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·.!' •·,>II - .1 ._,. ' 487 : BOARD OF' GQVERNORS, OF" THE ··FEDERAL RESERVE SYSTEM 8-4$ Reg. D-'1 WASHINGTON. AODRESS Df"f"ICIAL CCIRRESPDNQENCE TD THE SDARQ November 19, 19~?. Dear Sir: For your intormation there is inclosed a copy ot a letter written to the Federal Reserve Be.nk ot Chicago under date ot November 19, 193'1, with respect to the waiving of penalty on def1- ciencies in reserves ot member banks. Very truly yours, Chester Morrill, Secretary. Inclosure. TO THE PRESIDENTS OF ALL FEDERAL RESERVE BANKS S-48-a . Reg. D-7 488 Nov.ember 19, 1937. Mr. G. J. Schaller, President Federal Reserve Bank of Chicago Chicago, Illinois Dear Mr. Schaller: Reference is made to your letter of October 27 in reggrd to the waiving of penalties for deficiencies in reserves of member banks. The Board appreciat~~ that there may be exceptional circumstances when it would be desirable to disregard the reserve computation period in which a bank becomes a member of the System insofar as ·the assess- ... ment of a penalty for a deficiency in reserves is concerned an~ also to waive the assessment of a penalty for the first deficiency in reserves occurring subsequent to such resene computation period, and accordingly modifies paragraph (b) of its letter X-7411 of April 14, 1933, to read as follows: - ~(b) When a member bank is deficient in its reserves during the reserve computation period within which it became a member, a penalty for such deficiency may be assessed or not, in the discretion of the Federal Reserve bank. When, for the first time subsequent to the reserve .computation period within which a bank became a member, there is a deficiency in its reserves, which is subject to a penalty, such penalty may be assessed or not as the Federal Reserve bank may determine upon consideration of the circumstances of the case." Very truly yours, (Signed} Chester Morrill Chester MorrHl. Secretary.
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