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FEDERAL RESERVE BANK
OF D ALLAS
August 3rd, 1921.

IMPORTANT INFORMATION
TO ALL
BANKING INSTITUTIONS IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
The plan provided for prompt advice by wire, at the expense of this
Reserve Bank, of unpaid items is not being strictly followed. Several banks
in our district are failing to comply with instructions in our cash letters
concerning unpaid items. Many items of $500.00 and over are returned to us
daily without advice of non-payment having been previously wired, and
protestable items are often returned without being protested. Some instituĀ­
tions do not realize the importance of wiring advice of unpaid items. The
receipt of this information at the earliest possible moment is of great
benefit both to the depositing bank and its customers and, in many instances,
may be the means of averting a loss. Furthermore you may be held liable
by an endorser for any loss they may sustain through your failure to follow
instructions. These instructions are explained below, and your conformity
thereto in the handling of unpaid items will be appreciated.
1.

Wire promptly non-payment of all items of $500.00 and over,
giving date of our letter in which the items were enclosed
and name or transit number of the endorsement immediately
preceeding that of this bank.

2.
3.

Items of $10.00 or under - Do Not Protest.
(If items do not bear
Items over $10.00 - Protest (this stamp N. r. 32-3
(stamp containing the
(of a preceeding bank

4.

Denote plainly on each item returned, the reason for its dishonor.

5.

Return all unpaid items, listing them on the back of the settleĀ­
ment check, deduct the total from the amount shown on the face
of the settlement check, draw your draft for the balance, attach
the return items and draft to the settlement and send to us by
first mail in the self addressed stamped envelope enclosed.

on the face
or a similar
transit number
endorser.)

Compliance with the above will be mutually beneficial to all and
will assist us in giving information of dishonored items at the earliest
possible moment.
Yours very truly

R. B. Coleman,

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

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