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t X-4608 I1DEE.AL R E S E R V E BOARD STATEMENT FOR TEE PRESS . For Immediate R e l e a s e May 25, 1926# CONDITION OF ACCEPTANCE MARKET A p r i l l b , l y ^ b , t o May i y , 13Jb. Acceptances ' The a c c e p t a n c e m a r k e t was a c t i v e i n New York and. Boston a f t e r t h e m i d d l e of A p r i l w i t h r a t h e r l i m i t e d s u p p l i e s of M i l s moving f r e e l y a t o f fered rates* D e a l e r s l o w e r e d t h e i r r a t e s on A p r i l 22 by 1 / 8 p e r c e n t and a g a i n on A p r i l 23 by l / 4 p e r c e n t , and on A p r i l 27 t h e F e d e r a l r e s e r v e banks r e d u c e d t h e i r b u y i n g r a t e s f o r t h e f i r s t time s i n c e January# The market d e - mand f o r b i l l s a t t h e new r a t e s d e c l i n e d and d u r i n g e a r l y May New York d e a l e r s 1 p o r t f o l i o s i n c r e a s e d to t h e l a r g e s t volume of h o l d i n g s r e c o r d e d , w i t h l a r g e r s a l e s t o t h e F e d e r a l r e s e r v e banks«, A f t e r May 18, when d e a l e r s r a i s e d t h e i r r a t e s 1 / 8 of one p e r c e n t on a l l m a t u r i t i e s over 30 d a y s , demand i n c r e a s e d somewhat, and on May 20 F e d e r a l r e s e r v e banks f u r t h e r l o w e r e d t h e i r r a t e s on b i l l s of over 60 days m a t u r i t y t o an e q u a l i t y w i t h o f f e r i n g r a t e s i n t h e market# I n New York t h e a v e r a g e w e e k l y p u r c h a s e s and s a l e s of d e a l e r s d u r i n g t h e whole r e p o r t i n g p e r i o d from A p r i l 15 t o May 19 were the l a r g e s t s i n c e l a s t O c t o b e r , b u t i n P h i l a d e l p h i a and Chicago r e l a t i v e l y q u i e t conditions prevailed# B i l l s c h i e f l y in evidence in the E a s t e r n markets i n - v o l v e d t r a n s a c t i o n s i n s i l k , s u g a r , t o b a c c o , and r u b b e r , and i n Chicago were b a s e d on a c o n s i d e r a b l e v a r i e t y of p r o d u c t s , i n c l u d i n g g r a i n , r u b b e r , p a c k i n g h o u s e p r o d u c t s , and i r o n ore# The f o l l o w i n g t a b l e shows b i l l r a t e s i n t h e New York m a r k e t a t t h e b e g i n n i n g a n d end of t h e r e p o r t i n g p e r i o d : ~2~ X-4608 A c c e p t a n c e H a t e s i n t h e How York Market A p r i l 14, 1926 Maturity 30 60 90 120 150 180 days days days days days days Bid 3 3 3 3 3 4 5/8 5/8 5/8 3/4 7/8 May 19, 1926 Offered 3 3 3 3 3 3 1/2 1/2 1/2 5/8 3/4 7/8 Bid 3 3 3 3 3 3 1/4 3/3 3/8 1/2 5/8 3/4 Offered 3T/ 8 1/3 5/8 389
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