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To: Chairman Eccles Prom* L* M* Piser December 14, Subject: Distribution of U. S. Government debt The following, together witia the attached table, provides the informtion that you requested on the phone this morning: 1* Borrowings from the Federal Reserve Banks reached a peak of 79U million dollars on November 28 and declined to 3^k million on December 12. 2. Loans on Government securities by reporting member banks to dealers reached a peak of 1*7 billion dollars on December 5, an increase of about 500 million over the loir point reached on October 17* It is likely that this figure increased further during the week of December 12• Loans on Governments by reporting member banks to others reached a peak of 2*5 billion dollars on December 5i wa increase of 1*6 billion from the low point reached on November 7« It is likely that this figure increased slightly further during the week of December 12• 3» Federal Reserve holdings of Government securities increased by 4*6 billion dollars in 19^5 through December 12* The growth in money in circulation necessitated an increase of 3*1 billion dollars and the growth in required reserves an increase of 1*8 billion* Ij.* In 19li5 through December 5> the increase in Government security holdings by reporting member banks totaled ij.»8 billion dollars• All of this increase was in bonds; an increase in certificates and notes was offset by a decrease in bills and guaranteed securities* Figures from the Treasury survey, which are available through the end of September, show that the trend toward increased holdings of bonds was even more pronounced in the smaller banks* 5* It is estimated that the increase in holdings by all commercial banks for the calendar year as a whole will total llj. billion dollars* Including 5 billion dollars for the Federal Reserve Banks, the total increase for the banking system is estimated at 19 billion* Attachment* DISTRIBUTION OF U . S* GOVERNMENT DEBT CM NOVEMBER 3 0 , (In b i l l i o n s of dollars) By kind of securities Total By class of investors 263.4 Total 263 .I* Treasury b i l l s 17*0 Federal Reserve Banks Certificates 35fO Commercial banks 86*1 Treasury notes 23*5 Mutual savings banks 10*0 Postal savings, etc* »2 Treasury bonds maturing in: Less than 5 years Insurance companies 23 # 5 22Jj. Federal agencies and trust funds 26.8 8*2 Individuals 60*8 5-10 years 1#.2 Corporations 2$$*6 10-20 years 16*9 State and local governments 5^2 Over 20 years 35»1 Savings bonds kl*5 Savings notes 9*1 Depositary bonds Special issues Guaranteed securities #5 20*7 *5
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