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FED ER A L RESERVE BANK O F N EW YORK C ircular No. 7631 May 15, 1975 ] DISCOUNT R A T E S To A ll Member B an ks, and O thers Concerned, in the Second F ederal R e se rv e D istrict: T h e d i r e c t o r s o f t h i s B a n k , w i t h t h e a p p r o v a l o f t h e B o a rd o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y s te m , h a v e r e d u c e d t h e B a n k 's d i s c o u n t r a t e t o 6 p e r c e n t fro m 6- l / h p e r c e n t , e f f e c t i v e F r i d a y , May 1 6 , 1975* F o ll o w i n g i s t h e t e x t o f a s t a t e m e n t i s s u e d t o d a y b y t h e B o a rd o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y s te m : T h e B o a rd o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y s te m to d a y a p p ro v e d a c t i o n s by t h e d i r e c t o r s o f t h e F e d e r a l R e s e rv e B an k s o f B o s t o n , New Y o r k , P h i l a d e l p h i a , C l e v e l a n d , R ic h m o n d , A t l a n t a , C h ic a g o , S t . L o u is , K an sas C i t y , an d D a l l a s , re d u c in g t h e d i s c o u n t r a t e s o f t h o s e B an k s fr o m 6 - 1 / k p e r c e n t t o 6 p e r c e n t , e f f e c t i v e F r i d a y , May 1 6 . T h e a c t i o n w as t a k e n i n r e c o g n i t i o n o f d e c l i n e s t h a t h a v e o c c u rre d r e c e n tly in o th e r s h o rt-te r m i n t e r e s t r a te s and i s in te n d e d t o b r in g th e d is c o u n t r a t e i n t o b e t t e r a lig n m e n t w ith s h o rt-te rm r a te s g e n e ra lly . T h e d i s c o u n t r a t e i s t h e i n t e r e s t r a t e c h a r g e d m em ber c o m m e r c ia l b a n k s w hen t h e y b o r r o w fro m t h e i r d i s t r i c t F e d e r a l R e s e rv e B ank. E n c l o s e d i s a c o p y o f t h i s B a n k 's O p e r a t i n g C i r c u l a r N o. 1 3 , r e g a r d i n g d is c o u n t r a t e s . A d d itio n a l c o p ie s o f th e e n c lo s u r e w i l l b e f u r n is h e d upon re q u e s t. Al f r e d Ha y e s , President. FEDERAL RESERVE BANK OF N E W Y O R K C irc u la r N o. 18*1 R e v ise d M ay 10,1975 J [ O perating: DISCOUNT RATES To A ll Member Banks, and Others Concerned, in the Second Federal Reserve D istrict: 1. This Bank has established the following new rates, effective May 16, 1975: A rate of 6 percent per annum on advances to, and discounts for, member banks under sections 13 and 13a of the Federal Reserve Act, and advances under section 10(b) of the Act if secured by mortgage loans on one-family to four-family resi dences. A rate of 6 l/ 2 percent per annum on advances to member banks under section 10(b) of the Federal Reserve Act, except as otherwise indicated herein. A rate oi 7 y2 percent per annum on advances to member banks for prolonged periods and in significant amounts under section 10(b) of the Federal Reserve Act, except advances secured by mortgage loans on one-family to four-family residences. Shown on the reverse side 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 M arch 10, 1975. 13, A lfred H a y es, President. ( ov er ) Rate Schedule, Effective May 16,1975 Percent P er Annum A dvances to and discounts fo r m em ber banks: (a ) Advances and discounts under sections 13 and 13a of the Federal Reserve Act, and advances under section 10(b) of the Act if secured by mortgage loans on one-family to four-family residences ........ (b ) Advances under section 10(b) of the Federal Reserve Act, except as otherwise provided in this schedule ............................................................................. (c) Advances for prolonged periods and in significant amounts under section 10(b) of the Federal Reserve Act, except advances secured by mortgage loans on one-family to four-family residences ........ 6 6l/ 2 71 /2 A dvances to in dividu als, p a rtn ersh ip s , and corporations o th er than m em b er banks: Advances under last paragraph of section 13 of the Federal Reserve Act ..................................................... 9
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