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BOARD DF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence Date March 10 t Board of Governors Subject! Estimated daily drain 01 Thomas Itee Smith ba^y reserves due to Treasury operations during March* According to current estimates, Treasuiy transactions will drain a considerable amount of reserve funds from the banks during the next two weeks* As shown below* the increase in Treasury deposits at Federal Reserve Banks during this calendar week accelerates and, after allowing for retirement of 100 million dollars of bills on Jferoh 11, nearly $00 million will be drained from bank reserves in the week as a whole* Next Monday the Treasury will make substantial payments for interest and retirement of March bonds* The decline in Treasury deposits on that day will be about 630 million, but since some of the bonds are held by the Federal Reserve, the net increase in bank reserves from Treasury transactions will amount to about 450 million* In the following days* Treasury deposits will be built up rapidly and for the remainder of that week ending the 20th there will be a total drain of about l*i». billion dollars* Further drain will oocur in the following week, but at a reduced rate, with the total for the remainder of the month at probably 1 billion* The Treasury's current estimates, also shown in the tabjle indicate a slightly larger increase in balances during the 7j£e*l^week and a smaller increase in the last half of the month* Estimated Treasury Deposits With Reserve Banks (At end of day; in millions of dollars) F.E.B. estimate Date March 8 9 10 11 12 13 15 16 17 18 19 20 22 t 31 ual. 759* 777 814-3 859 926 923 1,166 1.267 818 895 1,095 1,1104510 835 719 Hot available 1^208 1.556 1,786 2,056 2,720 Treasury estimate n n tt n 2.509
@FedFRASER