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Bulletin No. 227
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH LA
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March 11 , 1933.
SUBJECT: DISCOUNTS FOR INDIVIDUALS, PARTNERSHIPS AND CORPORATIONS
To All Banking Institutions in the
Seventh Federal R eserve District:
Our Bulletin No. 221 of August 1, 1932 referred to an amendment to Section 13 of the Federal
Reserve Act, as amended by the Act of July 21, 1932 with respect to Discounts for Inclivicluals, Partnerships and Corporations.
For your information Section 403 of the Act of March 9, 1933 amends Section 13 of the Federal
Reserve Act as amended by adding at the encl thereof the fo llowing new paragraph:
"Subject to such limitations, restriction s. and regulations as th e Federal Reserve Board
may prescr ibe, any Federal Reserve Bank may make advances to any individual, partnership,
or corporation on the promissory notes of such individual, partnership, or corporation secured by direct obligations of the United States. Such advances s hall be made for periods
not exceeding 90 clays and shall bear interest at rates fixed from time to time by th e Fede ral
Re serve Bank, subject to the review and determination of the Federal Reserve Board."
The Federal Reserve Board, pursuant to the power conferred upon it by the amendment quoted
above, has authorized all Federal reserve banks to mal~e advances secured by direct ob ligations of the
United States to any individua l, partnership or corporation.
Such advances will be made for periods
not exceeding ninety clays, will bear interest at the r ate of five per centum per annum, and will be
li mited to such amounts as are required to meet immediate payroll requirements.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
J AMES
B. McDouGAL,
Governor.
@FedFRASER