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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.