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Chairman Eccles

CONFIDENTIAL

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OF THE
FEDERAL RESERVE SYSTEM
R&S 1OO-91U
March 30, I I I
944
Board of Governors

Changes in System portfolio

L. M. Piser
As shown by the following table, the increase in the System's holdings of Government securities has been 1.1 billion dollars since February 9,
the' lowest point reached in the System's holdings during the fourth drive.
This increase compares with a total of 3*1 billion dollars between the third
and fourth drives and a decline of 900 million dollars during the fourth drive*
The recent increase has been divided between 800 million dollars in bills and
300 million in certificates, with other changes negligible except for the
conversion of bonds and guaranteeds into notes on March 15* The proportion
of bills to certificates, therefore, has been somewhat larger than in the
whole period between the third and fourth drives, but this proportion is
likely to decline as holdings of bills by commercial banks reach the lowest
levels that they wish to carry.
The attached chart shows changes in holdings of selected issues
that have varied considerably since the third drive. Holdings of April and
May certificates increased sharply earlier in the period and showed no increase after these issues began to be traded on a rights basis. Increases in
August, September, and October certificates have been large recently.
The principal changes in notes have been sales of the new March 1
notes and shifts out of the tax-exempt March 19^5 notes into the taxable
September 19144 notes. In bonds, the System purchased some of the 2 l/2 per
cent issues prior to and'during the drive in support of this market and purchased the June I9I48 bonds early in March in support of the new 1 l/2 per
cent notes. The System sold the September 1951-53 bonds on a considerable
demand, principally during the fourth drive.

Oct. 20 to
Jan. 26

Treasury bills
Certificates
Notes
Bonds
Guaranteeds
Total




*1,QU5

+1,179
-23
+63
*7
+3,112

Jan. 26 to
Feb. 9

Feb. 9 to
Mar. 1
(In millions of dollars)
-1,061
-90
+255
+36

+37U
+109

-39

+U05
+188
+277
-169
-81*

+U55

+618

+11

+2

-857

Mar. 1 to
Mar. 22

FEDERAL RESERVE SYSTEM HOLDINGS OF SELECTED ISSUES
MILLIONS OF DOLLARS

WEDNESDAY FIGURES

900

CEIRTIFI GATES

CERTIFICATES

MILLIONS OF DOLLARS
1

900

•••MM

800

800
/

700
/

700

r
•

,
.

600

m a 1

>RIL
f Al

600
ocITOBE;R

500

^

500

1/
/AUQUS T

/

/

400

400
•

y

IAY

300

300

§
HMMi

/

(cxoUNOED]

7

200

4

200

SEPTIEMBER/
/FEBRUARY

100

f

100
/

0

4+
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1943

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1943

1944

300

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1944
300

NOT ES
MARC hi 1,19 5 \
4
SEPTEMBER 1951-53

200

200

100

100
5

RCHJ

•PTE MBER 1944
O

N

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1943



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1944

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