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W. P. G. HARDING, GOVERNOR ALBERT STRAUSS, VIC I GOVERNOR ADOLPH C. MILLER CHARLES S. HAll LIN HENRY A. IIOEHLENPAII DAVID P. HOUSTON ' SECRETARY OF THE TRUSURY CHAIRMAN FEDERAL RESERVE BOARD JOHN SKELTON WILLIAMS COMPTROLLER OF THE CURRENCY W. T. CHAPIIAN, SECRETARY Jt. G. EMERSON, ASSISTANT SECRETARY W, II. IMLAY, FISCAL AGENT ADDRESS REPLY TO WASHINGTON fEDERAL RESERVE BOARD July 16, 1920.. . -.. X-1980 Subject: C3.shing Government '1arr:1.nts and Checks Drawn on the Treasurer of the United States for Disbursing Officers. Dear Sir:Referring to the Board's letter of June X-1944, 7, 1920, on the subject of "Comments by the Federal Reserve Board on recommendations made by Governors of Federal Reserva Banks at their conference with the Federal Reserve Board, April 7th-10th, 1920", and ;1ith particular reference to the ' discussion by the Boa.rd of Topi.c 4, "Cashing Government warrants and checks drawn on the Treasurer of the United States for disbursing officers", one of the Federal Reserve B:mks has made inquiry as to the protection afforded a. Federal Reserve Bank1 by telegraphing to the Treasurer of the United States as to 'ii'hether or not the b:J.la.nee to the credit of a. pa.rt1~ula.r disb~rsing officer is sufficient to meet his check presented for payment at the Federal Reserve Bank, in the event this disbursing officer h1s other checks outstanding I ' ~hich might be presented at Washington for payment prior to receipt by the Treasurer of the check cashed by the Fede~l Reserve Bank and which would exlu..ust his ba.la.nce with the Treasurer of the United ;, : .... States. X-1980 There is quoted below reply received from Assistant Treasurer of the United States with reference to this inquiry~ "ln compliance with your request of July 12, the· follo·Ning is submitted relative to the methods used in reserving sufficient balance in the aco_otmt ot a disbursing officer to make payment on a check which has been certified to ~ Federal reserve bank requesting information a.s to sufficient funds to make payment thereon. · . "When such request is rt:lceived fran a Federal reserve ba.nk1 notation of the amotmt of such check is nade on the led~r ~ccotmt of the disbursing officer and that part of the balance is held in reserve to meet the check. fflf the Treasurer's officer, subsequent to the telegraphic a.dVioe given Feden.l reserve banks, should receive checks from other sources which would not leave a sufficient balance in the officer's account to meet the check \vhich has been certified to a Federal reserve bank, payment on checks received from other sources would be refused and the Federal re~ne bank, paying upon the Trea.surerts telegraphic advice, would be thoroughly protected. "This work has been thoroughly systemized so that these certifications are followed up and if, for any reascm, the bank requesting the certification of the check doss not present it in due course, the mtter is adjusted by correspondence with the bank. In other words, the Federal. reserve bank that pays on telegraphic advice that balance in officer's account is sufficient, ~s as thoroughly protected as if the check were presented and immediately charged in the account of the drawer." Very truly yours, Assistan$ Secretary. To Governors of all F.R. ' Bank~ except Kansas Citx r. 670
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