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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 l i point
or
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*
I. In 19li5 through December 5> the increase in Government
j*
security holdings by reporting member banks totaled i . 8 billion
j»
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 l j
l.
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