FEDERAL RESERVE BANK

OF NEW YORK

Accounting Department [ Circular No. 483, August 24, 1922 "I** * L Reference to Circulars 297 and 298 J

INSURANCE OF SHIPMENTS OF CURRENCY, COIN AND SECURITIES

New Declaration Form to be Used

Provisions for Insuring Registered Mail Shipments

To all Member Banks in the Second Federal Reserve District:

To facilitate the reporting of shipments to us of money and securities underour registered mail insurance policies, we have revised our form of insurance declarationand take pleasure in sending you a small supply herewith. Upon request we shall for-ward additional copies. The form is self-explanatory and is designed to be used onlywhen shipment is to be insured by us.

Our policies permit the insurance of any registered mail shipments of currencyor securities to us provided the shipping bank complies with the following conditions:

1. Please forward the insurance declaration, on the form provided, by the samemail as the shipment; copy No. 1 under separate cover, and copy No. 2 enclosed withthe shipment.

2. Use separate declarations for currency shipments and securities shipments.Do not include both on the same declaration.

3. The preparation of the shipment should be witnessed by two persons, at leastone of whom will have constant custody of the package until deposited in the post office.

4. In the case of securities be sure to state the amount for which you wish insur-ance in the space provided for that purpose. This amount should be reasonably approxi-mate to the actual market value and may be either more or less than the face value.

5. Make the shipment by registered mail. Under no circumstances can a ship-ment be insured unless registered.

6. Enclose all shipments in strong wrappers or envelopes, well secured, and inall cases sealed with wax, or in cloth or canvas bags sealed with lead seals.

7. Under our policies all shipments are insured against the risks of transportationfrom the time of leaving the office of the sender until delivered to the office of theaddressee, with the exception that there is no insurance against lack of fidelity on thepart of any employee.

s

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"̂ All shipments of paper currency in denominations of $5. and above, declaredfor insurance under the conditions herein named, will be duly insured by this bankwithout expense to the shipping member bank. (Shipments of one and two dollar billsand shipments of coin should be made by express, charges collect as heretofore, and notby registered mail.)

Insurance of Securities at Shipping Bank's Expense

Banking institutions desiring to do so may also avail themselves of theprivilege of insuring in the same way shipments addressed to us consisting of

(a) Coupons and maturing bonds forwarded for collection,

(6) Securities forwarded for safekeeping, for sale or redemption, or to beheld as collateral either for loans or government deposits, or for exchange ofdenomination, conversion or exchange for registered, etc.

Such shipments, however, will be insured at the expense of the shipping bank. For thisreason it is suggested that where banks hold registered mail policies of their own theymay find it more convenient to insure shipments of the kind mentioned in this paragraphunder their own policies.

Temporary Liberty Bonds in Exchange for Permanent Bonds

This circular in no way affects the arrangement already existing for the ship-ping of temporary bonds of the several Liberty Loans for exchange for permanent bondsof the same issue. In such cases the transportation charges and risks of shipment areprovided for by the Government. Please continue to make such shipments exactly asheretofore in accordance with the instructions contained in our circular No. 259, sent toyou on March 5, 1920.

Amendments

Our circulars No. 297 entitled "Shipments of Paper Currency, Coin and Bul-lion" and No. 298 entitled "Collection of Maturing Notes, Bills and Other CollectionItems" are supplemented'and amended as herein provided.

Very truly yours,

BENJ. STRONG

Governor

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A.D.1MM 11-21 INSURANCE DECLARATION

FEDERAL RESERVE BANK OF NEW YORKAUDITING DEPARTMENT

FEDERAL RESERVE P. O. STATIONNEW YORK CITY

(NAME OF BANK)

(CITY AND STATE) .

DATE

Dear Sirs:

W e have shipped to you today under separate cover by registered

mail the following cunency to be insured under your policies.

Kindly credit our account with total.

Very truly yours,

TOTAL CREDIT $ :

FORWARD COPY NO. 1 BY ORDINARY MAILENCLOSE COPY NO. 2 WITH SHIPMENT

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TO BE ENCLOSED IN CURRENCY SHIPMENT I

FEDERAL RESERVE BANK OF NEW YORKRECEIVING DIVISION

FEDERAL RESERVE P. O. STATION DATENEW YORK CITY

Dear Sirs:

This package contains currency in the amount listed for the credit

of our account.

Kindly credit our account with total.

Very truly yours,

(NAME OF BANK)TOTAL CREDIT $̂

(CITY AND STATE)

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