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FEDERAL RESERVE BANK
OF N E W YORK
Government Bond
Department

|~ Circular No. 323"]
[_DecembeT 9, 1920 J

Permanent Fourth Liberty Loan 4M Per Cent Coupon Bonds
Ready for Delivery on or about January 15, 1921
To all Banks, Trust Companies and Savings Banks
in the Second Federal Reserve District:
The permanent 4 \i per cent, coupon bonds of the Fourth Liberty Loan with all
future coupons to maturity attached are expected to be ready for delivery on or about
January 15, 1921 in exchange for the temporary bonds of t h a t issue.
Numerous requests have come to us from the banks asking that we receive such
temporary bonds from them in advance of the time when they actually can be exchanged.
To accommodate all of the banks in this respect we have arranged, therefore, and are now
prepared to receive from them such temporary bonds as they may desire to send us at the
present time, with all coupons detached. Temporary bonds so received will be duly acknowledged by us and the permanent bonds will be forwarded when available. The last
coupon on these temporary bonds matured on October 15 of this year and future interest
therefore cannot be collected until the bonds are exchanged for registered bonds or for
permanent coupon bonds having coupons to maturity attached. Temporary bonds so
received are immediately canceled by us and shipped to the Treasury Department and it will
not, therefore, be possible to return any such bonds to a forwarding bank.
Bonds on Consignment
Duly qualified depositaries of public moneys expecting to facilitate exchanges of
temporary for permanent bonds by receiving from us deliveries of permanent Fourth
4M' S against collateral security pledged, should apply for such permanent bonds at an
early date. This will enable us to ship the permanent bonds to them promptly as soon as
such bonds are available. In fixing the amount of permanent bonds for which it will
apply, the applicant banking institution should be guided by the amount of exchanges
which it expects t o make for itself and its customers within a reasonable period of time
after the date of the application. The size of the new permanent Fourth 4 ^ ' s is 16% by
10% inches open flat and 3 % by S}4 inches when folded, from which dimensions the
amount of vault space required may be determined.
The provisions, as above modified, of our Circular No. 259, dated March 5, 1920,
issued subject to Treasury Department Circular No. 164, dated December 15, 1919, will
govern such exchanges.
Very truly yours,




J. H.

CASE,

Acting Governor

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