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FED ERAL R E SER VE BANK
O F DALLAS

Dallas, Texas, March 6,1963

To All Banks in the
Eleventh Federal Reserve District:
The latest survey by Federal Reserve banks to measure progress in the Magnetic Ink
Character Recognition Program of the American Bankers Association indicates that al­
most 79 percent of the checks cleared through the Federal Reserve System bear the
drawee bank’s MICR transit number. However, only 63 percent of those cleared through
the Reserve bank offices of this District are preprinted, which is one of the lowest per­
centages in the System. An analysis of magnetic ink printing by banks located in states
in this area shows the following information:
Percent of Preprinting
States

Arizona
Louisiana
New Mexico
Oklahoma
Texas

Banks in
11th District

A ll Banks
in State

62
55
68
46
63

71
64
74
66
63

It has been the policy of this bank to cooperate with the American Bankers Associa­
tion by assisting in the promotion of the MICR program, amount encoding checks in
magnetic ink for banks having high-speed equipment, and planning for the installation in
the Reserve bank offices of this District of high-speed equipment when a reasonable per­
centage of checks are preprinted with the MICR transit number.
The Federal Reserve Bank o f Dallas and its branches encouraged banks to adopt the
MICR program by articles, speeches, surveys, and related publicity. In the fall of 1961 the
Reserve bank installed 22 proof inscriber machines at its Dallas office and shortly there­
after installed others at its San Antonio and Houston offices. Finally, in early 1963 a con­
tract was signed for the delivery of a high-speed check handling system at the Dallas
bank. High-speed systems will be installed at the other offices as soon as practicable.
In company with the Reserve bank’s installation, there are a number of commercial
banks in the District that either are using or plan to use in the near future high-speed
equipment for the processing of transit items. Therefore, banks are urged to move for­
ward with their preprinting program as rapidly as possible in order to maximize the
efficiency of the check collection system.
Survey figures of the Eleventh District are furnished on the other side of this letter.
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)

BREAKDOWN BY RESERVE OFFICES OF THE ELEVENTH DISTRICT
Number of Checks
Surveyed

Number of
Checks Conforming

Percentage of
Conformity

Dallas
City
Country

41,045
260,950

35,818
160,889

87
62

El Paso
City
Country

10,608
30,548

8,191
20,348

77
67

Houston
City
Country

23,989
132,927

16,369
86,088

68
65

San Antonio
City
Country

27,053
141,023

16,144
77,752

60
55

Office

BREAKDOWN FOR CERTAIN LARGER POINTS
Number of Checks
Surveyed

Number of
Checks Conforming

Percentage of
Conformity

Abilene, Texas

3,043

1,771

58

Amarillo, Texas

5,596

3,034

54

Austin, Texas

7,373

5,048

68

Beaumont, Texas

7,510

6,666

89

Corpus Christi, Texas

9,176

5,670

62

Fort Worth, Texas

7,859

6,397

81

Lubbock, Texas

5,370

2,903

54

Waco, Texas

3,242

1,641

51

Wichita Falls, Texas

4,923

3,378

69

Tucson, Arizona

2,138

1,446

68

Shreveport, Louisiana

10,096

5,054

50

Roswell, New Mexico

1,186

816

69

564

238

42

City

Durant, Oklahoma

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