frsbog_mim_v09_0028.pdf

EX-OF'f'ICIO MEMBERS W. P. G. HARDING, GOVERNOR ----, VICE GoVERNOR ADOLPH C. MILLER WILLIAM G. MCADOO

SECRETARY OF THE TREASURY CHAIRMAN

CHARLES 5. HAMLIN

JOHN SKELTON WILLIAMS COMPTROllER OF THE CURRENCY FEDERAL RESERVE BOARD

WASHINGTON X-1266

Novanber 2, 1918 ..

SUBJ...::CT: Lu.dit ani Tra:.1sit Confermce, Chic'lgo, Conc;ress Hotel, 10 a.m., November 11, 1918.

Dmr Sir:

In connection \vith the conference. sugc;sr:,ted

J. A. BRODERICK, SECRETARY L. C.·· ADELSON, ASSISTANT SECRET ArtY W. T. CHAPMAN. ASSISTANT SECRETARY W. M. IMlAY, FISCAL AGENT

ADDRESS REPLY TO

FEDERAL RESERVE BOARD

topics have be :.m rocei ved and seve1·al copies of .s, tentative

program are submitted he:cewith so th::tt those '1IDO v1ill

attend may acquaint therabelves with the subjects th·1t will

be taken up. The reprosent:1.tives of the ban. .. l.rs will, of

course, be }:Br:;U.t ted to present such other ra8ttors as may

suggest tha:1se1ves.

1--s stated in Governor R:trcli:cJg •s tclegran of October

23rd, the Board pa:cticubrljr dasL·es that t~1e rep:cesentatives

of the vtrious banks be in o. position to thoroud1ly cUscu.ss

the float situation cmd the bearing it has upon the necessity

for a ~·evisi en of time schedules.

If my further information is ~esired as to the

coufererr~e or arrange:nents 1t Chica .. ;,u 9 please wire Mr. C. R.

McKay, Deputy Gove1·nor, F:-deral Reserve B"lnk of Chic3.go.

Ple3.se acknowl :clge receipt.

Vory truly yours,

The Govemor. Federal Reserve Bank, Assistaut Secretary.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

.. ... X-1266 A

COPY OF GQV_;RIJOR HJdDL.JG'S T.:ll..GGRLi.v1 OF OCTOB& 23, 1918,

SUGG-.:.:STHJ3- THAHolT JJTD LUDIT COm'.:.~.IL.:llC ~ ·~o B.::~ .l!LLD IN

CHICAGO, iv10lWl""Y, l;OV.dviBLR 11, 1918:

"In view of the many inquiri.es raised as to transit

questions and .'lccounting between Reserve Banks, B~J<'lrd

suggests that a confer enc e b8 held in Chic ::tJO 2.loniay

November eleventh and tba. t Ga ch b:'lll.k have in at tenda.nc e the

officer in charge of the transit department :md the 1udi tor

of the Bttnk. The 'banks 'lre ~ceque ..,ted to suggest by tele-

graph topics for dis<r:1ssion. A tentative program will be

prepsred and sent to each bank. Board reg,llests th::..t each

bank make a study Q!_its 0\Jim. flO!'l.t situation v11i.th view of

determining the 1.ctual time .it talt:es to obt:i.l£2~

settlement for items hand.led eiti'.er for its~1 account or

) for the :.10 count of' other Federal Reserve banks an:J that it. s

transit representative be prewred to discu.&s vvitil represeu-

tatives fro::J. other Federal Res·Jrve banks the desirability of

ad,justing tlJe interdistrict time schedules. Please advise

names of your representatives who v!f.i.ll attend, also '1.dvise

McKay, Chic1.go, vno will upon request make nece::osary hotel

reservations."

... Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

X-1266 B

Chic age, Illinois.

Congress Hotel, 10:00 a.m. November 11, 1918.

... * * * *

Federal Res 8l'V e Banks represented as followf':

BO.:>TON: Mr. Willett Mr. Cu.rri er

NBW YORK: Mr. Hendriclm Iviro Jefferson

PHILlLD.&:..PHIA; .Mr. Dyer Mr. Le Bold .Mr. Gam on

C LEV.ill.AND: Mr. Strater Mr.- Wagner

RI CinvlOJ'ID: Mr. Blackburn Mr. Cadwallader

ATU..NTil..: Mr. Pike Mr. Albertson

CHICAGO: Mr. Burgess Mr. B8.Chrtan

ST~LOUIS: ~ilr. Lttebery Mr. Novy

) MINH~FOLIS~ Mr. Long Mr. Core

l(ANSAS CITY: Mr. Anderson or Mr. Wardell Mr. Cross

DALLAS: ilr. Teylor Mr. Weiss and possibly i.1Ir. Gentry

SLN FRANCISCO:

Sug.;ested topics attached.


. X-1266 0

Fedel'Sl Reserve iBanJr. a~counts:

(a) Uniform sta.tenents.

(b) Stat erront s to show both debits and crEdits.

~ggested ]?z.:

1-7-9-10

2

(c) Desirability of pr8sent system of m~:in{~ 9 . correcting aJ.tr:l.es aid entries for r9turued. it ellll by deductions from statements.

(d) Currency shipment a.dvic es to show cost. 9

(e) Statements to be rendered by branch b6.tlks direct to other Federal RescJrve banks.

1

(f) Exchange of statements between branches. 1

(g) General adoption of petty differences plan.. 7

ACc(Mnting Methcxls:

(d) Resumption o £ lAmlop Anderson plail

Gold Set tleman. :Fund:

7

(a) Uniform statenents showing detail of cred.i ts 4 wired.

{b) Peyment for :redisoounts between Federal Re8erve 11 bankS

(c) lkily direc~ settlement by branches tlu-ou~l fund.l2


'(" . - 3 - x- 126G

Gold Settlemer..t Fund (Contim.ed):

(d) Deduction of miscellanems clBrge:: from ~uspense C!'edits.

•("'!.

. '.

(e) Fig;u.res for da5.ly settlements to be wi --:-ed Bosrd ani er,tel~ed 1s of da:l of c:·ed.lts, 7

(f) Proper 17lethods of handling deJ.uc'.;io:.1s froa ?" credits v.hen deductions exceed tota:i. erccEts for day.

(g) Suggestions as to improvancnts.,

Float:

{a) Fede1al Rese:rre 3oard's mothod. of cornputi:og float percen tat,res.

1. Goven1ment 'lccounto 2. 1-Katured collection i tern debits 3. Earning float. 4. non-compliance vii th Board's let t<:r =(·llZl

Forms:

10

(a) t:xch3J.1;;;9 b etweon Feder·al Reserve banks o:f new 5 forms.

(b) Revision of :b"'rom 34-Daily state.nent o.t roso~rces and liabili tics.

(c) Revision of Form 33- Weekly ccLotribution of ho1di ngs of discounted p:1pel· held, - by ::1a tu.d tics and classes.

(d) Fo:rns 95, 96, 97 :L'1.d 97a l,Ionthly reJ.?Oi t of earnings Md ex)ens es.

(e) Form X-538 \'iee:'rcly member banl~ statGilGnt.

(b) 15~ cln.cge on clis~w::.Jred collections. 5

£rrors ia cash letters ani e.;:·:roneous co:lt~·ies previously made:

(-1.) Unifonn method of adjustment. 4


I •

- 3 - X-1266 ~

Collections: Suggested~

(a) Service char0es for un:r:aid ite.11s between Fcde1-a 1 4 Reserve banks •

Collect ion item ~redi t s:

(a) Uniform method of deferring letters co-.1.taining 7 items of dif:'erent availabilities.

Collection t.tem deb::.t s;

(a) Periodical verific<'l.tion by each Federal Rese.'ve bank.

Wire tr1nsfers:

10-12

(-:-1) .J.,1ethoi of identifyil:g trztnsfers of eve:1 d.lTIOUl:ts. 4

(b) Uniform handling between Fed,3ral Hes3 .ve bank 12 and branch of another bank. and bet1Ie2n branches in different districts.


' If •

X-1266 D

TP.hNSIT' CONF~1JTCE

Float: Suggest ed_!?x:

(a) General.

(b) Should National and Federal Reserve bank notes 3 be counted ae float •

(c) Uniform method of computing number of days itens 9 are in process of collection.

Time Schedules:

(a) Revision. 1. demb er banks ~ 3 2. Federal Reserve B'=mks.

Cash Letters :

(a) Description of items. 1

(b) . .?.cknowledged and advised by daily settle·;wnt 3

(c) Return to members of other districts all collection 5-7 itens included in cash letters.

(d) Properly prepa;ced letters by member bmks taking advantage of direct routing. 5

(e) Should member banl'".s be per.11itted to remit for cash letters :1r should their accounts be clla.i·ged after allowir:g proper time to cover. 6

(f) :.ra-L1ner of handling non-cash it ems included.. 6-7

(g) HandliflJ' of items drawn on banks not on par list. 9

(h) Ac 1mowled~ent t.o branches. 12-

(i) Discontinuance of cha.J"l~'i~13 totals of cash letters 7-

(j) Railroad cli:afts md cl1;:,c :s .c.arked "P:J.yable 7-

Cash Items:

(a) Collection or .return of cash items forwarded in 3 error.

(b) Responsibility of Fed8:ral Reserve Banks in collecting 3


••

. .

I

• I ~)

X-1266 J)

Cash It·Jms (Continued): Sugr;ested b1[l

(c) Ha.ndli~ of cash items forwarded by Treasurer of United States as rcegu.hr cash itens a11d not as special items as requested by Treasurer.

Returned !terre and ~lissorts, and ItemL_not on P'1r List;

{a) .. 1ethod of haad.ling.

(b) Direct to Fed ~ral n.'3S8rve bank o:..· bLanches Of items received from me:nbe:.:·s in Fedeial Reserve city or b:.:·anch city, or direct 'GO se .. 1ding banl-c.

(c) !tems on non-]_:)e,.c points to be returned vri thout exception.

{d) Discontinua.nc·3 of obtainin,; .L,eceipts.

Par· List:

5-7-10

7

(a) Advisability of s~parate par list is~ued periodically 4 by ea~1. :B'crl.'3ral J.es3J.~ve bank .:md bro.nch bank in additi<hl to p·u· list issued by Board •

(b) Recognizing changes in par list only a.s sho·;m in par lists a."ld su!;pler.lEmts.

(c) IncrGase L1 non-member points on :?·::.. ,list. 1. J.,lethois used. in va.:;:io<.'.S c,L tricts 2. :3.:t,sc;estions for c:::.inp::i.;n.

Direct Reni ttanc es:

(a) By menber b;'nks in one district to Fedc;J.-al Rese:i.·ve Banlts in other districts.

Direct Sending s:

(a) Adoption of pl·a ct ice b~r '.D:·1ber b:m cs ·to othe1 districts •

.Exch3.n;e Dnfts and Tr.::usfe:c D." ft::>:

(b) Removal of lL~1i t 011 ~xchange drafts

3

4


'··. --

I

- 3 -

Drafts of Fed-.::J.-.'11 Reserve B1llks on Other Federal RGs.; ... vc_ :: tn!u.

( c l :Jisco;:lt 1nuaJ.1ce ui au vice

Purc11ae,..,s o:lr Exchange by Fed,;:u.al Hes§:_ve Bm1g:_:

(a) Uniform ~ethod.

Collect io;.lf> :

(a) Ldvices of p:tyment of time ite:1s.

X1265 r

?

7

3

(b) Uniform methods for :r~ndli:::1g non--cash-0oEec~ic~'1 items 4

Negotiability:

(a) Ite..1s drawn "payable in exchJ.nge ."

\lire Transfers:

(a) Uni fo .on closing hour for m.::h<:ing ent i:ies. 4

Leased W:i:re System:

(a) Adoption of limited list of code woru.s covc.dng common transactions for use between Fed ·:Jral R'3s rve banks •

(b) ihres to ~mmber banks in Fedc::;.al Hes·.;l~.re -:.:i ties cov·:;ring unpaid ite~:lS to be sent ovo.t· leased wire to :B'ede~al Reserve banks. 7.

Forms:

(a) Uaifolmity in ac'.vic e forms .. 1-2-12.

(b) Returned ite..l foL:JS to be c:1a;nged to debit ticket size 7

Hember Banks:

(a) ];leans to incj:ease facilities. 4

Hon-mernber Banks.:

Gener-al:

(a) One officer in each ban-: to handle m2tt31·s botweerJ. 11 FedeJ."al Res e1·ve banks

(b) .Mai 1 s erit by Fede:;.·.9l Res,3:rve b>mks to 'be ·~:o~.lor,it eel in 7 post office wi tho~ J:>O &tage star.a:;>s,.

,r· ...


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