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Federal R eserve Ba n k o f N e w Y o r k , N.Y. N ew Yo r k 1 0045 AREA CODE 212 732-5700 December 13, 19^7 To the Chief Executive Officer of the Member Bank Addressed: For a number of years it has been our practice to request banks to acknowledge, over an official signature, the receipt of advices of credit and debit arising from overages and shortages found by this Bank in deposits of currency and coin. This practice was instituted in order to minimize errors by bringing each error to the attention of an officer of the bank involved. However, it appears that the practice no longer serves the purpose for which it was intended, and it will be discontinued effective January 2, 1968 . In this connection, we call your attention to the fact that the number of errors in deposits of coin and currency with us has been increasing at an alarming rate. Errors in deposits of currency alone currently number about 5,000 a month. It appears that one reason for the increase in the number of errors is a spreading practice by member banks of sending large deposits of currency to us in the form in which they have been received from their customers without having the deposits prepared and verified by responsible employees of the member banks. We would emphasize that, as indicated in paragraphs 28(b) and 37 of our Operating Circular No. 3, this Bank does not assume the risk of loss on any shipment of paper currency or coin that is not prepared and verified by one or more responsible employees of the member bank making the deposit. We should appreciate your bringing the contents of this letter to the attention of an officer at each of your branches which sends deposits of currency or coin directly to this Bank. Alfred Hayes President
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