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FED ERAL RE SE R V E BANK O F NEW YORK r C ircular Xo. 4 ^ 4 0 L Ju ly 16, 1956 J NEW FORM O F GOVERNM ENT CHECK Buff-Colored C ard Checks W ill A ppear Beginning August 1, 1956 To all Banks, and Others Concerned, in the Second Federal Reserve District : The following statem ent was made public today: The T reasury D epartm ent announced today th at beginning about A ugust 1, 1956, a num ber of Governm ent disbursing officers will issue a new form of Governm ent check different in appearance from the fam iliar green-colored puncli card and conventional p ap er checks draw n on the T reasurer of the U nited States. The new checks will be buff-colored (light brow n), in punch card form, and will have a diagonal cut in the u p p er rig h t corner. They will replace the com paratively few paper checks now issued by the Government. Green punch card checks, which have a diagonal cut in the u p p er left corner, will continue in use. The buff-colored checks will be introduced in connection w ith the adoption of high speed electronic machines to process the paym ent and reconciliation of Governm ent checks. The new machines, which will go into use A ugust 1, were installed a fte r two y e a rs’ study by the T reasury, General Accounting Office and the B ureau of the Budget, as another step to reduce costs by im proving Governm ent pro cedures. As previously announced, upon complete conversion to the system, annual savings of $2,250,000 are expected. The electronic machines, capable of accurately “ rem em bering” facts and figures, will both process checks fo r paym ent and reconcile the checks a fte r paym ent. F acts concerning each check issued, such as the serial num ber and am ount, will be fed into the machines. W hen the check comes back to the T reasury fo r paym ent, the machines will either verify or throw it out as incorrect. The m achines will also provide inform ation at any time on checks still outstanding, thereby sim plifying the reconciliation of accounts of disbursing officers. Costly recording and au d itin g procedures in check processing, perform ed by sev eral h undred persons, will no longer be necessary. The new buff-colored checks will be used prim arily by disbursing officers presently issuing paper checks prepared by hand. They will require special punching at the F ederal Reserve Banks, which is not necessary in the case of the more generally used green cardboard checks. The buff-color was adopted to sim plify the separation of these checks. A bout 350,000,000 checks are issued each y ear by the Governm ent, of which 30,000,000 are now p ap er checks. The p ap er checks will be elim inated beginning A ugust 1, and will disappear completely as those outstanding at th a t tim e are cashed. The new buff-colored card checks will be received by this Bank and its Buffalo B ranch in accordance with the provisions of Regulation J and our O perating C irculars Nos. 4, 5 and 6. Accordingly, member and nonmember clearing banks may send such checks to this Bank or its B ranch as cash items for immediate credit subject to the closing times applicable to other checks on the T reasu rer of the United States. Depositing banks should make separate listings of the buff-colored and the green-colored card checks in order to facilitate the special punching of the buff-colored checks a t this Bank. P a p e r checks draw n on the T reasurer, which will be elim inated gradually beginning A ugust 1, 1956, should be sorted and listed with the buff-colored checks. F. T r e ib k r , First Vice President. W illia m ■Vyj Federal R eserve Ba n k of yf N ew Y o r k N E W YORK 4 5 , N.Y. RECTOR 2-5700 (w 4 ) July 16, 1956 N W DECEPTIVE COUNTERFEIT FEDERAL RESERVE N TE E O To a l l Banks in the Second Federal Reserve D is tr ic t: W have been requested by the United States Secret Service to a le rt e a l l banks in our D is tr ict to the p ossib le appearance o f a new deceptive counter f e i t $5 Federal Reserve note o f the Series o f 1950 A. This cou n terfeit note, which purports to be issued by the Federal Reserve Bank o f Chicago (G), has re cen tly appeared in various section s o f the country but not as yet in the Second Federal Reserve D is tr ic t. The United States Secret Service has supplied the follow in g d escrip tion o f th is new cou n terfeit: $5 Denomination Series 1950 A 1950 A Check Letter J 0 Face Plate Back Plate 171 231 2117, or 2102, or 8225 2117, or 2102, or 8225 A ll cou n terfeit currency received from any source should be marked fo r id e n tific a tio n and forwarded to the nearest o f f ic e o f the United States Secret S ervice, rather than to Washington, D, C. In th is D is t r ic t , the Secret Service has o ff ic e s in Room 917, Federal O ffice Building, 90 Church S treet, New York 7 , New York; in the United States Court House, B uffalo 1, New York; in the Post O ffice Building, Syracuse, New York; and at 1060 Broad S treet, Newark 1, New Jersey. A dditional copies o f th is le t t e r w ill be furnished upon request. WILLIAM F TREIBER, , F irst Vice President.
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