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FEDERAL RESERVE BANK
OF NEW YORK
Fiscal Agent of the United States

/"Circular No. 2 8 3 6 1
LSeptember 8, 1944J

ENDORSEMENT OF CERTAIN GOVERNMENT CHECKS P A Y A B L E TO
MEMBERS OF T H E ARMED SERVICES N O W SERVING OVERSEAS

To all Banking Institutions
in the Second Federal Reserve District:

Reference is made to our circular No. 2823 dated July 29, 1944, on this subject, in
which we conveyed, at the request of the Treasury Department, the following information
with respect to the endorsement of checks on the Treasurer of the United States to the
order of members of the armed services now serving overseas drawn in payment of salary
or refund of overpayment of income taxes:
" I t is the general policy of the Treasury to require the endorsement by the payee or for him
by power of attorney. However, where hardships might result from the inability of a wife or other
dependent to obtain the proceeds of a check which a serviceman overseas intended to be used for
his wife or other dependent, exceptions to the regulations will be made and the check may be
endorsed by the bank for credit to the serviceman's account without his personal endorsement.
" T h e endorsing bank should furnish the Treasurer of the United States a full description
of the check involved, together with the serviceman's identification number and organization
and the name and address of the dependent for whose benefit the check is negotiated. Upon
receipt of this information the Treasurer will communicate direct with the dependent and request
that a power of attorney in favor of the endorsing bank be obtained from the serviceman as soon
as possible and forwarded to the Treasurer.''

In view of the number of inquiries that have been received from banks, the Treasury
Department has requested us to inform all banks in the Second Federal Reserve District
that the foregoing exception to the Treasury Department's general policy (that checks
drawn on the Treasurer must be endorsed either by the payee or by a third person and
accompanied by an appropriate power of attorney executed by the payee authorizing
such third person to endorse the check) is intended to apply only in case the bank is
satisfied (either because the depositor has a general power of attorney from the serviceman or for some other reason) that the depositor has authority from the serviceman to
deposit the check in the serviceman's account and to withdraw the proceeds therefrom,
but where the serviceman has not executed a power of attorney, in a form acceptable
to the Treasurer, authorizing the bank or the dependent to endorse the check in question.
In such cases the Treasurer will pay the check on the bank's endorsement 4 'for credit
to account of within named payee — absence of endorsement guaranteed" or similar
endorsement provided the bank supplies the Treasurer with the information requested




(OVER)

above. The Treasurer will then endeavor to obtain a satisfactory power of attorney from
the serviceman covering the bank's authority so to endorse the check. This procedure
requires that the check be credited to an account in the name of the serviceman or a joint
account in the name of the serviceman and the dependent. In either case the bank should
be satisfied that the dependent has authority to deposit the check in, and withdraw the
proceeds from, such account.
If it should subsequently develop that the dependent was not in fact authorized to
receive the proceeds of the check, and if the Treasury Department does not obtain an
appropriate power of attorney from the serviceman, the bank would, of course, have the
same responsibility to the Treasury Department on its endorsement that it would have
to another bank if it had placed a similar endorsement on a check drawn on such other
bank under the mistaken belief that it had authority from the payee of such check to do so.
Information concerning certain other, similar exceptions to the Treasury Department's
general policy referred to above is contained in our circular No. 2504 dated September 17,
1942, entitled 4'Endorsement of Certain Checks drawn on the Treasurer of the United
States", our circular No. 2577 dated January 22, 1943, entitled ''United States Savings
Bonds transmitted by Banking Institutions for Redemption" and our circular No. 2777
dated March 10,1944, entitled '' Endorsement of Government Checks representing Refunds
of Balances in Soldiers' War Bond Accounts".
This circular supersedes our circular No. 2823 dated July 29, 1944.




ALLAN

SPROUL,

President.

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