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FEDERAL RESERVE BOARD
WASHINGTON
. X-3294
January 6, 1922.
SUBJECT:
Reports from Clearing Houses of Total Debits to Individual
Account.
Dear Sir:
At the last annual Convention of the American Bankers Association held in Los An 0 eles, the following resolution was passed 1Y
the Clearing House Section:
1
Whereas1 at a meetin€!, of the Clearing House Section of the
American Bankers Association at its annual convention held at Los
Angeles 1 it was the sense of the meeting that it should take definite
action on the question of the abolishment of the publication of bank
clearings 1 and in lieu thereof that total debits 1 which it is believed
represent more clearly the total volume of business transacted 1 be
published 1 and
Whereas, it was the sense of the meeting that the publication
of such information should be discontinued 1 that the information shl)uld
be furnished to the managers of the clearing houses 1 not only by member
banks 1 but by non-clearing institutions - therefore 1 be it Resolved 1
that the Clearing House Section of the American Bankers Association
heartily endorse the stand taken by the St. Paul Clearing House Association1 which on September 28, 1921 1 adopted the following resolution:
Resolved 1 That beginning January 1, 19221 or such earlier date
as may be generally agreed upon, the members of this Association and such
other banks as clear through a member bank 1 be required to report to the
manager each day at time of clearing1 the total of their individual debits~
of the preceding day 1 with the· view 1 on the part of this Association, of
using such individual debits in publications hereafter 1 in lieu of
clearing figures, it being the belief that total debits more clearly
represent the volume of business transacted in this City 1 and be it further
Resolved1 That the Clearing House Section recorr~ends that
every clearing house association adopt a reso~ution of similar purport
so that after January 1, 19221 the publication of total daily transactions shall be given the publicity now given to daily clearings.
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X-3294
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The Board understands that it is the desire of the Clea.hng House
Section to cooperate with the Board in compiling total debits to individual
accounts, and the Secr~tary of the Section under date of December 15 requested all clePrin? house managers to report weekly to the Federal Reserve
Bank of their District their total debits to individual accounts. The
Board hopes that the manager of each cle~ring house association in your
District will m~ke these rerorts to your Bank. For your information there
is enclosed a list of ~n clePring house associations in your District which
are not now submitting weekly reports ~nd the Board req,ues ts that you communicate with the manager of each of these associations with a view of having
him telegr~=rph to your B.ank {at the ex1"ense of the Board) each week beginning
with February 1, 1922, the total amount of debits to individual accounts made
by banks which are members Qf the c lecrina house and banks which clear through
clearing house members, i.e., so called ttle""ring non-members.
The Board has been advised thet the Clearing House Section, f'.merican
Bankers .Associ::?ction, has sent to the manager of ;ech cleerinf house a.ssociation a form upon which reports should be made to the Federal Reserve
Banks, and that there are printed on the fom instructions regPrdinf?: the
charges which should be included in the reports. The instructions referred
~o provide for the inclusion of debits to expense and miscellaneous accounts
~n addition to other debits required to be reported under instructions issued
by the Board. In communicating with the managers of the cleering house associations it is requested thet you advise therr th.st debits to individual
accounts should represent charges to accounts of depositors other than banks
and should include only the following items:
. "Debits to accounts of individuc>ls, finns and corporations, and of the
Un1ted StPtes Government includin~ T:ar Loan deposit accounts, also debits
to savings accOU:nts » payments from trust ace ounts and certificates of
de:posi ts paid."
.~ebits in settlement of clearing house balancos, payments of cashiers'
checks, ch2rges to expense and miscellaneous accounts, corrections and
similar charges must not be included in figures. of debits to individual
accm.mts.
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flt the present time approximately 170 clePring house centers are reporting this infonn~>tion end we hope to increase this number materielly through
the cooperation of the Clearing House Section, their records showing 275
cle~ing house associations in the country.
Very truly yours,
G o v e r n o r.
(Enclosures)
To all Federal Reserve Agents.
@FedFRASER