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September 25, I9I42
BOARD OF GOVERNORS DF THE FEDERAL RESERVE SYSTEM

I. Public debt
(Billions of dollars)
Sept. 30, 19U2

90

Deo. 31, 19142

105

Dec. 31, 19U3

155

Dec. 31, 1914

205




Form F: R. 521
BOARD OF GOVERNORS

II,

OF THE FEDERAL RESERVE SYSTEM

Bank takings (including Federal Reserve)

A
Last quarter 19k2

Range
]
3

9

9

Year I9I4.3

30

20

Year I9I1I4.

30

20

A, Assuming banks take 60 per cent
of increase in total debt*
B#

Assuming banks take I. per cent
4O
of increase in total debt.




Form F.' R. j?21
BDARD OF GDVERNDRS

III,

OF THE FEDERAL RESERVE SYSTEM

Assume public debt indicated and currencygrowth of U billions a year, amount of
additional reserve funds that banks will
need in addition to present excess reserves (depending on range above):

Range

A
Last quarter of 19i|2 ... 0*7

Year I9U3
Year I9I4!*
Total

£
0,7

• 8,U 6.7
8«U
• •.. 17.5

6,7
l|.
i.l

If the demands were all met by open-market
purchases - the portfolio would be at the
end of I I . between 11 and 13 billions and
943
at the end of I I I . between 17 l/2 and 21
944
billions •




Form F. R. 521
BOARD DF GDVERNDRS

IV.

DF THE FEDERAL RESERVE SYSTEM

In absence of open-market operations this
would require reduction of required
reserves to an average of:
Per cent of member bank deposits
(adjusted demand plus time)

JL
Deceiver/19U2
December I9I4.3 . . . . •
December 19i|i4.

16*7
8
2#5

16.7
9
3

(Existing requirements average about 20 per
cent, minimum statutory requirements about
11 per cent)




Form F: R. 521
BOARD DF GOVERNORS

V.

DF THE FEDERAL RESERVE SYSTEM

If currency drain is met by open-market
operations ( i . e . if t o t a l reserves are
maintained a t 12 b i l l i o n dollars) r e quired reserves iwould have to be reduced
to an average of 5
A
Decenber I9J42
Decenber 19^3
December I9I4U •

]
B

20
15
12

20
16.7
llj.

In addition t h e portfolio would be a t the
end of 191*2 - 5 b i l l i o n s
19U3

- 9 billions

I9JUI4. - 13 b i l l i o n s