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Form F. R. 511 TO FROM REJ4ARKS: The a t t a c h e d l e t t e r handed t o t h e Secret a r y of t h e Treasury by Chairman Eccles a t a meeting a t 10:00 a . m . , August 7 , a t t h e Treasury with t h e S e c r e t a r y , Mr. Wiggins and Mr. B a r t e l t . CHAIRMAN'S OFFICE 7 . 3L9U7- *JoJia W* ©f the Treasury, Bear Johnt !Cls# IPHMHQF*! refunding progress for September asd October jaaturitiee was diseutsed at yesterday's Meeting of the aSxeeutlYe QnB&i.ttee ox the Federal Open Market Goinaittee* the Ceo&ittee reooi»~ is«cds that the eertifieate iseue maturtsg ©a September 1 b lato & lOia^fitk* 7^/b p»r ««nt • a r t i f l t a t t * to b« followed b^ a fusrtUja^ oi' tfet i V?4. «®4 i l/2 p#r 0#n% n©t»« aikttiriBg; HI &#ft«ab®s* 15 into a 12 1/fe m«s%h« I mr o«nt note a&d « ref^Bding of th« eertlfioatee ®&turiiig ©a Octeijer 1 into a ISMnssithe 1 par eent ©srtificst«» fhi« pi^>gi*m would provide for & gradual upward adiurteent In t ^ r*te wad weald lead to ft convenient spacing of carti fle«ite ia tim wemd half of 191$ ixtelttding 6*1 billion dollare te suture <m July 1 w®& %B Million ioll&rs t e :^at«r# mi Oetober 1* fk$ reftindiag profram for Oeteber and HoTeBber pf this N | MKV ni^ht then be adjusted to provide for a further meturlty on J^eeiaber 1, u As aa elternftti^ai te the ftbete -^regnBi, the eertifieetea om Septenlwr 1 ml^ht 1J« r®fa*ided into & 1^-Ronthii 1 per cent note, this a#*r notQ tofe©made available su§ ivell t o tfe« holders of jiotee isaturing on Septsiaber 15# after allovanee for an interest adjustment. ifee sabseqaetit refunding ef the Oetober 1 oertifiomtes would toe- iia.'te a 12«eoxithc 1 p«r eent o«rM-^c®te* %Mle %• is Mil would %• a«c«|rtabl# to UN Centaltt@#» the would be prefermfel©. I t i«ei3ld ororide for a up oi' th« eertifleate rat® on September If would have tfee advantage of abaadenlxjg the ife per eent rate in eoiuaeetios witli the rai'undisig of notea rather than of csertifle&tes, and would provide for a l?«tter spaoiag of eertiileate imturitiee in the seooisd half of 19U3* the Cois^dtte® believes +;hat & progjms ef this klad would be best suited t o ©eeossplish a gradual tipmrd adjusts»nt i a the eertifloat© rate with a mlni^im oi diaturbanee in the priee of eutetaadlng eertlfieates. l a following up the progrmn, the Cosssit1»e rogr#s« ••31 bo bond arior to to Oototowp 155 with whi«li t« on isho i t M M t t »f a Ckt pojr ooat bond*, that imxb $t* ©3 if Million d»llwr«# Is t , tamt It to or n«td i*«sr Should * in th* if um oi la thi to Ittao of <m« •: • •.-« c 0 p Y THE UNDER SECRETARY OF THE TREASURY WASHINGTON August lU, 19U7 Dear Marriner: For Secretary Snyder I acknowledge your letter of August 7th containing suggestions for the September financing program of the Treasury. In the preparation of the program, we conferred freely with members of the staff of the Board of Governors and with Mr. Rouse and his assistant, and have given careful consideration to all of the suggestions contained in your letter and of the comments of these men. We believe that with one exception the program finally adopted represents the unanimous judgment of all who participated in these conferences. The September financing program will be announced in the morning papers on Monday, August 10th. We appreciate the fine cooperation between the Federal Reserve and the Treasury toward the common objectives of soundly administering the public debt. Sincerely, (Signed) A. L. M. Wiggins. A. L. M. Wiggins, Under Secretary of the Treasury. honorable I/I. S. Eccles, Chairman Federal Open Market Committee Federal Reserve System Washington, D. C,
@FedFRASER