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FEDERAL RESERVE BANK OF CHICAGO
79 WES T

MONROE STREET

Bulletin No . 109.
May 16 , 1918.

TO THE BANK OR TRUST COMPANY ADDRESSED:
For the purpose of conserving the Nation's gold supply , permitting
the settlement in silver, where practicable, of adverse trade balances ,
providing silver for subsidiary coinage and commercial use, and assisting the Allied Governments in the war against Germany, Congress bas recentll
authorized $350,000,000 of the silver dollars held in the United States
Treasury to be broken up and sold as bullion. As most of the silver thus
held is represented by silver certificates in circulation, it can only be
obtained by the return of silver certificates to the Treasury for cancellation.
The withdrawal of silver certificates from circulation is not intended to be permanent, as the Act provides that the Director of the Uint , 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 inter i m
between the withdrawal of the silver certificates and their subsequent reissue when the silver supply has been replenished by purchases ot silver,
Federal reserve banks will i8sue Federal reserve bank notes in denominations
of $1. 00, $2.00, $5 . 00 and upward. These notes are the obligations of the
Federal reserve banks secured by United States certificates of indebtedness
or United States bonds and are similar otherwise to national bank notes.
We ask the banks of this district to cooperate ith the Government
by shipping us their present supply of silver certificates , in denominations
of $5 . 00 and upward which will be replaced in circulation at once by Federal
reserve notes , Federal reserve bank notes, or United States notes . I n a few
weeks , when Federal reserve bank notes of the $1.00 and $2 . 00 denominations
are ready, a request will also be made that silver certificates in thes e
denominations be sent in .


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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK OF CHICAGO
79 WEST

MONROE STREET

I

I
j_

Will you therefore, please sort out of your cn$h and forward
direct to th e Assi stant Tr easure r of the United States , Chi cago, for our
credit, with advi ce t o us o f t he amount ship rect, all si lver certificate~
of $5.00 and upward which you may ha ve on hand or r eo eive from time to
time, in return for whic h we will either,
(a)

Ship you, free of expenRe, other curr ency of the
same or larger denominatio ns , as you may prefer, or

(b)

Place the amount to your cr edit in this bank or in any
designated bank in this city.

Banks having arrangements for t ne ins urance or currency shipments
are requested to for ward silver ~ertificates by r egistered mail, insurP.d,
with advice to us of the amount of th 5 cha~g es, whi ch will be refunded.
We feel confident that you will be willing to coop erate with the
Government in furni shing it the silver it nee ds for its own requirements
and those of the Allies.
Very truly yours,
J. B. McDOUGAL,

Governor.

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Federal Reserve Bank of St. Louis