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— ■ — FEDERAL RESERVE BANK OF NEW YORK Circular No. 8 6 3 7 r<September :71 18, 1979 L 'il DISCOUNT RATES To All Member Banks, and Others Coneemed, in the Second Federal Reserce District: T h e d ir e c to r s o f th is B a n k , w ith th e ap p roval o f th e B oard o f G overn ors o f th e F e d e r a l R eserv e S y ste m , h ave in c rea se d th e B a n k ’s d isc o u n t ra te to 11 p e r c e n t from 10-1/2 p ercen t, e ffe c tiv e W ed n esd a y , S e p te m b e r 19, 1979. F o llo w in g is th e te x t of a sta te m e n t issu ed tod ay by th e B oard o f G overnors o f th e F e d e r a l R e se rv e S y stem : T h e F e d e r a l R ese rv e B oard to d a y a p p ro v ed a c tio n s by th e d ir e c to r s o f th e F e d e r a l R e se r v e B a n k s o f B oston , N e w Y ork , C lev e la n d , R ich m o n d , A tla n ta , C h ica g o , S t. L ou is, M in n ea p o lis, D a lla s and S an F r a n c isc o , in c r e a s in g th e d isc o u n t r a te s o f th o se B a n k s from 1 0 -1 /2 p e r c e n t to 11 p erc en t, e ffe c tiv e W ed n esd a y , S e p te m b e r 19. T h e a ctio n w a s ta k e n a g a in s t th e b a c k g r o u n d o f r e c e n t in c r e a se s in o th e r sh o r t-te r m in te r e s t rates, to b r in g th e d isc o u n t r a te in to c lo se r a lig n m e n t w ith sh o r t-te r m r a te s g e n e r a lly , an d to d isc o u r a g e e x c e s s iv e b o r r o w in g by m e m b e r b a n k s at th e d isc o u n t w in d o w . T h e d isc o u n t ra te is th e in te r e st ra te th a t m e m b e r b a n k s a re c h a r g e d w h e n th e y b orrow from th e ir d istr ic t F e d e r a l R ese rv e B a n k s. T h e n ew r a te s c h e d u le for th is B an k , e ffe c tiv e S e p te m b e r 19, 1979, is as follow s: Percent Per Annum A d v a n c e s to a n d d isc o u n ts fo r m e m b e r b a n k s: ( a ) A d v a n c e s and d isco u n ts u n d er se c tio n s 13 an d 13a o f th e F ed er a l R e se r v e A c t, a n d a d v a n c es u nd er sectio n 1 0 ( b ) o f th e A c t if secu red b y m o rtg a g e lo a n s on o n e -fa m ily to fo u r -fa m ily r e s id e n c e s ............ 11 ( b ) A d v a n c e s u n d er se ctio n 1 0 ( b ) o f th e F ed er a l R e se r v e A c t, e x c e p t a s o th e r w ise p ro v id ed in th is sch ed u le .......................................................................................... 1 1 -1 /2 ( c ) A d v a n c e s fo r p ro lo n g ed p erio d s an d in sig n ifica n t a m o u n ts u n d er se ctio n 1 0 ( b ) of th e F ed er a l R e se r v e A c t, e x c e p t a d v a n c es secu red by m o rtg a g e loan s on o n e-fa m ily to fo u r -fa m ily re sid en ce s ............ 12 A d v a n c e s to in d iv id u a ls, p a rtn e rsh ip s, a n d c o rp o ra tio n s o th e r th a n m e m b e r b a n k s: A d v a n c e s u n d er last p aragrap h o f se ctio n 13 of the F ed era l R e se r v e A c t .............................................................. 14 A cop y o f th is B a n k ’s O p e r a tin g C ircu la r N o. 13, r e g a r d in g d isc o u n t ra tes, w ill be se n t to you tom orrow . T homas M. T im l e n , First Vice President.
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