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Show RESERVE BANKS HAVE IEW CLEARING FLAW Circular Is Issued Setting Out the Advantage of the Change. "WASHINGTON, April 29. The federal fed-eral reserve board announced today that it would put into effect June 15 its new plan for country-wide check clearing and collection. Ui'dor the plan the actual cost of clearing and collection of checks will be assessed against, member bunks in proportion to their use of the system. A circular announcing its decision wns mailed todnv by the board to 700.000 member banks. 'The important features of the plan, the announcement says, are as follows: The federal reserve banks will ac- cept at par all checks from member banks whether drawn against other member banks, non-member banks or private banks. An exception is made at the outset in the case of checks rlrawn against non-member banks which cannot be collected at par. All checks thus received from j member banks will be given immediate imme-diate credit entry although amount thus credited will not be counted as reserve, nor become available until collected. In order to enable member banks to know how soon checks sent in for - collection will be available either as reserve or for payment of fhpcks drawn against them, time schedules will be furnished to member banks. The actual cost without profit of the clearing and collection of checks will be paid by the federal reserve bank and assessed against the member mem-ber banks in proportion to their sendinga. The whole plan is based on generally gen-erally accepted principles under which clearing and collection plans have long been onerate-l. A federal reserve bank will not dbit a member mem-ber bank's reserve amount with items forwarded for collection until the remittance of the member bank in rmvment of such item? shall have had time to reach the federal reserve re-serve bank. I . |