Full text of Marriner S. Eccles Papers : Memorandum to Chairman Eccles, Box 50, Folder 7, Item 6

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Form 1VJL 131
BOARD OF GOVERNORS
OF THE

FEDERAL RESERVE SYSTEM

Office Correspondence
To

Chairman Eccles

From.

Henry Edmiston

Date
Subject:

November k* 1939

Treasury cash requirements

CONFIDENTIAL
The table below indicates that the Treasury 1 s cash balance will be maintained above #500,000,000 until the end of the fiscal year I9I4.O without additional
new direct open-market borrowing; provided, of course, that cash requirements of
Governmental corporations and credit agencies are balanced by new guaranteed financing. It should be noted that our estimates of receipts, shown in the table, are
probably about $300,000,000 higher than those currently used b y the Treasury as reported recently in the Wall Street Journal.
TREASURY CASH REQUIREMENTS, NOVEMBER 1939 - JUNE
(In millions of dollars)
Cash
Cash
Unemsales
of
reployTotal
Cash
guaranquireu. s.
Cash ment
Cash
Other
cash ments teed
budget budget budget trust savexacof
obligaings
defi- fund
rere(net
bonds counts quire- Gov't. tions
ceipts pendi- cit
ments agentures
receipts)
cies

y

Nov. 1,1939.
Nov.2 - 30,
620
1939
375
Dec. 1939..
600
780 -180
Jan. I9I4.O..
3^0
660 -320
1*20
Feb. 19i|.O.*
650 -230
820
Mar. 1940..
910
+90
Apr. 19M)..
290
720 -430
May 19M)..
J4IO
610 -200
J u n e I924.O. •
+5
750
755
Total,
Nov.2,1939
to June
3O,19lj.O. • 4,100 5,610 -1,510

———
+130

-5

+20
+130
-10
+20
+11+0

—

+425

1,190
-20

-90

+60
+150

-30
+5

-155

-25

-25
-50
-30
-30

-H+5
-55

-20

+70

*h5

+60
+60
+60

Treasury
cash
balance
(end of
period)

+60

-ho

+565

-220

+90
-380

-30
+25

~7k°

"J+5

+325 1,380
1,200
—
1,035

-40

940

-25
-25

1,005

600

-55

-60

+150
-130

-295

+31*5

665

500

1/ Includes sales of #275,000,000 for RFC, #50,000,000 for TVA, $150,000,000 for
USHA, and redemption of the |130,000,000 of HOLC bonds maturing next May.
Even though new direct open-market borrowing is avoided, the gross
public debt will rise by about #1,500,000,000 through sales of U. S. Savings
bonds and issuance of special securities to trust and reserve accounts as summarized in the following table*







- 2 -

INCREASE IN PUBLIC DEBT
(October 31, 1939 - June 3Of 19^0)
(In millions of dollars)
Gross public debt, Oct. 31, 1939

••

i|lf0Lj.0

Treasury bills (issued Nov. ! ) • • •
50
U« S. Savings bonds•••••••••••••• 5&5
Old-age reserve account*. ......••
lj.70
Unemployment trust funds.........
J4.65
All other debt.*.••••••.••..•••••
-$0
Total
•
• 1,500

1,500

Gross public debt, June 30, 19i4.O#.•••••.. i|