First Revision of the "Rate of Discount," Sec. 25
Title
First Revision of the "Rate of Discount," Sec. 25
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18861
Date
No date
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
First Revise.
RATE OF DISCOUNT.
Sec. 25. That Tthe Board shall establish from time to time a normal rate of discount which shall be uniform at all branches and all sub branches of the Bank, except as herein provided, and the Board shall renew or change such normal rate at stated meetings to be held at least once in each week and shall immediately publish the normal rate so renewed or changed. The normal rate of discount so established shall be charged by the branches and sub branches of the Bank to depositing banks and trust companies, with respect to all rediscounts of such banks and trust companies up to but not exceeding the amount of 20 per centum of the unimpaired capital and surplus of each such bank or trust company; and the rate of discount charged by the branches and sub branches of the bank upon all rediscounts in excess of such twenty per cent. shall be increased by the Board for each ten per cent. of increase in such rediscounts above such twenty per ecent. The additional rates of discount established by the Board upon such rediscounts in excess of said twenty per cent. shall in like manner be uniform throughout the country, but such additional rates may be established by the Board in progressively increasing amounts for each ten per cent. of excess redicscounts above the said twenty per cent., and such additional rates of discount above the normal rate shall, in like manner, be published from time to time by the Board.
RATE OF DISCOUNT.
Sec. 25. That Tthe Board shall establish from time to time a normal rate of discount which shall be uniform at all branches and all sub branches of the Bank, except as herein provided, and the Board shall renew or change such normal rate at stated meetings to be held at least once in each week and shall immediately publish the normal rate so renewed or changed. The normal rate of discount so established shall be charged by the branches and sub branches of the Bank to depositing banks and trust companies, with respect to all rediscounts of such banks and trust companies up to but not exceeding the amount of 20 per centum of the unimpaired capital and surplus of each such bank or trust company; and the rate of discount charged by the branches and sub branches of the bank upon all rediscounts in excess of such twenty per cent. shall be increased by the Board for each ten per cent. of increase in such rediscounts above such twenty per ecent. The additional rates of discount established by the Board upon such rediscounts in excess of said twenty per cent. shall in like manner be uniform throughout the country, but such additional rates may be established by the Board in progressively increasing amounts for each ten per cent. of excess redicscounts above the said twenty per cent., and such additional rates of discount above the normal rate shall, in like manner, be published from time to time by the Board.
Original Format
Miscellaneous
To
Strong, Benjamin, 1872-1928
Files
Collection
Citation
Strong, Benjamin, 1872-1928, “First Revision of the "Rate of Discount," Sec. 25,” No date, WWP18861, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.