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• > F E D E RAL R E S E R VE B 0 A R D. STATEME:NT FOR THE PRESS. X-3529 For release in afternoon papers, Tuesday, October 3, 1922. CONDITION OF THE ACCEPTANCE MARKET, AUGUST l-5 TO SEPTEMBER 15 ,1922. According to the reports received by the Federal Reserve Board from the Federal Reserve Banks, the acceptance market during the period under review, for the ~~st part, continued dull with a disinclination on the part of buyers to purchase bills at the present level of rates. Tne supply of bills in most centers was limited but ample to meet the slight demand. In Distrj_ct No. 2 (New York) both the supply and demand were light. The market was very quiet although at times during the p8riou dealers reported very good business. Rates for call money and Treasury Certificates, together with the foreign continued to be the dominant factors. their commitments and conducted ~ainly de~and, Dealers were cautious in day to day trading opera- tions while there was a continued tendency towards decreasing outside distribution of bills. Similar conditions are noted in District No. 1 (Boston) in Which it is stated the supply of bills was larger than the market would absorb at the offered rates. District No. 3 (Philadelphia) likewise reports more or less ., /-'' • ' l 1100 -2- X-3529 apathetic conditions, with inland and local banks displaying no inclination to buy. District No. 7 (Chicago) reports a considerable decrease in acceptance transactions during 11ugust as compared with July. Bills accepted decreased 25 per cent and bills bought continued the decrease noted in the last report. The volume of bills sold declined for the third consecutive month, the decrease during the current month being 11.6 per cent, while bills held, after shoWing a gradual increase for the two preceding months, showed a decrease of 60 per. cent at the and of August. Twelve of the 27 reporting banks in the District show no transactions in bankers• acceptances-during the month. In District No. 12 (San Francisco), Which the latter part of the previous period experienced a shortage of bills, reports that new bills are being offe:r;-ed in good volume and this in conjunction with'the offerings in other parts of the country has created a supply at least equivalent to the present demand. Acceptances executed in District No. 11 (Dallas) on August 31 amounted to $476,241.06 as compared with $879.783-08 on July 31 and $516,610.50 on June 30. District No. 4 (Cleveland) reports the market continues to be very quiet and the same is true of Districts No.6 (Atlanta) and No.8 (St. Louis). ii01. -3- X-3529 The bulk of the acceptances executed in the various Districts were based upon exportation of cotton, grain and meat; importation of sugar, coffee, silk, coal and rubber; warehousing of sugar and tobacco; transactions in wool and oil; and dollar exchange. In District No. l (Boston) no bills movad easily, but the best demand was for short bills, especially those with maturities under 30 days. In District No. 4 (Cleveland) pre- ference was for the shorter bills of 30 and 60 days, although there was soue demand for 90-d.a.y bills. Maturity of purchases in District No. 7 (Chicago) were 30-day, 24.8 per cent; 60-day, 17·9 per cent; and 90-day, 57•3 per cent. (San Francisco). also reports the ~st District No. 12 demand for short bills and gi-ves the distribution of maturities as folloWS': Ma.turi ties 30 days 6odays 90 days 120 days August 15 to September 15 July 15 to Augqst 15 22.8% 3·8% 27.8% 67.8% 0-6% 55·3~~ 19-4% 2.5% Rates on prime bills in the various Districts were as follows: d ~ • -4- " .f! "'"'~ ·"- :.. V.<,· X-3529 Rates on Prime Bills Range during period Ivlaturi ty District No. 1 (Boston) 30-day 60-day 90-day 120-day 150-day 180-day 30-day 60-day District 90-day No. 2 120-day (New York) 150-day 130-day Offered Bid Offered 3-i/8 - 3-l/4 3 - 3-1/8 3-1/4 3-1/8 " 11 II II 11 II II II II " Bid 11 It 11 " " I ll II n 3-1/4 3-1/3 II II " " n " " 3-1/4 " " " 3-1/4 - 3-1/2 " " 3-1/8 3-3/8 3-1/8 - 3-3/8 3 ._ 3-1/8 " 11 District No.3 (Phil adelphia) 3-1/4 - 3-1/8 District No.4 (Cleveland) 30-day 60-day 90-day 120-day 150-day 130-day 30-day 60-day 90-day 120-day 150-day lSO-day 3-1/8 - 3-3/3 " " II 3-1/8 - 3-1/4 3- 3-1/8 30-day 60-day 90-day 120-day 150-day 130-day District No.7 (Chicago) Close II " II 3-1/8 - 3-1/2 3-1/4 - 3-1/2 3-1/8- 3:1n 3-1/8 - 3-3/4 " n 3 3-3/8 - 3-1/4 " " " 3-1/3 II II II n 3 - 3-1/3 11 " 3-3/8 - 3-l/2 II 3-1/8 - 3-3/8 3-1/4 - 3-3/8 3- 3-1/8 3-1/8 " " II It 3-1/4 - 3-1/2 3-1/4 - 3-3/4 3-l/8 3-1/8 - 3~ " 3 II II II II n II 3-1/4 3-1/3 II It 3-1/3 - J~· 3 - 3~1/3 II II II II II II II II n " 3-1/8 - 3~ " II 3 - 3-1/4 3-1/3 It It - 31 2 3 - 3-1/4 "
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