The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF CHICAGO 79 WEST MONROE STREET BULLETIN No. 80 August 31, 1917. PLAN FOR THE COLLECTION OF MATURING NOTES, BILLS AND OTHER COLLECTION ITEMS TO THE MEMBER BANKS OF DISTRICT NUMBER SEVEN: Upon the authority of the Federal Reserve Board and by its direction, on September 1, 1917, the Federal Reserve Bank of Chicago will establish a Collection Department for the handling of all forms of collection items. These items will be collected as promptly as possible and credit given when actual payment has been received. The conditions and regulations governing the operation of this Department of the Bank are fully set forth in the following circular. Any bank forwarding items for collection agrees to all conditions proposed. ITEMS RECEIVED: Drafts, notes, bonds, coupons, acceptances, etc. ROUTING: The Federal Reserve Bank of Chicago may, in its discretion, send all items for payment direct to a bank located at the place where the item is payable or to another agent for collection, and assumes no responsibility for the failure of any of its direct or indirect collection agents, and shall be held liable only when proceeds in actual funds or solvent credits shall have come into its possession. CHARGES: The Federal Reserve Bank of Chicago will make a service charge of ten cents per item in addition to the exchange charge that may be made by the collecting bank. In case of the collection item being returned unpaid, there will be an additional charge of ten cents which will be paid to the bank presenting the item for payment. A service charge will not be imposed for collecting coupons. The only charge for the collection of coupons will be the usual one covering the expense of registration and insurance or express charges for coupons payable outside of Chicago plus any charge made by the collecting bank. The charge of ten cents per item made for handling unpaid items will be paid to the presenting bank monthly. REMITTING: In so far as possible, items will be sent direct to their place of payment, and when payable outside of this district the collecting bank will make remittance either direct to the Federal Reserve Bank of Chicago in Chicago exchange, or, if more convenient, to any other nearby Federal Reserve Bank in available exchange for the credit of this bank. The collection Department is being established for the purpose of furnishing additional service to member banks, and, to make this department as efficient as possible, it is earnestly desired that member banks co-operate in making prompt ret urns and advices of the payment of collection items. It is recognized that in presenting and remitting for collection items, the remitting or crediting bank is rendering a service of a different character than that of remitting for its own checks, and for such a service is entitled to make a reasonable exchange charge. A special form of remittance letter will accompany all collection items, this form to be used by the remitting or crediting bank. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Respectfully, JAMES B. MCDOUGAL Governor.
@FedFRASER