The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE B AN K OF DALLAS DALLAS, TEXAS December 8, 1958 To the Member Banks o f the Eleventh Federal Reserve District: Enclosed is a copy of our Bulletin No. 5, relating to currency and coin services, revised as of December 8, 1958, and superseding Bulletin No. 5, dated April 4, 1956. The increased use o f armored car carriers in many areas o f this District has made it desirable to broaden the information in the Bulletin concerning trans portation methods used in shipping money. Paragraphs 24 and 30 have been changed to include means o f transportation other than registered mail and express that may be selected by this bank for transferring money shipments from member banks to the Federal Reserve Bank of Dallas and its branches. Paragraph 15 has been revised to include armored car carriers as a means o f transportation— under conditions stated in that paragraph— o f money ship ments to nonmember banks made at the request o f and at the risk and expense o f member banks. Paragraph 4, relating to the assumption o f risk on shipments to and from this bank, and Paragraph 12, relating to shipments from this bank to member banks, previously had provided for use o f “ other means o f transportation,” and these paragraphs remain unchanged. Please bring this bulletin to the attention o f personnel in your bank con cerned with the ordering and shipping o f money. The revised copy should be substituted in your ring binder for Bulletin No. 5, dated April 4, 1956. W e shall be pleased to furnish additional copies o f this bulletin upon request. Receipt o f this bulletin should be acknowledged by completing and return ing the enclosed postal card. Yours very truly, W atrous 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 December 8 ,1 9 5 8 (Superseding Bulletin No. 5, dated April 4, 1956) CURRENCY AND COIN T o the Member Banks o f the Eleventh Federal Reserve District: This bulletin describes the cash services o f the Federal Reserve Bank o f Dallas and supersedes Bulletin No. 5 dated April 4, 1956. A ny bank ship ping or causing or ordering shipments o f 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 o f this bulletin and unless stated otherwise, all references to the Federal Reserve Bank o f Dallas or “ this bank,” shall include its branches at El Paso, Houston, and San Antonio. SCOPE OF SERVICE 1. All forms o f 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 o f currency and coin subject to the rules o f this bank and regulations o f the Treasury Department. The amount o f new currency and coin available will be governed by the amount o f fit currency or circulated coin on hand. 2. The Federal Reserve Bank o f Dallas will absorb the cost o f postage and expressage and will assume all risks, except those herein specifically excluded, incident to shipments o f 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 o f this bulletin. RISKS INCIDENT TO SHIPMENTS TO AND FROM BANKS Assumption of Risk 3. A ny bank shipping or causing or ordering shipments o f currency or coin to, from or for the account o f 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 o f this bulletin, the Federal Reserve Bank of Dallas will assume all risks incident to the transportation o f such shipments o f 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 o f the sending bank until delivered at the office o f the addressee bank, except as enumerated b elow ; 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 o f 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 o f Dallas will not assume any risk o f loss in any o f 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 ) A n y loss in excess o f $2,000,000 on all shipments by any one bank ing office to this bank on any one day. (2 ) A ny loss resulting from hostile or warlike action by any military, naval, air forces, or agents o f domestic, foreign or revolutionary governm ents, pow ers, or forces, w hether or not war has been formally declared and including defending against an actual or expected attack; or any loss caused by any weapon o f war employing atomic fission or radioactive force whether in time o f peace or war. (3 ) A ny loss resulting from any dishonest, fraudulent, or criminal act o f an employee o f any bank, other than this bank, shipping, causing, ordering or receiving the shipment. (4 ) A ny 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 ) A n y loss on any shipment by any bank other than this bank not made in conform ity with the provisions o f this bulletin. Preparation of Shipments 6. A ny bank shipping or causing shipments o f currency or coin to or for the account o f 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 o f the sender and that the sealed package shall be in charge o f 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 o f 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 o f the heavy cost o f maintaining this service, the cooperation o f member banks is requested to avoid unnecessary shipments. It is suggested that accumulations o f 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 o f the same denominations is likely to be needed in the near future. The interchange o f currency and coin by local banks and the exercise o f care in anticipating requirements will reduce to a minimum the shipments to and from the Federal Reserve Bank o f Dallas, and your cooperation will be greatly appreciated. BULLETIN N o . 5 —3 - 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 o f currency and coin and to charge the reserve account o f 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 o f Currency and Coin Shipped by this Bank 9. In anticipating the needs o f 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 $100 Ones __________ _________ $200 T w o s __________ _________ $500 F iv e s __________ _________ Tens __________ _________ $1,000 T w enties________________ $2,000 F iftie s _________ _________ $5,000 Hundreds _____ _________$10,000 Coin Cents ____ N ickels___ D im es____ Quarters H a lv e s___ D olla rs___ ____$100 - $ 5 0 -$ 1 0 0 $200 $500-$1,000 $500-$1,000 $500 - $1,000 $500 - $1,000 C losing H ou rs f o r Shipm ents 10. The vaults o f the Federal R eserve Bank o f 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 o f cur rency and coin will be acted upon promptly on the day o f 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 o f the telegram, bearing an authorized signature. Method o f Shipment 12. Shipments o f currency or coin from this bank to member banks will be made by registered mail, express, or by such other means o f 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 o f money to certain towns where railway postal service is not provided. Banks affected have been apprised o f 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. A t the request o f a member bank and at its expense and risk, shipments o f currency and coin will be made to its correspondent banks by registered mail or armored car carrier, the means of shipment to be designated by the member bank. W hen shipments are made by an armored car carrier, the responsibility o f this bank will terminate upon delivery o f the money to the carrier on this bank’s premises and all transportation arrangements, charges and insurance shall be negotiated directly with the carrier by the member bank. Unless in structed to the contrary, shipments to correspondent banks at the request of a member bank will be made by registered mail and insured under this bank’s registered mail insurance policies for the account o f the member bank and the costs o f such transportation and insurance charged to the member bank’s account. 16. The registered mail insurance policies referred to above afford pro tection against loss from the time o f acceptance by the messenger or carrier, whether within or without the premises o f 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 o f 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: “ T o cover . . . risks o f physical loss o f or damage to or destruction o f property insured, except theft on the part o f employees o f senders or addressees, but this policy does not insure against: (a ) capture, seizure, arrest, restraint, detainm ent, confiscation, preem ption, requisition or nationalization, and the consequences thereof or o f any attempt thereat, whether in time o f peace or war and whether lawful or otherwise; any consequences o f hostilities or warlike operations (whether there be a declaration o f 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 o f the nature o f the voyage or service which the vessel concerned or, in the case o f a collision any other vessel involved therein, is per form ing) 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 p ow er; or any loss or damage caused by any weapon o f war employing atomic fission or — 5— BULLETIN No. 5 radioactive force whether in time o f peace or w ar; (b ) the conse quences o f civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, piracy, risks of contraband or illegal trans portation or trade, and seizure or destruction under quarantine or customs regulations.” 18. The liability o f 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 dispatched by two or more trains, in which event the limit o f liability shall apply to each train separately, with the further limitation o f liability that shipments o f currency shall not exceed $400,000 in any one shipping package. Advice o f 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 o f 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 o f this bank. Where dis bursement o f currency or coin is made without verification, this bank will assume no liability. SHIPMENTS OF CURRENCY TO THE FEDERAL RESERVE BANK OF DALLAS Preparation o f Currency for Shipment 21. A ll 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 o f the depositing bank, date, amount, and the number or stamp o f 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 o f 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 o f units, not in excess o f the weight allowed, is desired as a measure o f 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 o f the shipment. A supply o f this bank’s Form Cash 316 for this purpose will be furnished upon request. A copy o f 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 o f the face o f the notes. All such notes should be strapped sepa rately from those packages containing currency not mutilated; and where the number o f 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 — 6— BULLETIN No. 5 injury to the handlers and damage the machinery used in cancelling unfit cur rency. Failure to comply with the foregoing slows up the process o f handling and may delay final verification. Method of Shipment 24. Currency o f all denominations should be shipped by registered mail or such other means o f transportation as may be selected by this bank. Since the Federal Reserve Bank o f Dallas assumes all risks incident to the transporta tion o f such shipments, the sending bank should pay on registered mail ship ments only postage at first class rate and appropriate registry fee, using the lower of the two scheduled rates charged by the Post Office for registered mail. Mutilated Currency 25. The Federal Reserve Bank o f Dallas will accept for credit, redemption, or exchange lawfully held paper currency o f the United States that is mutilated. I f clearly not less than three-fifths o f the original proportions o f 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 o f the original pro portions remain, is exchangeable only by the Treasurer o f the United States at one-half the face amount o f the whole note. Fragments not clearly more than two-fifths are not exchangeable by the Treasurer o f the United States unless accompanied by evidence required in the following paragraphs. 26. Fragments o f less than three-fifths when identifiable as to denomina tion, kind and genuineness, are exchangeable at the face amount o f the whole note, only by the Treasurer o f the United States when accompanied by satis factory p roof that the missing portions have been totally destroyed. This proof should be in the form o f an affidavit from the owner, setting forth that he is the owner and the cause and manner o f destruction. If, however, the owner cannot o f his own knowledge state the facts o f destruction, an affidavit or affidavits from any other person or persons having knowledge o f 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 o f 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 o f the acknowledgment. The expiration date o f 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 o f residence o f 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 o f an incorporated bank or trust company, or by a public officer o f 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 o f the officer, worthy o f belief. N o 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 o f only one denomination. Lead seals should be used in — 7— BULLETIN No. 5 sealing bags o f coin and the impression should bear the name or the A .B .A . number o f the shipping bank. Coin shipped to this bank should be sacked as follow s: Silver Coin— $500 or $1,000 Nickels— $100 or $200 Cents— $50 or $100 29. On the date o f shipment, there should be mailed to the Federal Reserve Bank, a notice giving the date, amount and description o f the shipment on this bank’s advice o f shipment Form Cash 172, a supply o f which will be furnished on request. Transportation Services Available 30. Unless other means o f transportation are selected by this bank, 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. I f the Federal Reserve Bank (or appropriate branch) is in the first or second parcel post zone from the point o f shipment, the maximum permissible weight o f 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 o f shipment, the maximum per missible weight o f 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 o f 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. F ro m — (Name of sending bank).” 32. The risks o f 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 o f this bulletin, provided, however, that this bank will not assume any risks of loss on such shipments while they are in the custody o f 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 o f 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 o f the depositing bank and returned. PAYMENTS OF LOSSES AND SUBROGATION OF RIGHTS OF RECOVERY 34. The amount o f any loss, the risk o f which is assumed under the terms of this bulletin, will be paid promptly by this bank upon receiving from the _ 8 BULLETIN No. 5 — bank sustaining the loss, in form satisfactory to this bank, a written proof o f loss, receipt, and any other necessary documents, including, but not limited to, an assignment o f 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 o f this bank for the recovery, reissue, or replacement of such property, including the institution o f legal proceedings in its own name, if deemed necessary by this bank. ENTRIES TO THE RESERVE ACCOUNT OF A MEMBER BANK 35. Deposits or shipments o f 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 o f currency and coin made to or for the account o f 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 o f Dallas is received with the order, it will be handled for collection under the terms and conditions o f the current bulletin o f this bank governing the collection o f 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 o f 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 o f 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 o f 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 o f the President o f the United States requiring the surrender of all gold coin and gold certificates is still in force. A ny gold coin or gold certificates held or received on deposit should be sent to the Federal Reserve Bank of Dallas for the account o f the Treasurer o f the United States. RIGHT TO AMEND 40. The right is reserved by this bank to withdraw, add to, or amend at any time any o f the terms and conditions o f this bulletin. Yours very truly, W atrous H . Irons President
@FedFRASER