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Chairman Eccles CONFIDENTIAL ^ 0F ^ ^ 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+ O N O J F M A 1943 M J N D J 1943 1944 300 O F M A M J 1944 300 NOT ES MARC hi 1,19 5 \ 4 SEPTEMBER 1951-53 200 200 100 100 5 RCHJ •PTE MBER 1944 O N D 1943 J F M A 1944 M J
