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CIRCULAR N O . 64. FEDERAL RESERVE BANK OF N E W YORK N E W YORK, May To 22, 1917. THE C A S H I E R , SIR: This bank has to-day established a special rate of rediscount of 33-12% f ° r paper given for the purpose of purchasing Liberty Loan Bonds of the Government about to be issued, such paper having a m a t u r i t y of not exceeding ninety days. This special rate will only apply to the rediscount of paper which has been secured by a pledge from the customer to the member bank of United States bonds or interim receipts therefor or United States certificates of indebtedness. It is clearly desirable t h a t the coming issue of investor as rapidly as possible, and it will, therefore, banks freely, if desired, in order t h a t they in turn purchasing the bonds, permitting them, if necessary, p a y m e n t therefor. bonds should be absorbed by the ultimate be the policy of this bank to aid its member m a y give their customers every facility for to take a reasonable time to make complete While the desirability of having this special rate remain stable is fully recognized, its establishment a t the present time and under existing conditions should not be taken as an indication t h a t it will remain unchanged if circumstances require a different course. Advances to member banks m a y also be made by this bank for periods of not exceeding fifteen days, upon notes of member banks secured by such Government obligations. T h e rates of discount of this bank, effective from this d a t e until further notice are, therefore, as follows: For notes, drafts and bills of exchange, including promissory notes secured by collateral consisting of eligible paper or bonds, notes and certificates of indebtedness of the United States, having a m a t u r i t y a t time of discount of not more than 15 days 3% For notes, drafts and bills of exchange, having a maturity a t time of discount of more than 15 days and not more than 90 days 4% For agricultural paper having a maturity a t time of discount of more than 90 days and not more than six months 5% SPECIAL R A T E S For notes, drafts and bills of exchange issued or drawn for the purpose of buying or carrying bonds, notes or certificates of indebtedness of the United States, having a maturity at time of discount of not more than 90 days 3/^% For trade acceptances having a maturity a t time of discount of not more than 9<>days 3^% Respectfully, ^ - " R. H . T REMAN, Deputy Governor. FEDERAL RESERVE B A N K OF N E W Y O R K May 24, 1917 IMPORTANT The Secretary of the Treasury has advised us that a portion of the proceeds of tho sale of the 3 1/4$ certificates of indebtedness dated and to be paid for at this bank on May 25, 1917, v/ill not be required for several days; and in order not to disturb the money market we have been instructed to rcdoposit part of the proceeds in the banks subscribing to certificates. Vo shall be prepared to deposit with you on l.Iay 25, 1917, 0 for the credit of tho Federal Reserve Bank of Nov/ York as fiscal agent of tho Treasury Department, subject to withdrawal by the Federal Resorve Bank of Now York as such fiscal agent. You v/ill be required to pay interest at the rate of 2% per annum en tho amount deposited with you and to deposit with this bank 100$ security for such deposit. Security may consist of our interim receipt ftr United States certificates of indebtedness, assigned in blank, or other Government securities in negotiable form. In accordance with tho above and on receipt of payment to-morrow for your allotment of 3 1/4$ certificates of indebtedness and advice from you that you desire tho above deposit, v/e v/ill hand you our check for the amount of deposit drawn to your order for account of this bank as fiscal agent of the Treasury Department. V/e hope this will be agreeable to you and shall appreciate your early payment for the subscription a3 wo v/ish to complete the deposit arrangements by 1 p. m. May 25, 1917. Very truly yours,
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