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FEDERAL RESERVE BOARD

WASHINGTON

T O

T H E


May

3 , 1 9 3 3 ,

B - 6 9 1 .

Dear

S i r :

F o r

your information

w e a r e

e n c l o s i n g c o p i e s

o f

correspondence between

t h e

Post Office Department

and.

t h e

Federal Reserve Board r e l a t i v e

t o a

r e v i s i o n

o f

Post Office Order

H o.

373 8, da te d December

l 6 , 1 9 1 9 ,

together wi th

a

copy

o f a

l e t t e r f ro m

t h e

Third As s i s -

tant Postmaster General

t o a l l

l o c a l P o s t m a s t e rs

e n -

c l o s i n g

a

copy

o f

Post Office Order

I

T

o , 3^33

which

became effective Apri l

1 5 t h a n d

supersedes Order

Ho.

3 7 3 8 .

Very truly yours,

E. M. McClelland,

A s s i s t a n t S e c r e t a r y .

Enclosure.

LETTER TO GOVERNORS OF ALL F . R . BAKES

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5 7 0

OFF IC S OF

THJj POSTl-.to.STSE GENERAL

WASHINGTON,

B . C .

February 4, 1933

Hon. Eugene Meyer,

Governor, Fed era l Re se rv e Board,

Washington, D. C.

Ify dear Mr. Meyer:

Reference

i s h a d t o

Order

Ho.

3738

o f t h e

Postmaster General,

dated December l 6 , 1 9 1 9 . which reads a s fo l lows:

Parcels containing currency of one or two dollar denomination

o r

co in

p a t up i n

f i x e d q u a n t i t i e s

a s

original sealed packages,

o f f e r e d f o r m a i l i n g b y t h e Treasury Department, o r i t s f i e l d s e r v i c e ,

or by Federal Reserve Banks o r the ir branches, s ha l l , i f insured a t

t h e t e n

cent rate

o f

insurance,

b e

accepted

a t t h e

f o u r t h - c l a s s r a t e

o f postage and accorded t h e same treatment a s registered mai l .

S imilar parcels containing currency

o f

f ive dol lar denominat ion

s h a l l b e given l ike treatment on payment o f maximum ins ur ance f e e

and the


o f

postage.

Pr ior t o t h e issuance o f Order N o. 3738, t h e Postmaster General

issued Order N o . 9 1 0 0 , dated August 2 0 , 1 9 1 5 , covering t h e acceptance

o f coin and currency of the one and two dol lar denominat ions f o r

insurance

bu t to be

handled

a s

registered mai l ,

and

Order

No. 9128,

dated September 2 , 1 915 , covering coin an d currency of th e on e , tw o

and f ive do l lar denominat ions . A copy o f each o f the se Orders i s

attached.

A t t h e time Order N o. 3738 w as promulgated t h e domest ic insur-

ance fees were 3 cents f o r indemnity n o t exceeding $5; 5 c e n t s f o r

indemnity

n o t

exceeding

$25; 10

cents

f o r

indemnity

n o t

exceeding

$5 0; and 25 c e n t s f o r indemnity n o t exceeding $ 1 0 0 . T he r e g i s t r y

fees were 1 0 c e n t s f o r indemnity i n c o n n ec t i on w i th f i r s t - c l a s s

mail n o t exceed ing $50 and 10 cents f o r indemnity i n connect ion

wi th th ird-c lass reg i s t ered mai l

n o t

exceeding

$ 2 5 .

The pr es en t domest ic insurance fee s an d l i m i t s o f indemnity a r e

5 cents f o r indemnity n o t exceeding $5; 10 c e n t s f o r indemnity not

exceeding $ 2 5 ; 1 5 cents f o r indemnity n o t exceeding $ 5 0 ; 2 5 cents f o r

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57:1

2

indemnity n o t exceeding $ 1 0 0 ; 3 0 cents f o r indemnity n o t exceeding

$ 1 5 0 ; a n d 3 5 c e n t s f o r indemnity n o t exc eed ing $200. These f e e s

and l i m i t s o f indemnity were embodied i n a n A c t o f Congress o f June

2 8 , 1 9 3 2 , e f f e c t i v e J ul y 1 , 1 9 3 2 .

The pr es en t minimum dome sti c r eg is tr y f e e i s 1 5 cent s , provid-

i n g indemnity u p t o n o t exceeding $ 5 , in l i e u o f t h e 10-cent reg i s t ry

f e e which w a s i n f o r c e a t t h e time Order N o. 3738 o f t h e Postmaster

General w as promulgated a n d which carried a n indemnity a t that time

up to $50 .

The wording o f Order N o. 3738 so cms to clearly contemplate that

t h e maximum insurance f e e , which i s now 35 c en ts pro vid ing indemnity

u p t o n o t

exceedi ng $200, sh al l

b e

paid

o n

mai l ings

o f

t h e Treasury

Department

an d

Federal Reserve Banks arid 'branch Federal Reserve Banks,

c o n s i s t i n g o f currency o f

t h e

f i v e

d o l l a r

denomination, which a r e

accepted a s insured mai l but g i v e n a l l t h e p r o t e c t i o n o f t h e reg i s t ry

se r v i c e .

I t i s understood that t h e Treasury Department a t Washington and

t h e Federal Reserve Banks o r branch Fe de ra l Res er ve Banks a t a number

o f c i t i e s where Federal Reserve Banks o r branches a r e l o c a t e d a r e n o w

paying t h e maximum insurance f e e of 35 c e n t s on mai l ings o f currency

o f t h e

f ive dol lar denominat ion,

b u t i t

appears that

a t

o t h e r o f f i c e s

where Federal Reserve Banks

o r

branch Federal Reserve Banks

a r e

located

t h e Federal Reserve Banks and branch Federal Reserve Banks have been

paying t h e o l d maximum do me sti c in su ra nc e f e e o f 2 5 c e n t s o n mailings

o f

currency

o f t h e

five dollar denomination accepted

f o r

insurance

b u t

t reated a s reg i s t ered mai l .

A t t h e time Orders E o s . 9 1 0 0 , 9 1 2 8 a n d 3738 o f t h e Postmaster

General, bearing o n t h e subject o f acceptance o f co in and currency

o f

ce rt ai n denominations from

t h e

Treasury Department

an d i t s

branches

and Federal Reserve Banks and branch Fe de ra l R ese rve Banks, were

i s su e d t h e maximum registry f e e w as 1 0 c e n t s a n d th e domestic insurance

f e e , providing indemnity u p to n o t exceeding $5 0 , was 10 c e n t s . At

t h e

prese nt t i ne , however, the re

i s n o

minimum registry

f e e o f

l e s s

than

1 5

cents ,

a n d t h e

domestic insurance

f e e o f 1 5

c e n t s

i s

required

i n order t o prov ide f o r indemnity u p to n o t exceeding $ 5 0 , which was

t h e amount o f indemnity prov ided f o r b y a 1 0 - c e n t f e e a t t h e time

t h e last Order o f t h e Postmaster General, H o. 3738 quoted above, was

i ssued.

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5 7 3

3

On September 2, 1915» a t th e time t h e arrangement .was entered

i n t o f o r t h e acceptance f o r insurance o f qoin and currency o f th e o n e ,

two and

five dol lar denominations

t o be

treated

a s

registered mai l ,

t h e weight l imit appl icable t o domestic fourth class mail was 50

pounds f o r t h e f i r s t , s ec on d and third zones and 20 pounds f o r t h e

other zones. The weight l imit of four th-c lass parce l pos t mai l f o r

a l l

zones, with

t h e

except ion

o f

c e r t a i n d e s t i n a t i o n s

i n t h e

Phi l ippine

Is lands , i s n ow ]0 pounds a n d a s th e insurance fees a r e based o n u n i t s

o f weight under t h e arrangement referred t o , t h e adoption o f th e

uniform weight l i mi t

o f 7 0

pounds

h a s

r e s u l t e d

i n a

reduct ion ,

t o

some extent,

i n t h e

amount

o f

revenue from insura nce f e e s rec eiv ed

when t h e l i m i t s o f weight were 50 pounds f o r t h e f i r s t , s e co nd and

third zones, and 20 pounds f o r t h e other zones.

I n

view

o f t h e

f a c t that the se shipments

o f

coin

and

currency

o f

one and two dol lar denominations a r e accorded t h e same safeguards a s

reg i s tered mai l , and a s a 15-c.ent insurance f e e i s a t present required

b y la w in order t o provide a l i m i t o f indemnity which corresponded with

t h e

l i m i t

o f

indemnity pay able

f o r a

10- cen t insurance

f e e a t t h e

time

Order N o. 3 738 wa s i ssued , i t i s bel ieved that t h e Department would b e

ful ly warranted i n i s s u i n g a n amended Order requiring t h e payment o f

a n

insurance

f e e o f 1 5

c e n t s

o n

coin

an d

currency

o f th e one- and two

d ol la r denominations, accepted a s insured mail from t h e Treasury Depart-

ment a n d i t s branches, o r fr om Fede ral Res erv e Banks and their branches,

b u t accorded registry treatment and to make i t pla in that t h e present

maximum insurance

f e e o f 3 5

c e n t s

i s t o b e

c o l l e c t e d

o n

such mailings

c o n s i s t i n g o f currency o f t h e fi v e do l l ar denomination. These mail ings

a r e , o f course, a t present accorded t h e f o u r t h - c l a s s r a t e o f postage

whereas t h e m a i l i n g s o f f o u r t h - c l a s s m a t t e r b y t h e general publ ic a r e

required

to be

sealed

an d

f i r s t - c l a s s p o s t a g e p a i d t h e r e o n

i f

they

a r e accepted f o r r e g i s t r a t i o n and accorded t h e p r o t e c t i o n o f th e

r e g i s t r y s e r v i c e .

Furthermore, i t i s be l i eved that t h e maximum r e g i s t r a t i o n o r

insurance f e e charged on any matter mailed b y th e Treasury Department

a n d i t s

branches,

o r b y th e

Federal Reserve Banks

o r

their branches,

unde r s pe ci al arrangements which have been made with t h e Treasury

Department a n d th e Federal Reserve Banks, a n d accorded re gi st ry tr ea t-

ment, should

be 15

cents instead

of 10

cents .

A s y o u a r e doubtless aware, f o r a number o f years t h e expense o f

conducting t h e r e g i s t r y s e r v i c e h a s been considerably i n e x c e s s o f th e

revenue der iv ed t herefrom.

The

Cost Ascertainment Report

f o r t h e

year

ended June

3 0 , 1 9 3 2 ,

shows

a

l o s s

i n

connect ion wi th paid re gi st ra t i on s

o f $9,356 ,475 .40 .

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5 7 3

While pr ov is io n h a s been nadc f o r t h e co l l ec t ion of addit ional

fees (surcharges) on domestic regi ste red mail and domestic insured

mail accorded registry treatment, information so f a r received indicates

t h a t

t h e

ad di ti on al revenue from th is source r/ ill

b e

considerably less

than

t h e

d e f i c i t .

Before taking further act ion i n regard t o t he matter t h e Depart-

ment vrill b e pleased to rece ive and consider such comments as you may

d e s i r e to o f f e r .

By

d i r e c t i o n

of the

Postmaster General.

Very truly yours,

Harold N. Graves,

Executive Assistant to the

Po st oas te r General.

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5 7 4

COPY

Order

Ho. 9100 of the

Postmaster General dated August

20, 1915s

Parcels containing currency

of one or two

do l l a r

denomination

o r

coin when

p u t u p i n

f ixed quant i t i es

a s

or iginal packages

and

sealed only with

wax or

lead

seals when offered

f o r

ma i l i ng

by th e

Treasury Depart-

ment

a t

Washington,

D . 0 . , o r i t s

f i e l d se rv ice , sha l l ,

i f

insured

a t t h e

maximum r a t e

of

insurance,

b e

accepted

a t t h e


of

postage

and

accorded

t h e

same

treatment

a s

r e g i s t e r e d • a i l .

Order

Ho. 4128 of the

Postmaster General dated September

2, 1915s


of one or two

do l l a r

denomination

o r

coin ?hen

p u t u p i n

f ixed quant i t i es

a s

or iginal packages

and

sealed only with

wax or

lead

seals when offered

f o r

ma il in g bythe Tre asur y Department

a t

Washington,

D . C . , o r i t s

f ie ld se rv ice , s ha l l ,

i f

insured

a t t h e

ten-cent ra te

o f

insurance,

h e

accepted

a t

t h e


o f

pos tage

and

accorded

t h e

same

treatment

a s

re gi st er ed mai l . Similar pa rc el s when

c o n -

ta ining currency

o f

f ive dol lar denominat ion shal l

be

given

l ike t rea tment

on

payment

o f

maximum insurance

f e e a n d t h e


of

postage.

1 1

The

above Order referred only

to

mail sent

by t he

Treasury Department

o r i t s

branches

f o r

which postage

i s

required

a n d d i d n o t

r e f e r

t o

o f f i c i a l

mail.

Order

No.

3738

o f t he

Postmaster General dated December

l 6 , 19191


of one or two

do l l a r

denomination

o r

coin

p u t u p i n

f i xed

Quantities a s

ori gin al sealed packages, off er ed

f o r

ma i l i ng

by t he

Treasury Department,

o r i t s

f i e l d s e rv i ce ,

or by

Federal

Reserve Banks

o r

their branches, shal l ,

i f

insured

a t t h e

t e n

cent ra te

o f

insurance,

b e

accepted

a t t h e

f o u r t h -

c l a s s r a t e

of

postage

and

accorded

t h e

same treatment

a s

reg is t ere d mai l . Similar pa rc el s conta ining currency

o f

f i v e do l l ar denominat ion sh al l

b e

given l ike treatment

on

payment

of

maximum insurance

f e e a n d t h e

f o u r t h - c l a s s

r a t e

of

p o s t a g e .

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POST OFFICE DEPARTMENT

5 7 5

THE EXECUTIVE ASSISTANT TO THE POSTMASTER GENERAL

WASHINGTON

April 24, 1933

Hon. Eugene Meyer,

Governor, Gederal Reserve Board,

Washington,

D. C.

My dear S i r :

Reference

i s had t o t he

communication which this Department

addressed t o you under date of February 4, 193 3, and your reply

of February 28, 1933, r e l a t i v e to special arrangement which h a s

been made between t h e Post Office and Treasury Departments f o r

t h e handling a s registered mail a t t h e f o r t h - c l a s s r a t e o f

postage,

of

certain matter mailed

by the

Treasury Department

and

i t s f ie ld se rv ice and by Federal Reserve Banks and Branch Federal

Reserve Banks.

Order

No.

3433

of the

Postmaster General

has now

been issued,

e f fec t ive Apr i l 15 , 1933 , s t ipu la t ing tha t t h e insurance fees f o r

parcels containing currency

of one or two

dollar denomination

o r

coin o r bullion mailed by the Treasury Department o r i t s f ie ld

serv ice or by Federal Reserve Banks o r Branch Federal Reserve Banks

shal l be 15 cents; tha t t h e insurance f e e o n s imilar parcels contain-

i n g currency o f t he f i v e do ll ar denomination shal l be 35 cent s; tha t

these fees

a r e i n

addi t ion

t o t he

postage

and the

prescr ibed

s u r -

charges ; that t h e postage on such pa rc el s sha ll continue to be a t

t h e

f o u r th - c l a s s r a t e s ;

and

that such insured parcels shall continue

t o be handled a s regis tered mai l . The Order f u r t h e r provides t ha t

t h e

minimum regular registry

fee on any

matter reg is tered

f o r t h e

Treasury, when n o t e n t i t l e d to f r ee r eg i s t r a t i o n , and on tha t r eg is -

tered

b y i t s

f ie ld se rv ice ,

o r

Federal Reserve Banks

o r

Branch Federal

Reserve Banks, i s 15 cents.

A copy of Order No. 3433 o f t h e Postmaster General together with

copy of a mult igraph le t ter on t he subject which h a s been addressed

t o t he

postmasters concerned,

i s

inclosed herewith.

I t i s

assumed

that y o u wil l furn ish t h e Federal Reserve Banks and Branch Federal

Reserve Banks appropriate information

as t o t h e

provis ions

of

th i s

new Ord er. Copies of the Order a r e inclosed f o r this purpose. The

postmasters involved have been appropriately advised.

By

d i rec t ion

o f t he

Postmaster General.

Yours very truly,

HAKLLEE BRANCH,

Executive Assistant

t o t h e

Postmaster General.

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5 7 6

- 2 ~

a s

against indemnity

n o t

exceeding

$100

provided

by th e f e e of 25

cents

now

being paid

on

such mailings.

The 15-cent insurance f e e o n shipments of coin and currency of

one and two dollar denominations a nd the 35-cent insurance f e e o n mail-

ings of currency o f the five dollar denomination appear t o b e i n accordance

with

t h e

p r i n c i p l e

on

which Order

No.

3738

was

based,

and

accordingly

t h e

Board

ha s no

suggestions

to

make with regard thereto.

I n

this connection, however, attention

i s

d i r e c t e d

to the

l e t t e r

addressed

t o t h e

Postmaster General under date

of

August

12, 1932,

express-

i n g t h e

view

o f the

Board that

t h e

present reg is tr y surcharges

on

currency

shipments

a r e

excessive

and

tha t

t h e

theory upon which they appear

to be

based

i s

unsound when applied

t o t h e

Federal Reserve System.

Very truly yours,

3ugene Meyer,

Governor.

SLS/EMM/acw

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\


WASHINGTON

5 7 7

February

28, 1933

Mr.

Harold

N .

Graves,

Executive Assistant to t h e Postmaster General,

Post Office Department,

Washington,

D. C.

Dear

M r.

Graves:

Receipt

i s

acknowledged

of

y o u r l e t t e r

o f

February

4, 1933.

with regard

t o

insurance fees paid

b y t h e

Federal Reserve System

on

shipments

of

coin

and of

currency

of the one, two and

f ive do l l a r

denominations.

You

s t a t e t ha t

I n

view

o f t h e

fact that these shipments

of

coin

and

currency

of one and two

dollar denominations

a r e

accorded

t h e

same safeguards

a s

registered mail ,

and a s a

15-cent insurance

f e e i s

a t present required by law in order to provide a l i m i t o f indemnity which

corresponded with

t h e

l i m i t

o f

indemnity payable

f o r a

10-cent insurance

f e e a t t h e time Order Ho. 3738 was issued, i t i s bel ieved that t h e D e -

partment would b e fully warranted i n i s su ing an amended Order requir-

i n g t h e

payment

of an

insurance

f ee o f 1 5

cents

on

coin

and

currency

of

the one and two

dollar denominations, accepted

a s

insured mail from

t h e

Treasury Department

a n d i t s

branches,

o r

from Federal re se rv e banks

and

their branches,

b u t

accorded registry treatment

and to

make

i t

p la in

that

th e

present maximum insurance

f e e o f 3 5

cents

i s t o b e

col lected

on

such mailings consisting

o f

currency

o f t h e

five dol lar denominat ion.

While

n o t

s p e c i f i c a l l y

so

s t a t ed

i n

y o u r l e t t e r ,

i t i s

understood

that th e maximum insurance f ee o f 3 5 cents will provide indemnity n o t

exceeding $200 on mailings of currency o f t h e five dollar denomination,

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Division o f Registered mails

204S?-E-S.te.

In

your reply re fe r

to

POST OFFICE DEPARTMENT

5 7 8

THIRD ASSISTANT POSTMASTER GENERAL

WASHINGTON

Postmaster,

% dear S i r ;

Inclosed

i s a

copy

o f

Postmaster General's Order

Ho. 3^33.

from which yo u wil l note that e ff ec t i ve Apri l 15, 1933. t h e

insurance f e e o n pa rc els accepted f o r insurance a t t h e f o r t h -

c l ass r a t e s

of

postage

b u t

t r ea ted

a s

registered mail containing

currency of th e $1 o r $2 denomination o r coin o r bull ion mailed

by the Treasuiy Department o r i t s f i e ld se rv ice o r by Federal

Reserve B

a

riks

o r

Branch Federal Reserve Banks shall

be 15

cents;

and tha t t h e insurance f e e o n similar parcels containing currency

of the $5

denomination shall

be 3 5

cents .

Please also note that t h e minimam registry f e e on a ny matter

regular ly regis tered

f o r t h e

Treasury Department

( a s

dis t inguished

from t h e parce l s r e fe r red t o above a s being acc ept ed f o r insurance

and t r e a t e d a s registered mail) when n o t e n t i t l e d t o f ree r eg i s -

t r a t i o n ,

a s

well

a s

that regis tered

f o r i t s

f i e ld se rv ice

o r f o r

Federal Reserve Banks o r Branch Federal Reserve Banks, i s 15 cents .

P lease

be

governed acco rdi ngl y

and

appropriately advise such

pat rons o f your of f ice as may he concerned.

Inasmuch

a s

Order

Ho. 3^33 of the

Post mast er General became

ef fec t ive Apr i l 15, 1933, you should collect such additional amounts

i n insurance o r reg i s t ry f ees on mat ter of the character mentioned

i n

Order

Ho. 3^33,

mailed

a t

your o f f i ce

on and

a f t e r Apr i l

15, 1933,

a s wi ll , toget her with t h e amounts collected a t t h e time o f mailing,

equal t h e fee s prescr ibe d by Order Ho. 3^33•

I n connection with this subject, y o u a r e requested t o f u r n i s h t h e

Third As si st an t Postmaster General, Divi sion of Registered Mails,

information

as to

j u st what matter, mailed under th i s spec ial ar ran ge-

ment, i s being accepted f o r r e g i s t r a t i o n , o r f o r insurance b u t t rea ted

a s registered mail , a t your of f i ce , s t at in g separa tely matter which i s

accepted from t h e Treasury Department, i t s f i e ld se rv ice , or any

Federal Reserve Bank o r Branch Fe de ra l Reserve Bank, a nd t he amount of

r e g i s t r y

o r

insurance

f e e a n d

r a t e

of

postage being collected thereon.

Very tr ul y you rs

G-Vilp • MRS

Inclosure.

Third As si st an t Postmaster General.

B-891

7/17/2019 frsbog_mim_v38_0569.pdf


B-S91

ORDER

HO.

3433

Effec t ive Apr i l 1 5 , 1933«

th e

insurance

f e e f o r

parce ls

containing currency

of one or two

dollar denomination,

o r

coin

o r bull ion, mailed by th e Treasury Department, o r i t s f i e l d

service , or by the Federal Reserve Banks o r Branch Federal

Reserve Banks, under

t h e

provis ions

of

Departmental Order

373S, dated December l 6 , 1 9 1 9 . sha l l be 15 cents . The i n s u r -

ance f e e o n similar parcels containing currency of t he f ive

dollar denomination mailed under t h e provis ions of that Order

shal l be 35 ce nt s. These fe es a r e i n addi t ion to t he postage

and the

prescribed surcharges.

The

postage

on

such parcels

shall continue

to be a t t he

four th -c l ass r a t e s ,

an d

such

i n -

sured pa rc el s sh al l continue to be handled a s regis tered mai l .

The minimum registry fee on any mat ter reg is te red f o r t h e

Treasury Department, wtien

n o t

e n t i t l e d

to

f r e e r e g i s t r a t i o n ,

and on tha t r eg i s t e red f o r i t s f i e ld se rv ice , o r f o r Federal

Reserve Banks o r Branch Federal Reserve Ba;iks, i s 1|3 cents .

(Signed)

James A..Farley,

Postmaster General.

frsbog_mim_v38_0569.pdf

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