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F ederal Reserve Bank DALLAS, TEXAS Dallas of 75222 Circular No. 73-159 June 29, 1973 INCREASES IN DISCOUNT RATE AM) RESERVE REQUIREMENTS To All Member Banks in the Eleventh Federal Reserve District: It was announced today, by the Board of Governors of the Federal Reserve System, that two actions have been taken which are designed to restrain continuing excessive expansion in money and credit. In regard to the discount rate, the Board today approved actions by the directors of several Federal Reserve Banks, including the Federal Reserve Bank of Dallas, increasing the discount rate of those banks from 6 \ percent to 7 percent, effective Monday, July 2, 1973* In a correspond ing action concerning reserve requirements, the Board has approved an In crease of one-half of one percentage point on all but the first $2 million of net demand deposits at member banks. This action will become effective in the reserve computation period beginning July 19 and will be applicable to the average net demand deposits held in the week beginning July 5 and ending July 11, 1973* It is projected that the increase in reserve require ments will remove some $800 million from the reserves that support the deposit and loan structure. ON NET DEMAND DEPOSITS OF RESERVE PERCENTAGE APPLICABLE First $2 million or less 8 percent (unchanged) Over $2 million to $10 million 10 l/2 percent Over $10 million to $100 million 12 l/2 percent Over $100 million to $to0 million 13 l/2 percent Over $^00 million 18 percent A revised. Supplement A of our Bulletin No. 2 (Loans) and Supple ment to Regulation D (Reserves of Member Banks) will be forwarded to you in the near future. Yours very truly, P. E. Coldwell President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)