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CIRCULAR No.
24.
(Modifying Circular No. 7.)
FEDERAL RESERVE BANK OF N E W YORK
6 2 CEDAR STREET
NEW YORK, May
26,
1915.
To THE CASHIER.
SIR:
INAUGURATION
OF
COLLECTION
SYSTEM
In accordance with the plan outlined in Circular No. 22 dated April 20, 1915, the intradistrict collection system of the Federal Reserve Bank of New York will become effective on
June 1, 1915.
An alphabetical list of the member banks which have elected to join the collection system is
appended hereto. On the first and fifteenth day of each month, if any changes have occurred,
a corrected list will be forwarded.
The Federal Reserve Board has announced that it has added to District No. 2 the twelve
northern counties of New Jersey. The transfer of the 131 member banks in these counties
from the Federal Reserve Bank of Philadelphia to the Federal Reserve Bank of New York will
be effected on July 1, 1915. These banks, a number of which have joined the collection system
of the Federal Reserve Bank of Philadelphia, will, when transferred, be eligible to join the collection system of the Federal Reserve Bank of New York.
Only checks or drafts drawn on and received from the member banks which have joined
the collection system, and which appear on the appended list, will be received. Such checks or
drafts will be credited on receipt at par to the sending bank and charged and forwarded direct
to the bank on which they are drawn.
Whenever experience may prove that it is necessary, member banks may arrange with their
other reserve agents to make such regular transfers of funds as may be required to meet charges
against their accounts without impairing their reserve balances with this bank.
On the other hand, upon request or by standing order filed with this bank, such excess
balances as may be built up by a surplus of credits over debits may be transferred to a New
York City reserve agent, thereby preventing unnecessary loss of interest on excess reserves.
Any member bank joining the collection system is at liberty to extend to its depositors the
privilege of stamping their checks "Collectible at par through the Federal Reserve Bank of
New York," which will provide for the collection of all such checks at par.
An indorsement stamp for use on all checks or drafts remitted to the Federal Reserve
B&nk of New York will be forwarded to-morrow to each member bank which has joined the
collection system.
CHECKS ON OTHER FEDERAL RESERVE BANKS:
On June 15, 1915, this bank will discontinue accepting checks or drafts drawn on other Federal reserve banks for immediate credit, with the exception of those drawn on the Federal
Reserve Banks of Boston and Philadelphia, which it will continue to receive, as at present,
for immediate credit at par.
Checks or drafts drawn on the nine other Federal reserve banks will be received for "collection" only and will be credited to the account of the member bank depositing them, subject
to final payment, in accordance with the following time schedule:
Federal
Federal
Federal
Federal
Federal
Federal
Federal
Federal
Federal
Reserve
Reserve
Reserve
Reserve
Reserve
Reserve
Reserve
Reserve
Reserve
Bank
Bank
Bank
Bank
Bank
Bank
Bank
Bank
Bank
of
of
of
of
of
of
of
of
of
Richmond
Atlanta
Cleveland
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
I day after receipt
2 days "
"
2 "
"
"
2. "
"
"
2 "
"
"
2 "
"
"
2 "
"
"
3 "
"
"
6 "
"
"
Items drawn on the above named banks should not be included with other "cash" items forwarded for immediate credit, but should be listed on a separate sheet and forwarded as "collection" items.
Advice of credit will be forwarded on the day credit is made to the member bank's account.
TRANSFER
{/ •
SYSTEM
In order to provide a direct and economical method of effecting transfers of funds by
either mail or telegraph, the Federal Reserve Banks are inaugurating a Transfer System
simultaneously with their Collection System. Through this Transfer System any member bank
may order funds transferred by either mail or telegraph (a) to a member bank within its
district, or (b) to a member bank outside its district. Sample forms for ordering such transfers
are enclosed and additional forms will be supplied on request.
For transfers by either mail or telegraph within this district, no charge will be made.
For transfers by mail outside of this district, it is not anticipated that a charge will be
made, unless the condition of the domestic exchange market should necessitate the shipment
of currency to cover such transfers. For transfers by telegraph outside of this district, a
charge will be made, covering
(a) The cost of telegraphing, and
(b) Interest at the rate of 2% for the time which would be required to make the
transfer by mail, and
(c) The prevailing charge, if any, for mail transfers.
The development of a Federal Reserve Transfer System, particularly for use between
member banks in different districts, is in the interest of sound banking practice, and its use
by member banks in this district is recommended whenever practicable.
Member banks in this district, are at liberty, as heretofore, to draw on this bank and
send such drafts outside of this district, and all other Federal reserve banks have advised that,
for the present, they will receive such drafts from their member banks for immediate credit
either at par or at the market rate for New York exchange.
Respectfully,
B E N J . STRONG, JR.,
Governor.
LIST OF BANKS WHICH HAVE JOINED THE COLLECTION SYSTEM OF THE
FEDERAL RESERVE BANK OF NEW YORK.
JUNE i, 1915
Albany, N. Y
" "
" "
Amsterdam, N. Y
Bronxville, N. Y
Brooklyn, N. Y
" "
" "
" "
Buffalo, N. Y
"
" "
" "
Cazenovia, N. Y
Dundee, N. Y
Elmira, N. Y
Far Rockaway, N. Y
Glens Falls, N. Y
" "
Granville, N. Y
Greenwich, N. Y
Ithaca, N. Y
"
" "
Larchmont, N. Y
Lockport, N. Y
Newburgh, N. Y
New York, N. Y
" "
"
"
" "
"
"
" "
"
"
" "
" "
"
"
" "
" "
"
"
" "
"
"
" "
" "
"
"
" "
"
"
" "
*f
"
" "
"
"
" "
"
"
" "
"
"
" u
"
"
" "
First National Bank
29-8
National Commercial Bank
29-7
N. Y. State National Bank
29-1
First National Bank
50-135
Gramatan National Bank
50-668
First National Bank
1-356
Nassau National Bank
1-118
National City Bank
1-352
Peoples National Bank
1-385
Central National Bank
10-24
Marine National Bank
10-2
Third National Bank
10-6
Cazenovia National Bank
50-685
Dundee National Bank
50-607
Second National Bank
50-108
Natl. Bank of Far Rockaway.... 1-436
First National Bank
50-256
Natl. Bank of Glens Falls
50-255
Washington Co. Natl. Bank
50-484
First National Bank
50-748
First National Bank
50-262
Tompkins Co. National Bank
50-261
Larchmont National Bank
S°~77^
National Exchange Bank
50-223
Highland National Bank
5°- I 74
\merican Exchange Natl. Bank.. 1-21
Bank of New York, N. B. A
1-1
Battery Park National Bank
1-232
Bronx National Bank
1-416
Chase National Bank
1-74
Chatham & Phenix Natl. Bank.. 1-30
Chemical National Bank
1-12
Citizens Central Natl. Bank
1-36
Coal & Iron National Bank
1-99
East River National Bank
1-59
Fifth National Bank
1-82
First National Bank
1-65
Garfield National Bank
1-81
Gotham National Bank
1-244
Hanover National Bank
1-33
Importers & Traders Natl. Bank.. 1-53
Irving National Bank
1-67
Liberty National Bank
1-91
New York, N. Y
"
"
"
"
"
"
"
"
"
"
"
"
Nyack, N. Y
Ogdensburg, N. Y
Ossining, N. Y
Perry, N. Y
Port Jefferson, N. Y
Ridgewood, N. Y
Rye, N. Y
Schenectady, N. Y
Syracuse, N. Y
" "
Troy, N. Y
Tuckahoe, N. Y
Westfield, N. Y
White Plains, N. Y
Lincoln National Bank
1-80
Market & Fulton National Bank.. 1-42
Mechanics & Metals Natl. Bank.. 1-4
Merchants Exchange Natl. Bank.. 1-13
Merchants National Bank
1-3
National Bank of Commerce
1-23
Natl. Butchers & Drovers Bank.. 1-15
National City Bank
1-8
National Park Bank
„. 1-54
New York County National Bank. 1-71
Seaboard National Bank
1-85
Second National Bank
1-63
Union Exchange National Bank.. 1-100
Nyack National Bank
50-457
Natl. Bank of Ogdensburg
50-240
Ossining National Bank
5° _ 3 I 9
First National Bank
50-463
First National Bank
50-555
I_
Ridgewood National Bank
437
Rye National Bank
50-845
Union National Bank
50-90
First National Bank
50-36
Salt Springs Natl. Bank
50-34
Manufacturers Natl. Bank
50-64
First National Bank
50-941
Natl. Bank of Westfield
50-523
First National Bank
50-234
[1464R]
^
191
F E D E R A L R E S E R V E BANK
OF N E W YORK
DEAR SIR :
Please charge our account and make the following transfers by
mail
,
,
Credit account of P'ederal Reserve Bank of
for use of
of
Credit account of Federal Reserve Bank of
for use of
.of.
Credit account of Federal Reserve Bank of^
for use of
of
Yours truly,
Cashk-r.
Bank of
FEDERAL RESERVE BANK
OF N E W YORK
June 2, 1915•
To the Cashier,
S i r :
The Federal Reserve Board has informed this bank that Federal
Reserve Districts Nos 0 2 and 3 have been readjusted, and that the county
in which your bank is situated will be included in District No. 2 on July
1, 1915.
You will be duly advised as soon as a method has been deter-
mined upon for the transfer of your stock investment and reserve deposit
in the Federal Reserve Bank of Philadelphia to the Federal Reserve Bank
of New York,
The intra-district collection system of this bank became operative on June 1, 19151 and as soon as your bank has become a member of the
Federal Reserve Bank of Nev/ York, you will have the opportunity of joining
the collection system.
In order that you may bring this matter before your directors for
such action as they may see fit to take, v/e enclose herewith our Circulars
Nos. 22 and 24, and a letter sent to each member bank on April 20th, together with a blank form of resolution for execution by your bank, if desired,
and extra copies of the list of banks that have already joined.
The names
of all banks whose resolutions are received not later than June 30th will
appear in the revised list of members of the collection system, to be published on July 1st.
We are also enclosing herewith the following documents for execution by the officers or directors of your bank, in anticipation of your
taking up active relations with this bank:
1.
Resolution authorizing certain designated
officers to discount commercial paper.
2.
Specimen signature card to be executed by officers.
FEDERAL RESERVE BANK OF N E W YORK
June 2, 1915-
We would also appreciate it if you v/ould forward to us a list
of all the officers of ycur bank for the current year, certified by either
the secretary of your Board of Directors or cashier.
A book of blank drafts for use in drawing upon your deposit held
with us is being prepared and will be forwarded to you some time before the
first of July,
For your further information, a binder is being prepared for you
similar to that which has already been furnished to each of our present members, designed to hold all circulars issued by the Federal Reserve Board and
by the Federal Reserve Bank of New York.
This v/ill be sent to you in about
three v/eeks with a full set of all circulars of both the Board and the bank
v/hich are now effectiveWe wish to v/elcome your bank as a stockholder and member of this
bank, and to express the hope that you v/ill avail yourself of our facilities
to the fullest degree, and that we may have the pleasure of receiving your
officers at the bank in person in the near future.
Respectfully,
Governor.
JFC/LCE
Encs.
@FedFRASER