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.. .. ~ ~~ FEDERAL RESERVE BOARD WASHINGTON February 21, 1922. X-333 7 SUBJECT: ·~' ~/ire Transfers of Funds. Dear Sir: Upon recommenda-tion of the Federal· Reserve Leased Wire Committee, the Federal Reserve.Board has adopted the follcwing rules and regulations for the guidance of the Federal Reserve Benk~; 1. Telegraphic transfers should be accepted from and paid to meinber banks only. (However, as some of the Federal Reserve Banks are under obligations to accept telegraphic transfers from their non-member clearing banks, they may for the present cor.tinue to make such transfers.) 2. The descriptive data in telegrams transferring fur.ds should be limited to nmae of the sending member bank; name of its customer requestin& transfer, if shown, name of member bank receiving credit,' and name of other beneficiary, i f stated, for whose account credit is given. 3. Descriptive data in wire advice of payment or nonpayment of collection items forwarded. between Federal Reserve Banks should be confined to the collection number., name of payer or place of payment, and amount. 4. In addition to the usual mail advice to payee banks of telegraphic transfers credited to t!'leir account, immediate advice by telephone or telegrai'h shoilld be given by the Federal Reserve Bank receiving the transfer~ except in cases where credited ·oank has stated that vvj re advice is unnecessary or where the nature of the transaction or the amount Lwolve:i indicates that the additional expense is not justified. t I f .. ' 5. Telegraphic transfers for conswM:ation on date of receipt ·should not l::e accepted by Federal Reserve Ba,;..ks later than thirty (3::>) mh:..utes prior to t,he closing hour of the Federal Reserve Bank to which transfer is made. Any transfers requested after that .hcJr may be male at the discretion of the Federal Reserve 3ank receiving credit. 6. Any loss resulting from neglig,ence on the part of the Federal Reserve Syste.n in the transmission of telegrams over leased wires through relay statior~s should be borne by the sending Federal Reserve Bank, unless responsibility Gan be definitely fixed u~on the Federal Reserve 3an~ to which the transfer is made. .. ......r•·.r~ ~:.J X- 3337 -2·· 7• The code should be used in cor:I~ection vv'ith all messages invol vir.g the tra~1sf er and rayment of funds 1 and 1 in the interest of economy 1 all ottsr telegrams should be coded where the use of the code will apprecj.a'bly shorten the message. S. Telegrams should be worded as concisely as possible 1 an4 all unnecessary tele;raphin6 elLninated. To enforce this each bank should adopt some plan vvhereby any misuse of the leased wires will be b::-ou;;ht to the attention of an officer whose duty it will be to co~runicate with the oribi~ating depart.nent, or 1 in the case of incomin(:; i• ires 1 with the sending off ice. 9. Leased wires should not be used in tracil:,~ collection i terns fornarded by a member bank in one district direct to a Federal Reserve Bank of another district, proceeds of which are to be credited to the Federal Reserve Bank of the district in which the endorsin~ bar~ is located. \1..._. . ' t ' . r~ While the above rules a?·.:i ;·egulations are intended as a guide to tr.e Federal neserve Barcks themselves 1 the follow-ing clauses are recommended for unifor~ use by all Federal rteserve J~nks in a circular to member banks relating to wire transfer of funds; 1. "The Federal Reserve oank of will use due care and diligence in the transfer of fund& to the receiving Federal heserve Bank for credit to the account of 1 or payment to 1 the payee bankJ out will r"ot be responsible for e~·rors or delays in the transfer of such funds caused by circumstances beycnd its control." 2. "Telegraphic transfers will be accepted from an:i paid to member banks only." 3. "In order that important messa.;es may not be delayed, rr:ember banks are asked to co-operate with us by not makin6 request for telegraphic transfers for small amountsJ or those which can be made as well throu.;h the mails." ll: addition a schedule should be included showing the closint; time for receivin~ requests for transfers to be ~ade to other Federal Beserve 3anks. Very truly yours 1 G o v e r n o r. TO THE GOVEHNORS OF ALL FEDERAL RESERVE BANKS. ,_.
@FedFRASER