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FEDERAL RESERVE ?0 9 BOARD Statement for the Press X-U164 For Immediate Release September 27, 1924. CONDITION OF ACCEPTANCE MARKET. August 14 to September 10- During the four-week period ending September 10 a c o n t i n u a t i o n of low money r a t e s and the increased demand for funds to meet the seasonal need for c r e d i t a r i s i n g i n connection with the marketing of c o t t o n and g r a i n , were the p r i n c i p a l f a c t o r s a f f e c t i n g the acceptance market. The supply of new b i l l s which came i n t o the market during the e a r l y p a r t of the period was s u b s t a n t i a l l y l a r g e r than the demand and in view of ample money a t low r a t e s t h e r e was a s u b s t a n t i a l i n c r e a s e i n d e a l e r s ' aggregate p o r t folios . In the c l o s i n g weeks of August and e a r l y i n September when b i l l s drawn to finance the seasonal movements of cotton and grain began to reach the market, d e a l e r s ' o f f e r i n g r a t e s were increased to 2 and 2 l / s per cent f o r t h i r t y day b i l l s , and to 2 l / s to 2 l / 4 f o r s i x t y and ninety-day b i l l s , i n response to an increase i n c a l l money r a t e s . A f t e r the advance i n r a t e s t h e demand f o r b i l l s increased r a p i d l y and early, i n September d e a l e r s ' port*f o l i o s were gradually reduced and a t the c l o s e of the period were smaller than a t any previous month t h i s y e a r . The demand f o r b i l l s from commercial banks was s l i g h t l y l e s s than in t h e preceding p e r i o d , but s a l e s to the r e s e r v e banks were l a r g e r . The p r i n c i p a l commodities against which new b i l l s were drawn were g r a i n , sugar, c o t t o n , s i l k , c o f f e e , and p r o v i s i o n s . Rates i n the New York market a t the c l o s e of the period ranged from 2 l / s to 2 l / 4 per cent bid and 2 t o 2 l / g per cent o f f e r e d f o r X-4i64 30 day " b i l l s , to 2 3 / s to 2 1 / 2 per cent "bid and 2 l / 4 per cent o f f e r e d f o r 90-day b i l l s . Longer m a t u r i t i e s were demanding h : gker r a t e s but the g r e a t e s t volume of b i l l s which came i n t o t h e market was drawn with 30 to 90-day m a t u r i t i e s 4
@FedFRASER