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Form No. 131 FEDERAL RESERVE Office Correspondence Governor Eceles B0ARD Subject: Date Aprii 13,1935% RBflg,i"¥O bonk c r s d i i f ojid •" «ro 16—852 In accordance with your request I am sending you a table which shows as of the end of each month since January 1929 the total volume of bills discounted, bills bought and United States Government securities held by the Reserve banks; also monetary gold stock, money in circulation, Treasury cash and deposits with the Reserve banks, and excess reserves of member banks* You will note that security purchases of the Reserve banks began in October 1929 at the time of the stock exchange crash; that during 1930, leaving out the year-end transactions, purchases v/ere about $120,000,000; that in 1931 purchases mere about 114.0,000,000, and in 1932 they were 11,100,000,000. In 1933 there was an additional $600,000,000 purchased and after that time there were no further purchases. The table shows that in 1929 and 1930 funds resulting from purchases of Government securities were used chiefly to reduce indebtedness of member banks to the Federal Reserve banks; that in 1931 they were used to meet losses of gold and increases in money in circulation, but that they were not sufficient for that purpose, with the consequence that member bank indebtedness increased by $4-00,000,000. Purchases in 1932 once more resulted in a liquidation of member bank discounts and in the building up of more than 1500,000,000 of excess reserves. Purchases in 1933 still further reduced discounts and increased excess reserves to over ^800,000,000. Since the beginning of 1934 there have been no purchases of Government securities, but bills discounted and bills bought have been reduced to a negligible amount by gold imports, which also raised excess reserves to a figure that has been fluctuating around |2,000,000,000 for a number of months. Date RESERVE BANK CREDIT AND RELATED ITEMS (END OF January 1929 through March 1935 (In millions of dollars) Reserve bank credit outstanding Monetary U. S. gold Bills Bills Government stock discounted bought securities 1929-January February March April May June July August September October November December 1930-January February March April May June July August September October November December 1951-January February March April May June July August September October November December 1932-January February March April May June July August MONTH Money in circulation Treasury cash and deposits with F.R.bank 4,153 4,188 4,260 4,301 4,324 4,341 4,360 4,372 4,386 4,367 4,284 4,657 4,698 4,748 4,676 4,738 4,746 4,717 4,840 4,819 4,838 4,929 4,865 223 228 229 243 248 240 226 218 278 221 258 245 149 195 255 328 728 718 638 364 125 109 124 163 125 106 73 215 469 681 452 339 602 597 602 599 729 610 599 599 598 598 668 678 728 742 727 717 817 4,291 4,352 4,423 4,491 4,517 4,535 4,517 4,501 4,511 4,535 4,571 4,593 4,643 4,665 4,697 4,726 4,798 4,956 4,949 4,995 4,741 4,292 4,414 4,460 4,560 4,576 4,549 4,476 4,551 4,522 4,426 4,533 4,501 4,493 4,660 4,890 4,610 4,620 4,608 4,652 4,702 4,822 4,837 5,052 5,246 5,540 5,536 5,647 249 261 251 234 250 237 236 231 255 230 235 230 236 250 273 253 235 271 237 294 249 257 258 276 899 828 639 556 490 440 538 433 153 109 68 48 36 67 43 34 746 740 872 1,228 1,549 1,784 1,841 1,852 4,416 4,354 4,390 4,367 4,152 3,919 3,974 4,088 5,641 5,604 5,459 5,465 5,480 5,695 5,726 5,692 266 265 255 256 257 222 299 306 805 973 1,095 934 1,068 1,037 1,076 1,046 958 1,000 1,030 632 440 330 200 179 117 82 75 176 293 355 256 392 202 169 172 163 143 216 147 150 162 321 326 511 394 353 310 233 313 272 200 215 272 207 275 251 232 198 250 294 270 279 210 185 128 130 168 209 163 479 480 535 530 528 591 157 174 175 577 Excess reserves 2/ 159 74 —3 -33 40 -3 87 263 270 162 259 330 RESERVE B A M CREDIT AND RELATED ITEMS (END OF MONTH SERIES) (Continued) January 1929 through March 1935 (in millions of dollars) Reserve bank credit outstanding Date Bills discounted Bills bought Monetary U. S. gold Government stock securities Money in circulation Treasury cash and Exdeposits cess with reF.R.banks serves 1952-September October November December 332 328 309 235 33 34 35 33 1,854 1,851 1,851 1,855 4,193 4,264 4,340 4,513 5,653 5,628 5,648 5,675 315 278 275 280 375 499 498 576 1933-January February March April 274 582 31 336 305 1,763 1,866 1,838 1,837 1,890 1,998 2,028 2,129 2,277 2,421 2,432 2,437 4,552 4,380 4,282 4,312 4,315 4,318 4,320 4,328 4,324 4,323 4,323 4,323 5,645 6,545 6,320 6,003 5,812 5,721 5,630 5,612 5,650 5,635 5,742 5,806 333 279 405 397 345 299 357 341 331 299 369 287 507 317 249 566 339 475 468 595 713 842 4,033 3/7,438 7,694 7,757 7,779 7,856 7,931 7,978 7,978 8,002 8,132 8,239 5,289 5,355 5,394 5,368 5,357 5,373 5,317 5,396 5,456 5,453 5,549 5,536 745 11 7 2,434 2,432 2,447 2,431 2,430 2,432 2,432 2,432 2,431 2,430 2,430 2,430 597 62 29 9 5 5 5 5 6 6 6 6 1/3,440 3,293 3,148 3,053 3,016 2,971 2,968 3,051 3,031 3,022 3,150 1,146 1,444 1,534 1,662 1,732 1,875 1,867 1,727 1,748 1,801 1,814 7 6 8 6 6 5 2,430 2,430 2,437 8,391 8,526 8,567 5,380 5,467 5,494 2,989 3,003 3,358 2,206 2,199 1,846 May June July August September October November December 1934^January February March April May June July August September October November December 1935-January February March 447 435 302 164 167 153 128 116 119 98 171 83 64 54 39 31 25 22 23 15 111 11 20 48 9 7 7 7 24 133 727 859 1/ Increase from previous date represents principally increment resulting from reduction in the weight of gold dollar on January 31, 1934* 2/ Month-end estimates prior to September 1931 not available, but average daily data indicate unimportant amounts. Range of average daily data 133,000,000 to |129,000,000«
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