View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE BANK
OF N E W YORK
Department

I Circular No. 297 1
*
L August 18, 1920 J

Shipments of Paper Currency, Coin and Bullion
To all Member Banks in the
Second Federal Reserve District:
Many inquiries have recently been received from the banks concerning our
methods of receiving and shipping at our expense paper currency, coin and bullion and
asking for our latest instructions covering this service. To comply with these requests
and to place conveniently before the tellers of the banks current information on this
subject we have revised our older circulars and have brought them up-to-date with,
however, only minor changes. The conditions under which we shall bear the expense
incurred in making such shipments are as follows:
Absorption of Shipping Expenses
This bank will pay the expense of all postage, expressage and insurance incident
to shipments of paper currency, coin and bullion to and from member banks, and in
addition will pay charges on all telegrams and essential telephone messages received from
or sent to member banks in connection with such shipments, exchange transfers and
deposit transactions, provided the following provisions are observed in making such shipments to us.
Assortment of Currency and Coin
Incoming paper currency and coin transferred by banks to us should be carefully
assorted according to denominations. Paper currency should be enclosed in paper
straps each containing fifty or one hundred bills, face and top up, with the name
of the depositing bank, the date, the amount and the initials of the counter plainly
marked on the strap. Coin should be shipped loose in cloth bags in one denomination
only in each bag, with the denomination, amount, date and initials of the counter clearly
indicated on the face of the shipping tag, and the weight shown on the reverse side.
Foreign Currency or Coin
Foreign currency or coin should not be included in regular shipments as above
provided. If either is sent to us, however, it should be forwarded under separate cover
for sale and credit at the current rate of exchange.
Older Circulars Superseded
The provisions of our Circular N o . 54 of November 10, 1916 entitled "Insurance
of Currency Shipments," of our Circular No. 91 of November 17, 1917 entitled "Currency
Shipments" and of our letter of October 8, 1918 concerning the payment of expenses on
such shipments to and from member banks, are superseded by the provisions of this circular.
Methods of Shipment
Instructions covering methods of shipment are given in detail in the following
pages arranged so that the tellers, if they so desire, may slip them under the glass tops
of their money counters for ready reference.



2*77 ~ Covtcit^u.y .

INCOMING
Shipments to the Federal Reserve Bank of New York
PAPER CURRENCY
By Registered Mail
All currency shipped to us by registered mail and accompanied by letter of advice
will be insured under our policies provided the insurance declaration on the form in current
use is forwarded to us by ordinary mail at the time of shipment. Bills of $5, or larger,
should be sent in this manner. (Reference below to shipment of l's and 2's.)
Preparation of Package for Shipment
(a) The preparation and sealing of the package should be witnessed by
two adults, if possible, one of whom shall have charge of the package until
deposited and registered at the Post Office.
(6) Contents of the package should be enclosed in a cloth bag sealed
with lead seals so t h a t the bag after breaking the seal may be opened and
used again; or, in a strong wrapper or heavyweight envelope, well secured
by twine inside and out, sealed with wax.
The tag should bear the name
of the shipping bank and the postage stamps should in all cases be affixed
to the tag and not to the bag.
(c) Registry receipt should be carefully filed, as in the case of loss it
would be required as evidence of shipment.
Credit for shipments, thus received, plus the cost of postage, will be made on the
day of receipt.
By Express
Incoming currency in denominations of $1 and $2 should be sent to us by express
"collect." No insurance declaration is necessary, but letter of advice should be mailed,
as usual, under separate cover. Credit is given on the day of receipt.

COIN
By

Express

Incoming coin should be sent to us by express "collect." Credit is given on the
day of receipt. All mutilated coin will be received for credit and sale and a charge for the
loss caused by the mutilation will be made upon our receipt of the proceeds of sale.

GOLD BULLION
By Express or Otherwise
Gold bullion may be sold to this bank by banks, bankers, smelters or others and the
net proceeds of such incoming shipments (the value of which is determined by subtracting
the melting charges from the assayed valuation) are paid to the shipper by check or
credit. Bankers guaranteeing by letter the value of the shipment receive check immediately for approximately 90 per cent, of its value as stated in the letter of guaranty
and receive the difference by check when the exact value after melting is known.
Receipts from the United States Assay Office of gold bullion deposited by smelters
which indicate the weight of the gold shipment before melting, are purchasable by us
from them by check at a price permitting a margin of safety. Upon ascertaining the
weight, after melting, and the fineness and exact value of the gold, the balance in favor
of the seller, less the necessary United States Assay Office charges, is remitted bv check.



2-97

~

Z^TKAAWI**~*(

OUTGOING
Shipments from the Federal Reserve Bank of New York
PAPER CURRENCY
By Registered Mail or Express Prepaid
Currency from us in the denominations of $ 1 , $2 and $5 will be forwarded either
by registered mail, insured, or by express, and in the larger denominations by registered
mail, insured.

COIN
By Express Prepaid
Outgoing silver coin and minor coin will be shipped by us by express. Upon
request subsidiary silver coin- will be forwarded, wrapped in crimped paper cartridges,
$10 in halves, $10 in quarters and $5 in dimes, and minor coin $2 in nickels and
$.50 in 1-cent pieces.
The cartridges containing such coin cannot be opened
without injury and will be enclosed in pasteboard boxes which will be shipped in sealed
cloth bags.

GOLD BULLION
By Express Prepaid
Gold bullion is shipped by us to member banks at its assayed valuation, plus the
charges as fixed in the current table of charges at the Mints and Assay Offices of the
United States.
Outgoing shipments of paper currency, coin or gold bullion, are charged to
correspondents on the day forwarded.

Counterfeit, Altered or Raised Notes
Information lending aid or support to the United States Secret Service with respect
to raised notes or to notes of $5 or more, mutilated by having the ends or corners torn
or cut off, should be given to the nearest United States Secret Service Agent.
Fragments of currency notes (particularly the ends) are sometimes used illegally in
raising or altering lower denominations to higher. To prevent such unlawful operations
these fragments should be collected and destroyed or forwarded to the Department of
the Treasury a t Washington for destruction.
All counterfeit, altered or raised notes received by one bank from another, after
being properly branded, may be returned to the bank or other source from which they
were received, b u t the nearest United States Secret Service Agent should also be notified
of the transaction. The Secret Service has headquarters in the Second Federal Reserve
District in the Custom House in New York City, and at the Post Office Buildings a t
Buffalo and Utica.




Very truly yours,
J.

H.

CASE,

Acting Governor

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