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CIRCULAR N O . 159
FEDERAL RESERVE BANK
OF NEW YORK
April 5, 1919
RESERVES
To STATE BANKS AND TRUST COMPANIES IN N E W YORK STATE :
The New York State Banking Law has recently been amended to provide that if any
bank or trust company shall have become a member of the Federal Reserve Bank it "shall
maintain such reserves with such federal reserve bank as are required by the federal
reserve act, and so long as it complies with the requirements of such federal reserve
act with reference to reserves, shall be exempt from the preceding provisions of this
section." The preceding provisions of the section referred to are those prescribing the reserves
which state banks and trust companies shall maintain. The effect of this amendment, therefore,
is to exempt state banks and trust companies which are members of the Federal Reserve System
from the reserve requirements of the State Law.
The reserve requirements of the Federal Reserve Act for member banks in the Second
Federal Reserve District are as follows:
NEW YORK CITY:
Borough of Manhattan
Boroughs of Brooklyn and Bronx
BUFFALO and ALBANY ("Reserve Cities")....
ELSEWHERE
Against
Demand Deposits
Against
Time Deposits
13%
10
3%
3
10
7
3
3
This amendment
(a)
reduces the percentage of reserve which a state institution, becoming a member of the Federal Reserve System, is required to
carry, and
(b)
makes it no longer necessary for such institutions to carry a
required percentage of their deposits in cash in vault, but leaves
them free to carry only such cash as their business requires.
PIERRE JAY,
Chairman.
@FedFRASER