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FORM MISCL. FEDERAL RESERVE BANK 14. 6- 1 8 - 2 0 M - 1 4 7 6 N M U BER 28 OF DALLAS December 16, 1915. BILL OF LADING DRAFTS TO THE M BER BANK ADDRESSED: EM B e lie v in g th a t the f u l l e s t degree o f s e r v ic e p o s s i b l e , under the p r o v is io n s o f the Federal Reserve A ct, should be accorded t o the members o f the F ederal Reserve System, i t is the p o lio y o f our management t o d evelop th e v a rio u s fu n c tio n s contem plated in the Act as r a p id ly as i s p o s s ib le * The d is t r ib u t io n o f our commodities t o d is ta n t m arkets, and the attendant con v ersion in t o a v a ila b le funds o f d r a fts « drawn by the s e l l e r upon the buyer in s e ttle m e n t, e n t a il a la rg e re d u ctio n o f the len d in g a b i l i t y o f our member banks each y e a r, or make i t necessary f o r them t o m aintain com pensating bala n ces e s p e c ia lly f o r the c o l l e c t i o n o f th ese ite m s • Knowing o f the c o n s id e r a b le volume o f t h is c la s s o f paper th a t is crea ted in t h is D i s t r i c t at d if f e r e n t sea son s, and in an e f f o r t ,to serve our members more a c c e p ta b ly and r e lie v e them o f t h is temporary ta x on t h e ir normal f a c i l i t i e s , we w i l l , a f t e r t h is d a te , a ccep t from them f o r immediate c r e d i t , s u b je c t t o f i n a l payment, demand d r a ft s or d r a ft s drawn at not ex ceed in g n in e ty days s ig h t , o f any firm , company, c o r p o r a tio n or in d iv id u a l upon another firm , company, c o r p o r a tio n or in d iv id u a l in the United s t a t e s , when such d r a ft is accompanied and secu red by b i l l s o f lad in g or othdr documents co v e rin g r e a d ily m arketable p r o d u cts . Such d r a ft s must bear the endorsement o f the forw ard in g member bank, in c lu d in g a guaranty o f a l l p r e viou s endorsem ents, and must be sent w ith in s t r u c t io n s t o surrender the attach ed documents on ly upon payment o f the d r a f t , -^he d r a fts w i l l be f o r warded by us d i r e c t f o r c o l l e c t i o n , w ith in s t r u c t io n s t o the c o l l e c t i n g bank t o rem it the proceed s t o th e n ea rest Federal Reserve Bank f o r our c r e d it and a d v ic e , and th e date o f t h i s d e p o s it w i l l term in ate the in t e r e s t charged us th ereon . The a ctu a l c o s t o f c o l l e c t i o n , in c lu d in g in t e r e s t at th e ra te o f 4$ per annum f o r the time ou tsta n d in g , w i l l be charged t o the member bank’ s a cco u n t, under a d v ic e , im m ediately upon r e c e ip t o f proper n o t ic e th a t the item has been p a id . Yours very t r u l y , R. L. VAN ZANDT, Governor This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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