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X-3U55 i F E D E R A L R E S E R V E B O A R D STATEMENT FOR THE PRESS For release in morning papers, S u n d a y , J u l y 2, 1 9 2 2 . CONDITION OF THE ACCEPTANCE MARKET A c c o r d i n g to reports received by the F e d e r a l Reserve B o a r d from the Federal Reserve Banks of the various districts, a general i n c r e a s e is n o t i c e d i n m a n y d i s t r i c t s i n t h e v o l u m e o f a c c e p t a n c e s executed throughout the entire reporting period. The greatest in- crease is r e p o r t e d b y the e a s t e r n d i s t r i c t s , w h i l e in some interior a n d w e s t e r n districts the m a r k e t seems to b e w i t h o u t a n y important change. In D i s t r i c t s N o . 1 (Boston) a n d N o . 2 (New York), the supply °f bills was larger than the demand, due to the p r e v a i l i n g low rate of a c c e p t a n c e s . D i s t r i c t N o . 2 (New Y o r k ) states that "during the w e e k ended M a y 25 some dealers reported that for the f i r s t t i m e i n s o m e m o n t h s t h e y w e r e a b l e to p u r c h a s e a l l o f t h e N e w Y o r k acceptances they wished. The supply reached its maxi- m u m f o r t h e p e r i o d d u r i n g t h e w e e k e n d e d J u n e 2 , w h e n it w a s a b o u t 5 0 p e r cent greater t h a n the w e e k l y a v e r a g e since the e a r l y part of the y e a r , w i t h the exception of the first h a l f of May." District N o . 1 ( B o s t o n ) a l s o r e p o r t s that the supply of b i l l s o f f e r e d increased during the month and exceeded the amount offered the previous month. The v o l u m e of sales increased rapidly a s the season progressed, and during the last w e e k of the period sales w e r e three - 2 times a s large as during the first week* X-3^55 In D i s t r i c t N o . 2 ( N e w York), sales throughout the period were irregular. Bills did not move freely at t h e offered rates, a n d the m a r k e t was r a t h e r sluggish. offered. T h e r a t e at t h e b e g i n n i n g w a s 3 i b i d a n d 3 ~ l / S It i n c r e a s e d , h o w e v e r , t o w a r d s t h e m i d d l e of the p e r i o d to 3 w 3 / 2 b i d a n d 3 i o f f e r e d , but d e c l i n e d t o w a r d s the e n d t o 3 & b i d a n d 3 - l / S o f f e r e d , m a i n l y d u e to t h e i n c r e a s e in d e m a n d a n d the p r e v a i l i n g easy m o n e y m a r k e t , An improvement, however, was noticed during the last w e a k of the p e r i o d w h e n b i l l s of shorter m a t u r i t i e s w e r e in g o o d d e m a n d . In D i s t r i c t N o . 3 ( P h i l a d e l p h i a ) t h e v o l u m e o f a c c e p t a n ces e x e c u t e d b y d e a l e r s a v e r a g e d h i g h e r i n this m o n t h t h a n in the three p r e c e d i n g p e r i o d s . T h e a m o u n t of a c c e p t a n c e s c r e a t e d by b a n k e r s s h o w s a l s o a c o n s i d e r a b l e i n c r e a s e . "In t h i s D i s t r i c t t h e a m o u n t c r e a t e d b y t h e t w e l v e r e p o r t i n g b a n k s h a s b e e n increasing over the past four m o n t h s . The amounts exe- c u t e d f o r t h e p r e c e d i n g m o n t h l y p e r i o d s w e r e as f o l l o w s : June 10 May 10 April 10 March 10 $ 4,212,000 3,274,000 4,097,000 2,265,000 " District No. 4 (Cleveland) reports a stagnant market and no changes of importance. The supply of bills was limited* T h e d e m a n d w a s in e x c e s s o f t h e s u p p l y , m a i n l y d u e to t h e l o w r a t e o f c a l l m o n e y . T h e t e n d e n c y t o w a r d s l o w e r r a t e s w a s f e l t at t h e e n d o f t h e r e p o r t ing p e r i o d w h e n b i l l s m o v e d less f r e e l y . In District N o . 7 (Chicago) t h e u p w a r d t r e n d in t h e v o l u m e o f a c c e p t a n c e s w h i c h s t a r t e d i n A p r i l c o n t i n u e d t h r o u g h o u t the e n t i r e p e r i o d o f M a y a n d b e g i n n i n g o f J u n e , X-3U55 - 3 ~ The report of District N o . 12 (San F r a n c i s c o ) indicates a slight increase in the amount of acceptances bought in May, 1922, a s compared w i t h April and a marked increase (32 per cent) in the amount of bills accepted. Purchases for foreign account continued to support to a large e x t e n t t h e m a r k e t at t h e p r e s e n t lor: r a t e s i n t h e e a s t e r n d i s t r i c t s , especially in Districts No. 2 (New Y o r k ) and No. 1 (Boston). Bills based u p o n exports and imports increased in volume in several D i s tricts, w i t h the exception of District N o . 7 (Chicago), and District No. 11 (Dallas) w h i c h report a r i s i n g out of f o r e i g n trade. a decrease in acceptances District No. 6 (Atlanta) however, reports a n increase in the volume of f o r e i g n acceptances, a n d a d e c r e a s e in t h e n u m b e r o f d o m e s t i c a c c e p t a n c e s . M a t u r i t i e s ranging between 3 0 a n d SO days w e r e p r e f e r r e d in the eastern districts. District No. 7 (Chicago) and District No. 12 (San Francisco), however, indicate a preference for 9 0 day maturities. District No. 7 (Chicago) reports the following p e r c e n t a g e d i s t r i b u t i o n of m a t u r i t i e s : 30 60 90 ISO days days days days 12 per cent 53 11 D i s t r i c t N o . 12 (San F r a n c i s c o ) reports the d i s t r i b u t i o n of maturities 30 SO 90 120 days days days days M a y IS to J u n e 1 5 2 . 4 per cent 45.5 51.6 0.2 April 15 to May 15 I9.0 per cent 11.5 53.5 10.4 - U - % X-3U55 T h e b u l k o f a c c e p t a n c e s i n the v a r i o u s d i s t r i c t s w e r e b a s e d u p o n the following commodities: sugar, cotton, meat products, oils, wool, coffee, tobacco, rubber, ^lso dollar exchange. The :rates t h r o u g h - out the period were as follows: Bates on prime bills Range during period Offered Bid Bid ITo, 2 (Mew Y o r k ) 30 day maturity oO " " rt 50 0 120 l^O ISO No. 4 (Cleveland) » 150 ISO " " " " " it 3-l/S - 3& ti 3% 3-l/S it it " " " " " IT " ft " It 3i - 3-3/s I! t! " 3-3/s - 3i " " 3-3/S - 3i 3-3/8 n" - 3^ 3% - 3-l/g n 3& n 3-l/S 3-3/S - 3i 3i - 3-3/S 3i - 3-l/S 3-3/S - 3* 3* 3-l/S 3l " " " 30 day maturity It 60 » W 90 « 120 150 ISO 3-1/s Offered " n 30 day maturity 60 " " 90 " " 120 No. 7 (Chicago) 11 ,f 3f - 3-3/2 " » it ti Close H tt: t! " 11 11 11 3-1/5 It - i ft " " it 3-3/S 11 11 3i - 3-3/ 3-l/S 3% - 3-3/S 3-l/S 3l - 3-3 / 3-l/S 3i - 3-3/S 3-l/S tt tl II t! tl It tt 3i - 3i tl 3-1/s - 3i tl ti 3i - 3i fl tt 3-i/s -3%
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