Duke University Libraries 
 
 D03209564T 
 
TREASURY DEPARTMENT, C. S. A. ) 
 Richmond, March 14th, 1864, i 
 
 The President and Directors of 
 the Bank of 
 
 Gentlemen : 
 
 Under the recent act of Congress to reduce the 
 currency, it is provided that if any Bank of Deposit shall givo 
 its Depositors the 4 per cent. Bonds authorized by the Act 
 in exchange for their deposits, and specify the same on the 
 Bonds by some distinctive mark or token to be agreed upon 
 with the Secretary of the Treasury, then the said Depositors 
 shall be entitled to receive the amount of said Bonds in 
 Treasury Notes, bearing no interest and outstanding at the 
 passage of the act, provided the paid Bonds are presented 
 before the privilege of funding the said notes at par shall 
 cease. 
 
 By the first section of the act the privilege of funding will 
 cease on the 1st of April, 1864, east of the Mississippi, and 
 on the 1st of July, west of the Mississippi. It is obviously 
 impracticable to furnish the Bonds before the 1st of April, 
 and therefore, to give any effect to the provision of the Act, 
 the certificates issued by the Depositaries must be substitu- 
 ted for the Bonds. The Bonds being required by the Act 
 to be registered, the certificates must be conformed thereto 
 and must be assigned in the form usually required for Re- 
 gistered Bonds. By writing the words "for Deposits" over 
 the signature of the officer o\' the Bank, who shall assign the 
 certificate, a sufficient token can be established, and 1 pro- 
 pose that course to the Banks. 
 
 There is anotlicr matter in which I respectfully ask your 
 concurrence. 
 
It certainly will be a great object gained to adjust prices and 
 business operations as speedily as possibly to tbe new cur- 
 rency, wbich will be issued after tbe 1st of April. Tho 
 Banks bave tbe power to ]>ron)ote this object most e fleet «- 
 ally by accepting deposits in tbe old currency payable in 
 the new. If for every three dollars so deposited, the Banks 
 will give credit on their books tor two dollars payable in 
 new issues, tbe old currency would berated accordingly in 
 all transactions, and prices everywhere would have relation 
 to the new currency It woiibl also follow that so much of 
 the business of the country as can be transacted by checks 
 on Banks would be carried on as heretofore without actual 
 delivery of money, and so much time would be gained for the 
 preparation of tbe new issues. It is true that the Banks 
 will thus encounter the risk of not being supplied with new 
 notes, inasmuch as it is obvious that tbe means of sup{dy 
 are not adequate to the pressure which will suddenly be 
 thrown upon ibe Treasury. Tiiis pressure will be relieved 
 by the immediate issue of certiKcates and five hundred dol- 
 lar notes, and by tbe further issue of all denominations as 
 speedily as [)ossible. 
 
 I respectfully submit the matter for your consideration, 
 and request that your Bank will at its earliest convenience 
 issue an advertisement to the elFect, that it will accept de- 
 posits of all currency, except one hundred dollar notes, 
 payable in tbe new issues at the rate of two dollars of new 
 for three of old. 
 
 Very respectfully, 
 
 Your o'bt servant, 
 
 Secretary of Treasury, 
 
p6Rmalif!64 
 
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