff is evidence that the member banks reciprocate the earnest desire of the directors that the Federal Reserve Bank of New York shall be conducted with due regard to efficiency and security, and in such manner as to be of service to its member banks. Referring to circular No. 10 of the Federal Reserve Board which has been sent to all member banks, attention is especially called to the paragraph in which the Federal Reserve Board urges all banks, in transferring reserves, to ship gold or lawful money from their own vaults. The express charges on such shipments of gold or lawful money will be paid by this bank. In order that the Federal Reserve system may from the outset become the main repository of the gold reserves of the country, the directors desire most earnestly to urge upon member banks in this District that they should prepare to make their transfers of reserves in gold or gold certificates as far as practicable. They are, however, requested to postpone making definite arrangements to transfer their reserves until they receive more explicit advices, which will be contained in a circular soon to be issued. For the Directors, PIERRE JAY, Chairman. FEDERAL RESERVE BANK OF N E W YORK 6 2 CEDAR STREET NEW To the Member Banks of District YORK. November 9, 1914. No. 2: Under date of November 4 the Comptroller of the Currency has called for a statement of the condition of National Banks at the close of business October 31. At the suggestion of the Comptroller of the Currency, it is requested that a duplicate of your report be sent to this bank as soon as convenient, upon the form enclosed herewith. BENJ. STRONG, JR., Governor.