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F E D E R A L R E S E R V E BANK O F NEW YORK No. 4 5 4 5 1 December 23, 1957 J [ Circular Inform al Closing H our For Receipt at Head Office o f Certain Immediate-Credit Items To all Member and Nonmember Clearing Banks in the Second Federal Reserve District: Our O perating Circular No. 5, entitled “ New Y ork H ead Office Tim e S chedule” , provides that immediate credit w ill be given fo r separately sorted cash items drawn on or payable at New Y ork Clearing H ouse A ssociation banks, certain other New Y ork City banks, and N orthern New Jersey Clearing H ouse A ssociation banks, when received in time fo r presentm ent through clearing houses or special collection arrangem ents on the day o f receipt. H ow ever, as a m atter o f convenient operation to this Bank and to the member and nonmember clearing banks in the Second F ederal R eserve District, we have been givin g immediate credit fo r all such items received by this Bank by 9 a.m. The substantial increase in the number o f checks issued, delays in transit, changes in transportation schedules, and other fa ctors over which we have no control, have resulted in an increasing volum e o f such items being received b y us in the hours immediately p rio r to 9 a.m. The final hour fo r the presentm ent o f such items through clearing houses o r special collection arrangem ents is 10 a.m. Consequently, we frequently have been unable to present all such item s received by 9 a.m. A carefu l study o f the matter indicates that our inform al closing hour o f 9 a.m. has become unrealistic and should be changed to 6 a.m. A ccord in gly, effective January 2, 1958, we will norm ally give immediate credit fo r separately sorted cash items drawn on or payable at New Y ork Clearing H ouse A ssocia tion banks, certain other New Y ork C ity banks, and N orthern New Jersey Clearing House A ssociation banks received by 6 a.m. W e shall continue, o f course, our present practice o f processing and presenting such items up to the latest possible hour, but we w ill give immediate credit fo r items received after 6 a.m. only i f we are able to present the items through clearing houses or special collection arrangem ents on the day o f receipt. Member and nonmember clearing banks which send immediate credit items to us should dispatch such items at the earliest possible hour and b y the m ost expeditious means o f transportation available. A lfred H ayes, President.
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