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Bulletin No. 131. FEDERAL RESERVE BANK OF CHICAGO 79 WEST MONROE STREET CHECK COLLECTION SYSTEM Chicaso, Dec. 28, 1918. TO THE MEMBER BANKS OF DISTRICT NUMBER SEVEN: The following pages setting forth the conditions governing the operation of the check collection system and the revised time schedule effective January 2, 1919, supersede Bulletin No. 111 issued June 14, 1918. Member banks availing themselves of the par collection facilities are requested to conform to the instructions herein contained relative to the sorting of checks and the preparation of cash letters and to familiarize themselves with the conditions under which items are accepted by this bank for collection. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Respectfully, JAMES B. McDOUGAL . Governor. CONDITIONS GOVERNING THE CHECK COLLECTION SYSTEM ITEMS WHICH WILL BE RECEIVED We will receive from member banks, without charge, checks and drafts drawn on banks shown in the par list published by the Federal Reserve Board. Par lists of member and non-member banks on which items will be received will be furnished semi-annually. A supplement will be issued monthly showing changes which have occurred since the publication of the complete list. UNIFORM INSTRUCTIONS To facilitate the handling of a large volume of items, it is understood that all checks and drafts handled by the l!.,ederal Reserve Bank as cash items are received under the following conditions: 1. All items of $10.00 or under are not to be protested. 2. All other items are to be protested except those stamped on the face "N.P.," followed by the A. B. .A. transit number of a bank endorser in the following form: (N. P. 2-30) 3. Advice to be telegraphed of dishonor of all items of $500.00 or over. 4. Cash letters must indicate the B.A.i'IB: on which CHICAGO items are drawn and the TOWN on which items on banks OUTSIDE of CHICAGO are drawn. Items bearing other instructions should be accompanied by collection letters plainly marked '' Special Items,'' and will be received only for credit when paid. ENDORSEMENT OF ITEMS All items forwarded to the Federal Reserve Bank should be endorsed without restriction to the order of Federal Reserve Bank of Chicago, all prior endorsements guaranteed, show the date, and on each side o.£ the endorsement the .American Bankers' .Association transit number of the endorsing bank in prominent type. RESTRICTIONS AS TO ENDORSE MENTS To insure direct routing, this bank reserves the right to return any item drawn on a bank located outside of this district when such item bears the endorsement of a bank located outside of this district. WHEN PROCEEDS OF ITEMS WILL BE AVAILABLE Immediate credit entry at par, subject to final payment, will be made for all out of town checks received by this bank by 2 :00 o'clock P. M., except Saturday, when the hour will be 12 :00 o'clock Noon. Checks drawn on Chicago banks will be immediately available if received prior to 10 :00 o'clock A. M., except Saturday, when the hour will be 9 :00 o'clock .A. M. 'l'he proceeds of items on banks outside of Chicago, will not, however, be available for withdrawal nor count as reserve until the expiration of time indicated in the attached schedule. For the convenience of member banks, the schedule is arranged in five divisions: 1. Points on which checks are immediately available for reserve. 2. Points on which checks are available in one day. 3. Points on which checks are available in two days. 4. Points on which checks are available in four days. 5. Points on which checks are available in eight days. Checks must be sorted into the five divisions, and each division listed and totaled on a separate sheet. This will enable you to determine the day upon which the funds will be available as reserve in this bank. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis STATEMENTS SHOWING . AMOUNT OF UNCOLLECTED FUNDS A. transcript of account showing the gross balance, the amount of uncollected funds and the actual reserve balance will be sent to each member bank on every day upon which there is a transaction in the account or a change in the amount of uncollected funds. METHOD OF HAN CLING THE ITEMS Checks drawn on member banks of this district will be forwarded direct to the paying banks but will not be charged to their accounts until we have received return remittances or advice of payment, thus giving member banks time to provide funds to cover. Member banks are required by the Federal Reserve A.ct to provide funds to cover at par all checks received from a Federal Reserve Bank. Remittances for cash letters must be made in Chicago exchange in order that the funds may be immediately available. Items drawn on non-member banks will be sent to such member banks as desire to receive them or may be sent by arrangement direct to non-member banks. Unpaid items not subject to protest must be returned on day of receipt. Protested items must be returned not later than the day after receipt. Unpaid items must not be held for any purpose whatsoever except for immediate protest and when returned must not be included with other cash items forwarded for credit. DIRECT ROUTING When time can be saved and the volume of items warrants, arrangements may be made with this bank for direct routing between member banks of this district and other Federal Reserve Banks and their branches. HOW MEMBER BANKS MAY MAINTAIN BALANCES Member banks may maintain their balances with us: (a) By depositing Chicago exchange. (b) By depositing out of town items, the proceeds of which will be available a reserve in accordance with the time schedule. (c) By telegraphic transfers of funds. ( d) By shipment to us at our expense of properly sorted lawful money or Federal Reserve Notes. (e) By rediscounting. COLLECTIBLE AT PAR THROUGH THE FEDERAL RESERVE BANK OF CHICAGO Member banks are entitled to place the words, "Collectible at par through the Federal Reserve Bank of Chicago'' on their own check and the checks used by their depositors. Your attention is called to the desirability of availing yourselves of this privilege. DISTRICT NUMBER ON CHECKS To facilitate the sorting of checks by member banks and by Federal Reserve Banks, it is requeste·d that you have clearly imprinted on all your checks and drafts the figure 7, preferably in a large skeleton figure in the center of the check. CONDITIONS UNDER WHICH MEMBER BANKS MAY USE SYSTEM Every member bank sending items to the Federal Reserve Bank of Chicago, will be understood to have agreed to the terms and conditions set forth in this bulletin and to have thereby specifically agreed that in receiving such items this bank will act only as the collecting agent and at the risk of the bank from which the items are received; will assume no responsibility other than due diligence and care in forwarding such items; and will be authorized to send such items for payment direct to the bank on which drawn or to another agent for collection at discretion. It is further agreed that this bank shall not be liable for the negligence or failure of any person or corporation to which such items may be sent for collection, nor shall it be liable for returns on such items until such returns have been actually converted into cash. In case of non-payment of such returns, or the loss of any items while in process of collection or through failure to collect, or for any other reason except failure to use due diligence, this bank shall have the right to charge back such items to the depositing member bank. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis FEDERAL RESERVE BANK OF CHICAGO SCHEDULE SHOWING WHEN THE PROCEEDS OF ITEMS WILL BECOME AVAILABLE AVAILABLE ON RECEIPT Chicago (If received prior to 10 :00 A. M.) (Saturday 9 A. M.) ONE BUSINESS DAY AFTER RECEIPT Kansas City, Kansas Kansas City, Missouri Cleveland, Ohio Detroit, Michigan St. Louis, Missouri TWO BUSINESS DAYS AFTER RECEIPT Illinois ( except Chicago) Indiana Iowa Michigan ( except Detroit) Wisconsin Atlanta, Ga. Baltimore, Md. Birmingham, Ala. Boston, Mass. Cincinnati, Ohio Dallas, Texas Denver, Colo. Louisville, Ky. Memphis, Tenn. Minneapolis, Minn. New Orleans, La. New York City Omaha, Neb. Philadelphia, Pa. Pittsburgh, Pa. Richmond, Va. St. Paul, Minn. FOUR BUSINESS DAYS AFTER RECEIPT El Paso, Tex. Jacksonville, Fla. Portland, Oregon Salt Lake City, Utah San Francisco, Uatif. Alabama (except Birmingham) Arkansas Colorado ( except Denver) Connecticut Delaware District of Columbia Florida Georgia (except Atlanta) Kansas (except Kansas City) Kentucky ( except Louisville) Louisiana ( except New Orleans) Maine Maryland ( except Baltimore) Massachusetts ( except Boston) Minnesota ( except Minneapolis and St. Paul) Mississippi Missouri ( except Kansas City and St. Louis) Seattle, Wash. Spokane, Wash. Nebraska (except Omaha) New Hampshire New Jersey New York (except New York City) North Carolina North Dakota Ohio ( except Cincinnati and Cleveland) Oklahoma Pennsylvania ( except Philadelphia and Pittsburgh) Rhode Island South Carolina South Dakota Tennessee (except Memphis) Texas ( except Dallas) Vermont Virginia ( except Richmond) West Virginia EIGHT DAYS AFTER RECEIPT Arizona California ( except San Francisco) Idaho Montana Nevada New Mexico https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Oregon (except Portland) Utah (except Salt Lake City) Washington ( except Seattle and Spokane) Wyoming
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