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Fe d e r a l

Reserve

ban k

of

Dallas

DALLAS, TEXAS

July 17, 1961
To the Member Banks o f the
Eleventh Federal Reserve District:
Enclosed is a copy o f our Bulletin No. 5, relating to currency and coin
services, revised as o f July 17, 1961, and superseding Bulletin No. 5, dated
December 8, 1958.
Paragraphs 25, 26, and 27 have been revised in accordance with recent
instructions from the Treasury Department pertaining to the redemption of
mutilated currency. The instructions relative to the redemption o f fragments
o f less than three-fifths have been simplified, in that a certificate o f character
from a bank officer no longer needs to accompany the affidavit from the owner
o f the fragments. Also, Treasury Department affidavit forms are available for
use by owners in supplying the in form a tion required by the T reasu ry
Department
Paragraph 33 has been expanded to furnish as complete information as
possible in regard to instructions o f the Treasury Department relative to the
handling o f mutilated coin.
Paragraph 37 has been revised to eliminate reference to payments o f
altered currency by a secret service agent at the unaltered face value o f the
currency. Payments are no longer made for altered currency.
Information concerning the exemption in T reasu ry D epartm ent G old
Regulations o f gold coins o f recognized special value to collectors o f rare and
unusual coin has been added to Paragraph 39.
A new paragraph, number 40, regarding the return o f money sacks has
been added.
Other changes in the bulletin include the addition o f smaller standard units
in Paragraph 9 for $50 and $100 bills, and minor editorial revisions o f a few
paragraphs.
Please bring this bulletin to the attention o f personnel in you r bank
concerned with the ordering and shipping o f money. Preparation o f shipments
to this bank, and o f orders for shipments from us, in accordance with the terms
o f the bulletin will facilitate the processing o f the transactions.
The revised copy should be substituted in your ring binder for Bulletin
No. 5, dated December 8, 1958. Additional copies will be furnished on request.
Receipt o f this bulletin should be acknowledged by completing and return­
ing the enclosed 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)

FEDERAL RESERVE BANK
OF DALLAS

BULLETIN No. 5
Effective July 17, 1961
(Superseding Bulletin No. 5,
dated December 8, 1958)

CURRENCY AND COIN

T o the Member Banks o f the
Eleventh Federal Reserve District:
This bulletin describes the cash services o f the Federal Reserve Bank
o f Dallas. Any bank shipping or causing or ordering shipments o f currency
or coin to or from this bank or any branch thereof shall by such action be
deemed to have agreed to the terms and conditions o f this bulletin with respect
to such shipments. For purposes o f this bulletin and unless stated otherwise,
all references to the Federal Reserve Bank o f Dallas or “ this bank,” shall
include its branches at El Paso, Houston, and San Antonio.
SCOPE OF SERVICE

1. A ll forms o f United States currency and coin will be received for credit,
redemption, exchange, or replacement, subject to conditions stated herein and
applicable Federal laws and regulations. This bank will supply all available
current denominations o f currency and coin subject to the rules o f this bank
and regulations o f the Treasury Department. The amount o f new currency
and coin available will be governed by the amount of fit currency or circulated
coin on hand.
2. The Federal Reserve Bank o f Dallas will absorb the cost o f postage and
expressage and will assume all risks, except those herein specifically excluded,
incident to shipments o f United States currency and coin to and from member
banks when such shipments are ordered from this bank or are prepared and
forwarded to this bank in accordance with the provisions o f this bulletin.
RISKS INCIDENT TO SHIPMENTS TO AND FROM BANKS

Assumption o f Risk
3. Any member bank shipping or causing or o rd erin g shipments o f
currency or coin to, from or for the account o f this bank or any branch thereof
shall by such action be deemed to have agreed to the following terms and
conditions with respect to such shipments:
4. Subject to the terms o f this bulletin, the Federal Reserve Bank of
Dallas will assume all risks incident to the transportation o f such shipments of
currency or coin (a ) by registered mail and (b ) by such other means o f trans­
portation as may be selected by this bank, from the time such shipments leave
the office o f the sending bank until delivered at the office of the addressee bank,
except as enumerated below; provided, however, that the Federal Reserve
Bank o f Dallas will not assume any risk for shipments sent by Railway Express
Agency, Inc., while such shipments are in the custody o f the Railway Express
Agency, Inc., as the rate charged by the express company on such shipments
is based on the declared value and the ordinary risks of loss are assumed by the
express company under its shipping contract:

— 2—

BULLETIN No. 5

Exceptions
5. The Federal Reserve Bank o f Dallas will not assume any risk o f loss
in any o f the following circumstances, and any loss thereunder is agreed and
understood to be assumed by the bank shipping or causing or ordering such
shipment:
(1 ) A n y loss in excess o f $2,000,000 on all shipments by any one bank­
ing office to this bank on any one day.
(2 ) Any loss resulting from hostile or warlike action by any military,
naval, air forces, or agents o f domestic, foreign or revolutionary
governm ents, pow ers, or forces, w hether or not war has been
formally declared and including defending against an actual or
expected attack; or any loss caused by any weapon o f war employing
atomic fission or radioactive force whether in time o f peace or war.
(3 ) A ny loss resulting from any dishonest, fraudulent, or criminal act
o f an employee o f any bank, other than this bank, shipping, causing,
ordering or receiving the shipment.
(4 ) A ny loss to the extent recoverable from any insurance, surety, or
indemnity company pursuant to purchased insurance, surety or
indemnity (including bankers’ blanket bond), whether primary or
excess, carried by or maintained by any person other than this bank.
(5 ) A n y loss on any shipment by any bank other than this bank not made
in conform ity with the provisions o f this bulletin.
Preparation o f Shipments
6. A n y member bank shipping or causing shipments o f currency or coin
to or for the account o f this bank or any branch thereof shall by such action be
deemed to have agreed that all such shipments shall be prepared and verified by
one or more responsible employees o f the sender and that the sealed package
shall be in charge o f a responsible person until deposited and registered at the
post office, or, if the shipment is by express or armored car, until receipted for by
the express office or armored car service, and that the contents o f all packages
shall be enclosed in a strong wrapper, envelope, or cloth or canvas bag, well
secured, and sealed in a manner acceptable to the post office, express office, or
armored car service at the place o f mailing or dispatch.
UNNECESSARY DEPOSITS AND WITHDRAWALS

7. In view o f the heavy cost o f maintaining this service, the cooperation
o f member banks is requested to avoid unnecessary shipments. It is suggested
that accumulations o f fit currency in excess o f requirements be made available
to other banks in the same community and that needed currency be obtained
from other banks in the community if fit currency is conveniently available at
such banks. Member banks are also expected to anticipate their requirements
and whenever possible to refrain from shipping this bank currency and coin
fit for further circulation if money o f the same denominations is likely to be
needed in the near future. The interchange o f currency and coin by local banks
and the exercise o f care in anticipating requirements will reduce to a minimum
the shipments to and from the Federal Reserve Bank o f Dallas, and your
cooperation will be greatly appreciated.

—3

BULLETIN No. 5

SHIPMENTS OF CURRENCY OR COIN BY THE FEDERAL RESERVE
BANK OF DALLAS

Ordering Currency and Coin
8. Member banks should order currency and coin using form Cash 15,
and all such orders should bear an authorized signature. Supplies o f this form
are furnished upon request. I f the form is not used a letter should be substituted.
The letter should contain definite amounts and kinds o f currency and coin
desired, authority to charge the reserve account of the ordering bank, and should
bear an authorized signature. Orders should not be written on cards, advice
tickets, or remittance forms and should not be included in letters pertaining to
other transactions. Compliance with this request will expedite shipments.
Standard Units o f Currency and Coin Shipped by this Bank
9. In anticipating the needs o f banks served by the Federal Reserve Bank
and in order to assure prompt sendee in supplying the demand for cash, cur­
rency is strapped in standard packages and coin is sacked in standard bags.
Orders for currency or coin should be for the following standard units or
multiples thereof.
Currency

Coin

$100
Ones __ ________________
$200
T w o s ___________________
$500
Fives __ ............... ..............
Tens ______ _______ ____ $1,000
Twenties ________________ $2,000
Fifties ....$1,000, $2,000 & $5,000
Hundreds
$1,000, $2,000, $5,000, $10,000

Cents ____ ....
$50 - $100
$200
N ickels___.....
D im es____ ....
$ 500-$1,000
Quarters .......
$500 -$1,000
H a lv e s ___ ....
$500-$1,000
D olla rs..... .... $ 1 0 0 -$ 5 0 0 -$ 1 ,0 0 0

Closing Hours fo r Shipments
10. The vaults o f the F ederal R eserve Bank o f Dallas, including its
branches, are closed on Saturdays. Member banks are urged to keep this in
mind in anticipating their cash requirements. Requests for shipments o f cur­
rency and coin will be acted upon promptly on the day o f receipt if received
not later than 2 :00 p.m. Banks placing orders by mail should assure themselves
that such orders will reach this bank in time for dispatching the shipment for
arrival on the expected date.
Emergency Requests
11. Emergency orders may be made by telegram in A .B .A . code with proper
test word, or by telephone, charges collect. Telephoned or telegraphed orders
must be confirmed immediately by letter or copy o f the telegram, bearing an
authorized signature.
Method o f Shipment
12. Shipments o f currency or coin from this bank to member banks will
be made by registered mail, express, or by such other means o f transportation
as may be selected by this bank.

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BULLETIN No. 5

Postal Limitations
13. Postal regulations have imposed certain limitations and restrictions
on the shipment o f money to certain towns where railway postal service is not
provided. Banks affected have been apprised o f these limitations and restrictions
and their cooperation in this respect is solicited in placing orders with this bank.
14. Banks also are requested, as a practical measure, to place orders for
currency and coin so that they can be dispatched for arrival and delivery on
a business day. Postal authorities have ruled it unwise to permit dispatch o f
money which would be held over at the receiving post office during Sunday or
a holiday.
Shipments to Others at Request o f Member Banks
15. A t the request o f a member bank and at its expense and risk, shipments
o f currency and coin will be made to its correspondent banks by registered mail
or armored car carrier, the means o f shipment to be designated by the member
bank. W hen shipments are made by an armored car carrier, the responsibility
o f this bank will terminate upon delivery o f the money to the carrier on this
bank’s premises and all transportation arrangements, charges and insurance
shall be negotiated directly with the carrier by the member bank. Unless in­
structed to the contrary, shipments to correspondent banks at the request o f
a member bank will be made by registered mail and insured under this bank’s
registered mail insurance policies for the account o f the member bank and the
costs o f such transportation and insurance charged to the member bank’s
account.
16. The registered mail insurance policies referred to above afford pro­
tection against loss from the time o f acceptance by the messenger or carrier,
whether within or without the premises o f the sender, and to end when actual
delivery has been made to the office of the addressee. They do not, however,
cover losses through theft by the employees o f the sender or the addressee or
losses by risks generally referred to as “ war risks.”
17. The policies contain the following clause eliminating such coverages:
“ T o cover . . . risks o f physical loss o f or damage to or destruction
o f property insured, except theft on the part o f employees o f senders
or addressees, but this policy does not insure against: (a ) capture,
seizure, arrest, restraint, detainm ent, confiscation, preem ption,
requisition or nationalization, and the consequences thereof or o f
any attempt thereat, whether in time o f peace or war and whether
lawful or otherwise; any consequences o f hostilities or warlike
operations (whether there be a declaration o f war or not) but the
foregoing shall not exclude collision, explosion or contact with any
fixed or floating object (other than a mine or torpedo), stranding,
heavy weather or fire unless caused directly (and independently o f
the nature o f the voyage or service which the vessel concerned or,
in the case o f a collision any other vessel involved therein, is per­
form ing) by a hostile act by or against a belligerant power, the term
‘ power’ as used herein including any authority maintaining naval,
military or air forces in association with a pow er; or any loss or
damage caused by any weapon o f war employing atomic fission or

— 5—

BULLETIN No. 5

radioactive force whether in time o f peace or w ar; (b ) the conse­
quences o f civil war, revolution, rebellion, insurrection, or civil
strife arising therefrom, piracy, risks of contraband or illegal trans­
portation or trade, and seizure or destruction under quarantine or
customs regulations.”
18. The liability o f tbe insurers under these policies is limited to $10,000,000
on property from any one sender to any one addressee on any one day unless
dispatched by two or more trains, in which event the limit o f liability shall apply
to each train separately, with the further limitation o f liability that shipments
o f currency shall not exceed $400,000 in any one shipping package.
Advice o f Shipment
19. A mail advice will be sent to member banks covering each shipment, and,
if the shipment is not received promptly, the head office or branch making it
should be immediately notified by telephone or telegraph.
Verification o f Shipment
20. A ll shipments should be verified (piece counted) immediately upon
arrival, by the receiving bank, and any discrepancy found should be reported
to this bank. Receipt o f a shipment o f currency or coin must be acknowledged
by officially signing the accompanying receipt form and returning it in the
enclosed envelope addressed to the General Auditor o f this bank. W here dis­
bursement o f currency or coin is made without verification, this bank will assume
no liability.
SHIPMENTS OF CURRENCY TO THE FEDERAL RESERVE
BANK OF DALLAS

Preparation o f Currency for Shipment
21. A ll currency included in each shipment should be sorted and packaged
by denomination, face and top up, and should be enclosed in paper currency
straps, each strap containing 100 notes, with the name o f the depositing bank,
date, amount, and the number or stamp o f the teller counting the package,
appearing on each strap. Under no circumstances should rubber bands, pins, or
clips be substituted for paper straps. In so far as possible packages should be
assembled by denomination into units o f 2,000 notes each. Each unit should
be securely tied so as to avoid collapse while in transit. The weight o f all units
allowed in one sack and under one registry is determined by postal regulations.
Placing in each sack a number o f units, not in excess o f the weight allowed,
is desired as a measure o f reducing shipping costs.
22. On the date o f shipment, a notice must be mailed, under separate cover,
to the Federal Reserve Bank, giving the date, amount and description o f the
shipment. A supply o f this bank’s Form Cash 316 for this purpose will be
furnished upon request. A copy o f the advice should be enclosed with the
shipment.
23. Torn notes should be carefully mended on the back with transparent
cellophane tape in such manner as to preserve the original design and visual
identification o f the face o f the notes. All such notes should be strapped sepa­
rately from those packages containing currency not mutilated; and where the
number o f notes in a single denomination is 25 or more, a separate strap should
be used. Pins, clips, and other metallic substances, if not removed, could cause

—6—

BULLETIN No. 5

injury to the handlers and damage the machinery used in cancelling unfit cur­
rency. Failure to comply with the foregoing slows up the process o f handling
and may delay final verification.
Method o f Shipment
24. Currency o f all denominations should be shipped by registered mail
or such other means o f transportation as may be selected by this bank. Since
the Federal Reserve Bank o f Dallas assumes all risks incident to the transporta­
tion o f such shipments, the sending bank should pay on registered mail ship­
ments only postage at first class rate and appropriate registry fee, using the
lower o f the two scheduled rates charged by the Post Office for registered mail.
Mutilated Currency
25. The Federal Reserve Bank o f Dallas will accept for credit, redemption,
or exchange lawfully held paper currency o f the United States that is mutilated.
I f clearly not less than three-fifths o f the original proportions o f a bill remain,
it will be exchanged at face value. Lawfully held paper currency, so mutilated
that less than three-fifths but clearly more than two-fifths o f the original pro­
portions remain, is exchangeable only by the Treasurer o f the United States at
one-half the face amount o f the whole note. Fragments not clearly more than
two-fifths are not exchangeable by the Treasurer o f the United States unless
accompanied by evidence required in paragraphs 26 and 27. N o re co v e ry is
allowed when currency has been totally destroyed.
26. Fragments o f less than three-fifths, when identifiable as to denomina­
tion, kind, and genuineness, are exchangeable at the face amount o f the whole
note by the Treasurer o f the United States when accompanied by satisfactory
p roof that the missing portions have been totally destroyed. This proof should
be in the form o f an affidavit from the owner stating that he is the owner, out­
lining the cause and manner o f destruction, and recording the total amount
destroyed. I f the owner cannot o f his own knowledge state the facts o f de­
struction, an affidavit or affidavits from any other person or persons having
knowledge o f the facts will be required. Treasury Department affidavit forms
T U S 5283 are supplied by this bank upon request, and the completed affidavits
should be returned to this bank for presentation to the Treasury Department.
27. The affidavits must be subscribed and sworn to before a notary public
or other officer authorized by law to administer oaths. Unless authenticated
by the official impression seal o f the officer, the affidavit should be accompanied
by a certificate from the proper official showing that the officer was in commis­
sion on the date o f the acknowledgment. The expiration date o f the officer’s
commission should be shown in any event. Should an affiant sign by mark ( X ) ,
his signature must be witnessed by two persons besides the acknowledging
officer and the places o f residence o f the witnesses to the mark must be stated.
SHIPMENTS OF COIN TO THE FEDERAL RESERVE
BANK OF DALLAS

Preparation of Shipments
28. Coin should be shipped to this bank loose in heavy canvas bags, each
bag containing coin o f only one denomination. Lead seals should be used in
sealing bags o f coin and the impression should bear the name or the A .B .A .

— 7—

BULLETIN No. 5

number o f the shipping bank. Coin shipped to this bank should be sacked as
fo llo w s:
Silver Coin— $500 or $1,000
Nickels— $100 or $200
Cents— $50 or $100
29. On the date o f shipment, there should be mailed to the Federal Reserve
Bank, a notice giving the date, amount and description o f the shipment on this
bank’s advice o f shipment Form Cash 172, a supply o f which will be furnished
on request.
Transportation Services Available
30. Unless other means o f transportation are selected by this bank, coin
should be shipped to this bank by Railway Express Agency, Inc., collect, where
such service is available. The addressee tag should show the amount in each sack.
31. Banks located in towns which have no express facilities should ship
coin to this bank by parcel post, fourth class insured mail. I f the Federal Reserve
Bank (or appropriate branch) is in the first or second parcel post zone from
the point o f shipment, the maximum permissible weight o f each sack is 40
pounds when mailed from a first class post office; if the Federal Reserve Bank
is in the third to eighth zones from the point o f shipment, the maximum per­
missible weight o f each sack is 20 pounds. I f mailed at a second, third, or
fourth class post office, the maximum weight o f each sack is 70 pounds regard­
less o f zone. On any shipment made by parcel post, fourth class insured mail,
no sack should contain more than $200 regardless o f weight. There is no limit
as to the number o f sacks that may be mailed at one time. The addressee tag
should carry the following inscription: “ Postmaster — Fourth-class mail. This
package may be opened for postal inspection if necessary. F ro m — (Name of
sending bank).”
32. The risks o f loss o f such shipments from member banks will be assumed
by this bank upon the same terms and subject to the same conditions as appear
in paragraphs 3 through 6 and 34 o f this bulletin, provided, however, that this
bank will not assume any risks o f loss on such shipments while they are in the
custody o f the United States Post Office Department.
Mutilated Coin
33. Mutilated silver and minor coins will not be accepted at their face
value and should be shipped to the United States Mint at Denver, Colorado,
for sale at bullion or metal value. Silver and minor coins are mutilated when
punched, clipped, plugged, fused together, or when so defaced as to be not
readily and clearly identifiable as to genuineness and denomination. Coins con­
taining lead, solder, or other substances which will render them unsuitable for
coinage metal will not be accepted by the mints. Mutilated minor coins (one-cent
bronze and five-cent nickel) will be purchased at the mint in lots o f not less
than five pounds o f each kind, at a price (the approximate value as metal)
fixed from time to time by the Director o f the Mint, and should be transmitted
to the mint at the expense and risk o f the owner (charges prepaid). One-cent
and five-cent coins in the same shipment should be segregated by denomination.
Silver and minor coins that are bent or twisted out o f shape, but are readily
and dearly identifiable as to genuineness, and coins that have been reduced

8—

BULLETIN No. 5

in weight by natural abrasion only are not regarded as mutilated and will be
received at face amount. Mutilated coin found in deposits will be charged to
the account o f the depositing bank and returned.
PAYMENTS OF LOSSES AND SUBROGATION OF RIGHTS OF RECOVERY

34. The amount o f any loss, the risk of which is assumed under the terms
o f this bulletin, will be paid promptly by this bank upon receiving from the
bank sustaining the loss, in form satisfactory to this bank, a written p roof o f
loss, receipt, and any other necessary documents, including, but not limited
to, an assignment o f its rights, title, and interest in the lost property. The bank
receiving any such payment shall take all necessary measures in behalf and at
the risk and expense o f this bank for the recovery, reissue, or replacement o f
such property, including the institution o f legal proceedings in its own name,
i f deemed necessary by this bank.
ENTRIES TO THE RESERVE ACCOUNT OF A MEMBER BANK

35. Deposits or shipments o f United States currency and coin received
from a member bank will be credited to its reserve account subject to count,
verification, and subsequent adjustments for shortages, overages, counterfeits,
etc.
36. Payments or shipments o f currency and coin made to or for the account
o f a member bank will be debited to its reserve account, unless a draft on its
reserve account accompanies the order. In case a draft drawn on a bank other
than the Federal Reserve Bank o f Dallas is received with the order, it will be
handled for collection under the terms and conditions o f the current bulletin
o f this bank governing the collection o f such drafts, and the proceeds will be
credited to the member bank’s reserve account as soon as available.
COUNTERFEIT OR ALTERED CURRENCY AND COIN

37. In. accordance with Treasury Department regulations, all counterfeit
or altered currency and coin must be delivered to an agent o f the United States
Secret Service. Accordingly, all counterfeit currency and coin received by this
bank will be delivered to a secret service agent whose receipt, fully describing
the counterfeit currency or coin, will be mailed-to the depositor.
FOREIGN CURRENCY AND COIN

38. Canadian currency or coin may be forwarded to the Federal Reserve
Bank o f Dallas, provided it is not mixed with other currency or coin and, after
being converted into domestic funds, will be credited to the depositing bank’ s
account. Other foreign currency or coin will not be accepted for credit, and,
if received, will be returned to the shipping bank.
GOLD COIN AND GOLD CERTIFICATES

39. The executive order o f the President o f the United States requiring
the surrender of all gold coin and gold certificates is still in force. A n y gold
coin or gold certificates held or received on deposit should be sent to the Federal
Reserve Bank o f Dallas for the account o f the Treasurer o f the United States.
Gold coins having a recognized special value to collectors o f rare and unusual
coin, including all gold coins made prior to April 5, 1933, have been exempted
from the surrender requirement, however, and may be retained by the persons
owning them.

BULLETIN No. 5

— 9—
RETURN OF MONEY SACKS

40.
Empty money sacks bearing the name o f the Federal Reserve Bank
o f Dallas or o f the United States Mint should be returned to this bank by
fourth class mail. The sender will be reimbursed for the postage expense.

RIGHT TO AMEND

41.
The right is reserved by this bank to withdraw, add to, or amend at
any time any o f the terms and conditions o f this bulletin.
Yours very truly,
Watrous H . Irons
President