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F O R M M 1 S C L - 14.

8 M 7M O M -8535

FEDERAL RESERVE BANK
OF DALLAS

M
JIC6ER 15-B.
TO THE M BER
EM

May 2 0 , 1915.
BANK ADDRESSED:

Pursuant t o the o u t lin e subm itted in our C ir c u la r #15 o f A p r il 7th and
the accompanying R ules and Requirem ents, t h is bank w i l l , e f f e c t i v e June f i r s t ,
begin th e o p e r a tio n o f i t s 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 .
On and a f t e r th at date on ly item s drawn on members o f th e c o l l e c t i o n s y s ­
tem, not b ea rin g the endorsement o f a bank which has not jo in e d , d e p o site d by a
member o f the system , w i l l be a ccep ted f o r c r e d i t , except that we w i l l c r e d it on
r e c e i p t , d r a ft s drawn by member banks (re g a r d le s s o f membership in our c o l l e c t i o n
system) on members o f th e F ederal R eserve System in th e c i t i e s o f New Y ork, Chicago
and S t, L o u is, at th e r a te o f exchange prom ulgated from tim e to tim e b y -t h is bank,
and w i l l , u n t il fu r th e r n o t i c e , accep t items drawn by a l l member banks on members
o f th e Federal R eserve System in th e c i t i e s o f B oston, P h ila d e lp h ia , C levelan d , Kan­
sas C ity , A tla n ta , San F r a n cis c o , M inneapolis and Richmond, s u b je c t t o d e fe rre d
c r e d it based on the a ctu a l time n ecessa ry f o r th e funds to be to our c r e d it w ith
the Federal Reserve Banks o f th ese c i t i e s . T ra n sfers o f funds to the F ederal Re­
serv e Banks in the above m entioned c i t i e s f o r our c r e d it may be made on th e same
b a s is , and forms to be used are in cou rse o f p re p a ra tio n and w i l l be fu rn ish ed
when com pleted. This arrangement i s not intended to enable our members t o accumu­
la t e balan ces w ith the o b je c t o f t r a n s fe r r in g funds to oth er cen ters f o r conven­
ie n c e , but to p r o v id e a f a c i l i t y f o r r e -e s t a b lis h in g and m aintaining t h e ir re se rv e
requirem ents.
THE PRACTICE OF ACCEPTING ITEMS DRAW BY M BER BANKS ON M BER BANKS IN
N
EM
EM
THE SEVERAL RESERVE CITIES IN THIS DISTRICT WILL ' AFTER THE COLLECTION SYSTEM BE­
COM EFFECTIVE?, BE DISCONTINUED, EXCEPT IN SO FAR AS IT WILL OBTAIN UNDER THE RE­
ES
QUIREMENTS 'OP THE SYSTEM.
P r io r to June f i r s t , banks which have jo in e d th e c o l l e c t i o n system w i l l
be p rov id ed w ith a l i s t o f a l l members, and h e r e a ft e r on the f i r s t and f i f t e e n t h
days o f each month, w i l l be n o t i f i e d o f any a d d itio n s or w ith draw als. R e s o lu t io n s ,
which have been delayed f o r any re a so n , r e c e iv e d not la t e r than May 26,1915 w i l l
cause th e name o f the a sse n tin g bank to be in clu d ed in the f i r s t l i s t o f members, a . •
A ssen tin g members are reminded that t h is p la n contem plates not on ly tfc:
c o l l e c t i o n o f checks and d r a ft s drawn by member banks on member banks, but checks
and d r a ft s payable on p r e s e n ta tio n drawn on any member bank which has jo in e d the
system , whether drawn by member banks, in d iv id u a ls , co rp o ra tio n s o r fir m s .
F a ilu r e to jo i n the c o l l e c t i o n system does not r e s t r i c t th e usage of
oth er f a c i l i t i e s p rov id ed by t h is bank f o r i t s members.
It i s hoped by th e management o f your F ederal R eserve Bank th a t th ose
members which have not assen ted t o the c o l l e c t i o n p la n w i l l l o s e no op p ortu n ity to
in v e s t ig a te i t s p r a c t i c a l o p e r a tio n , as s im ila r systems in oth er F ederal Reserve
Banks are nqw b ein g operated s u c c e s s f u lly and to the s a t i s f a c t i o n o f t h e ir members.
In th e S t . Louis d i s t r i c t , a f t e r v olu n ta ry inform al o p e ra tio n fo r se v e ra l months,
the form al p lan was jo in e d by 363 out o f 459 banks, on ly 96 not a s s e n tin g .
R e s p e c t f u lly ,
R . L. VAN EANDT,
Governor

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

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