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<£2i^c F ederal R eserve Ba n k o f N ew York N E W Y O R K 4 5 , N.Y. RECTOR 2-5 7 0 0 August 23, 1963 Sixth Progress Report on MICR Program To All Banks in the Second Federal Reserve District: Enclosed are the results of the Federal Reserve System's most recent MICR survey as summarized in the attached press statement and its accompanying statistical tables. As with previous surveys, a separate table is enclosed indicating, in greater detail, participation in the MICR program by banks in the Second Federal Reserve District. Banks in this District can be pleased with their efforts in the MICR program. Viewed nationally, the level of achievement by banks in this District ranks quite high; only one bank in the District is not now preprinting its checks. Of the total number of checks handled by this Bank, 91.2 per cent now bear preprinted ABA routing numbers, as compared to 83.4 per cent six months ago and 67-5 per cent one year ago. It is encouraging to observe that many Second District banks are also encoding in magnetic ink the dollar amounts on checks they forward for collection. It is our hope that even more banks will find themselves in a position in the near future to encode dollar amounts on checks entering the collection stream, and thereby contribute to the successful utilization of the MICR program for the benefit of the entire banking community and the nation's check collection system. ALFRED HAYES, President. Enclosures y\J~ for* the P ress Federal Reserve Bank of New York New York 4-5. N.Y. REctor 2-5700 - e x t 1 56 No. 169 FOR RELEASE: MONDAY, AUGUST 26, 1963 The Federal Reserve System reported over the weekend that almost 85 out of 100 checks now clearing through Federal Reserve offices contain the preprinted magnetic ink identifications of the banks on which they are drawn. One year ago, 68 out of 100 checks contained such preprinted magnetic ink information. This is the finding of the sixth semiannual survey undertaken by the Federal Reserve Banks to measure commercial bank progress in the MICR (magnetic ink character recognition) program of The American Bankers Association. The survey was based on a daily average of almost fourteen million checks sent by Federal Reserve Banks to 15,848 banking offices. Marcus A. Harris, Chairman of the Federal Reserve System’s Subcommittee on Collections, indicated that 84-5 per cent of all checks collected through Federal Reserve Banks contained preprinted magnetic ink symbols. high stands in contrast to year at this time. 78.7 per cent six months ago and 68.3 This all-time per cent last In addition all but 17 of the 15,848 banking offices receiving checks from Federal Reserve Banks are now issuing some preprinted checks. The greatest percentage of preprinted checks is now being handled in the Third (Philadelphia) District with 91*4 per cent, followed closely by the Second (New York) District with 91*2 per cent and the Fourth (Cleveland) District with 89.5 per cent. (MORE) 2 On a state-by-state comparison all but three states boast of 100 per cent participation by banks in the MICR program. ing is found in Delaware with 96.1 per The highest level of preprint cent of all checks, followed by Rhode Island with 94.2 per cent and Connecticut with 94.0 per cent. Mr. Harris noted that banks are encoding an increasing number of checks with dollar amounts. While this is an optimistic sign, he commented, full-scale "dollar encoding" is unquestionably the key to successful utilization of the MICR concept. The attached tables give information on preprinted checks, by Federal Reserve District and by state, including the District of Columbia, Puerto Rico and the Virgin Islands. ###### MICR PREPRINTING SURVEY BY STATES AND OTHER SUBDIVISIONS August 1963 No. of Banking Offices in Survey State Alabama Alaska Arkansas Arizona California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming District of Columbia Puerto Rico and Virgin Islands Total * Excludes foreign 182 44 148 77 1,640 188 142 34 319 139 84 117 1,008 530 721 596 375 123 105 176 202 478 283 72 590 124 421 43 67 286 86 632* 287 60 672 389 219 806 24 147 109 257 1,045 91 67 354 346 182 675 57 12 17 15,848 bank agencies. Total Daily Per Cent of Average Check ____ Check Volume Now Per Cent Increase Volume Pre Since February Pre Sent to All printing Banking Offices printed 1963 100.0 100.0 100.0 100.0 99.8 100.0 100.0 100.0 100.0 100.0 86.9 100.0 100.0 100.0 100.0 99.8 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 94.1 99.9 122,400 78.5 79,300 84.4 61.3 13,500 17,800 1,171,300 129,500 349,700 81.5 88.8 89.2 94.0 23.3 5.7 8.8 10.5 2.3 3-3 9-6 •3 31,100 270,000 208,000 96.1 78.9 6.3 4,700 53.2 70.3 84.9 2.1 36,800 1,061,700 290,700 181,000 225,000 180,000 100,200 120,000 221,000 895,000 404,300 253,900 49,000 400,800 53,500 148,000 15,700 87,000 78.8 80.2 73.5 73.3 71.8 67.7 70.0 88.2 89.4 88.6 89.8 65.3 75.3 76.3 66.2 84.0 752,500 80.0 91.0 1,755,700 77.7 91.5 36,000 156,000 28,200 710,000 211,100 151,400 876,000 69,000 66,000 41,600 159,000 641,700 116,000 69,000 261,000 318,600 114,000 161,400 62.2 81.9 90.3 73.5 91.9 90.7 94.2 59.1 82.2 67.6 73.7 72.2 84.0 76.6 92.4 75-4 84.5 6.9 15.1 4.5 1-3 4.2 8.0 9.8 3.3 7.9 6.8 4.1 6.9 2.6 10.3 7.1 5.5 10.4 10.7 •9 7-5 3.8 7.8 6.9 5.4 5.6 7.8 3-7 4.9 3.0 6.7 5.5 .6 10.3 9.4 1.4 6.9 2.9 5.5 6.3 8,000 22,000 75-0 86.3 12.5 22.3 11,300 70.9 12.2 13,856,400 84.5 5.8 MICR PREPRINTING SURVEY BY FEDERAL RESERVE DISTRICTS August 1963 Total Daily Average Check No. of Banking Per Cent Volume Pre Offices Sent to All in Survey printing Banking Offices District 1 2 3 4 5 6 7 8 9 10 11 12 Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Total * City Country Total City Country Total 580 56* 820 100.0 100.0 100.0 100.0 99.9 99.9 229,000 1,288,000 1,517,000 1,119,600 1 ,300,700 2,420,300 City Country Total 20 633 653 100.0 100.0 100.0 184,500 585,500 770,000 City Country Total 30 1,100. 100.0 100.0 100.0 260,000 838,000 City Count17Total 1,130 29 1,105 1,134 49 912 100.0 100.0 100.0 961 100.0 100.0 100.0 City Country Total 93 2,723 2,8l£ 100.0 100.0 100.0 City Country Total 84 1,189 1,273 100.0 100.0 100.0 City Country Total 50 719 100.0 100.0 100.0 City Country Total T& 96.5 86.7 88.2 89.6 92.6 91.2 6.0 10.4 5-7 7.8 91.4 89.3 7.0 3-9 4.7 93-1 88.4 89.5 5.1 5.4 5*3 121,000 81.8 824,000 74.5 75.6 6.2 7.5 7.3 665,400 820,400 77.0 73.9 74.5 6.7 6.9 6.9 354,000 1 ? 494,000 82.2 85.1 1,648,000 84.6 4.4 4.4 158,500 700,000 162,500 76.5 71.7 72.8 8.9 9.8 ' 9.7 92.1 270,400 432,900 1.6 5.9 86.6 3.8 82.6 8.0 6.1 6.6 1,098,000 703,000 155,000 541,500 98.1 7-6 5.0 83.3 3.8 City Country Total 84 M 66 100.0 1,650 99.9 99.9 City Country Total 71 1,107 1,17S 100.0 100.0 100.0 122,400 572,100 694,500 73-3 7.4 10.1 10.2 City Country Total 114 2,518 100.0 229,200 1,611,900 1,841,100 87.3 88.2 88.1 2.5 3.2 3.1 100.0 3,266,600 10,589,800 13,856,400 87.8 83.5 84.5 7.1 5-4 5.8 City Country Total Excludes foreign bank agencies. 7 573 Per Cent of Check Volume Increase NowSince Pre February printed 1963 2,628 687 15,161 15,645 99.4 99.4 99.9 99.9 170,900 719,300 890,200 74.5 75-7 81.9 71.2 SECOND DISTRICT MICH PREPRINTING SURVEY BY STATES AND COUNTIES August 1963 Banking Offices to Which Per Cent Checks are Sent Preby FRBNY printing Total Daily Average Check Volume Sent to All Banking Offices Per Cent of Check Volume Increase Now Since Pre - February printed 1963 New York City Bronx Kings New York Queens Richmond 5 40* 4 0 Total 50 100.0 1 ,030,766 89.2 10.7 5 15 8 14 8 14 4 4 4 2 5 12 14 35 4 6.. " 5 8 5 1 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 102,043 4,026 11,712 99.2 85.1 95.1 89.4 96.3 95.6 98.1 88.3 97.1 96.3 93.1 90.5 95.1 95.4 94.1 96.1 89.4 92.5 0 1 100.0 100.0 100.0 100.0 - 2W York State Albany Allegany Broome Cattaraugus Cayuga Chautauqua Chemung Chenango Clinton Columbia Cortland Delaware Dutchess Erie Essex Franklin Fulton Genesee Greene Hamilton Herkimer Jefferson Lewis Livingston Madison Monroe Montgomery Nassau Niagara Oneida Onondaga Ontario Orange Orleans Oswego ... 6 14 5 4 7 7 6 64 11 14 15 7 20 4 9 * Excludes foreign bank agencies. (Over) 1,106 3,797 1 ,016,044 9,819 0 5,395 5,711 4,201 5,465 3,571 3,707 1,332 2,521 7,064 19,257 44,568 2,299 2,302 2,519 2,993 3,482 296 1,801 5,129 1,067 2,281 3,310 11,296 4,945 122,933 5,179 15,725 30,040 4,384 18,261 1,166 4,189 100.0 92.3 89.4 64.2 - 93-5 68.2 86.6 95.1 83.8 93.5 94.1 93-9 94.2 94.8 92.8 90.2 91.6 87.9 88.7 97.9 91.3 8.3 5.0 10.7 4.7 - 4.9 4.4 9.6 4.3 7.4 4.1 2.1 11.5 7.6 7.7 6.8 3.1 3.4 4.1 8.3 8.8 3.4 5.7 21.5 .9 9.8 4.7 4.4 .9 7.8 1.3 3.4 1.5 0 1.3 7.7 8.8 2.1 5.4 2 Banking Offices Per Cent to Which Pre Checks are Sent printing by FRBNY New York State (Cont’d) Otsego Putnam Rensselaer Rockland St. Lawrence Saratoga Schenectady Schoharie Schuyler Seneca Steuben Suffolk Sullivan Tioga Tompkins Ulster Warren Washington Wayne Westchester Wyoming Yates Total 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 6,555 2,697 8,156 19,081 7,176 3,110 100.0 100.0 100.0 90,707 2,561 1,233 85.2 87.2 98.2 90.1 76.2 582 100.0 724,900 94.3 3.5 100.0 1,755,666 91-5 7-8 100.0 69,433 100.0 42 27 13 7 25 20 10 7 9 6 24 10 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 200 Connecticut Fairfield Virgin Islands and Puerto Rico Total Total Second District Per Cent of Check Volume Increase Since Now Pre Februar; printed 1963 12 3 6 7 17 5 5 2 4 5 14 53 11 6 4 15 8 6 8 14 9 2 Total New York City and State New Jersey Bergen Essex Hudson Hunterdon Middlesex Monmouth Morris Passaic Somerset Sussex Union Warren Total Daily Average Check Volume Sent to All Banking Offices 4,925 3,178 5,988 11,654 8,782 3,677 7,900 994 866 1,620 9,588 51,266 7,016 91.7 95.8 96.2 95.2 92.0 87.8 94.1 83.4 92.7 95.4 88.5 95-2 93-5 93-5 81.7 95.2 91.3 96.4 8.4 6.6 3-2 3.5 1 0 -3 6.2 3.0 12.4 2.1 6.2 3-3 3.7 9.7 2.9 4.9 5-2 13-2 8.8 •3 4.7 6.5 i3.:2 4.3 120,785 80,500 89.8 89.9 6,913 51,977 28,282 30,922 93-5 93-9 85.5 95.7 35,820 15,129 7,336 127,099 6,421 92.7 84.1 89.4 7-0 6.4 7.3 2.1 5-1 5.1 .6 4.5 14.4 2.5 100.0 580,617 90.5 8.1 27 100.0 72,714 93-3 4.2 IT 94.1 11,256 70.9 12.2 876 99.9 2 ,420,253 91.2 7.8 100.0 98.6 92.6 16.0
@FedFRASER