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FEDERAL RESERVE BOARD WASHINGTON July 27. 1921. X-3176 SUBJECT! Pennission granted to member banks to a.pply for discounts of eligible paper acquired from non- member banks. Dear Sir: As you know, Section 19 of the Federal Reserve Act provides ·in part that ... "No member bank shall act as the medium nonmember batik in applying for or receiving a Federal Reserva Bank under tha provisions except by permission of the Federal Reserve or agent of a discounts from of this Act, Board". This letter is to advise you th<:.l.t thg Fedsral Reserve Board has gi•en general authority to member ba.iks to apply to their r::;spective Federal Reserve :Banks for discounts of eligible paper acquired by such menber bat:ks from nonmember banks, such authority to be effective until withdrawn by the Federal Reserve Board. The extent to which the re- .speetive Federal Reserve Barks will entertain such applications is, of course, a ma.tter of policy for the determination of the officers of each bam. Very truly yours, G o v e r n TO OOVEBNO.RS AND :FEDEBAt RESERVE AGENTS. o r.
@FedFRASER