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CIRCULAR NO.

:N

>.

FEDERAL RESERVE BANK OF N E W YORK
6 2 CEDAR STREET

N E W Y O R K , M A R C H 3,

PURCHASE

To

OF

UNITED

STATES

1916.

BONDS

T H E CASHIER :

SIR :

v

In our Circular No. 35, dated November 12, 1915, you were advised of the formalities
necessary to be taken by member banks which desire to sell United States bonds securing
circulation to Federal reserve banks under the provisions of Section 18 of the Federal
Reserve Act.
T h e amount of bonds which this bank might thus be required to purchase during the
present year is approximately $5,000,000. Inasmuch as several Federal reserve banks have
offered to purchase bonds directly from their member banks, the directors of this bank have
authorized it to purchase at par and accrued interest from member banks in this district
$5,000,000 of United States 2% bonds bearing circulation privilege and actually owned by
the banks offering them. An offering under this circular will not preclude offerings to the
Treasurer of the U. S. in accordance with the terms of our Circular No. 35, and this
action is taken by the directors of this bank in order to assure to its member banks
the maximum benefits of Section 18 of the Act.
Member banks desiring to sell United States 2% bonds bearing the circulation
privilege are requested to make offerings of such bonds to this bank before 12 o'clock noon
on Tuesday, March 14, 1916.
Should the offerings thus received exceed in amount
$5,000,000, the Federal Reserve Bank of New York reserves the right to pro rate its purchases
among member banks making such offers and further reserves the right in pro rating such
purchases to adjust the same in even thousands in its discretion. Kach bank will be advised
of the amount of bonds which will be purchased from it as soon as possible after the
offerings have been received, and also of any special steps necessary for the retirement of
the circulation based upon such bonds, if any, and for the transfer and assignment of
the bonds.
Knclosed herewith is a form which member banks are requested to use in offering
bonds under this circular.




Respectfully,
P I E R R E JAY,
Chairman,

Board of

Directors.

DATE

CITY

To T H E FEDERAL RESERVE BANK OF N E W YORK,
N E W YORK, N. Y.

In accordance with the terms of your circular letter of March 3, 1916, we
hereby offer you for purchase at par and accrued interest, all or any part of the
following named 2% bonds of the United States bearing the circulation

privilege

and owned by this bank; this offer to hold good until March 15, 1916.

$

of the loan of

$

of the loan of

$

of the loan of

Of which bonds $




are securing circulating notes.

Cashier,

National

Bank.