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Fed e r al







June 29, 1957

To the Member Banks in the
Eleventh Federal Reserve District:
Enclosed is a revised copy of pages 5 and 6 of our operating
Bulletin No. 5 relating to currency and coin services.
The revision, which is in the second and third lines on page 6,
reflects the changes in registered mail fees of the Post Office
which became effective July 1, 1957. Please note that your ship­
ments of currency to this bank and its branches qualifies for the
lower of the two schedules of rates in effect for registered mail.
Shipments of coin to this bank and its branches should continue
to be made in accordance with paragraphs 30 and 31 of our oper­
ating Bulletin No. 5.
Please acknowledge receipt of these revised pages on the
enclosed card.
Yours very truly,
Watrous H. Irons

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (

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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. 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. All 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.

Preparation o f Currency fo r 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. (U nder no circumstances should rubber bands, pins, or
clips be substituted fo r 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, there must be mailed (under separate cover)
to the Federal Reserve Bank, a notice 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
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. A ll 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
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.
Since the Federal Reserve Bank o f Dallas assumes all risks incident to the

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transportation o f such shipments, the sending bank should pay 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 the following paragraphs.
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, only by the Treasurer o f the United States when accompanied by satis­
factory p roof that the missing portions have been totally destroyed. This proof
should be in the form o f an affidavit from the owner, setting forth that he is
the owner and the cause and manner o f destruction. If, however, the owner
cannot o f his own knowledge state the facts o f destruction, an affidavit or
affidavits from any other person or persons having knowledge o f the facts will
be required.
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.
In addition to the affidavits, there should be furnished a certificate, to be exe­
cuted if possible, by an officer o f an incorporated bank or trust company, or
by a public officer o f the United States, setting forth that the officer has read
the affidavit and the affiants are respectable persons in the community and are,
in the judgment o f the officer, worthy o f belief. N o relief is granted in cases
where currency has been totally destroyed.

Preparation o f Shipment
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 .
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

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