Full text of Mimeograph Letters and Statements of the Board : Statement for the Press, re Purchase of U. S. Bonds by Federal Reserve Banks, Number 962, Volume 4, Page 1827

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STATEMENT FOR THE PRESS.
J a n u a r y Sj 191$*

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The F e d e r a l R e s e r v e Board has d e t e r m i n e d , i n t h e e x e r c i s e of
t h e d i s c r e t i o n v e s t e d i n i t u n d e r t h e p r o v i s i o n s of S e c t i o n 18 of
the F e d e r a l Reserve Act; t h a t i t w i l l not r e q u i r e F e d e r a l r e s e r v e
banks t o p u r c h a s e d u r i n g t h e y e a r 1917 more t h a n $ 1 5 , 0 0 0 , 0 0 0 . of
U n i t e d S t a t e s "bonds o f f e r e d f o r s a l e by member banks t h r o u g h t h e
T r e a s u r e r of t h e U n i t e d S t a t e s *

It will require Federal reserve

banks t o p u r c h a s e on A p r i l 1, 191%, t h e f u l l amount of t h i s
$ 1 5 , 0 0 0 , 0 0 0 . o r s o much t h e r e o f as may be o f f e r e d f o r s a l e on o r
b e f o r e March 2 1 s t , t h e l a s t day on which a p p l i c a t i o n s w i l l be
r e c e i v e d by t h e T r e a s u r e r f o r t h d s a l e of bonds on A p r i l 1 s t •
Under t h e p r o v i s i o n s of S e c t i o n 18 F e d e r a l r e s e r v e banks a r e
n o t p e r m i t t e d t o p u r c h a s e from member b a n k s t h r o u g h t h e T r e a s u r e r
more t h a n t w e n t y - f i v e m i l l i o n d o l l a r s of bonds i n any one y e a r ,
l e s s t h e amount of bonds b e a r i n g t h e c i r c u l a t i o n p r i v i l e g e a c q u i r e d i n t h e open m a r k e t d u r i n g t h a t y e a r .

There i s no l i m i t

imposed by law on t h e amount of bonds which may be p u r c h a s e d i n
t h e open m a r k e t by F e d e r a l r e s e r v e banks*