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June 1993
News and Views
on Cash Services
Tor the
Eighth Federal Reserve District

Cash Services Now
Available On EDITH
and Fedline
At long last, Eighth District
cash customers can place currency and coin orders and early
credit requests on the Fed's
telephone hotline-EDITH®or its PC-based softwareFedline®. The new ordering
options replace the Fed's
In addition to its new cash
ordering service, EDITH offers
a feature that allows customers
to inquire about or delete a
current day's cash order or
early credit request.
Customers may place currency and coin orders on
ED ITH anytime between

Federal Reserve Bank of St. Louis

ith the increasing use
of ATMs, many bankers
expect that they'll need more
new vs. fit notes than ever
before. Is this an accurate
According to a recent
Federal Reserve study, about
90 percent of $20 bills in the
hands of tellers are acceptable
in quality for the machines,
indicating that the quality of


fit currency is satisfactory for
this use.
Though we understand
bankers' preference for new
money, we are required to fill
orders with fit notes first and
issue new notes only to replace
tho e notes destroyed in the
normal process of quality
To add it up in dollars and
cents, the cost of new currency

8 a.m. and 5 p.m. local time.
Early credit requests may be
made between 8 a.m. and noon
local time.
Fedline version 2.4 is also
available for placing cash
orders and early credit requests;
however, customers must also
be able to access EDITH for
backup purposes.
Current AutoCash customers were asked to complete
and return an Access Request
form to obtain their new personal identification numbers
(PINs) required to access
EDITH. If you haven't already
done this, please contact your
local Cash Department today;
conversion date is projected for
July 15, 1993.

is about $41 per thousand
notes-a price the taxpayers
will ultimately pay-and that
figure is expected to rise another $2 over the next few years.
As always, Federal Reserve
employees can answer any
questions you may have about
new vs. fit money. Just call
your local Fed office.

There's AWhole Lotta RAP'ing Going
On at the Memphis Fed
knows that
Memphis is
well known for
its blues. And
now it's also
known for its RAP.
It's not music that's making big hits in Memphis-it's
something called the
Redemption Accountability
Program (RAP), which helps

The Fed collects the following information from
the Food Coupon Deposit Documents and
redemption cards for each deposit:
• Retailer authorization number and the depositing
institution's total from each redemption card
• Sequence number automatically assigned to each
redemption card
• Routing transit number of the depositing institution
from the Food Coupon Deposit Document (FCDD)
• Total amount of the FCDD
• Date and cred it to the depositing institution
• Routing transit number of the crediting Reserve Bank
• Total value of the redemption cards received with
the deposit calculated by the Reserve Bank processing system
L - - - - -- - -- - - - ' - --
Federal Reserve Bank of St. Louis



- - - ' --

-- - - - "'

Reserve Banks reconcile food
coupon retailer redemption
cards onsite.
The program was developed in late 1991 after the U.S.
Department of Agriculture's
Food and Nutrition Services
office asked the Federal Reserve
to find a way to reconcile the
redemption cards with the dollar amount of the food coupons
being deposited.

Before the program,
redemption cards sent in with
deposits were shipped to the
Food and Nutrition Services
office in Minneapolis for reconcilement. The shipping and
processing was not only costly,
but also somewhat inefficient
or inaccurate, resulting in
delays when balancing our
customers' accounts. The RAP
program helps to simplify the
balancing process.
Here's how the program
works. All of the redemption
cards deposited within a
Federal Reserve district are
shipped to a central processing
site. In the Eighth Federal
Reserve District, Memphis is the
central processing site.
After the food coupons are
opened and the redemption
cards sent overnight to
Memphis by the other Eighth
District offices, Memphis
Branch employees separate the
cards by date and prepare them
to be processed. The processor
microfilms the cards and reads
the encoding. Fed employees
are then able to reconcile the
processed cards and determine
which cards contain errors.
The microfilm is then sent to
Food and Nutrition Services'
Minneapolis Computer Support
Center for reconciliation back
to actual reported food coupon
Since its introduction
nearly two years ago, RAP has
proven an extremely successful
way of reconciling redemption
cards to deposits and improving the accuracy and efficiency
of processing. As you might
imagine, however, the program
can be time-consuming, espe-

cially if there is a problem with
any of the redemption cards.
One of the most common
problems-yet the most easily
avoided-is incorrect or missing encoding on the redemption cards. These cards must
be separated and manually
entered into the system to
enable the reports to balance.
Manually keying in unencoded
redemption cards that reject
during processing can take up
to several hours a day.
This is where our customers can help. To keep this
process running smoothly, it's
not only very important that
these cards be properly encoded
at your bank, it's also vital that
they be added correctly on the
tape listing included in the
With your cooperation, the
RAP program will help the Fed
balance food coupon accounts
more efficiently, resulting in
better service to our customers.

Federal Reserve Notes
Food Coupon
Counterfeit Alert
Bank tellers should be aware of
two different types of $10 food
coupon counterfeits that have
recently been discovered.
One type of counterfeit has
poor shading on the portrait,
and its serial numbers are not
printed as boldly as on authentic coupons. The printing is
not fluorescent under ultraviolet light.
Asecond type all have the
series 1992 B. They have a
wax-like feel and are yellowish
in color. The printing, especially in the serial numbers, is
unusually heavy. The scroll
work is broken, and the portrait
is washed out. The coupons are
somewhat fluorescent under
ultraviolet light.

How Does

the U.S.
Mint Predict
Federal Reserve Bank of St. Louis

If you discover counterfeit
food coupons in deposits, notify
the Food and utrition Service
or the Federal Reserve office in
your zone.

Eighth District Offices
Upgrade Cash
Processing Machines
Anew generation of high-speed
cash processing machines will
soon be coming to Eighth
District offices.
The new processors will be
arriving at the St. Louis office
in June 1995, the Little Rock
office in September 1995, the
Memphis office in February
1996 and the Louisville office
in May 1996.
Enhanced features on the
machines will remove the
straps from packages of 100
he U.S. Mint is charged
with providing adequate
coin supplies for the nation's
commerce. It manufactures
coins, maintains inventories
and ships coins to Reserve
Banks for ultimate distribution
to the banking community.
More than 14 billion coins are
expected to be produced in
Have you ever wondered
how the U.S. Mint predicts just
how much coin to produce to
meet the changing needs in the
The technique used is
called the econometric method,
which identifies how economic
factors affect coin demand.
The econometric model uses
10 years worth of historical
data about coin demand correlated with several economic


notes and track each package
for accounting differences.

A Reminder About
Registered Mail
Are you using registered mail to
receive currency and coin shipments from the Fed? Did you
know there is a more reliable,
secure and in some cases less
expensive method? The answer
is armored carrier.
For the handful of cash
customers in the St. Louis and
Louisville zones who use registered mail, the Fed strongly recommends switching to armored
carrier. Not only does the
armored carrier better secure
your shipments, but with an
anticipated increase in the cost
of registered mail, it could also
save you money.

factors, including changes in
population, inflation rates,
retail sales, spendable income
and gross national product.
These factors do not apply consistently to each denomination.
Each year, Federal Reserve
Banks also predict their coin

The Fed has been working
with local armored car companies to establish routes in areas
not previously covered. If you
are interested in using an
armored car company for the
transportation of your currency
and coin shipments, please
contact Cathy Otten at the St.
Louis office at (314) 444-8330
or Jim Stephens at the Louisville
office at (502) 568-9221.

needs. The Mint compares the
Reserve Banks' predictions with
its own; deviations are often
accounted for by regional factors such as changes in deposits
by phone companies, the vending industry and the introduction of regional gambling.

Number of Coins Produced in 1992,
in millions of pieces

'I I




... f I


Quarters Halfdollars

Take ACloser Look At Strap
Identification Standards

No. -

This "operational highlights"
column addresses the policies
reported in the Fed's operating
Letters and is a regular f eature of The Cash Manager.
In this issue, we discuss strap
identification standards.

Post Office Box 442
St. Louis, Missouri 63166

The Cash Manager is published
by the cash departments of the
Federal Reserve Bank of St. Louis.
Views expressed are not necessarily
official opinions of the Federal
Reserve System or the Federal
Reserve Bank of St. Louis.
Federal Reserve Bank of St. Louis

hen depositing currency
or food coupons with the
Federal Reserve, it is important
to follow the guidelines that are
described in Operating Letters
nos. 10 and 13.
For one, please remember to
bundle the items in straps that
conform to existing ABA color
In addition, each of the
straps must be plainly marked
with the following information:
• the name and routing
transit number of the depositing
institution. This is necessary to
determine the depositing bank
when an error is detected during
the piece verification of the


• the denomination and
dollar .amount contained in the
• the date verified and the
verifier's identification. This
information is supplied to the
depositing institution so that
responsibility for the error at the
depositing institution can be
If you have any questions
about strap identification standards, call your local Reserve
Bank office.

Take Note!


This is the final scheduled issue of the Cash
Manager. Future issues
of the newsletter may be ,
published as needed.
Noteworthy topics will
continue to be communicated through correspondence to bankers or
will be addressed in the
Central Banker (CB)
publication mailed to
CEOs of Eighth District
financial institutions.