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BOARD OP GOVERNORS
"o? the
FEDERAL RESERVE SYSTEM
Statement for the Press

For immediate release

June 29* 1949

The authority under whioh the Board of Governors of the
Federal Reserve System issued Regulation W, establishing minimum
down payments and maximum maturities for consumer instalment credit,
expires June'30# 1949 and the regulation will not be effective after
that date* Notice to this effect is being sent to those who, in
accordance with the regulation's provisions, have filed registration
statements with a Federal Reserve Bank.
The temporary authority granted by Congress for increased
reserves likewise expires June 3° a n 3 *he Board has accordingly revised the supplement to Regulation D, under which the following reserve requirements will be effective with the beginning of the next
reserve period (June 30 for central reserve city and reserve city
member banks and July 1 for other member banks): Against net demand
deposits - 2U per cent for central reserve city member banks, 20 per
cent for reserve city member banks, and lk Ver

oen

*

for

other member

banks; against time deposits - 6 per cent for member banks of all
classes*

The changed requirements will result in a reduction of

approximately f800,000,000 in required reserves*