The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
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A
FEDERAL RESERVE BANK
i
OF
PHILADELPHIA
15,
1937
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B o a r d of G o v e r n o r s of the
Federal R e s e r ve System,
W a s h i n g t o n , D. C.
Sirs:
W e h a v e t o d a y r e c e i v e d a s c h e d u l e ox b a n k e r s a c c e p t
a n c e s p u r c h a s e d t h r o u g h the F e d e r a l R e s e r v e B a n k of K e w
Y o r k u n d e r d a t e of M a y 15, 1 9 3 7 , a m o u n t i n g to $ 7 5 , 6 4 7 . 4 9 .
T h e i t e m s h a ve b e e n g i v e n Nos. 1 to 16 i n c l u s i v e .
Very
t
urs,
G. K. M o r r i s
Assistant Cashier
C/R
is a«knowl*dfsd mt
$ 7 5 , 6 4 7 . 4 9 ........................... m
i
•lig iW .s papsr as rsportsd absrs
agaimst itsas auafcsrsd.....1................
.............imslmsiTS, \m bs ksld
as
• s lla t s r a l
sssmrity agaimst
outstanding Fsdsral Is s s r rs M#tss.
........................ £ r > v .......................................
Asst. Federal Jtsssrrs Agsat.
lC^ -
Reproduced from the Unclassified / Declassified Holdings of the National Archives
F o r m N o . 131.
Office Correspon in
To
My. Bddy
RAL RESERVE
RD
D
Subject; ^ftm iag a s s s
From____ Mr. Snead
Of Phi.
ladelphlft
■.^=jk^
*s,
, > tl
“i
In accordance with your telephone request, there la given below & state
sent showing holdings of discounted, hills9 acceptances purchased in open
market, and Government securities, by the Federal Eessrve Bank of Philadelphia
as at olose of business on oaoh Wednesday sinoe January 1, 1924s
Date
Jan. 2
9
16
23
SO
Feb. 6
19
20
27
* Mar* 6
12
19
2*
Apr* 2
9
16
29
SO
May
7
14
21
28
JUne 4
11
18
Total discounted
hills
$54,992,000
46,077f000
40 ,512 f000
39,669,000
43,335,000
38,096,000
56,699,000
59,021,000
44,368,000
40,014,000
39,427*000
40,619,000
38,714,000
43,602,000
37,961,000
39,990,000
38,091,000
36,063,000
31,710,000
31,832,000
31,334,000
33,191,000
32,436,000
30,244,000
26,247,000
Acceptsnoes
purchased in open
markst
$32,972,000
32,001,000
32,047,000
33,706,000
30,082,000
23,930,000
21,603,000
26,068,000
21,618,000
18,389,000
17,161,000
16,369,000
14,163,000
14,669,000
12,862,000
10,986,000
9,280,000
7,079,000
4,811,000
6,389,000
4,837,000
4,014,000
4,100,000
4,128,000
3,484,000
Government
securities
omed*
#13,747,000
14,692,000
20,879,000
21,097,000
21v423,000
21,642,000
21,642,000
22,936,000
22,961,000
22,936,000
22,936,000
26,014,000
22,982,000
22,982,000
22,982,000
23,267,000
23,966,000
26,381,000
27,424,000
28,6X6,000
28,630,000
29,606,000
86,361,000
37,486,000
28,931,000
"Including participation in Special Investment Account of the Federal
Hoserre System*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Form 148 A
F E D L
M
L
R D S E F W E
B O ^ R D
LEASED W IR E SER VICE
W A S H I N G T O N
The telegram given below is hereby confirmed.
^
^
^
__________________ ■
______ _______„
<June 18, 1924*
^r1
Austin - Philadelphia
Tour bank’s schedule showing purchases of bankers acceptances
received by Board this morning indicates that on June 13th
you purchased acceptances aggregating $159,965.89 at a rate
of 2 3/8 per oent. Your banks minimum authorised rate is
2 1/2 per cent. An explanation is requested.
cRissmm
j *\ .
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Form N o. 131.
Office Correspok lence
FEDERAL RESERVE
BOARD
To _ Mr. Eddy
Date
_Ju n e 18 ,
Subject:
---
* Smead
Schedules showing purchases of hankers* acceptances received from the
Federal Reserve Bank of Philadelphia this morning indicate that on June 13 the
bank pur chased acceptances aggregating #139*965,89 of the banks and acceptance
corporations listed below on vfalch it charged a rate of 2-3/8 per cent, or 1/8
per cent less than the mini mom authorized rate fbr open market purchases of
bankers* acceptances. The acceptsnces mature in from 17 to 20 dsys.
Kidder Peabody Acceptance Corporation
Kidder Peabody Acceptance Corporation
Kidder Peabody Acceptance Corporation
Anglo-London, Paris National Bank
International Acceptance Bank Incorporated
Goldman, Sachs and Co,
$25,000
40,000
7,067*83
20,000
30,831.95
17,066,11
Imports of
Domestic tobacco
.Exports of
fleece
Imports of
Exports of
Exports of
sugar
based on
wire and
sugar
cotton
cotton
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Federal Reserve Board,
Washington, D. C.
Sirs:
^ ^
We are in Receipt of your
/r
letter of Oct. 8tfaj\ in reference
y f
eng aging in open market operations in
bills of exchange, and we w^fl care
fully note your recommendations and
suggestions in connection therewith.
/
;
a
G
•**•>
h
S
Reproduced from the Unclassified I Declassified Holdings of the National Archives
' TAR L E S
J. RHOAD
G
E
d w in
S. S
S,
o v e r n o r
t u a r t
IFEDERAL BE'
^
.
,
bo a r d f i l p c h a r d L . ACuHsAtIRi nM ,A N .
G
D e p u t t - Governor.
F r a n k M .H a r d t ,
C a s h ie r.
F
e
(
\ jy i /
d
e
JO RGE M .L a M O N T E ,
D e p u t y Ch a ir m
A
r
a
%6>
l
R
e
s
e
r
v
e
H
a j t k
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P m r ^ r n E L i ’ii i a
4 0 8 C h je s to x tt S t r e e t
|\
it i l
■■(/‘■■l1'1 (
P h ila d e li
Feb. 23d, 1915.
Federal Reserve Board,
Washington, D. C.
Sirs:
Your le t t e r of Feb, 20th, asking us i f "New York”
is the correct place for
. m^ the
.... payment
^ ...... ^ ^o f the Acceptances
bought by t h is Bank, as per schedule sent you, dated
Feb, 19th, is duly received*
In reply, I beg leave to say that the schedule
sent you was correct; the Acceptances are payable, by
agreement with the Philadelphia National Bank, at the
Hanover National Bank, Few York.
G«
an
.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Sir:
Your schedule of "Acceptances bought” , dated
February 19* rives few York as the place, presum
ably, of payment.
Will you have the klndxuns to inform us if
tills statement is correet* er wnetner Philadsl^
I&1* should not be substituted as the pl&ee wimrrn
,'f payment is to be made*
Respectfully,
Secretary*
Er* Richard I* Austin,
Federal P.essrve Agent,
Philadelphia, Pa«
*r
Reproduced from the Unclassified I Declassified Holdings of the National Archives
^
^
ssS h a r l e s
J .R h o a .
Govern
E d w in
S. S t u a r t .
Fr
M.
D e p u t v -G overnor.
a n k
R
ic h a r d
G
e o r g e
L. A
u s t in ,
C H A IR M A N .
M . La M
o n te ,
De p u t y Ch a ir m
IE R .
F e d e r a l R e s e r y e B a n k o f P h il
4 *0 8 C h e s t n u t S t r e e t
P h il a d e l p
Dear M r . Warburg:
X
{^i \
You are very kind to writel me so fully regarding the ac
ceptance business.
I had misunderstood the nature of the state
ments to be filed by non-member acceptors. ,
My impression was
that the Federal Reserve Board would indicate the form of state
ment which they would require and that perhaps certain non-member
institutions or bankers had already sent in satisfactory state
ments which had been approved by the Board.
I shall take up in
formally with Messrs. Brown Brothers & Co., of this city, the
question and ascertain what their disposition is to furnish us with
sufficient information to enable us to satisfy ourselves and the
Federal Reserve Board that it is proper for us to take their ac
ceptances*
I happen to know several of the firm rather well per
sonally and think I can talk with them without any danger of mis
understanding.
I have
Bank of New York
and that he will
time acceptances
to us.
word from Governor Strong that the Federal Reserve
will probably today adopt rates for acceptances
be glad to purchase for our account from time to
in the New York market, which will be a great help
I have enjoyed reading the address which Mr. Delano gave
yesterday in Baltimore and think he is to be congratulated on the
successful way in which he has treated his subject.
We discounted today about #35,000. for two of our member
banks, one lot being for a bank in Newark and the other lot for a
bank in Philipsburg, Pa., the latter being a new customer to us.
Our gross total of discounts since the commencement of business on
November 16, now amounts to $2,224,OOP., which is not very large,
but is perhaps some indication oT a gradual and steady growth in
our business.
I find that some of our local banks have bought paper
in the open market as low as
for three month maturities, but
they still continue to quote 4 $ as the minimum rate at which they
will do business with their usual customers.
P
I am looking forward to an informal conference next week
d in New York with Governors Aiken and Strong, at which, also, we ex! pect to have our respective Federal Reserve Agents, to consider the
check collection problem as it relates to our three districts.
While we have received most favorable reports from the Federal Re
serve Banks of St. Louis and Kansas City as to the success of their
plan of clearing checks, yet we also get from other channels some
http://fraser.stlouisfed.org/
Federal
Reserve Bank of St. Louis
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an
.
ar
Reproduced from the Unclassified I Declassified Holdings of the National Archives
(PAUL M. WARBURG, Esq.,
-
2-
2/17/1915)
what less favorable reports and we are a little in doubt as to
the exact truth of the situation.
It doubtless lies somewheres
between the two extremes and probably that will be the best
course for us to follow.
PAUL M. WARBURG, Esq.,
federal Reserve Board,
Washington, D. C.
CJR-D
February lSt 1915*
Dear Governor Hhoad©:
for sending me the statement of the Philadelphia Clearing
House Association*
The accuanlation of reserve money will be quit* a
problem by* and bye and the handling of the proble* will
require the most oarefttl consideration*
You inquire what acceptors of this elase hare filed
with me satisfactory statements#
circular,
Ton. misunderstand the
Ilo statement will be filet with ms*
The state*
ment willtibe filed with the federal "Reserve Basfc in eat is*
factory fora only to the Federal Besemre Board#
fhsfc is
to say, the federal Beserve Banks will thesiaelves have to
take up this question and aubbit to vs the fen, which we
have to approve*
In the ease of noii-meraber banka#~that';
is* nem^meabeir bas&s or trust eofspanies** this will he a
simple affair, since 1 suppose the
m m t
of these companies *
publish sufficiently detailed statements*
However* where
this i n not the ease and the Federal Reserve Basics desire \
.v-.V#1'
the federal Reserve Banks to secure all they want#
The problem Is laore difficult la dealing with private
banking1 firms as acceptors, or with companies which will*
1 mm sure, he established bye and by* for the purpose of
(2)
doing an acceptance business*
that details shall be re
quired fro® private bankers is a very intricate problem
which will have to he taken gp with a great deal of tact
and consideration#
It was thought, therefore, best not to
formulate an ironrdad rale, but rather to permit the Fed
eral Reserve Baides to devolfp by experience how this problea can beat be handled*
It will be desirable to get as
detailed a statement from these private firms as can pos
sibly be had, bearing iii mind their just wish not necessar
ily to divulge their own private affairs and to secure for
them confidential treatment so far as it can possibly be done*
For this reason it may prove to be a #ood idea not to be
over exacting concerning the requirements of the written state
ment, but to permit these firms in a personal way to add snob
information an may be necessary for the safiWy of the Federal
Beserve Banks*
J£a eh bank will find its own problems and as we shall gain
our experience from all of the®, I am sure we shall ultimately
develop the best method of attacking this problem*
&.B
to the acceptance of the Philadelphia fational Bank:,
that being a lational bank there cannot be any question at all
about your right to purchase the same and it would only be a
question of a rate, upon which it should not be difficult to
reach a quiek understanding with this Board*
It has been the thought of the Board that so far as state
ments ar concerned, each Federal Beserve Bank oould deal with
the acceptors of its own district, - that is to say, if Kansas
Olty Should want to buy an acceptance o f Brown* s In Philadelphia*
■Urey could apply to tlie Philadelphia F ed eral Reserve Bank la or
der to ascertain whether a .p ro fe r statement is on file* and they
would* of ooBree, as*: for such a statement fo r thalr confiden
tial utte*
I f Brown's should o bject to their etatwaezit going
any fu rth e r than Philadelphia, then only Philadelphia could
buy their acceptsnces without the Indorsement o f a member hank*
I f there is any fa r|h # r fncstiom that Bight occur to
.V .
I s h a ll he ‘o n ly to e'g T M to answer the same#
Tory
C « «f* R h o a d s ,
t r u l y 2 ?o u r s *
Ks<j* ,
Governor, federal Keserve Bank*
Philadelphia* Peimoylvanla*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
-----
,
THE FEDERAL RESERVE BANK
OF PHILADELPHIA
408 CHESTNUT STREET
My dear
Mr*
')
w
,
^
__
*
„
February 15, 19X5
Warburgs
X enclose the usual statement of the
Philadelphia Clearing House Association of the ayerags
condition of members for the week ending February 15, and
will send you the detail tomorrow in regular course. Toil
will notice that the Surplus Reserves show a further in*
crease, notwithstanding the increase in loans made during
the last week.
In connection with the circular on acceptances
I notice that before we can take acceptances of any non*
member institution or firm* which acceptance has n o \t been
endorsed by a member bank, it will be necessary for us to
secure the statement of the acceptor in form satisfactory
to the Federal Reserve Board, and 1 shall be glad to be
advised what acceptors of this class have filed with you
satisfactory statements*
I suppose that the list of
such acceptors will be regarded as strictly confidential
and will be known only to the Federal Reserve Board and
the various Federal Reserve Banks,
there is a small possibility that during the
coming week I may be also to secure some acceptances made
by the Philadelphia national Bank, and I would ask whether
if such acceptances are offered to us, we could secure per
mission from you to take them on telegraphic notice.
As I wrote you on Saturday* our disposition is to
go very slowly in this matter, and X am simply seeking in
formation without any thought to rush into the business
until we are thoroughly Informed as to the details.
CJR*€*
Paul V- * ^arburg, Isq,,
Federal Reserve Board,
Washington, 3), C.
Governor*
m
Reproduced from the Unclassified I Declassified Holdings of the National Archives
PHILADELPHIA BAJ1K STATEMENT.
Mew Pi
F e b 15, 15.
Loans
$397,425,000
Depfts (4nd.) 314.900.000
Circulation
11.521.000
51.352.000
Due fr bks
130.906.000
Dep. of bks
13.823.000
£x. Clear H.
87,508,000
Resv. held
57.093.000
Bes. reqd.
30.415.000
Surplus
Form
rm
Dif. prev wk
X #1,821,000
D
170,000
D
41,000
D
593,000
I 2,666,000
D 1,944,000
I 2,346,000
X
755,000
I 1,591,000
Feb 16 (14
$384,672,000
301.577.000
11,435,000
57.394.000
148.376.000
14.820.000
109.466.000
89.860.000
19.606.000
Surplus under old form Feb 19, 1912 was $14,250,000;
Feb. 18, 1911, $7,593,000; Feb 14, 1910 #6,060,250.
Feb 17,13
380.793.000
285.410.000
14.635.000
52.425.000
138.835.000
17.045.000
91.567.000
84.524.000
7,043,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
V r t r r n IT. 1916.
3
Bear Governor Bhoa&ss
I have your letter of February sixteenth, /for which I
thank yon*
If you make an arrangement with Governor Strong #9 you
Biggest* I do not think it will fee necessary for yom t# wait
until after the few York Federal Reserve Bank has taken as
many as they wish, as you say*
Hater present conditions
it would be Vary hart to say hew sash they would want and
the supply nay be limited* inasmuch as the Hew Tork banks9
iu view of the very high reserves that they are carrying,
will probably bqr as aaay of these acceptances as they can
get*
I believe that Mr* Strong will probably be willing to
make an arrangement with yom to give you a certain pro rata
of the 8hares, but I hop# you will find means t after awhile,
of establishing an additional market for acceptances at
Philadelphia#
Very truly yours#
Charles J* Bhoads* Esq*,
Governor, federal lieserve Bank*
Philadelphia, Pennsylvania*
*
aalHBBHBaBIIBaBBl^ HHBHHaBaHaHaHaaHBRHIaHMaHIHaHMIIHHHBaMBBIBaBBr
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T1ARLE
G»
E
d w in
JSTIN,
S <J.T?T ''A.DS,
S. S
tua
RNOR.
‘
G
*
e o r g e
M .L
D:
Fr
a n k
(A
C ^AIR M AN.
^
I
lM o n t e ,
sp u t y Ch a ir m a n .
M . Haw
y-
d er alK eserve
B a n k ©f P h il a d e l p h ia
4 0 8 Ch e s t n u t S t r e e t
P H IL A D E L P H IA ,
2/16/1915.
Dear Mr. Warburg:
In accordance with the suggestion contained in your kind
letter of yesterday, I am communieating with Governor Strong, ask
ing for his advice and suggestion as to the best way for us to
undertake the discounting and purchasing of acceptanc e s . _ Perhaps
we can arrange, as you intimate, to have“TEe I<’ederaXneserve Bank
of Hew York purchase for us acceptances after they have taken as
many as they wish to have themselves and charge them against our
balance with them, which I am glad to say at the moment is on the
right side of the account,
Mr. Austin told me of the talk you gave the Federal
Reserve Agents on acceptances, but as yet we have not received
the stenographic report of this, which I wish to very carefully
read.
I enclose the usual detailed statement of the members
of the Philadelphia Clearing House Association, showing the per
centage of reserve held by each of the members.In spite of the
further increase in surplus reserves, I still estimate that under
the old 25$ requirement the national banks in this city would
show a deficit of over #3,000,000. against a reported excess on
the 15$ reserve of $24,000,000.
All of the banks in this city are restless under the
piling up of idle money and the generally dull state of trade.
Many of them also are interested in the extraordinary condition
in the foreign exchange market.
They feel that there seems to be
no bottom to the prices to which Sterling exchange, French exchange
and German Exchange may fall, and I imagine that most of them have
decided to withdraw from the market until the situation clears.
PAUL M . WARBURG, Esq.,
Federal Reserve Board,
Washington, D. C.
cjr
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@FedFRASER