Full text of Federal Reserve Bank of New York Circulars : 7207. Discount Rates

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FEDERAL RESERVE BANK
OF N EW YORK

["Circular No. 7 2 0 7 "I
L August 13, 1973 J

DISCOUNT RATES

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 7 percent, effective Tuesday, August 14.
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 approved actions
by the directors of the Federal Reserve Banks of New York, Philadelphia, Cleveland,
Richmond, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco
increasing the discount rate o f those banks from 7 percent to 7*/2 percent, effective
Tuesday, August 14.
The action was taken in recognition of increases that have already occurred in
other short-term interest rates and is intended to bring the discount rate— which is
the rate charged member banks for borrowings from their district Federal Reserve
Banks— into better alignment with short-term rates generally.

Enclosed is a copy of' this Bank’s Operating Circular No. 13, regarding
discount rates. Additional copies of the enclosure will be furnished upon request.




A

lfred

H

ayes,

President.

FED ER AL RESERVE B A N K
OF NEW YORK
Circular No. 13 *1
[ Operating
Revised August 14, 1973-1

DISCOUNT RATES
To All Member Batiks, and Others Concerned,
in the Second Federal Reserve District:

1. This Bank has established the following new rates, effective
August 14, 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 8 percent per annum on advances to member banks
under section 10(b) of the Federal Reserve Act.
A rate of 9Y2 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 July 2, 1973.

13,

A lfred H a y e s ,

President.

Rate Schedule, Effective August 14, 1973
Percent
Per Annum

Advances to and discounts for member banks:
(a) Advances and discounts under sections 13 and 13a of
the Federal Reserve A c t .....................................................

7V£>

(b) Advances under section 10(b) of the Federal Reserve
Act .............................................................................................

8

Advances to individuals, partnerships, and corporations
other than member banks:
Advances under last paragraph of section 13 of the Federal
Reserve A c t ..............................................................................




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