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FEDERAL RESERVE BANK OF N E W YORK f Circular N o. 4 9 8 7 1 L January 12, 1961 J LIM ITATIONS ON COIN DISTRIBUTIONS T o A ll M em ber and Nonm em ber Banks in the Second Federal Reserve D is tr ic t: A marked increase in public demand for coin resulted in some coin shortages during 1960 and caused us to resort to rationing cents during the year and nickels and quarters at the year-end. Am ong the factors contributing to this situation has been the increased interest in coin collecting and the practices of wholesale and retail coin dealers in obtaining inventories o f uncirculated coin from banks for sale to collectors. Already, in anticipation of the release by Federal Reserve Banks of newly minted 1961 coinage to banks, coin dealers are offering, at premium prices, mint-sealed bags and bank-wrapped rolls o f several denominations o f 1961 coins, particularly cents and nickels. As a result o f these developments and to avoid aggravating the problem o f coin shortages in 1961, we wish to emphasize the principles followed by the Federal Reserve Banks in supplying coin to the banking system. The Federal Reserve Banks obtain supplies of new coin from the Bureau o f the Mint in the available quantities needed by the banking system to meet the demands o f the business community for coin as a medium o f exchange. In paying out coin, the Federal Reserve Banks do so with out regard to the year or place o f mint and without regard to whether the coin is new or circulated. The Federal Reserve Banks do not undertake to supply coin for special purposes, such as coin collecting. F or the reasons stated, we ask for your cooperation in screening requests o f your customers to make certain that the coin you order from us is for the needs o f business as a medium o f exchange. The practice o f the Mint in supplying proof coins, and o f the Treasurer’s Office (Cash D ivision), Washington, D. C., in supplying a reasonable quantity o f uncirculated sets of all coins produced during the calendar year should provide ample service to coin collectors. A lfred H ayes, P resident.
@FedFRASER