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Circular No. 24 Series of 1918 , O FFIC E R S DIRECTORS W . F . R A M S E Y . C H A IR M A N A N D Federal Reserve agent W . B. NEW SOM E. . D E P U T Y C H A IR M A N J. J. C U LB E R T S O N , . . P A R IS . T E X A S F R A N K K E L L , . W IC H IT A F A L L S . T E X A S B . A . M C K IN N E Y , . . DURANT. O K LA . M A R IO N S A N S O M , . F T . W O R T H . T E X A S j n o . T .S C O T T , . . Ho usto n. T exas E . K . S M IT H , . . Sh r e v e p o r t , L a . h . o. W O O T E N , . . A b il e n e . T e x a s R. L . V A N ZA N D T, G O VERNOR J. W . HOOPES, D e p u ty Go ver n o r L Y N N P. T A L L E Y . C a s h ie r SAM R. LA W D E R , A s s is t a n t C a s h ie r R . R . G IL B E R T , A s s is t a n t C a s h ie r P A U L G. T A Y LO R . a s s is t a n t Ca s h ie r Federal R eserve b an k OF DALLAS C H A R L E S C . H A L L . A S S IS T A N T Federal reserve ag ent w. C . W E IS S .............................. a u d i t o r R. B. C O LE M A N , a s s is t a n t C a s h ie r Da l l a s , T e x a s , May 20, 1918. TO T H E C A SH IE R OE T H E BANK A D D R E S S E D : Dear S ir: For the purpose of conserving the Nation’s gold supply, permitting the settlement in silver, where prac ticable, of adverse trade balances, providing silver for subsidiary coinage and commercial use, and assist ing Allied Governments in the war against Germany, Congress has recently authorized $350,000,000 of the silver dollars held in the United States T reasury to be broken up and sold as bullion. As most of the sil ver thus held is represented by silver certificates in circulation, it can only be obtained by the return of silver certificates to the T reasury for cancellation. The w ithdraw al of silver certificates from circulation is not intended to be permanent, as the Act pro vides that the Director of the Mint, as soon as practicable after a sale of silver bullion has been made, shall purchase a like quantity of silver to take the place of the bullion sold. To provide temporarily the necessary circulating medium during the interim between the w ithdraw al of the silver certificates and their subsequent re-issue when the silver supply has been replenished by purchases of silver, Federal Reserve Banks will is sue Federal Reserve Bank notes in denominations of $1.00, $2.00, $5.00 and upward. These notes will be obligations of the Federal Reserve Banks secured by United States certificates of indebtedness or bonds and similar otherwise to National Bank notes. W e ask the banks of this district to co-operate w ith the Government by furnishing us with their present supply of $5.00 silver certificates, which can be replaced in circulation at once by Federal Reserve notes, Federal Reserve Bank notes, or United States notes. In a few weeks, when Federal Reserve Bank notes of the $1.00 and $2.00 denominations are ready, a request w ill also be made that silver certificates in these denominations be sent in. W ill you not, therefore, please sort out of your cash and forward to us, at our expense, all silver cer tificates of $5.00 and upward which you m ay have on hand or receive from time to time, in return for which we will either, (a) Furnish you, free of expense, other currency of the same or larger denominations, as you m ay prefer, or (b) Place the amount to your credit in this bank, if a member bank, or in any designated bank in this* District. W e feel confident that you will be w illing to co-operate with the Government in furnishing it the sil ver it needs for its own requirements and those of the Allies. V c ry truly yours, Governor. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
