The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F E D E R A L R E S E R V E BA N K O F NEW YO R K No. 5 0 2 4 ~1 [ Circular December 27, 1966 J September 1 Statement on Business Loans and Discount Accommodation T o A ll M em ber B anks, and Others Concerned, in the Second F ed era l Reserve D is tr ic t: Our Circular N o. 5865, dated Septem ber 1, 1966, set forth the text o f a statem ent issued that day by the F ed eral R eserve System relating to business loans and discount adm inistration. The circumstances existing at that time have changed m aterially. The grow th o f total bank lending, and o f business lending by banks, has slowed substantially. T otal bank credit, after rapid increases earlier this year, has recently shown a declining trend. Banks have made commendable efforts to bring their policies and practices in line with the System policy o f avoiding an excessive expansion o f bank credit. M eanwhile, the pressures on financial m arkets that characterized last A u g u st have m oderated substantially. The System has therefore concluded that the Septem ber 1 statem ent has served its purpose, as the B oard of G overnors o f the F ed eral R eserve S ystem announced today. In these changed circumstances, the special factors referred to in that statem ent are no longer applicable. Thus, discount window adm inistration is not now specially concerned with the particular method by which a member bank adjusts its position to conform with R egulation A requirements. Our discount facilities remain available, as has always been the case, to meet appropriate seasonal or special needs that m ay arise, and under the same general rules that have applied in the past. A dditional copies o f this circular will be furnished upon request. A lfred H ayes, President.
@FedFRASER