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F E D E R A L R E S E R V E BANK
O F N E W YORK
Fiscal A g e n t of the U n i t e d States
r Circular No. 2 6 5 9

L

INFORMATION REGARDING THE THIRD WAR

July 24, 1943

J

LOAN

To all Banking Institutions in the
Second Federal Re sen'e District:

For your information we quote below the text of an announcement by the Treasury
Department which was released for publication on July 22, 1943, regarding the Third War
Loan Drive.
Secretary of the T r e a s u r y H e n r y M o r g e n t h a u , Jr., a n n o u n c e d today that the g o a l set for the
T h i r d W a r L o a n D r i v e , starting S e p t e m b e r 9, will be $15 billion.
M r . M o r g e n t h a u said that the entire $15 billion will be sold to individual investors, c o r p o r a tions, insurance c o m p a n i e s and other n o n - b a n k i n g sources.
" T h i s g o a l and the T h i r d W a r L o a n p r o g r a m , " he said, " w a s determined b y T r e a s u r y officials
after r e c e i v i n g r e c o m m e n d a t i o n s f r o m chairmen of the State W a r Finance C o m m i t t e e s , and officials
of the Federal R e s e r v e S y s t e m and the A m e r i c a n Bankers A s s o c i a t i o n . G e t t i n g this a m o u n t of
m o n e y will be a h u g e task, and will represent the largest financing p r o g r a m in the history of
the w o r l d .
" T h e j o b of raising this $15 billion," he said, " w i l l be handled b y W a r Finance C o m m i t t e e s
of each state, and the b o n d s will be sold largely b y hundreds of thousands of patriotic volunteer
salesmen, w h o already have m a d e plans to c o n c e n t r a t e o n h o u s e - t o - h o u s e selling, since a m a j o r
c o n s i d e r a t i o n is increasing the n u m b e r of p e o p l e w h o are b u y i n g W a r B o n d s . "
T h e securities to b e o f f e r e d in the T h i r d W a r L o a n , it w a s p o i n t e d out, will be essentially the
s a m e t y p e s as those sold in the S e c o n d W a r L o a n .
T h e securities
1. Series
2. Series
3. Series

to be sold under the direction of the W a r F i n a n c e C o m m i t t e e s will consist o f :
E Savings Bonds
4. 2 y 2 % B o n d s of 1964-69
F and G S a v i n g s B o n d s
5. 2 % B o n d s of 1951-53
C Savings Notes
6.
Certificates of I n d e b t e d n e s s

T h e 2 1 / 2 % B o n d will be dated S e p t e m b e r 15, 1943, due D e c e m b e r 15, 1969, callable D e c e m b e r
15, 1964, and will be issued in c o u p o n or registered f o r m at the o p t i o n of the buyers in d e n o m i n a tions f r o m $500 to $1,000,000.
C o m m e r c i a l banks, w h i c h are defined f o r this p u r p o s e as banks
a c c e p t i n g d e m a n d deposits, will not be p e r m i t t e d to o w n these B o n d s until S e p t e m b e r 15, 1953.
T h e 2 % B o n d will be dated S e p t e m b e r 15, 1943, due S e p t e m b e r 15, 1953, callable S e p t e m b e r
15, 1951, and will be issued in c o u p o n or registered f o r m at the o p t i o n of the b u y e r s in d e n o m i n a tions f r o m $500 to $1,000,000.
T h e 7/%% Certificates of I n d e b t e d n e s s will b e dated S e p t e m b e r 15, 1943, due S e p t e m b e r 1, 1944,
and will b e issued in d e n o m i n a t i o n s of $1,000 t o $1,000,000, and in c o u p o n f o r m only.
N o n e of these securities will be available f o r subscription b y c o m m e r c i a l banks f o r their o w n
a c c o u n t d u r i n g the p e r i o d of the D r i v e . H o w e v e r , shortly after the D r i v e terminates, a 2 per cent
B o n d and a % per cent Certificate of I n d e b t e d n e s s will be o f f e r e d f o r subscription b y c o m m e r c i a l
b a n k s f o r their o w n a c c o u n t . In order to c o n f i n e all sales in the D r i v e to n o n - b a n k i n g sources,
the T r e a s u r y will request c o m m e r i c a l b a n k s n o t to b u y in the market, and will request the market
not to trade in, either of these securities o f f e r e d in the D r i v e until the b o o k s f o r bank s u b s c r i p tions are c l o s e d .
T o a v o i d u n n e c e s s a r y transfers of f u n d s f r o m one locality to another, the T r e a s u r y w o u l d prefer
to have all s u b s c r i p t i o n s b y c o r p o r a t i o n s and firms entered and paid f o r throug"h the b a n k i n g institutions w h e r e the f u n d s are located.

The attention of commercial banks and other banking institutions in the Second Federal
Reserve District is called particularly to the last two paragraphs of the above announcement.




ALLAN SPROUL,

President.

as- z (, s j

FEDERAL RESERVE
OF NEW

BANK

YORK

July 24, 1943

A M E N D M E N T OF R E G U L A T I O N T
OF T H E B O A R D O F G O V E R N O R S OF T H E F E D E R A L R E S E R V E S Y S T E M

To Members of National Securities Exchanges
and Brokers and Dealers in Securities in the
Second Federal Reserve District:

The Board of Governors of the Federal Reserve System has
adopted Amendment No. 3 of Regulation T, effective July 24, 1943.
For your information a copy of the above mentioned amendment is
sent to you herewith. Additional copies will be furnished upon request.




ALLAN

SPROUL,

President.

BOARD OF GOVERNORS
OF THE FEDERAL RESERVE SYSTEM

Amendment No. 3 of Regulation T—Effective July 24, 1943.
Section 4 ( c ) (3) of Regulation T is hereby amended by adding at
the end thereof a new sentence reading as follows:
" I f the security when so purchased is an issued registered
security which is to be distributed by a public utility holding
company pursuant to a plan provided for by section 11 of the
Public Utility Holding Company Act of 1935 and which has been
approved by a national securities exchange f o r trading on a
'when distributed' basis, the period applicable to the transaction
under subdivision (2) of this section 4 ( c ) shall be 7 days after
the date on which the security is so distributed."




F E D E R A L RESERVE B A N K
OF NEW YORK

July 20, 1943.

Gentlemen:
You are one of the banks in New York City v;hich have heretofore entered into
arrangements with us for the presentation by us, by delivery at our office to messengers of such banks, of items drawn on or payable at such banks, which type of
arrangement is commonly known as the "Manhattan, Bronx, and Brooklyn collection
arrangement". In response to the requests of the banks with which we have such arrangements, we are willing to modify the terms of such arrangements with respect to
the time within which certain items may be returned to us. We are writing this letter
to set forth the terms of our arrangement with you as so modified, effective upon receipt by us of your agreement thereto. In order to indicate your agreement please
sign the endorsement on the enclosed copy of this letter and return the copy of letter
to us,
(1) You will send an authorized messenger to our office each business day, at
an hour prescribed by us, who in your behalf will call for and receive, and will
sign and deliver a receipt or receipts for, such items drawn on or payable at
your main or any branch office as we may deliver to such messenger. We enclose
two signature cards which we request you to fill out, sign, and return to us, for
the purpose of listing with us the names, and of furnishing us with specimen
signatures, of your messengers who have been designated and authorized for this
purpose.
(2) It is agreed that the delivery of items to such messenger shall constitute,
and shall be deemed to constitute, due presentment by us of such items to you for
payment, with the same force and effect as though such items were presented by us
to you for payment at your counter at the time of such delivery.
(3) You authorize us, upon delivery of items to such messenger, to charge to
your account on our books the total amount of the items so delivered.
(4) You will return unpaid (including missent) items to us not later than 3
p.m, on the day of presentment, or not later than 2 p.m. on the day of presentment
when presented on Saturday; except that you may return to us not later than 11 p.m.
on the day of presentment, or not later than 8 p.m. on the day of presentment when
presented on Saturday, (a) dishonored checks and other demand drafts for less than
$500 and (b) checks and other demand drafts for not in excess of $5,000 returned
for endorsement or to correct other formal irregularity. Items referred to in
(b) of $100 and over which were received by us from a New York Clearing House bank
and which are returned to us after 3 p.m., or after 2 p.m. on Saturday, should be
certified so as to be eligible (under Rule 10 of the Clearing House "Rules and
Rulings on Items for the Exchanges" adopted July 15, 194-3) for return by us
to such banks by delivery to the Clearing House not later than 2 a.m. on the
next business day following the day of presentment.




2
(5) Items returned as provided in paragraph (4) shall be and be deemed to be
unpaid; and we will credit the amount thereof (plus protest fees) to your account
on our books as follows:
We will credit on the day of presentment the amount of the items which are so
returned not later than 3 p.m. on the day of presentment, or not later than 2
p.m. on the day of presentment when presented on Saturday; and
We will credit on the next business day following the day of presentment the
amount of the items which are so returned after 3 p»m. on the day of presentment,
or after 2 p.m. on the day of presentment when presented on Saturday, plus the
amount of the statutory protest fees charged for the protesting of any such
items in accordance with our instructions.
(6) Items which are drawn on you, or are payable at your main or any branch
office, and which are properly endorsed, shall be and be deemed to be paid if not
returned as provided in paragraph (4.).
(7) You will return unpaid items to us sorted, packaged and listed, and will
cause dishonored items to be duly protested, in accordance with such instructions
as we may give you from time to time. We enclose a memorandum dated July 20, 194-3 >
containing such instructions now in effect,
(8) Any item which you deposit with us and which is not paid, and any notice
or certificate of dishonor or protest thereof, may be returned by us to you by delivering it to a messenger sent by you to our office to deposit items with us, to
return dishonored items to us, or to receive items delivered by us to such messenger, and will, upon such delivery, be and be deemed to be so returned with the
same force and effect as though such item were returned to and received by you at
your counter, or were mailed to you, at the time of such delivery.
Upon receipt by us of your agreement to the collection arrangement as herein
set forth, this letter will supersede any previous letter, notice or other communication, from us to you or from you to us, with reference to the arrangement between us
for the presentment of items to you by delivery thereof to your messenger sent to our
office.
Very truly yours,
FEDERAL RESERVE BANK OF NEW YORK.
By
Valentine Willis,
Assistant Vice President.

Enclosures

The undersigned, to which the above letter is addressed, hereby agrees to the
collection arrangement set forth in said letter, and to each of the provisions of
said letter.
Dated July

, 19-43




By

(Title)

F E D E R A L RESERVE, B A N K
OF N E W Y O R K

JULY

194.3.

Gentlemen:
You are one of the banks in New York City which have heretofore entered into
arrangements with us for the presentation by us, by delivery at our office to messengers of such banks, of items drawn on or payable at such banks, which type of
arrangement is commonly known as the "Manhattan, Bronx, and Brooklyn collection
arrangement". In response to the requests of the banks with which we have such arrangements, we are willing to modify the terms of such arrangements with respect to
the time within which certain items may be returned to us. We are writing this letter
to set forth the terms of our arrangement with you as so modified, effective upon receipt by us of your agreement thereto. In order to indicate your agreement please
sign the endorsement on the enclosed copy of this letter and return the copy of letter
to us.
(1) You will send an authorized messenger to our office each business day, at
an hour prescribed by us, who in your behalf will call for and receive, and will
sign and deliver a receipt or receipts for, such items drawn on or payable at
your main or any branch office as we may deliver to such messenger. We enclose
two signature cards which we request you to fill out, sign, and return to us, for
the purpose of listing with us the names, and of furnishing us with specimen
signatures, of your messengers who have been designated and authorized for this
purpose.
1

(2) It is agreed that the delivery of items to such messenger shall constitute,
and shall be deemed to constitute, due presentment by us of such items to you for
payment, with the same force and effect as though such items were presented by us
to you for payment at your counter at the time of such delivery.
(3) You authorize us, and agree to arrange with a member bank to authorize us,
upon delivery of items to such messenger, to charge to the account of such member
bank on our books the total amount of the items so delivered.
(4.) You will return unpaid (including missent) items to us not later than 3
p.m. on the day of presentment, or not later than 2 p.m. on the day of presentment
when presented on Saturday; except that you may return to us not later than 11 p.m.
on the day of presentment, or not later than 8 p.m. on the day of presentment when
presented on Saturday, (a) dishonored checks and other demand drafts for less than
$>500 and (b) checks and other demand drafts for not in excess of $5,000 returned
ior endorsement or to correct other formal irregularity. Items referred to in (b)
of &100 and over which were received by us from a New York Clearing House bank and
which are returned to us after 3 p»m., or after 2 p.m. on Saturday, should
be certified so as to be eligible (under Rule 10 of the Clearing Hou^e
"Rules ar^d Rulings on Items for the Exchanges" adopted July 15, 194-3) for
return by us to such banks by delivery to the Clearing House not later than
2 a.m. on the next business day following the day of presentment.



2
(5) Items returned as provided in paragraph (4.) shall be and be deemed to be
unpaid; you authorize us, and agree to arrange with such member bank to authorize
us, to credit the amount of the items so returned (plus protest fees) to the account of the member bank to which such items were charged as provided in paragraph
(3); and when so authorized by such member bank we will credit the amount of such
items (plus protest fees) to its said account as follows:
We will credit on the day of presentment the amount of the items which are so
returned not later than 3 p.m. on the day of presentment, or not later than 2
p.m. on the day of presentment when presented on Saturday; and
We will credit on the next business day following the day of presentment the
amount of the items which are so returned after 3 p.m. on the day of presentment
or after 2 p.m. on the day of presentment when presented on Saturday, plus the
amount of the statutory protest fees charged for the protesting of any such
items in accordance v/ith our instructions.
(6) Items which are drawn on you, or are payable at your main or any branch
office, and which are properly endorsed, shall be and be deemed to be paid if not
returned as provided in paragraph (4).
(7) You will return unpaid items to us sorted, packaged and listed, and will
cause dishonored items to be duly protested, in accordance with such instructions
as we may give you from time to time. We enclose a memorandum dated July 20, 1943|
containing such instructions now in effect.
Upon receipt by us of your agreement to the collection arrangement as herein
set forth, this letter will supersede any previous letter, notice or other communication, from us to you or from you to us, with reference to the arrangement between us
for the presentment of items to you by delivery thereof to your messenger sent to our
office.
Very truly yours,
FEDERAL RESERVE BANK OF NEW YORK.
By
Valentine Willis,
Assistant Vice President.

Enclosures

The undersigned, to which the above letter is addressed, hereby agrees to the
collection arrangement set forth in said letter, and to each of the provisions of
said letter.
Dated July

, 1943




By
(Title)

(See postscript to above letter on next page)

2

P. S.
In connection with paragraphs (3) and (5) of the above letter, we enclose
for your information a copy of the letter from The Chase National Bank of the City
of New York to us, dated July 6, 194-2, with reference to charging to its account on
our books the amount of items delivered to you and crediting to its account the
amount of returned items.
You will note that the letter from The Chase National Bank of the City of
New York contains the following sentence:
You are to credit our account the total amount for all return
items received from the Hellenic Bank Trust Company, this city, up to
3:00 P. M. each day.
This sentence will not be appropriate after the above letter becomes
effective, since thereafter certain items may be returned up to 11 p.m. of the day
of presentment, or up to 8 p. m. on the day of presentment when presented on Saturday
We assume that you will arrange to have The Chase National Bank of the
City of New York deliver to us a letter superseding its previous letter of July 6,
194-2; and in such superseding letter we suggest that in lieu of the sentence quoted
above a paragraph be inserted reading as follows:
The total amount (plus protest fees) of all items returned to you
by the Hellenic Bank Trust Company in accordance with the so-called
Manhattan, Bronx, and Brooklyn collection arrangement between it and you
vail be credited by you to our account as follows:
You will credit on the day of presentment the amount
of the items which are so returned not later than 3 p.m. on
the day of presentment, or not later than 2 p.m. on the day
of presentment when presented on Saturday; and
You will credit on the next business day following the
day of presentment the amount of the items which are so returned
after 3 p.m. on the day of presentment, or after 2 p.m. on the
day of presentment when presented on Saturday, plus the amount of
the statutory protest fees charged for the protesting of any such
items in accordance with your instructions.




FEDERAL RESERVE BANK OF NEW YORK
By
Assistant Vice President

THE CHASE NATIONAL BANK
NEW YORK

July 6, 1942.
Federal Reserve Bank of New York,
33 Liberty Street,
New York, N. Y.
Gentlemen:
This is in reference to our letter
in which we advised that we had entered into
Bank Trust Company, New York City, regarding
livered daily to their authorized messenger,

to you of February 19, 1930,
an agreement with the Hellenic
the payment of all items deor to their office.

We desire at this time to amend the original instructions. You
may consider this letter your authority to charge our account with the
amount of all items delivered each day to the Hellenic Bank Trust Company,
provided the amount is not in excess of $300,000., you to notify us by
telephone each morning the exact amount delivered. Should the amount of
the items at any time exceed this amount, you are to notify us by telephone
before making such delivery and before charging the amount to our account.
It is also understood that our instructions to you by telephone will be sufficient authority for you either to make or not to make such charge in accordance with our instructions.
Later in the day you will present to us
your usual debit advice for an official signature.
You are to credit our account' the total amount for all return
items received from the Hellenic Bank Trust Company, this city, up to 3:00
P. M. each day. This arrangement is to be effective beginning July 8, 1942,
and is subject to termination upon written notice to you.
It is understood that you will incur no liability or responsibility
to us for having acted, or attempted to act, or for any failure or refusal to
act pursuant to this authority, except for your own negligence.




Yours very truly,
(Signed) S. 0. Kerr,
Assistant Cashier.

FEDERAL RESERVE BANK
OF N E W

YORK

July 20, 194-3.

Gentlemen:
You are one of the banks in New York City which have heretofore entered into
arrangements with us for the presentation by us, by delivery at our office to messengers of such banks, of items drawn on or payable at such banks, which type of
arrangement is commonly known as the "Manhattan, Bronx, and Brooklyn collection
arrangement". In response to the requests of the banks with which we have such arrangements, we are railing to modify the terms of such arrangements with respect to
the time within which certain items may be returned to us. We are writing this letter
to set forth the terms of our arrangement with you as so modified, effective upon receipt by us of your agreement thereto. In order to indicate your agreement please
sign the endorsement on the enclosed copy of this letter and return the copy of letter
to us.
(1) You will send an authorized messenger to our office each business day, at
an hour prescribed by us, who in your behalf will call for and receive, and will
sign ana deliver a receipt or receipts for, such items drawn on or payable at
your main or any branch office as we may deliver to such messenger. We enclose
two signature cards which we request you to fill out, sign, and return to us, for
the purpose of listing with us the names, and of furnishing us with specimen
signatures, of your messengers who have been designated and authorized for this
purpose.
(2) It is agreed that the delivery of items to such messenger shall constitute,
and shall be deemed to constitute, due presentment by us of such items to you for
payment, with the same force and effect as though such items were presented by us
to you for payment at your counter at the time of such delivery.
(3) You authorize us, and agree to arrange with a member bank to authorize us,
upon delivery of items to such messenger, to charge to the account of such member
bank on our books the total amount of the items so delivered.
(4) You will return unpaid (including missent) items to us not later than 3
p.m. on the day of presentment, or not later than 2 p.m. on the day of presentment
when presented on Saturday; except that you may return to us not later than 11 p.m.
on the day of presentment, or not later than 8 p.m. on the day of presentment when
presented on Saturday, (a) dishonored checks and other demand drafts for less than
$500 and (b) checks and other demand drafts for not in excess of $5,000 returned
ior endorsement or to correct other formal irregularity. Items referred to in (b)
of $100 and over which were received by us from a New York Clearing House bank and
which are returned to us after 3 p.m., or after 2 p.m, on Saturday, should
be certified so as to be eligible (under Rule 10 of the Clearing House
CTOKi
"Rules arid Rulings on Items for the Exchanges" adopted July 15, 1943) for
BUY
onrrtn
return by us to such banks by delivery to the Clearing House not later than
2 a.m. on the next business day following the day of presentment.
WAR
tONDS
STATES




2
(5) Items returned as provided in paragraph (4) shall be and be deemed to
be unpaid; you authorize us, and agree to arrange with such member bank to
authorize us, to credit the amount of the items so returned (plus protest fees)
to the account of the member bank to which such items were charged as provided
in paragraph (3); and when so authorized by such member bank we will credit the
amount of such items (plus protest fees) to its said account as follows:
We will credit on the day of presentment the amount of the items which are
so returned not later than 3 p.m. on the day of presentment, or not later
than 2 p.m. on the day of presentment when presented on Saturday; and
We will credit on the next business day following the day of presentment
the amount of the items which are so returned after 3 p.m. on the day of
presentment, or after 2 p.m. on the day of presentment when presented on
Saturda2r, plus the amount of the statutory protest fees charged for the
protesting of any such items in accordance with our instructions.
(6) Items which are drawn on you, or are payable at your main or any branch
office, and which are properly endorsed, shall be and be deemed to be paid if not
returned as provided in paragraph (4-).
(7) You will return unpaid items to us sorted, packaged and listed, and will
cause dishonored items to be duly protested, in accordance with such instructions
as we may give you from time to time. We enclose a memorandum dated July 20,
194-3* containing such instructions now in effect.
(8) Any item which you deposit with us and which is not paid, and any notice
or certificate of dishonor or protest thereof, may be returned by us to you by
delivering it to a messenger sent by you to our office to deposit items with us,
to return dishonored items to us, or to receive items delivered by us to such
messenger, and will, upon such delivery, be and be deemed to be so returned with
the same force and effect as though such item wore returned to and received by
you at your counter, or were mailed to you, at the time of such delivery.
Upon receipt by us of your agreement to the collection arrangement as herein
set forth, this letter will supersede any previous letter, notice or other communication, from us to you or from you to us, with reference to the arrangement between us
for the presentment of items to you by delivery thereof to your messenger sent to our
office.
Very truly yours,
FEDERAL RESERVE BANK OF NEW YORK.
By
Valentine Willis,
Assistant Vice President.

Enclosures

The undersigned, to which the above letter is addressed, hereby agrees to the
collection arrangement set forth in said letter, and to each of the provisions of
said letter.
Oated July

, 1943


(See


By

postscript to above letter on next page)

-3-

P, S.
In connection with paragraphs (3) and (5) of the above letter, we enclose
for your information a copy of the letter from the Brooklyn Trust Company to us,
dated July 6, 1939, with reference to charging to its account on our books the amount
of items delivered to you and crediting to its account the amount of returned items.
You will note that the letter from the Brooklyn Trust Company contains the
following paragraph:
You are to credit our account the total amount of all returned
items received from the Modern Industrial Bank up to 3 p.m. each day.
This paragraph will not be appropriate after the above letter becomes
effective, since thereafter certain items may be returned up to 11 p.m» of the day
of presentment, or up to 8 p.m. on the day of presentment when presented on Saturday.
We assume that you will arrange to have the Brooklyn Trust Company deliver
to us a letter superseding its previous letter of July 6, 1939; and in such superseding letter we suggest that in lieu of the paragraph quoted above a paragraph be inserted reading as follows:
The total amount (plus protest fees) of all items returned to you
by the Modern Industrial Bank in accordance with the so-called Manhattan,
3ronx, and Brooklyn collection arrangement between it and you will be
credited by you to our account as follows:
You will credit on the day of presentment the amount
of the items which are so returned not later than 3 P*eu on
the day of presentment, or not later than 2 p.m. on the day
of presentment when presented on Saturday; and
You will credit on the next business day following the
day of presentment the amount of the items which are so returned
after 3 p»ia» on the day of presentment, or after 2 p.m. on the
day of presentment when presented on Saturday, plus the amount of the
statutory protest fees charged for the protesting of any such items
in accordance with your instructions.




FEDERAL RESERVE BANK OF NEV7 YORK

By
Assistant Vice President

c
0 '
p

*

Y
BROOKLYN TRUST COMPANY
BROOKLYN, N. Y.

July 6, 1939.

Federal Reserve Bank,
Nev: York City.
Gentlemen:
In accordance with an arrangement entered into by this Bank
and the Modern Industrial Bank, we have arranged to pay you for all
items delivered daily to their authorized messenger or to their officef
You are authorized to charge our account with the amount
of all items delivered to their authorized messenger or to their office, when the amount of such items is not greater than $300,000 in
any one day. Should the amount of the items at any time exceed this
amount, you are to notify us by telephone before making such delivery
and before charging the amount to our account. It is also understood
that our instructions to you by telephone will be sufficient authority
for you either to make or not to make such charge in accordance with
our instructions. Later in the day you will present to us your usual
debit advice for an official signature.
You are to credit our account the total amount of all returned items received from the Modern Industrial Bank up to 3 p.m.
each day.
In consideration of your recognizing and acting in accordance
with this letter, we will indemnify the Federal Reserve Bank of New
York and hold it harmless from any loss it may incur under this arrange'
ment, except for its own negligence.




Very truly yours,
(Signed) G. A. Barnewall,
Vice-President.
(Signed) U. Wells,
Assistant Secretary.

F E D E R A L RESERVE B A N K
OF N E W

YORK

v

July 20, 1943.

Instructions to banks which have entered
into so-called "Manhattan, Bronx, and
Brooklyn collection arrangement" with us:
SORTING, PACKAGING, AND LISTING
UNPAID ITEMS, AND PROTESTING
DISHONORED ITEMS.
(1) All unpaid items returned to us pursuant to the terms of the so-called
Manhattan, Bronx, and Brooklyn collection arrangements between us and the banks to
which these instructions are addressed, shall be enclosed in sealed envelopes bearing
the names of the respective banks from which we received the items therein contained,
except that all such items which we received from banks other than (a) New York
Clearing House banks and (b) banks to which these instructions are addressed shall be
returned to us in sealed envelopes bearing our name. Envelopes containing unpaid
items so returned will hereinafter be referred to as return item envelopes. The total
amount of the items * therein contained shall be indicated on the face of each return
item envelope.
(2) When a return item envelope is delivered to us at or before 3 p.m., or at
or before 2 p.m. on Saturday, the total amount of the items therein contained shall
be listed on the regular "Return Item Packages" form which should accompany return
item envelopes so delivered.
(3) When a return item envelope is delivered to us after 3 p.m., or after 2
p.m. on Saturday, the total amount of the items therein contained shall be listed as
follows:
(a) If such return item envelope contains items which we received from a
New York Clearing House bank, or from a bank to which these instructions are addressed, the total amount of the items therein contained, or (if delivered to us
with cash items which are being deposited with us drawn on the bank from which we
received the items contained in such return item envelope) the sum of the total
amount of the items contained in such return item envelope plus the total amount
of such cash items being deposited, shall be listed opposite the name of such bank
on the accompanying form.
(b) If such return item envelope contains items other than or in addition to
those referred to in (3) (a) above, the total amount of all items therein contained, or (if delivered to us with cash items which are being deposited with us
drawn on us or on the Treasurer of the United States) the sum of the total amount
of all items contained in such return item envelope plus the total amount of
such cash items being deposited, shall be listed opposite our name on the
ICTORY
accompanying form.
BUY

UNITED
•TATB3

WAR

BNS
OO

*For"tTie purposes of these instructions the amount of the items contained in a return
item envelope shall be deemed to include the amount of the statutory protest fees

charged for the protesting of any such items in accordance with our instructions.
AND

SUK2S



2
(4) Each dishonored check or demand draft of $50.01 or over returned to us
after 3 p.m. on the day of presentment (or after 2 p.m. on the day of presentment
when presented on Saturday), as permitted under our agreements with the banks to
which these instructions are addressed, must be duly protested before it is so
returned, if it bears an out-of-town endorsement or appears to have been drawn
outside this state; except that an item shall not be protested if it bears on its
face the A.B.A. no protest symbol of a bank endorser or if it appears from the
item that all parties have waived protest.
(5) As provided in our agreements with the banks to which these instructions
are addressed, such banks may return to us not later than 11 p.m. on the day of
presentment, or not later than 8 p.m. on the day of presentment when presented on
Saturday, (a) dishonored checks and other demand drafts for less than $500 and (b)
checks and other demand drafts for not in excess of $5,000 returned for endorsement or to correct other formal irregularity. Items referred to in (b) of &100
and over which we received from a New York Clearing House bank and which are returned to us after 3 p.m., or after 2 p.m. on Saturday, should be certified so as
to be eligible (under Rule 10 of the Clearing House "Rules and Rulings on Items
for the Exchanges" adopted July 15, 194-3) for return by us to such banks by delivery to the Clearing House not later than 2 a.m. on the next business day following the day of presentment.
(6) It is requested that information regarding the return of any item of $500
or over be telephoned before 3 p.m., or before 2 p.m. on Saturday, direct to the
banks from which we received such item, if such bank is located in New York City.




FEDERAL RESERVE BANK OF NEW YORK

NEW

YORK
77-83

E D W A R D

CLEARING
CEDAR

_

„

New York, July 15, 1943

BECK.

L.

HOUSE

STREET

MANAGER
G.

R U S S E L L

C H A R L E S

CLARK.

A.

H1NRICHS,

ASST.

MANAGERS

RETURN ITEMS
FEDERAL RES^TL
OF W YORK
MANHATTAN, BRONX M P iiOOxQ.rK COLLECTION ARRANGEMENT
Dear Sir s
RULE

10

(ITEMS FOR THE EXCHANGES)
In accordance with the authority contained in ARTICLE X, Section
1 (A) of the Clearing House Constitution, and in compliance with requests received from each of the members of the Association, the
Clearing House Committee approves of the arrangement under which the
Federal Reserve Bank of New York is permitted to return not later than
2 A. M. at the Clearing House each business day unpaid items within
the limits undermentioned which the Clearing House member banks have
deposited with the Federal Reserve Bank and which were presented by
the Federal Reserve Bank on the preceding business day to the banks
which have the so-called Manhattan, Bronx and Brooklyn Collection
Arrangement with the Federal Reserve Bank.
These items will consist of (a)

Unpaid checks and other demand drafts
for less than $500.

(b)

Unpaid checks and other demand drafts
up to $5,000 returned for bank stamp,
endorsement, etc., provided that all
such items of $100 and over are
certified by the drawee banks.

The items returned are to be enclosed in envelopes and delivered
by the drawee banks to the Federal Reserve Bank within the time specified in the so-called Manhattan, Bronx and Brooklyn Collection Arrangement between such banks and the Federal Reserve Bank.

The above rule becomes effective with respect to items deposited by the
member banks with the Federal Reserve Bank of New York on and after July 19,
1943.
Very truly yours,
EUGENE V.. STETSON
Chairman
Clearing House Committee
EDWARD L. BECK



Manager

3 the

Federal Reserve

Rank o f

New York

Each o f t h e
^ p e r s o n s l i s t e d h e r e o n i s an e m p l o y e e o f t h e u n d e r s i g n e d
ank, and i s an a u t h o r i z a d m e s s e n g e r , r e f e r r e d t o i n t h e s o — c a l l e d Manhattan, B r o n x ,
nd B r o o k l y n c o l l e c t i o n a r r a n g e m e n t Between you and t h e u n d e r s i g n e d b a n k , ana i s
u t h o r i z e d by and i n b e h a l f o f t h e u n d e r s i g n e d bank t o c a l l f o r and r e c e i v e , and t o
i g n and d e l i v e r r e c e i p t s f o r , s u c h i t e m s as you may d e l i v e r t o s u c h m e s s e n g e r .
The
p e c i m e n s i g n a t u r e s o f s u c h m e s s e n g e r s a p p e a r o p p o s i t e t h e i r names h e r e o n .
The
u t n o r i t y or e a o h s u c h m e s s e n g e r w i l l c o n t i n u e i n e f f e c t u n t i l y o u r e c e i v e f r o m t h e
n d e r s i g n e d bank n o t i c e i n w r i t i n g o f t h e r e v o c a t i o n t h e r e o f .

(Name of bank)
)ated

ftT
(typewritten)

Will s g 1
i*

fr.
L

Signature

_

L
W.

m

nr.

Mr.


Name


l i s t on reverse side i f necessary')
iuen signatures of messengers of
Address

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