View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RE SE R V E BANK
O F NEW YORK
38
May 27,
[ Circular No. 19525 8 1J

PAP ER C U R REN CY A N D COIN
Revision of Operating Circular No. 3
To all Member and Nonmember Banks
in the Second Federal Reserve D istrict:

W e transmit herewith a copy of our Operating Circular No. 3, entitled “ Paper Currency
and Coin,” revised effective today.
The circular has been revised because we are compelled to restrict deposits and with­
drawals o f paper currency to standard package and bundle units.
In 1947 the Bank Management Commission o f the American Bankers Association completed
an extensive study o f the problems arising from a lack o f uniform ity in packaging currency and
from the variety o f straps then used. The findings and recommendations o f the Commission
were presented in Bank Management Publication No. 114 o f the American Bankers Associa­
tion, entitled “ Standards for Currency Straps, Coin W rappers, and Packaging.” The Com­
mission pointed out in that publication that standardization in banking practices reduces errors
and increases efficiency; that new and inexperienced operators may be confused when hand­
ling packages o f currency that vary in amount o f contents; and that lack o f standardization in
packaged amounts contributes to cash differences. The Commission concluded, accordingly,
that it would be in the interest o f more efficient bank operating procedure if packages o f cur­
rency were uniform in amounts.
Our experience fully confirms this conclusion. While much of the currency withdrawn and
deposited has been prepared in package units of 50 or 100 pieces o f the same denomination,
and in bundle units o f 5 or 10 packages of the same denomination, a substantial portion of all
withdrawals and deposits has consisted of currency arranged in less than these package and
bundle units. Moreover, the substantial increases during recent years in the volume of
currency in circulation have imposed severe strains on our staff and facilities for receiving,
distributing, and redeeming currency, and has made it impractical fo r us to continue the prac­
tice o f accepting deposits and making payments of fit currency in other than standard pack­
ages and bundles.
Accordingly, fit currency in the $1, $2, $5, $10, and $20 denominations will be furnished
hereafter only in the following standard units, which should also be used for arranging cur­
rency intended for deposit with u s :

Denomination

N um ber o f packages
( o f 100 pieces)
to a bundle

Am ount

$ 1

10

$ 1,000

$ 2

5
10

$ 1,000
$ 2,000

$ 5

10

$ 5,000

$10

5
10

$ 5,000

1 to 10

$2,000 to $20,000

$20

$10,000

Paragraphs 2, 17, and 18 of the revised operating circular set forth the new requirements.
Other revisions reflect only minor editorial changes.
Additional copies of this circular and o f the enclosure will be furnished upon request.




A

llan

S

proul,

P r e s id e n t.

F

ederal
of

R
N

eserve

ew

Y

B

ank

ork

[

O p e r a t in g C ir c u la r N o . 3 *[
R e v is e d M a y 2 7 , 1 9 5 2 J

PAPER CURRENCY AND COIN
To all Member and Nonmember Banks
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. 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 BANK 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:
Denomination

$1
$2

Number o f packages
(o f 100 pieces)
to a bundle

Amount

10
$ 1,000
5
$ 1,000
10
$ 2,000
$5
10
$ 5,000
$10
5
$ 5,000
10
$10,000
$20
1 to 10
$2,000 to $20,000
$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.”




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 100 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 by 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 Of­
fice: 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 torn 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
To 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 11 with respect to ship­
ments by insured fourth-class mail, the amount in each bag should be
as follows:
Silver D o lla r s .. $1,000 in each bag
H a lf D o lla r s .. . $1,000 in each bag
Q uarter D ollars $1,000 in each bag

Dimes . . . . $1,000 in each bag
Nickels . . . $ 200 in each bag
50 in each bag
C e n t s ......... $

Method o f shipment

11. All coin shipments should be sent by express,* charges collect,
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 fourth-class
mail should not exceed $200, 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
*
The terms *‘ express ’ * and ‘ ‘ express company, ' ’ as used in this circular, refer
to the Railway Express Agency, Inc.




3

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, 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 BANK OF NEW Y O R K

Paper currency and coin
16. W e 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. W e 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

$1
$2
$5
$10
$20

Number o f packages
(o f 100 pieces)
to a bundle

A mount

10
5
10
10
5
10
1 to 10

$ 1,000
$ 1,000
$ 2,000
$ 5,000
$ 5,000
$10,000
$2,000 to $20,000

$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 10 packages to a bundle.
New paper currency

18. W e will furnish new currency in the $1, $2, $5, $10, and $20
denominations only in standard units of 100 pieces of the same denom­
ination 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 re­
duced.
Neto 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 paper currency and coin should be made on forms
supplied 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.
Method 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 of the bank requesting the shipment. If




5

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 o f 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 in accordance with the terms and condi­
tions of our current circular regarding the collection of cash items
and of our published time schedules.
Contents o f coin bags

23. Coins are shipped in standard bags containing the following
amounts:
S ilver D olla rs. . $1,000 in each bag
H a lf D o lla r s .. . $1,000 in each bag
Q uarter D ollars $1,000 in each bag

Dimes . . . . $1,000 in each bag
Nickels . . . $ 200 in each bag
50 in each bag
C e n t s ......... $

Advice o f 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 o f 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 by registered mail and express
Certain risks assumed by 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
any 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




6

(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;
P rovided, 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 by us

27.
W e will not assume any risk of loss in any of the following
circumstances:
(a) Any loss resulting from capture, seizure, arrest, restraint,
detainment, confiscation, preemption, requisition, or nation­
alization by or under the authority of any Government (de
facto or otherwise) or any agency thereof whether civil or
military, and the consequences thereof or of any attempt
thereat, whether in time of peace or war and whether lawful
or otherwise, or from aerial or other bombardment, or as a
consequence of hostilities or warlike operations (whether
there be a declaration of war or not), piracy, civil war,
revolution, rebellion, or insurrection or civil strife arising
therefrom.
(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 under any insurance or any
surety or indemnity agreement carried 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 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




7

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
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 paragraphs 6 and 11 of this circular.
(b) The contents of the shipment shall be verified 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 verification and the packing and sealing of the package
shall be done by an employee of the sender and the sealed
package shall be in charge of a responsible person until
deposited and registered at the post office or delivered into
the custody of the express company, or shall be in the cus­
tody of an armored car service in transit from the office of
the sender to the post office or to the office of 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 by us

29. W e will not assume any risk of loss in respect of a shipment
by us by registered mail or express where the addressee bank takes
delivery of the shipment at any place other than the office of the
addressee bank, unless the shipment shall be in charge of a responsible
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 addressee
bank.
Payment o f 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 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 insti­
tution of legal proceedings in its own name if deemed necessary by us.




8

Unless and until there is a change in our policy, in the event any
bank recovers a loss in whole or in part under insurance, or a surety
or indemnity agreement, 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, or surety or indemnity agreement, is increased, the amount
of such increase, if deemed by us to be reasonable, will be reimbursed
by us.
Shipment by other means o f transportation

31. In the case of a shipment of paper currency or coin to us by
any 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. If 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) of 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.
Outgoing shipments to nonmember banks

32. W e do not assume any risk of loss incident to the shipment of
paper currency or coin by us to a nonmember bank. The risk of loss
incident to such shipments, however, is or may be covered as follows:
(a) 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 of the nonmember bank under certain registered
mail insurance policies carried by us. These policies cover
all risks, except theft by employees of the sender or of the
addressee and so-called war risks (similar to those described
in paragraph 27 (a )). Risk attaches from the time of leav­
ing 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 continues 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




9

returned to the sender. Liability under these policies is
limited to $10,000,000 on property dispatched from any one
sender to any one addressee on any one train, boat or other
conveyance.
(b) 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.

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 authoi*ities 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 cou n terfeit obligations and other securities and
coins authorized. A u th ority is hereby given to all banks and banking
institutions o f any nature whatsoever organized under general or special
federal o r state statutes, to all United States P ost Offices, and to all dis­
bursing officers o f the United States and their agents, to take possession
o f and deliver to the Treasury D epartm ent through the Secret Service
D ivision all counterfeit obligations and other securities and coins o f the
United States o r o f any foreig n governm ent which shall be presented at




10

their places o f business. (S ec. 492, Pub. Law 772, 80th C on g .; 18 U.S.C.
492)

36. The following information is transmitted at the request of
the United States Secret Service:
A ll counterfeit, altered o r raised currency received by banks from
any source should be prop erly branded in ink or b y rubber stam p. A ll
such currency and all counterfeit or altered coin received by banks from
any source should be forw arded to the nearest office o f the United States
Secret Service. The Secret Service has offices in R oom 917, Federal Office
Building, 90 Church Street, New Y o rk 7, N . Y . ; in the U. S. Court
House, B uffalo 1, N . Y .; in the P ost Office B uilding at Utica 1, N . Y .;
and at 1060 B road Street, Newark 1, N. J.
A receipt will, u pon request, be issued to the depositing bank fo r
any currency o r coin that is fou n d to be counterfeit, raised o r altered.
I f inspection o f such currency o r coin is desired f o r reclamation purposes,
request should be made direct to the Secret Service office to which the
currency o r coin was forw arded.
Inform ation which m ay aid the Secret Service with respect to any
counterfeit, altered or raised currency, o r any counterfeit or altered coin
should be sent to the nearest office o f the Secret Service.
Fragm ents o f currency (especially the ends) are sometimes used
illegally in raising o r altering low er denominations to higher. T o prevent
such unlaw ful operations these fragm ents should be collected and
destroyed o r forw arded to the nearest office o f the Secret Service fo r
destruction.

Agreement to this circular

37. Any bank shipping, or causing the shipment of, paper cur­
rency or coin to us, 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

38. 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

39. This circular supersedes our Operating Circular No. 3, Revised
September 23, 1949, and the First Supplement thereto dated August
8, 1950.




A llan

S prou l,

President.

ll

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