View PDF

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

FEDERAL RESERVE BANK OF DALLAS
F IS C A L A G E N T O F T H E U N IT E D S T A T E S

Dallas, Texas, October 25,1945

IM PO R TAN T
VICTORY LO AN DRIVE

To the Managing Officer o f the Bank Addressed:

In my letter of October 15, 1945, addressed to the managing officers of banks in the
Eleventh Federal Reserve District, I called your attention to the Treasury’s requirement that
all subscriptions for marketable securities offered in the Victory Loan Drive must be accom­
panied by a certificate signed by an officer of the bank submitting the subscription. That
requirement is made, of course, to expedite processing subscriptions and to achieve as fully
as possible the objective of the Victory Loan Drive.
Secretary of the Treasury Vinson has requested that the Federal Reserve banks inform
the banks in their respective districts that the Treasury considers it essential that each bank
designate a specific officer or officers, who are fully informed as to the Treasury’s objectives
and requirements, to pass upon subscriptions for marketable securities and to sign the required
certification. Thus-, in so far as possible, the bank may be assured that such subscriptions are
not speculative in character. The Treasury and the Federal Reserve banks, acting as fiscal
agents of the Treasury, will rely upon the certification of the bank with which the subscription
was filed for the account of a customer.
In the event that a bank receiving a subscription prefers not to pass upon its eligibility,
the Secretary o f the Treasury has requested that the appropriate Federal Reserve Bank, acting
as fiscal agent of the Treasury, assume that responsibility. I f the banking institution receiving
a subscription has any doubt as to the propriety of accepting it, that bank should notify this
Federal Reserve Bank, or its appropriate branch, stating the circumstances and furnishing
all available information regarding the particular case. Such questionable subscriptions should
not be entered with the Federal Reserve Bank until it has had an opportunity to study the
facts and submit suggestions to the bank receiving the subscription.
If, in its review and examination of the subscriptions submitted to it, questions should
arise which are based on information which may not have been available to the bank submit­
ting the subscription, the Federal Reserve Bank will communicate accordingly with that bank.
In this connection, Secretary Vinson has urged the cooperation of banks in answering inquiries
which the Federal Reserve Bank may find it necessary to make o f them in order to determine
the acceptability o f subscriptions.
I am sure that you appreciate the importance of eliminating all subscriptions of a specu­
lative character, and I know that you will be glad to cooperate fully with this bank and with
the Treasury, as you have in past war loan drives. This will enable the Treasury to place its
securities with permanent investors outside of the banking system and thus avoid an expan­
sion in bank deposits and a further increase in inflationary pressures.

Sincerely yours,
R. R. G ILBERT
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

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