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FEDERAL RESERVE BANK
OF NEW YORK

r Circular No.

L

3 4 6 7 "I
June 29, 1949
J

SUPPLEMENT TO REGULATION D
Reserves Required To Be Maintained By Member Banks
With Federal Reserve Banks

Reductions in Reserve Requirem ents

To all Member Banks in the
Second Federal Reserve District:

The Board of Governors of the Federal Reserve System has today amended the Supple­
ment to Regulation D, a printed copy of which is enclosed, reducing reserve requirements
of member banks effective as to member banks not in reserve and central reserve cities at the
opening of business on July 1, 1949, and as to member banks in reserve and central reserve
cities at the opening of business on June 30, 1949.
We quote below from a statement released for publication today by the Board of Gover­
nors of the Federal Reserve System regarding this action:
The temporary authority granted by Congress for increased reserves . . . expires June 30 and the
Board has accordingly revised the Supplement to Regulation D, under which the following reserve
requirements will be effective with the beginning of the next reserve period (June 30 for central reserve
city and reserve city member banks and July 1 for other member banks) : against net demand deposits
— 24 per cent for central reserve city member banks, 20 per cent for reserve city member banks, and
14 per cent for other member banks; against time deposits— 6 per cent for member banks of all classes.
The changed requirements will result in a reduction of approximately $800,000,000 in required reserves.

Additional copies of this circular and of the enclosed supplement will be furnished upon
request.




A

llan

S proul,

President.

SUPPLEMENT TO REGULATION D
ISSUED B Y TH E BOARD OF GOVERNORS OF TH E FEDERAL RESERVE SYSTEM

Effective as to member banks not in reserve and central reserve cities at
opening of business on July 1, 1949, and as to member banks in reserve
and central reserve cities at opening of business on June 30, 1949.

RESERVES REQUIRED TO BE
M AINTAINED B Y MEMBER BANKS
W IT H FEDERAL RESERVE BANKS
Pursant to the provisions of section 19 of the Federal Reserve Act
and section 2(a) of its Regulation D, the Board of Governors of the
Federal Reserve System hereby prescribes the following reserve bal­
ances which each member bank of the Federal Reserve System is
required to maintain on deposit with the Federal Reserve Bank of its
district:
6 per cent of its time deposits plus—
14 per cent of its net demand deposits if not in a reserve or cen­
tral reserve city ;
20 per cent of its net demand deposits if in a reserve city, except
as to any bank located in an outlying district of a reserve city or in
territory added to such city by the extension of the city’s corporate
limits, which, by the affirmative vote of five members of the Board of
Governors of the Federal Reserve System, is permitted to maintain
14 per cent reserves against its net demand deposits;
24 per cent of its net demand deposits if located in a central
reserve city, except as to any bank located in an outlying district of
a central reserve city or in territory added to such city by the exten­
sion of the city’s corporate limits, which, by the affirmative vote of
five members of the Board of Governors of the Federal Reserve
System, is permitted to maintain 14 per cent or 20 per cent reserves
against its net demand deposits.




PRINTED IN NEW YORK


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102