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FED ERAL R E SE R V E BANK OF N E W YORK r Circular No. 3 7 2 6 "1 June 25, 1951 J L SEM IANNUAL DIVIDEND Revision o f Operating Circular No. 16 To all Member Banks in the Second Federal Reserve District: E nclosed is a cop y o f our O perating Circular No. 16, R evised June 25, 1951. The revision contains the follow in g changes: (1 ) Paragraph 1 has been amended to give effect to a new procedure fo r the closing o f the capital stock books o f this Bank during the day on which each dividend is payable, rather than during the last five business days ending with the day each dividend is payable. (2 ) Paragraph 2 is new and gives effect to the existing procedure fo r crediting dividends to the reserve account o f each member bank on the day on which the dividend is payable. Tlie board o f directors o f this Bank has declared a dividend fo r the six months ending June 30, 1951 at the rate o f six per centum per annum on the paid-in capital stock o f the Bank, payable June 29, 1951 to stockholders as shown by the books o f the Bank at the close o f business on June 28, 1951. P aym ent o f the amount o f the dividend due each member bank w ill be made by credit to its reserve account on June 29, 1951. A n advice o f credit w ill be mailed to each member bank on June 28, 1951. Unless a member bank other wise requests, future dividend paym ents w ill be made in the same manner. In connection w ith reportin g the dividend fo r tax purposes, the amount th ereof which represents a dividend on stock fo r which paym ent was made to this Bank prior to M arch 28, 1942, and the amount which represents dividend on stock fo r which paym ent was made to this Bank on or a fter M arch 28, 1942, w ill be shown on the credit advice to be m ailed to each bank. F o r further inform ation regarding taxation o f dividends on F ederal R eserve Bank stock, please refer to the enclosed operating circular. A dditional copies o f the revised operating circular w ill be furnished upon request. A llan S proul, P r es id en t.