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FED ER AL RESERVE BANK O F DALLAS Dallas, Texas, February 25, 1959 To the Member and Nonmember Clearing Banks in the Eleventh Federal Reserve District: There is enclosed a copy of Bulletin No. 6, entitled “Transfers of Funds,” revised effective March 1, 1959. It supersedes Bulletin No. 6 dated January 15,1957. The bulletin was revised in the interest of stating more clearly the serv ices available to member banks in connection with the transfer of funds. It will also be noted that the time limit for acceptance of requests to make transfers to certain cities has been extended. However, we request your continued cooperation in filing transfer requests as early as possible to assure consummation of the transaction on the date the request is received. Please acknowledge receipt of the revised bulletin, on the enclosed postal card, and substitute it for the superseded bulletin in your ring binder. 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) FEDERAL RESERVE BANK OF DALLAS BULLETIN No. 6 MARCH 1,1959 (Superseding Bulletin No. 6, dated January 15,1957) T R A N SF E R S O F FUNDS To the Member and Nonmember Clearing Banks o f the Eleventh Federal Reserve District: This bulletin contains general information relative to facilities available for the transfer of funds, by telegraph and mail, through the Federal Reserve Bank of Dallas and its branches at Fl Paso, Houston and San Antonio. The Supplement, which is a part o f this bulletin, sets forth the time limitations applicable to requests to make telegraphic transfers of funds. Requests for transfers between member banks served by the same office will be accepted until 3 :00 p.m., local time. All offices are closed on Saturdays. TRANSFERS OF BANK BALANCES FOR AND TO MEMBER BANKS Telegraphic transfers of funds between Federal Reserve banks (which as herein used shall include branches of Federal Reserve banks) of bank balances in multiples of $1,000 will be made without charge for member banks to member banks. The term “ bank balance” shall be construed to mean an accumulation of funds comprising an established account maintained by a member bank with its Federal Reserve bank or with another member bank. The descriptive data in telegrams transferring bank balances without charge must be limited to the name of the sending member bank, the name of its correspondent member bank requesting the transfer, the name of the member bank receiving credit, and the name of its correspondent member bank. OTHER TRANSFERS FOR MEMBER BANKS Telegraphic transfers of funds for any purpose and in any amount and without limitation as to descriptive data will be made for and paid to member banks subject in each case to a charge (except transfers of bank balances in multiples of $1,000 as described above) which will approximate but not exceed the commercial wire rate for the telegram or telegrams involved in the transfer. While such transfers will be accepted from and paid to member banks only, they may be for the use of any bank, individual, firm or corporation. At the request of member banks, telegraphic transfers of bank balances in multiples of $1,000 will be made to nonmember clearing banks subject to a charge as outlined in the preceding paragraph. TRANSFERS WITHIN THE ELEVENTH FEDERAL RESERVE DISTRICT Any member bank in the Eleventh Federal Reserve District may use the transfer facilities of this bank and its branches to make telegraphic transfers of funds to any other member bank in the district, subject to the conditions outlined above. —2— BULLETIN No. 6 TELEGRAPHIC EXPENSE The Federal Reserve Bank of Dallas will absorb the cost o f telegrams received from member banks requesting transfers of bank balances in multiples o f $1,000 for use o f member banks. Member banks should prepay the cost of telegrams to their Federal Reserve bank when requesting transfers that are subject to a charge. ADVICE OF CREDIT Mail advice of credit for all telegraphic transfers of funds will be given by the Federal Reserve bank receiving the transfer to the member or non member clearing bank receiving credit therefor and, in addition, immediate advice of credit, by telegraph, telephone, or otherwise, will be given when the bank receiving credit or the bank requesting the transfer has asked for such immediate advice, or where the nature of the transaction, or the amount involved, indicates that the additional expense is justified, as to which the receiving Federal Reserve bank will exercise its discretion. Long distance telephone charges and telegraph charges, if any, in connection with such immediate advices will be charged to the member or nonmember clearing bank receiving credit unless the sending bank has requested that such expenses be charged to its account. MAIL TRANSFERS Any member or nonmember clearing bank may request the Federal Reserve Bank of Dallas to charge any amount to its account and credit the amount to the account of any other member or nonmember clearing bank in this district or to transfer the amount by mail to any other Federal Reserve bank for the credit of any of its member or nonmember clearing banks. No charge will be made for handling mail transfers. TRANSFERS TO OFFSET ANTICIPATED CHARGES If a member bank anticipates a charge to its reserve account to cover a money shipment, a bond purchase, a draft which it has issued, etc., and wishes to replenish its reserve account to offset the charge, it will find it advantageous to utilize the transfer facilities of this bank and its branches. Rather than sending to us a draft on a correspondent bank for this purpose, the member bank may send the draft directly to the correspondent with instructions to transfer the proceeds to us for credit to its reserve account. I f the correspondent is not located in a reserve city, it will instruct its Federal Reserve bank, by a “ collect” telegram, to charge its reserve account and transfer the funds to us. Or, if preferred, the member bank may instruct a correspondent, by letter, t o charge its account and transfer the funds to us. The only limitation on transfers of this nature is that they must be in multiples of $1,000 to be handled without charge. TIME LIMITATIONS — See Supplement Requests to make telegraphic transfers must reach our offices in time to permit transmission of a telegraphic message to the Federal Reserve bank o r branch to which, and through which, the funds are to be transferred. T h e supplement which is a part of this bulletin lists the closing hour for acceptance BULLETIN No. 6 of requests to make telegraphic transfers of funds for consummation on day of receipt of request. Any request received later than the time shown in the supplement may, at the discretion of this bank or its branches, be transmitted on the day it is received with the understanding that consummation of the transfer will be discretionary with the Federal Reserve bank or branch to which it is transmitted. Transfers for credit to banks served by the Federal Reserve Bank of Dallas and its branches, whether from banks in the Eleventh Federal Reserve District or from banks in other Federal Reserve districts, will be accepted by our offices until 3 :00 p.m., local time. Our offices in Dallas, Houston, and San Antonio observe Central Standard Time, and our office in El Paso observes Mountain Standard Time. Banks arranging to have their correspondents in other Federal Reserve districts make telegraphic transfers to them should make allowance for time differentials. This will enable their correspondents to initiate transfers through their own Federal Reserve banks within the time limitations at those Federal Reserve banks and permit receipt by our offices by 3 :00 p.m. local time. During the periods that certain localities observe Daylight Saving Time, member banks should take into account the fact that the closing hour for acceptance of requests to make telegraphic transfers to banks in those localities will be advanced one hour during those periods. This also applies when arranging with correspondent banks in those localities to transfer funds to banks in the Eleventh Federal Reserve District. Our member banks will be advised, by an appropriate circular letter, when notice is received with respect to observation of Daylight Saving Time in other localities. As previously indicated, requests to make transfers between member banks both of which are served by the head office or by the same branch office of the Federal Reserve Bank of Dallas will be accepted until 3 :00 p.m. local time. GENERAL Ordinarily, instructions to our offices to make transfers of funds should be sent in writing, officially signed, or be sent by telegraph, in American Bankers Association code, properly tested, and should specify whether the transfers are to be completed by mail or telegraph. Telegraphed instructions must be con firmed immediately by an officially signed written confirmation. Instructions to make transfers should not be telephoned to our offices unless prior arrangements have been made to do so or unless the circumstances pre clude use of telegraph facilities. Our offices will not act upon telephoned trans fer instructions which involve the payment of money to a third party other than a member bank of the Federal Reserve System. If the circumstances appear to warrant it, a member bank may arrange for our offices to accept telephoned transfer instructions. Such an arrangement will be based upon a written agree ment, officially signed. Ordinarily, the agreement will provide that only active operating officers of the member bank will telephone transfer instructions to our offices and that officially signed written confirmations will be mailed imme diately. A member bank may designate staff members, other than officers, to telephone transfer instructions, but such a designation must be in the form of a resolution of the board of directors of the member bank specifically authorizing — 4— BULLETIN No. 6 the designated individual or individuals to act for the member bank in tele phoning such instructions and relieving the Federal Reserve Bank o f Dallas and its branches from any liability when acting upon such instructions. If a member bank finds it necessary to telephone transfer instructions, and no prior arrangements to do so have been made, the instructions should be telephoned to our offices by an active operating officer. This officer should contact the officer in charge of the Accounting Department, when telephoning to Dallas, or any officer, when telephoning to a branch office. All telephoned transfer instructions must be confirmed immediately by an officially signed written confirmation. Unless otherwise instructed, member bank requests for telegraphic trans fers will be handled on the date received, provided they reach this bank not later than the time shown in the supplement. A request to transfer funds will be construed as authority to charge the account of the requesting member or nonmember clearing bank to cover the amount of funds to be transferred, unless such request is accompanied by a draft of the requesting bank drawn against its account with this bank. Charges against accounts with, and payment of drafts drawn on, this bank, as mentioned herein, will be made only against adequate collected balances. If the accom panying draft is not drawn on this bank, it will be handled for collection and credited to the reserve account when paid, but the transfer will be made and charged to the member bank’s account immediately, if its account is adequate. Member banks wishing to pay for transfers with drafts drawn on their accounts with other banks might find it preferable to follow the procedure outlined under “ Transfers to offset anticipated charges.” Member or nonmember clearing banks may request correspondent member or nonmember clearing banks in this or other districts to transfer funds through the Federal Reserve bank or branch to which such correspondents are attached, except that nonmember clearing banks may not request telegraphic transfers. This bank reserves the right to decline to handle any transfer which, in its opinion, is an abuse of the wire transfer facilities, or which involves the fulfill ment of unusual or extraordinary conditions. LIABILITY OF THE FEDERAL RESERVE BANK The Federal Reserve Bank of Dallas will use due diligence and care in the transfer of funds by telegraph to the receiving Federal Reserve bank for credit to the account of the payee bank, but will not be responsible for errors or delays caused by circumstances beyond its control. Any member or nonmember clearing bank using the transfer facilities offered by the Federal Reserve Bank of Dallas will be understood by such use to have agreed to the terms and conditions set forth in this bulletin. The right is reserved to withdraw, add to, or amend at any time, any o f the provisions of this bulletin. Respectfully, Watrous H . Irons President FEDERAL RESERVE BANK OF DALLAS SUPPLEMENT TO BULLETIN No. 6 EFFECTIVE MARCH 1, 1959 CLOSING HOURS FOR THE ACCEPTANCE OF REQUESTS TO MAKE TELEGRAPHIC TRANSFERS OF FUNDS FOR CONSUMMATION ON DAY OF RECEIPT Requests must be received not later than time shown below Dallas, Houston, San Antonio Central Time El Paso Mountain Time FOR TRANSFERS THROUGH: B O S T O N ........................................................................ 2:00 P.M. 1:00 P.M. N E W Y O R K ....................................................................1:30 P.M. B u f f a l o ..............................................................................1:30 P.M. 12:30 P.M. 12:30P.M. P H I L A D E L P H I A ..........................................................2:30 P.M. 1:30 P.M. CLEVELAND ............................................................... 1:30 P.M. C incin nati.................................................................... 1 :30 P.M. Pittsbu rgh .........................................................................1:30 P.M. 12:30 P.M. 12:30 P.M. 12:30P.M. R I C H M O N D ....................................................................1:30 P.M. B a ltim o r e .........................................................................1:30 P.M. C h a r lo t t e .........................................................................1:30 P.M. 12:30P.M. 12:30 P.M. 12:30P.M. A T L A N T A .........................................................................1:30 P.M. B irm in g h a m ................................................................... 2:30 P.M. J a ck s o n v ille ....................................................................1:30 P.M. N a s h v i lle ........................................................................ 2:30 P.M. New O rlea n s................................................................... 2:30 P.M. 12:30P.M. 1:30 P.M. 12:30P.M. 1:30P.M. 1:30 P.M. C H I C A G O .........................................................................1:30 P.M. D e t r o i t ............................................................................. 1:30 P.M. 12:30P.M. 12:30P.M. ST. L O U I S ........................................................................ 3:00 Little R o c k ................................................................... 3:00 L o u is v ille ........................................................................ 3:00 M e m p h i s ........................................................................ 3:00 P.M. P.M. P.M. P.M. 2:00 P.M. 2:00 P.M. 2:00 P.M. 2:00 P.M. M I N N E A P O L I S .............................................................. 2:30 P.M. H e l e n a ............................................................................. 3:00 P.M. 1:30P.M. 2:30 P.M. K A N S A S C I T Y ...............................................................2:30 P.M. D e n v e r ............................................................................. 3:00 P.M. Oklahoma C i t y ...........................................................2 :30 P.M. O m a h a ............................................................................. 2:30 P.M. 1:30P.M. 2:30 P.M. 1 :30 P.M. 1:30 P.M. D A L L A S ............................................................................. 2:30 P.M. El P a s o .................................................................... 3:00 P.M. H o u s t o n ........................................................................ 2:30 P.M. San A n t o n io ................................................................2 :30 P.M. SAN F R A N C I S C O ......................................................3 :00 P.M. Los A n g e l e s ................................................................3 :00 P.M. P o r t l a n d ........................................................................ 3:00 P.M. Salt Lake C i t y ...............................................................3:00 P.M. Seattle ........................................................................ 3:00 P.M. 1:30 P.M. -----1:30 P.M. 1 :30 P.M. 3 :00 P.M. 3 :00 P.M. 3:00 P.M. 2:30 P.M. 3:00 P.M. Note: The closing hour for telegraphic transfers to Federal Reserve banks and branches located in cities which observe “ daylight saving” time during any part o f the year will be automatically advanced one hour during that period.
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