Arrangements for Transfers of Liberty Loan Bonds


Arrangements for Transfers of Liberty Loan Bonds


New York Federal Reserve Bank




No date


A letter outlining the procedures for the transfer of Liberty Loan bonds.


Benjamin Strong Jr. Papers, New York Federal Reserve Bank





Dear Sir:
In order to complete arrangements for handling the large transfers of cash and credit which will be necessary at the time of payment for the next issue of Liberty Loan bonds, this bank desires to obtain certain information daily from the banks and trust companies of New York City to enable it to deal with the matter intelligently. The information desired is as follows:

FIRST Total amount of balances carried with the reporting institutions by banks, trust companies and savings banks located outside the City of New York.

SECOND Total amount of strict call loans carried by the reporting institution for the account of the out of town banks, bankers, firms and corporations.

THIRD Total amount of strict call loans carried by each reporting bank for its own account. (Call loans specified in 2 and 3 to be classified as strict call loans should generally be those made to brokers and security dealers, payment of which may be required on the day called, in accordance with stock exchange practice, or on at least not more than three days’ notice.)

FOURTH The amount of (a) unpledged obligations of the United States Government, (b) municipal warrants, (c) commercial paper and (d) acceptances owned by the reporting bank, which are eligible either for discount or as collateral for loans at the Federal reserve bank, (Definitiohns of eligibility of these classes of securities as specified by the Federal Reserve Act or by the regulations of the Federal Reserve Board are attached.)

FIFTH Securities owned by the reportinhg bank in addition to and not included in those reported under No. 4, and which may be accepted by the Federal reserve bank as collateral to secure Government deposits as prescribed by Treasury Department circular No. 61 and by subsequent rulings of the Department modifyintg the same. (A statementt of the securities defined by the circular and rulings referred to is attached. This is subject to changes as and when made by the Treasury Department of which you will be kept advised)

It is requested that reports be mailed to the Federal reserve bank close of business day each business day, commencing…Sept…… the figures to include the transactions of the day on which the report is made, and to be furnished upon forms which will be provided by this bank.If doubt exists as to the eligibility of any securities of the classes referred to, the officers of this bank will be glad to furnish any information required.This request is made pursuant to plans which are being developed by this bank in cooperation with the Liberty Loan General Committee of this district, with the object of facilitating the financing of the next Government loan so as to avoid unnecessary disturbance to the money market. A special committee consisting of Messrs. George F. BakerWalter E. FrewGates W. McGarrahCharles M. SabinFrank A. VanderlipJames N. Wallace, and Benjamin Strong, Chairman, has been appointed for the purpose of dealing with this matter. It is the belief of the committee that a prompt response to this request and the cooperation of the banks to whom it is addressed will be in the national interest.The committee will appreciate a response to this letter.

Original Format





New York Federal Reserve Bank, “Arrangements for Transfers of Liberty Loan Bonds,” No date, WWP18838, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.