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MISCL.

14.

20M-J0125

FEDERAL RESERVE BANK
O F D A LL A S

A p r il 7 , 1915c

NUMBER 15«

TO THE M BER BANK ADDRESSEE:
EM
The F ederal R eserve Bank o f B a lia s , in accordance w ith the
terms o f the F ederal R eserve A ct and the r u lin g s o f the F ederal R eserve
Board, i s p rep a red t o in a u gu ra te, f o r the B e n e fit o f i t s members, a
system o f i n t r a - d i s t r i c t c o l l e c t i o n , th at i s , a system of c o l l e c t i o n o f
chociss and d r a fts r e c e iv e d from and drawn on member banks in D is t r ic t
h o « 11, Membership in th e system w i l l be v o lu n ta ry and items w i l l b o - r o c e iv e d on ly from and upon th ose banks which j o i n i t o Such items w i l l be
im m ediately c r e d it e d and d e b ite d t o the accounts o f the sending and p ayin g
banks r e s p e c t iv e ly , s u b je c t t o f i n a l payment*
For the p resen t the system w i l l not embrace i n t e r - d i s t r i c t c o l ­
l e c t i o n o f checks and d r a ft s drawn on or endorsed by banks o u tsid e o f
D is t r ic t ho. 1 1 , excep t th at we w i l l r e c e iv e f o r immediate c r e d it d r a fts
drawn on member banks in the c i t i e s o f hew Y ork, Chicago and S t . L o u is .
Such broader s e r v ic e can on ly be d evelop ed f o r the member banks o f the
v a riou s d i s t r i c t s a f t e r ex p erien ce s h a ll have been gained in o p e r a tin g the
i n t r a - d i s t r i c t s e r v ic e now o f f e r e d .
This system is not in ten d ed t o supersede the exchange o f checks
through l o c a l c le a r in g h o u s e s or o th e rw is e , w here-ever the c o l l e c t i o n o f
checks i s b e in g made more q u ic k ly or eco n o m ica lly by d ir e c t in terch an ge
between the banks o f the s e c t io n than w ould be p o s s ib le under the p roposed
p la n , as f o r example, between nearby c i t i e s » Such r e l a t i o n s , f o r rhe p re ­
sent at l e a s t , may continue#
The c o l l e c t i o n system o u t lin e d h e r e in i s o ffe r e d by th e Federal
R eserve Bank o f D allas as the f i r s t s te p in the improvement o f present,
methods o f c o l l e c t i n g checks w ith in i t s d i s t r i c t ?
I t is the r e s u lt o f much
c o n s id e r a tio n on the p a rt o f the d ir e c t o r s and o f f i c e r s o f t h is bank, o f
many con feren ces o f the governors o f the v a riou s F ederal R eserve Banks,
This p la n has been a u th orized by the F ederal R eserve Board, and i t is under­
s to o d th a t s u b s t a n t ia lly s im ila r systems o f i t r r a - d i s t r i c t c o l l e c t i o n s w i l l
be in trod u ced by oth er F ederal R eserve Banks. This system w i l l be s u b je c t
t o .such m o d ific a tio n s or ex ten sion s as ex p erien ce may show from tim e to time
t o be n ecessa ry or a d v is a b le .
The d ir e c t o r s o f each member bank which jo in s the c o l l e c t i o n system
w i l l be re q u ire d t o adopt and f i l e w ith the F ed eral R eserve Bank o f B a lia s ,
a r e s o lu t io n a g reein g t o th e r u le s and requirem ents o f the system . Two co p ie s
o f the r e s o lu t io n s and r u le s and requirem ents are e n c lo s e d h e re w ith , one o f
which i s t o be execu ted and retu rn ed to t h is bank when th e r e s o lu t io n has been

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adopted by your board o f d i r e c t o r s , the oth er t o bo r e ta in e d in your own f i l e s
A c tio n th ereon by your board is req u ested b e fo r e Hay 15, 1LS15*
A fu r th e r c ir c u la r w i l l be is su e d co n ta in in g a l i s t o f the banks
which hare jo in e d the c o l l e c t i o n system , announcing the date upon which i t
w i l l b eg in op era tion s and g iv in g such fu r th e r in fo rm a tio n as may be n e ce s ­
sary®
Very r e s p e c t f u lly y o u r s ,
.

A/.

' /y /

A A*
Governor

c
•

'c

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