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CIRCULAR NO. 50. FEDERAL RESERVE BANK OF N E W YORK N E W YORK, October 13, 1916. T o THE C A S H I E R , SIR: Referring to our Circular N o . 48, under d a t e of September 26, 1916, you are advised t h a t it will be necessary for a member bank desiring to discbunt its own note for a period not to exceed 15 days to have a vote of its board of directors authorizing the making of such advances. . W e therefore enclose herewith a form of vote to be passed by your board of directors if desired. A copy, duly authenticated by your cashier or the secretary for your board, should be forwarded to this bank. This vote, when executed, will cover both the discount of your own note or notes and the rediscount of such drafts, notes, bills of exchange and acceptances as may be eligible under the provisions of section 13 of the Federal Reserve Act, and will supersede a n y prior authorization for rediscounts which you may have on file with this bank. Your attention is also invited to the fact t h a t , under the amendment to the Federal Reserve Act, no waiver of demand, notice and protest need be included in terms in the indorsement of your bank on bills, notes and other receivables which are offered for rediscount or as collateral security for an advance. Consequently, all reference to granting authority for such purpose has been eliminated from the form of vote sent herewith. An ordinary indorsement, provided it includes the written signature of an authorized officer, will be sufficient to comply with the terms of the Act. W e also enclose herewith a copy of the form of promissory note prepared for execution by such member banks as may desire to borrow upon their own obligations, together with a copy of form of application for an advance to be used in connection therewith, which is combined with a revised form of application for rediscount. Should you desire additional copies of a n y of the enclosed forms, we shall be glad to forward them to you upon request. It should be understood t h a t the collateral security offered for an advance not exceeding 15 d a y s upon the note of a member bank m a y consist of a n y notes, drafts, bills of exchange or bankers acceptances which are eligible for rediscount or purchase by Federal Reserve Banks and which have maturities a t the time the advance is made of not exceeding ninety days or, in case of agricultural paper, six months. In Circular No. 48, owing to a clerical error, the rates of discount established by this bank were not quite correctly stated. T h e rates n o w prevailing are as follows: For notes, drafts and bills of exchange, including promissory notes secured by eligible collateral, having a maturity a t time of discount of not more than 15 days. , \ : 3% For notes, drafts and bills of exchange, having a maturity at time of discount of more than 15 days and not more than 90 days 4% For agricultural paper having a maturity a t time of discount of more than 90 days and not more than six months... _.. 5% For trade acceptances having a m a t u r i t y a t time of discount of not more than 90 days..... 3H% Respectfully, ROBERT H. TREMAN Deputy Governor. "WHEREAS, It is desirable that the officers of this bank should from time to time be able to secure advances from the Federal Reserve Bank of New York on promissory notes of this bank secured by collateral, and to rediscount its bills receivable: " N O W , THEREFORE, RESOLVED, "I. That the president, any vice president, and cashier of this bank are, and each or either of them is, hereby authorized to make, execute and deliver from time to time to the Federal Reserve Bank of New York promissory notes of this bank not exceeding 15 days' maturity, and to transfer, deposit or pledge as collateral security therefor notes, drafts, bills of exchange or bankers acceptances eligible for rediscount or purchase by Federal reserve banks under the provisions of the Federal Reserve Act, or bonds or notes of the United States, in such sums and upon such terms as may to them or either of them seem advisable. "II. That each or either of the said officers is hereby authorized to rediscount from time to time with the Federal Reserve Bank of New York notes, drafts, bills of exchange, acceptances and other bills receivable of the kinds and maturities by the Federal Reserve Act made eligible for rediscount, in such sums and upon such terms as may to them or either of them seem advisable. "III. That each or either of the said officers is hereby authorized to indorse in behalf of this bank any notes, drafts, bills of exchange, acceptances or other bills receivable, or registered bonds or notes of the United States now or hereafter owned by this bank for the purpose of rediscounting such notes, drafts, bills of exchange, acceptances orother bills receivables with, of transferring or pledging such notes, drafts, bills of exchange, acceptances orother bills receivables or registered bonds or notes of the United States to, the Federal Reserve Bank of New York, and to do any and all other acts necessary in the premises. "IV. That the foregoing powers shall continue until express notice of their revocation has been duly given in writing to the said Federal Reserve Bank of New York." I, the undersigned, do hereby certify that the foregoing is a true and correct copy of a resolution of the Board of Directors of the duly adopted at a regular meeting of the said board, held on a quorum being present, and of the whole of the said resolution, as set forth in the minutes of the said meeting, and that the said resolution has not been rescinded or modified. IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the cor- porate seal of the said bank this day of 19 [SEALJ Cashier (or) Secretary of the Board of Directors $. 19 days after date, for value received, the undersigned bank promises to pay to the order of the FEDERAL RESERVE BANK OF NEW YORK at its OFFICE IN THE CITY OF NEW YORK, N. Y. DOLLARS having deposited with and pledged to the said Federal reserve bank, as collateral security for the payment of this and any other liability or liabilities, whether direct or contingent, of the undersigned bank to the said Federal reserve bank, due or to become due or that may be hereafter contracted, notes, drafts, bills of exchange or bankers' acceptances, or bonds or notes of the United States, as described in the schedule included in the application for loan, dated accompanying and made a part hereof. The said Federal reserve bank is also given a lien, for the payment of this note and any other of the said liabilities, upon all the property or secuitries now or hereafter left in the possession of the said Federal reserve bank by the undersigned bank and also upon any balance of the deposit account of the undersigned bank with the said Federal reserve bank, and it is hereby agreed by the undersigned bank that the said Federal reserve bank has the right to require such additional security as it may deem proper, and, on failure to respond forthwith to such requirement or on the nonpayment of this note or on the nonpayment of any other liability or liabilities of the undersigned bank as above set forth, the said Federal reserve bank, or any holder hereof, is hereby given full authority to sell, assign and deliver, or collect, the whole or any part of the above named collaterals, or any substitute therefor, or any addition thereto, at any public or private sale or on any brokers' board or stock exchange, at any time or times hereafter, without demand, advertisement or notice: and, upon such sale, the said Federal reserve bank or the holder hereof may become the purchaser of the whole or any part of such collaterals, free from any right of redemption, and, after deducting all legal or other costs and expenses for collection, sale and delivery, may apply the residue of the proceeds of such collections, sale or sales to the payment of any, either or all of the said liabilities, as the said Federal reserve bank, or its assigns, shall deem proper, returning the over-plus to the undersigned bank. - instructions and men form on back. APPLICATION FOR REDISCOUNT OR ADVANCE To be made in duplicate. SHEET N O . •IE FEDERAL RESERVE BANK OF N E W YORK, Corner Nassau and Pine Streets, New York, N. Y. 11 i] r Dated 191 The Bank of hereby makes application for:(a) The rediscount of notes, drafts, bills of exchange or aco puiires'aggregating $ , whit are listed in detail in the following schedule: (b) An advance of $ upon its promissory note, secured by the notes, drafts, bills of exchange which are listed in detail in th acceptances or bonds or notes of the United States aggregating $ following schedule: You are hereby authorized to charge the rediscounts or advance alxjve described to our account with you at maturity • I I T ' D NaT WORTH Ut MAKE:R ADDRESS BUSINESS /on R A T1N & 1 ' i I \ INDORSERS ' 0 • i < li AMOUNT 1 ' • TOTAL lt , 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, bills of exchange or acceptances listed in the foregoing schedule, were made for agricultural, industrialor commercial purposes, and I further certify that, to the best of my knowledge and belief, the notes, drafts, bills of exchange or acceptances listed in this schedule are eligible for rediscount with or purchase by Federal Reserve Banks under the regulations of the Federal Reserve Board. On this date the total amount of money borrowed by this bank on bills payable, rediscounts or otherwise, not including the rediscounts or loan hereby applied for is $ PLEASE NOTE CAREFULLY Please give, with respect to each name, commercial agency rating if available, and your estimate of present net worth, if your files contain such information. Indicate your estimate of t h e n e t worth b y placing the letters " N . W . " before your figures. Insert the name of the agency a t the top of the column if ratings are given. Insert either a " D " or a " P " in the column headed "Depositors or Purchased" to indicate whether the paper was discounted for a depositor or purchased. T h e " D " should appear on t h e line with t h e name of t h e discounter. Insert an " S " in t h e column headed " S t a t e m e n t , " on t h e line with each party whose statement is on file. Notes, drafts, bills of exchange and acceptances submitted for rediscount or as collateral should be indorsed in blank in the following form: First National Bank, Blankville N . Y. Cashier Each indorsement of a member bank should be signed b y an officer whose signature and authority to indorse have been filed with this bank. A promissory note of a member bank must have a m a t u r i t y not exceeding fifteen days from date of discount. Industrial and commercial paper must have a maturity not exceeding ninety days from date of rediscount, or from date of advance, if used as collateral. Agricultural or live stock paper must have a maturity not exceeding six months from date of rediscount, or from date of advance, if used as collateral. For further information regarding paper eligible for rediscount or purchase by Federal Reserve Banks, see Regulation A, Series of 1916, Federal Reserve Board, and Circulars Nos. 25 and 30, of this bank F E D E R A L RESERVE BANK OF N E W YORK. SPECIMEN FORM OF APPLICATION SHOWING DESIRED ARRANGEMENT OF DETAILS BER DM JP EST'D NET WORTH MAKER ADDRESS BUSINESS C. P . S c u d d e r A. P . C r a w f o r d OR R A T I N G BvX INDORSERS Blankville < < Farmer F e e d & Grain purchase of feel. For AMOUN" \ Agency J N.W. 10,000 1 8/3 50/75-1H West Blankville Farmer For purchase of horse. N.W. W. B . R i c h t e r Annie R i c h t e r JMfr. Baskets Wife Foxt purchase of materials. 7/3 20/35-2 N.W. 1 , 0 0 0 G e n e r a l B u i l d i n g Co Jones B r i c k Co. jBrooklyn Builders Blankville jBrick Mfrs For purchase of brick. 75/125-1H 35/50-2 F. J . Crockett Blankville <« W e s t e r n P a c k i n g Co Chicago Packers U n i t e d Woolen Co. A. B . J o n e s Boston *Mfrs .Woolens President «* 3,500 Over 1,000,000 500/750-1 9/15 200 1,050 4,500 8/30 5,000 7/15 2,500 Hardware Blankville For purchase of hardware for seasonajl 1 0 / 2 0 - 2 H requirements. 8/10 Morris Harvey CattleDealer 2/3-3 Blankville For purchase cattle. Collateral, C/ M on ten head C£|.ttle. 9/3 A. Pi. Schmidt Co. 35/50-1 B u t t e r & Eggs Blankville C o l l a t e r a l W/R's f o f 10,000 l b s . b u t ber. 2/87 50 7/18 James & Co. Blankville Mfrs. Home) Furniture Co., I n c . jPresident A. S. Cox jSecretary J. B. Cox Physician Samuel Hood For p u r c h a s e of lumber and o t h e r $ 8/15 75/125-1 N.W. 2 5 . 0 0 0 N.W. 1 0 , 0 0 0 N.W. 4 0 , 0 0 0 materials 850 500 1,500 7,500 $23,650 PLEASE N O T E SPACE LEFT B E T W E E N BACH ITEM.
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