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F E D E R A L R E S E R V E BANK OF DALLAS October 13, W A TR O U S H. IR O N S 1965 PRESIDENT To the State Member Bank Addressed: As a means of strengthening our examination procedures and meeting our supervisory responsibilities more effectively, we have adopted a program of direct verification of deposit and loan balances with customers of State member banks. The practices which we will follow in verifying account balances with customers will conform to recognized auditing procedures. Bank supervisory authorities in cooperation with The American Bankers Association and the National Association of Bank Auditors and Ccamptrollers have repeatedly urged adoption of the direct verification practice by banks. It is our plan to initiate the direct verification program on November 1 , 1965. You may wish to advise your de positors and borrowers of the new procedure and explain that it is a part of a program of the Federal Reserve Bank of Dallas which is being carried out in the course of examination of each State member bank. In view of the substantial benefits to be derived from this program, I am sure that we may count on your support. If you have any questions in connection with the program, I would suggest that you contact T. R. Sullivan, Vice President in charge of our Examination Department. Sincerely yours, Watrous H. Irons President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)