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F E D E R A L R E S E R V E BANK O F NEW YORK Circular No. 8343 May 11, 1978 DISCOUNT RATES To A ll Member Banks, and O thers Concerned, in the Second F ederal R eserve D istric t: 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 6 1/2 percent, effective today, May 11, 1978. 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 announced its approval of actions by the directors of 10 Federal Reserve Banks, increasing the discount rate of those banks from 6-1/2 percent to 7 percent, effective immediately. The actions were taken in recognition of increases that have already occurred in other short-term interest rates and will bring the discount rate into closer alignment with short-term rates generally. The discount rate is the interest rate that member banks are charged when they borrow from their district Federal Reserve Banks. The new rate is effective at the Federal Reserve Banks of New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City and San Francisco. Enclosed is a copy of this Bank's Operating Circular No. 13, regarding discount rates. P aul A. V olcker , President. F E D E R A L R E S E R V E BANK OF NEW YORK Circular No. lSI Revised May 11, 1978 c Operating' J DISCOUNT RATES To A ll Member Banks, and Others Concerned, in the Second Federal Reserve District: 1. This Bank has established the following new rates, effective May 11, 1978: 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, and on advances under section 10(b) of the Act if secured by mortgage loans on one-family to four-family resi dences. A rate of 7y2 percent per annum on advances to member banks under section 10(b) of the Federal Reserve Act, except as otherwise indicated herein. A rate of 8 percent per annum on advances to member banks for prolonged periods and for significant amounts under section 10(b) of the Federal Reserve x\ct, except advances secured by mortgage loans on one-family to four-family residences. A rate of 10 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 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. 13, Revised January 9, 1978. P aul A. V olcker, President. ( over) Rate Schedule, Effective May 11, 1978 Percent Per Annum Advances to and discounts for member 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 for significant amounts under section 10(b) of the Federal Reserve Act, except advances secured by mortgage loans on one-family to four-family residences... Advances to individuals, partnerships, and corporations other than member banks: Advances under last paragraph of section 13 of the Federal Reserve Act ................... 7 7j4 8 10
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