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The following quotation is from the Dow Jones ticker
just recei^ds
"Federal Reserve - Govt. Bonds
flWashn - A P - The Federal Reserve Board has
pledged its support to President Truman to maintain the stability of Go^srnment se­
curities as long as the emergency lasts ,f\#iite House Press Secretary Joseph Short
announced this today saying there harce been
reports of differences of opinion between
the Treasury and the Federal Reserwe Board
"This is to quiet those rumors - Short said
"Members of the Federal Reserve Board conferred
with Mr. Truman yesterday - Secretary of the
Treasury Snyder did not attend the meeting.
11Add - Reserve - Govt. Bonds- "Wash - AP - A Treasury spokesman said The White
House ‘
announcement means the market for Govern­
ment securities will be stabilized at present
levels and that these levels will be maintained
during the present emergency.”
The reaction from the above-mentioned statement was generally
good. Restricted bonds, generally, recovered and are now up
about l/32. June 2j-s are now quoted at par 22, same as the Vic's
of Decej^ber 1967-72*
As of 2:1$ FM, the market tone was firm. There was no in­
surance selling. Some short maturities of bank eligible^ bonds
were being offered for sale, but nothing very large. Earlier
there was some demand for cash bills, which has since dried up#




It is reported that there is some doubt in the market as to
what is meant by the word "stabilization”and the level at which
stabilization would be accomplished. It seems to me tfyat .this + • .
latter should be taken care of through last paragrapflTpucJE^
above.