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or  were  to  be  used  for  carrying  certificates  or  bonds.
Beyond  this  a  general  assurance  was  given  savings
banks  and  trust  companies  that  “  the  Board  desired
in  every  way  to  cooperate  with  them  in  avoiding
stringency  and  that  the  Federal  Reserve  banks  were
prepared  to  extend  through  member  banks  every
reasonable  accommodation  not  inconsistent  with  law
for  the  purpose  of  relieving  any  strain  which  might
result  from  withdrawals  of  deposits  for  purchases
of  government  deposits.”  31
This  policy  of  preparedness  involved  important
changes  in  discount  schedules  and  rates,  as  follows ­
  :  32
1.  The  establishment  of  a  rate  of  three  per  cent,  per
annum  for  the  discount  at  Federal  Reserve  Banks  of  notes
of  member  banks  running  not  longer  than  15  days  secured
by  Treasury  certificates  of  indebtedness.
2.  The  establishment  of  a  rate  of  discount  at  Federal
Reserve  banks  of  three  and  one-half  per  cent,  per  annum
for  customers’  notes  running  up  to  90  days,  secured  by
Government  obligations  and  indorsed  by  member  banks,
when  such  notes  had  been  made  for  the  purpose  of  obtaining ­
  funds  for  the  purchase  of  Government  obligations.
3.  The  authorization  of  Federal  Reserve  banks  to  discount ­
  for  member  banks,  on  behalf  of  non-member  banks,
notes  of  non-member  banks  or  their  customers,  secured  by
Government  obligations,  for  the  purpose  of  obtaining
funds  with  which  to  purchase  United  States  bonds  or
notes.
4.  The  establishment  of  a  one-day  rate  of  from  two
to  four  per  cent,  at  New  York  for  the  purpose,  of  restoring
to  the  market,  funds  temporarily  withdrawn  through  Government ­
  loan  operations.
31  Federal  Reserve  Bulletin,  June,  1917,  PP-  4 2 5-6-32
  “  Fourth  Annual  Report  of  Federal  Reserve  Board,”  pp.
5-6.