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FEDERAL RESERVE BANK
OF NEW YORK

Circular No. 1958, June 30, 1939
Superseding Circular No. 1844

TELEGRAPHIC TRANSFERS OF FUNDS THROUGH THE
FEDERAL RESERVE SYSTEM
REVISED RULES

To all Member Banks and Nonmember Clearing Banks
in the Second Federal Eeserve District:

This circular contains revised rules, effective from and after July 1, 1939, with
respect to inter-Federal Eeserve district telegraphic transfers of funds between the
Federal Reserve Bank of New York and other Federal Eeserve banks made at the
request of, or for credit to, member banks and nonmember clearing banks located
in the Second Federal Eeserve District, and supersedes Circular No. 1844 of this
bank dated May 12, 1938.
Schedules showing the hours up to which we will receive requests to make telegraphic transfers will be printed separately and issued as supplements hereto from
time to time.
Telegraphic transfers of funds will be made at the request of member banks and
nonmember clearing banks subject to the terms and conditions of this circular as
set forth on the following pages and to the time limits in effect from time to time at
this bank which will be set forth in supplements to this circular.




Transfers of Bank Balances for Member Banks
1. Telegraphic transfers between Federal Eeserve banks and branches of bank balances
in multiples of $1,000 will be made for member banks without charge. Such transfers will be
made for and paid to member banks only. The term "bank balance" shall be construed to
mean an accumulation of funds comprising an established account maintained by a member
bank with its Federal Eeserve bank or with another member bank.
2. The descriptive data in telegrams transferring bank balances without charge must be
limited to the name of the sending member bank, name of its correspondent member bank
requesting the transfer, name of the member bank receiving credit, and the name of its correspondent member bank.
3. Transfers for the benefit or use of an individual, firm, corporation, or nonmember
bank and transfers of the proceeds of individual collection items or individual cash letters
will not be made without charge.
Other Transfers
1. Telegraphic transfers of funds for any purpose and in any amount and without limitation as to descriptive data will be made for and paid to member banks subject in each case to
a charge which will approximate but not exceed the commercial wire rate for the telegram or
telegrams involved in the transfer. While such transfers will be accepted from and paid to
member banks only, they may be for the use of any bank, individual, firm or corporation.
2. Telegraphic transfers of bank balances in multiples of $100 will be made for nonmember
clearing banks subject to a charge as outlined in the preceding paragraph. Such transfers
will be accepted from any member bank for the credit of any nonmember clearing bank, and
from any nonmember clearing bank for the credit of any member bank or any other nonmember
clearing bank.
3. Member and nonmember clearing banks should prepay the cost of telegrams requesting transfers that are subject to a charge, and telegrams to member and nonmember clearing
banks advising of credit will be sent "collect".
Leased Wires
Federal Eeserve leased wires will be used for all telegrams between Federal Eeserve
banks and branches, unless these wires are overcrowded or transmission over the leased wires
would involve undue delay or undesirable circuitous routing. When a Federal Eeserve bank
makes a charge against a member or nonmember clearing bank in connection with a telegram
sent to or received from another Federal Eeserve bank or branch, such charge will be based
on the commercial wire rate.
Time Limits
Eequests to us to make telegraphic transfers to other Federal Eeserve banks or branches
thereof on the same business day such requests are received should reach us not later than the
hours specified in the then current supplement to this circular. Eequests may be received by
us in our discretion on any business day after the hours specified in the schedule, but will
be so received only on the understanding that the consummation of the transfers on that day
will be discretionary with us and with the receiving Federal Eeserve banks or branches.




Operation
1. Telegraphic transfers will be made by us only from collected funds on deposit with
us to the credit of the bank making the request.
2. On a telegraphic transfer from us to another Federal Reserve bank, the account of
the bank requesting us to make the transfer will be charged with the amount of such transfer
on the day we receive such request. On a telegraphic transfer from another Federal Reserve
bank to us, we will credit the amount of the transfer to the account on our books of the bank
for whose credit the transfer is made on the receipt of the telegram from the sending Federal
Reserve bank, provided such telegram is received by us within banking hours.
3. In addition to the usual mail advice to the bank receiving credit for a telegraphic
transfer of funds, immediate advice by telegraph, or otherwise, will be given by the Federal
Reserve bank receiving the transfer in cases where the sending bank or the credited bank has
stated that other than the usual mail advice is necessary, or where the nature of the transaction
or the amount involved indicates that the additional expense is justified, as to which the receiving Federal Reserve bank will exercise its discretion. All such wire advices will be at the
expense of the bank receiving credit and, therefore, will be sent collect.
4. When a request to transfer funds is sent to us by telegram, the American Bankers
Association Code should be used with our test word, and a letter of confirmation over an
authorized signature should follow.
Liability of the Federal Reserve Bank
The Federal Reserve Bank of New York will use due diligence and care in the transfer
of funds by telegraph to the receiving Federal Reserve bank for credit to the account of the
payee bank, but will not be responsible for errors or delays caused by circumstances beyond
its control.




GEORGE L. HARRISON,

President.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102