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CIRCULAR N O . 72 C E*\cJo«>wr4. 1J FEDERAL RESERVE BANK OF N E W YORK N E W YORK, J u n e 13, 1917. SPECIAL DISCOUNT RATES T o THE C A S H I E R , SIR: Referring to our circular No. 64 of M a y 22, I9I7, a separate form of application has been designed for use in applying for rediscount at the special rate of zVi°/o established for paper secured by obligations of the United States Government. Six forms of such application are enclosed here- with and additional copies will be supplied on request. These forms may also be used in making application for direct loans secured by United States bonds or certificates of indebtedness, as well as for rediscounts requested for the benefit of other institutions, which may include other member banks and, beginning June 15, 1917, and until further notice nonmember banks, i. e. State banks, trust companies and savings banks. T h e paper offered for rediscount must in all cases bear the indorsement of the member bank and have a maturity a t time of discount of not more than ninety days, and be secured by Liberty Loan bonds of the United States or interim receipts therefor or United States certificates of indebtedness. T h a t there may be no unnecessary delay in passing upon applications for rediscounts or advances, member banks t h a t have not already filed resolutions authorizing borrowing and recv\cic V discounting are requested to file the same a t once. enclosed herewith. Proper forms of resolution in duplicate are One copy duly executed should be returned to this bank. ONE DAY ADVANCES For the purpose of minimizing or preventing any undue strain upon the resources of the member banks caused by the large transfers of funds incidental to the Government financing which is now in progress, the Federal Reserve Bank of New York has also established special rediscount rates for periods of one day, to be fixed by the officers of the bank from time to time, a t not less than 2 % nor more t h a n 4 % , for advances made to member banks in connection with transactions involving the fiscal operations of the Government. Such advances will be made for one day only, upon the promissory notes of member banks secured by eligible paper or United States Government obligations., 72^ The rates of discount of this bank, effective from this date until further notice, are, therefore, as follows: For notes, drafts and bills of exchange, including promissory notes secured by eligible paper or bonds, notes or certificates of indebtedness of the United States, having a maturity at 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 at time of discount of more than / 90 days and not more than six months 5% SPECIAL RATES For notes, drafts and bills of exchange issued of drawn for the purpose of buying or carrying bonds, notes or certificates of indebtedness of the United States, and secured thereby, having a maturity at time of discount of not more than 90 days 3J^% For trade acceptances having a maturity at time of discount of not more than 90 days 33^% For one day promissory notes of member banks required in connection with transactions involving the fiscal operations of the Government, secured by eligible paper or bonds, notes or certificates of indebtedness of the United States 2 % to 4 % Respectfully, B E N T . STRONG^ Governor^ SPECIAL FORM OF APPLICATION FOR REDISCOUNT OR ADVANCE SHEIT N O . SECURED BY OBLIGATIONS OF THE UNITED STATES GOVERNMENT To be made in duplicate. To THE FEDERAL RESERVE BANK OF NEW YORK, Corner Nassau and Fine Streets, New York, N. Y. Dated 19* The Bank of hereby makes application for:— (a) The rediscount of notes, drafts, bills of exchange or acceptances aggregating $ , which arc listed in detail in tin- following schedule: (b) An advance of $ upon its promissory note for days, secured by bonds, notes, or certificates of indebtedness of tlu- United States Government aggregating $ which arc listed in detail in the following schedule: You are hereby authorized to charge the rediscounts or advance above described to our account with you at maturity. BER )M MAKER ADDRESS AMOUNT O r NOTE A M O U N T OF COLLATERAL INDORSERS TOTALS I, , Cashier of the Bank of , hereby certify that the original loans which are evidenced by the notes, drafts, bills of exchange or acceptances listed in the foregoing schedule, were made for the purpose of buying or carrying bonds, notes or certificates of indebtedness of the United States Government, and are secured by a pledge of the collateral above described. 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 $ Cashier.
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