Full text of Federal Reserve Bank of New York Circulars : 89. Payment of Second Liberty Loan by Certificates of Indebtedness

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CIRCULAR NO. 89

FEDERAL RESERVE BANK
O F N E W YORK

New York, November 7, 1917

MANNER OF MAKING PAYMENTS ON SUBSCRIPTIONS TO
SECOND LIBERTY LOAN—NOVEMBER 15, 1917.

To THE CASHIER:

On November 15, 1917, large payments on account of subscriptions to the second issue
of Liberty Loan Bonds will be made to this bank. In order that this may be done without
inconvenience or disturbance to the money conditions, it is considered not only desirable but
essential that as large a proportion as possible of the payments be made by book credit or by
Treasury certificates of indebtedness. Payments by book credit will avoid any actual transfer
of funds on that date, and will permit the amounts thus credited to remain on deposit with
the banks of this district, subject to withdrawal only according to the needs of the Government.
It is urged, therefore, that if your institution has not already qualified as a depositary,
it arrange to do so immediately or plan to make such payment due on your subscription through
one of your correspondent banks which has qualified.
The importance of prompt action in this matter cannot be over-emphasized. If you do
not desire to qualify as a depositary, will you either write or telegraph the correspondent
upon whom you would otherwise draw your draft) to make payment for you by book
credit.
Banks in this district making payments for others either by book credit or cash must
give us the name of the bank or banks whose subscriptions are to be thus paid.




Respectfully,
L. F. SAILER,

Cashier.