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THE UNDER SECRETARY OF THE TREASURY
WASHINGTON
March 27, 19UJU.
Dear Marriner:
In connection with the conference between the Secretary and the
Executive Committee to be held at eleven o'clock Wednesday, I thought you
might like to have the following points on which we want your advice and
recommendations 5




1.

The goal for the Fifth War Loan is to be $16 billion.
You probably noticed this in the paper and no doubt Ronald
has given you the reasons why the Secretary felt he had to
announce it.

2.

Should we increase the Certificate offering on May first
by, say, $2 billion in connection with the refunding of
the maturing Certificate amounting to $1,600 million, and
also increase the Certificate offering on August first by,
say, $1 billion in connection with the refunding of the
maturing Certificate of $2,500 million?

3*

The Treasury bill program. The memorandum which we have
presented to your technical staff recommends a bill
program of $100 million additional each week beginning
April sixth, increasing from time to time so as to raise
$7 billion of new funds by the end of the year.

i . Basket of securities. "What securities should be in the
j.
basket for the Fifth Vfer Loan? It has been suggested by
the other groups consulted that there should be no material change in the basket of securities except that a
2fo bond be substituted for the 2-I/I4/0. It has been suggested that there might be some restrictions put on the
eligibility of the 2% bond for banks, say for six months
or one year.
5. What date should the Drive begin? Suggestions have been
made for June 7th or ll+th to July 5th or 8th; also May
23rd to June lUth, allowing in either case two full
calendar months for accounting period.
6.

Should we permit insurance companies, savings banks,
pension funds, etc., , o purchase these securities on
t
a deferred payment plan?

- 2 7#

Should we continue plan adopted in Fourth War Loan Drive
of permitting commercial banks to subscribe for their
savings accounts, and if so, should it be extended to all
time deposits and should limit of 1200,000 be increased?

There is attached hereto a statement showing our estimated
balances to December 31, 19UU, assuming that the suggested Certificate
and bill programs are carried through and we get approximately the amounts
indicated in the Fifth and Sixth Drives.
Very truly yours,
(Signed) Dan

Honorable Marriner Eccles
Board of Governors of the
Federal Reserve System
Washington, D. C.




ESTIMATED CASH POSITION AND SUGGESTED FINANCING PROGRAM
(in millions of dollars)
New Financing
Month

Jan.-Feb.
March
April
May
June-July
August
September
October
Nov.-Dec,

Drive
sales l/

... $17,350
... 18,000
..•
... 17,000

$52,350

Savings bonds
and notes

$

950
1,200
1,200
1,200
1,200
1,200
-

$6,950

Bill
program

$

UOO
UOO
1,800
1,000
800
800
1,800

§7,000

Certificates
of
Indebtedness

Total
new
financing

Balance
at end of
month

-

$17,350

$17,300

950

lU.Uoo
10,Uoo

2,000

1,000

-

$3,000

i,6oo
3,600
19,800
3,200
2,000
2,000
18,800

7,900
16,000
13,700

069,300

016,000

11,100
6,500
16,000

l/ Includes sales to banks for account of time deposits.
Note: 1. If deferred payments are permitted for three months following each of the Fifth and Sixth Drives, then the amounts
shown to be raised in each of such Drives would be reduced and the reduction spread over subsequent months and
balances adjusted'accordingly. 2. Sales of Savings Bonds
and Notes during months of Drives are included in Drive
totalsf

March 25, 19UU.