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FEDERAL RESERVE
OF NEW

BANK

YORK

f
Circular No. 2 5 3 2 , October 29, 1942
L Superseding Circular No. 1773, dated August 26, 1937.

DISCOUNT RATES
To all Member Banks, and Others Concerned,
in the Second Federal Reserve District:

This bank has established the following new rates, effective October 30, 1942:
A rate of
per annum on advances to member banks under the eighth and thirteenth
paragraphs of section 13 of the Federal Reserve Act specifically secured by direct obligations of the United States, or such obligations fully guaranteed as to principal and
interest by the United States as are eligible for collateral under the eighth paragraph
of section 13, which have one year or less to run to call date, or to maturity if no call date.
A rate of
per annum on advances to member banks under section 10(b) of the
Federal Reserve Act.
A rate of 2V2% per annum on advances under the last paragraph of section 13 of the
Federal Reserve Act to individuals, partnerships and corporations, other than banks,
secured by direct obligations of the United States.

Other rates remain unchanged.
On the following page is a schedule of the rates with respect to discounts,
advances and commitments made under the Federal Reserve Act which are now in
effect at this bank.




Allan

Sproul,

President.

RATE SCHEDULE OF FEDERAL RESERVE BANK OF NEW YORK
In Effect October 30, 1942

Per Cent
Per Annum

Rediscounts for and advances to member banks:

(a) Advances under the eighth and thirteenth paragraphs of section 13 of the Federal
Reserve Act specifically secured by direct obligations of the United States, or
such obligations fully guaranteed as to principal and interest by the United
States as are eligible for collateral under the eighth paragraph of section 13,
which have one year or less to run to call date, or to maturity if no call d a t e . . .

%

(b) Advances under the eighth and thirteenth paragraphs of section 13 of the Federal
Reserve Act specifically secured by direct obligations of the United States, or
such obligations fully guaranteed as to principal and interest by the United
States as are eligible for collateral under the eighth paragraph of section 13,
which have more than one year to run to call date, or to maturity if no call date

1

(c) Other advances and discounts under sections 13 and 13a of the Federal Reserve
Act

1

(d) Advances under section 10(b) of the Federal Reserve Act

IV2

Advances to nonmember banks:
Advances under the last paragraph of section 13 of the Federal Reserve Act secured
by direct obligations of the United States

1

Advances to individuals, partnerships and corporations other than banks:
Advances under the last paragraph of section 13 of the Federal Reserve Act secured
by direct obligations of the United States

2y 2

Industrial advances and commitments under section 13b of the Federal Reserve Act:
(a) Advances direct to industrial or commercial businesses, including advances made in participation with financing institutions
(b) Commitments to make advances direct to industrial or commercial businesses

(c) Advances taken over from financing institutions under

commitments

(d) Commitments to financing institutions.




2 t o

5

10 to 25% of rate to be
charged borrower with a
minimum of V^o
rate charged borrower on
portion for which Federal
Reserve bank assumes the
risk, and rate charged borrower less the commitment
charge on portion on which
financing institution assumes the risk
10 to 25% of rate charged
borrower with a minimum
of % % , provided that no
commitment shall be given
on loan on which borrower
is charged more than 5%.

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