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<9ppP Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E .6 . Form P. R. 567 { EN D K IN D OF M A T E R I A L OR NUMBER NAME OR S U B J E C T DATES (In c lu s iv e ’ PA R T NUMBER C SH EET 3 3 3 •-'b -2 Open M arket Investm ent Committee M eetings Open M arket O perations Jan - Mar 1930 Part 6 w Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . U3Sfc t F o r m N o . 181 Office Corresponaetice To Federal Reserve Board______ _____ From Mr. M cClelland. FEDERAL RESERVE BOARD FW u A p r il 4 , 1930 Subjects •t • » —8486 At the meeting t h is morning there was ordered c irc u la te d the attached copy o f the a c tin g secreta ry *a minutes o f the recent open market conference o f the Federal Reserve Board with the V ep resen ta t iv es o f the Federal reserve bankB' J&. 2 ^ 7 / m . Mr. yJtofa ^ ifr . Mr. Mr. y~ J p ia t v i/, Hamlin, James, Cunningham, M i l le r ,' P o le. P lease c ir c u la te promptly and return to t h is o f f i c e . 3 3 5 . ' (f ’X-fo 7 K ^ ,w .; Reproduced from the unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E.G. IBSfe TV "X -*• J* M f * a s , 1 9 30. DfMHf1ItSW Btt3^0NNII «M a « IX l «akBiwi1.«agi» N w l j t o f and M u * y w « a r jw u r H M w > — ... a t ttm fc » U * Q cw w im r T o n e . - ............ ... .......................1 3L a / 3 0 h 4^d tM M ftttla g ni j tM « f «w _itiB *ee|<F 1M M W * la * H ** « • M *w ■ ■ * ■ 11 i m « r t t » IM B i» m i " ! B w u rt u A « f 1>n T i t n u l -I........................ ..........*“ Vmgf tx u ly | 8 B i«f M m&> A s s is ta n t a**2*taxy« VtBmw* Bin M t City* s. i* 3 3 3 , - i ■;> Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E.6.1235£, Fe d e r a l R e s e r v e Ba n k of Ne w Yo r k 9 9,1930 CONFIDENTIAL March 2 7 , 1950 Dear Mr* Young: There i s enclosed herewith fo r your i j i f o r 3 -2 Y - z d L l U 3 3 3 .- 4 £ r 'X mation the minutes ^of the meeting o f the Open Market Investment Committee held in Washington on March 24 and 25 , 1950* Very t r u ly you rs, V . Randolph Burgess A cting Secretary, Open Market Investment Committee Honorable R* A, Young, Governor, Federal Reserve Board, Washington, D. C. % Enc. ( l ) i$a J ju aA 1 BOARD MEETING. APR 4- /b e t . tk + c o r 1930 _ * * ), * . Reproduced from the Unclassified / Declassified Holdings of the National Archives m d e c l a s s if ie d Authority E .6 . U3Sfe * 3 COrFIDirrlAL REPORT OF THE SECRETARY OF THE OPEN MARKET INVESTIENT COMMITTEE TO TEE MESTTNS OF THE COMCTTTEE AT WASHINGTON ON I&RCH 24 , 1950 At the time o f the l a s t meeting of the Open Market Investment Committee, which was held at Y/ashington on January 28 and 2 9 , 1930* the t o t a l holdings of government s e c u r itie s in the System S p e cia l Investment Account amounted t o __________________________________________________________________ __ __________$ 2 7 7 ,5 0 0 ,0 0 0 There was po/change in the to t a l amount o f holdings in the System Account during the period January 28 to March 5 , 1 9 30. In view o f d e clin es in the b i l l p o r tfo lio o f the System and pending a meeting o f the Open Market Committee, the Federal Reserve Bank of New York, with the approval o f the Federal Reserve Board, purchased approximately $ 5 0 ,0 0 0 ,0 0 0 o f government se c u r itie s which have been a llo t t e d to such reserve banks as desired to p a r tic ip a te , and made k: part o f the sp e c ia l investment account* These purchases were made during the fo llo w in g statoment weeks. Weak ending Y/ednesday, March 1 2 , 1930 - - - - - i *» " " ” 1 9 , 1930 -----------------------T otal amount o f holdings clo se o f business Wednesday, March 1 9 , 1930 - - - - - 26^750*000 2 3 i0 0 0 i0 0 0 $ 3 2 7 ,2 5 0 ,0 0 0 The Federal Reserve Bank o f San F rancisco, a t i t s re q u e st, was appor tioned a s u f f ic ie n t amount of the new purchases of governments to increase i t s p a rtic ip a tio n in the System Account to approximately i t s proportionate share of the t o t a l holdings in the Account* The resorve banks that expressed a d e sire to p a rtic ip a te in these purchases and the amount that each bank received were as fo llo w s i Boston New York Philadelphia Cleveland Richmond Minneapolis Kansas C ity San Francisco T otal $ 3 ,4 8 2 ,5 0 0 6*219*000 3 ,2 3 4 ,0 0 0 4 ,7 2 6 ,0 0 0 2 ,7 3 6 ,0 0 0 1 ,6 1 7 ,0 0 0 2 ,8 6 0 ,5 0 0 2 4 ,8 7 5 ,0 0 0 $ 4 9 ,7 5 0 ,0 0 0 Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E.6.1235k Tho principal changes in tho make-up of tho government securities in tho System Account since January 28, 1930, none of which affected the total amount of holdings, were as follows: February On February 18, the Federal Reserve Bank of Dallas asked to be relieved temporarily of $5*000*000 of its participation of govern ment securities in the System Account. These securities were taken over temporar ily by the Federal Reserve Bank of New York on February 18 and apportioned on February 19 to the other reserve banks which cared to participate, with the understanding that the Federal Reserve Bank of Dallas would re purchase these securities within sixty days. February : Exchange in the market of $15,000,000 5 1/8% Treasury certificates due March 15, 1930, for a like amount of 3 1/2$ Treasury notes due 1930-32, anticipating the maturity of the certificates. February Exchange in the market of ^25,250,000 of the $50,250r000 Treasury Bills due March 17, 1930, held in the Account for a like amount of 3 1/2% Treasury notes due 1930-32, in anticipation of the b ill maturity. March 15 Exchange of $14,000,000 - 5 1/8$ Treasury certificates due March 15, 1930, for a like amount of the new Treasury 3 1/4$ certificates, pursuant to the terms of the TreasuryTs offerings March 17 Redemption of the balance of ^25,000,000 Treasury Bills due March 17, 19.20, which was offset by purchase in the market of a like amount of short-term governments. There were also changes in the issues of governments which have had the ■affect of decreasing the amount of the longer maturities and increasing the amount of the shorter maturities. The Federal Reserve Bank of Few York is s t ill holding in its invest ment account approximately $112*000,000 of short-term governments which were pur chased in the market last fall as previously reported. these securities consist of the following issues: At the present time Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . U35k U* S * Treasury B i l l s due 4 7/Q% C ert, o f Ind. ” 3 l/Q%> ” n n ” 3 1 /4 $ M ” M ” 3 1/2% Treasury Notes ” 3 1 /2 $ " ” May JL5, June 16, S e p t,15, Dec* 15* Mar* 15, S e p t.15, 1930 1930 1930 1930 1930-32 1930-32 Total $ 1 1 ,0 0 0 ,0 0 0 1 0 ,3 0 1 ,0 0 0 28., 463,000 1 ,6 1 5 ,0 0 0 3 0 ,9 4 1 ,9 0 0 2 9 ,8 5 1 ,7 5 0 § 1 1 2 ,1 7 2 ,6 5 0 In addition to the foregoing the Federal Reserve Bank o f New York has purchased $50,000*000 short-term governments, con sistin g p r in c ip a lly o f June, September and December 15 c e r t i f i c a t e s , account Sinking to replace a sa le to be made to the Treasury, Fund, during the la t t e r part o f March and e a rly part of A p r il of $ 5 0 ,0 0 0 ,0 0 0 3 1/2% Treasury n o te s, S eries A -1 9 3 0 -3 2 ; $ 2 5 ,0 0 0 ,0 0 0 o f which notes are in the System Account and the balance o f § 2 5 ,0 0 0 ,0 0 0 in the investment account of the Federal Reserve Bank o f New York. TRANSACTIONS RELATING TO SY5T5M PURCHASES OF BANKERS ACCEPTANCES On February 2 1 , the Federal Reserve Bank of Kansas C ity resumed par tic ip a t io n in System purchases o f b i l l s and asked to be a llo t t e d $>5,000^000 ad d ition al b i l l s . At i t s req u est, $5>000,000 o f b i l l s were sold to the Kansas C ity Reserve Bank frcm the p o r t fo lio o f tiie New York Reserve Bank, and again on March 1 5 , by requ est, a sim ila r s a le was made in the amount o f $ 3 ,0 0 0 ,0 0 0 . On March 4 r owing to i t s low earnings, the Federal Reserve Bank Of Minneapolis asked fo r a la rg er allotm ent of b i l l s . As i t seemed u n lik e ly that the System’ s purchases o f b i l l s would be s u f fic ie n t in the near future to in crease the Kansas C ity Reserve Bankfs a llotm en t, i t was sold $ 5 ,0 0 0 /0 0 0 o f b i l l s from the p o r t fo lio o f the New York Reserve Bank. The Federal reserve banks that are p a rtic ip a tin g at present in the System purchases o f b i l l s are as fo llo w s ! *Boston New York ♦Philadelphia Cleveland Richmond Atlanta Chicago S t, Louis Minneapolis Kansas C ity D allas San Francisco * P a rtic ip a tio n s a t present confined to purchases in own d is tr ic t. Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . IBSfe 4 Attached are statements showing: E xh ibit nA” -» Outright holdings o f government s e c u r itie s by in d ivid ual Federal reserve banks, a lso th e ir p a rtic ip a tio n in the System Special Investment Account, and c la s s if ic a t io n o f issu e s held in the System Account by m aturi t i e s , a l l as of close o f business March 19, 1930. E xh ibit ” B" - B i l l s purchased outright by the System by weeks from January 3, 1929 to March 19, 1930. E xh ibit wCn - Earning a sse t holdings o f a l l Federal reserve banks March 19, 1930, as compared with previous week and March 20, 1929, a lso weekly average o f earning a ss e ts from January 2 , 1930 to March 1 9 , 1930, as com pared with corresponding period 1929 and en tire year 1929. E xh ibit "B " - A ctual net earnings o f a l l Federal reserve banks fo r the months o f January and February 1930. Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . EXHIBIT "A” STATEMENT SHOWING HOLDINGS OF GOVERNMENT SECURITIES BY FEDERAL RESERVE BANKS (Excluding S ales Contracts) Outright Holdings of Government S e c u r itie s by Federal reserve banks as at the close o f business March 1 9 , 1930 Boston New York $ 706,600 1 1 6 ,4 0 2 ,6 0 0 * P a rtic ip a tio n by Federal reserve banks in system Special Investment A cct. Government S e c u ritie s as a t the c lo se of Business March 1 9 , 1930 T otal $ 3 0 ,1 6 2 ,5 0 0 $ 3 0 ,8 6 9 ,1 0 0 1 0 5 ,5 7 1 ,0 0 0 2 2 1 ,9 7 3 ,6 0 0 P hiladelphia 1 5 ,0 1 0 ,1 0 0 3 1 ,6 9 7 ,5 0 0 4 6 ,7 0 7 ,6 0 0 Cleveland 1 0 ,1 6 4 ,8 0 0 2 5 ,2 5 1 ,0 0 0 3 5 ,4 1 5 ,8 0 0 Richmond 1 ,1 5 2 ,1 0 0 1 1 ,6 7 0 ,0 0 0 1 2 ,8 2 2 ,1 0 0 Atlanta 2 ,5 9 9 ,5 0 0 6 ,2 2 6 ,0 0 0 8 ,8 2 5 ,5 0 0 Chicago 1 9 ,9 2 7 ,4 0 0 5 1 ,4 1 2 ,0 0 0 7 1 ,3 3 9 ,4 0 0 S t. Louis 8 ,6 2 5 ,0 0 0 1 0 ,6 4 1 ,0 0 0 1 9 ,2 6 6 ,0 0 0 Minneapolis 7 ,7 9 0 ,2 5 0 1 0 ,9 5 7 ,0 0 0 1 8 ,7 4 7 ,2 5 0 Kansas C ity 3,000 5 ,9 2 0 ,5 0 0 5 ,9 2 3 ,5 0 0 D alla s 9 ,9 8 7 ,8 0 0 10 ,6 4 7 ,9 0 0 2 0 ,6 3 5 ,3 0 0 flan Francisco 9 ,6 4 2 ,6 5 0 2 7 ,0 9 4 ,0 0 0 3 6 ,7 3 6 ,6 5 0 #202,0 1 1 ,8 0 0 #327,2 5 0 ,0 0 0 §5 2 9 ,2 6 1 ,8 0 0 T o ta ls * Exclusive o f Special one-day C e r tific a te o f Indebtedness issued to cover the o v e rd ra ft, and includes $ 4 ,0 0 0 ,0 0 0 held tem porarily fo r r e sa le to Treasury. CLASSIFICATION OF ISSUES OF GOVERNMENT SECURITIES HELD IN THE SYSTEM SPECIAL INVESTMENT ACCOUNT CLOSE OF BUSINESS MARCH 1 9 , 19 5 0 _________ U. S. T reas. B i l l s due May 19 , 1930 4 7/8% C /l due June 1 6 , 1930 3 1/8% " " Sept. 1 5 , 1930 3 1/4% M " Dec. 1 5 , 1930 3 1/2% T/N " March 1 5 , 1932 3 1/2% M " Sept. 1 5 , 1932 3 1/2% " " Dec. 1 5 , 1932 4 1/4% 4th L/L bonds Oct. 1 5 , 1938 T otal | 2 6 ,0 0 0 ,0 0 0 6 0 ,6 1 0 ,0 0 0 8 0 .0 7 5 .0 0 0 3 6 ,0 0 0 ,0 0 0 3 7 .5 5 5 .0 0 0 3 1 .6 3 5 .0 0 0 3 4 .9 2 5 .0 0 0 2 0 .4 5 0 .0 0 0 | 3 2 7 ,2 5 0 ,0 0 0 BILLS PURCHASE OOTRIGHT BT SYSTEM BT WEEKS 92? A" FRO* J-AVUART 2 TO MARCH 19, 1930, I1SUTSIYI FROM JANUARY 3 TO IflCff'BSR V 3 ,1 5 5 1 ,1 2 9 553 969 717 1 ,3 0 3 476 253 75 568 250 -0 - 112 1 25 201 1 ,2 0 1 9 ,7 5 2 5 ,6 4 8 2 ,2 4 4 5 ,5 6 7 7 ,5 0 8 1 2 ,0 9 7 1 5 ,5 0 0 7 ,5 8 5 1 7 ,2 6 0 1 7 ,7 4 5 3 ,3 1 1 2 ,1 2 4 1 ,2 2 7 516 418 1 ,5 1 0 863 1 ,4 2 4 515 150 469 1 ,3 0 5 929 1 ,6 6 5 4 ,2 8 1 2 ,4 9 6 9 ,0 7 3 6 ,7 3 2 3 ,5 2 5 8 ,3 2 1 6 ,5 8 4 2 ,5 3 1 2 ,5 0 4 416 1 5 ,6 5 7 9 ,2 6 3 6 ,0 2 9 8 ,7 3 7 1 ,4 1 0 1 ,6 3 9 1 ,5 9 4 2 ,5 5 4 498 -0 2 ,0 4 2 -0 - 3 .0 5 0 1 ,4 4 2 3 ,2 3 0 1 ,7 4 2 1 ,4 4 2 1 3 ,8 4 3 7 ,4 0 8 4 ,3 8 5 6 ,3 8 2 3 ,8 3 4 8 ,6 5 4 2 2 ,4 9 7 2 ,3 8 7 -o - 191 9 ,6 3 4 1 1 ,8 9 8 6 ,3 9 0 7 ,5 9 9 1 4 ,0 1 9 1 8 ,2 8 0 1 0 ,2 2 4 1 ,6 8 9 1 ,3 9 9 1 ,6 2 3 1 ,9 4 6 2 ,9 0 2 1 ,3 5 5 2 ,8 8 3 945 7 ,7 5 8 5 ,3 6 3 5 ,6 9 3 5 ,3 1 9 2 ,1 1 3 2 ,1 7 7 991 977 -0 -0 - 6,606 6 ,6 2 1 1 ,2 7 0 847 1 0 ,2 2 9 4 ,8 3 1 1 ,3 0 5 3 ,0 3 1 8 ,7 4 5 6 ,7 4 8 1 2 ,5 1 1 1 3 ,2 5 6 3 10 IT 24 i 8 15 22 29 M «r 1 ,5 9 4 1 ,0 4 0 1 14 339 3 10 IT 24 31 1 ,6 8 6 -0 6 04 598 8 64 T 14 21 28 720 4 .8 5 T 2 ,2 8 1 2 ,6 8 6 1 ,4 1 1 1 ,3 3 4 1 ,1 3 1 357 25 Oct. 2 9 16 23 30 Mot . D oe. 6 13 20 27 TOfALS 2,810 4 ,3 7 4 15 -0 847 1 ,5 7 5 4 ,3 3 1 1 ,2 7 0 -0 3 ,6 5 4 -0 - 3 ,0 3 1 2 ,0 3 8 -0 6 ,7 0 7 3 ,9 2 9 6 ,5 8 5 2 ,9 1 9 1 6 ,7 7 9 1 3 ,0 9 0 1 6 ,5 5 6 2 ,8 1 9 5 ,9 2 6 8 ,2 6 5 2 1 ,4 3 1 1 3 ,9 7 4 5 ,1 5 1 # 7 ,^ 5 8 4 ,1 3 9 + 2 7 ,0 2 1 1 3 ,6 0 9 - 505 1 ,0 6 9 1 ,5 1 7 983 1 ,2 9 8 5 ,5 8 2 2 ,7 0 4 263 2 7 ,0 3 5 2 5,6 31 3 7 ,9 9 7 1 5 ,7 4 4 1 7 ,9 5 6 1 8 ,4 4 8 2 5 ,7 3 8 1 5 ,2 7 3 - 2 4 ,8 6 7 1 9 ,6 8 4 3 5 ,4 2 2 2 1 ,5 6 1 - 2 ,0 1 0 327 903 3 ,4 4 1 2 .0 U 5 ,5 8 2 1 ,3 4 9 -0 -0 -0 -0 - 405 200 1 ,3 0 2 657 592 623 25 621 -0 -0 -0 -0 - 729 1 ,0 9 3 602 1 ,9 3 5 2 ,5 3 9 3 ,2 9 4 3 ,4 0 0 2 4 ,9 8 4 2 2 ,2 1 3 2 6 ,5 7 4 3 0 ,9 7 1 1 4 ,3 9 8 1 2 ,8 2 3 3 5 ,5 2 0 1 7 ,4 6 4 - 2 9 ,4 3 1 2 1 ,5 4 3 4 6 ,2 6 3 2 8 ,4 1 1 - 2 ,5 2 1 3 ,5 9 1 2 ,5 5 4 1 ,8 6 6 4 ,9 2 0 5 ,2 4 9 5 ,4 5 9 1 7 ,5 1 0 275 228 134 25 340 403 778 1 ,2 1 4 95 14 20 218 -0 -0 -0 -0 - 1 ,0 1 2 1 ,4 9 0 642 722 353 9 52 241 338 20,5 69 1 5 ,2 9 4 1 5 ,7 6 1 1 6 ,3 0 4 1 8 ,5 7 3 1 3 ,8 6 2 1 3 ,7 7 2 2 ,ll6 « 3 3 ,7 2 4 1 7 ,3 8 6 1 6 ,2 9 0 148+ 3 ,4 9 0 3 ,4 3 6 4 ,7 1 9 2 ,4 2 1 4 ,m % ’ 2 ,8 5 1 3 ,9 4 4 3 ,5 J f -0 278 101 400 100 524 1 ,2 8 7 761 650 - 0-0 -0 ” -0 -0 - 714 1 ,1 3 2 1 ,6 8 2 1 ,3 0 8 1 ,1 0 1 1 ,0 3 6 1 ,6 9 8 323 1 ,6 2 4 1 ,7 4 * 3 0 ,7 4 7 1 5 ,5 6 7 2 2 ,2 5 1 2 6 ,4 59 1 9 ,3 4 3 2 0 ,8 4 ?♦ 1 3 ,1 3 2 8 ,7 5 9 5 ,0 6 3 1 5 ,9 8 3 - 2 9 ,2 4 6 + 1 3 ,2 4 0 1 1 ,0 7 4 8 ,1 2 1 2 0 ,0 6 7 - 1 ,9 0 4 2 ,3 1 1 2*® l0 1 ,1 8 4 4 ,M * 3 ,4 5 3 I ,ff5 806 539 192 728 830 1 ,4 8 0 792 1,0 50 200 225 -0 313 1 ,1 4 5 991 303 178 204 271 450 648 -0 -0 -0 -0 - 518 969 654 874 84f 74# 1 ,7 6 ? 76J 1 4 ,3 7 9 1 1 ,8 8 4 1 0 ,7 6 6 1 0 ,3 6 7 4 ,5 6 6 + 6 ,4 0 2 + 2 2 ,8 2 2 T62- 5 ,1 7 2 1 ,3 7 0 + 2 7 ,0 8 5 4 ,1 9 3 - 5# 083 6 ,2 1 2 3 ,0 0 0 2 ,5 4 7 3 ,2 0 3 2 ,« I K 4^900 -0 -0 -0 -0 -0 - -0 -0 -0 458 147 531 851 729 575 298 629 50 30 526 61 -0 — -0 -0 - 618 720 1 ,2 1 0 1 ,1 2 5 500 354 -0 700 869 898 1 1 ,7 4 4 2 ,9 3 6 4 ,2 4 4 1 5 ,1 5 1 8 ,1 8 7 3 ,2 8 2 2 ,1 3 7 1 ,7 9 3 + 1 ,4 2 6 6 ,1 9 7 + 8 ,9 1 7 7 ,9 4 * 1 ,6 6 2 + 1 ,2 0 4 + 5 ,7 2 5 + 2 ,0 8 0 3 ,8 3 6 T ,* 2 f 2 ,4 4 4 4 ,7 8 5 1 0 ,4 4 * 29T 2 ,9 9 3 4 ,8 1 8 1 ,0 9 0 1 ,3 5 6 1 ,5 5 8 3 ,6 4 4 -0 -0 104 598 -0 380 -0 85 143 365 3 54 1 ,0 6 0 470 1 ,3 2 6 1 ,8 3 0 217 -0 -0 -0 -0 - 390 738 5 ,9 1 2 1 9 ,5 0 4 1 6 ,4 1 0 2 3 ,8 0 7 2,3 6 1+ 3 2 ,8 77 + 4,5 9 1+ 3 8 ,7 2 7 + 891 2 ,9 * 8 2 ,0 8 8 4 .U 3 825 5 14 68 1 ,7 3 7 2 ,7 1 0 2 ,4 9 2 3 ,9 4 9 + 1 7 ,5 1 5 + 1 4 ,2 5 2 + 24.3T T + 1 1 ,1 8 4 3 8 ,2 1 0 2 7 ,0 6 4 2 1 ,7 0 7 1 ,8 5 6 2 ,0 2 3 2 ,2 0 2 2 ,3 0 4 1 ,1 9 0 -0 200 75 100 1 ,5 6 3 2 ,0 8 9 1 ,1 4 0 324 425 631 614 -0 -0 -0 -0 - 993 814 501 1 ,0 4 1 2,0 6 9 868 1 ,8 3 9 2 ,3 1 4 2 0 ,6 9 0 4 6 ,1 13 3 4 ,8 6 8 2 8 ,9 7 8 2 1 ,2 32 + 3 2 ,2 3 1 + 1 7 ,4 0 8 + 2 0 ,2 67 + 2 6 ,4 0 2 + 3 9 ,3 1 3 + 1 8 ,8 7 4 + 22,8 31 + 6 7 ,0 9 9 5 1,2 91 3 2 ,9 2 9 3 2 ,4 1 5 6 ,0 5 3 2 ,9 3 8 1 ,9 8 1 1 ,9 4 3 952 284 479 -0 - A5 476 1 ,9 7 0 551 -0 -0 -0 - 866 686 371 343 746 -0 -n - 757 2 ,3 1 7 2 ,7 8 9 2 ,3 3 4 933 1 ,0 1 3 7 5 ,9 3 6 6 2 ,3 0 0 4 1 ,2 9 7 3 9 ,4 3 4 9 ,8 6 0 5 4 ,2 63 + 4 ,0 6 5 + 2 4 ,8 96 + 2 2 ,8 4 6 + 2 9 ,9 9 3 - 5 8 ,8 8 4 + 1 0 ,3 3 3 + 2 6,9 59 + 1 9 ,2 7 3 + 3 9 ,4 9 8 - 161 -0 -0 -0 -0 - 752 217 421 383 250 1 5 ,4 2 1 4 ,5 2 4 6 ,1 9 8 4 ,2 3 2 4 ,6 9 8 2 5 ,2 3 0 9 ,9 9 4 2 5 ,9 0 6 - -0 -0 -0 - 400 362 654 387 7 ,3 0 8 3 2 ,3 6 0 42 ,940 1 6 ,3 2 6 1 2 ,3 6 2 775 311 -0 - -0 200 1 ,7 8 5 -0 - 1 2 ,8 6 2 975 2 ,0 9 6 -0 - 1 ,3 5 1 1 1 ,6 5 0 1 7 ,6 3 0 8 ,9 7 4 7 .9 9 5 2 ,8 2 0 9 ,9 4 4 1 9 ,7 5 0 297 * 3 .2 9 8 4 ,1 7 1 2 1 ,5 9 4 3 7 ,3 8 0 9 ,2 7 1 41 .293 2,359 3,359 1,627 563 #406,402 25,nt 2 0,5 39 9 ,3 9 8 1 0,7 4 C #416,010 7 ,3 3 8 3 0 ,9 0 0 1 4 ,1 8 7 4 , 834 45 124 771 588 707 338 573 141 1 ,2 8 5 1 ,2 2 0 565 2 .6 2 9 # 8 2 2 ,4 1 2 # 8 0 ,6 1 7 >.SlC4 2 o ,5 f5 1,385 1 ,83c 1,603 1 5 ,5 7 4 1 ,1 6 0 5 1 ,4 .9 172 -C 613 2,175 3 7 ,9 7 0 6 ,0 7 3 3 7 ,8 5 2 3 0 ,3 8 1 1 4 ,2 9 4 8 ,9 7 3 1 2 ,4 3 1 1 5 ,6 7 7 5 2 ,2 6 4 1 5 ,0 4 6 5 0 ,2 8 3 4 6 ,0 5 8 1 ,8 1 3 900 301 .85 2^,464 J.856 2,387 0 2 , 3 22 11,101 1 ,1 5C 2 7g $12,154 ro x AL! $ 229,547 Feb. Mar. 5 11 19 26 t 12 19 . 6, n 4 .1 J 6 7 #119,446 ■■■ II H U U a iMHWi U 2SB # 2 6 ,6 3 3 1 0 ,2 8 3 2 6 ,0 1 4 1 5 ,6 2 0 - 544 878 2,5e5 1 6 .2 1 7 # j 48,993 ,-:.c 250 8 -0 - 502 460 351 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 * 1 7 ,3 5 3 -0 -c-0 - 0-0 -e - - 0- 0- 350 160 358 208 166 632 2 ,7 9 2 -0 316 1,847 1,610 995 560 -0 - 1,0 44 349 -0 - 1 ,4 6 0 387 -0 - -o -0 - 50 100 1,210 579 364 328 715 -0 177 645 737 770 ; , 133 1,415 2,128 135 3 .1 4 8 •>,392 - 0-0 - # 1 2 ,6 5 3 # 4 3 ,05 6 * 4 1 ,9 0 9 599 650 1 ,7 9 0 615 975 1 ,1 0 7 97 303 47o -C ” 965 542 -0 -0 50 -c -c-c- 1 ,088 -.14 1'V' i->,072 550 3 ,6 5 7 137 808 204 760 1 ,4 9 2 2,151 686 o,210 1 j 1 1 ,5 5 * 5 ,5 7 4 2 ,5 T » ♦ 9 t 808 t,m 5 ,4 0 4 8 ,0 4 6 3 ,5 »J f M# i,n j 1 .M 8 1.X95 1 ,4 8 8 3 ,« * 4 ,0 7 0 1 ,5 1 4 3 ,4 * T 1 0 , 04 T 3 ,1 1 1 4,4(29 9 ,5 1 1 3 0 ,8 6 2 1 5 ,6 8 1 2 6 ,5 1 6 - 3 ,4 9 5 3,5TT 4 ,4 1 2 6 ,9 4 3 M 5 f 1 ,0 5 « 2 ,8 f9 2 ,0 8 4 6625 7 ,1 7 9 + 1 5 ,5 3 8 38 ,6 0 2 + 1 3 .3 8 3 + 797 6 5 ,3 22 + 1 2 ,4 2 9 45,5 32 + 3 7 .2 6 6 + 4 ,8 8 5 3 ,2 1 7 4 ,6 9 4 3 ,2 9 4 2 ,5 9 9 3 ,0 3 7 3 ,2 5 4 3,0X1 423 1 ,4 1 7 1 ,4 7 8 2 ,0 9 3 -0 - # 39 ,43 0 # 88 ,85 0 #1,246,754 #62,778- #92,149- -0 - 661 -0 - 483 592 356 2 ,2 4 8 4 ,? t l 3 ,7 6 1 1 ,9 1 3 42,7 61 6 4 ,0 0 8 3 3 ,7 1 8 2 0 ,6 4 5 5 4 ,5 3 4 5 ,1 4 9 + 2 3 ,7 7 4 3 0 ,5 5 5 - 7 3 ,0 4 2 4 , l3 0 + 2 4 ,9 5 8 3 9 ,9 1 7 - 1 3 ,0 4 8 3 ,1 7 9 5 ,0 7 5 3 ,8 1 9 5 8,2 11 1 7 ,2 0 9 5 7 ,1 6 3 5 4 ,4 6 7 3 6 ,2 5 7 + 1 9 ,3 1 8 7,701+ 1 2 ,0 31 + 3 7 ,3 1 9 + 1 9 ,7 0 7 4,9 6 3+ 1 8 ,2 4 9 + 7 ,1 5 4 2 ,6 1 5 4 ,8 8 7 5 ,3 1 4 1 ,8 3 7 1 0 ,5 8 2 - 0-0 - JVM — W U #185,445 #204,415 7 ,1 1 3 8T4 3 ,4 4 0 3 ,5 5 0 769 469 -0 - 595 426 96 j 2.J Jbl 402 430 73C 369 -0 708 547 550 410 2.9C2 1 ,?30 4H> ^^j 721 * , 910 6 ;;4 -0 - j! 6 5 ,4 :7 42,46-9 2 4 ,5 7 8 — 2 8 ,1 0 4 - 1 1 ,3 4 6 5 ,9 3 9 44j 984 16 , 5c5 281 152 20,3 23 1 4 ,6 6 4 6 0 .9 0 4 - 8 ,6 4 0 -c - 1 0 ,9 7 1 6 2 ,0 3 1 - 3 ,5 1 8 8 .0 2 4 ,*2,109 # 5,0 8 9 $26,037 4 2 7 ,5 7 9 # 1 7 1 ,6 2 3 - # 2 0 6 ,5 8 5 - # 7 2 ,8 5 0 # 4 8 ,1 1 0 i 9 ,0 5 4 ' iZ < S o 5 ,8 9 9 3 ,9 5 * | i'- . 2 ,4 0 3 3 ,lj» 5 ,4 4 5 5 ,9 3 3 6 ,2 9 0 J ”- t,tu 2,129 __ 2 2 5 » 6, * Totals 4 8 ,3 2 9 4 4 ,6 8 4 3 6,5 59 2 4 ,1 7 0 3 #100,474 San Fran* D a lla s Dealers Operationa With Other # 1 0 ,0 5 9 3 ,2 9 7 ' 1 ,6 8 4 972 6 ,0 5 3 JLJtM 8 15 22 29 4 ,8 5 6 4 ,0 0 8 # Winn. INCREASE or DKCHKASS in Holding* Including SaleaCcBtracta Now Tork Sjreteis"" Operations Operations 504 747 509 672 5 -1 9 3 0 - Jan. 2,018 # 5 2 ,9 8 6 4 1 ,4 6 3 1 8 ,9 6 3 3 0 ,0 9 2 -0 - -0 1 ,4 1 8 84 1 ,1 8 7 24 31 8 ,6 2 4 1 8 ,0 8 9 1 4 ,5 « 1 4 ,8 9 3 1 4 ,1 1 3 9 ,8 2 8 1 3 ,9 6 6 2 ,3 2 3 12 383 18 I 1 ,0 1 4 1 ,1 2 5 962 1 ,7 4 4 18 4 11 883 577 1 8 ,5 6 4 1 4 ,7 2 8 3 0 ,3 9 2 9 ,1 6 2 1 ,5 7 9 6 ,3 8 9 1 ,5 0 6 4 ,7 0 1 18 -0 -0 -0 -0 - 1 ,6 9 4 5 ,3 4 6 5 ,0 9 9 705 1 6 ,8 7 0 9 ,3 8 2 2 5 ,2 9 3 8 ,4 5 7 4 11 # 2 ,7 8 2 1 ,7 2 7 1 ,5 5 4 290 1 ,1 3 4 April 8opt. 150 547 357 Chicago 16,000 13 20 27 Aug. -0 - A tla n ta -0 127 -0 1 ,4 3 0 March 6 July C leveland 1 ,2 5 1 539 -0 - 1 ,7 2 6 550 8 l6 1 ,5 6 4 5 12 19 26 P h il a. # 2 ,9 2 5 3 ,0 5 8 2 ,1 4 4 2 ,5 2 4 6 13 20 27 J«M " " T o ’ tV f # 1 6 ,3 0 8 2 5 ,1 3 6 2 5 ,1 6 7 I 1 5 ,6 0 1 8 ,7 9 2 4 ,6 0 5 1 ,1 4 8 r«b . Tort 7 ,6 8 4 7 ,0 4 7 1 0 ,6 2 4 1 ,1 0 7 9 1# 23 30 ia n T t S5 0 0 s 0 ISE Boston SRIttMT--------------------- ------- Reproduced from the Unclassified / Declassified Holdings of the National Archives leeks ilttUA& BCHIWT " ■ * 2 ,1 4 3 1,0 86 . . <■ > c & o S! m O! n o > _ C fli <Z5 B £ cst N* Mr Hi & Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . EXHIBIT "B " (a) CLASSIFICATION BY MATURITIES OF BILLS PURCHASED BY FEDERAL RESERVE BANKS IN THEIR RESPECTIVE DISTRICTS DURING TEDS PERIOD FROM JANUARY 3 TO DECEMBER 31, 1929 AND FROM JANUARY 2 TO MARCH 1 9 , 1930 ___________ (EXCLUDING SALES CONTRACTS)____________ __ — — (ooo Omitted) 1 -3 0 days January 3 to December 31 , 1929 Over 90-days 61-90 days 31-60 days Boston New York Philadelphia Cleveland Richmond A tlan ta Chicago D allas San Francisco $ 24,4 6 1 362,67 5 28,019 6 ,0 6 5 2 ,8 5 8 29^.939 21,690 1 3 ,2 5 4 1 7 ,2 7 5 $ 27,309 178,190 1 9 ,5 3 5 3 ,8 4 8 4 ,2 2 2 5,387 1 2 ,8 3 8 14,709 3 4 ,3 4 3 $ 45,645 261,554 33,063 7,440 5,573 7,356 7,381 7,035 34,454 $ 3,059 19,993 0 0 0 374 0 4,432 2,778 T o ta ls $>506,236 #300,381 $409,501 ^30,636 ___________ 1 -3 0 days Boston New York Philadelphia Oleveland Richmond Atlanta Chicago Minneapolis D allas San Francisco T o ta ls $ 2 ,5 1 2 182,869 1 ,7 7 8 0 949 3,621 2,551 625 2 ,5 2 4 4 ,7 0 2 $202,131 T otal $ 100,474 822,412 80,617 17,353 12,653 43,056 41,909 39,430 88,850 $1,246,754 January 2 to March 1 9 , 1930 _______________ .. 31-60 days 61-90 days Over 9 0 - d a y i T o t a l 4 ,5 9 3 1 0 3,884 5,267 0 1 ,0 3 8 1 ,1 4 7 6 ,300 1 ,0 0 5 1 ,6 8 2 14,211 $ 4,306 4 4 ,6 2 3 6 ,8 9 3 0 1 ,0 8 5 1 ,5 6 5 20 3 479 543 7»639 $139,127 #67,336 $ $ 743 1 ,0 6 3 0 0 0 0 0 0 340 285 $ 2 ,4 3 1 § 1 2 ,1 5 4 332,439 1 3 ,9 3 8 0 3 ,072 6 ,3 3 3 9 ,0 5 4 2,109 5,089 26,837 $ 411,025 Reproduced from the Unclassified I Declassified Holdings of the National Archives V I EXHIBIT MCM *11 S X A T ^ N r SHOWING CARTING ASSET L O L D IN ^ OF ALL .RAL RKSESVK 'U "K S f'AKCK 1 9 , 1 9 3 0 COJTAH J> ?H P r ^ I OUS ' ^ K EARNING ASSExS FROt; JANUARY 2 , 1 9 3 0 TO VAKCH 1 9 , 1 ? 3 0 , INCLT J 3 I VK > CO’ 'PARK'D .<1 Til CORR SPO P I - ' (0 0 0 B oston - M a rc h 1 2 B i l l * Die counted H N * 1? Nat Chang* - M a r c h 12 . 19 m Net Chang* 739- « * * 1 9 la m in g Asset* M a rc h 1 2 " if Met Ghang* C o m p a r is o n o f w e a k ly A v e r n g e ------------------------------- N e t C h a n ge " * 3 0 ,8 6 9 6 1 ,6 3 6 5 5 ,9 8 4 5 ,6 5 2 - jgalBK A ff J a n . 2 , 1 9 3 0 t o M »r. Sana p e r i o d 1 9 2 9 E n t ir e y e a r 1929 2 7 ,4 4 2 3 ,4 2 7 + N «tC h en ge Total 1 0 ,4 8 9 750 | 3 3 ,1 4 8 3 0 ,8 1 0 2 ,3 3 8 - 6 0 ,5 5 8 7 ,4 3 1 5 3 ,1 2 7 - *1 CtarerBMnt Secu rities - M a rch 1 2 * 18^365 4 ,3 4 0 - B i l l * Purehaaed m *22^705 New Y ork 19, 2 3 3 ,4 3 0 2 5 2 ,9 7 4 1 9 ,5 4 4 * 3 3 7 ,1 8 6 2 9 7 ,9 6 5 3 9 ,2 2 1 - Phi l a . $ 3 8 ,4 2 4 3 2 ,4 9 2 5 ,9 3 ? - 1 0 ,2 3 2 9 ,4 0 4 82 8 - 4 5 ,2 2 4 4 6 ,7 0 7 1 ,4 8 3 * 9 4 ,8 8 0 8 9 ,6 0 3 5 ,2 7 7 - R i c h : ’ on J A tla n ta 1:iiC T F 0 G t .I .c u ls $ 3 4 ,3 1 6 2 5 ,2 6 3 $ 1 6 , 6 83 1 4 ,7 0 7 124,319 4 3 8 ,3 5 8 2 4 ,1 7 9 * 1 4 ,4 5 0 1 2 ,3 4 1 1 ,9 7 6 - 1 2 ,7 2 .4 1 2 ,0 0 7 2 8 ,0 2 4 2 5 ,8 2 8 2,196- 717- 3 3 ,2 3 1 3 5 ,4 1 6 1 7 ,7 6 5 6,554- 95,571 8 , 7 77 1 2 ,8 2 2 8,8 26 3 ,4 3 4 - 7 1 ,4 5 9 7 2 ,5 1 9 1 ,060* 49+ 4 9 ,8 7 5 4 1 ,7 4 5 1 3 9 ,5 7 9 1 2 3 ,0 2 6 8 ,1 3 0 - 43* 9 ,0 6 4 - 2 9 ,7 6 2 2 6 ,3 2 8 1 ,6 2 5 - 10,086 3 9 ,4 9 3 3 9 ,5 3 6 8 6 ,5 0 7 1 4 ,1 7 9 - 1 6 ,^ 7 9 1 5 ,1 5 4 2 ,7 3 6 * 2 ,1 8 5 * , A ?.. .s 19 29;; ALSO tfSEKl.Y AVERAGE OF ,-ffAh- 1 ? 2? ..■ ■ ■— Orni tterJ) Jlevelund 9 ,0 5 3 - AKD WARCH 2 0 , 1 6 ,5 5 3 - 2 ,1 0 9 - 1 5 ,1 8 7 1 3 ,6 5 6 1 ,5 3 1 - 19,266 19,266 -0 - 4 8 ,9 3 3 4 5 ,2 9 3 3,640- 11122,* 1 2 ,1 9 0 2 ,2 5 2 K a n .C ity D a lla a San F r a n , $ 1 4 ,7 2 2 1 3 ,2 7 4 1 9 ,6 3 4 5 ,8 9 2 ♦ 1 7 ,3 8 9 8 ,2 9 4 1 ,4 4 8 - 62* 1 0 ,3 1 6 1 1 ,7 6 0 1 3 ,9 1 7 1 2 ,9 2 5 992- 1 ,4 4 4 * 3 ,0 6 3 5 ,9 2 3 1 7 ,2 6 4 1 8 ,7 4 6 1,482* 3 0 ,9 5 7 552+ 1 2 ,5 9 1 1 0 ,7 4 7 1 ,8 4 4 - 2 0 .6 3 5 2 0 .6 3 5 2 ,8 5 6 + 9 ,0 9 5 - 4 2 ,8 6 0 3 7 ,2 7 4 5 ,5 8 6 - # 2 6 6 ,3 3 8 2 0 5 ,6 3 4 6 0 ,7 0 4 - 3 5 ,9 5 9 256,538 34,027 1 8 5 ,0 1 7 ii3 2 - 7 1 ,5 2 1 - 2 4 ,2 3 6 ft4 ,n * 36,736 5*1,4** 12,500* 2, 860* 28,101 3 3 ,3 7 1 3 3 ,9 2 3 3 ,7 4 2 - T o ta l* r r ,5 « 4 7 9 ,0 5 7 1 ,4 7 3 + 47,326* l,04*,04f 960,870 8 8 ,I f f - of 1930 fr o m same p e r i o d 192 9 M e n t i r e y e a r 1 92 9 6 4 ,8 1 1 1 1 6 ,8 4 8 9 9 ,6 9 5 5 2 ,0 3 7 3 4 ,8 8 4 - 3 8 7 ,8 6 7 100,^65 34 2 ,0 4 0 3 7 1 ,2 4 8 1 2 5 ,3 0 8 1 2 0 ,2 3 6 4 5 ,5 2 7 * 1 6 ,6 1 9 * 2 4 ,5 2 3 1 9 ,4 5 1 * 111 , 1 1 4 1 4 5 ,0 9 5 138 ,3 8 3 33 , 9 ? i 27 , 269“ 4j ,443 5 9,731 6o ,530 , 0 , •' 1 0 S i , 121 tC; , I 05 1 4 , 2881 % 0 £ r/ - 2'7, ^ : i 26, 495- 1 6 3 ,8 9 5 2 4 5 , 23 j 194,lo 5 8 l,o 4 8o O ,250- 5r 979 6 8 ^ 427 6 6 , 041 17,4481 5 ,0 6 2- 3 0,813 39 ,5 6 8 3 0 ,2 2 9 5 2 ,7 2 5 5 5 ,4 2 0 4 0 ,0 1 6 8,775- 2 2 ,4 9 6 - 9 ,2 0 3 - 2 5 ,1 9 1 - 4 7 ,2 1 7 5 4 ,0 2 6 5 1 ,6 5 5 6 ,8 0 9 4, 4 ^ 8 - 6 9 ,2 2 5 1 3 7 ,e*7 1 1 4 ,4 8 6 6 8 ,6 4 2 4 5 ,2 6 1 - 1 ,1 5 5 ,9 7 8 1 ,4 6 8 ^ 0 0 9 1 ,3 9 4 ,9 5 0 3 1 2 ,0 3 1 2 3 8 ,9 7 2 - > o i-i S o M P a r ls o n o f E a r n i n g A s s e t s m March 1 9 , 1 9 3 0 * 2 0 , 1929 N et C h a n ge 5 5 ,9 8 4 8 5 ,4 1 9 2 9 ,4 3 5 * 2 9 7 ,9 6 5 290,218 7 ,7 4 7 + 8 9 ,6 0 3 86,507 1 3 7 ,0 1 2 i o l ,0 9 9 4 7 ,4 0 9 - 4 4 ,5 9 2 - j9 , 536 41 ,7 4 5 > 4 ,9 9 9 jj 1 5 ,4 6 3 - 2 2 , 235- , 9 iC 12J.026 2S4, ?; 5 4 5 ,2 9 3 33,923 3 0 ,9 5 7 3 7 ,2 7 4 7 9 ,0 5 7 7 3 ,0 0 0 3 6 ,9 1 3 5 4 ,9 1 4 3 7 ,4 1 0 1 1 6 ,8 5 2 1 6 1 , 929- j 2 , 70 7 - 2 ,9 9 0 - 2 3 ,9 5 7 - 136- 3 7 ,7 9 5 -. 9 6 0 ,8 7 0 1 ,3 7 1 ,7 7 1 o 4 1 0 ,9 0 1 d g ’.*1 ?'ARV FOR 3 Y S 2E?' s i l l s D i s c o u n t e d f o r *eelc B i l l s ; P u r ' i . u B e d f o r week G o v » r n i r a nt s e c u r i t i e s f o r week T o t a l K i i r n m - - “ SBclp. f o r rePk C o m p a r i s o n o f V'.'eekly i . v- \ r ur t - o f $ 6 0 ,7 0 4 7 1 ,5 2 1 4 7 ,3 2 6 * 88,199m ir .' A ssets J ?, 1 9 3 0 t o ! ' s r =h 1 9 , 1 9 3 0 w i t h sar.e r ^ r i o - J 1929 2 , I ' 1.:.'-' t o ’ ’ n r o h 1 9 , I 0 30 C o m p a r i s o r o f . / e e k ' y A v e r a g e o f £: m ir, -* A:~?>X b J w i t h e n t i r e y e n r 1929 C o r . p & r i s o n o f H u r n i n e A s s e t s ! ,' a r « h 1 9 , 1 9 3 * w i t h M a rc h 2 0 , 1929 3 1 2 ,0 3 1 2 3 8 ,9 7 2 4 1 0 ,9 0 1 - Reproduced from the Unclassified I Declassified Holdings of the National Archives ,— „ ------------------------- DECLASSIFIED I Authority E.6. E xhibit "Dn STATELUNT SHOWING EARNINGS OF ALL FSDEriAL RESERVE BANKS FOR JANUARY AND FEBRUARY 1930 R atios Based on Each Bank's Expenses and Dividends fo r Year 1929 Boston 7 $ Gross Earnings January and February 1930 $ Percentage o f Each Bank’ s Gross Earnings to T otal Gross Earnings 4 4 5,949 5 .2 1 Actual Net Earnings A vailab le fo r De p recia tio n Allowances, R eserves, Surplus and Franchise Tax $ 38,5 5 3 (A) York 20 1 /2 $ 2 ,8 0 7 ,2 6 2 3 2 .7 8 1 ,0 4 8 ,7 9 7 P hiladelphia 6 1 /2 $ 738 ,3 5 4 8 .6 2 224,090 Cleveland 9 1 /2 $ 8 9 7 ,0 5 2 1 0 .48 279,050 Richmond 5 1 /2 $ 361,695 4 .2 2 19,4 3 1 A tlanta 7 3 /4 $ 406,830 4 .7 5 1 3 6,796 $ 1 ,2 5 3 ,8 1 6 1 4 .6 4 3 54,478 S t . Louis 6 3 /4 $ 3 68,754 4 .3 1 7 6,3 8 0 Minneapolis 3 1 /4 $ 216,516 2 .5 3 18,810 Kansas C ity 5 3 /4 $ 287,316 3 .3 6 61,488 (A) D allas 5 $ 335,257 3 .9 1 71,816 San Francisco 9 l/2 $ 444,679 5 .1 9 71,795 (A) ^ 8 ,5 6 3 ,4 8 0 100$ kgw Chicago T otals 13 100 $ ,>2,057,811 Total for same period 1929 - - - - - 3 5 ,6 2 3 ,1 8 3 D e fic it \ /^ Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . U35k STATEMENT SH07/XNG APPROXIMATE AMOUNT OF NET PROFIT THAT WAS REALIZED ON VARIOUS SALES OF UNITED STATES GOVERNMENT SECURITIES HELD IN THE SYSTEM ACCOUNT AND IN THE FEDERAL RESERVE BANK OF NEW YORK INVESTTIENT ACCOUNT __________________DfTHING PERIOD OCTOBER 31, 1929, TO MARCH 2 0 , 1950.__________________ System Account Net P r o fit on Sales During Period Oct. 31, 1929, to Mar. 2 0 , 1930 on Various Amount of Holdings Approximate Amount o f P r o fit to be Realized on Sale to Treasury in the Near Future of $ 5 0 ,0 0 0 ,0 0 0 “ 3 1 /2 $ Treasury Notes at Par $>180,126.83* 9 7 ,4 6 0 .8 5 Investment Account F .R .B , N. Y. $ 5 4 0 ,2 0 4 .0 6 1 1 3 ,9 6 2 ,5 0 * $ 1 7 4 ,4 0 3 .5 3 o f th is amount i s being held by the Federal Reserve Bank of New York in Suspense Account, to be d istrib u ted at the end o f the current year. Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED Authority E .6 . IBSfc '4 ^ ^ ^ (Match SO* 1930*) PRELIMINARY MEMORANDUMFOR THE OPEN MARKET INVESTMENT, C(M€ETTEE The most important development in the credit situation since the last meeting of the Open Market Investment Committee on January 28 and 29* is that The January figures for business and trade were slightly better than those for December, and February in turn was very slightly better than January* But the improvement in both months was so small as to leave the total volume of produc tion and trade below the corresponding period in any recent year. appears to have been more severe than in either 1924 orIS27* The recession Accompanying the business recession unemployment has become serious, probably more so than in any year' since 1921. In both 1924 and 1927 business was supported in recessions by a continued substantial volume of building construction, but in the past few months building has continued at a low ebb without any indication yet of substantial recovery* money rates The trend toward easier money conditions which was observed at the time of the last meeting has continued even more rapidly than was then anticipated, partly due to a reduced demand for credit and currency for business, but more largely to a heavy flow of gold imports, mostly from Japan and Brazil, which has totaled about ^100,000*000 in the period. In the past two weeks Treasury opera tions in connection with the March 15 tax period have been an additional important factor toward ease.. For ten days before "the tax period the Treasury balance at the Reserve banks was draip. down to exceptionally low figures, thus putting funds into the market* and at the time of tho tax period the excess of funds in the market as a result of large Treasury disbursements covered by anoverdraft could not be absorbed in tho usual way by a reduction in member bank indebtedness. And as a consequence there was a considerable volume of free funds available in the Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E .6 . IBSfe market YJhich tended to depress money rates rapidly. On March 19 total hills dis counted for the Federal Reserve System were 0206,000,000 .3497,000,000 on January 29. as compared with The decline in money rates in this period is in dicated in the accompanying table: January 29, 1930 Rates for Commercial paper 4 3/4-5 90 day bills (offered ) 4 Call money (renewal) 4 1/2 Time money -Bank p, , rates , to , customors . . . m New York 4 1/2 (nominal) Jan. 15 Feb. 15 5.41 . 5.09 March 21, 1930 4 £ 1/2 3 3 3/4 Mar. y, 15 0/4 On March 18 the NGw York Clearing House reduced deposit rates by 1/2 of one per cent except for the rate on bank deposits which remained unchanged. In the early part of this period rates tended to move rather sluggishly and to reflect rather slowly the fundamental changes In tho credit position, but during the latter part of tho period the docline became precipitous and during thu tax period ev^n more rapid than th^ fundamental credit situation appeared to justify. BOND AND STOCK MARKETS The effects of easy money and freely available credit have been in the first place to stimulate a vigorous recovery in the bond market. Bond prices have risen to the highest points in more than a year, and the bond market has been opened to new issues; so that bond financing is now in substantial volume and well absorbed. This is of particular importance with relatjois to the busi ness situation beeause it makes possible the carrying forvrard of many business undertakings which had been postponed because of the condition of the bond market. The stock iiarket remained irregular until the past week when it made a considerable recovery with more active trading than for some time* Brokers loans as reported to the Federal reserve banks have risen $500,000^300 since the last Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . 1235!o 3 meeting of the committee* This probably represents in part an increase in loans by banks to replace loans withdrawn bec&use of low rates by lenders vrtiose opera tions do not appear in the Federal reserve reports, but it reflected in part also th.. recent recovery in stock prices. BANK CREDIT The total volume of bank credit continued to decline until the end of February but since that time has risen about $300,000,000 and is now about as large as at the middle of January. The increase has been mostly in security loans, as so-called commercial loans have remained close to the lowest point of the year. In the week ended March 19 bank investments shov^cd their first sizable increase, part of which resulted from subscription to the new Treasury issue. F3D5RAL R3S5PT5 POSITION In the face of continued business depression and a rapid downward move ment of money rates changes in Federal reserve bank discount rates have taken place more rapidly than was anticipated at the time of the last meeting# Since that time two changes have been made in the rates of the New York and Cleveland banks and one change in the cases of Boston, Philadelphia, Richmond* Chicago, St. Louis, Minneapolis, Kansas City and Dallas* Du: ing the early part of the period the Reserve banks weru successful in pursuing the policy adopted at the January meeting of holding their bill portfolio at a level close to the level of the latter part of January* which was b^twuon ^275,000,000 and ^300,000,000. Early in March, however, it became clear that, with a decline in the total volume of bills in the market, and an increasing demand for bills from banks and others seeking short term investments, it would be impossible to maintain the bill portfolio. In these circumstances and in view of the unfavorable business situation the New York reserve bank, after consultation with the Federal Reserve Board, undertook to purchase $50,000,000 of Government securities, All reserve banks were advised of this operation Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E .6 . U35fe and offered participations in the purchase, and eight of the reserve banks took participations. The following table compares system figures for March 19 with those for January 22* March 19 figures are distorted somewhat by the Treasury overdraft. More normal figures for this week will show an increase in bills and discounts, replacing the overdraft. (In millions of diollars) Bills Bills U. S. Other discounted bought securities securities January 22 March 19 433 206 185 561* 9 298 477 15 Total bills and securities 1,223 961 * Includes $29,000,000 of the $44,000,000 special one-day Treasury certificate of indebtedness to cover overdraft on that date; a :)15,000,000 participation in the certificate was held by a Hew York Member bank. Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6. TELEGRAM 3 FEDERAL RESERVE SYSTEM (LEASED W IR E SERVICE) 18* B RECEIVED AT WASHINGTON, D. C. P h ila d e lp h ia 1 0 3 0 * M a r 1 8 Washn I w i l l r e p r e s e n t %hIs lank a t S e a tin g of ©pen market committee H o rrta /Z L jU ^ a—11901 3/ ' * Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . U354> TELEGRAM FEDERAL RESERVE SYSTEM (LEASED W IR E SERVICE) 'h J ? r Z P r f ' RECEIVED AT WASHINGTON, D. C. Kansasoity Mar 14 120 2p /f 3 ^ Young Trashing ton Referring wire 12th \ this hexOc expects to tie represented at open market meeting march 24 S. 8. GOVERNMENT PHIHTINO OFFICE 19S8 ' . $9*4 iiington 132p 2—11901 Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . IBSk TELEGRAM ----------- 33 FEDERAL RESERVE SYSTEM (LEASED W IR E SERVICE) RECEIVED AT WASHINGTON, D. C. 169 bfa Boston 220p Mar 13 d ^oung Washn ■^his bank expects to be represented at open market meeting called for monday March 24. V. 8. AOVBRKrVBKTFUNTBfeMTIOI 1M1 Harding 235pm a—utoi Reproduced from the Unclassified I Declassified Holdings of the National Archives __ d e c l a s s if ie d Authority E .6 .1 2 3 5 k TELEGRAM 1 FEDERAL RESERVE SYSTEM „ 3 'J 5 , j ~ > -v (LEASED W IR E SERVICE) RECEIVED AT WASHINGTON, D. C. jj 194bfa NewYork NY Mar 12 317pm Young Washn In the absence of governor Harrison I acknowledge Your,, ^ telegram (stating that meeting of open market committee lias been called -for monday March 24 this bank will be represented at the meeting Case S. B. ©OVSWNHBNT PRINTING 077101 IMS 324pm 2— 11901 Reproduced from the Unclassified I Declassified Holdings of the National Archives ------------------- ----------------- --- declassified Authority E .6 .1 2 3 5 fc 7% ' TELEGRAM FEDERAL RESERVE SYSTEM (LEASED W IR E SERVICE) RECEIVED AT WASHINGTON, D. C. 78omr20 ^ . ■^hila 3k tiar 12 / * 3 0 Young Digitized for 6 S. OO TKBNFRASER XKMTPBtXTXKOWTOl Ittft Washington Twill 1174 March XZ) This hank will he represented at open market meeting March twenty-fourth Hutt 303p 2—11901 Reproduced from the Unclassified / Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . IBSfe Ite p a r txn vn t WESTERN UNION TELEGRAM a—1786 ara 2 9 i FN15 SARASOTA FLO MAR 12 193Q ROY A YOUNG WASHINGTON REFERRING YOUR WIRE T H I S DAT e I EXPECT TO ATTEND MEETING OPEN MARKET COMMITTEE MARCH 2 4 .B E R FANCHER A mar 13 Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . TELEGRAM FEDERAL RESERVE SYSTEM (LEASED W IR E SERVICE) Ii RECEIVED AT WASHINGTON, D. C. 163dea Cleveland 251pm Moh IS Governor Young Wasbn Twill number 1174 at Florida* 9. ft. Ofor OVSBKFRASER MKNTPRWTINO017101 1MI Digitized wire transmitted to Governor Fancher . I M Bagley, Secretary 259pm 2—11901 [BSto Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E .6. TE LEG RAM FEDERAL RESERVE SYSTEM (LEASED W IR E SERVICE) RECEIVED AT WASHINGTON, D. C. 54rhta Hiohmond Governor 137pa mar 12 /? $ ^ young Washington T w ill n» s. eoTWNttiKTpRumNO•mca in* Mo 1 1 7 4 , w i l l attend open market meeting March 2 4 . Saay 138pm 2—11001 Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . IBSfe ELEGRAM FEDERAL RESERVE SYSTEM (LEASED W IR E SERVICE) RECEIVED AT WASHINGTON, D. C. 118 fy 22 Atlanta 152p March•12 JfS $ Young Washn Twill 1174.^ Governor Black will represent this Bank at open market meeting called for Monday, March 24th DigitizedOOYUNM1MT for FRASER PRWTIKa OVrXCBr IMS Taylor 256p 2— 11801 Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . U35k ~rELEGRAM -,0^ if* FEDERAL RESERVE SYSTEM (LEADED W IR E SERVICE) 165gb RECEIVED AT WASHINGTON, D. C. Chicago Mar 12 1252p Young .. / / ? Y ' l - n - z 11 Washn Replying your wire /this bank will be represented at t-------------------- * open market meeting called for monday march twenty fourth While governor McDougal is away at present he is expected to return in time to attend the meeting S. & ©OTttNMtHTPRINTINGOFTICS IIH Mckay 157p 3— 11901 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E . 6 . 12354, ■’"ELEGRAM 3 3 ^ .-^ ^ FEDERAL RESERVE SYSTEM (LEASED W IR E SERVICE) RECEIVED AT WASHINGTON, D. C. 223go Stlouis 254p Mar 12 M %d Young Washn Will "be present at open market meeting mon&ay march 24th r 8. &for 0VDXXFRASER M1NTWUKTDMIWR«: IMS Digitized Martin 4p 2—11901 Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority ELEGRAM E . 6 . 1235k 3 33.-1> FEDERAL RESERVE SYSTEM (LEASED W IR E SERVICE) RECEIVED AT WASHINGTON, D. C. 142gb Minneapolis Mar.12 1219p /f5d Young fashn Referring trans ll?4yfehis bank will be represented at meeting march 24 http://fraser.stlouisfed.org/ 0 S. eOVtBNkfKNTWtDfTCTOSHIM »M® Federal Reserve Bank of St. Louis Geer y lSlp | 2—11901 Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . 1235k HELEGRAM ------------------ W FEDERAL RESERVE SYSTEM (LEASED W IR E SERVICE) 222gb 15 RECEIVED AT WASHINGTON, D. C. Dallas 255p Mar 12 ./f 3 d Young Washn Twill 1174 expect to attend open market monday marcii 24 r s. eovnmwrrnmon«rno*: ims Talley 35 7p meeting r Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E .6 . TELEGRAM 33 FEDERAL RESERVE SYSTEM (LEASED W IR E SERVICE) 167gb 4 RECEIVED AT WASHINGTON, D. C. Sanfrancisco Mar 12 1050am / ' ^ Governor Young Washington. I will attend open market meeting mondaj march twenty fourth «. 0. flOVEHNMENTPRINTINGomCW 1B3S Galkins 158p 2—*11901 Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . o ) *?■> Date: FOR ANSWERS SEE: 1. ■ 3 // 3£> g. hfI? / 3 0 5. 3/ 1 2.J 5 0 4. i /f l J l O 5. 3 /n /$ Q 6. s j / z j z o 7. z h t j 20 8. 3 / , S l/ 9. i j l l / l O 10. 11. IE . / t. O 3/ z y / 3 ^ V/r/ V ' Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED" Authority E.6. -^r i iiift TELEGRAM I F E D E R A L R E S E R V E BOA^D " LEASED WIRE SERVICE W A SH IN G T O N W#%mm - l i i r Torfc M * VHtMtafo'hta Opm W m * Mm I Vtm m ifcrfca* bm- bwm §m If fm* tfts& «JU1 be & £ Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . 12354, Form N o. 131 Office Correspon ^ei ;e To_ Federal Reserve Board FEDERAL RESERVE BOARD _____ _ j_Lte Ft. ^uary 20 r 1950 Subject:. From _ Mr . MeG1 e11cind.< (i 2— v xi r ' y * At the meeting of the Board this morning theije was ordered* circu lated the attached copy of the acting secretary's minuteg of the meeting of the Open M arket Policy Conference, held in Washington on J^uary^28 and 29. \ , Young, __ Platt, Vftr* Hamlin, James, Gunningiham, Miller, K Pole. Please circulate promptly and return to this office. ^ Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . U35fe - f ■. 4» $ Boor Mr. Burgoo*: I ookaovlodco recolpt of and tfcMk you for /oar lotto* Of *o»iMB 3*. ogclotlag * oopgr of 111 1 rt*»too\, f ! ." of tfco oooU— of tho Opoo Kftikil Xnvottaoat Gooolttoo bold la fao&iictoti mi January 28 oat 20* Tory Iralj year*, ft* A. Towkg* Oovomor. Hr. V. Boa&olph largooo* Actiog Socrotory* 0po& Morkot 7odor&I iosorro Bonk* loo Toxic* Bow Toxic* Cosaaitfcoo, T ' f'u u : ; -: Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . U3S&> RECEIVED . Fe d e r a l R e s e r v e B a n k FEB T9 193(| of Ne w Yo r k OFFlOE 05* TH® 0 0 V T O N Q R CONFIDENTIAL Februaiy 18, 1930 Dear Governor Youngs I There fh e re i s e enclosed herewith f o r your info rm atio n the h0 3 2 3 , * <6r * X minutest or the ^meeting o f the Open Market Investment Inv< Committee I held in Washington on January 28 and 29, 1930 Very t r u ly yo u rs, W. Randolph Burgess A cting S ecretary Open Market Investment Committee Honorable Roy A. Young, Governor, Federal Reserve Board, Washington, D. C. E n cl. M fr u J ( h r u & t r t c j' A F io i^ B W m N a . FEB 20 1930 /ZJtJL ' Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 .1 2 3 5 k R ECEIV ED F e d e ra l R e se rv e B an k of FEB l 9 1930 OFFICE OF Ne w Yo r k THE aOVBJENOR February IB , 1950 PE RS ONAL Dear Governor Young: We are e n clo sin g , f o r your f i l e s , a copy o f the %<5 L^m-4 3 3 ~ tr * Du nfm inu tes\o f the meeting o f the Open Market Investment Com 1j >- m ittee held in Washington on January 28 and 29 \ Very t r u ly yours, A . W. Randolph Burgess A cting S ecretary Open Market Investment Committee Honorable Roy A. Young, Governor, F ed eral Reserve Board, Washington, D. G» E n cl. z^ee Qa a j o J( Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E.6. F e d e r a l R e s e r v e Ba n k o f P h i l a d e l p h i a 9 2 5 CHESTNUT STREET RICHARD L.A U S TIN GEORGE W. NORRIS, G O VERN O R Wl LLIAM H. H U TT , D EPU TY G O V ER N O R C.A. MS ILH EN N Y , c a s h i e r CH AIRM AN O F T H E B O A RD AN D FEDERAL RESERVE AGENT ALBA B. JO H N SO N A S S IS T A N T C A S H IE R S D E PU TY CH AIRM AN O F T H E B O A R D W .J.D A V IS JAMES M .TO Y R .M .M IL L E R ,J R . FRANK W. LA BOLD S.R .E A R L ARTHUR E .P O S T AS S IS TAN T FEDERAL RESERVE AGENT ER N EST C. H IL L AS S IS TAN T FEDERAL RESERVE AGENT February 1st, 1930. My dear Mr. McClelland I have this morning your letter of January- 51st\ enclosing copy of the statement that T'lnade,*o^^iSSre5aay last in explanation of the report of the Open Market Committee, which I return herewith. I had supposed that Mr. Harrison would make this explanatory statement, and was taken completely by surprise when I was called upon. Under these circumstances, I do not have a very clear recollection of what I said, but I presume that your report of it is made up from shorthand notes, and I have no doubt that it is cor rect. I am quite sure that you have not included anything that I did not say, and it seems to me that you have very well covered what I probably did say. I have therefore no cor rections to make. I am, Very truly Governor Mr. E. M. McClelland, Asst. Secretary, Federal Reserve Board, Washington, D. C. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority j | j tho System to do anything l ik e ly to have th at e f f e c t . E.O. U35fc> The m a jo rity opinion was th at what has alrea d y been done has set in motion a trend which should j r e s u lt in lower rates# Between a reduction o f discounts and la rg e purchases t o f s e c u r it ie s , and a reduction o f rates to b usin ess there i s always a lag and th at lag i s l ik e ly to be g re ate r at t h is time because the ap p etite o f the bankers has been whetted during recent months and they are slow er about coming down. There i s every reason to a n tic ip a te th at the reduction w i l l occur, so that i t i s b elie ve d the cu rre n t i s se t in the d ire c t io n of e a s ie r rates* We (speaking here fo r the m a jo rity o p in io n ) f e e l we should not in t e r fe r e in that movement e it h e r in the d ire c t io n of h a ltin g i t or attempting to expe d ite i t , u n less the s itu a t io n c le a r ly c a l l s f o r some a ctio n and we cannot see th at i t does. On the co n tra ry , we f e e l i t i s b e tte r that the s itu a tio n should c le a r up fu rth e r, th a t the extent and duration o f t h is re ce ssio n should be more ’ a sce rta in a b le than a t the present moment, and th a t i t i s in expedient far.jag.JM3 exhaust a t the present time any p art o f our ammunition in an a tte ^ i ^ l ^ s ^ 1^ " la t e business when i t i s perhaps on a downward curve and we had b e tte r w ait u n t il we fe e l that we have reached a sta b le b asis where the a d m in istra tio n o f some stim ulant may hsve a d is t in c t and good e ffe c t rath e r than to exhaust our ammunition now in what may be perhaps a v a in attempt to stem an in e v it a b le re ce ssio n . Therefore, the recommendation i s made that we see no n e c e s s ity fo r open market operations in Government s e c u r it ie s a t t h is time e it h e r to h a lt or to expedite the present trend of c r e d it . The m a jo rity o f the Committee i s not Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E.G. (£&£> - 2 in fa y o r o f any ra d ic a l red u ctio n in the b i l l rate o r r a d ic a l buying o f b i l l s which would create an a r t i f i c i a l ease or n e ce ssita te a redu ctio n in the d iscoun t ra t e . I f th a t reductio n comes about n a t u ra lly from fu rth e r liq u id a t io n o r reduced demand, a l l w e ll and good, but we do not f e e l th a t we should make any a c t iv e e ff o r t to b rin g that about. There fo re , we have lim ite d t h is recommendation to the maintenance o f the present p o r t fo lio and such in cre a se as may be n e ce ssa ry ,!n o t to avoid some in cre a se i n d is c ou nts. but i f any co n d itio n s lik e ly to b rin g about a hardening of rates uta iioi 4axta . —x _ . eninp' should be prevented by in cre a sin g Uie b i l l p o r t f o lio . We do not b e lie v e th at in the present temper o f the p u b lic there i s any danger of a re v iv a l o f a c tiv e sp ecu la tio n in the market. lie do not fa v o r any such o perations in b i l l s as w i l l n e c e ssita te a reduc tio n in the d iscount ra t e , but i f i t should come as the r e s u lt o f the general trend o f events, th at i s a matter between the bank and the Board. The seasonal demand during the sp rin g may not be as la rg e as usual and may not reach more than $75,000,000 and th at probably could be taken care o f by an in cre a se in re discounts without hardening of r a t e s . A g re a te r demand might have a hardening e ffe c t which should be presented by the purchase o f b i l l s , but we d is t in c t ly fe e l that no operation in b i l l s should be undertaken f o r the purpose of e it h e r fo rc in g or f a c i l it a t i n g a reduction in discount ra te s by any bank. Reproduced from the Unclassified I Declassified Holdings of the National Archives January 51, 1930# Bear Governor N o rris : In ' subm itting' th e re p o rt o f the Open- Mar k et P o lic y Conference to the F ed eral Reserve Board a t tli® jo in t m eeting on January 29 you made a s ta te sman* in e x p la n a tio n o f tlie re p o rt, b u t as i t was neces sa ry f o r you to leave th e m eeting b e fo re i t adjourned! tfcsre was no o p p o rtu n ity to check w ith you th e reco rd There is , th e re fo re , enclosed herewith a copy o f your statem ent and i t would be ap p re cia ted i f you would nake such c o rre c tio n s th e re in aa you aee f i t and re tu rn sane to th is o ffic e so th a t i t aaay be in c lu d ed ia th e Board’ s o f f i c i a l reco rd o f th e proceedings o f th e m eeting* V ery tr u ly yo urs, I . M* M cC lellan d , A s s is ta n t S e cretary , H r. Geo* W* H o rris , Governor, Fed eral Reserve Bank, P h ila d e lp h ia , Pa* from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E . 6 . U 3S io There were differences of opinion regarding the witter before the conference, the representatives of two of the banks feeling it is desira ble to have a distinot easing of rates and that it would be advisable for the System to do anything likely to have that effect* The majority opinion was that what has already been done has set In notion a trend whioh should result in lower rates* Between a reduction of discounts and large purchases of securities, and a reduction of rates to business there is always a lag and that lag is likely to be greater at this tim® because the appetite of the bankers has been whetted during recent months and they are slower about coming down* There is every reason to anticipate that the reduction w ill occur so that it is believed the current Is set in the direction of easier rates. We (speaking here for the Majority opinion) feel we should not interfere in that movement either in the direction of halting it or attempting to expe dite i t , unless the situation clearly calls for sons action and we cannot see that i t does* On the contrary, we feel It is better that the situation should dear up further, that the extent and duration of this recession should be more ascertainable than at the present moment, and that It Is inexpedient for us to exhaust at the present time any part of our ammunition In an attempt to stimu late business when it is perhaps on a downward curve and we had better wait until we feel that we have reached a stable toasls where the administration of some stimulant my *rve a distinot and good effeet rather than to exhaust our ammunition now in what may be perhaps a vain attempt to stem an inevitable re cession* Therefore, the recommendation is made that we see no necessity for open market operations in Government securities at this time either to halt or to expedite the present trend of credit* The majority of the Committee Is not Keproauced from the Unclassified / Declassified Holdings of the National Archives declassified Authority - 2 - E.6.1235k '- • - '^ r a in fa v o r o f any ra d ic a l re d u c tio n In th e b i l l r a t * o r ra d io a l buying o f b i l ls which would c re a te an in th e disco u n t r a ta * m «« o r n e c e s s ita te a red u c tio n I f th a t red u c tio n comes about a » tu r a lly from fu rth a r liq u id a tio n o r reduced dewand, a l l w e ll and good* but we do n o t fa a l th a t wa ahould wake any a c tiv e e f f o r t to b rin g th a t ab o u t. There fo re * wa have lin it a d th is raooaaendation to th a M aintenance o t th a p reaent p o r tfo lio and auoh inoraaaa aa any ba necessary, n o t to avoid lo a e ln sraaaa in discounts , b u t i f any c o n d itio n s lik e ly to b rin g about a hardening o f ra te s a r ia s , th an wa b e ll ere th a t hardening should be prevented by in crea sin g tha b i l l p o r tfo lio * Ha do n o t b e lie v e th a t in th a present tam per o f th e p u b lic th e ra is any dsnger o f a r e v iv a l o f a c tiv e s p ec u latio n in th a a a rk e t* r;e do n o t fa v o r any such o p e ra tio n s in b ills aa w ill n a o a s a ita ta a reduo* tlo n in tha d iscoun t r a te , b u t i f i t should coad as th e re s u lt o f th a g en eral tre n d o f e v e n ts , th a t is a a a tte r between th e bank and th a Board. Tha seasonal denand d u rin g th e sp rin g way no t ba aa la rg e aa usual and say n o t reach More than 17 5,0 00,0 00 and th a t probably oould ba taken care o f by an in crea se in re discounts w ith o u t hardening o f ra te s * A g re a te r dewand w ight have a hardening e ffe c t whioh should be precanted by th e purchase o f b ills * b u t we d is tin c tly fe e l th a t no o p eratio n in b ills should be undertaken fo r th e purpose o f e ith e r fo rc in g o r f a c ilit a t in g a red u ctio n in discount ra te s by any bank* Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E.6. 1235k W ""inhere were d iffe re n c e s or opinion regard ing the m atter before the conference, the re p re se n ta tiv e s o f two o f the banks f e e l ing i t i s d e s ira b le to have a d is t in c t easing o f ra te s and that i t would be a d v is able fo r the System to do a n y th in g ^ lik e ly to have that e ff e c t . The m a jo rity opinion was that what has a lrea d y been done has se t in motion a trend which should r e s u lt in lower ra t e s . Urn fie tween a re d u ctio n o f discounts WKHm and la rg e purchases o f s e c u r it ie s , and a red u ctio n o f ra te s to b usin ess there i s always a la g and that la g i s l i k e l y to be g re a te r at t h is time because the ap p etite o f the bankers has been whetted during recent months and they are slow er about coming downy* _______ ^ __ _________ _ ___________ MPhere i s every reason to a n t ic ip a t e that the red u ctio n w i l l occur so that i t i s b e lie v e d the cu rre n t i s se t in the d ire c t io n o f e a s ie r ra te s .]f We (speaking here f o r the m a jo rity opinion) f e e l we should not in t e rfe re in that move ment e it h e r in the d ire c t io n o f h a ltin g i t or attempting to expedite i t , u n less the s it u a t io n c le a r ly c a l l s fo r some a c tio n and we cannot see that i t d o e s .^ <Ton the co n trary, we f e e l t & t i s b e tte r that the s it u a t io n should c le a r up fu rth e r, that the extent and d u ra tio n o f t h is re c e ssio n should be moreasc e rta in a b le than a t the present moment,and that i t i s inexpedient f o r u s to exhaust at the present time any p a rt o f our anam ition in an attempt to stim u late b usiness when i t i s perhaps on a downward curve and we had b e tte r w ait u n t i l we f e e l that we have reached a sta b le b a s is where the ad m in istra tio n o f some stim ulan t may have a d is t in c t and good e ffe c t ra th e r than to exchaust our am unition now in what may be perhaps a v a in attempt to stem a in e v it a b le recession* Th erefore, the recommen d atio n i s made th at we see no n e c e s s ity $ read from recommendation) • The m a jo rity o f the Committee i s not in fa v o r o f any r a d ic a l re d u ctio n in the b i l l rate o r r a d i c a l buying o f b i l l s which would create an a r t i f i c i a l ease o r n e c e ssita te a reduc tio n in the d iscou nt rate* I f th a t re d u ctio n comes about n a t u r a lly from fu rth e r liq u id a t io n o r reduced demand, a l l w e ll and good, but we do not f e e l that we should make any a c t iv e e f f o r t to b rin g that about. Th erefo re, we have lim ite d t h is re commendation to the maintenance o f the present p o r t fo lio and such in cre a se as may be necessary, not to avoid some in cre a se in d isco u n ts, but i f any co n d itio n s l i k e l y to b rin g about a hardening o f ra te s a r is e , then we b e lie v e that hardening should be prevented by in cre a d in g the b i l l p o r t f o lio . We do not b e lie v e that in the present temper o f the p u b lic there is any danger o f a r e v iv a l o f a c t iv e sp e cu la tio n in the market. We do not fa v o r any such operations in b i l l s as w i l l n e c e ssita te a red uctio n in the discount ra t e , but i f i t should come as the r e s u lt o f the general trend of events, th at i s a m § t j f c £ E . t h e b a ^ ajid the Board. : -T h e seasonal demand during the sp rin g may not be as la rg e as u su a ljjr and may not reach more than $75,000,000 and th a t/co u ld be taken care o f by an in crease in re d isco u n ts w ithout hardening o f ra t e s . A g re ate r demand might have a hardening e ffe c t which should be prevented by the purchase of b i l l s , but we d is t in c t l y f e e l that no operation in b i l l s should be undertaken f o r the purpose o f e it h e r fo rc in g or f a c i l it a t i n g a red u ctio n in discount ra te s by any ban k.V Ilo la tc iT jottUT. w * U-fc M j u M b —»T "h t"""1p Am tlin ^ninnwm:d..ABfmi1 nhnwM U a if HAidLt . Keproduced from the Unclassified / Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . 1235k The Open M arket C o iaaittee, in c lu d in g in fo rm a lly the Governors o r Deputy Governors from eleven o f th e F ed eral rese rv e banks, has considered the re p o rt o f th e s e c re ta ry o f th e Open M arket Consnittee, the p re lim in a ry memorandum, and. the d ata subm itted by th e F e d eral Reserve Board and by re p re s e n ta tiv e s o f th e sever a l reserve banks, and has reached the fo llo w in g conclusions upon the m atters th e re in re fe rre d to and upon th e s p e c ific questions asked by th e F e d e ra l Reserve Board* The fa c ts appear to be; 1* The panicky fe e lin g has subsidedo 2* A business recessio n has taken p la c e , th e e x te n t o r d u ra tio n o f which is n o t y e t p o s sib le to determ ine* 3* Money has been made a v a ila b & i to caumerce and in d u s try a t more re a sonable ra te s * L iq u id a tio n is progressing in an o rd e rly fash io n * O 5* Rediscounts have been reduced to under # 4 50 ,000 ,00 0* ■:;mk JS ^ However, th e re is a la rg e volume o f s e c u rity loans in member banks which th ey a re anxious to g et reduced* ?* L iq u id a tio n has been slow er in country banks than in th e c ity banks* Under these circum stances i t is th e judgment o f the Committee th a t no open m arket o p eratio n s in Government s e c u ritie s a re necessary a t th is tim e e ith e r to h a lt o r to exp ed ite th e presen t tren d o f c re d it* The Committee b e lie v e s however, th a t i t would have an u n fo rtu n a te e ffe c t up on business i f the demand fo r a d d itio n a l c r e d it fo r sp rin g business, concurrent ly w ith th e running o f f o f the present b i l l p o r tfo lio o f the System should re s u lt in a hardening o f ra te s * I t th e re fo re recommends th a t the minimum buying ra te fo r b i l l s , fix e d by th e F e d e ra l Reserve Board, be reduced so th a t th e F ed eral reserve banks may have such f l e x i b i l i t y in th e ir b i l l op eratio n s th a t the p resen t p o r tfo lio may be not only m aintained b u t m y i f necessary be increased to such e x te n t as to avoid the h a rd „ ______ demaal fo r a d d itio n a l reserve -r.-iT'g o f ra te s whioh m ight re s u lt frcm a seasonal awna c re d it* Reproduced from the Unclassified / Declassified Holdings of the National Archives Tho BooiA 1m eo&#i<!or«A tho roport of tlao Opm mrisst Polity Conforonoo oad notes (1) *Hiot it is th« JadipMmt of tho Coaforoaoo that ‘♦ao MAttost rperttioM in Ooitraml $t«KriUfl« « n aootooofy *t M i tta«$ (2) Hint 11 *otdUi hovo on wfortoaatto offoot w>oo if ^i» donand for uddlttsnAl «ndlt for fjfflar ktiiw tt oM w m ilV «rlth n m l^ off la tho pvoooat M il'portfolio of tho System shoald fom li ia tho hrtdoalae of f»tH| mA {2) ifot tlio Conforonoo forthor roeog&lso thot/*fnlnla«i taqr&ag rato fo r M i l * flstft hy tho ?*6oy*1 $ 000*00 £o*»id ho rodueod oo th o t tho Tedorol rooono honks asp Hr-vo ««#) flexibility la their oporotloao that tho p r o m t portfolioo may aot «aljr ho aoiatolaoA hat If s o o itm s y ho S»* erooood to i« h *n oxtont «*o to ovoM tho hrtTdonlar of rates «hleh » y i t result fwm m wmmml Amumfr for iM ltiouil roooroo efadil*4 19m t«sri hits am lalty coaaldorod tho rsport of tho cooforonoo sttpploaaatMl oo it mi hy ■ dotollod orol qoootictto on& disoaooiofto ot tho m& '$s6no*dfqrt Imiiirxt 38th. mid ?9ttu noottsi^o of ^%o $ooi4 opiates that o hr itiooiar of rotoo ohstbor imeh h^rdoaliy? Aod4 1® of tho rooult frois domaod for wddltloftat reduction of tho credit for Spring1hiisiaooo or that o total *olm» of m on o credit should ho &w$M, mb is thoroforo ntopafod ot say tlao to coasldor a yefaetlQa la the offfcotloo hggrtaf roto for M ilo oo owoorolol o tttatnvm rotoo, fi^ a l# t ho aooooooxy to prsvont o hsidontag of this la bImS Dm Board io aow yu giwd to opm-OfO effoctirfr taqrta# roto of 3?/8$ for oagr lodaral toooroo hock w ishing to «ot*%htt«fe sue^h roto, Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E . 6 . UZSIo ' A y ? o The Open M arket CcmBiittee, in c lu d in g in fo rm a lly th e Governors or Deputy Governors from eleven o f th e F e d eral rese rv e banks, has considered th e re p o rt o f th e s e c re ta ry o f the Open M arket Com m ittee, th e p re lim in a ry memorandum, and th e d ata subm itted by th e F e d eral Reserve Board and by re p re s e n ta tiv e s o f th e s e v e ra l reserve basks, and has reached th e fo llo w in g conclusions upon th e m atte rs th e re in re fe rre d to and upon th e s p e c ific questions asked by th e F e d eral Reserve Board* The fa c ts appear to be: 1* The panicky fe e lin g has subsided* 2* A business recessio n has taken p la c e , th e e x te n t o r dura tio n o f which is not y e t p o s s ib le to determ ine* 3* Honey has been made a v a ila b le to commerce and in d u s try a t more reasonable ra te s * 4* L iq u id a tio n is progressing In an o rd e rly fa s h io n . 5« Rediscounts have been reduced to under #460 ,000 ,00 0* 6» However, th e re is a la rg e volume o f s e c u rity loans In member banks which they are anxious to g e t reduced* 7 . L iq u id a tio n has been slow er in country banks than in th e c it y banks* Under these circum stances i t is th e judgment o f th e Committee th a t no open m arket o p eratio n s In Government s e c u ritie s a re necessary a t th is tim e e ith e r to h a lt o r to exp ed ite th e p resen t tre n d o f c re d it* The Committee b e lie v e s however, th a t i t would have an u n fo rtu n a te e ffe c t upon business i f th e demand fo r a d d itio n a l c re d it fo r sp rin g business, con c u rre n tly w ith th e running o f f o f the present b i l l p o r tfo lio o f th e System should r e s u lt in a hardening o f ra te s * I t th e re fo re recommends th a t th e minimum buying ra te fo r b i l l s , fix e d by th e F e d eral Reserve Board, be reduced so th a t th e F e d eral reserve banks may have such f l e x i b i l i t y In t h e ir b i l l o p eratio n s th a t th e present p o r tfo lio may be not o n ly m aintained b u t may i f necessary be increased to such e x te n t as to avo id th e hardening o f ra te s w hich w ig h t r e s u lt from a seasonal demand fo r a d d itio n a l Reproduced from the Unclassified / Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . IB54> -S - re s e rre o re & it* Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority fow w em t E o rris s ta te d th a t s o l? I«d o f th e Governors favored * p o « itiv « p o lic y o f easing co n d itio n s is the m arket* / E.6. U35fe 2 ■'/ She n & jo rity fe e l th a t H i# satis tin g tendency is toward lo w er d is c e rn * ra te s and low er oaaejero ial ra te s * f e shomLd n o t in te r fe r e e ith e r to m to re e o r e x p e d ite H i t * S x is tla ^ o o n d itlo a s sho& d <&#&r mp fa r th e r > *fo re is ta k en * any wmtik a c tio n f« should n o t tr y to s tim u la te 'b m im m now n n t il a s ta b le c o n d itio n o f business is re&ofeeA, and th * d e c lin in g co ndition s have ended* ¥ • do n o t fa v o r o r e a tin g a r t i f i c i a l co n d itio n s e ith e r by b i l l pini1uiha8es o r tgr lo n e r diseoon t ra te s * »e fa v o r keeping th e s ta tu e <po w ith sndi in crea se in b i n purchases as w iH p rev en t hardening o f or e d it* Ho not b e lie f# that there is any danger o f the recn rreon e o f s p e c u la tiv e a c tiv it y * Ve do not fa v o r an in crease in M i l purchases in o rd e r to b rin g aboni a lo w e r d isco u n t ra ta * f t do not fa v o r the lew Xoile reoOMaendation o f easing th ro n g b i l l purchases w ith a view to lo w e r discount ra te s * W 5 Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . 'A ? / ? o Governor McDougal, a f t e r expressing the a ttitu d e of the Chicago board which has had under co n sid e ra tio n the low ering o f the discount ra t e , s a id he b e lie v e d t h is a ctio n might be taken in the near fu tu re i f the d ir e c t o r s could agree that i t would be a stim ulus to le g itim a te b u sin e ss. In regard to the propose ed red uctio n in the b i l l cate, he stated he could not q u ite see the p ro p rie ty o f such a c t io \ a t the moment but th at he c e r t a in ly would not fa v o r any a c tio n which \ / would tightek, the s it u a t io n . Governor N o rris expressed the opinio n that the program adopted in November has been accomplished and that no fu rth e r easing should be e ffe c te d . He COl i stated he would not fa v o r a reduction' in the discount ra te - although he would approve h / a sm all red u ctio n in the t i l l rat<r MWPBi y i a » * iig to keep the System in the b i l l market and not fo r the purpose o f/In c re a s in g A h o ld in g s. Deputy Governor Paddock stated that the s it u a t io n in the F i r s t D ist r i c t has cleaned up b e tte r and more .r a p id ly than was expected but there are s t i l l sane c o lla t e r a l loans which should be liq u id a te d . He stated h is bank would l ik e to see a p o lic y o f marking time f o r th4j>per£ent u n t i l something more d e f in it e develops, and then probably begin w ith a red u ctio n in the b i l l ra te . Governor Fancher stated that he thought the System p o lic y should be to keep money f a i r l y com fortable ahd that he would fa v o r a re d u ctio n in the b i l l ra t e . With regard to a re d u ctio n in the discou n t ratti, he stated h is bank i s s t i l l at and though i t may la t e r - toward the e n d ^ f February - reduce to 4 -1 /2 $ , he thought i t would stay at that rate f o r some time. Governor T a lle y stated that up to this, time h is bank has been in f a v o r o f the Systpm p o lic y , but he would ^ot’ tiow approve a re d u ctio n in the b i l l or d is — A count ra te s . He exp ressed jthe opinio n that the System can e r r more r e a d ily at the present time by e asin g than by doing nothing, and he would be opposed to any s p e c if ic mojeiagn^ ease^ 6H$©Hv yfco jvQ DdoOr ™ JUAAC&-W I Mwo. M, , ^ 0 J~ *. lAAfvwU MhyAXS Th Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . U35&> w p/ i i W ^ A -fiM CWw - A/ /U J/M ■YV^XygJ, . ^ -2 Governor M artin expressed the opin io n that the r e s u lt s sought in the November p o lic y have been obtained* He stated he thought j i re d u ctio n in the discount \ . . G> rate r ig h t now would be a movement in the w rongNlire^tion^ He a ls o stated that i f a re d u ctio n in the b i l l ra te would r e s u lt in a f a i r l y immediate. low ering of the d is - count ra te , he would not fa vo r that at the present time* Governor B lack expressed the opinio n that a p o lic y o f ease should be ^ continued. He stated h is bank would fa v o r a re d u ctio n in t h r i l l ra te , and, i f i t had an opportunity, would probably reduce i t s own ^ s c o p i ^ r a t e o f 4 -1 /2 $ , in an e f f o r t to obtain reasonable ra te s fo r business* Governor Geery stated that h is bank m aintains a % discount ra te , which i s below the commercial ra te in Isije d is t r ic t * I f a re d u ctio n in the b i l l ra te were to be made to a p o in t where i t wouldS^interfere w ith the normal d is t r ib u t io n o f 3 acceptances, he stated he would be opposed\to i t , but M thought i t would be a wise / \ / move i f i t were s imply a step to conform to the market and take on as o u trig h t hold— ^ ings such b i l l s as are now c a rrie d under repui^hase/igreem ents. \^,y Governor Seay expressed the opin io n that the System should m aintain the present s it u a t io n ra th e r than ease fu rt h e r. He s a id he thought the System should proceed c a u tio u sly in o rder to see that hardening o f ra te s does not r e s u lt from the sp rin g demands and to prevent any hardening i t might be w e ll, to through the ac ceptance ra te o r p o s s ib ly by sm all purchases o iA ,& o v e ra m e ^ se cu ritie s, although he would d is lik e very much to see the la t t e r done. \ Governor G alkins expressed the opinion that the o b je c tiv e o f the Sys t©mrs p o lic y , as he understood i t , seems to have been achieved and t h e r e ]is no occa< s io n to go fa rt h e r at the present tim e. He stated that i f i t should la t e r appear de- \ s ir a b le to b rin g about a co n d itio n o f g re a te r ease i t should be dpiie through some / ' \ M\AVW / s lig h t v a r ia t io n in the b i l l ra t e , as the System can<r e v e r s e i / s e l f w ithout embar rassment, ifhich i t cannot do aa ujjluiii 11* " * ’ the discount ? irie l Reproduced from the Unclassified / Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 .1 2 3 5 k # a ^ “ # 3 3?) • ^ £-'2 — RSPORT Of TH3 ®5Crij£TARY OF TH3 QP'M .MARKET Bf/l&frOTT COMMITTEE TO THE TOTING Q3T TH5 COMMITTSS AT WASHINGTON ON JANUARY 28, 1930 At the time o f the l a s t meetj^ t h | Open Market Inveatment Committee, I W 2 ^ f93p I which was held a t Washington onjhsfoyember 12, i l ^ 9 , the to ta l holdings o f Government n®*«^i£aa3liaKj s e c u r it ie s in the System s p e c ia l Investment Account amounted to - - - - $ 97,500,000 Since that time purchases o f United States Government s e c u r it ie s have been made fo r the System Account as fo llo w s: During P eriod November 13 to November 20, 1929 Y/ith the approval o f the Open Market Investment Committee there was tra n sfe rre d to the System Account from the purchases which had been made by the Federal Reserve Bank o f New York - - - - - - - - - 25,000,000 T h is made a t o t a l of #75,000,000 which had been tra n sfe rre d to the System Account from the purchases by the Federal Reserve Bank o f New York during the perio d October 30, 1929 to November 20, 1929* During P eriod Nov amber 27 to December 31, 1929 Purchased pursuant to the recommendation contained in the re p o rt of the Open Market Investment Committee dated November 12, 1929 and the approval of the Federal Reserve Board o f November 25, 1929 to purchase not to exceed in the aggregate §200,000,000 o f Goveramenta -155§000>000 There have been no fu rth e r purchases o f Government s e c u r it ie s fo r the System Account sin ce December 31, 1929, the t o t a l ho ld in gs remaining at -5277,500,000 Other Government s e c u rity tra n sa c tio n s in the System Account since Nov saber 12* 1929, which d id not a ff e c t the to ta l amount of hold ings in the Account, were as fo llo w s: On December 15, 1929 an exchange was made in the System Account o f $53,050,000 par value o f Treasury c e r t if ic a t e s which matured on that date fo r a l ik e amount o f Treasury 3 \/&% c e r t i f ic a t e s dated December 16# 1929, due September 15, 1930, pursuant to the o ffe rin g o f the S ecretary of the Treasury dated December 6# 1929. On January 10, 1930 the Open Market Investment Committee took over from the Federal Reserve Bank o f St, L o u is $10»000#000 of i t s p a rt ic ip a t io n o f Government s e c u r it ie s in the System A ccount and Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . U 35k 2 ap p ortion ed them t o the oth er p a r t ic ip a t in g bani:s which agreed to take t h e ir share* These s e c u r it ie s were taken over a t the market p r ic e s a t the req u est o f the F ederal R eserve Bank o f S t. Louis owin ; to i t s rea ch in g a p o in t where i t may have d i f f i c u l t y in p ro v id in g c o l l a t e r a l a g a in s t notes* During the l a t t e r p a rt o f O ctober and the fo r e p a r t o f Novemberr 1929 f the purchases o f Government s e c u r it ie s made by the Federal R eserve Bank o f New York ( aggregated £ 1 3 6 ,9 6 9 ,9 5 0 . As s ta te d above, £75,000*000 o f the t o t a l s e c u r it ie s pur chased were t r a n s fe r r e d to th e System Account and d is t r ib u t e d among the p a r t ic ip a t in g F ederal re s e r v e banks, le a v in g a balance o f such purchases which are s t i l l b ein g h eld by the Federal R eserve Bank o f New York o f £11 1,969,650 made up as f o llo w s : $11*200,000 1 8 ,051 ,0 00 20,150 , 000 33,466 ,9 00 2 9 ,101 ,7 50 U. ” ” " ** S. ,? * « >' Treasury B i l l s dated Dec* 4 7 /8 # C ert, o f Ind. " S ept, 3 1/6% v " ” Dec. 3 1 /2 $ T reas. N otes " Mar. 3 1/2% ” w ” S ep t. 17, 16, 16, 15, 15, 1929 1929 1929 1927 1927 due March 17, ♦' June 16, « S ep t. 15, »» March 15, " Sept. 15, 1930 1950 1930 1932 1932 £111*969,650 Changes in P a r t ic ip a t io n s in System Purchases o f Bankers A ccep tan ces and Government S e c u r it ie s S ince November 12, 1929 the F ederal R eserve Banks o f C lev elan d , Richmond and M inneapolis resumed p a r t ic ip a t io n , and the F ederal R eserve Bank o f A tla n ta d is con tin u ed p a r t ic ip a t io n in System purchases o f Governments; and the F ederal R eserve Bank o f S t. L ou is resumed p a r t ic ip a t io n in the System’ s purchases o f b i l l s . The F ederal r e se r v e banks which p a r t ic ip a t e d in the r e ce n t purchases o f Governments, and the banks that are p a r t ic ip a t in g a t p resen t in the purchases o f b i l l s a re as fo llo w s ; Governments B oston New York ■P h ila d e lp h ia C leveland Richmond Chicago S t. L ou is M in n eap olis D anas B ills . Boston NeW y 0rk C leveland Richmond A tla n ta Chicago s i , L ou is M inneapolis D a lla s San F ra n cisco Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . 1235k Attached are statements showing: Exhibit "A" - Outright holdings of Government securities by individual Federal reserve banks as of January 22, 1950, also their participation in the System Special Investment Account and classification of issues held in System Account by maturities as of the close of busi ness January 24, 1930. Exhibit ”Bn - Bills purchased outright by the System by weeks from January 3, 1929 to January 22, 1930. Exhibit ”C,f - Statement showing earning asset holdings of all Federal reserve banks January 22, 1930, as com pared with previous week and January 23, 1929, also weekly average of earning assets from January 2* 1930 to January 22, 1930, as compared With corresponding period 1929 and entire year 1929. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E.6. QSSfe EXHIBIT "A” * STATEMENT SHOWING HOLDINGS OF GOVERNMENT SECURITIES BY FEDERAL HESERVE BANKS (E xclu d in g Sal es C on tracts) O utright H oldings o f Government S e c u r it ie s by Federal R eserve Banks as a t the c lo s e o f B usiness Jan. 22, 1950 P a r t ic ip a t io n by F ederal R eserve Banks in System S p e c ia l Investment Acct# Government S e c u r it ie s as a t the c lo s e o f B usiness Jan. 2 4 , 1950 T ota l 744,000 § 26,12-9,000 § 26,875,000 115,499,500 97,500 ,5 00 2 10,800,000 P h ila d e lp h ia 15,022 ,0 00 2 7,876 ,0 00 42 ,898*000 C leveland 10,165 ,0 00 20,101,000 50-,266,000 Richmond 1,1 5 2 ,5 0 0 8 ,7 4 9 ,5 0 0 9 ,9 0 2 ,0 0 0 A tla n ta 2 ,6 2 4 ,0 0 0 6,22 6-, 000 8 ,8 5 0 ,0 0 0 Chicago 19,927 ,5 00 50,448 ,5 00 70,576,000 S t. L ou is 8 j 625,000 10,641,000- 19,266 ,0 00 M inneapolis 7,769,50 0 9 ,147,50 0 1 6 ,917 ,0 00 i.ansas C ity 5,000 5,06.0 ,000 5,0 6 5 ,0 0 0 D a lla s 9'4987,500 15,647 ,5 00 25,655,000 San F ra n cisco 9,6 4 2 ,5 0 0 2 ,1 7 5 ,5 0 0 11,816 ,0 00 $199,162,000 $277,500,000 $476>662,000 Boston New York T o ta ls $ CLASSIFICATION OF IS,SUES OF GOVERNMENT SEC1TRITIES HELD IN THE SYSTEM SPECIAL INVESTMENT ACCOUNT CLOSE OF BUSINESS JANUARY 24, 1950 5 1 /8 # C /I due U. S. T reas. B 4 7 /8 % C /I due 5 1 /8 c]o " ” 5 1 /2 $ T/N w 5 1 /2 $ " tt 5 1/2% ” ” 4 1/4% 4th L/L Mar. 15, 1950 i l l s due Mar. 17, 1950 June 16, 1950 S ep t. 15, 1950 Mar, 15, 1952 S ep t. 15, 1952 Dec,. 15, 1952 Bonds O ct. 15, 1958 T ota l $ 15,000,000 50 , 250 *000 50.110.000 64.825.000 1 2.560.000 12,225 ,0 00 58,780,000 55,950,000 $277,500,000 I X H IW T " B " B IL LS PURCHASE? Ol'TRISHT BY SYSTLT PY WEEKS ARP FROM JAXUAK’-- 3 TO SECBTSER 3 1 . (0 0 B >rtw I 15.601 1 5 ,5 0 0 5 ,5 6 7 7 ,5 0 8 1 2 ,0 9 7 7 ,5 8 5 1 7 ,2 6 0 1 7 ,7 4 5 3 ,3 1 1 2 ,1 2 4 1 ,2 2 7 516 418 1 ,5 1 0 863 1 ,4 2 4 9 .0 T 3 6 ,T 3 2 3 ,5 2 5 8 ,3 2 1 6 ,5 8 4 2 ,5 3 1 2 ,5 0 4 416 1 5 ,6 5 7 9 ,2 6 3 6 ,0 2 9 8 ,7 3 7 1 ,4 1 0 1 ,6 3 9 1 ,5 9 4 2 ,5 5 4 498 -0 2 ,0 4 2 - 0- 1 3 ,8 4 3 7 ,4 0 8 4 ,3 8 5 6 ,3 8 2 3 ,8 3 4 8 ,6 5 4 191 9 ,6 3 4 1 1 ,8 9 8 6 ,3 9 0 2 2 ,4 9 7 7 ,5 9 9 1 4 ,0 1 9 1 8 ,2 8 0 . 1 0 ,2 2 4 2 ,3 8 7 1 ,6 8 9 1 ,3 9 9 1 ,6 2 3 1 ,9 4 6 929 1,665 4.281 2,4»6 1 3,050 1.442 3,210 1.T42 1.442 3 IT 24 31 T 21 28 - 0502 # 2 ,7 8 2 1 ,7 2 7 1 ,5 5 4 2 90 # # 75 568 250 -0 - 112 515 150 469 1 ,3 0 5 275 228 134 25 - 0278 125 201 1 ,2 0 1 405 200 l , o 02 657 34C 403 778 1 ,2 1 4 400 524 1 ,2 8 7 761 650 100 806 101 18 25 1,131 357 2 9 1 ,0 1 4 23 30 1 ,T 4 4 1 ,1 2 5 16 962 5 6 13 20 12 27 383 4 1 ,3 0 5 45 124 771 588 - 0-0 - 0-0 -0 - 3 ,0 3 1 2 ,0 3 8 -0 6 ,7 0 7 3 ,0 3 1 8 ,7 4 5 3 ,9 2 9 6 ,5 8 5 2 ,8 1 9 5 ,9 2 6 -0 -0 1C4 1 2 ,5 1 1 1 ,0 9 0 1 ,^ 5 6 1 ,5 5 8 0 ,6 4 4 -0 08O -0 85 18 84 24 31 1 ,1 8 7 I lMSL 1 ,3 5 5 2 ,8 8 3 6 ,7 4 8 792 1 ,0 5 0 598 5 ,1 5 1 1 1 ,1 8 4 3 8 ,2 1 0 2 7 ,0 6 4 2 1 ,7 0 7 1 ,8 5 6 2 ,0 2 3 2 ,2 0 2 2 ,3 0 4 1 ,1 9 0 -0 200 75 5 2 ,9 8 6 4 1 ,4 6 3 1 8 ,9 6 3 3 0 ,0 9 2 -0 - 6 7 ,0 9 9 5 1 ,2 9 1 3 2 ,9 2 9 3 2 ,4 1 5 6 ,0 5 3 2 ,9 3 8 1 ,9 9 1 1 ,9 4 3 952 284 479 -0 460 o51 -0 - — C— 1 2 ,8 6 2 200 1 ,7 8 5 -0 - 975 2 ,0 9 6 - 0- 161 707 2 ,9 1 9 1 6 ,7 7 9 1 3 ,0 9 0 1 6 ,5 5 6 8 ,2 6 5 2 1 ,4 3 1 1 3 ,9 7 4 1 4 ,1 1 3 9 ,8 2 8 1 3 ,9 6 6 2 ,3 2 3 6 ,0 5 3 1 ,3 5 1 1 1 ,6 5 0 1 7 ,6 3 0 8 ,9 7 4 7 .9 9 5 1 ,*18 — 6 ,6 2 1 1 ,2 7 0 847 1 0 ,2 2 9 4 ,8 3 1 - 0-0 -0 - 1 .5 T 5 4 ,8 3 1 6 ,6 0 6 1 ,2 7 0 -0 8 ,6 5 4 -0 - 1 2 ,8 6 2 7 75 311 -0 - 3 18 11 945 15 -0 847 1 ,3 3 4 rcu’ivLs 250 8 1 50 5 47 3 57 1 ,1 3 4 -0 127 -0 1 ,4 3 0 - 0— - 0- 1,686 -0 604 598 864 1,411 22 — 0— D a lla s 2 ,1 1 3 2 ,1 7 7 991 877 2 ,9 0 2 4 15 25 0 C h ic a g o 7 ,7 5 8 5 ,3 6 3 5 ,6 9 3 5 ,3 1 9 4 ,8 5 6 4 ,0 0 8 2 ,8 1 0 4 ,3 T 4 11 8 # 1,5*4 1,040 114 339 T20 4,857 2.281 2,686 14 iXJTALS 8 ,6 2 4 1 8 ,0 8 9 1 4 ,5 4 3 A tla n ta Richm ond San F ra n . 297 . 298 4 ,1 7 1 2 1 ,5 9 4 j7 ,3 « C 9 ,2 7 1 41 ,2 9 3 2 ,8 2 0 9 ,9 4 4 1 9 ,7 5 0 jo 008 S73 141 1 ,2 6 5 1 ,2 20 5^5 ’ .*29 4 3 0 ,6 1 7 -0 -0 -0 -0 - 15,620-| 2 7 ,0 3 5 2 5 ,6 3 1 3 7 ,9 9 7 1 5 ,7 4 4 1 7 ,9 5 6 -! 1 8 ,4 4 8 2 5 ,7 3 8 -f 1 5 ,2 7 3 - ; 24,86719,68435,42221,561- 2,010 327 903 3,641 2.031 5,582 6.25T 3.5T5 1 ,9 3 5 2 ,5 3 9 3 ,2 9 4 3 ,4 0 0 2 4 ,9 8 4 2 2 ,2 1 3 2 6 ,7 5 4 3 0 ,9 7 1 1 4 ,3 9 8 - 29,43121,54346,26328,411- 2,521 3,5T5 2,556 1,866 4*920 5,243 5,459 IT,510 353 952 241 338 2 0 ,5 6 9 • 1 5 ,2 9 4 1 5 ,7 6 1 1 6 ,3 0 4 33,T24— IT ,386- 3,490 3,436 4, T39 2,421 6,2T4 2.853 3,T44 J.55T 29,246+ 13,24011,074- 1 ,3 0 8 1,626 8 121 1,10 1 1 ,7 4 2 3 0 ,7 4 7 1 5 ,5 6 7 2 2 ,2 5 1 2 6 ,4 5 9 1 9 ,3 4 3 1,904 2,311 1,682 1 ,0 3 6 1 ,6 9 8 323 1.884 4,747 3,653 1.TT5 2,904 2,211 2.403 5,083 3,203 883 577 1 ,0 8 8 1 ,^ 4 9 505 1 ,0 6 9 1 ,5 1 7 983 1 ,2 9 8 5 ,5 8 2 2 ,7 0 4 263 592 623 729 1 ,0 9 3 25 621 808 602 95 14 1,012 1 ,4 9 0 642 722 714 1 ,1 3 2 4 8 ,3 2 9 4 4 ,6 8 4 3 6 ,5 5 9 2 4 ,1 7 0 # 2 6 ,6 3 3 1 0 ,2 8 3 2 6 ,0 1 4 -/ 12,823^h 3 5 ,5 2 0 —;« 1 7 ,4 6 4 - /1 il 1 4 ,3 7 9 1 1 ,8 8 4 1 0 ,7 6 6 1 0 ,3 6 7 1 8 .5 T 3 - I 1 3 ,8 6 2 -i 1 3 ,T 7 2 -| , - 16 290 2,116*( 148+ 2 0 ,8 4 7 + 1 3 ,1 3 2 -h 8,759-‘S , - 5 ,0 6 3 - ! 1 5 ,9 8 3 - 20,067- 5ol 951 729 575 298 629 50 30 5 26 61 618 720 1 ,2 1 0 1 ,1 2 5 500 3 54 -0 700 869 8 98 1 1 ,7 4 4 2 ,9 3 6 4 ,2 4 4 1 4o o65 o54 470 1 ,o 2 6 l .d o O 217 o90 7j 8 325 514 68 1 ,7 3 7 2 ,7 1 0 2 ,4 9 2 5 ,9 1 2 1 9 ,5 0 4 1 6 ,4 1 0 2 3 ,8 0 7 3 24 993 814 2 ,0 6 9 368 1 ,3 3 9 2 ,3 1 4 2 0 ,6 9 0 4 6 ,1 1 3 3 4 ,8 6 8 2 8 ,9 7 8 866 686 371 757 204 2, o l7 ?5 0 760 1 ,4 9 2 o28 75? ’ 17 421 o83 4T0 0^2 654 oS7 42o 686 3 ,2 1 0 1 ,4 1 7 1 ,4 7 8 2 ,0 ? o 458 1 47 1,060 160 1 ,5 6 3 2 ,0 8 9 1 ,1 4 0 3 58 208 ICO o50 '■5 682 166 - 0- 2,792 o i6 9 95 — - 0- l^O 1 ,8 4 7 1 ,6 1 8 5 60 1 ,0 4 4 1 ,4 6 0 1 ,2 1 0 364 425 631 6 14 476 1 ,9 7 0 551 046 746 349 087 579 501 1 ,0 4 1 2,082 3,000 2,54T 4,900 4,945 8 ,9 1 7 - 2,080 7,9461,662+ 5 ,7 2 5 + 3,836 T,22T 2,646 4,T85 10,463 297 2.9T3 6,818 1.T15 4 ,5 9 1 + 3 8 ,7 2 7 + 1 4 ,2 5 2 + 2 4 ,3 7 7 + 891 2,938 2,003 3,824 2,083 4.853 4,12^ 1,323 2 1 ,2 3 2 + 3 2 ,2 3 1 + 1 7 ,4 0 8 + ] 2 0 ,2 6 7 + | 2 6 ,4 0 2 + 3 9 ,3 1 3 + 1 8 ,8 7 4 + 2 2 ,8 3 1 + 1,125 5,645 5,733 1.403 3,252 3,098 6,220 2,860 7 5 ,9 3 6 6 2 ,8 0 0 4 1 ,2 9 7 3 9 ,4 3 4 9 .B 6 0 5 4 ,2 6 3 + 5 8 ,8 8 4 + 1 C ,3 3 3 + 2 6 ,9 5 9 + 1 9 ,2 7 3 + 3 9 ,4 9 8 - 4,070 1,516 3,457 6,629 3,129 1,53T 4,310 5,299 3,T54 1 5 ,4 2 1 4 ,5 2 4 6 ,1 9 8 4 ,2 8 2 4 ,6 9 8 -! 2 5 ,? 3 0 -| 9 ,9 9 4 -j 2 5 ,9 0 6 - 9 ,5 1 1 3 n ,8 6 2 - 3,495 3.5TT 4,412 6,963 1,155 1,058 2.29T 2,024 4.885 3,217 4,696 o3,602+ i 7976 5 ,3 2 2 + 1 2 ,4 2 9 4 5 ,5 3 2 * I 3 ,o 8 3 + i 37.266+ 3 ,2 9 6 2 ,6 0 3 2.5T9 3.03T 3,254 3.031 9 2 ,1 4 9 - # 1 8 5 ,6 4 5 # 2 0 4 ,4 1 5 7 3 ,0 4 2 - 1 3 ,0 6 8 7 ,1 1 3 29,774- 4,180+ 2 4 .9 5 8 - 3 ,1 7 9 # 8 0 ,1 5 9 - #9o,820- 1 5 ,1 5 1 3 ,1 8 7 2 ,7 8 9 2 ,3 3 4 9o3 1 ,0 1 3 2 ,1 5 1 135 l.l.-J 0 ,1 4 3 *1 2,,6 5 o # 4 3 ,0 5 6 J 4 1 ,^ 9 « 3 9 ,4 3 0 i 8 8 ,3 5 0 # 1 ,2 4 6 ,7 5 4 ,790 A15 fcc-1 2 ,2 4 s 0^ 975 4 ’53 4 ,9 H 4 2 ,7 6 1 6 4 ,0 0 8 I ,1 0 7 ____ : J 2 •>,761 oJ, ♦ 1 7 ,353 7 ,3 3 8 o " ,9 0 0 3 3 , 1C4 5 1 , 4o9 1 , o?> 1 .’ o3 -0 -r- 1 4 .1 a7 ’ o ,5 c5 1 ,6 C ? - # 5 2 ,4 2 5 ♦ 1 0 3 ,1 2 5 # 4 , 801 645 737 770 97 177 599 0- j _n- ;i , 7 ^ ; 1 9's * 2 ,-9 7 #1,7^6 4 1 0 ,9 7 0 _ 5,1T21.3T0+ 27,085- 4 ,5 6 6 + 1 6 ,4 0 2 + j 2,080 7,422 5,604 3,060 6,212 -0 - 2 5 ,7 6 6 j 847 7 48 1 ,7 6 9 769 -0 —0 - 2 .3 5 9 3 .3 5 9 # 5 5 ,7 0 518 969 654 8 74 — # 4 1 6 ,0 1 0 $ 7 ,3 4 5 2 04 271 450 6 48 550 o ,6 5 7 1 ,4 1 5 2 ,1 2 3 o ,o 9 2 # 4 0 6 ,4 0 2 1 ,1 4 5 991 303 1 78 715 # 1 0 0 ,4 7 4 l& l 225 - 0313 M l 9,8oe # -0 - -c- # 0 2 2 ,4 1 2 2 0 ,5 3 9 9 .3 9 2 200 R a c a lT a a ' ♦ 1.55T 5.5T4 2,5T3 2,852 # 1 0 ,0 5 9 3 ,2 9 7 1 ,6 8 4 972 539 192 728 830 1 ,4 8 0 Daalara Oporatioao With Other Diatrlata T,2584,139+ 27,02118,609- 504 747 509 672 20 218 T o ta ls 1 10 1930 Jan. 2 ,2 4 4 3 10 IT 24 19 26 D ae. 717 1 ,3 0 3 476 1 3 ,2 5 6 2 ,0 1 8 9 .T 5 2 5 ,6 4 8 5 No t . 3 ,1 5 5 1 ,1 2 9 553 969 1.5T9 6,38* 1,506 4,TW 12 Oct. 1 8 ,5 6 4 1 4 ,7 2 8 3 0 ,3 9 2 9 ,1 6 2 6 13 20 2T 816 15 22 2f 5 «p t. 1 ,6 9 4 5 ,3 4 6 5 ,0 9 $ 705 1*564 1,T26 550 8 4*. 1 6 ,0 0 0 1 6 ,8 7 0 9 ,3 8 2 2 5 ,2 9 3 8 ,4 5 7 6 U 20 2T C le v e la n d - 01 ,2 5 1 539 -0 - 1 4 ,8 9 3 SO P h il a. # 2 ,9 2 5 3 ,0 5 8 2 ,1 4 4 2 ,5 2 4 # 1 6 ,3 0 8 2 5 ,1 3 6 2 5 ,1 6 7 1 8,T*2 4,605 1,148 23 Jtiljr fo ta l T .6 8 4 7 ,0 4 7 1 0 ,6 2 4 1 ,1 0 7 9 16 Apr. N ov Y ork D t o lo r a B osk * INCREASE o r DECREASE i n H o ld in g a I n c lu d in g S o le * C o n tr a c ts New York; ; S y a te n Opa r a t l o n f t ; O p e r a t i o n a 7 ,3 0 8 3 2 ,3 6 0 4 2 ,? 4 0 1 6 ,3 2 6 5 4 ,7 6 2 718 J 1 4 0 , 487 22,822^1 4 ,1 9 3 - V 3 ,2 8 2 2 ,1 3 7 -| 1 ,7 9 3 + 1 ,4 2 6 - | 1 ,2 0 4 + 6,197+1 2 ,3 6 1 + 1 3 2 ,8 7 7 + | ^3,949+ t 1 7 ,5 1 5 + j 4 ,0 6 5 + 1 2 4 ,8 9 6 2 2 ,8 4 6 + 5 2 9 , 9 9 3 - jj +t 662 - 15,68126 ,516- ' 5 7 ,1 7 9 + ] 1 5 , 538 - ; : | 6 2 ,7 7 8 -4 >6,534-i 5,149+ # 1 0 ,0 6 7 .hJM 8T6 jLtias # 2 1 ,3 2 2 # 1 1 ,4 2 9 Reproduced from the Unclassified I Declassified Holdings of the National Archives iN k i |^ y y n 2 TO JANUARY 2 2 , 1 9 3 0 . INCLUSIVE L tt e d ) S1 Im n i F*! 1*0 ► i C/3 0 5 6 km* in <r W 0 nr *W Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 .1 2 3 5 k EXHIBIT "B” 4a) CLASSIFICATION BY MATURITIES OF BILLS PURCHASED BY FEDERAL RESERVE RAI'IKS IN THEIR RESPECTIVE DISTRICTS DURING THE PERIOD FROM JANUARY 3 TO DECEMBER 31, 1929 AND FROM JANUARY 2 TO JANUARY 22, 1930 (EXCLUDING SALES CONTRACTS)_________________ (000 Omitted) 1-30 days Boston New York P h ila d e lp h ia C leveland Richmond A tla n ta Chicago D allas San F ra n cis co T o ta ls T o ta ls T ota l § 24,461 362,675 28,019 6,065 2,858 29,939 21,690 13*254 17,275 § 27,309 178,190 19,535 3,848 4,222 5,387 12,838 14,709 34,343 $ 45,645 261,554 33,063 7,440 5 ,573 7,356 7,381 7 ,0 3 5 34,454 $ 3,059 19,993 4 ,432 2 ,7 7 8 100,474 822,412 80,617 17,353 1 2,653 43,056 41,909 39,430 88,850 $506,236 f 300,381 $409,501 $30,636 $ 1 ,2 4 6 ,7 5 4 1-30 days Boston New York P h ila d e lp h ia C leveland Richmond A tla n ta Chicago D a lla s Gan F ra n cis co Januars^ 5 t o December 51, 1929 Over 90-days 61-90 days 31-60 days $ 0 0 0 374 0 January 2 to January 22, 1930 Over 90-days 61-90 days 31-60 days T ota l 985 53,762 479 0 693 1 ,258 631 896 1,503 $ 3,738 38,295 1,246 0 594 609 1,969 554 5,580 $ 1,936 15,601 3,106 0 435 1,191 97 190 3,820 $ 96 67 7,345 108,128 4,831 0 1,722 3,058 2,697 1,736 10,970 $60,207 $52,585 $26,376 $1,319 $140,487 § 686 470 0 0 0 0 0 $ EJUUBXT SiiO ulN ^ -? A i £ F ^ .:.. m«L H .S £ a . . . ? * • '» « - a 'UAHY 2 2 , 1 9 3 0 O O fT A R O . ! > . PREVIOUS £SR AJID JANUARY 23, 1929; ALSO O d T Reproduced from the Unclassified I Declassified Holdings of the National Archives S rA E a ^ ; "C * Ib WTOrr.lvi) B illa Oiacounted - m • Jan. " PttllgJB :;#w York Phi la. 15 ♦ 1 9 ,1 8 0 # 7 0 ,6 2 6 # 4 9 ,8 1 ? 22 2 2 ,4 4 0 8 9 ,6 5 5 5 0 ,? 2 7 Net Change 3 ,2 6 0 + B i l l * Purchased - Jan. 15 " 22 M • Net Change 545+ OoTenueent Securities - Jan. 15 *> « 22 m Total Xarning Assets « 26.873 26.873 «*Qaa Not Change * 17,876 18,421 m - Jan. 15 " 22 Ret Change 64,929 68,734 3,805* 19,029+ 1 5 0 ,7C4 117,264 3 3 ,4 4 0 - 213,181 210,800 2 ,3 8 1 - 444,361 427,219 17 ,1 4 2 - Rici-: onJ Azlttx. J i j . CUi'.O *>t. Louis Minn. ♦ 7 7 ,6 6 9 # 2 9 ,9 1 0 ♦ o 2 ,004 #86,365 6 5 .5 9 0 2 4 ,6 1 0 2 d ,6 6 8 7 3 ,7 0 4 ^16,448 16,348 #4,236 5,613 Cl a ve I ur. •: 1 ,1 1 0 + 1 2 ,0 7 9 - 9,585 8,311 19,334 274- 42,898 42,893 —0 - 1C2,300 103,136 836+ 2 2 ,5 5 6 3,222+ 30.266 30.266 -0 - 128,769 119,912 8 ,8 5 7 - 5 ,3 0 8 - 1 1 ,^ 3 6 1 1 ,5 3 7 199- 9.902 9.902 —0 — 51,556 46,049 5 ,5 0 7 - 4 ,2 1 6 - 18,699 1 8 ,7 1 4 15+ 8,833 8,850 17+ 60,416 56,232 4 , 184- 1 3 ,1 6 1 - 32,235 29,539 2 , 696- 70,556 70,376 180- 191,156 175,119 1 6 ,0 3 7 - 100- 12,701 13,208 507+ Kan. City #25,811 23,687 1,375+ 2 ,1 2 4 - 7,414 8,421 1,919 949 1,007+ . 970- 16,771 16,917 19,266 19,266 3.063 3.063 146+ -0 - 30,793 28,423 30,951 48,445 48,852 407+ -0- 27,699 2,528* 3 ,0 9 4 - DaUas #12,945 11,407 . 1,538- 10,054 11,297 1,243* 25.635 25.635 fra tk ♦15,935 20,574 4,639* 32,090 38,172 6,082* 11,816 11,816 — 0— 48,634 48,339 295- T ta ls # 442,336 433,223 9,11*- 323,347 298,Hi 24.9J8- m.m 496,642 t»8^ 59.841 70,562 10,721* I,*f9,tt3 i,ta2,to* 3 6 ,8 1 9 - Ooapari eon of Weakly Average Jan. 2 , 1930 to Jan. 22, 1930 t a M period 1929 h t i r e year 1929 Mot Change f r o * eane period 1929 * " * e n t ir e year 1929 Jan. 2 2 , 1930 " 23, 1929 Mot Change 66,473 132,526 99,695 66,053* 33 ,222- 68,734 141,816 73 ,0 8 2 - 459.300 399,295 371,248 60,005* 88,052+ 427,219 300,885 126,334+ 104,099 113,625 120,236 9 ,5 2 6 1 6 ,1 3 7 - 103,136 111,202 8,066— 125,443 158,763 138,383 ^ 3 ,3 2 0 1 2 ,9 4 0 - 119,912 151,477 3 1 ,5 6 5 - 50,313 64,240 64,530 59,864 92,031 80,105 1 3 ,9 2 7 13 ,217- o 2 ,l6 7 20,241- 46,049 63,086 56,232 90,912 1 7 ,0 3 7 - 3 4 ,6 8 0 - 188,496 221,294 194,135 32 , 7985 , 639- 175,119 295,283 60 , 164- 49,017 58,570 51,655 51,921 67,410 66,041 30,807 44,402 40,016 32,750 51,424 55,420 1 5 ,4 8 9 1 4 ,1 2 0 - 1 3 ,5 9 5 9 ,2 0 9 - 1 8 ,6 7 4 2 2 ,670- 48,852 71,365 30,951 43,460 27,699 52,311 48,339 59,698 2 2 ,5 1 3 - 1 2 ,5 0 9 - 2 4 ,6 1 2 - 1 1 ,359- 9 ,5 5 3 2 ,6 3 8 - 70,434 130,199 114,486 5 9 ,7 6 5 4 4 ,0 5 2 - 70^562 125,896 55 ,3 3 4 - 1,288,917 1,533,799 1,394,950 24 4,86210 6 ,0 3 3 - 1 ,2 2 2 ,8 0 4 1,447,191 c> & o 224,587- m n o SUMMARY FOR STSIP? B i l l s Discounted fo r week B il l s Purchased for week GoTemoent Securities for week Total £arniog Assets fo r week Cosparison of VsOkly At *rags of Xarniag Assets Jan. 2 , 1930 Jan. 2 2, 1930 with sans period 1929 CoBparison of Weekly At*rags of Earning Assets Jan. 2, 1930 to Jan. 22, 1930 with ontire year 1929 Comparison of Saming Assets Jan. 22, 1930 to Jan. 23, 1929 f I 9 tU * f 36 , 819— 244,8621 0 6 ,0 3 3 2 2 4 ,5 8 9 - 5 ot ft) 23 1 ------- ----------------------------------------------- 1--------^ Reproduced from the Unclassified I Declassified Holdings of the National Archives p K ^h, DECLASSIFIED Authority E .6 . January 25, 1930. fks & im in a r y memorandom TO THE OPEN MARKET INVESTMENT COMMITTEE January 28, 1930. At the la s t meeting of the Open Market In vestment Committee on November 12 the re so lu tio n s adopted included tfie mtl^WiSfe statement of p o lic y : j | JAM 2 0 I93q | u wSince the meetlite .fif the Committee on September 24, the c r e d it s i t u a t i ng frgg p h a n S S E M ^ . ! There has been a m a v fi liq u id a t ion of c r e d it ag ain st s e c u r it ie s under circum ^ stances which co n stitu te a s$£io u s th re a t^ Jo ^ ^ at a time when there were a j^ a & y lim it a t io n s of a business^ re ce ssio n . Th is seems c le a r ly to in d ic a te the need of having the Fed eral Reserve S y s t ^ ^,0 ^ ^,|s towards \/ a ssu rin g t h e T e s S y " ^ ® ^ !® ^ lit y of money f o r b usin ess, at reasonable ra t e s . ■ M j " In view of these circum stances and f o r the purpose of avoiding any in crea se , and i f p o ssib le facilitatin g ^ jso m e r eduction, in the t o t a l volume of member bank d i s count s / t h e Committee b e lie v e s that the System should be prepared to JLn* crease the open market ho ld ings of the Federal resorvo banks tfirSTfjipr”^ ^ *i f they can bo acquired in s u f f ic io n t amounts v/ithout in t e r f e r in g with t h e ir present d e s ira b le d is t r ib u t io n , and i f not, through the purchase of Government s e c u r it ie s ." Tho committee recommended that to accom plish these purposes i t be granted a u th o rity to purchase {So t) to exceed,..§800^000^000of Government se cu j^ JJo s. The Fed eral Reserve Board approved t h is program on November 25, and i t was a lso approved by a m a jo rity vote of the Governors' Conference on December 11* Since November 27 purchases have boon made under th is a u th o rity to ta lin g $155,000,000, b rin g in g tho ho ld ing s in the open market account up to $277,000*000 and the t o t a l s e c u rit y h o ld in gs of tho System up to $477,000,000. The purchases were a l l made p r io r to the f i r s t of the year. R e su lts A ccomplished The purchase of s e c u r it ie s appears to have accomplished a co n sid erab le p art of the re s u lt s which the committee hoped for* During December, when there i s o r d in a r ily a co n sid erab le in crea se in re d isco u n ts, no in crea se took p la ce , but on the co n trary there was some decrease, f a c ilit a t e d by the retirem ent of c r e d it c a lle d into use in connection with the stock market break. A fte r the f i r s t of the year the seasonal retirem ent of currency and c re d it , together w ith a continued Reproduced from the Unclassified I Declassified Holdings of the National Archives > c & o »-* © $ w n m Member Bank Indebtedness at F e d e ra l Resei've Banks tnd Open Market Rate f o r Corarr.ercial Pa le r (Monthly Data) yf, r V> ► C /31 05' i * 5: ET ftl CJl R" t e o f Grov.’th i r Mcr.'hrr Bank C r e d i t Compared With Meofcer Bank b o r r o w in g a t F e d e r a l R e se rv e Banks (M onthly Data) . o f 1». Y . 1: Reports 1 ± J$O 0i Reproduced from the Unclassified / Declassified Holdings of the National Archives te a e r a i I eser-ve ZM/wt c f Ntw "i'c- Reports Depurtja^ub v j f 19d^», RATE 8 , -------- > c & o m o 5 u l n ‘ >1 05 , 03 bm LA IT & Rate Charged Customers by New York City Banks Coopered with Discount Rate of Federal Reeerre Bank of Nev York PER CENT. £50 Reproduced from the Unclassified I Declassified Holdings of the National Archives BUILDING PERMITS COMML- PAPER. INDEX aoo i 180 220 e> & o w! m O! o t\ — . B u ild in g A c tiv ity in term s o f percentage change from th e lin e o f norm al grow th, allow ance bein g mad6 fo r changes in b u ild in g c o s ts , compared w ith th e course o f in te r e s t ra te s on com m ercial p ap er, in term s o f percentage changes f r o m th e average r a te o f th e la s t h a lf c e n tu ry * L a te s t fig u r e s , November of York mo! ™ tfl s , 5^ isj O1 ------- ----------------------------------------------- ---------- 1 --------------------------------------------------------------------------------------------------------p — "« ? ■ Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E .6 . U35fe , I 5 / liq u id a t io n of s e c u rity loans enabled the member ban^^o^decrefe^?. t h e ir indebted- ness s t i l l fu rth e r, and the System’ s t o t a l d iscounts f o r the pafe*M^o weeks have been ju s t under $450,000,000. comfortable money p o s itio n . Th is is an amount o f d iscou n ts conducive to a The accompanying chart in d ic a te s that -,with th is le v e l of d isco u n ts, commercial paper ra te s might be expected to range from 4 to 4 l / 2 per cent, other things being equal. The re la t io n s h ip between d iscou n ts and coranercial paper ra te s has been remarkably clo se in the p ast, though ra te s are fre q u e n tly a l i t t l e slu g g ish in responding to a decrease in d isco u n ts. The second chart in d ic a te s also that w ith something- lik e the present amount o f d isco u n ts the volume o f bank c re d it u s u a lly tends to in crea se at a ra te co n siste n t w ith the |usua^ j 3 ^ ^ f . growSi* of i th e„, p While d iscounts have been reduced, i t cannox yet be sa id that money is ■>.111 r e a d ily a v a ila b le f o r b usiness at such reasonable ra te s as would encourage b u s iness e n te rp ris e . 1L ^ Commercial paper ra te s in the open market are s t i l l 4 3/4 to 5 per cent, and the ra te which the banks are charging customers on prime commercial paper in New York C it y is s t i l l 5 1 /4 and 5 1 /2 per cent. These r e la t iv e ly high in t e re s t ra te s r e f le c t in p a rt the slowness of ra te s to ad ju st thomselves to a changed monetary co n d itio n , in p art g reat caution and conservatism of the banks, and in p art the discount ra te s of the Federal Reserve System which are higher than has u s u a lly been the case w ith the present volume of re d isco u n ts. Mortgage money in p a r t ic u la r i s not yet f r e e ly a v a ila b le and the bond market s t i l l has lim ite d absorptive power. Volume of C re d it The t o t a l volume of bank c r e d it has d eclin ed by n e a rly 2 b i l l i o n d o lla r s sin c e the f i r s t of November, and the loans and investments of the re p o rtin g member oanks are now le s s than one per cent h ig h e r than at th is time in 1929, a year to A. year in crease which i s le s s than the u su a l growth of c r e d it re q u ire d by the cou n try ^ A .b usiness. ' m Reproduced from the Unclassified I Declassified Holdings of the National Archives '«!* d e c l a s s if ie d Authority E . 6 . [23>Sio 3 Condition of Business The re ce ssio n in business a c t iv it y which began in the la t e summer bacame more p re c ip it a t e in of the year, and the December fig u re s showed a d e clin e g re a te r than had occurred in any year sin ce 1924. The meagre fig u re s so f a r a v a ila b le f o r January show a seasonal recovery from the low po int in December in the automobile, s t e e l, and a number of other lin e s of business * but i t i s too e a rly to judge whether the recovery has been moro than the u su al seasonal gain* Commodity p ric e s have continued to be weak and in the United States show a d e clin e of 2.6 per cent from a year ago. World p r ic e s as judged by the B r it is h index, show a d e clin e of 4 per cent.Tho Seasonal Expectation O rd in a rily the sp rin g in cre a se in business g ives r is e to an in crea se in the demand f o r F e d eral reserve c re d it o f scsnething in the neighborhood of #90,000,000 from the lowest poin t at the end of January to the h ig h est p o in t e a rly in A p r il. The b i l l ho ld ings of the System u s u a lly d e c lin e in th is p erio d because of a seasonal d e clin e in the volume of b i l l s outstanding, and as a consequence there i s u s u a lly some in crea se in the d iscounts of the System and some fin n in g in money co n d itio n s. C »n*iti»n »f the l i l l Market The volume of b i l l s outstanding increased to a new high fig u re of $1,700,000>000 at the end of December. The b i l l ho ld in gs of the Fed eral Reserve System, however, amounting to $392,000,000, co n stitu te d a much sm a lle r p roportion of the t o t a l b i l l s outstanding than usual., T h is was due p r im a r ily to an e x tra ord in ary demand f o r liq u id sh o rt term investments f o r the employment o f funds withdrawn from the s e c u rit y markets in November. Th is demand was so con siderab le that duri'ng November and December the b i l l holdings of the Reserve System showed nothing lik e the u su a l seasonal in cre a se , nor would i t have been p o ssib le to a c q u ire any considerab le volume of b i l l s during the p erio d without d riv in g ra te s to v e ry low le v e l af w- u ,m 1 ............... Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . U35fe 4 Near the end of the year, however, funds began to be d is trib u te d more norm ally, and a considerable volume of b i l l s was thrown in to the m arket, w ith the consequence that d ea le rs p o rt fo lio s became congested and b i l l ra te s were increased by 1/8 of one per cen t. Th is s itu a t io n is g ra d u a lly being corrected as the volume of b i l l s outstanding i s s lig h t ly reduced and d is t r ib u t io n is g ra d u a lly taking p la c e . Under these circum stances i t seems p o ssib le , however, that the sp rin g liq u id a t io n of the System1s p o r t fo lio may be somewhat slow er than u su a l, dependent somewhat upon the System’ s buying ra te f o r b i l l s . Foreign Exchanges and Gold Movement During November and December when co n sid e rab le amounts of fo re ig n funds were being withdrawn from New York the fo re ig n exchanges were v e ry strong and more than 100 m illio n d o lla rs of gold was exported. In January t h is s itu a t io n has be come adjusted, in te re s t ra te s have d eclin e d in Europe, fo re ig n exchanges have weakened, and gold exports have ceased. Most of the exchanges are so f a r below the export p o in ts that co n sid erab le reco very would be necessary before gold moved. In the next two weeks more than $15,000,000 of gold i s expected to a r r iv e from Japan and South America, Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . U 3 5 k TELEGRAM FEDERAL RESERVE SYSTEM 335 . (LE A S E D W IR E S E R V IC E ) R E C E IV E D A T W A S H I N G T O N , D . C . 48‘bmr Bos ton Jan <37 1126a Young W a s h in g to n . My doetor objects to my taking train trip at present but this bank will be represented at meeting tomorrow. 6. a for aeVtKS tMBM? PRINTINGomci 1938 Digitized FRASER Harding 1146a JLS& 2 — 1 19 01 / U l Reproduced from the Unclassified I Declassified Holdings of the National Archives ^ d e c l a s s if ie d Authority E. G. TELEGRAM FEDERAL RESERVE SYSTEM (L E A S E D W IR E S E R V IC E ) R E C E IV E D A T W A S H I N G T O N , D . C . 28 e fa P h ila d e lp h ia 1107a Jan 27 Young Washn Will attend meeting tomorrow 8. •>wvmxmPRIKTJNOOfflCI IMS arriving Washington about ten twenty Sorris 1108am HUT- M l o 2—11901 /U H /'* /> * Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority TELEGRAM FEDERAL RESERVE SYSTEM (LEASED W IR E SERVICE) R E C E IV E D A T W A S H I N G T O N , D . C . 69D0T Cleveland 1115a January 2§ 1950 Young W a s h in g to n I am planning to attend meeting open market investment committee to-morrow. FANCHER 9. S. for SOrEH NHBNTPRINTINGOfTSCS IMS Digitized FRASER 1116am E.G. 1235k Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority F E D E R A L R E S E R V E BOARD LEASED WIRE SERVICE W A SH IN G T O N January 27* Harding - Ho b t o n Ti irrla - J t a l . d e l p h U ' - ^ ^ V , Fanoher - C leveland - * * * * * * * 7 E«for ■», «,<«. .toK rv a l l tomonrawt s» ” ^ 2-9454 „„ 950 ' i l l yottP ten* *> repre»<mted «t » eting E.6. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority Form 118 F E D E R A L R E S E R V E BOARD LEASED W IRE SERVICE W A S H I N G T O N 2 -9 4 6 4 0P0 JTcnu&ry 25* 1030* k .orUiJUiijttm - Kansas U ty Im o b ju o iio a to your n o t o ein a rep resen ted a t o o e tin s Tu@«$ay, i f ln o a iw e n le n t. Young* E.6. U35fe Reproduced from the Unclassified I Declassified Holdings of the National Archives ^ d e c l a s s if ie d Authority E .6 .1 2 3 5 k TELEGRAM FEDERAL RESERVE SYSTEM (L E A S E D W IR E SER V IC E ) R E C E IV E D A T W A S H I N G T O N , D . C . 178gea KasCity Jan 25 1257pm 3 d Young Washn Referring, your wire 21st calling open market conference for tuesday January 28, it is for representatives of this bank to attend on account of governors illness and our recent necessary absences. Therefore, unless you deem it desirable we will not be represented i. a. wvuufKnrr wuotwo smot* i*s« Worthington 205pm 3—11001 /'V * ! Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority TELEGRAM FEDERAL RESERVE SYSTEM (LE A S E D W IR E S E R V IC E ) R E C E IV E D A T W A S H I N G T O N , D . C . 267gb S tlo u is Ja s 24 325p /1 3 $ Toimg Washington. W ill be p re sen t fo r meeting open market committee January 28th p le a se ask m co lellaad to ma&e re se rv a tio n h o te l Washington evening monday 2 7 th 8. t . for ftOVBHNWENT P1UMTM8 SFCIOK „ » Digitized FRASER M artin 449p \ A j 2— 11901 /LJLl E.6. Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . FEDERAL RESERVE SYSTEM (L E A S E D W IR E SER V IC E ) ^ *8 R E C E IV E D A T W A S H I N G T O N , D . C . 271gy D a lla s an 24 331p ------ * /f $ d So ©11 Washa ple a se mnkfl re se rv a tio n fo r MQ at C arlto n f o r Monday* Ass ita n t Lanager Moore would probably be h e lp fu l in o b tain in g a q u iet room. Digitized B. 0. for 80VKBFRASER NMEKT PRINTINGOFFICE 1038 fa ^ le y 2—11901 a m / / ^ — [&S(o Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority £ . 6 . TELEGRAM 3 3, ~ FEDERAL RESERVE SYSTEM (LE A SE D W IR E SER V IC E ) 6rhta r e c e iv e d a t liiohaond 1045am jan Wa s h in g t o n , d . c . 22 % Governor younf ' | x | ^ Washn T w ill 1 1 4 w i l l atte n d th e m eeting on the 28th Seay \ 10i7am Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . [& S fo TELEGRAM .... _ 3 ^ 3 , - , ' p " ^ FEDERAL RESERVE SYSTEM (L E A S E D W IR E SE R V IC E ) 105fy 22 R E C E IV E D A T W A S H I N G T O N , D . C . Atlanta Jan 22 103p /f 3 ^ / Young R§plying your wire yesterday!this bank will be represented at meeting of open market investment committee on tuesday January 28th a. •. aomnumn norm a trim im Black 210p 8—41001 Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . U 3 5 k telegram FEDERAL RESERVE SYSTEM (L E A S E D W IR E SE R V IC E ) R E C E IV E D A T W A S H I N G T O N , D . C . 263gy Chieago Jan 22 420p Young Washn , . . Subject your telegram^calling open market investment committee meetiig w ill arrange accordingly Digitized 8- eOTfor ESNUFRASER BKTJ>RBmKO0FFIC* » » McDougal 548p 2— lldOl Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority TELEGRAM FEDERAL RESERVE SYSTEM (LE A S E D W IR E SE R V IC E ) - , 137gb v R E C E IV E D A T W A S H I N G T O N , D . C . Minneapolis 12p Jan BB if Y oung Wasbn Will be at meeting January 28 ■. oovb»nment nutmNe «rmi itss Geery 103p a—nm E.6. U35fe Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . O . 1235k TELEGRAM FEDERAL RESERVE SYSTEM (LE ASE D W IR E SER V IC E ) R E C E IV E D A T W A S H IN G T O N , D . C . 205bot Newyork NY 509pm January SI 1950 YOUNGWASHINGTON Twill 1145 to-day B. 8. GOVSRWMBNT PRINTINGOFFIC* lfl«8 HARRISON B 14p Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . IBSfe TELEGRAM 2. J FEDERAL RESERVE SYSTEM (LE A SE D W IR E SER V IC E ) R E C E IV E D A T W A S H IN G T O N , 18gb 10 Dallas Jan 21 855am 22nd / 1 i- & D . C. Young Washington, i' Twill 11* p w govbrnmbnY prbttino o rwiomriom Shall make effort to attend. Talley. 1002am 2—11B01 t Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . 1235to ~*~ELEGRAM FEDERAL RESERVE SYSTEM (LE A SE D W IR E S E R V IC E ) _ , R E C E IV E D A T W A S H I N G T O N , D . C . 2gh f f 3 $ Sanfrancisco 34Sp Jan Governor Young Washington. Will arrive Washington Monday January twenty seventh, v. • •ovmswbit pjHMfmo tmci ini Calkins 912am a—ix»oi i yd O t , Vv / / . . / /X fiO . Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority ' - / - Date: FOR ANSWERS SEE; i. 2. y v ? /^ o I - 3 o 12d 5. 4. I ’t f / ' i Q 5 * /v * / v > 6. '/ v » / $ 0 — 7. - y ^ / ? 0 - \j ^ > 1 ^ 0 8. 9* 10. 11. 12. i/^ S ^ o ^ l/v//> 0, - ' / W / i a '/ > '/ ^ 0 / Z > * fa 3 -3 ^ . o E.6.1235k Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . IBSfc Form 148 TELEGRAM F E D E R A L RESERVE BOARD LEASED WIRE SERVICE W A S H IN G T O N »*r! 2-9454 ..m f t m$9% & w a«U w s o w * ‘.n® a t J« n a ttM » fa* a ll te a * U i s» n ^ g m M * A T 'B O A - i i i X JAN I t 1930 1 Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d Authority E . 6 . 1235k TELEGRAM 1— ^D E R A L RESERVE SYSTEM j / (L E A S ^ f) WIRE! SERVICE^ Washn Mr H^ton and i both understood yon to say at joint conference that the Board had voted to enlarge the open market committee to include representatives of a ll hanks but having received no confirmation we are in some doubt, i f proposed meeting is to be a meeting of the enlarged committee I shall of course be veiy glad to attend, i f However i t is to be meeting of the former committee of fiv e and representatives of other banks are invited to s it in as unofficial observers i t cioes not appear to me that i t would be of sufficient importance to justify the trip. I w ill of course attend upon notice sufficient to cover four days travel but woula like one or two additional days for preparation 9. a. efor ovfttK MNYPrintingomoKi92s Digitized FRASER Galkins 415pm