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X-3511
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F E DE R AL
RE S E RVE
STATEM.dl!T FuR THE
J3. 0 A R D.
p:qESS~
For release in afternoon p~pers,
Saturd~, September 2, 1922.
CONDITION OF THE .ACCEPT.ANCE MART{ET, JULY
According to
r~ports
15
TO AUGUST 15, 1922.
received by the Federal Reserve :Board
from the Federal Reserve Banks of the various Districts, the
acceptance market during the
per~od
under review, for the most
part, continued dull with a disinclination on the
par~
of banks
t6 build Up their portfolios at the present le"'·el of rates.
The
supply of bills, While limited, was sufficient to meet the small
demand, except in the
case of District No. 12 (San F:t<ancisco)
towards the close of the period.
In District No. 2 (New York) both the supply and demand were
irregular.
During the first part of the period, they were approxi-
mately equal, but towards the close, hills carne in
some~hat
faster
than they could be distributed, inasmuch as New York City banks were
practically out of the market for their own account and there was
but a fair demand from banks in the interior.
Bates for call money
and Treasury certificatas, together with the foreign demand, continued to be the dominant factors in the market.
In District No. 3
(Philadelphia) a condition very similar to that in the New York
District existed.
~nat
is to say, thore ·N.as still a pronounced
tendency on the part of banks to seek the higher returns which
could be obtained from Government and other securities.In District
X-3511
- 2 -
No. l (Boston), the market for the greater part of the period was
slow and featuraless.
Supply of bills at first was limited, but
later became ample to meet the demand.
In District No.
7 (Chicago), the volume of bills accepted by
reporting banks during July showed a large increase over the preceding month, but the bills bought decreased approximately 80 per
cent.
The volume of bills held at the close of July, however,
Changed only sli6htly from that at the close of June.
Ten of the
twentyseven banks reporting showed no transactions in bankers•
acceptances.
Districts No. 11 (Dallas) and No. 12 (San
both report a considerable
business.
incre~se
Fr~~cisco)
in the volume of the acceptance
In the former, the acceptances outstanding July 31,
amounted to $879,783.08 as compared to $516,610.50 on June 30,
While in the latter District the total bills accepted during July
increased 97•4 per cent over the June figures; those bou~t, ll4·5j
and
th~
acceptance portfolios of reporting banks at the close of
the month, 39.4 per cent.
In tllis District the markat
fro~
the
middle of July to the middle of August was featured by a short
period of activity, followed by a relapse to the previous state
of dullness.
The bulk of the demand was still from city banks.
District No. 4 (Cleveland) reports the market very quiet whiJ.e the
same is true in Districts No.6 (Atlanta) and No. S (St. Louis).
The bulk of acceptances executed in the various districts
was
based upon the irrportation of
r~N
sugar, coffeee, and silks; the
exportation of cotton, grain, and automobile tires;
th~
storage of
X-·3511
- 3crude oil, canned goods, and wheat; and transactions in meats,
canned or dried fruits, wool
and
30-~ay accept&~ces
In District No. 1 (Boston)
and in Districts No. 3
hi~es.
(Philadel~~ia)
moved best,
and No. 4 (Cleveland)
there was a preference for 30 and Go day maturi'tiles.
In
District No. 2 (New York) l.ocal buyers showed a preference for
Short maturities, while longer bills found a readier market among
countr,y batiks.
t~e
In District No. 7 (Chicago) 75·1 per cent of
billa purchased by_ reporting banks had 90-day maturities;
7 •7 per cent, 30-day; 7 .. o per cent, GO-day; and 10.,2 per cent,
180-da.y.
District No. 12 (San Francisco) reports the distri-
bution of maturities as follows:
Maturity
July 15 to
August 15
Jl.ll'le 15 to
July 15
30 days
3·B%
10 .. 4%
Go days
27 .s7~
34.G%
90 days
67.8%
49.0%
120 days
o.65~
6.0~~
X-3511
- 4-
"!'
~.
....
•
Rates on prime bills in the var:i.ous d).st:r.icts were as follows:
Range during period
Maturtty
Bid
30-day
District 60-day
No.1
90-day
(Boston) 120-day
150-day
180-day
3 - 3-1/S
30-day
. District 60-day
No. 2
90-day
(New
120-day
York)
15G-day
11:m-day
3 - 3-1/4
30-day
District
60-day
No.3
90-day
(Phila120-day
delphia) 150-day
180-day
3-1/S - 3-1/4
District
No. 4
. (Cleve~
~ land)
30-d.ay
60-day
90-day
120-day
150-day
180-day
30-day
District 60-day
90-day
N~. 7
(Chieago) 120-day
150-day
um-day
Close
Offered
3-7/S - 3
Bid
Offered
3 - 1/3
3
II
II
II
"
II
II
II
II
II
II
II
II
II
II
II
II
II
II
II
11
3-1/s -
II
II
II
II
II
II
3
r\'·'
II
II
2-7/8 - 3
3-l./8 - 3-1/4
3-1/8 - 3-1/2
3
3 - 3-1/4
II
II
3 - 3-1/8
(1
II
3-1/8.II - 3-1/4
3
'
3-3/S - 3-1/2
II
II
3-1/4
3
II
II
II
If
II
II
3 - 3-1/8
3 - 3-1/4
II
3 - 3-1/S
3 - 3-1/4
3-1/4 - 3-3/S .
3-1/4 - 3-1/2
3 -1/4 - 3-)/S
3-1/4 - 3-l/2
II
3
3-1/3
3
II
II
II
II
II
II
II
II
II
II
3-1/4 - 3-1/S
II
3-3/8 - 3-1/4
II
3 - 3-1/4
If
3-1/8
II
2-~/2 - 3
3-1/4
II
3-1/8
3
II
II
II
II
II
II
II
2-7/3 - 3-1/8
3 - 3-1/8
"
3-1/S
If
II
3-1/3 - 3-3/3
"
3-1/8 - 3-3/8
II
II
II
II
3 -5-1/8
"
II
.. ....
@FedFRASER