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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.


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Federal Reserve Bank of St. Louis

Respectfully,

JAMES B. McDOUGAL
Governor.