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STRICTLY CONFIDEMTIAL R&S 200-127 SIXTH THAR LOAN Total for drive estimated to reach 19 billion dollars. - Total sales in the Sixth War Loan through December 0 exceeded the 1U billion dollar goal by 500 million dollars* It is estimated that the final total will reach about 19 billion dollars. The total for the fifth drive was 20*6 billion dollars. Sales outside the drive of about one billion dollars to banks under the time deposit formula and allotments of 800. million dollars to Government agencies and trust funds will bring the total funds raised in the two^month period to about 21 billion dollars• Sales to individuals smaller than in previous" drive* - Sales to individuals amounted to 3 billion dollars through December "/. The final total will probably be close to the 5 billion dollar goal. Series E bond sales are lagging somewhat, amounting to only 1.2 billion dollars. The present daily rate of sales, which ar§ about at their expected peak, will have to be maintained to the end of the month in order to reach the 2,5 billion dollar goal. In tfie fifth drive the total for individuals was 6.1* billion dollars and the total for E bonds was 3 billion* Purchases of 2 per cent bonds by individuals have been smaller to date than in the previous drive. It was in 2 per cent bonds that a large part of the speculation was concentrated during the fifth drive. Free riding reduced. -* Free riding, which had been increasing during the successive drives and had reached alarming proportions in several States during the fifth drive, appears to have been reduced in the present drive. From this point to the end of the drive, however, the temptation probably will be strongest, as there will be considerable pressure to reach quotas. It will be in this remaining period that the real test will come. While the Treasury did not adopt the specific recommendations of the Federal Reserve, the strong position taken by the Federal Reserve against speculation in several memoranda to the Treasury following the last drive, no doubt had some influence. The Treasury appears to have taken a firm stand and made that stand known effectively to the sales organization. The discussions by the Federal Reserve with offending banks have been extremely successful, and the publicity given to stricter policing of subscriptions has borne fruits. In the eight States where free riding was perhaps largest, the quota for individuals, other than E bonds, was exceeded during the previous drive by from three to four times. On the other hand, eales of E bonds in most of those States were much smaller than the average for the country. During the present drive sales to individuals, other than E bonds, are lower than the average for the country in six of the eight States and sales of E bonds are near the country average, as may be seen by the following table? STRICTLY CONFIDENTIAL -2- R&S 200-127 (Amounts in millions of dollars) Sales to individuals other than E bonds Sales of E bonds Sales Georgia Alabama Florida Kentucky Maryland Mississippi Oregon Tennessee U. 84 fetal Per cent of quota 34 10 15 20 71* ll 13 19 1,875 35 37 71 111+ 99 61 74 Sales 17 14 14 11 Ber cent of quota 49 47 46 10 42 38 56 15 15 1.174 43 49 47 16 Mr* McLarin reports that speculation has been controlled in the Altanta district this time« Bank loans for purchase of securities have been practically eliminated. In policing subscriptions, which has been frigidly done this time, I4.6 million dollars of subscriptions have been turned down. The subscriptions rejected included 39 million dollars of subscriptions for 2 per cent bonds. Some of the State organizations have complained that they are not going to be permitted to make their quotas; in one State the organization threatened to resign in a body, but has not done so* Mr. McLarin foels that thore will still bo a sizable amount of subscriptions by bank directors for resale to their banks, Mr# Leach reports that by clearing house agreement banks in Baltimore are requiring 10 per cent down payment on subscriptions based on bank loans, instead of 25 por cent as he recommended. Rates on loans have been increased, as for example from 1 per cent to 1 1/fe per cent on 2 per cent bonds. Word has spread that the Federal is policing subscriptions which no doubt has helped. They are policing every subscription of $100,000 or over in the district and have turned some down. He feels that the situation is very much improved over the last drive. Loans on securities and bank purchases of outstanding issues• - The extent of bank loans for purchase o£ securities or of bank purchases in the market of outstanding issues during the drive cannot be measured adequately until the figure* of weekly reporting member banks for December 6 bocome available on Tuesday afternoon. Figures for New York City show that loans to brokers and dealers for purchasing- or carrying Government securities, which reflect their positions, are larger than the peak reached in the fifth drive. Loans to others for purchasing or carrying Governments increased by 31$ million dollars in New York City during the week ended December 6 compared with UOl million during the comparable week of June 26 in the previous drive• Holdings of outstanding issues, other than bills, fcy banks in New York City increased by 965 million dollars during the week ended December 6 compared with an increase of 569 million in the week ended June 28• The increase in holdings of Chicago banks was also larger last week than in the corresponding week of the previous drive. Weekly reporting member bank figures show that STRICTLY CONFIDENTIAL - 3 - R&S 200-127 purchases by banks prior to the opening of this drive were slightly larger than prior to the previous drive. It appears, therefore, that a substantial amount of the estimated 19 billion dollars of securities that will be sold in the drive will represent, as in the case of previous drives, shifts of other securities to the banking system. During January and February* which included the fourth drive, the banking system purchased 5 billion dollars of securities; in the fifth drive the banking system purchased 9 billion. While market purchases during the present drive appear to have been larger to date than during the comparable period of the fifth drive, it is too early to determine what will be the total amount. Mr. Tickton of the Treasury feels that the shifts have come earlier in this drive and guesses that bank purchases in connection with this drive will be somewhat less than the 9 billion dollars in the fifth drive# Attachments, - Tables and charts are attached showing detailed figures by issues, investor classes, and states in comparison with quotas• Charts are also attached showing sales to date compared with an estimate of what the amount should be according to an estimated pattern to reach the quota. David M. Kennedy December 9, Sales in Sixth War Loan By issues and by classes of investors (In millions of dollars) Issue Individuals, partnerships and personal trust accounts Savings teaks Insurance companies Dealers and brokers CONFIDENTIAL Building A Federal State and loan and Other Grand totalagencies local savings nonbank all and federal investors & loan investors trust funds governments associations 78 Certificates Ik 78 1 13 1 70 63 157 6U 138 5 1 5* 1 h 1 2 1 28 1 CVJ 1 Total 3 CVJ 2jl bonds 2-1/2$ bonds III E bonds T and G bonds Savings notes 1 1 1 Sales on December 7, - 10 UO 17 1 k 1 1 1 11 85 23 125 38 185 80 52 13 117 5*6 5 71 r 1,1422 1.166 32U r 1.538 2.587 682 1.19>» r 22U r 3.383 1.1*7 ^.509 1.985 Sales cumulative through December 7, 13kk 2 bonds 7 and G bonds Savings notes ltl66 239 r 77 Certificates 1-l/ty notes 2$ bonds 2-1/2$ bonds 23U 133 S17 355 3.021 Total * 3>* 86 1.11(2 87 1,3^9 * 3 » S 792 1.151 2,065 22 11 9 1 3 • 107 15 Office of the Secretary of the Treasury, Division of Hesearch and Statistics. Note: Sales of Savings bonds and Savings notes are cumulative since Nov. 1. Figures have been rounded and do not necessarily add to totals. • Less than $500,000, r Revised. 6 38 Ml 137 178 121 892 1 28 Ul ten 6.179 December 1M52 - Sales of Series £ War Savings Bonds In the Sixth War Loan Compared with Quotas, by States Oumulatire as of Dec. 7, (Dollars are millions) State Alabama Arisona Arkansas Calif oraia-Horth Salts Ik k & Colorado Connecticut Delaware District of Columbia. Iloridju 10 22 Georgia Idaho Illinois Indiana. lev* 17 5 SI 35 28 Quota Percent achiered to date I 5 Oklahos*. Oregon Pennsylrania Bhode Island South Carolina.••. 17 15 8S 5 S South Dakota Tennessee Texas Utah Termont 6 15 Virginia Washington Vest Virginia Wisconsin Hjroming IS 28 10 27 2 Massachusetts Michigan Minnesota Mississippi Missouri 36 59 27 Montana Nebraska Herada Vev Hampshire Hew Jersey 10 14 1 1*9 5 51 53 W 38 10 31 i Ul I 1015 I* quota k 122 16 9 72 he 20 11 1U Sales lev Mexico lev Tork lorth Carolina... • lorth Dakota Ohio US Kansas*•••••••••••••• Kentucky Louisiana Maine Maryland State CONFIDENTIAL 11 151 70 kl kS 86 48 180 36 51 u 30 105 12 5 55 53 32 38 1*8 21 8 Us 53 55 3 1 10 Alaska Havaii Puerto Jlico Other possessions* Percent achiered to date 77 80 k $2,500 Subtotal Unallocated Grand total $ 1,166 Office of the Secretary of the Treasury, ElYision of Besearch and Statistic*. Hotet This table includes sales since B O Y . 1. figures are rounded and do not necessarily add to totals. Percentages hare been computed on unrounded figures. • lese than $500,000. j/ Incomplete. $2,500 December 8. 19"+U. S a l e s i n S i x t h War Loan Compared w i t h Quotas, by S t a t e s and by Classe Cumulative as of c*1 I n v e s t o r s Dec. 7 , CONFIDENTIAL (Dollars are millions) State Alabama....Arizona Arkansas California-North -South Individuals* partnerships and personal trust accounts Sales Percent Quota achieved Series Other se- Total to date curities X . Ik k 9 kl ' kS $ 10 k 9 36 60 Colorado Connecticut Delaware District of Columbia. Florida 10 22 10 19 Ik Ik 12 15 Georgia Idaho. Illinois Indiana Iowa 17 5 81 35 28 ik k 112 Kansas Kentucky Louisiana Main Maryland 20 11 Ik 16 20 15 Massachusetts Michigan Minnesota Mississippi Missouri 36 59 27 51 10 31 11 *5 Montana Nebraska Nevada 10 ik l 6 9 k to 2 89 New Hampshire New Jersey s 8 8 18 76 107 59 15 28 173 202 Hi* 53 63 1+1+ 53 Corporations, associations and other investors Sales 50 12 18 191 280 20 UO 11 27 29 37 91 8 71 73 58 Ul 32 306 16 67 k7 30 9 68 7k 7* ik 351 120 98 Ul 6k 55 57 75 55 9 756 171 96 38 31 29 12 90 63 55 56 27 106 61 57 51 51 70 66 31 191 87 112 72 22 76 173 228 103 30 118 16 23 5 5 129 17 it i 12 181 U 5! 69 B 201 22 2 lit 15 57 £ 71 kks (Continued on following page) Quota 38 10 16 212 56 Percent achieved to date 131 $ 118 11U 90 113 86 108 1>K> SU 99 101 111 121 1U5 \kz 122 118 All investors Sales 20 36 268 387 27 76 Quota 97 5 7 375 kd 9k 127 86 18 130 238 170 .O; 239 178 89 101 281 98 10U 110 <*3 361 272 kk 290 s 102 135 62 200 116 31 80 8 9 21 386 57 100 60 66 79 92 99 96 91 76 127 95 105 10U 102 179 132 136 *7 577 82 70 86 70 92 53 IS 5 76* 79 91 97 86 80 210 706 472 215 k7 276 112 17 158 Percent achieved to date 98 11 33 567 S 1*3 102 Sales In Sixth War Loan Compared with Quotas, by States and by Classes of Investors (Contfd) Cumulative as of State Hew Mexico Hew Tork Forth Carolina. Korth Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina. South Dakota Tennessee Texas Utah Vermont Virginia Washington, West Virginia.. Wisconsin Wyoming Alaska Hawaii Puerto•Rico Other possessions. Subtotal Unallocated Grand total Dec. 7 CONFIDENTIAL (Dollars are millions) Corporations, associations Individuals, partnerships All investors and other investors and personal trust accounts Sales Percent Percent Percent achieved achieved Sales Quota achieved Sales Quota quota Series Other se- Total to date to date to date curities I k $ 10$ 15 58 * $ 87* 5* 6 9 69* 10U 800 122 3.560 3.>»26 75 98 ,161 4,226 61 50 199 35 1I40 119 60 82 16 170 121 140 18 5 101 15 11 1U 78 9 29 29 117 87 92 288 55 72 655 713 159 Ul 90 HO 20 76 78 37 17 87 99 6U 107 62 H»3 28 93 15 86 *5 1 600 568 938 106 370 S3* 23 * 63 89 88 58 136 72 38 36 79 14 5 91 s 118 28 68 8 17 92 25 8 9 11 10 20 6 105 196 30 29 57 5 56 152 61 101 119 19 15 117 19U 103 81 189 225 335 158 XOk 16 10 25 36 18 57 2k 111 8k 15 17 20 3 38 9 to s J 18 2g 10 27 2 29 2U 25 39 1 7 52 69 i 39 1 6 1 1 88 5 69 59 "I 61 2 11 6 73 51 9 1.17U $ 1,575 -8 -20 I 3.0^9 $5#000 -2B $ 1,166 $ 1,355 $ 3.Q21 $5,000 60 67 89 117 108 U9 198 6 ,8 21 1 9 5 1 1 175 121 16U 136 110 70 229 110 $ 10,153 $ 9t000 878 113 $ 11,031 $ 9.000 123 l 136 26U 9 253 11 g 2 3 26 20 I" I 121 90 122 10U 78 72 X lk I 13.202 $iUtooo 850 Office of the Secretary of the Treasury, Division of Research and Statistics. Tote: Sales of Savings bonds and Savings notes are cumulative since Nov. 1. figures are rounded and do not necessarily add to totals. Percentages have been computed on unrounded figures* • Less than $500,000. 1/ Incomplete. 16* 160 $ 14,052 $i4,ooo December 8, 100 SALES TO INDIVIDUALS IN 6™ WAR LOAN Percent of Quota Reached in Each State DECEMBER CDNFIDENTIRL 7 \45%to59% \6O%to74% \75%orover F-3O-C SERIES E SALES IN 6TH WAR LOAN DECEMBER Percent of Quota Reached in Each State CDNFIDENTIRL 7 LEGEND H I Under 41% H i 4/% to 50% \5I% to 60% \6I% or over Note: Based on the "Beam" Chart, the U.S. Total should have reached 5 0 %of Quota on this date F-302-C SALES TO CORPORATIONS IN 6TH WAR LOAN Percent of Quota Reached in Each State DECEMBER CDNFIDENTIRL 7 100% to 124% /£5% to 149% l5O%or over F-299-B TOTAL SALES TH IN 6 WAR LOAN Percent of Quota Reached in Each State DECEMBER CDNFIDENTIRL 7 LEGEND 80% to 89% to 99% 100% or over F-3OO-B SALES TO INDIVIDUALS EXCLUDING SERIES E IN 6TH WAR LOAN Percent of Quota Reached in Each State DECEMBER CDNFIDENTIRL 7 to 74% to 99% /OO%orover F-34I-A CONFIOENTIRL SALES TO INDIVIDUALS AS A PERCENT OF PATTERN Cumulative Since Beginning of 6 T H War Loan LEGEND 1100% and over 190% to 99% \ Under 90% F-348-A CDNFIDENTIRL E BOND SALES AS A PERCENT OF PATTERN Cumulative Since Beginning of 6 T H War Loan DECEMBER 7 THURSDAY LEGEND 1100% and over 190% to 99% I Under 90% F-349-A CDNFIDENTIRL SALES OF OTHER SECURITIES TO INDIVIDUALS AS A PERCENT OF PATTERN Cumulative Since Beginning of 6 T H War Loan DECEMBER 7 LEGEND 1100% and over 190% to 99% I Under 90% F-3SO-A
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