View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

'Circular No. 340, January 29, 1921,"


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.


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


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,




If received by the Buffalo Branch credit is given one day after such receipt.

February 2, 1921

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.




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
" 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."

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102