Full text of Federal Reserve Bank of New York Circulars : 7105. Discount Rates

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FED ER A L RESERVE BANK
OF N EW YORK

C ircular No. 7105
February 24, 1973

DISCOUNT RATES

To A ll M em ber Banks, and Others Concerned,
in the Second Federal Reserve D is tr ic t:

The directors of this Bank, with the approval of the Board of
Governors of the Federal Reserve System, have increased the Bank's discount
rate to 5 1/2 percent from 5 percent, effective Monday, February 26.
Following is the text of a statement issued February 23 by the
Board of Governors of the Federal Reserve System:
The Board of Governors of the Federal Reserve System today
approved actions by the directors of the Federal Reserve Banks of
New York, Philadelphia, St. Louis and Kansas City increasing the
discount rates of those banks from 5 percent to 5 1/2 percent,
effective Monday, February 26.
This action was taken in recognition of the recent rise in
short-term open market interest rates which is an outgrowth of strong
credit demands generated by continued rapid economic expansion. In
this situation and in view of recent developments in the foreign
exchange markets, the Board concluded that an increase in the discount
rate— to bring it into closer alignment with short-term rates generally—
was called for in furtherance of the objectives of economic stabilization.
The discount rate is the rate charged member banks for borrowings
from their district Federal Reserve Banks.
Enclosed is a copy of this Bank's Operating Circular No. 13,
regarding discount rates.

Additional copies of the enclosure will be furnished

upon request.




A

lfred

H

ayes,

President.

FEDERAL RESERVE BANK
OF N E W YORK
Circular No. 13 ~l
Revised February 26, 1973 J
[ Operating

DISCOUNT RATES
To A ll M em ber Banks, and Others Concerned,
in the Second Federal R eserve D is tr ic t:

1. This Bank has established the following new rates, effective
February 26, 1973:
A rate of 5% per cent per annum on advances to, and discounts
for, member banks under sections 13 and 13a of the Federal
Reserve Act.
A rate of 6 per cent per annum on advances to member banks
under section 10(b) of the Federal Reserve Act.
A rate of 7% per cent per annum on advances to individuals,
partnerships, and corporations other than member banks under
the last paragraph of section 13 of the Federal Reserve Act.
Shown below is the schedule of rates now in effect at this Bank on
advances and discounts made under the Federal Reserve Act.
2. This circular supersedes our Operating Circular No. 13, Re­
vised January 15, 1973.
A lfred H ayes,

President.

Rate Schedule, Effective February 26, 1973
P er Cent
Per Annum

Advances to and discounts for member banks:
( a ) A d v a n ce s and d iscou n ts u n d er s e ctio n s 13 and 13a o f th e
F e d e ra l R e s e rv e A c t ................................................................

5%

( b ) A d v a n ce s u n d er s e c tio n 1 0 (b ) o f th e F e d e ra l R e s e rv e A c t

6

Advances to individuals, partnerships, and corporations
other than member banks:
A d v a n ce s u n d er la s t p a r a g r a p h o f s e ctio n 13 o f th e F ed era l
R eserve A c t ....................................................................................




7%