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F ederal reserve Bank OF DALLAS Dallas, Texas, July 81,1947 DIRECT SENDING OF CASH ITEMS TO OTHER FEDERAL RESERVE BANKS Reimbursement of Transportation Costs To All Member Banks in the Eleventh Federal Reserve District: Since the inauguration of the Federal Reserve check collection system, provision has been made for the direct routing of checks by member banks to other Federal Reserve banks and branches where the number of items or the dollar amount justified such handling. This provision was made because earlier presentment of cash items, and earlier credit, as well as earlier notice of dishonor, are matters of primary concern to all banks and their customers. As further encouragement to direct routing, all Federal Reserve banks (and branches), effective August 1, 1947, will reimburse their member banks for postage or other transportation costs on all cash items sent direct to other Federal Reserve banks and branches. Accordingly, each member bank in the Eleventh Federal Reserve District which sends cash items direct to other Federal Reserve banks and branches pursuant to the provisions of our current Bulletin No. 8 regarding the collection of cash items will be entitled to reimbursement for postage (air mail as well as first class mail) or other transportation costs on all such items sent direct on and after August 1, 1947. For the purpose of this circular, cash items sent direct by member banks in the territory of the head office at Dallas to the El Paso, Houston, or San Antonio branches, and cash items sent direct by member banks in the territory of any one of our branches to the head office or to one of the other branches will be considered as items routed direct to other Federal Reserve banks and branches. Member banks which, by reason of their location, can conveniently deliver their direct routed cash letters to one of our local offices for shipment are requested to do so. This arrangement would permit the consolidation of cash letters into larger shipments to be forwarded by air mail, air express, air freight, or ordinary mail or express, as may be appropriate, and the cost of such shipments will be absorbed by this bank. Postage or other transportation costs on cash items deposited directly with the office of this bank with which the reserve account is carried is not reimbursable. Monthly claims for reimbursement of postage and other transportation costs should be sub mitted not later than the 10th of the following month on forms which wall be supplied by this bank and its branches. Member banks desiring to use the direct routing facilities will be given complete information upon request. Yours very truly, President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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