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x-4o6g FEDERAL HE S E P . 7 E B O A R D Statement for the Press For Immediate Release May 28, 1924. CONDITION Op ACCEPTANCE MARKET April 10 to May l 4 , 192U For the period ending May 14, the principal factor influencing the acceptance market was a general decline in money r a t e s . Early in April c a l l money rates -declined and dealers' rates on acceptances were reduced from 4 per cent bid and.3 l/S per cent o f f e r e d to 3 7/S per cent bid and 3 3 A P? r ' cent o f f e r e d . ' . V 1 The reduction in rates resulted in an a c t i v e i n v e s t o r s ' de- mand for b i l l s and dealers 1 aggregate p o r t f o l i o s were reduced to the lowest l e v e l s since October. The a c t i v e demand and a decrease in holdings caused a further reduction i n dealers* quotations in the week ending April J>0 to 3 5/8 per cent bid and 3 l / 2 per cent offered, rates that were maintained during the remaining weeks of the period. from banks and investors. The demand for b i l l s came p r i n c i p a l l y Federal reserve banks' holdings declined steadily during the period!and reached the lowest l e v e l of the year in the week ending May l4., B i l l s of short maturity, principally 6 0 days, were reported to be in the best demand although b i l l s of longer maturities were e a s i l y absorbed. Commodities against which b i l l s were drawn were sugar, cotton, grain, wool, hides and leather, tobacco, and provisions.
@FedFRASER