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F ederal reserve Bank OF DALLAS Dallas, Texas, June 28, 1947 To the Member Banks of the Eleventh Federal Reserve District: There is enclosed a copy of our revised Bulletin No. 4, dated July 1, 1947, relating to “ Reserve Requirements,” which supersedes our bulletin of the same number dated February 24, 1944. The only change of substance is the revision of procedure for the com putation of reserves to give effect to the termination of the exemption of War Loan Deposits from reserve requirements, effective July 1, 1947. Please file the revised bulletin in the ring binder containing the current bulletins of this bank and the Regulations of the Board of Governors of the Federal Reserve System, in lieu of Bulletin No. 4, dated February 24, 1944. Also, please acknowledge receipt of this bulletin on the enclosed post card. A supply of revised forms for reporting deposits will be furnished in ample time for use in making reports to this bank for the period beginning July 1, 1947. Yours very truly, R. R. GILBERT President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FEDERAL RESERVE BANK OF DALLAS BULLETIN No. 4 JULY 1, 1947 (Superseding Bulletin No. 4, dated February 24,1944) RESERVE REQUIREMENTS T o the Member Banks o f the Eleventh Federal Reserve D istrict: Unless otherwise stated, all references to the Federal Reserve Bank o f Dallas will include the head office and all o f its branches. Under Section 19 o f the Federal Reserve Act, as amended, every member bank is required to establish and maintain a reserve balance as prescribed by the Board of Governors o f the Federal Reserve System within the limitations set forth in the section mentioned. The percentages applicable to the various classes o f banks will be found in the current supplement to Regulation D issued by the Board o f Governors o f the Federal Reserve System. DEFINITIONS OF CLASSES OF DEPOSITS F or the determination o f reserve status and other purposes, the Board o f Governors o f the Federal Reserve System is authorized to define the various classes o f deposits. The Board’s definitions o f the terms “ Demand Deposits,” “ Gross Demand Deposits,” “ Savings Deposits,” “ Cash Items in Process of Collection,” and “ Net Demand Deposits” will be found in Regulation D. REPORTS OF DEPOSITS AND RELATED FIGURES In order that the Federal Reserve bank may determine whether reserves have been maintained as required by law, each member bank is required to report on forms provided for that purpose, the amounts of its gross demand deposits (broken down into “ demand deposits o f banks” and “ other demand deposits” ) , its balances subject to immediate withdrawal due from other banks, its cash items in process o f collection, and its time deposits. A ll such figures should be reported in thousands o f dollars. In preparing the report, the amounts reflected opposite each date must represent the balances as shown by the books o f the member bank at the open ing o f business on that date. The balances reported for Sunday must represent the balances at the close o f business the preceding Saturday and such figures must be repeated for the Monday following. The balances reported for a holi day must represent the balances at the close of the preceding business day and the same figures must be repeated for the day following the holiday. —2— BULLETIN No. 4 COMPUTATION OF RESERVES In determining the amount of required reserves, member banks are urged to follow the procedure set forth on page 1 o f the attached supplement. It will be noted that gross demand deposits are to be divided into (a ) demand deposits o f banks and (b ) other demand deposits, and should include all demand de posit liabilities. The figures reported should correspond with those called for in Schedule E o f June and December Condition Reports. For convenient re f erence, excerpts from the June and December Report o f Condition forms are reproduced on page 2 o f the supplement to this bulletin. STATUS OF DEPOSITS OF PUBLIC MONEYS OF THE UNITED STATES GOVERNMENT In submitting reports o f deposits, member banks should include the amount o f W ar Loan Deposits o f the United States in “ Other demand deposits’’ under “ Gross demand deposits.” Effective on and after July 1, 1947, member banks are required to main tain the same reserves against all deposits o f public moneys o f the United States, including W ar Loan Deposits and Series E bond accounts, as they are required by Section 19 of the Federal Reserve A ct to maintain against other demand deposits. PENALTIES FOR DEFICIENCIES IN RESERVES Penalties for deficiencies in the reserve balance o f a member bank will be assessed following each o f the reserve computation periods. The penalty for deficiencies in reserves has been fixed by the Board o f Governors o f the Federal Reserve System at a rate o f 2 % per annum above the Federal Reserve bank rate applicable to discounts o f 90-day commercial paper fo r member banks in effect on the first day o f the calendar month in which the deficiencies occurred. The right is reserved to withdraw, add to, or amend at any time, any ot the provisions o f this bulletin. Respectfully, R. R . G IL B E R T President Supplement to Bulletin No. 4 July 1, 1947 Form F . R. 414 (Effective July 1, 1947) COMPUTATION OF RESERVE TO BE CARRIED WITH THE FEDERAL RESERVE BANK BY MEMBER BANKS (For definitions o f the terms gross demand deposits, deductions allowed in computing reserves, cash items in process o f collection, net demand deposits and time deposits, see Regulation D of the Board of Governors o f the Federal Reserve System.) 1. GROSS DEMAND DEPOSITS: 2, (a) Demand deposits of banks1 - - - - (Corresponds to Items 4 and 5 in Schedule E o f June and December Con dition Reports2) $............... (b) Other demand deposits - - - - - (Corresponds to Items 1, 2, 3, and 6, in Schedule E o f June and December Condition Reports2) $..........«... $------------- DEDUCTIONS ALLOWED IN COMPUTING RESERVES: (a) Cash items in process o f collection, except to the extent included in Item 2-b (including checks with Federal Reserve Banks in process of collection and checks on hand which will be presented for payment or forwarded for collection on the following business day) - ........... (Corresponds to Item 1 in Schedule D o f June and December Condi tion Reports2) (b) Balances subject to immediate withdrawal due from other banks (includ ing cash items forwarded to a correspondent bank for collection and credit and charged to “ Due from banks” but excluding balances due from Federal Reserve Banks, from foreign banks or- branches thereof, from foreign branches of domestic banks, or from private banks1) - $............... $............... (Corresponds to Item 2 in Schedule D o f June and December Condition Reports2) 3. NET DEMAND DEPOSITS (Item 1 minus Item 2 ) ......................................................................... $.................. 4. TIME D E P O S I T S ............................................................................................................................... $.................. (See schedule F for June and December Condition Reports2 for items constituting time deposits) o. RESERVE REQUIRED3: (a) On net demand deposits (Item 3 above3) - (b) On time deposits (Item 4 above3) - - - - - - - - - (c) Total reserve to be maintained with Federal Reserve Bank o f Dallas - - - - - - - $............... - $....... ..... . - $............... 1 Reciprocal interbank demand deposits with banks in the United States, except private banks and American branches of foreign banks, must be reported net. 2For convenient reference in the preparation of reports of deposits for reserve purposes, there are printed on page 2 of the supplement to Bulletin No. 4, excerpts from the June and December Condition Report forms listing the captions under Schedules D, E, and F to which reference is made. 8For current required reserve percentages, see latest supplement to Regulation D. Supplement to Bulletin N o. 4 July 1, 1947 E X C E R P T S FR O M O F F IC IA L JU N E A N D D E C E M B E R R E P O R T O F CO N D ITIO N FO RM SCHEDULE D— CASH AND BALANCES WITH OTHER BANKS (INCLUDING RESERVE BALANCE AND CASH ITEMS IN PROCESS OF COLLECTION) 1. Cash Items in process of collection, including exchanges for clearing house - 8 2. Demand balances, excluding reciprocal balances, ■with banks in the U. S. (except private banks and American branches o f foreign banks) 3. 4. TOTAL o f Items 1 and 2 - - - - - - - - - Other balances with banks in the United States (including private banks and American branches o f foreign banks) . . . . . . . . 5. Balances with banks in foreign countries (including balances with foreign branches of other American banks) . 6. Currency and coin 7. 8. - - - - - - - - - Reserve with Federal Reserve Bank - - - - - - - - - - - TOTAL o f Items 3 to 7 (must agree with Item 1 c f “ Assets") - - SCHEDULE E— DEMAND DEPOSITS 1, Deposits o f individuals, partnerships, and corporations (must agree with Item 13 of “ Liabilities” ) 2. (a) Deposits of United States Government—War Loan and Series E bond accounts (b) Deposits o f United States Government— Other demand deposits of U. S. Govt. 3. Deposits o f States and political subdivisions - ..................................... - - 4. Deposits, excluding reciprocal balances, of banks in the U. S. (including private banks and American branches of foreign banks) . . . . . . 5. Deposits of banks in foreign countries (including balances of foreign branches of other American banks) - - - - 6. Certified and officers’ checks (including dividend checks), letters o f credit and travelers’ checks sold for cash, and amounts due to Federal Reserve Bank (transit account) (must agree with Item 18 of “ Liabilities") . . . . TOTAL DEMAND DEPOSITS SCHEDULE F— TIME DEPOSITS 1. Deposits of individuals, partnerships, and corporations (including $............... -..... deposits accumulated for payment of personal loans) (must agree with Item 14 o f “ Liabilities” ) - - - - - 2. Deposits o f United States Government $.............. , Postal savings deposits $............. 3. Deposits o f States and political subdivisions - - - - - - - - 4. Deposits o f banks in the United States (including private banks and American branches o f foreign banks) -5 5. Deposits o f banks in foreign countries (including balances of foreign branches of other American banks) - - - - - 6. TOTAL TIME DEPOSITS $--------
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