FEDERAL RESERVE BANK OF DALLAS

DALLAS, TEXAS 7S222

Circular No. 83-79 June 27, 1983

BULLETIN 5

CURRENCY, COIN AND FOOD COUPONS

(Revisions)

TO ALL DEPOSITORY INSTITUTIONS IN THE ELEVENTH FEDERAL RESERVE DISTRICT:

Enclosed are revisions to Federal Reserve Bank of Dallas Bulletin 5, Currency, Coin and Food Coupons, which reflect changes to Paragraph 3.35 and Paragraph 4.25, "Entries to Depository Institution Account," and to Supplement A of the Bulletin. These revisions are a result of changes to accounting procedures for effecting cash order and deposit entries and changes in the cash transportation subsidy program as previously announced in this Bank's Circular No. 83-68 dated May 13, 1983 and Circular No. 83-64 dated May 12, 1983, respectively.

The revisions to Bulletin 5 will be effective immediately. Please substitute the enclosed pages for the corresponding pages in Volume 1 of your Regulations Binder.

If you have any questions concerning Bulletin 5, please contact Mary M. Rosas, (214) 651-6336 at the Head Office; William L. Wilson, (915) 544-4730 at the El Paso Branch; Luke E. Richards, (713) 659-4433 at the Houston Branch; or Tony G. Valencia, (512) 224-2141 at the San Antonio Branch.

Additional copies of this circular will be furnished upon request to the Public Affairs Department, Extension 6289.

Sincerely yours,

H. Wallace First Vice President

Enclosure

Banks and others are encouraged to use the following incoming WATS numbers in contacting this Bank: 1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the extension referred to above. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library ([email protected]) FEDERAL RESERVE BANK OF DALLAS BULLETIN 5

3.10 Closing hours and transportation schedules arrival and delivery on a business day. Postal This Bank is closed on Saturdays, Sundays, and authorities have ruled it unwise to permit the official bank holidays as set forth in Supplement dispatch of money which would be held over at A to Bulletin 1. Depository institutions are asked the receiving post office when the office is closed. to keep this in mind as well as armored carrier 3.30 Verification of shipments and registered mail delivery schedules in an­ ticipating their cash requirements. Orders for All currency and coin received from this Bank currency and coin must be received at this Bank should be verified as follows: no later than 2:00 p.m. two business days prior to (a) Within three business days of receipt by those the delivery date. depository institutions served directly for their 3.15 Method of shipment own use more than once a week. (b) Within five business days of receipt for those Shipments of currency and/or coin from this Bank depository institutions served directly for their to depository institutions will be made by armored own use once a week or less frequently. carrier, fourth class insured mail, or registered mail, whichever method is appropriate under the (c) Special time arrangements may be made with circumstances. Depository institutions electing this Bank where depository institutions receive not to utilize armored car or registered mail deposits for distribution to their branches. routes scheduled by this Bank are responsible for The money shipment should be verified by two or making their own shipping arrangements. more responsible employees in the presence and 3.20 Advice of money shipment view of one another. Currency should be verified by piece count; whereas, coin may be verified by A mail advice will be sent to depository institu­ piece count or weight. Until verified, the currency tions covering each shipment made by registered and coin should be held under dual control. If a and/or insured mail and, if the shipment is not discrepancy is found upon verification, this Bank received promptly, the Head Office or Branch should be informed as soon as possible. If the ex­ making the shipment should be notified im­ ception relates to currency, the package strap mediately by telephone or telegraph. and a copy of the shipping advice should be In addition, a daily statement will be sent to each returned to this Bank. If the exception relates to depository institution listing money shipments, as new currency strapped in a Bureau of Engraving well as all other transactions with this Bank. This and Printing strap, the note series, District letter statement should be reconciled by depository in­ in the seal and serial number of missing notes stitutions on a daily basis to insure that all (determined by serial numbers on each side of the shipments have been received and that their ac­ discrepancy) are also required. If the exception count has been charged correctly. relates to coin, the attached tag(s) should be 3.25 Postal limitations returned to this Bank. If an exception is found in a bag of Mint coin, the Mint bag should be returned The United States Postal Service has imposed cer­ to this Bank. Where disbursement of currency or tain limitations and restrictions on the shipment coin is made without verification, this Bank will of money to certain towns. Depository institutions assume no liability. affected have been apprised of these limitations and restrictions, and their cooperation in this These guidelines all assume that the recipient respect is solicited in placing orders with this depository institution (including its branches) Bank. Depository institutions are also requested, verify the deposit. Claims by client institutions as a practical measure, to place orders for cur­ other than the recipient depository institution or rency and coin so that they can be dispatched for its branches will not be honored.

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3.35 Entries to depository institution account Currency that cannot be bundled as described in We will charge the amount of currency and coin the table, because of insufficient quantities of shipment orders to the account on our books main­ notes, must be retained until enough currency of tained or used by an ordering depository institu­ the appropriate denomination has been ac­ tion on the anticipated delivery date as deter­ cumulated to complete standard strap and bundle mined by us. units. Currency denominations cannot be mixed within a strap or bundle. If the shipment is by carrier under contract with us or by registered mail and is not received by the However, institutions which do not otherwise depository institution on the anticipated delivery deposit currency during the month may, once date, we will make appropriate adjustments. each month, deposit less than full bundles of the $20 denomination (in minimum units of 100 notes If the depository institution arranges or contracts each) and deposit less than full packages of $50 for transportation of a shipment from us and the and $100 denominations (in minimum units of 50 shipment is not received, the charge will not be notes each). It should be noted that such transac­ adjusted. tions would require prior approval of the Reserve For shipments debited after shipment by this Bank. Bank, we reserve the right to adjust the time of Under no circumstances should rubber bands, debiting when we deem such adjustment neces­ pins, or clips be substituted for paper straps. sary, and we will endeavor to give notice of such Each unit must be securely tied so as to avoid adjustment. collapse while in transit. When shipments are The foregoing provisions do not alter the risk of made by mail, the weight of all units allowed in loss provisions in this Bulletin. one sack and under one registry is determined by Section 4, SHIPMENTS TO THIS BANK postal regulations. Shipping costs can be reduced by placing a number of units in each sack; 4.00 Control of shipments however, the sack should not exceed the weight All shipments will be prepared and verified by allowed. two or more responsible employees of the sender On the date of shipment, if the currency is sent by and the sealed package should remain under the registered mail, a notice must be mailed, under control of the same two employees until delivered separate cover, to the Cash Department of this to and receipted for by the armored carrier, or Bank, giving the date, amount, and description of until deposited and registered at the post office. the shipment. All other copies of the advice, ex­ 4.05 Preparation of currency shipments cluding the depositing institution’s copy, must be All currency included in each shipment must be enclosed with the shipment. If the currency is sent straightened, sorted and packaged by denomina­ by armored carrier, the original copy of this tion, face and top up, and be enclosed in standard notice must be handed to the armored carrier ABA color coded paper currency straps, each representative. With the exception of the strap containing 100 notes, with the name and depositing bank’s copy and copy provided the car­ location of the depositing institution, date of rier, all other advice copies should be enclosed verification, amount, and identification of the with the shipment. A supply of forms for this pur­ employee counting the package appearing on pose will be furnished upon request. each strap. Torn notes should be carefully mended on the Individual straps must be bound in bundles as back with transparent cellophane tape in such a follows: manner as to preserve the original design and Number Dollar visual identification of the face of the notes. Pins, Denomination of Straps Amount clips, and other metallic substances, if not re­ Ones 10 $ 1,000 moved, could cause injury to the handlers and Twos 10 $ 2,000 damage the machinery used in processing unfit Fives 10 $ 5,000 currency. Failure to comply with the foregoing Tens 10 $ 10,000 retards the process of handling, and may delay Twenties 10 $ 20,000 final verification. Fifties 1—10 $ 5,000— 50,000 The contents of all shipments must be enclosed in Hundreds 1—10 $10,000—100,000 a cloth or canvas bag, and must be well secured

6-83 4 FEDERAL RESERVE BANK OF DALLAS BULLETIN 5 and sealed in a m anner acceptable to the post office, ex­ registered and/or insured mail in accordance with ex­ press office, or armored carrier at the place of mailing isting postal regulations. or dispatch. The seal on the bag should bear the identity 4.25 Entries to depository institution account of the depositing bank. In general we will credit the account on our books main­ Only unfit and excess fit currency should be deposited tained or used by a depository institution on the day we with this Bank. Depository institutions will not be receive its deposit of currency and coin. However, for a allowed to deposit fit currency and then order the same depository institution which elects to utilize the Bank’s denomination of currency within five business days. alternative credit procedures, credit will be given on the Deposits should be presorted by strap as to fit and unfit day it sends currency and coin to us if we receive currency. notification in approved form before 2:00 p.m. that day. 4.10 Method of shipping currency If notification is received late, we will give credit on our Currency of all denominations shipped by depository in­ next banking day. If notification is not given, we will stitutions should be forwarded by armored carrier or give credit on the day we receive currency and coin. In registered mail. This Bank will provide transportation most cases, the alternative procedure is beneficial only arrangements for those depository institutions that wish to those depository institutions which are exempt from to avail themselves of that service. Charges will be reserve requirements, or whose vault cash exceeds its made in accordance with the prevailing prices. reserve requirement. (Reference Supplement A.) A depository institution may If a depository institution arranges or contracts for make its own transportation arrangements. Shipments transportation of a deposit to us, including a deposit by by registered mail must only be made when armored mail, and we do not receive it on the anticipated date of carrier arrangements cannot be made. delivery as determined by us, the credit will be 4.15 Preparation of coin shipments reversed. Coin must be shipped to this Bank loose in heavy canvas For shipments credited prior to receipt by this Bank, we bags, each bag containing coin of only one denomina­ reserve the right to adjust the time of crediting when we tion. A standard ABA color coded tag should be affixed deem such adjustment necessary, and we will endeavor to each bag showing the name of the shipping depository to give notice of such adjustment. institution and denomination of coin. The bags of coin The foregoing provisions on credit, do not alter the risk must be securely sealed and the seal should bear the of loss provisions in this Bulletin. identity of the shipping depository institution. Coin shipped to this Bank must be sacked as follows: Section 5, MISCELLANEOUS CURRENCY AND COIN Dollar 5.00 Counterfeit or altered Denomination Amount In accordance with Treasury Department regulations, all counterfeit or altered currency and coin must be Cents $ 50 delivered to an agent of the United States Secret Ser­ Nickels $ 200 vice. Accordingly, all counterfeit currency and coin Dimes $ 1,000 received by this Bank will be delivered to a Secret Ser­ Q uarters $ 1,000 vice Agent whose receipt, fully describing the counter­ Halves $ 1,000 feit currency or coin, will be mailed to the depositor. Dollars-Eisenhower $ 1,000 Dollars-Susan B. Anthony $ 2,000 5.05 Foreign On the date of shipment, if the coin is sent by registered Foreign currency or coin will not be accepted for credit or insured mail, a notice must be mailed to the Cash and, if received, will be returned to the shipping Department of this Bank, giving the date, amount, and depository institution. description of the shipment. If the coin is sent by ar­ 5.10 Gold coin and gold certificates mored carrier, this notice must be handed to the ar­ The executive order of the President of the United mored carrier representative. A supply of forms for this States requiring the surrender of all gold coin and gold purpose will be furnished upon request. certificates is still in force, with certain exceptions. Any 4.20 Method of shipping coin gold held or received on deposit should be sent to the Coin of all denominations shipped by depository institu­ Federal Reserve Bank for the account of the Treasurer tions should be forwarded by armored carrier if this of the United States. Gold coins having a recognized service is available. If a depository institution is not on special value to collectors of rare or unusual coins, in­ an armored route, shipments of coin should be made by cluding all gold coins made prior to April 5, 1933, and

6-83 5 FEDERAL RESERVE BANK OF DALLAS BULLETIN 5 gold certificates of the type issued before Janu­ Coins containing lead, solder, or substances ary 30, 1934, have been exempted from the sur­ which will render them unsuitable for coinage render requirement, however, and may be re­ metal will not be accepted by the U.S. Assay Of­ tained by the persons owning them. fice. Coins that are bent or twisted out of shape, 5.15 Mutilated currency but are readily and clearly identifiable as to gen­ uineness, and coins that have been reduced in A mutilated bill will be received at its face weight by natural abrasion only, are not regarded amount if clearly more than one half of the as mutilated and will be accepted at their face original bill remains. Fragments that are not amount. clearly more than one half should be sent directly to the Department of the Treasury, Bureau of Section 6, RISK OF LOSS Government Financial Operations, Room 132— 6.00 Outgoing transportation Treasury Annex No. 1, DCS/BEPA, Washington, On shipments to depository institutions, this Bank D.C. 20226, in accordance with Treasury Depart­ will assume the risk of loss of coin and currency ment Circular No. 55, copies of which will be fur­ during transportation under contract to this Bank nished upon request. Such fragments will be ex­ from the time this Bank delivers the coin and cur­ changed at face value only if the Treasurer of the rency to and receives a receipt from the carrier United States is satisfied that the missing portions or the United States Postal Service until the coin have been totally destroyed, and his judgment is and currency is delivered to the addressee or its based on such evidence of total destruction as he agent or is returned to this Bank. deems necessary and is final. 6.05 Incoming transportation 5.20 Mutilated coin On shipments to this Bank, this Bank will assume Mutilated coins will not be accepted at their face the risk of loss of coin and currency during value at this Bank or by the Treasurer of the transportation under contract to this Bank from United States, but should be shipped to the United the time a depository institution delivers coin and States Assay Office, 32 Old Slip Street, New York, currency to and receives a receipt from the car­ New York 10005. Coins are considered mutilated rier until the coin and currency is delivered to when punched, clipped, plugged, fused together, this Bank. This Bank does not assume the risk of or when so defaced as to be not readily and clear­ loss for incoming mail shipments. ly identifiable as to genuineness and denomina­ 6.10 Exceptions tion. This Bank will not assume any risk of loss in any Mutilated coins are not redeemable at their face of the following circumstances: value. They are redeemable at their bullion or A. Any loss in excess of $10,000,000 on all metal value as established from time to time by shipments to this Bank by any one office of a the Director of the Mint. Mutilated coins should depository institution on any one day. be forwarded at the sender’s risk and expense. B. Any loss caused by or resulting from: The U.S. Assay Office in New York will only ac­ (1) hostile or warlike action in time of peace or cept shipments of mutilated coin in minimum lot war, including action in hindering, combating or sizes as follows: defending against an actual, impending or ex­ pected attack, Denomination Weight (a) by any government or sovereign power (de Cents 15 lb. jure or de facto), or by an authority maintaining Nickels 5 lb. or using military, naval or air forces; or Dimes, Quarters, Halves, (b) by military, naval or air forces; or Eisenhower Dollars, 1 lb. (c) by an agent of any such government, Susan B. Anthony Dollars 8 oz. power, authority or forces;

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SUPPLEMENT A

ELEVENTH DISTRICT 1983 PRICE SCHEDULE CURRENCY AND COIN TRANSPORTATION SERVICE

VIA ARMORED CARRIER

Cit^_Surburbanjind_NJewMexico Over-The-Road

Per Stop Charge:1 Per Stop Charge:2

Federal Reserve Zone Office 1 3

Dallas $ 8 26 $36.39 Houston $16 37.26 El Paso $ 6 79 79 63 63 36.10 San Antonio $ 6 36.18

Liability Charge: Liability Charge: None $0.24 per $1000 of value carried each way

Bag Charge: Bag Charge: $0.50 per bag of coin and currency3 $0.28 per bag of coin

VIA REGISTERED MAIL4

Actual cost of postage and insurance, up to a maximum charge of $50.00 per shipment, one way either to or from a Federal Reserve Office.

'For a single incidence of city and suburban armored carrier service, the total charge will be the sum of the per stop charge and bag charge. The minimum total charge will be $10 per incidence.

2The subsidized portion of the per stop charge will be adjusted to full cost recovery by Year End 1983. The subsidy cap $175 (June 30 - September 28, 1983) and $400 (September 29 - December 28, 1983) applies to the over-the-road (tariff) per stop charge plus liability charge. The bag charge is a separate charge, exclusive of these maximums. The subsidy cap will not apply to City, Suburban, and New Mexico service. The cash transportation subsidy will be eliminated effective December 29, 1983.

3The bag charge for currency will be assessed on the actual number of bags shipped, with no bag to contain more than 20,000 notes.

4Due to postal limitations a maximum of $100,000 is all that can be delivered on a single postal route regardless of the number of financial institutions receiving currency on that route.

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