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FEDERA L RESERVE BANK OF DALLAS DALLAS. TEXAS 75222 Circular No. 81-159 August 4, 1981 PROPOSED PRICING SCHEDULE FOR CASH TRANSPORTATION TO ALL FINANCIAL INSTITUTIONS IN THE ELEVENTH FEDERAL RESERVE DISTRICT: Enclosed is the tex t of the press release and Federal Register n otice regarding the Board o f Governors of the Federal Reserve System's announcement of a proposed new fe e schedule for Federal Reserve cash transportation services and a proposed access policy to nonpriced Federal Reserve cash processing services. Also enclosed is a summary of the cash transportation prices for the Eleventh District and a listing of cities, classified by type of endpoint, for determining currency and coin shipping costs. Your comments on the proposed cash transportation prices must be received by September 25, 1981. Comments, which should refer to Docket No. R-0324, should be addressed to William W. Wiles, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, N.W., Washington, D.C. 20551. Questions concerning these proposals may be directed to Donald L. Jackson, Dallas, (214) 651-6445; William L. Wilson, El Paso, (915) 544-4730, Ext. 202; C. O. Holt, Houston, (713) 659-4433, Ext. 44; or Thomas C. Cole, San Antonio, (512) 224-2141, Ext. 401. Sincerely yours, William H. Wallace First Vice President Enclosure Banks and others are encouraged to use the follow ing incom ing WATS numbers in co n ta ctin g this Bank: 1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the extension referred to above. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) ELEVENTH DISTRICT PROPOSED 1982 PRICE SCHEDULE CURRENCY AND COIN TRANSPORTATION SERVICE VIA ARMORED CARRIER City, Suburban and New Mexico Over-The-Road P er St op Charge: V P er Stop C h a r g e : ^ / F e d e r a l Res er ve Office Zone 3 1 2 Dallas $ 8 26 Houston $16 El Paso $ 6 San Antonio $ 6 4 5 $3 6. 39 37. 26 69 72 73 63 36. 10 3 6. 18 L i a b i l i t y Charge: None L i a b i l i t y Charge: $ 0. 24 p e r $1000 of v a l u e c a r r i e d each way Bag Charge: $ 0. 5 0 p e r bag o f c o i n and c u r r e n c y ^ / Bag Charge: $ 0 . 2 8 p e r bag o f c o i n VIA REGISTERED MAIL4/ A c t u a l c o s t o f p o s t a g e and i n s u r a n c e , up t o a maximum c h a r g e of $ 37 .5 0 p e r s h i p m e n t , one way e i t h e r t o o r from a F e d e r a l Re s er v e O f f i c e . 1 / F o r a s i n g l e i n c i d e n c e o f c i t y and s ubu rb an armored c a r r i e r s e r v i c e , t h e t o t a l c h a r g e w i l l be t h e sum o f t h e p e r s t o p c h a r g e and bag c h a r g e . The minimum total c h a r g e w i l l be $10 p e r i n c i d e n c e . 2/The p r o p o s e d maximum 1982 p e r s t o p c h a r g e i s $75, n a t i o n w i d e . For o v e r - t h e - r o a d ( t a r i f f ) armored c a r r i e r s e r v i c e , t h i s $75 c e i l i n g a p p l i e s t o t h e p e r s t o p c h a r g e p l u s t h e l i a b i l i t y c h a r g e . The bag c h a r g e i s a s e p a r a t e c h a r g e , e x c l u s i v e o f t h e $75 maximum. T h i s $75 c e i l i n g w i l l be in e f f e c t f o r no l o n g e r t h a n two y e a r s (1982 and 1983). 3/The bag c h a r g e w i t h no bag t o f o r c u r r e n c y w i l l be a s s e s s e d on t h e a c t u a l number c o n t a i n more t h a n 2 0, 00 0 n o t e s . of bags s h i p p e d , 4 /Due t o p o s t a l l i m i t a t i o n s a maximum o f $1 00, 000 i s a l l t h a t can be d e l i v e r e d on a s i n g l e p o s t a l r o u t e r e g a r d l e s s o f t h e number o f f i n a n c i a l i n s t i t u t i o n s r e c e i v i n g c u r r e n c y on t h a t r o u t e . - 2 - CITIES WITHIN THE ELEVENTH FEDERAL RESERVE DISTRICT SEPARATED BY ZONE FOR CURRENCY AND COIN SHIPPING SERVICE DALLAS - ZONE 1 F inancial i n s t i t u t i o n s w ithin the c i t y of Dallas. DALLAS - ZONE 2 F i n a n c i a l i n s t i t u t i o n s l o c a t e d in t h e f o l l o w i n g Texas c i t i e s : Addison Aledo Arlington Azle Balch S p r i n g s Bedford Benbrook Burleson C a r r o l 1ton Cedar H i l l C olleyville Coppel1 Crowley D/FW A i r p o r t De Soto Duncanvilie Euless Everman Farmers Branch F o r t Worth Gar land Grand P r a i r i e G rap ev ine Haltom C i t y Highland Park Hurst H ut c h i ns Irving Lancaster Lewisville Mansfield M e s q ui te North R i c h l a n d H i l l s Plano R i c h ar d s on Ro w l e t t Saginaw Seagoville U n i v e r s i t y Park DALLAS - OVER-THE-ROAD All f i n a n c i a l i n s t i t u t i o n s w i t h i n t h e D a l l a s O f f i c e t e r r i t o r y and n o t i n c l u d e d in t h e above z o n e s . HOUSTON - ZONE 1 F i n a n c i a l i n s t i t u t i o n s l o c a t e d in t h e f o l l o w i n g Texas c i t i e s : A ld i n e A1 i e f Bayp or t Baytown Bellaire Deer Park Friendswood Galena Park H i g h la n ds Houston Humble J a c i n t o City La P o r t e League C i t y Missouri City NASA Pas a de na Pearland Seabrook South Houston Sugar Land Webster West U n i v e r s i t y P l a c e HOUSTON - OVER-THE-ROAD All f i n a n c i a l i n s t i t u t i o n s w i t h i n t h e Houston O f f i c e t e r r i t o r y and n o t i n c l u d e d in t h e above zone. - 3 - CITIES WITHIN THE ELEVENTH FEDERAL RESERVE DISTRICT SEPARATED BY ZONE FOR CURRENCY AND COIN SHIPPING SERVICE EL PASO - ZONE 1 F i n a n c i a l i n s t i t u t i o n s l o c a t e d w i t h i n t h e c i t y o f El Pas o. EL PASO - ZONE 2 F i n a n c i a l i n s t i t u t i o n s l o c a t e d in t h e f o l l o w i n g New Mexico c i t i e s : A rtesia Carlsbad Hobbs L ov ington Roswell Ruidoso EL PASO - ZONE 3 F i n a n c i a l i n s t i t u t i o n s l o c a t e d in t h e f o l l o w i n g New Mexico c i t i e s : Alamogordo Cannon A. F. B. Clovis Melr os e Portales S a n t a Rosa Tucumcari EL PASO - ZONE 4 F i n a n c i a l i n s t i t u t i o n s l o c a t e d in t h e f o l l o w i n g New Mexico c i t i e s : Anthony Bayard Deming Hatch Las Cruces Lo rd sbu rg Playas S i l v e r City T r u t h o r Consequences EL PASO - ZONE 5 Financial i n s t i t u t i o n s l o c a t e d a t t h e White Sands M i s s l e Range, New Mexico. EL PASO - OVER-THE-ROAD All f i n a n c i a l i n s t i t u t i o n s w i t h i n t h e El Paso O f f i c e t e r r i t o r y and n ot i n c l u d e d in t h e above zones o r in New Mexico. SAN ANTONIO - ZONE 1 F i n a n c i a l i n s t i t u t i o n s l o c a t e d in t h e f o l l o w i n g c i t i e s , t own s, and m ilita ry establishments: Alamo H e i g h t s Ba l co ne s H e i g h t s Brooks A. F. B. Castle H ills China Grove E a s t K e l l y A.F.B. F t . Sam Houston H i l l Co. E s t a t e s Hollywood Park K e l l y A.F.B. Ki rby La ck land A.F.B. Leon V a l l e y Li ve Oak Olmos Park San Anton io Shavano Park T errell H ills Windcrest SAN ANTONIO - OVER-THE-ROAD All f i n a n c i a l i n s t i t u t i o n s w i t h i n t h e San An to nio O f f i c e t e r r i t o r y and n o t i n c l u d e d in t h e above z one . -4 - FEDERA^RESERV^pres^ele^^^^^l^fti For immediate release July 20, 1981 The Federal Reserve Board today proposed for public comment revised fee schedules for its transportation services in supplying currency and coin to the nation's banks and thrift institutions. The Board also proposed a policy for access to its cash processing services. Comment was requested by September 25, 1981. The Board acted under the Monetary Control Act of 1980, which requires pricing of Federal Reserve services, and after consideration of comment received on a proposal published in August 1980. The proposed schedules of fees for specific services are set forth in the attached tables. The fees would become effective at the beginning of 1982. The proposed fee schedules apply a mark-up of 16 percent, as a private Sector Adjustment Factor (PSAF), to the System's administrative costs in providing coin and currency transportation services. Transportation services The proposed revised fee schedule for armored car carrier service consists of a volume charge (a fee per delivery or deposit of a bag of currency or coin) and a charge per stop. The per stop charges appear in the fee schedule by zone. The Board proposed a $75 ceiling on the per stop charge for 1982, and proposed that this ceiling be retained for not longer than 1982 and 1983. It is to be reviewed, however, within a year, and efforts are to be made to reduce costs of services to remote points. Federal Reserve Banks will supply information on what delivery points are included in a zone. - 2- Registered mail service Proposed fees for shipment of currency and coin by mail include the cost of postage, registered mail fees and full insurance. The previously proposed charges for delivery to or pick-up from post offices have been eliminated, and there is no volume charge since fees reflect actual mail service. The Board proposed a ceiling of $37.50 for one-way mail service for 1982. Access policy The Board regards currency and coin processing (paying, receiving, and verifying coin and currency, and issuing, sorting, cancelling and destroying currency) as governmental activities, and processing is, therefore, not priced. As for access to these processing services, the Board proposed that by the end of 1983 all Federal Reserve offices will offer access, at a minimum, to all depository institutions seeking direct processing services on the following basis: — One office of a depository institution per municipality (subject to adjustment for special circumstances), or — One office per institution. The Board's proposal is set forth in detail in the attached notice. Attachments FEDERAL RESERVE SYSTEM (DOCKET NO. R-0324) FEE SCHEDULES FOR FEDERAL RESERVE BANK SERVICES AGENCY: Board o f Go vern or s o f t h e F e d e r a l Re s er v e System. ACTION: Pr oposed Fee S c h e d u l e s f o r Coin and C u r r en cy T r a n s p o r t a t i o n and p r o posed p o l i c y f o r a c c e s s t o F e d e r a l R e s er v e c a s h p r o c e s s i n g s e r v i c e s . SUMMARY: The Monetary C o n t r o l Act o f 1980 ( T i t l e I o f P u b l i c Law 96-221) r e q u i r e s t h a t f e e s be s e t f o r F e d e r a l R e s er v e Bank s e r v i c e s . The Board has p r e v i o u s l y a do p t e d a s e t o f p r i c i n g p r i n c i p l e s f o r Fe de ra l Re s er v e Bank s e r v i c e s and has e s t a b l i s h e d i m p l e m e n t a t i o n d a t e s on which f e e s f o r each o f t h e s e r v i c e s w i l l become e f f e c t i v e . The Board now s e ek s comment on i t s p ro po sed c o i n and c u r r e n c y t r a n s p o r t a t i o n f e e s c h e d u l e s and p ro p os e d p o l i c y f o r a c c e s s t o cash processing s e rv ic e s. DATE: I n t e r e s t e d p a r t i e s a r e i n v i t e d t o submit r e l e v a n t d a t a , comments. Comments must be r e c e i v e d by Septe mb er 25, 1981. views and o t h e r ADDRESS: Comments, which s h o u l d r e f e r t o Docket No. R-0324, s h o u l d be a d d r e s s e d t o Wi l l i a m W. W i l e s , S e c r e t a r y , Board of Governor s of t h e F e d e r a l R e s e r v e System, 2 0 t h S t r e e t and C o n s t i t u t i o n Avenue, N.W., Was hi ng to n, D.C. 20551, o r d e l i v e r e d t o room B-2223 between 8 : 4 5 a.m. and 5:15 p.m. Comments r e c e i v e d may be i n spactfs., i n room B-1122 bet ween 8 : 4 5 a.m. and 5:15 p.m. e x c e p t as p r o v i d e d in s e c t ' c n 2 6 1 . 6 ( a ) o f t h e B o a r d ' s R u le s Reg a rd i ng A v a i l a b i l i t y o f I n f o r m a t i o n (12 CFR 2 6 1 . 6 ( a ) ) . FOR FURTHER INFORMATION CONTACT: L o r i n S. Meeder, A s s o c i a t e D i r e c t o r f o r Fed e r a l Re s er ve Bank O p e r a t i o n s ( 2 0 2 / 4 5 2 - 2 7 3 8 ) ; Merphil S. Kondo, S e n i o r Economist ( 2 0 2 / 4 5 2 - 3 8 7 5 ) ; E a r l G. H a m i l t o n , Manager, S e r v i c e P r i c i n g ( 2 0 2 / 4 5 2 - 3 8 7 9 ) ; S t e v e n 0. App, Manager, Cash S e r v i c e s , ( 2 0 2 / 4 5 2 - 2 7 0 5 ) , G i l b e r t T. S c h w a r t z , A s s o c i a t e General Counsel ( 2 0 2 / 4 5 2 - 3 6 2 5 ) ; Lee S. Adams, S e n i o r Counsel ( 20 2 / 452-3623). SUPPLEMENTARY INFORMATION: Introduction The Monetary C o n t r o l Act o f 1980 r e q u i r e s t h a t f e e s be d e v e l o p e d f o r F e d e r a l R e s er v e Bank s e r v i c e s a c c o r d i n g t o a s e t o f p r i c i n g p r i n c i p l e s e s t a b l i s h e d by t h e Board. The Act p r o v i d e s t h a t t h e Board s h a l l b e g i n p u t t i n g i n t o e f f e c t a s c h e d u l e o f f e e s n o t l a t e r t h a n September 1, 1981, and t h a t s e r v i c e s c o v e r e d by t h e f e e s c h e d u l e a r e t o be made a v a i l a b l e t o a l l d e p o s i t o r y i n s t i tutions. The Board, i n a c c o r d a n c e w i t h t h e r e q u i r e m e n t s o f t h e A c t , p u b l i s h e d f o r comment p r op os ed p r i c i n g p r i n c i p l e s and f e e s c h e d u l e s f o r s e r v i c e s on August 28, 1980 (45 FR 58689) . The p e r i o d f o r p u b l i c comment e x p i r e d on O c t o b e r 3 1 , 1980. On December 30, 1980, a f t e r c o n s i d e r i n g t h e more t h a n 230 comments r e c e i v e d from t h e p u b l i c , t h e Board to ok t h e f o l l o w i n g a c t i o n s : a d o p t e d r e v i s e d p r i c i n g p r i n c i p l e s ; ap pr oved t h e f e e s c h e d u l e s f o r s e v e r a l s e r v i c e s , and e s t a b l i s h e d i m p l e m e n t a t i o n d a t e s on which f e e s c h e d u l e s f o r each s e r v i c e w i l l become e f f e c t i v e . The Board c o n c l u d e d t h a t commenters had r a i s e d s i g n i f i c a n t concerns with r e s p e c t to th e cash t r a n s p o r t a t i o n fee schedules p ropos ed i n August 1980 and announced t h a t : (1) t h e p r i c i n g o f c u r r e n c y and c o i n t r a n s p o r t a t i o n s e r v i c e s would be r e v i e w e d ; (2) t h e p u b l i c would be gi ve n t h e o p p o r t u n i t y t o comment on a r e v i s e d f e e s c h e d u l e ; and ( 3) t h e i m p l e m e n t a t i o n o f p r i c i n g o f c u r r e n c y and c o i n t r a n s p o r t a t i o n and c o i n wrapping s e r v i c e s would be d e l a y e d u n t i l J a n u a r y 1982. Comments on t h e August 1980 pr opos ed f e e schedule f o r coin and c u r r e n c y t r a n s p o r t a t i o n i n c l u d e d s t a t e m e n t s t h a t no c h a r g e s h o u l d be imposed f o r t h i s s e r v i c e and s u g g e s t i o n s f o r r e v i s i o n o f t h e f e e s t r u c t u r e t o r e d u c e t h e d i s p a r i t y in f e e s . A f t e r r e c o n s i d e r a t i o n t h e Board c o n c l u de d t h a t c a s h t r a n s p o r t a t i o n i s a s e r v i c e t h a t must be p r i c e d u nd e r t h e p r o v i s i o n s o f t h e Monetary C on tr o l Act. The Board c o n t i n u e s t o r e g a r d c u r r e n c y and c o i n p r o c e s s i n g ( p a y i n g , r e c e i v i n g and v e r i f y i n g b oth c o i n and c u r r e n c y , and i s s u i n g , p r o c e s s i n g , c a n c e l ing and d e s t r o y i n g c u r r e n c y ) a s gover nmental f u n c t i o n s and a c c o r d i n g l y has not proposed f e e s f o r t h e s e f u n c t i o n s . However, t h e Board has pr oposed f o r comment a p o l i c y r e g a r d i n g a c c e s s t o t h e n o n p r i c e d ca s h p r o c e s s i n g s e r v i c e s . No s i g n i f i c a n t p u b l i c comment was r e c e i v e d on t h e c o i n wrapping f e e s c h e d u l e p u b l i s h e d i n August 1980. The f e e s c h e d u l e f o r t h i s s e r v i c e w i l l be up da t ed t o r e f l e c t e x p e c t e d 1982 c o s t s and w i l l be p u b l i s h e d l a t e r t h i s y e a r f o r i m p l e m e n t a t i o n i n J a n u a r y 1982. 1/ Pr oposed 1982 Fee S ch ed ul e The Monetary C o n t r o l Act o f 1980 r e q u i r e s t h a t " o v e r t h e long run f e e s s h a l l be e s t a b l i s h e d on t h e b a s i s o f a l l d i r e c t and i n d i r e c t c o s t s a c t u a l l y i n c u r r e d i n p r o v i d i n g t h e F e d er al Re s er v e s e r v i c e s p r i c e d . . . e x c e p t t h a t t h e p r i c i n g p r i n c i p l e s s h a l l g i v e due r e g a r d t o c o m p e t i t i v e f a c t o r s and t h e p r o v i s i o n o f an a d e q u a t e l e v e l o f such s e r v i c e s n a t i o n w i d e . " The Act a l s o r e q u i r e s t h a t f e e s f o r Fe de ra l R e s er v e s e r v i c e s t a k e i n t o a c c o u n t " t h e t a x e s t h a t would have been p ai d and t h e r e t u r n on c a p i t a l t h a t would have been p r o v i d e d had t h e s e r v i c e s been f u r n i s h e d by a p r i v a t e b u s i n e s s f i r m . " Th is markup i s r e f e r r e d t o as t h e p r i v a t e s e c t o r a d j u s t m e n t f a c t o r (PSAF). The p rop os ed f e e s f o r armored c a r r i e r s e r v i c e a r e bas ed on t h e e s t i mated f u l l 1982 c o s t s o f p r o v i d i n g t h e s e r v i c e and e x i s t i n g us age p a t t e r n s . A p r i v a t e s e c t o r a d j u s t m e n t f a c t o r o f 16 p e r c e n t has been a p p l i e d t o t h e a d m i n i s t r a t i v e c o s t s o f ca sh t r a n s p o r t a t i o n i n c u r r e d by t h e Re s er ve Banks b u t not t o payments t o armored c a r r i e r s , s i n c e t h e c o s t o f c a p i t a l and t a x e s i s a l r e a d y i n c l u d e d i n t h e S y s t e m ' s payments t o p r i v a t e c a r r i e r s . V Some Re s er v e Banks a r e c o n s i d e r i n g c o n t r a c t u a l a r r a n g e m e n t s w i t h p r i v a t e s e c t o r s u p p l i e r s f o r p r o v i s i o n o f wrapped c o i n , s i m i l a r t o t h e a r r a n g e m e n t s R e s er v e Banks have w i t h armored c a r r i e r s f o r c a s h t r a n s p o r t a t i o n . -3As i n t h e August 1980 p r o p o s a l , t h e r e v i s e d f e e s c h e d u l e f o r arrnored c a r r i e r s e r v i c e has two e l e m e n t s : a volume c h a r g e and a p e r s t o p c h a r g e . ^ / In t h e c u r r e n t p r o p o s a l , t h e volume c h a r g e i s $ 0. 50 n a t i o n w i d e p e r bag of c u r r e n c y o r c o i n f o r b o t h d e l i v e r i e s and d e p o s i t s . A s i n g l e u n if o r m bag c h a rg e s i m p l i f i e s t h e f e e s c h e d u l e when c o n t r a s t e d w i t h t h e B o a r d ' s August pr opos al which p r o v id e d f o r s e p a r a t e c h a r g e s p e r bag o f c o i n and p e r b u n d l e o f c u r r e n c y a t each F e d e r a l Re s er v e o f f i c e . Thi s appr oac h a l s o p r o v i d e s f o r more a p p r o p r i a t e a l l o c a t i o n of c o s t s between h ig h volume and low volume e n d p o i n t s . The r e v i s e d s c h e d u l e o f p e r s t o p c h a r g e s shows f e e s by zones s e r v e d by e ac h F e d e r a l Re s er ve o f f i c e . These zones now i n c l u d e c i t y and s u b u rb an end p o i n t s , and a r e n o t c o m pa ra bl e t o t h e numbered zones p u b l i s h e d i n August 1980, which were r e l a t e d p r i n c i p a l l y t o d i s t a n c e t o o v e r - t h e - r o a d e n d p o i n t s . The r e v i s e d zone i d e n t i f i c a t i o n s r e f l e c t R e s er v e Bank g r o u p i n g s o f e n d p o i n t s t h a t have a common p ropos ed p e r s t o p c h a r g e , and a r e i n t e n d e d t o improve t h e a l l o c a t i o n o f c o s t s among e n d p o i n t s ; however, d i s p a r i t i e s among f e e s f o r e n d p o i n t s l o c a t e d e q u i d i s t a n t from a Fe de ra l Res er ve o f f i c e a r e not e l i m i n a t e d c o m p l e t e l y . S i n c e armored c a r r i e r s e r v i c e c o s t s a r e not s imp l y a f u n c t i o n o f d i s t a n c e , but a l s o r e f l e c t t h e f r e q u e n c y o f s t o p s al ong a r o u t e and t h e e x t e n t o f c o m p e t i t i o n i n t h e a r e a s s e r v e d , such d i s p a r i t i e s may be e x p e c t e d t o c o n t i n u e . A c e i l i n g o f $75 i s p ro po sed on t h e p e r - s t o p p o r t i o n o f t h e cha rge for 1982; a c e i l i n g o f $32 p e r s t o p was pr op os ed in August 1980 when t h e volume c h a r g e a cc o u n t e d f o r a l a r g e r p r o p o r t i o n o f armored c a r r i e r s e r v i c e r eve nue . (The s h a r e o f armored c a r r i e r s e r v i c e r ev e n u e a s s o c i a t e d w i t h volume c h a r g e s i s r edu ce d from a p p r o x i m a t e l y 50 p e r c e n t t o a bo u t 20 p e r c e n t . ) A $75 c e i l i n g i s p r o j e c t e d t o r e s u l t i n c o s t s e x c e e d i n g r e v e n u e s by a p p r o x i m a t e l y $ 2 . 8 m i l l i o n ( a b o u t 7 . 3 p e r c e n t o f 1982 armored c a r r i e r s e r v i c e c o s t s ) . A c e i l i n g i s pro posed f o r a p e r i o d no l o n g e r t h a n two y e a r s (1982 and 1983). The c e i l i n g would be r evi ewe d by t h e Board a f t e r one y e a r and may well be a d j u s t e d . By t h e end of t h e t w o - y e a r p e r i o d , t h e System i n t e n d s t o r e c o v e r a l l c o s t s o f armored c a r r i e r s e r v i c e w i t h i n t h e 48 c o n t i g u o u s S t a t e s ^ / s u b j e c t t o t h e F e d e r a l R e s e r v e ' s r e s p o n s i b i l i t y t o p r o v i d e a minimum l e v e l of s e r v i c e n a t i o n w i d e . During t h e twoy e a r i n t e r i m , a v a r i e t y of methods o f r e d u c i n g t r a n s p o r t a t i o n c o s t s t o h i g h - c o s t l o c a t i o n s w i l l be e x p l o r e d , such as encouragement o f i n c r e a s e d c o m p e t i t i o n , e s t a b l i s h m e n t o f ca s h d e p o t s and s u p p o r t f o r c u r r e n c y e xc ha nges . S e p a r a t e f e e s w i l l be e s t a b l i s h e d f o r i n s t i t u t i o n s w i t h s p e c i a l i z e d h i g h volume a r r a n g e m e n t s , such as d i r e c t s h ip me n ts from t h e Bureau o f Engr avi ng and P r i n t i n g o r armored c a r r i e r s e r v i c e t o a l a r g e volume e n d p o i n t w i t h ci r cum stances of d i f f i c u l t access. Reduced t r a n s p o r t a t i o n c h a r g e s may be a v a i l a b l e f o r d e p o s i t o r y i n s t i t u t i o n s t h a t d e p o s i t c u r r e n c y s o r t e d by q u a l i t y o r s u i t a b l y packaged f o r hi gh s peed p r o c e s s i n g , o r t h a t a c c e p t c o n t a i n e r i z e d sh ipme nt s ( i . e . , t r u n k s o r p a l l e t s ) where t h e s i g n i f i c a n t r e d u c t i o n i n Re s er v e Bank p r o c e s s in g c o s ts j u s t i f i e s a r e d u c tio n in t r a n s p o r t a t i o n charges. Y) 2J The f e e s t r u c t u r e s f o r some r o u t e s i n t h e C l e v e l a n d , S t . L o u i s , and D a l l a s D i s t r i c t s i n c l u d e c h a r g e s ba s ed on m i l e a g e o r v a l u e . These f e e s t r u c t u r e s r e f l e c t t a r i f f r a t e s in th o se are a s. The same $75 c e i l i n g would a p p l y i n 1982 t o a r e a s in t h e n o n c o nt i g u ou s Un it e d S t a t e s , such a s A l a s k a , H a wa i i , Guam, and P u e r t o Rico. -4The Federal Res erv e Banks a l s o a c c e p t and d e l i v e r c o i n and c u r r e n c y s h i pp ed by r e g i s t e r e d m a i l . This s e r v ic e is provided g e n e r a lly t o d e p o sito ry i n s t i t u t i o n s a t remote l o c a t i o n s w i t h o u t armored c a r r i e r s e r v i c e a v a i l a b l e routinely. For e n d p o i n t s s e r v e d by r e g i s t e r e d m a i l , c h a r g e s w i l l be ba s ed on a c t u a l Res er ve Bank e xp e n s e s i n c u r r e d f o r p o s t a g e and f u l l i n s u r a n c e . A ceiling o f $ 3 7. 50 would be e s t a b l i s h e d on t h e 1982 c h a r g e f o r one-way mail d e l i v e r y e i t h e r t o o r from a R e s er v e Bank. This f i g u r e i s o n e - h a lf t h e c e i l i n g f o r armored c a r r i e r s t o p s , s i n c e t h e armored c a r r i e r b o t h d e l i v e r s ca s h o r d e r s and p i c k s up e x c e s s c o i n and c u r r e n c y i n t h e same t r i p . The c e i l i n g on r e g i s t e r e d mail c h a r g e s w i l l be e v a l u a t e d a f t e r one y e a r . Access P o l i c y In c o n n e c t i o n w i t h t h e r e v i s e d f e e s c h e d u l e f o r cas h t r a n s p o r t a t i o n s e r v i c e s , t h e f o l l o w i n g p o l i c y r e g a r d i n g a c c e s s t o t h e F e d e r a l R e s e r v e ' s c oi n and c u r r e n c y p r o c e s s i n g s e r v i c e s i s pr op os ed: By t h e end o f 1983, a l l a t minimum, F e d er al Res er ve o f f i c e s w i l l o f f e r access to, o one o f f i c e o f a d e p o s i t o r y i n s t i t u t i o n p e r m u n i c i p a l i t y , s u b j e c t t o a d j u s t m e n t where s p e c i a l c i r c u m s t a n c e s ( s uch as t h e s i z e o f t h e muni c i p a l i t y ) r e q u i r e a modified p o lic y ; or o one o f f i c e p e r t o r y served. institution if that suits the structure The p o l i c y pr opos ed p r o v i d e s , a f t e r a t r a n s i t i o n minimum a c c e s s n a t i o n w i d e t o e v e r y d e p o s i t o r y i n s t i t u t i o n c u r r e n c y d i r e c t l y from t h e F e d e r a l R es e r v e . T h i s minimum t o F e d e r a l Res er ve ca s h p r o c e s s i n g s e r v i c e a p p l i e s t o a l l t i o n s i n d e p e n d e n t o f t h e method o f d e l i v e r y — v i a F e d e r a l r i e r , v i a r e g i s t e r e d mail o r a t t h e F e d e r a l R e s er v e dock. in t h e t e r r i p e r i o d , f o r u n if o rm , t h a t s e e k s c o i n and standa rd f o r access depository i n s t i t u Re s er v e armored c a r The F ed er al Re s er v e i n t e n d s t o o f f e r a c c e s s t o c a s h s e r v i c e s on t h e same t e r m s (such as f r e q u e n c y , q u a l i t y and o p e r a t i n g r e q u i r e m e n t s ) t o both e x i s t i n g and p r o s p e c t i v e c u s t o m e r s . Few d i f f i c u l t i e s a r e f o r e s e e n i n p r o v i d i n g u ni f o r m a c c e s s t o r e g i s t e r e d mail s e r v i c e and t o F e d e r a l R e s e r v e docks f o r p i c k u p s and d e l i v e r i e s o f c a s h by d e p o s i t o r y i n s t i t u t i o n s t h a t a r r a n g e t h e i r own t r a n s p o r t a t i o n . D e p o s i t o r y i n s t i t u t i o n s may p i c k up and d e l i v e r c u r r e n c y and c o i n w i t h o u t c h a r g e a t F e d e r a l Res erv e d o c k s , s i n c e t h e p r o v i s i o n o f c o i n and c u r r e n c y i t s e l f i s a r e s p o n s i b i l i t y o f t h e c e n t r a l bank. However, Re s er ve Banks may impose r e a s o n a b l e r e s t r i c t i o n s on s c h e d u l i n g o f p i c k u p s and d e l i v e r i e s a t t h e docks t o f a c i l i t a t e n o n d i s c r i m i n a t o r y a c c e s s t o F e d e r a l R e s e r v e cash processing services. Because t h e c o n t r a c t u a l a r r a n g e m e n t s between t h e F e d e r a l R e s e r v e and armored c a r r i e r f i r m s r e s t r i c t t h e l a t i t u d e f o r immedi ate accommodation by t h e System t o changes i n r e q u e s t s f o r armored c a r r i e r s e r v i c e , and i n view o f t h e s h o r t - t e r m c o n s t r a i n t s o f dock c a p a c i t y and p r o c e s s i n g e qu i p m e n t , t h e proposed a c c e s s p o l i c y p r o v i d e s f o r an i n t e r i m a d j u s t m e n t p e r i o d . On t h e e f f e c t i v e d a t e o f c a s h t r a n s p o r t a t i o n p r i c i n g , R e s er v e Banks w i l l e x t e n d a c c e s s t o e x i s t i n g -5l e v e l s o f c a s h s e r v i c e t o new c u s t o m e r s t o t h e e x t e n t f e a s i b l e . Due t o t h e u n c e r t a i n t i e s s u r r o u n d i n g t h e r e s p o n s e of armored c a r r i e r f i r m s and d e p o s i t o r y i n s t i t u t i o n s t o ca s h t r a n s p o r t a t i o n p r i c i n g , Re s er v e Banks w i l l c o n t i n u e t o impose r e a s o n a b l e l i m i t a t i o n s on a l l u s e r s r e g a r d i n g t h e f r e q u e n c y o f s e r v i c e , 4./ t h e number o f o f f i c e s s e r v e d and t h e s i z e o f o r d e r s / d e p o s i t s . The p ur po se of such l i m i t a t i o n s i s t o a c h i e v e an o r d e r l y t r a n s i t i o n t o u ni fo r m d i r e c t a c c e s s t o c o i n and c u r r e n c y f o r b o t h t h e p r i v a t e s e c t o r and t h e Res er ve Banks. During t h e t r a n s i t i o n p e r i o d , F e d e r a l R e s er v e o f f i c e s may r e d u c e a c c e s s t o s e r v i c e t o e x i s t i n g c u s t o m e r s as s e r v i c e t o new c u s t o m e r s i s accommodated. Re se rv e Banks may a l s o a sk d e p o s i t o r y i n s t i t u t i o n s t o e n t e r i n t o a gr e e m e nt s f o r r e g u l a r l y s c h e d u l e d armored c a r r i e r s e r v i c e o v e r a p e r i o d o f t i m e , w i t h advanc e n o t i c e f o r t e r m i n a t i o n o f t h e a g r e e me nt . The p ropos ed a c c e s s p o l i c y p e r m i t s a F e d e r a l Re s er v e o f f i c e t o s e r v e a d d i t i o n a l o f f i c e s o f d e p o s i t o r y i n s t i t u t i o n s where f e a s i b l e , b u t o nly i f g r e a t e r a c c e s s t o c a s h p r o c e s s i n g s e r v i c e i s o f f e r e d on a n o n d i s c r i m i n a t o r y b a s i s t o a l l d e p o s i t o r y i n s t i t u t i o n s v i a a l l d e l i v e r y methods. At t h e same t i m e , t h e p ro po s ed a c c e s s p o l i c y r e c o g n i z e s t h e g e o g r a p h i c and s t r u c t u r a l d i f f e r e n c e s among t e r r i t o r i e s s e r v e d such a s t e r r a i n , s i z e o f p o l i t i c a l j u r i s d i c t i o n s and e x t e n t o f b r a n c h i n g . The pr op os ed 1982 f e e s c h e d u l e s f o r cas h t r a n s p o r t a t i o n a r e shown i n t h e Appendix. D e t a i l e d i n f o r m a t i o n on t h e e n d p o i n t s c o n t a i n e d w i t h i n each zone w i l l be made a v a i l a b l e by t h e F e d e r a l R e s e r v e Banks. By o r d e r J u l y 17, 1981. of t h e Board o f G over nor s o f t h e F e d e r a l R e s e r v e System, 4 / G e n e r a l l y , armored c a r r i e r s e r v i c e can be a r r a n g e d on a weekly o r a l t e r n a t e week b a s i s . (signed) William W. Wiles W i ll i am W. Wiles S e c r e t a r y o f t h e Board [SEAL] APPENDIX PROPOSED FEE SCHEDULE ARMORED CARRIER CASH TRANSPORTATION SERVICE E f f e c t i v e Ja n u a ry , 1982 VOLUME CHARGE: $0.50 per bag f o r each bag o f coin and cu rren c y . v e r ie s and d e p o s its of cash. PER STOP CHARGE: TOTAL CHARGE: NOTE: The f e e w ill be a s s e s s e d f o r both d e l i Shown below. For a s in g l e in c id en c e of armored c a r r i e r s e r v i c e , th e t o t a l charge w i l l be th e sum o f th e volume charge and per s to p charge. The minimum t o t a l charge w ill be $10 per in c id en c e f o r endpoints covered by th e stop/volume charge s t r u c t u r e . There a r e ex c ep tio n s t o th e $0.50 p er bag charge In th e S t. Louis and D alla s D i s t r i c t s , and a t th e P itts b u r g h and N a sh v ille o f f i c e s , where t a r i f f r a t e s apply. CONTACT YOUR FEDERAL RESERVE OFFICE FOR INFORMATION ABOUT THE INSTITUTIONS SERVED WITHIN EACH ZONE. ARMORED CARRIER PER STOP CHARGE in d o l l a r s FEDERAL RESERVE OFFICE BOSTON ZONES 1-5 ZONE 6 CHARLOTTE 29 107* 40 62 90* 53 NEW YORK ZONES 1-5 ZONES 6-10 ZONES 11-14 35 17 35 34 30 43 29 63 24 63 37 28 42 30 ZONES 1-5 ZONES 6-7 27 25 29 31 33 35 ZONES 1-4 10 29 43 18 37 51 22 33 69 10 30 136* 25 44 29 46 15 41 40 40 37 64 84* 24 56 31 47 25 65 61 37 27 118* 47 25 10 34 41 47 19 49 56 63 *• 25 30 12 30 24 34 53 16 30 40 50 ** 129* ** 165* 29 201* 56 238* 93* *• 132* 23 161* 45 74 103* 28 ZONES 1-5 67 ZONES 1-2 ZONES 1-3 MIAMI 16 21 19 72 27 19 18 24 47 19 PITTSBURGH COMMON CARRIER ZONES 1-4 CHICAGO ZONES 1-5 ZONES 6-9 28 21 18 31 16 30 34 43 61 51 20 36 21 RICHMOND ZONES 1-5 1 80* JACKSONVILLE PITTSBURGH ZONES 1-5 ZONES 6-10 ZONES 11-13 48 BIRMINGHAM CINCINNATI ZONES 1-5 ZONES 6-10 40 NASHVILLE CLEVELAND ZONES 1-5 ZONES 6-10 34 NEW ORLEANS ZONES 1-3 ZONES 1-5 ZONES 6-7 14 ATLANTA PHILADELPHIA ZONES 1-5 ZONES 6-10 ZONES 11-14 ZONES 1-4 BALTIMORE BUFFALO ZONES 1-5 ZONE 6 ARMORED CARRIER PER STOP CHARGE in d o l l a r s FEDERAL RESERVE OFFICE DETROIT 22 22 22 41 54 ZONES 1-5 ZONES 6-7 - ARMORED CARRIER PER STOP CHARGE in d o l l a r s FEDERAL RESERVE OFFICE 2- ARMORED CARRIER PER STOP CHARGE in d o l l a r s FEDERAL RESERVE OFFICE ST. LOUIS dallas! / S pecial t a r i f f ratess app y. C<i n t a c t your rede r a l Reserve o f f i c i f o r nfomui t i o n . i LITTLE ROCK ZONES 1-2 8 26 HOUSTON]/ S pecial t a r i f f rati ;s app y. C<j n t a c t your e r a l Reserve o f f i c i » f o r nfomui t i o n . ed- ZONE 1 16 MEMPHIS EL PASOl/ S p ecial t a r i f f r a t e s app y. Contact your Fede r a l Reserve o f f i c i ; f o r nfomui t i o n . LOUISVILLE ZONES 1-5 ZONES 1-5 6 69 72 73 63 ** 9 12 11 11 76* 9 24 23 14 16 ** 14 12 24 18 17 20 93* 13 17 12 171* 16 16 12 63 15 14 20 29 ** 33 20 28 8 65 13 47 ** 43 28 12 34 51 12 45 ** 10 22 23 34 12 13 35 8 SAN ANTONIOi/ 9 9 27 28 225* ZONE 1 6 SAN FRANCISCO MINNEAPOLIS ZONES ZONES ZONES ZONE 1-5 6-10 11-15 16 14 42 75 107* 17 48 81* 23 55 87* 29 62 93* 35 68 100* HELENA LOS ANGELES ZONES 1-5 ZONES 6-10 10 71 0 88* 17 60 7 50 40 18 102* 117* 55 133* KANSAS CITY ZONES 1-5 ZONES 6-7 66 78* 73 1-5 6-10 11-15 16-20 21-24 0 10 65 30 30 4 29 25 45 60 65 98* 10 30 50 40 60 60 77* 113* 64 50 60 91* OKLAHOMA CITY ZONES ZONES ZONES ZONES ZONES ZONES ZONES ZONES 1-5 6-10 11-15 16-20 SALT LAKE CITY ZONES 1-5 ZONES 6-8 DENVER ZONES ZONES ZONES ZONES ZONES ZONES 1-5 ZONES 6-10 ZONE 11 1-5 6-10 11-15 16-18 PORTLAND ZONES 1-5 ZONES 6-8 SEATTLE 1 10 15 50 10 23 25 86* 6 39 26 69 24 47 80* 9 65 64 6 34 28 41 47 42 34 46 ZONES 1-5 ZONES 6-9 OMAHA ZONES 1-5 ZONES 6-8 * ** y The proposed maximum 1982 p e r sto p charge i s $75, nationw ide. Thus, th e p e r sto p fe e charged would be $75 in s t e a d of th e f i g u r e shown, which i s based on f u l l c o s t o f s e r v ic e t o en d p o in ts in t h a t zone. S p e c i f i c f e e s w ill apply t o each i n s t i t u t i o n , and a s i n g l e a l l - i n c l u s i v e f e e may be charged ( in s te a d o f s e p a r a te p er s to p and bag c h a r g e s ) . In Texas, Oklahoma and L o u is ia n a , armored c a r r i e r s e r v i c e s u b je c t t o t a r i f f r a t e s i s o f f e r e d t o overt h e - r o a d en d p o in ts t h a t a r e not in c lu d ed among th e zones l i s t e d . Contact y o u r lo c a l Federal Reserve o f f i c e f o r more in fo rm a tio n . -3- PROPOSED FEE SCHEDULE CASH TRANSPORTATION BY REGISTERED MAIL E f f e c t i v e J a n u a r y , 1982 The f e e f o r cas h d e l i v e r y t o o r from a F e d er al Re s er ve o f f i c e v i a r e g i s t e r e d mail w i l l be t h e a c t u a l c o s t o f p o s t a g e and i n s u r a n c e , up t o a maximum. The maximum c h a r g e f o r r e g i s t e r e d mail d e l i v e r y , one way e i t h e r t o o r from a F e d e r a l Res er ve o f f i c e , wi l l be $ 3 7. 50 p e r s hi pme nt .
@FedFRASER