Only a small amount ($40 million)
of check float will remain after implementation of the above procedures.
This remaining check float arises primarily from adjustments to the
accounts of depository institutions because of Federal Reserve accounting
errors and from the handling of government-agency deposits at Reserve
Banks. The amount of float arising from adjustments is relatively
small ($30 million), and it would not be cost-effective to charge
the float to particular depository institutions. The Board therefore
believes it appropriate to add the value of this float to the cost
of the check-collection service.
The Board also believes that it is inappropriate to charge
depository institutions for float arising from deposits by government
agencies ($10 million), since such float does not arise from the provision
of priced services to depository institutions. Indeed, since such
float arises from the provision of services to government agencies,
it is not necessary to price such float under the Monetary Control
Act. Accordingly, the value of this float will be attributed to such
government agencies.
