Show Out of Town Charge to Stop Innovation for Reserve Banks Notification Reaches Salt Sali LakeS lake AL ALT T LAKE member banks of the federal reserve system have S SALT been notified that beginning tomorrow the New York Federal Reserve bank will forego existing service charge against member banks of 1 cent per item on all out of town checks turned in for collection which c can n be handled at par This abandonment of ot service charge will be followed follow d by bf the other federal federal federal fed fed- eral r reserve serve reserve banks To enable member banks to have funds on deposit with federal r reserve erv bank Immediately immediately immediately im Im- im- im mediately available in any other federal reserve district the bank has arranged to make tele telegraphic transfers of ot funds to I banks In other districts absolutely at par no charge even being made madle for cost of the That there may be beno beno beno no delay in the telegraphic transfers and other business between federal reserve banks private telegraph lines between all reserve banks and their branches as well as with federal reserve board in Washington Washington Wash Wash- ington have been installed Requirements that federal reserve banks collect checks etc was Incorporated incorporated incorporated In federal reserve act Mt not only to provide an economical and direct method of collecting checks but for the more Important purpose of reducing the float caused by y indirect routing of ot checks as aswell aswell aswell well as so called reserves created thereby Officials C anticipate that suspension suspension sus sus- I Ione l pension o of service e charges will remove one of the principal causes of Indirect routing of out of town checks Balances built up in one ono federal reserve district can be made Immediately available through federal reserve bank without cost In any other such district If all checks are routed direct to the federal reserve bank of the district In which the first Indorsing bank is situated it will materially reduce the float and the at attendant attendant attendant at- at cost and labor of the several banks which handle the checks In addition to the private wires federal federal federal fed fed- eral reserve banks at Boston New York and Philadelphia are connected with the treasury by private telephone wire and reserve banks in those cities can get In touch with each other at a moments moment's notice Through the eleven branches of ot federal reserve banks now In operation it has become possible to reduce time of ot collecting collecting col col- col- col checks drawn on these branches and on banks in their district A revised time schedule has accordingly been ar ar- ar ranged A par list showing banking Institutions on which checks can be collected by federal federal federal fed fed- I eral reserve banks at par Is published and distributed by federal reserve board from time to time In September 1916 there were 1656 banks on the par list on April 15 IS 1918 there were and the number is steadily increasing It I is believed the banks on the par list will wi Include in include In- In clude dude over 95 per cent of volume of checks which member banks in this district district district dis dis- are called upon to collect No member bank Is required to use the check collection system nor are any formalities formalities for for- or resolutions required before it may be used A member bank banle may send checks for collection through federal re reserve reserve reserve re- re serve bank regularly occasionally or not at all or may collect them through prese pres- pres e nt at correspondents or In any other manner manner man man- ner ncr considered advantageous Federal reserve bank will receive from member banks checks and drafts drafs drawn drawn on banks at par list published by federal reserve board |