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. . 534 W. P. G. HARDING, IIOVIRMOR ALBERT STRAUSS, VICE GOVERNOR lEX OFP'ICIO MIEMBIER8 r ADOLPH C. II ILLER CHARLES S. HAll LIN CARTER GLASS SECIITAIY OP' THE TREASURY ,._ CHAIRMAN I, FEDERAL RESERVE BOARD JOHN SKELTON WILLIAMS COIIPTIOLLIR OP THI CURRENCY J. A. BRODERICK, SECRETARY W. T. CHAPMAN, ASSISTANT SECRETARY -W.II.IIILAY, FISCAL AGENT ' ADDRESS REPLY TO WASHINGTON FEDERAl. RESERVE BOARD X-1624 - SUbject: Use of teased Wire System Facilities. Dear .Sir: ' .. At a recent meeting of the .Board attention was callet ·to the rapidly increasing cost of operatins :the leased· wire system. The experme·~ot the main and branch line service at the present time 'is· at the rate of. about $20,000 per month. The Board recognizes, of course, that it is essential for the system to have adequate facilities to transmit messages pron:ptly and accurately .. It is probably a tact that comparatively few member banks are now making use of the te~egraphic transfer system. A sugge~tion has been made that the member banks deriving the benefit should be required to nake some contribution toward de.frqiJlg the expense, and that a nominal charge of fifty cents for ~ach telegraphic transfer Should be made. The qu.esti~n has be~n rai$ed as to the extent to which the wire transfer system is of benefit to customers of member banks and whether cu~tomers are charged for transfers made · without cost to Jiember bazllcs. An expression of ~inion as to the above is requested. The Boarci wishes to have full and detailed information as to the. use which is being made of the present wire facilities and requests that detailed records be kept ·beginning August 1st. Based upon reports made by the. offices on the main line system, a record is kept by the Federal Reserve Bank of Chicago as follows: • I. 1. I 2. 3· 4. • • Wire rental and operators• salaries. Numb,er of messages handled on each circuit. (Includes messages in ··either direction) NUmber of messages transmitted by each office. NUmber of words transmitted to eaCh office classified as follows: Bank; Fiscal .Agent, war Finance •. :;:a.... In addition td this report. which is tb be made to the Federal Reserve Bank of Chicago as heretofore, yoil a.re reQlested to forward to the Federal Reserve Board as soon as practicable after the first of each month, a report for the previous month giving the fol~owing information: Intra.district branch wire lines. (.A) I- Monthly expense - wire rental and operator~ salaries; other expenses. Federal Reserve Board. (Messages and words). 1. (a) Gold settlement. clearings and transfers. (b) Daily and weekly reports of condition. (c) All other reports and usssages. 2. Treasury Department and Fiscal Agency - number of words sent to or for account of Treasury. 3. Wire transfer of funds (exclusive of Treasury transfers). (a) Number .and dollar amount df transfers by days - average for month. (b) SUbdivision showing· transfers tor member banks and those for account of customers of member banks. (c) SUbdivision showing amount transferred to each· Federal ··Reserve Bank 4 t '. (d) Number of merrber banks making wire transfers dUring month. (e) Name and location of member bal.lks transferring $500,000 or more during month. giving totai number and total amount transferred• .. i· 4. Other messages between Reserve Banks (number of messages and words). Kindly acknowledge receipt. Very truly yours, •, .. ' ,. tetter to chairmen of all Federal Reserve Bal:lks. I. 2. branch offices. I I Number of messages and words transmitted by the head office to the branch offices and by branch offices to the head office and other brandh offices. (i) Classification of messages handled by head offices and I • l. Governor. 535
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