The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
s. s. _ • -1-50M-3-23
FEDERAL RESERVE BANK
OF
OFFICE
TO
NEW Y O R K
CORRESPONDENCE
____ _____
d a t e _______
S U B J E C T :____________
Dmcm&mr I,_________ 19 2 3
_________
_________________________
Fro m .
AttaoM hwwwitii m m reports m d data mm i&llvm 1
I.
R•port of S««r*tary# with
sbovlag tra*«*«tiewi
Is teaior*
Ilii JtoXjr 3 t© mvrnkrnr
U 9 1923, and m n * * r*por% »ubaiIttod to « m r »
a m * Coafwrau*, W»wm%mr If,
t«
Rap©rt «i fareifi toit o w .
3*
S*ta «b Gaaolttaa aeration# aad n m m m m i m t i m m a* t®
futura poliiy If » * <**••* with t a M a ataaatag
ahaagaa la m m j r*ta«» tomk laaaa, priaa« and
: gal* ifiiporis •toe# January 1, *32*.
4.
‘
w>
m i w i w s Condition* by nr.
»f tl*
B m I«*k BmOl, with «lKwrt •hawing m m k i M
pttpilC* va&aa*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
j
D*©«niber 4, 1925
x m v Q & r*m & r Hardingi
t ftn »«n<ling yoti h*r«wlth your oopy of
th« roport of thft OpgnSfarteai lnv»«tm«nt CQwaitf*,
which you U t t m tha Board Boom tabia*
; / ' W 3
Vary truly yourt.
waltar I** Eddy,
Secretary*
Mr* W* P* 0, Harding* Governor,
Fedaral »•##**• B*nkt
Bo#ton, Sfeift*
(%olo»ur»«)
P ro d u c e d from the Unclassified I Declassified Holdings of the National Archives
Reproduced from the Unclassified I Declassified Holdings of the National Archives
3 1
-~ tr'^
copy
FEDERAL RESERVE BANK
OF NEW YORK
December 12, 1925
Dear Mr. Eddy:
Referring to your letter of December 3, 1923
addressed to Governor Strong as Chairman of the Open Market
Investment Committee, and Governor Strong’ s reply of the
same date, I am now enclosing copy of letter written today
by the Chairman of the Committee to the various Federal
reserve banks, which letter is accompanied by a copy of the
resolution of the Federal Reserve Board dated DecembegJi ^
192S,i
j 5^3/3 3
3
I am also enclosing copy of the minutesi of the
meeting held in Washington on December 5.
fa**
j
Very truly yours,
(Signed)
b.
Matteson
W. B. Matteson
Secretary, Open Market Investment
Committee for the Federal Reserve
System
Mr. Walter L. Eddy,
Secretary, Federal Reserve Board,
Washington, D. C.
Ends.
3 ^ 3 . -~ i - 1
6 - t U . f t *
A
33•*^
Reproduced from the Unclassified I Declassified Holdings of the National Archives
1
December 14# 1923*
Dear *?r. H a t t a ^
ladgad of your
Kaeei
let tar of th* 3#th instants enclosing a copy
Of Ike ismates Tof
of th* Board
on DeoeiSSFlrd with tha Opon i'arket Xrrreat*
ment OawBtlttss for the Federal Besarve System,
together with oopy of a latter addreased by
the Chairman of the Oonmittee to the various
Federal Heaerre banks, transmitting a eopy
of tha resolution adopted by the Board fol
lowing tha naatin#*
fery truly yonra,
waiter I** M d y v
Secretary*
Mr*
W* B* lottason, Secretary,
Open lariat Iweatment Ooimrlttee,
o/o Federal Keserre Bank,
taw forlt ir* Y*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
END
KIND OF MATERIAL OR NUMBER
NAME OR SUBJECT
333.-^-2
Open Market Investment Committee
Meetings
Open Market Operations^
DATES ( I n c l u s i v e )
1923
PART NUMBER
Part 1
SHEET
Reproduced from the Unclassified I Declassified Holdings of the National Archives
GEOT MARKET mVESTMEKT QOVM m m
FOB m
FEDERAL RESERVE SYSTEM
Decembar 3 f X923
Meeting held in YasMngtoe, P. C»
Reproduced from the Unclassified I Declassified Holdings of the National Archives
F
REPORT OF THE SECRETARY OF THE OPEN MARKET INVESTIiHNT
COMMITTEE FOR THE FEDERAL RESERVE SYSTEM TO THE MEET
ING OF THE COMMITTEE AT WASHIN (/TON, DECEMBER 3, 1923.
Government Securities
The situation with regard to the holdings o f Government securities by the
Federal reserve banks is p ra c tic a lly unchanged since the last report which contained
statements o f holdings up to October 17, 1923.
The policy adopted by the Committee
with reference to holdings o f Government securities by the System is being continued.
The Government security holdings o f ths banks at ihe close o f business November 21,
1923, were as follow s, as compared with those on October 17, 1923:
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTALS
*
Balance
Nov. 21
Balance
Oct. 17
*$ 3,560
1,149
12,405
10,763
1,341
253
6,258
0
7, 365
6,780
6,279
9.185
*#3, 560
1,149
17,408
10,346
1,341
241
6,2 58
0
7,387
8,567
8,779
9.185
$65,338
$74,221
Net
Change
*
0
0
5,00 3417*
0
12+
0
-0 •
221,787—
2, 500-0^3,883 ■—
(000 Omitted)
Bankers Acceptances
The distribution throughout the System of b i l l s purchased by the Federal
reserve banks since the last meetin? has resulted in an increase of $75,962,000.
in the holdings o f the System as a whole, from
0237,176,0 00 on November 21, 1923.
161,214,000 on October 17 to
These changes in d e ta il are as follows:
Reproduced from the Unclassified I Declassified Holdings of the National Archives
STATEMENT SHOWING PURCHASES, SALES,
ALLOTMENTS AND MATURITIES OF BANKERS ACCEPTANCES
BY FEDERAL RESERVE BANKS
FROM JULY 3 TO NOVEMBER 21. 1923. (INCLUSIVE)
Boston
♦Baler.ee June 27, 1923
Philadelphia
Cleveland
Richmond
* 20,745,000
$19,513,000
* 27,591,000
*1,778,000
Purchases Own District
31,002,000 **30 4,404,213
66,135,000
2,980,26S
4, 221,55r‘
Purchases Other Districts
* Allotments by N*Y. Bank
10,039,561
12,821,401
*55,158,581
*337,970,614
*85,646,000
31,201,988
11,000,94-5
67,277,469
47,424,300
a g g r e g a t e
Lc-rfc: Sales From Portfolio
Le?s Maturities
**Lese
Allotments by N*Y, tc Other
Federal Reserve Banks
♦Balance Nov. 21, 1923
♦Excluding Sclee Contracts
114,067,000
New York
-c29,078,000
-0*26,080,581
191.279.614
$ 48,211,5«
-0-
71,389,332
*101,960,595
-073,030,333
-0-
-0-
*27,222,755
*28,930,262
-0-
*5,999,850
-03,676,516
-0*2,323,334
Atlanta
Chicago
St* Louis
Minneapolis
-0-
9, 602,000
t 40,897,000
*7,061,000
26, 604,124
20,65^,000
68,000
5,459,858
65,984,000
-0-
*41,665.982
*127,538,000
-0-
*
Kansas City
*
51,000
26,000
Dallas
San
Francisco
Total
*12,638,000 *18,893,000 *172,811,000
241,987
251,749
10,298,000
466,935,186
-0-
2,012,343
57,201,434
23,362,000
248,319,949
*7,129,000
*51,000
*2,280,330
- 0-
-0-
90,157,000
7,107,000
-0-
-0-
-C-
-0-
-0-
*10,406,563
*37,361,000
6,081,293
25,178,106
*
22,000
*51,000
-01,570,049
-0*
710,281
*70,091,183 *52,553,000 1888,046,135
6,740,108
22,466,171
-C-
-037,601,000
-0-
55,024,334
404,565,944
191.279.614
*40,384,904 *14,9 52,000 *237,176,24c
Reproduced from the Unclassified I Declassified Holdings of the National Archives
RECAPITULATION OF PURCHASES, SALES, ALLOXENTS AND MATURITIES OF BANKERS ACCEPTANCES
BY FEDERAL RESERVE BANKS FROM JULY 3 TO NOVEMBER 21, 192? INCLUSIVE_____________
Reproduced from the Unclassified I Declassified Holdings of the National Archives
BOSTON
Purchases
Week
July
Own
District
3 1923
Other
Districts
Sales and
Allotments
Maturities
Balance
Exclusive
of Sales
Contracts
$1 ,565 ,000
-
-
$ 976,000
4 14,648,000
11
1923
1 ,639 ,000
-
-
2 ,466 ,000
13,821,000
11
18
1923
616 ,000
-
-
2 ,352,000
; i2 ,085 ,000
m
25
1923
2 ,629 ,000
-
-
1,142 ,000
13,572,000
1
1923
794,000
-
-
2 ,054,000
12,312 ,000
8
1923
391,000
-
-
1,115,000
11,588,000
ii
15
1923
234,000
-
-
1 ,733,000
10,089,000
tt
22
1923
497,000
-
-
1,777,000
8 ,809 ,000
29
1923
1,746 ,000
-
-
2 ,441,000
8,114,000
Sept . 5 1923
1,180 ,000
**
-
1,289 ,000
8 ,005,000
ti
Aug .
r»
m
it
rt
ft
•
-P
o
o
12
1923
861,000
-
-
1,329 ,000
7,537,000
19
1923
682,000
-
-
1,556,000
6,663,000
26
1923
1 ,552 ,000
-
-
1,832 ,000
6,392,000
3 1923
628,000
-
-
695,000
6,325,000
574,000
6,690,000
10
1923
939 ,000
-
(I
17
1923
2 ,295 ,000
-
-
841,000
8 ,144,000
IT
24
1923
1,243 ,000
-
-
739 ,000
8,648,000
tt
31
1923
1,611,000
-
-
942 ,000
9 ,317,000
7 1923
2,946,000
-
850 ,000
21,502,000
-
734 ,000
26,391,000
1.641 .000
26 ,081,000
n
Nov
(10,089,581*
N .V .Portfolio)
)
(
»»
14
1923
5 ,623 ,000
n
21
1923
1,331.000
TOTALS
*
|
31,002 ,000
Sale froin portfolio
-
|10,089 ,581*
129 ,078 ,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
O
— C
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicags
St, Louis
Minneapolis
Kansas City
Da lias
San Francisco
Balance
Oct. 17
* $ 26,081
48,212
27,222
28,930
2,323
10,407
37,381
22
51
710
40,88 5
14.952
* $ 3,144
19 ,156
20 ,424
24, 508
1,141
5,452
40,479
7
51
2,199
29,214
10.439
*$17,937+
29,0 56+
6,798+
4; 422+
1 ,182«4,9 55+
3,09815+
0
1,48911,671+
4,513+
.*>237,176
$161,214
$75,962+
TOT AL S
*
Net
Change
Balance
Nov. 21
(000 Omitted)
There is also attached a statement showing transactions of a l l Federal reserve banks
in bankers acceptances weekly during the period from July 3, 19 23, to November 21,
1923%
The non-participation of some o f the banks in such purchases has necessitated,
heavy increases in the p o rtfo lio s o f the remaining banks.
It is important that
we gradually extend the a llo t t in g o f b i l l s to a l l the reserve banks so that d is trib u
tion w ill be made from the stsjidpoint o f a System p olicy and o f rendering the support
o f the entire System to the b i l l market (as and when conditions warrant) rather than
from the standpoint o f earn in e? or other conditions.
In order that this may be
accomplished, the secretary suggests that the committee redistribute the b i l l s pur
chased to a l l Hhe reserve banks, with the understanding that such participation
by
any ?,• f the banks may be discontinued in the discretion o f the committee at times
when the banks' reserve position or any other controlling reason makes i t im practi-
*
cable for them to continue .
Attached for reference is a copy o f the secretary’ s report as o f the
close of business October 17, 1923,
Respectfully submitted,
(Signed) W* B. Matteson
Secretary,
Reproduced from the Unclassified / Declassified Holdings of the National Archives
NEW
YORK
Sales and
Allotments
Maturities
Balanc e
Exclusive
o f Sales
Contracts
$2 ,314,590
$ 7,164,865
019 ,741 ,000
3,351 ,475
8,758,799
1,338 ,982*
( F .R JB .Chicago)
22 ,690,000
Purchases
We ek
Own
District
Ending
Other
Districts
3, 1923
$8 ,475,590
H , 1923
15,384,854
1 ,012 ,945
( F .R .B .Dallas)
18, 192 3
14,306,575
2 ,500,163
( F -R .B -Dallas)
4,032,121
27,569,000
25, 1923
11 ,592 ,215
4,807,675
3,227,000
5,016,560*
( F il ,B .D allas)! F.R JB -Cleveland
6 ,996 ?215
25,567,000
1, 1923
16,592,704
-
14,461,704
5,183,000
22,515,000
8, 1923
9 ,526 ,096
-
7 ,241 ,096
4,147 ,113
20,652,000
»
1 5, 1923
9 ,511,066
.
8,722,066
4,013,705
17,427,000
«
22 , 1923
9 ,302,506
1,000,484*
2 ,253 ,729
14,454,000
July
t»
n
n
Aug .
-
7 ,89 5,738
( F .R ,B .Kan .City)
9 ,021,506
29 , 1923
10 ,581,138
-
6 ,863,138
1 ,882 ,205
16 ,290,000
Sept • 5, 1923
7,059,500
-
4,088,500
1 ,853,875
17 ,407 ,000
6 ,048,503*
1 ,857,323
13 ,886 ,000
1,091,356
10,261,000
3 ,061 ,184
9 ,106,000
h
12, 1923
15,352 ,689
(F J l £ .Dallas)
10,968 ,689
tt
19, 1923
10,361,977
6,034,828*
( F .R .B -Dallas)
6 ,860,977
w
26, 1923
12 ,846 ,370
1,301,076*
( F -R .B .Dallas)
9 ,639,370
3, 1923
10,519 ,982
-
8,574,982
3,708 ,264
7,343,000
10, 1923
17 ,137,162
-
11,164,162
1,291,844
12,024,000
17, 1923
13 ,249 ,110
9 ,464,432
1 ,748,091
19 ,156 ,000
u ■24, 1923
12 ,701,819
-
11,453 ,819
1 ,703,453
18 ,701 ,000
«
31, 1923
17,526,044
-
10,719,044
1,934,844
23,573,000
1923
22 ,636,096
2 ,209 ,118
26,9 39 ,000
Oct .
M
*»
Nov .
5,095,322
( F -R 3 .Atlanta)
, „ 985,971 w 10.089.581*
( F „R .33 .Atlanta) ( F JRJB .Boston)
371.974*
( F il ,B A tlan ta)
7,585,067
»»
it
14, 1923
21 , 1923
TOTALS
* Sale frcm
26 ,551 ,428
-
15,851,428
4,216,904
33,422,000
33 ,189 ,292
-
12 .634,292
5 ,765,325
48,212,000
0 12,821,401
$191,279,614
31 ,201,988*
$304,404,213
portfolio
$67,277,469
Reproduced from the Unclassified I Declassified Holdings of the National Archives
P H I L A D E L P H I A
Purchases
Week
Ending
Own
D istrict
Sales and
Other
Di strict s Allotments
Maturities
Balance
Exclusive
of Sales
Contracts
3, 1923
$ 1,596,000
-
-
$ 1,796,039
$19,309,000
it
11, 1923
2 ,9 30,000
-
-
2,360,030
19,879,000
u
18, 1923
2,560,000
«*
-
1 ,855,026
20,584,000
H 25, 1923
1,234,000
-
-
1,505,745
20,313,000
1> 1923
1 ,105,000
-
-
2,144,000
19,274,000
8, 1923
2,298,000
-
-
1,613,016
19 ,959,000
15, 1923
2 ,529 ,000
-
2 ,276 ,313
20,212,000
22, 1923
1*179,000
-
1,685,075
20,306,000
M 29, 1923
2,9 30,000
-
-
3,024,411
20,212',000
Sept . 5, 1923
1 ,976,000
-
«-
2 ,322 ,877
19 ,865,000
-
1,920,626
19 ,778,000
1,879,582
18 ,333,000
2,452,000
19,256 ,000
July
Aug .
(i
«
It
12, 1923
1,833,000
1923
2,435,000
-
26, 1923
3,375,000
..
1923
5,180,000
-
*3,000,945 (D a lla s)
2,548,023
18,888,000
10, 1923
3,714,000
«*
*2,000,000 (D a lla s)
2,758,700
17,844,000
17, 1923
4,005,000
-
«■»
1,424,731
20,424,000
1923
1,701,000
m.
m
1,856,711
20,268,000
31, 1923
2,072,000
**■
3,378,094
16,962 ,000
Nov .■ Ti 1923
7,461,000
m
-
4,585,370
19 ,838,000
m
1 ,643,813
26,082 ,000
2 ,394.118
27,222,000
11
19»
It
Oct -
n
ii
h
ti
n
t<
ii
14, 1923
7,888,000
21
-- . 1923
5 t534.000
TOTALS
*
-
*2,000,000 ( Dallas)
\
$66,135,000
Sal eg from portfolio
#2 ,000, OCO (D a lla s)
*2.000.000 (D a lla s )
$11,000,945
$47,424 ,300
from the Unclassified I Declassified Holdings of the National Archives
C LBV B L A N D
Purchases
Week
Ending
3, 1923
$ 48 ,645
11, 1923
-
July
ft
ti
Own
D istrict
Other
D istricts
Sales and
Allotments Maturities
$ 722 ,348 (N .Y .)
888,320
tt
Tl
Balance
Exclusive
of Sales
Contracts
$3 ,259 ,333
$25,103,000
tm
3,514,000
22,477,000
-
2 ,168 ,000
21,815,000
-
3,684,000
26,602,000
-
18, 1923
89 ,968
1,416,000
191,486
( *5,016,560
( 3,262 ,851
II
25, 1923
Aug .
1, 1923
183,498
7,103,185
If
-
2 ,638 ,000
31 ,251 ,000
ii
8, 1923
203 ,000
5,656,096
II
-
2 ,856 ,000
34,254,000
it
15, 1923
192,957
6,986,066
It
-
3,367,000
38 ,066,000
ii
22 , 1923
26,910
6,388,647
It
-
2,900,000
41,582,000
•i
29 , 1923
161,916
3 ,198 ,138
It
-
2 ,342 ,000
42 ,600,000
Sept ♦ 5, 1923
77,296
684,500
It
-
4,407 ,000
38,955,000
12, 1923
162 ,964
1,594,171
-
4,432,000
36 ,280,000
» 1923
133,806
1,035,977
tl
-
2 ,926 ,000
34,524,000
26, 1923
323,744
1,165,745
it
-
3,403,000
32,610,000
912 ,154
it
-
3,520,000
30,002,000
1 ,663,162
tt
-
3,729,000
28 ,206,000
1,293,296
tt
-
4,991,000
24,508,000
-
4,789,000
28,894,000
m
n
n
1 9
it
3, 1923
Oct •
ii
10, 1923
ii
1
7
,
1923
•
n
it
24, 1923
50,000
9 ,124,819
tt
31 > 1923
400,000
3 ,869 ,423
it
-
4,447,000
28,716 ,000
7, 1923
100 ,000
2,627,883
ti
-
3,306,000
28 ,138,000
1923
215,871
3,446 ,089
It
-
2 ,357,000
29 ,443,000
21 . 1923
148.338
3 .333 .902
H
3.995.000
28 ,930 ,000
$2 ,980 ,263
$71,389 ,332
Nov»
H
1
II
4
,
-------v
—
TOTALS
*
269 ,864
It
Bought from N . Y . portfolio
-
$73 ,030,333
Reproduced from the Unclassified I Declassified Holdings of the National Archives
RICHMOND
Purchases
Week
July
3, 1923
It
Own
D istrict
Other
D istricts
Sales and
Allotments
Balance
Exclusive of
Maturities Sales Contracts
700,000
-
-
$ 225,000
$2,253 000
11. 1923
23,000
-
-
343>649
1,932 000
tl
18, 1923
155,000
-
-
150,000
1,937 000
ft
25, 1923
350, 000
-
-
406,000
1,881 000
Aug.
1, 1923
200,000
-
-
295,000
1,786 000
If
8, 1923
60,000
-
-
127,933
1, 718 000
tl
15, 1923
-
-
-
400, 000
1, 318 000
tl
22, 1923
130,000
-
-
175,000
1,273 000
If
25, 1923
60,900
-
-
380,000
954 000
-
-
230,900
723 000
-
-
50, 000
708 000
-
-
230,000
478 000
Sept. 5, 1923
11
12, 1923
19, 1923
t»
. $
-
35, 000
-
26, 1923
70,000
-
-
-
548 000
3, 1923
170, 000
-
-
223,000
495 000
10, 1923
425,000
-
-
5,000
915 000
II
17, 1923
226, 000
-
ir
24, 1923
225,000
-
31, 1923
549,506
*
Nov.
7, 1923
135,000
•
M
14, 1923
511,655
21, 1923
195. 789
Oct.
M
ii
M
TOTALS
$4,221,850
-
1,141 000
100,000
1,266 000
50,000
1,766 000
-
25,000
1,876 000
-
-
25,000
2, 362 000
-
-
235.034
2, 323 000
-
$3,676 516
Reproduced from the Unclassified I Declassified Holdings of the National Archives
AT L A N T A
Purchases
Week
Ending
Own
D istrict
Other
D istricts
Sales and
Allotments
Maturities
Balance
Exclusive of
Sales Contracts
3* 1923
$ 512,001
-
-
0 2,019,784
$8, 144, 000
1*1 1923
663,917
-
-
2,028,013
6,800, 000
18, 1923
179, 541
-
-
2,517,867
4, 462, 000
25, 1923
748,866
706, 364
(F.R.B. N.Y.)
1,227,232
4, 640,000
1. 1923
263,320
4, 381, 519
( f , r. b . N.Y.)
347,000
8, 938, 000
tt
8, 1923
812,723
-
-
864,626
8,886,000
tf
15, 1923
435, 576
-
-
780, 08 4
8,542 , 000
it
22, 1923
510, 219
-
-
843, 393
8.209.000
tt
29, 1923
501,647
-
-
930,862
7,780, 000
5, 1923
1,273,562
-
-
548,279
8,505, 000
12, 1923
1,011,704
-
-
472, 469
9.044.000
»f
15, 1923
853,500
-
-
515,066
9.383.000
tr
26, 1923
1, 349, 799
-
-
1,590, 142
9, 142,000
3, 1923
797,065
-
-
830,709
9, 108, 000
If
10, 1923
1,732, 776
-
-
1,814,845
9, 026, 000
M
17, 1923
2,837, 464
-
* 5,095, 322
(F.R.B. N .Y.)
1,315,960
5, 452, 000
o
24, 1923
1, 984, 833
-
-
1,766,000
5.671.000
If
31, 1923
2,888,937
-
-
1, 156, 283
7, 404, 000
1923
2,527, 163
755,155
8.562.000
14, 1923
2, 483, 142
1,293,296
9.752.000
21, 1923
2. 216. 369
1.561.041
10, 407,000
$ 26,604, 124
$ 5, 459, 858 $ 6,081,293 $ 25,178,106
July
Tt
M
t?
Aug.
Sept.
M
Oct.
Nov.
It
TOTALS
http://fraser.stlouisfed.org/
from
Federal Reserve*BankSales
of St. Louis
p o rtfo lio .
' 371, 975 * 985,971
(F. R, B. N.Y) (SR,B. KY.)
Reproduced from the Unclassified I Declassified Holdings of the National Archives
CHICAGO
Purchases
Week
Own
D istrict
En d in p
July
Other
D istricts Allotments
3 , 1923
$3 ,590 ,000
11, 1923
984,000
18, 192 3
2 ,839,000
5,103 ,000
25, 1923
1,477 ,000
1923
778 ,000(N »Y .)(*1 ,338,982 <i
*
( 5,876,018 rt
#3,747 ,000
$42 ,460(000
12 ,311,000
38,348,000
ii
-
4,708,000
41,582,000
1 ,788 ,000
it
-
1,825,000
43,022,000
846,000
1,706,000
ii
-
968,000
44,606,000
8, 1923
771,000
890,000
-
2,458 ,000
43,809,000
lfe, 1923
806,000
1,002 ,000
ii
-
2,061,000
43,556 ,000
22
1923
153,000
926 ,000
il
3,194,000
41,441,000
29 , 1923
1,177,000
2 ,922 ,000
ii
4 ,118 ,000
41 ,422 ,000
Sept * 5, 1923
656,000
2,765,000
ii
(■»
5,574,000
39,374,000
12 , 1923
1,261,000
4,625,000
it
-
5,188 ,000
40,072 ,000
1923
813,000
5,099 ,000
11
-
3,813,000
42,171,000
26, 1923
917,000
3 ,926 ,000
-
6,936 ,000
40 ,078,000
3, 1923
792,000
4,012 ,000
-
5,648,000
39,134,000
ii
1 °. 1923
236,000
8 ,257,000
-
5,128,000
42,499,000
ii
17, 1923
295 ,000
2,690,000
t!
-
5,005 ,000
40,479,000
24, 1923
37,000
1,343,000
It
-
4,232,000
37,627,000
31, 1923
780 ,000
1,529,000
5,888 ,000
34,048,000
7, 1923
309,000
2 ,699 ,000
ii
14, 1923
1,483,000
3,389,000
ii
21, 1923
435 .000
3 „320.000
120,657,000
$65 ,984,000
tt
*♦
«i
Aug.
11
ii
ii
,
«
n
O ct.
H
11
Nov-.
TOTALS
*
Bought from N . Y . portfolio
$
Maturities
Balance
Exclusive
of Sales
Contracts
n
n
ii
n
n
ii
-
2 ,403 ,000
34,653,000
H
m
2,269,000
36,309,000
ii
-
2.683.000
37,381,000
190,157,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
ST.
LOUIS
Purchases
Week
landing
July
3,1923
"
I I , 1923
"
18, 1923
"
25, 1923
Aug.
1, 1923
"
8, 1923
"
15, 1923
"
22, 1923
n
29, 1923
Sept . 5 , 1923
Own
D istrict
32,000
14,000
Other
D istricts
Sales and
Allotments
Maturities
Balance
Exclusive
of Saley
Contracts
0 1,082,000
05,979 ,000
1,533,000
4.446.000
1,000,000
3.446.000
335.000
3.111.000
884.000
2.227.000
732.000
1,527
*
»000
416.000
1.111.000
229.000
882 ,000
492 ,000
390.000
15.000
389.000
"
12, 1923
"
19, 1923
349 ,000
40.000
"
26, 1923
1 , 000
39.000
3, 1923
32.000
7.000
Oct .
389 ,000
"
10, 1923
"
17, 1923
7 ,000
"
24, 1923
7.000
"
31, 1923
Nov.
7, 1923
29 ,000
"
14, 1923
29 ,000
"
21, 1923
TOTALS
7.000
22,000
29 ,000
7,000
$68,000
07 ,107,000
22.000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
M I N N E A P O L I S
Purchases
Week
Ending
July
Own
District..
Other
D istric ts
Sales and
Allotments
M aturities
Balance
Exclusive o f
Sales Contract
3, 1923
IT 11, 1923
If
18, 1923
19 25, 1923
.Aug*
1, 1923
it
8, 1923
n
i s . 1923
i*
22, 1923
it
29, 1923
Sept,• 5, 1923
«
12, 1923
H
19, 1923
It
26, 1923
0 ct.
3, 1923
5C*©00
-
50,000
n
10, 1923
1,000
-
51,000
H 17, 1923
-
51,000
it
24, 1923
-
51,000
ft
31, 1923
-
7, 1923
-
11 14, 1923
~
Nov.
M
21, 1923
TOTALS
$51,000
■
-
51,000
~
51,000
-
51,000
51,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
KANSAS
•
~
Week
Ending;
.
Own
D istrict"
July
3, 1923
--
H
11, 1923
-
CITY
Purchases
Other Sales and
D istric ts Allotments
M atu ritie e
Balance
Exclusive o f
Sales Contracts
$
26,000
~
-
«
-
-
26,000
**
-
~
26 ,000
-•
•*
-
-
26,000
1, 1923
-
-
..
25,726
-
8, 1923
-
ii
15, 1923
-
n
22, 1923
-
»»
29, 1923
..
11 18, 1923
11 25, 1923
Aug,
*i
Sept.•
It
II
tt
O ct.
tl
11
~
-
-•
2,012,000
2,012,000
-
12, 19 23
2,012,000
2,087,000
-
7 5,000
-*
-
-
2,087,000
-
-
-
2,247,000
10, 1923
-
-
32,906
2,215,000
17, 1923
-
-
15,745
2,199,000
-
-
678,545
1,520,000
-
1,527,000
260,341
1,267,000
529,786
737,000
27.000
710 ,000
26, 1923
3, 1923
160 ,000
ft
24, 1923
..
11
31, 1923
6,987
Nov.
7, 1923
-
14, 1923
-
n
2,012,000
-
1923
19, 1923
-
21, 1923
TOTALS
'■
—
|241,987
$2,012,343<
$1,570,049
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Purchases
Own
Other
D istric t
D istricts
Week
Ending
July
3, 1923
Sales and
Allotments
-
$ 233,242
(F.R.B. N. Y.)
1923
-
1, 289, 461
1, 012,9 45
(F.R.B. N. Y.) (F.R.B. H X )
11
18, 1923
-
309,^38
°2,500,163
(F.R .3. N. Y.) (F. R.8.M.Y.)
II
25, 1923
-
19
n,
SP
-
Maturities
Balan ce
Exclusive
Sales Contrai
800,368
0 12*071,000
1,480,140
10,867,000
895,212
7,782,000
1,928,000
2, 627,000
$
° 3,227,000
(F.R.B.N.Y. )
Aug.
1923
-
-
-
1,357,234
1,270,000
1923
-
-
-
602,687
667,000
11
1923
-
-
-
37,123
630, 000
ft
22, 1923
-
-
-
11,193
619,000
tt
29, 1923
-
-
-
155,130
4b 4, 000
1923
-
-
-
28,875
435,000
33,716
9,999,000
161,828
17,872,000
282,000
22,5 46,000
79,395
28, 470, 000
-
2,503,141
27,967,000
-
3, 261,591
29,214,000
tt
Sept,
8,
5,
n
12, 1923
it
19, 1923
* 6,048,503
(F.R.B. N .Y.)
3,549,518
(F.R.B. N -y J
*
2, 000,000
(F.R.3. P H I L . )
*
6, 034, 828
(F.R.B. N. Y.)
if
26, 1923
-
4,955,701
-
(F.R.B. N.Y.)
Oct.
3,
1923
* 3, 000,945
(F .R .B . P H IL .)
* 1,301,076
(F.R.B. N. Y. )
1,700, 752
(F.R .3. N. Y.)
ft
1923
-
* 2, 000, 000
(F .R .3 .
Tf
I? ,. 1923
-
P H IL .)
4,509, 136
(F .R .B .
N .Y .)
( Continued)
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DALLAS
(Continued)
Maturities
Balance
Exclusive
of Sales
Contracts
0 2,086,493
0 27,127,000
1,173,406
32 ,118 ,000
Purchases
Week
EndingOct. 24, 1923
"
-
31, 1923
Nov*
’*
Own
D istrict
7, 1923
i4 , 1923
-
Sales and
Allotments
-
04,163,621
( F Jl ,B *N .Y .)
* 2 ,000,000
( F.R.B -Phil .)
0251,749
2,258,184
( F Jl .B .N .Y .)
-
1,349,367
33 ,278,000
-
6,461,339
( F .R .B -N .Y .)
-
2,124,254
37.615.000
* 2 ,000,000
( F i l .B -Phil -)
3,385,390
( F Jl 3 *N -Y
*■*
2,115,018
40.885.000
022,466,171
$344 ,523 ,000
11 21, 1923
TOTALS
Other
D istricts
0251,749
057,201,434
06,740,108
*
Bought from Philadelphia and New York p o rtfo lio
°
Sale from p o rtfo lio
Reproduced from the Unclassified I Declassified Holdings of the National Archives
S
A N . F R A N C I S C O
Purchases
Week
E n ding
w
2, 900, 000
15,375,000
434, 000
1,239,000
-
2,592,000
14,456,000
1,271, 000
-
2,015,000
13,712,000
1 ,022,000
13,628,000
1,628,000
13,010,000
2, 083, 000
12,610, 000
Sales and
Allotments
1 ,
1923
8 ,
1923
243,000
695,000
-
1 5 ,
1923
276, 000
734,000
m
22 , 1923
988, 000
695,000
29, 1923
596,000
723,000
-
2, 072,000
11, 857,000
1923
127,000
625,000
-
2,397,000
10, 309,000
12 , 1923
415,000
1,200, 000
-
1,658,000
10,266,000
1923
339,000
726,000
-
1,604,000
9, 727,000
26, 1923
30,000
893,000
-
726, 000
9,924, 000
1923
950,000
649,000
-
816,000
10,707,000
io, 1923
536,000
1,244,000
«
1, 448,000
11,039,000
1923
117, 000
972,000
-
1#689, 000
10, 439, 000
996,000
-
1,089,000
10,346,000
-
2,120,000
9,553,000
1, 463, 000
10,337,000
5 ,
3 ,
-
24, 1923
11
ii
-
25, 1923
1 7 ,
Nov,
1,067,000
1923
»i
ii
191,000
1 8 ,
1 9 ,
Oct.
17, 017,000
105,000
II
l«
4, 281, 000
1923
If
M
-
1 1 ,
«
Sept.
705, 000
$ 581,000
t?
fl
#20, 488,000
13,102,000
M
(f
$1, 991,000
1923
3 ,
Attg.
-
District
Other
D istricts
T u l y
fl
Maturities
Balance
Exclusive of
Sales Contracts
Own
3 1 ,
1923
170,000
1,157, 000
7 ,
1923
207, 000
2,040, 000
14, 1923
389,000
2,555,000
-
982,000
12,299,000
21, 1923
1. 083, 000
2,595.000
-
1.025 7000
14,952,000
T O T A L S $10. 298. 000
|23,362, 000
««•
$37,601,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
*
'
I
FIRST REPORT OF OPEN MARKET INVESTMENT COMMITTEE
foe the federal reserve system, submitted to the governors*
CONFERENCE ON NOVEMBER 12, 1923, COVERING ACTIVITIES SINCE
ORGANIZATION APRIL 1, 1923
At the la st Governors* Conference, held on March 26, 1923, the
follow ing principles with respect to open market investment operations of
the Federal reserve banks were
adopted:
1.
That the time, manner, character and volume of open
market investments purchased by Federal reserve banks
be governed with primary regard to the accommodation
of commerce and business, and to the e ffe c t of such
purchases or sales on the general credit situation*
2.
That in making the selection of open market purchases,
careful regard be always given to the bearing of pur
chases of United States Government securities, especi
a lly of short dated issues, upon the market fo r such
secu rities, and that open market purchases be primarily
commercial investments, except that Treasury c e rtific a te s
be dealt in, as at present, under so-called ^repurchase”
agreements.
In order to provide fo r the proper administration of
this policy, the Board ruled that on and after April
1, 1923,the Committee of Governors on Centralized
Execution of Purchases and Sales of Government Securi
t ie s be discontinued and be substituted by a new com
mittee known as the Open Market Investment Committee
fo r the Federal Reserve System, th is committee to con*
sist of fiv e representatives from the Federal reserve
banks and to be under the general supervision of the
Federal Reserve Board, and tbat i t be the duty of th is
Committee to devise and recommend plans fo r the pur
chase and sale and distribution of the open market
purchases of the Federal reserve banks in accordance
with the above principles and such regulations as may
from time to time be la id down by the Federal Reserve
Board.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 2 -
Herewith is presented a report of the a c tiv itie s and operations
of the Committee covering the period from April 1. 1923. (date of the
organization of this Committee) to October 17, 1923, inclusive*
Formal meetings of the Committee were held at the Federal
Meetings
Reserve Bank of Philadelphia, April 13, 1923, and in Washington, D. Cfr(,
May 23, and June 25, 1923, at which reports of the Committee*s a c tiv itie s
were submitted*
Meeting
April 13,
1923
The fir s t meeting of tho new Committee was held in Philadelphia
on April lb, 1^23, at which the policy covering the opon market purchases
of the Federal reserve banks and the administration thereof, as referred
to in the Federal Reserve Boards le t t e r (X-3689 dated April 7, 1923) was
discussed, i t being agreed that i t was the duty of this Committee to
devise and recommend plans for the purchase and sale and distribution of
the open market purchases of the Federal reserve banks in accordance with
the principles outlined therein, and such regulations as may from time to
time be la id down by the Federal Reserve Board*
Meeting
May 23.
1923
At the meeting of the Committee held in Washington, D* 0*, May
23, 1923, a discussion took place regarding the current credit situation,
the present investment holdings o f the Federal reserve banks and of open
market policy.
As a result of the discussion and the general feelin g
that an ease in money had recently occurred occasioned partly to an in
crease in the imports of gold and partly to a lessened demand fo r credit,
i t was f e lt that the present afforded an opportune time to dispose of a
moderate amount of the open market investments held by the System, where
upon it was voted to authorijse and direct the chairman to undertake to
arrange with the twelve Federal reserve banks for the sale of $50,000,000
in such securities on a pro rata, basis at as early a date as was prac^
tica b le-
During tho following month the System disposed of not only the
$50,000,000 here referred to but an additional $30,000,000 as w ell.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 3 -
With the exception of Government securities held under repur
chase agreement and in miscellaneous reserve accounts, this reduced the
purely investment holdings of the System to approximately $50,000,000 of
Treasury notes, the banks having disposed of practically a ll of. th eir
Treasury c e r tific a te s .
Meeting
01
Advisory
Commit tee
June 25,
1923
The Committee presented a report at the meeting of the
Advisory Committee of the Federal Reserve Bank Governors* which was
held at the o ffic e of the Federal Reserve Board in Washington, June 25,
1923.
At th is meeting a plan covering the distribution of the b ills
purchased by Federal reserve banks was presented to and adopted by the
Committee, and a copy was sent to the Governor of the Federal Reserve
Board and to the Governor of each Federal reserve oank*
Transactions
in
Gov't
Securities
by
F ederal
Reserve
Banks f or
Their Own
Account
Since the organization of this Committee, transactions in
Government securities by Federal reserve banks affecting th eir own in
vestment accounts, have resulted in a reduction in their to ta l holdings
of ^148,000,000 from the to ta l holdings of $222,000,000 (exclusive of
sales contracts) while holdings of bankers acceptanes re fle c te d a re
duction during the period covered of $89,000,000. (see schedqle
attached.)
Treasury
Orders
Various orders fo r account of the Treasury amounting to
$359,533,500 have been distributed by the Committee (see schedule
attached ).
Attached are further exhibits containing statements of in
vestments of Federal reserve banks and other data a*s follow s:
1.
WEEKLY REPORT OF OPEN MARKETT INVESTMENT COMMITTEE
COVERING PERIOD FROM OCTOBER 11 to 17, INCLUSIVE.
2.
GOVERNMENT SECURITY HOLDINGS OF FEDERAL RESERVE BANKS
AS OF OCTOBER 17, 1923,
3.
COMPARISON OF GOVERNMENT SECURITY HOLDINGS BY
MATURITIES OF ALL FEDERAL RESERVE BANKS
4*
COMPARISON OF EARNING ASSETS OF FEDERAL RESERVE BANKS
ON APRIL 4, SEPTEMBER 5 and OCTOBER 17, 1923-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 4 -
Details of the changes in the holdings of Government securities and
bankers acceptances from April 4, 1923, to October 17, 1923.
BANK
Boston
ISSUE
GOVERNMENT SECURITIES
PURCHASED
3 3/4^ ) Sept * 15/23 C-I
4 3/S% - Dec. 15/25 T-N
4 1/4% - Sept. 15/26 T~N
New York
4
- Sept „ 15/26 T-N
Phila.
3
4
4
4
5
5
4
4
4
4
4
3/$ - Sept. 15/23 C-I
15/23 C-I
i - Dec.
1/4/, - Mar . 15/24 C-I
- Mar, 15/24 C-I
Xf&
3/4^ - June 15/24 T-N
1%
- Sept. 15/24 T-N
3 / 4 % - Mar.
15/25 T-N
l/2f. * June 15/25 T-N
1 / 4% - Sept. 15/26 T-N
3 /4 / - Mar,
15/27 T-N
l /z j. - Dec „ 15/27 T-N
Miscellaneou s Bonds
3
3
3
4
4
4
4
5
4
4
4
4
4
4
4
3/4f,
3/ €
3/4^
1/4/c
%
1/4%
1
/2 /
3 /4/0
3 /4 %
1 /2 %
-
-
3/6/ 3/4/o 1/4% 3 /4 i 1/2% -
June
Sept.
Sept.
Sept,
Dec.
Mar.
Mar.
June
Mar.
Jui&e
Dec.
Mar *
Sept.
Mar t
Dec.
15/23
15/23
15/23
15/23
15/23
15/24
15/24
15/24
15/25
15/25
15/25
15/26
15/26
15/27
15/27
C-I
C-I
C-I
C-I
C-I
C-I
C-I
T-N
T-N
T-N
T-N
T-N
T-N
T-N
T-N
%
V
itlanta
-03
4
4
4
4
5
4
3/4% - Sept.
1/4% - Gept.
% - Dec.
l/4/o - Mar .
l/2 - Mar.
3/4% - June
l/2/o - June
1 0 ,0 0 0
C--I
C--I
c--I
c--I
C'-I
T-*N
T*-N
000
000
6,494,000-
000
10,000,000-
582 0 0 0
350 500
87 0 0 0
2 000
000
1 6 8 500
46
300,000
5,090
194
68
369
253
1,502
802,800
8,714 300
369,800
1,500,000
420,500
146,500
199,500
1,098,000
234,000
200,000
190,000
350,100
-015/23
15/23
15/23
15/24
15/24
15/24
15/25
,694 000
0 0 0 (redeemed)
800
4,338,600
Richmond
4
^
1 ,0 0 0
19,000
114,000
NET CHANGE
April 4 - Oct. 17/23
SOLD
20,000
502,000
215,500
80,000
102,000
59,GCU
000
700
400
800
100
300
7,911,500-
1,504
3,734
420
246
5,147
1, 025
100
40
000
500
500
500
000
000
500
000
300
689 100
557 000
32 500
1,775 800
7 100
29, 500
15 309,300
-02,000,,000
20.,000
502,,000
95,, 500
200,,000
102,,000
271. 5r'0
10,970,700-0-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Atlanta
( cont1d)
C h ic a g o
4 3/B/0 Doc. 15/25 T-N
4 3 /4 / - Mar, 15/26 T-N
4 1/4/ - Sept*15/26 T-N
4 3/4/ - Mar* 15/27 T-N
4 1/2/ - Dec* 15/27 T-N
Miscellaneous Bonds
3
4
4
4
4
3/4/o % l/4/o 1/2/ 3/4/ -
Septal5/23
Dec* 15/23
Mar, 15/24
Mar. 15/24
Mar* 15/27
5, 700
9, 500
26,000
422, 200
425, 900
1,129,650
5,100
9, 500
16,000
422,700
484,200
1,170, 700
$5,299, 200
750,000
17, 549, 000
17,790,000
114, 500
635, 500
119,000
C-I
C-I
C-I
C-I
T-N
3 3/4/, - June 15/23 C-I
3 3/4/ - Sept*15/23 C-X
4
/ - Dec. 15/23 C-I
4 1/4$ - Mar, 15/24 C-I
5 3/4/ - June 15/24 T-N
5 l/2/o
Sept* 15/24 T-N
4 3/4/ - Mar* 15/25 T-N
4 1/2/ - June 15/25 T-N
4 3/8/ - Dec* 15/25 T-N
4 3/4/ - Mar, 15/26 T-N
4 3/4/ - June 15/26 T-N
4 1/4/ ^ Septal5/26 T-N
4 1/2/ - Dec. 15/27 T-N
Miscellaneous Bonds
$
$2, 997, 450
119,000
$
St* Louis
SOI^D
PURCHASEt>
ISSUE
BANK
869,000 $36,208,000
360.000
3 3/4/ — Sept.15/23 C-I
3 3/4/ - S ept„l5/23 C-I
4 l/4/o - Sept,15/23 C-I
4
/ — Dec. 15/23 C-I
Mar. 15/24 C-I
4 l/4/o
4 1/2/ - MarT 15/24 C-I
5 3/4/ - June 15/24 T-N
Sept*15/24 T-N
5 3/2/
4 3/4/
Mar* 15/25 T-N
4 l/2/o - June 15/25 T-N
4 3/8/ — Dec* 15/25 T-N
4 3/4/ - Mar*. 15/26 T~N
4 1 /4 / - Sept*15/26 T-N
4 3/4/ - Mar. 15/27 T-N
4 1/2/ - Dec, 15/27 T-N
Miscellaneous Bonds
2,301,750emed)
35, 339,000-
360, 000 (redeemed)
994, 000 (redeemed)
5, 293, 000
572,500
1,643,100 *
1,154, 000
1, 285, 900
850,600
1,245,900
1,018,300
300,000
1,555, 900 .
249, 200
2,
851,500
572, 500
275.000
02, 059, 000 $25, 825, 700
Minn,
NET CHANGE
April 4 - Qct«17/23
22,5 00
222,000
2, 087, 500
2,157, 500
1,471,000
1,370,500
4,124, 900
1,845,500
1,594,700
1,186,000
6,273,300
3, 747, 700
1,384, 400
953, 700
7,205, 500
23, 766, 700-
510, 500 (redeemed
37,500
224, 000
2, 072, 500
2,150, 500
1, 471, 000
1,370,500
4,124,900
1,833,400
1, 584,700
2, 828, 500
2,018, 800
9,026,700
1,409, 400
954,100
6. 933, 900
$35,646,700 $38, 550*900
2,904,200-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
-
BANK
Kan. City
ISSUE
Junc 15/2 3 C-I
Sept 15/23 C-I
Sept 15/23 C-I
1/4 - Sept. 15/23 C-I
% - Dec. 15/23 C-I
l/4% - Mar. 15/24 C-I
l/2/0 - Mar. 15/24 C-I
l/2% - Sept 15/24 T-N
3/4$ - Mar. 15/25 T-N
l/2/o - June 15/25 T-N
3/8$ - Dec. 15/25 T-N
3/4/o j. Mar. 15/26 T-N
l/4/C - Sept 15/26 T-N
3/4^ - Mar, 15/27 T-N
1/2% - Dec. 15/27 T-N
Miscellaneous Bonds
3 3/4$
3 3/4$
3 3/4^
4
4
4
4
5
4
4
4
4
4
4
4
_
5
-
0
V
-
153,000
63,000
21,500
151,000
27,000
12,000
4,165,000
350,500
1,970,700
5,000
100.000
7,018,700
3/ 4%
Dallas
\/4,
%
1/4
1/21
5 3/ $
4 3/ $
San Fran.
3
5
4
4
4
Sept 15/23 C-I
Sept.15/23 C-I
Dec. 15/23 C-I
Mar. 15/24 C-I
Mar. 15/24 C-I
June 15/2 4 T-N
Mar. 15/2 5 T-N
7,000 ( redeemed)
1 414,500 (redeemed)
226,000
191,500
1,000
1,919,200
11,615,000
1,500, 000
11,909,100
1,505,000
2, 412,200
94,000
2.516,000
35,310,500
10 , 000
6, 000, 000
2,500,000
300,000
2.500.000
2.000'000
7.310.000
300.000
1.125,000
24,000 (redeemed)
12,764,600
12,400
1.850.000
3.712.000
92.500
June 15/23 C-I
Sept 15/24 T-N
Mar. 15/25 T-N
3/4fo
3/4$
Mar. 15/26 T-N
1/4$
Sept. 15/26 T-N
Miscellaneous Bonds
l/2%
45 000
NET CHANGE
April 4 - Oct. 17/23
'2,125,000 (redeemed)
10,000
3/4^
T O T A L
SOLD
PURCHASED
18 455,500
061, 087,250 0208,602,400
18.410.5000147,515,150
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 7 -
RECAPITULATION OF CHANGES IN HOLDINGS OF GOVERNMENT SECURITIES
EXCLUSIVE OF SALES CONTRACTS FROM APRIL 4 TO OCTOBER 17, 1923
(OOO Omitted)
Bur.'k
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
Holdings
April 4
Purchases
Sales and
Redemptions
Holdings
Oct, 17
Net Changi
Apr * 4
Oct.
£ .10,054
11,149
25,319
21,317
1,341
2,542
41,597
23,767
10,291
36,858
9,904
27,596
-0*
-0803
4,338
-02,997
869
2,059
35,647
7,019
7,310
45
C 6,494
10,000
8,714
15,309
-0-.
5,299
36,208
25,826
38,551
35,311
8,435
18,455
0 3,560
1,149
17,408
10,346
1.341
240
6,258
-07,387
8,566
8,779
9,186
0
§221,735
$61,Q87
0208,602
$74,220
£147,515-
6,49410,0007,911*
10,971-02,30235,33923,7672,90428,2921,12518,410-
NET CHANGES IN HOLDINGS OF BANKERS ACCEPTANCES
EXCLUSIVE OF SALES CONTRACTS FROM APRIL 4 TO 0CT03ER 17, 1923
(000 Omitted)
Bank
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St 4 Louis
Minneapolis
Kansas City
Dallas
San Francisco
T O T A L
Net Change
Apr, 4 - Get. 17/23
Purchases
Sales and
Maturities
Hoi dings
Oct 17
§ 14,565
22,357
28,169
51,436
1,026
26,117
32,001
12,455
2,275
225
2C 130
39.850
0 35,522
168,189
63,978
81 604
5,327
30r750
121,095
10,110
51
2,376
51,625
4 7 4874
§ 41,943
171,390
71,723
108,532
5,212
51,415
112,617
22,558
2,275
402
42,541
77,2-85
(; 8,144
19,156
20,424
24,508
1,141
5,452
40,479
7
51
2,199
29,214
10,439
§ 6,421*
3,201*
7,74526,928115+
20,6658,478+
12,448*
2,2241,974+
9,084+
29.411-
^250,606
§618,501
0707,893
£•161,214
089,392-
Holdings
April 4
,
,
.
*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TREASURY ORDERS EXECUTED BY THE OPEN MARKET INVESTMENT COMMITTEE
,_________
SINCS ITS FORMATION ON APRIL 1, 1923
__________
(To Purchase)
Account
Date of Order
April
Price
I s sue
Amount
100 2/32
$ 7,000,000
Mark et
30,780,000
1923
Cumulative Sinking
Fund
*May
3-9, 1923
Foreign Obligations
Third
Bonds
June
11, 1923
Redemption
June 15, 1923 Ctfs*
Par
6,.553,.500
tt
15, 1923
Philippine Gov't
June IS, 1925 Notes
Market
2,500,000
tl
16, 1923
Retirement
Soptf 15, 1923 Ctfs.
Par
10,967, 500
" 14-18, 1923
Alien Property
Custodian
Sept* & Dec* 1923
Ctfs*
tf
29,795, 000
it
13, 1923
Purchases Proceeds
Treasury Notes
Any Treas. Notes
F* R. B. holdings
11
25,497,100
t«
26, 1923
Purchases Proceeds
Treasury Notes
C-1925, B-1926
A-1927 Treas.Notes
” 27-28, 1923
* Purchases Proceeds
Treasury Notes
Uncalled Victory
Notes
L. L.
B-1925, C-1925,
Brl926, A-1927 “
Trcas, Notes
Market
15,000,000
tt
25,000,000
10, 000, 000
" 28-29* 1923
Retirement
Dec. 15, 1923 Ctfs.
Par
tt
29, 1923
Purchases Proceeds
Treasury Notes
B-1925, C-1925,
B*1926 Notes
Market
July
3, 1923
C iv il Service Re~
tirement & Dis^
a b ility Fund
Dec. 15,. 1923 Ctfs,
A.«*1927 Notes
Par
10, 000,-000
*July
6, 1923
Cumulative Sinking
Fund
Third 4%% L, L*r
Bonds
Market
10,000,000
” 11-13, 1923
Cumulative Sinking
Fund
C*»1925, B-1926
Treas. Notes
ttw
13,. 1923
Retirement
tt
24, 1923
i,
it
15*000,.000
Sept. 15, 1923 Ctfs*
Par
10,643,000
15, 1923
tt
11
25, 1923
Cumulative Sinking
Fund
C-1925, B-1926
Notes
•*Aug.
1., 1923
Cumulative Sinking
Fund
Third 4^$ L* L,
Bonds
tt
2*. 1923
Ret irement
Sept,.15,. 1923 Ct'fs*.
It
5,000,000
Market
5,000, 000
10,000,000
it
10,000, 000
Par
2,128,-500
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 9
Tr sury Orders
. (Continued)
Date of Order
Apt ounx
T
— --■
—
Price
Aug.
15, 1923
Cumulative Sinking Fund
A-1927 Notes
Market
”
21, 1923
Retirement
Sept. 15, 1923
either ctfs*
Par
" 23-27, 1923
30, 1923
*
Issu;
£ 4,.643,600
1 0 ,000,000
20 ,000,000
Sept. 15, 1923
either ctfs*.
Alieu Prop*, Custodian
Amount
Mar, 15,, .1924
4 i/2 ctf s..
Market
6.830.000
Par
3.177.000
Sept*
6, 1923 Retirement
Sept,. 15,. 1923
either cfcfs*.
Sept,
6, 1923
Cumulative Sinking Fund
3rd L,L. 4 1/4$ Bds. Market
10*000,000
Alien Prop. Custodian
either series
Mar. 15/24 ctf s..
"
28,000,000
3rd L Su. -4 l/4fo Bds..
"
10 000,000
” 14-17, 1923
*Sept*. 15, 1923 Foreign Obligations
"20-24,, 1923
Cumulative Sinking Fund
"
Cumulative Sinking Fund 3*1325,, C-1925,
3-1926, A«1927'
Treas. Notes
27; 1923
*Sept. 29# 1923 Foreign Obligations
Oct.
16, 1923
Cumulative Sinking Fund
10 ,000,000
B-1925, C-1925
3-1926, A-1927
freas.- Motes
5,000,000
,
Third L.L* 4 1/4%
3onds
A*1926 Treas*
Notes
T O T A L
,
10 000,000
Par
1,018,300
0359,533,500
*pur chased on St.oel: ^change
Participation in these various Treasury orders by Federal reserve
has been as follow s;
B0 st on
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$ 30,000,500
191,537,350
•32,667,600
5,272,900
2,867,500
-1,794,250
40,897,500
13,715,400
6.279.800
14,139,900
4.180.800
15.580,000
0359,533,500
banko
Reproduced from the Unclassified I Declassified Holdings of the National Archives
WEEKLY REPORT OF OPEN MARKET INVESTMENT COMMITTEE COVERING PERIOD
___________ OCTODER I I TO OCTOBER 17, 1923 (INCLUSIVE)____________
Comparison of Holdings of Earning Assets by Federal Reserve Banks
________________ from March 28 to October 17, 1923 ________________
(000 Omitted)
TOTAL
EARNING
ASSETS
Mar.
Apr*
May
June
July
Aug.
5ept„
Oct.
w
It
28
25
29
27
25
29
26
3
10
17
01, 203, 720
1» 104, 489
1. 178, 156
1, 114, 219
1, 033, 697
1, 082, 553
1, 126, 334
1, 150, 022
It 143, 624
1, 139, 397
Net change
Mar. 28 to Oct. 17
0
.
64, 323-
DISTRIBUTED AS FOLLOWS:
*Government
Securities
ankers
Acceptances
B ills
Discounted
$249, 409
193,810
189,288
134,976
96,284
93, 530
91,885
95, 142
91,883
94, 041
6254,251
274,041
257,818
204, 225
176, 864
173, 485
172,124
172,902
182, 407
190,518
$700,060
636,638
731, 050
774,963
760,539
815, 518
862,008
881,661
869,017
854,521
$155, 368-
0 63, 733-
0154, 461+
■^Including sales contracts
Changes in Holdings of Government Securities and Bankers Acceptances
by Federal Reserve Banks (Exclusive of Sales Contracts) During
_________________
Week Ending October 17, 1923________
(000 Omitted)
TOTALS
Bankers Acceptances
Balance
Net
Balance
Change
Oct. 10
Oct. 17
$ 3, 560
1,149
17, 408
10, 346
1, 341
241
6, 258
-07, 387
8, 567
8,779
9* 185
0 3, 560
1,149
17, 408
10,289
1, 341
277
6,258
3, 668
7,385
8, 567
8,624
9,185
-c~
-O
—0—
57+
—0—
0 8,144
19,156
20,424
24, 508
1,141
5,452
40,479
7
51
2,199
29,214
10,439
$74, 221
077,711
43, 490-'
t
ID
CO
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Government Securities
Balance
Balance
Net
Oct* 17
Change
Oct. 10
-03, 6682+
-0155+
$161,214
6,690
12,024
17,844
28, 206
915
9,026
42,499
7
51
2, 215
27,967
11,039
$1,454+
7,132+
2, 580+
3,698226+
3, 5742, 020-0-0161,247+
600-
0158, 483
02,731+
0
Reproduced from the Unclassified I Declassified Holdings of the National Archives
-
2 -
DIGS SI OF REPORTS RECEIVED FROM ALL FEDERAL RESERVE BANKS
SFOWING DATA REGARDING GOVERNMENT SECURITIES AND OPEN
___________ BILL MARKET CONDITIONS IN ALL DISTRICTS________
G overnment Securities
Holdings of Government securities by Federal reserve banks have shown
a net reduction of $3,490,000 during the week.
During the period the Federal Re
serve Bank of St. Louis informed the Committee that they desired to dispose of
their entire holdings of Government securities.
4
3 / fa
The Treasury applied ^1,018*300
series A-1926 notes on order of October 16, for account of the Cumulative
Sinking Fund, while oalance of $2,650,000 miscellaneous bonds were sold in the
New York market*
Reports received from the various districts indicate that Liberty Loan
issues have maintained the firm tone that has characterized them since the sudden
decline around the first of the month.
While most of the Government issues advanced
moderately on good demand from both individuals and institutions, the United States
Treasury 4 l/4$ bonds of 1947-52 displayed the greatest strength, closing the period
at 99 6/32, a net increase of 15/32.
Treasury certificates and notes have been
more or less active, with demand and supply about equal and prices steady.
Offer
ings, however, in the New York market of December 4$ certificates were somewhat in
excess of demand, which selling was attributed in a measure to the adjustment in
the cash position of depositary banks, due to the Government withdrawal of funds.
Kansas City reports that it is still necessary for brokers in that district to buy
securities in the East to satisfy the local demand.
Stock Exchange call money, which opened the period on Thursday, October 11,
at
ruled easy throughout the week and with light demand from brokers continued
to go lower, money loaning at 4$ at the close of the period, Wednesday, October 17.
The immediate feature of the money market during the past week was the larger of
ferings of time funds and easier rates for this class of money.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 3 -
Money was offered at 5
dates was 5
l/ 4 %
to 5
l/ ^ %
1/2% .
for 60 and 90 days and nominal quotation on longer
The change in the situation was attributed in large
measure to the progressive liquidation of crops, particularly cotton.
The im
proved grain prices and high price of cotton resulted in the release of funds and
the return flow of money, which was forwarded to the crop moving sections earlier
in the year.
Bankers Acceptances
A net increase of 02,731,000 in. bill holdings of all Federal reserve
banks occurred during the week,
On October 16# the Federal Reserve Bank of Dallas requestsd the New York
bank to purchase for their account £'4*000,000 bankers acceptances.
There have been few new bills created in the Chicago district during
the past week with the demand coming mostly from country banks, sufficient to
absorb all new offerings.
inactive.
Xn Philadelphia conditions continue to be more or less
Offerings have been comparatively heavy, but the demand has been very
nominal with interior banks continuing as principal buyers, while local banks have
shown a disposition to reduce their portfolio rather than to increase it.
The supply
of
bills in the Boston market declined a little, but demand
was about the same as last week and continued fair with a few country banks
showing interest in buying.
tobacco bills.
In the supply were fair-sized blocks of cotton and
Boston reports that one local dealer has discontinued the accept
ance end of his business.
Although supply and demand continued comparatively good in New York,
there was a substantial decrease in both as against the previous week.
The sup
ply, however, continued to be considerably in excess of the demand and dealers’
aggregate portfolios increased to about $48,000,000, which is the largest amount
they have held since the end of July 1922.
Cotton bills predominated in the
Reproduced from the Unclassified I Declassified Holdings of the National Archives
market and there were also substantial amounts of grain, sugar, and dollar ex
change bills.
Dealers expect a better demand for bills during the coming week
if the present comparatively easy money conditions continue.
Dealers’offering rates remain unchanged, indorsed and unindorsed
bills offered at
4%
for the 30's, 4
l/ b %
for the 6 0 ’s and 90 ’sjand 4
l/ & %
to
4 l/4fo for 120 day bills.
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Foreign Obligations
Additional purchases of 02,352,000 bonds have been made during
the period on Treasury order of October 4, 1923, authorizing the purchase at
the market on the Stock Exchange of 010,500,000 par amount Third Liberty
Loan 4 l/4^ Bonds from the proceeds of payments by foreign governments, pur
chases on this order to be distributed over a period of two weeks.
Aggregate
purchases to date of $7,698,000 at prices ranging from 98 7/32 to 98 12/32 have
been made as follows;
Boston
New York
Philadelphia
0
750,000
6,048,000
900.000
0 7,6 98,000
2T802.000
Unexecuted balance
Sio', 500*, 000
Cumulative Sinking Fund
On October 16, 1923, the Treasury authorized the purchase at par and
accrued interest of 01,018,300 par amount 4
3/4%
Treasury Notes, series A-1926,
due March 15, 1926, from the holdings of the Federal Reserve Bank of St. Louis.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 5 -
ITEMIZED STATEMENT OF THAI 13ACTIONS' AFFECTING THE INVESTI4ENT ACCOUNT
OF ALL FEDERAL RESERVE BANKS FROM OCTOBER H TO OCTOBER 17, 1923+
GOVERNMENT SECURITIES
Purchases
Issue
Sales
issue
Held Under
Sales Contract
Boston
-0-
-0-
-
New York
• 0-
-0-
-
Philo-delphia
- 0—
-0-
-0 -
Cl ev el. and
57,000
-0*
-0*
Richmond
-o-
Atlanta
315,000
26,500
800
51, 450
TD2-1923 Ctfs*
TD2-1923 Ctfs*
TM2-1924
"
B-1927 Notes
Misc.- Bonds
-0-
St. Louis
-0-
Minneapolis
21,000
20,000
1,116, 500
5, 000
2, 500
12, 500
700
46, 700
62,100
5, 500
3,000
49, 500
12, 500
01,357,.500
-
Dallas
100, 000
155,000
- 01,-018, 300
2, 650. 000
cli>3, 668, 300
TD2-1923 Ctfs.
6, 000
TM-1924
"
30, 000
TM2-1924
*
1,119,500
A*1924 Notes
5, 000
B-1924
**
2, 500
A-1925
"
12, 500
B-1925
"
700
C-1925
"
46,700
A-1926
"
62,100
B-1926
»
5, 500
A-1927
w
3,000
B-1927
"
49, 800
Misci Bonds
12. 500
(?lt 355, 800
««•
Kansas City
331,-000
26,500
5, 800
67,100
TD2-1923 Ctfs..
TM2-1924
"
B-1927 Notes
Misc. Bonds
177,700
10,920,000
i-0**'
-0-
0430,400
0393,750
Chicago
-0-
0
TM-1924 Ctfs*
TM2-1924 "
-0100,000
A-1926 Notes
L/Iisc* Bonds
TD2-1923 Ctfs,
It
TM-1924
It
TM2-1924
A-1924 Notes
n
B-1924
ft
A-1925
tt
B-1925
«
C-1925
ii
A-I926
H
B-1926
1
1
A-1927
rt
B-1927
Misc* Bonds
tov
TM-1924 Ctfs.
721,200
-0-
6, 502,000
1, 500,000
-0-
0255, 000
San Francisco1
TOTALS
-0-
02,063, 250
•»o»*
05, 554, 500
«•»
-0019,820, 900
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 6 —
BANKERS ACCEPTANCES PURCHASED
PURCHASES
Amount
Maturity
Boston
1-30 days
31-60 "
61-90 "
Rate
MATURITIES
Amount
0
282,000 4j,
- 4 l/B% §
698,000 4 1/8°/ - 4 3/8f0
1,315,000 4 l/8/o - 4 3/8y(
t
2,295,000
Held Under
Sales Contracts
841,000
0 2,103,000
23,590,260
New York
1-30 days
31-60
61-90 "
Over 90“
3.260.000
3.870.000
1.607.000
143,000
4%
- 4 l/4#
4 1/8% - 4 3/8$
4 1/8i - 4 3/8f,
1,748,091
Philadelphia
1-30 days
31-60 "
61-90 "
492.000
724.000
2,789,000
4%
4#
- 4 1/8%
4 l/8/» - 4 l/4?;
1,424,731
-
4,991,000
-0-
0-
j.; 4.005,000
Cleveland
Richmond
In other
d is tric ts
1,293,296
31-60 days
61-90 "
100.000
126.000
4 l/4#
4 1/4/o
-0-
-0-
226,000
Atlanta
1,315,960
-05,095,322 Sold
__________ F.R.B.
N.Y.
06,411,282
2,837,464
Chicago
175.000
120.000
1-30 days
61-90 "
In other dis*
t r ic ts
4%
5,005,000
1,676,000
4 1/8%
2.690.000
0 2,985,000
0-
0-
St. Louis
-
0-
-
Minneapolis
-
0-
-0-
-0-
Kansas City
-
0-
15,745
-0-
In other dis
t r ic ts
4,509,136
San Francisco 31-60 days
In other dis
t r ic ts
117.000
972.000
Dalias
T O T A
k>
L
-
-03,064,242
197,349 Sold
Mem. Bks.
<?>3*261,591
4 l/8fo
1,589,000
955,000
$25 ,387,440
£28,324,260
1>089 >000
028,119,896
Dec.
15, 1923 -
March 15, 1924 "
15, 1924 -
Boston
New York
-C-
-0-
-0- '
-0-
-0-
-0-
Philadelphia
$
14,000
0-
-
27,000
Ri chmond
Atlanta
Chicago
99,500
-0-
-0-
-0-
-0-
2 2 1 ,0 00
-0-
-0-
-0-
-0-
73,000
-0-
-0-
-0-
-0-
Cleveland
$
St. Louis
Minneapolis
$
15,000
-07,000
Kansas City
$
Pallas
San Francisco
Total
1,500
-0-
-0-
27,000
-0-
-0-
248,000
-0-
2,757,000
150,000
2,500,000
17,000
2,500,000
$
130,000
Treasury Note8
June
15, 1924 -
Sept. 15, 1924 - 5 ^
March
15 ,
Dec.
15, 1925 - 4 3/8/i
June
15, 1925 - 4/.
1925 - 4 ^
-0-
-0-
6,354,500
-0-
-0-
-0-
-0-
1 002,000
-0-
-0-
2,337,000
-0-
-0-
-0-
-0-
920,600
- 0-
3,685,200
-0-
-0-
-0-
-0-
-0-
-0-
3,837,300
0-
10,607,500
-0-
- 0-
2,500
693,100
-0-
-0-
-0-
0-
-0-
2,500
16,800
-0-
-0-
-0-
-0-
-0-
1,063,400
-0-
238,900
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
- 0-
-0-
-0-
59,000
-0-
0-
5,000
vl,832,300
-0-
1 , 100,000
,
8,100
-
-0-
-0-
March 15, 1926 -
- 0-
-o-
Sept* 15, 1926 - 4
-0-
-0-
March 15, 1927 - 4f$
-
Dec.
-0-
-0-
-0-
$3,030,700
-0-
$16,858,700
$ 9,428,200
15, 1927 - 4H
T O T A L
Miscellaneous
GRAND TOTAL
Sales Contracts
A G G R E G A T E
0-
-
-
0-
2,525,000
-0-0-
0-
-
.343,200
-0-
-
.
-010,000
$
14,000
-0-
4,525,000
14,496,500
4,660,400
8,023,400
-0-
10,443,100
-0-
-0-
11,311,200
1,877,500
-0-
-0-
1,896,300
218,500
-0-
-0-
4,045,800
-0-
-0-
-0-
-0-
1,876,800
-c-
-0-
2,220,000
-0-
214,300
-0-
-0-
273,800
2,000,000
270,900
$ 8,234,400
$7,000,000
-0-
$9,185,400
$55,345,600
529.0QQ
1,148,750
549,300
918,400
1,340,900
235,430
4,425,600
-0-
7,115,710
331,850
1 ,779,500
-0-
18,374,440
$3,559,700
11,148,750
$17,408,000
$10,346,600
$1,340,900
$240,430
$6,257,900
-0-
$ 7,336,610
$ 8,566,250
$8,779,500
$9,185,400
$74,220,040
177,7C0
10,920,000
721,200
-0-
6,502,000
1 ,500,000
-0-
19,820,900
$6,979,100
-0-
$13,388,610
$10,066,250
$9,185,400
$94,040,940
$3,737, 400 $12,068,750
-
0-
$17,408,000
-
0-
$10,346,600
-0$1,340,900
-0$240,430
-0$8,779,500
Reproduced from the Unclassified I Declassified Holdings of the National Archives
GOVERNMENT SECURITY HOLDINGS OF FEDERAL RESERVE BANKS AS REPORTED TO THE
OPEN MARKET INVESTMENT COftfrflTTEE AT THE CLOSE OF BUSINESS OCTOBER 17, 1923
EXHIBIT H AH
fa hi bit "B"
OOigARISON OF TH» GOVtRNMPIT SECURITY
BDLPmOS BT ItATCRITIlS Of AM. W t s m i BAHKS
O Q I C I N P AS OF JWtt 14. O C T C B T O 25. 1922. APRIL 4
AMP OCTOBER IT. 1923.
* Holding* on
M . 1???
Certificates and Victory
Motet natured 1922
▼ictory Notes, 5/2*/23
March 15, 1923
>323,513,000
••O**
46,385,500
Bolding* on
Oetobir 25. 1922
♦ 72,938,500
-0-
** Holding* on
April 4. 1923
■Qm
17,350
Holdings on
October IT. 1923
-0-0-
43.839.500
-0*
-0-
15, 1923
«o«
48.110.500
-0-
-0-
Sept. 15, 1923
-0-
29.553,000
35,953,500
■0-
Dee.
15, 1923
m Qm
-0-
34,011,000
130,000
Jfareh 15, 1924
**Qm
-0-
2 ,062,500
3,005.000
106.822.300
110.9S0.S00
52.1l0.iCC
1490,496,100
♦301,263,800
♦182,994,850
♦55,845,600
Miscellaneous Gov’
t Bonds
45.792.000
39.146.300
39,082,910
18,374,440
Fittsan Act Certificates .
75.500.000
41,000,000
•*o«*
-0«
27.231.300
IT .o n .350
19.620.900
♦408,641,400
♦239,149,110
♦94,040,940.
June
Treasury Notes
T O T A L
Sales Contracts
AGGREGATE
*629,77*.850
*P*ak of Government security holding*
**Date when new Committee was organized
EARNING ASSETS OF FEDERAL RESERVE BANKS AT CLOSE OF BUSINESS OCTOBER 17, 1923
AS COMPARED WITH HOIDINGS AT CLOSE OF BUSINESS APRIL 4 AND SEPT, 5, 1923
(OOO Omitted)
EXHIBIT "C"
Boston
Bills Discounted
April 4
Sept. 5
Oct. 17
Net change April 4
to Oct. 17
Acceptances Purchased
April 4
Sept. 5
Oct. 17
Net change April 4
to Oct. 17
Government Securities
April 4
Sept. 5
Oct. 17
Net change April 4
to Oct. 17
Total Earning Assets
April 4
Seot. 5
Oct. 17
Net change April 4
to Oct. 17
*47,354
70,200
46,042
1,312-
17,065
10,748
10,247
6,818-
10,137
3,763
3,737
6,400-
74,556
84,711
60,026
14,530-
New York
*210,603
209,788
170,808
39,795-
27,462
41,271
43,727
16,265+
18,326
18,381
12,069
6,757-
256,891
269,440
226,604
30,287-
Philadelphia
*60,551
62,400
57,333
3,218-
28,169
19,866
20,424
7,745-
25,417
17,381
17,408
8,009-
114,137
99,647
95,165
18,972-
Cleveland
*38,731
47,041
61,172
Richmond
*52,063
71,528
73,563
Atlanta
*20,665
52,772
82,497
22,441+
21,500+
61,832+
51,506
39,056
24,508
1,026
723
1,141
26,117
8,505
5,452
26,998-
21.346
10,258
10.346
11 , 000-
111,583
96,355
96,026
15,557-
115+
20,665-
Chicago
*112,202
74,148
115,062
2,860+
32,696
39,897
42,155
9,459+
St. Loui> Minneapolis
*28,028
59,575
71,944
8,845+
24,603+
12,455
389
7
2,275
-050
2,012
12,448-
2,225-
1,974+
2,542
258
241
43,508
9,476
6,979
23,370
3,668
-0-
-0-
2,301-
36,529-
23,870-
49,324
61,555
88,241
21,615+
38,917+
188,406
123,521
164,196
24,210-
*28,157
39,114
52,760
43,916+
1,341
1,341
1,341
54,430
73,592
76,045
*20,466
26,545
29,311
Kansas City
64,353
63,632
71,951
7,593+
15,135
12,856
13,889
1,246-
37,876
39,401
43,250
5,374+
225
2,199
37,906
10,426
10,066
27,840-
66,288
51,552
65,291
997-
Dallag
*19,533
45,541
22,812
3,279+
20,130
43 5
29,214
9,084+
11,504
1.779
8.780
2,724-
51,167
47,755
60,806
9,639+
San Francisco
*56*918
91,442
71,217
Total
*
695,271
850,094
854,521
14,299+
159,250+
40,753
11,661
11,394
259,379
174,563
190,518
29,359-
69,361-
9,185
9,135
239,149
98,772
94,041
18,432-
145,108-
2 7 ,6 1 7
125,288
112,288
91,796
33,492-
1,194,299
1,123,449
1,139,397
54,902-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
| INITIAL REPORT
ON
FOREIGN BUSINESS UNDERTAKEN BOR ACCOUNT O F THE FEDERAL RESERVE SYSTEM
SUBMITTED TO
OPEN MARKET INVESTMENT COMMITTEE
BY
FEDERAL RESERVE BANK OF NEW YORK
NOVEMBER 30, 1923
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Since this committee is to supervise all' foreign business which is under
taken for account of the Ptederal Reserve System pursuant to action taken by the last
Governors Conference, the following report is respectfully submitted in order that
the members of the committee may be thoroughly familiar with the accounts which come
under their supervision * This report describes briefly the foreign accounts in which
the other Federal reserve banks participate as to benefits and liabilities and indi
cates the present position of these accounts.
Before describing the accounts in de
tail , it might be well to explain the present procedure in reporting to the other
Federal reserve banks on the foreign accounts in which they participate*
On
June 30 last, a statement giving full details of all bills and Treasury certificates
then held for foreign accounts was sent to each participating Federal reserve bank,
and since that date, schedules of all bills and certificates purchased have been fo**"
warded to them*
desire#
This enables the reserve banks to keep as complete records as they
At the end of each month, a new participation of the investments and free
balances is regularly made and advised by wire to the other Federal reserve banks*
A statanent is also mailed to them at that time giving the totals in each account.
Vtfhenever there is an important change in the investments and free balances during
the month, a special participation is immediately made by wire and a statement mailed
showing the reasons for the change.
In view of the fact that this committee is now to supervise these foreign
transactions , it is proposed following this initial report and subj ect to the com
mittee* s approval, to make a special report to each meeting of the committee covering
the important developments since the previous meeting, and, in addition to this spe
cial report, to mail to the members of the committee at the close of each month a
brief statement showing the bills, certificates and free balances then held for
foreign banks together with the changes which have taken place during the month and
the total commissions earned during that period*
This bank would welcome any sug
gestions from the committee as to the procedure outlined above.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 2 -
There is one other routine matter o f which the committee should be reminded,
namely, the method o f arriving at the percentage o f participation o f the Federal
reserve banks.
The present percentages which are shown in the attached statement
are based upon the capital and surplus o f the Federal reserve banks as o f January 1,
and i t is suggested that these percentages be brought up to date at the fir s t o f each
year • During the past year the Federal Reserve Bank o f Boston has withdrawn from
participation in these foreign accounts and it s share has been assumed by the Federal
Reserve Bank o f New York which w ill be glad to continue on that basis next year or
divide up Boston’ s share among the other banks as the committee may decid e.
Relations with foreign banks in which the other Federal reserve banks p a rti
cipate have continued to develop during the past year along the same general lines
heretofore established-
One new account, that o f the Bankovni in Prague, was added
to the l i s t and several o f the old accounts were placed on a more d e fin ite and satis
factory basis by means o f comprehensive agreements entered into to govern the trans
actions ordinarily undertaken between central banks o f issue.
The amount under in
vestment with us for these foreign banks in b i l l s has not fluctuated to any great ex
tent during the year, being in the neighborhood o f $40,000,000 most o f the time, ex
cept during the past month when the to ta l dropped to about $25,000,000 due to heavy
liquidation o f th eir b i l l holdings by de Nederlandsche Bank and the Bankovni.
The
reduction in the b i l l holdings o f these two banks was coincident with the sharp drop
in the foreign exchanges which occurred ea rlier in the month and undoubtedly the pro
ceeds o f their b i l l s were used in the exchange market to meet their urgent need for
dollars to pay commitments here^ prin cipally cotton and grain purchased for export .
\Je
should expect to see the b i l l holdings of de Nederlandsche Bank with us gradually
increase during the winter as in the past they have reached th eir peak early in the
year, la st January aggregating $22,000,000 as against $6,000,000 today.
These foreign
monies carried in b i l l s , of which the sums handled through the Federal reserve banks
form only a part , have been a substantial support to the b i l l market during the past
to
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 3 -
year and an important factor in maintaining lower rates as fo r sane time domestic
demand fo r b ills has not been su fficien t to absorb offerings.
Recently, however, we
believe there has been an appreciable reduction in the amount of foreign owned monies
invested in the discount market although in a ll probability the amount is s t i l l quitrj
substantial.
Following is a b rie f summary of the foreign bank accounts fo r the in fo r
mation of the committee:
Bank of Japan
This account is governed by a formal agreement covering the opening of
current accounts, purchases of b ills , Treasury c e r tific a te s and notes and the ear
marking of gold.
bank.
Copies of i t are on f i l e with each participating Federal reserve
Payment is guaranteed of a ll b ills purchased and provision is made fo r dis
count or sale before maturity of both b ills and Treasury securities purchased.
A
commission of l/4$ per annum is charged on b ills bought and l/8% per annum on
Treasury securities.
The Bank of Japan keeps an uninvested balance of $1,000,000
and about $19,000,000 invested, half in b i l l s and half in c e rtific a te s .
The account
has not fluctuated fo r over a year.
De Nederlandsche Bank
This account is also governed by a formal agreement drawn up along the
same lin es as the Bank of Japan agreement, the important provisions being identical.
Copy of this agreement is also lodged with the participating Federal reserve banks.
De Nederlandsche Bank keeps an uninvested balance of $250,000 and has a substantial
fund invested in b ills which has fluctuated during the past year from about
$22,000,000 to $6,000,000.
This account i s quite active.
At times we receive
large sums from th eir other New York correspondents fo r investment in b i l l s and at
other times we are called on to discount large amounts of b i l l s and pay out the pro
ceeds fo r th eir account in New York.
In addition to purchasing b ills fo r
de Nederlandsche Bank we receive and hold in custody fo r them b ills purchased by
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 4 -
their other New York correspondents.
These bills are collected at maturity and the
proceeds returned to the New York banks for reinvestment when bills are again de
posited with us.
In the past we have earmarked gold for de Nederlandsche Bank but
are holding nothing for them at this time.
As long as the account is conducted on
the present satisfactory basis we have agreed to earmark for them without charge.
Where the earmarking of gold is a separate service, a charge of l/l($ per annum or
\/20% per annum is made but this charge is waived in cases where the foreign bank<?
has a satisfactory uninvested balance with us and the account is on a reasonably
profitable basis through commissions earned on investments.
De Javasche Bank.
This account is conducted along the same lines as de Nederlandsche Bank
account and is covered by a similar agreement.
The uninvested balance is $250,000
and approximately $7,000,000 is kept invested in bills,.
Documentary export bills
purchased in Java by that bank are sent to us for collection and credit to their
account and at maturity the proceeds are invested in bills in this market.
The amount
of such export bills on hand for collection has varied from $700,000 to $150,000*,
Although we have eannarked gold for de Javasche Bank, we have none in custody for
them now.
Bankovni urad Ministerstva Financi
This account was opened last June and is not covered by a formal agreement
although it is conducted on practically the same lines as the foregoing accounts.
The Bankovni is temporarily exercising the functions of a central bank of issue
pending the establishment of a definitive bank of issue in Czechoslovakia and until
such a definitive bank is established, it has been thought advisable to defer entering
into a close reciprocal agreement with them.
Bills purchased for this account are
guaranteed and there is an undertaking to discount them before maturity for which the
regular commission of l/4/o per annum is charged.
The uninvested balance in this ac
count is $100,000 and the only transaction we have undertaken for them is the
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 5 ■
"
purchase of b ills , the amount so invested rrmging from $10,000,000 to p ra ctica lly
nothing at the present time.
Swiss National Bank
This account was opened about a year and a half ago and has not assumed
important proportions.
A draft of an agreement in the usual form has been sent to
than and is now receiving th eir consideration.
In the meantime, we are buying b ills
and Treasury c e rtific a te s fo r them fo r the usual commissions and under the usual
guarantee and undertaking to repurchase.
They usually carry about $1,000,000 in
vested in b ills with us and a similar amount in Treasury certifica tes*
Their free
balance has not been substantial representing usually small amounts l e f t temporarily
unemployed.
I t is hoped that this account w i ll be placed on a more defin ite basis
in the near future and that an agreement in the usual form w ill be entered into.
Bank of England. 0/a Reparation Commission
A fter being donnant since early in 1922f a small investment was recently
i
made on this account in Treasury c e rtific a te s . The account is not expected to
assume its former size but w ill probably comprise comparatively small amounts tem
pora rily employed.
This account was opened in 1921 to handle funds of the Repara
tion Commission and because of it s special nature, investments were made in b ills
and c e rtific a te s fo r a commission of 1/®f0 per annum without requiring the mainte
nance of a minimum free balance.
Present holdings:
Treasury c e rtific a te s
$238,000; free balance 0296.62.
Bank of France
Same as Bank of England account.
National Bank of Belgium
No investments.
Current account has remained open to receive
occasional transfer of reparation money.
The balance in the account has been snail
at a ll times ranging from $180,000 downwards.
an
Reproduced from the Unclassified / Declassified Holdings of the National Archives
BANKERS ACCEPTANCES
B a n k o v n i u ra d
M in is t e r s t v a
F in a n c i
De N e d e rla n d
sc h e Bank
De J a v a s c h e
Bank
S w is s N a t l .
Bank
$ 1 0 ,0 4 8 ,9 3 1 .8 0
♦ 2 2 ,0 7 1 ,6 8 0 .7 5
$ 5 ,9 1 3 ,8 3 4 .7 0
$ 2 ,2 7 8 ,2 9 1 .4 4
P u rch ased
4 4 ,1 4 9 ,4 4 7 .0 9
7 1 ,1 1 5 .5 3 8 .9 1
3 2 ,7 8 5 ,8 7 1 .9 8
Matured ^
4 4 ,6 4 9 ,4 4 1 .3 9
8 7 ,0 1 2 ,8 3 8 .6 8
9 ,54 8,93 7 .50
6 ,1 7 4 ,3 8 0 .9 8
Bank of Jap an
T o t a ls
C lo s e o f b u sin ess
12/11/22
On Hand
On hand I I / 28/ 2 3 .
-0 -
$ 40, 3 12 , 738.69
6 ,1 3 2 ,3 9 5 .0 5
1 5 ,9 6 1 ,8 8 8 .6 5
1 7 0 ,1 4 5 ,1 4 1 .6 8
3 0 ,8 0 3 ,4 3 5 .2 1
7 ,4 5 2 ,0 2 8 .0 0
1 5 ,8 8 5 ,8 5 5 .0 6
1 8 5 ,8 0 3 ,5 9 8 .3 4
7 ,8 9 6 ,2 7 1 .4 7
9 5 8 ,6 5 8 .4 9
7 6 ,0 3 3 .5 9
2 4 ,6 5 4 ,2 8 2 .0 3
$
* A ccount opened June 11, 1923.
TREASURY C E R TIFIC A T ES
Bank of Jap an
S w is s N .B .
Bank of E n g la n d
Bank o f F ra n c e
T o t a ls
C lo s j^ f ^ u s in e s s
1 ,9 7 5 ,5 0 0 .0 0
Matured
9 ,5 0 0 ,0 0 0 .0 0
- 0 -
On hand l l / 2 % / 2 l .
9 ,50 8,00 0*0 0
1 ,9 7 5 ,5 0 0 .0 0
B k . o f Jap an
C lose 13 / 32/22
$ 1 ,0 0 1 ,2 2 5 .3 4
C lo s e 1 1 /2 ^ /2 3
9 9 9 ,7 9 3 .1 2
Bank of Jap an
B a n k e rs A c c e p ta n c e s
$
T re asu ry C e r t i fl cate s
$
250, 446.31
1
3 5 ,1 6 4 .3 3
- 0 -
$
Bk Qf
B a n k o v n i E n g la n d
5 , 890.98
$
3 ,5 9 4 .3 0
1 0 1 , 171.12
$
- 0 -
5 00 .64
Bank o f
E n g la n d
?
$
60.32
T o t a ls
$
82 , 827.19
8 , 207.62
$
9 1 ,3 8 0 .2 9
60.32
60.32
CO
$ 60.32 $
- 0 -
1 , 620, 237.36
m
$ 8 , 623.16
3 ,6 6 6 .6 4
Bank o f
Fran ce
1
345.48 .
$ 3 , 864.10
296.62
$ 8 , 623.16 $ - . 0 - 0 -
T o t a ls
l
O
.
296.62
l
- 0 $ 1 3 ,7 5 7 .5 9
3 , 017.98
B an ko vn i
N .B .o f
B e lg iu m
B k .o f
F ra n c e
- 0 - $ 1 3 , 000.00 $ 2 , 416.70 1 1 ,3 7 9 ,1 1 0 .7 0
0
1
35 , 164.33
1 3 , 757.59
- 0 -$
1
- 0 $
$
9 ,5 0 0 ,0 0 0 .0 0
1 1 ,9 5 9 ,5 0 0 .0 0
l
O
2 9 ,8 5 0 .4 7
2 6 0 ,9 7 2 .6 3
1 2 ,4 5 9 ,5 0 0 .0 0
238, 000.00
238, 000.00
$ 2 8 5 ,9 6 0 .4 5
9 ,0 0 0 ,0 0 0 .0 0
- 0 -
- 0 -
70, 6 17.23
$
2 38 ,00 0 .00
TOTAL COMMISSIONS EARNED
From y V 2 3 to 1 2 /2 8 /2 3 .
N e d e rla n d sc h e B k . J a v a s c h e B k .
S w iss N . B .
- 0 $
2 3 8 ,0 0 0 .0 0
- 0 -
FREE BALANCES
N e d e rla n d s c h e B k . J a v a s c h e B k . S w iss N .B .
7 ,5 8 6 .3 4
C u sto d y c h a rg e on
earm arked g o ld
2 2,2 64 .1 3
$
t
1 0 ,0 0 8 ,0 0 0 .0 0
Purchased
0
1
$ 9 ,0 0 0 ,0 0 0 .0 0
1
0
1
On Hand
Bankers Acceptances
Treasury Certificates
Free Balances
8.6%
$ 2,120,268.26
10.8%
2,662,662.46
1,291,626.00
174,985.64
Richmond
5.2%
1,282,022.67
621,894.00
84,252.3*
Atlanta
A.1%
1,010,825.56
66,429.73
Chicago
13 .9*
3,426,945.20
S t . Louis
i.i%
1,084,788.41
Minneapoli s
1.4%
838,245.59
490,339.50
1 ,662,370.50
526,218.00
406,623.00
Kansas City
4-3*
1,060,134.13
514,258.50
69,670.21
Dallas
l.f><
887,554.15
430,542.00
58,328.55
San Francisco
1.1%
1,750,454.02
849,124.50
115 ,036.85
Total
65.4%
$ 16,123,900.45
New York
M.6%
8,530.381.58
7 ,821,513.00
4.137 .987.00
100.0%
$ 24,654,282.03
*11,959,500.00
Philadelphia
Cleveland
GRAND TOTAL
«
$
1,028,517.00
$
1
139,340.41
225,212.99
71,290.44
55,088.07
*
1 ,059,635.23
560,602.13
I 1,620,237.36
Reproduced from the Unclassified I Declassified Holdings of the National Archives
PARTICIPATION AMONG FEDERAL RES?fflVE BANKS OF FOREIGN
~ ACCOUNTS AS OF CLOSE OF BUSINESS NOV. 2$, 1923.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
co
M,sc 3
1 5CM U 22
FEDERAL.
OF
RESER VE
NEW
YORK
OFFICE CO R R ESP O N D EN C E
Fr
Governor Strong
m
J * H, C m
------------
o
r ▼
BAN K
D™ - h « h r M(-i W r ,KGoaaittee, to be held ia *ashingtea oa
Deceaber 8, 19 K *
Replying to your confidential aeaoraadaa of Xoveaber 19, dealing witll tkt
prograa recoaaeadod by the coaaittee on open a&rket operationa and approved by the
governors' conference, I have had assea bled in parallel columns figures for 1922 and
1928 shoving i
1.
2.
5.
4.
5.
Prevail lag noney rates,
let gold iaports,
Department of Labor price index,
Earning assets of the Federal Reserve Systea (classified),
Loans, investments, and deaand tlae deposits of eoaaerolal
banks,
and aa appending hereto the stateaent, for yoar inforaation.
Dealing in round millions, the following observations are worthy of notet
BA&ilftG ASSETS Of THE FEDEftAL BBSEEVE SYSTJSM
January 4. 1922.
Discounts
ft Advances
|1,115
U.S. Sec.
Owned
Bills
fotal
$231
$127
$1,471
PU&CaASESt
Between January 4, 1922, aad Jane 7, 1922 (a period whmm $500 earning assets
were liquidated), the Federal Reserve Systea purchased $587 additional Goveraaent
securities.
This coabinatlon of transactions resalted ia the rearraageaont ok the
(then) -t1,174 of earning assets of the Systea as follows*
June 7. 1922.
Met changes.
$ 420
$618
$156
$1,174
-095
-+587
+9
-297
J\
1 \
This purchase of $587 Geveraaeat securities was clearly a wholesoaeo^eration
for that period.
i
SALESt
Since Jnae, 1922, total earning assets i&va changed bat slightly.
aeaorandaa attached*)
Meant iae, tha Systea has resold to the aarket $$27 of
(Soe
I
Reproduced from the Unclassified I Declassified Holdings of the National Archives
,c 3 1 SOM-1 1 - 2 2
FEDERAL
OF
R ESER VE
NEW
B AN K
OFFICE C O R R ESP O N D EN C E
t o .
F rom
J e w
----
n f l r
S t j t m g ________ _______
--- J . H.
_____________
,
*
*
YORK
D ate.
Movember 28,
1925. 192_
s u b j e c t : __________________________________ :___________________________
____ ____
____..... *.....
.
.
....... .........
(Dealing in round millions)t
securities owned, and has acquired $112 additional bills - a net reduction in out
side Investments of $416.
It should be noted that the increase of approximately
£400 in direct advances aad discounts to member banks, since that period, just
about equals the amount of securities resold in the market.
Effect of Such Transactions low Known
These tiro purchase and sale transactions are cited to illustrate the
fact that we now know the effect of purchases when borrowing has reached substantial
HN-- -
proportions, aad the effect of wales, when borrowing is light.
Peg inability of Opea M a rket Portfolio aad of Control
There can be no quest ion as to the general desirability of federal reserve
banks fearing & portfolio of short-term opea market investments that may be liquidated
or resold to the market from time to time, when circumstances warrant•
In this con
nection it seems important that some program be worked out which would similarly bring
andor the control of this comte^U^ the volume of bankers acceptances purchased, rather
than to follow an automatic arrangement of practically talcing bills offered at current
rates, or of permitting various banks fro® time to time to actually bid for round amounts
without regard to market conditions.
The Banks Must Be Ready To Sell 4 b Well is Buy
Many of the Federal reserve banks are always ready to buy these investments j
yet, they exhibit a general reluctance to sell upon occasion, when such a course would
seem desirable.
It seems quite clear that if the purchase recommendation of the open
market committee should be concurred in by the Federal Reserve Board, and the banks
presently proceed to buy in the open market, some agreement as to sales must be "tied
in* on any plan adopted.
f m m
Trends
It is jkot iraprobable^that daring tho early part of 1924 there may be some
Reproduced from the Unclassified I Declassified Holdings of the National Archives
,sc
FEDERAL
3 1 SOM n 22
OF
RESERVE
NEW
BAN K
YORK
OFFICE CO R R ESP O N D EN C E
To____ Governor Strong
F r o m . ______
_____
__
jLH.Case
___________
.
_____
D ate Meveabe r 28* 19E5-*- 192 __
s u b j e c t :--------------------------------------
^
— --------- ---- -- -
... -
-
-------- -----
(Dealing la round Billions)?
recession in business, accompanied by a certain amount of liquidation and lower money
rates*
If this condition should obtain, it may again furnish the same favorable op
portunity for investment as occurred in the early part of 1922.
For the present it
appears aa though the continuation of gold imports, together with the general ac~
ceptance of Secretary MelIon's suggestion for a reduction in taxes, has provided the ^
market with sufficient stimulus to obviate the necessity of having to make purchases
during the remainder of this year.
Knowledge of Treasury Operation*
It is essential that the committee should at all times work in harmony with
the program of the Treasury, lest it be charged that the committee’
s transactions are
creating artificial market conditions for Treasury operations*
Gold Payments
Since August, 1922, our gold payments over the counter exceeded receipts by
about $400.
An acceleration or slowing-up of these payments would ultimately have its
effect upon the reserves of the System; so that a constant sttidy of the gold situation
should be a part of the duty of this committee.
When gold deports do occur, it should
provide a favorable opportunity to acquire open market investments.
. Regular Monthly Meetings
Manifestly, if the program recommended by the open market committee is adopted,
it places squarely upon its shoulders responsibilities of major importance, and these oaa
only be met by frequent regular meetings.
Therefore, if the suggested program is ooacur-
red in by the Federal Reserve Board, I recommend that the committee meet regularly, at
least once each month•
Publicity as te Operation
Proa a publicity standpoint, it would be unfortunate for the System te have
the committee werk parried on In secret.
I therefore recommend that consideration be
given it the question ef the best method ef reporting committee transact lent*
Changes in Money R a te s, Bank Loans, P rice s and Sold Imports s in e * January 1, 1922.
(Dollar figures in millions)
Month of
Jan .1922
r»b.
Mar.
Apr.
Kay
June
July
Aug.
Sap.
Oct.
Nov.
Dac.
Jan.1923
Fab.
Uar.
Apr.
Kay
June
July
Aug.
Sap.
Oct.
No t .
Dac.
*ravailing Market Rates
on
Commercial 90-Day
Paper
Bills
♦ 3/4
5
4 3/4
♦ 1/2
4 1/4
4 1/4
4
4
4 1/4
4 1/2
4 3/4
4 3/4
4 1/2
4 3/4
5
5 1/8
5
5
5
5 1/4
H-%
5 1/4
3
4
3
3
3
3
3
3
3
3
4
4
4
4
4
4
4
4
4
4
4
4
7/8
3/4
3/8
1/8
1/8
3/4
1/8
1/8
i/8
1/8
l/£
1/8
1/8
Net Gold
Department of Labor
Imparts
Price Index
(Accumulative)
$ 26
53
85
96
101
113
155
173
196
2CO
215
238
263
270
275
284
329
34£
375
406
433
46l
138
141
142
143
146
150
155
155
153
154
156
156
156
15 7
159
159
156
153
151
15 c
-_rt
ir"
Date
Earning Assets of F. R. System
All Member Banks
All Cousuercial Banka
Discount U. S.
Loans
Demand
Loana
and
Securities Bills
and
and Tima
and
Individual
Held Total Investments Deposits Inveetmenta Deposite
kdvances Owned
Jan.4 ,1922 ♦1,113
Feb.l
838
Mar .1
707
Apr .5
625
5ic
3
420
June?
499
Ju-y5
Aug. 2
400
Sep.6
405
434
Oct .4
ov.1
538
Dec .6
705
6?3
Jar. .3 ,'-^'-1
56?
F el'.7
:.!"r.?
57:
6?j
Apr
:.!ay :
730
June£
”
35
930
Ju.y3
.Vi.j
850
Sep .5
332
o:t.3
37
:iov .7
i53C .
♦231
305
413
463
609
6l3
550
497
508
433
360
312
456
353
345
?39
185
133
94
94
99
95
91
♦127
90
96
98
107
136
155
151
189
236
26,l
267
255
185
2x9
260
276
243
199
133
174
173
243
♦1,471
1,233
1,2 16
1,186
1,226
1,174
1,204
1,048
1,102
1,153
1,209
1,234
1,339
1,107
-.135
-t,194
1,19'1 ,1^6
1,223
1,033
1,123
1.150
1,156
(Daceaber 31, 1921)
♦22,347
♦19,627
1
(June 30, 1922)
24,359
21,427
(June 30, 1922)
♦31,216
♦34,215
(December 29, 1922)
22,460
25,769
(April 3, 1923)
26,332
22,668
(April 3, 1923)
33,402
36,633
(June 30, 1?23)
23,071
26,675
(June 30, 1923)
37,369
33,593
Reproduced from the Unclassified I Declassified Holdings of the National Archives
3
~
wise
3
i soM- 3
FEDERAL
OF
OFFICE
_
RESERVE
NEW
d a t e __________ IJovemt^r
CORRESPONDENCE
Mr. J. H* Case
T O __________ ______________________________________________________
F ro m _ _ ? •
BANK
YORK
R *
3il^.j92_3
SU B JE C T :_____________________________________________________________
Burgess______________ _____ _
________________________________
- 5 attached chart, which shows what the seasonal movements of open market in
terest rates used to be before the Federal Reserve System.
These movements
have largely been ironed out, but the credit changes back of them still
exist and hence the chart is a good guide for determining periods of credit
ease and strength.
On the basis of the foregoing it would seem to iae unwise to make
purchases in any quantity before the first of January unless stock market
speculation became less active; business showed evidence of further recession,
and member bank borrowings showed continued reduction.
If these occur it
would seem clear that small purchases would not affect the market adversely.
By the middle of February, when the spring credit demand begins to be felt
and when there would again be a good opportunity to purchase, the probable
business developments of early 1924 would be clearer.
Thus far no mention has been made of the importance of our carry
ing some portfolio of securities in order to be in the market.
If condi
tions are not right for entering the market in the next few months it seems
to me there will be plenty of opportunity later.
If the Harvard view is
correct and we go on in 1924 to still more active business, it would appear
to be possible to control the situation through higher discount rates.
would at any rate be unwise to feed the flame by purchases now.
It
Such a
period of expansion would almost surely be followed by a somewhat prolonged
period of reduced activity, which would give ample opportunity for the pur
chase of securities.
I note also that John Williams in a recent article in
Reproduced from the Unclassified I Declassified Holdings of the National Archives
MISC. 3. 1-50M-3-?
FEDERAL RESERVE BANK
OF
OFFICE
To
Fronl
NEW Y O R K
CORRESPONDENCE
Mr. J* H. Case
Da t e _
November 30,
192_
S u b je c t
h R. Burgess
- 6 the Harvard Economic Review finds that our foreign trade gave us a debit
balance of $500,000,000 last year, largely due to purchase of foreign se
curities in this market.
If this tendency is continued, as he believes
it will be, the ultimate result will be gold exports*
will be no difficulty in building up our portfolio.
In that event there
m ......
"
"
Reproduced from the Unclassified I Declassified Holdings of the National Archives
(
PER CENT.
PER CENT.
Typical seasonal variation in open raarktt interest rates for 60-90 day
coranercial paper befere and after the establishment of the Federal Reserve
Syitem, Average rates fer each year = 100 per cent.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
FEDERAL
OF
OFFICE
To
F rom
RESERVE
NEW
BANK
YORK
CORRESPONDENCE
Mr. J* H. Case
November 30,
Da t e
192
3
SUBJECT:
Burgess
The wisdom of resuming purchases of Government securities seems
to me to depend very la rgely on what is lik e ly to occur in business and
finance during the coming six months to a year.
There would be very general
agreement to the principle that the Reserve Banks should purchase securities
at periods when liquidation in business seems to be going faster than funda
mental conditions warrant, and that obversely we should s e ll securities when
business is moving forward so rapidly that the tendency has become unduly
speculative in nature,
I think there would also be agreement to the proposal
that the action of the Reserve Banks in these directions should take place
early rather than la te in the course of the movement which i t is designed
to check, because early action is much more e ffe c tiv e .
The present problem
is to determine in what type of movement we now find ourselves.
We have just been through a period of exceptional business and industrial a c tiv ity , in which many new records have been made and in which the
to ta l volume of the country's business was probably larger than in 1920, even
when allnmnfift is made fori normal
since that time*
I t would be natural
K
to expact that such a high rate of a c tiv ity a fter the normal sequence of events
would bring a period of lessened act i v i t y bordering upon depression, and the
movement of production and business between IJhy and September pointed dis
tin c tly in that direction.
Lbre recent data are contradictory with a sharp
recovery in the stock market and increases in many phases of industrial a ctiv
it y .
One unusual phase of business expansion this year has been the maintenance of comparatively easy money conditions.
Expansion has been financed
almost wholly by the steady inflow of gold from abroad, and the earning
Reproduced from the Unclassified I Declassified Holdings of the National Archives
FEDERAL
OF
_____
OFFICE
To
F ro m
H r.
RESERVE
NEW
BANK
YORK
CORRESPONDENCE
J. H. Case
W*
R *
date
November 30,
’
192
3
Subject:..
BurSess
assets of the Federal Reserve Bank have remained p ra ctica lly unchanged.
Com
mercial paper rates at th eir very highest point reached only 5-gyo, as compared
with a 6% maximum maintained for several months in almost every period of pros
perity in th is country in the past, with occasional increases to 8$.
Due largely
to th is unusual situation there are among students of the situation two d ire ctly
opposing views as to the future#
In the le tte r of the Harvard Economic Service for November 19 appears
the following:
” The out*look for the fir s t half of 1924 is for a firm or
moderately risin g price lev el, the maintenance of a normal manu
facturing output, and the continuance of generally good business
conditions * * . No adverse forces are now discernible which
would render the money market an obstacle to the maintenance and
improvement of the general lev el of business . . • But at present
no boom is in sight, and we believe such a development u nlikely."
In the Brookmire Trade Bulletin of November 19 is the follow ing:
‘'The stage is set for business prosperity for the fir s t six
months of 1924 at lea st. We caution clien ts to expect no boom
such as in 1919, but to plan for a big volume of business accom
panied by steadily risin g prices. With this forecast in mind,
our general buying advice is to cover raw material requirements
for from four to six months.11
I f conditions turn out as these investigators expect, we may anticipate
a continued demand for a large volume of credit and an increase rather than a de
crease in the borrowings by member banks at the Reserve Banks.
Any further con
tinued inflow of gold would presumably be used for additional expansion.
The
stage would then appear to be set in much the same fashion as i t was at the be
ginning of this year, except that the memory of 1920 would have become a l i t t l e
more dulled and the temptation to speculation a l i t t l e greater.
I f this is the
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Miac. 3
FEDERAL
OF
OFFICE
To
F ro m
^
RESERVE
NEW
BANK
YORK
November 30,
CORRESPONDENCE
^ aS6
^
W*
192 3
SUBJECT:
R* Burgess
- 3 prospect resumed purchases of Government securities by the Federal Reserve
Banks v/ould seem to be very unwise.
We have at the moment an exceptionally active stock market.
Specu
lation in cotton is more active than ever before in the history of the market.
The t ir e , o il, paper, pig iron, and a number of other industries are carrying
large inventories.
In addition there has developed a type of inventory situa
tion, the influence of which on the credit situation cannot be ignored.
I mean
inventories of unpaid -fo r goods in the hands of consumers in the form of
houses, automobiles, furniture, e le c tric a l equipment, e tc ,, etc*
Purchases
have been made on the instalment plan on a larger scale than ever before in
the past, and any considerable unemployment or diminution in p ro fits would
dump back on the hands of the dealers large quantities of merchandise a.nd real
estate*
In the automobile industry, where this type of expansion has been more
marked than almost anywhere else, the process is going on more vigorously than
ever*
I t is a situation which w ill not be benefited by easier money conditions.
The other point of view in regard to the outlook in business is that
we are lik e ly to come through this business cycle in an en tirely normal fashion,
that in spite of tiie absence of the usual check to expansion in the form of
tigh t money, industry and business w ill continue th eir recession from the high
points of this spring, and we w ill have considerably less active business early
in 1924.
The theory is that the check to expansion has come from within in
dustry i t s e l f .
Over-production w ill lead to under-production without the
necessity for an outside check, and over-consumption sim ilarly to under-con
Reproduced from the Unclassified I Declassified Holdings of the National Archives
misc
j
i
FEDERAL
,
OF
RESERVE
NEW
BANK
YORK
November 30,
OFFICE
To
F ro m
CORRESPONDENCE
Date
lir• J* H. Case
S u b je c t:
192
_
W. R, Burgess
°
- 4 sumption.
From this point of view, the exact position of money rates is
much less important than would be implied by the Harvard Service, for
example.
If this second view of the next few months is business is correct
we might well anticipate a gradual decline in bank loans and in the borrow
ings at the Federal Reserve Bank, particularly if the flow of gold continues.
Under these conditions it might be possible to purchase small amounts of
Government securities without seriously affecting the market, while at the
same time giving some needed encouragement to business.
The problem under
t ese conditions will be to come into the market at the right times and under
the right conditions, so as not to give too great ease to a money market al
ready tending toward easier conditions under two powerful stimuli:
less
active business and continued gold imports.
In view of the two possibilities presented by the present business
situation it seems to me clearly unwise to go forward with any large program
for the purchase of securities.
Sueh purchases can be made wisely only if
and when business appears to be following the second of the two alternatives
outlined above, and if and when member banks liquidate borrowings.
Clearly any policy of buying would also have to take into considera
tion the seasonal swings of credit.
Buying could be done with the least ef
fect on the market at periods when there is normally a tendency for money to
be tight,
Tuese seasonal tendencies are, I think, best illustrated in the
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Washn
S»ffcrring to our tolephona conversation on behalf of Governor Strong I son calling
a moating cif the open market investment comaittoa, to bo hold in Washington on
llan&s^, iDaeoaber third at ten JK.
Board
Casa
Will you JdLndly notify tha ©fehar members of tha
Reproduced from the Unclassified I Declassified Holdings of the National Archives
THE UNDERSECRETARY OF THE TREASURY
W A S H IN G T O N
November 28, 1923.
Dear Mr. JSddy:
Mr. Case told rae in lev/ York that the Open
Market Investment Committee expects to meet in
\feshington Monday December 3d.
I shall be glad
to have the opportunity of hearing the discussion,
and I think the Secretary wishes also to attend.
Very truly yours,
W alter 1. M dy, Esq. ,
S e c re ta iy ,
Federal Reserve Board*
/
/
Reproduced from the Unclassified I Declassified Holdings of the National Archives
O ffic e
C o r r e s p c .i ^ e .
To
Mr. Eddy.
From____
Mr* McClelland
z e
FEDERAL RESERVE
BOARD
DftittNorv -Jiber 19, 1925
Subject:
Governor Crissinger asked me to t e l l you that arrangements
have "been made fo r a meet ing o f the Open Market Gonmittee of Govern
ors here on December 3rd, 1923.
He does not know who is going to
advise the members o f the Committee, but supposes it w ill be done by
New Yoife and suggests that you c a ll Hew York and inquire.
For your information, the members o f the Committee a r f
Governor
Governor
Governor
Governor
Governor
Strong, Chairman
Harding
Horris
Fancher
McDougal
Reproduced from the Unclassified I Declassified Holdings of the National Archives
•
I
V
lonmltir SBm 192$
M | I n f g y e S-Mamtifllf*
2fe»*» will %* n Joiaf M H l a i of Ifeo IMtoral
1MMI0WMI itMtafA IttHli tt>0 OgMMI l&KVlBOt
m i*a«b«r 3*4* at HiOG 4« E*
9l*a*ur«
OOMftilt&OO
II will It# a p m t
to h xr* you proaaat wad ta k * p a rt Ia Dm*
disease io&*
T « | truly y m m t *
&* t* Qrl*ai***r#
®€WWMPllWP'*
» ! • A # W. K * U « * t
aoatotary of the t r a m * ? ,
BasfeiagtOft* B* 0*
-3
^ 3 , - i f . ~v-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
20* 19£$*
SwartWtato..
Ammxlag m m
a o t ^ dtreotad to Hr* Eddy, you ar* advioad
that me Board will h a w a Joint caafewme® with th# Open fturtoat
lKV6»t8M»t Cfcllioitt## at
at 11 A«l»
3fd*
If you car# to be at tha discussion we shall be plaaaad to
ha*a you*
Tt» Saeraiary of th* Treasury b»iag a s»mb«r ax-offialo of
tha Board w ill be given du« notioa of the
aad w a w ill ba
& * A to h a m him jar©ai*t«
Ibry truly yours,
D.';:*GriS«i»g«3Pf
(Jo*©w*ar#
Bern. Oarrard B. Wise ton,
B » tteforftMretaxy of the treasury,
Washington, D.C*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T
3 3 "% ,
Fe d e r a l Re s e r v e Ba n k
o f
New York
Open Market Investment Committee
fo r the Federal Reserve System
My
November 23, 1923
dear Governor Criesinger:
.
■
I
it i o
.
h -
*
<„ _ _
n ^
33
am sending you herewith a copy of the minute#) of the^x,«L*.£
meeting o f the Open Market Investment Committee fo r the Federal
Reserve System held at the Federal Reserve Board in Washington,
November 10, 1925,j also copy of the repor t of the Chairman of
'// V 2 -2.3
the Committee to the Joint Conference - November 1923 with the
schedule referred to therein1 meeting o f the Committee has been called to be held
at the Federal Reserve Board in Washington on December 5, 1923.
tru ly yours,
W. B. Matteson
Secretary o f the Committee
Honorable D. R. Crissinger,
Governor, Federal Reserve Board,
Washington, D. C.
Ends.
*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
OPEN MARKET ITOSSTMSif C C & K O T S E
FOR TEE FEDERAL RESEHVE SYSTEM
Hbvwaber 10, 1923
Meeting hold ia lashing ton, D. C#
Reproduced from the Unclassified I Declassified Holdings of the National Archives
W I R S D REPORT OF OPEN MARKET INVESTMENT COMMITTEE
'
FOR T SkTeD E R A L RESERVE SYSTEM, SUBMITTED TO THE GOVERNORS*'
CONFERENCE ON NOVEMBER 12. 1923, COVERING ACTIVITIES SINCE
ORGANIZATION.APRIL 1, 1923
At the last Governors* Conference, held on March 26, 1923, the
following principles with respect to open market investment operations of
the Federal reserve banks were
adopted:
1*
That the time, manner, character and volume of open
market investments purchased by Federal reserve banks
be governed with primary regard to the accommodation
of commerce and business, and to the effect of such
purchases or sales on the general credit situation-
2.
That in making the selection of op«n market purchases,
careful regard be always given to the bearing of pur
chases of United States Government securities, especi
ally of short dated issues, upon the market for such
securities, and that open market purchases be primarily
commercial investments, except that Treasury certificates
be dealt in* as at present, under so-called ’
’
repurchase"
agreements.
In order to provide for the proper administration of
this policy, the Board ruled that on and after April
1, 1923,the Committee of Governors on Centralised
Execution of Purchases and Sales of Government Securi
ties be discontinued and be substituted by a new com
mittee known as the Open Market Investment Committee
for the Federal Reserve System, this committee to con
sist of five representatives from the Federal reserve
banks and to be under the general supervision of the
Federal Reserve Board, and that it be the duty of this
Committee to devise and recommend plans for the pur
chase and sale and distribution of the open market
purchases of the Federal reserve banks in accordance
with the above principles and such regulations as may
from time to time be laid down by the Federal Reserve
Board*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
2
„
Herewith is presented a report of the activities and operations
of the Committee covering the period from April 1, 1923, (date of the
organization of this Committee) to October 17, 1923, inclusive*
Meetings
Formal meetings of the Committee were held at the Federal
Reserve Bank of Philadelphia, April 13, 1923, and in Washington, D„ C*,
May 23, and June 25, 1923, at which reports of the Committee* s activities
were submitted*
Meeting
April 13,
1923
The first meeting of the new Committee was held in Philadelphia
on April 1$, 1923, at which tho policy covering the open market purchases
of the Federal reserve banks and the administration thereof, as referred
to in the Federal Reserve Board*s letter (X~3689 dated April 7, 1923) was
discussed, it being agreed that it was the duty of this Committee to
devise and recommend plans for thQ purchase and sale and distribution of
the open market purchases of the Federal reserve banks in accordance with
the principles outlined therein, and such regulations as may from time to
time be laid down by the Federal Reserve Board*
Meeting
May 23|
1923
At the meeting of the Committee held in Washington, D„ C^, May
23, 1923* a discussion took place regarding the current credit situation*
the present investment holdings of the Federal reserve banks and of open
market policy*
As a result of the discussion and the general feeling
that an ease in money had recently occurred occasioned partly to an in^
crease in the imports of gold and partly to a lessened demand for credit,,
it was felt that the present afforded an opportune time to dispose of a
moderate amount of the open market investments hold by the System, where
upon it was voted to authorize and direct the chairman to undertake to
arrange with the twelve Federal reserve banks for the sale of $50,000,000
in such securities on a pro rata basis at as early a date as was prac«
ticable*
During the following month the System disposed of not only the
$50,000,000 here referred t©- but an additional $30,000,000 as well*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
-
3
-
With the exception of Government securities held under repur
chase agreement and in miscellaneous reserve accounts, this reduced the
purely investment holdings of the System to approximately $>0 , 0 0 0 , 0 0 0 0f
Treasury notes, the banks having disposed of p ra ctica lly a ll of their
Treasury certificates..
Meeting
of
Advisory
Committee
June 25,
1923
The Committee presented a report at the meeting of the
Advisory Committee of the Federal Reserve Bank Governors, which was
held at the o ffic e of the Federal Reserve Board in Washington, June 25,
1923.
At this meeting a plan covering the distribution of the b ills
purchased by Federal reserve banks was presented to and adopted by the
Committee, and a copy was sent to the Governor of the Federa.1 Reserve
Board and to the Governor
! ransactions
in
Gov11
Securities
by
Federal
Reserve
Banks for
Their Own
Account
of each Federal reserve bank.
Since the organization of this Committee, transactions in
Government securities by Federal reserve banks affectin g their own in
vestment accounts, have resulted in a reduction in th eir total holdings
of £148,000,000 from the to ta l holdings of 0222,000,000 (exclusive of
sales contracts) while holdings of bankers acceptances reflected a re
duction during the period covered of $89,000,000. (see schedule
attached.)
Various orders fo r account of the Treasury amounting to
Treasury
Orders
$359,533,500 have been distributed by the Committee (see schedule
attached.)
Attached are further exhibits containing statements of in
vestments of Federal reserve banks and other data as follows:
1.
WEEKLY REPORT OF OPEN MARKET1 INVESTMENT COMMITTEE
COVERING PERIOD FROM OCTOBER 11 to 17, INCLUSIVE.-
2.
GOVERNMENT SECURITY HOLDINGS OF FEDERAL RESERVE BANKS
AS OF OCTOBER 17, 1923.
3.
COMPARISON OF GOVERNMENT SECURITY HOLDINGS BY
MATURITIES OF ALL FEDERAL RESERVE BANKS
4*
COMPARISON OF EARNING ASSETS OF FEDERAL RESERVE BANKS,
ON APRIL 4, SEPTEMBER 5 and OCTOBER 17, 1923.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 4
Details of the changes in the holdings of Government securities and
"bankers acceptances from April 4, 1923, to October 17, 1923.
NET CHANGE
April 4 - Oct , 17/23
GOVERNMENT SECURITIES
BABK
Boston
ISSUE
purchased
3 3/4/o ) S ept. 15/23 C -I
4 3/8/ - Dec. 15/25 T-N
4 l/4/o - S ept. 15/26 T-N
New York
4 1/4/ - Sept. 15/26 T-N
Phila.
3
4
4
4
5
5
4
4
4
4
4
3/4/
%
l/4/o
l/2/o
3/4/
1/2/
3/4/
l/2/o
1/4/
3/4/
1/2/
-
-
Sept „
Dec.
Mar,
Mar.
June
Sept,
15/23
15/23
15/24
15/24
15/24
15/24
Mar, 15/25
June 15/25
S ep t, 15/26
Mar. 15/27
Dec, 15/27
C-I
C-I
C-I
C-I
T-N
T-N
T-N
T-N
T-N
T-N
T-N
Miscellaneous Bonds
Q00 (redeemed)
0 4 ,694 Q00
$
19, 000
114, 000
369, 800
300, 000
' 802,800
3
3
3
4
4
3/4/o3/4/ 3/4/ I / 4/0 -
%-
4 1 / 4/
4
5
4
4
4
4
4
4
4
l/2/o
3/4/o
3/4/o
l/2/o
3/8/o
3/4/
1/4%
3/4/,
l/2/o
-
June
Sept.
Sept.
Sept.
Dec.
Mar.
Mar.
June
Mar .
Juae
Dec.
Mar *
Sept.
Mar.
Dec.
15/23
15/23
15/23
15/23
15/23
15/24
15/24
15/24
15/25
15/25
15/25
15/26
15/26
15/27
15/27
C-I
C-I
C-I
C-I
C-I
C-I
C-I
T-N
T-N
T-N
T-N
T-N
T-N
T-N
T-N
1,500, 000
420,500
146,500
199, 500
1,098,000
234, 000
200, 000
190, 000
350, 100
4,338,600
Richmond
Atlant a
-0 -
3
4
4
4
4
5
4
3/4%
l/4/o
%
1/4
1 /2 %
3/4%
l/ Z j,
Sept.
Sept.
Dec,
Mar.
Mar,
June
June
0-
15/23
15/23
15/23
15/24
15/24
15/24
15/25
C-I
C-I
C-I
C-I
C-I
T-N
T-N
SOLD
20,000
502.000
215,500
80,000
102.000
59,COO
. 1,000 000
800 000
6,494,000-
10 ,0 0 0 000
10,000,000-
582
350
87
2
46
168
5 ,090
194
68
369
253
1 ,502
000
500
000
000
000
500
000
700
400
800
100
300
8,714 300
1>504
3,734
420
245
5,147
1 ,025
100
40
689
557
32
,775
1
7
29
7,911,500-
000
500
500
500
000
000
500
000
300
100
000
500
800
100
500
15 ,309,300
10,970,700-
-0-
2,000,000 (redeemed)
20,000
502.000
95,500
200.000
102,000
271.5 0
-0-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Atlanta
(cont1d)
Chicago
ISSUE
4 3/S%
T-N
T-N
T-N
T-N
T-N
Miscellaneous Bondsi
3
4
4
4
4
1/4/ l/2/o 3/4/o %/*%
%
Sept*15/23
Dec* 15/23
Mar, 15/24
Mar, 15/24
Mar* 15/27
C-I
C-I
C-I
C-I
T-N
J
NET CHANGE
April 4 - fcct.17/23
SOLD
O
O
BANK
PURCHASE!)
5,700
9, 500
26,000
422, 200
425, 900
1,129,650
9, 500
16, 000
422,700
484,200
1,170, 700
$2, 997, 450
$5> 299, 200
750.000
119.000
17, 549, 000 (redeemed)
17,790,000
114, 500
635, 500
119,000
869.000 $36,208,000
St* Louis
3 3/4/ - June 15/23 C-I
3 3/4/ - Sept,15/23 C-I
4
% - Dec, 15/23 C-I
4 l/4/o - Mar, 15/24 C-I
5 3/4/ - June 15/24 T-N
5 1/2/ - Sept*15/24 T-N
4 3/4/ - Mar,. 15/25 T-N
4 1/2% - June 15/25 T-N
4 3/8/ - Dec. 15/25 T-N
4 3/4% - Mar, 15/26 T-N
4 3/4/ - June 15/26 T-N
4 1/4/ - Sept*15/26 T-N
4 l/2/o - Dec* 15/27 T-N
Miscellaneous Bonds
360.000
851.500
572.500
275,000
___________
3 3/4/ - Sept*1 5 / 2 3 C-I
3 3/4/ - Sept*15/23 C-I
4 1/4/ ~ Sept,15/23 C-I
4
% - Dec. 15/23 C-I
4 l/4/o * Mar. 15/24 C-I
4 l/2/o - Mar, 15/24 C-I
5 3/4/ - June 15/24 T-N
5 1/2/ ~ S ept„l5/24 T-N
4 3/4/ - Mar, 15/25 T-N
4 1/2/ - June 15/25 T-N
4 3/8/o - Dec, 15/25 T-N
4 3/4/ - Mar. 15/26 T*^N
4 1 /4 / - Sept*l5/26 T-N
4 3/4/ - Mar. 15/2? T-N
4 1/2/ - Dec, 15/27 T-N
Misc e ll anecus Bonds
22,500
222,000
2,087, 500
2,157, 500
1,471,000
1, 370, 500
4,124, 900
1,845,500
1,594,700
1,186, 000
6, 273, 300
3, 747, 700
1,384,400
953, 700
7, 205, 500
35, 339,000-
360, 000 (redeemed)
994, 000 (redeemed
5, 293, 000
572,500
1, 843,100
1 i
nnn
-,154,
000
1,285,900
850,600
1, 245, 900
1, 018, 300
300,000
1, 555,900
249, 200
7y 303, 300,
$2, 059, 000 $25, 825, 700
Minn,
2,301,750-
23, 766, 700-
510, 500 (redeemed
O
I,
37,500
224, 000
2,072, 500
2,150, 500
1, 471, 000
1,370,500
4,124,900
1,833,400
1.584.700
2, 828, 500
2, 018, 800
9.026.700
1,409, 400
954,100
6. 933, 900
$35, 646, 700 $38, 550, 900
2,904,200-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
6
BANK
Kan. City
Dallas
ISSUE
3
4
4
4
4
5
4
3/4/= - June
3/4/o - Sept
3/4/ - Sept
1/4/ - Sept.
15/23
15/2 3
15/23
15/23
15/23
15/2 4
15/24
15/24
15/25
15/25
15/25
15/26
15/26
3/4$ - Sept 15/23 C-I
l/ $ - Sept. 15/23 C-I
% - Dec. 15/23 C-I
l/4/o - Mar. 15/2 4 C-I
l/2fo - Mar. 15/24 C-I
3 / 4/0 - June 15/2 4 T-N
3/4/o - Mar. 15/25 T-N
A
A
V
&
153,000
63,000
2,1,500
151,000
27,000
12,000
3
5
4
4
4
3/4$ - June 15/23 C-I
1/2/ - Sept 15/24 T-N
3/4/ - Mar. 15/25 T-N
3/4/ - Mar. 15/26 T-N
1/4/ - Sept 15/26 T-N
Miscellaneous Bonds
191 500
1,000
1 , 919, 200
1, 970,700
5,000
100-000
94,000
7,018, 700
35,310,500
2,500,000
300 000
2,500,000
._.JL0Q0, 000
45, 000
45. 000
AL
.7, 000
615, 000
,
1 , 500, 000
11, 909, 100
1 ,,505,000
2 ,,412, 200
10,000
MET CHANGE
April 4 - Oct, 17/23
1, 414,500
226,000
4,165,000
350,500
7,310,000
San Fran.
SOLD
PURCHASED
C-I
C-I
C-I
C-I
%
Dec.
C-I
l/4fo - Mar.
C-I
C-I
1/2/ - Mar.
l/2% - Sept
T-N
3/4/ - Mar,
T-N
l/2°/o - June
T-N
3/5/ - Dec.
T-N
3/4/0 - Mar.
T-N
1/4/ - Sept
T-N
4 3/4/
Mar, 15/27 T-N
4 1/2/ - Dec. 15/27 T-N
Miscellaneous Bonds
3
3
3
4
4
4
4
5
4
4
4
4
4
-
0
28,291,800-
2,125,000 ( re deemed)
10,000
6,000, 000
300,000
3, 435, 000
1,125,000-
24,000 ( re deemed)
12,764,600
12, 400
1,850,000
3,712,000
92.500
18.455, 500
18.410.500-
061, 087,250 $208, 602, 400
0147.515.150-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 7 -
RECAPITULATION OF CHANGES IN HOLDINGS OF GOVERNMENT SECURITIES
EXCLUSIVE OF SALES CONTRACTS FROM APRIL 4 TO OCTOBER 17, 1923
jfQQQ omitted)
"
Bank
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
Holdings
April 4
Purchases
0 10,054
11,149
25,319
21,317
1,341
2,542
41,597
23,767
10,291
36,858
9,904
27,596
-0-0803
4, 338
-02,997
869
2,059
35,647
7,019
7,310
45
$221,735
$61,087
Holdings
Oct. 17
Net Change
$.494
10,000
8,714
15,309
-0*
5,299
36,208
25,826
38,551
35,311
8,435
18,455
0 3,560
1,149
17,408
10,346
1,341
240
6,258
-07,387
8,566
8,779
9,186
6,49410,0007,91110,971-02,30235 t339*
23,7 672,90428,292*
1,12518,410*
0208,602
074,220
a 147,515-
Sales and
Redemptions
0
NET CHANGES IN HOLDINGS OF BANKERS ACCEPTANCES
EXCLUSIVE OF SALES CONTRACTS FROM APRIL 4 TO OCTOBER 17, 1923
(000 Omitted)
Bank
Boston
New York
Philadelphia
Cleveland
Ricbnond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
Holdings
Oct. 17
Net 0hang e
Apr. 4 - Oct, 17/23
Holdings
April 4
Purchases
Sales and
Maturities
$ 14,565
22,357
28,169
51,436
1,026
26,117
32,001
12,455
2,275
225
2C,130
39,850
$ 35,522
168,189
63,978
81,604
5,327
30,750
121,095
10,110
51
2,376
51,625
47.874
0 41,943
171,390
71, *23
108,532
5,212
51,415
112,617
22,558
2,275
402
42,541
77.285
0
8,144
19,156
20,424
24,508
1,141
5,452
40,479
7
51
2,199
29,214
10,439
o 6,421.
3,2017,74526,928115+
20,6658,478+
12,448*
2,2241,974+
9,084+
29.411-
0250,606
0618,501
0707,893
0161,214
089,392-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 8 -
TREASURY ORDERS EXECUTED BY THE OPEN MARKET INVESTMENT COMMITTEE
_______________ SINCE ITS FORMATION ON APRIL 1. 1923_______________
(To Purchase)
Date of Order
Account
Price
Issue
Amount
100 2/32
$ 7,000,000
Third 4 ^ L. L„
Bonds
Mark et
36, 780,000
Redempt ion
June 15, 1923 Ctfs*
Par
6,553, 500
15, 1923
Philippine GovH
June 15, 1925 Notes
Market
2,500,000
16, 1923
Retirement
Sept* 15, 1923 Ctfs*
Par
" 14-18, 1923
Alien property
Custodian
Sept* & Dec* 1923
Ctfs*
n
29, 795, 000
n
13, 1923
Purchases Proceeds
Treasury Notes
Any Treas*. Notes
F, R* B< holdings
<i
25, 497,100
26, 1923
Purchases Proceeds
Treasury Notes
C-1925, B-1926
A-1927 Treas.Notes
27-28, 1923
Purefcetees Proceeds
Treasury Notes
B-1925, C-1925,
B-1926, A*1927
Treas* Notes
Retirement
3, 1923
Cumulative Sinking
Fund
*May
3-9, 1923
Foreign Obligations
June
11, 1923
n
w
April
ii
Uncalled Victory
Notes
Market
10,967, 500
15,000,000
»»
25,000* 000
Dec. 15, 1923 Ctfs*
Par
10,000, 000
Purchases Proceeds
Treasury Notes
B-1925, C-l$25,
B-1926 Notes
Market
C iv il Service Re
tirement & Dis
a b ility Fund
Dec* 15, 1923 Ctfs,
A-1927 Notes
Par
10, 000, 000
1923
Cumulative Sinking
Fund
Third 4%% U
Bonds
Market
10,000,000
" 11-13, 1923
Cumulative Sinking
Fund
C-1925, B-1926
Treas. Notes
w
13, 1923
Retirement
Sept.15, 1923 Ctfs*
w
24, 1923
n
25,
1923
Cumulative Sinking
Fund
C-1925, B-1926
Notes
*Aug#
h
1923
Cumulative Sinking
Fund
Third 4|$ L*. L*
Bonds
1923
Ret irement
Sept.15, 1923 Ctfs*
99
" 28-29, 1923
n
July
29, 1923
3, 1923
*July
ti
U
Dqc* 15, 1923
"
5,000,000
it
15,000,000
Par
10,643,000
ii
Market
ft
Par
5,000,000
10,000,000
10,000, 000
2,128, 500
Reproduced from the Unclassified I Declassified Holdings of the National Archives
*
9
-
Treasury Orders
(Continued)
Account
Dat e of Or der
Issue
Price
Aug.
16, 1923
Cumulative Sinking Fund
A-1927 Notes
Market
”
21, 1923
Retirement
Sept. 15, 1923
either ctfs*
Par
"
Sept. 15, 1923
either c tfs .
" 23-27, 1923
”
Sept.
*Sept.
,
1 0 000,000
20 ,000,000
Market
6.830.000
Par
3.177.000
Mar. 15, 1924
4 1/2 c tfs .
6, 1923 Retirement
Sept. 15, 1923
either c tfs .
6, 1923 Cumulative Sinking Fund
3rd L.L. 4 l/A% Bds. Market
10 ,000,000
either series
Mar. 15/24 c tfs .
"
28,000,000
3rd L.L. 4 l/4$ Bds.
"
10 ,000,000
3-1925, C-1925
B-1926, A-1927
Treas* Notes
M
10 ,000,000
*Sept, 15, 1923 Foreign Obligations
"20-24, 1923
Cumulative Sinking Fund
27, 1923 Cumulative Sinking Fund B-1925, C-1925,
B-1926, A-1927
Treas. Notes
*Sept. 29, 1923 Foreign Obligations
Oct.
£> 4,643,600
30, 1923 Alien Prop. Custodian
” 14-17, 1923 Alien Prop. Custodian
”
Amount
16, 1923 Cumulative Sinking Fund
Third L.L. 4 l/4%
Bonds
A-1926 Treas.
Notes
T O T A L
"
5,000,000
"
10 ,000,000
Par
1,018,300
$359,53 3,500
^Purchased on Stock Exchange
Participation in these various Treasury orders by Federal reserve banks
has been as follow s;
B0 st on
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$"30,GOO,500
191,537,350
32,667,600
5,272,900
2,867,500
1,794,250
40,897,500
13,715,400
6.279.800
14,139,900
4.180.800
15.580.000
$359,533,500
Reproduced from the Unclassified I Declassified Holdings of the National Archives
weekly report of open market investment committee covering period
_______ OCTOBER 11 TO OCTOBER 17, 1923 (INCLUSIVE)____________
Comparison of Holdings of Earning Assets by Federal Reserve Banks
__ ____________ from March 28 to October 17, 1923
(000 Omitted)
TOTAL
EARNING
ASSETS
Mar*
Apr*
May
June
July
Aug.
Sept.
Oct,
n
«»
28
25
29
27
25
29
26
3
10
17
DISTRIBUTED AS FOLLOWS:
$1 *203,729
1 ,104,489
1 ,178,156
1 ,114,219
1,033,697
1,082,553
1,126,334
1 ,150,022
1 ,143,624
1 ,139,397
Net change
Mar* 28 to Oct. 17 |
64,323-
■^Government
Securities
*Bankers
Acceptances
B ills
Discounted
0249,409
193,810
189,288
134,976
96,284
93,530
91,885
95,142
91,883
94*041
$254,251
274,041
257,818
204,225
176,864
173,485
172,124
172,902
182,407
190,518
$700,060
636,638
731,050
774,963
760,539
815,518
862,008
881,661
869,017
854,521
>155,368-
$ 63,733-
,154,461+
*Including sales contract!
Changes in Holdings of Government Securities and Bankers Acceptances
by Federal Reserve Banks (Exclusive of Sales Contracts) During
_________________
Week Ending October 17, 1923 _____________________
(000 Omitted)
Balance
Oct. 17
Balance
Oct, 10
Net
Change
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$ 3,560
1,149
17,408
10,346
1,341
241
6,258
-07,387
8,567
8,779
9,185
tf
3,560
1,149
17,408
10,289
1,341
277
6,258
3,668
7,385
8,567
8,624
9,185
-0**
-0-0-
TOTALS
$74,221
$77,711
Balance
Oct. 17
Balance
Oct, 10
Net
Change
I
36-03,6682+
-0155+
-0-
8,144
19,156
20,424
24,508
1,141
5,452
40,479
7
51
2,199
29,214
10,439
$■ 6,690
12,024
17,844
28,206
915
9,026
42,499
7
51
2,215
27,967
11,039
§1,454+
7,132+
2,580+
3,698226+
3,5742,020-0-0161,247+
600-
$3,490-
$161,214
$158,483
$2,731+
57+
-0-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DIGEST OF REPORTS RECEIVED FROM ALL FEDERAL RESERVE BANKS
SHOWING DATA REGARDING GOVERNMENT SECURITIES AND OPEN
___________ BILL MARKET CONDITIONS IN ALL DISTRICTS________
Government Securities
Holdings of Government securities by Federal reserve banks have shown
a net reduction of £3, 490,000 during the week.
During the period the Federal Re
serve Bank of St. Louis informed the Committee that they desired to dispose of
their entire holdings of Government securities.
The Treasury applied 01,018,300
4 3/4/o series A-1926 notes on order of October 16, for account of the Cumulative
Sinking Fund, while balance of $ 2,650,000 miscellaneous bonds were sold in the
New York market.
Reports received from the various districts indicate that Liberty Loan
issues have maintained the firm tone that has characterized them since the sudden
decline around the first of the month,,
While most of the Government issues advanced
moderately on good demand from both individuals and institutions, the United States
Treasury 4 l/4/o bonds of 1947-52 displayed the greatest strength, closing the period
at 99 6/32, a net increase of 15/32.
Treasury certificates and notes have been
more or less active, with demand and supply about equal and prices steady.
ings, however, in the New York market of December
4j
Offer
certificates were somewhat in
excess of demand, which selling was attributed in a measure to the adjustment in
the Cash position of depositary banks, due to the Government withdrawal of funds.
Kansas City reports that it is still necessary for brokers in that district to buy
securities in the East to satisfy the local demand.
t
Stock Exchange call money, which opened the period on Thursday> October 11,
at 5/o, ruled easy throughout the week and with light demand from brokers continued
to go lower, money loaning at
4%
at the close of the period, Wednesday, October 17,
Tne immediate feature of the money market during the past week was the larger of
ferings of time funds and easier rates for this class of money.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 3 »
Money was offered at 5 l/4/£ for 60 and 90 da3rs and nominal quotation on longer
dates was 5 l/4/£ to 5 l/2/£*
The change in the situ a-ion was attributed in large
measure to the progressive liquidation of crops, particularly cotton*
The im<
proved grain prices and high price of cotton resulted in tne release of funds ani
the return flow of money, which was forwarded to the crop moving sections e a rlie r
in the year#
Bankers Acceptances
A net increase o f $2,731,000 in b i l l holdings o f a ll Federal reserve
banks occurred‘‘during the week*
On October 16, the Federal Reserve Bank of Dallas requested the New York
bank to purchase fo r th eir account $4,000,000 bankers acceptances*
There have been few new b ills created in the Chicago d is tric t during
the past week with the demand coming mostly from country banks, su fficien t to
absorb a ll new offerings*
inactive*
In Philadelphia conditions continue to be more or less
Offerings have been comparatively heavy, but the demand has been very
nominal with in te rio r banks continuing as principal buyers,, while local banks have
shown a disposition to reduce th e ir p o rtfo lio rather than to increase it*
The supply of b ills in the Boston market declined a l i t t l e , but demand
was about the seme as la st week and continued fa ir with a few country banks
showing interest in buying*
tobacco bills*.
In the supply were fa ir-sized blocks of cotton and
Boston reports that one loca l dealer has discontinued the accept
ance end of his business*
Although supply and demand continued comparatively good in New York,
there was a substantial decrease in both as against the previous week*
The sup
ply, however, continued to be considerably in excess of the demand and dealers*
aggregate p o rtfo lio s increased to about $48,000,000, which is the largest amount
they have held since the end of July 1922*
Cotton b ills predominated in the
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 4 -
market and there were also substantial amounts of grain, sugar; and dollar ex
change b ills *
Dealers expect a better demand fo r b ills during the coming week
i f the present comparatively easy money conditions continue.
Dealers* offering rates remain unchanged, indorsed and unindorsed
b ills offered at 4% fo r the 30* s, 4 l/&f0 fo r the 60* s and 90* s and 4 l/8% to
4 1/4# fo r 120 day b ills .
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Foreign Obligations
Additional purchases of $2,352,000 bonds have been made during
the period on Treasury order of October 4, 1923, authorizing the purchase at
the market on the Stock Exchange of $10,500,000 par amount Third Liberty
Loan 4 l/4)* Bonds from the proceeds of payments by foreign governments, pur
chases on this order to be distributed over a period of two weeks.
Aggregate
purchases to date of $7,698,000 at prices ranging from 98 7/32 to 98 12/32 have
been made as follow s:
Boston
New York
Philadelphia
$
750,000
6,048,000
900.000
f 7,698,000
2,802,000
$.10,500,000
Unexecuted balance
Cumulative Sinking Fund
On October 16, 1923,the Treasury authorized the purchase at par and
accrued interest of $1,018,300 par amount 4 3/4$ Treasury Notes, series A-1926,
due March 15, 1926, from the holdings of the Federal Reserve Bank of St. Louis.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
-
5
-
ITEMIZED STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT
OF ALL FEDERAL RESERVE BANKS FROM OCTOBER 11 TO OCTOBER 17, 1923v _
GOVERNMENT SECURITIES
Issue
Held Under
Sales Contrac
Purchases
Issue
Sal es
Boston
-0-
-
-0-
-
Now York
-0-
-
-0-
-
10,920, 000
Philadelphia
-o~
-
-0-
-
-0-
Cleveland
57,000
-0-
-
-0-
Richmond
-0-
-0-
-
-0-
Atlanta
315,000
26, 500
800
51.450
$393,750
TD2-1923 Ctfs*
TD2-1923 Ctfs*
TM2-1924 ”
B-1927 Notes
Misc* Bonds
331,000
26, 500
5, 800
67.100
$430,400
TD2-1923 Ctfs.
TM2-1924 M
B-1927 Notes
Misc# Bonds
Chicago
-0-
-
-0-
-
St. Louis
-0-
m
1,018, 300
2.650.000
$3, 668, 300
A-1926 Notes
Misc* Bonds
Minneapolis
21,000
20,000
1,116,500
5, 000
2, 500
12, 500
700
46,700
62,100
5, 500
3,000
49,500
12. 500
$1, 357, 500
Kansas City
Dallas
-
100,000
TOTALS
-
0-
$2,063,250
TD2-1923 Ctfs*
TM-1924
"
TM2-1924 11
A-1924 Notes
B-1924
”
A-1925
"
B-1925
”
C-1925
"
A-1926
”
B-1926
"
A-1927
”
B-1927
M
Misc. Bonds
TM-1924 Ctfs.
TM2-1924 "
100,000
177,700
-0-
721,200
-0-
6,502,000
1, 500,000
-0-
0-
155.000
$255,000
San Francisco
6,000
TD2-1923 Ctfs.
'30,000
TM-1924
"
1,119,500
TM2-1924 11
5.000
A*1924 Notes
2, 500
B-1924
"
12,
500
A-1925
"
700
B-1925
”
46,700
C-1925
M
62,100
A-1926
"
5, 500
B-1926
"
3.000
A-1927
"
49,800
3-1927
"
12. 500
Misc. Bonds
$1,355,800
$
TM-1924 Ctfs,
-
0-
-0-
-0-
$5, 554, 500
$19,820,900
Reproduced from the Unclassified I Declassified Holdings of the National Archives
6
-
BANKERS ACCEPTANCES PURCHASED
Maturity
PURCHASES
-Amount
Rate
Boston
1-30 days
31-60 "
61-90 ”
282.000 4%
- 4 1/8/
698.000 4 1/8jo - 4 3/8/
1.315.000 4 1/8/ - 4 3/3/
$2,295,000
New York
1-30 days
31-60 "
61-90 "
Over 90"
3.260.000
3.870.000
1.607.000
143,000
08,880,000
Philadelphia
1-30 days
31-60 "
61-90 "
Cleveland
In other
d istricts
Richmond
31-60 days
61-90 "
Atlanta
Chicago
f 2,103,000
4/
- 4 l/4/*
4 l/8/o - 4 3/8$
4 1/8$ - 4 3/8$
1,748,091
23,590,260
492.000 4/.
724.000 4$
- 4 1/8/,
2.789.000 4 1/8/. - 4 l/4$
$4,005,000
1,424,731
-0-
4,991,000
-
0*
*•
0-
1,293,296
100.000
126.000
$226,000
175.000
120.000
-0-
1,315,960
-05,095,322 Sold
F,R*B.
$6,411,282 N.Y.
4 /.
4 1/8$
5,005,000
1,676,000
2>690,000
52,985,000
-0-
0-
St. Louis
-
Minneapolis
-0-
Kansas City
-
-
0-
Dallas
In other dis- .4,509,136
tr ic ts
San Francisc
117.000
31-60 days
972.000
In other dis
t r ic ts
$1,089,000
T O T A L S
|28,U9,896
4 l/4/o
4 l/4/o
&•
Held Under
Sales Contract?
841,000
2,837,464
1-30 days
61-90 days
In other dis
t r ic t s
MATURITIES
Amount
-
0-
0-
-0-
15,745
-0-
- 03,064,242
197^349 Sold
|3,261,591 Mem. Bks.
4 1/8$
1,689,000
955,000
$25,387,440
$28,324,260
m
m
*
COMPARISON OF THE GOVERNMPtT SECURITY
HOLDINGS BY MATURITIES OF ALL RESERVE BANKS
COMBINED AS OF JtME 14, OCTOBER 25. 19.22, A P T O 4
AND OCTOBER IT. 1923.
:
* Holdings on
June 14. ,19*2
Certificates and Victory
Metes matured 1922
Holdings on
October 25. 1922
** Holdings on
April 4. 1923
♦323,513,000
I 72,938,500
-0-
-0-
46,385,500
43,839,500
-0-
-0-
15, 1923
-0-
48,110,500
-0-
-0-
Sept. 15, 1923
-0-
29,553,000
35,953,500
-0-
Victory Notes, 5/20/23
March 15, 1923
June
-0-
Holdings on
October IT. 1921,
17,350
-0-0-
15, 1923
-0-
-0-
34,011,000
130,000
March 15, 1924
-0-
-0-
2,062,500
3,005,000
Treasury Notes
120.S99.60Q
106.622.3QQ
110.950.500
52.710.600
♦490,498,100
1301,263,800
#182,994,850
*55,845,600
Miscellaneous Gov't Bonds
45.792.000
39,146,300
39,082,910
18,374,440
Pittman Act Certificates
75.500.000
41,000,000
-0-
-0-
Sales Contracts
17.984.750
27.231.300
17.071.350
19.820.900
♦629,774,850
♦408,641,400
♦239,149,110
♦94,040,940
Dec.
T O T A L
AGGREGATE
•Peak of Government security holdings
♦♦Date when new Committee was organized
Boston
New York
15, 1923 -
-c-
-0-
March 15, 1924 -
-0-
-0-
-0-
-0-
Dec.
"
15, 1924 -
$
14,000
-027,000
$
St. Louis
Ri chmond
Atlanta
Chicago
99,500
-0-
-0-
-0-
-0-
221,000
-0-
-0-
-0-
-0-
73,000
-0-
-0-
-0-
-o-
Cleveland
Philadelphia
Minneacolis
$
15,000
-07,000
Kansa8 City
$
Dali as
San Francisco1
Total
1,500
-0-
-0-
27,000
-0-
-0-
248,000
-0-
2,757,000
150,000
2,500,000
17,000
2,500,000
$
130,000
Treasury Notes
1,100,000
-0-
-C-
6,354,500
-0-
-0-
-0-
-0-
Sept. 15» 1924 -
1,002,000
-0-
-0-
2,337,000
-0- *
-0-
-0-
-0-
March 15, 1925 *
920,600
June
15, 1924 - 5*1'
Dec.
15, 1925 • 4 3/3/0
June
15, 1925 -
8,100
,
E
-0-
2,220,000
-0-
214,800
-0-
-0-
273,800
16,800
-o-
-0- ‘
-0-
-0-
-0-
-0-
238,900
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
-0-
- 0-
-n-
-0-
59,000
-0-
-o-
5,000
vl,832,300
-0-
$ 9,428,200
a g g r e g a t e
-0-
2,500
$16,358,700
nftTltPfiftfl
1,876,800
-0-
-0-
a
-0-
-0-
$3,030,700
p
-0-
-0-
-0
Jr.-
C g l
-0-
-0-
-0-
GRAND TOTAL
-0-
-0-
-0-
wijloCvi"* sin00u 8
4,045,800
693,100
-0-
T O T A L
-0-
2,500
-0-
a\A,
-0-
-0-
-0-
»
218,500
-0-
March 15, 1927 - * »
q
1,896,800
10,607,500
-0-
on
L./C.I
-0-
-0-
-0-
i
-0-
3,837,300
- 0-
c>
1,877,500
-0-
Sept. 15. 1926 -
1
11,311,200
-0-
.343,200
....
-0-
1,063,400
.
$
8,023,400
-0-
-0-
2,525,000
4,660,400
-0-
-0-
-0-
14,496,500
10,443,100
-0-
-0-
-0-
4,525,000
-0-
-0-
March 15, 1926 -
6
14,000
3,685,200
-0-
r\A
„
U C•
10,000
-0-
-0-
4 /.
-0-
2,000,000
-0-
270,900
i 8,234,400
$7,000,000
$9,135,400
$55,345/o00
w.nnn
1,148,750
549,300
918,400
1,340,900
235,430
4,425,600
-0-
7,115,710
331,850
1 ,779,500
-0-
18,374,440
43,559,700
$1,148,750
$17,408,000
§10,346,600
$1,340,900
$240* 430
$6,257,900
-0-
$ 7,336,610
$ 8,566,250
$8,779,500
$9,185,400
$74,220,040
1 77.7ro
10.920.000
-0-
721,200
-0-
6,502,000
1 ,500,000
$6,979,100
-0-
$13,388,610
$10,066,250
$3,737,400 $12,068,750
$17,408,000
-0$10,346,600
-0$1,340,900
-0$240,430
-0$8,779,500
-0-
19,820,900
$9,185,400
$94,040,940
Reproduced from the Unclassified I Declassified Holdings of the National Archives
GOVERNMENT SECURITY HOLDINGS OF FEDERAL RESERVE BANKS AS REPORTED TO THE
OPEN MARKET INVESTMENT COMMITTEE AT THE CLOSE OF BUSINESS OCTOBER 17, 1923
EXHIBIT "A*
EARNING ASSETS OF FEDERAL RESERVE BANKS AT CLOSE OF BUSINESS OCTOBER 17, 1923
AS COMPARED WITH HOLDINGS AT CLOSE OF BUSINESS APRIL 4 AND SEPT. 5, 1923
(000 Omitted)
Boston
Bills Discounted
April 4
Sept. 5
Oct. 17
Net change April 4
to Oct. 17
Acceptances Purchased
April 4
Sept. 5
Oct. 17
Net change April 4
to Oct. 17
Government Securities
April 4
Sept. 5
Oct. 17
Net change April 4
to Oct. 17
147,354
70,200
46,042
1,312-
17,065
10,748
10,247
6,818-
10,137
3,763
3,737
6,400-
Total Earning Assets
April 4
Se^t. 5
Oct. 17
74,556
84,711
60,026
Net change April 4
to Oct. 17
14,530-
New York
♦210,603
209,788
170,808
39,795-
27,462
41,271
43,727
16,265+
18,826
18,381
12,069
6,757-
256,891
269,440
226,604
30,287-
Philadelphia
C1 eve land
Richmond
♦60,551
62,400
57,333
♦38,731
47,041
61,172
♦52,063
71,528
73,563
3,218-
28,169
19,866
20,424
7,745-
25,417
17,381
17,408
8,009-
114,137
99,647
95,165
18,972-
Atlanta
♦20,665
52,772
82 , 497
22,441+
21,500+
61,832+
51,506
39,056
24,508
1,026
26,117
8,505
5,452
26,998-
723
1,141
115+
20,665-
Chicago
St. Louie
Minneapolis
♦112,202
74,148
♦28,028
59,575
71,944
♦20 , 466
26,545
29,311
115,062
2,860+
32,696
39,897
42,155
9,45?+
8,845+
24,603+
12,455
389
7
2,275
-050
225
2,012
2,199
12,443-
2,225-
1,974+
1.341
1.341
1.341
2,542
258
241
4b,508
9,476
6,979
23,370
3,668
-0-
11,000-
-0-
2,301-
36,52$-
23,870-
15,557-
54,430
73,592
76,045
49 ,32 4
61,555
88,241
21,615+
38,917+
188,406
123,521
164,196
24,210-
♦28,157
39,114
52,760
4b ,916+
21.346
10,258
10.346
111,583
96,355
96,026
Kansas City
64,353
63,632
71,951
7,598+
15,135
12,856
13,889
1,246-
37,876
39,401
43,250
5,374+
37,906
10,426
10,066
27,340-
66,288
51,552
65,291
997-
Dallas
♦19,533
45,541
22,812
3,279+
20,130
435
29,214
9,084+
11,504
1.779
8.780
2,724-
51,167
47,755
60,806
9,639+
San Francisco
♦56,913
91,442
71,217
Total
♦
695,271
850,094
854,521
14,299 +
159,250+
40 ,753
11,661
11,394
259,379
174,563
190,518
29,359-
69,361-
27,617
9,185
9,135
239,149
98,772
9 4,041
18,432-
145,108-
125,288
112,288
91,796
33 , 492-
1,194,299
1,123,449
1,139,397
54,902-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
EXHIBIT "C"
........
Reproduced from the Unclassified I Declassified Holdings of the National Archives
I -------------- -------" T
OPEN MABKET,INVESTMENT1COMMltTSEChairman/S; Report
|o|nt Conference * November 1923
/ # _..»
..
The secretary’ s report of the operations of the Open Market Invest
ment Committee has been distributed to the members of the Federal Reserve Board
and of the conference.
I t gives a detailed account of the proceedings of the
committee and the usual schedules of transactions, and w ill be submitted for
comn^ent and action by the governors at t^leir separate meeting*
As the committee and its predecessor is the agency through which
transactions in furtherance of the system’ s open market credit policy are executed,
in part, a b rie f review of what has been done should cover the period from
January 1, 1922, to the present time, as a radical change took place in the policy
of nearly a ll of the reserve banks, commencing at about the fir s t named date.
It
was then that, following a greatly reduced volume of discounts, many of the banks
made large purchases of government'securities*
These were on such a scale as to
arouse objection by the Secretary of the Treasury on the grounds that an a r t ific ia l
market was being created - that reserve bank purchases and sales at times might
con flict with the execution of Treasury Department orders - and with new issues
being made - and that investments merely for earnings were not ju stified , espe
c ia lly i f lia b le to cause any in flation of bank credit*
The appointment of the committee, of which the present one is successor,
promptly resulted in uniformity of operations by reserve banks, in a ll the markets;
eliminated con flicts of orders between the Treasury and the banks and between the
banks themselves; » and by centering the distribution of orders in the hands of
the committee, enabled i t to distribute purchases and sales between reserve
d is tric ts so as to promote an active market in many cities, rather than concentrate
the market prin cipally in New York City,
Since the summer of 1922 there has been gradual and continuous liquida
tion of government securities owned by the system, the tota l held on October 31,1920,
Reproduced from the Unclassified I Declassified Holdings of the National Archives
-
2
-
being but 0^2,000,000 against a maximum o f ^618,000,000 on June 7, 1922,
!
^
The important results o f this most significant development in the
credit policy of the system, other than those already mentioned, can now possibly
be summarized as follows:
At the end of the year 1921, following a period of extreme nervousness
as to the solvency o f many large industrial and commercial concerns, and even of
large banking institutions which had made them heavy advances, there s t i l l con**
tinued to be pressure by banks to liquidate loans, and get out of debt to the
reserve system in spite o f the considerable reductions in reserve bank discount
rates which had already been made in a ll d is tric ts .
This pressure was widespread
but especially noticeable in New York and with the type of bank loan described
as "frozen*”
The purchases made by reserve banks steadily supplied new credit to
\
the market and the surplus was at once applied to reducing discounts at the reserve
banks, especially the largereastem ones.
As the large member banks got out of
debt, surplus funds were available for new loans, pressure upon borrowers ceased,
money rates eased appreciably, nervousness shortly disappeared, and a general
s p ir it of enterprise and hopefulness succeeded the depression of 1921*
But it must be recalled that as a general rule, the market w ill always
borrow the minimum of credit from the bank of issue which is required to finance
a given volume of business at the existing price le v e l.
No surplus of tota l
reserve credit was, however, created by the purchases of the reserve banks and no
in flation of bank credit resulted because the discounts by members were reduced
as the investment account increased.
Banks no longer had to pay as heavy a tax,
by way of discount, to the system and the desire to get out of debt was la rg e ly
sa tisfie d .
As a result, whatever may have inspired the purchases by some reserve
banks - whether for earnings (as in most cases) or otherwise - nevertheless the
result was further to moderate the course of liquidation, reduce interest rates
and firm ly establish the foundation for economic recovery.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Throughout the la tte r part of 1922 and early in 1923, the impetus of
the revival, spreading into a ll business, excepting some departments of agri
culture, and affecting in marked decree building operations, wages o f a ll the
building trades, the automobile industry, and stock speculation, threatened to
develop into an unhealthy expansion, unwarranted price advances, and in th eir train
bank loan inflation*
The loans on the New York Stock Exchange reached the largest
to ta l ever recorded,
A moderation of this movement was in part suggested to the
public by the advance in discount rates by three reserve banks from 4% to 4 l/2/>,
i t was undoubtedly further assisted by the sale of reserve bank investments, whicn
had been continuous throughout the period of advancing prices, and which droY$ our
members to increase th eir borrowings; but probably was more than anything else due
to the sensitive state of mind of the public generally, and to the frequently dis
cussed desire among business men to avoid the events of 1919, 1920, and 1921-
But
l i t t l e was needed to restore conservatism*
The system has s t i l l also been confronted with a problem of major im
portance, since January 1922, in the large net imports of gold, the to ta l for the
period down to the la te st reports available being $4 3 2 , 9 3 8 , 8 2 2 .
Had the earning
assets of the reserve banks remained unchanged at the January 1922, figure
$1,471 m illions this addition to our gold stock inevitably would have caused a
greater expansion of bank loans and currency than has taken place - with a ll the
disorders in prices arising therefrom.
The reduction of earning assets by the
reserve banks, partly through reduced discounts, at times, and largely by the sale
of investments, has probably aided to hold in check any such development*
Down to
about August 1923, this reduction in earning assets had more than o ffs e t net gold
imports and net domestic production of the mines, and i t is only since the usual
seasonal demands of the la te summer and fa ll have caused an increase in members’
borrowings, together with additional gold imports, that this net reduction has
not bsen maintained#
Reproduced from the Unclassified I Declassified Holdings of the National Archives
c
Since the new committee was appointed about six months ago, transact ions
in acceptances have become one of its principal duties, and the importance of this
account has increased with the gradual reduction in holdings of government secur
ities*
Much the same comments as apply to our government investment account, apply
to this account - with the additional feature that the rates for purchases of bills
have a close and important bearing upon our general discount rate*
Transactions in
bills conducted under the committee*s supervision are included in the secretary’
s
report*
The committee is now, or shortly will be confronted with some difficulties
in its bill purchases, unless there is easing of money rates, which in fact does
usually arise after the first of the year*
The market rate for prime bills, now
about 4-1/8% - should normally be about 1% or more below the market rate for prime
commercial paper*
The difference in market rate represents roughly the value of
the bank obligation, for which the acceptance commission is charged, plus broker*s
margins of profit*
While that difference is maintained in the money market at the
present time and usually will be, the difference between the rates at which we buy
bills and our discount rate is less than l/2/£*
If money rates ease, the spread
between reserve bank discount rates and reserve bank buying rates will increase as
the rates for bills are reduced.
If, however, money rates advance, we must advance
our buying rates for bills «* and an increase of only 3/8fs would bring the bill rate
to the level of our discount rate » a wholly anomalous and rather unfortunate
situation*
If we did not advance our buying rate with market rates, all bills would
be dumped on the reserve banks, causing too large an accuimilation, destroying the
broad market for bills which we have struggled to create and possibly defeating
other purposes of policy later mentioned*
To increase discount fates, and so restore the differential, is just at
this time probably not justified, and has the possibility of harm when business
is hesitating and seeking an indication of the attitude of the reserve system
toward the credit situation*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 5On the whole the committee's view is that we can afford to delay any con
siderable change in buying rates, until the New Year’ s developments disclose
whether we shall experience some reduction in members’ borrowings and lower market
rates.
This w ill, however, leave the
mm. i
i f the system hopes
to offset further gold imports by reducing invegjaionts, it w ill necessitate selling
some or a ll of the small balance of $92 m illion o f government securities s t i l l held
by a few of the reserve banks, and then reducing its holdings of b ills , provided,
of course, further large amounts of gold arrive*
The result to the earnings o f some
of the banks would be such as to necessitate the transfer to them of other earning
l/
assets by those banks holding an excess over earning needs, as for example, New
York*
I t would also make it d iffic u lt to avoid an advance in the rate for b i l l
purchases, in case money rates do not ease.
For this reason also a delay in any
change of policy seems desirable.
Finally, quite another view is presented when we consider just what our
policy should be in case the hestitation and uncertainty which seems to have
arisen in some section, notably New England, should threaten a real setback to
business.
7/hile the country is now on the whole prosperous, labor quite fu lly
employed, most m ills busy and with a few exceptions no excess stocks of goods
on hand - there are also some indications of a growth of distrust le s t business
is facing a slump.
Steel orders are lower, production of New England cotton m ills
has recently been reduced, automobile t ir e
business has slowed down, and we have
had a long and rather sharp liquidation in the stock market resulting in a reduc
tion of Stock Exchange loans, estimated at $532,000,000*
I t is the view of the committee that the reserve system should(pot)
j iesita te to restima open market pujrrhnsfis, thereby again reducing bank borrowings
and easing money rates, rather than permit an unwarranted state of mind alone to
disturb the even course of the country*s production and consumption*
There need
A
Reproduced from the Unclassified I Declassified Holdings of the National Archives
c
be little fear of inflation from such a policy if total earning assets are not
allowed to increase; nor are they likely to do so in the absence of speculation;
increasing prices and increasing stocks of goods*
The attached schedules of figures are furnished in detail so as to
obviate the need of quoting them extensively in the body of this report*
Beyond the conclusions so far expressed, a study of the schedules
annexed will disclose in general the growing importance to the banking system as
a whole, of the policies adopted in open market transactions*
The record of the
past two years is convincing evidence of the need for a harmonious program*
The
committee has agreed, at the request of the New %or)n Bank, and subject to the
approval of the Federal Reserve Board and of the in tereslyad Federal reserve banks,
to supervise all foreign transactions, if such course seems to the conference as
likely to promote a uniform system policy#
Respectfully submitted,
(Signed)
BENJ. STRONG
Chairman#
Reproduced from the Unclassified I Declassified Holdings of the National Archives
■O
TOTAL NET DEMAND AND TIME DEFOSITS
NEW YORK CITY CLEARING HOUSE BANKS
(in millions)
Date
Amount
Date
Amount
1923
January
February
March
April
May
6
4,410
13
2
4,255
4,485
9
4,212
20
4,391
16
4,248
27
4,355
23
4,231
3
4.361
30
4,296
10
4,316
7
4, 228
17
4, 339
14
4,235
24
4,351
21
4,190
3
4.361
28
4,129
10
4,281
4,
4,138
17
4, 298
11
4,065
24
4, 220
18
4,007
31
4,266
25
4,025
7
4.218
1
4,096
14
4*214
8
4,073
21
4,264
15
4,133
28
4,222
22
4,123
5
4,220
29
4,165
12
4, 231
6
4,131
19
4, 224
13
4,119
26
4.219
20
4,178
27
4,174
June
July
August
September
October
November
3
4,194
Reproduced from the Unclassified I Declassified Holdings of the National Archives
T
'i4
'
£.__r
( v \/r‘TOTAL EARNING ASSETS
cTT j
1 X
federal
RESERVE BANK OF NEW YORK
(In millions)
Discounts
Bate
Securities
Oiiimed
Acceptances
Bought
Total
1922
January
4
199
98
58
355
F ebruary
1
119
108
37
264
March
1
90
162
32
2.85
April
5
88
132
38
258
May
3
68
211
46
325
June
7
39
192
38
269
July
5
108
171
47
326
August
2
39
158
33
230
September 6
48
161
59
269
October
4
58
163
81
302
November
1
161
67
80
308
December
6
208
65
59
332
January
3
186
121
52
359
|
F ebruary
7
221
52
27
301
|
March
7
200
26
29
256
|
April
4
211
19
27
257
May
2
212
4
54
270
June
6
194
21
74
290
July
3
260
5
40
305
August
1
209
12
40
262
September 5
210
18
41
269
October
3
204
14
22
240
October
31
202
U
52
265
ij
1
]
i
■
1923
Reproduced from the Unclassified I Declassified Holdings of the National Archives
't * TOTAL EARNING ASSETS
fe
federal r e s erve system
(In millions)
Date
Discounts
Securities
Owned*
Acceptances
Bought
Tot al
1922
J anuary
4
1,113
231
127
1,471
F ebruary
1
838
305
90
1,233
March
1
708
413
96
1,216
April
5
625
463
98
1,186
May
3
509
609
107
1,226
June
7
420
618
136
1,174
July
5
499
551
155
1,204
August
2
400
497
150
1,048
September 6
405
508
188
1,102
October
4
434
483
235
1,153
November
1
588
360
261
1,209
December
6
705
312
267
1,284
January
3
628
457
255
F ebruary
7
569
353
185
1,107
March
7
571
345
219
1,135
April
695
239
260
1,194
May
730
185
275
1,191
183
248
1,166
95
199
1,223
1923
735
1923 High)
930)
June
July
1923 High )
1,339)
August
806
94
183
1,083
September 5
850
99
175
1,123
October
3
802
173
1,150
October
31
084
95
92
205
1,181
* Municipal
warrants included
Reproduced from the Unclassified I Declassified Holdings of the National Archives
STREET LOANS
AND
' '
BALANCES OF OUT-OF-TOfN
CORRESPONDENTS
(OOO Omitted)
Street Loans
for account of
1923 Correspondents
.3
10
17
24
31
February
7
14
21
28
7
March
14
21
28
April
4
11
18
25
May
2
9
16
23
29
June
6
13
20
27
July
3
11
18
25
August
1
8
15
22
29
September 5
12
19
26
3
October
10
17
24
31
January
651,623
736, 791
795,426
792* 018
7$0, 285
804,407
801,228
801, 606
792,532
811,739
043, 564
813, 445
810,137
804, 358
841,150
847, 288
837,487
831,029
821,490
814, 377
767, 612
756, 070
756,165
742,084
731,014
681,219
615,146
643, 095
660,136
669,199
653,733
684, 905
664,984
661,937
639, 759
649, 841
654, 246
667,962
637, 821
633, 671
666,309
653,018
632, 380
611,156
* High fo r a ll times.
Street Loans
for own Ac
count
937, 851
815,280
818,045
763, 883
798, 917
774,389
807,873
818,457
864, 710
813,182
799,856
837,699
812,901
862,623
776,453
767, 795
805, 785
864, 538
809,624
787, 450
784,701
779, 419
754, 569
750,120
745,606
758,955
768, 818
710,360
658, 830
636,635
619, 371
557, 887
560,363
534,020
555, 228
552, 438
563, 457
569, 766
557, 856
574,667
531,951
535, 832
537,343
552,506
Total
Street
Loans
1, 589, 474
1, 552, 071
1,613,471
1, 555,901
1, 549,202
1, 578* 796
1,609,101
1,620,063
1,6 57,242
1,624,921
1,643,420
1,651,144
1,623, 038
1, 666, 981
1,617,603
1,615,083
1,643,272
*1,695, 567
1,631,114
1, 601,827
1, 552, 313
1,535,489
1,510,734
1,492,204
1, 476, 620
1,440,174
1, 383,964
1,353, 455
1, 318, 966
1, 305, 834
1, 273,104
1, 242,792
1, 225, 347
1,195,957
1,194,987
1, 202, 279
1, 217, 703
1,237,728
1,19 5,677
1,208, 338
1,198, 260
1,188, 85C
1,169,723
1,163,662
Total Street Loans
for account of
Correspondents
Balance
and balances
for account of
of
Out-of-ToTra
Out-of-Town
Correspondents Correspondents
714,454
760, 567
735, 530
673,109
651,859
667., 879
662,790
659,827
712, 477
708,966
707,295
682,075
658,173
715, 291
690,167
673,385
640,486
647,687
611,557
616,932
597,726
583, 541
600,156
595,934
587, 346
572, 858
636,682
617, 004
606,309
573,394
587, 914
586,174
583,535
563,893
559, 831
576,337
582,419
594,151
575,680
621,406
595,759
621,507
581, 314
594,783
1, 366,077
1, 497, 358
1, 530,956
1,465,127
1, 402,144
1, 472, 286
1, 464, 018
1, 461, 433
1, 505,009
1,520,705
1, 550, 859
1, 495, 520
1, 468, 310
1, 519, 649
1, 531, 317
1,520,673
1, 477, 973
1, 478, 716
1,433,047
1, 431,309
1, 365,338
1,339,611
1, 356, 321
1, 338,018
1, 318,360
1,254,077
1,251,828
1,260,099
1, 266, 445
1, 242, $93
1,241,647
1,271,079
1* 248,519
1, 225, 830
1,199, 590
1, 226,178
1, 236, 66 5
1,262,113
1, 213, 501
1,255,077
1, 262,068
1, 274, 525
1, 213, 694
1, 205,939
Reproduced from the Unclassified I Declassified Holdings of the National Archives
/
Exfiuox or aunra or m a im or
u m m a o u m u m or ooveuhm
Cf f x ( > I
0_x
y n tn JJI l U U M T ^ ,
u«s
m xk u u m
to
i w w a e m oatmrm
* * * * * * * * * * * #■* * * *
area wotra
A •••tin* of the Mvlfltorf
of the Poderal Reeerre ftank Governors
was hsld at the office of the Federal aeeerre Board at 10 o'clock &.i. this day,
Presenti
Mr. Oasoy Chairman,
Messrs* Harding, Morris, Pancher, Seay and ttoDoitgal, GoYernore,
K««ir«* VII1« and Martin, Federal Reserve Kgmnt*f
tho following nenbers of the Podoral Reserve Board were
present at tho afternoon session;
0»v«sner Criseinger, Banorable S. M. Dawes, Comptroller
o f tho Currency, and th o Honorable Cimniagka», Miller,
Hamlin and Platt*
Honorable $* P. Gilbert, Jr., Bnder Secretary of tho Treasury
attondod the mooting part of tho ti*#.
Mr. M* B, Angell aloo attended tho neeting part of tho time*
Tho report of the open market invsetaiont oomsi ttee was received and
aeoepted.
Oot raor Mefkmg&l oailed attention to tho faot that all of tho Federal
reserve banks are practically out of Treasury oertifioatee of indebtedness.
The chairman submitted a suggested letter to bo sent to tho goremore
of all Federal reeerre banks concerning the distribution of bills purchased by
Federal reeerre banks,
tho letter is as follows*
The Open Market Investment Committee for tho Poderal
Reserve System, appointed hy the last devernoF*1 Conference,
has given careful ooneideration to tho matter of effecting
an equitable distribution among all Federal reserve banks of
bills purchased in tho open market by tho Poderal Reeerv© Syetem.
The Committee has adopted tho suggestion submitted by
Mr. 0*lara of tho Mow fork hank that suoh distribution bo
side apoa tho basis of tho reserre percentages of the several
banks.
fnder this flan it is proposed by means of a simple
method to distribute eaoh ,«t«k tho aggregate of hills purchased
by the Poderal Reserve System among all ressrve banks in suoh
manner that the amount retained by an^/or allotted to eaoh
fcaak will affoot its reserve position to exactly the sane oxteat as those of all other rosorve hanks*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
fir
mm Z <**
As several of the banks may ia the ordinary course be
purchasing in their local markets an amount of bills greater
than their proportion of the aggregate purchase® of all banks,
it is obvious that la order to mafee this flan effective these
several banks will give off their excess to other banks whose
local punhasee of M i l s are less than their proportion of the
aggregate purchases of the System*
It therefore seems necessary and desirable that the dis
tribution be arranged through one point and it would appear
logical that it should be handled by Mr, Matteson, th© secretary
of the commit.tee la Hew fork.
Once a week each bank’
s proportion of the aggregate pur
chases of the System would be figured on the basis of its re
serve percentage at the close of the preceding week and dis
tribution would be Effected accordingly*
Such banks as may
have purchased ...sore than their proportion would be requested
to make sales from their portfolios to such other bank or banks
as the secretary might indicate, subject, of course, in this
respect to the convenience or any special wishes of the par
ticular banks between which such transac tions would pass*
It is recognized that at the present time most of the
reserve banks are In a comfortable reserve position.
If
and when the time arrives that the reserve percentages of
any of the banks are substantially reduced and they should
consider it desirable that they cease participation for the
time being, the same plan can be readily continued with the
remaining banks*
The Committee proposes to put this procedure into effect
commencing with the business of the week ending July 11 next.
thereupon, after consideration and on motion of Governor Fanoher, seconded by
Governor icDougai, it was
VOTED to adopt for the present the plan as set out in the above stated
letter*
The open aarket rate for the purchases of bills was then discussed*
Each one present made a report of the conditions in his district and it was the
unanimous opinion that there should be no change in pr sent rates for purchases
of bills in the open market nor any change in discount rates*
At thi® point, 1 p. »*, the committee adjourned for luncheon.
The committee reconvened at 21.30 o*clock p. m*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
OPEN m R E B T INV I S H M J T COMMITTEE
FOB TELE FEDERAL BESIRVS S3TSTM
J v m 25, 1923
Meeting held la Washington, D. G.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
REPORT OF OPEN MARKET INVESTMENT COMMITTEE
FOR THE FEDERAL RESERVE SYSTEM SUBMITTED AT
MEETING AT WASHINGTON. D. C, JUNE 2$, 1923
1^ 1 3^1v3
Since the meeting of the Committee at Washington, May 23, 1923, at which
reports were submitted showing the holdings of Government securities owned outright
by all Federal reserve banks at the close of business May 16, 1923, amounting to
approximately |146,000,000, there has been effected a net reduction of about
ft80,-QQQr000_
This reduction consisted of the sale of $50,000,000 which the
Chairman of the Committee was authorized to arrange with the twelve Federal reserve
banks on a pro rata basis in a resolution adopted at the meeting May 23-
In addi-
tion to this §50,000,000 the Federal reserve banks have redeemed their holdings of
Treasury certificates maturing June 15, 1923, amounting to about $2,000,000 and have
made further sales of Government securities both to the Treasury, to be applied on
various Treasury orders, and to the market, to the extent of about £28,00Q_10QQ»
Further changes in investment holdings of Federal reserve banks consisted of sales
by the Federal Reserve Bank of New York of bankers acceptances amounting to
|26,000,000 to Certain of the other Federal reserve banks whose sales of Government
securities were larger than the average proportion of the other banks.
Exhibit D attached reflects the various changes in the earning assets
of the Federal reserve banks during the period covered, of which you will note
Government securities show a decrease of $241,545,000 and acceptances purchased
of £1,962,000 as compared with an increase in bills discounted of £'.135 *341,000.
The total earning assets held by the System were decreased f108,111,000•
Reproduced from the Unclassified I Declassified Holdings of the National Archives
2 -
i
holdings of Government securities and
bankers acceptances follow :
bank
Boston
4 3/8l/o - Dec. 15/25 T-N
4 l/4/fa - Sept. 15/26 T-N
New York
Phila.
IT SECURITIES
PURCHASED
ISSUE
-
0-
$ 1,000,000
800 ,000
1
-0-
4
/o - Dec. 15/23 C-I
4 1/2% - Mar. 15/24 C-I
5 3/4% - June 15/24 T-N
5 1/2% - Sept. 15/24 T-N
4 3/ 4/ - Mar. 15/25 T**N
4 l/2^o - June 15/25 T-N
4 1/4^= - Sept. 15/2 6 T-N
4 3/4# - Mar. 15/27 T-N
4 l/2/o - Dec. 15/27 T-N
Miscellaneous Bonds
19 ,000
89,800
108,800
Cleveland
3
3
4
4
4
4
4
4
4
4
4
4
3/ 4/
- June
3/4°/o - Sept.
- Sept.
- Dec.
1/2% - Mar.
3/4% - Mar.
l/2/i - June
3/8/o - Dec.
3/4/0 - Mar .
l/4% - Sept.
3/47o - Mar.
l/2% - Dec.
l/4%
%
15/23
15/23
15/23
15/23
15/24
15/25
15/25
15/25
15/26
15/26
15/27
15/27
C-I
C-I
C-I
C-I
C-I
T-N
T-N
T-N
T-N
T-N
T-N
T-N
305,000
100,000
84,000
190 ,000
350,100
1,029,100
-0-
Richmond
Atl ant a
Chicago
4
4
4
4
4
4
- Dec.
3/4/ - Mar.
%
15/23 C-I
15/27 T-N
-0345.500
2,000
46,000
168.500
5,000,000
194,700
68,400
369 , 800
253,100
1.202 . 300
7, 650 , 300
NET CHANGE
May 17 - June 20/23
1
1,800,000-0-
7,541,500-
1,504,000 (Redeemed)
305.000
220.000
5,147,000
300
689,100
557,000
32,500
1,775,800
3, 600
29,500
10,263,800
9,234,700-
-0-
-0-
54,250
74,250
215,000
10,000
500
58,300
154,150
437,950
3 63,700-
19,000
17,790,000
99,400
17,870,400-
-0-
1 / 2/0 - June 15/25 T-N
l/4/= - Sept. 15/26 T-N
3/4^o - Mar. 15/27 T-N
1/2% - Dec. 15/27 T-N
Miscellaneous Bonds
SOLD
20,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 3 -
BANK
ISSUE
St, Louis
3 3/4$ - June 15/23
4
% - Dec, i5/23
5 3/4$ - June 15/24
5 1/2 f. - Sept.15/24
4 3/4$ - Mar* 15/25
4 3/8$ - Dec* 15/25
4 1/4$ - Sept*15/26
4 l/Z % - Dec* 15/27
PUPCHASED
C-I
C-I
T«N
$
360,000
851, 500
T-N
T-N
T-N
T-N
T-N
1, 211, 500
Minn,
Kan* City
4 3/4$ - Mar, 15/25 T-N
4 3/8$ - Dec. 15/25 T-N
4 l/4$ - Sept*15/26 T-N
Miscellaneous Bonds
3 3 /4 /. - June 15/23 C-I
4 1 / 4 % - Sept*,15/23 C-I
4
% - Dec* 15/23 C-I
4 1/2% - Mar, 15/24 C-I
4 3/4^ - Mar, 15/25 T-N
4 3/8/S - Dec. 15/25 T-N
4 3/4% - Mar* 15/26 T-N
4 3/<$ - Mar* 15/27 T-N
4 1/2% - Dec* 15/27 T-N
Miscellianeous Bonds
Dallas
4
San Fran*
3 3/4$ - June 15/23 C-I
5 1/2$ - Sept*15/24 T-N
4 3/4$ - Mar. 15/25 T-N
4 3/4$ - Mar, 15/26 T-N
4 1/4$ - Sept*15/26 T-N
Miscellaneous Bonds
%
5, 948, 200
5,948,200
NET CHANGE
May 17 - June 20/23
360,000 (Redeemed)
3, 099, 500
l ’ 368,100
1,154, 000
1 ,203j 600
1, 245, 900
l s 555, 900
249, 200
10,236, 200
237, 900
1,642, 500
1, 069,400
5, 498, 000
8,447, 800
9,024, 700-
2, 499, 600—
7,000 (Piedeemed)
10, 000
20, 000
200, 200
5, 000
100, 000
335, 200
191,500
1, 719,200
5, 615,000
300, 000
1, 505, 000
83,400
845T000
10,266,100
9,9 30,900*
, ,
6, 000 , 000 -
6 000 000
- Dec, 15/23 C-I
45, 000
45, 000
T O T A L
SOLD
$8, 771,050
24,000 (Redeemed)
12, 764, 600
12, 400
1,850,000
3, 712, 000
92,500
18, 455, 500
$91, 447, 050
18, 410, 500$82, 676, 000 —
Reproduced from the Unclassified I Declassified Holdings of the National Archives
'
— 4. -
BANKERS ACCEPTANCES
BANK
PIE CHASES
SALES & MATURITIES
net CHANGE
May 17 - June 20/23
6,2§Q,000
9 , 868,000
$ 3,588,000-
New York
24,430,000
* 62,991,000
38,561,000-
Philadelphia
12,354,000
14,768,000
2,414,000-
Cleveland
10,652,000
22,095,000
11,443,000-
Richmond
649,000
1,108,000
459,000-
Atl ant a
773,000
18,250,000
17,477,000-
Chicago
27,052,000
18,982,000
8,070 ,000+
4,325,000
8,124,000
3,799,000-
81,000
81,000-
Boston
St. Louis
$
Minneapolis
-0-
Kansas City
-0-
-0-
-0-
Dallas
9,553,000
8,952,000
601,000+
San Francisco
8,4-43,000
18,424,000
9 f 981,000-
$104,511,000
1183,643,000
$79,132,000-
TOTAL
* Includes $26,037,100 sold from p o rtfo lio to other Federal reserve banks.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
During the period covered by this report the Committee executed for
account of the Treasury various orders amounting to $>65,539, 600 made up as f o l
lows:
On June 11 the Treasury authorized the purchase of up to $10,000,000
face amount 3 3/
c e rtific a te s of indebtedness due June 15, 1923, for prior
redemption at par and accrued in terest.
Purchases were made against th is order
amounting to $6,553,500 by the following banks:
Boston
$
123,000
New York
3 , 667,000
Philadelphia
1,390,000
Chicago
1,373,500
TO T A L
$ 6,553,500
Details of the other orders amounting to £58,986,100 are shown in the accompany
ing weekly report.
Attached are exhibits containing statements of investments of Federal
reserve banks and other data as follows:
1.
STATEMENT OF GOVERNMENT SECURITY HOLDINGS MAY 23, 1923,
SHOWING QUOTA OF 150,000,000 SALE, ALSO SUBSEQUENT
SALES,. AND REPLACEMENT IN BANKERS ACCEPTANCES.
2.
COMPARISON OF GOVERNMENT SECURITY HOLDINGS 3Y MATURITIES
OF ALL FEDERAL RESERVE BANKS.
3.
GOVERNMENT SECURITY HOLDINGS OF FEDERAL RESERVE BANKS
AS OF JUNE 20, 1923.
4.
COMPARISON OF EARNING ASSETS OF FEDERAL RESERVE BANKS
ON FEBRUARY 28, MAY 16 AND JUNE 20, 1923.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
WEEKLY REPORT OF OPEN MARKET INVESTMENT COMMITTEE COVERING PERIOD
________________ JUNE 14 TO JUNE 20, 1923 (INCLUSIVE)_______________
Comparison of Holdings of Earning Assets by Federal Reserve
________Banks from March 28, 1923 to June 20, 1923__________
(000 Omitted)
TOTAL
EARNING
ASSETS
Mar,
Apr*
May
June
"
"
28
25
29
6
13
20
DISTRIBUTED AS FOLLOWS:
*Government
Securities
|1,203,720 '
1,104,489
1,178,156
1,165,9 61
1,084,638
1,058,401
Net changes
(Mar. 28 to June 20) $
145,319-
*Banker s
Acceptances
B ills
Di scount e d
$249, 409
193,810
189,288
182,751
158,100
121,529
$254,251
274,041
257,818
248,234
218, 618
205,716
$700,0 60
636, 638
731,050
734,976
707,920
731,101
$127,880-
$ 48,535-
$ 31,041+
*Ineluding dealers* sales contracts
Changes in Holdings of Government Securities and Bankers
Acceptances by Federal Reserve Banks ( Exclusive of Sales
Contracts) During the Week Ending June 20, 1923
(000 Omitted)
Government Securities
Net
Balance
Balance
June 13
June 20
Change
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t« Louis
Minneapolis
Kansas City
Dallas
San Francisco
TOTAL
|
3,560
1,149
17,436
20,234
1, 341
243
24,047
11,512
8,785
24, 670
1,779
19,209
$ 3,560
1,149
17,387
10,079
1,341
184
6,257
8,408
7,365
24,191
1,779
9,185
$133,9 65
$90,885
Bankers Acceptances
Net
Bal ance
Balance
Change
June 20
June 13
4910,155_0
5917,7903,1041,420479-010,024-
$ 14,566
39,970
■ 20,119
30,760
1,900
17,057
30,293
9,077
-0129
12,9 69
23,307
$ 14,042
19,730
19,859
30,580
1,750
12,840
41,106
7,359
-0129
13,227
20 ,181
$
52420,2402601801504,21710,813+
1,718-0-0258+
3,126-
$43,080-
$200,147
$180,803
$19,344-
-0-0-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 2 ~
DIGEST OF REPORTS RECEIVED FROM ALL FEDERAL RESERVE BANKS
SHOWING DATA REGARDING GOVERNMENT SECURITIES AND OPEN
_________ BILL MARKET CONDITIONS IN ALL DISTRICTS__________
Government Securities
The Government security holdings of a ll Federal reserve banks have shown
a reduction during the week of $43,080,000.
Reports received from a ll d is tric ts indicate that Government securities
have remained steady and firm during the period with a fa ir ly strong undertone to
the market*
There has been a steady demand for Treasury notes and c e rtific a te s of
indebtedness but the volume has been comparatively small.
The middle western
sections report an active demand for Government securities in their d is tr ic ts .
The firmness in ca ll money rates during the la tte r part of the period
from the average of 4 l/Z% to 5% and 5 l/2% is attributed partly to the temporary
sh iftin g of funds incident to Government operations and the June 15 tax payments.
The demand for commercial paper is lig h t, 5/ being the prevailing rate with a few
prime names given at 4 3 / 4 /.
Bankers Acceptances
There was a net reduction of $19,344,000 in b i l l holdings of Federal re
serve banks during the week.
The banks in the various d is tric ts report that the b i l l market is s t i l l
inactive, the supply being small and the demand about equal to absorb the b ills
that are offered.
Boston reports that what l i t t l e demand there is comes mostly
from commercial houses, while in the Philadelphia d istrict inland banks continue
to be the principal buyers, demand on the part of city banks and corporations being
unimportant.
Rates continue at the same lev els , indorsed and unindorsed b i l l s being
offered at 4*> fo r the 30s, and 4 l/&% for the 60s and 90s.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
-
3 -
Operations for Account of United States Treasury
During the period several orders were received from the Treasury author
izing purchases of Government securities for various accounts as mentioned below.
These orders were immediately transmitted to a ll banks by the Committee and pur
chases have been made as indicated.
Treasury order of Juhe 15 authorizing the purchase of $2,500,000 face
amount of Treasury notes, Series C-1925 for account of the Philippine Government
at the market price but not exceeding par and accrued interest was completed as
follow s:
Boston
Chicago
| 1,500,000 at 99 31/32
1,000,000 at 99 15/16
$ 2,500,000
On orders of June 14 and 18 authorizing the purchase at par of
£29,795,000 c e rtific a te s of indebtedness of any outstanding issues, giving
preference to early maturities, for account of the Alien Property Custodian, the
following purchases were reported:
Boston
£ 1,800,000 December 4s
New York10,390,500
"
"
Philadelphia 500,000
"
"
Cleveland
305,000 September 3 3/4s
Chicago
16,425,500 December 4s
St. Louis
3,000 September 3 3/4s
Kansas City
191,500 December 4s
Dallas
179,500 September 3 3/4s
$29,795,000
TOTAL
The Treasury authorized on June 18 the purchase at par of (15,000,000
face amount of Treasury notes of any series outstanding from the investment hold
ings of the Federal reserve banks for the account "Purchases from Proceeds of
Treasury Notes" which amount was subsequently increased to $25,497,100.
The
Federal Reserve Bank of San Francisco was desirous of disposing of a proportionat
share of their Treasury notes but inasmuch as their holdings consisted only of
Reproduced from the Unclassified I Declassified Holdings of the National Archives
-
4
-
notes which were sellin g in the market at a premium, the Treasury agreed to take
over £10,000,000 Series B-1924 notes at 101 provided the Federal Reserve Bank of
New York could purchase in the market a lik e amount of 4 l/4^ notes Series B-1926
at 99, thus making a to ta l principal payment for combined purchases at a par
average.
The following is a l i s t of the Treasury notes purchased on this order:
Philadelphia
Cleveland
St, Louis
Minneapolis
San Francisco
New Yor k
$
68,400 Series B-1926
tt
A-1925
300
IT
B-1925
557,000
tt
C-1925
689,100
1
1 A-1926
32,500
tl
A-1927
29,500
u B-1925
1,245,900
t»
B-1926
1,555,900
it
A-1927
249,200
tt
3-1926
1,0 69,300
tr B-1924
10,000,000
ti
B-1926
10,000,000
|25,497,100
TOTAL
Treasury order of June 16 authorized the purchase at par for retirement
of up to £10,000,000 face amount of c e rtific a te s of indebtedness of either series
maturing September 15, 1923.
The following purchases aggregating $1,3,94,000
have thus far been reported.
New York
Richmond
Dallas
$ 1,000,000 September 3 3/4s
44.000
"
3 3/4s
30.000
"
4 l/4s
100,000
"
4 l/4s
20.000
11
3 3/4s
§ 1,194,000
TOTAL
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 5 -
ITEMIZED STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT
OF ALL FEDERAL RESERVE BANKS FROM JUNE 14, 1923 TO JUNE 20. 1923
GOVERNMENT SECURITIES
Purchases
Issue
Sales
Issue
Boston
-0-
-
-0-
-
New York
-0-
-
-0-
-
Philadelphia
Cleveland
$
Richmond
Chicago
549,404
19,361,100
TD2-1923 Ctfs
68,400
B-1926 Notes
“0—
5,000
100,000
200
TS-1923 Ctfs
C-1925 Notes
B-1927
"
305.000
220.000
■ 5,147,000
1,504,000
300
557,000
689,100
32.500
1,775,800
29.500
TS-1923 Ctfs
TS2-1923 ”
TD-1923
TJ-1923
A-1925 Notes
B-1925
C-1925
A-192 6
B-1926
A-1927
-0-
105,200
1,900
13,000
$
$
19,000
-0-
Atlanta
Held Under
Sales Contracts
$10 , 260,200
B-1925 Notes
Misc. 3onds
20,000
54,100
$
14,900
200,000
-o-
TD2-1923 Ctfs
B-1926 Notes
Misc. Bonds
-0-0-
74,100
17,790,000
200,000
TD-1923 Ctfs
TD2-1923 "
4,896,800
$17,990,000
St. Louis
440 ,000
851,500
1,800
$1,293,300
TJ-1923 Ctfs
TD-1923 ”
B-1927 Notes
800,000
544,000
1.245.900
1.555.900
249,200
1.800
$ £,39 6,800
TJ-1923 Ctfs
TD-1923 "
B-1925 Notes
B-1926
"
A-1927
B-1927
”
-0-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- b-
GOVERNMENT SECURITIES - ( Cont.)
Purchases
Minneapolis
t
17,000
1,105,000
210,000
15,000
1,500
8 8 ,000
28,000
100
135,500
197,100
93.500
Issue
TS2-1923 Ctfs
TD2-1923 "
TM-1924
"
A-1924 Notes
A-1925 ' "
C-1925
A-192 6
”
B-1926
A-1927
B-1927
Misc. 3onds
$1,890,700
Kansas City
20 ,000
Sal e s
V
V
TD-1923 Ctfs
-0-
San Francisco
-0-
T32-1923 Ctfs
TD2-1923 "
TM-1924
"
A-1924 Notes
A-1925
C-1925
A-192 6
B-192 6
A-1927
B-1927
Misc. Bonds
$ 5,115,900
TD-1923 Ctfs
TJ-1923 n
B-1925 Notes
Misc. Bonds
720,000
498,500
-0-
-0 24,000
10,000,000
TJ-1923 Ctfs
B-1924 Notes
10 ,024,000
TOTALS
Held Under
Sales Contracts
3,311,100
191,500
7,000
200,000
100 ,000
s:
Dallas
115,000
1,105,000
211,000
15,000
1,500
88,000
28,000
1,0 69,400
135,100
152,100
391,000
I ssue
$3,543,100
-
0-
\
$30,643,204
£46, 623,100
BANKERS ACCEPTANCES PURCHASED
Maturity
Boston
1-30 day s
31-60
"
61-90
PURCHASES
Amount
|
370,000
100,000
850,000
Rate
4
- 4 1/8#
4 1 / 8 - 4 l/ 4%
4 1/8 - 4
MATURITIES
Amount
| 1,844,000
Hel d Under
Sales Contracts
| 3,986,000
f l , 320,000
New York
1-30 days
31-60
61-90
Over 90 ”
1,808,000
183.000
117.000
14.000
£ 2 ,122,000
&
4 1/4%
4 1/81
4 1/8% - 4 3/8%
7,532,328
18,788,826
(
Sold
other
14,829, 608
F ,R„Bks.)
$22,361,936
Reproduced from the Unclassified I Declassified Holdings of the National Archives
-
7 -
BANKERS ACCEPTANCES PURCHASED - (Cont.)
PURCHASES
Amount
Maturity
Philadelphia
1-30 days
31-60 "
$
478,000
667, 000
.2, 515, 000
Rate
4
- 4 l/8$
4 i/8 - 4 l/4$
4 1/8 - 4 l/4$
MATURITIES
Amount
$ 3, 920,418
Held Under
Sales Contracts
-0-
$3, 660, 000
Cleveland
31-60 days
61-90
"
In other distr ic ts
5,128
4 l/8$
94,444
5,918,000
4 l/S % •
11,750
5, 638. 366
V 5, 737, 938
Richmond
.0-
Atlanta
200, 000
Chicago
31-60 days
523,000
61-90 ”
2, 901,000
In other dis
tr ic ts
12,586.230
4 1/8$
4 1/8$ - 4 1/4$
150,283
-0-
4, 417, 085
-0-
5, 197, 000
36 5, 000
$16,010, 230
St* Louis
In other dis
t r ic ts
1,145, 000
2, 863, 000
-0-
Minneapol is
-0-
-0-
-0-
Kansas City
-0-
-0-
-0-
Dallas
San Francisco
In other dis
tr ic ts
1,174, 727
1-30 days
31-60
”
In other dis
t r ic ts
916, 536
74, 000
28, 000
3,633, 000
405.000
Ii
$507,000
T O T A L S
1, 315, 000
1
EXHIBIT "3”
* Holdings on
June 14, 1922
Certificates and Victory
Notes matured 1922
$323,513,000
Holdings on
** Holdings on
October 25, 1922
April 4, 1923
$ 72,938,500
-0-
*** Holdings on
May 16, 1923 *
Holdings on
June 20, 1923
0-
-0-
-
17,350
17,350
-
0-
-
0-
-0-
-0-
46,385,500
43.839.500
-0-
0-
48.110.500
-0-
Sept, 15, 1923
"0»
29,553,000
35,9 53 ,500
230,000
Dec*
-0-
-0-
34,011,000
31,909,500
0-
2 062,500
1.967.000
321,500
Victory Notes, 5/20/23
March 15, 3,923
June
15, 1923
15, 3923
March 15, 1924
-
-
0-
-
,
-01.535.000
-0-
0-
-0-
120,599,600
106,822,300
117,550,500
110,624,600
65,489 ,500
1490,498,100
$301,263,800
$189,594,850
$146,283,450
$ 65,811,000
Miscellaneous Gov't Bonds
45,792,000
39.146.300
39,082,910
31,979,060
25,073,680
Pixtman Act Certificates
75,5co,oco
41,000,000
Sales Contracts
17,984,750
27.231.300
10,471,350
10, 626,800
30,643,204
1629,774,650
$408,641,400
$239,149,110
$188,889,310
$121,527,884
Treasury Notes
T O T A L
AGGREGATE
-
0-
-0-
♦Pftak of Government security holdings
**Date when new Committee was organized
*-**Figures used at meeting held at Washington, May 23, ly23
Lq -
Reproduced from the Unclassified I Declassified Holdings of the National Archives
COMPARISON OF THE GOVERNMENT SECURITY HOLDINGS
BY MATURITIES OF ALL RESERVE BANKS C O ^ I N F D AS OF
JUNE 14, OCTOBER 25, 1922, APRIL 4, MAY 16 AND JUNE 20, 1923
EXHIBIT "C"
GOVERNMENT SECURITY HOLDINGS OF FEDERAL RESERVE BANKS (EXCLUSIVE OF SALES CONTRACTS)
AS REPORTED TO THE OPEN MARKET INVESTMENT COMMITTEE
—
AT THE CLOSE OF BUSINESS JUNE 20, 1923________________________
Boston
March
1 5 ,
Treasury
1 9 2 +
-
4$
N e w
-0-
York
Philadelphia
-0 -
- 0-
-0 -
Cleveland
*
Richnond
Atlanta
Chicago
St*
Louis
San
Francisco
Total
-0 -
-0 -
6 ,1 5 4 , 5 0 0
— 0 **
-0 -
•0«
-0-
-0 -
7,000
-0 -
4 ,5 2 5 ,0 0 0
1 1 ,7 8 6 , 5 0 0
-0 -
2 ,3 3 7 , 0 0 0
••O-*
•*0 “
*0“
-0 “
10,000
2,000
-0 -
4 ,6 6 0 , 4 0 0
8 ,0 1 1 , 4 0 0
2 5 0 ,0 0 0
5 ,6 9 2 , 3 0 0
-0 -
-0-
1 0 ,6 3 0 , 4 0 0
-0-
1 1 ,6 0 9 , 1 0 0
-0 -
-0-
2 2 ,9 1 7 , 8 0 0
-0 -
3 ,0 1 7 , 0 0 0
-0-
-0-
3 , 8 8 4 , 4 0 0
2 18,500
-G-
-C-
5 ,0 6 4 , 1 0 0
2 ,412,200
-0-
-0-
2 , 4 1 2 , 2 0 0
214,800
-0-
-0 -
2 7 4 , 2 0 0
1 1 6 . 8 0 0
•o**
m Qm
5 4 4 , 3 0 0
*23,289,700
•o**
-0 -
-0 -
-0-
-0-
♦
3 2 1 , 5 0 0
Notes
-
5&
1 ,1 0 0 , 0 0 0
Sept.
1 5 ,
1 9 2 4
-
5 #
1 ,0 0 2 , 0 0 0
March
1 5 ,
1 9 2 5
-
4^
9 2 0 , 6 0 0
-0 -
3 ,6 8 5 , 2 0 0
-0-
•0 -
-0-
-0-
82,300
Dec.
1 5 ,
1 9 2 5
-
4
8, 1 0 0
-0 -
1 0 ,6 0 7 , 5 0 0
-0-
-o~
-0-
6 9 3 ,1 0 0
-0-
June
1 5 ,
1 9 2 5
-
4^
-0 -
-0-
-0 -
-0 -
-0 -
-0-
1 6 ,8 0 0
850,600
March
1 5 ,
1926
-
4 % f.
-0 -
-0 -
2 ,5 2 5 , 0 0 0
-0 »
—O ’
*
-0 -
1 ,0 6 3 , 4 0 0
1 ,0 1 8 , 3 0 0
Sept.
1 5 ,
1926
-
4#
“0 -
-0-
-0 -
-0 -
-0-
-0-
Dee.
1 5 ,
19 2 7
-
it f .
«o»
-0-
-0-
-0 -
-0 -
-0-
March
1 5 ,
1 9 2 7
-
4 jjl
-0 -
HD-
3 4 6 , 7 0 0
-0 -
-0 -
-0 -
-0-
- 0 .-
_
♦ 3 ,0 3 0 , 7 0 0
-0 -
* 1 6 ,8 1 7 , 7 0 0
* 9 ,1 5 9 , 7 0 0
59,000
-0 -
-0-0-
400
■0 »
* 1 ,8 3 2 , 3 0 0
* 1 ,9 5 1 , 2 0 0
•
TOTAL
. . . .
-0 -
2 38,900
0
0
0
L
3 / #
$
A
Miscellaneous
G R A N D
Dallas
-0 -
1 9 2 4
T
City
-0 -
1 5 ,
O
Kansas
3 2 1 , 5 0 0
June
T
Minneapolis
♦
5 2 9 . 0 0 0
1 ,1 4 8 . 7 5 0
5 6 8 . 3 0 0
9 1 8 . 4 0 0
1 ,3 4 0 , 9 0 0
1 8 3 , 6 8 0
4 , 4 2 5 , 6 0 0
6 , 4 5 7 ,5 0 0
6 ,8 2 0 , 2 0 0
9 0 1 . 8 5 0
1 ,779,500
♦3 ,559,700
# 1 ,1 4 8 , 7 5 0
#1 7 ,386 , 0 0 0
* 1 0 ,0 7 8 , 1 0 0
* 1 ,3 4 0 , 9 0 0
*183,680
*6, 257,900
*8 ,4 0 8 , 7 0 0
♦ 7 ,3 6 4 , 5 0 0
* 2 4 ,191 , 5 5 0
* 1 , 7 7 9 ,5 0 0
♦9 ,1 8 5 , 4 0 0
-0 ♦9 ,1 8 5 , 4 0 0
5 0 8 . 5 0 0
♦65 ,8 1 1 , 0 0 0
2 5 .0 7 3 . 6 8 0
♦9 0 ,3 8 4 , 6 8 0
EARLHJG ASSETS OF FEDERAL RESERVE BANKS AT CLOSE OF BUSINESS JUNE 20, 1923
AS CCMPARED WITH HOLDINGS AT CLOSE OF BUSINESS FEBRUARY 28 AND MAY 16, 1923
EXHIBIT MD'f
(In thousands of dollars)
Bills discounted
»i
n
tt
H
- Feb* 28
May 16
June 20
Boston
New York
Phi lade lp hi a
Cleveland
Richmond
Atlanta
Chicago
St* Louis
$48,565
44,893
54,374
$ 210,222
153,237
138,345
153,556
62,294
71,472
$23,252
65,154
59,278
143,793
63,713
65,128
♦18,505
27,362
35,996
*75,632
♦21,199
32,523
47,569
Net change (Feb, 23 to June 20)
Acceptances Purchased - Feb* 28
»»
n
May 16
M
H
June 20
Net change (Feb* 28 to June 20)
Government securities - Feb# 28
N
H
May 16
It
It
June 20
5,809+
12,545
20,102
18,028
5,483+
28,192
5,770
4,109
Net change (Feb* 28 to June 20) 24,033-
Total earning assets '- Feb# 28
it
it
tt
May 16
tt
tt
w
June 20
89,302
70,765
76,511
Net change (Feb# 28 to June 20) 12,791-
71,377-
17,916+
36,026+
21,335+
17,491+
30,470
75,645
33,964
28,083
22,273
19,360
35,440
42,102
30 ,592
165
2,209
1,750
8,283
30,317
12,340
8,494+
8,223-
4,848-
2,680-
9,806-
63,346-
20,481-
11,684-
27 ,492-
- 0-
HO, 709
96,262
36,778
109,535
108,773
126,570
99,948
45,299
67,263
68,219
22,920+
12,242+
58,637
49,020
178,024
150,683
136,993
41,031-
♦17,351
39,344
49,722
♦16,913
25,978
31,926
4,959
81
-0-
28,890
17,433
8,409
28,287-
♦16,022
25,013
28,416
10,039
11,158
7,359
74,501
25,709
11,155
10,078
Dallas
12, 394+
9,990
958
184
1, b41
1.341
1.341
3,686+
27,341
33,906
41,471
Kansas City
26,370+
13,630+
37,570
19,314
1,936-
8,685+
4,557+
29,070
24,928
17,386
91,170-
84,367
1.585+
48,798
7,149
20,511
289,490
236,031
198 ,,320
91,068
Minneapolis
60,128
61,114
63,337
3,209+
4,959-
12,299
14,564
12,431
182+
33,280
39,663
40,397
7,617+
31,871+
75
129
129
54+
46,058
34,748
24,911
21,147-
63,984
74,721
74,762
10 ,778+
San Fran
cisco
♦50,200
66,247
64,108
Total
♦595,760
697,331
731,101
14,913+
13,908+
135,341+
21,403
12,626
13,227
28,375
31,061
21,496
207,678
281,609
205,716
8,176-
11,618
9,379
1,779
9,839-
49 ,9 3 4
47,983
46,832
3,102-
6, 879-
1,962-
34,747
27 ,596
9,185
363,074
188,339
121,529
25,562-
241,545-
113,322
124,904
94*739
18,533-
1,166,512
1,167,369
1,058,401
108,111 -
June 15.1924
^ ..1 ^ 1 ^ 2 4
I 1 , 100,000
$ 1,002,000
June 15.1925
Dec.15,1925
Mar.15.1926
920,600
-0 -
| 1 , 008,100
-0 -
-0 -
-0 -
-0 -
-0 -
Dec.15.1923
Uar.15.1924.
Boston
-0 -
-0 -
New York
-0 -
-0 -
Philadelphia
345,500
2,000
46,000
168,500
8,685,200
194,700
10, 607,500
2,525,000
68,400
5,147,000
269,500
6,154,500
2,337,000
300
499,100
557.000
32,500
Cleveland
-0 -
-0 -
I
- 0-
Sept.15,1926
I
Dec.15.1927
-0 -
-0 -
-0 -
-0 -
-0 -
355,000
253,100
23,250,900
7,422,800
7,491,200
1,775,800
-0 -
29,500
16,302,200
6,990,000
11,459,200
800,000
-0 “
-0 -
-0 -
-0 -
-0 -
-0 -
-0 -
10,000
-0 -.
25,700
19,648,000
8,124,400
17,775,000
11,924,400
249,200
8,783,400
3,381,200
6,792,200
931,200
50,000
-0 -
2,764,600
1,905/200
2,949 , 700
-0 -
2,412,200
188,800
209,800
30,948,500
7,292,000
7,298,500
-0 -
-0 -
- 0-
-0 -
6,000,000
2,962,150
6,000,000
3,667,000
•*0“
-0 -
27.479.400
8.431,550
-0 -
215,000
17,790,000
-0 -
- 0-
-0 -
-0 -
16,800
693,100
1,063 , 400
-0 -
55,500
-0 -
1,368,100
1,154,000
1,285,900
850,600
1,245,900
1,018,300
1,555,900
20,000
487,900
892,500
238,900
1,069,300
2,000
11,307,300
3,017,000
11,909,100
1,723,500
-0 -
-0 -
-0 -
- 0-
-0 -
D allas
6,000,000
San Francisco
-0 -
T OT AL S
#29,509,500
7,000
-0 -
-0 -
-0 -
-0 -
4,525,000
17,425,000
$277,300
12,400
-0 1,350,000
*13,200,600
♦Date of meeting at Washington at which resolution
was adopted to arrange for sale of 150,000,000
securities from holdings of Federal reserve banks.
5, 000,000
59,000
-0 -
300
- 0-
-0 -
-0 -
171,500
-0 -
283,300
-0 -
Kansas City
-0 -
283,300
-o -
-0 -
-0 -
283,300
Atlanta
-0 -
-0 -
58,300
-0 -
6,000
$ 1,300,000
-0 -
-0 -
-0 -
$ 3,060,400
-0 -
-0 -
Minneapolis
4,830,700
-0 -
-0 -
-0 -
-0 -
t
Biers' Accp'ts
from N.Y. Portfolio
in Replacement
- 0-
-0 -
St • Louis
Total
£old
Mar.15.1927
Richmond
Chicago
Total
Sales Quota
150.000.000
5,000,000
.3,181,500
Reproduced from the Unclassified I Declassified Holdings of the National Archives
STATEMENT OF HOLDINGS OF GOVERNMENT SECURITIES MAY 23, 1923 *
SHOWING QUOTA AND AMOUNT SOLD OF SUGGESTED SALE OF 150,000,000,
TOGETHER WITH SALES WHICH HAVE BEEN SUBSEQUENTLY REPORTED - ALSO THE
EXHIBIT "A"
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Fe d e r a l R e s e r v e B a n k
o f
New York
May 25, 1923
Dear Mr. Crissinger:
I am enclosing for your information a copy of the
3j Vis
report)of tne Open Market Investment Committee for the Federal
Reserve System, submitted to the Gomiaittee at its meeting held
in Washington, May 25, 1923; also a copy of a resolution adopt
ed by the Committee at this meeting covering the sale of
Government securities now held in the portfolios of tho various
Federal reserve banks.
Very truly yours,
Deputy Governor
Ends.
(2)
Honorable D. B. Crissinger,
Governor, Federal Reserve Board
Washington, D. C.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
r
T
Fe d e r a l R e s e r v e B a n k
V
o f
I
^
New York
Open Market Investment Committee
for the Federal Be serve System
May 31, 1923
S i r :
I am sending you herewith a copy of the minutes
S f x z / % % jrM J L
of the meeting|or the Open Market Investment Committee for
the Federal Reserve System held in Washington, D. 0., on
May 23, 1923, as approved "by the members of the Commit
I am also enclosing a copy of the letter sent
7
May 28 to the Governors of all Federal reserve banks with
respeot to the basis on which to effect the sale of
#50,000,000. of Government securities by the System.
Honorable D« R* Crissinger,
Governor, Federal Reserve Board
Washington, D. G.
Enclosure (2)
i
333.-^*/
iS h S
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Igr t o r j|r» Cas©$
M s wiXX aoSoaoftlotigfr roooi$>t of sfflBT..3#$f
to
#@ t&o report of tbo Opoe SSoricat law«2»tem!mt Cowsltfcoofor mm M l a«o&
Boaojrvo ^yofem*
Toa &ra «&?S#o& ttot t o report Isas %oo» graoQtttod to anl _
sidor^d t$y tho Board* s&o Sosara notes v:itt m m . mrnirtss ISttt,3»*) \X
Urn isolation of Say 23.''lll^TTEriSaffillliriS tfeo oaio of
j
gwurmsmt sooartt?
of ike v«ricub fodtaroa Has«r» Imft* to j
^*000*000* obiofiU Is pro-rsfcad onoog tfem. ftio 2&&t*Kti«R of tfeo
j
oeJLo of %h&m w r n m m :i m to ttai sox*?# ssaooul is not la aoootslsaaoo
!
with tt* ?ftUay of tho M «
j g * oooo flBwowwt
tto?Q
j
sw^r ISrnxtsZSjmu
■
— —
—
-
■
•—
— .-
;
Tour -extentton lis feeing
to tfeo Stwd^s d^oanalJ^iiW j
that thooo gavavuratfiat securities agioadd bo dLiflyoood of sm rag^41y__tto ;
aOBuibla uaii.1 all tv* out of tt» tefles. At tha o«b-11#5? o®orta*lt»
l r i r S s K » T R S t you facias this to the stftontlan of th* Ojxm Eartwt j
Imooteaaxt Camlet®® m d tlw various totes la o®&or that tMi follow ;
of Kbo Board
0» cwwljiHi- out in Ifco e&tiroty*
;
Tom will o£oo afcvio# prosptly of tlm sal®# of
gcwomment
teoMtogp of tho vorSoao teHes oaA to w2mt oacfccmfc aaci* of tho baufce
«mtrliRsloA« it a f p o m to t o Boart that tho fcteo So
!
for rno disposition of m , tbMo ssecoritioo* oat «Do Board trmt&
m m f m will I’
ataBtflatoly t Jro actios* to &iopooo of Ui« governments*
terln^ t o » J P ^ * of o w oof to isartoat ooailUcna*
E$M1$ let tho Board bo ttM oot at jraar oar2J*»t Q&mrnximtsem
VOry t*ul# jfos&e*
L' - R,
^
Cri^emior*
Q*,fiW^l*lW3P*
J* tt* 0®o#*
n^OoSBH?
0OVOKCHMP*.
ll«a©snro M i »
Ho®? 'XOi^Sfi B# X#
332,•€ '/
6 ® / ^
/C4#t
. /
/oee 4 ^
/ u £
iUt/2
/
/ r•
* A A *
^/* A
3
*
*
A
3 3B* * 'p * I
*>k *5.<*^ ...^
3 4 t T >
Reproduced from the Unclassified I Declassified Holdings of the National Archives
3 5 3 , —
;
Po&r ter*
I
/'f|
In m * li i llu r ’ s'
I v.%*h
roootpt of y m r l# tt# r o f..
to
m
3 33 .
*—— jT T S jry
rniimtesjo f th*
«
tto -
<1 ?
.
" 3
• * th# O^ta ttaifeftt
IttMMitewit a#saaitt#» fo r !&©■ J^darsl S#-
©try® %st€ K halt! to wAahlngtoa on May #
*nd 0 f tint lafctsr M&t U»y M
.-i*
t© *h# $*v~
ermosfs of a l l F#4.#mX jm t r r t t o t e with
i
2*#s,r« t
to thft hasl* oa *felcfe to affect tha
I .
sal® o f $50,000,000 o f Oovaraaaiit tK D tflU M
’ey tha
’Jpoa S3P* r n i l & H mrntn. tha mlOAle
woa* y©yup aanMnBlattSftft *111 ha plaaad
I
of
P
'
h«Tara his#-
!
Tity twd* y m « »
3«ar«tary to :.sr. H U « >
fir* S. 8. UtMMOS,
!
I
M * K & S M M N BMk,
»•» lot* 3ltgr<
....-a
n il
Reproduced from the Unclassified I Declassified Holdings of the National Archives
OPEN MARKET INVESTMENT CO&lfflTTEE
FCR THE m j M M L RESERVE SYSTEM
M a y
2 3 ,
1 9 2 3
Heating held in Washington, D.C»
Reproduced from the Unclassified I Declassified Holdings of the National Archives
*my 9, X92S.
/
tear
Om w i
t—
h w y
«*n
M
M
m
*8
tlw nraMair of the ownittaM m Ofvx K»rt*t C>p*r*tlon*
■at mu Volnstavy Harris**, « M 3»*t*rt*y t M U m l tgr
?&• r n l l & l
JMHUNb
X Ml Ilm l K to advl*# *©« t!»t th# 3o#r4
g p p t w th# Hit of hmring a **•**»$ Of th* Owwfttoo
ok Volmatsiy Sotrlooo on* • mooting o f tfso §emt%%**
m Opm
Op*r*%iem fcoU «* th# o#m ti»ot «e*
oppror## tl* ji»fpi<ii i*l«i MNfty# a m **«*• Siwmr,
It to tfco wl#h of tbi Hold thot th# i»*tiae§ «of*rv«6
tO *0 hold ftt
a»* aot oo
»t
Ulo*#lan4, M m itttftg Otk#* mottoto *ileh. th# floos*
natr «!*& to Atooooo «i«& tlm mmtomm of th# to© oe»*
mtttooo ifelon &**• a* folottoa to th# *toolfio ®*tt«r«
to %o oon»id#*#4 tf tho 0 » U t « M *
foty truly t w o *
ito» W* Koxton.
flOOIOtof®1#
U**
M# o#oo* B#!«*jr 0€*#mo*f
PodOTOX JNMMWWWI tlmlTi
$SV
t* T*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
/
May 8, 1923
,Tip.t1.er—.date.ri May
CaseJDeputy Governor of* the
Federal Reserve Bank o f New York, suggesting that the Committee on
Open Market Operations and the Committee on Voluntary Services of
the Federal Reserve banks, hold a meeting at Cleveland. Ohio on
June 25th.
*
Upon motion, the Secretary was instructed to ad
vise Mr.Case that the Board wishes the meeting referred
to , to be held in Washington on June 25th, Mr. P la tt
voting "no” . ”
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Fe d e r a l R e s e r v e Ba n k
o f
New York
lay 4, 1S23.
S i r s
At teat ion » Mr* Platt
i
Receipt is acknowledged o f your letted of April 25 in regard to
a meeting o f the Committee on Open Market Operations and the committee on
Voluntary Services of the Federal Reserve Banks.
I had thought that we should
have another meeting of the Committee on Open a&rket Operations by about the
end o f June, say the 25th, and Governor Fancher has suggested that i t might be
held in Cleveland.
Assuming that you or one of the other members of the Board
would like to attend the next meeting o f this Committee, would i t be agreeable
i f we set the date ten tatively fo r June 25th,
I f so, I w i ll communicate with
the other members of the Conmittee to see i f it w ill be convenient fo r them
to meet in Cleveland on that date.
^
I understand, that the Bo&rd thinks well of the idea of having a
meeting of the Qonmittae on Voluntary Services of the Federal Reserve Banks held
at the same time owing to the similarity in membership of the two Committees, end
if the Board approves of the proposed date, I will, as you suggest, invite the
otter member
of the Committee on Voluntary Services to go to Cleveland at the
same time
Respectfully
J. H. CASE,
Deputy Governor»
Federal Reserve Board
Washingt on, D. C•
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
FEDERAL RESERVE SYSTEM
(LEA SE D W IR E SE RV IC E)
T
O
CD
RECEIVED AT W ASHINGTON,
r
U7ed a
Cl eve 1 and 4pm JU1I 19-
'^
^
Grissinger
■
f
WDG
*7
v
/
x Referring telegram thi s date[ Will, arrange to attend meeting of J^xecutive
Committee of Governors in Washington next Monday at 11a.m.
Digitized for namMO
FRASER
2— 11901
onu■
Btoncher
4 0 8p
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
V
FEDERAL RESERVE SYSTEM
(L E A S E D W IR E SE RV IC E)
RECEIVED AT WASHINGTON, D. C.,
67rhb
Richmond 329p Jun 19
/^
^
Grissinger,
Washington.
Will attend meeting in Washington Monday and he prepared to take part in
discussing effect of uiTjiXM Supreme Court decision.
2— 11901
•oramxKENT
primtwoomn
Seay
3 Sip
Reproduced from the Unclassified I Declassified Holdings of the National Archives
TELEGRAM
FEDERAL RESERVE SYSTEM
(L E A SE D W IR E SE RV IC E)
RECEIVED AT WASHINGTON, D?
*
£2G£fa
■Chicago 35Op Juns 19
Qximing.r
>^
W^LShn
n
Subjtct youy ttltgram this &at
m # « M n g menday
McsDougal
353pm
. Will plan to b« on hand lor
Reproduced from the Unclassified / Declassified Holdings of the National Archives
ELEGRAM
FEDERAL RESERVE SYSTEM
(L E A S E D W IR E SE RV IC E)
RECEIVED AT W ASHINGTON, D. C .,
276ffa
18 1923
RECEIVED
JUN
Chicago 444p.-June
18
/ ^
Ci ies'in^er
Subject your wiref Your suggestion relating to Atlanta and
Bichmond decisions noted. Same will he complied with.
2—U»
MM
McDougal
44 7p
«
Reproduced from the Unclassified I Declassified Holdings of the National Archives
■
/
-
FEDERAL RESERVE SYSTEM
A
(L E A S E D W IR E SE RV IC E)
.
^ R
^
RECEIVED AT WASHINGTON, D. C.,
E 9 0ff a
w v
StLonis
June
'—
18
4pm
. **,
/ 7
—
,
•
Id H e cor d a nce
"p
•
your
tel a gr a m
joN i e 1923
E 5 th.
Martin
518p
/
18
will
** ’
fj t* *'**/. t jk
. * :
Washn
2— 1190
oovnQODR niiHnHQ omoa
* V
'
Nj^ir y
—
erisslnger
June
■%
"
tie i n
Washington
morning
H ‘
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Washington o n 3 w m 26t)i*
I ft&y yo*r»*
toto w# Boxfcoa*
Saomary*
Mr# J* B#
Pt44M&
Bm l Kt
f«wr Urate* 1»¥*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
June 1§, 1923
"Telegram dated June 15th , from Mr .Case, Chairman of the Open
Market Investment Committee, advising that a meeting o f that Committee
w ill be held in Washington on June 26.
Noted with approval."
Reproduced from the Unclassified I Declassified Holdings of the National Archives
ELEGRAM
FEDERAL RESERVE SYSTEM
(L E A S E D W IR E SE RV IC E)
Q
RECEIVED AT WASHINGTON?
.2N
159nrs
FewYark 52OP Jun 15
x ^ 6
Crissinger
JUN 15 192S
R F C r------- -
Washn
Referring te my oenversat isn aver the telephene with yeu yesterday I have arranged
far a meeting ef the epen market inveatraent etramittee tt be held in Washingttn June
twenty sixth. I hape that yau as ^©11 as such ether members af tha baard ax ara
available may arrange ta meat with ua
Case Chairman
423PM
1 fr T l k ............
"TBOABDMEEinNG
Reproduced from the Unclassified I Declassified Holdings of the National Archives
7j
-V'
Fe d e r a l R e s e r v e B a n k
0
of
33 /
N e w Yo r k
11, 1923.
Dear Mr. Hoxtonj
I am in receipt of
Your
letter of May 9 k n which you state
that the idea of having a meeting of the Committee on Voluntary
Services and a meeting of the Committee on Open Market Operations
at the same time has been approved by the Board, and that the
proposed date, June 25, is satisfactory.
I note the Board’
s desire that the meetings of these
committees be held in Washington, instead of Cleveland, as was
first suggested.
Very truly yours,
a
A .
J. H. C A S E ^ v
D e p u ^ ^ ^ f e rno r .
William 1. Hoxton, Esq.,
Secretary, Federal Reserve Board,
Wash ingt on, B . C .
&
a
£ \9\<
/
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Fe d e r a l R e s e r v e Ba n k
o f N e w Yo R K
June 2o, 1923
Dear Governor Crissingerj
n
meeting of the Executive Committee of Governors to be held in
Washington next Monday to discuss the par collection decision,
we are giving the matter careful consideration here and I shall
be in a position to discuss the matter with the other governors
Monday along the lines indicated in your telegram.
I have given
some thought to the topics to be discussed at the meeting of the
Open Market investment Committee and would like J ;9 suggest.the_
enclosed program for a joint meeting of the Executive Committee
and the Opeii Market Committee.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
MEETING OF EXECUTIVE COMMIT TEE OF GOVERNORS AND OPEN MARKET INVESTMENT COMMITTEE
TO BE HELD IN WASHINGTON ON MONDAY, JUNE 25
SUGGESTED TOPICS
1.
Report of Open Market committee and discussion of existing credit
conditions.
2.
Suggestion of under secretary of the Treasury to place additional
amounts of gold certificates in circulation.
3.
System policy as to establishing relations with foreign central
banks.
4.
Reimbursement of Federal reserve banks for fiscal agency expenses.
5.
par collection decision.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
V
£
Jtm. 82, m 3 .
f
iwar o o f m w r o«wi
in m u m of m m m *
meam/Mm n « * t ^ o f
tot&XetibieeeH »•
w m »w
,
f » c i » *#**»»
cwatlng s f « *
OnwiWW* • » * « »
Oj*» M M o m I H m n * thte
noted Ky tha sear* »* it« MMrtias
tfuly i w w *
Hit f* a»*fet&#
.ate
.
Mute.--.-.--. .....
ill* ft* Gtotftftf 3^ptt$y
M»s«t mmrnm
Wm t M k | i * %
jvutttt.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
33
'
t /-
June 21, 1923
"Letter dated June 2Oth. {from Mr* J* H* Case,Deputy Governor of
the Federal Reserve Sank of Ifew York, suggesting a program for the
joint meeting of the Executive Committee and the Open Market Committee
to be held next Monday and Tuesday*
Noted*"
Reproduced from the Unclassified I Declassified Holdings of the National Archives
RESOLUTION ADOPTED BY THS OPEN MARKET INVESTMENT COMMITTEE
FOR THE FEDERAL RESERVE SYSTEM AT ITS MEETING HELD IN
WASHINGTON, MAY 23, 1923
Vi/HEREAS, a review o f current credit conditions clearly in
dicates that we are passing through a period o f temporary ease in
the money market;
WHEREAS, the representative o f the New York bank reports that
there has recently been a substantial reduction in the stock exchange
loan account;
WHEREAS, i t develops that there is now and has recently been
a considerable amount o f foreign gold imported into this country;
WHEREAS, the b e lie f exists that there may be substantial de
mands for additional credit this autumn accompanied by possible gold
exports;
WHEREAS, the System as a whole now has a surplus o f such
Open Market Investments;
THEREFORE BE IT RESOLVED, that the present o ffers a favorable
opportunity for the Federal reserve banks to dispose o f an additional
amount o f their Government security holdings and the Chairman is here
by authorized and directed to undertake to arrange with the twelve
Federal reserve banks for the sale o f 050,000,000 o f such securities
on a pro rata basis at as early a date as is practicable.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
MINUTES OF THE MEETING OF THE OPEN MARKED INVESTMENT COMMITTEE FOR THE FEDERAL
RESERVE SYSTEM, HELD AT. THE FEPERAL RESERVE BOARD, WASHINGTON, D. C •,
_____________________
MAY 23. 1923______________________
PRESENT:
Messrs. Harding, Case, Faneher and McDougal
Mr. W* B. Matteson, Secretary of the Comm'-etee
There were also present by invitation:
Vice Governor Platt of the Federal Reserve Board
Mr* J* F* Herson of the Federal Reserve Board
Mr. B. A. McKinney, Governor of the Federal Reserve Bank of Dallas
The Chairman stated that an informal discussion had taken place at
the Federal Reserve Bank of New York on May 22, 1923, Call the members of the
Committee except Governor Harding being present) at which time the Secretary’s
report of the activities of the Committee, since its organization on April 1,
1923, were reviewed*
The Chairman also stated that at the informal meeting
there had been some talk of the current credit situation, the present invest
ment holdings of the Federal reserve banks and of open market policy*
An extended discussion on these subjects followed.
In the course
of the discussion it was brought out thatj^the understanding arrived at at the
last meeting of the Committee on April 13, 1923, with respect to confining bill
purchases at the minimum rate (4$) to short bills only, had not been fully
carried out some longer bills having since been purchased by the New York bank
at the minimum rate.
The Chairman stated that at present New York was not mak
ing purchases at 4^ for a longer maturity than 30 days and that it was the
intention of the officers to gradually cut this down until only 15 day bills
are bought at the minimum rateAs a result of the discussion, and the general feeling that an ease
in money had recently occurred due partly to a lessened demand for security
loans and partly to an increase in the imports of gold, it was felt that the
present was an opportune time to dispose of some of the open market investments
of the System.
The following resolution was thereupon offered by Governor
Fancher, seconded by Governor McDougal and unanimously adopted:
Reproduced from the Unclassified I Declassified Holdings of the National Archives
* 2 -
wWHEREAS, a review o f current credit conditions clea rly
indicates that we are passing through a period of temporary ease
in the money market;
WHEREAS, the representative of the New York bank reports
that there has refcently been a substantial reduction in the stock
exchange loan account;
WHEREAS, i t develops that there is now and has recently
been a considerable amount of foreign gold imported into this,
country;
WHEREAS, the b e lie f exists that there may be substantial
demands fo r additional credit this autumn accompanied by possible
gold exports;
WHEREAS, the System as a whole now has a surplus of such
Open Market Investments;
THEREFORE BE IT RESOLVED, that the present o ffe r s a favorable opportunity for the Federal reserve banks to dispose of an
additional amount of th eir Government security holdings and the
Chairman is hereby authorized and directed to undertake to arrange
with the twelve Federal reserve banks fo r the sale of $50,000,000
o f such securities on a pro rata basis at as early a date as is
practicable."
j
(
j
\
I
/
A further discussion followed with regard to economic conditions gen
era lly and Mr. P la tt suggested that the present was in his opinion an opportune
time fo r the Federal reserve banks to pay out gold notes in cases where such
action is practicable.
The Chairman called attention to the minutes of the fir s t meeting o f the
Open Market Investment Com ittee held in Philadelphia la st month which provide
that the Committee should make an equitable distribution among a l l twelve banks
of b ills purchased by the Federal Reserve System and in this connection presented
a memorandum from Mr* O’ Hara recommending that participation should be made upon
the basis o f the ratios of the reserve percentages of the d ifferen t banks.
$
was understood without formal action that this course would be followed.
The meeting thereupon adjourned.
SECRETARY
It
cw
STATEMENT SHOWING BASIS UPON WHICH $50,000,000 GOVERNMENT SECURITIES
HELD BY ALL FEDERAL RESERVE BANKS ARE TO BE SOLD
Boston
New York
Proportionate Amount
To Be Sold
Based on Earning Assets
Actual Amount of Government
Securities To Be Sold Based On
Holdings of Government Securities
| 2, 750,000
§ 3, 060,400
10,600,000
- 0-
<5^
1
Excess Amount Required To Cover
D eficit (to be replaced with
Bankers Acceptances)
3
310,400
X
Philadelphia
4, 800,000
7, 422,800
2, 622,800
Cleveland
5,050,000
6,990,000
1, 940,000
Richmond
2, 850,000
150,000
X
At lant a
2,500,000
280,300
X
Chicago
6, 200,000
8, 124,400
1, 924,400
St. Louis
2, 450,000
3,381,200
931,200
Minneapolis
1, 750,000
1, 905,200
155,200
Kansas City
3>350,000
7, 292,000
3, 942,000
Dallas
2,450,000
2, 962,150
512,150
San Francisco
5. 250.000
.8. 431.550
3.181,550
| 5o,ooo,ooo
£50,000,000
*15,519,700
TOTALS
* New Tork holds no Government secu rities; Richmond is short J2.700.000 pnd Atlanta is short $2,219,700, making tota
$15,519,700 sales to be spread among other banks u-hich sales, may i f desired, be replaced by bankers acceptances
from p o rtfo lio of Federal Reserve Bank of New York.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
r
REPORT OF OPEN MARKET INVESTMENT COMMITTEE FOR THE
FEDERAL RESERVE SYSTEM SUBMITTED AT MEETING
_________ AT 'WASHINGTON, D. C.« MAY 23, 1923________
Due mainly to the small amount of a ctivity in the Government security
market and b ill market since the organization of the new Committee on April 1, 1923,
there have been few changes in the investments by the Federal reserve banks in these
two items.
Details of the changes in such holdings are given below;
GOVERNMENT SECURITIES
PURCHASED
SOLD
BANK
ISSUE
3 oston
3 3/4?o-Sept .15/23 C-I
New York
4 l/4?o-Sept .15/26 T-N
Phila.
4 3/4/-Mar . 15/27 T-N
4 3/4^-Mar. 15/25 T-N
3 3/4^.-Sept,15/23 C-I
C1 eveland
3
4
4
5
3
Richmond
3/4/°-June 15/23
l/4^-Sept .15/23
l/2^-Mar. 15/24
3/4#-June 15/24
3/4fo-Sept .15/23
C-I
C-I
C-I
T-N
C-I
0 -
$
3 3 /4 ^-Sept,15/23 C-I
Chicago
4 3 / 4 ^-Mar. 15/27 T-N
3 3/4/o-Sept .15/23 C-I
5 3/4%-June 15/24 T-N
4
/o-Dec. 15/23 C-I
4 3 /4 /0- June 15/2 6 T-N
Miscellaneous Bonds
$ 4,694,000
10,000,000
3
Kan. City
4 l/2£-Mar, 15/24 C-I
Miscellaneous Bonds
3 3/4/o-Sept .15/23 C-I
San Fran.
TOTAL
392,000-
3,734,500
2,004,500-
1,500,000
120,000
150,000
40,000
100,000
275,000
-0 -
-0 -
-
0
-
2,000,000
2,000,000-
17,549,000
17 , 468 , 600-
19,600
275,000
1,886,000
300,000
I ?153,300
(3,614,300)
C-I
6,333,300510,500
510,500-
200,000
1,121,000
3 3 / 4 /0-Sept .15/23 C-I
- 0 -
582,000
2,994,000
Minn.
Dallas
10,000,000-
90,000
3 3/4/o-Sept. 15/23
3 / 4 ^-Sept.15/23
$ 4,694,000-
280,000
-0 -
Atlanta
St. Louis
$
NET CHANGE
REDEEMED Apr,4-May 16/23
_____ - 0 -
_____ - 0 -
$2,425,000
$15,084,900
1,414,500
2,735,500-
2,125,000
2,125,000-
- 0 $35 , 603 , 500
~0 $48,263,400-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 2 ~
BANKERS ACCEPTANCES
B^NK
PURCHASES
Boston
$ 8,677,000
SALES & MATURITIES
5,612,000
$ 3,065,000 +
66,981,000
31,047,000
35,934,000 ♦
8,855,000
14,751,000
5,896,000 -
Cleveland
18,857,000
28,270,000
9,413,000 -
Richmond
1,695,000
512,000
1,183,000 +
Atlanta
9,90 5,000
5,70 5,000
4,200,000 +
Chicago
17,144,000
16,004,000
1,140,000 +
5,239,000
6,536,000
1,297,000 -
Minneapolis
- 0 -
2,194,000
2,194,000 -
Kansas City
129,000
225,000
96,000 -
4,765,000
12,269,000
7,504,000 -
15.479.000
24,070,000
8,591,000 ~
$157,726,000
$147,195,000
$10,531,000 +
New York
Philadelphia
St, Louis
Dallas
San Francisco
0
NET CHANGE
Apr.4 - May !
Since the last report the following sales have been made through the
Committee:
May 18, 1923 - St. Louis
May 21, 1923 - Kansas City
$ 2,500,000
4$ - Dec. 15,. 1923 C-I at par & in t.
1,719,500 4 l/2/o«Mar, 15, 1924 C-I at 100 3/32 & ijst.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
CURRENT PRICES ON SHORT DATED UNITED STATES GOVERNMENT OBLIGATIONS
PRICES
ISSUES
DUE
RATE
C ertificates of Indebtedness
Dec. 15, 1923
4
Treasury Notes
June 15, 1924
5 3/4% 101
Sept.15, 1924
5 l/2#
Mar- 15, 1925
%
APPROXIMATE
YIELD
4.00
99 15/16 to 100
to 101 1/4
4.43
101
to
4.50
4 3/4#
100
to 100 l / l 6 4.64
Dec. 15, 1925
4 3/8#
99
1/4
to
99 3/8
June 15, 1925
4 1/2#
99
5/8
to
99 11/16 4.63
Mar • 15, 1926
4 3/4#
100
Sept .15, 1926
4 1/4$
98
1/8
10 1
1 /8
4.57
to 100 l / l 6 4.70
5/8
to
98 3/4
4.66
Attached are exhibits containing statements of investments of Federal re
serve banks and other data as follows:
1.
GOVERNMENT SECURITY HOLDINGS OF FEDERAL RESERVE
BANKS AS OF MAY 16, 1923
2.
COMPARISON OF GOVERNMENT SECURITY HOLDINGS BY
MATURITIES OF ALL FEDERAL RESERVE BANKS
3.
STATEMENT OF ESTIMATED EARNINGS AND EXPENSES
OF ALL FEDERAL RESERVE BANKS
4.
COMPARISON OF EARNING ASSETS OF FEDERAL RESIEVE
BANKS ON FEBRUARY 28, 1923, AND MY 16, 1923
5. CHART - COMPARISON OF ALL EARNING ASSETS OF
FEDERAL RESERVE BANKS.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
WEEKLY REPORT OF OPEN MARKET INVESTMENT COMMITTEE COVERING PERIOD
._____________ MAY 10 TO MAY 16, 1923, (INCLUSIVE)
_____________
Comparison of Holdings of Earning Assets by Federal Reserve
_______ Banks from February 28, 1923, to May 16, 1923
(000 Omitted)
DISTRIBUTED AS FOLLOWS:
TOTAL
EARNING
ASSETS
Feb,
Mar.
Apr.
May
May
May
28
28
25
2
9
16
$1,166,512
1,203,720
1,104,489
1,190,581
1,147,863
1,167,869
1,357+
Net change $
(Feb. 28 to May 16)
Government
Securities
Banker s
Acceptances
B ills
Discounted
$363,074
249,409
193,810
184,772
185,814
188,889
$207,678
254,251
274,041
275,429
266,992
281,609
$595,760
700,0 60
636, 638
730,380
695,057
697,371
$174,185-
$ 73,931+
$101,611+
Changes in Holdings of Government Securities and Bankers
Acceptances by Federal Reserve Banks (Exclusive of Sale
_____ Contracts) During the Week Ending May 16, 1923_____
(000 Omitted)
Government Securities
Net
Balance
Balance
Change
May 16
May 9
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
$
5,3 60
1,149
24,648
17,839
1,341
548
24,048
18,133
14,564
34,366
7,779
27,596
|177,371
$
5,360
1,149
24,928
19,314
1,341
.548
24,128
17,433
14, 564
34,123
7,779
27,596
$178,263
0
0
280+
1,475+
0
0
80+
7000
243.
0
0
$
892+
3ankers Acceptances
Net
3alance
Balance
Change
May 16
May 9
$ 17,722
42,310
23,107
42,257
2,272
32,207
33,217
11,79 6
271
129
12,753
30,732
$ 17,630
58,291
22,273
42,023
2,209
30,317
33,036
11,158
81
129
12,626
30,162
$
9215,981+
834234631,8901816381900
127570-
$248,773
$259,935
$11,162+
Reproduced from the Unclassified / Declassified Holdings of the National Archives
_
2
-
DATA REGARDING GOVERNMENT SECURITY AND OPEN BILL MARKET CONDITIONS
,____________ AS REPORTED BY FEDERAL RESERVE BANKS________________
Boston
Government Securities
The Liberty bond market has been dull and quiet with the
usual tendency toward weakness in prices under such conditions. Notes
and c e rtific a te s , which f e l l o f f with the announcement o f the new
issue, have reacted to th eir former le v e l. At present the demand for
notes has been especially good, exceeding the current supply.
Bankers Acceptances
The supply o f 90 day b ills was s lig h tly larger but there were
less 60s offered and the demand for th is maturity was good. This .
demand is probably due in some measure to banks having temporary funds
received from the sale o f Treasury notes for which they have paid by
credit* Country banks are showing more interest than for some time.
B ill making is confined prin cipally to larger banks. Sales to us were
extremely ligh t and our combined p o rtfo lio remains stationary.
Prime bankers acceptances, indorsed and unindorsed, were
offered 1-30 days at 4% and 31-90 days at 4 l/Q%*
We purchased for our own account ^379,000 indorsed bankers
acceptances maturing from 1-90 days at 4 1/Q% to 4 l/4/£, $292,000 o f
these having 61-90 day m aturities.
New York
Government Securities
Liberty bonds have been du ll during the period with a ten
dency to s lig h tly lower prices. Under easier money conditions cer
t ific a t e s o f indebtedness and Treasury notes have been someudiat firmer
with a fa ir ly active demand for p ra ctica lly a ll issues.
Bankers Acceptances.
The period has been fa ir ly active with an increase in both
the supply and demand, 60 day b ills having the c a ll over other
m aturities. Long b ills moved rather slowly. We continued to buy
sparingly from dealers, but our p o rtfo lio increased about ^18,000,000*
due prin cipally to substantial sales made to us by banks. Of dealers
to ta l sales the proportion distributed in the outside market showed a
decided improvement.
Prime bankers acceptances were offered, indorsed 1-60 days
at 4/£, unindorsed at 4j to 4 1/8%; 61-90 days indorsed at 4% to 4 1/8/C,
unindorsed at 4 1/8%
We purchased for our own account 020,285,000, $16,603,000
having 1-60 day maturities; for account o f other Federal Reserve Banks
08,083,000; for account o f member banks 0184,000; for account o f
foreign correspondents 01,679,000.
Philadelphia
Government Securities
The market in Liberty bonds was very quiet without much
variation in prices. There was considerably more a c tiv ity in the notes
with prices firm, in some instances somewhat higher. The trading was
comparatively heavy in the new Treasury 4 3/4/C notes which closed the
period at 100 1/32-5/32. We purchased for our investment account
$280,000 Treasury notes, Series B-1927 at par.
W’J'..
"
'
1
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 3 -
Philadelphia
(Continued)
Cleveland
Bankers Acceptances
There has been l i t t l e change in the b i l l market during the
past week, conditions being more or less lis t le s s but the easing
tendency in the money market has helped the acceptance market to
some extent.
There continued to be a fa ir supply of b ills coming into
the market, although there is an apparent scarcity of shorter maturi
t ie s . The supply of commercial paper has been comparatively small.
Prime bankers acceptances, indorsed and unindorsed, were o f
fered 1-60 days at 4% and 61-90 days at 4 l/8/£.
We purchased for our own account $1,324,000 at 4% to 4 1/4%,
$829,000 of these having maturities of 61-90 days.
Government Securities
During the past week there has been a good demand fo r both
notes and c e rtific a te s , the price being approximately one-quarter
higher than the previous week.
There have been more buyers than
se llers in this market.
Transactions affecting the investment account were as f o l 1ows:
PURCHASES
$1,500,000 TJ-1923 3 3/4$ c e rtific a te s at 99 3l/32 from members
15,000 TM-1924 4 l/2%
"
" par
SALES
$
40,000 A-1924 5 3/4# Treasury Notes at 101 l/4 to members
Bankers Acceptances
The acceptance market continues to be dull.
Very few b ills
are offered and there is very l i t t l e demand for them in th is d is tr ic t.
Prime bankers acceptances were offered from 1-90 days indorsed at 4/°,
unindorsed at 4 l/8$.
We purchased for our own account in our market, at 4% to
4 1/4/6, $197,000 and from other Federal reserve banks $2,657,000.
Richmond
Government Securities
The Federal Reserve Bank of Richmond purchased $11,050
Liberty Loan bonds for members and sold $11,300 for them.
Bankers Acceptances
,
We purchased fo r our account $70,000 bankers acceptances at
4 l/4 io having maturities from 61-90 days.
Atlanta
Government Securities
The Liberty bond market is rather inactive although there is
a large unsatisfied demand for the 3-1927 Treasury Note^.
Bankers Acceptances
Acceptances made in the Sixth D is tric t, purchased from mem
ber banks in this d is tric t, for our account totaled $361,000.
Chicago
Government Securities
A ll Government securities have been active during the past
week with outstanding issues of Treasury Notes in demand at prices to
y ie ld between 4.60$ and 4.70ft.
There has been heavy sellin g of Liberty
bonds, especially Thirds, generally for the purpose of reinvesting in
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 4 -
Chicago
( continued)
the new issue of Treasury Notes.
We purchased at par $100 ,000 3-192<
Treasury Notes to take care of small la te subscriptions and have sold
of that amount $19,600 at par.
oyylf G Ar*f*& QftppR
------------- The b i l i ~narket was very quiet during the past week with some
new foreign financing.
The demand for b ills maturing from 61-90 days
was very good, with few b ills being offered in this market.
Prime bankers acceptances were offered, indorsed and unin
dorsed, 1-60 days at 4$; 61-90 days at 4 l/8/L
We purchased for the account of member banks $350,000 and for
our own account from other Federal reserve banks $2,703,000*
S t. Louis
Government Securities
There was considerable strengthening in the Liberty bona
market during the period with very l i t t l e change with regards to cer
t ific a te s of indebtedness.
We sold to dealers from our investment account $buu,uuu
series TD-1923 c e rtific a te s at par less l/64th, and $200,000 at par.
Bankers Acceptances
There is l i t t l e to report on Open 3 i l l Market Conditions and
Operations in this d is tric t for the past week.
The two dealers in
this market are not operating a ctively.
Minneapolis
Government Securities
Dealers report a slig h tly increasing demand for Third and
Fourth Liberty Loan bonds during the past week as well as a much
better demand for Treasury c e rtific a te s and notes, TM-1924 and C-1925
being especially sought by country banks.
Bankers Acceptances
No report was received on b i l l market conditions and opera
tions.
Kansas City
Government Securities
. ,
We purchased for our investment account $7,000 June 3 3/4/o
c e rtific a te s at par, |5,000 December 1927 4 l/2 i Treasury notes at
99 1/4 and sold $255,000 United States 2i Consols at 102 1/2.
Bankers Acceptances
No report was received on b i l l market conditions and opera
tions.
Dallas
Government Securities
The market in Government securities was active m th is dis
t r i c t during the period.
Bankers Acceptances
We purchased for our own account, through other Federal re
serve banks, $792,000 bankers acceptances.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
- 5
San Francisco
Government Securities
The Government security market was exceedingly quiet during
the period.
Bankers Acceptances
We purchased in our own market $785,000 indorsed bankers
acceptances having maturities from 1-90 days at 4% to 4 l/8/°, and
through other Federal reserve banks $1,931,000.
Operations for Account of U. S. Treasury
Foreign Obligations
Treasury orders authorizing the purchase on the Stock Ex
change of Third Liberty Loan 4 \/$% bonds from the proceeds of re
payments by foreign governments, which was increased from $30,300,000
to |30,780,000, have been completed as follows:
Par Value
Boston
New York
Philadelphia
$ 1,750,000
23,480,000
5,550,000
$ 30,780,000
Range of Prices
98 10/32-19/32
98 4/32-24/32
98 9/32-19/32
COMPARISON OF THE GOVERNMENT SECURITY
HOLDINGS BY MATURITIES OF ALL RESERVE BANKS
COMBINED AS OF MAY 17. JUNE 30, 1922, APRIL 4
AND MAY 16. 1923
Holdings on
M«r 17. 1922
Certificates and Victory
Notes matured 1922
Victory Notes,
5/20/23
Holdings on
June 30. 1922
♦321,622,450
♦218,454,900
•0*
-0-
46,131,500
Holdings on
Holdings on
April 4. 1923
Kwr 16. 1923
-0♦
17*350
48,635,500
-0»
29 ,896,500
*0”
March
15, 1923
June
15, 1923
-0-
September 15, 1923
-0-
-0-
35.953,500
December
15, 1923
-0-
>0-
34,011,000
llarcb
15, 1924
-0-
-0 -
2 ,062,500
Treasury Notes
87,542,600
123,816,900
117.550,500
Miscellaneous Gor't Bonds
S3.681.010
39.201.566
39.082.910
♦508,977,560
♦460,005,366
TOT A L
Pittman Act Certificates
Sales Contracts
AGGREGATE
80,000,000
-0♦588,977,560
74,000,000
-0♦534,005,366
♦228,677,760
♦178,262,510
-0-
-0-
10.471.350
10.626.800
149,110
♦188,889,310
Reproduced from the Unclassified I Declassified Holdings of the National Archives
EXHIBIT "A"
EXHIBIT "B"
GOVERNMENT SECURITY HOLDINGS OF FEDERAL RESERVE BANKS
AS REPORTED TO THE INVESTMENT COMMITTEE AT THE CLOSE OF BUSINESS MAT 16, 1923
Boston
Victory Notes,
5/20/23
New York
-0-
$
-0-
Philadelphia Cleveland
$
-0-
-0-
Ri chsiond Atlanta
-0-
* 17 , 35c
-0-
-0-
-0-
1,504,000
-o-
-0**
. -0-
Sept* 15, 1923 - 4 #
-0-
-0-
-0-
220,000
- 0-
-0*~
-0 -
*JC
mQm
- 0-
345,500
5,047,000
-0-
«0*
March 15, 1924 - 4i<
-0-
-0 -
2,000
238,500
15, 1924 - 5 #
1,100,000
46,000
6,154,500
Sept. 15, 1924 - 5 #
1,002,000
168,500
2,337,000
March 15, 1925 - 4 ^
920,600
-0-*
8,685,200
300
-C *
1 ,008,100
■
»o**
10,607,500
557,000
C-*
-0-
194,700
499,100
-0-
215,000
•0-
Dec.
15, 1923 -
7, OCO
-0-
*()•>
15, 1923 - H *
June
MinneaDoli s
Chicaro
17,790,000
-0-
•(W
2,555.500
- 0-
Kansas City
•o»
Dallas
San Francisco
-C-
m0«
Totals
17,350
-0 -
7,000
-e -
24,000
535,000
-c -
10,000
-0 -
-o »
230,000
-c-
171,500
m ()«
31,909,500
-C-
1» 719,5CC
-c-
•0*
7,000
—Qm
4,525,000
13,200,600
6,COO,COO
•0“
1,967,000
Treasury Notes
June
Dec.
15, 1925 - 4 3/3*
June
15, 1925 - 4*-*
-0-
1).368,100
•*C»
.A
_
•"C*»
1#15<,000
10,000
2,000
m Q»
17,425,000
22 098,500
-0-
1,205,900
23?-,900
11,307,300
•*o*<
12,400
22, 449 ,600
693,100
1,245,900
892,500
11,909,100
-C*“
«o«
26,913,200
16,CC0
850,600
3,017,000
•-C-
-0-
4,793,200
1,063,4CC
1,018,300
238,900
1,723,500
c-
1 ,850,000
8,451,600
1,555,900
1,069,3CC
2,41?,200
.(>
3,667,000
11,448,6C0
_A
w
-0-
908,900
-c-
-0-
360,400
-0-
March 15, 1926 - 4 ^
-0*
-0-
2,525,000
32,500
Sept. 15, 1926 - 4£jC
800,000
-0-
68,400
1,775,800
100,000
-C-
15, 1927 - 4 #
-0-
-0-
253,100
29,500
50,000
58,300
59,000
249,200
-0-
March 15, 192? - +%%
•O*
-0-
280,000
-0-
-0-
80,400
-0**
—C*“
Dec.
Miscellaneous
. ,S23 j15S.
T O T A L
*5 ,359,350
410.700
Sales Contracts
aggregate
UiAtiiHI
918^400.
11,148,750
$24,927,500
$19,313,600
6.000.000
-0-
»5,770,550 $7,143,750
$24,927,500
-0$19,313,600
—0"
•*o*»
209,8C0
250.350
4.425, 6£Q
fe.lgC.16C
12.115.410
1 .626.6CC
♦1,340,90C $548,000
$24,128,300
♦17,433,500
114,564,010
$34,122,700
l.WDJfill
-c-
-0-
..flfafl&tL
$1,340,900 $958,000
,
■0»
$25,709,400
-C-
625.000
92.500
31.97^060
♦7 ,7 79,5CC$27,595,900
$178,262 ,510
1.779.500
1 . 60C. 000
- 0-
♦9 ,379 ,500*27 ,59 5.900
10 , 626.800
*188,889,310
EXHIBIT "C"
E X P E N S E S
BoitonNew Tort
TE^dti^tacMb6r#3l!*1922
Philadelphia
Cleveland
*2,022,4C0
♦6,716.530
#2,053,919
202.240
677.653
205.392
♦1,820,160
♦6,098,877
♦1,848,527
487.000
1.724.000
960.000
i2.3CT.160
t7.822.87T
♦2.408.527
U . . 10* Arbitrary B a * .
“ n d i £ dD e £ d31*ri922r
Riohaond
Atlanta
♦2,461,266 ♦1,631,35*
Chicago
St» Louie
Minneapolis Kaneae City
♦1,298,053
♦4,080,05T
♦1,623,222
♦1,084,942
163.136
129.305
*08.007
162.322
108.494
♦2,215,139 ♦1,468,220
ft, 163,7*8
♦3,672,050
ft,460,900
♦ 976,448
337.000
263.000
891.000
290.000
215,000
> 2 . 9 I B . W ft.8C5.220
ft.*26.7*8
♦*,563,050
tf,750.900
ft, 191,448
2*6.127
703.000
Dallas
San Francisco
♦2,010,820 ♦1,515,991
201.080
lfl,g»2
ft,809,7*0 ft,363,852
ZUjOOO
♦3,006,387
2flli000
TOTAL
♦29,559,343
,3.°°i.6.^
♦2,705,7*8
ft6,603,409
, ^5.PPS
6,463,000
ft,170.748
»».066.409
Estimated Total Expenses
iCelUdint
♦2.086.740 ft.614,852
I ARHIHQS
u l dW 2 3
*70,765,000 ♦236,031,000 *109,535,000 *126,570,000 *67,263,000 *58,637,000 *150,683,000*61,114,000 *39,663,000 *7*.721,000 *47,983,000 *124,90*.000 *1,167,869,000
Earnings Whieh Present
‘
pJSdSce8 & r ± i ™ 2 3
2,830,600
B»xpantedAr^Paid^ * * * * * 523.440
Assets at 4%
1.618.363
4,381,400
1.972.873
5,062,800
2.144.661
2,690,520
885.300
2,345,480
918.732
6,027,320
1.464,270
2,444,560
693.660
1,586,520
395.072
2,988,840
1,919,320
2£1*22£
221diS
4,996,160
h
46,714,760
131ffiuAE1
(for 33 veeke)
ICrtSa*^ R^uirwant.
9,441,240
*20,620,364 *63,753.694 *77,719,239
*84,486,645 ♦34.875.454 ♦36,192.473
♦57,683.364 *27,326,000ft5,563,442 ♦35,537.273 ftl,994,194
*71,910.170
*537,662,312
Reproduced from the Unclassified I Declassified Holdings of the National Archives
STATEMENT OF ESTIMATED EARNINGS AND EXPANSES OF ALL FEDERAL RESERVE BMJKS FOR THE YEAR 1923
BASED OK EXPENSES FOR 1922 AND EARNING ASSETS HELD MAY 16* 1923_____________
earning a s s et s of federal reserve banks at close of business
MAY 16, 1923 AS COMPARED WITH HOLDINGS AT CLOSE OF BUSINESS FEBRUARY 28, 1923
(In thousands of dollars)
Bills discounted
N
II
Feb* 28
May 16
Net change
Acceptances Purchased- Feb. 28
M
II
May 16
Net change
Government securities - Feb. 28
M
N
May 16
Net change
Total earning assets - Feb. 28
H
m m
May 16
Net change
Boston
Nav York
Philadelphia
* 48,565
44,893
♦210,222
153,237
♦53,556
62,294
♦23,252
65,154
1 3,672- ♦ 56,985 -
♦ 8,738+
♦12,545 ♦ 30,470
20,102
75,645
Cleveland Richmond
ban Fran*
eisco
Atlanta
Chic&zo
St. Louis
♦43,793
63,713
♦18,505
27,362
♦75,682
91,068
♦21,199
32,523
♦16,022
25,018
♦17,851
39,844
♦16,913
25,978
♦41,902*
♦19,920*
i 8,857*
♦15,386*
♦11,324*
♦ 8,996*
♦21,993*
♦ 9,065* ♦16,047*
♦101,571*
♦28,083
22,273
♦35,440
42,102
♦
165
2,209
♦ 8,283
30,317
♦27,841
33,906
♦10,039
11,158
♦ 4,959
81
♦
♦21,403
12,626
♦207,678
281,609
* 7,557* ♦ 45,175*
♦ 5,810-
♦ 6,662*
♦ 2,044*
♦22,034t
♦ 6,c £5*
♦ 1,119*
♦ 4,878-
♦
*28,19£ ♦ 48,798
5,770,
7,149
♦29,070
24,928
♦37.570
19,314
♦ 1,341
1,341
♦ 9,?90
958
♦74,501
25,709
♦28,890
17,433
♦12,299
14,564
♦22,422- ♦ 41,64*-
♦ 4,142-
♦18,256-
♦ -0-
♦ 9,032-
♦48,792-
♦11.457-
♦110,Y09
109,535
♦96,262
126,570
♦45,299
67,263
♦36,778
58,637
♦ 1,174-
♦30,308*
♦21,964* ♦21,859* ♦ 27,341-
♦89,302
70,765
♦289,490
236,031
♦18,537- ♦53,459-
♦178,024
150,683
Mlnneapollg Kansas City Dallae
75
129
54*
Total
♦50,200
66,247
♦595,760
697,331
♦28,375
31,061
♦ 8,777- ♦ 2,686*
♦ 73,931*
♦46,058
34,748
♦11,618
♦,379
♦34, ?47
27,596
♦363,074
188,889
♦ 2,265*
♦11,310-
♦ 2,239-
♦ 7,151-
♦174,185-
♦60,128
61,114
♦33,280
39,663
♦63,984
74,721
♦49,934
47,983
♦113,322
124,904
♦
♦ 6,3834
♦10,737*
♦ 1,»51-
♦ 11,582+ ♦
986*
♦1,166,512
1,167,869
1,357+
Reproduced from the Unclassified I Declassified Holdings of the National Archives
EXHIBIT "D»
Reproduced from the Unclassified I Declassified Holdings of the National Archives
1
wmmmrnrnm
m.
■
Reproduced from the Unclassified I Declassified Holdings of the National Archives
/ "J. X .
***
J
4
April 30, 1933.
Bear Hr. 0a*e:
A
V//3/'J--3
Utle will aoknowledge receipt of y o g i ff Aprljl IQthL emeloaing oopy of the *atniit#*\ of the first wietin* of the Open
Market latenaent OoiSfUee for *hioh I wlah to thank you, I
have ©ade an ijtforail rcpofl of the 'neeting of the Committee
to the Board and thiate I «fc»ll writ** out «a1 put on the «lm*tee
a nofd foriaal os*.
X noti oo fwm y o w daily reporta that bill r&tas h a w gone
up at le^at an eighth although tha general tons of tho M&oay aarket
aae»a eaaier*
By t)w m ay, ffeere la one Treaaur? fores th« affect of ’
^hicih
I as not quite clear aibou*. In the fir»t placo, tha a i d i n g fund
tafcee a food many Qo vem tx ni aseurltlea out of tho market and put*
money in. In tha aecond plaoo, the Tfeaenry I think Is ur.doubtedly u%ln§r the w r p l u a r<$v*nm due to tha urta *pect<sdly largo on* ton*
receipta and inooae ta* payaenta in redsaraing cartifio&tea.. It
a*OHM to m that thin put* money into tho marVet, although fro®
doetber point of vliw it isay ho called •deflation®, and i s in fact
000 of the items of deflation mentioned by tha Bight Honorable
Beginald McKenna in hi a apeeoh of noma niontha ago to his otoofeholdere in London.
Bo you underatand
that the payment of the 5 per cent far*
Xioaa honda taVea "bonda out of the TSre&aury ^hlch are no^ held there?
If ao, that off‘
ieta to * o m extent the itema of redemption from
**mrpltie revenue *
Tour a very truly,
Acting Governor.
Mr. J. I. Gaae, Baputy Governor,
Federal Beaerve Batik,
few York, H. T.
- fr " l
(jtyuj - f d e d .
m
t
Reproduced from the Unclassified / Declassified Holdings of the National Archives
OPEN MARKET INVESTMENT COMMITTEE
FOR THE FEDERAL RESERVE STSTEM
April 33, 1923
Meeting held in Philadelphia, Pa*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
May 15, 1925
"The Governor was further requested to advise the
Committees of the Federal Reserve Bank Governors on
Open Market Purchases and Voluntary Services that the
Board desires them to meet in Washington on May 23,
1923, at 10:00 a.m."
Reproduced from the Unclassified / Declassified Holdings of the National Archives
F e d e r a l Re s e r v e B a n k
of
New Y o r k
/
L
April 19, 19S3.
v 3
Dear Mr. F la tt:
B elieving that you w ill be interested, I am enclosj
‘\ J -*'■f'• ,,>% J. ''f'.**■
■
•■
■
v'-.-#yrf H ’
■
in# copy o f the minutes |o f the f ir s t neetinJs o f the Open Market
Investment Committee for the Federal Reserve System held at the
Federal Heserve Bank o f Philadelphia on Friday, April 15, 1923,
as approved by a ll members o f the Committee.
I am sure that the e ffe c t o f having open market oper
ations carried on in the manner proposed by the Board w ill be
mutually advantageous.
Very truly vours,
(hr?
Y / / / f fa- ^
>
H. Case
Deputy Governor
" J,
friVED
R E C
Enclosure
Honorable Edmund P la tt,
Acting Governor, Federal Reserve Board,
?!iashington, D. C.
^
A M
-
< W
»
4 /
/ >e
oA V
Reproduced from the Unclassified I Declassified Holdings of the National Archives
33
t *
-'h -'r
y ~ / <3 -
April 10, 1923
"Mr. Miller moved that the resolution adopted by the Board on April
7th, with reference to the liquidation oiLxtiifin^m r k e t investments by the
Federal Reserve banks as a precedent to an increase j n r a £ e sT”
be submitted
by the Vice Governor to the Open Market Investment Committee for the
Federal Reserve System, at its meeting to be held in Philadelphia on
Friday,April 13th.
Carried•"
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Dear Mr. Platt*
,
I am in receipt of your letter of_A^ril dthjcalling
the first meeting of the new Open Market Investment Committee
of Governors of Federal Reserve Banks, to be held at the Federal
Reserve bank of Philadelphia, Friday, April 15th, at ten o fclock.
I expect to attend this meeting.
Very t ruly yours,
J. H. CASE,
Deputy Governor.
Honorable Edmund Platt,
Acting Governor, Federal Reserve Board,
Washington,
D. G.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
v
til
K'
=4
V i ^ r ^ *s
W
i"
i©
Fe d e r a l r e s e r v e b a n k o f
230
SOUTH
LASALLE
STREET
,'■»
V*
April 9, 1923*
Federal Be serve Board,
Washington, D* G*
Gentlemens
Attention of Hr* Edmund Platt,
Acting Govern or*
I am in receipt of your letter of the 6th.
*»»m■'wmnifm
instant jgoid observe therefrom that the first meeting
of the new Open Market Investment Committee of Governors
is to be held at ten o ’
clock: on Friday morning, the 13th
instant, at Philadelphia, at 'which time I am planning
to be present*
Yery truly yours,
0*
Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
y
FEDERAL RESERVE
OF B O S T O N
BANK
April 7, 1S23,
Honorable Edumund P la tt, Acting Governor,
Federal Reserve Board,
Washington, D. C.
Dear Governor P la tt:
I have received, your le t t e r o f the 6th inst.y
advising me o f a nee ting o f the nera open
market investment committee of Governors of
Federal Reserve Banks at Philadelphia at
10 o1clock on Friday morning the 13th inst.
I shall arrange to attend.
WPGIi: k
/
Reproduced from the Unclassified I Declassified Holdings of the National Archives
April 6, 1 9 m
Btaj? Qovoraor Harding:
Ai tho now opon market iairostiaont oomatttoe of
Govornora of Itedoral Baeor*© banka baa sol yet boon
formally organlood it ha* boon ovft^oatad that tho
Fodoral Basorvo Board ©all tho first mooting and I am,
thoroforo, asking tho ooamittoo to soot at Phtladoiphia
at toe o'clock on Htday aoming, tho 13th.
Touro w r y truly
Acting Qovornor
Hon. f. P. 0. Harding, Govornor
ffcdoral fiooorvo Batik,
Boston, Haasaohttsotts.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
April 6, 1933,
Boar Mr. Casa:
A*
now opon market inwstfnont ooaxaittoo of
Go r u m o r s of ?o<leral Baaer*# hanko has not yot boon
formally organ!*<td It ban boon atig^ooted that tho
federal Bosorvo Board call tho first mooting and I am,
therefore, asking tho oonaittaa to moot at Philadelphia
at too o'olook oa Friday morning, tho 13th.
Tour# w r y truly,
Acting Qovornor*
Mr. J. H. Oaaa, Acting Governor,
fadoral B e o a r w Bank,
How York, H. T.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
i- -V"
April 8, X933.
Dear Governor Uorrie:
Ai the new open market Investment ooagoittee of
Governora of -Federal B«»erve hanke h»e not yet been
formally or u n i t e d II has heen suggested that ths
Federal Hfiaerve Board oall the first meeting and I am,
therefore, asking the aomuittee to meet at Philadelphia
at ten 9*aioolc on Friday morning, the 13th«
Tour* vary truly,
Acting Governor.
Hour* George W. Sbrrts, Governor,
Federal Beeerve Bank,
1*liiladelphia,
Reproduced from the Unclassified I Declassified Holdings of the National Archives
A p r il
1933.
Baar Qovarnor Itomohar:
$
A* tha naw opon market invaatmsnt oonaaittaa of
Oovaroora of l^dara! Boaarva banka haa not yat boon
formally organised It hat bscm augfoat«4 that the
Fadaral Beaerva Board call the firat eaaeting and I am,
tfcarafora, aaking tha ooamittaa to meat at Philadelphia
at tan o* cloak on Friday morning, tha 13th.
Tourn vary trulv,
Aoting Govarnor.
Mr. £• t. Faaohar, Govarnor,
Fadaral Baaarva Bank,
Clavaland, Ohio.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
/
April 6, 1933
Ifcar Governor
As tha rum op#» markst Imwatmorit ooomitta* of
Qov«rnor« of federal
formally organ!
han1rs» ha« not ?*t V«*n
it baa >?o«in »ugga*ta«l that tb©
?*d«ral I?o«orv« Board oall tha first rawsting and I am,
th<irefora, asking the oosjmitt** to faeot at Philadalphi
at t«m o* clock ois Friday morning, tha 13th.
Tours vary truly,
Acting Oowtior.
Mr. J . B. MaD ou^ l, Governor,
Pectoral Beaervo Back,
Chicago, Illinois.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
Form. N o . 131
‘
a
Office Correspoi^Je.
;r a l reserve
BOARD
bate_ i o r U
*a,
To
Mr. Platt
From___ Hr* Hoxton
I
Subject:.
..........—
6 , 192 3
i
l(- T
a t* £ c h s C op y o f my t e l e g r a m! s e n t
2— 8498
to G o v e r n o r M cD ougal y e s t e r d a y ,
In accordance with the action of the Board,and also Governor McDougal’
s
reply*
At the meeting yesterday th»e Vice Governor was authorized, after
IFSeeiJt of this informtion, to call a meeting of the Comaittee on April 13thf
t© "bf held at Philadelphia*
AJJL
Reproduced from the Unclassified I Declassified Holdings of the National Archives
-
TELEGRAM
■
Ik**
FEDERAL RESERVE SYSTEM
(L E A S E D W IR E S E R V IC E )
AC
V.
211fcq
■
RECEIVED AT WASHINGTON, D. C.,
Chicago
5 1 5 p m april_5_,
H o x ton
w
$
/
,vas^ p 1 '
Your
G o v e r n o x S t r o n g w a s c h a i r m a n of the f o x i e r
c o m m i t t e e of G o v e r n o r s on c e n t r a l i z e d e x e c u t i o n of p u r c h a s e s
an d s a l e s
2— 11001
•OYBM
KM
SNTPH1M
TZM
Qomffl
of g o v e r n m e n t
securities.
McDougal
433 p
^
Reproduced from the Unclassified I Declassified Holdings of the National Archives
C O P Y
April 5, 1923*
McDdugal - Chicago
Please advise who is the Chairman of the former Committee of
Governors on Centralized Execution of Purchases and Sales of
Government Securities now known as the Open Market Investment
Committee for the Federal T?eserve System.
HOXTOTT.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
April 5, 1923
"The Vice Governor stated that he had received a letter from Mr.
Case,Deputy Governor of the Federal Reserve Bank of New York, suggest
ing that the Board call a meeting at Philadelphia on the 13th of April
of the Open Market Investment Committee for the Federal Reserve System,
provided for in the resolutions of the Federal Reserve Board adopted
March 22nd, and which it is understood will be composed of the sane
members as was the former Committee of Governors on Centralized Execu
tion of Purchases and Sales of Government Securities.
Upon motion, the Secretary was instructed to wire
Governor McDougal, the Chairman of the late Governors*
Conference, with a view to ascertaining who is the
present Chairman of the Committee aforesaid.
The Vice Governor was authorized, after receipt
of this information, to call a meeting of the Committee
at Philadelphia on the 13th of April♦"
Reproduced from the Unclassified I Declassified Holdings of the National Archives
F o r m 148 A.
FEDE
.A
RESERVE!
BOA
in
LEASED WIRE U (VICE
W A S HI
STTQN
The telegram given below is hereby confirmed.
April 4, 1933.
Fancfcer - Cleveland
It has "been suggested that a R»etiu«r of the new open market
committee be held in Cleveland. Would Friday the 13th be a
convenient day?
PLATT
3
f
@FedFRASER