View PDF

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Fed er a l Reser v e

bank of

Dallas

D A LLA S , T E X A S

April 11, 1956

To the Member Banks of the
Eleventh Federal Reserve District:
Enclosed is a copy of our operating Bulletin No. 5 relating to currency and
coin services, revised as of April 4, 1956. This supersedes Bulletin No. 5 dated
January 1, 1945.
The revised bulletin contains editorial changes which we hope will make it
easier to read and facilitate its use. No major changes have been made relative
to the ordering or shipping of money; however, your attention is directed to
the following:
(1) Paragraph No. 5, subparagraph (2) has been reworded and the list of
losses not assumed by this bank now includes “any loss caused by any
weapon of war employing atomic fission or radioactive force whether
in time of peace or war.”
(2) Paragraph 9 shows the standard units of currency and coin shipped
by this bank. Most banks currently are ordering money in multiples of
these standard units. Your cooperation in this respect will expedite the
filling of your order.
(3) Paragraph 31 contains instructions for shipping coin to this bank from
banks located in towns which do not have express facilities.
Please bring this bulletin to the attention of personnel in your bank con­
cerned with the ordering and shipping of money. The revised copy should be
substituted in your ring binder for Bulletin No. 5 dated January 1, 1945.
We wall be pleased to furnish additional copies of this bulletin upon request.
Yours very truly,
Watrous H. Irons

President

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

FEDERAL RESERVE BANK
OF DALLAS

BULLETIN No. 5
Effective April 4, 1956
(Superseding Bulletin No. 5,
dated January 1, 1945)

CURRENCY AND COIN
To the Member Banks of the
Eleventh Federal Reserve District:
This bulletin describes the cash services of the Federal Reserve Bank
of Dallas and supersedes Operating Bulletin No. 5 dated January 1, 1945. Any
bank shipping or causing or ordering currency or coin to or from this bank or
any branch thereof shall by such action be deemed to have agreed to the terms
and conditions of this bulletin with respect to such shipments. For purposes
of this bulletin and unless stated otherwise, all references to the Federal Reserve
Bank of Dallas or “this bank,” shall include its branches at El Paso, Houston,
and San Antonio.
SCOPE OF SERVICE

1. All forms of United States currency and coin will be received for credit,
redemption, exchange, or replacement, subject to conditions stated herein and
applicable Federal laws and regulations. This bank will supply all available
current denominations of currency and coin subject to the rules of this bank
and regulations of the Treasury Department. The amount of new currency
and coin available will be governed by the amount of fit currency or circulated
coin on hand.
2. The Federal Reserve Bank of Dallas will absorb the cost of postage and
expressage and will assume all risks, except those herein specifically excluded,
incident to shipments of United States currency and coin to and from member
banks when such shipments are ordered from this bank or are prepared and
forwarded to this bank in accordance with the provisions of this bulletin.
RISKS INCIDENT TO SHIPMENTS TO AND FROM BANKS

Assumption of Risk
3. Any bank shipping or causing or ordering shipments of currency or
coin to, from or for the account of this bank or any branch thereof shall by such
action be deemed to have agreed to the following terms and conditions with
respect to such shipments:
4. Subject to the terms of this bulletin, the Federal Reserve Bank of
Dallas will assume all risks incident to the transportation of such shipments of
currency or coin (a) by registered mail and (b) by such other means of trans­
portation as may be selected by this bank, from the time such shipments leave
the office of the sending bank until delivered at the office of the addressee bank,
except as enumerated below; provided, however, that the Federal Reserve
Bank of Dallas will not assume any risk for shipments sent by Railway Express
Agency, Inc., while such shipments are in the custody of the Railway Express
Agency, Inc., as the rate charged by the express company on such shipments
is based on the declared value and the ordinary risks of loss are assumed by the
express company under its shipping contract:

—2 —

BULLETIN No. 5

Exceptions
5. The Federal Reserve Bank of Dallas will not assume any risk of loss
in any of the following circumstances, and any loss thereunder is agreed and
understood to be assumed by the bank shipping or causing or ordering such
shipment:
(1) Any loss in excess of $2,000,000 on all shipments by any one bank­
ing office to this bank on any one day.
(2) Any loss resulting from hostile or warlike action by any military,
naval, air forces, or agents of domestic, foreign or revolutionary
governments, powers, or forces, whether or not war has been
formally declared and including defending against an actual or
expected attack; or any loss caused by any weapon of war employing
atomic fission or radioactive force whether in time of peace or war.
(3) Any loss resulting from any dishonest, fraudulent, or criminal act
of an employee of any bank, other than this bank, shipping, causing,
ordering or receiving the shipment.
(4) Any loss to the extent recoverable from any insurance, surety, or
indemnity company pursuant to purchased insurance, surety or
indemnity (including bankers’ blanket bond), whether primary or
excess, carried by or maintained by any person other than this bank.
(5) Any loss on any shipment by any bank other than this bank not made
in conformity with the provisions of this bulletin.
Preparation of Shipments
6. Any bank shipping or causing shipments of currency or coin to or for
the account of this bank or any branch thereof shall by such action be deemed
to have agreed that all such shipments shall be prepared and verified by one or
more responsible employees of the sender and that the sealed package shall be in
charge of a responsible person until deposited and registered at the post office,
or, if the shipment is by express or armored car, until receipted for by the
express office or armored car service, and that the contents of all packages
shall be enclosed in a strong wrapper, envelope, or cloth or canvas bag, well
secured, and sealed in a manner acceptable to the post office, express office, or
armored car service at the place of mailing or dispatch.
UNNECESSARY DEPOSITS AND WITHDRAWALS

7. In view of the heavy cost of maintaining this service, the cooperation
of member banks is requested to avoid unnecessary shipments. It is suggested
that accumulations of fit currency in excess of requirements be made available
to other banks in the same community and that needed currency be obtained
from other banks in the community if fit currency is conveniently available at
such banks. Member banks are also expected to anticipate their requirements
and whenever possible to refrain from shipping this bank currency and coin
fit for further circulation if money of the same denominations is likely to be
needed in the near future. The interchange of currency and coin by local banks
and the exercise of care in anticipating requirements will reduce to a minimum
the shipments to and from the Federal Reserve Bank of Dallas, and your
cooperation will be greatly appreciated.

3

BULLETIN No. 5

SHIPMENTS OF CURRENCY OR COIN BY THE FEDERAL RESERVE
BANK OF DALLAS

Ordering Currency and Coin
8. Member banks should order currency and coin on form Cash 15.
(Supplies of this form will be furnished on request.) All such orders should
bear an authorized signature. In the event this form is not used, orders should
be by letter, bearing an authorized signature, containing instructions to ship a
definite schedule of currency and coin and to charge the reserve account of the
ordering bank. Orders should not be written on cards, advice tickets, remittance
forms, or in letters pertaining to other transactions. Compliance with this
request will expedite shipments.
Standard Units of Currency and Coin Shipped by this Bank
9. In anticipating the needs of banks served by the Federal Reserve Bank
and in order to assure prompt service in supplying the demand for cash, cur­
rency is strapped in standard packages and coin is sacked in standard bags.
Orders for currency or coin should be for the following standard units or
multiples thereof when practicable.
Currency

Coin

$50 - $100
Cents ___
Ones _________ ________ $100
$200
Nickels__
Twos_________________ $200
$500-$1,000
Dimes___
Fives ______ - ________ $500
$500 - $1,000
Quarters Tens _________ _______ $1,000
$500 - $1,000
Halves __
Twenties_____ ________ $2,000
Dollars__ .....$100-$500-$1,000
Fifties _______ _______ $5,000
Hundreds ____ _______ $10,000
Closing Hours for Shipments
10. The vaults of the Federal Reserve Bank of Dallas, including its
branches, are closed on Saturdays. Member banks are urged to keep this in
mind in anticipating their cash requirements. Requests for shipments of cur­
rency and coin will be acted upon promptly on the day of receipt if received
not later than 2 :00 p.m. Banks placing orders by mail should assure themselves
that such orders will reach this bank in time for dispatching the shipment for
arrival on the expected date.
Emergency Requests
11. Emergency orders may be made by telegram in A.B.A. code with proper
test word, or by telephone, charges collect. Telephoned or telegraphed orders
must be confirmed immediately by letter or copy of the telegram, bearing an
authorized signature.
Method of Shipment
12. Shipments of currency or coin from this bank to member banks will
be made by registered mail, express, or by such other means of transportation
as may be selected by this bank.

— 4—

BULLETIN No. 5

Postal Limitations
13. Postal regulations have imposed certain limitations and restrictions
on the shipment of money to certain towns where railway postal service is not
provided. Banks affected have been apprised of these limitations and restrictions
and their cooperation in this respect is solicited in placing orders with this bank.
14. Banks also are requested, as a practical measure, to place orders for
currency and coin so that they can be dispatched for arrival and delivery on
a business day. Postal authorities have ruled it unwise to permit dispatch of
money which would be held over at the receiving post office during Sunday or
a holiday.
Shipments to Others at Request of Member Banks
15. At the request of member banks and at their expense and risk, ship­
ments of currency and coin will be made to their correspondent banks. Such
shipments will be made by registered mail, and unless instructed to the contrary,
this bank will insure them under its registered mail insurance policies for the
account of the member bank.
16. These policies afford protection against loss from the time of accept­
ance by the messenger or carrier, whether within or without the premises of
the sender, and to end when actual delivery has been made to the office of the
addressee. They do not, however, cover losses through theft by the employees
of the sender or the addressee or losses by risks generally referred to as “war
risks”.
17. The policies contain the following clause eliminating such coverages:
“To cover . .. risks of physical loss of or damage to or destruction
of property insured, except theft on the part of employees of senders
or addressees, but this policy does not insure against: (a) capture,
seizure, arrest, restraint, detainment, confiscation, preemption,
requisition or nationalization, and the consequences thereof or of
any attempt thereat, whether in time of peace or war and whether
lawful or otherwise; any consequences of hostilities or warlike
operations (whether there be a declaration of war or not) but the
foregoing shall not exclude collision, explosion or contact with any
fixed or floating object (other than a mine or torpedo), stranding,
heavy weather or fire unless caused directly (and independently of
the nature of the voyage or service which the vessel concerned or,
in the case of a collision any other vessel involved therein, is per­
forming) by a hostile act by or against a belligerant power, the term
‘power’ as used herein including any authority maintaining naval,
military or air forces in association with a power; or any loss or
damage caused by any weapon of war employing atomic fission or
radioactive force whether in time of peace or war; (b) the conse­
quences of civil war, revolution, rebellion, insurrection, or civil
strife arising therefrom, piracy, risks of contraband or illegal trans­
portation or trade, and siezure or destruction under quarantine or
customs regulations.”
18. The liability of the insurers under these policies is limited to $10,000,000
on property from any one sender to any one addressee on any one day unless

— 5—

BULLETIN No. 5

dispatched by two or more trains, in which event the limit of liability shall apply
to each train separately, with the further limitation of liability that shipments
of currency shall not exceed $400,000 in any one shipping package.
Advice of Shipment
19. Mail advice will be sent to member banks covering each shipment, and,
if the shipment is not received promptly, the head office or branch making it
should be immediately notified by telephone or telegraph.
Verification of Shipment
20. All shipments should be verified (piece counted) immediately upon
arrival, by the receiving bank, and any discrepancy found should be reported
to this bank. Receipt of a shipment of currency or coin must be acknowledged
by officially signing the accompanying receipt form and returning it in the
enclosed envelope addressed to the General Auditor of this bank. Where dis­
bursement of currency or coin is made without verification, this bank will assume
no liability.
SHIPMENTS OF CURRENCY TO THE FEDERAL RESERVE
BANK OF DALLAS

Preparation of Currency for Shipment
21. All currency included in each shipment should be sorted and packaged
by denomination, face and top up, and should be enclosed in paper currency
straps, each strap containing 100 notes, with the name of the depositing bank,
date, amount, and the number or stamp of the teller counting the package,
appearing on each strap. (Under no circumstances should rubber bands, pins, or
clips be substituted for paper straps.) In so far as possible packages should be
assembled by denomination into units of 2,000 notes each. Each unit should
be securely tied so as to avoid collapse while in transit. The weight of all units
allowed in one sack and under one registry is determined by postal regulations.
Placing in each sack a number of units, not in excess of the weight allowed,
is desired as a measure of reducing shipping costs.
22. On the date of shipment, there must be mailed (under separate cover)
to the Federal Reserve Bank, a notice giving the date, amount and description
of the shipment. A supply of this bank’s Form Cash 316 for this purpose will
be furnished upon request. A copy of the advice should be enclosed with the
shipment.
23. Torn notes should be carefully mended on the back with transparent
cellophane tape in such manner as to preserve the original design and visual
identification of the face of the notes. All such notes should be strapped sepa­
rately from those packages containing currency not mutilated; and where the
number of notes in a single denomination is 25 or more, a separate strap should
be used. Pins, clips, and other metallic substances, if not removed, could cause
injury to the handlers and damage the machinery used in cancelling unfit cur­
rency. Failure to comply with the foregoing slows up the process of handling
and may delay final verification.
Method of Shipment
24. Currency of all denominations should be shipped by first class reg­
istered mail. Since the Federal Reserve Bank of Dallas assumes all risks incident

— 6—

BULLETIN No. 5

to the transportation of such shipments, only necessary required postage and
prevailing registry fee which covers an indemnity of $25.00 should be paid.
Mutilated Currency
25. The Federal Reserve Bank of Dallas will accept for credit, redemption,
or exchange lawfully held paper currency of the United States that is mutilated.
If clearly not less than three-fifths of the original proportions of a bill remain,
it will be exchanged at face value. Lawfully held paper currency, so mutilated
that less than three-fifths but clearly more than two-fifths of the original pro­
portions remain, is exchangeable only by the Treasurer of the United States at
one-half the face amount of the whole note. Fragments not clearly more than
two-fifths are not exchangeable by the Treasurer of the United States unless
accompanied by evidence required in the following paragraphs.
26. Fragments of less than three-fifths when identifiable as to denomina­
tion, kind and genuineness, are exchangeable at the face amount of the whole
note, only by the Treasurer of the United States when accompanied by satis­
factory proof that the missing portions have been totally destroyed. This proof
should be in the form of an affidavit from the owner, setting forth that he is
the owner and the cause and manner of destruction. If, however, the owner
cannot of his own knowledge state the facts of destruction, an affidavit or
affidavits from any other person or persons having knowledge of the facts will
be required.
27. The affidavits must be subscribed and sworn to before a notary public
or other officer authorized by law to administer oaths. Unless authenticated
by the official impression seal of the officer, the affidavit should be accompanied
by a certificate from the proper official showing that the officer was in commis­
sion on the date of the acknowledgment. The expiration date of the officer’s
commission should be shown in any event. Should an affiant sign by mark (X ),
his signature must be witnessed by two persons besides the acknowledging
officer and the places of residence of the witnesses to the mark must be stated.
In addition to the affidavits, there should be furnished a certificate, to be exe­
cuted if possible, by an officer of an incorporated bank or trust company, or
by a public officer of the United States, setting forth that the officer has read
the affidavit and the affiants are respectable persons in the community and are,
in the judgment of the officer, worthy of belief. No relief is granted in cases
where currency has been totally destroyed.
SHIPMENTS OF COIN TO THE FEDERAL RESERVE
BANK OF DALLAS

Preparation of Shipment
28.
Coin should be shipped to this bank loose in heavy canvas bags, each
bag containing coin of only one denomination. Lead seals should be used in
sealing bags of coin and the impression should bear the name or the A.B.A.
number of the shipping bank. Coin shipped to this bank should be sacked as
follows:
Silver Coin—$500 or $1,000
Nickels—$100 or $200
Cents— $50 or $100

—7—

BULLETIN No. 5

29. On the date of shipment, there should be mailed to the Federal Reserve
Bank, a notice giving the date, amount and description of the shipment on this
bank’s advice of shipment Form Cash 172, a supply of which will be furnished
on request.
Transportation Services Available
30. Coin should be shipped to this bank by Railway Express Agency, Inc.,
collect, where such service is available. The addressee tag should show the
amount in each sack.
31. Banks located in towns which have no express facilities should ship
coin to this bank by parcel post, fourth class insured mail. If the Federal Reserve
Bank (or appropriate branch) is in the first or second parcel post zone from
the point of shipment, the maximum permissible weight of each sack is 40
pounds when mailed from a first class post office; if the Federal Reserve Bank
is in the third to eighth zones from the point of shipment, the maximum per­
missible weight of each sack is 20 pounds. If mailed at a second, third, or
fourth class post office, the maximum weight of each sack is 70 pounds regard­
less of zone. On any shipment made by parcel post, fourth class insured mail,
no sack should contain more than $200 regardless of weight. There is no limit
as to the number of sacks that may be mailed at one time. The addressee tag
should carry the following inscription: “Postmaster — Fourth-class mail. This
package may be opened for postal inspection if necessary. From— (Name of
sending bank).”
32. The risks of loss of such shipments from member banks will be assumed
by this bank upon the same terms and subject to the same conditions as appear
in paragraphs 3 through 6 and 34 of this bulletin, provided, however, that this
bank will not assume any risks of loss on such shipments while they are in the
custody of the United States Post Office Department.
Mutilated Coin
33. Mutilated silver and minor coins will not be accepted at their face value
and should be shipped to the United States Mint at Denver, Colorado, for sale
at bullion or metal value. Silver and minor coins are classified as mutilated by
the Treasury Department when punched, clipped, chipped, or otherwise muti­
lated, as to be appreciably reduced in weight, or as to show a material loss of
metal, or when so defaced as to be not readily and clearly identifiable as to
genuineness and denomination. Mutilated coin found in deposits will be charged
to the account of the depositing bank and returned.
PAYMENTS OF LOSSES AND SUBROGATION OF RIGHTS OF RECOVERY

34. The amount of any loss, the risk of which is assumed under the terms
of this bulletin, will be paid promptly by this bank upon receiving from the
bank sustaining the loss, in form satisfactory to this bank, a written proof of
loss, receipt, and any other necessary documents, including, but not limited
to, an assignment of its rights, title, and interest in the lost property. The bank
receiving any such payment shall take all necessary measures in behalf and at
the risk and expense of this bank for the recovery, reissue, or replacement of
such property, including the institution of legal proceedings in its own name,
if deemed necessary by this bank.

—8—

BULLETIN N o. 5

ENTRIES TO THE RESERVE ACCOUNT OF A MEMBER BANK

35.
Deposits or shipments of United States currency and coin received
from a member bank will be credited to its reserve account subject to count,
verification, and subsequent adjustments for shortages, overages, counterfeits,
etc.
36. Payments or shipments of currency and coin made to or for the account
of a member bank will be debited to its reserve account, unless a draft on its
reserve account accompanies the order. In case a draft drawn on a bank other
than the Federal Reserve Bank of Dallas is received with the order, it will be
handled for collection under the terms and conditions of the current bulletin
of this bank governing the collection of such drafts, and the proceeds will be
credited to the member bank’s reserve account as soon as available.
COUNTERFEIT OR ALTERED CURRENCY AND COIN

37. In accordance with Treasury Department regulations, all counterfeit
or altered currency and coin must be delivered to an agent of the United States
Secret Service. Accordingly, all counterfeit currency and coin received by this
bank will be delivered to a secret service agent whose receipt, fully describing
the counterfeit currency or coin, will be mailed to the depositor. Altered cur­
rency will be paid for by a secret service agent at the unaltered face value of
the note, and the depositing bank’s account will be charged, under appropriate
advice for any discrepancy resulting from the alteration.
FOREIGN CURRENCY AND COIN

38. Canadian currency or coin may be forwarded to the Federal Reserve
Bank of Dallas, provided it is not mixed with other currency or coin and, after
being converted into domestic funds, will be credited to the depositing bank’s
account. Other foreign currency or coin will not be accepted for credit, and,
if received, will be returned to the shipping bank.
GOLD COIN AND GOLD CERTIFICATES

39. The executive order of the President of the United States requiring
the surrender of all gold coin and gold certificates is still in force. Any gold
coin or gold certificates held or received on deposit should be sent to the Federal
Reserve Bank of Dallas for the account of the Treasurer of the United States.
RIGHT TO AMEND

40.
The right is reserved by this bank to withdraw, add to, or amend at
any time any of the terms and conditions of this bulletin.
Yours very truly,
Watrous H. Irons
President

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