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FED ERAL R E SE R V E BANK OF NEW YORK r Circular N o. 3 8 4 1 1 L A pril 10. 1952 J Collection of Maturing Bonds and Coupons Payable Either in United States Dollars or in Canadian Dollars To Member and Nonmember Clearing Banks and Others Concerned in the Second Federal Reserve D istrict: Under the terms o f our Operating Circular No. 8, Revised November 1, 1949, any mem ber or nonmember clearing bank may send to us fo r collection maturing bonds and coupons payable within the continental United States (other than obligations o f the United States or its agencies or instrumentalities, or o f the International Bank fo r Reconstruction and Devel opment, which are paid or redeemed by us as fiscal agent). A number o f Canadian issues provide for payment o f bonds and coupons at maturity either in United States dollars or in Canadian dollars, at the holder’s option. I f the holder elects to receive United States dollars, the securities must be presented to paying agents in the United States, whereas if the holder wishes to receive Canadian dollars, the securities must be pre sented at the office o f the Canadian issuer or to its paying agents in Canada. W ith the Canadian dollar currently quoted at a premium on the foreign exchange market, we have received inquiries as to whether we would be prepared to collect such maturing bonds and coupons in Canadian dollars, sell the resulting Canadian exchange on the market at current rates, and remit the proceeds in United States dollars. W e cannot undertake the collection in Canadian dollars of maturing bonds and coupons o f such Canadian issues because they are not payable in that form within the continental United States. W e understand, however, that commercial banks when requested by a cor respondent are generally prepared to arrange either (1) to present such securities to the paying agents in Canada and to sell the proceeds for United States dollars, or (2) to sell such securities fo r United States dollars to a buyer who wishes to obtain Canadian exchange by presenting the securities fo r payment in Canada. Member and nonmember clearing banks wishing to exercise the option o f obtaining pay ment o f Canadian issues in Canadian dollars, therefore, should not send the bonds or coupons to us fo r collection, but should make appropriate arrangements with their correspondent banks. On and after A pril 15, 1952, any member or nonmember clearing bank that sends to us for collection maturing bonds or coupons payable in more than one currency, including United States dollars, will be regarded as having authorized and instructed us to present such bonds or coupons to the paying agents in the United States fo r payment in United States dollars. Member banks having maturing bonds or coupons o f such Canadian issues in safekeeping with us should make similar arrangements with their correspondent banks if they wish to exercise the option, and should give us instructions regarding disposition of the maturing securities. In the event that appropriate instructions are not received within a reasonable time prior to the date o f maturity, bonds or coupons payable in more than one currency, including United States dollars, will be presented by us fo r payment in United States dollars, as provided in our Operating Circular No. 14, Revised November 13, 1950. A llan S proul, President. AMENDMENTS to the BY-LAW S OF THE BUFFALO BRANCH of the FEDERAL RESERVE BANK OF NEW YO R K Effective March 1, 1952 Issu ed A pril 19 5 2 The following amendments to the by-laws of the Buffalo Branch, which became effective March 1, 1952, are printed for use in connection with the booklet issued October 1951 contain ing the by-laws of the Federal Reserve Bank of New York, as amended effec tive October 5, 1951, and the by-laws of its Buffalo Branch, as amended effective March 1, 1947. AMENDMENTS TO BY-LAWS, BUFFALO BRANCH 1 Section 3 of Article II was amended, effec tive March 1, 1952, to read as follows: S e c t i o n 3. Meetings.— There shall be a regular meeting of the board on such day of each month and at such time as the board shall designate. The chairman may call a special meeting at any time, and shall do so upon the request of the Federal Reserve Bank of New York or the written request of the officer in charge of the Branch or any two direc tors of the Branch. Notice of any meet ing, if given by mail, shall be mailed at least two days prior to the date of such meeting, and, if given by telegraph or telephone, shall be dispatched at least twenty-four hours before the time of such meeting. Section 1 of Article IV was amended, effec tive March 1, 1952, to read as follows: S e c t i o n 1. How constituted.— The board may appoint a discount committee con sisting of the officer in charge of the Branch, such other officers of the Branch as the board may designate, and the AMENDMENTS TO BY-LAWS, BUFFALO BRANCH 2 chief of the credit and discount division. Not less than two members of the com mittee shall constitute a quorum for the transaction of business. Section 1 of Article VI was amended, effec tive March 1, 1952, to read as follows: S e c t i o n 1. Appointed by the Federal Re serve Bank of New York.— The officers of the Branch, who shall be appointed by the board of directors of the Federal Reserve Bank of New York, shall be the officer in charge of the Branch and such other officers as the board of directors of the Federal Reserve Bank of New York may from time to time determine to be necessary and appropriate for the con duct of the business of the Branch. They shall hold office during the pleasure of the board of directors of the Federal Reserve Bank of New York. Section 2 of Article VI was amended, effec tive March 1, 1952, to read as follows: 2. Officer in charge of the Branch.— The officer in charge of the S e c tio n AMENDMENTS TO BY-LAWS, BUFFALO BRANCH 3 Branch (who shall have such title, not including the word “director,” as may be determined by the board of directors of the Federal Reserve Bank of New York) shall be the active manager of the Branch and shall have general charge thereof. In all cases where duties of subordinate officers of the Branch are not specifically prescribed by the by laws or the board of directors of the Branch or by the Federal Reserve Bank of New York, they shall be the duties prescribed by the officer in charge of the Branch. Section 3 of Article V I was deleted, effec tive March 1, 1952. Section 4 of Article V I was renumbered as Section 3 and amended, effective March 1, 1952, to read as follows: S e c tio n 3. Cashier.— The cashier, or such other person as may be designated by the board, shall keep the minutes of the meetings of the board and of all committees appointed by the board. In AMENDMENTS TO BY-LAWS, BUFFALO BRANCH 4 the absence or disability of the officer in charge o f the Branch and of any other officer of the Branch designated to exer cise the powers and discharge the duties of the officer in charge of the Branch in the event of his absence or disability, the cashier shall exercise the powers and discharge the duties of the officer in charge of the Branch. The cashier shall also perform such other duties as may be prescribed by the officer in charge of the Branch, subject to the approval of the board. Section 5 of Article V I was renumbered as Section 4 and amended, effective March 1, 1952, to read as follows: 4. Assistant Cashiers.— Each assistant cashier shall perform such duties as may be prescribed by the officer in charge of the Branch, subject to the approval of the board. In the absence or disability of the cashier, the assistant cashier designated by the board or by the officer in charge of the Branch shall exercise the powers and discharge the duties of the cashier. S e c t io n AMENDMENTS TO BY-LAWS, BUFFALO BRANCH 5 Sections 6 through 9 of Article V I were renumbered, effective March 1, 1952, as fol lows: (a) Section 6 was renumbered Section 5, (b) Section 7 was renumbered Section 6, (c) Section 8 was renumbered Section 7, and (d) Section 9 was renumbered Section 8. FEDERAL RESERVE BANK OF NEW YORK New Y ork 4 5 , N. Y. A p r il 1 1 , 1952. To Member and Nonmember C le a r in g Banks in th e Second F e d e r a l R eserve D i s t r i c t : We have been a d v ise d th a t flo o d s in some a re a s o f the N inth F e d e r a l R eserve D i s t r i c t and a lo n g th e M is s o u ri R iv e r in th e Seventh and Tenth F e d e r a l R eserve D i s t r i c t s have i n t e r rupted t r a n s p o r t a t io n and communication f a c i l i t i e s . r e s u lt, As a some n o t ic e s o f nonpayment o f cash item s and th e r e tu rn o f some unpaid item s w i l l be dela y ed u n t i l normal c o n d it io n s a re r e s t o r e d . We w i l l c o n tin u e t o g iv e c r e d i t in accordance w ith our tim e sc h e d u le s f o r cash item s payable in the a f f e c t e d a r e a s , b u t a d v ic e o f nonpayment and re tu rn o f unpaid item s may be de la y e d . We r e s e r v e th e r i g h t , o f c o u r s e , t o charge back any unpaid item s a t any tim e . ALLAN SPROUL, P r e s id e n t.