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Reproduced from the Unclassified I Declassified Holdings of the National Archives

A

-

—

-.r

MINUTES O F

j F c o m m x t i e b O F GOVERNORS o w - e n v a l i z e d e x e c u t i o n
.
c
O F PURCHASES AND SALES O F GOVERNMENT SECURITIES
BY HE&ERAL RESERVE BANKS.
« * ?
HELD AT THE FEDERAL RESERVE BANK O F BOSTON
~
________
FK8RUAKT $,
AT 10:30 A» IU

i d u

/I

9 1S l>

~b

PRESENT;
Governors Harding and MeDoug
McDougal
big:
Mr. Jay representing Governor Strong
Mr* Wills representing Governor f^ncher
Mr* W* B* Me.tte6o,n, Secretary of the Consnittee
There were also present by invitation:
Honorable John R. Mitchell of the Federal Reserve Board
Mr. Frederic H- Curtiss, Federal Reserve Agent at Boston

'

In the absance of the chairman, Governor Harding vas, on motion,
chosen to act as chairman of the meeting*
A report

ttrs

submitted describing fully the activities of the Com­

mittee for the period from May 17, 192£ to January 31* 19?3»

The various

X

exhibits shown and the transactions and activities in detail v»ere discussed
at some length, and it *ras understood that a copy of the report would be
furnished to the Federal Reserve Board and to each federal reserve bank vdth
the minutes of this meeting*
Mr. Jay revie***d the orders for the account of the Treasury executed
between October 25, 1922, and January 31, 1523, end the Secretary explained
that "the reason u i y the New York bank had executed so large a share of the
rh
orders -was that a considerable part of the Treasury orders **ere for execution
on recognised Stock Exchanges only t and that as Government securities are^nct)
dealt in extensively on exchanges in other cities a large portion of such
orders had to be executed in New York#
The question i*as raised as to whether, in the judgment of those
present at the meeting, the Committee was functioning properly m d all present

j

expressed themselves in the affirmative*
The policy of the Federal reserve bank® vritli regard to epen market
purchases and the functions of the Committee in respect thereto,

http://fraser.stlouisfed.org/
XjLXte^j
Federal Reserve Bank of St. Louis

0 /2 3

~

vere

Reproduced from the Unclassified I Declassified Holdings of the National Archives

considered at l e n g t h and the Secretary read an e x t r a c t

from t h e m i n u t e s o f t h e

October 2 meeting o f t h e Committee b e a r i n g on the s u b j e c t , a s ^ e l l

as

th e

discussion thereon at t h e j o i n t conference, h e l d i n W a s h i n g t o n , O c t o b e r 10
to October 12, 1°??*

The Secretary a l s o

read the f o l l o w i n g statement re­

garding the credit policy of the system t r h ic h vas unanimously adopted at
the October Washington conference:
"That for the present the credit policy of the
Stederal Reserve System should aim to furnish credit and
currency to member banks for their seasonal and emergency
requirements, but such policy, as r^ell as open market
operations, should be administered in each district in
such manner as to assiet the system in discharging, as far
as it may be able, its national responsibility to p revent,
credit expansion from developing into credit inflation**
"Whereupon, on motion, duly made and seconded, the follomng
memorandum vas adopted by the Committee;




"In vie’r of present credit conditions the Committee
w
recommends that the present policy be continued and that
for the present, cr until the next Governors* Conference,
open market -investments
equalized between the twelve
r e s e r v e b a n k s a s f a r as p o s s i b l e , y r i t h o u t - p u t t i n g f u r t j ^ r
F ed eral

re se rv e

fu n d s i n t o

t h e m a r k e t_ iJ ir o u p h --f iy e n mp, f l e e t

operatic ne#1
*
On action meeting adjou

Secretary,

^

Reproduced from the Unclassified I Declassified Holdings of the National Archives

REPORT O r COMMITTEE OF GOVERNORS ON CENTRALIZED EXECUTION OF
PURCHASES AND SALES OF GOVERNMENT SECURITIES BY FEDERAL RESERVE BANKS,
SUBMITTED TO COMMITTEE AT MEETING IN BOSTON, FEBRUARY 5, 1923,
COVERING PERIOD FROM MAY 17, 1922, TO JANUARY 31. 1923. INCLUSIVE
Herewith is presented the following exhibits of the activities and
operations of the Committee since its formation:
Exhibit "A" - Government security holdings of the Federal reserve
banks, as at the close of business January 31, 1923.
Exhibit MB" - Weekly statement of United States securities (exclusive
of Pittman Act Certificates) held by Federal reserve
banks from January 1922, to date.
Exhibit "C" - Comparison of the Government security holdings of all
Federal reserve banks as of May 17, June 30, October
25, 19 22, and January 31, 1923.
Exhibit ”DM - Synopsis of United States securities as compared with
all other earning assets held by Federal reserve banks
from October 4, 19 22, to January 31, 19 23*
Exhibit "E” - Statement showing changes in Gold and Government
•
security holdings of reserve banks as compared with
record of gold imports and exports of the United States.
Exhibit "F" - Statement of Estimated Earnings and Expenses of all
Federal Reserve banks for the year 1923 based on expenses
for 1922 and earning assets held January 31, 1923,
Exhibit "G” ~ Purchases and Sales of Certificates of Indebtedness by
Federal reserve banks affecting their investments - Janu­
ary 24 to February 2, 1923, inclusive.
Exhibit "H" - Report of transactions in Government securities for
account of the Treasury Department and Federal reserve
banks, also data regarding market conditions from close
of business January 24, 1923, to close of businese
January 31, 1923, as reported to the Committee of
Governors.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

-

2

-

The o p e r a t i o n s by F e d e r a l r e s e r v e banks cover inf; trans­

Transactions
in Government
Securities by

actions in Government s e c u r i t i e s

Federal reserve banks

(
<
counts since the last report dated October 25, 1922, submitted

f or Their Own
Accounts

,
the Committee of Governors at the meeting held in Cleveland on Octooer

a f f e c t i n g t h e i r own investment aco

31, 1922, have been very limited.
On October 25. 1922, the total holdings of all Federal reserve banks (including Pittman Act Certificates and Sales Contracts)
were about ................... ......................... *408,000 ,000
Since that time the following deductions and additions have been
made:
DEDUCTIONS

ADDITIONS

Treasury certificates
m&turing Dec. 15, 1922, - $36,000,000 March 15, 1923,
Treasury certs. *^40,000,000
Victory Motes called for
redemption Dec. 15, 1922 -

6,000,000 Dec. 15, 1923
Treasury certs. * 19,000,000

Uncalled Victory Motes
sold in market (as
suggested by Treasury,
proceeds to be rein­
vested in pfirt in
Bankers Acceptances)

•
*

31,000,000

Pittman Act Certificates

-

41,000,000

Sales Contracts

“ __ 2,000,000

Treasury Notes

T o t a 1 ............ 1116,000,000
1 e t
!




D e d u c t i o n

2,000,000

----.................$61,000,000

............. ....................... . ••♦ S^OOOjOOj.
,

Holdings January 31, 1923 .............. .................$353,000,00J

*

With respect to this increase it is to be noted that

f.40,000,000 is represented by 3 1/2$ certificates maturing March 15,
1923, and 119,000,000 by 4 o certificates maturing December 15, 1923,
^
which were taken over by several of the reserve banks as an incident
to the December 15, 1922, Treasury financing.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

- 3 -

During the entire period covered since the Committee
has been in operation, the Government security holdings of the
Federal reserve banks (including Pittman Act Certificates) have
shown a reduction of approximately 0276,000,000 from the high
point of 0629,000,000 on June 14, 1922,

Of the 0353,000,000

now on hand 033,000,000 is in the form of Sales Contracts*
In considering the question of further reduction from
the present total of 13353,000,000 it should be borne in mind
that some 082,000,000 are Treasury certificates maturing on
March 15 next, a matter of 40 days.

This amount has since been

reduced to about $60,000,000 which balance the Treasury may de­
sire to take over gradually before maturity*

In viev; of the

short maturity it may be advisable, unless taken over by the
Treasury* to retain these certificates in portfolio,

allowing them

to run off without reinvestment, and that all further sales of
Government securities by the Federal reserve banks during the
next month or so should be designed chiefly to accomplish liquida­
tion of Treasury notes now carried in portfolio.

In this connec­

tion we understand that it is the Treasury’s hope and expectation
to be able to run from now until March 15 without any new offering
of securities, which may afford a favorable opportunity for dis­
posing of some of the Treasury notes,




Reproduced from the Unclassified I Declassified Holdings of the National Archives

-

4

Treasury orders pending at the time of the last report and

Treasury
Orders

those subsequently given to Federal reserve banks covering the purchase
and sale of Government securities are as follows:
(TO

P U R C H A S E

)

Date of Order

Account

Is sue

October 15 to
30, 1922

War Finance
Corporation

Treasury
Notes

Cumulative'
Sinking Fund

Called Victory
Notes
Market

15.000.000

Alien Property
Custodian

Treasury Bonds
of 1952
Market

2 000,000

Alien Property
Custodian

Treasury Bonds
of 1952
Market

1,500 *000

Cumulative
Sinking Fund

Called Victory
Motes
Market

10.000.000

Cumulative
Sinking Fund

Called Victory
Notes
Market

10 000,000

Cumulative
Sinking Fund

Called Victory
Notes
Market

4,975,350

Cumulative
Sinking Fund

Uncalled Vic­
tory Notes
Market

30.000.000

Alien Property
Custodian

March 4 l/4|
Certificates 100.1/8

5.000.000

Alien Property
Custodian

Any
Certificates

17, 1922

25, 19 22

27, 1922

"

31, 1922

November 14, 1922

27, 1922

December 6, 12 &
14, 1922
6, 1922

9 & 12,
1922
18, 1922

"

January

"

29, 1922

8, 19 23

8, 1923

To Yield
4 1/4# or
better

Par

Purchases from
June 15, 1925
Proceeds Treas- 4 1/2% Motes
Par
ury Notes

,

,

15.000.000

20.000.000

Uncalled Vic­
tory Notes
Market

5.000.000

Cumulative
Sinking Fund

Third 4 1/4$
L*L. Bonds

8 ,000,000

Farm Loan
Board

Dec, 15, 1923
4y£certificates Par

Market

14,400,000
4,250,300

( TO




i)10,000,000

Cumulative
Sinking Fund

Miscellaneous Orders

November 9, 1922

Amount

Price

Postal Savings
System

S E L L )
Second 4 1/4%
L.L, Bonds
Market
T O T A L

9.375,000
0164,500,650

Reproduced from the Unclassified I Declassified Holdings of the National Archives

These orders he ve been completed through purchases by the different banks,
as shown in the following figures , which figures also reflect the tiistri**
bution of Evil T r e a s u r y orders from the time the Committee began operations
to October 25, 1922, as well as during the entire period covered:
Treasury Orders Executed
From May 17* 192£
to Oct •>25, 1922

Bo ston

$

New York

46,738,350

From Oct. 25, 1922
to Jan* 31, 1923

$

11 ,402,500

From May 11, 1922
to Jan >311 1923

#

58,140,850

219,711,250

Philadelphia
Cleveland

104,354,850

*324,066,100

27,241,500

14,095,400

41,336,900

3,300,000

Richmond

-0-

3,300,000

199,300

41,450

240,750

Atlanta

2,698,350

806,000

3,504,350

Chicago

56,283,500

23,970,000

80,253,500

S t , Louis

6,576,700

2 ,026,900

8,603,600

Minneapolis

1,328,200

2,883,750

4,211,950

Kansas City

282,300

1,670,300

1,952,600

Dallas

-0-

San P’
rancisco

-0-

-0-

3,249,500

16,590,100

$377,700,050

*

13*340.600

$164,500,650

$542,200,700

Of this rmount there were purchased and sold on the New York Stock

Exchange Liberty Loan bonds and Victory notes amounting to $124,784,300 on
Treasury orders which contained instructions that these transactions be executed
in this manner*




GOVERNMENT SECURITY HOUSINGS OF FEDERAL RESERVE BANKS
AS REPORTED TO TOE COMMITTEE OF GOVERNORS AT THE CLOSE OF BUSINESS JANUARY 31. 3923

EXHIBIT "A"

Maturities
March

15, 1923

Victory Notes, 5/20/23

June

Boston

New York

13,525,000* #40,000,000#
.

-0-

-0-

A

L

Sales Contracts

AGGREGATE




-0-

#

35,000*

-0-

-0-

-0-

547,000*

3,847,000*

-0-

-0-

17,549,000*

1,114,000*

410,500*

-1,284,500*

-0
-

345,500*

15,000*

-0-

12,350,000*

6,010,000*

-0-

503,500*

1,871,000*

10,915,900.

3,199,700*

6,500.

4,425,600*

7,304,400.

6,207,910*

535,150. 1,146,750.

#27,434,850.$56,148,750.

22.919*900.

#29,075,000* #79,068,650*

22,790,900*

1.799.700*

#29,183,600.

-0-

11,408,000* #

949,400*

150,000.

1,390.900*

#26,323,900* # 1,340,900* #3,540,000.

^

-0-

#67,226,3.00*

________ -0-

________ ^

#29,183,600*

#26,323,900* # 1,340,900* #3,540,000. #67,967,100*

#26,747,800.

741,000* _________ ^

#26,747,800.

# 9,937,110*

__________ -0"

# 9,937,110*

Dallas

# 6,351,500* $

3»785,500*

4,680,700*11,500,000.

1*640.150.

47,000.

Kansas City

84,000*

-0-

T

-0-

#

Minneapolis

1,356,500*

1923

O

#15,505,500*

-0-

-0-

$1,020,000.

St, Louis

15,525,000*

4,844,000*

T

-0-

-0-

Chicago

2,000,000.

September 15, 1923

Miscellaneous

-0-

# 5,902,000.

Atlanta

-0-

3,500,000*

Trees. Notes 1924/7

100,500*

Richmond

4,202,500*

3,850,000.

15,

#

Cleveland

3 ,600,000*

15, 1923

December

Philadelphia

San Francisco

569,000.$

Total

-0-

$ 83,065,500

-0-

-fr*

944,500# 7 ,1 4 9 ,5 0 0 *

45,997,500

-0-

-0-

31,671,000

-0-

18,892,000

23,430,600*

1,100,000. 37,459,100.

109,009,4c0

3,497,800*

2,569,500. 10,157,800.

39.793.410

#38,521,400* #7,258,000*#34,766,400*

#328,428,810

171,500*

________ “0-

2,075,000*

-0-

-Q-

_______ z 2 z

#38,521,400. #7,258,000.#34,766,400*

- 5»3Cli_Q50
2

#353,729,860

m e w l "B»
WEEKLY 8TATBISNT OF PHITED STATES SECURITIES, (tXCLOSlVI OT F i r m A C ERTin CATES^
N
HELD BY FEDERAL RESERVE BANKS
—

BOBtOB

11
18
25
1
8
15
21

1
8
15

22

29
5
12
19
26
3
10

I
T
24
31

T

14
21

28

5
12
19
26

2
9
14
23

1
13
20

27
4
11
18
25
1
8
15
22

29
6

13
20

27

N«w Y *rk

3 .3
2 5 .8
2 6 .5
2 8 .3
2 9 .0
3 0 .2
3 0 .4
2 9 .8
2 9 .8
3 0 .2
2 8 .3
2 9 .2
2 9 .5
2 7 .4
2 7 .1
2 8 .0
4 1 .9
4 2 .9
4 4 .0
4 2 .6
4 2 .7
4 2 .6
5 2 .5
5 4 .1
3 8 .7
4 3 .1
4 1 .5
4 0 .5
4 3 .0
4 3 -2
3 7 .9
3 7 .2
3 8 .2
4 0 .4
4 4 .8

6 2 .6
3 0 .3
2 0 .6
2 8 .8
7 2 .4
9 8 .7
1 2 9 .4
9 2 .5
1 3 0 .3
1 4 3 .0
1 1 9 .6
1 1 4 .8
1 0 2 .2
1 0 5 .7
1 3 4 .4
1 3 9 .9
1 6 1 .8
1 8 7 .2
1 9 0 .1
1 6 6 .3
1 6 4 .3
1 7 1 .8
1 7 0 .8
1 8 4 .4
U 9 .7
1 5 9 .0
1 5 1 .2
1 7 9 .8
1 6 8 .0
1 6 8 .7
1 3 9 .1
1 3 8 .9
1 3 7 .1
1 3 3 .6
1 3 5 .0
1 4 7 .6
1 3 8 .0
1 1 5 .6
1 2 8 .3
1 5 1 .2
1 4 2 .9
1 2 4 .2
8 9 .1
5 8 .5
5 3 .0
5 0 .5
4 3 .0
5 3 .4

45.8
4 6 .3
2 1 .9
2 4 .7
2 8 .0
2 8 .8
2 8 .3
2 6 .4
2 5 .0
2 4 .7
1 9 .2
1 8 .0
1 8 .5
1 8 .3
1 7 .6
3 0 .5
3 1 .3

3

4 0 .8
3 8 .7

17
24

28.1

10

2 9 .2
2 9 .1




P h ila d e lp h ia
2 .4
2 .7
9 .3
1 1 .7
1 1 .8
1 4 .0
1 4 .5
1 4 .7
1 4 .7
1 4 .7
1 4 .7
1 4 .8
1 4 .8
1 4 .7
1 7 .8
1 8 .3
2 0 .3
2 4 .3
2 4 .4
2 4 .4
2 4 .4
2 4 .4
2 5 .7
2 6 .2
2 4 .9
2 7 .4
2 9 .0
2 9 .0
2 9 .0
2 9 .0
2 9 .6
2 9 .2
2 9 .2
3 9 .0
3 0 .1
3 0 .1
3 0 .5
2 9 .2
2 9 .4
3 1 .4
3 0 .1
2 9 .8
2 9 .3
2 9 .3
2 9 .1
2 9 .1

C levelan d

60.2

2 8 .1
2 8 .1

5 9 .3
1 2 5 .0
1 1 3 .7

3 4 .8
4 2 .1

5 .8
6 .1
6 .1
6 .1
1 5 .4
2 1 .9
2 2 .0
2 6 .5
3 2 .6
3 5 .6
3 5 .6
3 6 .8
3 7 .8
4 1 .6
4 3 .7
4 5 .7
4 5 .7
5 5 .8
5 7 .4
5 9 .4
6 5 .9
6 6 .5
6 9 .5
7 0 .1
6 6 .5
7 0 .2
7 0 .3
7 0 .8
7 0 .8
7 0 .9
6 2 .9
6 3 .6
6 3 .7
6 5 .7
6 7 .7
6 7 .8
6 7 .8
5 6 .6
5 6 .7
5 7 .0
5 6 .7
4 6 .4
4 6 .5
4 1 .1
3 5 .7
3 6 .0
2 5 .7
2 5 .7
2 5 .7
2 5 .7
2 9 .7
3 1 .7

1 2 1 .4
1 4 6 .5
1 1 0 .0
9 6 .9
7 9 .1

3 4 .1
3 9 .6
2 9 .2
2 9 .4
2 9 .2

4 8 .8
4 5 .8
3 8 .7
2 6 .3
2 6 .3

28.1
28.1

R ietaon d
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
1 .2
3 .2
7 .2

6 .3
9 .3
5 .8
1 .3
1 .3

A tla n ta
1 0 .3
1 0 .2
7 .5
5 .8
2 .8
.9
.1
.2
.1
.1
.1
.1
.1
.1
.1
.1
.2
.2
.1
.3
.2
.3
.2
1 .1
.4
2 .2
2 .2
2 .2
2 .3
2 .1
2 .6
2 .2
2 .2
2 .3
2 .2
2 .1
2 .2
2 ,2
2 .2
2 .2
2 .2
2 .2
2 .2

Chicago
1 5 .8
1 2 .2
2 4 .9
3 2 .3
3 4 .0
U .7
4 5 .9
5 0 .1
5 9 .9
6 1 .6
6 3 .5
7 3 .8
7 9 .3

80.0

2 .6
2 .2
2 .2
2 .2

7 9 .4
8 6 .7
8 6 .7
8 5 .7
8 8 .7
9 0 .6
8 7 .9
8 8 .3
8 7 .2
8 1 .2
6 3 .1
4 8 .5
4 6 .9
2 5 .2
2 3 .9
2 4 .2
2 5 .6
2 3 .7
2 7 .3
2 3 .5
2 7 .9
2 9 .9
2 8 .9
2 6 .5
2 6 .0
2 8 .9
3 7 .3
4 2 .3
4 0 .4
3 8 .3
3 9 .5
3 7 .3
3 4 .6
3 7 .8
4 0 .6
4 0 .1
6 2 .2
7 7 .7

9.3

5 6 .8

9 .4

70.7
65*9

2 .2

2 .2

2 .2
2 .2
2 .2

2 .2
2.4

3.5

4fl.6

6 8 .0

S t . Lo u i«
1 .4
1 .4
1 .3
1 .3
2 .0
4 .4
8 .8
9 .8
1 0 .9
1 1 .9
1 3 .4
1 6 .5

16 .7
1 8 .2
2 1 .0
2 1 .4
2 1 .4
2 1 .4
2 4 .1
2 4 .7
2 5 .7
2 5 .6
2 7 .1
2 8 .1
2 2 .5
2 1 .6
2 2 .0
2 2 .2
2 2 .5
2 2 .7
2 1 .6
2 1 .1
2 1 .6
2 2 .7
2 4 .0
2 5 .2
2 5 .1
2 4 .7
2 3 .1
23*2
2 3 .0
2 3 .0
23.C
2 1 .1
2 1 .2
1 9 .7
1 9 .6
1 9 .6
1 9 .6
1 9 .5

25.5

3 0 .6

24.5
25.7
24.5
24.2

2 6 .8

M inn aapolia
.2
.1
.1
.1
.6
.6
1 .0
1 .1
1 .4
3 .1
5 .4
5 .7
6 .5
7 .3
8 .5
9 .8
9 .3
1 0 .2
1 0 .5
1 0 .7
1 0 .6
1 0 .9
1 .2
1 2 .3
8 .9
9 .3
9 .5
9 .0
8 .0
7 .8
7 .5
7 .1
6 .2
6 .1
6 .6
6 .7
7 .2
1 5 .5
1 5 .9
1 6 .0
1 0 .0
1 0 .2
9 .4

1 0 .1

1 0 .1
1 0 .1
1 0 .1
1 0 .3

K m n
9 .0
8 .9
8 .9
8 .9
9 .0

San F r a n d a c o

2 .6

3 .6
4 .6
5 .0
9 .9
1 1 .4
1 3 .0
1 2 .2
1 2 .1
1 2 .3
1 4 .9
2 3 .8
2 5 .4
2 5 .6
4 0 .8
5 1 .6
5 1 .7
5 1 .7
5 4 .7
5 4 .7
5 4 .7
5 4 .7
5 4 .7
5 4 .7
5 4 .7
5 4 .8
5 5 .3
5 6 .8
5 6 .8
5 3 .2
5 3 .2
5 3 .2
5 3 .2
4 9 .2
4 9 .2
5 0 .2
5 0 .2
5 0 .3
4 9 .2
4 9 .1
4 9 .1
4 9 .1
4 9 .1
4 9 .1
4 5 .0
4 5 .0
3 9 .7
3 5 .0
3 5 .0
3 5 .0
3 4 .8
3 9 .8
4 4 .8

1 1 8 .1

3 8 .0
4 9 .8
4 0 .6
3 4 .8
3 4 .8

4 5 6 .6
508 . 2
412.4
3 5 2 .8
3 5 3 -7

2 .6
2.t>

30*5
3 0 .5
3 1 .3

4 0 .3
3 9 .4
3 9 .4

3 7 .2

3^3
4 0 .3
4 1 .3

4 .6

4 1 .4
4 1 .4
4 1 .2
4 0 .9
4 0 .9
4 0 .9
4 0 .3
4 0 .7
4 0 .6
4 0 .5
4 0 .6

4 .1

4 .1
4 .1

39.4
3 9 .2

1 1 .0
1 1 .0
1 1 .0
ll .C

1 0 .9

1 3 .6

D a lla a

2 .6

1 0 .1

1 2 .1

c itr

4 1 .3
4 0 .1

1 7 .3

45.2

1 3 .3

11 .3

4 3 .1
4 3 .5

9.9

38.5
38.5

1 3 .8
12.4
12.4
7 .2

1 5.e
8 .8

A ll Banka

D» t i
19 2 2
Ja n .

106.2
1 1 3 .9
1 3 7 .1
1 9 2 .4
2 4 3 .6

T ab.

286.1
2 5 8 .0
3 1 7 .6
3 4 9 .9
339 . 4
3 5 2 .7
3 5 1 .8
3 7 5 .3
4 2 4 .5
4 4 6 .2
4 8 2 .6
5 2 6 .2
5 3 6 .0

M ar.

Apr.

4
11
18
25
1
8
15
21
1
8
15
22
29
5
12
19

26

May

3
10

17
5 1 7 .7
5 2 6 .4
5 4 0 .9
5 5 4 .2
4 4 4 .6
4 8 2 .6
4 7 6 .5
4 8 2*7
4 6 7 .8
4 6 8 .8
4 2 6 .9
4 2 2 .7
4 2 1 .1
4 1 8 .7
4 3 5 .0
4 5 1 .6
4 4 1 .8
3 8 6 .9
4 0 0 .9
4 3 5 .3
4 2 8 .5
4 0 3 .4
3 6 7 .6
3 2 2 .3
3 1 2 .1
29 4 .2

266.6
2 8 1 .0
2 9 0 .3
2 8 8 .7
4 1 7 .2
4 4 5 .9

24

31
June

(AppoiafcaA

7

14 s a g
21
28
Ju ly
5
12
19
26
Aug.
2
9
16
23
30
S e p t. 6
13
20
27
O c t.
4
11
18
25
1
Nov.
8
15

22 m
Deo.

im
Jan .

29
6
13
20
27

3
10
17
24
31

S S S O '

O M A iaO or TUI Q YIRtW T aiOTKIXT
C PR H
O
lH
H0LBH08 BT MAIORITUg OT ALL R»8KRVI B H
A E8
G M IH AS Of MAT IT. JOK» 30. OCIQBBt 25, 1922
O B E)
AM) JA O R 31, 1923
JT A T
Holdings on
OctobT 25, 1122

Holdings on
January 31» 192J

Form*d Mar 17. 1922
C ertificates and
Victory notes
matured 1922

Holdings on
Jun* 30, 1922

| 321,622,450

• 211,454.900

t 72,938,5*0

46,131,500

46,435,500

43*839,500

83*065,500

#

March

15# 19 23

June

15, 1923

mQm

29,894,500

48,110,500

45,997.500

September 15» 1923

-o»

mQm

29,553.000

31,671,000

December 15# 1923

-0 -

-0 -

. 18,892*000

Treasury Notes

87,542,600

123*816,900

106,822,300

109,009,400

Miscellaneous Gorft Bonds

53,681,010

39,201,566

39,146,300

39,793* *10

♦ 508,977,560

1 440,005.366

t 340,410,100

f 328,428,810

80, 000,000

7 4 ,0 0 0 ,0 0 0

41,000,000

■0*

T O T A L

Pittman Act C ertificates
Sales Contracts
A GE AE
G RG T




mQm

mQm

27.231.300

25,301,050

I 588,977.540

t 534,005,364

I 408,(41,400

I 353,729,860

Piaepi Ceead
hldlha lvln

(OO oi td ^
O m te
Alna Cicx
tat h ao

Ct D allaa
iy

Boston

New York

1922
A ll o tte r earning i i N t i
0. S. aeo uritieo

44,081
30,748

139,153
162,692

58,774
34,380

63,462
59 , 960

43,560
4,701

42,374
5,131

83,766
35,565

37.200
26.778

2*.531
19,010

22,’ 13
*3,869

32,138
3,481

is m u lil. mi
A ll other earning m i t i
0. 8. e e eu ritieo

55,044
31,549

235,856
154,401

60,122
33,071

73,041
59,711

42,562
4, 201

36,517
5,170

83,572
*3,51*

32,203
26,564

23,861
12,519

19, ’ 98
♦3,*08

flfttaker 12. 1122
A ll other •arning aaaete
0 . S. aeo u rltiee

54,513
31.094

187,907
134,247

68,745
32,807

78,248
49, 361

44,504
4,201

43, 669
5,16*

99.03*
*7.967

34,48 3
26,563

23,275
12,701

Qalafetr 21. 1122
A ll other •arning a ia e ti
0 . S . eeeu ritlee

56,241
28,633

164,596
99,111

63.129
31,762

72,010
49,016

42.996
4,201

*1,997
5,232

85,172
*5.0 3
9

37.930
26,614

A ll other tam ing aaaete
0. B. aa eu rltiaa

70,797
27 , 291

240 , 654
67,007

68,997
31,765

76,720
*3,551

42,639
4, 201

*8,106
*,665

93,056
*2,950

*1,070
23,689

M w a fttr 9 ■ mi
A ll o th ir •arning a s u t i
0 . B. • • o arlti««

92,966
26,440

258,947
61,522

68,488
1.619

92,908
38,217

41,641
2,701

*a,905
*.155

91,779
*3,136

£ a d * u l taeerre BwU Of;

MU

Ri chmond

[

M a m te « 1 3 i 1 ? «
A ll other a arning aaaeta
0. 8. aa eu rltiaa

S t. Louie

Mmneapolie

Kar.aaa

San Franciaco

TOTAL

t o f * gate

78,277
51,976

669,654
*83,3*1

1,152,995

30. 625
8,481

78,195
51,975

771,406
*74,56*

1,245,970

2*. 190
*0.313

30,110
11,056

79,241
51,407

767,91*
446,901

1,214,815

23,958
11,939

23,557
*2,*16

35,623
13.275

79,881
51,407

727,090
408,636

1,135.726

23,175

12,602

26,5*7
*2,198

33,974
13,025

82,637
47,367

848,422
360,311

1.208,733

*0,237
23,715

22,420
12,594

27,362
*1,098

35,028
13,025

77.387
47,367

ev >,063
346,589

1,245,657

1

269,656
57,520

0,176
3M 3 5

93,376
37,506

44,043
3,731

*5,956
*,173

£7,628
*0,972

*1,732
22,215

21,456
12,586

30,467
40,992

36,665
12,938

71,380
41,992

913,699
325|71*

1,239 . 413

221,202
49 , 521 s

100,664
19,984

54,217
$>kf35

92,965

47,205
3,701

50,306
4,189

97,969
37,70*

39,298
21,709

21,340
12,104

28,884
39,943

35,596
12,864

79,498
36,803

871,596
295.U9

1,166,715

Samher

22. 1922
A ll othar earning aaaata
0 . 8. aa e u rltia a

93.416
19,244

t o f f c t f a . i> a
A ll f t k t r aarning aaaata
8* 0. e e e u ritle e

105,952
19,T25

193,397
58,9*3

1 76,1*2
29,635

108,897
26,685

49,4100

3.201

50,013
3,693

105, 386
39,953

*2,8*6
21,710

21,883
11,758

29,260
39.192

36,209*
13,164

89,437
36,802

909k322
304} 461

1,213,783

w a
aarning aaaata
0 . 8. e e o u ritle a

96,959
I f . 519

266,971
64,727

77,093
29,635

107,318
26,719

46,989
3,201

43,*22
4,074

11*,076
*2,761

*2,230
21,210

21, **5
11,593

32 , 12)8
39,197

37,472
12,864

85,569
36,302

971,772
311,802

1,283,574

A ll t(b » r • tn ia g u i t t i
U. 8. M « u rltl« «

91,506
18,860

235,106
63,316

73,083
29,135

115,184
26,709

51,164

42,079
3,195

96,706
*2,25*

*0,369

2,601

21,116

21,299
12,38*

31,747
39, 597

39 ,3 a
11,963

84,766
36,098

922,330
307,238

1,229.568

87,629
31.21*

183,581
128,468

75,351
35,3*3

109,805
30,233

53,094
4,601

43,670
3,209

93,958

41,*75
26,118

21,*31
13,107

34,668

63,828

42,092

40,437
11,939

82,187
41,098

867,286
*31,2*0

1,298,526

95,677
32,086

190,599
116,687

76, *55
*2,575

103,983
32,223

58,451

40, 247
2,673

99,862
79,389

42,810
31,117

21,079

8,601

1*,108

30,838
40, 886

37,597
11,*39

78,580
46,099

876,178
*57,883
1

f m w r ji
A ll other aandag aieata
V . 8. a e o u rltie a

75,287

40,806

237,380
121,369

69,953
3*,100

99.108
48,759

51,002
6,291

39, 348
9,3**

93,889
56,795

39,447
24,546

21,251
17,311

35,135
45,158

39,558
13,308

81,469
38,767

882,827
*56,55*

1,339,381

A ll o tte r earning aaaete
0 . 8. a a o u rltle e

58.138
38,696

205,576
146,479

59,648
39,600

75.163
45,765

43,581
9,291

32,398
9,**2

80,532
70,7*5

28,939
25,711

19,565
15,809

25,157
43,114

38,852
13*758

69,960
*9,766

737.809
508,174

1,245,985

aaaata

61,177
28,099

212,127
110,049

61,216
29,214

69,047
38,756

38, 6 a

28,905
2,167

70,838
65,90*

28,300
24,450

18,372
11.308

19,13*
*3,519

38 , 26*

5,841

68 , 579
40,76?

714,680
412,432

1,127.112

aaaata

67,609
29,178

248,707
96,850

66,777
29,391

70,285
26,33*

39,9*5
1,341

29, 620
2, *29

77,*19
*8,615

30,0 23
24.243

18,602
8,790

18,657
38,52*

38,082
12,358

68,356
34,766

774,282
352,819

1,127.101

A ll othar earning aaaete
V. 8. aa e u rltie a

66,193
29,069

279,649
79,069

78,575
29.18*

56 , 599
26,32*

38,59*
1,3*1

28,801
3,5*1

66,168
67,965

30.353
26,756

19,0*1
9,9*1

16,69*
38,521

38,111
7,258

67.039
34,764

785,817
353,735

1,139,552

19,301 *
5,196 -

6,883 33,636 -

4,966 3,360 -

13,573 1,640 -

17,598
32 , 400 ♦

6,847
22

5. *90 9,069 -

5,624
5,3*8 -

5,973 ♦
1.223

11,238
17,210 -

10*56* -

1 1 *79* -

21* 91* 4

18*
0

22* *7* -

25*12*

18* 4
14* -

14*
33* -

tiitirar
A ll o th

a.

g n w fttr
im
A ll othar earning aaaata
0 . 8. aa o u ritlaa

g « » r*. »a
ni« 7
A ll othar earning

aaeeta

0 . 8. aa eu rltiaa

i ll m t i.
—« other earning
i
T
A
9 . 8* a a e u rltia a

l f M L4c&2
lll Q2fearniag
l
J12
A other
0 8. aa o u ritlaa
.

S flu A M G I
A ll other earning aaaete
0 . 1. aa eu rltiaa
A ll other earning aaaete
8. aa e u rltia a

0
.

(

22,U 2 4 140 , 496 *
1,679 - 83,623 -

♦

50*
5* -

loo * 4
51* -

27,202

♦

33t
15* -

32*
31*

12.358

-

-

1,334,061

116,163 4
129,606

-

13,443

17* ♦
26* -

1*

Reproduced fro th Unclassified I Declassified Holdings of th National Archives
m e
e




SYNOPSIS OF 'J!:iTFX> STATE 3 S K C U R IflE S AS OOUPARKX) ’AlTH A l l OTHER I ARMINS ACSETS HEI.D E ? FEDERAL RESERVE TAJIKS
____________________________ ajtd R E rL ;:c T i::q t h e m e t o u k j e o r e a c h s u s s d u r im o th e p e r io d c o v er ed _______________________

Reproduced from the Unclassified I Declassified Holdings of the National Archives

STATEMENT SHOVING CHANGES IB GOLD AMD GOVERNMENT SECURITY HOLDINGS OF RESERVE BANKS
AS COMPARED WITH RECORD OF SOU) IMPORTS AND EXPORTS OF THE UNITED STATES
( In Millions )
Increase or
Gov*t Security
Pittman
Gold
Gold
Decrease of
Gold
Investments
Aot
Imports
Exports
Gold In
CertifiExcluding
Holdings
t e
D a
of U.S.
Pittman Act Ctfs.
of U.S.
Circulation
cates
in System
% 9 2 2

June

July

Aug.

Sept*

Oot.

Ho t *

Dee*

Jan*

17
24
51

5,005.1
5,007.7
5,007.6

7
14
21
28

5,010.1
5,007.8
5,020.0
5,020.9

5
12
19
26

5,020.7
5,055.8
5,045.5
5,054.5

2
9
16
25
SO

5,071.4
5,071.8
5,088.4
5,081.8
5,085.4

6
15
20
27

5,060.3
5,087.2
5,061.9
5,076.9

4
11
18
25

5,089.5
5,090.0
5,086.8
5,085.1

1
8
15
22
29

5,078.1
5,080.8
5,075.8
5,088.5
5,072.9

6
15
20
27

Max

5,045.8
5,081.2
5,045.9
5,040.4

5
10
17
24
51

5,049.5
5,082.7
5,077.5
5,080.1
5,075.8
T O T A L S

Monthly 9.0 Monthly 3.4

15.0

42.9

19.1

29.3

20.9

18.5

26.4

1.6

.6

.9

1.4

17.6

3.4

2.7

3.1 f

515.0
517.7
526.4

80.0
78.5
77.0

1.9 -

540.9
554.2
444.6
482.6

77.0
75.5
74.0
74.0

8.7 +

476.5
482.7 467.8
468.8

74.0
74.0
74.0
72.0
70.5
69.0
67.5

9.5 4
-

426.9
422.7
421.1
418.7
435.0

14.4 +

451.6
441.8
386.9
400.9

56.5
55.0
52.0
50.5

2.1 4

435.3
428.5
403.4
367.6

48.0
46.0
43.5
41.0

20.1 +

322.3
312.1
294.2
266.6
281.0

38.0
34.5
31.5
28.5
23.5
21.5
18.5
14.0

56.2 +

290.3
288.7
417.2
445.9
456.6
508.2
412.4
552.8
353.7

.0
.0

?2.0

6.0

19.4 -

200.9

57.6

66.0
63.0

12.0

92.6 +

* Estimated exports and imports for January are based on figures obtainable for N.Y.C




.0

.0
.0

E X P E N

3E8

Total Expeneee for Year
Ending December 31, 1922

8TATD1ENT OF ESTIMATED EARNINGS A D EXPENSES OF ALL FEDERAL RESERVE BANKS FOR THE YEAR 1923
N
_________ BASH) OH EXPENSES FOR 1922 A D BARKING A88PTB BW.n JiNOART 31. 1923_____________
N

Boston

Dividend Paid for Year
finding Dec, 31, 1922
Estimated Total Expenses
for 1923* including
Dividend_________ _____

Philadelphia

Cleveland

Richmond

Atlanta

Chicago

St. Louie

Minneapolis

Kan sag City

PallaB

San Francisco

TOTAL

t 2,022,400. I 6,776,530. » 2,053,919. » 2,461,266. » 1,631,356. I 1,293,053. t 4,080,057. I 1,623,222. | 1,084,942. *2,010,820. * 1,515,391. t 3,006,387. * 29,559»3*3

Less 10f Arbitrary Basis202.240.
To Give Estimated
fan.*... far 107-K

Hew York

677.653.

205.392.

246.127.

163.136.

129,305.

<06.007.

1*2.322.

108.49*.

$ 1,820,160. I 6,098,877. ♦ 1,848,527. * 2,215,139. I 1,468,220. I 1,163,746. # 3,672,050. I 1,460,900. ♦

487,000.

1.724,000*

560.000*

703.000*

337.000*

263,000*

891.000*

.
.
_ _
* 2.307.160. > 7.822.877. ♦ 2.408.527, ♦ 2.918.139. t 1,805.220. ♦ 1,426,748. ♦ 4.563.050.

290,000*

201.080.

151.539 .

300.639._________ 2,955,>3*

976,448. |1,809,740. t 1,363,852. * 2,705,748. I 26,603,409

_ 215*000*

277*000*

251.000*

465.00Q»

> 1.750.900. ♦ 1.191.448. t2t086A 74C. f 1,614,8*2. >

6.463.000

♦ 33>06jii£P

e a r n i n g s

Earning A ssets held by
(a )

A ll o t t e r ea rn in g *a sse ts #66,193,0G 0*# 279,649>
000* # 7 8 ,5 7 5 ,0 0 0 *

# 5 6 ,5 9 9 ,0 0 0 * # 38,594,000* # 28,801,000* # 66,168,000* #30f 353t000. I 1 9 ,0 4 1 ,0 0 0 *1 1 6 ,6 9 4 ,0 0 0 *# 3 8 ,1 1 1 ,0 0 0 * # 67,039,000* # 7 8 5 ,8 1 7 ,0 0 0

(b)

U. S. S e c u ritie s

2 6 .3 2 4 .0 0 0 *

TOTAL

2 9 .0 6 9 ,0 0 0 *

7 9 .0 6 9 .0 0 0 *

29.184»QQQ*

1 .3 4 1 ,0 0 0 *

3«5*1jOOO»

67,965>000*

26,756,0000

9 .9 * 1 .

00 28.521,000*
0•

7*258lOOO*

g4y7 66 100C« ,3?3i73ii2P P *

#95 , 262, 000 *# 358 f 7 l 8 , 000n#X0 7 , 759 , 000* # 8 2 ,9 2 3 ,0 0 0 * #39,935,000# # 3 2 ,3 * 2 ,000*#13*, 133,000* #57»109,000* # 2 8 ,9 8 2 ,0 0 0 * # 5 5 » 2 1 5 ,0 0 0 * # 4 5 ,3 6 9 ,0 c 0 * # l0 l,8 c 5 ,0 0 0 .# l,1 3 9 ,5 5 2 ,0 0 0

Earnings Which Present
P roduce *during 1923*

3,810.480.

14.348.720.

4.310.360.

3.316.920.

Balance of Earnings A fte r
Expenses are Paid
% 1,503,320. I 6,525,843. % 1,901,833. •
D e f ic it A fte r Expenses
«re Paid




1.597.400.

1,293i6SO.

.

♦
.

207,820.

2,284,360.

_

398,781.

♦

5.365,320.

%

1.159,260.

.
. .
533,460.

802,270. I

t

_
133,068.

*

32,168.

2 ,208 ^ 00 .

121,860.

1,81^7.60.---*^22*200.---tfjgg^OgO.

A
199,908.f

901,452. * 12,5j5,6Tl.

Reproduced fro th Unclassified I Declassified Holdings of th National Archives
m e
e

EXHIBIT T

E X H IB IT

»C "

POROUSES A D 8AUS OF CERTIFICATES o r IHPgBTEDCTBS
M
BT FEDERAL RESERVE BAMS
AFTKCHHQ THEIR IMVESTKEHTS - JAKUAKT 24 to FEBRDAKT 2 .

Bank

Purchases

Issue

t 5
,oco,ooo.

N York
ew

4%

Sal 68

December 15, 1923 Certificates (from market)

t

5,000,000.
10,000,000.
10,000,000*

5 ooo,ooo«
,

5 , 000, 000.
5 , 000 , 000.
10, , *
000 000

Cleveland

, , .

Atlanta

1 000 000

Chi cago

2 000 000

,

, .

3 ,000 ,000.
5 .000 ,000.
5 ,000 , 000.
10 ,000 ,000.

3 j March

1 5, 1923 Certificates ( from market

3 ^ June
1 5 , 1923 Certificates (
3^> September 1 5 ,1 9 2 3
"
(
4% December 1 5 , 1923
"
(
4%
«
1 5 , 1923
•
(
3» June
1 5 , 1923
•
(

from Dallas
"

"

Dallas

5 , 000 , 000.

4%

December 1 5 , 1923 C ertificates ( pending




t

to
to
to
to

market )
Treasury )
Chicago )
Chicago )

)
)
)

" Treasury )
* N York )
ew
* *
* )

December 1 5 , 1923 Certificates ( from market

N O T !

(
(
(
(

1 5 , 1923 C ertificates ( fro * Treasury )
December 1 5 , 1923
"
(
*
m )
Short-term Certificates
( pending
)

4%

5 , 5 50 0
8 1, 0.

March 15, 1923 Certificates
March 15, 1923
"
3?^ June 15, 1923
"
4% December 15, 1923
"

4%

2 5 50 0
, 1, 0.

I

Issue

3 ^ June

St* Louis

T o t a l s

IHCUJSIVE

)
2,000,000*

3, 000, oco*
I 35,000,000*

I t will be noted that the majority of the above transactions
have been executed within the system*

June
1 5 , 1923 Certificates ( to Chicago )
September 15, 1923
■
( "
■ )

Reproduced from the Unclassified I Declassified Holdings of the National Archives

TRANSACTIONS I N GOVERNMENT SECURITIES FOR ACCOUNT OF THE TREASURY DEPARTMENT
.
AND FEDERAL RESERVE BANKS ALSO' DATA REGARDING MARKET CONDITION'S
FROM CLOSE OF BUSINESS JANUARY 24, 1923, TO CLOSE OF BUSINESS JANUARY 31, 1923,
AS REPORTED TO THE COMMITTEE OF GOVERNORS ON CENTRALIZED EXECUTION'
OF PURCHASES AND GALES OF GOVERNMENT SECURITIES BY FEDERAL RE SIEVE. BANKS____

Operations Account Treasury Department
There were no orders executed through tho C r i . i tee for account
o.rit
of the Treasury Department during this period.
Miscellaneous Of d,ers '
At the request of the Treasury Department the Federal Reserve
Bank of New York purchased on the Stock Exchange $320,900 face amount of
4 l/4^> Treasury Bonds of 1947/52 for account of the Government Life
Insurance Fund.
For account of various Federal Land Banks, the following Treas*
ury notes were sold in New York during the period:
250 ,000 4 3/4^ Treas. notes due March 15, 1925, © 100 5/l6
250.000 4 3/4^ Treas, notes due March 15, 1925, Q 100 5/l6 plus l/32
$500 ,000"
Transactions by Federal Reserve Banks for Their Own Accounts and Data
____ Regarding Government. Security-Conditions in Their Districts_______ _
Boston

The period closed with all issues of bonds at lower prices.
Brokers reported an increase of selling by commercial banks and also
state that there has been but a small public demand,
During the week
Treasury notes and certificates of indebtedness were fairly steady but
not active, the supply exceeding the demand.
Government sucur it ies .held
under repurchase agreements amounted to $1,640,150 at the close of this
period.
There were no investment account transactions.

New York

The volume of business in investment securities on the Stock
Exchange haa fallen off during this period, in which the interest of the
investors seemed to have slackened in the Stock market as well as in
bonds*
Municipals and First 3 l/2s still enjoy a fairly active demand,
receiving impetus from the tax exemption buyers.
Liberty bonds were in­
active and declined during the period 250 per $100 for an average of six
issues.
The call money market has been firm, the prevailing rate being
at 4 l/2%.
Treasury certificates of indebtedness and notes were more
active, but without change in prices.
Loans to dealers in Government
securities under Sales Contract agreements amounted to § 22,919,900 at
5
the clone of this period.
Investment account transactions were as follows:
PURCHASES
& 5,000,000 December 4
f>

certificates g 100 from dealers,

SALES



$ 5,000,000 December 4^
certificates @ 100 to Chicago
10.000,000 June
3 3/4%
"
" 100 ”
M
■$15,000,000

Reproduced from the Unclassified I Declassified Holdings of the National Archives

- 2

Philadelphia

The market for Liberty bonds has been very quiet, with
prices reactionary, there being little or no demand for bonus.
The
rather heavy withdrawals by the Government had a tendency, tempor­
arily, to create a firmness in the money market, which was .reflected
in the somewhat sluggish condition of Liberty Bonds.
Price re­
cessions f t the close of each day resulted in a lower level of prices
i
at the end of this period.
The rather heavy selling of the Second
4 l/4s and the sharp advance of the tax free 3 l/2s were the out­
standing features.
The new Treasury notes of 1927 are quoted at
100 to 100 l/l6, which shows a yield practically the same as the
Third 4 l/4s , with purchases rather favoring the latter as they are
selling at a discount.
The market in Treasury certificates and notes
was more active with a slight increase in the demand for all issues
of notes.
Investment account transactions were as follows:
PUP.CHASES
| 53,300 4 l/zi Treasury notes, due December 15, 1927, @ 100
SALES
|>236,400 4 l/2# Treasury notes, due December 15, 1927, ® 100
" June
15, 1925, @ 100
25,000 "
$261,400

Cleveland

The market in Government securities was described by one
dealer as follows:
"The demand from investors for Libertys in this
district has not abated.
The market, however, shows some weakness
with an apparent downward tendency.
The amount of bonds sold during
the period in this district is comparatively small.
Local dealers
are compelled to fill orders by buying in New York."
Transactions affecting the investment account were as
follows:
¥

PUR O A S E S
,
.
~$
500 March 4 l/4$ certificates @ 100 (from Frisco agent)
SALES
$10,000 March 4 l,/4# certificates @ 100 to members

The Reserve Bank of Richmond sold for account of members
$13,650 face amount of bonds and purchased $4,800 for them during
the period.
Brokers in Government securities report that there
have been no particular developments in the market during the
past week.
There were no transactions affecting the investment account.

Atlanta




The market conditions in this district appear to be un­
changed as compared with the preceding week.
The demand for Second,
Third and Fourth Liberty Loan bonds continues good, with very few
offered for sale.
Of the Treasury notes the new 4 l/2,% issue due
December 15, 1927, appears to be the most attractive to the small
investors.
Investment account transactions were as follows:

Reproduced from the Unclassified I Declassified Holdings of the National Archives

- 3 -

Atlanta
( continued)

PURCHASES
$
5 0 ,60C
215,000

1.000 ,000

4 1/2% Treasury notes, due December 15, 1927
*
»
«
»
»
" June
15, 1925
Me.rch
3 1/2*; certificates

Ol,?~73,600

Chicago

The market for Government securities continues very dull
r»ith further recession in prices of all issues of Libertys except
the First 3 l/2s .
The December 4% certificates of indebtedness
are offered in large amounts at par less l/32*
There has been no
change in Treasury notes during the period*
Advances to dealers
in C-overnment securities amounted to $741,000*
Transactions affecting the investment account were a c
f
follows:
PURCHASES
$
25,000

2,000 ,000
10 ,000,000
5.000.000
3.000.000
$20 ,025,000
SALES
§■ 159,500
108,000
|
267,500

St * Louis




4 l/2/. Treasury notes, due December 15, 192,7 © 100
3 3/4/o certificates © 100 from Dellas
June
it
Nerr York
100
New York
100
7
December 4 ,
Dellas
100
September 3 3 45
/ 9;

4 1/2$ Treasury notes, due December 15, 1927 © 100
«
«
"
« June
15, 1925 © 100

prices in Government securities in this market have been
steady and business has been quiet*
Transactions affecting the investment account v»ere as
felloes:
PURCHASES
.0
579,000
500 ,0^0
1*750,000
250 ,000
15,000
40 ,000
218,900
700
$3,353,600

4 l/2/£ Treasury notes, due June
15, 1925 © 100
December 4f, certificates © 100 less l/64
© 100
M 1/32
M 100
” 1/16
.«

100

" 100
March 3 1/2^
"
4 l/2$ Treasury notes, due December 15, 1927 @ 100
4 l/4fo
M
bonds of 1947/52 © 100

SALES

6

515,700
52 ,000
700
272,400
840,800

4 l/2f^ Treasury notes, due June
15, 1925 © 100
December 4$ certificates © 100
4 1/4$ Treasury bonds of 1947/52
4 1/ 2%
w
notes, due December 15, 1927 © 100

Reproduced from the Unclassified I Declassified Holdings of the National Archives

- 4 ~

Minneapolis

T*here h^s been a very pood demand for short time Ooveinment
securities durinp the prst ™eek. The small country banks are
r rcBcred interest in Liberty Bonds, Treasury Notes t,nd treasury certi.
ficates» Local Government bond dealers say that their demand hes
feller- c-ff a little from the previous week.
.
Transactions affecting the investment account are as follows:
PURCHASES
$
3 V ,000
5.000
35.000
1.300
231,000
1,107,800
75.100
450
501,350
2,150
607,600
$2,603,750

December
4^ certificates
March
3 l/c%
”
w
^
_ n
Treasury notes, Series B-1926
"
"
”
C-1925
n
”
w
A-1927
4 l/4% Treasury bonds of 1947/52
First Liberty Loan Bonds
Second
"
n
”
Third
"
”
w
Fourth
”
w

SALES
$

37,000 December
4^ certificates
5.000 March
3 l/2$
"
1.300 Treasury notes,
Series B-1926
pen rnn
w
”
w
C-1925
i W O
•
•
"
A-1927
75.100 4 1/ 4 , Treasury bonds of 1947/5?
/

$1,456,200

Kansas City

Local brokers report that the same condition has prevailed
* for the last two months, namely a lerperdemand for all issues of
ls
Libertv bonds than the supply* They also report a few sales of
Treasury bonds of 1947^52 and some inquiry for the last two issues
of 4 1/2$ Treasury notes*
Investment account transactions were as follows:
SALES
$

Dallas

2,000

The market has continued inactive in Government securities♦
Investment account transactions were as follows:
SALES
£2,000*000
3,000,000
100.000
$5,100,000

San Francisco




4 l/2^. Treasury notes, due December 15, 1927

,
June
3 3/4/0 certificates Q 100 to Chicago
September 3 3/4£
«
* ICO
•
"
2% Consols of 1930

The market in Government securities has been quiet during
this period*
There T^ere no investment account transactions*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

C O P Y
CONFIDENTIAL

A meeting of the Committee of Governors on Centralized Control of Pur­
chases and Sales of Government Securities by Federal Reserve Banks was held at
the Federal Reserve Bank of New York at 12 noon this day.
PRESENT:
Governor Strong,
Governor Morss,
Governor BtfcDougal,
Deputy Governor Sailer,
W. B. Matteson,
D. H. Barrows acted

August 1, 1922
Maturity of
Certificates of
Indebtedness

Reports and
Statements

Federal Reserve Bank of New York - Chairman
Federal Reserve Bank of Boston
Federal Reserve Bank of Chicago
Federal Reserve Bank of New York
Secretary of the Committee
as secretary of the meeting

Governor Strong reported that Under Secretary of the
Treasury Gilbert had written him expressing the hope that any
certificates of this maturity held by the Federal reserve banks
would be allowed to run off~
Governor McDougal stated that he
had received a letter of similar purport from the Federal Reserve
Board, which letter had been sent to all of the Federal reserve
banks.
After discussion it was voted that the Committee authorize
Governor Strong to write Mr. Gilbert referring to his letter to
Governor Strong in this regard and to say to Mr. Gilbert that it
was reported to this meeting that the Federal Reserve 3oard had
sent out a similar communication on this subject to all the Federal
reserve banks; that representatives of New York, Chicago and Boston
present at this meeting had arranged to let the certificates of
indebtedness of August 1 maturity, held by the respective banks,
run off; and that it was the opinion of the members of the Com­
mittee present that the other Federal reserve banks having sub­
stantial holdings of the August 1 maturity would, no doubt, follow
a similar course to meet the Treasury's wishes.
The following reports and statements submitted by the
Secretary of the Committee were examined and discussed:
Comparative Statement of Holdings of Government
Securities by Federal Reserve Banks Showing Changes
Between May 16, 1922 and June 30, 1922.
Net Earnings of Federal Reserve 3anks for Six Months
Ending June 30, 1922.
Government Securities Held by Federal Reserve Banks
at Close of Business June 30, 1922.
Estimated Statement of Earnings and Expenses by
Federal Reserve Banks for the Year 1922.




A ttu -

7/ * ' /

X z

3 3 3 .-

Reproduced from the Unclassified I Declassified Holdings of the National Archives

— 2

Holdings of
Government
Securities




With regard to the statement showing reduction in the
Federal Reserve Banks' holdings of all Government securities of
about $55,000,000. between May 16, 1922, the date of the formation
of the Committee, and June 30, 1922, Governor Strong inquired in­
formally of the members of the Committee present their views re­
specting a further reduction of investments in Government securi­
ties held by Federal reserve banks whose estimated earnings were in
excess of their requirements.
The members of the Committee were of
the opinion that the Governor of each Federal, reserve bank had no
doubt presented the policy adopted at the Governors’ Conference in
the foregoing regard to his own directors for approval and that they
would be guided accordingly.
After a short recess for lunch the activities of the Com­
mittee were generally discussed and the meeting adjourned at 3 p. m»
(Signed)

H, Barrows,
Secretary of the Meeting. .

Reproduced from the Unclassified I Declassified Holdings of the National Archives

A
3 . 3 ."
*3

May 16, 1922.
A meeting of the Committee of Governors on Centralized Control of

? ^'"1
~

^

Purchases and -Sales of Government Securities by Federal Reserve Banks, appointed
by the last Conference of Governors, was held at the Federal Reserve Bank of
New iork at 10:30 o’clock a. m. this day.
Present:
Governor Morss, Federal Reserve Bank of Boston,1'"
"'
Governor Norris, Federal Reserve Bank of Philadelphia,
Deputy Governor McKay, Federal Reserve Bank of C h i c a g o , ^
Deputy Governor Case; Federal Reserve Bank of New York^and
Deputy Governor Harrison, Fed._Res. Bank of N. Y. , Secretary,
1.

Upon motion of Governor Norris, it was yoted that Governor Strong

be made permanent chairman of the committee.
2.

Upon motion of Governor Norris,

/

f
it was voted that Mr. Case,

in the

absence of Governor Strong, act as chairman of the meeting,
3.

It was voted that Mr. Harrison act as secretary of the meeting.

4.

Upon motion of Governor Morss,

it was voted that the Chairman be

authorized in behali of The committee to designate or employ a permanent Secretary
of the committee whc shall be the active operating man to handle the various opera­
tions of the committee subject to the orders of the committee through its Chairman.
It was understood that the salary of the secretary would be apportioned among the
several Federal Reserve Banks in proportion to their capital and surplus,
5.

After general discussion of the present conditions under which Fed­

eral Reserve Banks are making their purchases and sales of Government securities, and
after due consideration of the action of the Governors1 Conference in requesting the
committee to work out a program for the orderly handling of the buying and selling
of Government securities by Federal Reserve Banks through some centralized control,
it was voted that the committee of Governors appointed by the conference,

composed

of the Governors of the Federal Reserve Banks of Boston, Philadelphia, Chicago and
New York, be made a standing committee with power to effect its own organization and
to devise its own procedure, with its operating office at the F e d e r a l Reserve Bank
of New York; that all orders to buy and sell any Government securities for a cc o u n t




s / x s j x

\/

1
•

1}
-2 -

of any Federal Reserve Bank shall be placed thr

this committee; that this com­

mittee shall execute all such orders in accordance with its beat judgment and shall
distribute such orders among the different markets as circumstances may prompt;
that in order to give the committee the benefit of the knowledge of conditions
prevailing in the several local markets, and in order so far as possible to preserve
th ose markets, each Federal Reserve Bank placing an order with the committee shall
call to its attention any factors of importance in its own Or other local markets
that may be of interest or value to the committee^ and may, if it desires, suggest
that the committee place the o^dei* in any Siich local market if in the opinion of the
committee such action is warranted'; that ail orders for a particular security
executed by the committee shall be pr6*£at&d among all banks having orders for that
security outstanding With the committee, but the committee may use its discretion
in determining whethei4 orders of small amounts shall or shall not be so pro-rated;
that the committed shall carry on its operations for the benefit of all banks alike
and through such agencies and markets and in such manner as it may determine in its
discretion to be for the best interests of the Reserve banks as a whole; and that
although the committee will give its best efforts to promote its successful function­
ing, it will not be responsible for errors or losses resulting through its opera­
tions.
6.

It was the sense of the conference that in order to permit Federal Re­

serve Banks to stay out of the market for any security for which the Treasury is i .
r
the market, as agreed at the last Conference of Governors, the Treasury should give
to each Reserve Bank, through the Committee, notice when it is in the market for the
purchase or sale of Government securities, and similar notice when its orders have
been executed.
this notice.
7.

The Committee shall promptly advise each Federal Reserve Bank of
(See paragraph 64b of the Conference Minutes).
Upon motion of Governor Morss,

it was voted that all Federal Reserve

Banks be requested to file with the committee copies of the estimates of expenses and
earnings prepared in accordance with the vote of the Conference of Governors held in
Washington May 2-4,



1922 (see paragraph 64 of the Conference Minutes); and that each

Pthe National Archives

bank a l s o be requested to f u r n i s h to t h e committee a d e t a i l e d statement ox xl.e
axoivit and c h a r a c t e r c f e l l Government s e c u r i t i e s now held in i t s investmen ts.
8,

I t was i n f o r m a l l y understood t h a t th e Committee should have power iro^.

time t o time t o rerise i t s procedure.
9.

I t v:as understood t h a t t h e Committee w i l l be expected to ad vi se

a l l F e d e r a l Reserve Banks c u r r e n t l y of i t s opera xi ons and of any oth er f a c t s con­
c e r n i n g g e ne r a l market c o n d i t i o n s which may be of advantage t c them in determining
t h e i r own investment p o l i c i e s w i t h i n t h e scope of th e recommendations made a t th e
Conference of Governors in Hay,

1922.

Furthermore,

i t was understood t h a t ,

f u l l y to c a r r y out t h e purposes f o r which t h e committee i s c r e a t e d ,

in order

i t would be ex­

pe c te d from time t o time t o make recommendations or s u g ge st io ns t o t h e s e v e r a l
f e d e r a l Reserve Banks conce rni ng t h e i r Government s e c u r i t y investment p o l i c y ,

ix

such recommendations or s u g ge st io ns may seem to be d e s i r a b l e .
10.

I - was agreed t h a t a l l communications to th e committee should be ad­
t

dr es sed to t h e Governor c f t h e F e d e r a l Reserve Bank of i'iew York pending t h e appoint­
ment of a permanent S e c r e t a r y ,

and t h a t t h e r e a f t e r r o u t i n e communications t o t n e

committee be addressed to t h e S e c r e t a r y ,

and communications r e l a t i v e t o g e ne ra l

q u e s t i o n s of p o l i c y t o t h e Governor of th e F e d e r a l Reserve Bank of wew
11.

Upon motion of Governor N o rr i s,

Y o tk.

i t was voted t h a t a l l r e d e r a l r e ­

serv e Banks s h a l l op er ate through t h e committee as soon as n o t i f i e d by th e Chairman
that i t

i s prepared t o f u n c t i o n .
12.

Upon motion,

i t was voted t h a t t h e committee adjou rn t o meet again .

upon c a l l by t h e Chairman.

Acting Secretary,

‘GLH.mSB