The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL RESERVE BANK OF DALLAS Dallas, Texas, April 16, 1938 RESERVES REQUIRED TO BE MAINTAINED BY MEMBER BANKS WITH FEDERAL RESERVE BANKS To the Member Bank Addressed: We are enclosing herewith a supplement to Regulation D which was adopted on April 15, 1938, by the Board of Governors of the Federal Reserve System. It will be noted that the reduced reserve requirements prescribed by this supplement became effective as to each member bank at the opening of business April 16, 1938. All previous supplements to Regulation D are revoked and superseded and should be withdrawn from your files. Simultaneously with the adoption of the supplement the Board of Governors of the Federal Reserve System issued the following press statement regarding its action: “ As a part of the Government’s program for encouragement of business recovery, the Board of Governors has reduced reserve requirements on all classes of deposits for all member banks, effective at the opening of business on April 16, 1938. By this action excess reserves of member banks will be increased by about $750,000,000. “ Reserve requirements in effect prior to April 16, 1938, and thereafter are shown in the following table: • C L A SS E S O F M E M B E R B A N K S A N D O F D E P O S IT S P r io r to A p r il 16 P e r cen t B e g in n in g A p r il 16 P e r cen t Demand deposits: Central reserve city banks............................ ... 26 Reserve city banks....... .................................. ... 20 Country banks ................................................... 14 22% 171/2 12 Time deposits: All classes of member banks.......................... ... 6 5 ” Yours very truly, b. a . McKi n n e y , President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM SUPPLEMENT TO REGULATION D Effective as to each member bank at the opening of business on April 16,1938 R e s e r v e s required to be maintained b y m em b er banks w ith F ed era l R e s e r v e banks Pursuant to the provisions of section 19 of the Federal Re serve Act and section 2(a) o f its Regulation D, the Board of Governors of the Federal Reserve System hereby prescribes the following reserve balances which each member bank of the Fed eral Reserve System is required to maintain on deposit with the Federal Reserve bank of its district: 5 per cent of its time deposits, plus— 12 per cent of its net demand deposits if not in a Re serve or Central Reserve City. 171/2 per cent of its net demand deposits if in a Reserve City, except that if located in an outlying district of a Reserve City or in territory added to such city by the extension of the city corporate limits such bank may, upon the affirmative vote of five members of the Board of Gov ernors of the Federal Reserve System, be permitted to maintain 12 per cent reserves against its net demand de posits. 22% per cent of its net demand deposits if located in a Central Reserve City, except that if located in an outlying district of a Central Reserve City or in territory added to such a city by the extension of the city corporate limits, such bank may, upon the affirmative vote of five members of the Board of Governors of the Federal Reserve System, be permitted to maintain 12 per cent or 1 7 per cent reserves against its net demand deposits. The supplements to Regulation D which have previously been issued are hereby revoked and superseded.
@FedFRASER