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W. p, G. HARDING, GOVERNOR EX-OFFICIO MEMBERS - - - - . VICE GoVERNOR ADOLPH C. MILLER CHARLES S. HAMLIN WILLIAM G. MCADOO SECRETARY OF THE TREASURY CHAIRMAN JOHN SKELTON WILLIAMS FEDERAL RESERVE BOARD COMPTROlLER OF THE CURRENCY WASHINGTON J, A. BRODERICK, SECRETARY L. C. ADELSON, ASSISTANT SECRETARY W. T. CHAPMAN. ASSISTANT SECRETARY W. M. IMLAY, FISCAL AGENT ADDRESS REPL V TO FEDERAL RESERVE BOARD October 23, 1918. SUBJECT: Method of reporting diScounted bankers' ace eptances on forms 34, 38 and :rm-4. Daar Sir~ In the past bankers' accept.ances maturing within l5 days have been discounted 'by som.e of the Reserve bankS. at the 15. . day discount rate approved for commercial paper~ In o~er, however, to enable Dlembers to obtain .t'unds ftom their Reserve bank on bankers' acceptances of the longer ma.t1.lri ties without resort to open market operations, the :Board has. recently apProved special discount rat$s cov• ering this class of pape:t' :for the New York FaO.~ral Reserve J3ank. Care should be taken by thoseReserve banks which are taking . bankers' acceptances of 15-day or longer maturities on a disco\mt. basis, to see that only S1J.Ch acceptances as are acttJ,ally purchased in ~he open market ara reported against caption 11 Bills 'oou.ght in open mark.et 11 on forms )4 and 38. :Bankers' acceptances discounted for member banks should be rE)ported as bills discounted 'm sche· dules BD-4, With the necessary distinguishing marks to in~cate · whether they are drawn in the foreign or domestic tra.de. !t is also desired that discounted bankers' acceptances be shown separ... atel;y on form 38 against caption ":Banker$ acceptances discounted." The caption "Commodity paper" on Which special rates have been disc.ontinuad may be el~mi:nated and "Bankers acceptal'lCes dis~ounted" substituted in its place~ May we also re1:1uest that the distinction between discountad and purchased pape:t' b.;)maintained in re'J)orts Qf_ holdings of paper· rediscounted for other Fecle1;"tii.l Raserve banks. Th~s may be done i! the bo:t'row1ng bank, in telegraphing to the .lending bank the amotmt · of paper rediscounted. will clasSify sapara.tely their discounted. and purchased billsYours trery truly, · Secretary. St ·35
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