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-3092 April 9, 1921. Dear Sir: There is enclosed herewith copy of a letter from the Acting Third Assistant Postmster General suggesting that i~ would be de13irable for the Federal Reserve Banks and Branches to aubmit a list of cities and towns to the Post Office Depart• ment to which shipments ot valuable registered mil are regular~ ly sent, or from which such shipments are regularly received to enable the Post Office Department to have an inve~tigation made by the field officials of the Railway Mail Service and a time ' ·schedule worked out so as to permit shipments to reach their destination during business hours, thus avoiding holding the mtter over rlight at some point in transit where adequate facil• ities for its protection ~1 not be available. !he Board believes that the ~tmost cooper-ation between the Federal Raeerve Banks;an4 the Post Office Department is de .. sitable in this connection and requests that a list of cities and towns to whiCh 'Valuable registere4 mail is sent regulatiy or from> which such shipit~ents a.re regularly received be forwarded to thfit Board for transmittal to the Post Office Department •. In this connection, there is also enclosed for your inf oration and such action as you my deem necessary,. a. copy of a letter which th~ Board has received from DeLanoy & DeLanoy, advising tha~ in view of the unprofitableness of registered mail · . insurance:, the underwriters may increase the rates on this kind. of insurance and in which suggestion is .rrade similar to that· referred to above by the Post Office Department that tho Federal Reserve Banks and Post Office Department cooperate to reduce th~ risk in connection with these shipments; also suggesting that the Federal Reserve Banks keep a record of the serial numbers of new notes shipped in order that stolen notes may be more easily detected. Very trul;r youra~ G o v e r n o r. To the· Cha.irman of all Federal Reserve Banks 4 r-)··) i<'vi 'l. • X-3092-a. POST OFFICE DEPARTMENT Third Assistant Postmaster Gener.al Washington, D. C. April 7, 1921. Honorable w. P. G. Harding, Governor, Federal Reserve Board, Wa.shingtcn 1 D. c. Althougb the details have not been received in this Office, it is understood that there recently occurred, on a. Saturday evening, at Bisbee, Ariz., a. hold•up in which bandits obtained from the post office valuable registered uail some of which wa.s possibly Federal Reserve matter. In this cormection it is thought ·possible that Federal Reserve u.a.tter of considerable value is in some instances being held overnight at a po~t office, or poseibly over Sundays or holidays, perhaps withou-t ad.equata prot&ction beca.use of the lack of sa.fe or vaUlt facilities or police or watchmn protection, which might be avoided were the dispatch so t~ed1 where practi~ble, as to cause the registered matter to reach its destination dwing banking hours, or to avoid holding the matter overnigbt a~ same point in transit where adequate fa.cilitias for ita protection 'IJJiJ,y not be a. vailable., . It is therefore believed that it might be advisable for the ~aera.l Reserve Banke and branches to submit a list of the cities and towns to which they regularly dispatch, and from which they · re~arly receive, large values by registerea mail. This will enable the Department to have investifY!.tion mde by the field officials ot the railway mail service, for the purpo~e of ascertaining what dispat cnes a.re preferable for and from the cities with w.hi.cb. the Federal Reserve Banks and branches exchange registered mil, and to instruct the postmasters concerned accordingly. Your views re~rdiug the matter will be appreciated. Respectfully, (Signed) I. J. BARROWS Acting third Assistant Postmaster General. ,. . • DELANOY & DELANOY 27 William Street New York April 5, 192.1. Mr. R. G. Emerson, Assistant to Governor1 Federal Reserve Board, Treasury Department1 Washington., D. C~ Sir:Registered Mail Insu~nce for Reserve Banks The very large losses of the past few months which have continued the unprofitable experience of the entire year 1920 have created considerable doubt in the minds of insurance underwriters as to the future of the business, and While up to this writing no definite steps have bean taken to increase the low rates which the banks are enjoying such action is not unlikely. In the present situation we believe the Federal Banks could co-operata to reduce the risk and to materially assist in recovering stolen notes by Reser~ l: 2: Arranging ~ith the Post Office so that if possible shipments will be mailed so they will arrive at their destination in time fir the receiving post office to mke delivery the same day. In other words to arrange the shipments so that the minimum of risk will be encountered in transit and especially during delivery. This will require consultation with the postmasters and particularly the Post Office Inspectors in the various reserve bank cities who no doubt will be glad to advise in the matter, and we believe the special precautions wi~l justify some little rearrangement· in the method of handling such shipments. We understand tha.t in shipping new notes the Reserve Banks do not keep ~ny record of the numbers and in c~se a package is stolen the Post Office Department are not able to circularize t~e local b~nks giving the numbers of the stolen notes and are thereby deprived of one of the best methods Lnown for making prompt recoveries. We believe that when new notes are shipped from the Treasury Department1 Issue Division, 454 X-2092-b the numbers are recorded and when a package is stolen the Post ~Office Inspectors can immediately advertise the numbers and which frequently leads to the prompt apprehension of the thief. We wonder whether it would be possible for the Federal Reserve Banks to keep a record of new notes shipped, and submit the matter for your consideration. Respectfully submitted (Signed) J. L. SWAN Secretary.
@FedFRASER