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F E D E R A L RESERVE B A N K OF D A L L A S
Circular No. 43.

November 1st, 1916.

INSURANCE OF CURRENCY SHIPMENTS— TRANSPORTATION CHARGES ON
SHIPMENTS COVERING DEBIT BALANCES IN DISTRICT CLEARING HOUSE

TO TH E CASHIER OF TH E MEMBER BANK AD D RESSED :
Paragraphs six and seven of circular No. 37, June 27th, 1916, are superseded by this circular.
As contemplated when circular No. 37 was issued, arrangements have now been made by which
currency may be sent to us by any bank or banker in this district by registered mail insured under
policies issued to us at the same rates which we ourselves pay on outgoing shipments.
ALE T H A T IS NECESSARY TO REN DER TH E INSURANCE BINDING FROM TH E
TIM E OF D E L IV E R Y OF T H E PACKAGE TO T H E POST OFFICE IS TO REG ISTER TH E
PACKAGE, ADDRESSED TO TH IS BANK, AN D M AIL US A LE T TE R ON T H E SAME DAY,
UNDER SEPARATE COVER, A CARBON OF W H ICH LETTE R SHOULD BE PLACED IN
T H E PACKAGE FO RW AR D E D , AD VISIN G SHIPM ENT BY STATING T H E AM OU N T AND
REQUESTING US TO INSURE UNDER OUR POLICIES. NO W R IT IN G SHOULD APPEAR
ON TH E PACKAGE IN D ICATIN G ITS CONTENTS,

BUT YOUR

RETURN ADDRESS

SHOULD BE SHOWN.
A L L PACKAGES MUST BE SEALED W IT H W A X , SECURELY W R A P PE D AND TIED
TO A V O ID BREAKAGE IN TRAN SIT.

SEALING W IT H W A X IS A REQU IREM EN T OF

T H E INSURANCE POLICY.
When currency shipments are made under the terms of our clearing circular No. 35 for the credit
of your reserve account to prepare it to meet settlement checks for debit balances in the District Clear­
ing House, if you will notify us to that effect on Form DCH-5, a supply of which was furnished you
with circular No. 37 or may be obtained on request, we will assume the insurance premium and reim­
burse you for the amount of postage and registration fee.
An explanation of the use of Form DCH-5 is printed on the form itself, but please note the follow­
ing carefully:
FORM DCH-5 M AY BE FILLED OUT W IT H CARBON.

TH E O RIG IN AL SHOULD BE

FO RW AR D E D , UNDER SEPARATE COVER, DIRECT TO TH E A U D ITIN G D E P A R T M E N T ;
T H E D U PLICATE COPY SHOULD BE ENCLOSED IN TH E PACK AG E; T H E T R IPLIC A TE
FORMS A D EBIT EN TRY TO YO U R RESER VE ACCOUNT TO OFFSET T H E CREDIT FOR
TH E AM OUNT OF SETTLEM EN T CHECK W H IC H T H E SHIPM ENT COVERS.

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

If it is not practical to report the amount of postage and registration fee on the duplicate form
enclosed in the package, the advice of this amount may be afterwards inserted on the original form
addressed to the Auditing Department before the advice is mailed.
IN NO CASE W IL E POSTAGE AND REG ISTRATIO N FEE BE CREDITED TO MEM­
BER BANK’S ACCOUNT IF FORM DCH-5 IS NOT PRO PERLY USED IN CONNECTION
W IT H TH E SHIPMENT.
As we have provided a means of shipping currency to us at the minimum expense, transportation
charges on any shipments forwarded to us in any other manner will be borne by this bank only to
the extent of what the expense would have been if shipped under the method provided.
To cover settlement checks, shipment of coin, and bills of less than five dollars denominations may
be sent by express, but in all cases must be sent collect.
You are reminded that the Federal Reserve Bank is not a proper place, or authorized, to redeem
mutilated currency of any character except Federal reserve notes and Federal reserve bank notes.
Transportation charges on mutilated currency will not be borne by this bank, and in' addition the
member bank will be debited the cost of redemption of such currency, at present 40c per $1,000.
Shipments to us to cover settlement checks will not be permitted in cumulative amounts except
where more than one settlement check is received and forwarded to us on the same day.

For conven­

ience, amounts forwarded may be in the next highest hundreds to avoid odd amounts and a mixed
character of fundsv
Shipments may be made to us by member banks under this method for the credit of their ac­
count without reference to clearing operations, in which event the amount of insurance premium will
be debited to the forwarding bank, and postage and registration fees borne by them.
In making shipments of currency the following rules for your protection should be observed:
(1)

Have the currency counted if possible by two responsible employes of the bank.

(2)

Have the currency put up in one or more packages and sealed by or in the presence of the

same person who counted it. In every case request should be made that a return card, showing delivery
of the package, be furnished by the post office authorities.
Notify us immediately by letter, under separate cover, that shipment has been made, and in addi­
tion always use Form DCH-5, stating approximately the time when the shipment is forwarded, amount
and kind of money and number of packages.
To minimize the expense of handling on receipt here, all currency should be carefully assorted,
both as to kind and denominations; and only that fit for circulation, except Federal reserve notes,
should be sent us.
Your attention is directed to circular No. 31, February 10th, 1916, in reference to shipping Fed­
eral reserve notes to this bank direct at our expense for the purpose of covering transfers to other Dis­
tricts ordered of us. Such shipments may be insured in the manner set out above, and this bank will
reimburse the forwarding bank for the transportation cost and assume the insurance premium.
Respectfully,
J. W . HOOPES,
Acting Governor.

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