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FEDERAL RESERVE BANK
OF NEW YORK
No. 1003, October 24, 1930T
[Circular
Reference to Circular No. 902 J
Amendment to Regulation D Permitting Computation of Deficiencies in Reserves on the Basis of
Member Banks Deposits at Opening of Business Instead of Close of Business
To Each Member Bank in the
Second Federal Reserve District:
For your information we quote below a letter from the Federal Reserve Board dated
October 2, 1930, announcing an amendment to its Regulation D.
The Federal Reserve Board has amended subsection (a) of Section IV of its Regulation D so
as to provide that, in computing penalties for deficiencies in reserves, the required reserve balance
of each member bank at the close of business each day shall be based upon its net deposit balances
at the opening of business, instead of the close of business, on the same day. No change, however,
was made in the existing practice of computing such deficiencies on the basis of average daily net
deposit balances covering semiweekly, weekly or semimonthly periods.
The amendment becomes effective as to each member bank at the beginning of the first reserve
computation period of such member bank commencing after midnight on October 31, 1930.
Section IV (a) of the Regulation, as amended, reads as follows:
' ' SECTION IV. PENALTIES FOR DEFICIENCIES IN RESERVES
1
• Inasmuch as it is essential that the law with respect to the maintenance by member banks of
the required minimum reserve balances be strictly complied with, the Federal Reserve Board, under
authority vested in it by section 19 of the Federal reserve act, hereby prescribes the following
rules governing penalties for deficiencies in reserves:
"(a) Basic penalty.
" ( 1 ) Deficiencies in reserve balances of member banks in cities where Federal reserve banks
or branches thereof are located and in such other reserve cities as the Federal Reserve Board may
designate from time to time will be computed on the basis of average daily net deposit balances
covering semiweekly periods. Deficiencies in reserve balances of member banks in all other reserve
cities will be computed on the basis of average daily net deposit balances covering weekly periods.
Deficiencies in reserve balances of other member banks will be computed on the basis of average
daily net deposit balances covering semimonthly periods.
" (2) In computing such deficiencies the required reserve balance of each member bank at the
close of business each day shall be based upon its net deposit balances at the opening of business
on the same day; and the semiweekly, weekly and semimonthly periods referred to in paragraph
(1) hereof shall end at the close of business on days to be fixed by the Federal reserve banks with
the approval of the Federal Reserve Board.
" ( 3 ) Penalties for such deficiencies will be assessed monthly on the basis of average daily
deficiencies during each of the reserve computation periods ending in the preceding calendar month.
" (4) Such penalties shall be assessed at a basic rate of 2 per cent per annum above the Federal reserve bank discount rate on 90 day commercial paper, in effect on the first day of the calendar month in which the deficiencies occurred."
By Order of the Federal Reserve Board.
It is hoped that the change accomplished by the foregoing amendment to Regulation D,
in the method of averaging daily net deposit balances, will be of advantage to member banks.
We enclose a small supply of the revised form for your use in reporting to this bank
your net demand and time deposits for the periods commencing on and after November 1,1930.
We will furnish additional copies of this form upon request. No change is made in the method
of computing net deposits subject to reserves, and F. R. Board Form St. 6059, a copy of which
accompanied our Circular No. 902 of February 1, 1929, may still be used for this purpose.
GEORGE L. HARRISON,
Governor.
B B 20 6M-10-30
REPORT OF NET DEMAND AND TIME DEPOSITS
FOR WEEK ENDING FRIDAY
TO BUFFALO BRANCH
FEDERAL RESERVE BANK OF NEW YORK
REPORT FIGURES IN NEAREST EVEN HUNDRED AS AT OPENING OF BUSINESS ON DAY
INDICATED.
FOR SUNDAYS AND HOLIDAYS USE SAME FIGURES AS FOR FOLLOWING
BUSINESS DAY.
•
FIRST PERIOD
DATE
DAY
AMOUNT OF
NET DEMAND DEPOSITS
AMOUNT OF
TIME DEPOSITS
SATURDAY
SUNDAY
MONDAY
TUESDAY
TOTAL
AVERAGE
RESERVE
REQUIRED
1O"i OR 13=i O F
NET DEMAND DEPOSITS
3°i OF
TIME DEPOSITS
AVERAGE RESERVE REQUIRED TO
TOTAL
{ BE ON DEPOSIT WITH THE FEDERAL
RESERVE BANK OF NEW YORK
SECOND PERIOD
DATE
DAY
AMOUNT OF
NET DEMAND DEPOSITS
AMOUNT OF
TIME DEPOSITS
WEDNESDAY
THURSDAY
FRIDAY
TOTAL
AVERAGE
RESERVE
REQUIRED
1Ofo OR 13"i OF f .
NET DEMAND DEPOSITS
3"i
OF $_
TIME DEPOSITS
AVERAGE RESERVE REQUIRED TO
TOTAL
BE ON DEPOSIT WITH THE FEDERAL
RESERVE BANK OF NEW YORK
I HEREBY CERTIFY THAT THE ABOVE STATEMENT IS CORRECT AND IN ACCORDANCE
THE BOOKS OF THIS BANK AND THAT THE FIGURES
SHOWN ABOVE UNDER
WITH
NET DEMAND
DEPOSITS AND TIME DEPOSITS RESPECTIVELY HAVE BEEN COMPUTED IN ACCORDANCE WITH
FORM PRESCRIBED BY THE FEDERAL
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BUFFALO BRANCH
FEDERAL RESERVE BANK OF NEW YORK
REPORT OF NET DEMAND AND TIME DEPOSITS
FOR HALF MONTH FROM.
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-TO.
-193-
(DAY)
REPORT FIGURES IN NEAREST EVEN HUNDRED AS AT OFENING OF BUSINESS ON DAY
INDICATED.
FOR SUNDAYS AND HOLIDAYS USE SAME FIGURES AS FOR FOLLOWING
BUSINESS DAY.
AMOUNT OF
NET DEMAND DEPOSITS
AMOUNT OF
TIME DEPOSITS
16
18
2O
21
22
24
1O
28
11
26
12
27
13
28
14
29
15
3O
31
TOTAL
AVERAGE FOR
HALF MONTH
RESERVE
7% OF * -
3 * OF * TOTAL
REQUIRED
NET DEMAND DEPOSITS
TIME DEPOSITS
( AVERAGE RESERVE REQUIRED TO
\ BE ON DEPOSIT WITH THE FEDERAL
( RESERVE BANK OF NEW YORK
I HEREBY CERTIFY THAT THE ABOVE STATEMENT IS CORRECT AND IN ACCORDANCE WITH
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B 3 20 6M-1O-30
REPORT OF NET DEMAND AND TIME DEPOSITS
FOR WEEK ENDING FRIDAY_
TO ACCOUNTING DEPARTMENT
FEDERAL RESERVE BANK OF NEW YORK
REPORT FIGURES IN NEAREST EVEN HUNDRED AS AT OPENING OF BUSINESS ON DAY
INDICATED.
FOR SUNDAYS AND HOLIDAYS USE SAME FIGURES AS FOR FOLLOWING
BUSINESS DAY.
FIRST PERIOD
DATE
AMOUNT OF
NET DEMAND DEPOSITS
DAY
AMOUNT OF
TIME DEPOSITS
SATURDAY
SUNDAY
MONDAY
TUESDAY
TOTAL
AVERAGE
RESERVE
REQUIRED
10% OR 13°i OF $_
NET DEMAND DEPOSITS
OF
$.
TIME DEPOSITS
AVERAGE RESERVE REQUIRED TO
BE ON DEPOSIT WITH THE FEDERAL
RESERVE BANK OF NEW YORK
TOTAL
SECOND PERIOD
DATE
DAY
AMOUNT OF
NET DEMAND DEPOSITS
AMOUNT OF
TIME DEPOSITS
WEDNESDAY
THURSDAY
FRIDAY
TOTAL
AVERAGE
RESERVE
REQUIRED
10% OR 13°i OF $_
NET DEMAND DEPOSITS
OF $_
TIME DEPOSITS
C AVERAGE RESERVE REQUIRED TO
T O T A L
\
BE ON DEPOSIT WITH THE FEDERAL
( RESERVE BANK OF NEW YORK
$
I HEREBY CERTIFY THAT THE ABOVE STATEMENT IS CORRECT AND IN ACCORDANCE
THE BOOKS OF THIS BANK AND THAT THE FIGURES SHOWN ABOVE UNDER
WITH
NET DEMAND
DEPOSITS AND TIME DEPOSITS RESPECTIVELY HAVE BEEN COMPUTED IN ACCORDANCE WITH
THE FORM PRESCRIBED BY THE
FEDERAL RESERVE BOARD FOR THAT PURPOSE.
R B 13.2 17M 1O-3O
ACCOUNTING DEPARTMENT
RESERVE BALANCE SECTION
FEDERAL RESERVE BANK OF NEW YORK
REPORT OF NET DEMAND AND TIME DEPOSITS
.193-
-TO-
FOR HALF MONTH FROM.
REPORT FIGURES IN NEAREST EVEN HUNDRED AS AT OPENING OF BUSINESS ON DAY
INDICATED.
FOR SUNDAYS AND HOLIDAYS USE SAME FIGURES AS FOR FOLLOWING
BUSINESS DAY.
AMOUNT OF
NET DEMAND DEPOSITS
DATE
1
16
2
17
3
18
4
19
8
20
6
21
7
22
8
23
9
24
1O
28
11
26
12
27
13
28
14
20
IB
3O
AMOUNT OF
TIME DEPOSITS
•
•
31
AVERAGE FOR
HALF MONTH
RESERVE
REQUIRED
7". OF * NET DEMAND DEPOSITS
3% OF STIME DEPOSITS
TOTAL
REQUIRED TO
THE FEDERAL
EW YORK
I HEREBY CERTIFY THAT THE ABOVE STATEMENT IS CORRECT AND IN ACCORDANCE WITH
SHOWN ABOVE UNDER NET DEMAND
BEEN COMPUTED IN ACCORDANCE WITH
BOARD FOR THAT PURPOSE.
THE
OF THIS BANK AND THAT THE FIGURES
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FRASER
DEPOSITS AND TIME DEPOSITS RESPECTIVELY HAVE
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