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Circular No. 5 Series of 1929 FED ER AL R ESE R V E B A N K OF DALLAS June 3, 1929 ISSUE OF NEW SMALL-SIZE CURRENCY To the Nonmember Bank Addressed: Treasury Department Official Circular No. 415, dated June 3,1929, is reproduced here in, in which the Secretary of the Treasury announces that the date July 10, 1929, is now set for the initial issue of new small-size currency and that the issue will be made through the Federal reserve banks and branches. For the initial issue, the Federal Reserve Bank of Dallas and its branches at El Paso, Houston and San Antonio have been authorized to make available to the commercial bank ing institutions of the Eleventh District limited amounts of new small-size currency. Your attention is called to the fact that the initial issue will include all kinds of currency except national bank notes, and all denominations from $1 to $20. Small-size gold certificates and Federal reserve notes in denominations above $20 will be issued when available without further notice. The present practice of the Federal Reserve Bank of Dallas and its branches is to make shipments of currency and coin to nonmember banks at the request of member banks, charging the requesting member bank with the amount of the shipment and the expense of transportation and insurance. For convenience, it is suggested that nonmem ber banks desiring some of the small-size currency make their requests through member banks. However, this bank and its branches will accept orders direct from nonmember banks and, upon receipt of collected funds, will make shipment on or about July 10, 1929, of limited amounts of small-size currency. Drafts will be drawn on nonmember banks cov ering the expense of transportation and insurance. In the interest of economy, Federal reserve banks will continue to utilize their present stocks of old-size currency and will pay out old-size currency fit for circulation concur rently with small-size currency, and accordingly replacement of the outstanding old-size currency with the small-size currency will be a gradual process and, except for the initial issue, will be goyerned largely by the amount of old-size currency on hand fit for circu lation. The Federal Reserve Bank of Dallas and its branches reserve the right to reduce the amount of any orders received for the initial issue of small-size currency. After the initial issue date, in making payments of currency, this bank and its branches will follow the usual procedure and will give preference to the payment of available old-size currency. Yours very truly, Governor. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) ISSUE OF NEW SMALL-SIZE CURRENCY Department Circular No. 415, Sup plementing Department Circular No. TREASURY DEPARTMENT, Washington, June 3, 1929. 55, as revised January 26, 1927. Treasurer of the United States: The Secretary of the Treasury has heretofore announced the adoption of a reduced size, and wholly new designs, for the paper currency issues of the United States. The date July 10, 1929, is now set for the initial issue of new small-size currency, and thereafter old-size currency redeemed as unfit for further circulation will be replaced with new small-size currency. The issue will be made through the Federal reserve banks and branches. For the initial issue, the Federal reserve banks have been authorized to make available to the commercial banking institutions of their respective districts lim ited amounts of new small-size currency, on an equitable basis established by them. After such initial issue, in making payments of currency, the Treasurer of the United States and the Federal reserve banks and branches will follow the usual procedure and will pay out available old-size currency fit for further circulation concurrently with new smallsize currency in such proportion of each as may from time to time be determined. The initial issue will include all kinds of currency except national bank notes, and all denominations from $1 to $20. Small-size gold certificates and Federal reserve notes in denominations above $20 will be issued when available without further notice. Smallsize national bank notes will be printed for issuing banks in order of charter numbers and, commencing about July 15, 1929, will be issued accordingly, as available, against redemptions of old-size bank notes. Any outstanding old-size paper currency, hereto fore or hereafter issued, will not be recalled. It will be retired gradually in regular course of business, and, in the meantime, its validity will not be affected by the issue of the new small-size currency. A. W. MELLON, Secretary of the Treasury.
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