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F E D E R A L RESERVE B A N K OF N E W YORK 'Circular No. 340, January 29, 1921," Check supplementing e i r c u l a r s ' N o . 331, dated December 80, 1920. No. 80V, dated October 15, 1920, No. 286, dated J u n e I, 1910, No. 278, dated May 17,1920, modifying circular No. 258, dated March 1, 192U. Department Collection of Checks Immediate Credit for Certain New Jersey Checks To All Banks and Trust Companies in the Second Federal Reserve District: The Northern New Jersey Clearing House Association has notified us t h a t the Savings Investment and Trust Company, East Orange, New Jersey, has been admitted io its membership. Checks drawn on that company, including checks on its South Orange Branch, will be received by us on and after Monday, January 3 1 , 1921 for immediate credit* in the same manner as checks drawn on certain other New Jersey banking institutions listed in our time schedule supplement effective since May 19,1920, to which some additional names were added with the issuance of our circulars Nos. 286 and 331. I t will not be necessary to sort checks drawn on the South Orange Branch of the Savings Investment and Trust Company as they may be included with the checks drawn on its main office. Such checks will of course be received and handled under the terms and con- ditions, as modified, of our general circular entitled "Collection of Checks" dated March 1, 1920. Very truly yours, BENJ. STRONG, Governor * If received by the Buffalo Branch credit is given one day after such receipt. ^H° FEDERAL RESERVE BANK OF N E W YORK February 2, 1921 TO ALL EMPLOYES: The Board of Directors of this Bank have today approved the addition of two new rules, attached hereto, to the General Rules and Regulations governing the conduct of the employes of the Bank, one prohibiting speculation by individual employes in stocks, bonds, commodities or real estate, and the other prohibiting the unauthorized disclosure of information obtained in connection with the Bank's work, and prohibiting certain unauthorized discussions with anyone not connected with the Bank. I wish to impress upon each and every employe of the Bank the necessity of familiarizing himself or herself with both of these rules and to emphasize the importance of a most strict compliance with them, both in letter and spirit, since, as the rules themselves state, anyone guilty of violating them will be "subject to immediate dismissal" from the Bank's service. These two rules have been enacted not merely for the purpose of safeguarding the interests of the Bank, b u t also for the better protection of the individual members of the Bank's staff themselves. The hazards and dangers incident to speculation, for instance, are too apparent to call for comment and this is especially true when incurred by anyone of slender or limited resources. As a result, the rule relating to speculation, in so far as it prohibits any borrowing, whether large or small, for any of the purposes enumerated, will serve as a real protection against temptations and risks which would certainly concern the Bank and injure the individual. So also, t h a t part of the rule which refers to the granting of indorsements and signing as surety will be found to be not only a safeguard against the risk of financial loss attached to a liability of t h a t character, b u t also a relief from the embarrassment which might otherwise result from a refusal to accommodate someone asking for assistance. I n view of the possibility, however, that at some time or other a real and proper necessity may arise for incurring a liability of this character, the phrase "without the approval of the Governor" was inserted in the prohibitive part of the regulation. Consequently, if any employe of the bank finds it necessary, for one reason or another, to incur a debt or other liability which might be construed as coming within the terms of this rule, he or she must feel perfectly free to present the facts fully and frankly to the Governor (or, in his absence, to whomever is acting in his place) for his consideration and advice, with every assurance of t h a t friendly spirit of sympathy and cooperation which all of the officers of the Bank feel towards their associates on the Bank's staff, no matter what their position may be. BENJ. STRONG, Governor V O T E D to amend the General Rules and Regulations for the employes of the Federal Reserve Bank of New York by the addition of two paragraphs, reading as follows: " A n y employe of the bank who, without the approval of the Governor, incurs any debt or other liability for the purpose of dealing in stocks, bonds, commodities or real estate for a speculative profit, or who, without such approval, grants his or her indorsement upon any note or bill, or signs as surety on any bond or contract, shall be subject to immediate dismissal." " I n view of the ultra-confidential character of the work of the personnel of the Federal Reserve Bank, and in view of the sometimes exaggerated importance attached even to informal or personal comments or statements made by Federal Reserve Bank employes concerning general banking matters, no employe of the Federal Reserve Bank shall in any way disclose to anyone, other than an employe or officer of the bank entitled thereto, any information obtained in the course of his or her work, or discuss any banking matters t h a t may in any way concern or relate to the Federal Reserve Board, the Federal Reserve Banks, or any member bank, with anyone not connected with the Federal Reserve Bank, and in no event outside of the office of the Federal Reserve Bank. Anyone guilty of a breach of this rule will be subject to immediate dismissal."