Full text of Federal Reserve Bank of New York Circulars : 5. Procedure for Obtaining Discount

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CIRCULAR N O . 5.

FEDERAL RESERVE BANK OF NEW YORK
62 CEDAR

STREET

N E W YORK, November 13th,

1914.

To T H E C A S H I E R :
SIR:

The Federal Reserve Board has issued to member banks its circular No. 13, and regulations
numbers 2, 3, 4, 5 and 6 in regard to the character of paper which is eligible for discount by
Federal Reserve banks and the procedure to be followed in obtaining discounts, to which circular and regulations you are referred.
The rate of discount to be established by this bank will be published when approved by the
Federal Reserve Board and you will be duly advised.
Applications for rediscount should be submitted upon the form enclosed.
Upon advice of acceptance of the application, notes, drafts or bills of exchange offered
for rediscount should be indorsed by the member bank in the following form:
( N a m e of Member Bank)
This indorsement includes a waiver
of demand, notice and protest.
(Authorized Signature.)
There is also enclosed a form of resolution to be passed by the Board of Directors of each
member bank which must be duly certified under seal by the proper officer of the bank and filed
with the Federal Reserve Bank before credit for the proceeds can be given. Each indorsement
of a member bank should be made over the written signature of a duly authorized officer of the
bank.
The paper should either (a) be accompanied by a written statement from an officer of the
applying bank, that of his own knowledge and belief the original loan was made for agricultural,
industrial or commercial purposes, and complies with the regulations of the Federal Reserve
Board or (b) show on its face or by indorsement a statement substantially to the following effect:
Eligible for Rediscount with
FEDERAL RESERVE BANKS
under regulations of
Federal Reserve Board Circular No. 13
C R E D I T F I L E No
D I S T R I C T No
( N a m e of Member Bank)
Cashier.
Notes, drafts and bills of exchange offered for rediscount must bear no endorsement which
may impair or restrict the negotiability of the instrument.
The proceeds of discount will be credited to the account of the member bank and a statement of the amount rendered.
Respectfully,




B E N T . STRONG, J R . ,

Governor.

SHEET >JO.

Applications must be made in duplicate.
TEMPORARY FORM OF

APPLICATION FOR REDISCOUNT
., 191....
THE FEDERAL RESERVE BANK OF NEW YORK,

62 Cedar Street, New York City.
The
Bank of
rediscount of notes, drafts and (or) bills of exchange, aggregating $
following schedule:
MATURITY

MAKER'S ADDRESS

MAKER

hereby makes application for the
, which are listed in detail in the

AMOUNT

INDORSER

TOTAL

s

I,
, Cashier of the
Bank of
, hereby certify that to the best of my knowledge and belief, the original loans which are
evidenced by the notes, drafts and (or) bills of exchange listed in the *~-"]—•— - - U ^ J . . ^ ^f^rr^A0l^gg^^l^^ur-[]
industrial or commercial purposes, and I further certify that the notes, drafts and (or) bills of exchange listed in this Schedule are
eligible for rediscount with Federal Reserve Banks under the regulations of the Federal Reserve Board.
Cashier.
Date Received
Amount accepted,
Date of Approval
Date credited to account
Amount credited to account,



$.

$.

1914To T H E FEDERAL RESERVE B A N K OF N E W YORK,

62 Cedar Street, New York City.
DEAR S I R S :

In accordance with your circular Number 4, we hand you herewith $
as follows :
Gold Certificates

$

Legal Tender

$

Notes

Silver Certificates

$

which please place to the credit of our account under advice.
In accordance with your suggestion, we beg to advise you that we are sending to the
Assistant Treasurer of the United States at New York $
in Gold
Coin, the proceeds to be credited to our account. (If no deposit of Gold Coin is made strike out
this paragraph of the letter.)
Yours truly.

by
Cashier.
C A L C U L A T I O N OQ
F L
TH
E IL JL,
A W FRESERVE
U L M O N E YCITIET
R E S E R V E O F BANKS L O C A T E D IN
jT
1. ) ^Uie_la^App«jvctr'R-esei^'e-A^e«ts
Due to Banks other than Federal Reserve Banks
TOTAL
L E S S ITEM No. 2

2. *Due from Banks other than Federal Reserve Bank (or Reserve Agents
TOTAL

3. Dividends unpaid

-.

4. Demand Deposits
5. 5/igths of Time Deposits

1%

-^-—

6. Gross amount

'.

L E S S ITEMS N O S . 7 AND 8

7. Checks on other Banks in same place
8. Exchanges for Clearing House
q 9. Net amount
10. Xtfjo of this amount

is the necessary legal reserve required, which

is $
*Should the aggregate "Due from" exceed the aggregate "Due to" Banks, both
items must be omitted from the calculation.