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.• F E DE R AL R E S E I\ V E 13 0 A R D. STATK1ENT FOR THE PEESS. X-3~46 For release in afternoon papers, Thursday, November 2, 1922. CONDITION OF THE ACCEPTANCE MARKET SE:E-''rET-ffiER 15 to OCTOBER 15, 1922. According to tne reports received by the Federal Reserve l.iari::~s :Joard frorr1 the various Federal Reserve the acceptance mar~~et was for the most part irregular and slug6ish during the first part of the period under review but later becar;:e active and sho;:ed. a considerable improvement. nearly in line with t~'lat The advance in rates to a level more of other s~ort term in•;estments of equal security has caused bills to move more fr-3ely and has ·Nidened the market to some extent. In District No. 2 (New Yorx. . ) a.urin5 the first part of the period under review the SU}J.JlY of bills was too large for the rnar~:et to absorb at the offered rates, and dealers were reluctant to take a position in vie·N of tne t3,eneral feeling that rates were out of line. As rates advanced from 3 bid and 5/3 at 3 7/B 32 3i bid to 3 l/3 offered to offered a better demand developed. tmrket widened and a.urin;,;, the current l~'ario.:. bills were sold to various investors including savings banl<S which the market for some tirrB past. Tne ~ave been out of Di~trict No. 1 (Boston) re~orts that bills were limited but became abundant to.7ards tl:e close of the <,I_ X-3546 -2period. With the advance in rates the demand increased considerably District No. 3 but not sufficient to take care of all offerings. (Philadelphia) also reports a steadily improved ~arket as money became firmer. Districts No. 4 (Cleveiand) and No. 7 (Chicago) both report a slight demand and limited supply. In the latter District (Chicago) there has been a continuation of the decrease in the volume of bills accepted and bills sold, noted in the last report, although bills bought have increased over 200 per cent and bills held at the close of September, over 90 per cent. In District No. 12 (San Francisco) the s~ficient su~ply to meet a slightly increased demand. remains In this District a widening of the rnarket has been manifest with more numerous inquiries from country banks. District No. 10 (Kansas City) reports a scant supply and strong demand for bills, with the result that paper has ~~ved freely. In District No. 6 (Atlanta) the market has continued very quiet, twenty-one of the twenty-five reporting banks showing no transactions in acceptances for the period. District No. 8 (St. Louis) also reports that the market has continued dull and featureless. In District No. 11 (Dallas) there was increased activity, the volume of acceptances executed and outstanding increasing from $476,241 on August 31, to $1,403,7;0 on September 30. In District No. 2 (Naw York) the bulk of acceptances executed were based upon the following commodities, in order of their X-3)46 importance, cotton, grain, sugar, silk, meat products, Coffee and dollar exchange. In addition bills were ex- ecuted in other Districts against agricultural implements, hides and skins, wool. wheat, oils, iron, the im~ortation of shellaC, woolen rags and tea, the exportation of paint and varnish, and the storage of canned goods. In Districts No. 1 (Doston), No.2 (New York), and No. 4 (Cleveland) , the increased derrand has caused bills to move more freely while District No. 3 (Philadelphia) and No. 7 (Chicago} report they aN not yet movin~ freely at the offered rates. The best derr.and has been for 30 to 60 day maturities, with a slight demand for 90 day maturities· District No. 12 (San Francisco) reports a 5rowing preference for longer term bills and gives the distribution of maturities for the period under review as fol:i..o-,vs: Maturities 30 60 go 120 150 days days days days days September 15 to October 11 25·5 21.6 35-9 15.0 2.0 to September 1). AUt:.USt 1') 22.8 55·3 19.4 2.5 Rates on prime bills in the various Districts were as follows: • < ,., r·· ,i' X-3546 ·4E2tes on Prime Dills Range during period Maturity District No.1 (Boston) 30 day 60 day 90 day 120 day 15Qd.ay 180 day 30 District No.2 (New York) day 6o day 90 day 120 day 150 day 180 day 30 day 60 day District 90 day lZO day No.3 (Philadelphia) 150 day 180 day District No.4 (Cleveland) 30 60 90 120 150 180 day day day day day day 30 day District · No. 7 (Chicago) 60 day 90· day 120 day 150 day 180 day :Bid Offered 3-1/8 - 3·5/8 3 - 3:a 11 ft tt 1t tt "n " " 3:a - 4t 1f tt :3 3-1/8 - 3-7/8 3 - J;; II n 3i- 4 3-3/8 - 4-a 3-3/8 - 4t 3; -II 4 3~ 3-5/8 3t n "n It "n n " 3~ 3f34 - 4 u Offered II n II Bid ". 3-l/4 - 3-7/B 3-1/8 - 3! 11 " " 3-3/8 - 4 Close 3-5/8 - 3~7/8 3~ II II f " ft 3 2 - 343 344 3-7/s - 44 3·57s-4 3i- 4 3-l/s - 3-7/s " 3-7/8 -4! II 4 - 4~ 3 - n 3-7/8 4 " It ff 11 It II It If " " "n -n 3~ 3-1/8 - 3~ 3i - 3-7/8 3i - 4 3-3/8 - 4 3~ - 3~ " " " " 3-1/s~-1/s 3~·3-7/s " .. n " n n 3-5/8 ... 3t ft n 3~ - 4 3~-4-1/S 3i " ,. " fl " . 3i n 3-5/8-3-7/s 3~ -3-5/8 3-5/8 - 4 3~ -3! " If 3-l/8 - 3-5/8 3i - 4 II
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