The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Holdings of the National Archives
tr ■0 . ID 501
I Declassified
Authority
DECLASSIFIED
Reproduced from the Unclassified
Form P . R . 567
END
SHEET
KINDOF M
ATERIAL O
RNUM
BER
333*3^3
name or subject
Allocation of Participations in
System Open Market Account
Federal Open Market Committee
DATES (Inclusive)
"4p3P 19^5 ~ ^8% 19^
►
PART NUM
BER
DECLASSIFIED
Reproduced from the Unclassified
I Declassified
Holdings of the National Archives
o
in
O!
C:
£
I
O
X
!
-4—*
3
<
h
T E L J2 G R A M
j..,ard of Governors
fD IH FILES SECTION
JAN
of the
Federal Reserve System
21947
\y
Leased Wire Service
Received at Washington, D. C.
5 34
WA48G52WASH MT57 BLS 31-429
VAN FOSSEN
BID NOT RECEIVE YOUR USUAL REQUEST FOR OUR EARNINGS ON
TREASURY BILLS OUTSIDE SYSTEM ACCOUNT FOR YOUR INFORMATION
OUR EARNINGS ON TREASURY BILLS THRU DEC 31 WAS $94,350
GILBERT,
FOR FOES
M. B. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
oj.
£D
o
£
o
TELEGRAM
BOARD OF GOVERNORS
OF TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V I C E
WASHINGTON
Deoember 2, I9I46
Rouse - Mew Tork
This will oonfira understanding in telephone conversation that
adjustments of participations in System Aooount will be as follows,
in thousands of dollars*
Interest-bearing
seourities
Treasury
bills
total
Boston
+80,21*0
-89*118
-8,878
lew Tork
+16,8142
-50.1489
-33.61*7
Philadelphia
-36,616
♦61.019
♦2I4..I4O3
Clef*land
-6,792
-11,628
-18,1420
Riohaond
-5.887
-73.212
-79.099
Atlanta
-20,806
-23.835
-Wi.,6l4l
Chioage
-22.571
+129,648
♦107,077
St. Louis
-11.839
+10,361
-1.14-78
Minneapolis
+2,003
+2 .60U
♦4.607
Kansas City
-4.789
♦1,213
-3.576
♦17.537
-8 ,851+
♦8.683
Dallas
San Franeisoo
-7.322
♦52.291
Smead
/
F
&
U
+UU.969
r
Reproduced from the Unclassified / Declassified Holdings of the National Archives
o
in
5 ^
6 —
q
u
& £h*
o
A
+3
->
<
? SC O « RECORDS SEC
APR 2 41968
F e d e ra l R e se rve B ank
of
'
£
New York
December 3, 1 9 4 6 .
Dear Mr. Smead:
We re c e iv e d your l e t t e r o f December 2 , 1 9 4 6 /and
have today sen t to th e Reserve Banks a copy o f th e computa
tio n showing th e adjustm ents made in p a r t i c i p a t i o n s in
System Open Market Account on December 2 , 1946 as of Decem
ber 1 , 1 9 4 6 , p u rsu an t to the plan adopted a t th e meeting of
the F e d e ra l Open Market Committee on September 2 1 , 1944> as
amended June 2 0 , 1 9 4 5 .
E nclosed herew ith i s a copy o f the l e t t e r o f t r a n s
m i t t a l , to g e th e r w ith th re e co p ie s of the com putation, a ls o
copy o f telegram which was se n t to each of the F e d e ra l R eserve
Banks on December 2 , 1 9 4 6 .
Very t r u l y y o u rs,
S. A. M ille r ,
A s s is ta n t V ice P re s id e n t.
Mr. E. L. Smead, D ir e c to r ,
D iv isio n o f Bank O p eratio n s,
Board o f Governors o f the
F e d e ra l Reserve System ,
Yfeshington 25> D. C.
VICTORY
BU Y
UNITED
STATES
WAR
(E n clo su re s 5)
BONDS
AND
STAMPS
DECLASSIFIED
Reproduced from the Unclassified
I Declassified
Holdings of the National Archives
o
in
o
o
M I S C . 1 4 0 A 1O O M -2 -4 3
F ed eral
R eserve Ba n k of N e w Y o rk
APR 2 41968
1946*
lr*
i
2$
In aee o rsim e* w ith ou r te le g ra m o.f
1946* 1 m elon® h « r « « lth
on
J ) # e ® 2a b * r
2 #
1944
muqXs
b*r
1*
1946
in
th « *
in ttm System
I* rticitations of th« F ^ | ^ l I
,.,>011 8&tk0t portfolio
iky yours.
5 . Ju M ille r f
# s * ls t & r it V ie t F m s M tu t,
Mr# L. F. lUittetior#* Prmrl&mtj
?*d«r*l .
Boston,
B esrton, 4*. s8 & e h u * # tts.
(enc*)
»»«**§
DECLASSIFIED
Reproduced from the Unclassified
I Declassified Holdings of the National Archives
o
in
CD
o
w
&
E
o
A
-4—»
3
<
rC’D \H RECORDS' S,CV,^.|
M !S C . 140 A 10 0 M -7 -4 5
$mn nm m m m m t
am*™
F ed er a l R e s e r v e B ank o f N ew Y ork
'#{S?iJ n
1
*
«»..r ,i, I iliif. II ...........
OSCMSft 2, 1946. :
Wl
Jf
ai nrf-i
£11
mmh
ot p^rtloijwtion* is Qm*rnmm% mm®&%lm b«I<l in fystm lom m t
iff bmim
t©4ny ft® of Stttafetr X tmder ili# plws. for rttlleetttlTO of Gtovarmsant
meuritl** adopts by ill* F*d*r«il Oimi K**kat Cfosrtit## SqptM&ftr 21f 1944# m mM&#$
Jvto* 20$ 1945* Th*
9howi&& ftdjufttaent* aftd* its pt.rtioijtttloiu* «-£ tb*
jMrfwr®! frnieral n*##rr« denfe* will b# sailed to fell
Brown
coapufcstione indloftt* m
of |
ia jmir pftril«ip*tlon ia IaW m V
bmrissg obllgfcUo&«9 sn
in your p«rticip#tioja ia twwwiwy
b ill*, is*kiȣ & ast
tin# Sjrstm /ceouat.
#
HCVt£«8l
©f I
y
Tour b®»k w ill
Soafe* or, D»*#«ber J* tH*»»
in your ictid participation in
tills.
» tb* xtrnml e o 4 * & * i m »hc«iag
th® detailed s trid e to b# m l ® fco#.y*
ttmmm
yBS
ISKCR&ttftS, m e w ®
\ m & u t & 4 m,s)o,ctj0
yiiMnP
tom
MOMSflE I 39,114,000 CECftEm $ S,‘‘73,000
miunmMU
DBSRSm # 346X6,000
rscR’jssE % 6 1 ,019,000 n c m s * 8 24*403,000
3 H * k ?»
O
CECESAfig
6,792,000
Bscsms
u , 623,000 cscmsi
13*420,000
turn,
mrnmrn
DSCft&SB
5*337*000
m m m z
73*2X2,000 s m m m
79,0»,000
flMUtZP*
imjiMtk
DSCRUBS
20,306,000
pwemmt
23,835,000 {lasausE
44,6a, 000
m m §
m m m
m m m
22,571,000
tmmmt
mnsf
m* u m m
WCSMSM
11*839,000
IMCRHMS
10,361,000 &£CIUU£E
1^47?,000
? w m 9
nmmous
mensuss
2,003,000
m m s s
2,604,000 ISCPJ^i.
4,607,000
LE IT,
tiMMB cxrr
memss
4,739,00
xaemet
i,as,ooo mtc m s a
2,576,000
aium*
QHUi
tBCBKASE
17,537,000
wemst
4*854*000 B W t
S,683,000
MWUXt,
sab m * m m
K2CM5ASB
7,322,000
xnvsmes
52,291,003 mcnetez
44,969,000
M
ROUSB
129,64^,000 X*CBjKI£K 107,077,000
DECLASSIFIED
S t.
Louis
V.in n e a p o lis
Kansas
C ity
2 ,9 5 3
7 ,5 8 2
3 ,19 6
1 ,6 8 9
458
4 ll
1 ,3 1 2
353
6,003
4 , Ola
3 ,3 6 4
8 ,8 9 4
B o sto n
fT^t. ]vstiina ;ed c u r r e n t e x p e n se s, 1946
5 6 ,1 1 7
3 ,7 7 7
1 3 ,5 8 2
4 ,2 0 3
4 ,9 0 9
3 ,5 8 3
*2$. $ s tim a ;e d d iv id e n d s , 1946
1 0 ,9 6 0
61+9
3 ,8 6 4
815
1 ,0 9 4
6 7 ,0 7 7
4,''-426
1 7 ,4 4 6
5 ,0 1 8
Pag’e 1
Dr l i a s
San
F r a n c is c
2 ,9 7 4
2 , ^46
5,223
238
361
394
1#011
3 ,5 4 9
1 ,9 2 7
3 ,3 3 5
2 ,8 4 0
6,234
^
a: ,9?
■ci
Estim a ied exp en ses and d iv id en d s
J . C urrent e a r n in g s t*
1 . E stim a te d e a r n in g s , 194o,
o th e r th a n on Government
s e c u r itie s
2 . On in t e r e s t - b e a r in^, s e c u r i t i e s
in System -A ccount t o Nov. 30
3* T o t a l*
3,090
136
956
177
324
139
103
5^4
165
87
2o4
42
143
8 6 ,2 0 2
P 9 ,292
5 ,^ 3 4
2 1 ,7 4 6
22,702
6,566
6 ,7 4 3
7 ,9 5 0
8 ,2 7 4
5 ,3 4 2
5 ,4 ^ 1
4 ,4 5 1
4 ,5 5 4
1 1 ,2 3 5
1 1 ,7 6 9
4,403
5,070
4 , 5 pp
2 ,4 5 1
2 ,5 3 p
4 , i4 3
4 ,4 0 7
3 ,7 1 2
3 ,7 5 4
8 ,3 6 9
f',^12
E . E x c e ss o f nD3H over MCW
22,215
1 ,5 4 4
5 ,2 5 6
1 ,7 2 5
2 ,2 7 1
i
, 4 !jo
1,19 0
2 , P7 5
1,039
611
1,072
914
2 ,2 7 8
1 0 0 .0
7.0 6 15
2 4 .0 4 7 9
7 .6 2 3 3
9 .7 7 7 9
6 .3 5 5 8
5 .2 8 8 3
1 2 .8 8 0 4
4 .8 8 4 1
2 .8 2 4 9
4 .8 6 0 8
4 .3 3 4 8
1 0 .0 6 0 3
G. E stim a te d e a rn in g s f o r year above
expense and dividend re q u irem e n ts
( $ 22, 215#000 p lu s e s tim a te d e a rn
in g s Deoember on i n t e r e s t - b e a r i n g
s e c u r i t i e s in System A ccount a t
1 .0 1 3 0 7 3 $ e a rn in g s r a t e , $ 7 ,6 7 5 # 0 0 0 )
a llo o a te d on b a s is o f "F "
29,890
2 ,1 1 1
7 #188
* 2 ,2 7 8
2,922
1,900
1 ,5 8 1
3 ,8 5 0
l# 4 6 o
844
1 ,4 5 3
1,29 6
3,0C q
567
1 ,9 3 2
553
651
460
391
9 75
421
233
381
382
729
F . Average d a ily p a r t i c i p a t i o n s ,
p er o e n t , in i n t e r e s t - b e a r i n g
s e c u r i t i e s in System Account
s in c e November 30# 1941
H. HGWminus
nEn
7,615
I . A llo o a tio n o f i n t e r e s t - b e a r i n g
s e c u r i t i e s in System A ccount
on b a s is o f nHw
8 . 919.502
6 5 8 ,9 3 9 2 ,2 4 5 ,2 7 4
6 4 2 ,6 6 9
7 5 6 ,5 6 0
5 3 4 ,5 8 9 4 5 4 ,4 0 1 1 , 1 3 3 , 0 9 6
4 8 9 ,2 6 5
2 7 0 ,7 3 1
4 4 2 ,7 7 9
4 4 3 ,9 4 1
8 4 7 ,2 0 8
J . P re s e n t a l lo o a t io n s
8 . 919.502
5 7 8 ,6 9 9 2 , 228 , 1+32
6 7 9 ,2 8 5
7 6 3 ,3 5 2
5 ^ 0 ,4 7 6 47 5 , 2 C7 1 , 1 5 5 , 6 6 7
5 0 1,10 4
2 o 8 ,7 7 8
1447,568
4 2 6 ,4 0 4
8 5 4 ,5 3 0
♦ 8 0 ,2 4 0
-3 6 ,6 1 6
-6 ,7 9 2
-1 1 ,8 3 9
+ 2 ,003
-4 ,7 8 9
+ 1 7 ,5 3 7
- 7,322
K* Change in a l lo o a t io n s
* E x o lu s iv e o f e a r r in g s on T re a s u ry b i l l s .
+ 1 6 ,8 4 2
- 5 , 8 8 7 - 20,806
-2 2 ,5 7 1
I Declassified Holdings of the National Archives
New
P h i l a Cle ve R ic h
la n tft C hicago
d e lp h ia
mond
land
York
I.
A llo c a t io n o f I n t e r e s t - B o a r in g S e c u r i t i e s
System
O
g
cr
Authority
Reproduced from the Unclassified
REALLOCATION OF GOVERNMENT SECURITIES P : SY ST3' OPEN rAPFE’’’ ACCOUNT# DECEMBER 1 , 1946
• (in th ou san d s o f d o l l a r s )
CONFIDENTIAL
D EC LA SSIFIED
CONFIDENTIAL
System
L. D i s t r i b u t i o n o f e s tim a te d e a r n in g s
on b i l l s f o r year on b a s i s o f WF M
r . E a rn in g s t o November
i n System A ccount
30 on
P h ila
C le v e j R ic h - j A tla n ta
d e lp h ia
) mond
j
land
II.
A llo c a t io n o f T re a s u ry B i l l s
New
York
B o sto n
C hicago
M inne
a p o lis
0 . ID S O i_ iage 2
Kansas
C ity
Dallas
San
F r a n c is c o
c 3>*4-09
3 , 7Vl
i° ,° U i
4 ,0 7 2
5 ,2 2 2
3 ,3 9 5
2,P2i+
6 , c79
2 ,6 0 9
1*5 0 9
2 ,5 9 6
2,3 15
5*373
3 0 ,6 6 b
2 ,5 9 1
617
2 , r 2?
4 .1 7 0
2 ,^ 6 1
2,>462
b,086
1 ,7 8 5
1*155
2 ,0 2 7
1 ,66b
4 ,7 2 3
1 9 ,5 8 2
281
12 ,1 5 5
681
314
212
8
3*163
899
72
868
738
322
-301
-2i+
-291
-2 4 8
598
bs
577
490
b ills
N. E a rn in g s t o December 31 on b i l l s
in o p tio n a c c o u n ts ( e s t . )
St.
Louis
Authority 1
o . P ro r a t a sh a re o f e a r n in ;;s from
b i l l s in System A ccount December
( WLWm inus *VW and W1I*)
r * A d ju stm en t due t o e x c e s s e s o f
p lu s "N" over ,fL”
--
Q. A d ju ste d p ro r a t a sh a re o f e a rn in g s
from b i l l s in System A ccou n t,
December
3 *1 6 3
b
3 ,8 8 0
3b7
134
238
98
1 ,1 5 8
278
-1 ,0 8 7
bll
220
331
553
-508
-108
-9 3
+ 1 ,0 8 7
+508
2 lb
185
-160
-lb
-111
-1 8 5
317
1I46
220
368
R . A llo o a t io n o f System A ccount
b i l l s in p r o p o r tio n t o ”QW
9 *7 9 6 ,5 8 6 1 ,8 5 2 ,1 5 3
S . P o r t io n th a t Banks can n o t ta k e
due t o low r e s e r v e r a t i o *
3*49 7 *0 5 4 1 ,1 0 9 ,6 1 8
T . D i s t r i b u t i o n o f nS n t o Banks
w ith h ig h e s t r e s e r v e r a t i o s
3 * 4>'7, 05*4
L- F in a l a l l o c a t i o n o f T re a s u ry
b i l l s in System A ccount
( " R ” minus " S w p lu s " T " )
9 ,7 9 6 ,5 8 6
7^42,535
2 2 0 ,4 3 6
875,171 1 ,3 5 4 .0 2 6 7 4 3 .6 3 7 6 7 3 ,9 0 2 1 ,6 6 6 ,2 5 7 5 2 2 ,3 8 4 3 7 9 ,8 5 5
595 *o e 3
bb5>b70 1 , 5 7 5 * 2 9 0
V» P r e s e n t a l l o c a t i o n s
9 ,? ° 6 ,5 R 6
8 3 1 .6 5 3
2 7 0 ,9 2 5
e i 4 .1 5 2 1 ,5 6 6 ,2 5 4 816,8149 6 9 7 ,7 3 7 1 ,5 3 8 ,6 0 9 5 1 2 ,0 2 3 3 7 7 ,2 5 1
'5 9 2 ,8 1 0
4 5 4 .3 2 4 1 ,5 2 2 ,9 9 9
- 8 9 ,1 1 8
- 50,1489
+61,019
W« Change in a l l o c a t i o n s
- -
lii.8 ,6 6 8 1 , 787,110 1 , 517,650 662,810 5 7 2 ,9 9 0
—
9 1 1 .9 3 9
—
7 1 ,7 o 6
III.
X* Participation in System Account
("I" plus "U")
—
--
—
—
8 0 ,8 2 7 100,912 1 , 6o 6,257
- 11,628 - 7 3 ,2 1 2 - 2 3 . p35
6 8 1 ,3 9 4 1 ,1 3 9 * 7 8 6
1+59*1443
7 2 ,3 4 3
8 6 ,3 7 1
—
—
—
+129,6148 +10,361
+ 2 ,6 o 4
+ 1 ,2 1 3
* Based on note and deposit liability and
reserve figures November 30# 19^6*
- 8,878
- 3 3 ,6 4 7
6 9 4 ,3 1 6
—
- 8 ,8 5 4
—
mm mm
1 ,5 7 5 .2 9 0
+ 5 2 ,2 9 1
T o t a l a l l o c a t i o n o f System A ccount S e c u r i t i e s
18 , 716,088 1 ,4 0 1 , 4 7 4 2 ,4 6 5 ,7 1 0 1 ,5 1 7 ,8 4 0 2 . 111,186 1,278226 l.]2 E £ 0 3 2 ,8 0 1 ,3 5 3 l.0U£49 650,636 1,037,802
Y* Change in participation
163,024
9 8 1 ,8 2 7 4 5 2 ,1 9 8
+24,403
- 18,420 - 79.099 - 4 4 .6 4 1
+IC7.077
-1,478
+4,607
-3,576
889,411 2,422,496
+8,683
+44,969
Reproduced from the Unclassified / Declassified Holdings of the National Aichives
REALLCCATI01T OF G0VLP*VE!1T SECtT.TTTES IN SYSTET OPEN I'ARKET ACTCUNT, DECEMBER 1 , 1 9 b6
( i n th ousan d s o f d o l l a r s )
:
Reproduced from the Unclassified I Declassified Holdings of the National Archives
D
un
a
^
Ss< ‘
q
o
■
£3
3
<
Beeeaber 2.
Up. R o b e rt
low#©, V ie e P r e s id e n t ,
F e d e ra l R ese rv e Bank o f Hew f o r k ,
Ifew York ? , Hew T o rk .
Jfear Hr* lo u s e *
there i s enclosed a statement shewing adjustments
to be raade in allocations of Sotmanit seeurities in the
System Open Market Account as of Deoember 1, 191*6, prepared
in aceordanoe idth the forwile adopted by the System Open
Market Comwlttee on September 21, I9J&, a» aasnded June 20,
i
j
19^5l^ r y t r a l y y o u r s ,
I
f
I* L* Smead, Director,
Dirision of talk Operations.
Enclosure
D EC LA SSIFIED
co wtmmXAh
■•w
Phila- Cleve
Rich
delphia land
mond Atlanta Chicago
Tork
I* Allocation of Interest-Bearizig Securities
Kansas
apolis
city
7 .5 8 2
3 ,1 9 6
1*689
2 .9 7 4
2 .4 4 6
5.223
411
1,312
353
238
361
394
1,0 11
4,041
3 .3 6 4
8 ,8 9 4
3 .5 4 9
1*927
3 ,3 3 5
2 .8 4 0
6 .2 3 4
324
139
103
534
185
87
264
42
143
6 ,7 4 3
7*950
8*274
5.3 4 2
5.4P1
4 ,451
4 ,5 5 4
11.235
11,769
4.403
4 .5 ? ?
2*451
2#53B
4.143
4.407
3.712
3 .7 5 4
8 ,369
B.512
5 ,2 5 6
1,725
2*271
i,44o
1,190
2,875
1,039
611
1.072
914
2,278
7-0615
24*ol»79
7-6233
9*7779
6.3558 5.2883
12.8804
4.8641
2* 821#
4.8608
4.3348
10.0603
2,111
7.188
2,276
2*922
567
1,938
553
A* Estimated current expenses* I9I46
56*117
x 777
?*(
(1
13.588
4 .2 0 J
4 .9 0 9
3 .5 8 3
2 .9 5 3
B. Istissated dividends* I9I46
10*960
649
3 .8 6 4
815
1*094
458
e. Estimated expenses and dividends
67*077
4 ,4 2 6
17,446
5*018
6*003
3#090
136
956
177
86*202
*9*292
5.PJU
5 .9 7 0
8 1 ,7 4 6
2 2 ,7 ®
6*566
22*215
1 .5 4 4
100*0
Eat teated earnings for year above
expense and dividend requirements
($22*215#000 pl«* estimated earn
ings December on interest-bearing
seeurities in System Account at
1.013073# earnings rate# 17*675*000}
allocated on basis of *?*
29*890
p. Average daily participations#
per cent* in interest-bearing
securities in System Account
since Hovember 3°# 194l
E. *G* minus *E*
I.
7*675
651
Dallas
San
Francisco
1.900
1.581
3.850
1.460
8l*4
1.453
1.296
3.00?
460
391
975
421
233
381
382
729
Allocation of interest-bearing
scouritiss in System Acoount
on basis of *H*
8*919*502 658,939 2,245.274 642.669 756*5^0 534,589 45l**4oi 1,133.096 489,265 270*781 iw2.779 443.941 847.208
Present allocations
e*919*5G £
mm
K* Chang® in allocations
* Exclusive of
on Treasury bill**
57&JM 2 ,2 2 8 ,m
0 7 9 ,2 8 5
7 6 3 *3 5 2
+1:0,240
-3o,61t>
*6*792
♦ 1 6 ,6 4 2
5.40,476 475.2C7 1,155.667
- 5 .S 8 7 - 2 0 ,6 0 6
- 2 2 .5 7 1
5 0 1 ,1 0 +
2o 8*7?B
447.5< j 8
- 1 1 ,6 3 9
'♦2*003
- 4 .7 8 9
426.40^ 654.530
+ 17.537
- 7.322
I Declassified Holdings of the National Archives
Minne
Boston
E« Excess of "1)3* over *C*
Page 1
Q . ID 5 0 1
S t.
Louis
System
Current earnings**
1* Estiisaied earnings* 19^0#
other than on Government
securities
2* On inter©st-bear ing securities
in System Account to Wov* 30
3* Total*
Authority j
Reproduced from the Unclassified
KEALDOCATXO!? OF GOVBRMLJIT StCUBrfXBS I! ? B r m w 0P2K VARKET ACCC10HT# DECLVBER 1# 1 9 &
( i n thous« in d s o f d o l l a r s }
DEC LA SSIFIED
m m m nut
rballocatioh of GovLr<i«mT sixu rxties xn syst*^ of^n vakket accc-eht, decevbek i , 1946
(In thousands of d o llars)
j
System
L. Distribution of estimated earning;*
on bills for yoar on basis of *?*
Phi la - j ClaveE1« i- I Atlanta 1 Chieago 1 " ?
1 KiLnnedelohia j land - M B * J ____ ___ 1 _____ “ ...I Loul*. Jm s >lis
II. Allocation of Treasury B ills
Hear
Tork
Boston
Q . \[) SO I
“
•
^
San
Francisco
i
53*409
3.771
12,844
4,072
5.P22
3,395
2,821*
0,' ,'9
2,609
1*509
2,596
2,315
5,373
30,664
2,591
617
2,523
4.170
2,661
2,1462
4,086
1*765
1*155
2,02?
1*664
4,723
19,582
281
12.155
681
311*
212
84
3.880
347
134
238
98
1,158
3.163
999
72
868
738
322
2?8
-1,08?
477
220
331
553
-508
-301
-24
-291
-248
-108
-9 3
♦1,067
-160
-74
*111
-185
+508
598
1*8
577
1)90
214
185
517
li46
220
368
%U Earnings to Kovember 30 on bills
in System Aooount
Earnings to Deoesber J1 on bills
in option aoc cunts (e st.)
Pro rata share of earnings trm
bills in System Account Deeember
(*LWminus %* and "H*)
Adluetaant due to exeeesee of
In* pine *1* over *L*
Authority j
MM*
Q* Adjusted pro rota share of earnings
fro* bills in System Aooount*
Beos»ber
5*163
Allocation o f System Aooount
bills in proportion to %*
9.796.586 1.852,153
Portion that Banks cannot take
due to im reserve ra tio *
3,497.054 1,109,618
148*668 1,787,110 1.517,650 662,810 572,990
wee
911,939
163,024
Mhnv
981*827 452*196
459*&3 72*343
—
mm
661,394 1*139*786
86*371
694*316
f * distribution o f wSn to Banks
with, highest rsaerve ra tio s
3.497.054
U* Final ax looation of Treasury
bills in System Account
(*H* minus w5n plus **?*)
9 .7 9 6 ,5 8 6
742.535
2 2 0 ,4 3 6
8 7 5 .1 7 1 1 .3 5 4 ,6 2 6 7 4 3 ,6 3 7 6 7 3 ,9 0 2 1 .6 6 8 ,2 5 7 522.381*
379.^55
595*^ 23
41*5 . 4 7 0 1 , 575.290
V. P r e s e n t a l lo o a t io n s
9 ,7 9 6 ,5 8 6
831.653
2 7 0 ,9 2 5
t:1 4 .1 5 2 1 ,3 6 6 ,2 5 4 8 1 6 ,8 1 0 6 9 7 ,7 3 7 1 ,5 3 ? .6 £ 9 5 1 2 *0 2 3 3 7 7 ,2 5 1
592,010
4 5 4 .3 2 4 1 ,5 2 2 .9 9 9
- p o .n e
- 5 0 ,4 * 9
+61 i 019
w* Chang# In allocations
efe*»
71.768
60,82? 100,912 l,6oa,257
III*
X* Participation in System Account
(" I * plus
-1 2 Q ,(4 F + 1 0 ,3 6 1
« ...
+ 2 ,6 0 4
+1,213
* Based on mot© and deposit lia b ility and
r a serve figures November 30 , 1946*
—
- 6 ,3 7 8
- 3 3 .6 1 #
mm
- 8,854
1*575*290
+ 5 2 ,2 9 1
Total allo catio n of System Account Securities
i. 716 ,0 0 8 l , 4 o i , 4?4 2 , 465,710 1, 517. 31+0 2 . 1 1 1 ,1 8 6 1,2782261,320303 2 , 301,353 1. 0U449 650,636 » , 037,Cce
Y# Change in participation
- 1 1 , 6 2 * * 7 3 ,2 1 2 - 2 3 ,^ 3 5
—
+24,1*03
-1 0 ,lt2 C - 7 9 ,0 9 9 -1*4,641
+107.C 77
- 1 ,4 7 8
+1*»607
- 3 ,5 7 6
889.411 2 ,l|2 2 ,i# e
+ 8 ,6 8 3
+ 4 4 ,9 6 9
DECLASSIFIED
Reproduced from the Unclassified
I Declassified
Holdings of the National Archives
o
ir>
£3
cj
£
£o
3
<
CD XMFILES SECTION
esc 101946, w
T 3 L 3 G K
B o a rd
J'-,
o f G ove m e Of tti.8
Federal Reserve
Leased
S y s te m
> - :!,-':
' Received at ,*/-s*h,r 'v. u. G. t
W
A
6D
E
C2
WA17WASH C3
PH[LA DEC 2-942A
VANFOSSEN
EARNINGS TO NOVEMBER 30 ON TREASURY BILLS HELD OUTSIDE SYSTEM
ACCOUNT ARE
$639,384.99
R R WILLIAMS.
9 45
DECLASSIFIED
Reproduced from the Unclassified / Declassified Holdings of the National Archives
0
in
01
a
o
■3B
<
^
7
L
F J
'3
&
r
cr.ro. or
;u-!
or tne
Federal Beserve System
"
W j ’f 6 3 0 1 V
BeeeueJ -u ■
RSU‘0 IM FILES SECTION
O E C 10194$
'
WA14G04WASH D2 CLEVE 2-923
VAN FOSSEN
EARNINGS ON TREASURY BILLS HELD BY OUR BANK OUTSIDE SYSTEM ACCOUNT
FOR PERIOD FROM JANUARY 1 TO NOVEMBER 30 194S INCLUSIVE ARE
$292,679.29
' SMITH.
501
Q , |0
j
Authority
DECLASSIFIED
Reproduced from the Unclassified / Declassified Holdings of the National Archives
i-
r
Trrr „ , ^
fx
oi 1-V/Jcr-' R-:r<:r^A S
j
©
4
6D
E
C2 A
M|Q 50
\Tr,Tr '-so-*'
Received *t
J.N FILES SSCTJON
0 1 6 1 01 9 4 $ '
■
'
./
WMB
WA43WASH RH 25
RICH
,2-1045
VAN FOSSEN
i
:/;-.;;v/w
/ f*
■'
RETEI^EARNINGS TO NOVEMBER 30- ON TREASURY BILLS HELD BY US
OUTSIDE OF SYSTEM ACCOUNT $198,404.25
NOWLAN.
Holdings of the National Archives
|
Q , j D5 0 1
I Declassified
Authority
DECLASSIFIED
Reproduced from the Unclassified
..... _r
^ C ’D .IM FILE'S SECTIOM
|
Bioard ox u-u * ^
ot tne
Federal'Eeserve System
- _ar-irAService
BEC 1D 194I
i
_
I -S H ^
f
WA09TASH F1 ATLANTA 2 837A
VANFOSSEN
REURTEL NOVEMBER 29.1 EARNINGS THROUGH NOVEMBER JO ON TREASURY
BILLS OUTSIDE SYSTEM ACCOUNT $74,122.41
MCCRAVEY.
/
c/ -
-----
Holdings of the National Archives
]
0 . I0501
I Declassified
Authority
DECLASSIFIED
Reproduced from the Unclassified
!!C'D I« FILES S60'
D ie 1 0 1 9 4 6 ,1
° ’itv
a uricfiR«rv!C
: *'
V‘v*
lo
WA24GC09WASH 15 MPLS 1-903 2ND
BOARD - VAN FOSSEN
EARNINGS ON TREASURY BILLS HELD OUTSIDE OF SYSTEM ACCOUNT TO
NOVEMBER 30 TOTALS $123,913
/
PETERSON.
Holdings of the National Archives
t
0 . 1D 50 /
I Declassified
Authority
DECLASSIFIED
Reproduced from the Unclassified
' •"sg'D 5 FILES SECTION
660101946, J'»
T 7? r,' E G
Eoarci or COT
-
Federal Re^ rv_ o.. ,>'•
Leased W c <>'
Received at W<•/>':’' ■3. -
WA72WASH B184 BOS 30-12J8
SMEAD BOARB
\
RETEL NOVEMBER 29, 1946
NOVEMBER 30, 1946,
ESTIMATED EARNINGS THROUGH
ON U S TREASURY BILLS HELD BY THIS BANK
UNDER-REPURCHASE OPTION $261,048.26
PITMAN.
FOR FILES
M. B. Daniels
0, ID 501
t
i
Authority
DECLASSIFIED
Reproduced from the Unclassified / Declassified Holdings of the National Archives
*C’ D m FILES
t '? - l ,-r'g
...u
ho c. } 'd o f •.j-.uvernors
O f 't . b g
SECTION
DEC 1 0 1 9 4 6 , / / /
i3 2
o ,/ ;
F ed ere'
-WVLCf;
H0cn;yyo a? VVav-;^..'rtr-
WA74WASH B 7 91
NY
ih
0-
NOV 30
PM I
5 0-1 20P
VAN FOSSEN
BOARD
EARNINGS ON TREASURY B I L L S
HELD FEDERAL RESERVE BANK OF NEW YORK
OPTION ACCOUNT TO NOVEMBER 5 0 ,
$ 1 1 ,0 2 7 ,0 0 0 .
ROUSE.
25
Holdings of the National Archives
1 0 ,
ID S G I
I Declassified
Authority
DECLASSIFIED
Reproduced from the Unclassified
NOV 30 PM
|
25
T^LEOrBAJkl
B oar d
>i o v e t ' n o r s
of title
of
I<edera.- Res:
XjQSUSSCS Witt
RKC'D I?I FILgs ACTIOS
System
•
>
Becsivsd a t W z-hi- v .
n n
WA75G28WASH GX105 CGO 30-1210
VAN FOSSEN
BOARD
\
EARNINGS THRU NOV 30 ON TREASURY BILLS HELD OUTSIDE SYSTEM
ACCOUNT 3,594,765 30
BLACK.
Hi
Holdings of the National Archives
j
Q . ( 0501
I Declassified
Authority
DECLASSIFIED
Reproduced from the Unclassified
a- i,
■Boc.rd gi
ot rfco
■
Fede^l 'Reserve System
Leaded. Wire
■Rec'-'Vad
Washhslen, i), C.
3 ) PM
WA85G50WASH H69 STL 30-1236
VANFOSSEN
REURTEL 29; E E A R N I N G S
194S THRU NOVEMBER 30 ON TREASURY HELD
BY US OUTSIDE SYSTEM ACCOUNT APPROXIMATELY $310,844.04
BU B' .
Holdings of the National Archives
1 0 , i050/
I Declassified
Authority
DECLASSIFIED
Reproduced from the Unclassified
*T
£* iU G JR.j\ ivj'
J
;n-ro
r
Federal Iteserve System
j.ioasea WlVQ *"'•TT?":C0
Recced m
7, c
m
N
O
V30 P
M|
.....-.........................
RSC’fe XH FtWS SECTION
DEC 101946,
WA73G08BDWASH J83 KC 30-1201
VAN FOSSEN
REURTEL ESTIMATED EARNINGS TREASURY BILLS OPTION ACCOUNT TO
NOVEMBER 30, 1946, $209,000.
KOPPANG.
18
Holdings of the National Archives
|
Q,
\f ) 5 0 l
I Declassified
Authority
DECLASSIFIED
Reproduced from the Unclassified
KfiC* XN Fir
** ACTION
DEC 1 0 1 8 4 6
t •?,!,£ Q K '\
Board or
^
.
Federal
NOV 3 o
\
x WA03G81 WASH Ml 00 jDLS 30-139
VANFOSSEN
THIS REFERS to YOUR WIRE OF NOV 29 EARNINGS
TO NOVEMBER 30 ON TREASURY BILLS HELD BY THIS BANK OUTSIDE
SYSTEM ACCOUNT $87,557.00
GILBERT.
PM
2
Bo
Q . \Q50I
j
Authority
DECLASSIFIED
Reproduced from the Unclassified / Declassified Holdings of the National Archives
3 L E G E A M
Board o f Governors
of the
Federal Reserve System
JLi8EtSBCi Wire xssrvic©
3ived st Washinsion. d«
NOV 30 PM 3
WA28G31WASH L63 SF jgKMK 30-1250
BOARD
REURTEL NOV. 29., EARNINGS ON TREASURY BILLS TO NOVEMBER 30
$1,074,493.51
http://fraser.stlouisfed.org/
Federal
Reserve Bank of St. Louis
I
SLADE.
59
Reproduced from the Unclassified / Declassified Holdings of the National Archives
o
Q LH
5 a
6 —
CO" '
C
J \
u ^
"M £o
c
£
3
<
KEC’ D IK FILES SECTION
TELEGRAM
BOARD OF GOVERNORS
NOV 2 91946
OF TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V I C E
WASHINGTON
lovem ber 29 , 191*6
W hittam ore • Boston
S p ro u l • New York
W illiam s - P h ila d e lp h ia
Gidney - C levelan d
Leaoh - Richmond
Mo L arin - A tla n ta
Young - Chicago
Davis - S t . Louis
Peyton - M in n eap olis
Leedy - K ansas C ity
G ilb e r t - D a lla s
B a r h a r t- San F ra n c is o o
P le a s e w ire to reaoh Board n o t l a t e r th an 11 AM SST
Dsoeraber
2 e a rn in g s
to Movember 30 on T re a su ry b i l l s
h e ld by your Bank o u ts id e System A ooount.
Van P ossen
\
d e c la s s ifie d
Authority f . Q . |t ) 5 0 j
Reproduced from the Unclassified / Declassified Holdings of the National Archives
F
ederal
R
eserve
B
ank
o f New Y o rk
November 4-> 194-6 •
Dear Mr. Smead?
We r e c e iv e d your l e t t e r o f November 1 , 194.61and have tod ay
s e n t to th e R eserv e Banks a copy o f tfrs ^ ^ a ^ m ta tio n showing th e
a d ju stm e n ts made on November 1 , 1 9 4 6 , p u rsu an t to th e p la n adopted
a t th e m eeting o f th e F e d e ra l.O p e n M arket Committee on Septem ber 2 1 ,
1944 -1 a s amended Ju n e 2 0 , 194-5*
E n clo sed h e re w ith i s a copy o f th e l e t t e r o f t r a n s m i t t a l ,
to g e th e r w ith th r e e c o p ie s o f th e co m p u tatio n , a ls o copy o f te le g ra m
which was s e n t to each o f th e F e d e r a l R eserv e Banks on November 1 ,
1946.
V ery t r u l y y o u rs ,
F i r s t V ice P r e s i d e n t .
Mr. E . L . Smead, D ir e c t o r ,
D iv is io n o f Bank O p e ra tio n s ,
Board o f G overnors o f th e
F e d e r a l R ese rv e System ,
W ashington 2 5 , D. C .
(E n c lo s u re s ( 5 )
http://fraser.stlouisfed.org/
iFederal Reserve Bank of St. Louis
*
l
6
f
**/
j Q , ID 50 i
Authority
DECLASSIFIED
Reproduced from the Unclassified / Declassified Holdings of the National Archives
f e u N RECORDS SECTION
M !S C i 140 A 1 0 0 M -7 -4 5
F ed era l R eser v e ba n k o f n ew Y ork
APR 2 41968
November A, 19 ,
46,
Dear Mr* ? nittenor*i
In a cco rd a n ce * i t h our telegram of November 1, 1946, 1 enclose
h erew ith com putation of the re a d ju s tm e n ts made on Hovestber 1, 194.6, In
the p a r tic ip a tio n ® of the Federal Hese rv e Batik* in th© Syefcen Open
M arket p o r t f o l i o .
¥erj t r u l y yours,
I#* E.\ Rounds,
^F4rgt\V'lce President,
-r*
f * Wbittemore, President^
Federal Reserve Bank of Boston^ \
Boston, Massachusetts*
/
\ \
FB
Enclocure
^
I
\
\
\\
\
\
Reproduced from the Unclassified
I Declassified Holdings of the National Archives
o
q in
^ 0005 Q
%
!jW
S-i
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+->
3
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M I S C . I 4 0 A 1O O M -2 -4 3
REC’O IN RECORDS SECTION
zmmnm
mt t j m
F ed era l R e se r v e Bank
of
:r A 'C r ^ f f r APR24'1968rt
^HVV ^
vt
New York
>
f.k. ♦,s.s,.nc ai.
a a a a . j^acLiiiLiLjaffiaaa m s * *
/
o f p irU d | ftU «8« in &oir®rt*&»oi i « o t r l U t i fooltf in Sytto* Acoount
i t bolog *»<$• %&4* f uu4* t fc&«
for rMllooatioo of &mwrwmm%
«*• F#d#r*l 0jMm m r k * % ^oasriiio® ■&o$?i«*l»»r 21, 1944#
adoptawS by
Juci 20, 1945*
ftw
ooorotfctloii# lowing «4ta*?t«ojntft »«£• la pariifipfetism# of tfco mmmmt Fodoml kixdnt twite
1SCJUUSS
will ft* mftllod tc i U fc#«#rv# Iftok# «* §**•»%«? 4* 1%**«
l&Olo&in: an
of
m mmm
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lc toro t t-b#* ring e b ilf*tlo » ft, wa
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D EC LA SSIFIED
CONFIDENTIAL
W SECURITIES IF SYSTUf OPEN I'ARXET ACCOUNT, NOVEMBER 1 , 19 Authority i f .
( I n th ou san d s o f d o l l a r s )
■REM-IO^\rriI 0 v
e
System
S. « ■
w
cr>
-gEaJJnate I c u r r e n t e x p e n s e s , I 9I46
S
<M
^EstPSmate d iv id e n d s , I 9I46
j
B o sto n
New
York
P h ila
d e lp h ia
S t,
C le v e
H ieh A tla n ta
ChiCR-~o
I-ouis
land
mond
I * A llo c a t io n o f I n t e r e s t - B e a r in g S e c u r i t i e s
U ,lc l
7*521+
3 ,1 6 3
U.5U2
3,539
2,935
0 . 10501
P a3e 1
Kansas
. C ity ....
D a lla s
1,660
2,91+7
2,1406
5*159
39k
2,800
1*010
Minne
a p o lis
San
Fran oisc<
55,l4l46
3*655
13*1+35
10,958
61+9
3*861+
815
1 .0 9 U
1+58
I+11
1*3H
353
238
361
66 , 1+01*
l+*30l+
17*299
4,996
5 .9 3 6
3*9 9 7
3*3146
8*835
3*516
1 * 8Q8
3*308
3*051+
133
973
172
32>
133
98
167
78
261
39
138
7 8 ,8 6 5
8 1 ,9 1 9
5*359
5*U92
19*912
2 0 ,8 8 5
6 ,0 0 8
6 ,1 8 0
7 * 321+
7*61+7
l+*897
5*030
l+,060
1+, 158
10,281+
1 0 ,8 2 3
3*990
1+*157
2 ,2 2 9
2 , 3 07
3 *7 7 5
l+,036
3 *3 6 1
3*1+00
7 ,6 6 6
7*80l+
E . E x c e s s o f nD3n over WCM
15*515
1 ,1 8 8
3 ,5 8 6
1,1PU
1 *7 1 1
1*0 3 3
812
1 ,9 8 8
6I4I
1+09
728
600
1*635
F . Average d a i l y p a r t i c i p a t i o n s ,
per c e n t , i n i n t e r e s t - b e a r i n g
s e c u r i t i e s in System Account
s i n c e O ctober 31* 1Q1+1
1 0 0 .0
7 .C 7 9 8
2l+. 0361
7 .0 2 5 1
9 .8 ore
6 .3 o 2 1
5 .2 M2
12 l:V,y2.
i+.Be72
2 .8 2 1 1
i+*853^
1+.5187
1C .0632
2,172
7*375
2 ,3 3 9
3*009
1,952
1,620
3*953
1*^93
866
1,UP9
1 *3 2 5
3*088
3*7^ 9
1 ,3 55
1*2 9 8
919
808
1*965
852
1*57
761
725
1*1*53
CL
E s t im a t e I exp en ses and d iv id e n d s
ta m in g s* *
T* E s tim a te d e a r n i n g s , 191+6*
o th e r th a n on Government
s e c u r itie s
2* On i n t e r e s t - b e a r i n g se cu
r i t i e s in System A ccount
t o Ootober 31
3 . T o ta l*
G. E s tim a te d e a r n in g s f o r yep.r a^ove
exp ense ar d d ividend r e q i n r e r e r t s
v$ 1 5 * 515*000 p lu s e s tim a te d e a r n in g s
November-Dec ember on i n t e r e s t - b e a r i n g
s e c u r i t i e s i n System Account a t
1 * 017087^ e a r n in g s r a t e , $ 1 5 , 166 , 000)
a l l o c a t e d on b a s i s o f wF n
3 0 ,6 8 1
F . "G" minus " E n
15*166
981+
539
*
6*169
I . A llo ca tio n of in te re st-b e a rin g
s e c u r i t i e s i n System Account
on b a s i s o f "H"
8 ,9 2 2 ,3 9 1
578*902 2 ,2 2 9 ,1 2 7
679 *5 0 1 ;
763*633
51+0,662
1+75*359 1 ,1 5 6 , 01+0
5 0 1 , 2l+5
2 6 8 ,8 6 0
141+7*708
1^26,529
85U*822
J * P resen t a llo c a tio n s
8 ,9 2 2 ,3 9 1
5 9 5 * 9 5 2 2,250 ,7 8 1 +
7 0 2 ,5 2 3
770,21+7
5 5 2 ,6 5 5
1+73*562 1 , 1 6 9 * ^ 2
1+79*232
2 6 6 ,2 6 3
1+23,095
i+01,U07
8 3 7 *2 0 9
-1 7 ,0 5 0
- 23,0 19
-6 ,6 ll+
-1 1 ,9 9 3
- 13 * l £2
<-22,013
+-2,597
+2l+ ,6l3
+25* 122
+17*613
K* Change in a l l o c a t i o n s
~
♦ E x c lu s iv e o f e a r n i n g s on T re a s u ry b i l l s #
-2 1 ,6 5 7
+1*7 9 7
D EC LA SSIFIED
REA LLCCAT IO N OF G O V L P IlT ilT T SECT,r> T ^T E S V S '^ S 'T T CPE?T " ,TJVT r
( i n thousands o f d o l l a r s )
CO^FTDEKTIAL
S y s ts n
B o s to n
L. D i s t r i b u t i o n o f e s t i m a t e d e a r n in g s
on b i l l s f o r year on b a s i s o f " F " 53,^76
3.765
V* E a r n in g s t o O c to b e r 31 on
b i l l s i n System Account
27.617
2, 331+
19.JP3
6,176
New
York
II*
Cleve
R i c h At la nta
P h ila
land
d e lp h ia
mond
A llo c a tio n of T reasu ry B i l l s
Cm
a c c o u n ts ( e s t . )
*o r a t a s h a re o f e a r n in g s from
b i l l s i n System Account No-n-emberDecember ( HLn minus
and HN#)
P* A djustm ents due t o e x c e s s e s o f
nh\n p lu s nNw over " L 11
----
Q* A d ju sted pro r a t a sh are o f e a r n in g s
frcm b i l l s i n System Account
Noveirber-December
6 ,1 7 6
1 * I 9 I 4* Authority j ^ , Q , |[) S O f
I'inne-
Chicago
Louis
a p o lis
*^a - e 2
Ka nsa s
| Da 1la s
C it y
San
FrAxic^iitfu:
12,781
4,055
5,216
3,383
2 , POP
6,651
2,588
1,500
2,581
2,297
5,351
551
2,268
3,749
2,606
2. 21*5
3,598
1,620
1,036
1,843
1,522
4,245
277
12,137
685
311
218
85
3,770
323
129
235
95
1 ,1 1 8
1 , 151*
93
1 ,1 0 2
1,156
559
1+78
-517
645
335
505
680
-1 2
-91
-7
-87
-91
-1*4
-36
+517
-51
-26
-4o
-5^
+12
1 ,0 6 3
86
1 ,0 1 5
1*005
515
4 m-0
___
594
309
U63
626
—
—
03)1, P71
4 ^ 6 ,3 2 2
72^,696
9 8 5 ,2 3 4
—
3 9 3 , 0P0
109,616
151,833
5 3 6 ,0 8 2
—
N# E a r n in g s t o December 31 on b i l l s
i n o p t io n
A C C C T F F , TT V 2 'P 1 ;P .
R . A l l o c a t i o n o f System Account
b i l l s i n p r o p o r tio n t o "Q"
9 , 7 ? C , l l 4 0 1 , 673 , CIO
S# P o r t i o n t h a t Banks cennot t a k e
due t o low r e s e r v e r a t i o *
3 * 117.581+
T. Distribution of *SH to Banks
yith highest reserve ratios
3 ,1 1 7 ,5 8 4
U* Final allocation of Treasury
bills in System Account
(nR w minus WSW plus nT w )
9 .7 2 0 .140
827,437
135,352
811,976 I , 380, 2li6 810,536 692,497 1 ,6 0 5 ,^ 5
541,79 1
376,706
5 7 6 ,e63
1449*152 1,512,159
V# Present allocations
9 .7 2 0 . 140
807,253
407,298
805,579 1,377,682 865,752 743,870 1 , 266,882
562,913
366,058
595,711
473*9^8 1 , 1447,194
-21,122
+10,6l4B
-18,848
-24,796
1 3 5 ,3 5 2 3 , ^ 7 , U65 1 , 6 7 6 , 1 5 7 8 1 0 ,5 3 6 6 9 2 ,4 9 7
81*5.573
7^5,489
+6,397
III»
X« Participation in System
Account ("I* plus nU*)
+2,564 -55,216 -51,373
+338,543
* Based on note and deposit liability and
reserve figures October 31* 19^6*
+3,134 -293,603
+64,965
Total allocation of System Account Securities
18,6142,531 l#4o6,339 £364,479 1^91*480 2,143*879 1,351,198 1,167,856 2,761,465 l,0Li3,036
Y# Change in participation
1,512,159
1,605,1425
+20,184 - 271, 9^46
W. Change in allocations
205,011
- 16,622
- 4,050 -67,209 -49,576
+325,121
+891
645*566 1,024,571
+13*245
+5*765
875*681 2,366,981
+326
+82,578
Reproduced from the Unclassified
I Declassified
Holdings of the National Archives
o
A
+-*
<
Tvi K:„;;
flOV
TELEGRAM
,
BOARD OF GOVERNORS
41248
-v
lL
OF TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V I C E
WASHINGTON
l o w a b s r 1 , l$k£>
Ions* - 9 *v York
this will oonfirn understanding in tal«phone eonvsrsation that
adjustnants of participations in Systsm Aooount will bs as follows,
in thousands of dollarsi
Intara st-baaring
saeuritiss
Boston
- 1 7 ,0 5 0
low Yotfk
- 2 1 ,6 5 7
Philadelphia
* 2 3 ,0 1 9
Treasury
Mils
♦ 2 0 ,1 8 1 * .
-271.9W
Total
♦3.13k
-893.605
•*6.397
-16,622
»6,6lk
♦2.56U
—{4,050
-11.995
-55.216
-67,209
Atlanta
♦1,797
-51.373
-49.576
Chio&go
-13.U22
♦338.5U3
♦325,121
it. U n i s
♦22,015
-21.122
♦691
Minneapolis
♦8.597
+10»6it8
Kansas City
*eU,6l3
•*18,61*8
♦5.765
Dallas
*25.122
-2U.796
♦
San Franoisso
♦17,61?
<6^,965
Clora land
Riohmond
♦ 1 3 ,2 1 4 5
526
♦*2,578
Snead
FO R
F
Vi
£
'
j*^
I Declassified
Holdings of the National Archives
DECLASSIFIED
Reproduced from the Unclassified
i i \J
3
....J
lomember 1,
Mr. Robert 0* louse, Tiee President,
Federal Reserve lank of Sew Tork,
Sew Tork 7# »•* Tork.
Otar Mr. Sou ses
There is enclosed a statement showing adjustments
to he Bade la allooations ef CloTemweat seeuritles in the
System Open Market Aocount as of loreaber 1, 191*6, prepared
la aeeordanee with the forwula adopted by the System Open
Market Ceosdttee ea September 21, I9I4I*, as amended June 2D,
Tery tru ly yours.
1 . L* Ss*ad, Mreetor,
Division of leak Operations*
Inelosure
i
'
..‘ * C
r
/
D EC LA SSIFIED
System
55.4*6
B . Estimated dividends* 1946
10,958 '
C. Estimated expenses and dividends
66,4o4
Ncm
York
Fhlla-j C l m delphla] land
Rich
mond
Atlanta
Chicago
St.
Louis
X* Allocation of Interest-Bearing Securities
O B T — K W ~ 3 V 5 3 9 -------w m .......... T.Wi— 'i, 163
Minneapolie
Kansas
1
5 0 1
Balias
City
S*n
Franeisoo
1,660
2.94?
*.4o6
5.159
353
238
361
394
1,010
3.516
1,898
3.308
8,800
6,169
167
78
261
39
138
10,284
10,823
3.990
4.157
2,229
8.307
3.775
4.036
3.361
3.400
7,666
7.804
812
1,988
64l
409
728
600
1.635
6.3621
5. 281*
i 2.e e *2
4.8fc72
2.8211
4.8535
4.3187
10.0632
5.009
1.952
1,620
3.953
1.493
866
1.489
1.385
3.088
1.898
919
808
1,965
852
457
761
725
1.453
3.655
13.435
649
3.864
815
1.094
458
4ll
1.311
4.304
17.299
4,996
5.936
3.997
3.346
8,835
3.054 7
153
975
178
323
153
98
70.065
81,919 A
5,359
5.492
19.912
20,885
6,006
6,180
7.324
7.64?
4.897
5.(00
4.060
4.158
B* Excess of *D3* over *C*
15.515 ' 1,188
3.586
1.184
1.711
1.033
? . Average d a i l y p a r t i c i p a t i o n s ,
per cent# in i n t e r e s t - b e a r i n g
s e c u r i t i e s i n System Account
s i n c e October 31* 19^1
100.0 i 7.0798
24.0J61
7.6251
9.8066
2.172
7.375
2.339
984
3.789
1.155
•% Current earningst*
1 . Estimated earnings# 19^6*
other than on Goverment
securities
2* On interest-bear ing securitias in System Account
to October 31
3* Total*
539
n. ^etir- fited earnings for year above
expense and dividend requirements
(115*515*000 plus estinated earning*
Ifoven bar -December on interest-rbear lng
securities in Svatew Aocount at
1*017087# earnings rate, $15*166,000)
allocated on basis of
30*681
nf n
IT*
nQn minus WE*
15.166
I . Allooation of interest-beer ing
securities in System. Account
on basis of "H*
J. Present allooations
K. Change in allocations
8, 922,391 578.902 2,229,127 679.504 763.633 540,662 475.359 1.156.040 501.245 263,860 447.708 426,589 854.828
8,922,391
—
•inclusive of earnings on treasury bills*
,
595.952 2.250,784 702,523
-17.050
-21.657
-23,019
770.247
552.655 473.568 1.169.462 479.232 266,263 423.095 401,40?
-6,6l4 -11.993
+1,797
-13,422 +22.013
+8.597
+24.613
+25,122
837.809
+17.613
I Declassified Holdings of the National Archives
A. Estimated current expenses* I 9I46
Boston
0 . {0
Reproduced from the Unclassified
T?BAl.IOCA?IOW OP 30VKFW:-Hf SSmtRITIBS IN SYSTLJf OPEN MARKET ACCOJKT, HOVEl*BKR 1 , I 9I46 Authority t
(I n thousands of d o lla r# )
COKFIBENTIAI.
KKAtwcAiioi cf
C0WTIDEBTIA1
aomtimm
•bcotitim ik srsTsy o n * vuem accoojw, bot»bes l. 1946
( In thou»»nd« of d o llar*)
| Bwr
Phil*** j i'i*W » 1 fcioh- (Atlanta
I Tort | dalphia I land 1 stood
11* Allocation of fro*aury S ill*
ChiMgO j
D EC LA SSIFIED
Authority
Q. |
0501
| DftlXti
2
San
| iyatoa
Boston
U Bi*trib«%i«tt of *sti»atod oarnlngs
ea b i l l* fo r y*sr ea b*sis of *f* 53#1?6
3,765
12.781
It, 055
5.816
3,3#3
2.806
6,851
8,588
X.500
8.581
8,897
5,951
8,33k
551
2,268
3 .7 4 ?
2*606
2,245
3,598
1,680
X.036
1,843
1.522
4*2i£
877
12*137
685
3XX
218
85
3 ,770
383
189
835
95
1*118
X.X54
91
x ,ic e
1,156
CQQ
4?8
-517
645
335
5®
680
•16
-91
•7
•87
«9X
**l&
-38
♦5X7
-51
-86
-4 e
-5 4
♦ It
1,063
66
1.015
1,065
515
wnt
594
3<S
463
934,fW
486,382
788,696 985,854
393,080
109,6X6
151,833
It* Sornings to Ootob*r 31 ©»
b ill* in «y*tssi Aooownti
V*
4
Jarnings
In option
^
87*6X1
D#**»b*r
on b ills
aooounta (arte.)
7
| I
6*176 ^
I* Adjuatmenta dua to oxooa*** of
V plus *B* or*r *L*
H* Adjustad pro ra t* sbara of earniaga
from b ill* in Systam Aooount
/
loTOBsbor-Daoaabar
6*176
ft*
1 *•
»
S*
3,1X 7,584
Distribution of *8* to Bonk*
with high*at raaorro ra tio *
3 ,1 1 7 .5 8 4 7
( * t«
?♦
/
9,780,11*6 1,673.0X0
Portion th at Banka oannot tako
duo to Xm raaorro ra tio *
Final allooation of froasnry
b ills in Syatam Aooount
siim * *$* plu* *T*)
Prasant allooation#
W* Ohang* Is allooation*
/
785,1*89
845.573
City’
»
PIII ."
V
H
P
'
«*»
895,911
536,088
• •
1,518,159
8X1,976 X,380,el«6 810,536 692,1*97 1,605,485
541.791
376,706
576.863
805,579 1,377,686 865,758 743,870 X,266,888
♦80,101* -871,91*6
* .5 6 4 -55.816 -51,373 *138,51)3
•*6,397
568,913
•81,182
366,058
+10,648
595.711 475.948 1.447.194
-18,848 -84.796
♦64.965
•*iFJr#sr^r^
im * m
449,158 1.518.159
f o ta l allooation of ly stoat Aeoount Soourltloa
/
JU Participation la Syataa
Aooount <*J* plu* *#*)
i#m&,i39
—
• Based on not* and daposit liability and
raaorva figuras Ootobor 31# 19^6*
]
1,605,425
9,720,1140 / 8 8 7 4 0 7
9*780.11*0 ' 607,853
*M
»
135*352 1597,1*65 1,676,157 810,536 692,1*87
III*
f« Chang* in p*rti*ip*tion
tftlU
.
.
19*383
Pro ra t* sharo of aarning* fro *
b illa 1st f y i t i a Aooount Jlora»bor~
Dooombor (*L* ainu* % * and * i * )
I* Allooation of Systssi Aooount
b ill* la proportion to *Q*
Louis
iteuteo 2,ik3>m
+3A3k -893,603 -I6*68t
-4,05© -67*209 *40,576 ♦|2itl2I
i*m*m
*891
61*5*566 1*024*571 375#6il 2*166*981
♦13*245
♦5*765
+3*6
*82*178
Holdings of the National Archives
j
0
. >D 5 0 f
I Declassified
Authority
D EC LA SSIFIED
Reproduced from the Unclassified
•T I
i E Gr R A M
Board o f Governors
o f tH e :
Federal .Reserve System
L eased W ire S e rv ic e
Received at Washington, 0, G.
\ AM 9
i\/
U ,;;4 8
^ T i
_J,
WA10WASH Ft ATLA 1-834A
VAN FOSSEN
REURTEL OCTOBER 3Cf. EARNINGS THROUGH OCTOBER 31 ON TREASURY
BILLS OUTSIDE SYSTEM ACCOUNT $63,888.26.
MCCRAVEY.
fo r files
M. B. Daniels
Q . ID 5 0 1
j
Authority
D EC LA SSIFIED
Reproduced from the Unclassified / Declassified Holdings of the National Archives
T Tj js g* r a
Coar.d of'Gcn/ enioro
1946 NOW > AM I I 07
o f riie
Federal Reserve System
■ L eased W ire S e rv ic e ■
BpCT:v’a hi > >1 4
&
WA37WASHRH 25 RICH 1-1105
VAN FOSSEN
-
;
/Ofz*
i
•!0V
6 U43
hi
, :;i, .5' V , 3
‘
RETEL\ EARNINGS TO OCTOBER 31 ON TREASURY BILLS HELD BY US OUTSIDE
OF SYSTEM ACCOUNT $ 1 8 2 ,1 5 0 .9 5
NOWLAN.
,
Q , |0 5 0 1
j
Authority
D EC LA SSIFIED
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TEST, E .O R 'A
Board-of Governors r r * :”
.
or the
TW w ,,, .
R.'^ i, .n
^
Federal Reserve System
Leased Wire tiervice
Received at
0, 0. J 3 .,w
WA17G56WASH D 5 CLEV 1 - 9 2 4
VANFOSSEN
EARNINGS ON TREASURY BILLS *HELD BY OUR BANK OUTSIDE SYSTEM
ACCOUNT FROM JANUARY 1 TO OCTOBER 31 , 1 9 4 6 ,
INCLUSIVE
$ 2 7 1 ,0 5 9
SMITH.
f o r files
M. B. Daniels
Q , j0501
j
Authority
D EC LA SSIFIED
Reproduced from the Unclassified / Declassified Holdings of the National Archives
v L E & EA M
Board of (xoyernorso r th e
Federal. Reserve
System
Leased W ire S e r v ic e 1.
Received at Washington, 0. G,
nov
oums
“5
WA11 G02WASH L96 SF 3 1 - 3 4 2
I
BOARD
\ REURTEL OCTOBER 30
EARNINGS TO OCTOBER 3\ ON TREASURY BILLS HELD OUTSIDE
SYSTEM ACCOUNT $ 9 9 8 ,.2 5 0 .6 8
BARRETT.
/
D5
0 .1
t
Authority
D EC LA SSIFIED
01
Reproduced from the Unclassified / Declassified Holdings of the National Archives
r. L E G R A M
Ic-:.rd of' Governors
II
13
or m e
Fedors! B m n rw e System'
L^assd Wn>e Service ’
Received; at
$.€.
J;:f
VBQ4GC59WASH H 4 0 S T L 1 - 9 5 1
sov
VANFOSSEN
'j'AXsjr1
e 'ij4S
‘Zs i w
J,BET E L OCTOBER 5 0 > € A R N IN G S TO OCTOBER 31 ON TREASURY B I L L S H ELD BY
US OUTS IM ^ lS Y S T E M ACCOUNT 2 8 0 , 6 9 9 . 9 8
W 0LLO CHER*
F o r f il e s
M. B. Dcmiela
0501
Q , j
Authority j
D EC LA SSIFIED
Reproduced from the Unclassified I Declassified Holdings of the National Archives
C
L E G - R A M
Board o f Governors
of the
Federal Reserve System
Leased W ire S e rv ic e
846 OCf
31 PM 5 07
Received at Washington* '0. 0,
' r',!
WA34GC09^ASH I88 MPLS 31-352
fr ~
--
>. iw13 /r/
......................................
VAN FOSSEN
EARNING ON TREASURY BILLS HELD OUTS IBE SYSTEM ACCOUNT TO OCTOBER
31 $115*296.15
PETERSON.
TOTi T-1Z S
M, B.
501
. |D
Q
j
Authority
D EC LA SSIFIED
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T j3 L E . O- -H A M .
Board of.Go.v.ernors
. o f rn s
Fed era.?. B cw v e System
■ L eased W ’* •
Received at ^
. C,
r~
Ri;:c•d .x:? FT-?.-.:.";
■ "uOV
G 1348
WA12G89BBWASH J 1 2 8 KG JT 3 1 7
VANFOSSEN - BOARD
REURTEL 4 ESTIMATED EARNINGS TO OCTOBER 31 TflftBHMTU TREASURY B ILLS
1 ■
^ ■
OPCTIONX ACCT fcawur t $ 1 8 2 ,8 0 0
KOPPANG
— ------- f
FOB FILES
M. B. Daniels
501
Q . ID
j
Authority
D EC LA SSIFIED
Reproduced from the Unclassified / Declassified Holdings of the National Archives
•T E L E G E A f-
31 PM
Board 'of Governors
o f cue
Federal Reserve System
Leased W ire Serv
Received at Win-*
P. C,
!IjJ
uI O
WA06GG49WASH 1111 DLS 32T-252P
VANFOSSEN
THIS REFERS TO YOUR WIRE OF OCT. 30, EARNINGS TO
OCT. 31 ON TREASFRY
b T l LS
ACCOUNT $77,780.00
GILBERT.
HELD BY THIS BANK OUTSIDE SYSTEM
Kj
iwnrf ! 'i
: H ?.
D EC LA SSIFIED
Reproduced from the Unclassified / Declassified Holdings of the National Archives
£
xo
3
<
T 1LE& R A M
Board of Governors
oi
the
Federal Reserve, System
Leased Wire Service
Received at Washington, 0, C<
K E C 'D IN F I L E S ESC TiC l'i
NOV 4 1 2 4 6 Z / / 7
k3
WB12WASH B$7 BOS 51-1 O ^ A
‘^ 3
^
r
SMEAD
RETEl. OCTOBER 30,19^0 ESTIMATES EARN 1NGS THROUGH OCTOBER 51,1946
ON U 3 TREASURY BILLS HELD BY THIS BANK UNDER REPURCHASE OPTION
$239,233.32
PITMAN.
FOR FILES
M. B. Daniels
.\
D EC LA SSIFIED
Reproduced from the Unclassified / Declassified Holdings of the National Archives
o
in
£3
o
\;*
£
i~i
Xo
3
<
:y ? L E G E A M
Lo«rd of Governors
1946OCT 31
o i'tiie
Federal Reserve. System
Lease ci y* i^e i & t v ce
Recei’
/sd at
1'C I i f l i a s SSCIIOSj
NOV 61846
15 3
Z,
n'
WB35WASH B428 NY 31-505
VAN FOSSEN
BOARD
EARNINGS ON TREASURY BILLS HELD FEDERAL RESERVE BANK OF NEW YORK
OPTION ACCOUNT TO OCTOBER 31, $9,964,000
ROUSE.
D EC LA SSIFIED
Keproduced from the U nclassified I Declassified Holdings of the National Archives
o
O
o
\u
o
63
<
e
*a»A SOM It44
TELEGRAM
F E D E R A L R ESER V L BAN K O F PH ILAD ELPH IA
Xnraiageto October 31 om Treasury Bills held outside
System Account are #590,968*63
E. fi* Willlast
m
n
FOH FILES
M. B. Dsr.jp
Reproduced from the Unclassified I Declassified Holdings of the National Archives
D EC LA SSIFIED
o
o
o
WA
£
o
.g
3
<
E L E O R A M
Board'of Governors
o f th e
IM6 0CT 31 PM 4
Federal Reserve System
Leased. W ire S e rv ice ■
Received at Washington, 0, C,
NOV 6I34S
WA09WASH. C85
. r l > 3 3 3 L.
PH ILA OCT 3 1 -4 0 5 P
S'"
VAN FOSSEN
EARNINGS TO OCTOBER 31 ON TREASURY BILLS HELD OUTSIDE
y
SYSTEM ACCOUNT ARE
.
$ 5 9 0 ,9 6 8 .6 3
R R WILLIAMS.
‘r-ff
.........j
U!
Authority
1
,Q,
(D
5 Ot
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T 3 L E G E A M
Boa r d of ft ov e r n or s
*
oi' tiie
Federal Reserve System
Leaded
o X re
Received a4, ) . ■u J
0.
•) ; , V 'i UQV
WA43GC20WASH GX215
31 -4 1 3
a
VAN FOSSEN— BOARD
EARNINGS THROUGH OCTOBER 31 ON TREASURY BILLS HELD BY US OUTSIDE
SYSTEM ACCOUNT
$ 3 * 3 1 .9 ,8 1 4 .4 8
BLACK.
.
6 W 4 8 l-iY1
■i :■
j D SO
Q.
j
Authority
D EC LA SSIFIED
/
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEGRAM
BOARD OF GOVERNORS
OF TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V I C E
WASHINGTON
October 30, 1 9 W
Whittamo re - Boston
Sproul - lew Tork
Williams - Philadelphia
Sidney - Cleveland
Leaoh - Riohaond
MoLarin - Atlanta
Toung - Chioa gp
D&vi« - St. Louis
Peyton - Minneapolis
Lsedy - Kansas City
Gilbert - Dallas
Earhart - San Franoiseo
Please wire to raaoh Board not later than 11 AM EST
lovember 1 earnings to October 31 on Treasury bills held
by your Bank outside System Aooount*
Van Fossen
Reproduced from the Unclassified / Declassified Holdings of the National Archives
/fol,
DEC LA SSIFIED
jREC’D m RECORDS S
F e d e ra l R e se rve B ank
D
in
o
of
"/n
If 4-*•
a ^
N e w Yo r k
o
•35
<
October 2, 1946.
Dear Mr. Smead:
and
the
ber
ing
21,
We received your letter of October l y
have today sent to the Reserve Banks”a copy of
computation showing the adjustments made on Octo
1, 194^, pursuant to the plan adopted at the meet
of the Federal Open Market Committee on September
1944>
amended June 20, 1945.
Enclosed herewith is a copy of the letter
of transmittal, together with three copies of the
computation, also copy of telegram which was sent to
each of the Federal Reserve Banks on October 1, 1946.
Yours faith
lobert G. Rouse, Manager,
System Open Market Account,
Mr. E. L. Smead, Director,
Division of Bank Operations,
Board of Governors of the
Federal Reserve System,
Washington 25> D. C.
Enclosures (5 )
i r ...
Reproduced from the Unclassified / Declassified Holdings of the National Archives
M IS C . 140A lO O M -2 -4 3
fed er a l
R eser v e Bank
of
fcC’O M RECORDS SECTION
N ew Y ork
D EC LA SSIFIED
APR 2 41968
o
ID
o
o
■s
<
Oetotoar
1946*
t
Be&r Ir. Hilt-twaor# t
In &aeerdane* with our
of Ootobar
1, 1946, I aaeloa* herewith eesswtf tton of tha read*
nad# on* Oetofear 1,_
of the Fed# m l
in the participation*
Rest rye B&uts l^tMI^Systeis Open tterket
portfolio*
Tour s\fa ithfuliy ,
Robert
Aouse, Manager,
% $ t # m Open
Mr. 4* f* Whttteiaore, ?raald*nt»
federal ftaaerr* Baak of Boston,
Boston, M*s**ehiiaetta4
f&clo&mre
rrket .Account.
D EC LA SSIFIED
Reproduced from the Unclassified I Declassified Holdings of the National Archives
o
IT)
CD
VM
•E
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M iS C . 1 4 0 A i q O M -7 -4 5
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FED ER A L RESERVE BANK OF NEW YORK
m »u.
« * “ SEClM.)
APR 241968
am a m i , m b
»msrt\Ur3 U t M i» %#*<* i m m m t
«f jwrttatfttttoA* 1#
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t o r o w p a r t i e l i K t t M t o t o l w e | p « * w t o g o fc U g e t lo M , m
#
.in j w r
p m U ^ m U m im Jtmmrnf MXL*,
f
<ni
%■*?$*,I c$®iMUUldh0sl^flB- ill
aaOOs^ & a®%
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>.m m M- M k if#
ttoi« d T l c m ^ ib» sumO, «©*!*& -dr®
w rjdL
■MiiNMMiw*
m
s )%
a c ra n
I 9»^3t ,a a
m um ,
TOMiWlte
mmm,
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J6*215*000
J2k*77auooo
**”**”
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MUHIIX*
Hft^USSf
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asmhe*
m m m
mze.M£k
mstp&pipt
% m jm
SE5SMSS
a.^557*aaj
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9 ,2 5 4 *0 0 0
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6*0 9 ,0 0 0
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i9 »* »* a a o
s a m a
37,335,000
HO*#**
-Hf* giUlHI
t^ |.tfff^^ W
pm m §
tef^/mwhwe^jut
2M 9V*?
1M5M§
xamas
S2M8W#
fiif*.*m
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yaafgffaftf?
l5#03«,ao
s m
s s
4^W 8^300
S
enlpl^QtiL^ElO^' a w w s
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BTOUMI
yt9m ? & &
334#O0Q
9 V > 6 M » :'! aMBUBlL«|t 1QA*A91.000
g&£ f M M CIOOD
^a^vsoo
e& s r r m b
SSIBK
DECLASSIFIED
iAL
REALLOCATION OF GOVERNMENT SECURITIES IN SYSTEM OPEN MARKET ACCOUNT, OCTOBER 1 ,
( I n th o u s a n d s o f d o l l a r s )
New
York
I 9I+6 Authority
St*
Phila Cl oveRich
Atlanta Chicago
Louis
land
mond
delphia
I. Allocation of Interest-Bearing Securities
Kans as
City
3,116
1,639
2.891
2,351
5*096
1,3H
352
238
361
393
1 ,0 1 0
3 ,32 k
8,822
3 ,U68
1,877
3.252
2*7W+
6 ,1 0 6
117
91
537
167
67
259
35
132
6,979
1+,1+21
U.538
3,651
3,7U2
9*275
9,812
3,576
3*7U3
2,000
2,067
3,U10
3.6 6 9
3,oil+
3*01+9
6,914+
7,076
558
1,0 6 9
553
1+18
990
275
190
1U7
305
970
7.6 20 2
9.8399
6 .3 6 53
5*27^0
12.8823
1+.8555
2.8178
I+.8529
1+.3088
10 .0 7 15
1 ,51*6
1 ,3 7 3
3,2 0 9
708
1,129
1.0 6 8
2 ,2 3 9
Boston
55,131
3,659
13.U1U
i+,201
1+,812
3,528
2,913
7,5H
10,953
61+9
3,862
811
1,098
1*57
i+11
6 6 ,081+
i+,308
17,276
5 ,0 1 2
5,910
3.985
2,997
131
972
169
320
7 1 ,1 6 6
U,8l+5
U,976
17,970
18,91+2
5,Uoi
5,570
6 ,6 5 9
7U,163
E. Excess of WD3W over WCW
8,079
668
1,666
F. Average daily participations,
per cent, in interest-bearing
securities in System Aocount
since September 30* 19^-1
100.0
7 .09I46
2U -0 172
G. Estimated earnings for year above
expense and dividend requirements
($8 ,079*000 plus estimated earn
ings. October-Deoember on interestbearing securities in System Account
at 1 *010 h l % earnings rate, |2 3 ,78 l+*000)
allooated on basis of "F"
31*863
2 ,2 6 1
7 .6 5 3
2,1*28
3 ,1 3 5
2,028
1,6 8 0
1*,105
1.5l*7
698
H. "G" minus "E"
1.593
5.987
1.8 7 0
2 ,0 6 6
1,1*75
1.262
3.115
1.272
rtf
Bstima ;ed current expenses, I9 I46
CL.
S
<c
, ,
ft. Estima ;ed dividends, 19U6
C3
r£fc. Estima bed expenses and dividends
• Current earnings**
1. Estimated earnings, I9 I46,
other than on Government
securities
2. On interest-bearing securities
in System Aooount to Sept* 30
3* Total*
23,781+
Q . 1 Q5QI
Minne
apolis
System
ce
o
o
^
Dal las
San
Franc it
I* Allooation of interest-bearing
securities in System Aooount
on basis of "H"
9,338,299
625,1*59 2 ,350,673
73U.217
8 1 1 ,1 7 2
579,128 1*95.1*98 1 .2 2 3 .01+1 1+99 .H25
277.982
14*3.279
1*19.328 879.097
J. Present allocations
9,338,299
61*9.1*18 2.370.176
715.196
835.91*3
5 7 0 .10 1 1*8 5 .7 1 6 1,21+7.891* 1*7 9 .5 3 6
2 6 7.8 3 2
I+I42.561
381.1*01 892.525
-23.959
+19 .0 2 1
-2l*.771
+1 0 ,15 0
+718
+37.927 -13.1*28
K* Change in allocations
* Exclusive of earnings on Treasury bills.
-19.503
<9,0ZJ
+9.782
-2U.853
+19.889
Reproduced from the Unclassified / Declassified Holdings of the National Archives
.or
car ■■-■
U J
co 00
REALLOCATION OF GOVERNMENT SECURITIES IN SYSTEM OPEN MARKET ACCOUNT, OCTOBER 1 ,
New
York
San
Franciscc
1,5 0 2
2,5?<7
2 ,297
5,569
3 ,11*9
1,1451
924
1 ,6 5 1
1.36')
3,7b6
80
3.929
355
127
216
91
1.2 3 6
844
725
-2 1 1
782
451
720
537
}U7
-57
-19
-16
+211
-17
-10
-16
-19
-c
1,605
825
709
765
441
704
616
539
340,156 1,369,847 1,671*.703
860,829
739.791
790 ,223
4 6 0 ,15 2
734,574
553,525
553.722
304,416
1 1 5 ,9^3
137,265
390,159
3.782
12,503
4,062
5,21*5
3.393
2,811
6,867
M. Earnings to September 30 on
bills 'in System Account
24,498
2,0?8
425
2,018
3,313
2,328
2,006
N. Earnings to December 31 on bills
in option accounts (est.)
19,557
285
12,045
682
290
221
9.251
1.419
333
1.362
1,61*2
-32
-7
-30
1,367
326
1.332
Q. Adjusted pro rata share of esrnings
from bills in System Account
October-December
9.251
pa 2e 2
2,588
L. Distribution of estimated earnings
on bills for year on basis of "F" 53,306
—
Q . j D5 01
Kansas
Citv
Chicago
Boston
P. Adjustments due to excesses of
"M* plus "NH over
St.
Authority
MinrieaooliB
Phila
Rich
Cleve
Atlanta
delphia
mond
land
II* Allocation of Treasury Bills
System
• Pro rata share of earnings from
bills in System Account OctoberDecember (WL* minus nK n and WNW)
1?46
Dh
1 las
R. Allocation of System Account
bills in proportion to % n
9.652,760 l J M '7,236
S • Portion that Banks cannot take
due to low reserve ratio*
2,^38,063
T. Distribution of nS" to Banks
with highest reserve ratios
2 .535,063
U. Final allocation of Treasury
bi113 in System Account
("R" minus "S" plus "T")
9,6^2.760
7:&.U3t
336,721
771,734 1,35^,371
860 ,b29
739,791 1,457,128
493,307
346,154
597,509
463,366 1 ,306 ,1 m
v . Present allocations
9 .652.760
779,03k
373,016
799,979 1,340,629
888,856
776,60 8 1 ,2 3 5 ,4 12
5 16 ,0 15
3 6 1,1 9 2
60 3,0 13
501,627 i.477,17>
♦9,402
■*•15,705
-28,245
-2c ,027
-3 6 ,8 17
-22,206
-15.03^
-5.704
W* Change in allocations
6 1 8 ,1 1 3
656,800
45,563
1,457.126
III*
X. Participation in System
Account (WIW plus "U")
Y* Change in participation
+13,742
+2 2 1 ,7 1 6
-14,557
-3,796
1 .0 52 ,3>2
-3 6 ,0 6 1
-91,0 65
Total allocation of System Account Securities
18.991.059 1,413.995 2,739,394 1,505,951 2 ,170 ,543 1,439,957 1 ,235,289 2 ,680 ,169
* Eased on note and deposit liability and reserve figures
as of close of business September 30. 1946*
315,332
-9,224
-6,0 29
-19,000
-2 7,0 3 5
+196,663
9 9 3 ,2 3 2
-2 ,3 1 9
6 2 4 ,13 6 1,040,568
-4,688
-h ,joC
862,694 2,^65,211
“534
—1j4,u ^3
Reproduced from the Unclassified I Declassified Holdings of the National Archives
CONFIDENTIAL
Reproduced from the Unclassified I Declassified Holdings of the National Archives
|Hi.'
a
lELEGRAM
!
IM FIL^S SECTION
OCT 2-1946 1
BOARD OF GOVERNORS
__________
OF TH E
•
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V I C E
0
. ID 50/
WASHINGTON
Authority
~
j
October 1, 19U6
Rouse - Hew York
This will confirm, under# tan ding in telephone conversation that
adjustments of participations in System Account will be as follows,
in thousands of dollars*
Interest-bearing
securities
Treasury
bills
Boston
-25,959
*9#U02
-14,557
Hew York
-19,503
+15,705
-3.798
Philadelphia
♦19 #021
-28,21*5
-9 .221+
Cleveland
-aU.7?i
♦18 ,71*2
“6.0 2 9
Richmond
+9 ,0 2 7
-28,027
-19,000
Atlanta
49,782
-36,817
-27.0 35
Chicago
-2U.853
♦221,716
+196,863
St* Louis
♦19,889
-22,208
"<2 .3 19
Minneapolis
♦10 ,15 0
-15,038
-4.888
Kansas City
♦718
-5 ,70k
-4.986
Olalias
♦37,927
-38,1461
-53k
San Francisco
-13,1*28
-91.065
-104.493
Sinead
Total
m— "------—
.
.
D EC LA SSIFIED
Reproduced from the Unclassified / Declassified Holdings of the National Archives
o
in
o
o
o
£3
)►—
RWI'D IN FILES SECTION
OCT 2 -1946
October 1, I9k£>
Mr. Robert G. Ecus*, Vie* President,
Federal Eeservs Bank of lew York,
lew York 7 , Jf«w York.
Bear Mr. Bouse:
There is enclosed a statement showing adjust
ments to he made is allocations of Government secu rities
in the System Open Market Aooount as of October 1, 191*6,
prepared la accordance with the form la adopted by the
System Open Market Committee on September 21, 19Wi. aa
■ M h i Jan. SO, 19t»5*
Very tru ly yours.
S. L* Ss»ad, D irector,
Division of 'lank Operations.
Rnclosure
D EC LA SSIFIED
ooyyipmiAL m
m w m f i o K o f ooYwaaart m m r n n m n stsfai o m m m m m kocovm* octowm i, i?l*6
(In tliemtftiids of dollars)
!
g
A* S i t i n g
oxponsos, I9J46
B. Estiaatod
'1946
0* Istiaatod oxpoasos and dividonds
I
urront oarningst*
I* Bstiaatod Mmlogit 191*6 ,
othor thaa on Qerammmk
soourltios
2. Oa intorost-bearing aoeuritlos
ia ijritii Aooount to Sopi. JO
J. total*
55.131
10,953^
66,084
ll
SystfK | Bostoa
------------ f t i
- .,........1pt ■■1 .. 1
i
IiS ©*
u—
i
PhiU- jCl«ro- , RiohSt.
Atlanta Ohio*go
dolphi* 1 land
I/mi*
mat
X, Allocation of Intoroat-BMrlnc (oourltloi
Authority
Q ! iPSOf
moM-1
apoll* | city
i
D*11m
| 8*n
jfranolsoo
3.659
13,414
4,201
4,612
3.528
2,913
7,511
3.116
1.639
2.891
2.351
5.096
649
3.862
611
1.098
457
lai
1,311
352
2?8
361
393
1,010
17.276 '
5,012"
5.910
3.985
3.324
8.822^
3.468'
1.877 ^
2.744"
6,106 -
4.308^
3.252
2.997 '
131
972
169
320
117
91
537
167
67
259
35
132
71.1667
74,163
4.845
4.976
17.970
18.942
5.401
5.570
6.659
3 .^ 1
5.742
9.275
9,812
3.576
3.743
2.000
2.067
3.410
6,979
4.421
4.538
3.669
3,014
3.049
6,944
7.076
8.079>
668
1.666
558
1.069
553
418
990
275
190
417
305
970
7-0946
24.0172
7.6202
9.8399
6.3653 5.2740
12.8823
4.8555
2.8178
4.8529
4*3088
10.0715
2.261
7.653
2.428
3.135
2,028
1,680
4,105
1.547
898
1.546
1.373
3.209
23.784 / 1.593
5.967
1.870
2,066
1.475
1.262
3.115
1.272
708
1.129
1,068
2,259
579.128 495.498 1.223.041
499.425
277.988 443.279
419.328
879.097
1. Sxooss of *03* o u r *o»
f. ATorago dally parti*ipation§#
por oont, in Intorost-boaring
soourltios ia Systoa Aooount
•inoo Soptoabor 30, 19Ul
/
100.0
9* Estimated earning* for yoar abovo
oxponso and dividend roquirosttnts
(18,079,000 pint estiaatod t a m
ings October-Doooabor on Intorestbearing soourltios in System Aooount
at 1.0101*7* oarningt rato, |23,78U#000)
allocated ©a basis of *F*
31#863 '
H. *0* Minus *§•
I. Allooation of lnt#rost~boaring
iN U fitdts In System Aoooua t
OB b*(l« of *H*
J. P r o m t *lloo*tioi»
I. eiwi(« in «llo«*tlon»
/
9.538,299
625,459 2.350.673
734,217
9,338.29^ 649,418 2.370.176 715.196
—
/ -23.959
-19.503
+19.021
811.172
835.943 570.101 485.716 1,21*7.894 479.536 267.832 442.561 381.401 892.525
-24.771
<9.067
*9.782
_______________________________ _________________________________________________________-v. .>' *
• SxoIusI to of oaralags da Troasury b ills*
V * **"
-24.853
+19.889
+10.150
+718
+37.927
-13,428
WULLOGATZOI OF (30VEFWKMT SICERIfX S S U ST»T*M 0F1I KASKXf ACQOtfif, QOTOBSK lf l?l*6
Sag* 2
lathottsaada of dollars)
CD
Boston
Systoi*
-3 —
I
low
lark.
II*
SLC'JDittri button of
oorniag*
^
3.782
g
on b ills for yoar mi basis of *f* 5$$3®&
9 kP lanjings to Soptonbor 39 *a
§
bljls la Ijn tta Aooount
2
Sl*.!^
i
OX****
m u irtBM*
9.251
6,867
2.588
1.502
2.587
2,297
5.369
2,078
U25
2,018
3.313
2.328
2,006
3.H«9
1.1*51
92t*
w mm+-
1.651
1.369
3.786
285
12,01*5
682
290
221
SO
9.939
355
127
216
91
1.236
1.U19
333
1,362
1.61(2
* 1,1,
7t5
-211
782
1*51
720
837
3U7
-32
-7
-30
-37
-19
-16
*211
-17
-10
-16
-19
-8
1.387
326
1,332
1.605
825
?09
mm
765
1,1,1
701*
818
339
Ji|0.158 3.389,8U7 1.67l*,703 860,82? 739.791
mm
798,223 1*60,152 73l».57l* 853.525
353.722
2 ,558.06? 658,800
f . Distribution of *S* to Banks
witb highsst rasorvo ratios
2.538.083
&• final allooablsa of Troasury
bills in Sytto* Aooount
(•*• visas •«» plus *f»)
9.652.760
▼. Prosont allooations
9 .652.760 779.03U
618.113
f * Chaago in partloipation
788,1*36
<9,1*02
113.998
137.265 390,159
1.1*57.128
1.032.392
597.309
1*63,366 1 ,386 ,111*
373.016 799.979 1.31*0.629 888,856 776.608 1,235.1*12 516,015 361.192 603.013
501.827 14*77.179
388.721
771.73U 1.359.371
*15,705 >28,21*5
Ill*
860.829
♦18,71*2 -28,027
739.791 1.1*57.128 1*93.807 3W.15U
-36,817
*221,716
/ I ^1)j
-3.798
-22,208 -15,038
-5.701*
•38 ,1«6 i
-9 1.065
total allooatlon of flystom Aooount Boourittos
18,991.059 Ua3.895 2.739.391*1.505.951 2.170,^*31^9.9571^35,289 2^«J.l69
a Basoi on noto and doposlt liab ility and rsssrvs figure*
as of oloso of buolnoss Sopto aibor 30, 19h6«
301*^06
315.332
1*8.563
.
X* Partloipation in Systoa
Aooount (*I* plus *S*j
Sail
Fraaolsoo
2,811
• • Portion that Bonks oaanot talcs
duo to low rosorvo ratio*
7
t*iu»
3.393
/
9.652,7601M7.256
--
Xlnnt-
5,2ii5
1* Allooatlon of Syatoa Aooount
b ills in proportion to *1?
W. Ohango in allooatlon a
it*
1*,062
P. Adjust»*at* duo to oxoo*sos of
*Mn plus nNn over ”LW
Q. Adjustod pro rata sfcaro of oaraings
fro* bills in iystos Aooount
Ootobor- Doooafeor
9.251
>1m ga
12,803
19.557 7
• Fro rata shars of oarning* fro*
bill* la Sy*to* Aooount OotoborDsooabor (•!*• aians *1* sad •»*)
Atlanta
Allooatlon of troasury Bills
"T T H frfian lo Dooonbor |1 on bills
la option aooount* (ost.)
nxth-
-9.2S2*
-6,029
-19,000
-27.035
*196,863
993.232 621*.136 U»l*0,588
-2,319
-i*,888
«4*,986
DECLASSIFIED
Authority
0 . i t) 5 0 1
882,691* 2,265,211
-53k
-101*,1*93
.,,-v
Reproduced from the Unclassified I Declassified Holdings of the National Archives
:
a o f Governors
Ot til8
^ !5 G 0 6 m S H LI 35 SF 3 0 - 4 0 4
BOARD
JE im T E L J^ E .
EARN ( MGS ON TREASURY B ILLS TO SEPTEMBER 3 0
$ 9 1 4 ,2 5 9 .4 2
SLADE.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
;cj’D 1!$'FILES S
:
yjf;
A- '
.
OCT 3 - 1 9 4 6
‘
'P.befd'of GoYer-no- •
'
o f 't a e
----
Federal Besm'£-Systei
Leased Wire
II /£
WA47GT5WASH H24 STL 1-946
VANFOSSEN
EARNINGS TW^BORyj M M
MM BILLS HELD BY US OUTSIDE SYSTEM ACCOUNT
FOR NINE WONTHS ENDING SEPTEMBER 30 APPROXIMATELY $254,800.
'
HITT.
i
Reproduced from the Unclassified I Declassified Holdings of the National Archives
r L E a E A I
'
Boa.^ of Governors
■of the
Federal Reserve System
Ledsed W ire S e rv ic e •
Received at ^ j ,■ ~ 1 < G.
O
C
T3 -1946
WA16WASH FT ATLA 1-838A
VANFOSSEN
RFHRTFt
.
SFPTFMBFR
30. FARMINGS
THROUGH
SEPTEMBER 30 ON TREASURY
BILLS OUTS IDE SYSTEM ACCOUNT $53,835.56.
MCCRAVEY.
F O B F IL E S
M, B, -Dcaiels'
Reproduced from the Unclassified I Declassified Holdings of the National Archives
rr". 77*
^
•-Juj*j‘TuTj*i O*
v
’
RfiG-«D IH FILES S E C | M
OCT 3 -1946 "
~~ -
io c rd o f Governor
of.t&e. /
* ~i
r
1 TTv
„
r
i.aera..
' Received at
WA3tW ASH RH 1 9
■->
:
■f- M
fO 1$
1-
VAN FOSSEN
RETEL RR E A R N IN G S TO SEPTEMBER 3 0 ON TREASURY B I L L S H E L 1 B Y US
OUTS ID E OF SYSTEM ACCOUNT $ 1 6 3 , 7 4 6 . 4 4
NOWLAN.
fo r
FILES
M. fi.Daniels
r--------------------------------------------------------------------------------------------------------
--- ------------
Reproduced from the Unclassified I Declassified Holdings of the National Archives
REG'D I f f FILES SECTION
T S L E G R A M\ •
...oard of Governors.
OCT 3 -1948
. of fhe
Federal Reserve System
.L eased W ire Ser v:c«
.
Received at Washington,-1). C,
WA22WASH B 3 2 2 BOS 5 0 - 2 0 5
SMEAD
RETSk SEP 30 1 9 4 6 ESTIMATED EARN INGS THROUGH SEP
3 0 ,1 9 4 6 M US fREAS B ILLS HELD BY THIS BANK
UNDER REPURCHASE OPTION $ 2 1 7 j 2 9 5 .6 8
PITMAN.
FOB FILES
;M. B. Daniels
<
Reproduced from the Unclassified / Declassified Holdings of the National Archives
REG-*D IM FILES SECTION
Oct 3 -1948
• T I L I G E
Board of Sov&rnQof the
Federal Reserve System
Leased Wire Seme©'
..Receivedat Washington, D.-C.
'tikt
W6SEPJ0 PM 5
04
WA72WASH B527 NY 30-452
VAN FOSSEN B 0 O &
BOARD
EARNINGS TO SEPTEMBER 30 ON TREASURY BILLS HELD BY FEDERAL
RESERVE BANK OF NEW YORK OPTION ACCOUNT $8,946,000
ALLEN.
F O B F IL E S
■!&.2. Dssiisia
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
F E D E R A L R ES E R V ^ BANK O F PH ILAD ELPH IA
P R IV A T E
v
WIRE SYSTEM
O U TG O IN G
C O N F IR M A T IO N
OCT :-
V IA
September 30, 19^6
Tan Foseen
Washington
Earnings to September 30 on Tre&euxy B i l l s held outside
System Account are $5^3,150^1
B. R. W illiam s
Reproduced from the Unclassified / Declassified Holdings of the National Archives
' ^ L E
V JOj . Jfb .it t A
K AM W .
Bo. d o f G o v e r n o r s
of the '
Federal Reserve System
, . Leased. Wire Service
Received at Washington, P,0.
WB21 WASH CSS
r i r > T * '- 1 9 4 G
^
U C ly
■i' ^
,
S') lf'3
’
......................... *7“...
l"
P H iL A SEP 3 0 - 3 5 3 P
VAN FOSSEN
EA R N IN G S TO SEPTEMBER 3 0 ON TREASURY B IL L S H ELD O U T S ID E
SYSTEM ACCOUNT ARE
$ 5 * 3 , 1 5 0 .6 1
■ R R W IL L IA M S .
FOR FILES
M, B. Daniels
>
r------------- --------------
-------------- -------------------------------------------------------------- — -------- -
Reproduced from the Unclassified / Declassified Holdings of the National Archives
^ ^ L E G E A M
Bo-,* d o f Governors
of the
’ -<ECD I N f t lS S ascxiow_
I
O
C
T3 -1946 '
Federal Reserve System
f '- Leased'Wire Service
, Received at Washington; 0, C,
s
WA76G28WASH D216 CLEVE 30-449
VANFOSSEN
REPLY WIRE EARNINGS ON TREASURY BILLS HELD BY OUR BANK OUTSIDE SYSTEM
ACCOUNT FROM JAN 1. 1946 TO SEPT 30 1946 INCLUSIVE ARE $250,181 .29
smith.
i0
Reproduced from the Unclassified I Declassified Holdings of the National Archives
section
G -R A K
Bos. i 'of Governors
of the
Federal Reserve System
Leased Wire Service
Received at Washington,. D.'G,
®«S£P 30 PM 4
WA58GC38WASH GX228 CGO 30-322
BOARD
VAN FOSSEN
EARNINGS ON TREASURY BILLS HELD BY US OUTSIDE SYSTEM ACCOUNT CLOSE
OF BUSSINESS SEPTEMBER 30 ........ $3,039,172.38
BLACK.
. FOR
files
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
jL^ard of Governors
O
C
T3-1946
of the
Federal Reserve System ■
Leased ’W i re S e rv ice
■ deceived at Washington.
d<
G.
SEPjO PM 4 27
WB26GC34WASH 166 MPLS 30-318
VAN FOSSEN
EARNINGS TO SEPTEMBER 30 ON TREASURY BILLSHELD OUTSIDE OF
SYSTEM
ACCOUNT $107,049.
' /
' -
S
PETERSON*
FOB FILES
M. B. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
R L I * D I H :F IL
!
Federal Reserve System ^
Leased W ire S e rv ic e
firiS-
$fcP ^ O P lir ^ r
Received at WishiRgton? 0, C,
WA57G82B1BKASH J172 KC 30-317
VANPOSSEN
REPLYING WIRE EARNINGS TO SEPTEMBER 30 TREASURY BILLS HELD BY THIS
BANK $153,553.77
Reproduced from the Unclassified I Declassified Holdings of the National Archives
:
'
■;
:
'
T S 'I jE G E
Boar
a.' m
>f Governors
of
Federal Reserve
Leased Wire Service
Received at Washington* 0,0,
WA42G40WA8H M 97 3 0 - 2 4 6 P
1
VANFOSSEN
t H I S REFERS TO YOUR W IRE OF S E P . jW B < JO»__EARNINGS TO
S O N K X S E P . 3 0 ON TREASURY B IL L S H E L ! B Y T H IS BANK O U T S ID E SYSTEM
ACCOUNT $ 6 6 , 8 7 1 . 0 0
G IL B E R T .
FOR HUES
M. B. Dcmieh
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEGRAM
BOARD OF GOVERNORS
OF TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V I C E
WASHINGTON
September 30* 19M>
W h it t e in o r e - B o s t o n
S p r o u l - Haw Y o r k
miliarns - Philadelphia
Sidney - Cleveland
L « a o h - R ich m o n d
M o L a r in - A t l a n t a
Young - Chicago
Davis - St. Louis
Peyton - Minneapolis
Leedy - Kansas City
Gilbert - -Pallas
Earhart - San franoisoo
Please wire to raaoh Board not later than 10 AM ES? Ootober 1
earnings to September 30 on Treasury bills held by your Bonk
outside System Aooount.
Van Fossen
Board «f Ooftratri
*• L« H i » d
As an ladlootion of tho alto of tho operations handled
by the Federal Reserve Banks, the Beard mey be Interested In
knowing that on Monday, Ally 1, the Federal Beserve Bank of lev
York paid #1,000*000,000 to ether Federal Beserve Banks through
the Xnterdistrlot Settlement Fund*
Bov Tork received 1700,000,000
tram othor Federal Reserve Bonks through the Fund on the some date
with the result that the net loss to the Nov Tork Bank In the dally
Settlement was $300 ,000 ,000 .
Mr* Moore, in charge of our Intordistrict Settlement Fund,
tells me that this 11,000,000,000 payment through the Intordistriot
Settlement Fund is tho lor gee t over reoorded for a single Federal
Reserve Bank on any one day*
This large payment was due to several
faotors, among vhioh mere the faet the Bov Tork Bank was closed ea
Saturday! the Oovernment had a Treasury Bote maturity of 14,910,000,000,
of which
$1,994*000,000 was
paid offs and there was a quarterly real*
location of tho System's Open Market Aooount, whieh involved payments *
of $147*000,000 by the ’tew Tork Bank and of $351*000,000 by other
Beserve Banks to Bew Tork*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
y~\ j
/viM
Fed
er al
of
Reser
ve
Ba
nk
arC’D IN FILES SECTION
J U L 111248
N e w Yo r k
■
■ -.....
July 2 , 194-6.
Dear M r . Smead:
We received your letter o f kJulx.JU...~I94--6V
and have today sent to the Reserve Banks a copy of
the computation showing the adjustments made on July
1, 1946, pursuant to the plan adopted at the meeting
of the Federal Open Market Committee on September 2 1 ,
1 9 4 4 * a-s amended June 2 0 , 1 9 4 5 *
Enclosed herewith is a copy of the letter
of transmittal, together with three copies of the
computation, also copy of telegram which was sent to
each of the Federal Reserve Banks on July 1, 1946.
Robert G. &ouse, Manager,
System Open Market Account.
Mr. E. L. Smead, director,
Division of Bank Operations,
Board of Governors of the
Federal Reserve System,
Washington 25, D. C.
(Enclosures 5)
VICTORY
BUY
U N IT E D
STA TES
WAR
BONDS
AND
STAMPS
Reproduced from the Unclassified I Declassified Holdings of the National Archives
M IS C . 14 0 A 1O O M -2 -4 3
F e d e ra l R e s e rv e b a n k o f n e w
Y
o r k
.............. .._
itU0fD v; "
_
i
J U L 1 x ,;-ry
July 2, 194&»
Dear Mr. Williams:
In accordance with our telegram of July 1,
1946, I enclose herewith computation of the readjust
ments made on July 1 , ^
p participations' of
the Federal Reserwr'TOtrfte in the £
►tern Open Market
portfolio,
1 our s
thfully,
Robert
House, Manager,
System Open Market Account
.Mr* Alfred E. lilli&ms, President,
federal Reserve Isank of Philadelphia,
Philadelphia, Pennsylvania *
Enclosure
/
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Misc. 140 -B 50 M - 2-45
Ju ly
.>
m&mm.
t u m m
n
I s \mlng
1946*
mn u L o x m tmatt..
urn.
ItadjVfttiMmt or
i f
In 3ev«rnie.*&t
is FysU® *«efnu»t
today mtimr th# p lu t fo r r o a ilo o a tlo ti oi fievornifemt
tlit FodorU. Q p m X«rk*t Coaalttoo fcpteebtr £L9 X*M4t •*
C O ttp U tfttlO ttll * h a * l f i £
*tdo plot* by
J m t 20f Xt45#
ft4 jU S tffi« & tS eutd« i f i |W irU .«i|M ktlO JI* o f
1
Tfc#
w r * X ^ * i * n » S *m « w ill
mmiAm
fe# a*iX«<f to a i l i * £ * n r »
Mt J t i l j 2*
Thsoo
U U O B . luU oM # •> CJCRMS.S
of
IHCHEI&I
#
la y m r fwrtleip*tlo& in lftt«rrft-fe«*ri!sg Mlgstion#, m
$
ill fwor parUclpniiofi i* Tr*
I
in fmxr t o t * l SM&rtiotjws.
isiug. * not
of
pj&CRI^BK
IltC W EA Sl
of
0ECftlA$*
t h l * t f U r » 9 d B iho
Account*
eodo<S w lr#/»li& «ia
to u r b*c< w ill r * « « iv «
lied *ntrl«» to “>• u d t t®d«y.
sue
TREiSORT
8ILLT
lUITTSWiK,
80SS&»
IffiAttaS,
FfcIL*£EL?KIA
isc
0X2811,
aymuKJK^
BmMjkm
TOTAL
*C*S±S* #62,2*7,600 CSCRJUJ8 iM,393yW
[000 CICKXACI »»,511,000 EICRJUSt 29,299,000
>5,*66,000 IICMUJUt 59,577,000 GfCfUUSK 6,SS9,000
LfACS,
16.205.000 IRCREAei
2,371,000 CSCSJUSE 13,93*,000
lle U iX i,
16.786.000 JKROSS 15,694,000 IHCRttSS 32,6*0,000
totm,
U , 615,000
UcaSAfiS ?J8,*U,000 ttCMUUB 2S3,05%000
m u 9
m et
m w $,
nCS£A£X
1,564,000 DICRiUf!! 16,567,000 mCHUtt U , 999,000
m m 9
GSGMt&SE
£,8*1,000 0BCKK*SI 17,094,000 BSCRE/Sit 19,979,900
d&BStrf,
OSCREaSI
u,*20,000 tS&MMM 1 1 ,656,000 OtCHfeCK 27,076,000
CUgfOC
a mumu&oo escftuat
■ 0081
11,700,00) nCRJU£S
4,1*7,000 X*C«i8* 19,S*7,000
j9,*7s,ooo ncmu«x 59,460,000 n c m
15 ,582,000
X
liimated dividends, 1946
climated expenses and dividends
New
York
Philadelphia
Cleve]a nd
Rich
mond
Atlanta
3,607
13,213
4.024
4,688
3.369
10 ,9 13
6(46
3.857
807
1,093
64.554
4.255
17.075
4.831
System
Boston
53.«4i
Page 1
Chicago
St.
Louis
Minneapolis
Kansas
Clty..
Dallas
San
Francisco
2,808
7.403
2,988
1,562
2,828
2,183
4,963
454
406
1.30 5
350
237
359
390
1.007
5.781
3,823
3.214
8,708
3,538
1,799
3,187
2,573
5,970
Dv urrent earnings*:
1. Estimated earnings, 1946,
other than on Government
securities
2. On interest-bearing securities
in Sys tea Account to June 30
3. Total*
2,863
121
1,0 46
143
294
69
75
521
147
53
267
24
103
148,11*5
51,008
3.245
3.366
1 2 ,1 1 6
13,162
3.638
3.781
4,606
4,900
3 ,0 17
3,086
2.454
2.529
6,195
6,716
2,392
2,539
1.339
1.392
2,320
2,587
2,076
2,100
4.747
4.850
E. Excess of "C" orer "D 3"
13.546
889
3.913
1.050
881
737
685
1,992
799
407
600
473
1,12 0
2 ,662 ,1+99
17^,735
7 6 9 ,110
206,380
173,163
144,859 134,638
391,533
157,045
79,997
117,931
92,969
220,139
100.0
7 .1 1 0 5
23.9831
7.6218
9.9281
5.2589
12.8279
4.3308
2.8136
4.8628
4.3206
10.0720
H. Allocation of remainder of
interest-bearing securities
($9 ,3 16 ,860,000 less
$2,662^99,000) on basis of "G"
507,182
660,652
423.876 349,946
853,615
3 2 1 .459
187,227
323.588
287,508
670,227
I. Total allooations
713.562
833,815
568,735 484,584 1,245.148
478.504
267,224
441,519
380,477
890,366
J. Present allooations
704.350
899,281
584,940 467,798 1.200,533
466,804
265,656
444,360
394,897
930.244
♦9,212
-65,466
-16,20 5 +16 ,78 6
+11,70 0
♦1,568
-2,841
-14^420
-39.878
F. Allocation required (on basis
of 1.009245^ earnings rate) to
produce earnings July-December
equal to "E"
G. Average daily participations,
per cent, in interest-bearing
securities in System Account
since June 30* 1941
K. Change in allooations
6.3699
+44,615
D EC LA SSIFIED
* Exclusive of samings on Treasury bills.
Authority £
Q . in s o i
Reproduced from the Unclassified / Declassified Holdings of the National Archives
current expenses, 1946
REALLOCATION OF GOVERNMENT SECURITIES IN SYSTEM OPEN MARKET ACCOUNT, JULY 1, 191+6
(In thousands of dollars)
REALLOCATION OF GOVERNMENT SECURITIES IN SYSTEM OPEN MARKET ACCOUNT, JULY 1 ,
CONFIDENTIAL
1946
System
Boston
riew
York
'"FKilVdelphia
II*
Cleveland
kicRmo nd
Atlanta
"SFF.
Chicago
Louis
Ulnneapolis
Kansas
City
Dallas
San
Francisc
Allocation of Treasury Bills
L. Distribution of estimated earnings
on bills for year on basis of MG" 53,031
3 #771
12,718
4.042
5 .2 6 5
3,378
2,789
6,803
2 .56 2
1,492
2,579
2,291
5.34
M. Earnings to June 30 on bills in
System Account
15.518
1.343
247
1,299
2,062
1,494
1 ,2 7 6
1 .9 1 8
91*0
603
1,067
871
2.391
N* Earnings to December 31 on bills
in option accounts (est.)
2 0 ,10 5
294
12,356
698
353
250
82
4 .0 5 7
295
154
26 l
119
l,20i
0. Pro rata share of earnings from
bills in System Account JulyDecember ("Lw minus "M* and "N^)
17*408
2 .151+
155
2,01*5
2.850
I.65 I*
1 ,1*31
828
1,327
755
1.251
1,301
1.73'
P. Allocation of System Account
bills in proportion to "O'1
9 .082.655
1 ,1 1 3 ,1*16
70,1*36
1 ,066,980 1,1)86,989
852,51*1
71*6,625
1*32,009
692,363
3834*87
6 5 2 ,7 10
678,798
906,28]
Q* Portion that Banks cannot take
due to low reserve ratio*
1 .3854*70
555,022
ll*l* ,625
1*8,268
9 6 ,1*02
192 ,56 0
R. Distribution of "Q" to Banks
with highest reserve ratios
1,5854*70
S. Final allocation of Treasury
bills in System Account
("P" minus "Q" plus "R")
9.082.635
758,394
77.61*9
753.505 1 ,2 5 2 .0 7 1
8 5 2 .5U1
746.625 1.296.791
51*7,740
535.219
556.308
486,258 1 4*19.756
T. Present allooations
9 .082.635
820,641
309.563
791.814 1.193.1*94
850,270
730,751 1.058,51+7
559,595
551.786
5734*06
498.891* 1,364,296
-62,247
-231.714
+8.147
-1 6 ,5 6 7
-17,098
-1 2 ,6 5 6
1 4 *66,8 65 2 ,0 8 5 ,8 8 6 14 *2 1 ,2 7 6 V 5 1 , 209 2,541,959 1.026,244
60244*3
997.827
8 6 6 ,7 15 2 ,3 10 ,12 2
-14 ,9 9 9
-19.939
-27.076
U* Change in allocations
3 13 ,6 7 7
864.782
7.213
-38.511
/
III*
V. Participation in System
Account ("I" plus "S")
W. Change in participation
18.399.1*95
14*06,288 2 4*42,681
-34.391
*Based on note and deposit liability and reserve figures
as of close of business June
1946*
234,918
-204.641
+58.577
+2.271
+15.894
5154*75
+25844*4
+554*60
Total allooation of System Account Securities
-29.299
-6,889
-13.931*
+32.680
+283.059
+19.847
+15,582
•;
DEC LA SSIFIED
Authority
lT. 0
,
1D5 0 1
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Page 2
(In thousands of dollars)
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEGRAM
BOARD OF GOVERNORS
OF TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V I C E
WASHINGTON
July I. I9te>
Rouse - Hew fork
This will confirm understanding in telephone conversation that
adjustments of participations in System Aooount will he as follows,
in thousands of dollarst
Interest-bearing
securities
Treasury
bill*
?o»*l
Boston
♦27.856
-62.21*7
-34,391
lew fork
+27.073
•231,71b
-20l*,6i4
+9,212
-38,511
-29,299
Cleveland
-65,1i66
♦58.577
-6,889
Rieh»ond
- 16.205
♦2.271
-13.931*
Atlanta
♦16.786
♦15.89U
♦32,680
Chieago
+W+.615
St. Louis
♦11,700
♦8,11*7
♦19 .81*7
Ktnneapolii
♦1.568
-16.567
-H*,999
Kansas City
-2,8l*i
-17,098
-19.939
Dallas
-1U.1*20
- 12,656
-27,076
San Francisoo
-39.878
♦55,1*60
♦15,588
Philadelphia
♦238 M
♦283.059
8»ead
. F O B F IL E S
F
M . 1 , X*oai«J#
£
Reproduced from the Unclassified I Declassified Holdings of the National Archives
R
I
s
0 IH FILES SECTION i
JU L
J L J J .&
July 1, 19^6
Mr. Robert 0. Rouse, Vioe President,
Federal Reserve Bank of Mew Tork,
Hew Tork 7, lew Tork.
Dear Mr. Rouset
There is enolosed a statement showing adjustments
to be made in allooations of Government securities in the
System Open Market Account as of July 1, I9I4&, prepared in
ao00rdance witn the forwla adopted by the System Open Market
Committee on September 21, I9I4U, as amended June 20, I9U5 *
Very truly yours.
I.
L* Smead, Director,
Division of Bank Operations.
Enclosure
2194&,^
i
riallooatiok
Syataaa
or
m w mo mt mcmxtus is
ftxsfKf opsi market Aecouif,
(2a thouaanda of dolXara)
Boatoa
law
fork
ffell*- Claraknd
M|Ut
Siek>
O0&4
Atlanta
m,t I, 1946
Bag* I
Ohieagp
St.
Louia
apolia
lanaaa
citsr
Dallaa
Saa
Fraaaiac
I.► Allooatlon of Xntaraat<*&aariag Saouritiaa
f
currant axpanaaa* 19 4 6
53.61*1
3.607
13.218
4,024
4,688
3.36?
2,808
7.403
2.988
1.562
2328
afx83
4.963
diTidanda, 19^ 6
10,913
6t«s
5.85?
807
1.0 93
454
4o6
1.305
350
237
3S9
390
1,007
axpa&aaa and diYidanda
64,554
4,255
17,075
4331
5,78X
3.823
3.214
3,708
3.358
1.79 9
3.187
a .573
5.970
2*863
121
1.046
143
294
69
75
521
147
53
267
24
X03
4a, 145
5.245
3.366
12,116
15.162
5.638
3.781
4*6o6
51,008
4^00
3.017
3.086
2.454
2.529
6,716
6,195
2.392
2.539
1.339
1.392
2,520
2.076
2,587
2,100
4.747
4.85©
13.546
889
3.915
1,050
881
737
685
1.992
799
407
600
473
1,120
2,66a,4?9
174.735
769.110
206,330 173.165 144.859 134,638
591.535
157.045
79.997
117,951
92,969
220,139
100.0
7.1105
25*9831
6.3699 5.2589
12.8279
4.8308
2*8X36
4.8628
4.3206
10,0720
507.182 660,652 423376 3*49.946
853.615
321,459
187,227
323.588
287.508
670,227
478.504 267,224 Wtl.519
380,477
890,366
Jurrant aarninga*i
X* Satiaatad aaraiaga* 1946,
otbar tiian oa Govarzwaat
aacuritiaa
2. Os intaraat~baaring aacuritiaa
in Sj* tarn Aacouat to Juna 30
5 . Total*
S. ixoaaa of *C* ov*r *B 3 *
F. Alloaation raquirad (oa baaia
of 1.009245^ aaraiaga rata) to
produca aaraiaga July-Daoambar
aqual to •*•
0* Avaraga daily partioipationa,
far ©ant, in intaraat-baaring
aacuritiaa in Syataa Aocouat
aiooa Juna JO, i$l*I
7.6218
9.9281
8 * Allooation of raaaiadar of
latare at">baaring aaouritiaa
*2,662,499,000) oa b»«i» of *9*
X* Total alloaatioaa
Freaant allooatioaa
6,654,361 473.159 1,595.922
9,316,860 <547394 2, 365.032 713.562 833315
568,735 484,584 1,245.148
9,316360
584,940 467,798 1.200,533 466,304 265,656 U»4.36o 394397
K« Chaaga la allooatioaa
—
620,038 2.337.959
♦27.856
♦27.075
704,350
899,231
♦9,212 *65.466 - 16,205 ♦16,786
♦44.615
♦ll,?oo
♦1.568
•2,841
930,244
/
-
-
-3*378
D EC LA SSIFIED
* Exeluaira of aaraiaga oa Traaaury Mila.
< r
Authority i f , Q . 11) 5 0 /
Reproduced from the Unclassified I Declassified Holdings of the National Archives
oowrmmtiM,
bialldcatiow or
GGKFIDmiAL
aomuviaarT snm m nm » srsfgu
opih market ac c o o it t , jvlt i , 191*6
Systea
Boston
Ks»
Tork
•TTL.W-"
aoad
dolphin
II*
Atlanta
Chicago
~ w r m Klsfii*
apolis
Louis
Kansas
City
Dallas
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Pngs 2
(In thousands of <k>llars)
San
Fraaoi^eo
Allooation of Treasury Bills
1** Distribution of estimated earnings
an bills for jr««r on basis of *0*
53.031
5 #771
12,718
4.042
5,265
3,378
2,789
6,SOJ
2.562
1 A92
2 #579
2,291
X* Barnings to Juno JO on bills la
System Account
15.518
1.343
247
1,299
2 ,0 6 2
1,494
1,276
1,918
940
603
1.067
871
2.398
II* framings to Osoeaber 31 on bills
in option acoounts (est.)
20.105
294
12.336
355
250
82
4,057
295
154
261
119
1,206
17,408
2.134
135
2,850
1.634
1.431
826
1.327
735
1,251
1,5 0 1
1,737
P. Allooation of $yste« Aooount
bills in proportion to *0*
9,082,655
1,113.416
70.436 1 ,066,980 1,1)86,98? 852.541
746,685
658,710 678.798
906,281
Q. Portion that Banks cannot tales
ins to low rosorro ratio*
1.385.470
355.022
96,402 192.560
—
R« Distribution of "Q* to Banks
with highest rosorro ratios
1.385.470
S. Pinal allooation of Troasury
bills in Systsat Account
(«?• minus *Q* pins *!*)
9.082.635
758.394
77.649
f* Present allocations
9.082.635
820,641
309.363
—
-62,247
-231.714
m
s M
0. Pro rata share of earnings fro*
bills in Systsan Aooount July-
U# Change in al locations
2.045
,677
W. Change in participation
—
144.683
864.782
753.303 1.252,071
852.541 746,625 1.296.791
48.268
—
547.740
—
—
“34.391
-204.641
—
335.219 556,308
486,238 1*419.756
498,894 1.364,296
791.314 1.193.494 850.270
730.731 1,058.347
539.593 351.786 573,406
-38.511
+15.394 +238,444
+8.147 - 16,567 - 17,098
♦58,577
+2,271
- 12,656
513,4
+55.460
total allooation of Systea Account Soouritlos
18,399,495 1,406,288 2,41*2,631 1,1*66,365 2,085,8861^21,276 V31.209 2.541,939 W26.244 602,443 997,827
*Based o n noto and deposit liability sad rosorro figuros
as of oloso of business Juno 3 0 *
~
7,213
III,
T. Participation in System
Account (*I* plus *S*)
234 .
1*38.009 698.363 383,487
-29.299
-6.889
-13.934 +32.680 +283.059
+19,847 -14.999 -19.939
866,715 2,310,122
-27.076
+15.582
a/
D EC LA SSIFIED
Authority 'j r ,
o'.
ID50I
Reproduced from the Unclassified I Declassified Holdings of the National Archives
OffiC'D IN FILES SECTXOft
T E L E G-R A M
JUL' 21846 ^ 1
B o a rd o f G o v e rn o rs
of the
Federal Reserve System
Leased Wire Service
WA17WASH C 8
V A ^
9
■yTy y
tr
i
_ RMsiyed atWashington, D,C.
PHILA JU L 1-S?BA
SMEAD
e a R N IN G S TO J U N E 3 0 ON TREASURY B IL L S HELD
O U T S ID E SYSTEM
ACCOUNT ARE 3 6 8 , 0 6 9 . 7 8
R R W IL L IA M S .
#
V
\
Reproduced from the Unclassified / Declassified Holdings of the National Archives
T E L E O-R A M
->oard of Governors
ft&C’ D IN F It £ S SECTION
of the
Federal Reserve System
mm
Leased Wire Service
.l
Received at Washington; D. C.
V j*
WA21GCOJWASH
9
14
STL 1 9 0 4
RET E L JUNE 2 8 EA RNING S TO JUNE. 3 0 ON TREASURY B IL L S HELD O U T S (B E
SYSTEM ACCOUNT 1 7 6 , 5 7 8 . 1 1
GILMORE.
f o b fil e s
M. B- Doaiels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T E L
E
Q- R
A M
of Gov^CfiO^o
or the
Federal Reserve System
Leased. Wire Servx«
Received at Washington, 0,.C.
REC’D IN FILES SECTION
JUL 21946 /
ins1l 3 3 , 5 i 3
ift
WA32G41WASH*4«tX H MPLS 1
m
9
SHEA®
EARNINGS ON TREASURY BILLS HELD OUTS IJ>E 'OF SYSTEM ACCOUNT TO JUNE 3 0
T0TAL $ 7 0 , 3 0 0 . 4 1 .
PETERSON'
FOR FILES
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
bJ
1 e g R a m
d Of GovernorB~ ,
or the
Federal Reserve System
RJ f a®
ed Wlr®Service
Received at Washington, 0 C.
,
J9 KC 1 -
SMEAD
REPLY IM S W IR E 2 8 EA RNING S T 0 JUN 3 0 ON TSRY B IL L S H E U 3 \B Y T H IS
© T 8 IM
SYSTEM ACCOUNT $ 9 1 , 9 4 1 . 0 . 5
Vy
fo b f ij .e S
jfl, g. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEG-RAM
HffiC'D IH FILES SECTTQB
Board ‘
of Governors
of the
,
L
Federal Reserve System
Leased Wire Serylce
V 21946/ ^
Received at Washington, 0. C.
WA12WASH f Z ATLANTA 1. 85®A
SMEAD
REURTEL JUNE 2 8 EARN ING S THROUGH JUNE 3® ON TREASURY B IL L S OUTS ID E
SYSTEM ACCOUNT ^$40,660.66
,
<
MCLARIN•
fo r f il e s
M. B. Do&iels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T E L B O - R A M
Board of Governors
of the
Federal Reserve System
Leased. Wire Service
Received at Washington, D. C.
WA26WA3H RH 2 - 2 1
RETEL EARI
SYSTEM ACCOUNT
RICH
RBC'D IN FILES SECTION
JUL.' 2 IS
s""0iitiZa
>
f
JUNE 5 0 ON TREASURY B IL L S
' : :
->
,9 9 5 .8 0 *
NOWLAN.
BY t f i M K
US 0 U T 3 U &
Reproduced from the Unclassified I Declassified Holdings of the National Archives
REC'D IN FXLES SECTION
JUL.' 2 1946 /
T E L E G R A M
B o a rd o f1 G o v e r n o r s ,
of the
Federal Reserve System
IM&vWl I AM 9
58
Leased Wire Service
Received at Washington, I), C.
1-
EA R N IN G S FROM JANUARY 1 TO JU N E 3 ° »
BANK O U T S M E S Y STEM
IN C L U S IV E ON TREASURY B IL L S
1,393.94'
S M IT H .
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEG-RAM
B o a rd o f G o y e rn o rs
o f the
RfiC'D IN FILES SECTION
jul-
urn
Federal Reserve System
j
Leased Wire Service
Received at Washington, D, C,
WA14G22WASH
L.S6
SF 29-1237
•/
%
REOBTEL JUME 2 8 « E A R M 1 N G S QN TREASURY B IL L S TO JUNE 3 0
$5^1,780*03
*
. -
\
'■
V’
'
SLADE*
FOB FILES
M. Bi Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
.A ■M
J3 JL
RECD IN FILES SECTION
k ^ r d o f Oo:7 3?r_r.jo/V
JUL’ 21946 ^
or t-Jae
Federal Reserve System
Leased Wire Service
, Received at,Washington, D. C.
m
m
i
w a 7 8 s ? 4 B B WASH G X 1 0 4 COO 2 9 - 1 1 2
SMIAB
♦
EARKTUGS ON TREASURY B IL L S HELD BY US O U T S IB E SYSTEM ACCOUNT
THROUGH JUNE 5 0 , 1 9 4 6 ARE
■ # / $ 2 ,1 9 3 ,6 8 1 .5 2
BLACK.
FOH FltES
M. B. Daniel*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T E L E G R A M
-fc/Oard of Governors
of the
Federal Reserve System
Leased Wire Service
Received at Washington, D. C,
IA10GG®4WASM
SHEA!
SLS
>
T H IS REFERS T 6 YOUR W IR E OF JUNE 2 8 EA R N IN G S T O JUNE 3 0
TREASURY S IL L S H E L 1 BY T H IS BANK OUTS ID E SYSTEM ACCOUNT
O'
$ 4 9 , 0 4 8 .0 0
G IL B E R T .
FOB FDLES
B. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
/
^ D LE ftR A M
Bc^.rd o f Governors
or tiie
REC'D IH FILES SECTION
Federal Reserve System
Leased. Wire Service
Received at Washington, 0, C.
WA09VSASH B 5 6 2 NY 2 8 - 5 1 0
SMEAD
BOARD 0 g GOVERNORS OF TH E FEDERAL RESERVE SYSTEM
EA R N IN G S TO JUNE 5 0 ON TREASURY B IL L S MELS BY FEDERAL RESERVE BANK
r
N E * YORK O P T I O r ACCOUNT $ 5 , 7 5 5 , 2 0 7 . 5 2 .
M IL L E R .
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T E L E G R A M
B(
d-- o f Governor a
Federal Beserve System
MBC’D in files SECTION
JUL' 21946 m u
Leased Wire Service
Received at Washington. D, C,
W A95BB WASH B491 B 0 S 28-350P
SMEAD
R IT E L JUNE 28,1946 E S T IM A T E D EA R N IN G S THROUGH JUNE 30,1946 ON
0 8 TREASURY B IL L S HELD BY T H IS BANK UNDER REPURCHASE O P T IO N '
PITMAN.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
Ri.j’D iM ritss a
JUN 2 81946
BOARD OF GOVERNORS
OF TH E
FEDERAL RESERVE SYSTEM?
L E A S E D W IR E S E R V I C E
WASHINGTON
June
Whittenore - Boston
Sproul - lew York
Williams - Philadelphia
Gidney - Cleveland
Leaoh - Richmond
MoLarin - Atlanta
28# 19^6
Young - Chioago
Davis - St. Louis
Peyton - Minneapolis
Leedy - Kansas City
Gilbert - Dallas
Clerk - San Franoisoo
Please wire, to reaoh Board not later than 10t00 AM BST July 1,
earnings to June 30 on Treasury Mils held by your Bank outside
also
System Aooount* It will be appreoiated/if item* BULK, TRIM and
Y0BB of For* P. R« 3U ** of June 29 sre telegraphed so as to reaeh
Board by ItOO PM.
Smead
Reproduced from the Unclassified I Declassified Holdings of the National Archives
April 9# 19M>
Mr* Smaad
Messrs* Van Fossen and Daniels
Referring to Mr . Ikni«lsfs memorandum of March 21 proposing
a revision of a portion of paragraph 2(b) of the Procedure for Allooa~
tlon of Securities held in System and Option Accounts# we have con
cluded that the entire paragraph should he revised, and a proposed
revision is attached.
The present paragraph states that upon request to the manager
of the System account any Bank which does not have Its pro rata share
of Treasury hills held in the System account, based on the calculations
in the most recent reallocation, may restore its participation on any
Wednesday whenever its reserve ratio permits* As a matter of fact, such
restorations of participations *re made automatically in the weekly
adjustment of Treasury bills* The proposed revised paragraph makes
this clear and clarifies the paragraph in certain other respects, in
addition to providing for omissions of the month*end a<3;'ustn»nt, which
was the subject of the March 21 memorandum referred to.
Attachment.
T
^
b
,
F
I
L
E
C
O
P
Y
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Suggested Revision of Paragraph 2(b) of Procedure for
Allooation of Seourltles Held in System and Option Accounts
Adjustments In participation In Treasury bills held
in the System aooount will be made eaoh Wednesday and on the
last day of eaoh Month, unless the day is a reallocation date
or within one business day of a reeallocation date, for the
purposes of raising the resorve ratio of any Bank to the
agreed-upon percentage and of restoring to any Bank,to the
extent that its reserve ratio permits, its pro rata share of
treasury bills held In the System aooount based on the «all
ocations in the most reeent reallocation* Suoh adjustments
will be based on closing figures of the previous day with
allowance for any repurchases to be made on the day of the
adjustment* If at any other time a Bank’s reserve ratio
nears the legal minimum or falls below the agreed-upon per
centage, the Bank may sell to the Bank or Banks having the
highest reserve ratio or ratios a participation or participa
tions In Treasury bills held in its option account for a
period of days to expire on the following Wednesday or
month end, whichever is earlier, provided that 1fce adjust
ment shall be made in the System aooount in the event that
a Bank does not hold sufficient bills in its option account
and provided also that, If necessary, the adjustment will
be made in participations in interest-bearing securities*
All such adjustments, including sales and repurchases of
participations in Treasury bills held in option aocounts,
will be handled through the manager of the System Open
Market Account*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
RECV IN RECORDS SECTTOM
F e d e ra l R e s e rve B a n k
C? W
& *u SeC
of
N
ew
Y
ork
APR 241968
3 3
3 , 3 ¥ 3
April 2, 19AS
Dear Mr. Smead:
We received your letter of April 1, 194-6,^ and have today sent to
the Reserve Banks a copy of the computation showing the adjustments made
on April 1, 194-6, pursuant to the plan adopted at the meeting of the Federal
Open Market Committee on September 21, 1944, as amended June 20, 1945*
Enclosed herewith is a copy of the letter oftransmittal, together
with three copies of the computation, also copy of telegram which was sent
to each of the Federal Reserve Banks on April 1, 194&*
lours faithfully,
lobert G. Rouse, Manager,
System Open Market Account.
Mr. E, L. Smead, Director,
Division of Bank Operations,
Board of Governors of the
Federal Reserve System,
Washington 25, P. C.
Enclosures
(5)
%
%
Reproduced from the Unclassified I Declassified Holdings of the National Archives
140-3 5 0 M - 2 - 4 5
REC’O IN RECORDS SECTION
APR 241968
t w m m m v & im n m
fm * td
APRIL 1, m 6
m m a j z a a m . m m c u i m .a>
Raadj«*tMNit of participations in &ovar»«#«i aacuritiaa hald In Fyat**
it baing a&da to4ay asdar tha plan for ratlloc&tion of
by
kec&mt
aaaaritlaa aaoptad
tha F«<5aral Opaii tarifcat CmuiittM Saptanbar * 1 , 1 9 4 4 , * * k*a»da4 J t w « 2 0 * 1 9 4 5 #
Tha computation*
B tttu t w il l
b a sittil# d i t o
tha *<Jjtt*t*ant« *§<!a la participations' of tba ^ f t n l *atarea
e ll
R iw m
t*tioB« ity&o*ta
B a & fci o a A p r i l
XXCEEaSB
laiaraaobligation*,
•ft 0$CtM8X ®f ^
iscsmsE
ie y°ttr i^ar'ielg^om
«« DXCAXAfX ®f I
ia jrour participation in Jfraaaury b ill# , Dating a aat
ttCIIIASX
tMUUM
Ijjj your
«
tot^l
partici^d^R la tha Syataa Account* Your
bank *111 raeaiira this *ftar»oon tha usual
wiaa dwving tha d e t a i l e d a & t r i a a t o
be aiada today*
m um m
lunaxBi-'Bum
M sm m
I M l
&**kiasx % u ,$ u ,(m
lUttttORt
BO^tOX
rXLUJJiS
MlkkMLmt*
G ians
OXflUIHr
m m u$M
utcs
u<xmmu
ncftXAcm
2,331,000
McUEH
XAASfi
xona
n^ M Q
#29,422,000
XXCftXAXX 114,69^,000
10,166,000
ixcmxx
11,1561,000
iMcmm i 15,693,000
IXCmsX
33,29**000
xxcftxusx
6,£5^,000
IMCtUt t
9,1S3,00D
tm m tm j' 14,037,000
ISCPU5K
17,106,000
XXC-ftSASX
3,769,000
catGAwX
m cw u m
3,025,000
jDticuuax 99,405,000
DECEIVE
96,330*000
ZJiAVXS
SU WtlB
uctm $%
7,439,000
gscKXAtt
DKfiltl^X 17,794,000
nnox
MJJUXUPOU®
XaCIUUXX
13,410,000
urn
%iMSA$ c m
nm m m
9*079,000
zictusz
*,565,000
&&6MMX
513,000
ttm m m
13,304,000
xaex&ftx
7,742,000
rascwuax
6,06^,000
VACfiteZl
23,746,000
ixcxxa &x
f2,6ao,ooo
aiLsxtf
c lx xx
sax
mwcxaco
800$ *
17,605,000
ixcxxaxx
2$,239,0ft-
r>xexx*sx 11,060,.000 XVCftXAXX
2,350,000
XXCftX*SX 116,426,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
ft
C.
I 4 0 A 10 0 M -7 -4 5
F
R eser v e Bank
ed eral
of
or
rk
N ezw
w Yo
k
••RECORDS
APR 241968
j
A p ril 2, 1% ST
Stem Mr* M Xltm smst
2a
» w ith <mr ta&*gr*A a f kpwil 1 # 1 9 # , I m ala# ®
herewith cm p v b stim &f tto
pag’t ic ii& t ia a f t o f
«n April i# 194&* ia tfe#
I
ftm a & m
B m k a im
th e S p a U m B p m
M m k& t
portfolio,
XottTft f<&Ufcllly,
►bsorfc 0*
ltoigter#
rri<»& 0p0u Market
Reproduced from the unclassified / Declassified Holdings of the National Archives
REC _ IN FILES SECTION
m
■» m
1 4-
A p ril 1* 2$l|6
Mr*' Robert 9* Rouae, Tioe Preaident,
Federal R^aerv# Bank of few York,
N«w York 7, »#w York.
Dear Mr. Rouaei
T h » re l i e n e l o a e d ft ab a te m e n t ahowing a d ju a t * e n % a
to ba made in allooationa of Gowrmwnt securities in tha
3yat<m Opaa 'Hark#'!
a« of April 1# 19*46# pre$»ar«d
in aooordnnoa with tho fonaila adopted by tha Syatam Open
H&rfcet 0©mittaa on September
I9W** M' antmded $4a» 20,
19«*5l»ry traly youre.
B« I** 3 » e a d , 8 l r # f * a r #
DiTiaion o f lank $fara%l®Ea*
Bnoleaur*
"*
aBALLOCATIO* Of OOTEHWEUT SECTS IT IE* IK STSftX OPS* KAKKBT ACCOD1T, APSIL 1. 1946
(la thonaanda of dollar*)
IttjggMt
A HW
Rieh«
Chloago
it*
Lout*
Mlnno**
Kansas
apolls
Pity
2.665
6,798
8.830
1.498
8,789
2.164
5.006
458
kat
1.289
346
837
356
377
995
5.803
3.759
3.067
8,087
3.176
1.789
3.085
8.541
6.001
lii6
834
73
iJp
484
153
59
878
84
164
2,1*10
8.644
1.588
1,661
1.313
1.455
3.858
3.688
1,848
1.401
689
748
1.834
1.506
l .lll
1.135
8.473
8.637
3.159
8.098
1.618
4,405
1.775
981
1.179
1.406
3.364
Fhlk*
Clew
1«b 4
SyttwB
Boston
tuft
delphia
A# Sstinated ourrent exponses# 19ii6
m
m
3.209
12,53*
3.798
4,717
3.307
B. Estimated dividends, 191(6
m
m
806
1.086
C. Sstlvated expenses and dividends
mask
4.598
©
arrant earnlngset
1* Estimated awning a, 1946# other
than on (Joveraaent securities
2* On intern at-baoring securities
la System Aeoount to Ifareh |I
3* Total*
1* Sxeees of •§• «*«r *0 J*
F* Allocation required (on basis of
1.G22809J* earninge rate) to
produce earninge Apr1l~De«enber
equal to *§•
9* Average dally participations*
per cent* la lnt«re*t~bear ing
saourltias la tystosi Aoootmt
sinoe Mar oh 31. *94l
646
'
16.40*
'
i* m
28,160 '' 1,867
7*470
1.916
8,062
39.916
«*933
8,536
8.068
^
Atlanta
4*401*194 268*359 1**59*213 3*9.090 1*09.936 878*858 809,185
1 0 0 .0
E* Allooatlon of rcaalnder of Interest**
hoaring securities ($9*320#256*000
less $4,401#194#000) oa basts
Of •a*
4#919* 062
? .1 5 4 |
23*9794
7.631#
9*9548
3 51 .9 2 4 I#179*562 375.581
704.611
1)89.683 318.908 858,798
12.7939
4.8105
187.308 204.903
8.6145
4.8713
San
Franolsoo
188.453 436.538
4*3818 10.01*5
J* Present allocations
9,380.256 "634# 807 2.355*883 7 0 .6 1 6
668,014
♦995
♦17.605
•14# 524
•17*108
<89.340 836.631
138,447 839.688 818,598 1494* 0ij6
899.619 585.154 467.977 1.800.966 466.968 865.749 44t«*585 395.045 930.584
9 *320*256 620#283 2*33a*?75
»<■»
6.3610 5*8610
571.686 830.337
Dallas
^
1« Total allooations
K. Change in allooations
Hg» I
AD* 488,014 1.197.941 459.589 258.339 453.603 408,849 906.838
♦8.331 -14.057
*3.085
♦7.459
♦13.410
-9.076
-13.804 ♦83.746
*>r •
• Exclusive of earnings on Treasury bills.
p
...
DECLASSIFIED
Authority l r .0 * I ft S O f
cowimmuh
R&ALLOCATIOM
IfS Distribution of estimated
earnings on bills for yaar
on basis of *<I"
Me Baraings to tfcroh 51 on bllla
in tystom Account
I* tamings to December 51 m
bills in option accounts
V .#
P*
Q«
R*
a*
f.
u#
Boatoa
Fhlla- i Cleva- 1 Hloh- j ^l»nfca
d»lnhia 1 land
I mond 1
II* Allocation of troaaury Bills
Hew
York
Chio&go j St*
Louis
Minna*
i &p£ill*
i Kanaaa 1 DaU&a j San
Jbraneiaoo
1 .City..J
/
3 ,59 5
12,050
3,836
5.005
3,197
2.61,4
6,429
621
44
584
979
711
603
958
20,265 7
338
11,914
Pro rata sharo of earnings
from Mils in System Aooount
April<»Deeember (*L* minus
"M" and *»•)
28,706 x 8,636
98
/
Allooation of $yst«m Aooount
bills In proportion to "CP
32,U6
7,926,i+56 920,204
Portion that tanks oaxmot taka
/
dus to lew reserve ratio*
694.365 172,086
Distribution of *Q* to tanks
/
with highest reserve ration
694,365
Pinal allooation of Treasury
/
bills in System Aooount
("P" minus *Q* plus *R*}
7,926,456 7lt8.ua
32,116
Prosont allocations
7,926,456' 718,696
86.04U
Change in allocation*
/ *89,422 -53,928
733
377
261
122
4,341
2,519
3,647
2,22 5
1,919
879,360 1,273,134 776,727
669,905
50,252
7,283 /
III#
7* Participation in 8yatam
Aooount ("I* p%us *§*)
W* Ofcango la participation
Pag# 2
149,776
i,Uli*
2.448
2,178
5,047
2814
508
407
1,148
409
159
213
157
1,239
1 ,1 3 0
1,5 6 6
971
1,727
1,608
2,666
394,473
546,676
338,967
608,880 561,338
930,676
9 1,79 0
30,368
127.306
2,417
84,735
98,304
326,916
367,449
789,584 1,145,828
718,718 1.130,135
♦10,866
♦15,693
776,727
769,875
•*6,852
669.905
652.099
♦17.806
761,9 22
8 6 1,327
-99,405
454.886
480,119
-25,233
308,599
319,659
-U,o6o
578,145 463,034 1,257,598
569.580 455.292 1,164,912
*92,680
*8,565 ♦7.742
total Allooation of 0yst*ia Aooount Soouritioa
17,2146,7121368,14012,370*891 1,1*5U,195 2,045.U471*361,861 1,157,882 1,963,888 9*1.1
/ ♦14,098 -71*056
♦11,861
*53,298
<*9,185
♦ 3,769
«96,580 **X7»79k
57h,3&
*2,350
,670 858,079
2 ,18 8 ,176
*513 -6,062
4116,2486
* lasol W n o t o and deposit liability and reserve figures aa of oloaa of business Mar eh 3 1 , 19^6*
DECLASSIFIED
Authority j
Q , m S (? )
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Systwi
OF OOTSRa«£IJT S E C ® IT I E 8 IN
OPES MARKET ACCOUW, APRIL 1 , 1 9 &
( I n th o u s a n d s o f d o l l a r s )
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEGRAM
B O A R D OF G O V E R N O R S
OF TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V I C E
WASHINGTON
April 1# 19^6•
Rouse - lew York
this will confirm understanding in telephone conversation that
adjustments of parti oipations in System Aooount will be as follows #
in thousands of dollarst
Xnterest~bearlng
securities
treasury
MIX.
Total
Boston
•li^^U
■*89,1»22
♦14,898
lew York
•17,108
-53,928
-71,036
*995
♦10,866
♦11,861
Cleveland
♦17,60$
♦15,693
•63.298
Riohaoxid
♦2,331
•*6,858
♦9,183
Atlanta
~li*,037
♦17,806
♦5.769
Chicago
♦3,025
-99,1+05
-96,380
St* Louis
♦7.439
-85,233
-17,794
Minneapolis
♦13,1*10
-11,0 6 0
♦2,350
Kansas City
-9.078
■*8 ,56 5
-513
Dallas
-13,80t*
*T.71*2
-6,062
San Franoiseo
+83,7146
♦92,680
♦116,1*26
Philadelphia
Stasad*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
C
228A
20M
TELEGRAM
11 44
FEDERAL RESERVL
BANK OF PHILADELPHIA
PRIV A TE W IR E SY S T E M
C O N F IR M A T IO N
REC'D IN
. vix,
,
O U T GOING VIA
April 1, 1946
Tangossen
Washington
RSORTEL March 29 ) Earnings to Maroh 51 on
treasury
Bills held outside System Account are $205,006.32
i
R* H. WILLIAMS
<i
F O B F IL E S
M . B, Daniels
r >
Reproduced from the Unclassified I Declassified Holdings of the National Archives
K A »
APR I
AM 10 34
C'D T> ?Tj;rs-: 5. .’-.Y-J
...
'
., S. *
.
¥ o
S’*'-.;-
"Le..^ 1 '
•...’
T*imetMij i),U'
Eeoavsd at
APR % K f e 1
^ 3 3 , 3 ^ 3 .
WA19WASH RH 1 1 - 2 0 RICH l-IO Jejg fX 1 0 2 0
VAN FOSSEN
EARNINGS TO MARCH 31.JON TREASURY BILLS HELD BY OUR BANK OUTSIDE
SUSTEM ACCOUNT $ 4 7 , 2 6 4 . 5 4
NOWLAN.
FOB FOES
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T E L S Q B A H
L/// / V '&
AooTt :
' '
-lie
K 'A'"S'"' - "
WB06GC04WASH IT MPLS 1-847
BOAl® - VAN FOSSEN
EARNINGS
I TREASURY BILLS HELD BY US OUTSIDE SYSTEM ACCOUNT $36,523.6
PETERSON .
■
[
FOR FILES
IS. B* Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T E L E C3 R A M
oard of G o rem o rs
ot riie
‘©derai R eservfe S y s te m
L e a se d W ire S e r v ic e ■
toeived at.WasMngta% D.0*
WA12WASH pi ATLA 1-9 06 A
VANfOSSEN
REURTELJiilARCti—29-^EARNINGS THROUGH MARCH 31 ON TREASURY BILLS OUTSIDE
SYSTEM ACCOUNT $ 2 1 , 3 0 6 . 3 9 .
MCLARIN.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
[i W 'JO 'In fIL£3VS12C7I01
i^ f Apr i
x h S.sC'1' ¥ ?
, .t r-i.^vf-rccmK^Board-o;OI
-d ers
’
*."><- - l i t f T
^
'■*>
w
: S d B ■iJ ■'/-'
^ tV s
ct
*i
'
h
)
WA17G09WASH D 5 CLEV 1 -9 1 8 .
VAN FOSSEN
EARNTOS OH TREASURY BILLS HELD BY OUR BANK OUTSIDE SYSTEM
ACCOUNT FOR PERIOD FROM JANUARY 1 , 1 9 4 6 TO MARCH 3 1 , 1 9 4 6
l-NCLUS IVE IS $101 , 1 1 7 . 3 7
SMITH.
FOR FILES
M. Ba Daniels
,? ; -
Reproduced from the Unclassified I Declassified Holdings of the National Archives
m_9_35
L ‘r Tr mBsS'SECTIOI'
T1LB6RA.M
Board'of
APR I
. a t a le
Fed eral K sserT e yycits:
■
S 3 3 , 3 >Kb
L ea se d ' W ire
' Eeaeived at WashiiiS'^^?
r/^
____ _
r .
o
WA15WASH C2
PHILA APR 1 -92 4 A
VANPOSSEN
REURTEL MARCH *29j EARNINGS TO MARCH 31 ON TREASURY BILLS HELD
OUTSIDE SYSTEM ACCOUNT ARE $ 2 0 5 , 0 0 6 . 3 2 .
V
R R WILLiAMS.
JOB fUES
\
It *■»<D‘i0'’
\
Reproduced from the Unclassified / Declassified Holdings of the National Archives
3|C’.D: II FI1BS SUCfpioj
TELEGBAM
Bofud ot C-on e n n o r s
PR
■
0 .1
iSysteB:
hct /ice
>
1946
> Ml 9
/
WA10WASH B2 NY 1 - 9 J U
I
VANFOSSEN
f
REURTEL
MARCH 2 9 J EARNINGS ON TREASURY BILLS FRB OF NY OPTION '
- __________ -r - -n____ _ 1■
ACCOUNT TO MARCH 31 $ 2 , 6 3 9 , 0 0 0
MILLER.
2
13 46 /
Reproduced from the Unclassified I Declassified Holdings of the National Archives
WA7QWASH B2£6 BOS 30-1248
SMEAD
BOARD
%
RETEL MARCH 29^1946 ESTIMATED EARNINGS THROUGH MARCH 31,1946
ON U S TREASURY BILLS HELD BY THIS BANK UNDER REPURCHASE
OPTION $72,547.48
I
LATHAM.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
*AAitoO C».jviiuji
Z
T
1^0/
§ o v ^ ° rs
M
A
R30 P
M
WA90G36WASH GX132 CGO 30-115
VAN FOSSEN, BOARD
X
REURTEL MARCH 2 9 .
EARNINGS TO MARCH 31
INCLUSIVE ON TREASURY
BILLS HELD BY OUR BANK OUTSIDE SYSTEM ACCOUNT ARE $1,365,700.
BLACK.
FOB FILES
M. B. Daniels
fJ
Reproduced from the Unclassified I Declassified Holdings of the National Archives
H®CTS ra m ss SBOTIOI
>r y. . •>
oi^OTerii0rB
^ e r a i R e ^
Leased W ire
C*3
'
eeaiTsd at Washiagton, D,0,
WA74GC78WASH H90 STL 3 0 - 1 2 2 7
VANfOSSEN
EARNINGS ON TREASURY BILLS HELD BY Till fflCK THIS BANK OUTSIDE SYSTEM
ACCOUNT FOR YEAR 1946 THROUGH MARCH 31 $ 9 4 , 1 1 4 . 3 6
i
BUB •
1
'p
)
/ i
-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
r" ’S L i S G R A M
Bcr ^d of Governors
of me
F ed eral B eserv© S y stem
■
Leased Wire Service
Eoceived at Washington, D.O.
WA00g ^2BI)WASH j T l 7 KC 3 0 - 1 4 3
VANFOSSEN
ESTIMATED EARNINGS TO MARCH 31 TREASURY BILLS HELD BY
THIS BANK $ 3 9 , 7 0 0
KOPPANG
I RBC ' f IX PU S?
Reproduced from the Unclassified / Declassified Holdings of the National Archives
—
*«oj
|h b c I'p’r* Fiif* «“arlos
" 9QEe
, ^ S t o a , a a
cr
WA07GC27WASH M106 D|_s 30-207p
M
A
R30 P
M3 24
VAN FOSSEN
THIS flit K x ; ; REFERS TO YOUR TELEGRAM OF MARCH 2 9 ,j ESTIMATED EARNINGS TO
MARCH 21 ON TREASURY BILLS BELD BY THIS BANK OUTSIDE SYSTEM
ACCOUNT $ 2 4 , 6 4 5 .
GILBERT.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
J.M. M
'JL'03 3xivTluM
, ft?-
T 'E L J f iG R A M
^ vard of Governors
oi't&e
F e d e r a l B e s e r v e S y s te m
Leased Wire Service
Received at Washington, D.O,
3
r
At
3
BOARD
REURTEL 29T hJEARN INGS ON TREASURY BILLS TO MAR.31 $ 2 7 7 , 6 7 4 . 3 7
,
"\J
§46W
A
R30 P
W3
WA20GC.44WASH-L.38 Sf 3 0 - 1 2 4 0
SLADE.
3
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEGRAM
B O A R D OF G O V E R N O R S
OF TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V I C E
WASHINGTON
March 29 # 19 i|6
Whittpmore - Boston
Sproul - New Y0rk
Williams* Philadelphia
Sidney - Clewland
Leaoh - Richmond
McLarin - Atlanta
Young - Chicago
Davis - St. Louis
Peyton - Minneapolis
Leedy - Kansas City
Gilbert - Dallas
Clark - San Franoisoo
Pleas© T&re to roach Board not later than 10 AM BST April 1
earnings to March $1 on Treasury Mils held by your Bank
outside System Account*
Van Fossen
I
Reproduced from the Unclassified I Declassified Holdings of the National Archives
March 21, 19146
Mr. So*ad
Mr. Daniels
Tha formula for Allocation of Securities Hold in System
and Option Accounts provides that "Adjustments whan necessary to
restore any Bank’s reserve ratio to the agreed upon percentage will
be made in participations in Treasury bills each Wednesday and on
the last day of each month, unless such day is a reallocation date,
based on dosing figures of the previous day . . .* When the last
day of the month or Wednesday immediately precedes a reallocation
date, an adjustment of Treasury bills is called for although a sim
ilar adjustment is involved in the reallocation. The only need for
such an adjustment would seem to be to preclude the possibility of
any Bank’s issuing a condition statement showing a reserve ratio
less than the agreed upon minimum.
When the last day of the month falIs on a Sunday or holiday
and tha following day is a reallocation date, to follow the allooa
tion formula strictly would mean delaying the reallocation in order
to put through an adjustment of Treasury bills on the last day of
the month* Thus, because of Board or Bank holidays, or both, we
have found it desirable to omit the month-end adjustment just preced
ing the last two reallocations.
Heretofore, when the month-end adjustment has been omitted
the presidents have been advised and given an opportunity to object.
To avoid the necessity of going through this procedure, it is sug
gested that the allocation procedure be amended by inserting a sen
tence authorising the Manager of the System Open Market Account in
his discretion to ostit the month-end adjustment. For this purpose
it is suggested that the first three sentences of paragraph 2(b) of
the allocation procedure might be revised to. read as shorn below.
The second sentence is the proposed insert, and the clause "unless
suoh day is a reallocation date" in the first sentence has been moved
to clarify its meaning.
Adjustments when necessary to restore any Bank* s reserve ratio
to the agreed upon percentage will be made in participations
in Treasury bills each Wednesday, unless such day is a real
location date, and on the last day of epoh month, based on
closing figures of the previous day, with allowance for any
repurchases. When such weekly or month-end adjustment would
delay or conflict with a reallocation, the adjustment may be
omitted in the discretion of the Manager of the System Open
Market Account, with the understanding that an adjustment to
restore any Bank*s reserve ratio to the agreed upon percentage
willr-W-Hfa^e r^n toly+phegcd reAoast te-the rliaaagqg. sit* between
the wUa£ly an t mont
id ad rastj^VsaBfei ikLs^/qa^vw ratio
i
IT
R ep rod uced from the U n cla ssified / D eclassified H oldings of the N ational A rchives
Mr* Saaad
~2 -
approach#* the legal ■lniaun, the Bank: aay **11 to th# Bank
or Bank* hairing the highest ruir?* ratio or ratio*, a partioipation or participation* in Treasury bill* held in it* option
aooount for a parted of day* to expire on the following Wednesday
or Month and, whiohersr i* earlier, exoept that cuoh adjustments
will tea aid* in tha Systoa aooount in tha event that a Bank do#*
not hold suffioiant bill* in it* option aooount.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
I
fe u ’O (N RECORDS SECTION
F e d e ra l R e s e rve B a n k
of
N
ew
Y
APR 2 41968
ork
January 3, 194-6.
Dear Mr. Smead:
We received your letter of January 2, 1946/and have today sent
to the Reserve Banks a copy of the computation showing the adjustments
made on January 2 as of January 1, 1946, pursuant to the plan adopted
at the meeting of the Federal Open Market Committee on September 21,
19449 as amended June 20, 1945*
Enclosed herewith is a copy of the letter of transmittal,
together with three copies of the computation, also copies of telegrams
which were sent to each of the Federal Reserve Banks on December 21, 1945
and January 2, 1946.
iystem Open Market Account
Mr. E. L. Smead, Director,
Division of Bank Operations,
Board of Governors of the
Federal Reserve System,
Washington 25, D. C.
Enclosures (6)
JiT D M RECORDS
M IS C . 1 4 0 A 4 0 M - I 2 - 4 4
FED ER AL RESERVE BANK OF NEW YORK
APR 2 41968
January 3, 1946*
Dear 1r* fllllamsi
In accordance w ith our talagra# o f January 2, 1946, I encloea
herawtth ooaputatioa of the roadjuitaent* aada m January 2 at of
January lf 1946 In th# participation* of tha Federal iaaar?* Bank* la
tha Syataa
Open larkat
portfolio*
Io»re faithfully,
G* Rouse, H&iaager,
Open lark at Account*
M r. Alfrad H* W illla a f t , P r a e id
F e d e r a l Ra*#r*a Bank o f Ft*
P h ila d e lp h ia , P ennB yl'rani*
E n c lo s u re
HIBifd
Reproduced from the Unclassified I / Declassified Holdings of the National Archives
M IS C . T 4 0 A 4 0 M -1 2 -4 4
F e d e r a l Re s e r v e B ank
mmw
nmm mm ts s msmm
l9 *94&» maks? Wm glm «£
V Hi©
Jiao® SO# 1 9 4 5 *
d ta r la g
.Is ^ r t ^ c ip
af &»
m i X M fei aiX iMMTMi fetffct <n tattuqr 3* Sbsse naapttfcjilmi iailtei*
«C $
of I
In 3*ser
to teW
.rXa* o&U# U -»u , m
in yoor p r U i p l S i B In trm ^ a y MXi»# a^feliig % aet ag* jagg
la year tot^L partied^ Ur n i& tft* %p$%m Jkmaft*
tb* vmmlI codsC w&m
IMsj
of
21* X94&*
®»
$&&#** tomks *iiX
I
m mmcmw mmt
in (kmmmamt m m tfM m laM In ttytAm
faatfajf * *
s e c n rili& ft
New Y ork
m mm rsstt& mmmm
m am s
«df
is Mtag
of
tarn b it. * a m
t& be m s * tns^r «#
& m w *p 1+
aem *
-Msud.,m
’OMM.
Mi(M
fu^attN K &
m
O^M mSD
m*#
AIMESS
ib u
afs&^o
WCm
ms*
k3£f
<ssuk»
bh
'
1
esc.
i*,58£^XO
jftge. -0,622 jm
mm
mmmmm
5t3u$jm
%mm an
u*iii3#ax.
« »
110*
1,1X6,0 0
&UM
§m mmmmm mQrn «*47^,3..0
as*
V
#4i
•
E ^ » l
m
itH tt
l,a|i' ■ ^■ %
if io ,j? e ,!» j
<
HI
ssxt*
me*
me*
mi*
xsc.
-------- -
yt& jm
M,mw000
?**»$ "
«£A*
ISC*
4S,35Q»»30
153,TO,Oi»
lie*
U0^fiM«0E3O
49$m jm
S6,;^7,-X»
Ii?S% Xix5,e57,005
ISC*
IK .
j'4,:-‘4e#aoa
6,TO ,300
uc*
£*7£6,0.0
sac*
III#*up
i^aai^QO
i- V«
IHS* U 2,4*$#0 tt
ate.
M30Si
47,337,000
5^W7,4K0
Reproduced from the Unclassified I Declassified Holdings of the National Archives
SECTION}
M IS C . 1 4 0 A 4 0 M - I 2 - 4 4
,
5cc.ua**
a&fifas
F e d e ra l R e se r v e b a n k o f New
»
York
?*-
...
. i‘
m V •''A *tv
*-\9
DfCdiWr 21,
i& to
II
be s o n to to e rw aauaat or.
m».
li®* &#•». propose! that due t# the difficulty
position*, of tb* Foster*! i#a#nr* 8*»&*
m
&£ ofettloiiif
of ftoe«*fe*r 29, 11*45* <»* Ion<i*y>
0ec«»b«r 31» 1945* t&o *<*ju#t*®at£ of psrticlpetioaa la fr«-»«ur7 bill* rn llm %
for on tAe l*?.«t 4ay of otch «oatli to oaltt«4 ©» £»e««tte»r 31* 1945# with tho
pro*!aion that *ay
n.ncm*mry
will
any tcsorr* 8«&k to a# at th« Ftdorel JtaMirv*
bm
upon
r®cu«£t of
of Its* Xoriu
fill you kindly 1#% »• too* if tfelN|^pr©^NJare assets with jour
approval,
Replies were received from all of the banks agreeing to the above procedure•
r^oorvo
REALLOCATION OF G0VER1»!BNT SECURITIES IN SYSTU! OPEN MARKET ACCOUNT, JANUARY 1, 19^6
Page 1
( I n th o u s a n d s o f d o l l a r s )
o
System
Bo art on
New
York
!s^aatec o u rre n t e x p e n se s, 1946
cc
;s1A«iate< d iv id e n d s, 19*46
50,071
3*285
12.315
3.659
1*^5
3*236
2,722
10,5*49
638
3,764
783
1,060
*4.30
381
Istim atec
60,620
3*923
16.C79
4,442
5**495
3*666
2,680
108
979
103
198
57*940
3*815
15.100
4.339
5*297
383*850 1,519*303
*436,573
532*963
23.9669
7*6505
9*9999
Minne
a p o lis
Kansas
C ity
2,708
1*337
2,711
2,222
4*677
1*245
335
231
344
360
978
3*103
8,009
3*oii3
1*568
3*055
2*582
5*655
77
132
527
i4o
42
238
13
123
3*589
2,971
7.k82
2,903
1*526
2,817
2*569
5*532
361,111 298,930
752,809
202,088
153*5*40 283,^35
258,483
556*600
12.7525
4*7969
4*8751
4*3C78
10.Q335
268,669
158.52(0 275.070
241.293
562.008
11.431,003 786.562 2.861.763
865.101 1.095.068 716.895 592.721* 1.1(67.116 560.777
312.080 556.505
199.776
11.1)31.003 797.221 8.867.763
810.663 1.096.538 70e,313 575.086 1.497.355
584.399
317.205 570.658
498.658 1.074.144
-23.622
-5.125 -14.153
I.
expenses and dividends
o u rre n t e a rn in g s , 19 *46,
n on Goverrauent s e o u r i t i e s
E-
C leve
land
S t.
Louis
to ■ oo
"C" over "D"
A llo o a tio n re q u ire d (on b a s is o f
•993677# e arn in g s r a t e ) t o produoe
earn in g s equal t o "E "
5,829,693
P h ila
d elp h ia
R io h mond
A tla n ta
Chioago
D allas
San
F ra n o is c ^
A llo o a tio n of I n t e r e s t ' -B earin g S e o u r itie s
6,76*4-
Reproduced fiom the Unclassified / Declassified Holdings of the National Archives
fONFIDENTIAL
0. A verage d a i l y p a r t i o i p a t i o n s , p er
eexrt , in i n te r e s t -b e a r i n g s e c u r i t i e s
in System Aooount sin oe Deoesaber
100.0
31. 1940
7.1896
6 .3518
5^2451
A llo o a tio n o f rem ainder o f i n t e r e s t b e a rin g s e o u r i t i e s ($ 1 1 ,1 + 3 1 *0 0 3 ,0 0 0
"•ess $5*829#693#000)
b a s is o f
r
I.
tal allooations
J< Present allooations
X. Change in allooations
5 .6 0 1,310 ltoe.712 1.342.460 2426,526
—
-10.659
-6.000
+15.1)38
560,1*5
-3.1*50
355.761* 293.794
+14,582 +17.638
714.307
-30.239
2.8304
(
*1.118
.
1 118.616
♦44.102
ay'
D EC LA SSIFIED
Authority
t , 0 . I H 5 01
REALLOCATION OP GOVERMIENT SECURITIES IN SYSTEW OPEN MARKET ACCOUNT, JANUARY 1, 19l|6
System
Boston
Nenr York
II*
L. Allooation of Treasury bills
on basis of "G"
Phila- Cleveland
Richmond
Atlanta
922,515 3.075.252
981,65U 1,283,112
815,015
V* Holdings of Treasury bills
in option aooouzxts
4, 851.923
111,987 3.017.186
216,922
147.690
41,781
16,140
*. Allooation of System Account
bills ("L* minus "M*)
7,979.322
810,528
762,732 1 ,135.422
773,234
654,872
911,055
207.672
0
^ortion that Banks oan not take
duo to loir reserve ratio*
—
St*
Mlnne-
anolla
Kansas
Citv
Dallas
San
AllocatJion of Treasury Bills
12,831,21+5
58,066
Chioago
Page 2
188,950
196,017
-
673,012 1.636,304 615,502 363,176
808,885 103,201
33,923
827,419 512.301 329.253
—
—
74,122
38,898
625.536 552.744 1.287,422
146,089 27,669
276 ,45 c
579,447 525.075 1.010,973
85.313 120,083
p. Distribution of •0" to Banks
with highest reserre ratios
911*055
a. Final allooation of Treasury
bills in Systesi aooount
("I* a i m s *0* plus "P*)
7,979.322
602,856
58,066
573.782
939,405
773.234
654. e72 1.359.921 438.179 290.355
494,134 404,992 1.389.526
7,979*322
606,789
35.005
541,883
981,505
634.113
616.233 1.490.539 390.309 278.1)31
485.408 417.0 96 1 ,502.011
-3,933
+25,061
+31.899
-te,100
+139.121
Present allooations
8* Chang* la allocations
—
—
III*
T*
—
—
—
532.502
+38,639
-
—
-130,618 *47.870 +11,924
—
—
378.55!
+8,726 -12,104 -112,1485
Total Allocation of System Aooount Securities
urtieipatio® la 8 yi t« Aooount
("I" plua V )
U. Change 1b participation
19.U0.325 1.389.418 2.919.829 1.438.883 2,(92.1)93 1 .490,129 1.21)7.596 2,827.037 998.956 6ce,435 1.050.639 904.768Heoe.il*
-14,592
*17.061
♦to.337
-45.550
*153.703
*56.277
-160.857 *84.848
<6,799
-5,1)27 -10.986
-68,015
• Based «ai M t » ani dspoalt liability and r » M n » flprt* on Daooabar 29, 1945*
W ''-
DECLASSIFIED
Authority t
=0, 1
0501
Reproduced from the Unclassified / Declassified Holdings of the National Archives
CONFIDENT IA.L
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
B O A R D OF G O V E R N O R S
OF TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V I C E
WASHINGTON
Jftaary fc* 19^
louas * Wsw Tork
\
this will oonfirm understanding in tolsphone oonvarsation that
adjustasnts of partiolpations la % st«m Account will bs as
follosrs* In thousands of
dollars t
Infc«r«st-bs*rijag
seourltlss
Treasury
Mil*
Total
*10,659
-5.955
-14.598
-6*000
♦85.061
♦17.061
♦31.899
♦4?.337
-3.450
-42.100
-45.550
Rlsfamond
♦14.588
♦139,121
♦153.703
Atlanta
♦17.6J8
♦38.639
♦56.277
Chisago
-50»*J9
-150*618
-160,857
ft* Louis
•fif.6S8
♦47.870
+24,248
Minneapolis
•5*125
+11.984
♦6.799
Kansas Oitjr
-14.155
♦6.786
-5.1*7
♦1,118
-1S.104
•10.986
+44,478
-118.485
-68,015
Boston
M«w Tork
Philadelphia
Clareland
Dallas
•an Francisec
♦15fi0®
Reproduced from the Unclassified I Declassified Holdings of the National Archives
RMMki
3 0 ^ IE U S ® SEOUC*
1346
y
Mr* "Robert 0* Bouse# Vice President#
Federal He serve Bank of Him York#
3ff*y York ?* Hew York.
Fear Vr* Honset
there it enclosed a rbat#sner*t shavingr ©d.lustwente
to be made in allocation* of Government securities in the
Sytter* Open tTerket Account ae of t e v y 1# 191)6« propered
in accordance with the formula adopted by the System Open
VarVet Camrrittee on September 21, 19Wf# as arer.ded June 20*
19U5*
Very truly yours#
it.* L* Sr:ead# Director*
Division of Bank Operations*
~r>*l0SurC
REALLOCATION OF GCVERUfBKT SECURITIES IK 8TST3K OPEI MARKET ACCOOlff, JAS0ART 1, 1946
{In thousands of dollars)
Syst«n
Boston
Hew
York
Phi la- Cleve
delphia
land
Rich*
mond
Atlanta
Chicago
X* Allooation of Interest-Bearing Securities
3*236
2,722
6,764
12,315
3#659
4,105
Page 1
St*
Louis
Minne
apolis
Kansas
City
2,708
1,337
2,711
2,222
4*677
Dalla a
San
Franoigoc
A« E»timat»d ourrent expenses, 1946
/
50,071 ' 3*285
B* Estiftated dividend*, 1946
10,5149/
638
3.761+
783
1,060
130
381
1*245
335
231
344
340
978
C. £ ctlirated expenses a33d dividends
60,6 2 0 '
3.923
16.079
4*442
5*495
3*666
3*103
8,009
3*0*43
1.568
3*055
2*582
5*655
108
979
198
77
132
527
140
238
13
123
57.91+0* 3,815
15 ,10 0
4*339
5*297
3*589
2*971
7*482
2,903
2,817
2*569
5*532
F* Allooation required (on basis of
*993877$ earnings rate) to nroduoe
/
earnings equal to *E*
5,829.693 383,850 1#519#303
li36,573
532*963
361,111 290*930
752,609
292,088
153.51+0 283,435
258,483
556,608
7.6505
9*9999
12*7525
4.7969
4-3W8
10.0335
21*1.293
568.008
D
ittested ourrent earnings, 1946,
other than on dovernaent securities
1. Excess of *C* over *D*
0. Average dally partioipations# per
sent# in interest-bearing securities
in System Aooount sine# December
31* 1940
2*660
100.0 ' 7.1896
23.9669
m
H. Allocation of ranalndor of int«r»«tbearlng soouritlos (*11,1*31,003,000
loss $5,829,693,000) on tests of
»e"
5,601,310 k & .n z l,Jl|2.1(60 1428,528
6*3518
5.21*51
560,185 355,781+ 293.794
711+.3W
268.66?
142
1.526
2 .8301+
4.8751
158.51*0 273.070
/
I. Total allocations
U.I+31.003
786.562 2.861.763
865.101 1,055.060 716,895 598,721+ 1,1+67,116
560,777 312.080 556,505
1*99.776 1.118.616
J. Preeont allocation*
11,1+31.0037 797,221 2.867.763
810.663 1.096,538 702.313 575.086 1.1497.355
5814.399 317.205 570.658
1*98.658 l . w L l M k
!■ Change in allegations
—
y
-10,659
-6,000 +15.1438
-3.1+50 +11+.582 +17.638
-30.239
-23.622
-5.125 -H+.153
+1,118
+1+1+.1+72
D EC LA SSIFIED
Authority
Q . ID5 0 /
Reproduced from the Unclassified I Declassified Holdings of the National Archives
confidential
wm wm m ,
JU Allooation of treasury bill#
on best* of *3*
RKALLOCATXON Of t K M O U M m SBCtmtlES IK STSfai QPEK MARKET kCC<mt* JAKtJART 1* 1 9 &
(la thouitnAi of dollars)
it* llinneBoston
ftiokpossA Atlantal Chioago
iy*t*Bi
Wm fork
ftfgltl fttella
Jw USIm I
n » Allooatloa of treasury B i n *
12.831.245 7 982.515 3.075.850
981.654 1 .263.118
815.0x5
673.812 1.636.304 615.508 363.176
M* Holdings of Troaaury bills
la option aeoounfcs
4.851,983/ 111.987 3.017.186
216.928
147.690
41.781
18,l40
606,865 103.201 33.923
K. Allocation of Sy*t*» Aooount
bill* (*t* minus «**)
7.979.322 A 810.528
762.738 1.135.428
773.254
654.878
887.419 512.301 389.855
0* Portion that Saak* oan not tako
due to lcnr reserve ratio#
fm Distribution
58.066
180,990
911,0557 807.
of "0* to Basks
with highest reserve ratio*
911.095
Q* Final allooation of treasury
bill* la 8y*t«a account
("8* missus *0* flu* *f*)
7.979.388
74,122 38,898
196,017
/
P ase 2
Kansas i a*xi*«i
•*»
...Pilar 1 , ____1 frunQlMft
625.596 552.744 1.287.425
46,089 E7.6&9
276.4&0
579.447 585.075 1.010,973
85.313 180,083
538,508
376,555
/
608,856
58,066 573.782
939.405
775.834
654.672 1,359.921 436,179 890,355
494,134 404.992 1.369.586
7.979.388
606,769
35.005 541.683
961,505
634,113
616.833 1.490.539 390.309 878,431
465.406 417.096 1.502,011
—
-3.933
*23.061 ♦31*899
-42.100
+139.181
*38,639 -130.616 +47,870 H1.981*
*6.786 -18.104 -118,465
/
S* Present allooation*
S. Change la allooation*
/
* fotal Allooation of iystea Account Securities
/
t* Partioipation in System Aooouat
("X* plu. V )
19.4l0.9S5 1.389.418 8,919.689 1,108,883 8,032.403 1,490,129 1,247,596 2,887,037 998,956 608,435 1,050,639 904,768 «08.l42
M* Change
ia partioipatioa
-11^992
+17*061
♦1#,357
♦153#70J
«-56#277 -l£0,85r
*6,799
- 5 # ^ ~10#986 ~60#0l|
* Bated on aoto and dope*it liability and reserve figures on December 29# %9k5*
_'•
"■fi>....
(. t-*
DECLASSIFIED
Authority
jr.Q, I H 5 X 7 /
I
rceproaucea rrom the Unclassified / Declassified Holdings of the National Archives
APR 2 41968
F e d e ra l R e s e rve B a n k
of
Ne
w
3
3 3 , 3^3
Yo r k
December 3, 1945
Dear Mr* Smead:
We received Mr* Van Fossen1s letter of November 30. 1945J and
have today sent to the Reserve Banks a copy of the computation showing
the adjustments made on December 1, 1945 > pursuant to the plan adopted
at the meeting of the Federal Open Market Committee on September 21,
1944* as amended June 20, 1945*
Enclosed herewith is a copy of the letter of transmittal
together with three copies of the computation, also copy of the telegram
which was sent to each of the Federal Reserve Bunks on November 30, 1945*
Yours fait
Robert G* Rouse, Manager,
System Open Market Account
Mr. E. L. Smead, Director,
Division of Bank Operations,
Board of Governors of the
Federal Reserve System,
Washington 25> D* 0*
Enclosures (5)
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Pecuekr 3, 1945*
Pe»r Mr* ilfcnd«r*i
In &eeordftnc« v,ith our telegram of H o r n e r 30f 1945, t «nelo»*
herewith computation of th# r®«4ju*t»ent« m&de on Ifeetafeftr lf 1945 la th«
participations of the Federal &®»©rr« B«nk« in th# £y#tam Op«n 8 * r k « t
portfolio*
four* f»i thfullyf
M d O A M 3 N JO >!NVa 3AH3S3H ”IVd3a3.d
frf-S-WOOl-VO* I -OSIW
Reproduced from the Unclassified / Declassified Holdings of the National Archives
j\i **i»*
b
,
* H tQ fm s s t e m
*f^+{ ■ ■ ■
t o
rtflS C . 1 4 0 A - 1 0 0 M - 6 - 4 4
SEGOHXTXSS
HIP?*
liaayHHpaiwi
mmm*
m&
F
ed er al
Reser
B
ve
ank
o f
N
Y
ew
APR 2 41968
ork
BHB*fO*B
mmmm
p
30, m i
i smm th e WGmmrnz m tjm w to n m fe d e r a l m a y a b m i ah in d icated B im »«
Roadjuataant of participationa la Goraraaaat aaourittea fc#24 is Syatta Aeoount
will ba mada on D e o d a r 1 nad«r tha plan for raallooaiion of QoYarninant aacuritiaa
adopted
tha Fadaral Opan Harkat Cowaltts*
m
SaptaBfear 21, 1944# as amaodad Jima 20#
1945* Th* computations Shoving adjuataoat# sada in participationa of the aararal
Raaarva Banka will bo nailed to all
INCREASE
indicata an
OF $
obligatlona, and an 2 J S 5 t ^
D9K38RASB
Banks an Deaeabar 3#
in your participation in iatarast-bearing
I
cipation in ^freasmy biHa#
in ffftap
IMGBSAS1
■•**»* I M t n i n l v
Thaea computations
pation in tha Qyaton Account*
in your total
•
entries to be made
I oar bank will raeeiv* tha usual coded wlra
on December 1*
THKASURr
JUfiUL.
TfyfiL
n o . | 16,605,000
HC* | 37,815,000
IHC*
6,595,000
XBC*
2,859,000
17,537,000
BBC#
24,546,000
BBC*
11,147,000
FLANDEBS
BOSTOi
WILLIAMS
PHILADELPHIA
BBC*
aumt
CI^VELAND
bic *
7 ,009,000
DEC*
TJKlflll
BICBMQKB
BBC*
2f290,000
BBC*
io u rin
ATLANTA
ISO*
5«,702,000
HO#
7,313,000
BEG.
51,369,000
foam
CHICJflO
3SC*
10,329,000
3316* 113,745,000
ISC*
124,074,000
DAVIS
if * LOUIS
XBC*
*51,00®
SEC#
a,452,000
BBC*
1,801,000
PKTT08
MINNEAPOLIS
me*
9,429,000
CSC*
9,682,000
BBC*
253,000
JUE!3EB8»
KANSAS COT
DSC*
659,000
HC*
12,459,000
IHC*
11,800,000
GILBERT
TIAT.T-Aja
DEC.
6,829,000
BfCfr
5,319,000
BBC*
1,510,000
cat
m
BKC*
36,740,000
xbc*
107,690,000
arc*
70,950,000
mvGXsco
•
2XfZ ^ 0 y
X ^ r #00°
BOUSI
------c_>
New
P h ila
C leve
R ich
A tla n ta Chicago
mond
lan d
d e lp h ia
York
U A llo o a tlo n o f I n t « r a a t - B e a r in g S » o u r ltl« »
St.
Louis
Minne-
6.1*82
2,660
567
1.215
3.600
2.998
172
75
6 ,21*1
6,337
7,863
8.035
6,208
2,01*3
7.1987
2 3 .96U*
2.557
8 .5 12
1.292
2 .6 H*
2^095
326
221
530
31*1*
930
7.697
2.986
1.513
2,9U*
2.1*39
5.51*1
56
361
157
63
232
11
75
5.219
5.291*
l*.3l*l*
1*.1*00
10.655
11,0 1 6
1*.057
l*»2 llt
2,202
2.265
3.981*
!*»2 l6
3.556
3.567
8.177
8.252
2,681
1.691*
1 .1*02
3.319
1.228
752
1.272
1.128
2.711
7.6 6 57
10.0173
6.3522
5.21*28
12.7269
1**7796
2.8329
1**8703
1**3021
10.01*71
2.723
3.558
2.256
1,862
I+.521
1,698
1.006
1.730
1.528
3.569
680
877
562
1*60
1,202
1*70
1*58
1*00
856
1*8,230
3.232
11.5 6 5
3.529
1*,329
3,190
2 .6 3 1
10 ,17 6
618
3,625
765
I .025
1*10
58 ,1*06
3.850
15,190
U.29U
5.351*
2.1*18
86
1,031*
96
82.3U5
81*.763
5.683
5,769
20 .361*
21.398
26.357
1.919
100.0
G* Estimated earnings* for year above
expense and dividend requirements—
$26,357*000 plus estimated earnings
December on interest-bearing securities
in System Aooount at *99175^ earnings
rate, #9*1^3*000--allooated on
35.520
basis of "Fw
oo
CO
(j)
Q
A@B8tt*feat*d current expenses, 19^5
<N?
fwA*4
EP^st^aatec dividends, 19^5
“
<c
GEstimatec expenses and dividends
|b
Ju j
San
Franc iso*
D a lla s
Boston
po
Kansas
City
System
U J
Pag* 1
U .6 1 1
T ie g f s iT .T » « iw »
1. Estimated earnings, 19^5»
exclusive of earnings on
Government securities
2* On interest-bearing securities
in System Aooount to Nov* 30
3* Total
E* Excess of "D3" over "C*
F* Average daily participations,
per cent, in interest-bearing
securities in System Aooount
sinoe November 30, 19^
H* nG* minus "E*
9.163
638
2 .301*
I* Allooatlon of interest-bearing
securities in System Aooount
on basis of "Hw
10,878.703
757,1*61 2.735.1*07
807,325 1,01+1,212
667,230 51*6,131 1.1*27.065
J* Present allooations
10.878.703
736.251 2,661,261
811,0611,01*6,221
669,520 60l*,833 1,1*16,736 557,153
K* Change in allocations
• Bxoluslr* of »#rning« on Tr»»«ury bills.
♦21,210
+7l*,li*6
-3.736
-7.009
-2,290 -58,702
+10,329
25l*
558.001* 301.560
♦851
292,131
<9,1*29
51*3.757 1+7 U.8 9 7 1 .018 .65I*
5U*.1*16 1*61,786
-659-1 '
DECLASSIFIED
Authority
Q JD5QI
Reproduced from the Unclassified I Declassified Holdings of the National Archives
REJLLU3CATION OF GOVERNMENT SECURITIES IN SYSTEM OPEN MARKET ACCOUNT, DECEMBER 1, 191*5
(la thousand* of dollars)
RIALLOCATION OF GOVERNMENT SECURITIES IN SYSTEM OPEN MARKET ACOOUNT, DECEMBER 1, 19^5
(In thousands of dollars)
St.
MineePhila j CleveNo t
RichChicago
Boston
Systea
Atlanta
Louil
York
delphia
II Allooation of Treiisury Bil Is
Page 2
Kansas
City
Dallas
San
friLOciiSO .
L* Distribution of estimated earnings
on bills for year on basis of
1*7.811
3.W*2
11.U58
3.665
U.789
3.037
2.507
6,085
2.285
1.35U
2,328
^.057
li.804
M* Barnings to Novsmber 30 on bills
in System Aooount
26.98U
2.21U
1,352
2,016
3.6W*
2.U9U
2,102
3.925
1.275
&hl
1.70U
1.32U
U.093
V* Barnings to Deoember 31 on bills
in option aooounts (est«)
18,226
381
10,821
78li
3U5
183
83
3 .U50
U83
201
179
111
1.205
ro rata share of earnings from
bills in System Aooount, Daoember,
("L* minus
and *N")
2,601
8U7
-715
865
800
360
322
-1.290
527
312
UU5
622
-U9h
-iU5
♦715
-U2k
-392
-1 7 6
-158
+1,290
-258
-153
-218
-305
+U9U
Ua
I1O8
18U
16U
269
159
227
317
1.365.590 1.263.1403
569,770
507,839
832,979
U92,356
702.923
981.615
—
uii.sui
205,902
195.875
583,060
—
—
- -
—
1 ,’460,000
398,555
i.U6o,ooo
0
P« Adjustments due to exoesses of
plus *N" over
- -
Q* Adjusted pro rata share of
earnings from bills in System
Aooount, Deoember
2 .6 0 1
U32
R* Allooation of Systea Aooount
bills in proportion to "Q*
8 ,05U ,19 6 1*337*721
5* Portion that Banks oannot take
due to low reserve ratio*
3,089,011
716,273
T* Distribution of ”S” to Banks
with highest reserve ratios
J.089.011
• •
U* final allooation of Treasury
bills in Systea Aooount
("R* alnus *&* plus "T")
8,05U,196
621 . U
B ,05lt,196
V *
Present allooation
V* Change in allooation
--
—
35.005
Y* Change la partioipation
222.133
_ _
__
—-
73.273
106,862 1.J413.871
286,l5U 507.0U8
611,663 l,0Ul.270
6U3.0143
61U.701 1.1U3.871
1*21,138
6o U,8U3
266,023
605,068 1,058,807
651,900
607.368 1,300,126
li23,790 296,136 U9U.589
♦16,605
-231.018
-17.537
-8,857
**6.595
♦7.333
+113.7U5
-2,6 52
393.236 1 ,552,310
-9.682 ♦12.U59
♦5 .3 19 >107,690
Total Allooation of System Aooount Seourities
18.932.899 W78.909 2.770.1a2 UU8.988 2,062,U82 W10.273 1J.60.832 2,8140.936 979.1U2 588,0lU 1P50.805 873.U52 2.U78.65U
—
+37.815 -156.872
+2.899 - 2U.5I46 -11.1U7 -51.369 +12U.07U - 1,801
-«53 ♦11,800
• Based on note aad deposit liability and reserve figures
Irveafeer 29 , 19fa5«
753.927
35.005
48
III*
!• Partialpation in System
Aooount (*l" plus *U*)
- -
mt
1'1-Ci.ASSillKD
Authority j
Q- I 0 SO/
Reproduced from the Unclassified I Declassified Holdings of the National Archives
OOiriWTIAL
Reproduced from the Unclassified / Declassified Holdings of the National Archives
JMP’Ii I* *!.J# gvetJ'**’
I
«
I
";:C ■ N
/1r
~
NoT«mb«r 30. I9U5
Mr. Robert G. Rous-9, Vioe President*.
Federal Reserve Bank of How Tork,
Hew Tork 7#
Y.
Dear Mr* Bouwe*
There Is enclosed a statement showing adjustments
to be made in allooations of Government seourities in the
System Open Market Aooount as of December 1, I9U5 # prepared
in accordance with the formula adopted fcy the System Open
Market Committee on September 21, 1944* as amended June 20,
19U5 .
Very truly yours,
h rf
J. R. Van ^ossen,
Assistant Director,
Di'vision of Bank Ope it tions.
Enclosure
I
£
. i
Boston
H«v
York
P h ila
d elp h ia
3*232
11.565
3.529
618
3.625
58#lio6
3*850
2 ,1*18
System
A* Estimated current expenses,
B. Estimated dividends, 1^5
:
i
yf9ratrai
m
o
#5
W £%
m
2?
Cleve
land
St.
Louis
Minnayolifl
Santas
City
2 .6 3 1
6,482
2.660
1.292
2.614
2.095
4.611
4io
367
1.215
326
221
350
344
930
5.554
3.6oo
2,998
7.6 9 7
2,986
1.513
2.944
2.439
5.541
96
172
75
56
361
157
63
232
11
75
20,364
21.398
6 ,2 41
6,337
7.863
8.035
5.219
5,294
4.344
4,4oo
10.655
11,016
4.057
4.214
2.202
2.265
3.984
4 .2 16
3.556
5.567
8.177
8.252
1.919
6,208
2,045
2.681
1.694
1.1*02
3.319
1.228
752
1.2 7 2
1.128
2.7H
.1987
23-9644
7.6657
10.0173
6.3522
5.24^
12.7869
4*7796
2.6329
4.8703
4*3021
10-0471
2.557
8,512
2.725
3.558
2.256
1.862
4.521
1.698
1.006
1.730
1.528
3.569
254
458
400
858
Atlanta
4.529
3.190
765
1.025
15,190
4,294
86
1.034
5.683
5.769
D allas
Francisco
/
,W
[10,176
f “5
M.
Currant earnings*!
A
I* Estimated earnings,
exclusive of aaraings
Government securities
2. On interest-bearing securitiei
in System Account to So t . 5®
3* fetal
San
Chicago
Rich
mond
/
C* Estimated expenses and divi<
r
I9h5
62.345f
E* Excess of "UJ* oitr *C*
F* Average daily participations,
per cant, in interest-bearing
securities in System Account
since November ?0, I9 I4O
9* Estimated earnings* for year above
expense and dividend requirements**
126,357*000 plus estimated earnings
December on interest-bearing securities
in System Account at *99175^ earnings
rate, #9*163*000— allocated on
basis of *F*
35*520 '
*®l*
**»
G" minus *
*E
9.163 ><
638 /
2,304 7
680 y
877 '
562
460 /
1.802 ,
470 "
I. Allocation of interest-bearing
securities in System Account
on basis of *H*
/
1 0 ,078.703 757M l 2.735,1*07
807.3251,01*1.212
J. Present allooations
10.678.703^ 736.251 2,661,261
8 11 ,0 6 1 1,01*8.221 669.520 601*.833 1.1+16,736 557.153 298.151 544.416 481.726 1P55.594
K* Change in allocations
—
• Exclusive of earnings on Treasury bills*
/
+21.210
♦74,11*6
-3.736
.7.009
667,250 51)6,131 1 ,1427,065
-2,290 -58,702
558.001* 301.560
+10 .
543.757 474.8971.018,654
-6.889 -36.740
Authority I
Q . 1DSOI
Reproduced from the Unclassified / Declassified Holdings of the National Archives
REALLuCATIOK OF QQVSrtNMENT SECORITIBS IN SYSTEM OPEN MARKET ACCOUNT, DECEMBER I ,
( I n th o u s a n d s o f d o l l a r s )
CONFIDENTIAL
Boston
System
Rich- J
PhilaC1»Y*Vew
Atlanta
aond 1
York . delphia
l*nd
II . Allooation of Treasury Bills
Minne
apolis
Kansas
Dallas
. City;.
San
Franoisoo
&• Distribution of estimated earnings
/
on bills for year on basis of *V* 47*811
5*4b2
11,458
3.665
4*789
3.057
2,507
6,085
2,285
1.354
2,528
2*057
4*804
M* lamings to Momember 30 on bills
in System Aooount
26,984 ^
2,214
1.552
2,0 16
5,644
2.494
2,102
3.925
1*275
841
1.70 4
1*524
4.093
II* Earnings to December 31 on bills
in option accounts (oat.)
18,226 /
381
10,821
784
545
183
83
3.450
1*83
201
179
111
1.20 5
-715
865
800
360
322
-1.290
527
312
1*45
622
-494
♦715
—1*24
-592
-17 6
-158
+1.290
-258
-153
-218
-505
+494
1*41
408
184
164
269
159
227
517
mm
1*565*590 1*263*405
569.770
507.839
mm
832.979
492.356
702,923
981*615
mm
mm
4il.84i
205,902
195.875
583*060
—
0* Pro rata share of earnings |fi|ott
I
bills in System Aooount, ammber, I
>c
(*L* minus *M* and **!*) Jg
P*601
847
1iK
8
P* Adjustments due to exoessei^f cn
*11* plus “M* OT»r *L*
fj|
if
/ -415
t5r»
Q. Adjusted pro rata share of jf* 1!
earnings from bills in $yaftii& 7
Aooount, December
|a 53
E .60 1
432
H'***
R. Allocation of System Aceouzjj£
1
^
bills in proportion to *q 4SL»J5y » * i 9 6 1 3 5 7 .7 2 1
S. Portion that Banks cannot take
due te low reserve ratio*
3,089,011
T. Distribution of "S* to Banks
with highest reserve ratios
3 #039,011
0# Final allocation of Treasury
bills in System Aooount
(*»" minus *8* plus *?*)
8,054,196
T* Present allooation
V* Change in allocation
mm
■—
/
—
716.273
«*«*
753.987
X • Parti oipation in System
Aooount ("I* plus "0*)
Y* Change in partioipation
•
. .
«*«*
73.273
106,862 1,413.871
«im
. .
mm
1 ,460,000
/
621,4ii8
55*0)5
611,665 1,041,270
643.043
614.701 1,413.871
8,054*196 604*845
—
/ ♦16,605
266,023
605,068 1 ,058,807
651.900
*17*557
-8,857
.
/
*231.018
+6,595
421,158
286.454 507.Q48
598*555 1*460,000
607.368 1.500,126 425*790
296.136
494,589
595*256 1.352*310
-2,652
-9.682
+12.459
+7.333
♦115*745
—
*37.815
-156,872
♦5*519
♦107*690
total Allooation of System Aooount Securities
18.932.899 1378.909 2,770,1*12 1^18,988 2,082,1*82 1,310.273 y60,832 2,81*0.936 979,11*2 588.011* 1P50.805
Based on note and deposit liability and reserve figures
lowmber 29 , 1945-
222,133
mm
55.005
III*
<*
St.
Louie
Chicago
Page 2
+2,859
-2t*,5l*6
-11,147
-51,369
+124.074,
-1.891
-253
DECLASSIFIED
Authority j ' =0 . 1 D 5 0 /
+11.800
873.452 2.478.654
-1,510
+70,950
A.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
RBALLOCATIOS OF (XJTEHHvSHT SSCURITIES IN SY8TKM OPSI MARKET ACOOUHT* DECEMBER I, 1?45
(In thousands of dollars)
COHPIDXNTIAL
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEGRAM
j s k c m o * }
|
r£C 3 ,y4ti
I
B O A R D OF G O V E R N O R S
or THE
J '
FEDERAL RESERVE SYSTEM
*
------
LEASED W I R E SERVICE
WASHINGTON
■ovaatwr
30 , 19U5
Roust - How Tortc
This will confirm understanding in telephone conversation that
adjustments of participations in System Aooount will be as follows,
in thousands of doliarss
Interest-boaring
soourltios
Treasury
bills
Total
Boston
♦21,210
♦16,605
♦37,815
Vow Tork
«7 U.Xl*6
-251,018
-156,878
Philadelphia
-3.736
♦6,595
♦2.859
Clowland
-7.009
-17.5 3 7
-2l+.5l*6
Riohaond
-2.290
-8,857
-11.11+7
Atlanta
-58.708
♦7.333
-51,369
Chicago
♦10.329
♦113.71*5
♦124,074
♦651
-8,652
-1,801
Minneapolis
♦9.1(29
-9.688
-253
Kansas City
-659
♦12,1*59
♦11,800
-6,889
♦5,319
-i»5io
-36.71*0
♦107,690
♦70,950
St. Louis
Balias
San Franoisoo
Tan Fosson
I
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TJBiuaaRAM
Boairvl of f^r^era.or^-
1
9
4
5N
O
V30 A
M9 35
R « w e d « Wasf.Wgtott) B*0.
asci ttr mss sbctxoi
i
WA1&GC04WASH D 1 CLEV J O -8 5 6
VANFOSSEN
ESTIMATED EARNINGS FROM JANUARY 1 TO NOVEMBER 30,1945
INCLUSIVE ON TREASURY BILLS HELD BY OUR BANK OUTSIDE SYSTEM
ACCOUNT IS $321,200
SMITH
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
Joardpf Governor®
' o f tiie
Federal Reserve System
Leased W ire Service
Eeeeiyod at Washington* D.O.
1945NCW 30 *
^ 55
WA17WASH F6 ATLA 30-929A
VANfOSSEN
,»|/p ?/■//.' r ’REURTEL/NOVEMBER 30 EAR^NGS KOR 1945 THROUGH NOVEMBER JO ON TREASURY
BILLS OUTSIDE SYSTEM ACCOUNT $78,206,78.
MCLARIN.
FOB FILE3
M. B. Darnels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
N
O
V30 A
M9
WA22WASHN RH 10
RICHD
30
943A
VANfOSSEN
ESTIMATED EARNINGS TO NOVEMBER THIRTIETH ON TREASURY BILLS
HELD BY OUR BANK OUTSIDE SYSTEM ACCOUNT $t73,473.34
" )
NOWLAN
FOH FILES
M. B. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
risiL-fci g R A M :
_
ottiie
federal Beeerve System
Leased Wire Service
:^
,
,10V 29 ™ 3
Board of Governors
fflo *D a r a n
c*
sbo iio i
DEC 3 i 1946 -
Eeceived at Washington, D.O.
■3,
-J:, 3 4 3 '
WA97BD W^SH B278 BOS 29-340
SMEAD
-A
RETEL NOVEMBER £6,/1945 ESTIMATED EARNINGS THROUGH NOVEMBER
30, 1945 ON U. S. TREASURY BILLS HELD BY THIS BANK UNDER
REPURCHASE OPTION $346,372.84
PITMAN.
■ ,
t
m
■
f o b fil e s
M. B. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
rk'd n hiss ssciiol
DEC 3 1946
HJ
WA44WASH B455 NY 29-533P
VAN FOSSEN
BOARD
ESTIMATED EARNINGS ON TREASURY BILLS FEDERAL RESERVE BANK OF
NEW YORK OPTION ACCOUNT TO NOVEMBER 30 $9,876,000
ROUSE.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TEIi.BG B A M
d o ard of G o v e rn o rs
of tiie
f e d e r a l B e s e r v e S y s te m
Leased WireServlce
Received at Washington, D.O.
fM m
29 ^
-4— 01
BBC*!) I f tttM SBCTIOI
DEC 2
1946
WB20WASH C96 . PHILA NOV 2 9 - 3 5 6 P
VAN FOSSEN
REURTEl NOV.29
"ff~« ■/
)
ESTIMATED EARNINGS TO NOVEMBER 30 ON TREASURY
BILLS HELD OUTSIDE SYSTEM ACCOUNT ARE $714,833.23
W J DAVIS.
•roa f i l e s
M B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
Board of Governors
o f th e
®
4
5N
O
V
-29' P
M5
Federal Reserve System
L e a s e d W i r e S e r v ic e
Received at Washington, D.O,
a TIUS8 SBC1 I 0 1
DEC 3 1945
“ •
WB27GC87BD WASH GX219 CGO 29-354
VAN FOSSEN
REURTEL, ESTIMATED EARNINGS FOR 1945 TO _ IWMMOTM* NOVEMBER 30 '
INCLUSIVE ON TREASURY BILLS HELD BY OUR BANK OUTSIDE SYSTEM ACCOUNT.
ARE $3,184,058.
BLACK.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TJEIijEGKAM
.J o a r d o f G o v e rn o rs
of tiie
Federal Reserve System
Leased Wire Service
k,D.O.
5
90
H
I I KIES SBCTI0 1
DEC 3 1945
//
wa32go5wash MMRBMPh 1 2 2 s t l
29-359
VANFOSSEN
■ RETEL TODAY ESTIMATED EARNINGS TO NOVEMBER 30 ON TREASURY BILLS
HELD BY THIS BANK OUTSIDE SYSTEM ACCOUNT APPROXIMATELY $ 4 5 7 , 8 0 0 .
✓
BUB .
FOR FILES
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
'
U II1 I3 SECIIOI
T E L ’' 3 B A M
Board o* governors
ottne
F e d e ra l B e s e r v e S y s te m
Leased Wire Service
Becefred at Washington, D»0,
WA18GC6^WASH 8XXX 183 MPLS 29-336
VAN FOSSEN
1946 ^
DEC S
wmm
,
BOARD
ESTIMATED EARNINGS TO NOVEMBER 30 ON TREASURY B
OUTSIDE SYSTEM ACCOUNT $ 1 9 0 , 8 1 0 .
■jr
HtLD BY US
:
PETERSON
MK 9TH WD 1ST LN HELP-
,
FOR FILES
M- B. Danish
mr„m-------------
Reproduced from the Unclassified / Declassified Holdings of the National Archives
4 '
\
i
' \,
r HI4J1!G B A M
Bowi*d of Governors
o 1 the
Federal Reserve System
Leased W ire Service
Received at Washington, D.O.
WA28GC79BDWASH
KG 29 3 47
VAN FOSSEN
ESTIMATED EARNINGS TO NOVEMBER 30 TREASURY B IL L S , OPTION ACCOUNT
H
P S BANK $ 1 5 8 , 0 2 0 . •
KOPPANG
M. B. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
r 1* x- u K A M
B o a rd of G o v e rn o rs
ottne
F e d e ra l R e s e r v e S y s te m
5
34
Leased Wire Service
Received at Washington, D.O,
WA40GC12WASH W129 DLS 2 9 - 4 1 Op
VANFOSSEN
THI S REFERS TO Yflnp .Tin FftRAM OF 'HQVfMBER_ I f y
ESTI MATED EARN INGS
FOR 1 94 5 TO NOVEMBER 30 ON TREASURY BILLS HELD BY THIS BANK
OUTSIDE SYSTEM ACCOUTN $100,673.00.
GILBERT.
FOH FILES
M« B. Daniels
....
-----
m»mrr
Reproduced from the Unclassified / Declassified Holdings of the National Archives
rfiLisiUHAM
B o a rd o IQ-q v einor?
f
d'edera!
WA69G94WASH L88 SF 29-353 fieoei^f
VAN FOSSEN
BOARD
REURTEL. 29TH. ESTIMATED EARNINGS ON TREASURY BILLS TO NOV. 30
$1 ,1 0 3 ,1 0 0
SLADE.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEGRAM
B O A R D OF G O V E R N O R S
OF TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V I C E
WASHINGTON
November 29 , 19^5
Flanders - Boston
Sproul - Sow York
Williams * Philadelphia
Godney - Cleveland
Leaoh * Richmond
MoLarin - Atlanta
Young - Chicago
Bails - ft. Louis
Peyton - Minneapolis
Leedy - Kansas City
Gilbert - Dallas
I*y - San Francisco
Please wire to reach Board not later than 10 AM 1ST lovember 30 estimated
earnings to Bovember 30 on Treasury bills held by your Bank outside
System Account.
Vim Possen
Reproduced from the Unclassified / Declassified Holdings of the National Archives
hhj*d
a rm s
ssc iiq i
'OV1 9 1 9 4 5 ^
5-^5. $43
Ho member
If,
19U 5
Mr* I * E« M illa rd ,
F e d e ra l
B*nk Exam iner,
c /o F »d *rs.l StOTFW Bank of IHrw Y o rk ,
New Tork
Now fork*
Deer R u s s t
Mrs. P o r te r as k e d me to 1 s t you knew about any
ohftnpes w hich had been »&$* in t h e prooedure f o r a llo o a tl o n
o f s e c u r i t i e s in t h e System Open Market Aooount sinoe th e
previou s exam ination o f the Mew Tork Bank, there la f
t
4
ft oopy of th e
amended J u » # 8 0 * 1 ^ $ *
f h * a g r # « d upon n jn i i e i m re s e rv e
r a t i o p * r * * a ta g e r e f e r r e d to in paragraphs (ft) and (b ) on
pftge 0 m * « * t a t 35 F *?
e f f e c t i v e July 1 , 19^5# by
ftotion # f th e Federftl 0pe» Market
June 20, 19&5*
I f t h i s I f n o t f tlt you n eed , pla&t# l e t
S in c e r e ly y o u r s ,
M. 2• DanieIs,
?*©tWQi«*al Assistant,
% ’fitiott of Saak Djseration**
Enclosure
F
know.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
’ffiC'j)
i
JJP
FIUSS SECTIC1
AiOV 8
1945
F e d e ra l R eserve Bank
of
Ne w Y o r k
November 2, 194-5'
Dear Mr. Srhead:
We received your letter of November 1. 194ft ^:an^ have today, sent
to the Reserve Banks a copy of tEe'^^putation showing the adjustments
made on November 1, 1945> pursuant to the plan adopted at the meeting of
the Federal Open Market Committee on September 21, 1944* as amended
June 20, 194-5.
Enclosed herewith is a copy of the letter of transmittal
together with three copies of the computation, also copy of the telegram
which was sent to each of the Federal Reserve Banks on November 1, 194-5Yours faithfully,
lobert G. Rouse, Manager,
System Open Market Account,
VICTORY
Mr. E, L, Smead, Director,
Division of Bank Operations,
Board of Governors of the
Federal Reserve System,
Washington 25, D. C.
BUY
UNITED
STATES
DEFENSE
Enclosures (5)
ONDS
AND
CAMPS
R ep rod uced from the U n cla ssified / D eclassified H oldings of the N ational A rchives
MISC.
1 4 0 A - 1 OOM—6 - 4 4
foil
J
F ederal Reserve Bank of New York
Doar 'Hr* Willlwisi
M mmr&mm wifek m* t«l®gr&m
h«r*with
of tk#
tfe# participation® of
tb *
Bwnmbvt I * 1941# I *»#&#•#
*mmI# on KoTtaber X# lf4f iM
f #I#ml Reserve
la the Syeten Open
fttrfcfttUft*
ftmrt faithfully,
>u««v «aaag#r#
.Market
la r fc fc t
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Alwr'B J* FILSS SBCTIOl
MISC. 140A-100M— 6-44
,.QV 8
F e d e r a l R e s e r v e B a n k q f N e w Yori^
1945
J
s w w u n m DEPARTSK8T
MBiV?
Horowbar lf 194$
SMMl
W t rsuorai
?end Ju«t&oat of »rtlcip*lionf la aovormstoat soouritlos hold in £ystoa Aooount
ii bo log aodo today under tho plsa for roallooatioa of Sorornaont eoourltloo adopted by
tho Fodoral 0o*a Koricot Costalttoo on Soptowbor 21, 1944, a* ttaaadod Juno 2 0 , 1945*
Tho
ooaputattoos shooing adjustaonts aado la participation® of tfco sororfcl Rosorro Sanies
ttiillt
oil! bo milod to oil Hosorro Banscs oa Hovoabor 2*
OF
$
OF
$
Tho so confutations indicate an
DfiCftXASX
y » C iw t
la your participation la lntorest~boaring obligations, and on PK-CH^SK
la your r^rticipotion la Troasury bills, asking a not 1*^11111 ^
1
DWOHZA&JL
- “ * ^
u " - *•
this afternoon tho usual coded wire shoving
* ?
g
g
r
“
UJiXM
\
*
ruMvm$
w m *
UUJJMB
Fin.iiwii
Qimm
osnsuw
LE&CH
BMHN&
W U M
- 11
dtsLftliw e&trlea to bo «*4o today,
TZMBmY
BILLS
+ #15,933,000
\ * v*
TOTAL
♦#
6,926,000
- 15,949,000
-
11,408,000
-
27,837,000
-
14,721,000
19.960.000
-
59,014,000
-
78,974,000
ATUITA
6 ,54* ,OOO
-
8,988,000
XG0HQ
CHICAGO
34.750.000
♦ lt||4M|M0
♦
u a , 738,000
DAVIS
St* L09Z8
*
21.634.000
*
32,726,000
-
11,092,000
PEITO#
m m w m
♦
9,60$,000
•
9,514,000
♦
94,000
U K
XAXSAB c m
*■
6,5-20,000
-
7,255,000
735,000
12,31*4,000
♦
5,266,000
7.614.000
u,ias,ooo
♦
79,812,000
illjf
DAT
SAK FRAHCXSOO
3.440.000
♦
59,634,000
73
LU------ CO
OO
s — ^
Boston
P h ila - ClsveNew
RichAtlanta ChieagD
JferiL
-JL&BLI» Allooation of Interest-Bearing Seourities
S t.
j£UUL
MinneJBSJJJ.
Kansas
City
M I m
San
1*8,026
5.188
11.1*76
3.512
1*,510
5.177
2,666
6,1*1*5
2,658
1.275
2.603
2.098
U.618
10.171
618
3.622
765
1,021*
1*09
367
1.215
326
221
330
5W*
930
58.197
3,806
15.098
U.277
5.35U
3.586
3.035
7.660
2.981*
1.1(96
2.933
2,1*1*2
5.51*8
2,385
61
1.055
95
170
71
1*1
5U5
157
62
227
12
69
75.756
76,11*1
5.103
5.181*
18,261
5.602
5.697
7.058
7,208
U.691
19.316
1*,762
3.865
5.906
9.535
9.880
3.615
3.772
1.972
2.051*
3.553
3.780
3.175
3.187
7.31*6
7.W5
E* Excess of *D3W over "C"
17,9^4
1.378
1*,213
1 ,1*20
1.87U
1.176
875
2,220
788
538
81*7
7U5
1.867
100.0
7.2158
23.9952
7*6802
10.0527
6.3510 5.2182
12.7037
1*.7616
2.8388
1*.86US
F* Average daily participations,
per oent, in interest-bearing
seourities in System Aooount
since October 31, 19U0
U.2935' 10.0)469
G* Estimated eami'igs* for year above
expense and dividend requirements-| 17 ,9liU,000 plus estimated earnings
November-December on interest-bearing
securities in System Aooount at
1.016693^ earnings rate, 117 ,168*000-allooated on basis of *F*
35,112
2 ,551*
8 ,1*21*
2,697
3.523
8.230
1.832
U.U60
I.672
997
1,708
H. •G" minus *En
1,156
1*,206
1,277
1.61*9
I.05U
959
2.21*0
881*
U59
861
762 . , 1,661
970,1*69 620,500 561*,390 1 .318,281* 520,251 270,150 506,715
1*1*8.1*52 977.531
61*0,260 557,81*2 1 ,353,031* 1*98,617 260,522 500,195
1*61,356 988,659
-19,960
-12,881* -11.128
17,163
ȣCLAf>SlFIED
Authority
I* Allooation of interest-bearing
seourities in System Acoount
on basis of *ti*
10,103.703
680,329 2.1*75.313
751.539
J. Present allocations
10,103,703
689,336 2 ,1*1*9.601
71*6,998 957.303
-9,007
K* Change in allooations
* ExolualT*
of •®ming*
on Tr**«ury b i l l * .
*25,712
♦U.5U1
+13,166
<6 ,51*8
-5U .750
*21.651*
*9,608
*6,520
t .0 . ID 50I
1.507
3.528
Holdings of the National Archives
P. Current earnings*:
1« Estimated earnings, 19^5,
exclusive of earnings on
Government securities
2% On interest-bearing seourities
in System Aooount to Oct* 31
3. Total
I Declassified
Systea
—
o
c
j> ^cst
cgsttouted ourrent expenses, 19U 5
CL.
2= <C
^|stimated dividends, I9U5
<L>
Estimated expenses and dividends
Page 1
Reproduced from the Unclassified
REALLOCATION OF QOVEHNmSNT SECURITIES IN SYSTEM OPEN MARKET ACCOUNT, NOVEMBER I, 19k5
(In thousands of dollars)
6&MBSNTIAL
OOXFIDKKTIAL
Now
York
PhilaRich
CIsyo Atlanta
mond
dolphia
land
II* AliooatIon of Troaaury Bills
2.235
1.363
2.335
2.061
U.822
3.516
1.139
7U8
1.5li6
1.198
3.66U
82
3,h6U
1*99
209
181*
118
1.209
556
515
-882
61*7
1*06
605
71*5
-51
-251
-121
-112
4682
-ll*l
-88
-131
-162
♦51
903
1*35
1*03
506
318
1*71*
583
1.320.355 1 .1*21,073
68U.570
63U.211
—
—
—
—
L« D istribution o f ostinatod oarnings
on bills for yoar on basis of *F* U8,000
3.W*
11.517
3.686
i*.ai6
3.0t*8
2.505
6,098
M* Earning* to Ootobor 31 on bills
in Systo* Aooount
2U .1429
2,021
1.268
1.823
3.312
2,286
1*908
If* Earnings to Doooabor 31 on bills
in option aooounts (ost.)
18*279
382
10.785
791
350
206
O* Pro rata shars of oamings froa
bills in Systoa Aooount No t .Doo* ("L" ninns *M* and *N*)
5.292
1.061
-536
1.072
1 .15U
P. Adjustaonts duo to oxoossos of
plus mV* oTor *1*
-
-230
♦536
-233
839
831
wm
San
Franoiso#
R. Allocation of Systo* Aooount
bills in proportion to ”Q”
8.526.1149 1.307.765
~
S. Portion that Banks oannot tako
duo to low rosor'vo ratio*
3.008.658
671.752
-
688,358
T« Distribution of *S” to Banks
with highost rosorvo ratios
3,002,658
—
266.023
--
U* Final allooation of Troasury
bills in Systsa Aooount
("R* Minus *S* plus "T")
8,328,1149 636,013
266,023
631.997 1,116,1*96 68U.570 63U.211 1,320,1407 1*32.555 289,551 508.511 389.587 1,1*16,228
8.326,11*9 620,080
380,189
61*7.91*6 1,11*6,383
7U3.58U
-27.887
-59.011*
Prosont allooation
w. Chango in allooation
—
♦15.933
-111*,166
-15.9149
302.577
--
—
1,320.U07
6U3.199 1.136.919
-8,988
796.305
500.1)1*1* 7t*5.9l*5 917.1*81
—
363.750
210.893
—
—
—
237.1*34 527.891*
—
1*65.281
299.065
515.766
-32.726
-9.51U
-7.255
♦183.U88
--
Holdings of the National Archives
Dallas
Chiosgo
I Declassified
Kansas
City
Boston
the Unclassified
Minno*
apolis
Systoa
Q. Adjuitod pro rata sharo of oarnings
fros bills in Syston Aooount
Wo'voabor-Dtooabor
5*292
St,
Louis
Pago 2
R e pw u ced iom
REALLOCATION OF GOVERNMENT SECURITIES IN SYSTEM OPEN MARKET ACOOUNT, NOVEMBER 1, 1 & 5
(In thousand* of dollars)
1.1*16,228
38U.321 1,31*5.1*16
♦5.266
+70,812
III* Total U l o w t i n of Sjnta Aooount Soouritios
z« Fartioipation in Systoa
Aooount (•i" plus •U")
T* Chango in participation
18.U31.852 l£l6,3l*2 2.71*1.336 1.383,536 2,088,96; 130U.870 U98.601 2.638.691
♦6.9.26
-88.U5U
• Basod on not# and doposi* liability and rosor*s figuros
as of oloso of business Ootobor 31» 191*5•
-II.I4D8
-U*.721
-78.97U
-2 .U4O
♦
1148,738
952.806
-11.092
559,681 U015.226
♦9I*
-735
838,039 2.393.759
..... ?.. -.... '
\ ;fu.bj*’-'••
DECLASSIFIED
Authority
o', i n s oi
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEGRAM
» m s s secs ;
i\UV2
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
LEASED W I R E SERVICE
WASHINGTON
i. 19^
louse - Sew fork
This will oonfirm understanding in telephone conversation that
adjustments of participations in System Aoeount will be as follows,
in thousands of dollars*
Interest-bearing
seourities
Treasury
Mils
Total
-9*007
♦15.953
♦6,926
♦25.712
-114.166
-88,454
♦4.541
-15.949
-11,406
Cleveland
♦13,166
-87,887
-14,721
Richmond
>19.960
-99.014
Atlanta
♦6.^48
-8,988
-Zjnlfi
Chicago
-34.750
♦183,468
♦148.738
St. Louis
♦2l.6}4
-38.706
-11,092
Minneapolis
♦9.608
-9,514
♦94
Kansas city
♦6,520
-7.255
-735
Dallas
-12.884
♦5.366
-7,618
San Franeisoo
-11,128
♦70,812
♦59.664
Boston
lew Tork
Philadelphia
•
-78,9?1»
Saead
F
F
db nr.Es
M, B. Dart-ieb
f
Reproduced from the Unclassified / Declassified Holdings of the National Archives
SIC ^ II FILES SECTIO*
hOV 2
1945
1, 1ft#
Mr.
G. Rous«, Vie# President,
F#d«ral R # « r w B*ak 0# Nr*
fiaw Tork 7. *ew Tork.
S i * r Hr* Rou»# t
Slier# i* eneloeed *
showing *d.ju•'te
nant* to be m 4 * ia alloection* of GoT*m»»«it ••ourltios
ia the Syete* Qpe** Market Aooount as of lomember %9 19%5#
prepared ia eeeordwaee nifelt %h# fortmle adopted fey H w
System Open Market Committee on September 21, I9I4L., ti
ajaended June 20 # I9U5 •
Very truly your*.
B* L- s»ead, Mreeter* ^
Dlriiion ©# Bank Of#refloiw7t
Bneloaure
g»it!fJ H
MI1W3MU1»'«|y
FILE
F O B F Z tE S
I
M» B. Daniels
I
Boston
SysfeMft
low
t*
n n B t cxptnw*. 1945
48,026
St,
Minna-
Kansas
■■stalls.....
Dal!«•
touaaUss.
3,2B8
11.476
3.512
4.310
3,177
8,666
6.445
8,658
1.275
8.603
2.098
4,618
618
5,688
765
1,084
409
367
1.815
326
821
330
544
930
C*
58,197 >
3.806
15.098
4.877
5.334
3.586
3,033
7,660
2.984
1.496
8.933
8.448
5,546
8.585 7
81
1.055
95
170
71
41
345
157
68
227
12
69
9.535
9,880
3.615
3.778
1.972
8,034
3.555
5.780
3.175
3.187
7.346
7.415
873
8,880
788
538
847
745
1,867
4*7616
8.8388
4*8646
4-W33
&<QM9
oxponsas and dividends
9* Currant earnings**
1 * Bstia*ted
1945#
•xo1u«It* of earnings on
(tovernasist securities
t« 0% interest-bearing securities
in Sy*tem Aooount Ini 0ot* 31
3* total
/0»Xl^J.
5.103
5.184
18,861
19.316
5,608
5,697
7.038
7.208
4.691
4,768
1 * Sxecss ©f *21* ©if»r *0*
17 ,944 y
1.378
4.818
1.480
1.874
1,176
7-2158
83*9958
*
7*6808
10.0527
F. Average daily participation*,
por cant , in interest-boaring
securities is System Account
sin** October Jl, 1940
VJ4VM
*• *
, /
/
100*0
0 Estimated earnings* for year abo**
DECLASSIFIED
expense and dividend requirements—
*17,944,000 plus estimated earnings
Marembex--December on interest-bcarii *
securities in System Aooount at
1 .016693* H n i & g * rat#, # 17 *168*001
aliooatod on basis of *F*
35.1187
1* Allooation of interest-bearing
securities in System Aooount
on basis of "H*
<F* Pre*oat allooation*
1,678
2,240
884
10 5 0 /
1,708
1,507
3,528
861
768
1,661
8 ,4 2 4
8.697
3.523
1.156
4.806
1,877
1.649
10,103,703 680,389 8.475.313
/
10.103,703 689,336 8.449,601
751,539
970.469 680,300 564,390 1,318.284 580,851
870,130 506.715
448.458 977.531
746,998
957.303
640.860 557.842 1,353.034 498,617
860,522 500,195
461,336 988.659
♦25.718
*4.541
*13,166
-19,960
*6,520
-18,884 -11,188
I* Change in allooation*
Digitized
FRASER
* for
Szelu«lf«
ot •ami.ngn
4«46o
Q .
8,534
17.168 '
1* •a* vim* "I*
Authority Z
'
on Tr*»«ury Mils.
-9,007
959
*6,548
-34,750
♦81,634
459
♦9.608
Holdings of the National Archives
10 171
I Declassified
1 * l* tlm t* 4 dlTld«nd», I 9U5
ss
A.
11ohC1«T*»
Atlanta Chioago
■airil
l«n*
Allooation of Interest-Bearing Securities
Biila*
.jtiau *.
J*C* 1
Reproduced from the Un clayiffkd
mauooatioi or ooramavt securities iw stbtkm o p u jurist ao oo ow t , hovsmber i. 1945
(la thouaaad* ot dollu-i)
90WIBOTIAJ,
CONFIDENTIAL
HBAUU)CATIOU OF GOVERNMENT SECURITIES IM SYSTEM OPEJf MARIE T ACCGUKT, MOVSMBER 1, 1&5
(In thousand* of dollars)
New
Phila
Rich
Cleve«
Atlanta
delphia
land
Tork
mond
II* Allooation of treasury Sills
Kansas
Citr
Dallas
2,285
1,363
2.335
2,061
1*.822
3.516
1,139
71*8
1 .51)6
1.198
3.661*
82
3»^i6U
1*99
209
181*
118
1,209
556
515
•882
61*7
1*06
605
71*5
-51
-251
-12 1
-112
♦882
-ll*l
-86
-131
-162
*51
903
1*35
1*03
506
318
1.320,355 1,1*21,073
68t*,570
631*.211
796.305
Boston
L* Distribution of estimated earning*
on bills for year on basis of *F* Us,000
3,1*614,
11.517
3,686
U.8I6
3 ,01*8
2,505
6,098
M. Sarnings to October 31 on bills
in System Aooount
2l*,l*29 /
2,021
1,268
1,823
3 ,m
2,236
1«908
1# Earnings to December 31 on bills
in option aooounts (est.)
18 ,2
$82
10,785
791
350
206
1,061
-536
1,072
1.15U
^230
♦536
-233
839
O* Pro rata share of earnings from
bills in System Aooount Bo t .Dee. (*L* minus *M* end *!•)
F* Adjustments due to exoesses of
"M* plus "I* over »l*
5,892X
»■»
Q. Adjusted pro rata share of earnings
from bills in System Aooount
Bovemher-Deoember
5 ,292
R. Allegation of System Aooount
bills in proportion to *Q*
s. Portion that Bsnks cannot take
die to low reserve ratio*
T* distribution of * 8 * to Bsnks
#ith highest reserve ratios
831
a,328.lU9 1.307,765
San
Franciso©
Minnaspoils
System
7 9
St.
Louis
P*ge 2
Chloagp
1*71*
583
500,1*1*1* 71*5.91*5 917.1*81
..
«Hraaa
>
C
/
3,002,658
—
671,752
688,358
302,577
—
—
363.750
210,893
237.1*31* 527,89U
__
V* Present allooation
W* Change in alloeation
3 ,002,658
/
266,023
1 ,320,1*07
...
**«>»
—
1 ,1*16,228
f. Change in participation
/
8,328,1149^ 636,013
266,023
631,997 1,118,1496
8 ,328,11*9 620,080
380,189
6^7,9146 l,li*6,383
7 *15,933
- 11 U .166
—
-15.9U9
-27,887
1 ,320,1407 1*32.555 289,551
7l*3,58U 61*3,199 1.136,919 it65,281 299.065
68U.570
-59.01U
63U.2U
-8,988
+183,1*88
J
I8 .k3i.e52 1016,31*2 2,71*1,336 1^83,536 2 ,088.965 3.30U,670 U 98 ,6oi 2 ,638.691
—
/
*6.926
-88,1*51* -11,1|08
* Based on note and deposit liability and reserve figures
as of olose of business Oetober 31# 19^5*
r*\ 0
r
O
-32,726
-9.5U*
C7
508,511
389,587 1,1*16,228
515,766
38U .321 1,31*5,1*16
-7.255
+5,266
+70,812
III. Total Allooation of 8y»t«* Aooount Seourities
X* Participation in System
Aooount (*I* plus *0*)
t-i. »>««
ft
<2
V* Final allooation of Treasury
bills in System Aooount
(*R* minus *S* plus *T*)
St*
O
-H!*,721
-78.97U
-2,UI|0
+11*8,738
952.806
- 11,092
559,681 V>15,226
••91*
-735
838.039 2.393.759
-7.618
+59,681*
35
.CO
>T<
i-*
P5
U"l O
Q
Reproduced from the Unclassified / Declassified Holdings of the National Archives
• r .iji1j& u -tta ifc
Board of Governors
o i cfce '
■j^deraX Beserve System
L e a se d W ir e S e rv ic e
» Becalmed at Washington? D.O,
M s BBC'D I I HIES SBCIIOl
NOV 2 1946
WA16WA8H Si BOS J1-910A
SMEAD
RETEL OCT 50.1945/EARNINGS THROUGH OCT 31,1945 ON
U S TREASURY BILLS HELB BY THI8 BANK UNDER REPURCHASE OPTION,
1310,536.32
'
PITMAN
FOR FILES
M. B. Darnels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
iko'D X» m s s 3E0II0I
A/fL MOV 2 1945-'"“ '
Board ox Governor*
ot tJae
• A
Eeoeifod at Washington. D,u
3
31
NKssf
KAlOKASH 131$ NY 31-444
VAN FOSSEN
BOARD OF GOVI
EARINGS T© OCTOBER 31
BILLS HELD INOPTION ACCOUNT BY FEDERAL
3,942,366.16
ROUSE
f o b f il e s
1ST WD EARNINGS
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
%.
/TmisMGMAM
Bo&rcfof Governors
of tile
Federal Beserre System
l e a s e d W ir e S e rv ic e
j RBCVD I! fllBS SKoJil
,
j 'ML N0V 2
I 3
A
iium a/w 11 *y i/T”
UUI
W
Eeeeived at Washington, B.O.
WA2jWASHS?
PH I t A ©CT 3 * ~ S $ 4 a
VAN r©$SEH
/
REUBTEL OCT 30„
ESTIMATED EARNINGS TO OCTOBER 31
ON TREASURY BILLS HELD OUTSIDE SYSTEM ACCOUNT ARE
$648,738.38
« 4 DAVIS.
FOB FILES
0
M. 6. Daniels
>v
Reproduced from the Unclassified I Declassified Holdings of the National Archives
B lC'fl I t K IES SECSIOl
'i'EXi-Ci (3 f t AJW
Board of G overnor*
o t t iit
^•fvOVg
■
1945
-fN**-'
5?/
fe d e ra l R e s e rv e System -* Leased. W ire -S e rrice _
Beoeivcd at Washington, D.O.
WATtd|6WA3fi IT €LE¥E 3V918
VAN FOSSEN
ESTIMATED EARNINGS FROM JANUARY 1 1945 TO OCTOBER 31, INCLUSIVE ON
TREASURY BILLS HELD BY OUR BANK OUTSIDE SYSTEM ACCOUNT IS $295,779.15
SMITH*
i,
0
FO B r& z ?
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T JE'it 6 B, A M, />,
M of Qo'v-sv&qx*
Q1
Fedar^ 7t
i
Beceivsil at
RICH
WA55WASH RH 41
BWJ'B U H L E S SECTIOl
|\0V 2 1945 /r'~
P
1945 OCT 51 *AM I I S i
!).Cv
mJ
3 1-114 5
VAN F08EEN
EST IMATE®
EARNING tO
OUR BANK WTSIM
06TOBER 31 ©H TREASURY BILLS
HELD
BY
SYSTEM ACC00NT $ 15 6 ,0 6 0 .2 5
NOWLAN.
FOR FILES
M. B. Darnels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
I-
SIC® i i FILES SBOIIOl
'/■'j?
ft® OCT 31 AM 10 26
WA25WASH F9 ATLA 31 -1G0«ft
VANFOSSEN
m m m . mrwtn Jty earsimss for
—
-1 — —
---- -|— I
-------- 1 ■.|
..1..._TJL-..|||,nrirr,—
1945 through octob^r ji .mm treisbry
'
BILLS OUTSIDE SYSTEM AtfG8¥WT $?f,192.73.
MCLARIN.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TSLi^GBAM
~»oard of Gknrernors
o f tiie
•F ed e ral, R e s e rv e B y s te m
Leased. W ire Service
BSO'D I I fixas SECTIOl
NOV 2 1945
S33.
n*.
• ---
Booeived at Washington, D.Q.
w a5ogc3iw ash e x * ce o 5 1-9 3 3
VAN FOSSEN - BOARD
REURTQ^
ESTIMATED EARN INGS FOR 1945 t@ OCTOBER 31 IMCLUStVE ON
TREASURY SILLS HELD BY OUR «B» BANK OUTSIDE SYSTEM ACCOUNT ARE
$2,922,450.
BLACK.
FOB FILES
*
#»
M. B. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
fi
eel of .Goyernors -
o f the
fe d e r a l Beserre B y s te m
Leased. Wire S e rv ic e
BsGeiyed at WasMagton, S.
VANFOSSEN
ESTIMATED EARNIMGS TO 0CT0BER 31 0N TREASURY BILLS MELS BY
MS OUTSIDE SYSTEM ACCOUNT APPROXIMATELY $434,055.00
BUB .
Reproduced from the Unclassified / Declassified Holdings of the National Archives
31
fc
L i « £ * v>.
tec'B Hr tTT^j -
-A
.^oard of ^ o r & m o r h
^e a e m L K e se ln re S ystem
L ea se d W ir e Service.
.Eeoeifed at,WasiiiBgtonj B«0.
WA00fiC24WASH I>9 MPLS >1-316
VAN FOSSEN
'
r
INGS
f^TfiBER ‘
TREASURY BILLS HELD BY US OUKSIBE SYSTEM ACCOUNT T#
ARE $179,983.53
PETERSON.
FOR FILES
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
BAM-
pSic^ XI IX F ILE S
SjBCTIOM
-.mt& of O-OTemors
offci&e
Federal-Beserre
B ystem
Leased 'WlrejServloe
EeeeiYsd at Washington, D.0S
31
m
WB04SOOKD WA3H J18 KC >1-942
VANPOSSlN
E8TI MATES EARNlNGS TO OCT
31
BILLS OPTION ABET
$ 1 3 7 ,5 9 3
KOPPANG.
FOR FILES
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TEliJSG.BAM
*
Board of Governors
ortu e
'%ecferal B e se rre System
Leased Wire Service
leoeifed at Washington, D.0,
lEC’ D I* FILES SECTIOl
A^N0V2
J?.
1946
xT "
1IA32SC46WASH M22 DLS 31-947A
VAN FOSSEN
zj <nJt £vL<j
RETEL OCTWER
E3TIMATED EARNINGS FOR 1945 TO OCTOBER 31 ON
TREASURY BILLS HELDBY THIS BANK 0UTSIBE SYSTEM A0C0BNT ARE
$89,914.00 •
GILBERT.
FOB POES
M. B. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
p> IK PILES SECTIOI
1945
$©■
Received at Washtagwii, D. •
V
/.'I/d.
WA38G28WA8H L? 3F 31"800
BOARD
REURTEL JOTH* ESHMATED EARNINGS
_
—inr-i
—
«
ON
TREASURY BILLS T0 OCT*
31
$ 1 ,0 1 2 ,1 0 0 .
SLADE.
FOR* FILES '
♦
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
j ^TaTtwSm aiS
TELEGRAM
BOARD OF GOVERNORS
I
4
OCT 3 01945
or THE
FEDERAL RESERVE SYSTEM
LEASED WIRE SERVICE
WASHINGTON
October 30 # 19^5
Flanders - Boston
Sproul - New York
Williams * Philadelphia
Gidney - Cleveland
Leash * Richmond
MeLarin - Atlanta
Young * Chioago
Qarls * St* Louis
Peyton - Minneapolis
Leedy - Kansas City
Gilbert * Dallas
Day - San Francisco
I
|
j
Please wire Wednesday estlaated earnings to October $1 on Treasury
|
I
bills held by your Bank outside Systep Aooount*
Van Fossen
F
Reproduced from the Unclassified / Declassified Holdings of the National Archives
E
RD OF GOVERNORS
O F TH E
|
^
f
FEDERAL RESERVE SYSTEM
1
HPT
Office Correspondence
To_______ Mr. Sfyfead______________
Subject
prom_____ Mr. P a n e ls
/ Our files do not show much about why (1) reallocations of
System Account securities have been made as of the first day of each
quarter and (2) a month-end adjustment of Treasury bills in the System
Account is made just prior to a quarterly reallocation.
On June 30# 193&, Government securities held by the indi
vidual Reserve Banks were transferred to the System Account. The
telegram sent to the Reserve Banks on June 29 by the New York Bank
stated '’outright holdings of Government securities of individual
Reserve Banks will be transferred to System Account tomorrow, June
30, at market prices as of eleven A. M* and reallocation of partici
pations in System Account will be effected tomorrow . . .w Since
then quarterly reallocations have been made as of the first day of
the quarter. As an example of the pro ce du re , take the January 1,
1937, reallocation. On December 28, 193&,
Banks ^’
^ere advised
by New York of the change in their participations which would be
made as of January 1 (a holiday). On January 2 they were advised
of the adjustment through the Interdistrict Settlement Fund necessary
to effect the change in their participations as of January 1* On
January If (Monday) they were advised of the amount of earnings to
accrue for January 1, 2, and 3* The accounting procedure adopted
by the Open Market Committee on November 19, 193&, provided for ac
cruals of earnings each day and stated, nIn order to facilitate
handling the System Account, this information will be furnished one
day late except on the last day of the month when two days’ earnings
will be accrued.n Probably the method of making quarterly realloca
tions as of the first day of the quarter was adopted to avoid oonfusion in accruing earnings at the end of the month.
With reference to the second question, the plan for alloca
tion of securities held in System and Option accounts adopted September
21, 19i44-» provides, in addition to the quarterly and monthly (during
the last quarter) reallocations, that ^adjustments when necessary to
restore any Bank’s reserve ratio to the agreed upon percentage will
be made in participations in Treasury bills each Wednesday and on the
last day of each month, unless such day is a reallocation date, based
on closing figures of the previous day, with allowance for any repur
chases.” Ihile there is nothing specific in the file on this point,
it seems safe to say that such an adjustment is made on the last day
of the month just prior to a reallocation to preclude the possibility
of any Bank’s issuing a condition statement at the end of the month
showing a reserve ratio less than the agreed upon minimum. The Board
does not publish month-end figures for each Federal Reserve Bank.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Fed eral Reser v
of
e
Bank
N ew Yo r k
October 3» 194-5
Dear Mr. Smead:
We received your letter of October 1, 194-51and have today sent to
the Reserve Banks a copy of the computation showing the adjustments made on
October 1, pursuant to the plan adopted at the meeting of the Federal Open
Market Committee on September 21, 1944 > as amended June 20, 194-5*
Enclosed herewith is a copy of the letter of transmittal together
with three copies of the computation, also copy of the telegram which was sent
to each of the Federal Reserve Banks on October 1, 194-5*
Very truly yours,
First Vice President.
Mr. E. L. Smead, Director,
Division of Bank Operations,
Board of Governors of the
Federal Reserve System,
Washington 25, D. C.
Enclosures (5)
r
Reproduced from the Unclassified / Declassified Holdings of the National Archives
MISC. 140A-100M— 6-44
F
ederal
Reserve Bank
of
N ew Y ork
3 , Xi45
Jfe*r Hr* Fl**ui«r»f
In
h*r**iUi
sritkour utotfpttm i f d itik r X* IMS# I m®lm*
©f Hi#
m 4« mi
0eU»fc#r X, 194$ ia th#
p*srttelpfttt®n§ i f lit# l# a»nl &»si«rir» a*jfu» ia tb* %•«■£«& Op*m ®ark*i
porUolio.
Very truly yours,
L. &• Rounds
Mr* A*lph i« rUautara, Pf
F«d*r?l
l*Afc <*f 1
&i«Xo«ttn
R ep rod uced from the U n cla ssified / D eclassified H oldings of the N ational A rchives
MISC.
14 0 A - 1 O O M - 6 - 4 4
F ederal Reserve Bank of N ew York
met*
mmsf $£»$ mm m&m&G rmmm m mm. n mm* mmmrn mm m m-mmm wmm%
>4» $ f$ % m im m m %
«£ participation* is*
1* b a in s a t # tofiUay «»I#f tl*# $&«* £** f
#£
il, 3$4i* *• mwm4-m& *fm# t^f X§45*
th« f#4#£*X Op«i
eovputetlon* *fco»l»g
km m i l m t to all
IMfcn is 0eto6«r «u
.In j-our
in
«f |
ill yottr
In
thl* t t t t e r m m
Vtm
h*moN» III fN&rt£ttl$ftil0&*
mt I
|
%
§«#nNi
iiw&m *m m
f&***
afe&ig*£&««*» «& m t m M M
&&X1% mfelnf * ar#$
t o your i e t a l p n r t i e i ^ tio n la th * % * $ * «
t&e m m * l m 4 # 4 w lm
tit*
kmmmt# fmt temk « l l i mmtiv*
V m 4#$nil«4 #
la* t# %m
IBttUj.
t o m
♦ *2XW,000
4 9,662,000
wmjm&tu
♦ 31,7^0,000
♦
u m m
m m M B
-
* %&§m
mm
m m m $
* 86,923,030
«* «i,7t#,i$0
'm*sMW
JrtUttft
+
♦ a , 071,000
1,020,000
§o m
* ■44fj4itien
*
* 48,630,000
m m
ear. urn*
* 7,763,000
♦ !!,!»!«
♦
t,**,**
ttrm
icaMijmui
* 10,961,000
♦ U , 231,000
4
3,763,000
mm
&***& a n
*
- ai,#BttO0
*
|#f74,U00
m i iit
ULUS
♦ 27 ,141,000
* 26,753,000
*
>38,000
nm. t m r n m
*
**■ 9,983,000
* %m$m®
107,000
Ml
if—“
lcJ
Papte 1
CO
CO
, ce _ *
!<*s* ~
O
CM*
Q-f Offi
CL.
8E E^Simat id current expenses, I9 U5
O
Estimat id dividends, I9 U5
System
C- Estimated expenses and dividends
D« Current earnings:
1. Estimated earnings, I9I41?,
exclusive of earnings on
Government securities
2. On interest-bearing securities
in System Aooount to Sept* 30
3* Total
E* Excess of
0 ver
F« Average daily participations,
per cent, in interest-bearing
securities in System Account
since September 30, 19^0
Boston
Kew
Phi la C1eveRich
Atlanta Chicago
de lohi a
mond
York
land
I* Allocation of Interest--Bearing Seourities
St.
Louis
San
Fraa cisc<
11,1408
3 .U91
14,262
3.205
2.653
6.U68
2.62U
1.255
2,536
2 .1 1 9
U.632
10 ,159
616
3,618
76U
1,02U
I4O8
367
1.21U
326
221
330
3UU
927
58,053
3,807
15,026
U.255
5,286
3.613
3,020
7.682
2.950
1.U76
2,916
2.U63
5.559
2,356
79
1,0 72
96
163
68
37
309
160
6U
226
11
71
6 5 ,0 11
67,367
U,507
U,586
16,114.0
17 ,2 12
U.955
5,051
6,209
6,372
U.I37
U.205
3.382
3.U19
8,3614
8.673
3.1SU
3.3UU
1.7U7
1,811
3.120
3 .3U6
2.776
2.767
6,U90
6,561
9.311*
779
2,186
796
1,086
592
399
991
59U
335
U 30
32U
1,002
7*2312
2U.039U
7.6986
10.0560
6 .3I+O8
5.19 26
12.6625
U-7U90
2. bU91
U-8608
U-2779
10.0U21
100.0
2,536
8.U30
2,700
3,526
2.22U
1,821
U.UUO
1.665
wGn minus nEn
25.75U
1,757
6,21(1*
1 .90U
2.UU0
1,632
1.U22
3,104.9
1,271
683,685 2,UU7,U38
712,060 2 .UJ9.260
7 Ufc,30U
-5 1 .BU2
Dallas
3,191
35,068
Change in allocations
Kansas
Oity
U7,Q9U
Estimated earnings for year above
expense and dividend requirements
($9 ,311+.000 plus estimated earn
ings October-December on interestbearing securities in System
Account at 1.012173*^ earnings
rate, 1 2 5 ,7 ^ , 000) allocated
on basis of WFW
Allocation of interest-bearing
securities in System Account
on basis of
Present allocations
Minne
apolis
D EC LA SSIFIED
Authority t
10 .09U .703
10 .09U .703
-25.395
Q.
ID
1,705
1,500
3,522
66U
1,275
1 ,1 7 6
2,520
765,U2 U
956,598 639,689 557,376 1 ,551,892 U9S.139
970,356 63U.U9 U 537 ,32U 1 ,307.750 505,952
260,266
271.23U
U99.757
U69.3U8
U60,953
U33.812
987,756
987.6U9
-19.120
- 13,958
-10,968
-30,U09
♦2 7 ,lUl
+107
+5,195 +20,052
+UU.1 U2
-7.763
999
501
Reproduced from the Unclassified I Declassified Holdings of the National Archives
REALLOCATION OF GGVEhlllEKT ShJlKITIrS IX SYSTr.M OPEN L^KE? ACCOUNT, OCTOBEK 1, 1 ^ 5
(In thousands of dollars)
System
Boston
New
York
II.
Phi la Cleve
Rich
Atlanta
de lphia
land
mond
Allooation of Treasury Bills
Page 2
Chicago
St.
Louis
Minne
apolis
Kansas
City
Dallas
San
JVancisc
L* Distribution of estimated earnings
on bills for year on basis of WF*
1*8,117
3,U79
11,567
3.701*
U.839
3,051
2.U99
6.095
2,285
1,371
2,339
2,058
U ,832
II* Earnings to September JO on bills
in System Aooount
21.756
1,810
1.1U7
1.613
2,952
2 ,01+5
1,70 0
3.11*5
991
65 U
1,378
1,0 70
3,231
N* Earnings to December 31 on bills
in option aooounts (est.)
18,556
368
10,798
773
359
202
10 U
3.5U6
513
218
16 U
111
1,200
0* Pro rata share of earnings from
bills in System Aooount 0ct«Deo* (wLn minus *MW and "n ")
8.0 2 5
1,301
-378
1.318
1,5 2 8
80U
695
-598
781
1*99
797
877
1+01
-114
♦378
-ll*3
-16 6
-87
-75
♦598
-85
•5h
—86
-95
-W*
1.175
1,3 6 2
HI
620
696
I1U5
711
782
357
71)8,220 6146,996
72 6 ,3 0 6
1461*.,376
7U.959 816,0 50
372.5U5
P» Adjustments due to exoesses of
"M" plus WN" over "L*
—
Q. Adjusted pro rata share of earnings
from bills in System Account
October-Deoember
R« Allooation of System Aooount
bills in proportion to "Qw
8.0 2 5
1 ,1 6 0
8,37l*,l*50 1,210,510
—
1,226,163 1,1421,305
4
S« Portion that Banks oannot take
due to low reserve ratio*
r
V*
2 ,1465,023
525.766
556,073
2 8 3 ,7U9
291.771
100,81*6
202,798 1*21*,'820
Distribution of WSW to Banks
with highest reserve ratios
2 ,1465,825
Final allocation of Treasury
bills in System Account
( " R w minus *Sn plus WT")
8 ,57U.1*30
681*.71*1*
329 .1*51* 670,090 U29.53U
71*8.220
61,
6 ,9 9 6 1,165,319
1*1*2,557
283,530
5 3 9 .1 6 1 391.230 1.3U5.595
Present allooation
8 .37U.1*30
652,687
177,065
855.11*5
61*5,976 1,258,091
1*26,95U
269,299
560,996 1*17.985 1.553.583
+152,589 +5 1 .7 5 0
-6,799 -86,925
+1,020
-9 2 ,7 7 2 +15.625
III» Total Allooation of System Account Seourities
+1U.251
-21,855 -26,755
W» Change in allocation
X* Participation in System
Aooount (nIn plus *UW)
Y* Change in participation
+32 ,0 57
638,3140 1,158,333
1 8 ,1469,155 1.373.1*29 2 ,7 7 6 .8 9 2 1 M 6 ,391+2,085,932 1.387.909 1*2014,372 2 ,5 1 7 ,2 1 1
+8,662
♦Based on note and deposit liability and reserve figures
*3 of clo3^ o f business September $0 , 19^ 5 *
1,165,319
329,1*514
+130,51*7
+12,650
-22,757
-81,728
+21,072
-1*8,630
971.050
91*0 ,71*6
+7,860
-9,986
51*3.796 U33S.918 8 5 2 .18 5 2 ,5 5 1 ,5 5 1
+3.265
+8,571*
+388
-9,881
DECLASSIFIED
Authority tT. Q . jt)50l
Reproduced from the Unclassified / Declassified Holdings of the National Archives
REALLOCATION OF GOVERNMENT SECURITIES IN SYSTEM OPEN MARKET ACCOUNT, OCTOBER 1, I9U 5 \
(In thousands of dollars)
CONFIDENTIAL
Reproduced from the Unclassified / Declassified Holdings of the National Archives
October X, 19h5
U r . Robert G. Rouse, Vioe President,
Federal Reserve Bank of lf«w York,
Hew York 7, Hew York.
Dear Mr. Rouset
There is enclosed a statement showing adjustments
to be made in allocations of Government seourltles in the
System Open Market Aooount as of October 1, I9 k 5 , prepared
in accordance with the formula adopted by the System Open
Market Committee on September 21, 19UUf M amended June 20,
19U5*
Very truly yours.
E. L* Smead, Birector,
Division of Bank Operations.
gnolosure
\
wBULOCAfion or
| Systsa
ummtnm m sm m
QPE» MARKET ACC OUST, OCTOBER 1, 19 ^$
(In thousands of dollars)
Boston
Iwr
Tork
I.
ClavefilohAtlanta Chisago
nond
land
Allooation of Int.r.at-B.«rlng Saourltloa
Phlladelphia
St.
Louis
Pag* 1
Minn#*
spoilt
Kansas
.
San
Franoisoo
Balia*
.
A* Batiatted ourrant expanses, 1945
47,694
3,191
11,1*08
3,101
4,262
3.205
2.653
6,1*68
2,621*
1*255
2,586
2.119
4,632
9. IstisMtad dividends, I9U5
10.159
616
3.618
761*
1,021*
1*08
367
1.212*
326
221
330
3U»
927
58.053
3.807
15.026
4.255
5,286
3.613
3.020
7.682
2.950
1,1*76
2,916
2,1*63
5,559
2.356
79
1,072
96
163
37
309
160
64
226
11
71
65.011
67.367
u .507
4.586
16,11*0
6,209
4.137
6,372
4,205
3.382
3.419
8.364
8.673
3.184
3.3l*4
1,747
1,811
3,120
3,346
2.776
2,787
6,490
17,212
4.955
5.051
9.314
779
2,186
796
1,086
592
399
991
394
335
430
324
1,002
7.2312
24.0394
7.6986
10.0560
6.3408
5*1926
12.6625
4-7&0
2.81491
l*.86oe
2*-2779
10.01*21
'/
Sstiaated expenaes and dividends
15. Current earning*»
1. Sstiaated earnings, 1945,
exclusive of earnings on
Q o w n a m o t securities
2. On interest-bearing securities
in Systea Aooount to Sept. 30
3* total
I. gxcess of ^
o w r *t*
fm Average daily participations*
par cent, in intero 3t**bearing
••ourities in System Aooount
sinoa Septeaber 30, 1940
100.0
Sstiaated earnings for year above
axpansa and dividend requirement*
(#9,314,000 plus esttaated earnings Ootober-Deoember on intorestbaaring saouritias in Systea
Aooount at 1.012173< aaminga
rate, #25 ,751**000) allocated
on basis of *?•
H# •S* ainus *E*
I* Allocation of interest-bearing
saouritias in Systea Account
on basis of *«*
J* Prasant allocations
K* Changa in allooations
OO
6,561
DECLASSIFIED
Authority
35,068
2.536
8,1*30
2,700
3.526
2,221*
1.821
4,41*0
1.665
25.754
1.757
6,21*1*
1,90U
2,1*1*0
1.632
1,1*22
3,1*49
1.271
10,094,703
10,094,703
688,685 2,447,438
712,060 2,1*99,280
-23,395
-51,81*2
999
664
t
1,705
1,500
5,522
1.275
1»1?6
2,520
746,304 956,398
765,424 970.356
-
19,120
0 • 1D5 0
•
639,689 557.376 1.351.892 1*98.189 2 6 0 , 2 6 6 I199.75? 460,953 987,756
634.1*94 537,324 1,307,750 505.952 271,231* 469, 31*8
♦1*4.11*2 -7.763 - 1 0 , 9 6 8 +30.409
+5,195 +20,052
-13.958
1 M. E
■
i .r.n
-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
gmnmmuu
miAoomc* or o o n m n taoanxm » r o m mat moan tacam, ootomm l, 191*5
QC»m*I?IAL
\
P*g# 2
(X* tlwwmnd* of itlitn)
Systea
Boaten
Bm
T«rk
II.
BlokCl*r»>
Atlanta Chloago
dalphia
land
Allooation of Treasury Bills
St.
l«4i
:
lUnnsw
apolis
XttMMMI
Dallas
$i*r
San
franoisoo
L. Distribution of estlaated earnings
on bllla for yoar on basis of *?*
1*8,117
5.U79
11,567
3.701*
U.839
3.051
2,1(99
6.095
2,285
*.371
2,339
2,058
u.832
I* gainings to September 30 on bills
in Systea Aooount
21,736
1,810
l,lk7
1.613
2,952
2,01*5
1,700
5.11*5
991
654
1,378
1,070
3.231
V* Barnings to Beoes&er 31 on bills
in option aooount# (ast.)
18,356
yOO
10,798
775
359
202
10U
5.51*6
5X5
218
161*
111
1,200
8,025
1,301
-378
1.518
1,528
801*
695
-598
781
1499
79?
877
1*01
-1*4
♦378
-11*5
•87
-75
♦596
-85
•86
-95
-1*1*
717
620
711
782
557
726,306 WU.376 71*1.959 816,050
372,5^
0* Pro rata share of aaraings fro*
bills in Syataa Aoooant Oet.~
Deo. (*L* ainns *M* and *1*)
P. Adjustment* duo to axoaasao of
*11* pint "I* 9i»r *L*
Q. Adjusted pro rata shara of earning*
from Mila Im Systoai Aooount
Ootobor-Doooaba r
8,025
1.175
X,l60
1,562
1. Allooation of Systo* Aooount
bills in proportion to *Q*
8,37U,1*30 1.2X0,510
1 ,226,16; 1^*21,305
8« Portion that Banka oaonot taka
dio to lev raaorto ratio*
2,1465,823
525,766
>.073 291.771
1 distribution of *S* to Banka
with higha*t resonio ratio*
2,1*65,823
U. Final allocation of Treasury
billa in Systo* Aooount
(*»* Minna *«* pins *f*>
e.57i*.U30
▼. Present allooation
8.37UA30
W. Change in allooation
329A5U
f. Change In participation
283,7i«9
180,ali6 202,796 i*2i*,820
971.050
1,165.319
Total Allooation of Systea Aooount Securities
18,l»&9,133 1,373,1*29 2,776,892 1J*16,391*2085.932 1.587.909 ^20l*,372 2,517,211 91*0.71*6 51*3,796 1058.918 852.183 2.531.551
♦fl.662 *100,51*7 *12,630 -22,757 -81,728 *21,072 -1*8,650 *7,860 *5,263 *8,57l* *388
-9,881
♦Baeed on nota and depeaIt liability and roaarw figures
aa of elose of business September 30 , 19U5*
,220 61*6,996
W»5
60lt.7UU 329.U5U 670,090 1A29.55U 71*8,280 61*6,996 1.165.319 «*2,557 285.550 559.161 J91.250 1.31*3.595
652,687 177,065 636.3I4O W38.333 835,11*3 61*5,976 1,258.091 1*26.931* 269,299 560.996 1*17.983 1.553.503
+32.057 *152.389 *31.750 -8,799 -86,923 *1.020 -92.772 *15,623 *U».231 -21.835 -26,753 -9.988
HI.
X* participation in Syatea
Aooount ("I* plus *0*)
696
DECLASSIFIED
Authority
.Q.
IP) 5 0 )
FOR FILES
ML B. Danie-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
rELEGRAM
... ..
BOARD OF GOVERNORS
(
OF THE
i
’
* f
h’’T
:J - I : S j
lH4h
FEDERAL RESERVE SYSTEM
j
.. — ---- in~ rnnrr- ■„
LEASED W IRE SERVICE
WASHINGTON
October 1, 1945
Sous* - Hew York
fhi« will oon fir* understanding in telephone oonversation that
adjuatnents of partioipations in Systeai Aooount will be aa follow*,
in thousands of dollars*
Interest-bearing
•eeuritlet
treasury
Mil*
total
Boston
-23.395
♦38.057
♦6,662
lew Yortc
-51*842
♦152,389
♦100,547
Philadelphia
•19,120
♦31.750
♦12,650
Cleveland
-13.958
-8*799
-22,757
♦5*195
•86.925
•81,726
Atlanta
♦20.052
♦1,020
♦21,072
Chioago
♦44. 142
-92,772
-48,630
-7.763
♦15.623
♦7,860
Itbmeapall*
•10,968
♦114,251
♦5.265
Ian*aa City
♦30,409
-21.835
♦8,574
Balia*
♦27.141
-26,755
♦388
♦107
*•9.988
-9.8S1
Riohmond
St. Louie
Ban Franelae©
Satead
I
„ -
Reproduced from the Unclassified / Declassified Holdings of the National Archives
ot QbTerxmx-t
.
'*
till©
B a se rre System
leases Wire Service
19© OCT
AM 9
•v------
iooaiTsd at Washington, D.O,
35
9 9
INMBK NL.I
BEtTD II FILES SECTXCI
WA25WASH C2
PH ILA OCT 1 -9 3 3 A
OCT 2
1945
VANFOSSEN
REURTEL SEPT . 28, EARNINGS TO SEPTEMBER 30 ON TREASURY B IL L S
HELD OUTSIDE SYSTEM ACCOUNT
ARE $380,^41.89
D A V IS .
*
FOB FILES
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
r* 11*33
B o w 'd Of Q t O T B T n O V h
ot tiie .
federal Beserre S y stem
1 m T*x*a. WIT* Service
t.joaived
IS ashisgtoEj - 1 *
WA15G03WASH D2
CLEV 1 -8 ^ 7
\c>»h 0C1
L, m
9
2"
HBC’ D IS TILES SEOTIO*
° A
'
OCT
2
1945
VANFOSSEN
EARNINGS ON TREASURY B IL L S HELD BY OUR BANK OUTSIDE SYSTEM ACCOUNT
FROM JANUARY 1 , TO SEPTEMBER 3 0 , 1 9 4 5 ,
INCLUSIVE $ 2 6 5 ,2 4 7 .4 5
S M IT H .
FOR Fil-t
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
1945 SEP 29 PM 12 4 6
'
T E L E G BAM
Board of Gkrraraors
'Of fc&fc
i ' & a Reserve- System
Wire Service
it ifasMsgtonj D,0S
EEO'D IK FILES SECTICI
OCT 2
V
WA55WASH B 169 BOS 2 9 -1 2 1 4
1945
i
SMEAD
r?
A-'w
RETEL SEP 2 9 -1 9 4 5 EARNINGS THROUGH SEP 30 1945
.
f
ON U S TREASURY B IL L S HELD BY T H IS BANK UNDER REPURCHASE
OPTION $ 2 7 9 ,4 9 7 .5 2
J
PITM A N .
FOR
files
M. B. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
t e l e g b a m
oard of G o T e m o r s
BIC2*1> II m i s SBCMOl’i
■ o f tfte
Federal .Reserve System _
Leased, W ir e S e rv ic e
P iCf-
' I
OCT 2 1941
Received at WasMngton, D.O.
B- t—
6 S 0L 29 L .P M‘ 1 14
WA^OWASH B 19 > NY 2 9 - 1 09p
VAN FOSSEN
BOARD
EARNINGS TO SEPTEMBER 30 ON TREASURY B IL L S HELD BY FEDERAL RESERVE
BANK OF NEWYORK OPTION ACCOUNT
$8,025,627.6$.
H A R R IS.
FOR FILES
M. B. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEG RA M .
B o a rd of G o v e rn o r-
1945 aFP 29
ot tHe
Federal Beserve System
PM 2
jBEOJD II
1 ■■ # r j o j
■Leased W ire Service
Eeowred at Washington', D.O.
*;
37
files SBCfXOI
p -jq^c
r/ OCT 2 1945
/\^ry
WB13WA3H F 113 ATLANTA 29 128P
VAN FOSSEN
r’' ,;'/■/ /-■: *
.
,
REURTEL SEPTEMBER 2 8 EARNINGS FOR 1 9 4 5 THROUGH SEPTEMBER 29 ON
TREASURY B IL L S OUTSIDE SYSTEM ACCOUNT $ 6 6 , 7 1 7 . 7 2 - THRU SEPTEMBER
30 $ 6 7 ,1 1 7 .7 1 .
MCLARIN.
fo r fil e s
M. B. Daniel*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
------ •
TEL.BG ft AM
oard of Governors
_ O f $ 3 20
bss ' d is six® shs
OCT 2
■
1945
F ederal Reserve System
Leased W ir e S e rv ic e
’ Eeceived at WasMngkmf D.O,
WA84G60WASH GX142 CGO 2 9 -1 2 4 6
SEP
VAN FOSSEN - BOARD
29 ' PM 2
02
/'
fc&\
REURTEL SEPTEMBER 28 EARNINGS TO SEPTEMBER 20 INCLUSIVE ON
TREASURY BILLS HELD BY OUR BANK OUTSIDE SYSTEM ACCOUNT ARE
$2, 6^7,814v.
BLACK.
FOR FOES
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
f945 § P
•' i HiJLijb U tt A
II FIIB5 SECTIOI
Board of G o v e r n o r
OCT 2 I94S
ot tile
.a*ederal B ©s©rT8 B y ste*£
Leased. "Wi r s Bervice^
Eeoeived 'at WasMng'sos^
j,
-/
//
WA90G8^WASH Hi.06 STL 29-103
VANFOSSfiN
,
V
I'
REURTEU TODAY EARNINGS FOR 19 4 5 THROUGH SEPTEMBER 30 ON TREASURY
B IL L S HELD BY US OUTSIDE J i l l E
JU
SYSTEM ACCOUNT $ 4 0 6 ,6 8 7 .7 7 " '
,'
BUB.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
r E L ii G K A M
B oard of Governors.
•Ol a,£*b
f e d e r a l .R e se rve B y s te m
L e a se d W ir e S e rv ic e
Received af Washkgton; Ds0(
1945 '
29 PM 2
08
BES'D IS ?ILH5 SBC1ICS
OCT 2 . 1945
: /[ j
WA87GC27WASH 135 MPLS 29-1239
VAN FOSSEN
EARNINGS ON TREASURY BILLS HELD BY US OUTSIDE SYSTEM ACCOUNT ARE
$166,131,37
AS OF SEPTEMBER 30
PETERSON.
fo r
f il e s
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
.ELiiQBAM
,
Board of Governors
BES'D II fIlHS SBCWCI i
OCT 2
ol the
1945
federal Beserve System
Leased W ire Service
BeceiYed at Washington* DsG*
5 SEP 29
36
WA28GC41BDWASH J39 KC 29-1020
VANfOSSEN
ESTIMATED EARNINGS TREASURY BILLS THIS BANK OPTION ACCOUNT TO
SEPTEMBER 30, $118,329
..J
KOPPANG
FOB FIXES
M. B. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TJ2LKG.RAB .
B oard o t Grove:rnor&
ot*tne
fe d e r a l R e s e rv e S y stem
1945 SEP "29 PM 3
35
Leased W ire Service
Received at Washington, D.O.
Eia?D il fiiiis
OCT 2
WA25G^8WASH
1946
DLS 2 9 - 2 1 6p
VANF0S8EN
■' . pfc
RETEL SEPT 28 /ESTIMATED EARNINGS F 0 R \19 4 $ TO SEP 30 ON TREAS
B IL L S OUTSIDE SYSTEM ACCOUNT ARE $ 8 1 ,4 O 2 > 0 0
G ILB E R T .
FOR Ftt.ES
M. B. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
EEdsB II Flili SECHOI
T 'E L S G R A .1
B o a rd of G o ve rn o rs
of
^
OCT 2
1945
i9 pM
5 50
the-
if e&eral B ©serre B y stem
Leased.; W ir e S e rv ic e
@ 4 5 SEP
Eooeived at WasMngton, D«0»
WA55GC83WASH L54 SF 29-1234
BOARD
iI
‘
VAN FOSSEN
■
REURTEL 28.
SLADE.
■
EARNINGS ON TREASURY BILLS TO SEPT. 30, $918,191.80
•
1
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
LEASED WIRE SERVICE
WASHINGTON
September 28, 1945
Flanders - Boston
Sproul • Hew York
Williams - Philadelphia
Gidney • Cleveland
Leaeh - Richmond
MoLarin - Atlanta
Young - Chioago
Davie - St* Louie
Peyton - Minneapolis
Leedy - Kansas City
Gilbert - Dallas
Day - San Franoitoo
Please wire to reaoh Board not later than 10 AM 1ST October 1
earnings to September 30 on Treasury bills held by your Bank
outside System Aoooxmt•
Tan Foesen
Ified Holdings of the National Archives
HSC'B I* H U B SBCIIOI
SEP 1 41945 3
September 12, 19U5«
Board of Oevernors
Mr. Sinead
On tho most recent reallooation of the Systam Open Haricot
Aooount whloh was effeotlve July 2, 191+5, tho Federal Reserve Bank of
Boston roooiTod an additional allooatlon of $150,396*000 of Government
soouritios and, of course, had a oorrosponding roduotion in its reserves.
Prosumably booauso of tho reoont roduotion in required reserves to 25
per oent, it did not ooeur to the Federal Reserve Bank of Boston that
this might result in a defleienoy in its reserves against deposits,
the only reserves whloh can be oounted as reserves against deposits
being gold certificates, if any, held by the Federal Reserve Bank and
the Bank's balance in the Xnterdlstriet Settlement Fund.
As a matter of faot, the above allooatlon of additional
sceurltics to the Federal Reserve Bank of Boston and the payment therefor
resulted in a defleienoy of #91,865,000 in reserves against deposits*
This eould have been avoided by transferring a similar amount from the
Agent4s Gold Certificate Fund to the Xnterdlstriet Settlement Fund and
pledging additional aoverament soouritios with tho Federal Reserve
Agent as collateral for Federal Reserve notes. The defiolcnoy in reserves
against deposits thus oroatod was continuous thereafter until September 9 « *
when it was dlsoovored by employees of this Division.
The Federal Reserve Banks are required (Federal Reserve LooseLeaf Service #5d61) to furnish a oortified statement at the end of each
calendar year with respeot to doficienoios, if any, in thoir deposit
reserves, exoopt that if a deficiency ooours a report thereof is to
bo made in duplioato promptly after the end of tho month in whloh the
defleienoy existed and the appropriate tax paid to tho Treasury. At
the request of tho Treasury the Board certifies to the accuracy of all
reports from the Federal Reserve Banks regarding defielsnolos, if any,
in reserves against deposits » Although normally tho Federal Reserve
Banks submit a report on doficienoios only at tho close of a calendar
year, it has been our praotioe to inspect the dally balanoe sheets of
the Federal Reserve Banks periodically in connection with the annual cer
tification. This inspection of tho daily balanoe sheets has been done,
as a rule, during slaok periods so that there has oommonly boon an
interval of a month, more or less, before the ohoek has boon made in
this Division on reserves as of any given time. In the present ease,
tho absonco of oortsdn employees on leave has resulted in this interval
being considerably greater than normal* In the future, it is intended
to have the amount of reserves available against deposits oaloulatod
w s r m m
between a
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Toi
Board of Governor■
- 2 -
dally for eaoh Federal Recerve Bank as of the preceding day from the
data wired by the Federal Reserve Banks for use in compiling the con
densed dally statement of oondition of the Federal Reserve BankSo By
so doing, any oversight by a Reserve Bank in this respeet should be
disoovered by m in time to have appropriate transfers from the Agent's
Gold Certifleate Fund to the Interdistriet Settlement Fund effected as
of the preoedlng day thus avoiding a deficiency*
The above desoribed situation was brought to the attention of
the Federal Reserve Bank of Boston by telephone this morning and the
Bank has Made ttie necessary transfers of reserves as of yesterday so as
to avoid a deficiency in reserves against deposits as of that date.
The amendment to Seotion 16 of the Federal Reserve Aet reducing
required reserves against Federal Reserve notes and deposits to 25 F*z*
oent per annua became effective June 12, 1945* and the Board sent to th*/ Federal Reserve Banks a letter dated July 30, 1945* fixing, effective
July 30, 1945# the penalty tax on deficiencies below 25 per cent in
reserves against Federal Reserve notes and against deposits» The rates
previously in effeet applied to deficiencies below 40 per eent on reserves
against Federal Reserve notes and 35 P*r oent on reserves against deposits.
Since the former rates were inapplicable after June 12, it is proposed
to suggest to Boston that the rates applicable to reserve deficiencies
from July 30 on be applied to all deficiencies during the month of July.
MINUTES O N **#
SOS IS 1945
-
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Reproduced from the Unclassified I Declassified Holdings of the National Archives
r V p . I I FILES SECTIOH
BOARD OF GOVERNORS
OF THE
FEDERAL R ESERVE SYSTEM
W ASHINGTON 25. D. C.
A D D R E S S O F F I C IA L C O R R E S P O N D E N C E
T O T H E B OARD
July 12, 1945
Dear Sir:
At the. meeting of the Federal Open Market Committee on
June 20, 1945> the second sentence of paragraph 2(b) of the allo
cation procedure was changed to read as follows:
’’If, between the weekly and month-end adjustments
a Bank’s reserve ratio approaches the legal minimum,
the Bank may sell to the Bank or Banks having the high
est reserve ratio or ratios, a participation or partic
ipations in Treasury bills held in its Option account
for a period of days to expire on the following Wednes
day or month end, whichever is earlier, except that such
adjustments will be made in the System account in the
event that a Bank does not hold sufficient bills in its
Option account.”
In order that your Bank may have the statement of proce
dure readily available in the changed form, a copy of the statement
containing the revised sentence is enclosed,
Secretary;.
Enclosure,
BUY TO PRESIDENTS OF ALL FEDERAL RESERVE BANKS
VW1TBD
Reproduced from the Unclassified / Declassified Holdings of the National Archives
^ C ’D XI TIKES SECTIOI
JUL13 '
ALLOCATION OF SECURITIES HELD IN SXSTHt AND OPTION A ICOOHTS
'
Reallocations Quarterly in Each Year Until October 1, and
Monthly for the Remainder of the Year, and Adjustments
of Participations in Treasury Bills in System Account
and Option Accounts Weekly or More Often When
Necessary to Adjust Reserve Ratios ________
1.
Interest-Bearing Securities
(a)
Allocate a sufficient amount of interest-bearing securities held
in System account to each Federal Reserve Bank to cover expenses
not already covered by accrued earnings from interest-bearing
securities and by estimated earnings from other sources, exclud
ing all Treasury bills.
(b)
Allocate a sufficient amount of additional interest-bearing securi
ties to each Federal Reserve Bank to cover dividend requirements.
(c)
Allocate any remaining interest-bearing securities to each Federal
Reserve Bank on the basis of average daily holdings of interestbearing securities in System account for the five years ending
on the last day of the preceding month.
2.
Treasury Bills
(a)
Allocate Treasury bills held in the System account in a manner which
will give to each Bank its pro rata share (based on the percentages
used for the allocation of interest-bearing securities in Para
graph 1. sub-caption (c)) of estimated earnings on holdings of
Treasury bills in both the System account and Option accounts pro
vided that, if the earnings on interest-bearing securities are not
sufficient to cover expenses and dividends, the allocation of
Treasury bills will first be made in accordance with the formula
in Paragraph 1. sub-captions (a) and (b).
Treasury bills will not
Reproduced from the Unclassified / Declassified Holdings of the National Archives
2
be allocated to any Bank in an amount that would reduce its re
serve ratio below the percentage agreed upon from time to time
by the Federal Open Market Committee and the Banks.
The portion
of Treasury bills that any Bank or Banks are unable to take, owing
to a low reserve ratio, will be allocated to the Bank or Banks
having the highest reserve ratio*-.
(b)
Adjustments when necessary to restore any Bank’s reserve ratio to
the .agreed upon percentage will be made in participations in
Treasury bills each Wednesday and on the last day of each month,
unless such day is a reallocation date,* based, on closing figures
of the previous day, with allowance for any repurchases.
If,
between the weekly and month-end adjustments a Bank’s reserve
!
ratio approaches the legal minimum, the Bank may sell to the Bank , !
or Banks having the highest reserve ratio or ratios, a participa
tion or participations in Treasury bills held in its Option account I
for a period of days to expire on the following Wednesday or month
end, whichever is earlier, except that such adjustments will be
made in the System account in the event that a Bank does not hold
j
sufficient bills in its Option account.
j
Banks will utilize Treas-
ury bills for adjusting reserve positions before selling a partici
pation in interest-bearing securities held in the System account.
All adjustments in participations will be handled through the
Manager of the System Open Market Account and Banks will advise
■^Allocations to be made in such amounts as approximately to equalize
the reserve ratios of the Banks to which bills are thus allocated.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
3
him promptly of any participations in Treasury bills held in
Option accounts they repurchase.on days other than Wednesdays
and month ends.
Whenever a Bank does not have its pro rata
share of the.Treasury bills in the System account, its participa
tion will be restored on the succeeding Wednesday or month end
to the extent that its reserve ratio permits.
3*
Profits and Losses on Sales of Securities
Allocate profits and losses on sales of securities to each Federal
Reserve Bank on the basis of average daily holdings of interestbearing securities in System account for the five years ending
on the last day of the preceding month.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
' d}“
. I/"''
PECD W RECORDS SKTidffl
Federal R
eserve
B
APR 24 1968
ank
A';.
^ Zi '.v - j ./"j
S* 'W
o f New Y o rk
w ~'.
July 3, 1945
Dear Mr. Smead:
We received your letter of July 2,
and are sending to the
Reserve Banks, under todays date a co^Tof the computation showing the
adjustments made on July 2, 194-5, as of July 1, 1945, in participations
in the System Open Market Account, pursuant to the plan adopted at the
meeting of the Federal Open Market Committee on September 21, 1944, as
amended June 20, 1945.
Enclosed herewith is a copy of the letter of transmittal to
gether with three copies of the computation, also copy of the telegram
which was sent to each of the Federal Reserve Banks on July 2, 194-5•
Yours faithfully,
Robert G. Rouse, Manager,
System Open Market Account.
Mr. E. L. Smead, Director,
Division of Bank Operations,
Board of Governors of the
Federal Reserve System,
Washington ^5, D. G.
Enclosures (4)
http://fraser.stlouisfed.org/
Federal
Reserve Bank of St. Louis
i
"
Reproduced from the Unclassified I Declassified Holdings of the National Archives
W
MISC. 140A — lOOM— 6-44
F
SEC. DIPT.
ederal
Reserve Bank
of
N
ew
APR 241968
York
HHB1*0*8
* RECORDS SECHONl
rou 2, 1945
PUSA3E SJ58D THE F0LU3KIMQ TELHJRAM TO BACH TOEHAL KSSER*S BANK AS XMBICATED BELOWi
Readjuataent of participations in GoT©*na*nt seeuritlos held in System Aooount
is being made
to d a y
as of July 1 under the plan for reallocation of Government securities
adopted by the Federal Opm Haricot Committee September 21, 1944, as amended Juno 20,
1945* The computation* showing adjustments saade In participations of the several
Reserve Banks will be mailed to all Reserve Banks m July I* These computations indicate
IMCBSASE
an
in your participation in interest-bearing obligations, an
mcm$m
a
p m p 9* *
of I
in your participation In Treasusy bills, making a net
In your total participation In the Syatoa Aooount* four bank will
receive this afternoon tho usual coded wire sihov&ng^the dfctailed entries to be made todsy
as of July 1* Although these entries are to ¥• aad^^nNite records as of July 1 the
transfer of funds will bo
in th fi cleaWngs of/Ju3y
T B B A SO H
TOTAL
ftTTXg
9^9lJtX$0
♦
141,004,000
*
150,395,000
\ a f $ 4 8 ,o o o
♦
194,102,000
*
179,054,000
CLEVELAND
• 9,941,000
♦
290,645,000
♦
280,704,000
T.IEilflg
m x m m
-
9,819,000
♦
165,374,000
♦
155,555,000
m c U h»
ATLANTA
♦
1 5 ,552,000
•
9,677,000
♦
5,875,000
XOOIKi
CHICAGO
♦
45,697,000
*
455,985,000
-** 410,288,000
B A fI S
S T . L O U IS
♦
13,893*000
4*
125 ,368,000
♦
P U T O li
M IN N EAPO LIS
-
4,732,000
♦
44,321,000
TJRiiWy
HAHHA& CITSC
- 23,801,000
♦ 136,897,000
- 2,319,000
♦
94,434,000
♦
92,115,000
- 28,744*000
*»
229,105,000
-
257,849,000
fy U ID E B S
BOSfOH
WTO.TAU&
PH ILA D ELPH IA
G irW K T
G IL B E R T
DAX
SAN FRANCISCO
\
*
i m
♦
139,261,000
39,589,000
♦ 113,096,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
•/
MiSC.
140-B-24M -11-44
J u ly 37i9A 5
Dear Mr* Flanders:
In accordance with »y telegran of July 2# 1945, I e n d o w
herewith conputation of the readjustments made on July 2* 1945
of
July 1, 1945» in the participation© of the Federal Reeerve Banks in
the System Open Market portfolio.
Xours faithfully,
Roberts. Rousef Manager,
SyateJopen Market Aeoount.
Mr. Ralph E. Flanders, Preside*
Federal Reserve Bank of Breton#
Boston, Ma8eachufi»tt«„ /
\
1
O&VHDSNTIAL
oo
CO
Q
«—
O
^
CD
CM
A* S t i l t e d lurrent expenses, 19k5
n
8* HitimJlted iividends, 19 k5
Q
(In thousands o f dollars)
System
Boston
Page 1
New
Phila Cleve
Rich
Atlanta Chicago
mond
land
York
delphia
I* Allocation o f interest-bearing securitie 0
St,
Louis
Minne
apolis
Kansas
City
Dallas
San
Franeisoo
3 ,1 5 6
2,580
6,2U3
2,61*1
1,262
2,1*61
2,028
U.5U9
1 ,0 1 C
U05
365
1,2 10
325
220
J21*
338
927
U,227
5 ,22 ^
3, ^
2.9U5
7,k53
2.966
:,Ub2
2,605
2,366
5.U76
931
91
173
69
31
257
180
76
2k2
13
65
2,831*
2,9lU
10,237
11,16 8
3,155
3,2U6
3.935
U.ice
2,6k2
2,712
2,111
2,1k2
5,273
5,530
1,93k
2,16k
1,112
1,188
2,020
2,262
1,753
1,766
k .16 9
h,23h
13,653
881*
3,617
981
1 ,11 k
850
803
1,923
802
29k
5U3
600
1,2k2
2 ,606,335
160,757
690 ,k93
1^7,275
212,665
162,267 153,29k
367,105
153,103
56,125
103,660
llk,5kl
237,100
7-2556
2U.15 U8
7.7207
10.] 183
5.123k
12 .5615
k-7120
2.8726
k-883k
k.2636
10.0229
bearing securities ($8,829,603,0001
less ft2,606,385,000) on basis of
6 ,223,218
"G*
•1*51.532 1,503,206
k30,k76
629,68k
392 ,kk9 319,151
751,729
293,238
178,768
303,905
265,333
623 ,7k7
I . Total allocations
8 ,829,603
620,209 2,193,699
667,751
8li2,^k9 5ck,7l6 k72,k'i5 1,lk8 ,83 U kk6,3k1 23k,393
k0 7 ,565
379,87k 860,8k7
J. Present allocations
6 ,82q ,603
610,898 2,183,328
682,799
352,290
56k,535 k56,893 1,103,137 k32,kk3
239,^25
k31,366
382,193
+9,371
.-15,0143
-9,9kl
+13,393
-k,732
-23,601
C» jitlasted »xpenses and dividends
T
Jurrent earnings:
1* Estimated earnings, 19^5,
exclusive of earnings on
Government securities
2. On interest-bearing securities
in System Account to June 30
3* Total
B. Excess of "Cn over WD3*
?• Allooation required (on basis
of 1.039118# earnings rate) to
produce earnings July-December
equal to "E"
G. Average daily participations,
per oent, in interest-bearing
securities in System Account
since June 30, 19k0
146,990
3,185
11,166
3 ,U67
ic, 096
613
3,599
760
57,086
3,798
1U.735
2,208
80
Ul .225
U3,U33
100.0
k ,212
6.3062
.
H. Allocation of remainder of interest
K. Change in allocations
-
*9,391
-9,319 ♦15,552:
♦U5.697
889,591
“2,319 '-28,7kU
D EC LA SSIFIED
Authority *£\ Q . j t ) 5 0 f
Reproduced from the Unclassified I Declassified Holdings of the National Archives
■3
?O
UJ
CO
REALLOCATION OF GOVERNMENT SECURITIES IN SYSTEM OPEN MARKET ACCJUNT, JULY 1, 19k5
oomDwnuL
Systom
Boston
York
RiohClorom u Atlanta
dolphia
laad
aond
II« Allocation of Treasury bills
Page 2
Chioafo
8t.
Louis
Minne
apolis
City
Dalis*
FraaoUo^
U7.773
3.1*66
11.5(40
3.688
U.831*
3.013
2.1+50
6.001
2.251
1,372
2.333
2.037
1+.788
M. Earnings to Juno 30 on bills
in System Aooount
13.963
1,128
1,126
972
1,810
1.21*8
1.098
2,097
553
377
811
651
2,092
N. Earnings to Dooombor 51 on bills
in option aooounts (est.)
18,308
276
11.205
773
29I+
90
90
3.533
1+1+8
171+
122
106
1.195
15#502
2,062
-791
1.943
2,730
1.675
1,262
371
1.250
821
1 ,1*00
1,278
1.501
--
-100
"791
■9k
-133
-61
-61
-18
-61
-68
-62
-73
1,81*9
■ 2.597
1,591*
1 ,2 0 1
353
1.189
1.332
1,216
1,1*28
831,61*5 626,607
161*.171
620.31+7 1+0 7 .1+80 69U,950
63 I+A36
7U5.039
103,282
206,887
Pro rata share of oarnings from
bills in System Account JulyDeoember ("L" minus "M* and •&")
P. Adjustments due to exoosses of
"M" plus "N" over "L"
Q. Adjusted pro rata share of earnings
from bills in System Aooount
July-Doo. ("0* minus "P")
15,502
R. Allocation of System Account
bills in proportion to 11Q*
s.-
Portion that Banks oan not take
due to low reserve ratio*
1,9 6 2
..
8.087.965 1 ,023 ,61*5
--
1,163.962
216,118
T. Distribution of nS** to Banks
with highest reser-ve ratios
1,163,962
Final allocation of Treasury
bills in System Aocount
("ft" minus "S* plus WT”)
8,037,965
807.527
8,087,965
666,523
V. Present allocation
W. Change in allocation
961+,692 1.35U,953
279,512
Participation in System
Account (”lH plus nIT" )
Y» Change in participation
H+1.710
781
92.773
861,150
U97.378
302,812
685,180 1 ^ 31,273
831,61*5
626,607 1,01*5.321 1+73.637 301*.198 602,177
1*27,51+9 ipl+7,851
1*91,078 91*0,628
666,271
636,281* 1.501,306
333,115 1,276,956
*9k.hlh -229,105
+ll*l,00l* -1*97,373 +19 U .102 +290,61*5 *165,3714
III.
Xm
123,680
-I4O
-9,677
353.269
-1*55,985 +125,368
1*65,280
+ld*,32 l <-136,397
Total allocation of System Account securities
16,917,568 1,1*27,816 2,193,699 1,352,931 2P73.622 1,386,361 1P99,052 2 ,19 !*,155 921*.976
+150,395
259,877
-1*67,507 +179,051* +280,701* +155,555
+5,375
-1*10,288 +139,261
539 ,0 9 1 1 /109.71*2 307,1*23 1 ,908,698
+39,569 +113,096
+92,115 -257 ,81*9
* Based on n o te and d e p o sit l i a b i l i t y and reserve f i g u r e s
a s of c l o s e of b u s in e s s June 29, 19U5»
DECLASSIFIED
Authority £ \ Q , |0 5 0 1
the Unclassified / Declassified Holdings of the National Archives
L* Distribution of sstimatod oarnings
on bills for year on basis of 8*
Reproduced'tiom
BKAUAGilDI OP QOTBIMMBrT 8BG0RITB8 IV 8Y8TSK O I B M1RKXT ACOOOIT, JULY 1# 1*1*5
(la thousands of dollar*)
Reproduced from the Unclassified I Declassified Holdings of the National Archives
L *
1949'
3S3, 3 ^ 3
Jfh
July 2, 19^5
Mr. Robert 0. Rouss, Vie® Pro 8idsnt,
Fodsral %i«*rw Bank of Bow York,
*sw York 7* *sw York.
Dsar Mr. Kouiti
Thor* la snolossd a stateratnt showing adjustments
to be mads in allooations of (foTsrnnont ssouritlss In ths
Systsm Opsn Market Aooount as of July 1, 19U5* prepared In
aooordanee with ths form la adopted by ths Systest Opsn Market
Coaalttee on September 21, 19U*, as amended Juns 20, 19l*5*
Vsry truly yours.
I* L . Sinead, D ir e o to r ,
D iv is io n o f Bank Opsrations*
Enolosure
aufrbmnw.
m u u u m fm * o r a o n m a m r n o c a i n u u t u t u o m n u k s t agoovwt,
tfe$tUMMkd< <Wf j f r l l l f f )
Boston'
fiystoa
>9*
fwrfc
1*
4« l* t ia * t a d
m*rm% «xpa&«o«# 2$i£
§• tv tla ftia i diritfomU, 19U§
0. l l l l i f t l t i
oxpoataa
m4 diTidonda
f t a r m t ••urttlag»t
I* s t t i a a t * * oaraing*, 19U$»
• x tlu tiv s o f sa»mlngs m
Qovrnmn* aoouritiaa
2- 0a iat# r*at~b*aring ao au ritia*
In iy a to * Aosorat to Juao |0
I * fa ta *
I * I**#SS # f *0* # W *!§•
f * AXlooati«s roqtitra* (on b a tIt
•f 1.0391Idj( oarnings rat#) to
produaa oarainga ,Tuly-D*o«afcor
a * m l t# *•*
f» Avaraga d aily p a rtia l fa tte n s*
par o a s t, in tataraat-feaafiiig
saau ritloa in Syatoai Aoeoaat
aiaoo *raa |0# 19^0
¥.9 9 0 '' 5.iw
J.
Proaant allooation a
I* Qmb|i in a lla sa tiw is
n ,M
3 A 67
U.218
3.156
Atltat*
Ghlaago
i . i?l*5
Saga 1
n.
Saw
X1SI34K
OlHy
fra n a iiio
••aurltta*
8.580
6,ab5
2,61*1
1,868
84t01
8,088
ao
381*
538
b.Sfc
6l|
5,999
760
x.oio
1*05
365
1.2X0
J2J
57.086 < J.79«
llt,7*5
kj&I
3,888
3,561
2,9b5
7.1*53
2,966
1,1*82
2.805
2.366
5.1*76
173
69
31
837
180
8i«8
15
65
8,080
8,868
1.755
1.766
51*3
600
10,096'
10.837
11,168
n
mm
m
*m
ll * ™
3.81*6
5.935
U.108
3.617
981
1.11b
8,«oe/
ao
951
ia » M s /
« .« « »
lilAa^ 2,91b
13.653 x
88b
/
8.«*.385 168.757
100.0/ 7.2336
S* AUa«ati«ci o f raaai&tftr ©f into r« at m
baarlng aaourttlaa ( t a #S29#6O3,0QO
X««a $ 2 , 606, 505, 000) on b a sis of
»§»
6,883.818
I* fatal a llo o a tio n *
mu-
g
YSUW
#
. tjoluhl a
'%
A
^l
IM
am i
Allooation o f in to r-oat-baar tag
m ,1
8,61*2 8,111
8,711 8,11*8
a snm'
5.530
1.9*4*
2,16b
76
)
1,118
1,188
K>3
1.983
808
89b
830
690.1*93 187.875 8X8.665 168,867 153.29U
2b«15b8
7-7®7 10.1183
l»5i.55a 1,503.806
1*80.1*76 689, 68k
6.3068
5-1281*
398,1*1*9 319.151
367,101 155.103
12.5615
2*.?X80
8.8786 l*-88Jl* U.8636
-I5rf«fc| r * * , l t t 9
“7"
DECLASSIFIED
*
Authority g . o . I D 5 0 )
*15.558
1 .8U8
10.0889
781.789 893.838 178,768 303.901 *65.333 683,71*7
680,889 2,193.699 667.751 81*2.510 55b,7l6 1*78.1*1*5 1,11*8,83b bb6,3bl 83U.893 107.565 379.87b
8.889,603 610,898 8.183,888 688,799 8 fS #f9& 56U.535 166.893 1.103.137 liJia ,)■).« 839,685 1*31.366 388,193
«9.»71
t ’i S
56.183 103.660 iib,5bi 837,180
8.889
X «9.391
m
*15.893
4 *,7 3 *
-83,801
-8 .3 1 9
FOB FILES
M. B. Daniels
860.81*7
889.591
-8 8 .7W*
% » ta *
J,. Blatributien of ectiaated earning*
m bill* for year on ba*i» of *0*
147*775
K* taraiag* to Juae 30 oa Mila
itt Syatea Aooount
13^3
I* Xarainga to Deoeaber 31 oa billa
im option aooount* (oat*)
18,30®
u. Fro rata ahare of eemiage frea
bill* in Syatea AeoeiiBt JulyU k a a ia V M
/ " f i a la u a
l
Deoeaber
("t* ainu* *11* an4 M*1*)
15 #50$
/
/
i ,m
»
3.688
1,126
972
2,251
1.372
8.333
2.037
4.788
MI0
l,2i*8
1,098
t,097
553
377
811
651
2.092
90
9©
3*533
1*1*8
1%
122
108
1.195
1,262
371
1,250
821
lj »00
1.278
1,501
id
61
1*0
68
62
73
333
1.189
781
1.332
1,216
1.1*28
391*
/
2.062
-791
l>9k3
a ,730
100
791
8.087.965 1.023.61*5
S. Portion that taka oaa aot take
Sue to low roaorto ratio*
1,163.962 x 216,118
T. Distribution of *8* to Bank*
with highest reaerte ratio*
1.163.962 7
M75
81
2*597
l*9A
620.31*7 1*07,1*80 69i*.950 63b,l*36 71*5.039
103,282
92,773
8.087.965 / 807.527
8 ,087.9657 666,523
206.887
302,812
861,150
1*78,637 30U.198 602.177
1*27.51® 1/31*7.851
1*65,280 333.1151.276.956
*125.368 ♦14,321 *136.897 *91*^34 -229.105
353.269
259.877
total alloaatioa of Syatea Aooouat «eeurltle*
/
16,917.568 1,1*27,816 2,193.699 1352.931 2073,622 IJ86.36I1P99.052 2.191*.155 92U.978 539.091 1£09.?I|2 807,1*23l£0a,69«
— / *150.595 -1*87.507 ♦179.05-!* *280.701* *155.555 *5.875 -1*10.288 *139,261 *39.589 *113.096 *92.115 -257,8li0
a Baaed oa note and depoait liability and reaer*e figures
a* of eloaa of bnsinas* June 2 9 , 19^5*
11*1.710
279.512 123,680
III*
7* Change ia participation
1*201
/
Y» Change in alloaatioa
1# Participation in Syatea
Aaoenat (*|* plua *TJ*)
Balias iFranoiaoo
6.001
773
1* Allocation of Systea Aooount
billa in proportion to *Q*
Xanaaa
City
2.1*0
11,205
i,8&
Minna**
»p»ii*
3.013
*76
1.968
St*
Louis
2
t,83U
/
Q* Adjusted pro rata afeare of earnings
froa bill« i& Syatea Aooount
July-Boo. ("0* ainus *F*)
15,502
¥• Fre*ent allocation
11 .5U0
flaga
Atlanta Ohloa**
***
F* Adjuatavnt* due to excess** of
S r plus *»* otor *h*
$• Final allocation of Treasury
billa in Syatea Aooount
(•*• minus *S» plus «f*)
Alla*
loots*
i, i?l*5
D EC LA SSIFIED
Authority j f , Q . 1 D 5 0 /
/ •
Reproduced from the Unclassified / Declassified Holdings of the National Archives
m i A o c A T D i of m r s w m a n aicrairas » a n n a opmt iardt aoooott, m x
thousand* of dollar.)
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEGRAM
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
LEASED W IRE SERVICE
WASHINGTON
July 2. X9U5
Rout* - low Tork
f h i t w ill oonfira understanding in tolaphono oorvarsation that
adjustments o f particip ation s in System Aooount w ill bo as follow s,
in thousands o f d o lla rs«
Interest*bearing
soou ritios
Treasury
M ils
Total
Boston
♦9.391
♦ ll*l,OQt*
♦ l$>#395
low York
♦ 9.871
**
- 1*87.507
Philadelphia
1®7.378
- 15.01*8
♦19U.102
♦ 179.051*
Clove load
- 9.9la
♦290.61*5
♦ 280,701*
Richmond
- 9.819
♦ 165,57!*
♦155.555
9.677
♦5.875
Atlanta
♦ 15.558
Chioago
♦1*5.697
- U55.9S5
- 1*10,268
S t. Louis
♦ 15.893
♦ 185.568
♦ 159,261
Minneapolis
-1».7J8
* V*.581
♦59.589
Kansas C ity
- 25.801
♦ 156.097
♦ 115.096
- 8.519
» 9U.U51*
♦92.115
- 88.7UU
889.105
- 257.81*9
Dallas
Han Fran oisoo
-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
/v. ,»
^MJt,
T
U K A M
Board
of G o v e r n o r * :
of the
JUL 3 1845,
federal Reserve System
j
^
e
a
s
e
a
-
^
Beceived; at Washington, B.O.
WA29 BD WASH B7 BOS J 0 - 9 5 2 A
SMEAD
RETEL JUNE 29i 194,5 ESTIMATED 1945 EARNINGS THROUGH JUNE
30 ON U S TREASURY BILLS HELD BY TtilS BANK UNDER REPURCHASE
OPTION $177,0^6.44
PITMAN.
10 35
y hi
r
- - - - - - - - - - - - - - - -
Reproduced from the Unclassified / Declassified Holdings of the National Archives
T & ±j U irt A M
B o a r d of G-OTemors
or uie-
FederalKeserre System
/
WA32WASH B9 NY 3 0 -9 5 5 A
VAN FOSSEN
BOARD
ESTIMATED EARNINGS FOR 19 4 5 TO JUNE 30 ON TREASURY BILLS HELD FRB *
OF NEWYORK OPTION ACCOUNT $ 5 , 1 2 4 , 0 0 0 .
ROUSE.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
/ tilXW
■- T i.:;,i..i
Board ot
.
, 'fz'T
tpcsivea a,t
WA33WASH Cl 3
-
^
1S4S
i ...
^,=.v
.
. ' OT
'
JUL 3
rt A
hr
*.ii,
I'A
4
&.30
M
10
36
PHILA JUN 3 0 - 1 0J2A
VAN fOSSEN
-r~:,
REURTEL JUNE 29,, ESTI MATED EARNINGS YEAR TO JUNE
30 ON
TREASURY B IL L S HELD OUTSIDE SYSTEM ACCOUNT ARE $ 3 7 9 ,5 7 9 .6 6
MCILHENNY .
i
FOB FILES
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
WA21G41WASH D 17 CLEV 3 0 - 9 4 2
VANKOSSEN
■ Lj^iM r
'■ ■- ' ■ '
REPLY WIRE: ESTIMATED EARNINGS FOR 1945 TO JUNE 3 ° ON TREASURY
'*
BILLS HELD BY OUR’ BANK OUTSIDE SYSTEM ACCOUNT IS $ 1 6 9 , 3 8 0 .
SMITH.
FOR FILES
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T I L B G S 'A I
of Gknrsraora
OJ
Federal 'Be,
r**t System
Leased. Y, ^ k,mo* vic e
Beoeived at Washington, D.0«
WA43WASH RH 28
'
VAN FOSSEN
RICH
3 * *# 30-1110.
'
<
((■f 1•'/ -I-*: ""''f ’’ '■
RETEL\
ESTIMATED EARNINGS FOR 1 9 45 TO JUNE 30 ON TREASURY BILLS
HELD BY OUR BANK OUTSIDE SYSTEM ACCOUNT $ 8 2 , 5 1 2
GUTHRIE.
FOB FILES
M. B. Darnels
r--------------------- — -------- ----------------------,-------- :--------------- ------------------------------------------------------------------------------- -
Reproduced from the Unclassified I Declassified Holdings of the National Archives
X Jl2 jLl
Board ot Qweontiwr*
Federal. R eserve
Leaded. 'W ire 8 e r vri'>
)
- Ilecsived at Washington, lU/
WA06WA5H p i 26
ATLA 3 0 - 1 245P
VAN FOSSEN
RFURTFI. JUNF 2 9,.
ESTIMATED EARNINGS FOR 1 9 4 5
TO JUNE 30
ON
TREASURY BILLS HELD BY US OUTSIDE SYSTEM ACCOUNT $ 4 8 , 2 4 7 .
MCLARIN.
_
FOR FILES
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T E L E G BAM.
.Board of G-ovemors
of t&e
r e e le d ! J U ^ jrv e S y s te m
1
teel*
-
1
:e S e rv ic e
©45JUN 30 «*'«• 17'
.
■-
:.'i a
it-i
\*ushiagtoa, IM)«'
/A
WA46G17WASH GX27 CGO 3 0 - 9 4 $
VANFOSSEN.
BOARD
REURTEL ESTIMATED EARNINGS FOR 19 4 5 TO JUNE 30
INCLUSIVE ON
TREASURY BILLS HELD BY OUR BANK OUTSIDE SYSTEM tiSBBM M * ACCOUNT
ARE
$ 1 ,836,896
BLACK.
FOR FIIE3
M. B. Daniels
•*
•
Reproduced from the Unclassified I Declassified Holdings of the National Archives
I i’U i.j -ii* u
t t A iV«.
board ot 0-OTeraQrfc
oi mt
I
rectey&l B ©serve System
L ease d W ire Service,.
Beoeived at WasMngton, D*0.
WA27GC49WASH H8 STL 3 0 - 9 0 7
VANFOSSEN
ESTIMATED EARNINGS &BBK# FOR SIX MONTHS OF 1 94 5 TO JUNE 50 ON
TREASURY BILLS HELD BY US OUTSIDE SYSTEM ACCOUNT APPROXIMATELY
$502,000
HITT
fo r h ie s
M. fi. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
'©dera&Beserre
ys
s'*:eix>
'©derai ■B esarv© B*»y
X
L ea sed W ir e Service
Received
at WasMngto&r B*u«
(945 JUN 30
W A 0 4 GC91WASH
Pftf j
39
145 MPLS 30-1248
VANFOSSEN /
E STIMATED EARNINGS FOR 1945* TO JUNE 30 ON TREASURY B I LLS m m
OUTSIDE SYSTEM ACCOUNT $ 1 1 5 ,486.96
PETERSON.
FOR FILES
M. B, Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T S L E 8 BAM. B o a rd of G o v e rn o rs •
ot the
F ed eral B e s e r r e Systero
Leased-Wire Service
Beodiir@d a t Washington, X>.0.'(
M 5 M 30 AM It
-^
l
t8
I***" '
4 -’ 'n
|| "
, h :| ^ ^ ' 5
•- 4 '
WA47GC96BBWASH J3& KC 3 0 - 9 5 4
VANFOSSEN
ESTIMATED EARNINGS FOR 1 94 5 TO JUNE 30 ON TREASURY P IL L S , OPTION
ACCOUNT $ 7 6 , 9 9 6
KOPPANGE.
[
FOR FILES
M- B. Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TE'LUGKAM •
B oard o i G overn ors
ot m e
ij'edem i B e s e r v e System .
Leased W ir e S e rv ic e
.
Received at WasMsgtpn, D.O*
WA56GCT5WASH M11 DLS 2 0 -9 5 8 A
VANFOSSEN
-/i j*
RETEL vMME„29-f ESTIMATES EARNINGS FOR 1945; TO JUNE }Q
ON TREASURY BILLS HELD OUR ACCOUNT ARE $ 5 0 , 7 3 4
GILBERT.
f o b f il e s
fh. B.
Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
f^LiHOEAM
' ,c$oard at O oremors
JUN 30
n r v.m -
^•ecteral ¥ „
Lea®
AM II
rid.ce
Received at was&mgtcm, B.O.
!'U ^
V..*
v ■
.
n tu*
&
WA4-5GCI0WASH L3 SF 3 0 - 8 0 3
VAN FOSSEN BOARD
'/f
JJ' ,
REURTEL 29TH. ESTIMATED EARNINGS ON TREASURY BILLS
TO JUNE 30 $ 6 ^ 4 ,0 0 0
15
Bystem
EARHART.
FOB FILES
M
B, Da’o iels
r
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
BOARD OF GOVERNORS
OF TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V IC E
WASHINGTON
Jun« 2 9 , 19U5
Flandors - Boaton
Sproul - How York
Williams - Philadolphia
Gidnoy - Clovoland
Loaoh • Riohaond
MoLarin - Atlanta
Young - Chioas;o
Davis - S t . Loui*
Poyton • M innoapolls
Loody - Kansas C ity
G ilb e rt - D allas
Day • San Fran o lso o
Please wiro Saturday estimated oarnings for 19U5 to Juno 30
on Troaaury bills hold by your Bank outslrfo System Aooount*
% b Foss on
TELEGRAM
B O A R D OF G O V E R N O R S
O F TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V IC E
WASHINGTON
June 21, 1945.
Flanders
Sproul
millsds
G14nqy
Leach
McLarin
Young
Davis
Peyton
- Boston
- New York
- Philadelphia
- Cleveland
•> Richmond
- Atlanta
Leedy
G ilb e r t
Day
- Chicago
- S t. Louis
- M inneapolis
- Kansas C ity
- D a lla s
- San Francisco
At the meeting of the Federal Open Market Committee
yesterday at which the Presidents of all Federal Reserve Banks
were present, it was agreed unanimously, pursuant to the provision of paragraph 2 (a ) o f the procedure now in e ffe c t f o r - the
allocation of securities in th e System open market account and
pending further action by the Feder^J. Open Market Committee, th a t
beginning July 1, 1945> Treasury b i l l s would not be a llo c a te d to
any Federal Reserve Bank in an amount that would reduce i t s reserve
ratio below 35 per cent.
By unanimous vote the second sentence of paragraph 2 (b )
of the allocation procedure was changed to read as fo llo w s i
"If#
/
between the weekly and month-end adjustments a Bank1 e reserve
ratio approaches the legal minimum, the Bank may s e ll to the Bank
or Banka having the highest reserve ratio or ratios, a participa
tion or participations in Treasury bills held in its option account
for a period of days to expire on the fo llo w in g Wednesday or month
end, whichever is earlier, except that such adjustments will be
made in the System account in the evsnt that a Bank does not hold
sufficient bills in its option account**
Reproduced from the Unclassified I Declassified Holdings of the National Archives
FEB 141946-
1,
R e a llo c a tio n o f s e c u ritie s
M r. Leecfcr, Chairman o f a S p e c ia l Committee, presented a re p o rt o f
i t s Subcommittee on R e a llo c a tio n o f S e c u ritie s in the Open M arket Account. In
subm itting th is r e p o r t, which recommends no change in the a llo c a tio n form ula
a t the present tim e , M r. Leedy.stated th a t the Committee had no other sugges
tio n s except th a t the m atter should n o t be considered as closed and th a t i t s
co n sid eratio n can be renewed when co n d itio n s w a rra n t.
\
This re p o rt was accepted and approved.
2*
Contingency reserves
M r. Leedy a ls o presented a re p o rt o f the same Subcommittee, which
agreed th a t as a m atter o f p rin c ip le i t is d e s ira b le th a t funds be a llo c a te d
to contingency reserves only to provide f o r genuine contingencies to which the
a llo c a tio n bears a reasonable re la tio n s h ip . The Subcommittee a ls o agreed th a t
on the average the present contingency reserves are excessive by th is standard.
The Subcommittee suggests:
\
(l)
That the normal maximum fo r contingency reserves
s h a ll be $3 m illio n or 25 % o f combined surplus
(S e c tio n 7) and contingency reserves-, w hichever
is g re a te r;
(2 )
That no a d d itio n s be made to contingency reserves
except when they a re below th is standard j and
(3 )
That no bank which has reserves above the
standard s h a ll be asked to reduce them by
tra n s fe r to su rplus.
Ifr» Leedy s ta te d th a t the re p o rt o f the Subcommittee was presented
s o le ly fo r the in fo rm a tio n o f the Conference and th a t the S p e c ia lV o m i1 1 e e ^
I
i t s e l f recommended no a c tio n . He commented, however, th a t the members o f the
I
Special Committee concurred in the view expressed by the Subcommittee th a t the *
purpose o f contingent reserves is to provide fo r genuine contingencies to which
the account should bear a reasonable r e la tio n s h ip .
Thereupon, the re p o rt o f the S pecial Committee was accepted f o r
fu r th e r co n sid e ra tio n , and the Committee discharged w ith a p p re c ia tio n .
,
$~Ta fi
£>//$/ ^
of
CLf-v
I
|
-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
BOARD OF GOVERNORS
O F TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V IC E
WASHINGTON
May 2 9 . XSk5.
Hardy
X*ns*« City
I hmim ao oorroetio a i or ohangoa to suggoat
in th# M*y 26 draft/of tho *Minutof of Mooting of 8vboosasittoo oa Relocation of Soouritio* in tho Opon Markot
Account,"
Saoa4
Reproduced from the Unclassified I Declassified Holdings of the National Archives
May *>, 1945
Attached is rough draft of the minutes of
May 19th meeting.
Please send any corrections or suggestions
promptly as possible,
Charles 0. Hardy
Reproduced from the Unclassified I Declassified Holdings of the National Archives
9 '
j
...
▲ y 24,
s'
I
?£
I
,?3 "Vv^"T
tr-»
.. -j
ox I - ^
k it o t -s of
isssf& a o? straoi-.aiTKE on m w iiocm oR
OF SlCCfRITIES III IKE OH2N MARKET ACCOTJM
' T"
111# Coa&ittee sset In Rooa 2019 f office of tho Board of Governors,
Washington, I). C., May 1?, 1945, at 10 a.m.
Present: Messrs. C* 0* Hardy, Federal Reserve Bank, Kansas City, Chainaan
Karl Bopp, Fadaral Reserve Bank, Philadelphia.
V* K» Bowaan, Federal Reserve Bank, Atlanta
w. D* Gantry, Fadaral Beserve Bank, Balias
and
Robert 0* House, Federal Reserve Bank, Hew Tork,
marabera of the Comalttee, and 1* L» Smead, Board of Governor©, associate
member* Also present b invitation: Messrs. M* A. Harris, Federal Reserve
Bank of MewYork, and J . K* Tan Fossen of the staff of the Board of Governors*
The agenda consisted of consideration of two topics: (1) the formula for
allocation of securities in the Open Market Aooount, and (2} the policy of the
several Reserve banks with reference to accumulation of contingency reserves*
1* Allocation* The Committee considered certain criticisms which had
been offered concerning the present plan of allocation, ana reviewed suggested
plans prepared by Mr* Dolley of the Federal Reserve Bank of Celias and by
Mr* Hardy*
WED, on notion o f Mr. Rouse, seconded by ISr* Bopp, to rcooausend no change
in the allocation formula at the present time*
2* Contingency reserves* It was agreed that as a matter of principle it
is desirable that funds be allocated to contingency reserves only to provide for
genuine contingencies to wfcich the allocation bears a reasonable relationship.
I t was also agreed that on the overage the present contingency reserves are
excessive by this standard*
WPIB, on motion o f 'lr. House, seconded by Mr* Bopp, that the Cosaittee
suggest {1} the nosaml maximum for contingency reserves shall be 3 million
dollars, or 25 per cent o f combined surplus (Section 7) and contingency reserves,
whichever is greater, (2) that no additions be made to contingency reserves ex*
cept when they are below this standard, and (5) that no bank which has reserve#
above the standard shall be asked to reduce the© by transfer to surplus.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
f e j r w i yt\ ar mrt'.'M m
of ti*
KXtSimnr r r n m t m
famt
$» §♦ M i f
Tfeo foxiowtiig 14* 6* «#• *iM tt«d fo*
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It ie «&agwrti6 tty*t i f mdMMm of tfe# Ooimltto# find tint to
m lt% m
g xim to tfco a*«fcta@t m p im bo
to ««oh
of tho
12ty If#
ao?mittoo to ea^-i&ito to®*! m & i w t t
If* Dollo^o
o^gott* two oltoiwtliro b»io» of i&Xoo&ilfmt
nn^ftl3ri total m m fc* os# total not *«*&• Total oooot# in » voa&fe n n m off
ability to ooawy 9«MUrttlO«»
total r*ot mrtb 1ft & IM#, 300*020 of ofell&ty
to oorajr th# *iofc of oopitfd Xo«*o««' It to #tiigo»to& tb*t taotooO of %wm%im
thoeo m «ltm«U*» sotttMo of *Umm%tirn& thm msfotm $0£t&*li0* 0 tmtmIm
utM$Xm in offoot to total aot north bo **•& £ot ttUoootiixg fc&0Mrirt»*0tfl8&
ooouvitioo* *hi«h iawlvo oats* *i«k of
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to
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of fimwemmto # m M M m tmM mmt Mm f«it t t m fm m im
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that oft^lt«l
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<mitt«^ i« **iistw»ot^^piBg #omia?itl#«t^ ^ 4^ ofetio^ly
doon sot mpmsmsm hm&im m m m m&llmhl® tm tlio p m m m m o f b lllo * T o ttl
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t%m & 9 sttsiofe 4® m% om^itist# Imjritg. pm m tm b iltm *
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(Qf» Ss6w l t&# i^^yffftlf^) &£
<0P jMWNrife iflHWftipll)ff S^fepifetttrlltel^
ifi<a«||«^f%|ftgg %f|$ M U fi>#i|i#t t n» 4-fyyi^fiiMMMy ISti® ffip’t o f INIiiQWItt- iii^l M IllS
fo3f %fn§' ,!j^y0^nmji wqm^MI- ywyfr Ini s^j^SjBiWiS#
4^y^lMMNySMI
^91
m m ^ m ^ hm mpi,%ni m&%®§
^
%m t wm l^fl«ig' fmm- #f th# to«|i9^iiNi
d^j»^Bi«i^. |.^
^f si^sasis In S3i# imamM* If i t i« «sw<l m m m m %
pPWSSSfiB ftUft ll#
f rtfr gjBbl||flpMP|,S!i8<| (RS^nHMMMI l^f Sl^ptflPByy
*Mtm*Ktii*mM %&. %ijffilrit w!tk$J6k. 63Ni ia*ur5Piii« Btttfcani itfieilft* H^sMEnha^. In
*V!lMMt ©f $^H4l XN|^|^|nHMMM| ^-f
JN®9^^WW(P 31
i'iMPIA ttiB&
^MMI 0f S^rtl
W9m
Reproduced from the Unclassified I Declassified Holdings of the National Archives
3
PROPOSED ALLOCATION RATIOS
(Per 6mt)
Interest-bearing
Securities jif
Bottom
New York
Philadelphia
Cleveland
nhmnnf
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Tk»n»^
San Franciaco
SyBtm
6*5
33*3
8.6
%$
4*©
14*6
3.6
2.8
3.1
5.x
1.®
109
Bills |/
1*9
2|#2
5*6
1.1
6.1
5.5
16*7
4.0
2.2
4*4
3*4
12.|
100
Interest-Bearing 1
Securities a/
BiUs b/
6.5
5.4
32*6
25.4
8.3
*.3
5.6
8.1
4.2
6.1
5.5
17.1
4.1
2.0
4.1
3.4
1?.2
4.1
14.6
3.7
2.8
3.3
3.1
7-?
MMIMIM
100
%/ Proportion of average surplus (See. 7) plus other capital accounts (chiefly
reserve for contingencies)•
b/ Proportion of average total reserves plus bills, adjusted.
adjustment, aeo footnote 1 , page 2.
For nature of
OOVEHNMSNT S3OTBITI8S HKLD BT FB3M&L BSSSBVS BAHKS
oh .april 5 , 1944, coupmed w o t fboposed m m m i m
( In thousands of dollar# 1
Aotnal
latWoat-Wo^iiig'' "
Bill.
aeearlties
Boston
Now Tork
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Fran©iso©
430,854
1,194,8?0
*55,879
642,559
375,598
555,626
591,594
261,741
179,847
500.705
275,660
581.824
560,807
2,041,527
591,844
495,829
297,141
229,010
1,257,498
590,659
185,964
242,025
189,863
654.005
Total
5,615,771
6,716,150
Allocation
Interest-bearing
Securities
Bill.
365,025
1 ,870,052
482,956
533,498
224,631
219,015
819,902
202,168
157,242
174,089
174,089
.5 2 i t M
5,615,771
396,253
1,692,470
376,104
570,873
409,685
369,388
1,121,597
268,646
147,755
295,511
228,349
.S5?all2
6,716,150
Reproduced from the Unclassified I Declassified Holdings of the National Archives
4
OOVKSNMSOT SECURITIES HELD M FEDERAL RES2HVK BANKS
ON A m i . 4, 1943§ 0OHDPABKD'HUH PROPOSED ALLOCATION
(In thousands of dollar!}
________ Aetoal
Interest-bearing
S e c u ritie s
Bills
Allooation
Interest-bearing
Securities
Boston
Now York
Philadelphia
Cleirsland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Franciseo
518,054
1 ,8 7 4 ,8 2 4
584,453
782,768
484.9J2
392,091
943,865
372,822
202,765
369,340
328.2U
762,908
hMJXL
491,206
2,465,586
627,232
702,802
317,395
309,838
1,103,324
279,610
211,596
249,381
234,267
566,?76
Total
7,557,013
12,023,427
7,557,013
717,467
2,800,980
718,119
1,082,640
750,728
622,683
2,266,125
423,917
268,108
491,861
371,802
Bills
649,265
3,053,950
673,312
973,898
733,429
661,288
2,056 006
492,961
240,469
492,961
408,796
L182.022
12,C23,A27
RESERVE RATIOS OF FEDERAL RES3K7I BANKS, APRIL 5, 1?44 AMD
APRIL 4, 1945 COMPARED WITH RATIOS RESULTING FROM PROPOSED
ALLOCATION Of INTEREST-BEARING SECURITIES AHD BIOS
(Per oent)
Actual
Boston
New York
PhllacUlplils
Clsrslnnd
Ri&hi&OXMt
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
54*1
64.5
56.3
5 7 .1
60.8
63.6
64.6
47.5
51.5
56.8
53.9
6^.8
System
61.2
Resulting from
Hsallooatlon
57.7
60.1
55.7
58.4
63.0
62.2
62,8
62.0
58.6
62.5
60.0
i M
61.2
Actual
Resultlng froa
Reallocation
45. s
55.8
44.1
42.f
42.5
4f.®
48.4
44.4
45.2
42.7
45.0
J9.*±
48.2
48.1
45.7
44.2
46.9
51.0
51.1
49.2
46.2
45.4
50.5
47.6
JkL.
48.2
IT
!
Reproduced from the Unclassified / Declassified Holdings of the National Archives
I
EFFECT OF s w m s u m AHjOCATIOH FCHMOIA 0 1 AIMJAL RATE OF SABNBIQS
of i s m m m s w u n m m from dttsrsst-beahikg securities abb bius
(In thousands of dollar*)
A^apll 5. 1944
Actual
PropoMd
Boston
Hew York
Philadelphia.
Cleveland
Richmond
Atlanta
Chicago
S t , Louis
M inneapolis
Kansas C ity
D a lla s
8m Franoisoo
T o ta l
7,86?
25,728
8,364
11,577
6,795
5,>35
15,664
5,42*
3,281
5,456
4,851
*1,!?8
110,122
7,007
54,631
8,716
10,210
4,933
4,698
16,607
4,066
2,938
3,741
3,*89
-J jSSL
110,122
April 4, 1945
Actual
Proposal
8,264
30,675
8,981
11,836
8,032
6,553
18,653
5,601
3,186
5,818
4,925
JhS£
1 2 6 ,3 n
7,720
57,957
11,213
6,165
5,813
19,580
4,857
3,179
4,532
4,053
-12*?4?_
126,391
(T
R e p ro d u c e d fro m th e U n cla ssifie d / D ecla ssified H o ld in g s of th e N atio nal A rc h iv e s
Mmmm
W % trn^m
t£ v m
w m t m t w& M . Itfitmilf tat
laMttii
vm wmmm< hmm.§ W
inau^a $$
Mle
&§
t# II#
I«*®*
M&m&M m M tSm tim tf tkm tm e& m
of m w m
$>&*# i & u t «? $&#
in $fe* ipi!#*!* tim&afc# u** m$l% #i mmmm
pim*. Xowm t§# 4 % m m m t £ t® %&#
ipto® $«$«&# t a n#t
tfci*
%& m & m m i m $&* torn**
tf i m » ««i
jim* m u i
t«
Ur n # iiM
ite# I'llli ®#
aptim* a*d
Mil# m m
to fcrin®
t M « <U«tributl04i or I&m i mod dloootiot# p|n§ bill*.
tit& *&* ivfMml m l m m «# n«fei^ %#«&
it
iks% ttsm ft* «•
uM
BtH
i MU« $&m O m %$m #sM# $&t&&* ms?)
1mm m& fflmm&m. #&
m mmM
*» vtoM-$ *»l m & M $: la *&&* %t tfe# w&k*
b m n w # it && to
6l*«$i«$ttt tttife *&$*
it »i#s& % m m m m w m m & f
Mi#®*# ateill fenn
«*ftaM «%t
ia iK w H iiiii w$mm tefam m mmmm feMt**
m # $ m I&# i & S m & i m
R e p r o d u c e d fro m Ihe U n c la s s ifie d / D e c la s s ifie d H o ld in g s of the N a tio n a l A rc h iv e s
PROPOSE) FORITOIAS FOR ALLOCATING SYSTSW OPE* MARKET ACCOUNT
(a) Allooation In proportion to total assets. • President Gilbort
and Dr. Hardy refer Vo this proposal as Wing one feaee3 on ability to aarry
••ourities# Dr, Dolloy doos not m k e this olalm but states that total as
sets aro a rough soasure of also and operating expenses thaorotiaally should
ba proportionate to sise, ••oordlngly that this forwula should allooato
earnings roughly in proportion to operating expenses*
Co— nts
1, Total assets are not a Tory aocurat• measure of ability to
oarry securities inamuoh as their oosposltlon nay vary greatly. In one
oase, total assets m y ooasist largely of reserres while in another oase
they m y consist largely of bills d iscounted for leeaber banks and option
aeoount bills.
2.
The real Measure of ability to oarry securities is the relation
ship of reserves to Federal Reserve note and deposit liabilities. In other
words, an allooation of the Systm Aooount in aooordanoe with ability to
oarry securities would be a slxple mtter of so allooatlng the seourities
as te equalise reserve ratios*
3* An alleoatien baaed on total assets would giro a Federal Re
serve Bank an Increased ahare in the Systm Open Market Aooount as a re
sult of sfi increase in holdings of bills discounted, whereas preoisely
the rererse would normally be desired, not only fro* the standpoint of a
satisfactory distribution of earnings but also bemuse of the effect on
the Bank's reserve ratio*
lu Veither are total assets a sufficiently accurate indicator
of sise aa to serve as a satisfactory indicator of what might be tensed
nerml operating expenses* Certainly, an inorease in total assets due to
Government transfers or other transfers of funds from one district to
another or due to borrowings of umber banks does not result in an inorease
in the expenses that is even rmotely proportionate to the increase in
total assets*
(b) Allooation in proportion to net worth* This type of
formula is designed te result In en allooation of ika Systm Open Market
Aooount or of total security holdings in proportion to the B«k*s ability
to absorb lasses*
Consents
1* Any prepoeal to allooato the entire System Aooount or per
haps even total security holdings, including option aooount bills, in
Reproduced from the Unclassified / Declassified Holdings of the National Archives
mf&m
proportion to tho Bank's ability to absorb lottos m r y much overemphasises
tho llkolihood and importance of losses that nay bo sustained on tho Syst«s
Open Market Aooount* If heavy Xoaoos on tho System Opon Market Aooount wore
Imminent , a proposal of 1i*i* typo might bo worthy of ooneldoratlon but at
tho present time there Is no such proepeot and an allooation based on the
likelihood of suoh losses seems to be inappropriate under the circumstances*
2. The tendenoy of suoh a formula would be to aooentuate exist*
lng differenoes In not worth of the Federal Hosertw Banks in relation to
sise Instead of tending to eliminate them as would be desirable,
% This formula, as proposed by Pr« Dolley, as well as the
preceding one, would distribute profits and losses from the sale of System
Aooount seourltles in proportion to current holdings, thereby discarding
the presently established theory that suoh profits and losses #iould be
distributed in proportion to average holdings over some rathor extended
period* l«e*, at the present five years*
Note*
President Gilbert in his April 26 letter suggests
that a formula be adopted which is a ooabination
of (a) and (b) under whioh perhaps 20 per oent,
25 per sent, or one*third of tho securities would
bo allocated in proportion to total assets and the
remainder in proportion to net worth*
Proposals by Dr* Hardy
Dr. lardy's proposal is that interest-bearing seourltles be allocated under a formula similar In offset to total net worth, !*«•* based
on total surplus (Seetlon 7) and other capital accounts (the difference
being that paid-in capital is omitted) and that total bill holdings be
allocated in proportion to total reserves plus bill holdings*
Comments
1, The use of a formula based on Seotion 7 surplus plus other
capital accounts for the allooation of interest-bearing seourltles would
tend to accentuate existing differenoes among the Banks in the relation of
these items to slse* The tendency in this direction would be more pro
nounced after the lapse of a few years because profits from th<* sale of
seourltles from the Systma Account eftilch would be distributed on the ba
sis of average holdings over a period of five years would eventually be
distributed In approximately the same ratio as current holdings of interestbearing seourltles*
2. The use of total reserves plus bills as a bass for tho dis
tribution of total bill holdings Is, as Dr* Hardy states, a modification
of the idea of distributing securities in proportion to total assets*
Inoidentally. If bills discounted became Important, Dr* Hardy
suggests
Reproduced from the Unclassified I Declassified Holdings of the National Archives
that they also should ba inoluded in tha base* Suoh a formula is aubjeet
in lastar degree to tha same objeotlons that apply to a formula basad on
total as sata. It would not distribute holdings of bills in proportion to
ability to carry securities anyviiera nearly as offestively as would a
formula designed to equalise resarve ratios and It would tend to give a
Bank a higher percentage of total bill holdings as a result of an increase
in reserves arising fro» 3overan»nt transfers or other lnterdi strict move*
ttsnt of funds or in bill holdings arising froa an .increase in bills held
under option. In the former ease, slnoe reserves have increased, the
inorease would bs in aooordanoa with the theory of allocating bills in
propirtion to ability to oarry securities* This would not be true, how
ever, in the saoond oase* In any event, it is not believed that an in
orease in allooation of bills due to suoh causes would contribute to a
sore satisfaetory distribution of System earnings*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
L -'D
in records section
APR 291968
proportion to the Bank’s ability to absorb losses very nmol. overemphasizes
the likelihood and importance of losses that may be sustained1onn!fche System
Open Market Account, If heavy losses on the System Open Market Account were
imminent, a proposal of this type might be worthy of consideration but at
the present time there is no such prospect and an allocation based on the
likelihood of such losses seems to be inappropriate under the circumstances*
2,
The tendency of such a formula would be to accentuate exist
ing differences in net worth of the Federal Reserve Banks in relation to
size instead of tending to eliminate them as would be desirable*
rAJ3* This formula, as proposed by Dr, Dolley, as well as the
preceding one, would distribute profits and losses from the sale of System
Account securities in proportion to current holdings, thereby discarding
the presently established theory that such profits and losses should be
distributed in proportion to average holdings over some rather extended
period, i*e,, at the present five years*
Note:
President Gilbert in his April 26 letter suggests
that a formula be adopted which is a combination
of (a) and (b) under which perhaps 20 per cent,
25 per cent, or one-third of the securities would
be allocated in proportion to total assets and the
remainder in proportion to net worth*
P ro p o sals by Dr* Hardy
Dr, Harcty-*s proposal is that interest-bearing securities be al
located under a formula similar in effect to total net worth, i*e«, based
on total eurplus (Section 7) and other capital accounts (the difference
being that paid-in capital is omitted) and that total bill holdings be
allocated in proportion to total reserves plus bill holdings®
Comments
1* The use of a formula based on Section 7 surplus plus other
capital accounts for the allocation of interest-bearing securities would
tend to accentuate existing differences among the Banks in the relation of
these items to size* The tendency in this direction would be more pronounced after the lapse of a few years because profits from the sale of
securities from the System Account which would be distributed on the ba
sis of average holdings over a period of five years would eventually be
distributed in approximately the same ratio as current holdings of interestbearing securities*
2,
The use of total reserves plus bills as a base for the dis
tribution of total bill holdings is, as Dr* Hardy states, a modification
of the idea of distributing securities in proportion to total assets*
Incidentally, if bills discounted became important, Dr* Hardy
suggests
Reproduced from the Unclassified I Declassified Holdings of the National Archives
that they also should, be included in the base. Such a formula is subject
in lesser degree to the same objections that apply to a formula based on
total assets* It would not distribute holdings of bills in proportion to
ability to carry securities anywhere nearly as effectively as -would a
formula designed to equalize reserve ratios and it would tend to give a
Bank a higher percentage of total bill holdings as a result of an increase
in reserves arising from Government transfers or other interdistrict move
ment of funds or in bill holdings arising from an increase in bills held
under option* In the former case, since reserves have increased, the
increase would be in accordance with the theory of allocating bills in
propirtion to ability to carry securities* This would not be true, how
ever, in the second case* In any event$ it is not believed that an in
crease in allocation of bills due to such causes would contribute to a
more satisfactory distribution of System earnings*
May 17, 1*5.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
/ 7 . 7 s <../ i ^
W! J.te? flttJWi
SUGGESTBD FORMULA. 101 ALLOCATING StSTSM HO
m v t m s ta tk s o m m m m s e c u r itie s
I t 1* suggested t h a t , a t a f i r s t s t e p , i n t o r e s t - b e a r i n c seouri**
t i e s be a l l o c a t e d t o th * v a rio u s F e d e ra l R eserve Banka in p ro p o rtio n t o
a v erag e h o ld in g * of inch s e c u r i t i e s during th e f iv e y e a rs ended J m e $ 0 ,
/
X9U5* The reason s f o r t h i s su g g e stio n a r e , f i r s t , th a t th e s e r a t i o s co r
respond v e r y c l o s e l y t o th e r a t i o o f t o t a l c u rre n t expenses plus d i v i
dends o f eaeh F ed eral R eserve Bank t o t o t a l c u rre n t expenses plus d i v i
dends to r tha S y stea a s a whole during th e f iv e y e a r p eriod 19U0 - 19 U*«
and, second, i t would aiake th e d i s tr i b u t io n o f i n te r e s t -b e a r i n g seotarl*
t i e s oonform w ith th e p erce n ta g e now used in d i s tr i b u t in g p r o f i t s and
lo s s e s on s a le s o f System Aooount s e c u r i t i e s * / Follow ing i * a nonparison
o f th e r a t i o o f a v erag e d a i l y p a r t i c i p a t i o n s in i n te r e s t -b e a r i n g s e c u r i
t i e s of eaeh Federal R eserve Bank to t o t a l i n te r e s t -b e a r i n g s e c u r i t i e s
during th e f i v e y e a rs ended Maroh 3 1 , 1 9 ^ 5 , and the r a t i o of t o t a l c u rre n t
expenses p lu s dividends of each F e d e ra l R eserve Bank to th e same t o t a l f o r
the System f o r the f iv e y e a r p erio d 19^0 *
¥/ 7/4
R atio of a v erag e d a ily
p a rtlo lp fctio n # In in *
t.QreSt b e a rin g s e c u r i
t i e s o f each f 1 Bank
t o t o t a l i n t e r e s t b e a r
ing s e e u r i t l e s during
t h e 5 y e a r s ended
Maroh 31* 19^5#
Boston
lew York
Philadelphia
C leveland
llo h *o n d
A tlan ta
Chicago
S t . Lou is
M inneapolis
Kansas C ity
D a lla s
San Franolsoo
Syata*
7*2972
15
7*7281
10,1773
6,2552
5.09214
12.5153
!i.6?;,lt
2.8962
h.SjUl
U,2l»20
9.95149
100.0
R atio of t o t a l c u rre n t
expenses plus d ivid en d s
o f eaeh F R Bank t o th e
same t o t a l f o r th e Sys
tem f o r th e f iv e y e a r
period 19l|0-19Ui.
7.07
26.05
7,68
9,76
6,01
lu72
12.76
I+.67
2.8k
k.97
h.02
9,h5
100,0
Aa * aaossd, and final «tap, In th# allocation of total aaouritiaa hald by tha fadaral Raaarra Banks, it la auggaatad that total bill
holding. Including bills hald in option aooount, ba alloeatad to tha nr~
loua Padaral Raaarra 9ank» in proportion to total dapoaita of aaaibar banka
during tha l*at aaBi-aonthly pariod f o p whioh figvtraa ara arailabla.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Tha firat stop of this formula would provide each Federal Reserve
Bank with aarnings sufficient to cover expenses and dividands with an ample
margin under present cireuastanoes, and tha saoond stop would tand to
equalise tha distribution of excess earnings in proportion to member bank
daposlta and therefore in proportion to aatimatad potential deaanda upon
tha Fadaral Reaerve Banks for diseount aeeoanodation*
The ratios under which interesfe-bearing saourities are distri
buted would be fixed so long as this plan was in oparation or at laast
until they were changed by agreement and, accordingly, the distribution
of latere§t»beariitg aaouritiaa in aooordanoe with tha formula would ba
ourrent, that is to say, any increase or daaraaaa in interest-bearing
security holdings would ba participated in by tha Fadaral Reserve Banks
In aooordanoe with tha fixed ratios and their holding a, after tha adjust
ment, would continue to be in aooordanoe with theae ratios* In the oase
of Treasury bills it would, of course, be necessary to allooato addi
tional bills purchased for the System Open Market Aeoount and to simi
larly adjust holdings for bills sold from the %etam Open Market Aeoount
currently. Since the original distribution of Treasury bills would be
baaed upon total bill holdings, i»e«, including option aooount bills,
such ourrent adjusttamnts of bills held in System Account might be oppo
site to those that would be made if option aooount bills ware also taken
into aooount. It is reeoastanded that any ohange In total bill holdings,
whether due to System Open Market Acoount operations or to option acoount
operations, bo
reflooted currently in adjustments in bill holdings of
eaeh Fadaral Reserve Bank* In other words, it is reoomooended that when
ever a change occurs in total bill holdinga there be a correspondingly
proportionate change in the participation of eaeh Fadaral Reserve Bank*
If this sv^gestion la adopted, the allooation both of interest-bearing
securities and of Treasury bills will be kept currently in accordance with
tha fomula and accordingly there will be no oooaslon for a monthly or
quarterly reallocation of the System Open Martost Account*
Attached are soma tables showiz^ aa of April U, I$k5$ the latest
data used in Dr* Hardy’s tabulations, tha effect ori holding a of Interest*
bearing securities and of Treasury bills, on the earning position and on re
serve ratios if this formula had been in offeat aa of that date* In this
connection, in view of the faot that it is anticipated that reserve re
quirements both on Federal Beserve notea and on depoelt liabilities will
be reduced to 25 per aettt, the present adjustments in holdings to maintain
a alnlmxaa combined reserve ratio of approximately 1*3 per cent would be un
necessary* Accordingly* in the above comparisons the allocation of billa
aa of April lit 19U5# under the present arrangement waa aastaoed to be as
they would have been If no adjustments had been aada beoauaa of reserve
requirements* The comparison, therefore, la between the present formula
as it presumably would operate with a
par cent reserve ratio and the
prepoaed new formula* It would appear tbat in the comparisons made in Pr*
Hardy’s table, partiolpat ionsas of April it, l$k$, were taken as they ac
tually existed* This tends to minimise the ehangee in earning position and
in reserve ratios as shown in hia tables that would result from the adoption
of the formula proposed by him*
Bmmmrv* *ai R»— r y R a tio s A p ril
I9b$ Pador Prosont Pimm
ConMurod w ith Bflfw U i ^ sd tr Pfopoitd P las of t —1 lo catio n rf StourltI n
o
fc.
|
9*% otwnge
is M O V itiM
du# to
allocation
Prosont Plan*
Batio
R oolloeation <M«r
Propoao* Plan
Batio
L _ j
T o ta l aofco
and dopesit
lia fe ilit io s
#71)0,026.000
33.7
-
•280.973,000
11,060,999.000
U6.5
#2,196,716.000
5,7U9.66l,000
55.8
* 1.0^3,992,000
U,708,669,000
U5.7
10.30U.651.000
778.870,000
33.3
-
356.17U,000
l,135,aUU,000
HM
2.336.138,000
1,286,083,000
36.9
*»
292.35U.000
I.U78.U37.000
U6.0
3,215,178,000
Hish»ood
901,372.000
14,1
-
224, 021,000
l,lU2,393,ooo
5B.1
2,192,756,000
A tla n ta
990,39,000
10.0
-
100, 910,000
1 , 091,^,000
5U.0
2, 022, 576,000
Chicago
3.780,966.000
99J*
♦
879,186,000
3, 501, 780,000
55.1
6, 360, 761,000
I t , Louis
535.665,000
35.0
**
1UU.396.000
680, 061,000
UU.5
1,589,125,000
Himtoapolia
363,122,000
31.0
-
5U.399.OO0
317,581.000
yrJk
8UB,llU,000
Kansas C ity
538,773.000
3U.3
-
106^93,000
635,066,000
m .a
1.5U2.121.000
D allas
3U9,21*0.000
38,2
•
70.K 5.000
Ul9.665.000
33.8
1.239.996.000
2,712,225,000
58^1
♦
326, 967.000
2,385.258,000
51. U
U.6U0.331.000
#18,5i6,3Ul.ooo
10.2
U8.2
♦38.1*28,1)63,000
Boatoft
Bov forte
PH iladalphia
flltrolanrt
Sa& Fyaocisoo
fatal
*
#18.516.3Ui , ooo
Elim in atin g o ffo o t o f ad$**t»*ists A p r il 1 Mid A p r il I4 o f Traa«ury b llla la Syatoa Aeooimt to pr*v*isfc
rosorro ra tio s fa llin g bolo* 1*3 por oaant*
#"4 r
Boston
Govornme?it Securities Held on April U, 19U?
(tn thousands of dollars)
^rfsent formula*
jIntorest-bea rii^ j Treasury |Interest-boarin%
1 securities 1/ j bills zf | securities
Treasury
bills*
Proposed formula
Interest -bearing j Treasury
securities
}
bill#
Effect of Proposed Allocation
Formula on Annual Bate of Earnings
(In thousands of dollars)
.Based cn Arr.il k. i;4*i. holdings
TYaaent
Propcsod
formula*
formula
7 *^972
5.2
5ie,03U
;;?5 <,tO?
5^1.450
625,218
9.-097
S#277
2^.2815
3 0 .6
i,a?U,52l4
^,5-^8,309
1,33U,956
3 .6 7 9 ,16 9
cv.f,9li|
33,539
7-72B1
5.1
5 % U th~5
966 ,930
5311,01)4
6 1 3 ,1 9 5
9,9^
3,583
10.1773
7*8
72 2 ,76 8
1,276,551
?<9.13S
937.327
12,563
11.792
Richmond
6.2552
I1.6
1*8*1,952
731**73
!j7 <J,70 6
553.073
6.11*9
7,160
Atlanta
5*0921*
U.U
392.091
622,683
38U.333
529.031
6,553
6,12k
Chicago
12.5153
15*3
9U3*865
1,562,316
9U5.733
1.839.53U
16,013
St. Louis
14*605)4
3*7
372,522
570,71?
35U.076
1^4,367
6,151
5»U77
M inneapolis
2.596c
2 .5
202,765
371,066
216,666
300,556
3.573
3
Kansas City
U.&7U1
U.3
369,3^0
6 2 2 ,296
568,336
517.007
6,308
5*902
r?sii»c
lt.^20
t.1
32 c",211
555*7^3
320,569
,^60
5,615
5,^ 7
San Francisco
9-95U8
12#!*.
762,908
1.133*316
752,266
1.1*90,905
12.535
13.63U
1CC.0
7,557,013
1 2 ,0 23 ,1*27
7.557,013
12 ,*'3 ,!(27
126,391
126,391
lew York
P h ila d e lp h ia
Cleveland
100 *0
1 7 ,3m
1/ A d a i l y participations, per cent, in interost-bearing soouritlos iu Syttaa Account aarch 31* 19U0-March 31* 19^5 •
«f/ Paroenta.£3s to Systasi total, of total b*nk deposits of mssibor banks of each Fodoral Reserve Bank, December $ 0 $ liiik*
*
iiliMinatia^ <Mljttst2»nta /-pr11 1 *>nd *pril h, 19--£. of -Vraasury bills in System Account to prevent reserve ratios falling below
1$ par cant.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Federal
Reserve
B*nk
s
I
j Proposed allooation ratios
Reserves and reserve ratios April Aj.» 19^5
If o>
under present plan* compared with results
under proposed plan of reallocation of
Res
erve
Iti F^^ral
securities
(Amounts in thousands of dollars)
k
25 Cl Bai
<5 <
Present Plan*
Proposed Plan
O
Reserve
Reserve
Reserves
Reserves
Ratio
Ratio
1* ........
802,259
Boston
1 ,020,999
36.5
1*6.5
Annual earnings on basis
April 1+, 19 I4.5 holdings of
Government securities if
distributed in proportiou to
average 5-year holding ratios of
interest-bearing securities
(Thousands of dollars)
Ratio of
total assets
of each Bank
to
System total
April U, 19U5
9,223
5.8
5,1(28,502
52.7
b,708,669
1*5-7
30,690
26*6
818,617
35.0
1,135,014*
1*8.6
9,768
6.1
l,238,9lU
38.5
1,1*78,1*37
1*6.0
12,861+
8.1+
931,156
142.5
1,11*2,393
52.1
7,906
5.8
Atlanta
1,000 Jhfi
1+9*5
1 , 091,2148
5l*.o
6,1*36
5.3
Chi cago
3 , 838, 51!*
60.3
3 , 501,780
55.1
15,818
16.5
St. Louis
51+3,036
35.5
680,261
14*. 5
5,922
U.O
Minneapolis
285,986
33-7
317,521
37-1*
3,661
2 .2
Kansas City
565,035
36.6
635,066
1*1.2
6,160
U.1
Dallas
59b,9b9
31*9
1*19,665
33-e
5,361
3.2
2, 668,633
57-5
2,385,258
51.1*
12,582
12.0
18,516,31*1
148.2
1 8 ,5 1 6 ,31+1
1(8.2
126,391
100.0
New York
Philadelphia
Cleveland
Richmond
San Francisco
System
* Computed as if April 1+ were a reallocation date, but without acgustment to prevent reserve ratios from
falling below 1+3 per cent*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Kr
ill RECORDS SECTION
/I
APR 2 41968
3 ^
m
.r / -
w m m m m for committer
allocation
of u. s.
securities
From*
O
^ \l c *5"/f i r / lf
c* o* Hardy
The following: ideas nr* auhuittad for consideration at o w mooting of
May 19. I t is auggoaiod th a t i f meribere o f th e Conmitto# fin d tim e to. submit
written cowsonts p r io r to the mooting, oopiee bo aent to each member o f tho
Conmittee to expedite oonaideration.
Hr* D o llo y ** memorandum s t o a t s two n lto rn a tiv o boooo of a llo o a tio m
Total assets ie a rough measure of
a b i l i t y to o a rry s e c u r itie s , and t o t a l n o t worth 1 * a rough jaeasure o f ability
to. oorry tho r is k o f © a p ita l losses* I t is suggested t h a t instead o f tre o tio g
these aa o lto m n tlv o methods o f a llo c a tin g tho entire p o r t fo lio , a formula
similar in o f fo o t to total not worth bo used for alloeating intore*t»beoring
aeeuritiea, which involve some riak of oapital loss, and a formula similar to
total aaaota bo used in alloeating bills. Oaina and loaaoa from aalea of
Hamoly, total aesets and total net worth.
ecouritlea would then bo allooatod ao at present, in aooordanoo with tha amount
of Government aeourltiee bold oror tho peat f i w ywar* (or othor appropriate
poriod)*
ta»toad of total not worth aa a baaia of allooation of interest-bearing
securities, I euggeat Sootion 7 surplus plua "other capital accounts" (primarily
reserves for ooctinfoaoloi)« Prooodant for uao of thia baao la found In tho
present plan of aharing exeeaeivo loaaoa from theft or loaa of registered mall.
Tho omission of paid-in oapital from our baao may bo justified on tho theory
that oapital loeaoa groat enough to impair oapital are beyond tho range of
reasonable probability, and if they did occur would presusably ba taken earo of
by calling in tha unpaid oapital or by other draatio measires. Incidentally,
uao of thia itam instead of nat worth would alightly roduoa tha oxtant to which
tho ronlloontlon would tronofor incoma from tho smaller to tho larger banka.
Instead of total aaaota, I suggest total reserves plua bill holdings. Tho
prinoipal itam thua omitted is "Interest-bearing securities," whioh obviously
doea not ropraaont buying power available for the purpoaa of b i l l * * Total
a s s e t* alao In clu d e a nu*er of lteaa, euoh b j i bank premie *o and unoolleoted
Ite m *, whioh do not c o n s titu te buying power fo r b i l l * #
It i * auggeated that tho allooation r a t io * be oaloulated for aaoh calendar
month by averaging tho Wednesday © losing itoma for tha U to 5 Wedneadaya from
the 20th of tho second preoeding month to tho 27th of the preceding month, inolu*lvo. Tho formula would run aa follows*
First, allocate interest-bearing aeouritiea according to tha ratio of tho
individual bank** Sootion J surplus plu* "other oapital account*," to tho sum of
tho eorreopeadinc Items for tho Syatam.
R e p r o d u c e d fro m th e U n c la s s ifie d / D e c la s s ifie d H o ld in g s of the N a tio n a l A r c h iv e s
a
Second, allooate bills, both Syetea aooount and option aooounta, accordIn#
to total W t m i I'luB bill nol^iiiga, jy/ H I 1 bol.iinge shall ba adjuatad to
th# ratloa dftily. If it 1* neoeesary for thie purpose to reallocate bill# la
tha option aoo#wta, thia would ba eff#ot#& by ami* of parti#1pattons by banka
with axeaaa holding# to banka with deficiencies. fhl* would ipvolvw & one-day
lag In tha adjuataacit of hoidingo to tha fomul a.
Third, allocate profits and loseec m Government .##*urtti#.#. iMSOordiu^ t *
tha #ir*im«t# tawuat of i»t*r**t»%*tring aeourltlee hold over tins prtoedtaj five
yaarc.
Aa iamadlata effect of this procedure would %# to inores.ee substantially
th# income e of tha Istrg* banka at the m p m z * 'Of tha smaller ones. ttcwevor, &s la
notad in Dolley’a menorandum, the present and proapcotive earnings *r# *0 auch
larger than expena*# that this If * mtter of comparatively littl* inporttnoe. 2/
tn %b$- #v*nt of .* poetaur *&l-ft of depoait# frta the interior bank* to brak# In
lnduatrial and financial #ent*ra, bill# rathor than securities wo«3J follow tilt
thift of
Wence tha disturbance of the income pattern woult ba m M i m l f
nmlt* Moreover, since tha plan would inoreas© th© r*f*rv#
of tha interior
banks and
those of th#
city b&nkf, the anticipated postwar reversal
O f th* acrraawnt of fund* would find th# interior barJca in «% hotter
to
lot# re*erxn*s.
Tha following tabulation* «hm tha epproxia&te affacta of th* proposed
foraula if it had baaia appliad April %t
or April 1, 3$j5*
1/ f& th* i n i t i a l a l l o o a t i o n b u t mot t h e r e a f t e r , th a M i l holding r a t i o s sh o u ld
b# a d ju s t e d m f o l l c w a i Hr«t oom pute th a mliofatton# of tnt*r*et*b#fcrti^
s e c u r i t i e s , and H i t th a i n c r e a s e s and d e c r e a s e s . to t h a reserve p lu s
b i l l a of a a ch ban k *dd t h # # * o r * a » * (or $*4uot th a in o r e a a e ) o f holding#
#f iB t# r # # t* b # a r i* l& s e o u r i t l e s (fro m their l i - of '§-###k a v e r a g e ) , a t t r i b u t a b l e
to t h a r e a l l o c a t i o n . Uaa th a resulting auw* and rtw&ift&trs *a noaemtori ia
C O oijm ilnf th a b i l l r a t i o * #
t h * d e n « a in a to r (th# it# * of r e a e r v e s smri b i l l *
f o r ’ th a S y s te m ) would n o t b a a d ju s t e d .
T h in a d j« * ta # e ^ t I * n e o e s s a r y b e c a u s e o th e r w is e th a a h a rp ch a n g e i n h o ld in g *
O f i n t e r e s t - b e a r i n g s e o u r i t l e s would d e e tr o y th* r e l a t i o n e h ip batw aan th a
s u r p l u a - o t h e r c a p i t a l ratio*, and t h e t r u e buying power of t h a r e s p e c t i v e
b an k *.
2/ Ho aooount 1* taken of expenses in tha formula. M It 1* deeaad neoeeaary, '|!|
prorlaloa oan ba Made for underwriting axpanaaa by temporary aupplasieatal $
a l l o o a t i o n * t o banka w hioh a r e in o u r r in g a o t u a l d e f i c i t s .
HoweTer, im
▼law of t h * r e a o ta n e a e of th a i s s u e and th# a l e e o f t h e c o n tin g e n c y r e * e r r a s # I would p r e f e r t o ig n o r e ax p en a e tmtio* e n t i r e l y .
http://fraser.stlouisfed.org/
Federal
Reserve Bank of St. Louis
i
jf!
I.J
'f |
Reproduced from the Unclassified / Declassified Holdings of the National Archives
m o w e r o ALLOCATION XA« «
(Far «M>t)
April lg loLk
XKtorost~boarlng
S o ou ritios a/
m i * 5/
A p ril 1.
&iW.»t-Wring
• • o u ritlM mf
.... .............
B M tm
JNwf Toric
P hiladelphia
Cleyoland
Richmond
A tlan ta
Chioago
St* Louis
ttinnoapolis
Xsssas City
D allas
Saa Frsneiaoo
Syatm
6*5
35*3
8.6
9*5
Lo
3.9
1U.6
3.6
2.8
3*1
3*1
T*°
100*0
5.9
85.8
5.6
8.5
6.1
5.5
16.7
U.0
8.8
lut
3.1*
Ja.5
100.0
B ill* b/
i ......... i iiiiniiiiiiiiii.iiw>iinNw»
mrnmmmmmmmStLm
6.5
$2.6
8.3
9.5
1*.8
l*.l
5.U
SSM
5.6
9.1
6.1
5.5
17.1
llol
2.0
1.1
U*.6
3.7
2.3
3.3
3*1
13*2
100*0
100.0
•/ Proportion o f avorago surplus (Soe. ?) plus othor o a p ita l aooount* (o h io fly
rosorv* fo r oo&ti&jgsfiolos}*
Proportion of avorago to ta l rooortos pliM b ills , adjustod.
adjustMsst* •oo footnoto ly pago 2*
for naturo of
O0VSBW9T SECURITIES fflSLft I f FEDERAL KSSEBfi SAKBS
QV APRIL 5# 19U*, CCMPJJIKD WITH PROPOSED AIXQCATIOK
(So thousand® of dollart)
A otual
'Moroi¥4>oaj^ijig'~'
S o ou ritios
M ils
B M tn
I*w Toifc
H d lif a lp U t
C lf K lM t
Sieittood
A tlan ta
Chioa^o
S t. Louis
M inneapolis
K ttM i C ity
8sn Francisco
U30.85U
1.19U.890
1(55.879
3*2,559
375,598
335,686
591.59b
a6l,7«*1
170,81*7
300,705
873.%
561.821*
T o ta l
5,615,771
360,807
495,889
897,11*1
A llo o a tlo n
iijtorosi-boariing '
Soouritloo
S ill*
365,085
396,253
1 ,870.052
1 ,692,1*70
1*88,956
533,1*90
376,101*
570,873
U05.665
369,388
1,181,597
260,61*6
11*7,755
895,511
288,31*9
J M ?
6,716,150
224,651
889,010
819,015
1,257,1*98
390,639
185,961*
81*2,085
189,863
J & t m
6,716,150
208,168
157,81*2
171*,069
171*,099
_J82£&
5,615,771
819,908
f
---Reproduced from the Unclassified I Declassified Holdings of the National Archives
SOVERIMWP SECURITIES MW ST IBEBtAt KBSKRVE HAWKS
m AFRIL km I9k5* CCMPAXKD W O T PROPOSED ALLOCATION
(Da thgnfmrtft of dellsye)
AiOtutl
Bat#r#8t«^wing
S##yritl#«
Boston
for Toite
Philadelphia
Cleveland
Kiohaond
Atlimta
Chioago
Si* Unit
m rnrnpglf >
ftmc&s 0 1 %
f
$•» Fraaoiooo
T o ta l
510, 031*
Bill*
i . 87U,9 ai*
717,1*67
2,300,930
53U.I53
722,768
IA,?38
392,091
9U3.365
372,922
20«,765
369.3UO
1.2U
SiM
? g«g*y
*77 f*
1,082,61*0
E 0,728
9.663
a,266,125
1*33,917
266,106
1(91,361
571,808
MfiStM,
12,023,1*87
A lle e ttle n
]SB«wr*ct-4>««rine "
S»ourltl—
1*91,206
2,1*63,586
627,238
702,308
317,395
309,333
1 ,103,3d*
279,610
*U,596
21*9,381
2SL.26:
710,119
7.557,013
BtlU
6^*9.265
3,053,950
673,312
973,898
2,056,006
aSj§
1*92,961
1*08,796
1,567.092
12, 02},1*27
1B8BRVE RATIOS OP FH5BBAL HHSEKVE M fflB, APRIL 5 , 19W* AHD
APS XL 1*, 19l*5 COMPA*® KITS XATCOB RESULTING FECK PKOPOBSP
ALLOCATIOB OF IOTTOESr-aFASlSO SSCTOIflBS AHD BUIS
( M r »«nt)
__4firtJ!^WU* _ M _
Juatm l
Botton
low Torit
P hiladelphia
ei«nA«BA
irt(itniMmrt
Atlanta
Chioago
8t« touia
M lBosayalis
Ifc&sas City
D allas
8qii Frtuolaoo
53.9
65.3
5yit«
61.2
56a
%.3
56.3
§7 .1
60.8
65.6
6U.6
1*7.5
51.5
56.8
Keatoting fro a
U M llo o vtlo n
57.7
60.7
55.7
58J*
63.0
62.2
62*8
62.0
58.6
62,5
60.0
65.3
61.2
A p r il 1^ I9i*5
Actual
1*3.8
53.8
U*.l
1*2.9
1*2.5
fc.O
1*3.1*
M*.6
1*3.2
1*2.7
1*3.0
50.3
1*8.2
Basuitiag fro*
Saallooatiox*
1*8.1
IJ4.2
5Se9
51.0
51.1
U6.2
k%h
50*5
U7.6
SM
Ua.2
F- - - - - - - - - - - - - - - - - - - - - - - - - ”
------ ”
—
~
—
"
"
----- --
"
Reproduced from the Unclassified / Declassified Holdings of the National Archives
EFFECT OF SUWWJTO iliO CATIC* FCWOU. OK JJBTCAL RATE OF KABBIBOS
OF FSDKRAL BK8BKVR BAXXS FRCH IHTBKEST-HBARIIG SBCOEITIES tXb BILLS
(IB thouausds o f t e llt m )
,. . . , „ m k s ± M k
A stual
m w vW bh
S*w Tork
P hiladelph ia
Claraland
a &OMMm M
Ateljusta
Chieag*
S t. Loui»
*
!#£
ai
IGUDnVi^v»«i
Suita* C ity
San Fn iMl M*
Total
7.369
85.723
8,361*
11.577
6,795
£ 8
SjiSL
j/rm
W +
3.861
5.1*56
U.85X
11.178
1,188
7.00?^
*.6 3 1
8.716
10,810
1*.?33^
16.607 „
U.066-;
2.952 y
3.7W
3M9',
9.098110,128
A ctual
3.861*
30.675
8.931
11,836
8,038
6.553
18.653
5.601
3,186
5 .8 1 3
11.985
13.667
186,391
?ropo««4i
7,780 ' '
37,957
9.873
11,213 ^
6,165'
5.813
19.530
u,m'
3.179'
U .5®' r- '•
h.m
18.0U9 y
186,351
Reproduced from the Unclassified I Declassified Holdings of the National Archives
If a furfchor
of th# allooation formula 1* d**a*d to b* worth
whil*# ««oovaat oould logioally bo takaa of th* roipootivo 1m s and di»oount
holding* #f th* R#*err* banks, by tha following aodifioatlon of th« formula*
Xttfttaad of oocqputing th* ratio of raaorvoa plus billo of th# Individual
beak to m « m s plus bills in th* Systom, oaaputo tho ratio of ro*orv** plus
bill* plus loan* mad disoouat* to th* oorrospoadin^ 8y*t*nt total* fh*n u**
thi* jpatio to ditnndo# th* battle** jffojisrtioB of Iiwri#
duLsooisibs pin* bill*
to th* loan* and diaoouai* plus bill* of th* 8y*t*«# aad alXooata bill* so a*
to bri2t$ about thi# distribution of loans and di*ooimt* plu* bill**
With th* pr***ttt veliaa* of aanibor b*ssk borrowing it do** not *«*m to st*
worth whllo to rafisi* th* ratio in thi* nay, although loans and disooiaits do
oonstitut* an a***t oospajrabl* im yi*ld, and probably in ri*k* to tho bill*.
Hcwsrsr, If in th* futur* thor* should b* a Material #xpanaion of loan* and
discounts, with wid* variations in proportionate irolutoa botwwon lononro bank*,
it Might beeon* n***8*aty to rati** th* allooation formula.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
sC, *t- I* h ?i
/
*4pwc
ffiiJil
:j i/
C5-/J
May 16, 1945,'
Mr. M o r r ill
Proposed a llo c a tio n o f
M r. C arpenter
Government S e c u ritie s .
/f
I see l i t t l e to recommend th e bases o f a.-.location proposed ^
1
by M essrs. B o lley and Hardy,
I t seatas to me th a t the System* s
holdings o f s e c u ritie s under the present law can lo g ic a lly , and from
& p r a c tic a l standpoint should, be regarded as a pool o f s e c u ritie s to
be a llo c a te d in accordance w ith th e System* s needs. There is no
reaeon why Mew Xork and Chicago should be given a g re a te r p roportion
o f the la rg e earning# th a t w i l l accrue in the foreseeable fu tu re be*
cause they happen to have r e la t iv e ly more surplus and reserve than
the o th e r banks* I f at' any tim e th e re is a re tu rn to a s itu a tio n
s im ila r to th e one e x is tin g a few years ago when i t was .Tore o r le s s
touch and go Ufaeth e r the Federal Reserve Banks would make expenses md
dividends we could not lo g ic a lly continue on* o f th e proposed a llo c a
tio n procedures i f n in e o r ten o f th e Federal Reserve Banks hod d e f ic it s
and th e tuo la rg e s t banks in th e System had s u b s ta n tia l earnings in ex
cess o f expenses and d ivid en d s, f e a t seems to me to be the p o ssib le
r e s u lt o f the proposals, whereas,, th e procedure now in e ffe c t would
keep a l l o f the Banks in somewhat th e seme r e la t iv e p o s itio n regardless
o f th e le v e l o f earnings*
According to Mr. Hardy1s fig u re s , h is suggestion would re
s u lt in s u b s ta n tia lly Increased earnings fo r the F e d e ra l Reserve- Banks
o f New York, Chicago* and, {to a s iu a lle r ex te n t) P h ila d e lp h ia * a t the
expense o f the o th er n in e banks. In some cases, such as Eiehmond*
Kansas C ity , and D a lla s , the reduction in earnings would be proportion
a te ly very la r g e , I b e lie v e i t would be h e lp fu l i f -the proposed orocedures could be a p p lie d to such years ea 193® and 1941 to show ishat 7
would happen in a perio d o f low earnings in r e la tio n to expenses and
dividends >
I t is d i f f i c u l t to ex p lain '>vhen one o r more o f th e tw elve
Federal Reserve Banks f a i l in any one y e a r to cover expenses and d i v
idends and i t is embarrassing to a bank to be in tlm t p o s it io n . I t
I s not tru e th a t the present arrangement ‘•puts a premium on in e ffic ie n c y *
by basing th e allocation p rim e ,rily on expenses and dividends. I t is
expected th a t e ffe c tiv e checks on Federal Reserve Bank expenditures w i l l
be m aintained independently o f the a llo c a tio n procedure and th a t th e
expenses on which the procedure is based c m be ju s t if ie d fo r each Fed
e r a l Reserve Bank.
F
ir
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Toi
H r* M o r r i l l
-2 -
Furtherm ore, I t is recognized by Mr* ffarc^r in the second
fo o tn o te on pagd 2 of hit mmmrmdvm th a t , i f a Bank has a d e f i c i t ,
tsap o rary supplenufital a llo c a tio n s o f s e c u ritie s could be made to e a rr e e t th e s itu a tio n .
I t i s easy to see how these supplemental a llo
c a tio n * could become more o r le s s pewsanent* When th a t occurs th s
th eo ry back o f th e si^gestod bases o f a llo c a tio n is abandoned in
o rd er to meet the problem, o f expenses, th e re fo re , i t would be my
suggestion th a t we re ta in , the .present b a sis # iic h 1 b e lie v e would
s a t is f a c t o r ily meet a l l c o n d itio n s ' and would enable a l l o f th e
Banks to continue d e s ira b le services as long as the earnings o f ths
Syetosa would perm it ra th e r than re q u ire some o f th e Banks to d is
continue such services because o f la c k o f earnings o r continue than
only by showing o p eratin g d e fic it® *
Hie present procedure o&Hs f o r th e a llo c a tio n on th e basis
o f expenses and dividends and then on th e basis o f average holdings
in th s System Aooount f o r 'ths preceding f iv e years* I f i t i s b e lie ve d
to be'necessary to recognise such th in g s as t o t a l a s s e ts , n e t worth*
c a p ita l accounts, surplus or reserves, consideration might, be given
to a procedure which would ( l ) a llo c a te s u ffic ie n t s e c u ritie s to cover
expenses and dividends and (2) a llo c a te the remaining s e c u ritie s on an
agreeable basis th a t would take these se ve ra l iteras in to aooount* I f
th a t would only r e s u lt in g iv in g Hew Xorfc and Chicago la r g e r earnings
th e re would seeai to be no p o in t in the change*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
K'Y
$ yy/
f/
d eralR eseh v e
'h
B ank
OF
Ka n s a s C i t y
May 8, 1945
Mr* pdwa^a L. Smead
BoaAl of Governors of the Federal
ferve System.
Wash M g t on, D . C .
Dear Mr. Smead:
j~A
Confirming my telegram/of even date, the meeting of the
Subcommittee on Allocation of Securities in the Open Market
Account is called for May 19, 9'30 a.m., at the offices of
the Board in Washington.
Sincerely,
Charles 0. Hardy
Vice President
P.S.
I mailed you yesterday photostats of a letter from Mr. Gilbert
and a memorandum prepared by Mr. Dolley, suggesting a plan
of allocation. To reduce the bulk of exhibits I omitted
from the photostat copies all but the first quarter of 1941,
1942 and 1943. I shall mail out within a day or two a memo
randum suggesting another approach.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
. .-rOS'i'ci oi G o r e m o r s
of tfce
F e d e r a l B e s e r r e S y s te m
Leased Wire Service
Received at Washington, D.G.
5
I0
MB** W fJllB XSCfKl
d;
m
•.) A
'mmmaiimrm
l/ 1 9 4 5 x > td- j
•IV
WA95G005BB WASH J8 7 KC 8 - 1 5 8
EDWARp L SMEAD
MEETfNG SUBCOMMITTEE ALLOCATION OF S E C U R ITIE S CALLED FOR WASHINGTON
MORNING MAY 19
It
C 0 HARDY.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
BOARD OF GOVERNORS
O f TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V IC E
WASHINGTON
May 7. 19U5,
Hardy
Kansas City
B*t#ltoday# Any day May 15 to 19 lneluoiro oatiofaotory
to no*
Steoad
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TE liJfiG R A M
3 o a r d of G o v e r n o r s
of tiie
F e d e r a l B © se rv e S y ste m
Leased W ire Service
Eeceived at Washington; '"D.b.
$» V- %*<,
W-4
*3 4 - 3
WAllGClSBD WASH J 1 5 3 KC 7 - 5 2 3
EDWARD L SMEAD , BOARD
SUGGESTED WEEK IMPOSSIBLE FOR TWO MEMBERS. HOW ABOUT ANY DAY
MAY 15 1® 1 9 INCLUSIVE?
HARDY.
r----—
---
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
BOARD OF GOVERNORS
o r TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V I C E
WASHINGTON
Jfcjr 5. 19*4.5.
* fiuwM City
W*«k of Ifcy 21*26 satisfactory to m$ for mooting of
Subooanitt*# on Jtoallooation of Opon Market Soeuritioa,
BICEAD
W^Te
R eproduced from the Unclassified / Declassified Holdings of the National Archives
F e d e r a l R e s e r v e B ank
OF
Ka n s a s C it y
May 5, 1945
Mr. E. L. Smead
Board of Governors of the
Federal Reserve System
Washington 25, D.G.
Dear Mr. Smead:
In my letter to you of May 3\in listing the
names of the members of the Presidents’ Conference Com
mittee on Allocation of Open Market Securities, I regret
that through inadvertence Mr. Sproul was not shown as a
member of the committee.
It will be appreciated if you
will add Mr. Sproul’s name to the list of those I fur
nished you as comprising this committee.
Very truly yours,
f H . Gr. Leedy
President
HGL:SMF
ftlS
Reproduced from the Unclassified I Declassified Holdings of the National Archives
jr*---a
‘J*~ntwwwwini1mu1rmi^iiiijiiitii)»»iniimn1--- 1
jMri'f !*
WWTOW
•’ AY 2 61945
F ed er a l R e s e r v e B ank
%«•* '-4
O P
%■
Ka n s a s C i t y
May J, 1945
AIR MAIL
Mr. Edward L. Smead
Board of Governors of the Federal Reserve
System
Washington, D. C.
Dear Mr. Smead:
Mr. Leedy, who is chairman of the Presidents’ Conference
Committee on Reallocation of Open Market Securities, advises
me of the appointment of a subcommittee consisting of Messrs.
Bopp, Bowman, Gentry, Rouse, and myself, with Mr. Smead as
associate member, and has asked me to serve as chairman.
It seems desirable that the subcommittee have a meeting
well in advance of the next meeting of the Presidents* Conference.
This is to suggest that we meet in Washington some time during
the week of May 21-26, Any day that week would be satisfactory
to me; I am suggesting the 23rd merely to make it specific. Will
you please wire me whether this arrangement will be satisfactory,
and if not, suggest an alternative date.
The week following that would be rather inconvenient for me,
but a date from June 6-13 would be possible.
We have received an extended discussion of the problem from
President Gilbert, which I will have photostated and distribute
within a few days. I shall also try to prepare a memorandum
embodying my own suggestions for distribution well in advance and
hope that other members of the subcommittee will find time to do
likewise. If convenient, I would suggest that copies of sugges
tions submitted by any member be sent direct to the other members,
to save time in distribution.
Sincerely
BUY
UNITED
STATES
VIN OS
>k#
Reproduced from the Unclassified I Declassified Holdings of the National Archives
t*
^
sscn ia]
may
2 61945
2
i i _____
OF
Ka n s a s C it y
May 3, 1945
Mr. E. L. Smead
Board of Governors of the
Federal Rersetve; System
Washington 25, D. C.
Dear Mr. Saead:
As you know, a special committee was appointed at the last
meeting of the Presidents’ Conference to explore the possibilities of
devising a different type of formula for allocating securities in the
Open Market Account and also to make recommendations for bringing about
greater uniformity between the Federal Reserve banks with respect to
additions to surplus accounts and reserves for contingencies.
Q
The committee which was appointed consists of Messrs. Wil
liams, McLarin, Gilbert, and myself as chairman.
\
After conferring with the other members of the committee, a
subcommittee consisting of the following has been appointed:
Karl R. Bopp, Director of Research, Philadelphia
V. K. Bowman, Vice President, Atlanta
W. D. Gentry, First Vice President, Dallas
Robert G. Rouse, Vice President, New York
C. 0. Hardy, Vice President, Kansas City,
Chairman
Edward L. Smead, Board of Governors,
Associate
Your appointment, as well as that of Mr. Rouse, is in ac
cordance with the understanding had at the time the Presidents’ Con
ference committee was appointed. Quite aside from that understanding,
however, I am sure that none of us would want to have embarked on the
work involved, particularly that involving the allocation of securities
in the Open Market Account, without the assistance of both you and Mr.
Rouse on account of your long experience in that field.
Mr. Hardy, as vice chairman of the subcommittee, expects to
call a meeting of the subcommittee within the near future and in the
course of the next few days will conmunicat^with yt)pi in that connection.
1 r
3*^03
BUY
■u
nto
PATES
VLI2? HGLrSMF
Allocation Open Market Securities
#
*
................... ■
Reproduced from the Unclassified/ Declassified Holdings of the National Archives
COPY
FEDERAL RESEH72 BANK
-OF DALLAS
April 26, 1945
Mr. H. G. Leedy, Chairman
Special Committee on Allocation of Securities
in the System Open Mar!:et Account
Federal Reserve Ban* of Kansas City
Kansas City, Missouri
L>ear Savin:
Last summer I discussed with Lr. J. C. Dolley, our Director of
Research, the existing method of allocating securities in the open market
account, ss well as so;.ie of the changes v.hich v:ere being considered at
that tiMe, and requested him to study the :natter with the view of deter
mining whether it rould be feasible to revise the formula so that allo
cations could be made on the basis of the ability of each bank to carry
its proret* share of the securities in the account instead of on the
basis Ox its need for earnings with which to cover estimated expenses
and dividends* hr* Dolley submitted the attached memorandum to me, and
although it was prepared primarily to show how certain proposed changes,
if adopted v;ould affect the earnings and the reserve position of this
ban!', 1 believe that the neraoranduja may be of some interest to you as
well as to the members of the subcommittee you appoint to study the allo
cation procedure in all of its aspects.
'.Vhen the holdings of Government securities being carried by
each of the Federal Reserve banks were transferred to the open narket
account in 1936, the total earnings of the tv/elve banks were only slightly
in excess of their estimated expenses and dividends. Since that tiae
Government securities held in the open market account have increased
from about *2,400,000,000 to slightly core than 320,000,000,000, and on
the basis of estimates submitted by Hr, Rouse at the last meeting of the
Open Market Committee, eamii^s for the System will exceed expenses and
dividends in 1945 by about $70,000,000. Since it is no longer necessary
to allocate participations in the open market account solely on the basis
of providing each bank with sufficient earnings to cover its estimated
expenses and dividends, and as it is quite obvious that earnings for the
System will be very hish for several years, it seems to me that the chief
factor to be considered in making allocations hereafter should be the
ability of each bank to carry its proportionate share of the load. If
pending legislation fixing minimum sold reserve requirements against
note and deposit liabilities is finally passed, each bank will probably
Reproduced from the Unclassified I Declassified Holdings of the National Archives
-2-
be able to carry its share of the securities in the open market account
without difficulty, even on the basis on which the allocations are now
made. However, as total holdings of securities in the open market ac
count continue to increase, which is likely for another year or two at
least, some of the banks will be confronted with the same problem which
now confronts them with respect to their ability to accept in full their
regular participations in the account.
The present method of allocating securities in the open market
account, except during periods such as the present when System earnings
are exceptionally high, penalizes a bank which reduces its expenses through
economical operation, because it automatically reduces the bank’s partic
ipation in the account and thus its share of the earnings. On the other
hand, there is no restraining influence on a bank to keep it from increas
ing expenses substantially because of the knowledge that its participa
tion in the open market account would be increased sufficiently to pro
vide it with enough earnings to cover any increase in expenses. The present
method of making allocations and distributing earnings, as well as profits
and losses, is unsatisfactory from another standpoint, that is, because
of the way in which the very substantial earnings of the New York and
Chicago banks from bills held in their option accounts are treated at
this time. Allocations made on the basis of a bank’s ability to carry
the securities instead of on its need for earnings would overcome this
difficulty partially, if not entirely. I think that our committee, as
well as the subcommittee, should carefully consider v.hether the bank
should continue to carry bills in their option accounts as at present,
or whether they should transfer the bills to the open market account on
the date purchased or on the following day.
In trying to formulate some plan which would at least partially
overcome some of the weaknesses in the present plan, as referred to in
this letter, it occurred to me that it might be feasible to adopt a for
mula which would give consideration to a bank’s ability to carry securities
and also to its estimated need for earnings. In other words, instead of
continuing the present formula or adopting one based solely on a bank’s
ability to carry the securities, it seems to me that a combination of
those two ideas might be practicable. For instance 25 percent of the
securities in the open market account could be allocated on the basis of
the ratio of each bank’s estimated expenses and dividends to total esti
mated expenses and dividends for the System, and the remaining 75 percent
could be allocated on the basis of the ratio of the total resources of
each bank to the total resources of the System. These percentages could
be fixed at 20-80, 33 1/3-66 2/3, or on whatever basis a careful study
indicated would be proper. The percentages finally agreed upon could
then be applied either to the total amount of securities held in the open
market account, or separately to the amount of interest-bearing securi
ties in the account and to the amount of bills in the account. The
r ...~ '
Reproduced from the Unclassified / Declassified Holdings of the National Archives
r~
-3 fornmla I have suggested for consideration is applicable whether bills
acquired under repurchase options are carried by each bank separately
as at present, or whether they are transferred to the open market account.
If it should become necessary again to give paramount consid
eration to the equitable distribution of earnings among the twelve banks,
the present .method of allocating securities in the open market account,
or some modification thereof, could be readopted.
Please advise me as soon as possible the date selected for the
first meeting of the subcommittee so Mr. Gentry will have ample time in
which to make transportation reservations.
With kindest personal regards, I am,
Sincerely yours,
/s./ R. R. Gilbert
E. R. Gilbert
President
Reproduced from the Unclassified I Declassified Holdings of the National Archives
ritten in August, 1944)
ALLOCATION FORMULA FOR THE OPEN MARKET ACCOUUT.
The formula used at present tc allocate the incone and trading profit or
loss on the Open Market Account is based .upon the operating expense and dividend
requirements of the individual Federal Reserve Banks.
Tho principle of this formula
was adopted in 1936 at a time when the net profit margin over dividend requirements
of the banks was narrow, the object being to assure that the available income would
be shared in accordance with actual needs.
Had another basis of distribution been
adopted, it was probable that some banks might have received insufficient income to
cover dividend requirements while other banks might have received a substantial sur
plus.
To the extent that income from the Open Market Account was adequate to cover
the operating expense and dividend requirements of the entire System, this formula
guaranteed that each bank would be protected against a possible shortage.
The situation which led to the adoption of this formula no longer ob
tains; further, it is not likely to exist for many years to come.
From a level of
some 2.4 billion dollars, the Account has grown to approximately 11.3 billion dol
lars and, despite a sharp reduction in the average rate of return, it now yields in
come (exclusive of trading profit) about 50 per cent in excess of the aggregate
operating expense and dividend requirements of the entire System.
This margin of
excess earnings seems certain to grow, at least for the duration of the war as the
Account is expanded to provide member bank reserves.
After the war ends, there is
good reason to believe that the Open Market Account will grow further in order to
provide member banks with reserves to purchase additional Government securities
and quite possibly to expand customer loans.
Even if the Account does not grow,
there is little reason to expect a shrinkage in the immediate post-war period
as that would involve either a substantial retirement of the Government debt or a
program of Open Market selling, either of which now appears to be unlikely.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
It is reasonable to believe, therefore, that for many years the income
from the Open Market Account will far exceed the operating expense and dividend
requirements of the System.
If this is true the justification for using the pre
sent allocation formula-no longer exists.
quite obvious.
The basic weakness of that formula is
It not only provides no incentive for the individual banks to econo
mize, but it places a premium on incurring; excessive operating: expenses.
bank spends, the more income it is entitled to pet.
The rr.ore a
It is similar to the cost-plus-
profit formula which has given rise to so much criticism in the case of certain v/ar
contracts.
If the principle of the present allocation formula is unsound and if there
is no present need for allocating on this basis, r/ould it not be desirable tc ex
plore the possibility of adopting a more defensible formula?
bases are suggested:
total assets and total net worth.
T.vo possible formula
Both reflect size, but of
the two, the former would seem to be much the better measure as the ratio of lia,>ili
ties to net worth varies rather widely from bank to bank.
Theoreticall'r, at least,
the operating expenses of a bank should vary directly with its size.
To the ex
tent that this is true, a formula based on total assets would allocate income
roughly in accordance with operating expense requirements.
Table 1 (at the end of this memorandum) indicates ar^roxirntely the dis
tribution of the income and trading profit realized from the Open Karket Account
which would have resulted during the period January 1, 1941 - June 30, 1944, if
a formula based on the total assets of the individual banks had been used in ar
riving at these figures.
The average total assets of the individual bank was com
puted quarterly by adding the total assets for the last reported week in each
month and dividing the aggregate by three.
(This procedure yields only an approxi
mate average of the total assets during the quarter, but it was used in order tc
Reproduced from the Unclassified / Declassified Holdings of the National Archives
I
save time*)
A 100 per cent distribution of the resulting averages for the 12 banks
was then calculated and this percentage distribution was applied to the income and
trading profit realized on the Open l^arket Account for the following quarter*
Table 2 (at the end of this memorandum) indicates the approximate distri
bution of the income and trading profit realized from the Open J-arket Account for
the sane period on the basis of the average net worth of the individual Federal
Reserve Banks.
Net worth of the individual banks was averaged in the sam^e way as
was total assets in the preceding table, and the percentage distribution found for
one quarter was then applied to the 11100150 and trading profit realized from the
Account during the following, quarter.
Table 3 compares the experience of the Federal Reserve Bank of Dallas
under each of the three formulas.
The first two columns of the table present the
actual receirts realized under the formula in use; the next two columns show the
results which would have been realized with a formula based on total assets; and the
lest two columns indicate the results using a formula based on net worth.
From tiiis tabulation two facts are clearly evident.
Tirst, use of either
of the proposed formulas v;o ;ld havo produced much less income for the Bank during
the period surveyed than the formula actually used.
Total receipts vincome and
trad in'- profit) actually realized were ;^,SOI,1 0 2 .70 as compared with .,6 ,0 1 3 ,1 1 4 .6 2
whic'i wo 'Id have been realized under the total asset formula, and - 7 ,1 5 0 ,8 9 6 .6 1 under
the net worth formula.
The latter two formulas, therefore, would have produced
3? per cent and 27 per cent less return, respectively, than the formula which was
actually used.
For the second quarter of 1944 the return realized from either the
total ascet or the net worth formula would have been approximately 34 per cent
le ss than the actual experience.
http://fraser.stlouisfed.org/
iFederal Reserve Bank of St. Louis
- 3 -
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Table 3* Share o f th e F ed eral R eserve Bank o f D allas
in th e Income and Trading P r o f i t R ealized from
th e System Open Market Account on th e B asis of
Three D iffe re n t A llo c a tio n Formulas f o r th e Period
January 1 , 1 9 4 1 , t o June 3 0 , 1944
Formula Based on
P re se n t F o r m u l a ________T o ta l As s e ts ______
Trading
Trading
Income
P ro fit
Income
P ro fit
Period
1941
1 s t q u ar.
2nd q u ar.
3rd q u ar.
4 th q u ar.
year
*
3 8 4 ,7 0 6 .2 4
4 0 1 ,8 5 7 .2 8
3 9 7 ,6 5 8 .9 2
3 6 3 ,8 2 5 .5 4
1 ,5 4 8 ,0 4 7 .9 8
•:
1 3 ,7 1 0 .2 3 5
5 ,6 8 1 .1 6
0.00
3 1 ,6 8 5 .1 9
5 1 ,0 7 6 .5 8
1 6 9 ,5 3 6 .6 5 %
1 8 3 ,2 9 9 .4 6
1 8 9 ,6 5 1 .6 9
2 0 0 ,9 5 2 .0 2
7 4 3 ,4 3 9 .8 2
Formula Based on
’J e t worth
Trading
Income
P ro fit
6 ,2 4 9 .3 1 $ 3 0 5 ,1 7 7 .5 9 i
2 ,7 1 2 .7 6
3 0 0 ,4 5 9 .3 8
0 .0 0
3 1 1 ,1 2 1 .0 5
1 5 ,9 2 0 .3 0
3 1 9 ,0 7 4 .2 1
2 4 ,8 8 2 .3 6 1 ,2 4 2 ,4 3 2 .2 3
1 1 ,2 4 9 .1 9
4 ,5 3 5 .4 6
0 .0 0
2 5 ,3 2 5 .9 8
4 1 ,1 1 0 .6 3
1942
1 s t q u ar.
2nd q u ar.
3rd q u ar.
4 th q u ar.
ar
4 1 3 ,9 3 7 .7 3
4 2 7 ,0 1 5 .4 3
4 7 5 ,3 4 7 .1 2
6 9 3 ,4 7 1 .6 9
2 ,0 0 9 ,7 7 1 .9 7
5 3 ,6 7 2 .0 7
1 6 ,4 5 5 .0 2
5 8 ,7 0 2 .1 9
1 1 .7 3
1 2 8 ,8 4 1 .0 1
2 3 0 ,5 4 4 .1 4
2 4 1 ,0 6 2 .8 2
2 7 3 ,1 1 4 .7 1
4 3 2 ,3 7 5 .4 5
1 ,1 7 7 ,0 9 7 .1 2
3 0 ,2 8 6 .2 8
9 ,3 8 3 .0 9
3 3 ,5 1 0 .9 6
7 .5 9
7 3 ,5 9 7 .5 2
3 2 7 .5 1 2 .4 9
3 3 8 ,5 5 3 .4 8
3 7 7 .9 9 3 .5 0
5 3 4 ,3 8 9 * 7 0
1,576.,44 9 .2 6
4 3 ,0 2 4 .8 9
1 3 ,1 7 8 .6 4
4 6 ,9 4 5 .5 6
0 .3 7
1 0 3 ,1 5 8 .4 6
1943
1 s t q u ar.
2nd q u ar.
3rd q u a r.
4 th q u ar.
year
6 9 1 ,0 4 1 .3 2
5 5 3 ,6 9 4 .4 9
6 1 3 ,0 3 3 .3 0
3 0 0 ,1 3 9 .8 6
2 ,7 5 7 ,9 0 8 .9 7
9 4 c ,4 0 5 .1 1
3 7 2 ,5 9 1 .2 3
5 5 ,6 6 4 .1 0
1 3 ,1 1 9 .6 8
1 ,3 8 7 ,7 8 0 .1 2
4 8 9 ,1 8 4 .4 5
4 0 5 ,2 8 3 .1 8
3 6 2 ,2 8 0 .9 9
4 3 6 ,3 6 3 .1 6
1 ,6 9 3 ,1 1 1 .7 8
6 8 0 ,9 1 6 .2 2
2 8 1 ,0 1 0 .4 7
4 2 ,7 8 2 .6 7
2 7 ,3 8 5 .8 6
1 ,0 3 2 ,0 9 5 .2 2
5 4 2 ,0 5 5 .5 5
4 3 1 ,8 4 8 .2 0
3 ; 1 0 ,0 8 6 .7 2
4 4 6 ,3 9 6 .7 1
1 ,8 0 2 ,3 8 7 .1 3
7 5 4 ,5 0 6 .0 3
2 3 9 ,4 2 3 .8 0
4 4 ,8 8 5 .6 3
1 0 ,2 3 2 .8 9
1 ,1 0 9 ,0 5 5 .2 5
1944
1 s t q u ar.
2nd q u ar.
h a lf y e a r
8 6 2 ,1 3 1 .4 7
1 ,0 1 8 ,3 6 5 .8 9
l , c 8 0 , 4 9 7 .3 6
2 0 ,8 0 2 .5 7
7 ,3 7 6 .1 4
3 7 ,1 7 8 .7 1
5 7 2 ,2 0 2 .9 7
6 6 8 ,5 1 5 .2 5
1 ,2 4 0 ,7 1 8 .2 2
2 2 ,6 1 4 .2 4
5 ,5 5 8 .3 4
2 8 ,1 7 2 .5 8
5 7 3 ,4 5 1 .0 0
6 7 2 ,5 9 6 .7 5
1 ,2 4 6 ,0 4 7 .7 5
2 2 ,6 6 3 .5 7
5 ,5 0 2 .2 8
2«,255.85
-------------------------------------------------------------------
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Second, the formula based on the net worth would have yielded a larger re
turn in every quarter than the total asset formula.
However, the margin of advantage
of the net worth formula narrowed rapidly after January 1, 1943, and during the first
half of 1944 almost disappeared.
This, of course, reflected the relatively more
rapid growth of total assets as compared with net worth.
Should either of the above
formulas be adopted, the total asset formula could be expected to yield a larger
return to the Bank than the net worth formula.
This would follow because the amount
carried to surrlus each year would be substantially less than in the recent past.
The 34 per cent prospective drop in return from the Open liarket Account
under the total asset or net worth formula, of course, argues very strongly against
the adoption of either.
On the other hand, this reduction in income could probably
be absorbed without difficulty.
For the year 1943, $1,549,848 was carried to sur
plus; under the total asset formula this figure would have dropped to $129,366 and
under the net worth formula to $315,601.
The year 1943, however, is not a good year
for comparison because of the relatively large and non-recurrent trading profit
realized on the Open Market Account during that period.
A much better comparison
would be had from the experience of the first half of 1944.
The operating expense
and dividend requirements of the Bank during this period totaled $1,165,541.
In
come from the Open Market Account (excluding trading profit) during this half year
would have a e l a t e d $1,240,718 under the total asset formula and $1,246,048 under
the net worth formula, which would have provided a slight margin of coverage.
As
the income from the Open Market Account grows, this margin could be expected to widen.
In this connection one other observation might be made.
There is probably
little advantage to a reserve bank in building up a huge surplus account.
As of
July 26, 1944, the combined surplus cf the Federal Reserve Bank of Dallas was 195 per
cent of the paid-in capital account.
This surplus of $9,800,000 would appear to be
-
5 -
Reproduced from the Unclassified / Declassified Holdings of the National Archives
adequate to c a r e f o r p o s s ib le o p e ra tin g c o n t in g e n c ie s .
To b u ild the surplus to
s u b s t a n t i a l l y h igh er l e v e l s i n v i t e s l e g i s l a t i o n to c o n f i s c a t e a p o r t io n o f the a c
cum ulation.
-The requirement to purchase FDIC s to ck in 1934 i s a case in p o i n t .
This would suggest t h a t the d e s i r a b i l i t y of adopting an a l l o c a t i o n formula which
would leave a la r g e amount o f n e t income to be c a r r i e d to surplus each y e a r , i s more
apparent than r e a l .
I f e i t h e r of the suggested formulas i s acb pted, Open Market Account in
come would be t r a n s f e r r e d from some banks to o t h e r s , g e n e r a l ly from the sm aller to
the l a r g e r i n s t i t u t i o n s .
The surplus accounts o f these l a t t e r banks would grow
much more r a p i d ly than in the case of the form er.
However, i f l e g i s l a t i v e con
f i s c a t i o n should be ordered subsequently, i t would be applied pro r a t a to a l l banks
w ith the r e s u l t t h a t the la rg e surplus accounts would be le v ie d upon more h e a v ily
than the s m a ll e r .
I f t h i s should o c c u r , much of the apparent advantage in building
the l a r g e r surplus accounts would be l o s t .
One f u r th e r p o in t should be c on sid ered .
I f e i t h e r of the suggested form
u la s should be adopted, the re s e rv e r a t i o s of the in d ivid u al r e s e rv e banks would be
m aterially affe cte d .
In g e n e r a l, the banks whose shares in the Open Market Account
decreased would improve t h e i r re s e rv e p o s i t i o n s , while the banks whose shares in
cre a se d would weaken t h e i r r e s e rv e r a t i o s .
I t w i l l be i n t e r e s t i n g to check the
a c t u a l changes in the re s e rv e r a t i o s of the in d iv id u al banks i f one of the suggested
formulas should be put in to e f f e c t .
For t h i s purpose the formula based on t o t a l
assets i s used and the e f f e c t i v e date of change i s assumed to be March 29, 1944.
(This date i s used to avoid computations which would have been n e cessary i f a more
r e c e n t date had been u s e d .)
The r e s u l t s of the change in the a l l o c a t i o n formula on
r e s e r v e p o s i ti o n s are i n d ic a te d in ta b le 4 .
- 6 -
1.*vr-v *'
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Table 4* Reserve Position of the Individual Federal Reserve
Banks if .Allocation Formula for Open Market Account Based
on Total Assets were Adopted as of 2£arch 29, 1944
Actual
Reserve
Ratio
Bank
58%
60
53
63
61*
67
67
44
53
59
55
66
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
!inneapolis
tansas City
Dallas
San Francisco
Actual
Share in
Open
J!kt* Acct*
Share in
Open Mkt.
Acct* under
Hew Formula
Increase
in
Reserves
(thousands)
(thousands)
(thousands)
#
3 526,041
2,399,392
538,684
744,340
479,925
429,700
1,432,164
342,561
201,885
350,764
273,270
970,852
% 139,270
665,311
1,938,044
678,554
952,454
579,938
482,672
935,281
425,988
275,200
452,519
406,434
897,183
Decrease
in
Reserves
(thousands)
$ 461,348
133,870
20'?,114
1-/13
••2, 72
496,883
63,427
73,315
101,755
133,164
73,669
The new formula would narrow slightly the spread in the individual bank
ratios*
Vftereas, the former range was from 44 per cent to 67 per cent, the new
range would be from 51 per cent to 70 per cent*
The ratio of the Federal Reserve
Bank of Dallas would be improved very substantially rising from 55 per cent to 68
per cent*
Against this advance, however, must be balanced a prospective loss of
about one third of the return from the Open Market Account*
- 7 -
New
>sen
65%
55
66
70
67
70
58
51
62
56
68
64
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Table 1 . D is t r i b u t i o n of th e Income and Trading P r o f i t
R ealized from th e System Open Market Account on the
B a s is c f Average T o tal A ssets of th e Individual Banks
by Q uarters from January 1 , 1 9 4 1 , to June 3 0 , 1944
Ave. T o ta l A ssets
in Preceding
Q uarter
Per Cent of
Aggregate
A ssets
Share of
Net Income
Share of
Trading
P ro fit
( i n thousands)
Boston
New York
P h ilad elp h ia
Cleveland
Richmond
At la n ta
Chicago
S t . Louis
Minneapolis
Kansas C ity
D allas
San F r a n c is c o
Total
*
1 ,4 2 7 ,3 4 7
1 0 ,5 7 0 ,4 4 1
1 ,2 9 7 ,0 1 9
1 ,6 7 2 ,1 0 8
7 5 1 ,9 9 5
5 1 5 ,8 5 5
3 ,3 6 7 ,6 8 7
6 5 5 ,6 3 7
3 9 3 ,2 2 2
5 6 9 ,8 6 2
4 0 3 ,5 5 4
1 ,4 0 7 ,2 1 1
23*,031,939
6 .1 9 7 3
4 5 .3 9 4 7
5 .6 3 1 4
7 .2 6 0 0
3 .2 6 5 0
2 .2 3 9 7
1 4 .6 2 1 8
2 .3 4 6 7
1 .7 0 7 3
2 .4 7 4 2
1 .7 5 2 1
6 .1 0 9 8
*
5 9 9 ,6 6 2 .9 8
4 ,4 4 0 ,8 6 1 .7 5
5 4 4 ,9 0 5 .3 8
7 0 2 ,4 9 1 .9 3
3 1 5 ,9 2 7 .8 4
2 1 6 ,7 1 7 .7 9
1 ,4 1 4 ,8 3 4 .2 3
2 7 5 ,4 5 2 .3 1
1 6 5 ,2 0 1 .7 2
2 3 9 ,4 0 8 .4 7
1 6 9 ,5 3 6 .5 5
5 9 1 ,1 9 6 .3 1
2 2 ,1 0 4 .2 6
1 6 3 ,6 9 5 .2 2
2 0 ,0 8 5 .3 3
2 5 ,8 9 4 .6 5
1 1 ,6 4 5 .4 6
7 ,3 8 8 .4 6
5 2 ,1 5 2 .4 0
1 0 ,1 5 3 .4 9
6 ,0 8 9 .5 2
8 ,8 2 4 .3 7
6 , 2 4 9 .3 1
2 1 ,7 9 2 .1 7
9 ,6 7 6 ,1 9 7 .3 6
3 5 6 ,6 7 5 .6 4
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Table 1* D i s t r i b u t i o n o f the Income and Trading P r o f i t
Realized from the System Open Karket Account on the
3 a s i s of Average T o tal A ssets of t h e Individual Banks
by Q uarters from January 1 , 1 9 4 1 , t o June 3 0 , 1944
F i r s t Quarter o f 1942
Ave. Total A ssets
in ire ced in g
quarter
Per Cent of
Aggregate
A ssets
Share of
Trading
P rofit
Share of
Net Income
( in thousands')
boston
New York
f h ila d e lp h ia
Cleveland
Richmond
A tlan ta
Chicago
S t. Louis
I- inn eap olis
Kansas City
Dallas
San F r a n c is c o
Total
$
1 ,4 9 0 ,2 4 8
9 ,1 5 2 ,5 5 8
1 ,5 5 2 ,6 7 6
2 ,0 3 7 ,1 3 3
1 ,0 4 1 ,7 5 1
c 9 2 ,0 5 0
3 ,9 5 1 ,9 7 6
8 0 3 ,5 7 4
4 7 7 ,2 7 3
6 a6 ,9 6 4
5 2 5,564
1 ,8 0 8 ,9 7 9
24,231,045
6 .1 5 0 2
3 7 .7 7 2 0
6 .4 0 7 8
8 .4 0 7 1
4 .2 9 9 2
2 .8 5 6 1
1 6 .3 0 9 6
3 .5 1 5 3
1.96S7
2 .8 7 6 3
2 .1 7 0 2
7 .4 6 5 5
*
6 5 3 ,3 4 6 .5 1
4 ,0 1 2 ,5 8 5 .6 6
6 8 0 ,7 1 1 .8 1
8 9 3 ,1 0 0 .9 5
4 5 6 ,7 1 1 .5 4
3 0 3 ,4 0 8 .5 0
1 ,7 3 2 ,5 9 7 .3 5
3 5 2 ,2 9 6 .3 5
2 0 9 ,2 4 4 .6 8
3 0 5 ,5 5 4 .3 8
2 3 0 ,5 4 4 .1 4
7 9 3 ,0 7 3 .1 3
10,623,175.00
£
8 5 ,8 2 9 .2 8
5 2 7 ,1 2 8 .1 6
8 9 ,4 2 4 .2 2
1 1 7 ,3 2 5 .5 1
5 9 ,9 9 7 .6 0
3 9 ,8 5 8 .3 8
2 2 7 ,6 0 9 .0 6
4 6 ,2 8 0 .7 1
2 7 ,4 8 8 .2 0
4 0 ,1 4 0 . 2 8
3 0 ,2 8 6 .2 8
1 0 4 ,1 8 4 .9 9
1,395,552.67
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Table 1 . D is t r i b u t i o n o f the Income and Trading P r o f i t
R ealized from th e System Open Market Account on th e
B a s is o f Average T o ta l A ssets of t h e Individual Banks
by Quarters from January 1 , 194 1 , t o June 3 0 , 1944
F i r s t Quarter of 1943
Boston
New York
P h ilad elp h ia
Cleveland
Richmond
A tl a n t a
Chicago
S t . Louis
Minneapolis
Kansas C ity
D allas
San F ra n c isc o
Total
Ave. T o tal A ssets
in Preceding
Q uarter
Per Cent o f
Aggregate
A ssets
( in thousands)
*
1 ,7 1 1 ,3 1 3
8 ,6 6 7 ,3 3 6
1 ,6 6 0 ,4 2 1
2 ,4 0 9 , 1 3 7
1 ,4 3 3 , 2 8 5
1 ,0 4 8 ,2 0 3
4 ,5 0 0 ,2 4 7
1 ,0 3 9 ,0 1 5
6 2 4 ,5 9 2
9 8 9 ,8 6 7
7 6 4 ,6 5 1
2 ,6 7 0 , 7 1 3
6 .2 1 8 7
3 1 .4 9 6 1
6 .0 3 3 8
8 .7 5 4 5
5 .2 0 8 4
3 .8 0 9 0
1 6 .3 5 3 4
3 .7 7 5 7
2 .2 6 9 7
3 .5 9 7 1
2 .7 7 8 6
9 .7 0 5 0
2 7 ,5 1 8 ,.7 7 9
£>hare of
Trading
P ro fit
Share of
Net Income
i
1 ,0 9 4 ,8 2 8 .8 0
5 ,5 4 5 ,0 2 3 * 4 8
1 ,0 6 2 ,2 7 6 .3 7
1 ,5 4 1 ,2 6 7 .2 7
9 1 6 ,9 6 1 .1 6
6 7 0 ,5 9 0 .7 9
2 ,8 7 9 ,0 8 6 .2 0
6 6 4 ,7 2 8 .1 8
3 9 9 ,5 9 0 .4 2
6 3 3 ,2 8 4 .8 8
4 8 9 ,1 8 4 .4 5
1 ,7 0 8 ,6 0 6 .8 7
1 7 ,6 0 5 ,4 2 8 .8 7
4
1 , 5 2 3 , 9 3 7 . 85
7 ,7 1 8 ,3 4 9 .3 0
1 , 4 7 8 , 6 2 6 . 75
2 , 1 4 5 , 3 5 4 . 15
1 , 2 7 6 , 3 5 6 . 45
9 3 3 ,4 2 3 . 26
4 , 0 0 7 , 5 2 0 . 09
9 2 5 ,2 6 2 . 86
5 5 6 ,2 0 6 . 56
8 8 1 ,4 9 5 . 62
6 8 0 ,9 1 6 . 22
2 , 3 7 8 , 2 8 1 . 12
2 4 , 5 0 5 , 7 3 0 . 23
If"11
' ™*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Table 1 . D i s t r i b u t i o n o f th e Income and Trading P r o f i t
R ealized from th e System Open Market Account on th e
B a s is o f Average T o tal A ssets o f the In d ivid u al Banks
by Q uarters from January 1 , 1 9 4 1 , t o June 3 0 , 1944
F i r s t Quarter o f 1944
Ave. T o tal A ssets
in Preceding
Quarter -
Boston
New York
f h i la d e l p h i a
Cleveland
Pi chrnond
A tla n ta
Chicago
S t. Louis
Minneapolis
Kansas C ity
Dallas
Sen F r a n c is c o
Total
( i n thousands)
£
1 ,9 0 8 ,2 0 5
9 ,1 9 1 ,7 9 4
1 ,9 9 6 ,4 7 0
2 ,8 2 3 ,6 8 7
1 ,8 1 6 ,6 8 8
1 ,5 7 4 ,4 5 4
5 , 4 2 3 ’, 0 9 1
1 ,2 9 0 , 1 9 2
7 6 6 ,2 5 4
1 ,3 0 8 , 1 8 8
1 ,0 2 0 ,3 9 2
3 ,6 0 8 ,0 5 0
3 2 , 7 2 9 ,4 6 4
Per Cent o f
Aggregate
A ssets
5 .6 3 0 2
2 8 .0 8 4 2
6 .0 9 9 9
8 .6 2 7 3
5 .5 5 6 7 •
4.81C 5
1 6 .5 6 9 4
3 .9 4 2 0
2 .3 4 1 2
3 .9 9 7 0 •
3 .1 1 7 7
1 1 .0 2 3 9
Share of
Net Income
£
•
1 ,0 7 0 ,0 3 8 .0 8
5 ,1 5 4 ,3 9 6 .6 9
1 ,1 1 9 ,5 3 7 .1 2
1 ,5 8 3 ,4 0 0 .1 5
1 ,0 1 9 ,8 4 1 .6 2
8 8 2 ,6 8 8 .7 9
3 ,0 4 1 ,0 4 3 .0 2
7 2 3 ,4 8 9 ,7 8
4 2 9 ,6 8 9 .0 6
7 3 3 ,5 8 4 .1 3
5 7 2 ,2 0 2 .9 7
2 ,0 2 3 ,2 5 6 .9 8
18,353,368.39
Share o f
Trading
P ro fit
*
4 2 ,2 8 9 .3 7
2 0 3 ,7 0 8 .7 9
4 4 ,2 4 5 .6 3
6 2 ,5 7 8 . 1 3
4 0 ,3 0 5 .5 3
3 4 ,8 9 2 .9 7
1 2 0 ,1 8 6 .1 7
2 8 ,5 9 3 . 3 0
1 6 ,9 8 1 .9 0
2 8 ,9 9 2 .2 5
2 2 ,6 1 4 .2 4
7 9 ,9 6 1 .8 8
725 ,3 5 0. 16
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Table 1 . D is t r i b u t i o n o f th e Income and Trading P r o f i t
R ealised from the System Open *%rket Account on the
B a s is o f Average T otal A ssets o f th e Individual Banks
by Q uarters from January 1 , 1 9 4 1 , to June 3 0 , 1944
Second Quarter o f 1944
Boston
New York
P h ilad elp h ia
Cleveland
Richmond
A tla n ta
Chicago
S t . Louis
Minneapolis
Kansas City
D allas
San F ra n cisco
Total
Ave. T o tal Assets
in Preceding
Quarter
Per Cent of
Aggregate
A ssets
( in thousands)
$
2 ,0 5 3 ,4 2 7
9 ,3 6 6 ,1 9 2
2 ,1 0 2 ,7 9 4
2 ,9 0 5 ,5 7 8
1 ,8 7 3 , 4 2 9
1 ,6 7 7 ,3 6 2
5 ,5 9 0 ,5 5 0
1 ,3 3 7 ,1 9 6
7 8 8 ,0 6 3
1 ,3 6 9 ,2 1 8
1 ,0 6 6 ,7 2 1
3 ,7 8 9 ,7 8 0
6 .0 5 3 7
2 7 .6 1 2 3
6 .1 9 9 2
8 .5 6 5 9
5 .5 2 3 0
4 .9 4 5 0
1 6 .4 8 1 4
3 .9 4 2 2
2 .3 2 3 3
4 .0 3 6 6
3 .1 4 4 8
1 1 .1 7 2 6
3 3 ,9 2 0 ,3 1 0
Share of
Net Income
i
1 ,2 8 6 ,8 8 3 .3 5
5 ,8 6 9 ,7 6 7 ,1 0
1 ,3 1 7 ,8 1 3 .4 4
1 ,8 2 0 ,9 2 1 .7 6
1 ,1 7 4 ,0 6 8 .2 1
1 ,0 5 1 , 1 9 8 . 1 4
3 ,5 0 3 ,5 8 2 .8 1
8 3 8 ,0 2 4 .9 3
4 9 3 ,8 8 2 .4 3
8 5 8 ,0 9 2 .3 0
6 6 8 ,5 1 5 .2 5
2,37.*- ,0 4 8 . 8 0
2 1 ,2 5 7 ,7 9 8 .5 2
Share of
Trading
P ro fit
4
1 0 ,6 9 9 . 74
4 8 ,8 0 3 . 06
1 0 ,9 5 6 . .'1
1 5 ,1 3 9 . 98
9 ,7 6 1 . 74
8 ,7 4 0 . 15
2 9 ,1 3 0 . 41
6 , 9 6 7 . 73
4 , 1 0 6 . 37
7 , 1 3 4 . 58
5 , 5 5 8 . 34
1 9 ,7 4 7 . 25
1 7 6 ,7 4 7 . 16
r~-------:
---------;
------------------------
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Table 2. Distribution of the Income and, Trading Profit
Realized from the System Open l&rket Account on the
Basis of Average Net 'north of the Individual Banks
by 'Quarters from January 1, 1941, to June 30, 1944
First Quarter of 1941
Boston#
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
Ave* Net <Vorth
in Preceding
quarter
Per Cent of
Total Met
Worth
(in thousands)
4
26,370
126,660
34,003
34,330
15,868
13,342
46,743
11,547
5,537
11,009
11,584
27,307
6.9073 .
34.4823
9.2578
9.3468
4.3203
3.632612.7265
3.1438
2.5966
2.?974
3.1539
7.4347
367,200
Share of
Trading
Profit
Share of
Net
Income
*
668,363.98
3,336,575.40
895,803.00
304,414.81
418,040.75
351,497.55
1,231,441.26
304,200.29
251,252.14
290,034.34
305,177.53
719,396.25
9,676,197.36
*
24,636.66
122,989.96
33,020.32
33,337.76
15,409.46
12,956.60
45,392.32
11,213.17
9,261.44
10,691.00
11,249.19
26,517.76
356,675*64
T " —---------------------;----------------- -
—
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Table 2 . D is t r i b u t i o n of tho Income and Trading P r o f i t
R ealized from th e System Open Market Account on the
B a s is of Average Net Worth o f th e Individual Banks
by Q uarters from January 1 , 1 941, t o June 3 0 , 1944
F i r s t Quarter of 1942
Ave • Net Vforth
in Preceding
Quarter
Boston
New York
P h ilad elp h ia
Cleveland
Richmond
A tla n ta
Chicago
S t . Louis
Minneapolis
Kansas C ity
D allas
San F ra n c is c o
Total
( i n thousands)
4
2 5 ,6 4 4
1 2 8 ,6 7 6
3 4 ,4 8 3
3 4 ,5 3 0
1 6 ,1 2 4
1 3 ,6 7 3
4 7 ,9 8 9
1 1 ,8 6 7
9 ,6 7 7
1 1 ,3 4 0
1 1 ,5 0 6
2 7 ,6 9 3
373,202
Per Cent of
T otal Net
Worth
6 .8 7 1 3
3 4 .4 7 8 9
9 .2 3 9 8
9 .2 5 2 4 '
4 .3 2 0 4
3 .6 6 3 7
1 2 .8 5 8 7
3 .1 7 9 8
2 .5 9 3 0
3 .0 3 8 6
3 .0 8 3 0
7 .4 2 0 4
Share o f
Trading
P ro fit
Share of
Net
Income
i
.
7 2 9 ,9 5 0 .2 2
3 ,6 6 2 ,7 5 3 .8 9
9 8 1 ,5 6 0 .1 2
9 8 2 ,8 9 8 .6 4
4 5 8 ,9 6 3 .6 5
3 8 9 ,2 0 1 .2 6
1 ,3 6 6 ,0 0 2 .2 0
3 3 7 ,7 9 5 .7 2
2 7 5 ,4 5 3 .9 3
3 2 2 ,7 9 5 .8 0
3 2 7 ,5 1 2 .4 9
7 8 8 ,2 8 2 .0 8
10,623,175.00
£
9 5 ,8 9 2 .6 1
4 8 1 ,1 7 1 .2 1
1 2 8 ,9 4 6 .2 8
1 2 9 ,1 2 2 .1 2
6 0 ,2 9 3 .4 6
5 1 ,1 2 8 . 8 6
179,44 9 .9 3
4 4 ,3 7 5 .7 8
3 6 ,1 8 6 .6 8
4 2 ,4 0 5 .2 6
4 3 ,0 2 4 .8 9
1 0 3 ,5 5 5 .5 9
1,395,552.67
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Table 2 . D i s t r i b u t i o n o f th e Income and Trading P r o f i t
R ealized from th e System Open Market Account on th e
B a s is o f Average Net Yforth o f the- Individual Banks
by Q uarters from January 1 , 1 9 4 1 , t o June 3 0 , 1944
F i r s t Quarter o f 1943
Ave. Net "forth
in Preceding
Quarter
( i n thousands)
Boston
Hew York
.Philadelphia
Cleveland
Richmond
A tlanta
Chicago
- t . Louis
1 inneapolis
Kansas C ity
Dallas
San F r a n c is c o
Total
2 6 ,1 7 4
1 3 2 ,5 3 9
3 5 ,0 0 3
3 5 ,4 0 6
1 6 ,6 1 1
1 4 ,2 0 6
4 9 ,5 5 7
1 2 ,2 4 9
3 ,0 3 0
1 1 ,7 2 0
1 1 ,3 1 1
2:?, 3116
3 8 3 ,6 1 2
-•
c* 8230
3 4 .5 5 0 3
9 .1 2 4 6
9 .2 2 9 6
4 .3 3 0 1
3 .7 0 3 2
1 2 .9 2 1 1
' 3 .1 9 3 1
2 .5 8 8 6
3 .0 5 5 2
3 .0 7 8 9
7 .4 0 2 3
Share of
Trading
P rofit
Share o f
Net
Income
Per Cent o f
Total Net
Worth
X
£
X
1 ,2 0 1 ,2 1 8 .4 1
6 ,0 8 2 ,7 2 8 .4 9
1 ,6 0 6 ,4 2 4 .9 6
1 ,6 2 4 ,9 1 0 .6 7
‘ 7 6 2 ,3 3 2 .6 8
6 5 1 ,9 6 4 .2 4
2 ,2 7 4 ,8 1 5 .0 7
5 6 2 ,1 5 3 .9 5
4 5 5 ,7 3 4 .1 3
5 3 7 ,8 8 1 .0 6
5 4 2 ,0 5 3 .5 5
1 ,3 0 3 ,2 0 6 .6 6
▼
1 ,6 7 2 ,0 2 5 .9 7
3 ,4 6 6 ,8 0 3 .3 1
2 ,2 3 6 ,0 4 9 .3 6
2 ,2 6 1 ,7 8 0 .8 8
1 ,0 6 1 ,1 2 2 .6 3
9 0 7 ,4 9 6 .2 0
3 ,1 6 6 ,4 0 9 .9 1
7 8 2 ,4 9 2 .4 7
6 3 4 ,3 5 5 .3 3
7 4 8 ,6 9 9 .0 7
7 5 4 ,5 0 6 .9 3
1 ,8 1 3 ,9 8 7 .6 7
1 7 ,6 0 5 , 4 2 8 . 3 7
2 4 ,5 0 5 ,7 3 0 .2 3
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Table 2* D i s t r i b u t i o n o f the Income and Trading P r o f i t
Realized from th e System Open LJarket Account on th e
B asis o f Average Net Worth o f the Individual Banks
by Q uarters from January 1 , 1 9 4 1 , to June 3 0 , 1944
F i r s t Quarter of 1944
Ave. Net Worth
in Preceding
Quarter
Boston
New York
P h ilad elp h ia
Cleveland
Richmond
A tla n ta
Chicago
St* Louis
Minneapolis
Kansas C ity
D allas
San F r a n c is c o
Total
( in thousands)
*
2 9 ,5 6 9
1 4 7 ,1 1 3
3 8 ,4 7 0
4 0 ,0 9 4
1 9 ,0 4 8
1 5 ,9 0 0
5 4 ,9 9 5
1 4 ,1 0 9
1 1 ,2 2 8
1 3,7 5 8
1 3 ,4 3 4
3 2 ,2 3 5
4 2 9 ,9 5 3
Per Cent of
T o tal Net
Worth
6 .8 7 7 3
3 4 .2 1 6 1
8 .9 4 7 5
9.3252
4 .4 3 0 3
3 .6 9 8 1
1 2 .7 9 0 9
3 .2 8 1 5
2 .6 1 1 4
3 .1 9 9 9
3 .1 2 4 5
7 .4973
Share of
Net
Income
Share of
Trading
P rofit
*1 ,2 6 2 ,2 1 6 .2 0
* 4 9 ,8 3 4 .5 1
6 ,2 7 9 ,8 0 6 .8 8
1 ,6 4 2 ,1 6 7 .6 4
1 ,7 1 1 ,4 8 8 .3 1
8 1 3 ,1 0 9 .2 8
6 7 8 ,7 2 5 .9 2
2 ,3 4 7 ,5 6 1 .0 0
6 0 2 ,2 6 5 .7 8
4 7 9 ,2 7 9 .8 6
5 8 7 ,2 8 9 .4 3
5 7 3 ,4 5 1 .0 0
1 ,3 7 6 ,0 0 7 .0 9
2 4 8 ,1 8 6 .5 4
6 4 ,9 0 0 .7 0
6 7 ,34.0.35
3 2 ,1 3 5 .1 9
2 6 ,3 2 4 .1 7
9 2 ,7 7 8 .8 1
2 3 ,3 0 2 .3 7
1 8 ,9 4 1 .7 9
2 3 ,2 1 0 .4 8
2 2 ,6 6 3 . 5 7
5 4 ,3 8 1 .6 8
1 8 ,3 5 3 ,3 6 8 .3 9
7 2 5 ,3 5 0 .1 6
T
--------Reproduced from the Unclassified / Declassified Holdings of the National Archives
Table 2 . D is t r i b u t i o n o f th e Income and Trading P r o f i t
Realized from th e System Open Market Account on th e
B asis o f Average Net ’"forth o f t h e Individual 3anks
by Quarters from January 1 , 1 941, t o June 3 0 , 1944
Second Quarter of 1944
Ave. Net Worth
in Preceding
Quarter
Per Cent o f
T otal Net
Y/orth
Share o f
Trading
P ro fit
Share of
Net
Income
( i n thousands)
4
Boston
New York
P h ilad elp h ia
Cleveland
Richmond
A tla n ta
Chicago
S t . Louis
T’inn eap olis
Kansas C ity
D allas
San F ra n c isc o
Total
2 9 ,2 1 0
1 4 9 ,0 1 4
3 3 ,0 8 0
4 0 ,9 3 5
1 9 ,5 4 1
1*3,223
5 6 ,3 5 7
1 4 ,4 0 9
1 1 ,3 7 3
1 4 ,1 1 1
1 3 ,7 9 8
3 2 ,7 4 8
4 3 6 ,0 9 9
6 .6 9 8 0
3 4 .1 6 9 7
8 .7 3 2 0
9 .3 8 6 6
4 .4 8 0 9
3 * 7200
1 2 .9 2 3 0
3 .3 0 4 1
2 .6 7 6 7
3 .2 3 5 7
3 .1 6 4 0
7 .5 0 9 3
1 ,4 2 3 ,8 4 7 .3 4
7 ,2 6 3 ,7 2 5 .9 8
1 ,8 5 6 ,2 3 0 .9 7
1 ,9 9 5 ,3 8 4 .5 2
9 5 2 ,5 4 0 .6 9
7 9 0 ,7 9 0 .1 1
2 ,7 4 7 ,1 4 5 .3 0
7 0 2 ,3 7 8 .9 2
5 6 9 ,0 0 7 .4 9
6 8 7 ,8 3 8 .5 9
6 7 2 ,5 9 6 .7 5
1 ,5 9 6 ,3 1 1 .8 6
2 1 ,2 5 7 ,7 9 8 .5 2
4
1 1 ,8 3 8 .5 2
6 0 ,3 9 3 .9 8
1 5 ,4 3 3 .5 6
1 6 ,5 9 0 . 5 5
7 ,9 1 9 .8 6
6 ,5 7 4 .9 9
2 2 ,8 4 1 .0 4
5 ,8 3 9 - 9 0
4 ,7 3 0 .9 9
5 ,7 1 9 .0 1
5 , 5 9 2 .2 8
1 3 ,2 7 2 .4 8
1 7 6 ,7 4 7 .1 6
Reproduced from the Unclassified I Declassified Holdings of the National Archives
April 16, 1945*
C h a lr a a n E c c le s
Mr* Carpenter.
The zalnutes of the last Presidents1 Conference* held on
'February 26 and 27* 1945# were received a day or two ago and a copy
was sent to you* However* it is thought that you might like to have
your partlcul^^ attention called to tht action which has been taken
by the Conference with reference to the appointment of a special
committee on Allocation of Securities in the System open market
account*
At the meeting of the Presidents in December* 1944* Hr*
Koppang raised the question as to what steps* if any* should be taken
to devise a more scientific and equitable fomala for allocation of
securities in the opm market account* pointing out that the present
formula* based on expenses and requirements for dividends* is inad~
equate and in some ways inequitable because the offset is to put a
penalty on efficiency.
After discussion It was agreed that a special eor«»*ittee
should be splinted to study the whole question of allocation and
that the committee should consult with Messrs* Smead, Bouse and
other operating men* -istth a view to recommending a netv formula* if
one could be found that would be more suitable than the present one*
At the Conference of Presidents on February 26 and 27* 1945#
it was decided that that committee should consist of representatives
of the Federal Reserve Banks of Kansas City*
Xork* Philadelphia*
Atlanta and Dallas* with Mr* Leedy as Ch&lnaan*
cct Mr* Goldemvelser*
Mr. Vest.'
Reproduced from the Unclassified I Declassified Holdings of the National Archives
L
Fed e r a l Re s e r v e Ba n k
of
ittC’D M RECORDS SECTION
APR 2 4 J968
Ne w Yo r k
A p r il 3, 1945.
3 3 3
,
Dear Mr
We r e c e i v e d your l e t t e r o f A p ril 2 , 1 9 4 $ ,/ a n d have tod ay s e n t to the
Reserve Banks a copy of the computation“shmfing’’IHe adjustments made on April 2,
1945, as of April 1, 1945, in participations in the System Open Market Account,
pursuant to the plan adopted at the meeting of the Federal Open Market Committee
on September 21, 1944* as amended ^arch 7, 1945*
Enclosed herewith is a copy of the letter of' transmittal together
with three copies of the computation, also copy of the telegram which was sent
to each of the Federal Reserve Banks on April 2, 1945•
lours faithfully,
Robert G. Rouse, Manager,
System Open Market A ccount.
Mr. E . L . Smead, D i r e c t o r ,
D ivisio n o f Bank O p eratio n s,
Board o f Governors o f the
F e d e r a l Reserve System,
KHX^ashington 2 5 , D. C.
STATES
WAR
'BONDS
AND
Enclosures (4)
°k
r
Reproduced from the Unclassified I Declassified Holdings of the National Archives
mv mRECORDS SECnONt
M IS C . 1 4 0 A - 1 0 0 M - 6 - 4 4
FEDERAL RESERVE BANK OF N EW YORK
APR 241968
April 3f
Dear Mr. Wiiliaaat
In accordance with my telegram of April 2 , 1945 > X enclose herewith
computation of the
oade o» April 2, 1945, a« of April 1, 1945#
in the participations of the ftderal Reaerre Banks in the B ystm Open Market
portfolio*
lour® faithfully,
icrne®, Manager,
n Market Account*
Mr. Alfred H. Mlllame, Fr
federal Reserve Bank of Ph
Philadelphia, Pennsylvania
Stool*
r~'- 1
■
—
Reproduced from the Unclassified / Declassified Holdings of the National Archives
M I S C . 140-ES-24M-1 1 - 4 4
SEC. DEPT.
BHBsss
APR 241968 >
PLEASE SEND THE FOLLOWING TELEGRAM TO EACH FEDERAL RESERVE BANK AS itBDCATED WWKt *
As advised in my wire March 29, 1945# readjustment of participations In
Government securities held in System Account is being made today as of April 1 under the
plan for reallocation of Government securities adopted by the Federal Open Market Committee
September 21, 1944, as amended March 7, 1945*
The computations showing adjustments made in
participations of the several Reserve Banks will be mailed to all Reserve Banks on April 3#
INCREASE
these computations Indicate sit DECREASE of |
in your participation in interests
bearing obligations, sn
of $
. INCREASE . *
making a net ugcREASE of *
in your participation in Treasury bills,
in your total participation in the System Account*
Tour bank will receive this afternoon the usual coded wire showing the detailed entries to
1
be made today as of April 1*
INmEST^IARlirek.. 1
.. m m i i m .X. ‘ ,
FLANDERS
BOSTON
WILLIAMS
PHILADELPHIA
GIDNH
CLEVELAND
LEACH
RICHMOND
McLARIN
RTT.T^
TOTAL
1,294,000
-
7,899,000
-
9,193,000
/
♦ 12,416,000
-
8,450,000
+
3,966,000
\
♦
5,289,000
-
2,938,000
+
2,351,000
♦
535,000
+ 6a,794,000
+ 62,329,000
ATLANTA
♦ 10,093,000
♦ 25,103,000
+ 35,196,000
YOUNG
CHICAGO
-
46,567,000
+286,335,000
+239,768,000
DAVIS
ST* LOUIS
+ 17,714,000
- 32,226,000
- u , 512,000
PEYTON
MINNEAPOLIS
-
1,433,000
LEEDY
KANSAS CITX
-
2,016,000
GILBERT
DALLAS
DAY
SAN FRANCISCO
-
TREASURY
\
6X9,000
-
2,052,000
5,699,000
-
7,695,000
♦ 13,693,000
- 16,787,000
-
3,094,000
-
- 17,565,000
- 20,622,000
-
3,057,000
ROUSE
m iA o cm o v or o o m a a m t a o m t m x» iT snu o m mukkt aooonr, avkxl i , i9*e
i&NFIDBNTIJ L
Cd
o
o
oo
Systesi
Boston
Um
Ibrk
id ourrent expenses,
1$U5
TT. Eslimat >d dividends, 19U5
p
E s t i m a t »d e x p e n s e s a n d
dividends
>• C u r r e n t e a r n i n g s
1 . E s tim a te d e a r n in g s , 19U 5.
e x c l u s i v e o f e a r n i n g s on
G o v e rn m e n t s e o u r i t i e s
2 . On i n t e r e s t - b e a r i n g . s e c u r i t i e s
i n S y s te m A o o o u n t t o M arch 3 1
3« T o t a l
E» E x c e s s o f " C n e v e r "D 3 *
F . A l lo o a t i o n r e q u ir e d (o n b a s i s o f
1 . 075868’£ e a r n i n g s r a t e ) t o
p ro d u o e e a r n in g s A p r il-S e o e m b e r
e q u a l t o WE "
G* A v e r a g e d a i l y p a r t i c i p a t i o n s ,
p er c e n t , in in t e r e s t - b e a r in g
s e c u r i t i e s i n S y s te m A c o o u n t
s i n c e M aroh 3 1 , 1 9 ^ 0
St. | UlnaeXlofc- I Atlanta
flUnChlM(«
wad
bail 1 W o U *
land
Allooation of Intorest-Boariac 8eeuritiee
11,272
3.607
U.273
3.250
2.557
6.113
2.585
1,267
2,621*
2,113
10,010
610
3 .5 8 8
756
1.003
I4O3
363
1,190
322
219
321
335
4 .8 2 9
900
3 .7 7 0
1 1 4 ,8 6 0
U.363
5,276
3.653
2.920
7,303
2.907
1,1*86
2,91®
2.1*1*8
5 .7 2 9
1,906
58
878
83
115
35
30
222
11(0
la
211
37
56
20,3145
22,251
1 .3 9 9
1 .U 5 7
5.061
1,933
81*7
1.096
550
991
1,000
1,058
2.665
2,887
956
2,0lt8
1.30U
1.339
1,028
5 .9 3 9
1,51(0
1.623
1,211
881*
2,062
2,118
35
2 .3 1 3
8 ,9 2 1
2,714D
3.228
2.311*.
1,862
U.U16
1,811
895
1.73U
1.561*
3.611
2 8 5 ,3 5 1
1 .1 0 0 ,5 7 0
338.030
398,233
k, 3 6 8 , 3 5 3
5U4.795 223 .1*20 110.1*15 213.921
192 ,91*8 1*1*5,1*83
12.5153
I4.685 I*
2.8962
1*.871*1
l*.2 l*20
327.89U
2 0 1,52 1 i61*,o6o
1*03.200
150.9U8
93.306
157.027
136,663
320 ,710
587.003
726.127
i486,996 393.772
91*7.995
37l*.368
203,721
370,9l*a
3 2 9 .6 11
76 6 ,19 3
521,736 1 , 688,210 57U.587
720,838
1(86,1*61 383.679
99 U .562
356,651* 205,151*
372 .96 I* 3 15 ,9 18
769.250
+1 2 ,1*16
+5,289
+535 +10.093
-146.567
+17.711*
10.1778
H« A llo c a tio n o f remainder o f
in te re st-b e a rin g s e c u ritie s
( 17 , 590, 013,000 l e s s
t U , 3 6 8 , 3 5 3 , 0 0 0 ) on b a s is o f " G n
3 , 221,660
2 3 5 ,0 9 1
7 8 2 ,2 6 7
21*8,973
!•
7 ,5 9 0 ,0 1 3
5 2 0 ,l4 i4 2 1 , 8 8 2 , 8 3 7
7 ,5 9 0 ,0 1 3
—
285.1*75 229.712
5 .092 !*
7-7281
San
Francisco
57,660
2i *.2815
v. • Change in a l l o c a t i o n s
Dallas
3.160
7.2972
J . ^resent a l l o c a t i o n s
Kansas
City
U7.650
100.0
Total a l l o c a t i o n s
Pag# 1
I i of dollars)
Phi la*
delphia
I*
^
e\>
w h m
- 1 ,2 9 U
- 5 ,3 7 3
6.2552
-1.1*33
-2,0 16
9 . 95U8
+13.693 , - 3 , 0 5 7
_ .v
'^A'DECLASSIFIED
Authority
Q . 10 5 0 1
Reproduced from the Unclassified / Declassified Holdings of the National Archives
;oo
(Is H
New
Y o rk
B o s to n
S>s t e a
!!•
L« D i s t r i b u t i o n o f e s t i m a t e d e a r n i n g s
on - b i l l s f o r y e a r on b a s i s o f "G *
M. E a r n i n g s t o M ^ rch 3 1
S y ste m A o o o u n t
°n b ills
3.311
1*5.373
in
11.017
A llo o a tio n
3.506
C le v e
la n d
R ic h
mond
A tla n ta
C h io a g o
S t.
. .l £ & £
M in n e
. a p o lis
.
K an sas
C ity
Dullu
1*,618
2.838
2,311
5.679
2,126
1 ,311*
2 ,2 1 1
1,9 2 5
(*,517
1*52
857
573
502
827
305
168
362
308
969
3.739
9W*
3U5
191*
127
521*
1 8 ,651*
369
9.900
878
372
17U
133
20,288
2.1*18
533
2 .1 7 6
3.389
2,0 9 1
1.6 7 6
1 ,1 1 3
877
801
1.655
1.1*90
P * A l l o o a t i o n o f S y s te m A o c o u n t
b i l l s in p r o p o r tio n t o " 0 "
7.082.325
8l*l*,098
186,065 75 9 ,6 13 1 ,183 ,061* 729 .91*6 585.071*
388,536
306,151
279.621
577.71*3
520.11*3
Q. P o r t io n
due t o
1.270.51*5
223.1*28
159,11*1
10l*,181
11*6.51*3
192.785
• P r o r a t a s h a r o o f e a r n i n g s fr o m
b i l l s i n S y s te m A ooou n t A p r i l D ao e m b er ( " L * m in u s WMW a n d nN *)
t h a t Banks oan n o t ta k e
lo w r e s e r v e r a t i o *
R * D i s t r i b u t i o n o f "Q " t o B a n k s
w it h h i g h e s t r e s e r v e r a t i o s
1,270,51*5
S . F in a l a llo o a tio n o f T reasu ry
b i l l s in S y s te m A ooou n t
( * P tt m in u s "Q w p l u s " R " )
7.082.325
T« P r e s e n t a l l o o a t i o n s
» C hange i n a l l o o a t i o n s
21*3.651*
W. C h an g e i n
355.681
515.961*
Total Allooation of Sy»t—
Aooount 8«ourltl»«
S y s te m A ooou n t
ll*.672,338
1 ,11*1,112 2 ,230 .561* 1 ,102,967 1 ,71*9 .1 3 2 1 .176.188 97831*6 2 ,089.733
p a r tic ip a tio n
* B a s e d o n n o t e an d d e p o s i t l i a b i l i t y a n d r e s e r v e
a s o f c l o s e o f b u s i n e s s M aroh 5 1 , I 9U5 .
753.202
1 ,023,005 689,192 585.071* 1 .11*1,7 3 8 li*7.010 175.1*1*0 1*31.20 0 327.358
7.082.325 628.569
628.796 52l*.l*ll* 1.025,91*3 627.398 559,971
855 ,1*03 179.236 176,059 1*36.879 3W*.ll*5
-7,899 -281,069
-S.lgo
-2,938 +61,791* +2 5 ,10 3 +286,335 -32,226
-619
-5.679 -16.787
31*7.727
111.
V* P a r t i c i p a t i o n in
( " I " p lu s " S " )
160,059 Jj0.75l*
161.662
620.670
San
F rs n c is c
o f T reasu ry B i l l s
6.1*31
N* E a r n i n g s t o D aoem ber 3 1 on b i l l s
in o p tio n a c c o u n ts ( e s t . )
581*
P h ila
d e lp h ia
Page 2
Reproduced from the Unclassified I Declassified Holdings of the National Archives
REALLOCATION OF GOVERNMENT SECURITIES IN SYSTEM OPEN MARKET ACCOUNT, APRIL 1 , 19U5
( I n thousands o f d o lla r s )
CONFIDENTIAL
-9.193
-286 ,W |2
+3.966
+2.351 +62,329 +3 5 ,19 6
+239,768
521.378
379,161
802,1148
656,969
-1U.512
-2,052
-7.695
-3.091*
fig u r e s
DECLASSIFIED
Authority
1. . o'. 1DSC?/
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEGRAM
BOARD OF GOVERNORS
OF TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V I C E
WASHINGTON
April 2,
I9k5
Rous# - lew Tork
This will confirm understanding in telephone oonirersatlon that
adjustments of participations in System Aooount will be as follows,
in thousands of dollars*
Interest-bearing
securities
Total
-9.193
Boston
*5?
*
r-l
1
Treasury
bills
-7,899
Hew York
-5*373
-351,069
-286,Uj2
♦12, 1*16
- 0, 1*50
+3,966
♦5*289
-2,938
♦2 ,5 5 1
♦535
♦61,79k
♦68,529
Atlanta
♦10,093
♦2 5 ,10 3
♦35.196
Chicago
•^6 ,5 6 7
♦286,3^5
♦239»?68
St. Louis
♦17,7&
-32.226
-111,512
Minneapolis
-1,1+35
-619
-3,052
Kansas City
-2 ,0 16
-5.679
-7.695
♦13*693
-16.787
-3,091+
-3.057
-17 .5 6 5
-20,622
Philadelphia
Cleveland
Rioh*ond
Pallas
San Francisoo
Smead
Reproduced from the Unclassified I Declassified Holdings of the National Archives
i
f w/
' ?..
April 8. 19l*5
Mr# Robert 0. lout#, Tice Prasident,
Fadaral laser** Bank of low York,
flow York 7, Mew York*
D»ar Mr. Rouse*
there ie eneloaed a etatement thowing the
changes la participations of Government saouritiea
in the System Open larttet Aooount on April 1, 19^5,
prepared in accordance with tha f o r m la adopted by
the System Open Market Coaaaittaa on September 21,
19M**
Very truly yours.
S* I* Smead, Dirootor,
DiTilion of Bank Operations.
Snoloeure
EE
O
F
T
j
..x j i
j
System
Boston
Sew
York
TH STSTlIf OP'&N >KET ACCOUNT, APFIL 1,
(In thousands of dollars)
Page 1
1
«t
owe n
Cleve
iichAtlanta Chi cago I
land j mo nd I
I Louis
Allooation of Interost-Bearing Securities
I*
Kansas
Oitj
2,535
1,267
2 .62U
2 .1 1 3
U .829
335
900
Dallas
A- Estimated ourrent expenses, 19^5
1*7 .6 5 0
3.160
1 1 ,2 7 2
3 ,6 0 7
4,273
3 ,2 5 0
2,557
B. Estimated dividends, V)h5
10 .0 1 0
6 10
3,538
75 6
1.0 0 3
.1)03
363
1,190
322
219
321
c. Estimated expenses and dividends
57.660
3.770
1!
4,860
U.3C3
5.276
3 .6 5 3
2 ,9 2 0
7.303
2 ,9 0 7
1,1486
2 ,9 4 5
2 .1)1*3
5 .7 2 9
1 .9 0 6
58
878
83
115
35
30
222
140
4i
211
37
56
20,3^5
1.399
1.1*57
5 ,0 6 1
5.939
1.5U0
1.623
1.933
2 ,01*8
1.301+
1.339
1,028
1.058
2,665
2,887
956
2 2 ,2 5 1
1 .0 9 6
550
591
1,000
1,211
81+7
88U
2,062
2,118
35,1409
2.313
3,921
2 ,7)40
3.228
2 .31U
1,362
U #Ul6
1,311
395-
1.73U
1.561*
3 .6 1 1
£85.351 1,100.570
33S .030
393,233
285.i;75 2 2 9 ,7 1 2
544,795
223,420
1 1 0,145
213.921
1 9 2 .3US
1^ 5.483
5 .0921+
12-5153
4*6854
*£$62
1+.87U1
k.2it20
9 .951+8
Current earnings
1. Estimated e«raings, 19^5 .
exclusive of wrnings on
Government securities
2. On interest-bearing securities
in System Account to March 31
3. Total
E. Excess of "Cw over vD 3n
6 ,1 1 3
San
Frtncisoo
Minne
apolis
j Phi iaj delphia
F. Allooation required (on basis of
1#375863$ earnings rate) to
produce earnings April-December
equal to !!Bn
G * Average daily participations,
per cent, in interest-bearing
securities in System Account
since Mar oh 31. 19^4$
U, 368 .353
10 0 .0
7 .2 9 7 2
2it.£ 8 15
7-7281
10.1778
3 ,2 2 1,6 6 0
-3 5 .0 9 1
7 3 2 ,2 6 7
2US.973
327.894
2 0 1 .5 2 1 l6ii.o6o
1403,200
150,948
93.306
157.027
136.665
320.710
I* Total allooations
7 ,590,013
520.W4E 1.362,837
587.003
726,127
!i36 ,996 333.772
947.995
374.368
203,721
370.91*2
3 2 9 .6 1 1
766,193
J . P re s e n t allocations
7 .590,013
521,736 1,386,210
57U.5S7
720.£38
U86.ii6 l 3 3 3 ,6 7 9
994,562
3 5 6 .651+ 2 0 5 ,151.5
372,96U
3 1 5 .9 1 0
'(■69,250
-5 .3 7 3
+1 2 .U16
+5 , 209
- 146,567
+17,711}.
- 2,016
+13.693
-3.057
6 .2 5 5 2
H. Allocation of remainder of
interest-bearing securities
(17#590,013,000 less
$14,368,353,000) on basis of "G*
'%
■• Change in allooations
—
-1.29U
*535
* 1 0 .0 9 3
DECLASSIFIED
Authority j __ Q , |fj
50I
-1 .4 3 3
T Jm
/I C
FORftLES
M. B. "Daniels
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DEALLOCATION OF GOV#iNCKT S
C 0s'Fli.ihTIAi-
om w iw m w *
if# rata sharo of earnings f i e i
M ils la Syste* Aooount April**
Dseeaber (*L* aim s *M* and *f*)
P. Allooation o f Sy*tea Account
b ills In proportion to *0*
Q. Portion that Banks oaa not take
due to low re*or*e ratio*
1* Distribution of *Q* to Banks
iriLth highest reserve ratio*
8. Final allooation of Treasury
b ills in iyotea Aooount
(*P* minus *Q* plus *1")
T. Present allooations
Ji.
* in allocations
•W
PW
Phila 01*T»— Biok- Atlanta
land
-...Tork... delphia
XI* Allooation o f treasury B ills
Bjetssi
Boston
1*5.375 7
3.311
li.o i t
3.506
l},6l8
2.838
6,1*31 ^
521*
58k
1*52
857
573
502
369
9,900
878
372
171*
133
M* Bamings to Maroh 31 on M ilo in
Bystaa Aooount
I* Sarnings to Deeeaher 31 on b ills
in option account* (o st.)
ststkm o m masks? a c c o d i t , a f b x l 1 , 19U5
(In thousand* of fellar*)
or m v m v m t securities nr
18,651*
20,288 ^ 2,1*18 7
533 / 2,176 /
81*1*.098
7,088,325
/
1,270,51*5 223,1*28
21*3.65!*
/
7,092,385 620.670
7.082,325 628,569
«»«•
/ -7.899
V* Change la participation
5,679
8,186
1.3H*
2,811
1.925
U.517
—
/
-9.193
figures
.... city .....
D tllu
827
3
3.739
305
168
368
308
969
9W*
3^5
191*
187
14*79
1,113x
877/
801 ^ 1 , 6 5 5 I 4i 90y
2,069 /
388,536 306,151 279.621 577.71*3 520,11(3 722,266
160,059 l»0,75i*
i5 9 .iia
10U.181
11*6,51*3 192,785
753.208
355.681
175.1*1*0 1*31.200 3Z7.358 1.07751*7
176.059 1*36,879 3W*,H*5 1.095.512
•619 -5.679 -16,787 -17.565
fe ta l Allooation of 8ystea Aooount Securities
3i*.67e,J3e 1. 11*1,112 2.230,561* 1. 102,967 1, 710,138 1,176,186 97SjSl«6 2.089.733
• Based on note and dtopoeit liabi 11 ty and m t m
aa of «1m « of tasines* Maroh )1 , 19U5*
Mlnnatw lll
31*7.727 515.961* 1,023.005 689,198 585.07U 1.11*1,738 li»7 .oio
626,796 52l*,l*H* 1,025,91*3 627,398 559.971 855 .IW3 179.236
-281,069 - 8,1*50
-2.938 *6l,79U *25.103 *286,335 - 32,226
III.
?• Participation in Bysten Aooount
(«I* plus * i* )
It.
3.389 X 8,091/ M 7 6 ^
161,662
1.270,51*5 /
Sun
rr»9l»oo
Chicago
* #JU
186,065 759,618 1.183,061* 729.9W 585.071*
fngo 2
-286.1*1*2
*3,966
*2,351 -*62.389 *35.196
5*1.378
*239,768 -14.512
379.161 802,1140 656,969 l,8t*l*,li*0
- 8,052
-7.695
-3,09U -20,622
// -f’v• ’
DECLASSIFIED
Authority lT 0 . I D 5 0 /
Reproduced from the Unclassified / Declassified Holdings of the National Archives
L* Distribution of estimated earnings
oa M il* fer year on basis of •#*
haujdoatioi
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELKOEAM
B o a rd of G o v ern o rs
.[ r j. /- •
■ "
'*■$ i
■i
.
o ftlie
f e d e r a l R e s e r v e S y s te m
Leased W ire Service
£teoei?ed at Washington, D.O,
WA45GC41WASH |17 MPLS 31-1044
VANFOSSEN
ESTIMATED EARNINGS FOR 194.5 TO MARCH 31 ON TREASURY BlllbS
y m OUTSIDE SYSTEM ACCOUNT $71,£88,
BAKER.
%
pOR FILES
M. B. Daniel*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T E I/fc ^ tiA M
B o a rd os governor**.
OX OAfc
iQi(,£■)
F e d e ra l R e s e r v e S y ste m
Leased W ire Service
Received at Washington} DiQ*
WA32GC28WASH GX62 CGO 31-1007
VAN FOSSEN - 3D
REURTEj/ESTIMATED EARNINGS FOR 1945 TO MARCH 31, INCLUSIVE ON
TREASURY BILLS HELD BY OUR BANK OUTSIDE SYSTEM ACCOUNT ARE
$1,102,841.00
BLACK.
FOa FILES
M, B. Daniels
I
Reproduced from the Unclassified I Declassified Holdings of the National Archives
j
T E £ , J ! ; g R A Ifi
Board of Qoyernorsorute
WA36WASH B93
VANFOSSEN
NY 31-1129
BOARD
ESTIMATED EARNINGS FOR 1945 TO MARCH 31 ON TREASURY BILLS
HELD BY FEDERAL RESERVE BANK OF NEWYORK OUTSIDE SYSTEM
ACCOUNT $2,226,235
ROUSE
FOB FILES
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
BEC'D IH FILES 989§£9S
"3UL 2 61945
of
March 30, Y)\\5
To:
Mr. Smead
From:
Mr . Daniels’
memorandum, ’’Proposed accounting
procedure for handling transactions in System
Open Market Account beginning jlnuary 1, 19?8M
provided for making quarterly reallocations as
of January 1, April 1, July 1, and October 1.
It also provided for accruals of earnings on
holdings in the System Open Market Account each
day, and stated win order to facilitate handling
the System Account, this information will be
furnished ^/by New Yor1Z/ one day late, except
on the last day of the month when two days’
earnings will be accrued.” It appears that the
January 1 reallocation has always been made as
of January 1, although the transfers of funds
involved have been included in the clearings of
the first business day following. Thus, the
telegram sent out by New York on December 31
19h3» stated ”We shall wire you on January 3»
the detailed entries to be made on that
date as of January 1.” A telegram dated Decem
ber 26,
stated *The usual reallocation of!/
participations in System Account will be made at
the start of the new year and we will advise you
late in the afternoon of January 2, 19b5* of the
entries to be made. Although
^o be made on the records as of Js|iuarwy.,J.
transfer of funds will be handled $Ln tn§w dlearings
of January 2.w
'f %
Reproduced from the Unclassified I Declassified Holdings of the National Archives
1 JS jjXi U - f t A ^
Board of 0-OTerxiors
oi uo*
WB15WASH §193 BOS 30-313P
SMEAD
BOARD
RETEL MARCH 30.1945 ESTIMATED 1943 EARNIN&S THROUGH MARCH 3T ON
y S TREASURY BILLS HELD BY THIS BANK UNDER REPURCHASE OPTION
$93,197.92
PITMAN
FOB
PILES
4
>
M. B. Darnels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
1
^LEGRA-M.
Board ot Governors
o f tue
^
federal B e s e r v e System
*
Leased W ire Service
Eeoeived at Waahington, D.O.
m
2
WA77WASH C7
34
PH(LA 30-228P
VAN FOSSEN
REURTEL MARCH 30.
ESTIMATED EARNINGS YEAR TO MARCH 31
ON
TREASURY BILLS HELD OUTSIDE SYSTEM ACCOUNT ARE $190,389.40
DAVIS.
FOS FILES
M. B. DouUels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T JE 2Li jBj U J t i A jyi
. ja r d of G o v ern o rs
r-pp.- 9 -io^. fa
V oi tJae
F e d e ra l R e s e r v e S y ste m
D
<5 KS
Leased W ire Service
Received at Washington, D.G.
M 3
l)/:
WA83G42WASH B &3 CLEV 30-153
♦
VANfOSSEN
REPLY WIRE I.. ESTIMATED EARNINGS FOR 1945 TO MARCH 31
ON TREASURY BILLS HELD BY OUR BANK OUTSIDE SUSTEM IS
http://fraser.stlouisfed.org/
IFederal Reserve Bank of St. Louis
$
80,800
SMITH
FOi? files
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
t aid of Governor,
^
ol t h e
in .
■
Federal Reserve Systeiu
F e Leased W ire Service
jr :
i^r
/
. *r,
Va*^
J
Eeoeived at W a s t a g e D *
WA69WASH RH 47
RICH >0-145
fit
845 MAR 30' PM
VAN FOSSEN
/
.
RETEt/ ESTIMATED EARNINGS FOR 1945 TO MARCH >1 ON TREASURY
BILLS HELD BY THIS BANK OUTSIDE SYSTEM ACCOUNT $44,548
;'
GUTHRIE.
50
P------------------------------------------------------------- ----------Reproduced from the Unclassified / Declassified Holdings of the National Archives
T B L E G K a k
Board of QoTemoj r
dim e
F e d e ra l B © serve S y stem
L e a s e d W ir e S e r v ic e
9
V'» «*>.«j5;
nt
,'3 A
■.
Keceived at Washington, B.O,
1945
2 33
r 30
WA76WASH F27 ATLA 30-127
VANFOSSEN
REURTEU ESTIMATED EARNINGS FOR 1945 TO MARCH 31 ON TREASURY BILLS HELD
BY THIS BANK OUTSIDE SYSTEM ACCOUNT, INCLUDING OUR NEWORLEANS BRANCH
$21,010.00.
MCL'ARIN.
7
Reproduced from the Unclassified I Declassified Holdings of the National Archives
SJLJt; u j*
A&
Board, of Governors
F6dS
l ? ^ e r v e S y ste m
leased WireServlge
»A5 MW
*
4
•Beeeived at Washington, D.O.
2
m
■? • <■■ ■ ■
WASH H80
STL 3G.-545-
VANFOSSEN
'J/Vf c'/*•>
.L "
RETE1/ ESTIMATED EARNINGS FOR44#* YEAR 194^ TO MARCH 31 ON
TREASURY BILLS HELD BY US OUTSIDE SYSTEM ACCOUNT APPROXIMATELY
$121,000.
ATTEBERY.
http://fraser.stlouisfed.org/
IFederal Reserve Bank of St. Louis
for fuss
M. B. Daaiala
Reproduced from the Unclassified / Declassified Holdings of the National Archives
B oard ot Q o v e r u o i ^
01 out
i'e d e ra i fieserve S y s t e a
L e a se d W ir e S e r v ic e
’'■sivod at Washington, B.O.
» S MAR 30
WA17G74BD WASH Jl08 KC 30-427
VAN F0JS|N BO^RD
J E X E t/ ESTIMATED EARNINGS 1 9 4 5 TO MARCH 31 ON TREASURY B IL L S
OPTION ACCOUNT, $ 4 3 ,6 0 0
KOPPANG.
PM 5
37
Reproduced from the Unclassified / Declassified Holdings of the National Archives
® r a m
B o a r d of G o v ern o rs
a;/
Federal Reserve System
Leased Wire Service
Received at Washington, B.O.
«45 «,
3 o ; pM
1 32
WA67G78WASH M41 DLS 30-1226p
VAN FOSSEN
3/ e ° U
RETELA ESTII
ESTIMATED EARNINGS FOR 1945 TO MARCH 31 ON TREASURY BILLS HELD «ff
ACCOUNT ARE $27,930
GENTRY
FOB HIES
M. B. Daniels
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T
G HAB
uJoard ot O'ov tjmorte
ol tUfe
F e d e ra l R e s e r v e S y s te m
leased Wire Service^
Eoceivod at Washington) D'U.
2 12"WTTJp
^
PM
f
59
/'A<
WA72G99WASH L28 SF 30-1048
VANFOSSEN BOARD
REURTEl/ BATE. ESTIMATED EARNINGS ON TREASURY BILLS TO
MAR. 31 $317,000
SLADE.
■ram*.
FOFt FILES
M. B. Daniels
^
Reproduced from the Unclassified / Declassified Holdings of the National Archives
TELEGRAM
BOARD OF GOVERNORS
OF TH E
FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V IC E
WASHINGTON
Maroh 30, 19^5
Flanders
Sproul Williams
Gidney -
- Boston
lev York
* Philadelphia
Cleveland
Leach MoLarin
Yotrng Daris -
Richmond
- Atlanta
Chicago
St. Louis
Payton - Minneapolis
Leedy - Kansas City
Gilbert - Dallas
Bay - San Pranoisoo
Please wire estimated earnings for 19b5 to Maroh 31 on
Treasury bills held by your Bank outside System aooount*
Tan Fosses
Reproduced from the Unclassified / Declassified Holdings of the National Archives
E JjiiiG JtiA M
Bv. *rd of Governors
o r the
Federal Beserve System
H10TD II FILES SECTIGH
y'
.n
..
I!J 1
L1 o
2 a8 iq/sk
1945- ■
.... • , ' /
L e a s e d W ir e 'S e r v ic e
Beoeived at Washington, D.O.
WASH B281 LONG NY 29-211P
SMEAD
BOARD
THE FOLLOWING TELEGRAM WAS SENT TODAY TO THE PRESIDENT Of
EACH FEDERAL RESERVE BANK QUOTE
DUE TO THE LAST BUSINESS DAY OF THIS MONTH FALLING ON SATURDAY,
THE MONTH-END ADJUSTMENTS IN PARTICIPATIONS IN TREASURY BILLS HELD IN
SYSTEM ACCOUNT WILL BE EFFECTED ON FRIDAY, MARCH 30 BASED ON THE
RESERVE RATIOS AT TH£ CLOSE OF BUSINESS THURSDAY. IF YOU FIND ON ,
SATURDAY THAT YOU NEED TO FURTHER ADJUST THE RESERVE RATIO OF YOUR
BANK, PLEASE TELEPHONE US AND WE WILL TAKE CARE OF THE MATTER. THE
USUAL QUARTERLY REALLOCATION OF PARTICIPATIONS IN SYSTEM ACCOUNT
WILL BE. MADE ON APRIL 2, AS. OF APRIL 1 AND WE WILL ADVISE YOU LATE
IN THE AFTERNOON OF APRIL 2 OF THE ENTRIES TO BE MADE. ALTHOUGH TH
ENTRIES ARE TO BE MADE ON THE RECORD^ AS OF APRIL 1, THE TRANSF
FUNDS WILL BE HANDLED IN THE CLEARING^ OF APRIL 2 UNQUOTE
ROUSE*
"\
A
\
,\
„----------------------------------------------------------------------Reproduced from the Unclassified I Declassified Holdings of the National Archives
\R D □ F G O V E R N O R S
□ r THE
FEDERAL RESERVE SYSTEM
Office
C o r r e s p o n d e n c e
To______ Mr. Smead_________________
Date Maroh 19. 19U5.
Subject:_________________________
Referring to your pencil memorandum regarding the
appointment of a Presidents1 committee on scientific revision
of the System Open Market Account allocation formula, and re
questing our suggestions, there are submitted herewith some pre
liminary comments.
The use of the word "scientific" in the title of the
Committee suggests the idea that the Presidents have in mind the
development of a formula which will achieve some objective other
than, for example, equalization of reserve positions. This, to
gether with the anticipated change in minimum legal reserve re
quirements would seem to indicate that no attention need be paid
to the effect of the proposed formula on reserve positions on
the expectation that reserve deficiencies will be avoided by
some provision for interbank sales of Treasury bills, if and
when necessary. It would be helpful in considering this problem
if you can either confirm this assumption or indicate to what
extent the Presidents may regard equalization of reserve ratios
as entering into the problem.
It is assumed that the option accounts will be contin
ued and also that the Presidents will want to continue in some
form the arrangement whereby participations in interest-bearing
securities are stabilized so as to stabilize the distribution
of possible future losses that may be sustained.
In keeping with the above-mentioned assumptions, and
in view of the fact that earnings of the Federal Reserve Banks
at the present time and through any foreseeable future period
will greatly exceed expenses and dividends, it is suggested that
the first step in the allocation of the System Open Market Ac
count be the continuous allocation of interest-bearing securi
ties in proportion to average holdings of such securities during
the preceding five years, disregarding entirely current expense
and dividend requirements* By so doing, participations in
interest-bearing securities would be stabilized on a percentage
basis and current sales and purchases, being allocated on the
same percentage basis, would not disrupt this situation. Accord
ingly, if and when losses are sustained, they would be participated
I------------------------------------------------------------- ""——---Reproduced from the Unclassified I Declassified Holdings of the National Archives
To*
H r. Smead
among t h e Fed eral Reserve Banks in t h e d e s ire d p ro p o rtio n i r r e s p e c t i v e
o f whether t h e amount o f i n t e r e s t - b e a r i n g s e c u r i t i e s in t h e meantiroe
had remained c o m p a ra tiv e ly s t a b l e o r had been s u b j e c t t o wide f l u c
tu a tio n s.
Inasmuch a s e a rn in g s from i n t e r e s t - b e a r i n g s e c u r i t i e s
plus earn in g s from o th e r sou rces th a n Government s e c u r i t i e s would
norm ally exceed expense and dividend requirem en ts and t o t a l e a r n
ings would g r e a t l y exceed expense and dividend requirem ents in
any e v e n t , no e s ti m a te s of expenses and dividends need be taken
in to accou n t i f th e o b j e c t i v e i s t o e q u a liz e surplus and r e s e r v e s
f o r c o n t i n g e n c i e s , f o r exam ple, in p ro p o rtio n t o e i t h e r p a i d - i n
c a p i t a l or member bank d e p o s i t s , or any o th e r such b a s i s * Without
having some f u r t h e r in form ation as t o what t h e P r e s id e n ts would
r e g a r d a s a s c i e n t i f i c fo rm u la, i , e » , what they th in k i s the
o b j e c t i v e to be a c h ie v e d , i f p o s s i b l e , i t i s h a r d l y worthwhile t o
e x p lo re v e r y e x h a u s t i v e l y th e p o s s i b i l i t i e s in r e s p e c t t o th e a l
l o c a t i o n o f t h e rem aining s e c u r i t i e s in t h e System Open Market
Account* I t would seem t o be s u f f i c i e n t t o p oin t out t h a t i f t h e
o b j e c t i v e i s t o e q u a liz e surplus and r e s e r v e s f o r c o n tin g e n c ie s in
p r o p o rtio n t o member bank d e p o s i t s , f o r exam ple, the f i n a l s te p
i n th e a l l o c a t i o n would be t o a l l o c a t e th e System Account holdings
o f b i l l s so a s t o d i s t r i b u t e earn in g s from t o t a l b i l l h o ld in g s ,
in c lu d in g op tion a c c o u n t b i l l s , a s t o b r i n g about such an equal
i z a t i o n * A s i m i l a r o b s e r v a tio n might be made i n r e s p e c t t o any
o t h e r o b j e c t i v e t h a t t h e P r e s i d e n t s mi^vfc decid e upon,
The fo regoin g corcments a r e based on th e assumption t h a t
th e use o f the word ws c i e n t i f i c ” has some r e a l s i g n i f i c a n c e *
th e re
i s one c o n tin g e n c y , however, t h a t c a s t s c o n s id e r a b le doubt upon the
a d v i s a b i l i t y o f adop ting a t r u l y s c i e n t i f i c formula a t t h i s tim e*
This contin gency i s t h e p o s s i b i l i t y o f an amendifient t o the F e d e r a l
Reserve A ct r e s t o r i n g t h e f r a n c h i s e t a x in some form . I f t h i s
should happen and t h e f r a n c h i s e t a x should be a l l or some p o rtio n
o f n e t e a rn in g s a f t e r su rp lu s ( o r su rp lu s plus r e s e r v e s f o r con
t i n g e n c i e s ) reach es some s p e c i f i e d a b s o l u t e amount o r some pro
p o r t io n o f p a i d - i n c a p i t a l , i t -would obviou sly be p r e f e r a b le t o
have th e formula tend to e q u a liz e s u r p l u s ( o r surplus and r e s e r v e s
f o r c o n t i n g e n c i e s ) i n p ro p o rtio n t o p a i d - i n c a p i t a l and t o have
t h i s p r o c e s s begin now r a t h e r th an a f t e r l e g i s l a t i o n r e e s t a b l i s h
ing th e f r a n c h i s e t a x *
As in d i c a t e d above, i t would be h e l p f u l in any f u r t h e r
e x p l o r a ti o n o f t h i s s u b je c t i f some c l a r i f i c a t i o n can be had of
what th e P r e s i d e n t s had i n mind*
fteprod’ucfed from the Unclassified I Declassified Holdings of the National Archives
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