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F ederal reserve b an k OF D ALLAS Dallas, Texas, May 25, 1961 FOOD STAMP PROGRAM To the Member and Nonmember Banks of the Eleventh Federal Reserve District: Enclosed is a statement dated May 12, 1961, entitled “ All Commercial Banks — Procedures for Commercial Banks in Handling Food Stamp Coupons under the Pilot Food Stamp Project” of the Depart ment of Agriculture. This statement summarizes the Department’s regulations governing the pilot food stamp project as they relate to the participation of commercial banks in the Food Stamp Program. This bank and its branches, as fiscal agents of the United States, will pay these food stamps and will accept them for immediate credit when received prior to 2:00 p.m. Mondays through Fridays. Such credit will be given subject to verification and final payment, and any necessary adjustments will be made under appropriate advice to sending banks. Member and nonmember clearing banks may forward the food stamps to us by means ordinarily used in forwarding checks for collection. Nonmember banks should forward the stamps through usual banking channels. A t this time it is not expected that banks in this district will receive a volume of food stamp coupons. However, any that are received should be sorted according to denomination and transmitted with the usual cash letter form of the sending bank. The stamps should be forwarded separately from other items, with only the total number and dollar amount of each denomination shown on the cash letter form, for example: 1.000 Food Stamps @ $ .25 = $ 250.00 1.000 Food Stamps @ 1.00 = 1,000.00 2.000 $1,250.00 Food stamps forwarded for redemption must be cancelled by the first bank of deposit by indelibly marking “ Paid” or “ Cancelled” together with the name o f the bank on the face of the food stamp by means of an appropriate cancellation stamp. The food stamps should not be endorsed by any bank. Food Stamp Program Redemption Certificates should be held by receiving banks and disposed o f in the manner prescribed in the instructions of the Department of Agriculture. All banks forwarding food stamp coupons should maintain adequate records in order to substantiate reimbursement claims for items lost in transit. Any question in regard to the food stamp collection procedure should be addressed to an office of this bank. Please acknowledge receipt of this letter and the enclosed statement by signing and returning the attached 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) May 12, 1961 All Commercial Banks Procedures for Commercial Banks in Handling Food Stamp Coupons under the Pilot Food Stamp Project The Secretary of Agriculture today issued regulations governing the use and handling of Food Stamp Coupons under the pilot Food Stamp projects author ized by the President in his Economic Message to the Congress. Pilot Food Stamp projects will he operated in the following project areas; Franklin County, Illinois; Floyd County, Kentucky; City of Detroit, Michigan; VirginiaHibbing-Nashwauk area, Minnesota; Silver Bow County, Montana; San Miguel County, New Mexico; Fayette County, Pennsylvania; and McDowell County, West Virginia. Under the pilot Food Stamp projects, eligible families will exchange an amount of money representing their normal expenditures for food for an allotment of Food Stamp coupons of higher monetary value. The coupon will be used to pur chase commercial brand foods at regular retail food stores. Retailers accept ing the coupons will be able to redeem them at face value through the facil ities of commercial banks, including both members and nonmembers of the Federal Reserve System. It is expected that a small number of retailers will use the coupons to pay food wholesalers for purchases and the wholesalers will subsequently redeem the coupons. Coupons are an obligation of the United States within the meaning of 18 U.S.C.8. The provisions of Title 18 of U. S. Code "Crimes and Criminal Procedure" re lative to counterfeiting and alteration of obligations of the United States and the uttering, dealing in, etc., of counterfeit obligations of the United States are applicable to these coupons. Also, the provisions of 31 U.S.C. 231 relating to the making of false claims against the United States are applicable to transactions involving these coupons. Under the regulations: 1. Authorized retail food stores and wholesale food concerns may deposit food coupons for redemption with commercial banks. 2. Coupons submitted to banks for redemption must be accompanied by a properly executed Form No. AMS-253* Food Stamp Program Redemption Certificate. (See Exhibit A on Page It-.) The coupons must reflect on the back, either (l) the Food Stamp Program Authorization No., or (2) the name of the food store and, if involved, the wholesale food concern. No bank shall knowingly accept coupons for redemption from unauthorized retail food stores, wholesale food concerns, or any other unauthorized persons, partnerships, corporations, or other legal entities. Banks may require persons presenting coupons for redemption to exhibit their Agricultural Marketing Service Food Stamp Program Authorization, Foma No. AMS-25^. (See Exhibit A on Page U.) 2 a. Coupons accepted for redemption must "be cancelled by the first bank receiving the coupons by indelibly marking ''paid'1 or "cancelled" together with the name of the bank on the face of the coupons by means of an appropriate stamp. The coupons should not be endorsed by any bank. b. A portion of a coupon consisting of not less than three-fifths (3/5) of a whole coupon may be accepted for redemption at face value. A portion of a coupon of less than three-fifths (3/5) of a whole coupon will not be accepted for redemption. 3. The Food Stamp Program Redemption Certificates shall be held by the re ceiving bank until the coupons have been paid by the Federal Reserve Bank, after which the certificates shall be forwarded weekly by the receiving bank to the Agricultural Marketing Service at the address indicated in the last paragraph of these instructions. b. Banks which are members of the Federal Reserve System and nonmembers clearing banks may forward cancelled coupons directly to Federal Reserve Banks for payment in accordance with applicable regulations or instructions of the Federal Reserve Banks. Other banks may forward cancelled coupons through ordinary collection channels. 5* Federal Reserve Banks, acting as fiscal agents of the United States, are authorized to receive cancelled coupons from member banks of the Federal Reserve System and nonmember clearing banks sent in accordance with in structions to be issued by the Federal Reserve Banks and to pay such coupons. 6. While in the course of shipment cancelled coupons shall be considered to be at the risk of the Agriculture Department, if the bank^transmitting such coupons has exercised due diligence and taken ordinary care in making the shipment. Reports of loss, destruction or damage shall be given promptly on discovery to all of the following: Agricultural Marketing Service; the nearest Secret Service Office; the Post Office or other carrier; and the Secretary of the Treasury, Bureau of Accounts. The offices to which Food Stamp Program Redemption Certificates should be sent are as follows: 1. For the project area of Franklin County, Illinois: Food Distribution Division, Agricultural Marketing Service, U. S. Department of Agriculture, Civil Courts Building, 8th Floor, St. Louis 1, Missouri. 2. For the project area of the City of Detroit, Michigan: Food Distribution Division, Agricultural Marketing Service, U. S. Department of Agriculture, Room 1027, Federal Building, Detroit 26, Michigan. - 3 3* For the project area of Virginia-Hibbing-Nashwauk, Minnesota: Food Distribution Division, Agricultural Marketing Service, U. S. Department of Agriculture, Rt>c»n 302, City Hall, Hibbing, Montana. 4. For the project area of Silver Bow County, Montana: Food Distribution Division, Agricultural Marketing Service, U. S. Department of Agriculture, Prudential Tower Building, Room 45, 7 East Broadway, Butte, Montana 5* For the project area of San Miguel County, New Mexico: Food Distribution Division, Agricultural Marketing Service, U. S. Department of Agriculture, Post Office Building, Room 202, Las Vegas, New Mexico. 6. For the project area of Fayette County, Pennsylvania: Food Distribution Division, Agricultural Marketing Service, U. S. Department of Agriculture, Gallatin National Bank Building, Rooms 620-621, Uniontown, Pennsylvania. 7- For the project area of McDowell County, West Virginia: Food Distribution Division, Agricultural Marketing Service, U. S. Department of Agriculture, Swope Building, Room 1, Welch, West Virginia. 8. For the project area of Floyd County, Kentucky: Food Distribution Division, Agricultural Marketing Service, U. S. Department of Agriculture, Meade-Allen Building, Court Street & Lake Drive, Prestonsburg, Kentucky. - 4 EXHIBIT A - FORM F O R M A M S -2 B 3 FOOD STAMP PROGRAM REDEMPTION CERTIFICATE IS -8 -6 I) INSTRUCTIONS: (B) NO. O F STAM PS $0.25 RETAIL MERCHANTS: (1) Show the name and address of the bank redeeming or the wholesaler crediting coupons in block " A . " (2) Complete block " B ” to reflect numbez and ▼alue o f coupons being redeemed* (3) Complete block " C . ” 1.00 «- B U D . B U R . N O . 4 Q -R S 1 6 9 U . 8 . DEPARTM ENT OF AG RICU LTU R E AQRICUlTUfi Al ■ABKITINE «l«V IC £ BANK'S S T A M P $ Total (C) TO TAL V A LU E O F STAMPS GENERAL: la presenting coupons to banks, separate cou pons by denomination. APPRO VED $ CERTIFICATION WHOLESALERS: (1) Show name and address o f the bank redeeming or crediting coupons in block " A . 11 (2) Complete block “ B ” to reflect the number and value of coupons re ceived from retailers. (3) Complete block " C " (4) Attach certificates received from retailers. Wholesalers engaging in retail business must prepare a separate redemption certificate for coupons received from retail customers. This is to certify that the Food Scamp coupons submitted herewith for redemption were, in accordance with the regulations governing Pilot Food Stamp P rojects, either received by the undersigned as an au thorized retail food store in exchange for eligible foods, or received by the undersigned as an authorized w holesale food concern from authorized retail food stores accompanied by the attached Food Stamp Re demption Certificates signed by the food retailer. The undersigned further certifies that none of said coupons was knowingly accepted by him or his employees from any person or persons who had no right to transfer, exchange or negotiate said coupons under the regulations. (A) Firm Authorization No. Address Dace B y. Actual size: 8" x 3-1/4" Actual size: 6" x 4 Title
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