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F E D E R A L R E S E R V E BANK
OF NEW YORK
r C ir c u la r N o. 3 4 3 0 * 1
L
M arch 29, 1949

J

SUPPLEMENTS TO REGULATIONS T AND U OF THE BOARD
OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Effective March 30, 1949

To all Member Batiks, Members o f National Securities
Exchanges, and Other Interested Persons, in the
Second Federal Reserve District:

For your information we quote below the text of a press statement issued by the Board of
Governors of the Federal Reserve System and released for publication on March 29, 1949:
The Board of Governors of the Federal Reserve System effective Wednesday, March 30, 1949,
amended its Regulation T ‘ ‘ Extension and Maintenance of Credit by Brokers, Dealers, and Members *
of National Securities Exchanges” and its Regulation U “ Loans by Banks for the Purpose of Pur­
chasing or Carrying Stocks Registered on a National Securities Exchange” so as to reduce the margin
requirements for purchasing registered securities from 75 per cent to 50 per cent. These requirements
are applicable both to purchases of securities and to short sales. The Board’s action was taken under
its statutory responsibilities and in the light of the general credit situation.

Enclosed are printed copies of the Supplements to Regulations T and U, effective March
30, 1949, giving effect to such amendments.
Additional copies of this circular and of the enclosed supplements will be furnished upon
request.




A

llan

S pr o t jl ,

President.

SUPPLEMENT TO REGULATION T
I s su e d

by the

B oard

of

G overnors

op t h e

F

ederal

R eserve S y st e m

Effective March 30,1949
Maximum loan value for general accounts. — The maximum loan
value of a registered security (other than an exempted security) in
a general account, subject to section 3 of Regulation T, shall be 50 per
cent of its current market value.
Margin required for short sales in general accounts. — The amount
to be included in the adjusted debit balance of a general account,
pursuant to section 3 (d) (3) of Regulation T, as margin required for
short sales of securities (other than exempted securities) shall be 50
per cent of the current market value of each such security.




SUPPLEMENT TO REGULATION U
I s s u e d b y t h e B oard o f G o v er n o r s o f t h e F e d e r a l R e se r v e S y s t e m

Effective March 30, 1949
For the purpose of section 1 of Regulation U, the maximum loan
value of any stock, whether or not registered on a national securities
exchange, shall be 50 per cent of its current market value, as de­
termined by any reasonable method.




F E D E R A L R E S E R V E BANK
OF NEW YORK

March 29,1949

SUPPLEMENT TO REGULATION U OF THE BOARD
OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Effective March 30, 1949

To Nonmember Banks, and Other Interested Persons,
in the Second Federal Reserve District:

For your information we quote below the text of a press statement issued by the Board of
Governors of the Federal Reserve System and released for publication on March 29, 1949:
The Board of Governors of the Federal Reserve System effective Wednesday, March 30, 1949,
amended its Regulation T “ Extension and Maintenance of Credit by Brokers, Dealers, and Members
of National Securities Exchanges” and its Regulation U “ Loans by Banks for the Purpose of Pur­
chasing or Carrying Stocks Registered on a National Securities Exchange” so as to reduce the margin
requirements for purchasing registered securities from 75 per cent to 50 per cent. These requirements
are applicable both to purchases of securities and to short sales. The Board’s action was taken under
its statutory responsibilities and in the light of the general credit situation.

Enclosed is a printed copy of the Supplement to Regulation U, effective March 30,1949,
giving effect to such amendment.
Additional copies of this letter and of the enclosed supplement will be furnished upon
request.




A

llan

S proul,

President.

SUPPLEMENT TO REGULATION U
I s s u e d b y t h e B o ard o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y s t e m

Effective March 30,1949
For the purpose of section 1 of Regulation U, the maximum loan
value of any stock, whether or not registered on a national securities
exchange, shall be 50 per cent of its current market value, as de­
termined by any reasonable method.





Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102