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FEDERAL R ESERVE B A N K O F D A L L A S DALLAS. TEXAS November 2, 1959 T o All Banks in the Eleventh Federal Reserve District: Attached is the first o f a series o f informational material and instructions which we will be sending you concerning the basic plans and procedures under which the Federal Reserve Bank of Dallas, its branches, and the District commercial banks would be operating in the event o f a national emergency. W e have placed in the enclosed binder a document showing a “ Summary o f Emergency Planning by the Federal Reserve Bank o f Dallas,” a statement on “ Information Regarding the Collection o f Cash and Noncash Items During an Emergency,” and two special emergency bulletins, Nos. 8B and 9A. For nonmember banks which have not yet received the documents, there are enclosed copies o f our regular Bulletins Nos. 8 and 8A, and Regulations J and G o f the Board o f Governors, as well as the participation agreement form referred to in the accompanying state ment. It would be appreciated if you will acknowledge receipt o f these documents by signing and returning the enclosed postal card. 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 DALLAS, TEXAS November 2, 1959 SUMMARY OF EMERGENCY PLANNING B Y TH E FEDERAL RESERVE BANK OF DALLAS To All Banks in the Eleventh Federal Reserve District: For several years, the Board o f Governors o f the Federal Reserve System and the Federal Reserve banks have been developing preparedness plans so that, in the event of a national emergency, the Nation’s monetary and credit mechanisms would be available in the rehabilitation period. A t the Federal Reserve Bank o f Dallas, preattack planning has made substantial progress in several important areas. T o protect against loss o f its records, the Bank has established record storage centers; and, each day, certain critical records o f the Bank, principally those relating to member bank balances and safekeeping of securities, are accumulated at these sites from each o f the four offices o f this Bank. The record storage centers also would serve as relocation sites from which the Bank could be operated if the Dallas office was destroyed or was unavailable. In order to maintain the principal operating functions o f the Bank in a postattack period when all or any Federal Reserve Bank offices might be inoperable, a number o f additional steps have been taken. Special check agents have been designated in a number o f District cities to process checks in assigned areas and would commence operations when so directed by the Federal Reserve Bank. The Bank also has under consideration the designation o f a limited number o f cash agents who would distribute currency and coin, under emergency conditions, as agents o f the Federal Reserve Bank o f Dallas. Special emergency bulletins have been prepared which establish procedures for the collection o f cash and noncash items during an emergency. Material relating to cash operations will be prepared in the near future. Other emergency plans o f this Bank have included the preparation of succession lists for the chief executive officer, the boards o f directors o f the Head Office and each branch, and the Federal Reserve Agent and his alternates. Under preparation are detailed emergency manuals o f instruction. In addition, personnel within this Bank have been trained in damage assessment and in (over) special assignments o f an emergency operations character. Other projects con cerning preparedness measures are being developed or are under active con sideration. The Bank is represented on the Regional Board o f the Office o f Civil and Defense Mobilization and has participated in all o f the m ajor alert tests for the past 5 years. In the interest o f maintaining the operation o f the commercial banking system o f the Nation during an emergency, this Bank is also cooperating with special committees o f the American Bankers Association in fostering prepared ness measures at commercial banks. The Federal Reserve Bank o f Dallas has received requests to hold, in its emergency files, succession lists for member banks and is willing to perform this service fo r any District bank, member or nonmember. Other documents which could be sent to the Reserve Bank for safekeeping would include certified copies o f corporate bylaws and outlines o f provisions for continuity o f operation at alternate relocation sites. The respon sibility o f this Bank toward such documents is limited to providing them the same protection as is given its own records and, within limits o f postattack transportation and communications facilities, disposing o f the documents in the manner prescribed by the sending bank. W ithin reasonable limits, the services o f the emergency planning officer of this Bank are available to the District banks for the purpose o f assisting in the development o f emergency preparedness measures. Additional information on the Bank’s emergency bulletins will be sent to you from time to time. It is requested that all banks in the District familiarize themselves with these plans and keep them available in the special binder pro vided with this initial group o f instructions. Yours very truly, Watrous H . Irons President Fe d e r a l Reserve b a n k o f Dallas DALLAS, TEXAS November 2, 1959 INFORMATION REGARDING TH E COLLECTION OF CASH AND NONCASH ITEMS DURING AN EMERGENCY To All Banks in the Eleventh Federal Reserve District: Emergency Bulletin No. 8B o f this bank, dated October 15, 1959, enclosed in this binder, describes our plan for the collection o f cash items during an emergency. This plan provides for the decentralization o f our check collection operations through a division o f the Eleventh Federal Reserve District into 17 emergency clearing groups and the designation o f a bank or group of banks as agent o f this bank in each area. These agents have been furnished a detailed procedure for performing the check collection operations in the event the agency arrangements are activated. A s indicated under the date line on the front page o f Bulletin No. 8B, it will be effective only upon notice during an emergency. Paragraph 8 provides that the designated agent will notify the banks in its emergency clearing group when the bulletin is to become effective, as well as the date that the emergency clearing operations are to be initiated. I f possible under the conditions exist ing at the time, the Federal Reserve Bank o f Dallas will keep all banks informed as to emergency actions and instructions, and other information pertaining to banking operations in the emergency. It will be noted that paragraph 16 of the bulletin calls for the use of Form TR-151 by member banks authorized to send direct to other Federal Reserve offices. A supply of Form TR-151 will be furnished any such bank upon request. Emergency Bulletin No. 9A o f this bank, dated October 15, 1959, also enclosed in this binder, describes our plan for the collection o f noncash items during an emergency. This bulletin also becomes effective only upon notice during an emergency. A s indicated in paragraph 5 o f the bulletin, this plan calls for collecting noncash items through correspondent banks w'herever pos sible. I f an undamaged correspondent bank is not available, member banks, nontnember clearing hanks, and participating nonmember banks should follow the procedures found in paragraphs 6 to 9. (over) These emergency bulletins should be studied by those responsible in your bank so they will be familiar with the emergency plans for the collection of cash and noncash items. It will be noted that, subject to the conditions set forth therein, paragraph 4 o f Emergency Bulletin No. 8B provides that a par-remitting nonmember bank may send cash items to us or to our agent and paragraph 4 o f Emergency Bulletin No. 9A provides that any nonmember bank may send noncash items to us or to another Federal Reserve office direct, for the account, in either case, o f a correspondent member bank with which the nonmember has made arrange ments for its transactions to be reflected in the member bank’s reserve account. Participation agreement forms, requiring execution by both the nonmember bank and the correspondent member bank, are being furnished all nonmember banks for the use o f those wishing to make such settlement arrangements. In addition to the emergency bulletins, Bulletins Nos. 8 and 8A o f this bank and Regulations J and G o f the Board o f Governors o f the Federal Reserve System are being sent to those nonmember banks which have not previously been furnished such material. Yours very truly, Watrous H . Irons President FEDERAL RESERVE BANK OF DALLAS EMERGENCY BULLETIN NO. SB OCTOBER 15, 1959 (Effective only upon notice during an emergency) C O L L E C T IO N OF CASH IT E M S D U R IN G AN EM ERGENCY T o All Banks in the Eleventh Federal Reserve District: BASIC ASSUMPTIONS 1. There is furnished in this bulletin a plan for resuming and continuing the collection o f cash items during a war or national emergency. The plan is based upon the assumption that the majority of the regular Federal Reserve offices and many o f the larger commercial banks would be out o f operation. A situation o f this magnitude would require the decentralization o f Federal Reserve bank operations by using certain commercial banks or groups o f com mercial banks as agents for the collection o f cash items. All banks would be called upon to perform operations in addition to those undertaken under normal conditions, such as making additional sorts of cash items and other procedural changes to meet the conditions existing during an emergency. 2. Basically, commercial banks should continue in so far as possible to collect their cash items through the same channels employed under normal conditions. If a bank has utilized the collection services of a correspondent bank, cash items should continue to be sent to the correspondent if its regular office is in an undamaged area, or if damaged, to its undamaged alternate office. Settlement for such items and for returned cash items should be made in the customary manner. Those banks that have utilized the check collection services o f the Federal Reserve Bank o f Dallas, or its branches at El Paso, Houston, and San Antonio (and other banks which may require such services in an emergency), should follow the collection procedures outlined in this plan. All banks should conform with the plan to the extent that it is applicable to their operations. TERMS AND CONDITIONS OF COLLECTION 3. Every bank sending cash items to us or for our account to any drawee bank, or to our agent, or to another Federal Reserve office direct, by such act will be understood to have agreed (1 ) to the terms and conditions o f the regu lation or regulations o f the Board of Governors o f the Federal Reserve System in effect at the time, relating to the clearing and collection of checks and other cash items in an emergency, (2 ) to the terms and conditions of this emergency plan for handling cash items, and (3 ) except to the extent to which they may be inconsistent with this emergency plan, to the terms and conditions o f our Bulletin Nos. 8 and 8A and o f Regulation J promulgated by the said Board of Governors. Every such sending bank by such act will be understood to have authorized us to defer or cause to be deferred, for such period or periods during the time o f war or any period of national emergency, as we in our discretion mav determine, either the forwarding or presentment or return of any such items, collection of which we in good faith believe to be impracticable at the time, either because the banks upon which they are drawn have temporarily suspended operations or because transportation facilities have been disrupted or are unavailable. — 2— PARTICIPATION BY NONMEMBER BANKS 4. A nonmember bank (including any nonpar bank agreeing to remit at par during an emergency) which is not a nonmember clearing bank may send cash items to us or to our agent, under the terms and conditions hereof, fo r the account o f a correspondent member bank with which the nonmember bank has previously made appropriate arrangements for its transactions to be reflected in the member bank’s reserve account. Under such arrangements the relation ships and the rights and liabilities existing between us and the correspondent member bank with respect to such items will be the same, and the relevant provisions o f this bulletin will apply, as though the member bank had sent such items to us with its endorsement and guarantee o f prior endorsements. EMERGENCY CLEARING GROUPS Designated Agents 5. The banks in the Eleventh Federal Reserve District have been divided into 17 emergency clearing groups. In Schedule A , attached to and made a part o f this bulletin, there are shown the counties a n d /or parishes within each group area and the name of the commercial bank, or group o f commercial banks, designated to act during an emergency as agent o f the Federal Reserve Bank o f Dallas for the collection o f cash items drawn on the member, non member clearing, and par-remitting nonmember banks in each group and fo r the collection o f checks payable in other areas which it receives from any o f the “ participating” banks o f the group. Participating and Nonparticipating Banks 6. The banks included in the emergency clearing groups will be known as “ participating” and “ nonparticipating” banks. (a ) Participating banks will consist o f the follow in g: (1 ) A ll member banks. (2 ) A ll nonmember clearing banks. (3 ) Par-remitting nonmember banks (including nonpar banks agreeing to pay at par during an emergency, as referred to in paragraph 7 below) which have made advance arrangements, to become effective in an emergency, for entries in the reserve account o f a member bank with which the nonmember bank carries an account reflecting credits for items sent, and charges for items received, arising out o f its participation in the emer gency clearing group. (b ) Nonparticipating banks will consist o f the following: (1 ) Par-remitting nonmember banks (including nonpar banks agreeing to pay at par during an emergency, as referred to in paragraph 7 below) which have not made the advance arrange ments described in subparagraph (a ) (3 ) above. Nonpar Banks 7. Any nonpar bank which agrees to remit at par for casli items presented to it during an emergency may be included in an emergency clearing g r o u p ; and, wherever the term “ par-remitting hanks” (o r similar language) is used in this bulletin it will include any such bank. A nonpar bank which has made — 3— such agreement may also qualify as a participating bank by making the advance arrangements prescribed in paragraph 6 ( a ) ( 3 ) ; otherwise, it will have the status o f a nonparticipating hank, as referred to in 6 (b ) (1 ). NOTIFICATION TO BANKS IN EMERGENCY CLEARING GROUPS 8. When an agent is instructed to initiate emergency clearing operations, the agent will notify the banks in its emergency clearing group. The agent will inform the banks that this bulletin has become effective and that until further notice check clearing operations will be handled in accordance with its provisions. EMERGENCY CLEARING OPERATIONS Procedure by Agent 9. Under the emergency check clearing operations, an agent will send checks to the participating and nonparticipating banks o f its emergency clearing group, and will receive checks from those participating banks o f the group which choose to utilize the check collection services o f the agent. The agent also will send checks to and receive checks from other agents within the Eleventh Federal Reserve District and the relocation office o f the Federal Reserve Bank of Dallas, and will send checks to other Federal Reserve offices. Checks drawn on nonparticipating banks wall be sent to such banks for remittance to the agent by draft. Settlement for all other check transactions o f the agent will be made on an immediate debit and credit basis on the books o f the Federal Reserve Bank o f Dallas. Procedure by Participating Banks 10. Participating banks will receive cash letters from the agent of their emergency clearing group and will be privileged to send cash letters to the agent and to the relocation office of the Federal Reserve Bank o f Dallas. (M ember banks having the direct sending privilege may send items direct to other Federal Reserve banks and branches or their relocation offices.) A par ticipating bank which is a member o f the Federal Reserve System or is a non member clearing bank will credit its account with the Federal Reserve Bank o f Dallas for cash letters received from the agent and will debit that account for cash letters which it forwards to the agent or to the relocation office of the Federal Reserve Bank o f Dallas (and for any direct-sent cash letters). A participating bank which has no account with the Federal Reserve Bank o f Dallas will credit its account with the member o f the Federal Reserve System with which it has made the advance arrangements prescribed in paragraph 6 ( a ) ( 3 ) for cash letters received from the agent and will debit that account for cash letters sent to the agent or to the relocation office of the Federal Reserve Bank o f Dallas. (T h e plan for the collection o f cash items by participating banks is outlined in paragraphs 13 to 20 o f this bulletin.) Procedure by Nonparticipating Banks 11. Nonparticipating banks will receive cash letters from the agent of their emergency clearing group and will remit to the agent by draft for such cash letters. The nonparticipating bank will deduct and return with its remittance any unpaid checks received from the agent. PLAN FOR COLLECTION OF CASH ITEMS BY PARTICIPATING BANKS 12. In accordance with paragraph 2 o f this bulletin, participating banks which utilize the check collection services o f the Federal Reserve Bank o f Dallas should follow the procedure outlined in paragraphs 13 to 20 o f this bulletin for the collection o f their cash items. — 4— Cheeks Drawn on Banks in Same City 13. Present over the counter or through the clearings, checks drawn on banks in the same city. Settlement for these items should be made in accordance with local practice. Checks Drawn on Banks Outside Same City but in Same Emergency Clearing Group 14. Except for items otherwise referred to in this paragraph, include in a a cash letter addressed to the agent o f the group checks drawn on other banks in the same emergency clearing group. Settlement for such cash letter will be made, through the agent, on the books of the Federal Reserve Bank. In those cases where the sending bank has a number o f items with a sizable dollar amount drawn on other banks o f the same emergency clearing group located in its vicinity, the checks should be sent direct to the drawee hanks with settle ment to be made in the manner agreed upon between the banks involved. Checks Drawn on Banks in Other Emergency Clearing Groups o f the Eleventh Federal Reserve District 15. Except for items otherwise referred to in this paragraph, also include in the cash letter addressed to the agent o f the group checks drawn on banks in other emergency clearing groups of the Eleventh Federal Reserve District. Settlement for such cash letter will be made, through the agent, on the books o f the Federal Reserve Bank. In those cases where the sending bank has a number o f items with a sizable dollar amount drawn on banks o f other emergency clearing groups located in its vicinity, the checks should be sent direct to the drawee banks with settlement to be made in the manner agreed upon between the banks involved. Checks Drawn on Banks in Other Federal Reserve Districts 16. Unless a bank is authorized to send direct to other Federal Reserve offices, checks drawn on banks in other Federal Reserve districts should be included in the cash letter to its agent. Any bank that sends direct to other Federal Reserve banks and branches or their relocation offices should prepare a Form TR-151 for each sending, forwarding the usual copies to its agent. Settlement in either case will be made, through the agent, on the books o f the Federal Reserve Bank o f Dallas. Government Checks, Postal Money Orders, and Checks Drawn on the Federal Reserve Bank o f Dallas and Other Banks in the Relocation City 17. Include in a cash letter addressed to the relocation office o f the Federal Reserve Bank o f Dallas Government checks, postal money orders, checks drawn on the Federal Reserve Bank o f Dallas, and checks drawn on other banks in the relocation city. Government checks, postal money orders, and checks drawn on each drawee hank should be listed and packaged separately. The totals of the respective packages should he recapped on one cash letter form with an aggregate total shown. Settlement for such cash letter will be made on the books o f the Federal Reserve Bank. Unpaid Cash Items 18. Items that are received in a cash letter from an agent on which payment is revoked should be listed and enclosed in a package addressed to the agent with the total o f the items shown on the face o f the package. The total should be listed as a single item in the cash letter addressed to the agent. Since, in — 5— effect, returned items will be handled as cash items, no special accounting pro cedure is necessary. I f communication facilities are available, advices of non payment on returned items should be given as under normal conditions. Checks Uncollectible Because o f Damage to Drawee Banks or Because Transportation Facilities Are Unavailable 19. The Federal Reserve Bank will receive applications from commercial banks when submitted in advance as a part o f their emergency planning, to hold, as agent, until otherwise advised, checks that are uncollectible either because the banks on which drawn have temporarily suspended operations or transpor tation facilities are unavailable resulting from enemy attack. The relocation office o f the Federal Reserve Bank o f Dallas will notify all banks in the Eleventh Federal Reserve District as soon as possible the names o f the drawee banks so affected. Such uncollectible items may be held and handled as fo llo w s: (1 ) Sort the checks by drawee banks, microfilm, and list on separate cash letters. Place the checks in safekeeping and notify the relocation office of the Federal Reserve Bank o f Dallas the dollar amount o f items held on each drawee bank. The relocation office will credit the holding bank’s account for the amount o f checks held. The microfilm should be forwarded to the developing firm for delivery to the relocation office. (2 ) W hen a damaged bank resumes operations, or when transpor tation facilities are available, the relocation office will notify banks to forward to it any checks held on that particular bank. The relocation office will then proceed with the collection o f the items. The credit pre viously passed will be allowed to stand, subject to any subsequent charges for items returned for the usual reasons of nonpayment. (3 ) I f a damaged bank does not reopen, the relocation office will notify the holding bank as to what channels should be used to present the uncollectible checks to the liquidating agent. The credit previously passed will be allowed to stand, subject to any subsequent charges for items returned for the usual reasons of nonpayment. 20. Checks drawn on damaged banks, which are not held under the ar rangements outlined in paragraph 19 above, may be forwarded to the Federal Reserve office to which items on such banks are normally sent, or to its relocation office if the regular office is in a damaged area. Credit will be passed subject to any subsequent charges for items returned for the usual reasons of nonpayment. 21. The procedure set forth in paragraphs 19 and 20 is based upon the following statement o f the Board o f Governors o f the Federal Reserve System : “ The Federal Reserve Board assumes that, when the Government’s plans for dealing with a National emergency due to enemy attack are developed by the Congress and the administration at some future time, they will comprehend measures to preserve the monetary system. “ On that assumption, Federal Reserve plans contemplate that Federal Reserve Banks will give credit for cash items received by them or held for them by commercial banks, even though., because o f conditions arising from an enemy attack, the items are uncollectible, either because the drawee banks have suspended operations or because transportation fa cilities arc not available. Items that cannot be presented for such reasons will be held by the Federal Reserve Banks or held for them by commercial banks until they can be presented for payment. The plan contemplates that, after presentation, only such of these cash items would be returned by the Federal Reserve Banks to their depositors as would be returned in normal circumstances for reasons o f nonpayment unrelated to the emergency, such as insufficient funds, no account, forgery, etc.” RIGHT TO AMEND 22. The right is reserved to withdraw, add to, or amend, at any time, any o f the provisions o f this bulletin. Yours very truly, Watrous H . Irons President — 7 SCHEDULE A CLEARING GROUP NO. 1 A G E N T — S O U T H E R N A R IZ O N A B A N K A N D T R U S T C O M P A N Y T U C S O N , A R IZ O N A Counties to be served by above A gent: Arizona Cochise Graham Greenlee Pima Santa Cruz New Mexico Catron Grant Hidalgo Luna CLEARING GROUP NO. 2 A G E N T — • R O S W E L L E M E R G E N C Y C H E C K C L E A R IN G A S S O C IA T IO N R O S W E L L , N E W M E X IC O Counties to be served by above Agent New Mexico Chaves Curry De Baca Dona Ana Eddy Guadalupe Lea Lincoln Otero Quay Roosevelt Sierra Socorro Torrance CLEARING GROUP NO. 3 A G E N T — M ID L A N D E M E R G E N C Y C H E C K C L E A R IN G A S S O C IA T IO N M ID L A N D , T E X A S Counties to be served by above A g e n t: Texas Andrews Borden Brewster Crane Culberson Dawson Ector El Paso Glasscock Howard Hudspeth Tcff Davis Loving Martin Midland Mitchell Pecos Presidio Reeves Terrell W ard W inkler — 8— SCHEDULE A (Cont’ d) CLEARING GROUP NO. 4 A G E N T — L U B B O C K C L E A R IN G H O U S E A S S O C IA T IO N LU BBO CK , T E X A S Counties to be served by above A gent: Texas Garza Hale Hockley Kent Lamb Bailey Cochran Crosby Dickens Gaines Lubbock Lynn Terry Yoakum CLEARING GROUP NO. 5 A G E N T — A M A R IL L O C L E A R IN G H O U S E A S S O C IA T IO N A M A R IL L O , T E X A S Counties to be served by above A gent: Texas Floyd Gray Hall Hansford Hartley Hemphill Hutchinson King Lipscomb Moore Armstrong Briscoe Carson Castro Childress Collingsworth Cottle Dallam Deaf Smith Donley Motley Ochiltree Oldham Parmer Potter Randall Roberts Sherman Swisher Wheeler CLEARING GROUP NO. 6 A G E N T — A B IL E N E C L E A R IN G H O U S E A S S O C IA T IO N A B IL E N E , T E X A S Counties to be served by above A gent: Texas Brown Callahan Coke Coleman Concho Crockett Eastland Fisher Irion Jones , Kimble McCulloch Menard Nolan Palo Pinto Parker Reagan Runnels Schleicher Scurry Shackelford Stephens Sterling Stonewall Sutton Taylor Throckmorton Tom Green Upton —9 SCHEDULE A (Cont’d) CLEARING GROUP NO. 7 A G E N T — A U S T IN C L E A R IN G H O U S E A S S O C IA T IO N A U S T IN , T E X A S Counties to be served by above Agent: Texas Fayette Frio Gillespie Gonzales Guadalupe Hays Kendall Kerr Kinney La Salle Lee Llano Atascosa Bandera Bastrop Bexar Blanco Brazos Burleson Burnet Caldwell Comal Dimmit Edwards Mason Maverick Medina Real Travis Uvalde Val Verde W ashington W ebb Williamson W ilson Zavala CLEARING GROUP NO. 8 A G E N T — W IC H IT A F A L L S E M E R G E N C Y O P E R A T IO N C O M M IT T E E W IC H I T A F A L L S , T E X A S Counties to be served by above A g e n t: Texas Archer Baylor Clay Foard Hardeman Haskell Jack K nox Montague Wichita Wilbarger W ise Young CLEARING GROUP NO. 9 A G E N T -- W A C O C L E A R IN G H O U S E A S S O C IA T IO N W ACO, TEXAS Counties to be served by above A g e n t: Texas Bell Rosque Comanche Coryell Dallas Erath Hamilton Hill H ood Johnson Lampasas McLennan Mills San Saba Somervell Tarrant -1 0 SCHEDULE A (Cont’ d) CLEARING GROUP NO. 10 A G E N T — V IC T O R IA N A T IO N A L B A N K , V IC T O R IA , T E X A S Counties to be served by above A gent: Texas Goliad Jackson Karnes Lavaca Live Oak Matagorda Aransas Austin Bee Calhoun Colorado De W itt McMullen Refugio San Patricio Victoria Wharton CLEARING GROUP NO. 11 A G E N T — F IR S T N A T IO N A L B A N K , B R O W N S V IL L E , T E X A S Counties to be served by above A gent: Texas Jim H ogg Jim W ells Kenedy Kleberg Brooks Cameron Duval Hidalgo Nueces Starr W illacy Zapata CLEARING GROUP NO. 12 A G E N T — C O R S IC A N A C L E A R IN G H O U S E A S S O C IA T IO N C O R S IC A N A , T E X A S Counties to be served by above A g e n t: Texas Ellis Falls Freestone Henderson Leon Limestone Milam Navarro . Robertson CLEARING GROUP NO. 13 A G E N T — D E N IS O N E M E R G E N C Y C H E C K C L E A R IN G A S S O C IA T IO N D E N IS O N , T E X A S Counties to be served by above A g e n t: - Collin Cooke Delta Denton Texas Fannin Grayson Hunt Kaufman Lamar Red River Rockwall — 11 — SCHEDULE A (Cont’d) CLEARING GROUP NO. 13 (Cont’d) Oklahoma Atoka Bryan Choctaw Coal Johnston Marshall Pushmataha CLEARING GROUP NO. 14 A G E N T — T H E S H R E V E P O R T A S S O C IA T IO N F O R T H E E M E R G E N C Y C O L L E C T IO N O F C H E C K S A N D O T H E R C A S H IT E M S S H R E V E P O R T , L O U IS IA N A Counties and Parishes to be served by above A g e n t: Texas Angelina Bowie Camp Cass Franklin Gregg Harrison Hopkins Marion Morris Nacogdoches Panola Rains Rusk Sabine San Augustine Shelby Smith Titus Upshur Van Zandt W ood Louisiana Bossier Caddo De Soto Red River Sabine Webster Oklahoma McCurtain CLEARING GROUP NO. 15 A G E N T — B E A U M O N T C L E A R IN G H O U S E A S S O C IA T IO N BEAUM ONT, TE XA S Counties to be served by above A g e n t: Texas Anderson Chambers Cherokee Hardin Houston Jasper Jefferson Libert}' Newton Orange Polk San Jacinto Trinity Tyler -1 2 SCHEDULE A (Cont’ d) CLEARING GROUP NO. 16 A G E N T — G A L V E S T O N C L E A R IN G H O U S E A S S O C IA T IO N GALVESTON, TE XA S Counties to be served by above A gent: Texas Brazoria Fort Bend Galveston Grimes Harris Madison Montgomery W alker W aller CLEARING GROUP NO. 17 A G E N T — M O N R O E E M E R G E N C Y C H E C K C L E A R IN G A S S O C IA T IO N — M O N R O E , L O U IS IA N A Parishes to be served by above A gent: Louisiana Bienville Caldwell Catahoula Claiborne Concordia East Carroll Franklin Grant Jackson La Salle Lincoln Madison Morehouse Natchitoches Ouachita Richland T ensas Union W est Carroll W inn FEDERAL RESERVE BANK OF DALLAS EMERGENCY BULLETIN NO. 9A OCTOBER 15, 1959 (Effective only upon notice during an emergency) COLLECTION OF NONCASH ITEMS DURING AN EMERGENCY T o A ll Banks in the Eleventh Federal Reserve District: BASIC ASSUMPTIONS 1. There is furnished in this bulletin a plan for resuming and continuing the collection o f noncash items during a war or national emergency. The plan is based upon the assumption that the majority o f the regular Federal Reserve offices and many o f the larger commercial banks would be out o f operation. A situation o f this magnitude would curtail Federal Reserve bank operations, and many commercial banks probably would be called upon to assist in the collection o f noncash items and other operations not performed under normal conditions. All banks should conform with the plan to the extent that it is applicable to their operations. 2. Basically, commercial banks should continue in so far as possible to collect their noncash items through the same channels employed under normal conditions. I f a bank has utilized the collection services of correspondent banks, it should continue the practice wherever possible. All banks are urged to use the most direct method available in collecting noncash items. TERMS AND CONDITIONS OF COLLECTION 3. Every bank sending noncash items to us or to another Federal Reserve office direct, by such act will be understood to have agreed (1 ) to the terms and conditions o f the regulation or regulations o f the Board of Governors of the Federal Reserve System in effect at the time, relating to the collection of noncash items in an emergency, (2 ) to the terms and conditions o f this emer gency plan for handling noncash items, and (3 ) except to the extent to which they may be inconsistent with this emergency plan, to the terms and conditions of our Bulletin No. 9 and o f Regulation G promulgated by the said Board of Governors. Every such sending bank by such act will be understood to have authorized us to defer or cause to be deferred, for such period or periods during the time o f war or any period o f national emergency, as we in our discretion may determine, either the forwarding or presentment or return of any such items, collection o f which we in good faith believe to be impracti cable at the time, either because the banks upon which they are drawn or payable at or through have temporarily suspended operations, or because trans portation facilities have been disrupted or are unavailable. —2— BULLETIN No. 9A PARTICIPATION BY NONMEMBER BANKS 4. A nonmember bank (including any nonpar bank) which is not a non member clearing bank may send noncash items to us or to another Federal Reserve office direct, under the terms and conditions hereof, for the account of a correspondent member bank with which the nonmember bank has pre viously made appropriate arrangements for its transactions to be reflected in the member bank’s reserve account. Under such arrangements the relation ships and the rights and liabilities existing between us and the correspondent member bank with respect to such items will be the same, and the relevant provisions of this bulletin will apply, as though the member bank had sent such items to us with its endorsement and guarantee o f prior endorsements. N on member banks which have made such advance arrangements will be known as “ participating” nonmember banks. PLAN FOR COLLECTION OF NONCASH ITEMS 5. W hen operations at Federal Reserve offices have been disrupted by war or national emergency, banks should collect noncash items through undamaged correspondent banks wherever possible (rather than through the use o f Federal Reserve facilities) with settlement being made between the sending bank and the correspondent bank. W hen an undamaged correspondent bank is not available to handle collections o f noncash items, member banks, nonmember clearing banks, and participating nonmember banks should handle such items in the manner outlined in paragraphs 6 to 9 that follow. Items Payable in Eleventh Federal Reserve District 6. Send to the relocation office o f the Federal Reserve Bank of Dallas only those noncash items which are payable in the city o f such relocation office; the relocation office will attempt to collect such items by the best means available. In the case o f all other noncash items payable in the Eleventh Federal Reserve District, send each item to a bank (preferably a member bank) in or near the community where it is payable and request that bank to collect and remit to the Federal Reserve relocation office for the account o f the sending hank. Items Payable in Other Federal Districts 7. Tf the Federal Reserve bank or branch serving the territory in which the noncash items are payable has suspended normal operations, send to the relocation office of such Federal Reserve bank or branch only those items pay able in the city o f the relocation office. All other noncash items payable in the territory served by the other Federal Reserve bank or branch should be sent direct to a bank (preferably a member bank) in or near the community in which the items are payable, with instructions to collect and remit to the Federal Reserve relocation office o f that territory for credit o f the sending bank through the Federal Reserve relocation office of the Eleventh District. Security Collections S. Bonds and coupons (other than obligations o f the United States and its agencies which are redeemed by Federal Reserve banks as fiscal agents), — 3— BULLETIN No. 9A and other securities, may be collected in the same manner as other noncash items, as outlined in the preceding paragraphs 6 and 7 ; however, caution should be exercised to route such items to banks in undamaged areas. 9. In connection with shipments o f bearer securities forwarded for collec tion during a period o f emergency, greater risks, not only o f destruction but also o f theft, may be involved. Accordingly, sending banks are cautioned to consider whether additional protective measures should be adopted. Sending banks are also hereby notified that most registered mail policies, including those o f the Federal Reserve Bank o f Dallas, contain clauses excluding the assump tion o f “ war risks” in very broad terms. RIGHT TO AMEND 10. The right is reserved to withdraw, add to, or amend, at any time, any o f the provisions o f this bulletin. Yours very truly, Watrous H . Irons President
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