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F R PRI NT 3233 Circular No. 2 5 Superseding Circular No. 2 Series of 1920 FEDERAL RESERVE BANK OF DALLAS Dallas, Texas, July 27th, 1 9 2 0 . Method of Buying Mail Transfers The Federal Reserve Board having prepared and forwarded to all Federal Reserve Banks and Branches for their guidance a complete revised inter-district time schedule for deferred availability items, it is necessary for us to revise our method in connection with the purchase of exchange on banks in other Federal Reserve and Branch Federal Reserve cities, and mail transfers, as outlined in our Circular No. 2, Series of 1920. Effective immediately, subject to change without notice, exchange on banks in other Federal Reserve or Branch Federal Reserve cities will be credited upon receipt, (when enclosed in a separate letter and request is made that immediate credit is desired), at a discount of lTjXjc per day per $1,000.00 for the number of days it should require to collect the exchange, in accordance with the schedules given in our circular No. 23 (Dallas District), No. 23-EP (El Paso Branch District), No. 23-HB (Houston Branch District), dated July 20, 1920. The amount remitted as a mail transfer to other Federal Reserve or Branch Federal Reserve banks by member banks for credit of their accounts with this bank or with either of its Branches, will be credited upon receipt of advice that remittances are being made. Upon receipt of advice of credit from the Federal Reserve Bank or Branch to which such remittances have been sent, the account of the remitting bank will be charged with the amount of discount on the transfer at the rate of 17J^c per $1,000.00 for each day, including Sundays and holidays, intervening between the date of credit on our books and the date credited on the books of the receiving Federal Reserve Bank or Branch. It is obvious that the adoption of this method will enable us to charge discount to cover the exact number of days that such remittances are in transit and will make unnecessary any subsequent charge as in the past where the actual elapsed transit time was longer than that indicated by the amount of discount charged at the time credit for the transfer was given. SALES. Mail remittances made by this bank and its El Paso and Houston Branches to banks located in other Federal Reserve or Branch Federal Reserve cities, at the request of and for the account of mem ber banks located in the Eleventh Federal Reserve District, will be made at par. W IR E TRANSFERS. Immediate credit at par will be given for transfers made by wire, likewise wire transfers will be made by us to banks located in other Federal Reserve or Branch Federal Reserve cities without cost to our member banks. As has been previously advised, telegrams advising wire transfers as well as telegrams requesting wire transfers to be made, may be sent to us charges collect. W IR E TRANSFERS TO IN D IVID U A LS, FIRMS OR CORPORATIONS. Payment of funds will not be made direct to individuals, firms or corporations. Instructions to make such payments through a specified member bank, either in this or other districts, will be acted upon when such instructions are received by telegram, coded, and proper test word used in connection, or by letter, officially signed. The liability of this bank or its El Paso and Houston Branches, however, is limited solely to the proper transfer of the funds to the receiving bank for credit to the account of or payment to the payee. Yours very truly, Governor. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
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