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FEDERAL RESERVE BANK OF N EW YORK /"Circular N o. 4 3 2 5 1 L April 6, 19S6 J P A P E R CU RREN CY AN D COIN Revision o f Operating Circular No. 3 To all M em ber and N onm em ber Banks in the Second Federal R eserve D istrict: E nclosed with this circular is a co p y o f O perating Circular No. 3, Revised A p ril 4, 1956, which supersedes the p rior edition R evised effective A ugust 1, 1954. In addition to some editorial changes, the circular has been revised as follow s: Paragraph 27, which describes certain risks not assumed by us, contains new intro ductory material, and incorporates changes in subparagraph (a), on war and related risks; in subparagraph (c), on losses to the extent recoverable under any insurance, surety or indemnity; and in subparagraph (h), which now applies also to a shipment for our account. Paragraph 29 now applies also to shipments of paper currency or coin for our account. Paragraph 32 has been rewritten to bring it into conformity with changes in the regis tered mail insurance policies carried by us to insure, at the expense of nonmember banks, certain shipments of paper currency or coin made by us to them. Paragraph 37, which is new, contains an agreement by member banks with us regard ing certain shipments to us or for our account. Paragraph 38 (formerly 37) now applies also to a bank shipping or causing the ship ment of paper currency or coin for our account. Additional copies o f the revised operating circular w ill be furnished upon request. A llan S proul, P resident. Federal of Reserve N ew Y Bank ork r O p e ra tin g C ir c u la r N o . 3 1 L R e v U e d A p r il 4 , 1 9 5 6 J PAPER CURRENCY AND COIN To all Member and Nonmember Banka in the Second Federal Reserve D istrict: This circular sets forth the general terms and conditions regarding the handling of shipments of paper currency and coin between us and banks in the Second Federal Reserve District, and the risk of loss incident to such shipments and to shipments for our account. Unless otherwise indicated, all references to us apply equally to our Buffalo Branch, and banks in the territory assigned to the Buffalo Branch are requested to transact such business directly with the Branch as usual. Cooperation of banks in avoiding unnecessary shipments 1. In view of the heavy expense of maintaining this service, the continued cooperation of the banks in avoiding unnecessary deposits, withdrawals and shipments will be appreciated. To that end, banks are urged to observe the practice of interchanging fit currency and coin among themselves locally whenever feasible, and to refrain when ever possible from sending fit currency or coin to us when there is reason to anticipate need for money of like denominations in the near future. INCOMING SHIPMENTS TO FEDERAL RESERVE RANK OF NEW YORK Preparation and shipment of paper currency Preparation o f packages and bundles 2. Currency should be arranged, face and top up, according to denominations and in units, as follows: imination Number o f packages ( o f 100 pieces) to a bundle Amount $ 1 ,0 0 0 $ 1 ,0 0 0 10 $ 2 ,0 0 0 10 $ 5,000 $5 5 $ 5,000 $10 10 $ 1 0 ,0 0 0 1 to 1 0 $2 ,0 0 0 to $2 0 ,0 0 0 $20 $50 and larger should, wherever possible, be consolidated in units of 50 or 100 pieces of the same denomination to a package and either 5 packages or 10 packages of the same denomination to a bundle. Each such bundle should be marked “ Large.” $1 10 $2 5 Packages of currency in the $1, $2, $5, $10, and $20 denominations that cannot be arranged in bundles as above provided should not be forwarded to us but should be retained until additional quantities of such currency have been accumulated sufficient to complete appropriate bundle units. 3. Large size currency, gold certificates, and patched currency require special handling. It will be helpful, therefore, if banks will segregate such pieces from other currency and arrange them in pack ages of 1 0 0 pieces, if volume permits, without regard to denomination. Such packages should be made up in a separate bundle marked “ Miscellaneous.” 4. Each package should be bound with a paper strap, and each bundle should be well secured by cord or by a strong paper wrapper (such as kraft stock) three to four inches wide. Each strap should indicate the amount contained in the package, the name or initials of the person by whom prepared, and the name of the depositing bank. The same information for each bundle should be indicated on the paper wrapper securing the bundle, or if the bundle is secured by cord, the information should be shown on a face card that approximates the currency in size. Under no circumstances should rubber bands, pins, or clips be used instead of paper straps. Bundles to be shipped in sealed bags 5. Currency should be shipped in strong cloth or canvas bags, and each bag should be sealed with a lead seal, crimped, in such a manner that the contents will be well secured but the bag need not be damaged in opening and may be used again. A tag bearing the name of the sending bank should be attached to each bag, and the necessary postage stamps should be affixed securely to the back of the tag and not to the bag. No writing indicating the nature of the contents or stating the value thereof should appear on the bag or the tag. Shipments to be sent b y registered mail 6 . Currency in all denominations may be included in the same bag and should be sent by registered mail. Our deposit form (Head Office: Form Mon. 82; Buffalo Branch: Form B. Mon. 29) should be executed for each bag; copies Nos. 1 and 2 of that form should be enclosed with the currency, and copy No. 3 should be forwarded as indicated thereon at the time of shipment. Postage 7. Postage on currency should be prepaid at first class rates, plus the registry fee and the surcharge at the rate per thousand dollars or fraction thereof applicable to the parcel post zone in which the sending bank is located. It is not necessary to pay the additional fee for a return post office registry card, as copy No. 2 of the deposit form will be returned to the sending bank to show receipt of the shipment. As a registry fee is charged on each bag, shipments should be confined to as few bags as possible. 2 Mutilated or to m currency 8 . Mutilated or torn currency should be carefully mended on the back, and not on the face, with transparent paper in such manner as to preserve as nearly as possible the original design and size. Pins, clips and other metallic substances should be removed, as they will damage the machinery used in counting, punching and cutting cur rency and may cause injury to the handlers. Fragments 9. Mutilated currency, of which at least three-fifths of the origi nal proportions remain, will be received at its face amount. Fragments of less than three-fifths should be sent directly to the Treasurer of the United States, Currency Redemption Division, Washington, D. C., in accordance with Treasury Department Circular No. 55, copies of which will be furnished upon request. Preparation and shipment of coin T o be shipped in bags 10. Coin should be shipped loose in a strong cloth or canvas bag and sealed with a lead seal, crimped, in such a manner that the contents will be well secured but the bag need not be damaged in opening and may be used again. Coin should not be put in wrappers of any kind. Each denomination should be in a separate bag, the denomination and amount contained in each bag should be plainly marked on the ship ping tag, and, except as provided in paragraph 1 1 with respect to ship ments by insured fourth-class mail, the amount in each bag should be as follows: S ilver D o lla rs . . $1,000 in each b a g D i m e s ------ $1,000 in each b a g H a l f D o lla rs . . . N ickels . . . $1,000 in each b a g Q uarter D olla rs $1,000 in each b a g C e n t s ......... $ $ 200 in each b a g 50 in each b a g Method of shipment 11. All coin shipments should be sent by express,* charges collect if sent by a member bank, charges prepaid if sent by a nonmember bank, except that a bank located in a city or town in which express facilities are not available may ship coin by insured fourth-class mail. The amount of coin contained in each bag shipped by insured fourthclass mail should not exceed $2 0 0 , and the address tag attached to each such bag should be endorsed “ Examined at mailing office— Contains only fourth-class mail.” Our coin express shipment form (Head Office: Form C.CG.28; Buffalo Branch: Form B. CG.30) should be executed, and all copies should be mailed to us under separate cover at the time of shipment. Mutilated coins 12. Mutilated coins received by us will not be accepted at their face amount but will be sold at their bullion or metal value and credit * T he term s “ e x p re ss” and “ express c o m p a n y ,” as used in this circu la r, refer to the R a ilw a y E xpress A g e n cy , Inc. will be given for the proceeds. Silver coins are mutilated when plugged, fused together, or so punched, clipped, chipped, or otherwise mutilated as to be appreciably reduced in weight, or when so defaced as to be not readily and clearly identifiable as to genuineness and denomination. Minor coins are mutilated when plugged, fused together, or so defaced as not to be readily identifiable, or when so punched or clipped or otherwise mutilated as to show a material loss of metal. Paper currency and coin to be shipped separately 13. Shipments of currency and coin should be prepared and forwarded separately and the shipments should not include securities or other valuables. Credit for shipments of United States paper currency and coin 14. We will credit, on the date of receipt, but subject to verification, the amount of United States currency and coin shipped to us, plus the cost of postage, if any, on shipments by a member bank, and advice of such credit will be mailed to the sending bank. Canadian paper currency and coin 15. Canadian currency may be shipped to us by member banks at our expense, and may be included in the same bag in which United States currency is shipped provided the two kinds of currency are properly segregated within the bag. Canadian coin may also be shipped to us by member banks at our expense, but it should be shipped in a different bag from that in which United States coin is shipped. The amount of Canadian currency and coin should be entered as separate items on the printed forms pertaining to the shipment. Canadian currency and coin received by us will be converted into United States funds by sale at current market rates and credit will be given for the proceeds, and advice mailed, upon completion of the sale. OUTGOING SHIPMENTS FROM FEDERAL RESERVE RANK OF NEW YORK Paper currency and coin 16. We will furnish currency and coin in all available denomina tions. Currency will be forwarded by registered mail. Coin will be forwarded either by registered mail or by express at the option of the bank ordering the coin. We will pay the cost of postage and expressage incident to shipments to member banks. Fit paper currency 17. Fit currency will be furnished only in standard units, as follows: 4 Denomination Number o f packages (o f 100 pieces) to a bundle $1 10 $2 5 10 $5 10 5 $10 10 $20 1 to 10 Amount $ 1 ,0 0 0 $ 1 ,0 0 0 $ 2 ,0 0 0 $ 5,000 $ 5,000 $ 1 0 ,0 0 0 $2 ,0 0 0 to $2 0 ,0 0 0 $50 and larger. Withdrawals in these denominations should, wherever possible, be made in units of 50 pieces of the same denomination to a package, and either 5 packages or 1 0 packages to a bundle. New paper currency 18. We will furnish new currency in the $1, $2, $5, $10, and $20 denominations only in standard units of 1 0 0 pieces of the same denomi nation to a package. The amount of new currency we can furnish is governed primarily by the volume of fit currency on hand, and the furnishing of new currency may be suspended entirely or in part until any abnormal supply of fit currency on hand is sufficiently reduced. New coin 19. United States Mints supply us with new coin only when cir culated coin is not available. Therefore, we are seldom able to supply new coin. Requests for paper currency and coin 20. Requests for currency and coin should be made on forms sup plied by us (Head Office: Form Mon. 126 for currency and Form C. Pay. 12 for coin; Buffalo Branch: Form B. Mon. 127 for currency and coin). Urgent or emergency requests may be made, however, by telegram or telephone followed immediately by officially signed con firmation. In order that shipments will not be duplicated, the con firmation should be plainly marked as such. Whenever possible, the American Bankers Association code should be used in telegrams, and the appropriate test word, taken from the list of special test words supplied by us, should be used in each telegram or telephone conver sation. Member banks may send their telegrams collect; all other telegrams should be forwarded prepaid. Shipments are more likely to be sent and received in time to meet needs, of course, when banks anticipate their requirements and order currency and coin by mail far enough in advance to allow for delay in transmission. M ethod o f payment 21. In the absence of other arrangements, the amount of currency and coin shipped by us will be charged to the reserve account or nonmember clearing account o f the bank requesting the shipment. If a bank does not have such an account with us, the charge will be made to the reserve account of a member bank that has made appropriate arrangements with us. Time of shipment 22. Requests for shipments of currency and coin will be acted upon on the day of receipt unless otherwise directed, except that requests received after 3 o ’clock p.m. will be acted upon customarily on the following business day. Whenever a nonmember bank requests a shipment and sends us a bank draft in payment therefor, the shipment will be made only upon receipt of the proceeds of the draft in finally and actually collected funds. Contents of coin bags 23. Coins are shipped in standard bags containing the following amounts: Silver D o lla r s .. $1,000 in each b a g Dim es ------$1,000 in each bag H a lf D o lla r s .. . $1,000 in each b a g N ickels . . . Q uarter D ollars $1,000 in each b a g C e n t s ..........$ $ 200 in each bag 50 in each bag Advice of paper currency shipment 24. A form of receipt is enclosed with each shipment of currency and a duplicate copy of the form, marked “ advice,” is forwarded by ordinary mail to the consignee. The copy marked “ receipt,” which is enclosed with the shipment, should be executed by the consignee over properly authorized signature (s), and returned. If the shipment is not promptly received, we should be notified immediately by tele gram (charges collect) or by telephone (charges reversed) so that the shipment may be traced promptly. Advice of coin shipment 25. Two advices covering each shipment of coin are forwarded by ordinary mail to the consignee. The copy marked “ receipt” should be executed by the consignee over properly authorized signature (s), and returned. If the shipment is not promptly received, we should be noti fied immediately as stated in the preceding paragraph. RISK OF LOSS Shipments from or to member banks by registered mail and express Certain risks assumed b y us 26. Except as specifically provided in paragraphs 27, 28, and 29, we will assume: (a) All risks of loss incident to the shipment in conformity with the provisions of this circular, of paper currency or coin by a member bank in the Second Federal Reserve District to us by registered mail or express, from the time the shipment leaves the office of the sender until delivery to our office; and e (b) All risks of loss incident to the shipment of paper currency or coin by us, or for our account at our request, to a member bank in this District by registered mail or express, until the shipment is delivered at the office of the addressee bank; Provided, however, we will not assume any risk of loss for shipments sent by express while such shipments are in the custody of the Railway Express Agency, Inc., as the rate charged by the express company on such shipments is based on the declared value and the ordinary risks of loss are assumed by the express company under its shipping contract. The Uniform Express Receipt, however, provides that the express com pany shall not be liable for loss, damage or delay caused by ‘ ‘ The Act of God, public enemies, authority of law, quarantine, riots, strikes, perils of navigation, the hazards or dangers incident to a state of war, or occurrence in customs warehouse.” In case an undelivered shipment is reforwarded, we will continue to assume such risks of loss until the shipment is delivered at the correct or new address or until it is returned to the sender. Certain risks not assumed b y us 27. We will not assume any risk of loss in any of the following circumstances, and any loss arising thereunder is agreed and under stood to be assumed by the bank shipping, ordering or causing such shipments: (a) Any loss resulting from hostile or warlike action by any mili tary, naval, air forces, or agents of domestic, foreign or revolutionary governments, powers, or forces, whether or not war has been formally declared and including defending against an actual or expected attack; or any loss caused by any weapon of war employing atomic fission or radioactive force whether in time of peace or war. (b) Any loss resulting from any dishonest, fraudulent, or criminal act of an employee of any bank, other than ourselves, ship ping, causing, ordering or receiving the shipment. (c) Any loss to the extent recoverable from any insurance, surety, or indemnity company pursuant to purchased insurance, surety or indemnity (including bankers’ blanket bond), whether primary or excess, carried by or maintained by any person other than ourselves. (d) Any loss in excess of $2,000,000 on all shipments to us by any one banking office on any one day. (e) Any loss incident to a shipment to us by ordinary mail. (f) Any loss incident to a shipment to us by registered mail or express if the shipment is not made in conformity with the provisions of paragraph 28. (g) Any loss incident to a shipment to us by registered mail or express in excess of the amount stated in the notice of ship ment referred to in paragraph 28 (a). (h) Any loss incident to a shipment by us, or for our account at our request, by registered mail or express if the addressee bank takes delivery of the shipment at any place other than the office of the addressee bank and the shipment is not transported to the office of the addressee bank as provided in paragraph 29. Conditions regarding shipments to us 28. We will not assume any risk of loss in respect of any shipment by a member bank to us by registered mail or express unless the sender complies with the following terms and conditions: (a) Concurrently with the shipment but under separate cover the sender shall mail us a notice of shipment showing the date, amount and description of the shipment, such notice to be on the appropriate form supplied by us for use in accordance with the provisions of paragraph 6 and 1 1 of this circular. (b) The contents of the shipment shall be prepared and verified by one or more responsible employees of the sender and enclosed in a strong wrapper, envelope, or cloth or canvas bag, well secured, and the package shall be sealed in a manner accept able to the post office at the place of mailing or to the Railway Express Agency, Inc., at the place of delivery to the express company. (c) The sealed package shall be in charge of a responsible person or an armored car service until deposited and registered at the post office or receipted for by the express company. (d) The post office registry receipt with respect to each shipment by registered mail shall be carefully preserved by the sender in order that it may be available as evidence in event of loss and, in the event a loss is claimed, shall be turned over to us upon our request. Conditions regarding shipments b y us or for our account 29. We will not assume any risk of loss in respect of a shipment by us, or for our account at our request, by registered mail or express where the member bank takes delivery of the shipment at any place other than its office, unless the shipment shall be in charge of a respon sible person, or shall be in the custody of an armored car service, in transit from the place at which delivery is taken to the office of the member bank. Payment of losses 30. We will pay promptly the amount of any loss, the risk of which is assumed by us under paragraph 26, upon our receiving from the member bank sustaining the loss, in form satisfactory to us, a written proof of loss, receipt, and any other necessary documents, including, but not limited to, an assignment of its right, title and interest in the property in respect of which the loss was incurred. Any bank receiving any payment from us shall take all necessary measures, in our behalf and at our risk and expense, for the recovery, reissue or replacement of the property in respect of which the loss was incurred, including the institution of legal proceedings in its own name if deemed necessary by us. Unless and until there is a change in our policy, in the event any bank recovers a loss in whole or in part from any insurance, surety, 8 /"V or indemnity company pursuant to purchased insurance, surety or indemnity (including bankers’ blanket bond) carried or maintained by it, the risk of which loss, but for the provisions of paragraph 27(c), would have been assumed by us under paragraph 26, and as a direct result of such recovery the cost to such bank of maintaining the same or equivalent insurance, surety or indemnity, is increased, the amount of such increase, if deemed by us to be reasonable, will be reimbursed by us. Shipments from or to member banks by other means of transportation 31. In the case of a shipment of paper currency or coin to us by a member bank in the Second Federal Reserve District by a means of trans portation other than registered mail or express, we will assume all risks of loss incident to the shipment, except those losses described in subparagraphs (a), (b ), (c ), (d ), and (e) of paragraph 27, from the time the shipment leaves the office of the sender until delivery to our office, Provided, (i) we shall have specifically approved the use of such means of transportation with respect to such shipment, and (ii) the sender shall have complied with all conditions specifically imposed by us with respect to such shipment. I f we select a means of transportation other than registered mail or express in connection with a shipment of paper currency or coin by us, or for our account at our request, to a member bank in this District, we will assume all risks of loss incident to the shipment, except those losses described in subparagraphs (a), (b ), and (c) o f paragraph 27, until the shipment is delivered at the office of the addressee bank. In case an undelivered shipment is reforwarded, we will continue to assume such risks of loss until the shipment is delivered at the correct or new address or until it is returned to the sender. The provisions of paragraph 30 shall apply to any loss, the risk of which is assumed by us under this paragraph 31. Shipments from or to nonmember banks 32. We do not assume any risk of loss incident to the shipment of paper currency or coin by a nonmember bank to us, or by us to a non member bank. The risk of loss incident to the shipment of paper cur rency or coin by us to a nonmember bank, however, is or may be covered as follows: (a) In the case of shipments by express to a nonmember bank in this District, the express company assumes the ordinary risks of transportation under its shipping contract. (b) In the case of shipments by registered mail to a nonmember bank in this District, we will, in the absence of instructions to the contrary, arrange for the coverage thereof at the expense o f the nonmember bank under certain registered mail insurance policies carried by us. These policies do not cover loss by theft by employees of senders or addressees (except in a very limited class of circumstances and even in such circumstances the insurance afforded by such policies is excess insurance only), nor do such insurance policies pro vide protection against so-called war or related risks. Such policies contain the following clause with respect to war and related risks: “ * • • this p olicy does n ot insure a ga in st: ( a ) capture, seizure, arrest, restraint, detainment, confiscation, preem ption, requisi tion o r nationalization, and the consequences th ereof o r o f any attem pt thereat, whether in time o f peace o r w ar and whether law fu l o r oth erw ise; any consequences o f hostilities or w arlike operations (w hether there be a declaration o f w ar or n o t) but the fo re g o in g shall n ot exclude collision, exp losion or con tact with any fixed or floating ob je ct (oth er than a mine or to r p e d o ), stranding, heavy weather o r fire unless caused directly (an d independently o f the nature o f the voyage o r service which the vessel con cerned or, in the case o f a collision any other vessel involved therein, is p e r fo rm in g ) b y a hostile act b y or against a belligerent pow er, the term ‘pow er’ as used herein including a n y authority m aintaining naval, m ilitary o r air forces in asso ciation with a p o w e r ; o r any loss o r dam age caused b y any w eapon o f w ar em p loyin g atom ic fission or radioactive fo rce whether in tim e o f pea ce o r w a r; ( b ) the consequences o f civil war, revolution, rebellion, insurrection, or civil strife arisin g th erefrom , p ira cy, risks o f contraband or illegal tran sporta tion or trade, and seizure o r destruction under quarantine or custom s regulations.” Risk attaches from the time of leaving the office of the sender until actual delivery has been made to the office of the addressee, whether delivery is made in whole or in part by employees or agents of the Post Office Department, the sender or the addressee, and in event of nondelivery con tinues until returned to the sender. In case of reforwarding of any shipment, such shipment is covered until delivered at the correct or new address or until returned to the sender. Coverage under these policies is limited to $10,000,000 on property dispatched from any one sender to any one addressee on any one train. GENERAL Return of empty bags 33. Empty currency and coin bags bearing the name of other banks in the Second Federal Reserve District, received by us, are returned from time to time, at our expense, to the banks whose names appear thereon. It will be appreciated if banks that receive our bags or bags of a United States Mint will return the empty bags to us by parcel post, after a small number has accumulated. Bags bearing the name of our Buffalo Branch should be returned to the Branch. Credit will be given for the cost of postage. Requests for weekend or holiday shipments 34. The post office authorities have informed us that many post offices in towns and cities in the Second Federal Reserve District do not have adequate facilities for the overnight safekeeping of valuable registered mail shipments. In order to reduce the hazard of loss of currency and coin by burglary and robbery from post offices that are holding such shipments overnight, or over a Saturday (if delivery will not be accepted on that day), a Sunday, or a holiday, awaiting delivery to the consignees, the post office authorities suggest that banks can assist by (1) anticipating currency and coin needs sufficiently in advance to assure the arrival of such shipments at destinations in time for delivery on a regular business day, (2) arranging to pick up such shipments immediately upon arrival at the local post offices, even if such arrival is after banking hours but before the bank vaults are closed, and (3) timing their requests so that shipments will not have to be made on a Friday (if delivery will not be accepted on Satur day), or on a day preceding a holiday, except in cases of urgent need. Counterfeit, altered or raised paper currency or coin 35. The regulations of the Treasury Department, Part 403 of Chapter IV of Title 31 of the Code of Federal Regulations, provide as follows: $403.1 D eliv ery o f co u n te rfeit obligations and oth er secu rities and coins authorized. A u th ority is hereby given to all banks and banking institutions o f any nature w hatsoever organ ized under general or special federa l o r state statutes, to all U nited States P ost Offices, and to all dis b ursin g officers o f the U nited States and their agents, to take possession o f and deliver to the Treasu ry D epartm ent through the Secret Service D ivision all cou n terfeit obligations and other securities and coin s o f the United States o r o f any fo re ig n governm ent w hich shall be presented at their places o f business. (6 2 Stat. 7 1 0 ; 18 U .S.C . 4 9 2 ) 36. The following information is transmitted at the request of the United States Secret Service: A ll cou n terfeit, altered or raised cu rrency received b y banks fro m a n y source should be p r o p e rly branded in ink o r b y ru b ber stam p. A ll such cu rren cy and all cou n terfeit o r altered coin received b y banks from any source should be forw a rd ed to the nearest office o f the U nited States Secret Sen dee. T he Secret Service has offices in R oom 917, F ed era l Office B u ildin g, 90 C hurch Street, N ew Y o r k 7, N . Y . ; in the U . S. C ou rt H ouse, B u ffa lo 1, N . Y . ; in the P ost Office B u ild in g at U tica 1, N . Y . ; and at 1060 B ro a d Street, N ew ark 1, N . J. A receip t w ill, u p on request, be issued to the dep ositin g ba n k f o r a n y cu rren cy o r coin that is fo u n d to be cou n terfeit, raised o r altered. I f in spection o f such cu rren cy or coin is desired f o r reclam ation p u rposes, request should be made direct to the Secret S ervice office to w hich the cu rren cy o r coin w as forw a rded. In fo rm a tio n w hich m ay aid the Secret Service with resp ect to any cou n terfeit, altered o r raised cu rrency, o r a n y cou n terfeit o r altered coin should be sent to the nearest office o f the Secret Service. Fragm en ts o f cu rren cy (esp ecia lly the en ds) are som etim es used illegally in ra isin g or a ltering low er denom inations to higher. T o preven t such u nlaw fu l operation s these fragm en ts should be collected and destroyed o r forw a rd ed to the nearest office o f the Secret S ervice f o r destruction. 11 Agreement regarding certain shipments to us or for our account 37. Any member bank shipping or causing shipments of currency or coin for our account, and any member bank shipping or causing shipments of currency or coin to us by a means of transportation, other than registered mail or express, specifically approved by us in accord ance with paragraph 31, shall by such action be deemed to have agreed that all such shipments shall be prepared and verified by one or more responsible employees of the sender and that the sealed package shall be in charge of a responsible person until deposited and registered at the post office, or, if the shipment is by express or armored car, until receipted for by the express office or armored car service, and that the contents of all packages shall be enclosed in a strong cloth or canvas bag, well secured, and sealed in a manner acceptable to the post office, express office, or armored car service at the place of mailing or dispatch. Agreement to this circular 38. Any bank shipping or causing the shipment of paper currency or coin to us or for our account, and any bank requesting the shipment of paper currency or coin by us, shall, by such action, be deemed to have agreed to the terms and conditions set forth in this circular. Revision of this circular 39. The right is reserved to withdraw, add to, or amend at any time, any of the provisions of this circular. Effect of this circular on previous circular 40. This circular supersedes our Operating Circular No. 3, Revised effective August 1, 1954. A llan S proul, President.
@FedFRASER