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F ederal




Dallas, Texas, April 20, 1948

To the Member and Nonm ember Clearing Banks
in the Eleventh Federal Reserve D istrict:

E ffective May 1, 1948, all Federal Reserve banks and
branches will accept cash items deposited with them by member
and nonm em ber clearing banks without description, other than
a listing on adding machine tape or cash letter. W ith this change
in procedure the third paragraph under the heading “ Preparation
o f Cash Letters by Sending Banks” in our Bulletin No. 8, dated
June 1, 1946, has been revised and the last paragraph has been
Even though the previous requirement o f the Federal Reserve
banks as to the description of cash item s is being eliminated,
depositing banks, in the interest o f sound banking, should main­
tain adequate records to enable them to identify their depositors
and charge back item s in the event they are lost or destroyed
in transit.
There are enclosed pages 5 and 6 o f Bulletin No. 8, which
contain the revisions referred to.
Please sign and return the attached card as an acknowledg­
ment o f the enclosure.

Y ours very truly,

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (

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B U L L E T I N N o. 8


All mail forwarded to the head office at Dallas should be addressed “ Federal
Reserve Bank, Station K, Dallas 13, Texas.”
In order to obtain prompt credit, member and nonmember clearing banks
should assort items and list them in separate letters in accordance with our
time schedules.
**A11 cash items, whether subject to immediate or deferred credit, may be
forwarded to us or may be forwarded by banks having the direct sending
privilege to other Federal Reserve banks or branches without description;
however, the depositing banks should maintain adequate records to enable them
to identify their depositors in the event any items are lost or destroyed in
transit between the depositing bank and the Reserve bank or branch to which
such items are sent for collection, or in the event any items are lost or de­
stroyed after receipt by the collecting Reserve bank or branch.

All cash items sent to us, or to another Federal Reserve bank direct for
our account, should be endorsed without restriction to the order o f the Fed­
eral Reserve bank to which sent, or to the order o f any bank, banker or trust
company, or with some similar endorsement. Cash items will be accepted by us,
and by other Federal Reserve banks, only upon the understanding and condi­
tion that all prior endorsements are guaranteed by the sending bank. There
should be incorporated in the endorsement o f the sending bank the phrase
“ All prior endorsements guaranteed.” The act of sending or delivering a cash
item to us or to another Federal Reserve bank will, however, be deemed and
understood to constitute a guaranty o f all prior endorsements on such items,
whether or not an express guaranty is incorporated in the sending bank’s
endorsement. The endorsement o f the sending bank should be dated and should
show the American Bankers Association transit number of the sending bank
in prominent type on both sides.

Federal Reserve banks will receive, handle and forward cash items subject
to the following uniform instructions regarding protest and advice o f non­
payment except that United States Government checks will not be protested:
* ( 1 ) D O N O T P R O T E S T items of $500.00 or less.
* ( 2 ) P R O T E S T dishonored items o f $500.01 or over, except those bearing
on their face the A .B .A . no protest symbol of a Federal Reserve bank
or o f a preceding bank endorser.
* ( 3 ) D O N O T W IR E A D V IC E o f nonpayment o f items o f less than

1 000.

$ ,

* ( 4 ) W IR E A D V IC E o f nonpayment o f all items of $1,000 or over, except
those not paid because of missing, irregular or unsatisfactory endorse­
ment and those bearing on their face “ DO N O T W IR E N O N P A Y ­
M E N T ” with the A .B .A . transit number of a Federal Reserve bank
or of a preceding bank endorser.
*These provisions changed and became effective March 1, 1948.
**Revised, effective May 1, 1948.

June 1, 1946



All Federal Reserve banks will receive, handle and forward cash items only
in accordance with these uniform instructions, and any contrary or special
instructions noted on cash letters or otherwise transmitted with cash items will
be disregarded.
I f a bank should desire to have any cash item handled by us or by any
other Federal Reserve bank under any instructions differing from the uniform
instructions given above, it will be necessary for such bank to forward such
item as an individual noncash item, with the instructions noted in the letter
o f transmittal, for collection and credit when paid, in accordance with the
terms o f our current bulletin relating to the collection o f noncash items.

Charges for all telegrams pertaining to payment, nonpayment or tracing
o f items, or in connection with receiving or transmitting any other informa­
tion or instructions, will be made at commercial rates against the banks from
which such items were received; telegrams to such banks will be sent “ collect.”

W e publish and furnish to member and nonmember clearing banks time
schedules showing when cash items will become available for reserve and with­
drawal or other use by the sending banks after receipt by us at our head office
or branches. F or all items received as cash items the sending bank will be
given immediate credit or deferred credit, in accordance with such time sched­
ules and as provided in Regulation J. Credit for letters containing items
unassorted as to availability may be deferred for the longest period o f avail­
ability prescribed by the current time schedules o f this bank with respect to
any item enclosed, not to exceed three business days.
Time schedules do not in many instances show the actual time required for
collection, and advices received from us showing the availability o f items can­
not be considered as advices o f actual payment on the dates o f availability.
Credit will in all instances be subject to receipt o f payment by us in actually
and finally collected funds.

For all such cash items as are accepted for immediate credit in accordance
with our current time schedules, immediate credit will be given upon our books
at full face value in the reserve account or clearing account upon the day of
receipt, and the proceeds will at once be counted as reserve (in the case of a
member bank) and become available for withdrawal or other use by the send­
ing bank; provided, however, that we may in our discretion refuse at any time
to permit the withdrawal or other use o f credit given for any item for which
we have not yet received payment in actually and finally collected funds.

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