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558
FEDERAL RESERVE BOARD
WASHINGTON
July 1~, 1923.
X-3777
stT.BJECT:
Currency Shipments.
Dear Sir:·
~e Board recently requested the Cozttllittee on Econ9W7 and Efficiency
to consider the subject of insurance~ Closely related to this subject
is that· of rates charged by the eJ!Press conpanies foz> the transportation
of currency and securities. At the present time 1 t is understood that
all ~cb ship~ts are made either by registered mail with outside insurance provided under the so-called registered mail insurance policies,
or by e~ress at rates which include insurance for safe-carriage, the
choice of method being deterrndned by cost.
About a lYear ago the e:x;press rates for such shipments were increased
which has increased rr.aterially the expense to the Reserve ·
Banks for the maJdng of these shipments. A study of the express rates
'now in effect discloses certain inconsistencies which it is felt may
afford a basis for securing a revision dov.nward. One of the important
questions is the cost of insurance on these shipments. Steps are being
taken to find aut the premmum rates in the various districts through
Messrs •. DeLanoy & DeLanoy. brokers for all, the banks. The determination
of the legality and reasonableness of rates c:narged. by the express
conpanies lies, in the first instance, with the Inter.state Comnerce
Compission. The whole question has already been taken up informally with
the Coumission and there are some reasons for feeling that a reduction
in costs may be obtained on one or more of the following grounds:
35~
or
4o%,
l..
I
That the ra.tes at present charged by the .American Railwa¥
Expre's Collllany on shipments of currency, which rates
are based upon value; are unauthorized ~in confl'ict
with the termsof the statu-te.
..
X-3777
- 2-
2.
That the rates generally are excessive and entirely out
of prcportian to the cost of the service rendered.
3· That the rates should be graduated so as to provide
smaller charges for each succeeding thousand dollar
unit of value after the first.
While it is still too early to indicate w~t, if any, actual· reducti'ons my be obtained, negotiations have now reached the point where
it is necessary to present the matter formally to the Interstate Commerce
Commission, and in this connection it is desired to obtain from each of
the Reserve ~anks certain information with respect to its shipments. Will
you, therefore, please forward as pronptly as possible the information
requested in the attached memorandum concerning shipments now being made
by your bank.
.
Very truly yours,
A. c. Miller, Chairman
Committee on Econonu and Efficiency.
TO BE SENT TO ALL GOVERNOR•
t~6.0
Ct.,./
. 'V'
·· ... X- 3777a.
FEDERAL RESERVE 31\N:C OF
Including Branches if any.
Information requested in Board's lette~ X-Jlll_ concerning currency
shipments by mail and express.
(The word "Currency" wherever used refers to both paper money and coin.)
1~
State total amount of express charges paid for shipments made during
the six months' period ending June 30, 1923, if possible classifying
the amount as follows:
a.
b.
c.
d.
{
Express
Express
Express
Express
charges
charges
charges
charges
on
on
on
on
outgoing paper money shipments $
incoming pape~ muney shipments
outgoing coin shi:frnen ts
incomii.1g coil'l shipments
'l'OT.AL
2.
)
3,
4~
What classes of currency shipments are now being forwarded or received
by your bank routed by express?
What classes of currency shipments, both incoming and outgoing, are
now routed by registered mail at fourth class postage rates insured?
What classes of currency shipments, both incoming and outgoing are now
routed by registered mail at first class letter postage rates insured?
5•
If there have been any incr~ases in rates charged by express co~anies
in your territory within the last two years, give dates of increases
and approxirrate percent of such increases,
co~arison of costs of shipping paper money b;r mail with cost by
express in form similar to the attached.
6. Submit
1· How do you ship gold coin at the present time? Show comparison of
costs by mail and by express.
8.
How do you ship minor coin (pennies and nickels)?
State rate basis and shipping charges per standard bag.
9·
How do you ship silver coin (10¢, 25p, 50p and $1.)?
State rate bas·is and shipping charges per standard bag.
..
&
X.,-3777-b
(Sheet 1)
TAJLE SHOWING COST OF SHIPPING PAPER MONEY IlY MAIL IN COMPARISON WITH COST OF
SHIPPING 3Y EXPRESS.
c
Denom.
No.of
Value
Bills in
Package
I
0
s t
Insurance
·Premium
0 f
Ma i 1
Reg. 4th Class
Fee
Postage
P.P.Zones
l &2
Fourth Class Mail Ship.
1,000
$1,000
$1.
2,000
2,000
3,000
3,000
4,000
4,000
2.
1,000
2,000
4,000
2,00G
6,000
3,000
4,000
13,000
1,000
5,000
5·
2,000 10,000
3,000 15 ,ooo
4,000 20,000
Sh
~
p me n t s
Total 14th .. Qlass
Cost Postage
Zones P.P.Zone
1 &2
3
.
Insurance
Premium
Reg. lit Clae.s
Postage
Fee
Total
Cost
as 1st
Class
Mail
c
0
Express
s t
0 f
Shipments
To
To
Total
To
Points
Points
Cost Points
Taking Taking
Zone 3 Taking
Next
.Minimum Next
Highes
t
Highest
Rate
Rate
Rate
••
X-3777-b
c0
Denom.
No.of
Value.
13ills in
Package
First Class Mail Ship.
$1.
1,000
$1,000
1,000
2,0CO
1,000
5,000
5·
10.
1,000
10,000
20.
1,000
20,000
1,000
50,000
50·
100.
1,000 100,000
s t
Insurance
Premium
c0
o f
Ma i 1
Reg. i4th Class
Fee
Postage
P.P.Zones
1 &2
Sh i p me n t s
Total Il-tth Class
Cost . Postage
Zones P.P.Zone
1 &2
3
X
X
E~press
(Sheet 2)
s t
0
f
Shipments
To
To
Total
To
Points
Points
Points
Cost
Zone 3 Taking Taking TaJdng
Next
Minimum Next
Hj:--ghest Highest
Bate
Bate
Bate
X
X
X
X
X
X
X
X
X
X
X
X
Approximate percentage
of rr£;. i.l s.h~_prnent: s made
to p~L1ts wi ti:1in each
parcel post zone.
Approximate percentage
of shipments that would
be made to points within each express rate
zone assuming all paper
money shipments were to
be made by express.
Note:
Provide additional columns for zones 4 & 5 i f necessary to cover all points in your district.
@FedFRASER