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FEDERAL RESERVE BANK OF CHICAGO 79 WEST MO NROE STREET OFFICERS DIRECTORS C . H . BOSWOR TH JAM ES B . M~OOUGAL GOVERNOR C.R. MC:KAY DEPUTY GOVERNOR W . F . Mc;LALLEN SECRETARY B .G. M~CLOUD CASH IE R W . F".M,;LALLEN CHAIRMAN AND F'EOEAAL R[SERYE AGENT DEPUTY FEDERAL RESERVE AGENT J.B. FORGAN , CHICAGO , ILLINOIS E . T . MEREOITH , DES MO I NES~IOWA M . B . HUTCH !SON • OTTUMWA . K)WA G . M . RE YNO LO 5 , CHI CAGO, ILLI NOIS E. L. JOHNSON , WATERLOO, IOWA A . H . VOGEL , MILWAUKEE , W ISCONSIN H . B . JOY , DETRO I T , MICHIGAN Bulletin No. 59 November 29, 1916 TO THE MEMBER BANKS OF DISTRICT NUMBER SEVEN: With the installment which was due Novembe r 16, 1916 , the transfer of the minimum amount of memb er banks' reserves required to be kept in the Federal Reserve Mnk under t he provis i ons of the Federal Reserve Act. has been completed. In order to i nsure the permanent maintenance of at least the minimum requirement, it is necessary to apply t he penalty for impairment, whic-h for the present is an interest charge fixed by t he Federal Reserve Board at a per annum rate of 2 per cent above the ninety day discount rate in this district, on the amount of the deficiency, but in no case l .ess than 6 per cent. Therefore, beginning with the month of December, 1916 , and each month thereafter until further notice is given , the penalty mentioned will be imposed, and as a basis for determining the deficiency in each case, such of our member banks as appear to be deficient in their reserve balances will be required to make two reports ea ch month (on forms to be supplied), giving the average minimum amount which they are required by law to keep on deposit with this bank; one report to cover the period from the first to the fifteenth, and the other from the sixteenth to the last day of the mon\p . The deficiency, if any is shown, will be fig ured for each period and the banks assessed monthly. https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis Respectfully, JAMES B. McDOUGAL Governor.