The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Circular No. 56 Series of 1917 FEDERAL RESERVE BANK OF D A L L A S R. L . V A N Z A N D T , G O V E R N O R J. w . H O O P E S , D eputy G o vernor L V N N P. T A L L E Y , C a s h ie r SA M R . L A W D E R , A SST. C A SH IER R. R . G I L B E R T , A S S T . C A S H I E R December 27, 1917. Plan f or t h e C o l l e c t i o n o f M a t u r i n g N o t e s , B i l l s a n d O t h e r C o l l c t i o n It e m s TO TH E BANK AD D RESSED : Upon the authority of the Federal Reserve Board and by its direction, the Federal Reserve Bank of Dallas will establish a Collection Department for the handling of all forms of collection items. These items will be collected as promptly as possible and credit given when actual payment has been received. The conditions and regulations governing the operation of this Department of the Bank are fully set forth in the follow ing circular. Any bank forwarding items for collection agrees to all the conditions proposed. D A TE OF IN AU G U R A T IO N : January 1, 1918. ITEM S R EC E IVE D : All collection items, drafts, notes, coupons, acceptances, etc. R O U TIN G : The Federal Reserve Bank of Dallas may, in its discretion, send all items for payment direct to a bank located at the place where the item is payable or to another agent for collection, and assumes no responsi bility for the failure of any of its direct or indirect collection agents, and shall be held liable only when pro ceeds in actual funds or solvent credits shall have come into its possession. CHARGES: The Federal Reserve Bank of Dallas will make a service charge of ten cents per item in addition to the exchange charge that may be made by the collecting bank. In case of the collection item being returned unpaid, there will be an additional charge of ten cents which will be paid to the bank presenting the item for payment. A service charge will not be imposed for collecting coupons. The only charge for the col lection of coupons payable outside of the Federal Reserve City will be the usual one covering the expense of registration and insurance or express charges plus any charge made by the collecting bank. The charge of ten cents per item made for handling unpaid items will be paid to the presenting bank monthly. R EM ITTIN G : In so far as possible, items will be sent direct to their place of payment, and when payable outside of the district the collecting bank will be permitted to make remittance either direct to the Federal Reserve Bank of Dallas in Dallas exchange or, if more convenient, to any other nearby Federal Reserve Bank in available exchange for the credit of this bank. The Collection Department is being established for the purpose of furnishing additional service to mem ber banks, and to make this department as efficient as possible, it is earnestly desired that member banks co-operate in making prompt acknowledgment of items, returns and advices of the payment of collection items. It is recognized that in the presenting and remitting of collection items, the remitting or crediting bank is rendering a service of a different character than that of remitting for its own checks, and for such a service is entitled to make a reasonable exchange charge, which should not exceed ten cents per one hun dred dollars, with a minimum charge of ten cents. Banks are urged to remit for collection items paid, instead of crediting to the Federal Reserve Bank Account. A S P E C IA L F O R M O F R E M IT T A N C E L E T T E R W I L L A C C O M P A N Y A L L C O L L E C T IO N ITE M S, T H IS F O R M T O BE U SE D B Y T H E R E M IT T IN G BAN K. Respectfully, Governor. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)