View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

F e d e r a l R e s e r v e Ba n k o f D a lla s

DALLAS, TEXAS

75222
C i r c u l a r No. 75-28
F e b r u a r y 11, 1975

POSSIBLE REDUCTIONS IN MONEY SHIPMENTS
TO FEDERAL RESERVE BANK
TO THE CHIEF EXECUTIVE OFFICER,
EACH MEMBER BANK IN THE ELEVENTH
FEDERAL RESERVE DISTRICT:
T h e c u r r e n t e n e r g y p ro b lem and the p r o s p e c t s of fu tu r e i n c r e a s e s in
fuel costs a n d p o s s ib le g a so lin e ra tio n in g a r e of g r e a t c o n c e rn to us a n d to the a r ­
mored c a r r i e r s th at s e r v e b a n k s in the Eleventh Federal R e s e r v e D is tric t. T h e c u r ­
tailment of fuel u s a g e could also h a v e an effect on the s h ip m e n t of c u r r e n c y and coin
b y r e g i s t e r e d mail. O u r p r i m a r y c o n c e rn is to c o ntin u e to p r o v i d e n eed ed c u r r e n c y
a n d coin s e r v i c e s to member b a n k s , b u t at th e same time we must attempt to con­
s e r v e fuel a n d to hold th e cost of th is s e r v i c e at a r e a s o n a b le l e v e l . O u r o p e ra tin g
costs h a v e i n c r e a s e d s u b s ta n tia lly a n d will c o n tin u e to ris e as g a so lin e becomes
s c a r c e r a n d h i g h e r in p r i c e . T h e only way th a t we can deal with this proble m is
for b a n k e r s to c o op erate with us in k e ep in g money s h ip m e n ts at a minimum.
T h e r e a r e two th in g s th a t m ember b a n k s m ight do to a s s i s t us in r e d u c ­
ing the n u m b e r a n d amounts of money s h ip m e n ts to a n d from the Federal R eserv e:
1.

R euse th e fit c u r r e n c y a nd coin on h a n d r a t h e r than
s e n d in g in money a n d o r d e r i n g the same denomin ations
w ithin a s h o r t s p a n of time.

2.

Ex ch ang e c u r r e n c y a n d coin b e tw ee n b a n k s in the same
city o r a r e a w h e n one b a n k h a s a s u r p l u s a n d a n o th e r
b a n k h a s a n e ed for th is money. If s u c h a r r a n g e m e n t s
a r e made b etw een b a n k s that h a v e a r m o r e d c a r s e r v i c e ,
the Fed eral R e s e r v e will pay the tr a n s p o r t a t i o n c h a r g e s
and a s s u m e the r i s k of making t h e s e s h ip m e n ts .

We would a p p r e c i a t e y o u r re v ie w in g t h e s e m atters with y o u r c a s h offi­
c e r s in an effort to r e d u c e s h ip m e n ts of c u r r e n c y a n d coin to a n d from th is Bank.
S in c e r e ly y o u r s ,
E r n e s t T . Baughman
P r e s id e n t

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102