The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BOARD ' • WASHINGTON x-3b'S3 April 11, 1^23. Subject: Currency Shipments > Preparation and Mailing. Dear S i r : On April 6th I received from the Third A s s i s t a n t P o s t master General a l a t t e r , enclosing copy of r e p o r t rendered "by Post O f f i c e Inspector William Pearson dated March 3r<*> and copy of l e t t e r from the Chief Inspector, Post O f f i c e Department dated March 24th in which " i t i s recommended, in the i n t e r e s t of s a f e t y of valuable matter sent by banks in the r e g i s t e r e d mails, t h a t a more systematic and s t r i n g e n t method of preparing and mailing remittances be followed not only by the Federal Reserve Banks and Branches but by other banks, many of which are members of the Federal Reserve System"Inspector Pearson's r e p o r t has r e f e r e n c e p a r t i c u l a r l y to a shipment by the F i r s t National Bank of Fargo, Worth Dakota, on August 4 , 1922, of $20,000 in currency to the F i r s t National Bank of St« Paul and the Second National Bank of Minot, North Dakota* Both r e g i s t e r s were fredeived by t h e addressees in good condition With lead seals i n t a c t but short in sums of $300 and $500 r e s p e c t i v e l y . The r e p o r t says: " I n v e s t i g a t i o n a t the mailing bank disclosed t h a t currency shipments are prepared a t t h a t bank in the following manner: The money i s counted by a t e l l e r who places several rubber bands around i t , no wrapper or twine being used, and in t h i s condition encloses i t i n a canvas coin sack which i s handed to a bank messenger f o r s e a l i n g and mailing. Lead s e a l s alona are used in the s c a l i n g , and as s e a l s and s e a l ing device are l e f t in the custody of the messenger or messengers , who are f r e q u e n t l y l e f t alone i n the bank, and in s o l e possession of the money, a f t e r a l l other employees have gone off duty f o r the n i $ i t , the opportunity f o r r i f l i n g i s great." and concludes as follows: " I t was learned t h a t i t i s the p r a c t i c e of banks throughout the country, including Federal Reserve Banks, to enclose currency l o o s e , or with rubber bands around i t , in canvas o - 2 - x-36.,3 coin s a c k s . I t i s obvious t h a t t h i s i s a bad p r a c t i c e , and i t i s recommended thav the Department i s s u e to p o s t masters such i n s t r u c t i o n s a s p i l l o r i n g about a c o r r e c t i o n of t h i s u n s a t i s f a c t o r y c o n d i t i o n " . The Chief I n s p e c t o r i n commenting upon the r e p o r t of I n s p e c t o r Pearson's says: " I t w i l l be observed t h a t the money i s not p r o p e r l y p r e pared f o r m a i l i n g and the lead sealed s a c k s , t o g e t h e r with the s e a l i n g d e v i c e s , a r e l e f t in the custody of the bank messenger or messengers, who a r e f r e q u e n t l y l e f t alone i n the bank and have the o p p o r t u n i t y f o r s t e a l i n g the currency." If t h i s r e p o r t c o r r e c t l y d e s c r i b e s the method of m a i l i n g currency i n your bank and i n banks throughout t h e country i t would seem c l e a r t h a t a s a f e r method ought a t once to be adopted. Yours very t r u l y , Acting Governor. TO TEE GOVERNORS OF ALL F. E. Z-ANKS
@FedFRASER