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FEDERAL RESERVE BANK
OF NEW YORK

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Circular N o . 2 9 0 8 . February 20, 1945,
Transmitting our Circular N o . 2907,
Effective March 1, 1945.

To the Member and Nonmember Clearing Banks
of the Second Federal Reserve
District:

W e are issuing and transmitting herewith our Circular No. 2907, effective March 1, 1945,
entitled ' 1 Collection of Noncash Items".

This supersedes our Circular No. 2023, which became

effective February 1, 1940.
The only change in the new circular is in Section 4 which has been amended to read as
follows:
" S E C T I O N 4.

PROTEST P R A C T I C E IN A B S E N C E OF INSTRUCTIONS

In the absence of specific instructions in the sending bank's collection letter, this bank will
receive, handle, and forward noncash items subj ect to the following protest instructions:
1. DO NOT PROTEST items of $100.00 or less.
2. PROTEST dishonored items of $100.01 or over, except bonds, debentures, coupons, and
other similar securities.''

This change from the present practice of not protesting noncash items of $50.00 or less
to the practice of not protesting items of $100.00 or less in the absence of specific instructions
in the sending bank's collection letter is being adopted by all the Federal Reserve banks, effective March 1,1945. It conforms to a similar change effective March 1,1945, in the practice with
respect to the protesting of cash items, which is being adopted by all the Federal Reserve
banks in response to the request of the American Bankers Association.
The enclosed Circular No. 2907, containing the above quoted provision, will not become
effective until March 1, 1945. Until that date, the current provisions of our Circular No. 2023,
providing for the protest of dishonored items of $50.01 or over, remain in effect.
Additional copies of the enclosed circular will be furnished upon request.




ALLAN

SPROUL,

President.

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