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FED ER AL RESERVE BANK OF N EW YORK [" Circular No. 7 17 3 ~1 L June 29, 1973 J Changes in Discount Rates and Reserve Requirements To All Member Banks, and Others Concerned, in the Second Federal Reserve District: The directors of this Bank, with the approval of the Board of Governors of the Federal Reserve System, have increased the Bank’s discount rate to 7 percent from 6Y2 percent, effective Monday, July 2. Following is the text of a statement issued today by the Board of Governors of the Federal Reserve System: The Board of Governors of the Federal Reserve System today took two actions designed to restrain continuing excessive expansion in money and credit. The B oard: — Approved actions by the directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco increasing the discount rate of those. Banks from 6!/2 percent to 7 per cent, effective Monday, July 2. — Increased reserve requirements on all but the first $2 million of net demand deposits at member banks by one-half of one percentage point. This action will become effective in the reserve computation period beginning July 19 and will be applicable to the average net demand deposits held in the week beginning July 5 and ending July 11. The increase in reserve requirements will remove some $800 million from the reserves that support the deposit and loan structure of banks. The new reserve requirement structure is : On net demand deposits of Reserve percentage applicable First $2 million or less Over $2 million to $10 million Over $10 million to $100 million Over $100 million to $400 million Over $400 million 8 percent (unchanged) IOV2 percent 12Vi> percent 131/-) percent 18 percent Enclosed is a copy of this Bank’s Operating Circular No. 13, regarding discount rates. The Supplement to Regulation D, “ Reserves of Member Banks,” reflecting the increase in reserve requirements, will be sent to you shortly. A lfred H ayes, President. Federal reserve Bank OF N EW YORK Circular No. 13 ~1 Revised July 2, 1973 J [ Operating DISCOUNT RATES To All Member Banks, and Others Concerned, in the Second Federal Reserve District: 1. This Bank has established the following new rates, effective July 2, 1973: A rate of 7 percent per annum on advances to, and discounts for, member banks under sections 13 and 13a of the Federal Reserve Act. A rate of 7^2 percent per annum on advances to member banks under section 10(b) of the Federal Reserve Act. A rate of 9 percent per annum on advances to individuals, partnerships, and corporations other than member banks under the last paragraph of section 13 of the Federal Reserve Act. Shown below is the schedule of rates now in effect at this Bank on advances and discounts made under the Federal Reserve Act. 2. This circular supersedes our Operating Circular No. Revised June 11, 1973. A lfred 13, H ayes, President. Rate Schedule, Effective July 2, 1973 Percent Per Annum Advances to and discounts for mem ber banks: (a ) A dvan ces and discounts under .sections 13 and 1 3a o f the F edera l R eserve A c t ............................................................. (b ) A d van ces under section 1 0 ( b ) A ct 7 o f the F ederal Reserve .......................................................................................................... 7% Advances to individuals, partnerships, and corporations other than member banks: A d v an ces under last p aragrap h o f section 13 o f the F ederal Reserve A c t ......................................................................................... 9
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