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319 EX-OFP'ICIO MEMBERS W. P. G. HARDING. GovERNOR ' ALBERT STRAUSS. VICE GoVERNOR ADOLPH C. MILLER CHARLES S. HAMLIN CARTER GLASS SECRETARY OF THE TREASURY CHAIRMAN JOHN SKELTON WILLIAMS FEDERAL RESERVE BOARD COMPTROLLER OF THE CURRENCY J. A. BRODERICK. SECRETARY W. T. CHAPMAN, ASSISTANT SECRETARY W. M. IMLAY. fiSCAL AOENT ADDRESS REPLY TO WASHINGTON FEDERAL RESERVE BOARD May 27,1919. X-1552 Subject: Calculation of Interest or Discount. Dear Sir: With further reference. to Topic No. 35 of the Conference of Governors, March 20-22, 1919, subject, "Calculation of Interest", which is given below, together with recorr:mendation of the Govarnors and the Board's ruling, tl1e question has been raisecl whether all interest or discount in connection with all loan operations of Federal Reserve Banks, comrr.encing July 1, 1919, is to be calculated on a 365 day basis. It is the understanding cf the Board count on bills discounted or rediscounted for all rediscounts between Federal Ibserve Banks a 365 day basis, but t·hat no ch·J.nge is to be interest or discount on open market purchases Banks. "Topic 35: that interest or dismember barlk.s and on wHl be computed on made in cal~lating of Federal Reserve CA:WUL.ATION OF INI:EF.EST: Treasury De11artment pa.ya on a 365 day basis while all the Federal Reserve Banks, except those of New York and Boston, calculate interest and discount on a 360 day basis. Can not uniformity be obtained in this regard? RECOMMENDATION: It is recommended that discounts with Federal Reserve Banks and between Federal Reserve Banks be calcu.l:ated on the basis of 365 days a year, beginning July 1st, next ye~. The Board concurs in the recommendation of the Governors and re~ests that, effective July 1, 1919, the computations of interest or discount on loans to member banks .or Federal Reserve Banke be rrade on a 365 day basis. It is believed desirable that this method be continued as long as the bill holdings of the Federal Reserve Banks continue to be based largely on Government pqper, interest on which is figures on a 365 day basis." Very truly yours, Secretary..
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