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M IS C L . 14-8-28 -18 FEDERAL RESERVE BANK OF DALLAS No ■ 2 " , November l8> 1915» TO THE MEMBER BANK ADDRESSED: S e c tio n 18 o f the F ed era l Reserve Act p ro v id e s th a t any member bank d e s ir in g to r e t i r e the whole or any p a rt o f i t s c ir c u la t in g n o te s , may f i l e w ith the Treasurer o f the United S ta tes an a p p lic a t io n t o s e l l fo r i t s account at pa* and accrued in t e r e s t , United S tates Bonds s e cu rin g c ir c u la t io n to be r e t ir e d * This s e c t io n o f the Act takes e f f e c t December 23, 193-5, and the F ed eral Reserve Board has announced th a t the f i r s t q u a rte r ly p e rio d fo r which they w i l l co n s id e r such a p p lic a t io n s w i l l be +he p e r io d ending March 31, 1916* In accordance w ith the terms o f the A ct, a i l a p p lic a tio n s to s e l l such bonds, in Order to be con sid ered by tne- Board at th at tim e, must have been f i l e d w ith the Treasurer o f the United S ta tes at le a s t ten days b e fo r e the end o f the q u a rte r, i , e « , on or b e fo r e March 21, 193.6* I t seems a p p rop ria te a t t h is time to prepare forms f o r the use o f mem b er banks o f t h is d i s t r i c t , to g e th e r w ith su g g estion s con cern in g the procedure t o be follow ed * In making a p p lic a t io n s , member banks should bear in mind th e following points; 1 s t : The on ly bonds th a t are e l i g i b l e fo r s a le in t h is manner are United S ta tes Bonds, which at the tim e o f a p p lic a t io n are a c t u a lly secu rin g c i r c u l a t i o n o f N ation al bank n otes t o be r e t ir e d * 2nd; The a p p lic a t io n s should be forwarded d i r e c t l y t o the T reasurer o f th e United S ta te s , Washington, D* C* 3 r d ; The a p p lic a t io n s must be r e c e i v e ’ oy the Trea&urer o f the United S ta tes at le a s t ten days b e fo r e the end of the q u a rte r ly p e r io d at which the s a le is d e s ir e d t o be made4th j I t is o p t io n a l w ith the F ed eral Reserve Board wnether or n ot to re q u ire the F ed eral Reserve banks t o purchase the bonds o ffe r e d fo r s a le , 5 th : I f the F ed eral R eserve Banks are req u ired by the Federal Reserve Board to purchase the bonds, the p r ic e w i l l n e c e s s a r ily be par and accrued in t e r e s t * 6 th ; The aggregate amount o f sail bonds which tne F ederal Reserve Banks can be req u ired to purchase i s lim ite d to $ 2 5 ,0 0 0 ,0 0 0 , in any one yea r, and w i l l not exceed $6 , 250,000 in any one q u a rte rly p e rio d * 7 th ; This aggregate amount mey be furtherm ore he reduced by the amount o f bonds purchased during the same year by the F ed era l Reserve Eanko in the open market* 8 th : A p p lic a tio n s to s e l l , which are not a ccep ted f o r purchase in f u l l at the end o f any g a r t e r , la p s e , but the bonds not purchased may be o ffe r e d again fo r s a le by f i l i n g new a p p lic a t io n at le a s t ten da>s b e fe r e the end of any other q u a r te r , 31ank forms fo r making a p p lic a t io n s to the Treasurer o f the United S tates fo r the s a le o f bonds in accordance w±h the fo r e g o in g , w i l l be fu rn ish ed , on re q u e s t, by t h is bank* R e s p e c tfu lly . R* E, VAN ZINDT, Governor * This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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