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% FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE T O THE FEDERAL RESERVE BOARD January 21, 192$), St. 6o64. SUBJECT: Revision of Form f o r Computing Member Bank Reserve Requirements. Dear S i r : There i s enclosed herewith a copy of Form S t . 6059> r e c e n t l y approved by the Board, i n d i c a t i n g the manner i n which r e s e r v e s r e q u i r e d t o be c a r r i e d by member banks should be computed. I t i s suggested t h a t the form f u r n i s h e d by ycrn to member banks, i l l u s t r a t i n g t h e method of computing r e q u i r e d r e s e r v e s , be r e v i s e d i n accordance with the form enclosed h e r e with. In the p a s t i t has been found t h a t some of the member banks have a p p a r e n t l y c l a s s i f i e d t h e i r d e p o s i t . ' l i a b i l i t i e s i n one way when making out t h e i r q u a r t e r l y c o n d i t i o n r e p o r t s , and i n another f o r the purpose of determining deposit l i a b i l i t i e s 08 which r e s e r v e s a r e c a r r i e d with the Federal r e s e r v e bank. To overcome t h i s d i f f i c u l t y the enclosed form S t . 0O59 s t a t e s s p e c i f i c a l l y j u s t how the items i n the c a l l r e p o r t should be used i n determining the amount of n e t demand and time d e p o s i t s s u b j e c t to r e s e r v e . I t i s suggested t h a t the d e p o s i t f i g u r e s f u r n i s h e d the Federal r e s e r v e bank by member banks f o r r e s e r v e computation purposes be checked a g a i n s t the q u a r t e r l y c a l l r e p o r t s , to i n s u r e t h a t both r e p o r t s a r e b e i n g prepared on the same b a s i s . Very t r u l y yours, Walter L. Eddy, Secretary. TO CHAIRMEN OF AIL F. R. BANKS I 455 P. R. i B a r d Form S t . 6059 January 1929. CCl.iPUTA.TION OF RESERVE TO BE CARRIED WITH THE FEDERAL RESERVE BMK BY I M A M BANKS DEMAND DEPOSITS SUBJECT TO RESERVE 1. 2. DEPOSITS, except bank and U. S. Government, due i n 30 days or l e s s or s u b j e c t t o l e s s than 30 days' n o t i c e ( T o t a l of Schedule K i n the q u a r t e r l y condition r e p o r t ) DUE TO BANKS: (a) Due to Federal r e s e r v e bank ( d e f e r r e d c r e d i t s ) $ (b) Demand b a l a n c e s due to other banks and t r u s t companies i n United S t a t e s ( c ) Demand b a l a n c e s due to banks i n f o r e i g n countries (d) C e r t i f i e d and c a s h i e r ' s or t r e a s u r e r ' s checks, i n c l u d i n g dividend checks, outstanding • ( e ) Letters of c r e d i t and t r a v e l e r s ' checks sold f o r cash and outstanding ( f ) Total due•to banks (Total of Schedule J i n the q u a r t e r l y condition r e p o r t ) _________ LESS: 3. DUE FROM BANKS: i (a) Items with Federal r e s e r v e bank i n process of collection (b) Due f r o p banks ( o t h e r than Federal r e s e r v e bank) and t r u s t companies i n United S t a t e s (Do not include any amounts not s u b j e c t to withdrawal without n o t i c e ) ( c ) Exchanges f o r c l e a r i n g house and other checks on l o c a l banks (d) Balances payable i n d o l l a r s due from f o r e i g n branches of other American banks ( e ) Total due from banks (Total of items 4 to 8 i n Schedule I of the q u a r t e r l y condition report) 4. NET BALANCE DUE TO BANKS (excess of item 2-f over item 3 - e ; i f "Total due to banks" (item 2 - f ) i s l e s s than "Total due from banks" (item 3 - e ) , no amount should be r e p o r t e d a g a i n s t t h i s i t e m ) . . . 5. NET DEMAND DEPOSITS SUBJECT TO RESERVE (Item 1 p l u s item 4) TIME DEPOSITS 6. $ DEPOSITS payable a f t e r 30 days or s u b j e c t to 30 days or more n o t i c e , a s d e f i n e d i n Federal Reserve Board Regulation D; and P o s t a l Savings (Total of Schedule L i n the q u a r t e r l y condition report) RESERVE REQUIRED GM NET DEMAND DEPOSITS (item 5 above); Banks i n c e n t r a l r e s e r v e c i t i e s , 13 per c e n t ; i n r e s e r v e c i t i e s , 10 per c e n t ; e l s e where, 7 per cent ON TIME DEPOSITS ( i t e m 6 above): 3 X P o r cent TOTAL RESERVE TO BE MAINTAINED WITH FEDERAL RESERVE BANK . . .