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FEDERAL RESERVE BANK OF CHICAGO DISTRICT No. 7 Chicago, March 10, 1915. TO 'IBE ?.IBMBER BAN1\S OF DISTRICT NUMBER SEVEN= The Federal Reserve Board a.t r/ashington desires us to inform you that in the opi~ion of their counsel member banks in the Federal Reserve System have the right to receive savings accounts and :!Jay interest on the same; and further, that the right to advertise for such accounts is a necessary incident to the exercise of the right to receive them. In this connection, while the Board believes that member bc:.nk~ hr.ve the right to advertise for "savings accounts", it also believes that it would be well to iimit sv.ch advertisement to the exact wo:L"dL1g of the statute, tr,e.t no re asonable complaint :night lie against the b?,n:ics for giving the impression to the publ ic that the "savings accounts" authorized under the Federal Reserve Act are identical with savings departments with segrega ted assets provided under State laws in many instances. Advertisements might be to the effect that a bank is authorized under the Federal Reserve Act to accept time deposits, including "savings ac counts"· and pay interest on the s ame . Respectfully, J.AMSS B. McDOUG.AL Governor. Bull etin No . 27. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis SEI' 24 Bulletin No. 27 FEDERAL RESERVE BANK OF CHICAGO 79 WEST MONROE STREET Chicago, March 10, 1915. TO THE MEMBER BANKS OF DISTRICT NUMBER SEVEN: The Federal Reserve Board at Washington desires us to inform you that in the opinion of their counsel member banks in the Federal Reserve System have the right to receive savings accounts and pay interest on the same; and further, that the right to advertise for such accounts is a necessary incident to the exercise of the right to receive them. • In this connection, while the Board believes that u.ember banks have the right to advertise for "savings accounts," it also believes that it would be well to limit such advertisement to the exact wording of the statute, that no reasonable complaint might lie against the banks for giving the impression to the public that the '' savings accounts'' authorized under the Federal Reserve Act are identical with savings departments with segregated assets provided under State laws in many instances. Advertisements might be to the effect that a bank is authorized under the Federal Reserve Act to accept time deposits, including "savings accounts" and pay interest on the same. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Respectfully, JAMES B. McDOUGAL, Governor.
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