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FEDERAL RESERVE BANK OF NEW YORK Accounting Department [ Ci ™lar No 729 - ' Wy 23 1926 ' Superseding Circular No. 483 INSURANCE OF SHIPMENTS OF CURRENCY, COIN AND SECURITIES Declaration Form to be Used Provisions for Insuring Registered Mail Shipments To all Member Banks, State Banks and Trust Companies in the Second Federal Reserve District: This bank holds open policies for registered mail insurance under which shipments consigned to it, as well as those made by it, may be insured. Our insurance covers subject to certain conditions from the time of leaving the office of sender and includes all risks until delivered to the office of addressee, with the exception that it does not cover loss through dishonesty on the part of employees of any bank by wThom or to whom the package was shipped. Shipments of money or securities, to this bank or its Buffalo Branch may, when desired, be insured under our policies provided the following conditions are strictly complied with: 1. The insurance declaration, that is, the notice of the shipment, including a statement of the amount of insurance to be effected, must be sent to this bank by the same mail as the shipment, but under separate cover. For this purpose we will provide a special form, upon request. Do not include declarations for currency and securities on the same declaration form. 2. The amount of insurance desired on each shipment must be declared. Each shipment is insured for the amount declared, which, in the case of securities, must reasonably approximate (a) the average market value on the day of declaration of securities having a quoted market value and (b) the actual value of other property declared for insurance. 3. Contents of packages must be enclosed in strong wrapper, envelope, or cloth or canvas bags well secured and in all cases sealed with wax or lead seals. 4. The policy requires that all shipments "shall be in charge of a responsible employee of the shipping bank in transit from the bank to the post office or shall be in the custody of an armored car service in transit from such shipping bank to the post office." Packing and sealing of packages should in all cases where possible be witnessed by two persons. 5. Shipments must be by registered mail. Under no circumstances can a shipment be insured when sent by ordinary mail. Insurance of Currency Shipments at Expense of Federal Reserve Bank Insurance on all shipments of paper currency in denominations of $5. and above, declared for insurance under the conditions herein named, will be duly effected by this bank without expense to the shipping member bank. (Shipments of one and two dollar bills and shipments of coin should be made by express, charges collect as heretofore, and not by registered mail.) Insurance of Securities at Shipping Bank's Expense Banking institutions desiring to do so may also avail themselves of the privilege of insuring in the same way shipments addressed to us consisting of (a) Coupons and maturing bonds forwarded for collection, (b) Securities forwarded for safekeeping, for sale or redemption, or to be held as collateral either for loans or government deposits, or for exchange of denomination, or exchange for registered, etc. Such shipments, however, will be insured at the expense of the shipping bank. For this reason it is suggested that where banks hold registered mail policies of their own they may find it more convenient to insure shipments of the kind mentioned in this paragraph under their own policies. Temporary Liberty Bonds in Exchange for Permanent Bonds This circular in no way affects the arrangement already existing for the shipping of temporary bonds of the several Liberty Loans for exchange for permanent bonds of the same issue. In such cases the transportation charges and risks of shipment are provided for by the Government. Please continue to make such shipments exactly as heretofore in accordance with the instructions contained in our circular No. 259, sent to you on March 5, 1920. Amendments Our circulars No. 297 en'itled "Shipments of Paper Currency, Coin and Bullion" and No. 673 entitled "Collection of Maturing Notes, Bills and Other Collection Items" are supplemented and amended as herein provided. Very truly yours, BENJ. STRONG Governor
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