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Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority f - ~ t

Q

f OR SPECIAL CIRCULATION
PLEASE R E A B P h w P T L Y , INITIAL ASP RETURN TO
vefov. Young

Mr. B a t t l i n g

x/Mr, P la t t

Mr.

.

I fl^ O

(

xETARY'S OFFI

James/

Mr.

M
e

k s £ f & e ? m m ham

FMb
of

New York

June 4 , 19£8

CONFIDENTIAL

Dear G overn or Young:
E n clo s e d I s a r e p o r t o f t r a n s a c t i o n s in Government
s e c u r i t i e s and b a n k ers a c c e p ta n c e s as r e p o r t e d t o tn e Open
Market In vestm en t Comm ittee f o r t h e F e d e ra l R eserv e System
f o r th e p e r io d from May kA, iy i&

to May

19.&8 i n c l u s i v e ,

t o g e t h e r w ith d a ta r e c e i v e d by t h e Com mittee from th e F e d e ra l
r e s e r v e bank s.

%, B. w a tte sen
S e c r e t a r y , Open M arket
In v estm en t Com mittee

Honorable Hoy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.




Encl.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
r

Authority j - ' ,

Q ■ 1 (7 ^ 0 j

CONFIDENTIAL
REPORT OF OPEN MARKET INVESTMENT COMMITTEE WEEK ENDED MAY 29, 1928
H o ld in g s o f E arning A s s e t s o f F e d e ra l R eserve Banks from A p r il 27r 1927 to Date
(000 O m itted )

-1 9 2 7 Apr* 27
May
25
June 29
J u ly 27
Aug „ 31
S e p t , 28
O ct.
26
Nov* 30
Dec .
28
-1 9 2 8 J a n . 25
Feb* 29
£Tar* 28
Apr*
25
iviay
23
ii
29

GOVERNMENT SECURITIES
O u trig h t
S a le s
P u rch ases
C o n tr a c ts

EARNING
ASSETS
(A* 0 05 , 577
998, 510
1 ,0 7 1 ,1 3 0
953,931
1 ,0 5 8 , 786
1 ,1 6 7 , 632
1 ,2 1 4 , 759
„ 1 , 380, 515
1, 598, 842

993
571
261
457
860
298
3, 385
4, 078
44, 426

§194,
171,
183,
157,
118,
172,
243,
288,
315,

007
907
163
291
189
030
249
464
152

000
470
384
390
058
535

318,
302,
288,
331,
307,
283,

8 63
932
652
425
174
472

§314,
302,
367,
380,
469,
484,
507,
543,
558,

1 ,1 7 3 ,9 2 6
1 , 244, 929
1 , 257, 021
1, 380, 659
1, 409, 505 i
1, 4 68 ,29 5 I

BANKERS ACCEPTANCES
O u tr ig h t
S a le s
C o n tr a c ts
P u rch ases

332
349
140
559
954
054
245
757
699

§ 3,
19,
9,
4,
2,
10,

434,
399,
379,
293,
221,
203,

817
132
448
365
423
891

6,
8,
6,
11.
9,
15,

BILLS
DISCOUNTED

892
263
955
094
939
118
862
276
375

§443. 553
4 28 ,62 0
477, 311
3 98 ,13 0
4 0 0 ,5 2 4
4 30 ,31 2
402*398
4 77 ,02 5
609,209

28, 442
40, 827
57, 451
34, 416
23, 388
20, 516

385, 224
492, 558
5 2 4 ,0 9 6
7 09 ,07 3
847, 472
943, 791

§47,
64,
32,
1 2,
66,
70,
57,
66,
70,

CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
________________
DURING WEEK ENDED M Y 29. 1928_______________________
(000 O m itted)
GOVERNMENT SECURITIES
B a lan ce
Net
Mav 29
Change
B oston
§ 7,351
§ 1 ,0 7 6 New York
2 4 ,9 9 2
2, 942—
P h ila d e lp h ia
2 1 ,3 8 7
1 ,0 0 3 C le v ela n d
33, 482
1 ,1 e i Richmond
3, 453
371 A tla n ta
5 ,1 8 2
30 6C hicago
2 ,1 4 6 33,193
S t . L o u is
16, 625
5, 091—
M in n e a p o lis
10, 910
539Kansas C ity
94615, 572
D a lla s
7 5514, 663
San F r a n c is c o 1 7,0 81
1 , 19 6N .Y. h o ld o v e r s
md o th e r b i l l s
T o t a ls

§2 03,891

§ 1 7 ,5 3 2 -

BANKERS ACCEPTANCES
Net
B a lan ce
May 29
lanp.e
§ 3 5 ,9 68
547, 291
3 ,9 0 1 2, 61233,230
2 ,5 2 5 27, 435
1 4 ,0 2 7
1 ,5 4 0 90420, 916
9, 7 86 3 0 ,9 4 4
100823
229+
2 0 ,9 65
290+
1 3, 741
147+
1 5 ,0 1 5
1 9 ,3 1 1
3 ,9103 ,8 0 6

915+

§2 8 3 ,4 7 2

§23, 702-

BILLS DISCOUNTED
Net
B a lan ce
Change
Mav 29
§ 9 ,4 6 1+
§ 7 9 ,0 4 6
1 4,1 15 +
3 21 ,89 5
25,042+
80, 480
1 ,9 3 7 +
71,9 38
4 ,956+
46,581
2, 668+
56, 359
31, 686+
1 2 7 , 717
3,195+
4 9 ,8 61
20 61 0 ,8 3 4
1 ,0 61+
23, 418
2, 2704
1 1 ,3 3 2
134+
64,330

§9 4 3 ,7 9 1

§9 6,319+

COM ENT O CHANGES ’7FEK ENDED KAY 29, 1928
M
N
T o ta l ea rn in g a s s e t s o f the System showed an in c r e a s e of § 5 8 ,7 9 0 ,0 0 0 f o r
the c u r r e n t sta tem en t week* The a pproxim ate ch an ges, by c l a s s i f i c a t i o n , c o n s is t e d
o f d e cr e a s e s of § 2 3 ,7 0 0 ,0 0 0 in o u t r ig h t p u rch a ses o f bankers a c c e p ta n c e s and
§ 1 7 ,5 5 0 ,0 0 0 in o u t r ig h t pu rch a ses of Government s e c u r i t i e s , and in c r e a s e s o f
§96, 300,000 in b i l l s d is c o u n te d and §3 , 650,000 n e t in in v estm en ts h e ld under s a le s
con tra cts.
The l a t t e r item c o n s is t e d o f an in c r e a s e of § 6 ,5 0 0 ,0 0 0 in Government
s e c u r i t i e s and a d e cr e a s e of § 2 ,8 5 0 ,0 0 0 in ban k ers a c c e p ta n c e s *




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority p~f

Money
Market

Q. W ^ O (

C a ll money in New York renew ed a t 6 p e r c e n t th rou g h o u t the
c a le n d a r week, making a t o t a l o f ten c o n s e c u t iv e days on w hich c a l l
money has renewed a t th a t r a t e ,
There was an advan ce in th e new lo a n
r a t e to 6
p er c e n t on Monday, th e f i r s t tim e th e c a l l r a t e has ex­
ce e d e d 6 p er c e n t s i n c e J u ly 1 9 2 1 ,
T h is r i s e was f o l l o w e d b y a tem­
p o r a r y d ip t o 5 l/ Z p e r c e n t in the r a t e f o r new lo a n s on Tuesday, b u t
on F r id a y 6
p e r c e n t was a g a in tou ch ed * The demand f o r new accom ­
m od a tion was h ea vy th rou g h ou t th e week, and o f f e r i n g s a t n o tim e w ere
l a r g e . Comm ercial fu n d s c o n tin u e d t o f l o w i n t o th e m arket up t o the
f i r s t o f the month, b u t t h i s g a in was more than c o u n te r a c te d b y h o l i ­
day c u r r e n c y re q u ire m e n ts, s u b s t a n t ia l g o l d e x p o r t s , and b y a l a r g e
r e d u c t io n in th e b i l l and s e c u r i t y h o ld in g s o f the System* As a r e ­
s u l t o f th e s e d ra in s on th e money m arket, the New York C it y banks i n ­
c r e a s e d t h e i r lo a n s a t th e New York R eserve Bank d u rin g th e week,
and on F r id a y owed s l i g h t l y more than $ 3 0 0 ,0 0 0 ,0 0 0 *

lz
/

lz
/

Time money moved t o even h ig h e r l e v e l s d u rin g the l a t t e r
p a r t of th e week, when 5
p e r c e n t was b i d f o r 6 0-d ay t o 6 m onths’
lo a n s , w ith th e a sk ed r a t e 1/8 h ig h e r a t 5 5 /$ p e r c e n t . Loans w ere
a rra n g ed a t b o th th e 5 l / 2 and 5 5 /8 p e r ce n t l e v e l s .

lz
/

The com m ercial p a p er m arket was q u ie t d u rin g th e
th e c h i e f developm ent was a f u r t h e r g ra d u a l fir m in g i n th e
though th e range f o r prim e names c o n tin u e d t o b e 4 l / 2 - 4
c e n t , i t became c o n s id e r a b ly more d i f f i c u l t f o r d e a le r s t o
o f p a p er p r i c e d a t th e lo w e r r a t e .

Government
S ecu rity
Market

p e r io d and
r a t e . A l­
3 /4 p e r
d is p o s e

The m arket f o r U n ite d S ta t e s Government bonds was l e s s
a c t i v e than f o r th e p a s t few weeks w ith p r i c e s o f m ost is s u e s
f r a c t i o n a l l y lo w e r* A t th e c l o s e o f th e week p r i c e s o f th e F i r s t
3 l / 2 s and T h ird 4 l / 4 s w ere unchanged from th e p r e v io u s w eek*s c l o s e t
w h ile the o t h e r i s s u e s o f L i b e r t y Loan and T rea su ry bonds showed
d e c l i n e s o f from 3 /3 2 t o l l / 3 2 n d s .
O u tsid e o f one l a r g e o rd e r f o r f o r e i g n a c c o u n t, th e volum e
o f tr a d in g i n th e s h o r t-te r m c e r t i f i c a t e s o f in d e b te d n e s s and T rea su ry
n o t e s was q u ie t w ith d e a le r s * o f f e r i n g p r i c e s a p p ro x im a te ly unchanged
from the p r e v io u s w eek*s c l o s e .
S a le s b y d e a le r s a t th e end o f th e
week w ere r e p o r t e d a t p r i c e s t o y i e l d a b o u t 3*95 p e r ce n t f o r the
c e r t i f i c a t e s m aturin g December 15, 1928 and 3 .8 5 p e r c e n t f o r th e
c e r t i f i c a t e s due March 15, 1929 and 3 .6 9 p e r c e n t f o r th e 3 l / 2 p e r
c e n t T rea su ry n o t e s due 1 9 3 0 -3 2 .

-in k ers

*cceptances




D ealers* o f f e r i n g s o f u n in d o rse d ban k ers a c c e p ta n c e s w ere
a t th e f o l l o w i n g r a t e s ; 4 p er ce n t f o r 30, 60 and 90s and 4 l / 8 p e r
c e n t f o r 1 2 0 -d a y b i l l s .
B oston r e p o r t s th a t th e re was v e r y l i t t l e change in the
c o n d it i o n s in th e b i l l m arket in t h e i r d i s t r i c t d u rin g th e p a s t
p e r io d .
The su p p ly o f new b i l l s was s m a ll, b u t s l i g h t l y in e x c e s s
o f th e p r e v io u s w eek . The demand, how ever, was o n ly f a i r w ith s h o r t
b i l l s e a s i e s t t o m ove. L o c a l banks w ere somewhat b e t t e r p u rch a se rs
than d u rin g th e p r e v io u s p e r i o d .
In New York th e su p p ly o f b i l l s
was m oderate and s l i g h t l y in excess o f th e demand. Dealers* s a le s
c o n s i s t e d c h i e f l y o f o rd e r s f o r n i n e t i e s and lo n g e r b i l l s f o r f o r e ig n
a c c o u n t . L o c a l b u y in g was m o d e ra te .
D ealers* p o r t f o l i o s were un­
ch a n ged .
During th e p a s t week d e a le r s w ere b id d in g 4 l / 4 p e r ce n t

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority/-T

Q ■

(

2a

/
r




f o r 4 months* b i l l s and o f f e r i n g l / 8 p e r c e n t l e s s .
P h ila d e lp h ia
r e p o r t s th a t th e b i l l m arket in i t s d i s t r i c t c o n tin u e d q u ie t*
O ffe r in g s w ere l i g h t *
The demand, w h ile o n l y m od era te, showed a
l i t t l e im provem ent o v e r the p r e v io u s week due in p a r t t o o u t - o f town b u y in g * C hicago r e p o r t s th a t t h e i r b i l l m arket c o n tin u e d q u ie t
w ith demand l i m i t e d t o s h o r t m a t u r it ie s and v e r y few new b i l l s
o ffe r e d .

OPERATIONS FOR ACCOUNT UNITED STATES TREASURY
T ra n s a c tio n s e f f e c t e d under a u t h o r it y from th e T rea su ry
du rin g th e c u r r e n t c a le n d a r week c o n s i s t e d of
S a le s o f

”

7 7 5 ,00 0 p a r amount 3 l / 8 p e r c e n t c e r t i f i c a t e s
due June 15, 1928 f o r a cco u n t
German S p e c ia l D e p o sit A ccou n t
5 0 0 ,0 0 0 ”
"
3 l / 2 p e r ce n t T rea su ry n o te s
due March 1 5, 1932 f o r a cco u n t
Government L i f e In su ra n ce Fund
4 5 0 ,0 0 0 ”
M
3 l / 8 p er c e n t c e r t i f i c a t e s
due June 15, 1928 f o r a cco u n t
_ ___________
A lie n P r o p e r ty C u stod ia n

"

”

$

w

T o ta l S a le s

P urch ase o f

w

”

$ 1#725,000

&L1,5 0 0 ,00 0 p a r amount 3 l / 4 p e r c e n t c e r t i f i c a t e s
due December 15, 1928, S e r ie s
TD, f o r a c c o u n t German S p e c ia l
D e p o s it A ccou n t
3 ,5 0 0 ,0 0 0
"
"
3 3 /8 p e r c e n t c e r t i f i c a t e s due
March 15, 1929 f o r a cco u n t
_
German S p e c ia l D e p o s it A c c o u n t.

T ota l Purchase $ 1 5 ,0 0 0 ,0 0 0

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority f-~"t Q.

(

SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES

T ransactions in th e System A ccou n t during th o c u r r e n t sta tem en t week con­
s is te d o f
S a le s t o :
F o r e ig n c o r re s p o n d e n t

0

J* P% Morgan & Company
F i s c a l Agent

1 0 0 ,0 0 0 . * 3 l / 4 $ c e r t i f i c a t e s o f in d e b te d n e s s due
•
Decem ber 1 5 , 1928
2 7 .0 0 0

T o t a l S a le s

>000* -

3 1 /2 $ T re a s u ry

N otes due 1 93 0 -3 2

$ 2 7 ,1 0 0 ,0 0 0

P u rch a ses fr o m :
F o re ig n co r r e s p o n d e n t
«

0 6 ,8 4 0 ,0 0 0 *

t»

1 ,0 0 0 ,0 0 0 *

V a r io u s T re a su ry A c c t s ,
♦
I

4 5 0 ,0 0 0 .

H

5 0 0 .0 0 0 * -

T o t a l P u rch a ses

0

E xchanges in th e
market o f

0 4 ,0 0 0 ,0 0 0 , -

Exchange w it h f o r ­
e ig n c o r r e s p o n d e n t o f

T o t a l E xchanges

3 1 /8 $ c e r t i f i c a t e s o f in d e b te d n e s s
due June 1 5 , 1928
3 l / 2 % T re a su ry N otes due 1930-32
3 1 /8 $ c e r t i f i c a t e s o f in d e b te d n e s s due
June 1 5 , 1928
3 l/2 /o T re a su ry N otes due 1930-32

8 ,7 9 0 ,0 0 0

1 ,2 0 0 ,0 0 0 ,

3 1 /4 $ c e r t i f i c a t e s due Decem ber 15, 1928
f o r a l i k e amount o f T re a su ry N otes due
1 9 3 0 -3 2
3 l / 4 $ c e r t i f i c a t e s due Decem ber 1 5 , 1928 f o r
a l i k e amount o f 3 l / 8 $ c e r t i f i c a t e s due
June 1 5, 1928

0 5*20 0 ,0 0 0

T h ese t r a n s a c t io n s r e s u lt e d in a n e t d e c r e a s e in th e a cco u n t o f 0 1 8 ,3 1 0 ,0 0 0
v/hich l e f t th e t o t a l h o ld in g s a t th e c l o s e o f th e sta tem en t week at 0 8 1 ,6 9 0 ,0 0 0 *
The p a r t i c i p a t i o n b y t h e F e d e r a l r e s e r v e banks and th e c l a s s i f i c a t i o n o f is s u e s were
as f o l l o w s ;
PARTICIPATION EY FEDERAL RESERVE BAMS
lo s to n
New York
P h ila d e lp h ia
C le v e la n d
Richmond
A t la n t a
C hicago
S t* L o u is
M in n e a p o lis
Kansas C it y
D a lla s
San F r a n c is c o

0 6 ,6 4 5 ,0 0 0
2 2 .8 5 2 .5 0 0
6 ,2 0 0 ,0 0 0
7 .1 7 3 .0 0 0
2 .2 9 9 .5 0 0
2 .0 2 1 .0 0 0
1 3 .2 6 5 .5 0 0
0
3 .3 2 5 .5 0 0
5 .8 3 9 .5 0 0
4 ,6 6 9 ,0 0 0
' 7 .3 9 9 «5 0 0

T o ta ls

081,690,000




RECAPITULATION OF HOLDINGS BY MATURITIES
June
Sept#
D ec*
D ec*
Mar.
Mar*
D ec*

15,
15,
15,
15,
15,
1 5,
1 5,

1 92 8 -3
19 28—
4
1928—
3
1 928-3
1 9 2 9 -3
1 9 3 2 -3
1 9 3 2 -3

l/3 /s

ci
/

3rd
1 / 4 /= C /I
1 /4 ?, «
3 /8 f0 it
l/2% t / s
It
1M *
1 / 4^

hL
/
(o ld )
(new )

019 #175,000
1 ,3 5 6,700
4 6 ,8 3 9 ,0 0 0
1 7 ,2 6 8 ,5 0 0
5 ,4 5 0 ,0 0 0
5 6 0 ,00 0
4 0 ,8 0 0

§81,690,000

Reproduced from the Unclassified I Declassified Holdings of the National Archives

~~~
f

DECLASSIFIED

Authority/ ^

Q.

(

4
A f t e r t h e c l o s e o f t h e statem en t week s a le s were made t o th e m arket o f
$ 7 ,0 0 0 ,0 0 0 - 3 1/4/& c e r t i f i c a t e s o f in d e b te d n e s s due December 1 5 , 1 92 8 , as an o f f s e t
t o th e p u rch a ses made from f o r e i g n c o r r e s p o n d e n t s , shown in th e fo r e g o in g state-*
ment*
T hese s a le s l e f t th e t o t a l h o ld in g s in t h e a ccou n t a t $ 7 5 , 0 9 0 *0 0 0 ,
On May 26 th e F e d e r a l R eserv e Bank o f S t . L o u is , due t o heavy r e d is c o u n t s
and r e d u c t io n s i n d e p o s i t s i n c i d e n t t o June 1 t a x r e t u r n s in M is s o u r i, r e q u e s te d t o
b e r e l i e v e d t e m p o r a r ily o f $ 5 ,1 3 7 ,5 0 0 Government s e c u r i t i e s r e p r e s e n t in g t h e i r
p a r t i c i p a t i o n in th e System A cco u n t*
They fu r t h e r r e q u e s t e d cun May 31 and June 1
t o be r e l i e v e d t e m p o r a r ily o f $ 9 ,5 0 0 ,0 0 0 a g g re g a te amount o f T rea su ry N otes from
t h e i r o u t r i g h t h o ld in g s o f Government s e c u r i t i e s *
T hese s e c u r i t i e s were a c c o r d in g ­
l y purch ased t e m p o r a r ily and a p p o rtio n e d t o th e o th e r p a r t i c i p a t i n g banks in th e
System A ccou n t*
T h is p u rch a se from St* L o u is f p o r t f o l i o t e m p o r a r ily in c r e a s e d th e
t o t a l h o ld in g s in th e System A ccou n t to $ 8 4 ,5 9 0 ,0 0 0 *
I t i s e x p e c t e d , t h a t S t* L o u is
w i l l re p u r ch a se t h e s e s e c u r i t i e s s h o r t ly *
SYSTEM PURCHASES OF BANKERS ACCEPTANCES
P u rch a se s o f b a n k ers a c c e p ta n c e s d u rin g thft c u r r e n t sta tem en t week and
rimount e a ch bank now h o ld s in e x c e s s o r s h o r t o f i t s pro r a t a sh a re under th e
a p p ortion m en t p la n put in t o e f f e c t f o r th e e a r l y p a r t o f th e y e a r :
B i l l s Over
F ro R a ta Share

B i l l s A c a u ire d
B o sto n
New York
P h ila d e lp h ia
C le v e la n d
Richmond
A t la n t a
C h icago
S t* L ou is
M in n e a p o lis
Kansas C it y
D a lla s
San F r a n c is c o
T o t a ls

B i l l s E n title d
t o A c a u ire

$ 69,0 3 3 ,0 0 0
2 2 1 ,2 2 4 ,0 0 0
8 3 ,3 0 2 ,0 0 0
9 3 ,8 8 9 ,0 0 0
4 5 ,3 9 5 ,0 0 0
3 7 ,5 0 4 ,0 0 0
1 2 5 ,1 0 5 ,0 0 0
1 9 ,4 5 9 ,0 0 0
3 7 ,8 3 2 ,0 0 0
4 4 ,9 8 4 ,0 0 0
3 9 ,9 6 2 ,0 0 0
7 6 .8 1 9 .0 0 0

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

$ 6 ,4 2 6 ,0 0 0
0
0
0
675,000
3 38,000
0
0
666,000
0
2 ,7 9 7 ,0 0 0
190.000

$ 8 9 4 ,5 0 8 ,0 0 0

$ 8 9 4 ,5 0 8 ,0 0 0

$ 1 1 ,0 9 2 ,0 0 0

B i l l s S h ort
P ro R a ta Share
$

6
7 ,4 4 8 ,0 0 0
2 ,2 7 1 ,0 0 0
625,000
0
0
319,000
0
0
4 29 ,00 0
0
0
$11,092,000

The o v e ra g e o f th e B oston bank shown in th e above statem en t i s b e in g ad­
ju s te d b y making d i s t r i b u t i o n t o s e v e r a l o f th e o t h e r F e d e r a l r e s e r v e banks*
On May 31 th e F e d e r a l R eserv e Bank o f Richmond r e q u e s te d t h a t th e y be
f i t t e d from p a r t i c i p a t i o n in any o v e r -p u r ch a se s o f a c c e p ta n c e s b y o th e r F e d e r a l
r e s e r v e banks than New York*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Q■

(

5
ITEMIZED STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF ALL
__ ____________ FEDERAL RESERVE BANKS FROM MAY 24 TO MAY 29 r 1928________________

B o sto n
New York
P h ila d e lp h ia
C le v e la n d
Richmond
A t la n t a
C h icago
S t . L o u is
Minneapo l i s
Kansas C ity D a lla s
San F r a n c is c o

GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Sales
P u rch a ses
0 2 ,6 1 4 ,0 0 0
0 1 ,5 3 8 ,0 0 0
1 4 ,1 2 6 ,0 0 0 *
1 0 ,4 2 8 ,5 0 0 *
2 ,4 3 9 ,0 0 0
1 ,4 3 6 ,0 0 0
2 ,8 2 2 ,0 0 0
1 , 660,500
9 0 4 ,0 0 0
532 ,50 0
795,500
4 6 8 ,5 0 0
3 ,0 7 1 ,5 0 0
5 ,2 1 3 ,0 0 0
5 ,3 0 5 ,5 0 0
2 1 4 ,0 0 0
1 ,3 0 8 ,0 0 0
769,500
2 ,2 9 7 ,0 0 0
1 ,3 5 2 ,0 0 0
1 ,83.6,000
1 ,0 8 0 ,5 0 0
2*91 0 .0 0 0
l t 7 13,500

T o t a ls

0 2 4 ,2 6 5 ,0 0 0

0 4 2 ,5 7 5 ,0 0 0

Net D e cre a s e
0 1 ,0 7 6 ,0 0 0
3 ,6 9 7 ,5 0 0
1 ,0 0 3 ,0 0 0
1 ,1 6 1 ,5 0 0
371,500
3 2 7 ,0 0 0
2 ,1 4 6 ,5 0 0
5 ,0 9 1 ,5 0 0
»»,538,500
9 4 5 ,0 0 0
755,500
1 .1 9 6,500.
0 1 8 ,3 1 0 ,0 0 0

In c lu d e s 0 5 ,1 3 7 *5 0 0 p u rch a sed frwS S t* L ou is* p a r t i c i p a t i o n in System A ccou n t
l a t e on S a tu rd a y , May 26* and a p p o r tio n e d t o o t h e r p a r t i c i p a t i n g banks on th e
fo l l o w i n g Monday*

B o sto n
New York
A t la n t a
T o t a ls

OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
P u rch a ses
Is s u e
S a le s
Issu e
..
0
0
F o u rth L /L bonds
0
50
* 7 55 ,00 0
June 1 5 , 1928 C / l
0
I 9 3 f 450 M isc * G ovH S e c .
1 72 r 700 M is c . G ov H Sec#
0 94 8 ,4 5 0

017 2 ,7 5 0

* Held t e m p o r a r ily f o r r e s a l e

Bankers acceptances
(COO O m itted )'

o o
<.>

R e c ’ d by A llotm en t
O th er H o ld in g s
R egu la r From
Matur­
C lo s e May 2 9 /2 8
H o ld in g s Purchased
from
O ther
B oston
S a le s
it ie s u
H old in g s
May 23
Own KMkt,
N .Y ,
P ort.
Mav 29 C o n tr a c ts B112,9
S a le s
B oston
0 3 5 ,9 7 3 0 7 ,5 2 7 R
00
0 7 ,5 3 2 * 0 35,9 68 0 5 ,3 6 8 019
New York
4 ,0 1 7 "
5 1 ,1 9 2
0
7 ,9 1 8
585
.4 7 ,2 9 1
9 ,4 4 1
5 ,3 4 8 A
Phi la .
3 5 ,8 4 2
0
714 R
0
3 3,2 30
0
24
3 ,3 2 6
C leve*
29,900
198 "
1 ,3 3 1
186
0
500
2 7 ,4 3 5
4 ,5 5 4
Richmond
1 5 ,5 6 7
165 "
432
2 ,1 3 7
13
0
1 4 ,0 2 7
0
A t la n t a
21,8 20
139 ”
513
700
2 0 ,9 1 6
0
1 ,5 5 6
0
C hicago
1 87 "
4 0 ,7 3 0
606
36
0
3 0 ,9 4 4
3 ,1 0 5
1 0,5 79
S t . L o u is
923
0
0
0
0
823
11
100
M inn.
2 0 ,7 3 6
0
0
7
658
1 ,0 0 0
1 ,4 2 9
2 0 ,9 65
K an *C ity
1 3 ,4 5 1
0
0
1 ,0 0 0
782
1 ,4 9 2
13*741
9
D a lla s
1 4 ,8 6 8
750 "
513
1 ,0 0 0
2 ,1 1 6
15*015
200
$
San Fran*
2 3 .2 2 1
219 "
513
1 9 .3 1 1
2 .4 0 2
0
4 .6 4 2
... 18
T o ta ls
0 3 0 4 ,2 8 3 0 1 9 ,2 6 4
0 5 ,3 4 8
03*500
0 4 7 ,3 8 1
0 2 7 9 ,6 6 6 0 2 0 ,5 1 6
$ 1 ,6 1 7
B i l l s h eld o v e r n ig h t b y New York f o r d i s t r i b u t i o n t o oth e r ■ F* R . Banks - - - - _ 2 * m
T o t a l -------------------- ----- - * 0 3 ,8 0 6
* I n c lu d e s $ 3 ,5 0 0 ,0 0 0 s o ld t o o t h e r F e d e ra l r e s e r v e b a n k s, r e p r e s e n t in g t h e i r
p r e v io u s o v e r - p u r c h a s e s ,

NOTE: R* i n d i c a t e s R e ta in e d


and A* i n d i c a t e s A l l o t t e d in th e above s ta te m e n t.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority f ~

; Q .

/

MATURITISS AND RATES ON BILLS PURCHASED W
EEK ENDING MAY 2 9, 1928
(OOO O m itted )
1 -3 0 days
3 1 /4 - 4 i M

31-60 days
4 -4 1M

61-90 da ys Over 9 0 - days
3 3 /4 - 4 1/8%
4 -4 1 /4 1

0 2 ,6 3 7
6 ,8 1 1
0
O
O
0
187
0
36

T o ta ls

0 1 ,7 6 2
447
O
O
0
84
0
146
24

0 3 ,0 5 0
1 ,7 5 7
714
198
165
51
O
99
130

0

§ 9 ,6 7 1

B o sto n
Nesr York
P h ila d e lp h ia
C lev ela n d
Richmond
A t la n t a ~
C h ica go
D a lla s
San F r a n c is c o

0 2 ,4 6 3

0 6 ,1 6 4

T ota l

0

0966

78
350
0
0
0
4
0
505
29

7 ,5 2 7
9 ,3 6 5
714
198
165
139
187
750
219

0 1 9 ,2 6 4

RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING 1EEK ENDING MAY 2 9 . 1928
(OOO O m itted )
(E x e lu d in g S a le s C o n t r a c t s )
Government
S e c u r itie s
P u rch ased
S o ld
Matured

T o ta ls

B ankers
A c c e p ta n c e s

0 2 5 ,2 1 6
4 2 ,7 4 7
0

0 1 9 ,2 6 4
43J381
0 2 4 , 6179 1 5 + (Net Change
__________1 -d a y h o ld o v e r
& O ther b i l l s )

0 4 4 ,4 8 0
4 2 ,7 4 7
4 3 .8 8 1
0 4 2 ,1 4 8 915+ (N et Change
i - d a y h o ld o v e r
« o th e r b i l l s )

$ 1 7 ,5 3 1 -

0 2 3 ,7 0 2 -

0 4 1 ,2 3 3 -

T o ta l

(I n c lu d in g S a le s C o n t r a c t s )

31—
60
days

H old in g s
May 29. 1928

W ith in
1 5 -d a y s

1 6-30

C ovH S e c u r it ie s
B i l l s P u rch ased

0 1 5 ,5 3 5
9 7 .5 9 7
__________

0 1 0 ,9 3 0
7 3 .5 2 8
_______

_ 9 5 .8 4 2
____

0 U 3 ,1 3 2

0 8 4 ,4 5 8

0 9 5 ,8 4 2

T o t a ls




days

91 d a y s 6 months

Over 6
months

0
3 0 r 20 4

0 2 ,0 2 2
6 .8 1 7
_______

0 1 9 0 ,9 3 9
O
_______

0 2 1 9 ,4 2 6
3 0 3 .9 8 8

0 3 0 ,2 0 4

0 8 ,8 3 9

0 1 9 0 ,9 3 9

0 5 2 3 ,4 1 4

61-90
days

Total

R eproduced from the U nclassified

I D eclassified H oldings of the N ational A rchives
DECLASSIFIED

r-

Authority

O- l O ^ O (

m r 39, 1223.

Dear Mr. Mattegon:
I
acskiiowledge receipt o f and shall “
bring
t&e Httaation o t fhfc members < f fcb* Bo&rd, your
fc
le tte r &f U&y
to Governor fotfaag, #t>*
eX&ti&C"'®.transact Ions In Gorera'nent
tia-s aM oan>jBrg acceptances, as reported to your
CoOTaitt*® for th© period f t m U & 17, 1323 to Kay 23,
&
1928, taclueive.
Very truly your*,

Salter L. Sddy,
S»C3f©t&fy,

k*r. f . 31. Mait**Qn, SWHtetaaey*
Open Marlsei
CoEsaitta#,
c/o Pederal B u m Bank,
tew York, N. Y.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
A u th o r ity 0.

(

Fe d e r a l R e s e r v e Ba n k
o f N ew Y o rk

P E R S O N A L

may 28, 1928

Dear Governor Young:
W are enclosing, for your f i l e s , a report o f transac­
e
tion 8 in Government securities and bankers acceptances as report­
ed to the Open Market Investment Committee for the FedertJL Reserve

System for the period from May 17, 1928 to May 23, 19£8 inclusive,
together Irith data received by the Committee from the Federal
reserve banks.

Secretary, Open Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
Washington, D. G.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authorityp~, Q. W ^ O (

*
•

' ' TOR SPtCIAIi CIRCULATIOH ~
PLEASE READ FROM iT. INITIAIi ABB RETUEJ TO SEC.

J

Yetrag
*/}&. P la tt




E r . E£JBXin i / ^

r .

Jasss^

Kr, H ille r

,ARY, S OFFICE

Mr.Cunningham

Mr. Mclxrtosq

Fe d e r a l R e s e r v e B a n k
of

N e w Yo r k

& y 28, 1928
&

CONFIDENTIAL

Dear Governor Young:
inclosed i s a report of transactions in Government
securities and bankers acceptances as reported to the Open
Market Investment Committee for the Federal Reserve System
for the period from M 17, 19£8 to M 25, 1928 inclusive,
ay
ay
together with data received by the Committee from the Federal
reserve banks.

Secretary, Open fearket
Investment Committee

Encl.

Honorable Roy A* Young,
Governor, Federal Reserve Board,
Washington, D. C.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority^

Q.

{

CONFIDENTIAL
REPORT OF OPEN MARKET INVESTMENT COMMITTEE W
EEK ENDED

MAY 2 3, 1928

SgMiHffiP o f , E arning A s s e t s o f F e d e ra l R e se rv e Banks from A p r i l 2 7 T 1927 t o D ate
(0 0 0 O m itte d )
TOTAL
EARNING
ASSETS

-1 9 2 7 .
A p r.
27
May
25
June 29
J u ly 27
A ug.
31
S e p t , 28
O ct.
26
N ov.
30
D ec.
28
-1 9 2 8 Jan . 25
F e b . 29
Mar* 28
Apr* 25
May • 16
May
23

GOVERNMENT SECURITIES
O u trig h t
S a le s
P urch ase^
C o n tr a c ts

BANKERS ACCEPTANCES
O u tr ig h t
S a le s
P u rch ases
C o n tr a c ts

BILLS
DISCOUNTED

§ 1 ,0 0 5 ,5 7 7
9 9 8 ,51 0
1 ,0 7 1 ,1 3 0
9 5 3 ,9 3 1
1 ,0 5 8 ,7 8 6
~ 1 ,1 6 7 ,6 3 2
1 ,2 1 4 ,7 5 9
1 ,3 8 0 ,5 1 5
1 ,5 9 8 ,8 4 2

0 31 4 ,3 3 2
302,349
367,140
380,559
4 6 9 ,9 5 4
4 8 4 ,0 5 4
507 ,24 5
5 4 3 ,7 5 7
558,699

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

0 1 9 4 ,0 0 7
1 7 1 ,9 0 7
1 8 3 ,1 6 3
1 5 7 ,2 9 1
1 18 ,18 9
172 ,03 0
243,249
2 8 8 ,4 6 4
315,152

0 4 7 ,8 9 2
6 4 ,2 6 3
3 2,9 55
1 2 ,0 9 4
66,939
7 0,1 18
5 7 ,8 6 2
6 6 ,2 7 6
7 0 ,3 7 5

0 4 4 3 ,5 5 3
4 28 ,62 0
4 7 7 ,3 1 1
398 ,13 0
4 0 0 ,5 2 4
4 3 0 ,3 1 2
4 0 2 ,3 9 8
4 7 7 ,0 2 5
609,209

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

4 3 4 ,8 1 7
399,132
379,448
293 ,36 5
251,250
2 21 ,42 3

6,000
8 ,4 7 0
6 ,3 8 4
1 1,3 90
11,070
9 ,0 5 8

3 1 8 ,8 6 3
3 02 ,93 2
2 8 8 ,6 5 2
331 ,42 5
3 29 ,42 5
3 0 7 ,1 7 4

2 8 ,4 4 2
4 0 ,8 2 7
5 7 ,4 5 1
3 4 ,4 1 6
1 7 ,8 6 7
2 3 ,3 8 8

3 8 5 ,2 2 4
4 9 2 , &68
5 2 4 ,0 9 6
7 0 9 ,0 7 3
8 0 7 ,4 1 2
8 4 7 ,4 7 2

CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
_ _ _____________DURING W
EEK ENDED MAY 23T 1928
(000 O m itted )
GOVERNMENT SECURITIES
B alan ce
Net
Mav 23
Chance
B oston
New York
P h ila d e lp h ia
C levela n d
Richmond
A tla n ta
C hicago
S t . L o u is
M in n e a p o lis
Kansas C ity
D a lla s
San F r a n c is c o
N*Y* h o ld o v e r s
and o t h e r b i l l s
T o t a ls

0

8 ,4 2 7
2 7 ,9 3 4
2 2,3 90
3 4 ,6 4 3
3 ,8 2 4
5 ,4 8 8
35,3 39
2 1 ,7 1 6
11,4 49
1 6 ,5 1 8
1 5 ,4 1 8
1 8 ,2 7 7

0 1 ,9 2 8 1 1,4 94 *
1 ,7 9 9 2 ,0 8 1 6665 83 3 ,8 4 8 —
1 ,2 7 1 9 641 ,6 9 3 1 ,3 5 5 —
2 ,1 4 4 —

BANKERS ACCEPTANCES
Net
B a lan ce
Change
Mav 23

0

35,9 73
5 1 ,1 9 2
3 5 ,8 4 2
2 9 ,9 6 0
1 5 ,5 6 7
2 1,820
4 0 ,7 3 0
923
20 , 736
1 3 ,4 5 1
1 4 ,8 6 8
2 3 ,2 2 1

0 1,100+
6 ,2 1 8 —
3 ,1 1 8 3 ,9 3 4 —
1 ,1 7 4 46*
4 ,4 8 7 538241+
1 ,0 2 9 40+
2, 711-

2 .8 9 1
0 2 2 1 ,4 2 3

0 2 9 ,8 2 6 -

0 2 2 ,2 5 1 -

0

69,585
307 ,78 0
5 5,4 38
7 0 ,0 0 1
4 1 ,6 2 5
5 3 ,6 9 1
9 6 ,0 3 1
4 6 , 666
1 1 ,0 4 0
2 2 ,3 5 7
9 ,0 6 2
6 4,1 96

0 12,023+
10,951+
241+
10,562+
626*
7,455+
1 6 ,7 4 8 r
1 1 ,3 4 4 *
2 ,0 3 9 351+
1,918+
550+

377*

0 3 0 7 ,1 7 4

BILLS DISCOUNTED
Net .
B a lan ce
Change
Mav 23

0 84 7 ,4 7 2

0 40 ,06 0 +
.■.,,■====3

COM ENT ON CHANGES W
M
EEK ENDED MAY 2 3 . 1928
T o t a l ea rn in g a s s e t s o f th e System showed a d e c r e a s e o f $ 8 ,5 0 9 ,0 0 0 f o r th e
c u r r e n t sta tem en t w eek.
The approxim ate ch a n g e s, b y c l a s s i f i c a t i o n , c o n s is t e d o f
d e c r e a s e s o f § 2 2 ,2 5 0 ,0 0 0 in o u t r i g h t p u rch a ses o f b a n k ers a c c e p ta n c e s and
0 2 9 .8 5 0 .0 0 0 in o u t r ig h t p u rch a se s o f Government s e c u r i t i e s , and in c r e a s e s o f
0 4 0 .0 5 0 .0 0 0 in b i l l s d is c o u n t e d and 0 3 ,5 0 0 ,0 0 0 n e t in in v e stm en ts h e ld under s a le s
con tra cts.
The l a t t e r item c o n s is t e d o f an in c r e a s e o f 0 5 ,5 0 0 ,0 0 0 in b an k ers
a c c e p ta n c e s and a d e c r e a s e o f 0 2 ,0 0 0 ,0 0 0 in Government s e c u r i t i e s *



Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
A u t h o r i t y Q.

j

2
Money
Market

C a ll money on th e Exchange was ste a d y at 6 per cen t
th ro u g h o u t th e ( c a l e n d a r ) week*
The p re s e n t i n t e r v a l o f 6 p er ce n t
money marks th e l o n g e s t p e r io d t h a t t h i s r a t e has b een m a in ta in ed
c o n s e c u t i v e l y s in c e A ugust 1921*
T h ere was a m o d e r a te ly la r g e in *
flo w o f com m ercial fu n ds from o th e r d i s t r i c t s d u rin g th e week w h ich
was p a r t l y o f f s e t by g o ld e x p o r t s and r e d u c t io n s in th e b i l l and
s e c u r i t y h o ld in g s o f th e R e se rv e B anks, b u t some r e t ir e m e n t o f New
York C it y bank lo a n s a t th e New York R e s e rv e Bank a ls o o c c u r r e d * The
a verage amount o f th e C it y b an k s’ in d e b te d n e s s * how ever,, rem ained
h ig h » about $ 2 4 0 ,0 0 0 ,0 0 0 f o r th e week as a w hole * and c o n s e q u e n tly *
c a l l money f a i l e d t o show any marked i n d i c a t i o n s o f e a s in g *
Time money was fir m e r a t 5 l / 2 per c e n t , b id and a s k e d , th e
h ig h e s t q u o t a t io n s in c e O cto b e r 1923* Demand f o r accom m odation was
l e s s a c t iv e than in th e p r e c e d in g w eek.
B oth th e demand f o r and su p p ly o f com m ercial paper were in
o n ly f a i r volume d u rin g th e p e r io d *
Prim e names co n tin u e d t o be
s o ld a t 4 1 /2 and 4 3 /4 per c e n t , b u t t h e r e was a te n d e n cy f o r a p r o g r e s s i v e l y la r g e r p r o p o r t io n o f th e s a le s t o be made a t th e h ig h e r
r a te •

upvernment
S e c u r it y
Market

The market f o r U n ited S t a t e s Government s e c u r i t i e s was
m o d e r a te ly a c t i v e and firm *
P r i c e s o f U n ited S t a t e s L ib e r t y Loan
and T re a s u ry bonds were s l i g h t l y i r r e g u l a r as compared w ith th e
p r e v io u s week’ s c l o s e , w h ile d e a l e r s 1 o f f e r i n g p r i c e s f o r th e s h o rt*
term c e r t i f i c a t e s o f in d e b te d n e s s and T re a su ry n o t e s were l/3 2 n d mid
2 /3 2 n d s h ig h e r .

Bankers
A c ce p ta n ce s

D e a le r s * o f f e r i n g s o f u n in d o rs e d b a n k ers a c c e p ta n c e s were
at th e fo llo w in g r a t e s ; 4 per ce n t f o r 30s and 6 0 s, 4 t o 4 1 /8 p e r
ce n t f o r 90s and 120-d a y b i l l s .




B oston r e p o r t s t h a t money r a t e s d u rin g th e p a s t p e r io d were
u n d o u b te d ly a b i g f a c t o r in slow in g up th e b i l l m arket in t h i s
d is tr ic t.
Banks w hich w ere o r d i n a r i l y good b u y ers o f b i l l s showed
p r a c t i c a l l y no i n t e r e s t and c o n s e q u e n tly th e demand was v e ry p o o r ,
w h ile th e su p p ly o f new b i l l s a ls o showed a sharp f a l l i n g o f f *
S h ort
m a t u r it ie s were in b e s t demand, a lth o u g h b i l l s as a w h ole d id n o t move
fr e e ly *
O f f e r i n g s t o th e R e se rv e Bank were m oderate* In New York
th e su p p ly o f b i l l s was m oderate and about eq u a l t o th e demand*
D e a le r s ’ s a le s c o n s is t e d c h i e f l y o f o r d e r s f o r fo r e ig n a ccou n t* L o c a l
b u yin g was l i g h t *
D e a le r s * p o r t f o l i o s d e c r e a s e d s l i g h t l y * P h i la d e l ­
p h ia r e p o r t s th a t i t s b i l l m arket was d u l l and i n a c t i v e * O f f e r i n g s
and demand were b o t h l i g h t *
A sm a ll demand was n o te d f o r fo u r months
b i l l s from o u t -o f -t o w n i n s t i t u t i o n s *
In C h icago d e a le r s r e p o r t e d v e ry
l i t t l e i n t e r e s t in b i l l s even at th e new h ig h er r a t e s and b u t v e r y few
new b i l l s were m ade.

OPERATIONS FOR ACCOUNT UNITED STATES TREASURY
T r a n s a c t io n s e f f e c t e d under a u t h o r it y from th e T re a su ry dur*
in g th e c u r r e n t ca le n d a r week c o n s i s t e d o f s a le s a g g r e g a tin g § 1 ,0 5 4 ,'C C
D#
3 1 /8 p er c e n t c e r t i f i c a t e s o f in d e b te d n e s s due June 15* 1928 f o r ac«*
cou n t German S p e c i a l D e p o s it A ccou n t*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

"

DECLASSIFIED
Authority f-~; Q.

f

s '

3

SYSTEM PURCHASES QF BANKERS ACCEPTANCES
P u rch a ses o f b a n k ers a c c e p t a n c e s d u rin g th e c u r re n t sta tem en t week and
amount e a ch bank now h o ld s in e x c e s s o r s h o r t o f i t s pro r a t a sh are under th e
ap p ortion m en t pla n put in t o e f f e c t f o r th e e a r l y p a r t o f th e y e a r :

B i l l s A ca u ired

B i l l s E n title d
t o A c a u ire

B i l l s Over
P ro R a ta Share

0 65,00 6,000

0 6 1 ,2 5 9 ,0 0 0

$ 3 ,7 4 7 ,0 0 0

2 1 7 ,2 0 7 ,0 0 0

2 2 3 ,6 6 3 ,0 0 0

0

6 ,4 5 6 ,0 0 0

8 2 ,5 8 8 ,0 0 0

8 3 ,6 4 7 ,0 0 0

0

1 ,0 5 9 ,0 0 0

C le v e la n d

9 1 ,8 6 0 ,0 0 0

9 2 ,3 9 5 ,0 0 0

0

535*000

Richmond

4 4 ,7 9 8 ,0 0 0

4 3 ,7 5 7 ,0 0 0

1 ,0 4 1 ,0 0 0

0

A t la n t a

3 6 ,8 5 2 ,0 0 0

36*010,000

8 42,000

0

C hicago

1 2 4 ,3 1 2 ,0 0 0

1 2 3 ,8 8 3 ,0 0 0

429 ,00 0

0

S t„ L ou is

1 9 ,4 5 9 ,0 0 0

1 9 ,4 5 9 ,0 0 0

0

0

M in n e a p o lis

3 6 ,1 7 4 ,0 0 0

3 6 ,0 1 0 ,0 0 0

1 64 ,00 0

0

Kansas C it y

4 3 ,2 0 2 ,0 0 0

4 4 ,2 5 7 ,0 0 0

0

D a lla s

3 7 ,6 9 9 ,0 0 0

3 6 ,0 0 9 ,0 0 0

1 ,6 9 0 ,0 0 0

0

San F r a n c is c o

7 6 .0 8 7 ,0 0 0

7 4 .8 9 5 .0 0 0

1 .1 9 2 .0 0 0

0

$ 8 7 5 ,2 4 4 ,0 0 0

0 8 7 5 ,2 4 4 ,0 0 0

§ 9 ,1 0 5 ,0 0 0

B o sto n
New York
" P h ila d e lp h ia

T o t a ls




B i l l s S h ort
P ro R a ta Share
0

o

1 ,0 5 5 ,0 0 0

0 9 ,1 0 5 ,0 0 0

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority jpT

0■

(

SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
T r a n s a c t io n s in t h e ‘ System A ccou n t d u rin g th e

cu r r e n t sta tem en t week

c o n s is t e d o f
S a le s i n m arket o f

§ 1 1 ,0 0 0 ,0 0 0 -

3 3/$% c e r t i f i c a t e s o f in d e b te d n e s s
due M arch 1 5 , 1929*

S a le s in m arket o f

2 ,0 0 0 ,0 0 0 -

3 l / 4 $ c e r t i f i c a t e s o f in d e b te d n e s s
due December 1 5 , 1928*

S a le t o J* P . Morgan & Co*
as f i s c a l agent, o f

1 5 ,0 0 0 ,0 0 0 - 3 l / 2 % T re a su ry N otes due December
______________
1 5 , 1 93 0 - 3 2 .
$ 2 8 ,0 0 0 ,0 0 0

JTotal S a le s
P u rch a se in th e market
and from tem p ora ry h old ­
in g s o f F e d e r a l R e se rv e
Bank, New Y ork , o f

3 ,0 4 1 ,7 0 0 -

v a r io u s i s s u e s o f s h o r t-te r m G overnm ents.

T hese t r a n s a c t i o n s r e s u l t e d in a r e d u c t io n in th e a cco u n t o f $ 2 4 , 9 5 8 , 3 0 0
w h ich l e f t th e t o t a l h o ld in g s a t th e c l o s e o f b u s in e s s W ednesday, May 23, 1 92 8 , a t
an even $ 1 0 0 ,0 0 0 ,0 0 0 .

The p a r t i c i p a t i o n b y th e F e d e ra l r e s e r v e banks and th e

c l a s s i f i c a t i o n o f is s u e s w ere as f o l l o w s :
PARTICIPATION BY FEDERAL RESERVE BANKS
B o sto n
New York
P h ila d e lp h ia
C le v e la n d
Richmond
A t la n t a
C hicago
S t . L o u is
M in n e a p o lis
Kansas C it y
D a lla s
San F r a n c is c o
T o t a ls

7 .7 2 1 .0 0 0
2 6 .5 5 0 .0 0 0
7 .2 0 3 .0 0 0
8 .3 3 4 .5 0 0
2 .6 7 1 .0 0 0
2 .3 4 8 .0 0 0
1 5 .4 1 2 .0 0 0
5 .0 9 1 .5 0 0
3 .8 6 4 .0 0 0
6 .7 8 4 .5 0 0
5,4 2 4*5 0 0
8>596.000
§ 1 0 0 ,0 0 0 ,0 0 0

RECAPITULATION OF HOLDINGS BY MATURITIES
June 1 5 ,
S ept * 1 5 ,
15,
D ec.
D ec* 1 5,
M ar. ■15,
Mar* 15,
Sept * 1 5 ,
Dec* 15,

1 9 2 8 -3
1 9 2 8 -4
1 9 2 8 -3
1 92 8 -3
1 9 2 9 -3
1932—
3
1 93 2 -3
1 9 3 2 -3

$ 1 ,1 8 5 ,0 0 0
l / 8 l C /I
1 ,3 5 6 ,7 0 0
3rd L /L
1 /4 $
4 7 ,1 8 9 ,0 0 0
1 M C /l ( o ld )
1
2 2 ,2 1 8 ,5 0 0
(new )
1 /4 $ 1
1
1
5 ,4 5 0 ,0 0 0
3/8%
1 0 ,1 6 0 ,0 0 0
1/7$ T/N
1
*
5 ,0 0 0 ,0 0 0
iM
«
7 ,4 4 0 ,8 0 0
l/2 /o

,

$100 000,000

S in c e th e c l o s e o f th e statem en t week fu r t h e r s a le s have been made a ggre­
g a t in g $ 2 5 ,0 0 0 ,0 0 0 , w hich w i l l e f f e c t a r e d u c t io n in th e a cco u n t as o f May 2 8 , 1928
t o $ 7 5 ,0 0 0 ,0 0 0 *




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

f-". Q
■

(

ITEMIZED STA M N OF TRANSACTIONS AFFECTING TH IN
TE E T
E VESTM T A C U T OF ALL
EN C O N
_____________ FED AL RESER
ER
VE B N S F O M Y 17 T M Y 23. 1928
A K RM A
O A
________ _
G V R M N SECURITIES - SYSTEM IN
OEN ET
VESTM
ENT A C U T
CON
Nfit Decrease
Purchases
Sales
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals

234,500
807,700
218,500
253,500
81,500
72,000
468,500
155,000
117,500
206,500
165,000
261.500
03,041,700

1.927,000
6, 626, 300
1,798,500
2,080,500
666,000
585,000
3,847,500
1,271,000
964,000
1,693,500
1,354,000
2,145.000
024,958,300

2,161,500
7,434,000
2,017,000
2,334,000
747,500
657,000
4,316,000
1,426,000
1,081,500
1,900,000
1,519,000
2.40 6.500
028,000,000

0

0

0

O H R TRANSACTIONS IN G V R M N SECURITIES
T E
OEN ET
Purchases
0
* 1,664,000
339,250
950

Boston
New York
Atlanta
Dallas

Issue

0

Totals

Sales
0

June 15, 1928 C / l
Misc. GovH Sec.
Third L/L bonds

$2,004,200

600
6, 532,400
*
336,800
2,000

Issue
Fourth L/L bonds
Misc. Short-tern GtevHs
Misc. GovH Sec.
Fourth L/L bonds

06,871,800

* Held temporarily for resale.

Boston
New York
phila.
Clove.
Richmond
Atlanta
Chicago
Sta Louis
Minn.
Kan*Gity
Dallas
San Fran.

Holdings
Mav 16
0 34,873
57,410
38,960
33,894
16,741
21,866
45,217
1,461
20 , 495
14,480
14,828
25r932

B K S ACCEPTAN
AN ER
CES
(000 Omitted)
By Allots MaturPurchased
ment fran it ie s &
O n Mkt.
w
New Yoik Sales
0 3,548 R
0 0
0 2,448
4,356 it
0
10,574
7,108 A
755 R
0
3,873
636 it
1,468
6,038
50 n
603
1,827
126 ii
699
8 71
»
3,539 t
941
8,967
0
0
538
0
722
481
0
892
1,921
865 it
713
1,538
554 M
1.070
4.335

Holdings
Mav 23
0 35,973
■51,192
35,842
29,960
15,567
21,820
40,730
923
20 , 736
13,451
14,868
23.221

Other H oldi^s
Close Mav 23f 1928
Sales
Other
Contracts
B ilM
0 7,760
0
19
12,260
570
0
0
0
0
3,168
0
0
0
0
200

24
271
13
677
36
11
7
9
9
18

023,388
01,664
021,537
Totals ^326,157
0304,283
07,108
$43,411
B ills held over night by New York for distribution to other F. R. Banks - - 1*227
r02,89l
Tot al
NOTE:

R. in d ica te s Retained and A. in d ica te s A llo tte d in the above statement




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority O j

(

/L

(000 Omitted)
-1 — days
30
3 5/8-4^
Bo ston
§
28
New York
7,205
Philadelphia
25
Cleveland
0
Richmond
50
Atlanta
24
Chicago
998
Dallas -55
San Francisco
280
Totals

61-90 days
3 3 /4 -4 l M

31—60 days
3 3 /4 -4 i M

Over 90-days
3 3 /4 -4 l M

Total

01,775
773
531
368
0
0
1,276
178
114

§

0
1,447
0
0
0
0
0
567
116

§ 3,548
11,464
755
636
50
126
3,539
865
554

§5,727

§8,665

§1,745
2,039
199
268
0
102
1,265
65
44

§5,015

§2,130

§21,537

RECAPITULATION OF P R ASES A D SALES O f G V R M N SECURITIES
U CH
N
OEN ET
-- - and B N ER ACCEPTAN
A K S
CES DURING W E ENDING M Y 23P
EK
A
1928
(O O Omitted)
O
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured

Totals

Bankers
Acceptances

0" 5,046
34,872
0

§29,82 6-

Total
§26,583
34,872

021,537
0
43*411
§21,874377-(Net Change
4-day holdover
& other b i l l s )

§51,700377-(Net Change
________ 1-day holdover
. & other b i lls )

§22,251-

§52,077-

(Including Sales Contracts)

Holdings
M y 23, 1928
&

Within
15-days

16-30
davs

31-60
davs

61-90
davs

Securities
i :i lls Purchased

§

9,058
115.682

§ 1,189
64.039

§

§

§124,740

§65,228

§103,120

C 'o v H

T ota ls




0
103*120

6months

91-daysmonths

Over 6
Total n

0
40.282

§2,015
7.439

§218,219 §230,401
0...
330l$«L

§40,282

§9,454

§218,219 §561,043

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

A
uthority

Q .

(

F o r m N o . 1 31
/

'

V

'

f

F

E

D

E

R

A

Uince Correspondence

L

RESERVE

BR
0D
A

M 33. 1938.
a
y

To_ Special Circulation___________________
_

S u b je c t__________________________________ _

From .___ __________________________________ _

_______________________________ ________________

■
to

Letter May 22nd from Mr. Matte son enclosing report
of transactions in Govt, securities and "bankers acceptances,
as reported to Committee for period from May 10 to May 16,
1928, inc.




2 89
—4 5

Reproduced from the Unclassified I Declassified Holdings of the National Archives




DECLASSIFIED
Authority Q. 1 0 ^ 0 (
f-',

Federal
of

R
N

Bank

eserve

ew

York

- PERSONAL

M 22,
ay

1928

Dear Mr. Young:
W are enclosing, for your f ile s , report of trans­
e
actions in Government securities and bankers acceptances as
reported to the Open Market Investment Committee for the
Federal Reserve System for the period from M 10 to M 16,
ay
ay
1928 inclusive, together with data received by the Committee
from the Federal reserve banks.
Very truly yours,

IT. BriaATTESON

Secretary, O em Market
p
Investment Committee

Hono mb le Roy A. Yo un g,
Governor, Federal Reserve Board,
Washington, D. C.

K ncl. (1)

Reproduced from the Unclassified I Declassified Holdings of the National Archives
d e c l a s s if ie d

Authority /-T

0.

0(

'

T'i*.
Ur, M illa r

Hr. P la tt

\



Mr. Jan
Mr.

C m
u

Fe d e r a l R e s e r v e E
of

N

ew

York

my 22, 1928

COKFIDENTIAfL

Dear Mr. Young:
Endorsed is a report of transactions in Govern­
ment securities and bankers acceptances as reported to the
Open l&rket Investment Committee for the Federal Reserve
System for the period from May 10 to M 16, 1928 inclu­
ay
sive, together with data received by the Committee from
the Federal reserve banks.
Very truly yours,

Secretary, Open jykrket
Investment Committee

Honorable Roy A* Young,
Governor, Federal Reserve Board,
Washington, D* G
#
E n cl. (1)

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Q
.

{

CONFIDENTIAL
R P R O O E M R E INVESTM
EOT F PN A KT
ENT C M ITTE W E E D D FAY 16, 1928
O M
E EK NE
Holdings of Earning Assets of Federal Reserve Banks from January 26aI927 to I^tft
(O O Omitted)
O
BILLS
G V R M N SECURITIES
OEN ET
B K R ACCEPTAN
AN E S
CES
TO L
TA
Outright
Sales
Outright
Sales
EAR IN
N G
D
ISCO N
U TED
•1927Purchases
Contracts
Purchases
Contracts,
ASSETS
Jan.
Feb.
Mar*
Apr*
May
June
July
Aug.
Sept*
Oct*
•
>
o

27
23
30
27
25
29
27
31
28
26
30
Dec* 28
-1928Jan* 25
Feb, 29
Mar* 28
Apr* 25
May
9
w
16

0

972,249
985,326
1,040,034
1,005,577
998,510
1,071,130
953,931
1,058, 786
1,167, 632
1,214,759
1,3*80, 515
1,598, 842

$301,851
304,780
311,587
314,332
302, 349
367,140
380,559
469,954
484*054
507,245
543, 757
558, 699

1,173,926
1, 244, 929
1,257,021
1, 380, 659
1, 420, 627
1,418,014

434,817
399,132
379, 448
293,365
263,761
251,250

914
426
41, 515
3,993
19,571
9,261
4,457
2,860
10,298
3, 385
4,078
44, 426

02 69,362
243,934
184,755
194,007
171,907
183,163
157,291
118,189
172,030
243, 249
288, 464
315,152

032,465
36,255
52, 654
47,892
64,263
32,955
12,094
66,939
70,118
57,862
66,276
70,375

?365,157
397,929
456,023
443,553
428,620
477.311
398,130
400,524
430.312
402,398
477,025
609, 209

6,000
8, 470
6,384
l l f ?90
13, 631
11,070

318,863
302,932
288, 652
331,425
343, 702
329,425

28,442
40,827
57,451
34,416
21,402
17,867

385,224
492, 568
524,096
709,073
777,141
807, 412

0

C A G S IN EARNING ASSET H LD G (EXCLUSIVE O SALES CONTRACTS)
HNE
O IN S
F
U IN
EK NE
A
—.... ...................... D R G W E E D D M Y 16, 1928____________
(000 Omitted)
B N E S ACC
A KR
EPTAN
CES
Net
Balance
Change
May 16

G
OVERNM
ENT SECURITIES

Balance
May 16
Boston
0 10,355
New York
39,428
Philadelphia
24,189
Cleveland
36,724
Richmond
4, 490
Atlanta
6,071
Chicago
39,187
Stf Louis
22,988
Minneapolis
12, 413
Kansas City
18,211
Dallas
16, 773
San Francisco
20, 421
N*Y* holdovers
and other b i lls
Totals

0251,250

Net
Change
0

1,2 00 656—
1,1201,7 10 4153922, 39 6*
*>
7916001,055-*
8391,337-

0

34,873
57,410
38,9 60
33, 894
16,741
21,866
45,217
1,461
20,495
14,480
14,828
25,932

0

549+
7, 577735+
1 ,0 1 6 187364+
3,0181 ,2 97 577+
5611,289281+

3.268
012, 511-

1* 838-

0329,425

014,277-

BILLS D
ISCO N
U TED
Net
Balance
Change
May 16
0 2,973+
0 57,562
6, 703+
296,829
7,982+
55,197
8,136**
59,439
3, 226+
42, 251
2, 54946,236
7,109+
112,779
4,188+
35, 322
1,3 45 9, 001
2, 363+
22,006
312*
7,144
7, 445+
63, 646

0807,412

030,2714-

C M E T O C A G S TOK EN ED M Y 16. 1928.
O MN N H N E
D
A
Total earning assets of the System showed a decrease of 02, 613,000 for the
current statement week* The approximate changes, by classification , consisted of an
increase of 030,300,000 in b i l l s discounted, and decreases of 014,300,000 in out­
right purchases of bankers acceptances, $12,500,000 in outright purchases of Govern**
ment securities and ^ S ^ l O O ^ O O Oin investments held under sales contracts* The latter
iten consisted of decreases of $2*550,000 in Government securities and 03,550,000
in bankers acceptances#-




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

0 1(7^ (
■
0

2

Money
Market

Further earmarkings of gold for foreign account and ..-iales
of securities from the System’ s holdings more than o ffset transfers of
commercial funds to th is market from other d is tr ic ts , and consequently
the indebtedness of the New York City members at the Reserve Bank re­
mained large - in the neighborhood of $250,000,000 throughout the
calendar week just closed.
Call money continued to fluctuate between
5 l / 2 and 6 per cent; in the fir s t part of the week there were con­
cessions from the Stock Exchange rate to 5 l / 4 per cent, but later in
the period conditions were firm, with the supply of funds rather lim it­
ed.
Time money moved progressively higher during the week.
O
n
Friday a ll maturities were quoted at 5 l / 4 bid, 5 l / 2 per cent offered,
'as compared with a fla t 5 per cent rate at the close of the preceding
week*
Loans for two to six months* were placed in fa irly large
volume on Friday at 5 1 / 4 , 5 3/8 and S l /2 per cent.
Both the bank demand for and supply of commercial paper re­
mained ligh t during the week.
Prime names were offered and sold at a
range of 4 l /2 - 4 3/4 per cent.

Government
Security
Market

With a continuance of firmer money conditions and the raise
in the rediscount rate by the Federal Reserve Bank of New York the
market for United States Government securities was only moderately ac­
tive with a ll issues selling at lower le v e ls .
Prices of the First
and Third Liberty Loan bonds were 7/32 and 5/32nds, respectively, lower
than the previous week’ s close;
while the fourth Liberty Loan 4 l/4 * s
and Treasury bonds were from 12 to 27/32nds lower.
The short-term
certificates of indebtedness and Treasury Notes, with the exception of
the 3 l / 8 per cent certificates maturing June 15, next, were l/3 2 and
2/32nds lower.
The short-term certificates of indebtedness and Treasury
Notes at current offering prices of dealers yield approximately 4 per
cent for the issues maturing next June and December, 3*90 per cent for
the certificates maturing next March, and 3*70 per cent for the 3 l /2
per cent Treasury Notes maturing in 1930-32.

Bankers
Acceptances




Dealers* offerings of unindorsed bankers’ acceptances until
Friday were at the following rates: 3 5/8 per cent for 30*s , 3 7/8 per
cent for 60* s and 90’ s, and 4 per cent for 120-day b i l l s .
On May 18 the. New York reserve bank increased it s buying rates
l / 4 per cent on most maturities, making the following rates effective:
1 - 4 months 4
per cent
Over 4
"
4 l/4 H
"
following which dealers increased their rates to the following!
30, 60 and 90’ s
120's
180’ s

4 1/ Q %
bid - 4$
asked
4 1 / 8 - 4 l/4/o " - 4 1 / 8 - 4/*
"
4 3/8/0
M - 4 l/4/o
"

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authorityh t Q.
J~

(

3
Boston reports that the supply of b i l l s was very good in its d istric t
during the past period showing very l i t t l e change from the previous week.
The
demand, however, showed a sharp fallin g o f f , dealers* sales aggregating 05,000,000
less than the preceding week.
As a result dealers shipped a good amount of b i l l s
to their offices in other cities#
Offerings to the reserve bank were lig h t.
In
Now York the supply of b i l l s was very good and substantially in excess of the demand
which decreased m aterially.
Dealers* sales consisted mainly of orders for nineties
and longer maturities for foreign account;
local buying was moderate and chiefly
for short b i l l s .
Dealers* portfolios increased moderately.
Philadelphia reports
that their b i l l market showed l i t t l e change for the past week*
Offerings, with
some increase in the amount of new b i l l s coming into the market, continued moderate­
ly heavy with the demand only fair*
Chicago reports that there was l i t t l e i f any
demand in their d istric t for b i l l s at present prices.
"

OPERATIONS for A C U T O UNITED STATES TREASU
CON F
RY

Transactions effected under authority from the Treasury during the cur­
rent r fcalendar w b qIs. (exclusive of purchases of Third Liberty Loan 4 l/4/» bonds
.
undGr
Treasury offering dated May 11, X928) consisted of a sale of §391,000 3 I/8J& certificates of indebtedness due June 15, 1928 for account German Special
Deposit Account, and a purchase of 02,334,000 Fourth Liberty Loan 4 1/4$ bonds for
account General Railroad Contingent Fund, which was a reinvestment of proceeds of a
sale to the Treasury, under their recent offering, of 02,381,050 Third Liberty Loan
4 l /4 b o n d s held for this account*
SYSTEM PU CH
R ASES O B N ER ACCEPTAN
F A K S
CES
Purchases of bankers acceptances during the current statement week and
amount each bank now holds in excess or short of it s pro rata share under the
apportionment plan put into effect for the early part of the year:

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
Minneapolis
Kansas City
Dallas
S«»i Francisco

B ills Acauired
0 61,458,000
212,851,000
81,833,000
89,756,000
44,145,000
36,027,000
119,832,000
19,459,000
35,452,000
42,310,000
36,121,000
74.463.000

B ills Entitled
to Acauire
0 59,751,000
218,063,000
81,493,000
90,026,000
42,680,000
34,718,000
122,160,000
19,459,000
34,719,000
42,965,000
34*717,000
72.956.000

B ills Over
Pro Rata Share
01,707,000
0
340,000
0
1,465,000
1,309,000
0
0
733,000
0
1,404,000
l_507f000

B ills Short
Pro Rata Share
0
0
5,212,000
0
270,000
0
0
2,328,000
0
0
655,000
0
0

Totals

0853,707,000

0853,707,000

08,465,000

$8,465,000




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority Q. 1(7^0 (
f-~;

SYSTEM SPECIAL INVESTM
ENT A C U T - G VERM
CON
O
ONT SECURITIES
During the current statement week sales were made to the market, from
System Account holdings, of 015,550,000 aggregate amount of short-term Govern­
ments*

These sales reduced the amount of to ta l holdings in the account at the

Close of business Wednesday, May 16, 1928 to 0124,958,300*

The participation

by the Federal reserve banks and the classification of issues were as follows J
PARTICIPATION BY FED AL RESERVE B N S
ER
A K
Boston

RECAPITULATION OF H LD G BY MATURITIES
O IN S

New York

9,648,000

Dec*

15,1928 - 3 l/4/o C/I (old}0 47,689,000

33,176,300

0

Dec*

15,1928 - 3 l/4fo

M (new)

23,718,500

Cleveland

9,001,500

March 15,1929 - 3 3/8 J n
o

16,450,000

10,415,000

Philadelphia

March 15,1932 * 3 1 / 2/0 T/to
•

9,600,000

3,337,000

»
Sept* 15,1932 * 3

Atlanta

2,933,000

Dec*

Chicago

f»

5,000 ,Q00

1
1

22,440,800

19,259,500

St* Louis

4,828,000

Kansas City

8,470,000

Dallas

15,1932 - 3 1 / 2/0

6,362,500

Minneapolis

11
—

Richmond

6,778,500

San Francisco
Totals

10. 741.000

0124,958,300

§124,958,300

On Thursday, May 17, further sales were made of Ollj000,000 which reduced
the to tal holdings in the Account to 0113*958,300*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

j ^Q ((7^0{
Ft .

ITEMIZED STA M N OF TRANSACTIONS AFFECTING TH IN
TE E T
E VESTM T A C U T OF ALL
EN
CON
FED AL R
ER
ESERVE B N S F O M Y 10 TQ M Y 16. 1928 INCLUSIVE
A K RM A
A
G V R M N SECURITIES * SYSTEM IN
OEN ET
VESTM T AC&UHT,
EN
Sales
§ 1,200,000
4,128,500
1,120,000
1,296,500
415,000
365,000
2,39 6,000
792,000
600,500
1,055,000
844,000
l f 337.500

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Sjb* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total

§15,550,000

O H R TRANSACTIONS IN G V R M N SECURITIES
T E
OEN ET
New York
Cleveland

Atlanta
Dallas
Totals

Purchases
*§2,939,100
** 4,643,000
35,050
627, 650
35*800
§8,280,600

Issue
Sales
Issue.
Third L/L bonds
*§2,939,100 Third L/Lbonds
Short-tirm GovHs ** 1,170,000 June 15/28 C /l
Third L/L bonds
449,050 Third L/L bonds
Misc* Gov’ t Sec,
654,100 Misc* GovH Sec*
Third h f h bonds
30 T
750 Third l * / h bonds
§5,243,000

* Held over night for resale to Treasury
* * Held temporarily for resale*
B K S ACC
AN ER
EPTAN
CES
(000 Omitted)
Other Holdings
Close May.1.6* 192$
By Allot­ MaturOthetf
Sales
Holdings Purchased ment from itie s & Holdings
B ills .
Contracts
May 9
May 16
O n Mkt*
w
N. YSales
§
19
Boston
§ 5,131
§ 34,324 § 1,944 R § 0
§ 34,873
§ 1,395
570
10,289
New York
64,987
13,527
57,410
5,950 "
0
10,524 A
24
Phila*
38,960
38,225
0
2,629
3,364 R
0
284
0
Cleve*
34,910
33,894
507 "
2,542
4,065
13
Richmond
0
867
16,928
1,789
735 w
16,741
653
At lanta
21,866
0
9€Q
21,502
913
411 "
36
2,429
45,217
Chicago
48,235
6,366
1,568 "
1,780
11
1,461
0
St* Louist
1,297
2,758
0
0
7
Minn*
0
19,918
893
316
20,495
0
9
14,480
0
Kan*City
15,041
1,868
1 , 30T
0
9
18
16,117
14,828
Dallas
428
608 w
2,325
18
0
25.932
San Fran.. 25.651
l f 794
3.120 "
4 t 633
§1,653
§17,867
§326,157
Totals §338,596 §28,731
§10,524 §41,170
•
?
B ills held aver night by New York for distribution to other F* 3 U Bks«* *- * 1*615
Total
MOTS:

R . in d ica te s Retained and A. in d ica te s A llo tte d in the above




- •§3,268
statement*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority/-TQ.

(

MATURITIES A D RATES O , BILLS P R H SE JEEK EN IN M Y 16. 1928
N
N
UC A D
D G A
(000 Omitted)
1*30 days
3 5 /8 -3 7M
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Dallas
San Francisco

0

Totals

61-90 days
3 3/4-4?£

31- £0 days
3 3 /4 -4 1

320
12,168
1,578
0
411
0
267
51
523

0

015,318

398
836
205
0
120
6
863
181
409

0

03,018

Over 90-days
3 3 / 4»

299
2,722
1,581
507
204
405
438
171
2.117

0

927
748
0
0
O
0
0
205
71

01,951

08,444

Total
0

1,944
16,474
3,364
507
735
411
1,568
608
3.120

028,731

RECAPITULATION OF PU CH
R ASES A D SALES O G V R M N SECURITIES
N
F OEN ET
..... A D B N E S ACCEPTAN
N
A KR
CES D R G T E K ENDING M Y 16. 1928
U IN 3 E
A
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured

Totals

Bankers
Acceptances

Total

0 8,280
20 , 791
0

028,731
0
41.170
&12,439l,838-(N et Change
l-day holdover
c other b i l l s )
b

037,011
20,791
41.170
$24,950^
l,838-(N et Change
________ l-day holdover
& other b i ll s )

$12,511-

014,277-

026,788-

( Including Sales Contract)
Holdings
May 16. 1928

Within
15-days

Gov’ t Securities
B ills Purchased

$ 11,070
121*261

0 1,271
63.291

0132,331

064,562

T o ta ls




16-30
davs

31-60
.-flays.

61-90
davs

Over 6
9i-days
6 months months

Total

44.981

? 760
7.176

0249,219 0262,320
0
347T
292

044,981

0 7 ,9 3 6

0249,219 $609,612

0
0110,583

Reproduced from the Unclassified / Declassified Holdings of the National Archives




DECLASSIFIED
Authority

Q. W^?Q j

May 15, 1928.

Dear Mr. Mattesom
X acloaowledgB receipt of and shall “
bring to
tha attention of the members of the Board,
of May 14th^,addressed to Governor Young, enclosing a
reoort"of’ transactions ia Government securities and
hankers acceptances, as reported to your Consnlttee for
the period from May 3 to May 9, 1928, inclusive.
Very truly yours,

Walter L. Eddy,
Secretary,

Mr. W B. Matteson, Secretary,
.
Open Market Investment Committee,
c/o Federal Heserre Bank,
Hew York,
I.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority Q. 10 $ 0 /
f-~,

FOR SPECIAL CIRCUIiATIOH
............
Gov. Your,
Go y . Yours
UvJV.
Mr* F la t t ^ P
Kr. Flattd




K ----------------Kr. r. Hamlin
----Hamlin
Llr. M ille r
Federal R eserve
of

N

ew

dank

York

M 14, 19£8
ay

CONFIDENTIAL

Dear Mr. Young:
Enclosed 1 b a report of transactions in Govern­
ment securities and bankers acceptances as reported to the
Open Maricet Investment Committee for the Pederal Reserve
System fo r the period from May 5

to May 9, 19&8 inclusive,

together with data received by the Committee from the
Federal reserve banks*
Very truly yours,

W B. M T E N
.
A T SO
Secretary, Open Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.
Bine, ( l )

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

j ~Q
Ft ■

{

—
CONFIDENTIAL
R P R O O E M R E INVESTM
EOT F PN AKT
ENT C M ITTE W E EN ED M Y 9, 1928
O M
E EK D
A
Holdings of Earning Assets of Federal Reserve Banks from January 26f 1927_to Date
(000 Omitted)
BILLS
B K S ACC
AN ER
EPTAN
CES
G V R M N SECURITIES
QEN ET
TO L
TA
Sales
Outright
Outright
Sales
EARNING
D
ISCO N
U TED
Contracts
Purchases
Contracts
Purchases
-1927ASSETS■
a
0365,157
Jan* 27 V 972, 249
032,465
$269, 362
$301,851
$
914
Feb. 23
397, 929
36,255
985, 326
243,934
304, 780
42 £
456,023
Mar* 30
52, 654
184, 755
040, 034
311,587
41,515
i.
Apr, 27
443, 553
47, 892
194,007
3,993
314, 332
i , 005, 577
428, 620
M
ay
25
64,263
998, 510
171,907
19,571
302, 349
477, 311
June 29
32,955
183,163
9,261
367,140
i , 071, 130
398,130
July 27
12,094
157, 291
953, 931
380,559
4,45?
400,524
Aug* 31
66,939
058, 786
118,189
469, 9 54
2,860
h
430, 312
Sept® 28
70,118
167, 632
172,030
484, 054
' 10, 298
i,
402,398
Oct* 26
57,862
243, 249
507, 245
3, 385
1> 214, 759
Nov* 30
47 7,025
66,276
288, 464
4, 078
543, 757
1, 380, 515
Dec* 28
609,209
70, 375
315,152
558, 699
44, 42 6
1, 598, 842
-1928385,224
Jan» 25
28, 442
318,863
434, 817
6,000
1, 173, 926 j
492|$6$
Fgb* 29
40,037
399,132
8, 470
302,932
1, 244, 929
524,09 6
Mar* 28
57, 451
379, 448
6# 384
288,652
1. 257, 021
709,073
Apr* 25
34,416
293, 365
331, 425
11,390
1, 380, 659
May
757,054
2
31,003.
332,098
278,581
13, 721
li 413, 447
9
777,141
21, 402
263, 761
13, 631
343, 702
1* 420, 627
C A G S IN EARNING ASSET H LD GS (EXCLUSIVE O SALFS CONTRACTS)
HNE
O IN
F
_____________ D R G W E E D D M Y 9, 1928________________
U IN
EK NE
A
,
.
‘^
qqq omitted)

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
rT Y* holdovers
•
and other b ills
Totals

G V R M N SECURITIES
OEN ET
Net
Balance
Mav 9
Change
11,555
0 1,2853,02640,084
25, 309
1 ,1 9 9 38, 434
9744, 905
4456,463
36841,583
2, 56623, 779
84813,013
64319,266
1,13017, 612
90421, 758
1 ,4 32 -

B N ER ACCEPTAN
A K S
CES
Net
Balance
M 9
ay
Change
0 1,4200 34,324
6,366+
64, 987
3, 594+
38,225
64834, 910
651+
16,928
1,866+
21,502
3,046+
48,235
2,758
2751,031+
19, 918
1,00 615,041
40816,117
1 ,02825, 651
5,10 6

02 63, 761

014, 820-

165-

0343, 702

011, 604+

BILLS D
ISCO N
U TED
Net
Balance
ShangJL
M 9
av
013,704+
0 54, 589
290,12 6
40,871+
7,76247, 215
3, 227+
67, 575
39,025
1, 7343 67—
48, 785
8,524+
105, 670
7,060**
31,134
4,41310, 346
6,07319, 643
3,0 63*
6,832
15,76756, 201

0777,141

020,087+

CMETO C AGST
O M N N H N E 7EEK E D D M Y 9f 1928
NE
A
Total earning assets of the System showed an increase of 07,180,000 for the
current statement week* The approximate changes, by classification, consisted of in­
creases of ^20,100,000 in b i lls discounted and 011,600,000 in outright purchases of
bankers acceptances, and decreases of 014,800,000 in outright purchases of Government
cecurities and $9,700,000 in investments held under sales contracts* The latter
item consisted of decreases of $100,000 in Government securities and $ 9 600,000 in
,
bankers acceptances*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
-f ,

Authority

Q. IQ ^O (

/

/

Moriev
Market

The indebtedness of the Now York City banks at the Reserve
Bank was well over 200 million dollars throughout the calendar week
just ended, and call money, except for a renewal rate of 5 per cent on
Monday, ranged between 5 1/2 and 6 per cent for the period* The close
correspondence between borrowings at the Federal Reserve and call
money rates is indicated by the fact that on one day New York City
banks’ loans reached 272 million dollars, which was the highest level
sijice. 1921, and that shortly afterward, call money was held at 6 per
cent for one whole day* the firs t time that this firmness has prevailed in May of any year since 1921# Som inflow of funds to this
e
market from other districts, probably reflecting in part the attrac­
tiveness of the 6 per cent rate and also a more or less usual return
flow of funds to this center during the second week of the month, was
approximately offset by earmarkings of gold for foreign account#
Time money was again firmly held at b per cent, following a
slight easing tendency in nominal quotations noticeable at the end of
the previous week* The amount of loans placed, chiefly for 3 and 4
months periods was fa irly large*
Sales of commercial, paper were made chiefly to banks outside
of New York City, The turnover of paper, both new acquisitions from
open market borrowers and the sales volume, was only fa ir. The
prevailing rate remained at 4 l/2 per cent with som transactions at
e
4 3/4 per cent*

Government
Security
Market

Liberty
4 l/4*s,
close.
several

With a continuance of firmer money conditions prices of
Loan and Treasury bonds, with the exception of the Third
showed large fractional recessions from the previous week*s
Trading was in fa irly large volume as compared with the past
weeks#

Notwithstanding somewhat of a demand for the short-term cer­
tificates of indebtedness which developed toward the end of the week
for the purpose of replacement of Third 4 1/4*3 sold to the Treasury
under their current offering, dealers* offering prices of the c e rtifi­
cates of indebtedness maturing next December and March were l/32 lower
than at the previous week, s close and their offerings of the 3 l/2/£
Treasury Notes maturing 1930-32 were 3/32nds lower#
Bankers
Dealers* offerings of unindorsed bankers acceptances conAcceptances tinued at the following ratoSJ 3 5/3 per cent for 30#Sf 3 7/8 per
cent for 60*s and 90*s, and 4$ for 120-day bills*




Boston reports that conditions in their district showed little
change from the previous period* The demand for b ills was about the
sam with the supply good although somewhat smaller than the preceding
e
period# In New York the demand for b ills continued heavy and was sub­
stantially in excess of the supply which decreased materially* Dealer^
sales consisted mainly of orders for 90 f s and longer maturities for
foreign account* Local buying was moderate and chiefly of short b ills*
Dealers* portfolios decreased substantially to a low point since last
July* Philadelphia reports that their acceptance market was active*
the demand was moderate with the supply fairly heavy and som increase
e
in offerings from banks* Chicago reports that there was very lit t le
demand locally for b ills except for purpose of creating Federal Reserve
Funds#

R p d c dfro th U c D c s ifie H ld g o th N tio a A h e
e ro u e
m e n la eifie s d o in s f e a n l rc iv s
I s lad
s
DECLASSIFIED
Authority-~ Q.
J,

(

/
OPERATIONS F R A C U T UNITED STATES TR
O CON
EASU Y
R
Transactions effooted under authority from the Treasury during the
current week (exclusive of purchases of Third 4 l/4/£ Liberty Loan bonds under tho
current Treasury offering) consisted of
Purchases of §

46*450 par amount Fourth 4 l / $ f * Liberty Loan bonds for account
General Railroad Contingent Fund

13,175,000 par amount Third 4 X / 4 % Liberty Loan bonds purchased by
New York and other Federal Reserve Banks for
account Surplus Money
013,221,450
Sale of

0 1,000,000 par amount 3 \ / 2 % Treasury Notes due March 15, 1930-32 for
account Government Life Insurance Fund
556,000_par amount 3 l/8 ^ certificates of indebtedness due June 15,
1928 for account German Special Deposit Account
. ______
0

1,556,000
SYSTEM PU CH
R ASES O B K S ACCEPTAN
F AN ER
CES

Purchases of bankers acceptances during the current statement week and
amount each bank now holds in excess or short of its pro rata share under the
apportionment plan put into effect for the early part of the year:
B ills Over
Pro Rata Share

B ills Short
Pro Rata Share

B ills Acquired

B ills Entitled
to Acauire

0 59,514,000

0 57,740,000

20 6,901,000

210,593,000

0

3t 692,000

Philadelphia

78,469,000

78,620,000

0

151,000

Cleveland

06,70 7,000

86,066,000

0

159,000

Richmond

42,543,000

41,243,000

1,300,000

0

Atlanta

34,703,000

32,994,000

1,709,000

,0

Chicago

116,484,000

119,862,000

0

S t, Louis

19,459,000

19,459,000

0

Minneapolis

34,559,000

32,995,000

Kansas City

41,003,000

41*241,000

Dallas

35,005,000

32,993,000

San Francisco
Totals

69,549*000

70.370.000

Boston
New York




0824,976,000

$824*973 ,000*.

01,774,000

1,564,000
0
2,092,000
0
08,439,000

«

o

3,378,000
0
0
238,000
0
821.000
08,439 ,000

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
f

f-', Q W50(
.

"

Authority

4
SYSTEM SPECIE INVESTMENT ACCOUNT » G
OVERNM
ENT SECURITIES
Transactions consummated in the System Account during the current state**
meat week consisted of
Sales to
Foreign cor­
respondents of
Sales in the
market of

. Total Sales

§2, 450,000 - Aggregate amount of certif icates of indebted­
ness maturing next June and December

14*2001000 •* Aggregate amount of certificates of indebted**
ness maturing next June, December and March

$16, 650*000

An exchange was also effected in the account of $2*430,000 Certificates due
next June and December for a like amount of 3 l/2$ Treasury Notes maturing
March 15, 19 30-32»
These transactions resulted in a reduction in the account of
$16, 650,000 which le ft the total holdings at the close of business Wednesday,
May 9, at 0140,508,300* The participation by the Federal reserve banks and the
classification of issues were as follows:
PARTICIPATION EY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco

i \

< 1
>

Totals

$10 , 848, 000
37, 304, 800
10, 121, 500
11, 711, 500
3| 752, 000
3>298, 000
21, 655, 500
154, 500
5, 428, 500
9#533, 000
7, 622, 500
12. 078, 500
508, 300

RECAPITULATION O HOLDINGS DY MATURITIES
F

Dec, 15,
Dec, 15,
Mar, 15,
Mar* 15,
Sept,,15,
Dec. 15,

1928 - 3 1/4JC C/l (old) $55,239,000
3 l/4$ " (new)
30,718,500
1928
3 3/8$ w
17,450,000
1929
3 l/2$ T/N
9, 660,000
1932
3 1/2JC "
5,000,000
1932
3 1/2$ "
22,440,800
1932

0140,508,300

After the close of the statement week additional sales were made, which
w ill cause a further reduction! in the Account of about $15,000^000*




from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
A u t h o r it y

.M
i

0• 10^0(

/

ITEMIZED STATEMENT O TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF ALL
F
_________FEDERAL RESERVE BANKS FRO M
M AY 3 TO M
AY 9T 1928. INCLUSIVE___________
_
GOVERNM
ENT SECURITIES - SYSTEM INVESTMENT ACCOUNT

Totals

Purchases
0 187,000
642, 500
174, 500
201,500
64, 500
57,000
373,000
123,000
93,500
164^ 000
131^500
208.000

Sales
0 1,472,000
5,063, 500
1, 374*000
1,589,500
509,500
447, 500
2,939,000
970,500
736, 500
1,294,000
1,034,500
1. 639. 500

Net Decrease
0 1,285*000
4,421,000
1,199, 500
l t 388,000
445,000
390t 500
2, 566j 000
847, 500
643*000
1,130*000
903*000
l f 431. 50(1

02, 420,000

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas CityDallas
San Francisco

§19,070,000

$16* 650, 000

OTHER TRANSACTIONS IN G
OVERNM
ENT SECURITIES
New York
Cleveland
Atlanta

51, 395, 000
414, 000
422, 000

Totals

02, 231, 000

Issue
Sales
0
0
399t 750 Misc, Gov*t Sec#

Issue
June 15/ 1928 C/l
Third l/ l bonds
Misc* GovH Sec#

$399* 750

*Held temporarily for resale*
BANKERS ACCEPTANCES
(000 Omitted)

Holdings
Ivlav 2
Boston
0 35, 744
New York
58, 621
Phila*
Cleve#
Richmond
Atlanta
Chicago
St. Louis
I.: inn#
Tan* City
Dallas
San Fran#

34, 631
35,558
16,277
19, 636
45,189
3,033
18, 887
16,047
16, 525
26, 679

From Matur­
Regular
Purchased f rom Boston ities £ Holdings
O n Mkt.
w
N,Y.
Mav 9
Sales,
Port*
0 4,703 R. 0
0
0 6,123* 0 34,324
12,113 "
64,987
0
6,747
1,000
19, 712 A*
4,771 R, 0
2,177
38,225
1,000
100 " 4,214
4,962
34,910
0
16,928
1,134 " 1, 705
2,188
0
184 * 1, 333
21,502
1,000
651
4,806
48,235
2,319 M 5, 533
0
2r 758
275
0
0
0
19,918
1,371
0
1,000
1, 340
0
1,914
0
15,041
2,920
638 "
16,117
815
1,861
0
25.651
278'*
4f 133.
3» 827
0

Other Holdings
( Close May
othtr
Sal es
Contracts Bills
0 4,032 0 19
595
15,464
0
0
0
0
1,888
0
0
0
18
0

24
679
13
682
36
11

7
9
9
18

Totals
0326,827 $45,952 019,712 04,000 038,183
021,402 02,102
0338,596
B ills held overnight by New York for distribution to other F*R# Banks - ~ - 3f004
Total - - - $5,106
*Includes ;)4,000,000 sold to other Federal Reserve Banks, representing their
previous overpurchases#

NOTE;

R* in d ica te s Retained and A. in d ica te s A llo t t e d in the above statement*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
AuthorityT Q.
J ',

f

6

MATURITIES AN BATES O DILLS PU CH
D
N
R ASED W E EN ING M Y 9t 1928
EK D
A
(000 Omitted)
1-30 days
3 5/8 - 3 3/4?»
.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Dallas
San Francisco
Totals

0

3,083
22,047
800
0
541
100
926
22
129

027, 648

31-60 days
3 3/4 - 3 7/8?.
0

61-90 days
3 3/4 - 3 7/81

' 904
4, 604
718
0
336
70
632
0
77

07, 341

0

Over 90 days
3 3/4?o

691
4, 450
3,253
100
257
14
761
236
72

0

25
724
0
0
0
0
0
380
0

01,129

09,834

Total
0

4,703
31,825
4, 771
100
1,134
184
2, 319
638
278

045,952

RECAPITULATION O P R H SE A D SALES O G V R M N SECURITIES
F UC A S N
F OEN ET
__A D B N E S ACCEPTAN
N A KR
CES D R G W E EN G M Y 9. 1928_______
U IN
E K DIN
A
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities

Purchased
Sold
Matured

Totals

Holdings
May 9t 1928
Gov*t Securities
B ills Purchased
Totals




0 4,653
19, 473
0

014*820-

Within
15-davs

Bankers
Acceptances

Total

045*952
0

605
19, 473
34, 183
0 3, 0 S l 165050*

34r183
Oil, 769*
165- (Net Change
............ 1-day holdover
and other tjills )
• Oil, 604*

l-day holdover
and other b i l l s )
0

«*
3, 216

(Including Sales Contracts)
91-days
16-30
31-60
61-90
6 months
days
days
days

Over 6
months

Total

0 13, 631
114. 745

0
77f 225

0 1*395
109t 880

0
55r120

01,126
8.134

0261, 240
____ £,___

0277, 392
355*104

0128, 376

077, 225

0111, 275

055,120

09, 260

02 61, 240

0642,496

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority Q.

{

May 9, 1928,

Dear Mr, Mattesont
I
acknowledge reoelpt of and shall ’
bring to
th# attention of the aeaahers of the Board, your letter
of May ?th, addressed to Governor Young, enclosing a
report.of transact Iona in Government securities and
hankers acceptances, as reported to your Oosnmittee t o r
the period from April 26 to Hay 2# 1928, inclusive.
Tery truly yours,

Walter L. Xddy,
Secretary.

Mr. W. B. Matteson, Secretary,
Open Market Investment Committee,
c/o federal Beserve Bank,
Mew York, I. Y.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority f-~, 0 •

(

/X
S
s.
//
,

Fe d e r a l R e s e r v e Ba n k

/h?. N
k.
v o . •% \

v% .

^

>

of N e w York

/
x . /

P E R S 0 UAL

7, 19£8

Dear Governor Youngs
ISe are enclosing, for your file s , a report of trans­
actions in Government securities and bankers acceptances as
reported to the Open Market Investment Committee for the Federal
Reserve System for the period from April £6, ly£8 to May 2, 1&28
inclusive, together nitii. data received by tae Committee from the
Federal reserve banks*

Secretary, Open Market
Investment Committee

Honorable Roy A* Young,
Governor, Federal Reserve Board,
Washington, D. C.




/

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority J ~ Q. 1 0 ^ 0 /
F,

F I i I A S S ~F,AD I

■ FOR SPECIAL CIRCULATION
'
r, IKTTIATj AlsD RETURN TO SE R
C J.

rz
\r

Gov. Young/

?/>, Htiaiin L /

Mxv P la tt

FvY'S o n

u

Mr, M i l l e r s
Mr•Cunningham
F ed era l R eserv e Bank
of

N

Mr. Jamea

ew

Mai

York

CONFIDENTIAL

May 7 , 1928

Dear Governor Young:
Enclosed ie a report o f transactions in Government
securities and bankers acceptances as reported to the Open
M et Investment Cofiiaittee for the Federal Reserve System
arie
for the period from April £6, 1928 to M £, 19£8 inclusive,
ay
together with data received by the Committee from the Federal
reserve banks.

Secretary, Open Market
Investment Goaanittee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
la sh in g to n , D. C-

Encl.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

™
r

DECLASSIFIED

Authority/ ^

I

Q IQ {
.
^O

CONFIDENTIAL
REPORT OP OPEN M
ARKET INVESTMENT COMMITTEE W
EEK ENDED M
AY 2, 1928
Holdings of Earning Assets of Federal Reserve Banks from January 26t 192? to Date.
(000 Omitted)

-1927Jan* 26
Feb • 23
Mar, 30
Apr* 27
May
25
Juno 29
July 27
Aug. 31
Sept. 28
Oct. 26
Nov. 30
Dec. 28
*19 28**
Jan. 25
Feb* 29
Mar. 28
Apr. 25
May
2

TOTAL
EARNING
ASSETS
$ 972,249
985,326
1,040,034
1,005,577
988,510
1,071,130
953,931
■ 1,058,786
'
1,167 , 632
1,214,759
1,380 ,515
1,598,842

BILLS
G VERNM SECURITIES BANKERS ACCEPTANCES
O
ENT
Sales
Outright
Outr ight
Sales
Contracts DISCOUNTED
Purchases
Contracts Purchases
0365,157
032,465
§269 ,362
$301,851
$ 914
397,929
36,255
243,934
426
304,780
456,023
52,654
184,755
41,515
311,587
443,553
47,892
194*007
314,332
3,993
428,620
64,263
171,907
19,571
302,349
477.311
32,955
183,163
9,261
367,140
398,130
12,094
4,457
157,291
380,559
400,524
66,939
118,189
2,860
469,954
430.312
70,118
172,030
484,054
10,298
402,398
57,862
243,249
507,245
3,385
477,025
66,276
543,757
288,464
4,078
609,209
70,375
315,152
558,699
44,426

1,173,926
1,244,929
1,257*021
1,380,659
1,413,447

434,817
399,132
379,448
293,365
278,581

6,000
8,470
6,384
11,390
13,721

318,863
302,932
288,652
331,425
332,098

28,442
40,827
57,451
34,416
31,003

385,224
492,568
524,096
709,073
757,054

CHANG
ES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CO
NTRACTS);
DURING W
EEK ENDED M
AY 2. 1928
_____________________
_
(000 Omitted)

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Yf holdovers
and other b ills
Totals

G VERNM SECURITIES
O
ENT
Balance
Net
..May 2
Change
$ 12,840 $ 9985,32043,110
26,508
93139,408
1,0785,350
3446,831
27644,149
1,99124,627
65813,656
49987720,396
18,516
TOl1,11123,190

BANKERS ACCEPTANCES BILLS DISCOUNTED,
Net
Balance
Net
Balance
Chance
Mav 2
Mav 2 •
Ch
mze.
$ 4320 40,885
$7,649$ 35,744
6,638+
249,255
3,81258,621
10,766+
54,977
1,770+
34,631
64,348
8,099+
3,449+
35,558
4,351+
40,759
16,277
454+
1,422+
49,152
19,636
1,332+
39897,146
45,189
6,101+
3,538+
38,194
6233,033
892+
14,759
18,887
404+
6,268+
25,716
1,259+
16,04?
424+
2,707+
9,895
16,525
6,413+
71,968
488+
26,679
5.271

§278,581

$14,784-

$332,0$8

5f2Q7$ 673+

$757,054

$47,981+

C M EN O CHANG
O M T N
ES W
EEK ENDED M
AY 2. 1928
Total earning assets of the System showed an increase of $32,788,000 for
th© current statement week. The approximate changes, by classification, consisted
of increases of $48,000,000 in b ills discounted and $050,000 in outright purchases
of bankers acceptances, and decreases of $14,800,000 in outright purchases of
Government securities and $1,100,000 in investments held under sales contracts# The
latter item eonsisted of an increase of $2,300,000 in Government securities and a
decrease of $3,400,000 in bankers acceptances*



Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
r

Authority^

Q W^O(
.

2
feBSX.
M&XMA

Call money in New York advanced to 6 per cent over the turn
the nionthj as a sharp advance in the reserve requirements
of the
City banks was accompanied by an increase in their borrowing at the
Reserve Bank to $226,000,000* Following the end of April, there was
som reduction in member bank borrowing and a recession in Stock Ex**
e
change call rates to 5 per centf and even to 4 l/2 per cent for a few
hours on Thursday, O Friday, however, the call rate was firm at 5 per
n
cent, as gold exports of approximately $10,000,000 and cumulative losses
to the market during most of the week through outgoing commercial trans**
f ers and sales of securities by the Reserve Banks had the effect
bringing the indebtedness of the City banks at the Federal Reserve^fcack
-to 0206,000,000,
The tone of the time money market was slightly easier during
the calendar week just closed, but there were no concessions in actual
loans from the 5 per cent rate. The nominal quotations at the end of
the week were off slightly to 4 7/8 bid# 5 per cent offered, as compared
with a fla t rate of 5 per cent in the previous week.
Due chiefly to the bank investment demand from the Middle West*
the commercial paper market remained moderately active durin^ the past
week* Prime names continued to be offered and sold principally at 4 1/2
per cent, although there were a number of other transactions reported at
4 3/4 per cent.

Government
Security
Market

The market f or United States Liberty Loan and Treasury bonds
was quiet with the long term issues in good demand. Prices of Fourth
4 l/4 per cent Liberty Loan bonds and a ll issues of Treasury bonds ad**
vanced fractionally while prices of the First 3 l/2 t s declined 4/32nds
and the First and Third 4 l/ 4 #s remained unchanged.
Trading in short-term Certificates of Indebtedness and Treas**
ury Notes was also in small volume with the shortest term issues in best
demand. Dealers* offering prices for the four outstanding issues of
Certificates of Indebtedness were unchanged from tho previous week*s
close, while their offering prices for the 3 l /2 per cent Treasury Notes
due in 1930/32 were 2/32nds lower*

Bankers
Dealers* offerings of unindorsed bankers acceptances continued
Acceptances at the following rates: 3 5/8 per cent for 30*sf 3 7/8 per cent for 60* s
and 90*s, and 4 per cent for 120**day b ills ,




Boston reports that the demand for b ills in their district
slackened during the past period while the supply showed som increase#
e
Bills moved freely, however, with a ll maturities in fa ir demand, Dealeis
purchased $9,000,000 b ills from acceptors which was the largest amount
for any period during the present year* In New York the demand and
supply improved considerably. Dealers*purchases were heavy and slightly
in cxccss of sales. Investment of foreign owned monies was very good*
Buying for local account was moderate and mainly for short maturities*
Dealers* portfolios increased slightly, Philadelphia reports that their
b ill market was fa irly active. Offerings showed lit t le change from last
week and continued substantial with the demand slightly improved*
Chicago reports that their b ill market was very quiet with few new b ills
offered and the demand limited to short maturities*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Q. 1 0 ^ 0 (

OPERATIONS FOR ACCOUNT-UNITED STATES TREASURY'
Transactions effected under authority from the Treasury during the
current week consisted of purchases of §777,300 par amount Fourth 4 l/4 per cent
Liberty Loan bonds f or account General Railroad Contingent Fund and $11,825,000
Third 4 l/4^ Liberty Loan bonds for account Surplus Money, and a sale of
§500,000 3 l/8 per cent certificates of indebtedness due June 15t 1928 for
account Alien Property Custodian*

SYSTEM PURCHASES OF BANKERS ACCEPTANCES
Purchases of bankers acceptances during the current statement week
and amount each bank now holds in excess or short of its pro rata share under the
apportionment plan put into effect for the early part of the.years

Bills Acauired
Boston
New York

§ 58, 811,000 .
193, 788,000

Bills Entitled
Bills Over
to Acquire
Pro Rata Share
$ 54,523,000.
198, 646,000

0 4,288,000

Bills Short
Pro Rata Share
0
4,858,000

0

Philadelphia

72, 698,000

74,025,.000

Cleveland

82, 393,000

81,811,000

582,000

0

Richmond

39f 704,000

38, 945,00Q

759,000

0

Atlanta

32,186,000

1,030,000

0

Chicago

108, 632,000

31,156,000
112,969,000

0

0

1, 327,000

* 4,337,000

St. Louis

19,459,000

Minneapolis

32,188,000

31,157,000

1,031,000

0

Kansas City

39# 089,000

38,943,000

146,000

0

Dallas

33, 632,000

31,156,000

2, 476,000

0

San Francisco

66r 444.000

66t 234f 000

210r 000

0

$779,024,000

$779,024, 000

01O,522,000

Totals




19,459,000

.0

0

510,522,000.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority 0 • 1(7^0 (
f~.

k

SYSTEM SPECIAL INVESTMENT ACCO
UNT - GOVERNM
ENT SECURITIES
Transactions consummated in the System Account during the current
statement week consisted of
Purchase of

Sales in the
market of
Sales to ~
foreign cor­
respondents of

O il*470>000 - June 15, 1928 - 3 l/8$ certificates of indebtedness
from a foreign correspondent to be resold as the op­
portunity occurred•

17,250,000 - short-term Governments of various issues

7,140,000 - June 15, 1928 - 3 l/8$ certificates of indebtedness

An exchange was also effected in the market of 03,500,000 - 3 \/Z%
Treasury notes due 1930-32 for a like amount of shorter term issues* These trans­
actions resulted in a decrease in the account of 0121920*000 for the statement
week leaving the total holdings at the close of business Wednesday, May 2, 1928
at 0157,158,300. The participation by the Federal reserve banks and the classifi­
cation of issues were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS RECAPITULATION OF HOLDINGS BY MATURITIES
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco

0 12,133,000
41,725,800
11.321.000
13.099.500
4.197.000
3.688.500
24.221.500
8.002.000
6.071.500
10 , 663,000
8.525.500
13.510.000

Totals

0157,158,300

June 15,
Dec*. 15,
Dec* 15,
March 15*
March 15.
Sept* 15.
15,

3 l/Sy£ €/£
1928
0
M
» 3 lM
(old)
1928
II
(new)
1928 m 3 i M
II
1929 - 3 3/Q%
1932 3 l/ zfo t / n
1932 • 3 i / z i H
1932 — 3 l/2/a ft

10,970,000
59,739,000
31,318,500
20 ,450 ,000
7,240,000
5,000 ,000
22,440,800

0157,158,300

Further sales after the close of the statement week le ft the total hold­
ings in the account at the close of the calendar week, Saturday, May 5, at
0145,208,300.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority

f-~ Q 10^0{
t .

ITEMIZED STA M N O TRANSACTIONS AFFECTING T E INVESTM
TE E T F
H
ENT A C U T O ALL
CON F
------------------ FED AL R SE V B K F O APRIL 2 6 T M Y 2. 1928______________
ER
E R E AN S R M
O A
G V R M N SECURITIES - SYSTEM INVESTM
OEN ET
ENT A C U T
CON
Purchases
$ 1,156,000
3,974, 500
1,078, 000
1, 247, 500
400,000
351, 500
2, 307,000
762, 500
578t 500
1, 015, 500
812,000
l t 287T000

Totals

Sales
$ 2,153, 500
7, 404, 500
2, 008, 500
2, 325, 500
744,000
654, 500
4,298,000
1, 420, 500
1,077,000
1,892, 500
1, 513, 500
2. 398.000

Net Decrease
0
997,500
3, 430,000
930,500
1,078,000
344,000
303,000
1,991, 000
658,000
498, 500
877,000
701, 500
. x a i h M

014,970, 000

Boston
N
ew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t, Louis
Minneapolis
Kansas City
Dallas
San Francisco

027,890, 000

$12,920,000

i

O E TRANSACTIONS IN G V R M N SECURITIES
TH R
OEN ET
Sales
Issue
Purchases
Issue
0
0
200 Fourth L/L bonds
* 1,000,000 March 15,1929 C /l
l f O O 000 March 15, 1929 C /l
O t
* 1 ,8 9 0 ,0 0 0 'June 15, 1928 1
1
281t 750 Misc* Gov’ t Sec*
254, 300 Misc* Govft Sec*

Boston
New York
Atlanta
Totals

.*1,281, 750

$3,144* 500

*Were held temporarily for resale#
B K S ACCEPTAN
AN ER
CES
(000 Omitted)

Holdings
Apr,25
Boston
New York

0 43,393
62, 433

Phila.
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minn*
Kan, City
Dallas
San Fran*

32,8 a
32,109
15,823
18, 304
39,088
3, 656
18,483
14, 788
13,818
.....
26,191

Recf d'Bv Allotment
Regular
Erom MaturPurchased from
Boston ities &
O n Mkt.
w
N*Y,
Port. Sales
0 7,510 R.
Ol5*159*
0
0
7, 994 "
11, 806
0
0
23,024 A,
3,366 R* 0
4,096
2, 500
727 « 4,412
3,000
4, 690
8,418
1, 872
0
.1,000
5 « 1,537
1,000
1,210
2,025 " 8,904
4,828
0
623
0
0
0
1,161
1,565
0
0
0
3,111
2, 500
1,870
1,364 *
995
1, 652
2,000
.1. 459 * 1.869
0
...V840

Other Holdings
Close May 3/28
Other
Sales
Holdings
m r z ...._ Contracts Bills
o 35,744 0 5,921 0 19
696
22, 574
58, 621
34, 631
35, 558
16,277
19,636
45,189
3f G33
18, 887
16,047
16,525
26, 679

0
0
0
0
2, 401
0
0
0
50
57

Totals
0320,947 $47, 474 023,024 012,000 053, 594 0326,827 §31,003
Bills held overnight by N#y* for distribution to other F.R* Banks - - - - •

Total - -

~ -

24
756
13
601
36
11
7
9
9
_____ IfiL

02,199

3t072
J5, 271

^■Includes $12,000,000 sold to other Federal Reserve Banks, representing their""
previous overpurchases*
NOTE: R, indicates Retained and A, indicates Allotted in the above statement*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority Q. ( 0 ^ 0 f

MATURinES AND RATES, Q BILLS PURCHASED W
N
EEK ENDING M
AY 2. 192,3
(000 Omitted)
1-30 days
3—
5/8 - if.

31-60 days
U /iM

61-90 days
3 3 /4 * 3 7/8 t

$1,005
3,085
1,381
125
0
106
140
428

$ 2, 678
5,713
1, 478
202
5
836
168
381

§ 333

Philadelphia
Cleveland
Atlanta
Chicago
Pallas
§an Francisco

$ 3,494
21, 343
507
400
0
1,083
672
579

877
0
0
0
0
384
-7L

$ 7, 510
31,018
3,366
727
5
2,025
1, 3 64
....
1.^459

Totals

$28, 078

$6,270

$11, 461

$1, 665

$47, 474

Boston
New York

Over 90 days
3 3/4 - 4 i

Total

RECAPITULATION O PURCHASES AND SALES O GOVERNM
F
F
ENT SECURITIES
___
AND BANKERS ACCEPTANCES DURING W
EEK ENDING MAY 2. 1928
(000 Omtied)

(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured

Totals

$16,253
31,037
0

$14, 784*

Bankers
Acceptances

Total

$47, 474
0
41 f 594
$ 5,880+
5T 207-" (Net Change
1-day holdover
and other b ills )
0673+

$63, 727
31,037
41: 594
5 8,9045 207- (Net Change
t

1-day holdover
and other b i l l s )
014,111-

(Including Sales Contracts)
Holdings
May 2f 1928

Within
15-davs

Gov’ t Securities
Bills Purchased

0

T o ta ls




13,721
110.901

0124, 622

16-30
davs

31-60

davs

0
0 10t 980
80f 308
99*557
080, 308

0110,537

61-90
davs
0
64*146
064,146

91 days- Over 6
6 months months

Total

650 $266,951 $292,302
8,189 , ...Q
........ 363.10,1
$8,839

$266,951

$655,403

Reproduced from the Unclassified I Declassified Holdings of the National Archives




DECLASSIFIED
Authority

Q.

(

m y 1, 1028

Dear Mr* Matteson:
I
acknowledge reeeipt of and shall bring
to the attention of tho members of the Board your
letter of the 50th ultimo, enclosing a report of
trensaotloits in Goveriooeot securities and b&nksrs
acceptances as reported to your eonraittee for the
period from April 19 to April 25, 1928, inclusive*
Tory truly yours,

Walter L* 5ddy,
Secretary

Mr*
B* ■
Tatteson, Secretary,
Open Market Investment Committee,
c/o Federal Reserve Bank,
lew York, N. Y.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
•.f .

Authority

Q. 1 0 ^ 0 (

Fe d e r a l R e s e r v e B a n k
of N e w York

P E R S O N A L

April 3u, 19£8

Dear Governor Young:
W are enclosing, for your file s , a report of trans­
e
actions in Government securities and bankers acceptances as
re trie d to the 0±>en Market Investment CoEULittee for tne Federal
Reserve Systew for the period froni April 19, 1928 to April £5,
19&8 inclusive, together with data received by the GoiMiittee
from the Federal reserve banks.

Secretary, Open Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Q
.

f

FOR SPECIAL CIRCULATION
PLEASE READ
/Gov. Young
v M r* Platt

MPTLY, INITIAL AND RETURN TO ORETARY'S OFFI
HWWSmCI /
Mr. Haalin
Mr. Jamea
v
Lie In t
Ur, Miller ^
__ Cunnir^gh
Mr.
$m
k
v
Fe d e r a l R e s e r v e B a n k
o f

'\

N e w Yo rk

C0NF1DE1TIAL

% ril SO, 1928

Dear Governor Young:
Enclosed is a report of transactions in Government
securities and bankers acceptances as reported to the O^en
Market Investment Committee for the Federal Reserve System for
tiie period from April IS, 19£8 to April £5, 19&8 inclusive,
together with data received oy the Committee from the Federal
reserve tanks.
Vejpjif truly yours,

ft. B* Matteson
Secretary, Open Market
Investment Committee

Honorahle Roy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.

Encl.

4 J LcuM i/^
m
/




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
r

Authority/-T

Q
.

(

CONFIDENTIAL
REPORT OF OPEN M
ARKET INVESTMENT COMMITTEE Y/EEK ENDED APRIL 25, 1928
of Earning Assets of Federal Reserve Banks from January 26. 1927 to, Date
(000 Omitted)

-1927Jan. 26
Feb. 23
Mar. 30
Apr. 27
May
25
June 29
July 27
Aug. 31
Sept. 28
Oct. 26
Nov, 30
Dec. 28
-1928Jan. 25
Feb. 29
Mar • 28
Apr. 18
Apr. 25

TOTAL
EARNING
ASSETS
$ 972,249
985,326
1,040,0 34
1,005,577
988,510
1,071,130
953,931
1,058,786
1,167,632
1,214,759
1,380,515
1,598,842

G VERNM SECURITIES BANKERS ACCEPTANCES BILLS
O
ENT
Sales
Outr ight
Outr ight
Sales
Contracts discounted
Purchases
Contracts Purchases
0365,157.
032,465
0301,851
0269,362
0 914
397,929
36,255
243,934
426
304,780
456,023
52, 654
311,587
184,755
41,515
443,553
47,892
194,007
314,332
3,993
428,620
64,263
171,907
19,571
302,349
477,311
32,955
183,163
9,261
367,140
398,130
157,291
12,094
380,559
4,457
400,524
66,939
118,189
469,954
2,860
430,312
70,118
172,030
10,298
484,054
402,398
57,862
243,249
507,245
3,385
477,025
543,757
66,276
4,078
288,464
609,2Q9
70,375
558,699
315,152
44,426

1,173,926
1,244,929
1,257,021
1,312,049
1,380,659

434,817
399,132
379,448
326,406
293,365

6,000
8,470
6,384
14,280
11,390

318,^63
30 2,9 32
288,652
314, 694
331,425

28,442
40,827
57,451
36,062
34,416

385,224
492,568
524,096
619, 617
709,073

CHANG
ES IN EARNING ASSET HOLDINGS (EXCLUSIVE O SALES CONTRACTS)
F
DURING W
EEK ENDED
APRIL 25. 1928
(000 Omitted)
G VERNM SECURITIES
O
ENT
Balance
Net
April 25
Change
0 13,838
0 2,30848,430
11,046*27,439
2,1532,49240,486
7995,694
7,107
74246,140
4 ,60&*
25,285
1,52214,155
1,1542,02821,273
19,217
1,62124,301
2,570-

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicagd
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
N, Y. holdovers
and other b ills
Totals

BANKERS ACCEPTANCES
Net
Balance
Change
April 25
015,1770 43,393
8,523+
62,433
2,775+
32,861
3,567+
32,109
2,499+
15,823
3,215+
18,304
804+
39,088
8303, 656
3,299+
18,483
14,788
1,422+
15113,818
2,296+
26,191
10.478

0293,365

033,041-

0331,425

BILLS DISCOUNTED
Net
Balance
Change
April 25
015,0790 41,317
.89,588+
M2,617
3,98044,211
1,00256,249
3,049+
36,408
47,730
5,013+
23,246+
97,544
6,78134, 65 6
13,867
22319,448
3,921766+
9,471
1,22065,555

4,489+
016,731+

0709,0 73

089,456+

C M EN ON CHANG
O M T
ES 1EEK ENDED APRIL 25, 1928
Total earning assets of the System showed an increase of $68,610,000 for
the current statement week* The approximate changes, by classification, consisted
of increases of $16,750*000 in outright purchases of bankers acceptances and
$89,450,000 in bills discounted, and decreases of 033,050.000 in outright purchases
of Government securities and 04,550,000 in investments held under sales contracts*
The latter item consisted of decreases of 02,900,000 in Government securities and
$1,650,000 bankers acceptances


Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority jFT

0•

2
/fiey
Market

Reflecting a further rise in the borrowings of the New
York City banks at the Reserve Bank to C
?171* 000, 000, call money on
Monday advanced to 5 per cent after renewing at 4 3/4 per cent* For
the balance of the calendar week, the call r a t e ' w a s moderately firm
at the 5 per cent level as further sales of $46,000,000 of securities
from the System Investment Account had the effect of maintaining the
indebtedness of the New York City banks at a fa ir ly high level# O
n
Friday, however, there was a moderate inflow of commercial funds to
this center from other d istricts, as usually occurs as* the month-end
approaches, and as a result of this gain and an accumulated excess of
average reiservesj the City members were enabled to reduce their
Reserve Bank indebtedness to §133,000,0001 but with borrowings
this level, actual bank reserves were some $20f 000,000 below require­
ments*
Ihe only quotation for time money during the period was 5
per cent* There continued to be a very active demand for fixed date
accommodation, and business included a substantial amount of new loans
as well, as renewals#
The prevailing rate for prime commercial paper was 4 l /2
per cent, and, at this higher level, the bank investment demand for
paper was reported to have improved noticeably#
As is usually the
case, there were also offerings l / 4 per cent above and below the pre**
vailin g rate, but the firm tendency of the market is indicated by an
increase in the transactions at 4 3/4 per cent.

Government
Security
Market

Trading in United States Government Liberty Loan and Treas­
ury bonds, was quiet with prices irregular, some issues selling at the
same prices they sold during the previous week, while other issues
registered either small fractional gains or losses#
Dealers* offer*
ing prices for the short-term certificates of indebtedness and Treasury notes were l/32nd lower than at the previous week*s close, with
exception of the 3 l /8 per cent certificates of indebtedness maturing
June 15, 1928, which issue advanced l/32nd in price*

Bankers
Acceptances

Dealers* offerings of unindorsed bankers acceptances were
at the following rates: 3 5/8 per cent for 30s, 3 7/8 per cent for
60s and 90s, and 4 per cent for 120s, This represents an increase
from the previous week of l /8 per cent for 60 and 120-day b ills #
Boston reports that the b i l l market in their d istrict showed
l i t t l e change over the previous period* The supply of b i lls which
continued large was not sufficient, however, to meet the demand which
was about double the amount of the available supply* Local banks
continued good buyers, while out-of-town buying was negligible*
Offerings to reserve bank were fa ir ly heavy. In New York the supply
and demand was good and about equal. Dealers* sales consisted mainly
of orders from abroad for nineties# Buying for local account was
moderate and narrow#
As a result of heavy shipments of b i lls to
dealers’ branches and correspondents in other d istricts, dealers*
portfolios here decreased considerably#
O April 20 a ll dealers
n
advanced rates l /8 per cent on a ll maturities except th irties and
nineties. Philadelphia reports that their b i ll market was less
active during the past period# Offerings which were mostly from
dealers continued fa ir ly heavy with the demand lig h t. There was som
e
buying of four to six months* b i lls by out-of-town banks* Chicago
reports that there was a fa ir demand in their d istrict during the
past week, especially by corporations with local banks interested
principally in short maturities#




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

0> 1 0 ^ 0 (

3
OPERATIONS FOR ACCOUNT UNITED STATES TREASURY

/
. Transactions effected under authority from the Treasury during the
current week consisted of purchases of $20,000,000 par amount Third 4 1/4 per cent
Liberty Loan bonds in New York and Chicago for account Surplus Money, and a sale
of $100,000 - 3 l/8 per cent certificates of indebtedness due June 15, 1928 for
account German Special Deposit Account*
SYSffiM PURCHASES OF BANKERS ACCEPTANCES
Purchases of bankers acceptances during the currentstatement week and
thfe amount each bank now holds in excess or short of its pro rata share under the
apportionment plan put into effect for the early part of the year*

Boston
New York

Bills Acauired

Bills Entitled
to Acauire

Bills Over
Pro Rata Share

0 63,301,000

-

$ 51,200,000

$12,101,000

Bills short
Pro Rata Share
$

0

185, 794,000

186, 303i 000

0

509,000

Philadelphia

66,832,000

69,278,000

0

2y 446,000

Cleveland

74, 254*000

76,589,000

0

2,335,000

Richmond

3 S 832,000
t

36,571,000

Atlanta

29, 644,000

29, 257# 000

Chicago

97,703,000

105,848,000

0

8,145,000

St, Louis

19, 459,000

19,459,000

0

0

Minneapolis

30, 623,000

29,258,000

1, 365,000

0

Kansas City

34, 719,000

36,569,000

0

1,850,000

Dallas

29, 273,000

29,257,000

San Francisco

63r 116r 000

Totals

$731,550,000
S
B

0

261,000

0

387,000

16,000

0

61f 961T000

1,155,000

0

$731,550,000

$15,285,000

$15,285,000

The overage of the Boston reserve bank is being redistributed to the
other participating banks, except Chicago, who do not wi*h to participate in
such distribution*




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED

A
uthorityf - ~ t Q . ( 0 ^ 0 (

4
SYSTEM SPECIAL IN
VESTM T A C U T - G V R M N SECURITIES
EN C O N
OEN ET
Transactions consummated in the System Account during the current state­
ment week consisted of
Exchange of

Sales of

0 3,000,000 - 3 l/4 ^ certificates due December 15, 1928, Series
TD-2-1928, for a like amount of certificates of the
same maturity Series TD-1928,
This exchange was
effected in order to accommodate a foreign corres­
pondent #
^

fo ta l Sales

4,890,000 - 3 l/8/C June 15, 1928 certificates to foreign correspond
dents
100,000 - 3 l/4f» December 15, 1928 certificates to foreign corres­
pondents
...25,000>000 «. various issues of short-term Governments to the market
029,990,000

There was also purchased from the Treasury, account of German Special
Deposit, $100,000 June 15, 1928 c e rtific a te s.
These transactions resulted in the
account being reduced during the current statement week $29,890,000,leaving the
to tal holdings at the close of business Wednesday, April 25, 1928 at 0170,078,300♦
The participation by the Federal reserve banks and the classification of issues
were as follows:
PARTICIPATION BY FED AL R
ER
ESER
VE B N S
A K
Bo ston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals




0 13,130,500
45,155,800
12.251.500
14.177.500
4.541.000
3,991,500
26.212.500
8.660.000
6.570.000
11.540.000
9.227.000
14.621.000
§170,078,300

RECAPITULATION O H LD G BY M
F O IN S
ATURITIES.
3
June 15, 1928
*
Dec, 15, 1928 P 3
Dec ♦ 15, 1928 • 3
March 15, 1929 m 3
March 15, 1932 m 3
Sept# 15, 1932 m 3
Dec • 15, 1932 m 3

lM
i M
3 /& %
1 /2 %
1 /2 %
1 /2 %

C /l
0 13,140,000
u (old) 61,239,000
i (new) 32,818,500
<
it
19*450,000
13,990,000
T/N
u
5,000,000
M
24,440,800

0170,078,300

Keproauced from the Unclassified / Declassified Holdings of the National Archives

----------------

DECLASSIFIED
.

I

F~, Q. 10$Q /

Authority

ITEMIZED STA M N O TRANSACTIO c AFFECTING T E IN
TE E T F
N
H
VESTM T AC O N O ALL
EN
C UT F
_FE ER
D AL R SE V B K F O APRIL 19 T APRIL 25, 1928
E R E AN S R M
O
____
G V R M N SECURITIES - SYSTEM INVESTM
OEN ET
ENT A C U T
CON
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals

New York
Atlanta
Totals

$

Net Decrease
$ 2,308,000
7,936,000
2,153, 000
2, 491, 500
798, 500
701, 500
4, 60 6, 000
1, 521, 500
1,154,000
2,028,000
1, 621, 500
2 f 570.500

Sales
$ 2, 547, 000
8, 759,000
2,376,000
2, 750, 000
881,000
774, 500
5, 084, 000
1, 679,000
1, 274,000
2, 238, 500
1, 790,000
2f 837t000
$32,990,000

239,000
823,000
223,000
258,500
82, 500
73,000
478,000
157, 500
120,000
210,500
168, 500
2 66r 500

$3,100,000

$29,890,000

O H R TRANSACTIONS IN G V R M N SECURITIES
T E
OEN ET
Issue
Purchases
Sales
* $ 2 ,800, 000
June 15, 1928 C /l
**$5,910,000
7 67. 950
Misc* Gov’ t Sec.
809.500
A6, 719, 500
$3, 567, 950
7

Issue
June 15, 1928
Misc. Gov’ t S

*Held temporarily for resale to foreign account,
**Was held temporarily for resale to Treasury and foreign correspondent*
B K R ACCEPTAN
AN E S
CES
(O O Omitted)
O

Boston
New York
Phila.
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
1 inn *
,1
Kan, City
Dallas
San Fran*

Regular
Holdings Purchased f rora
Apr.18
O n Mkt. N.Y,
w
$ 58,570 $15, 553 R,
0
13, 242 "
53,910
0
16, 639 A.
30,08 6
5, 500 R.
0
28, 542
0
3, 637
398 "
13, 324
1, 622
15,089
1,355
203 *
622 ,f
4,069
38,284
417
4, 486
0
1,225
15,184
0
1, 595
13, 366
0
1,132 "
871
13,9 69
1. 848
23.895
3. 391 t
?

From
Boston
Port.
0
10,000

Other Holdings
Close April 25/28
Matur­
Sales
Other
itie s & Holdings
B ills
Apr*25 Contracts
Sales
$ 7,514
$
19
$30,730* $ 43, 393
661
24,081
62, 433
14, 719
32,861
32,109
15,823
18, 304
39,088
3, 656
18, 483
14, 788
13, 818
26.191

0
0
0
0
2, 221
0
0
0
600
0

24
1,006
13
576
36
11
7
9
9
18

Totals 0308,705 $5 6* 680
$16, 639 $27, 500 $71, 940 $-320,947
$34,416
B ills held overnight by New York f or distribution to other F,R* Banks - - Total -------------------- --- -

$2,389
8.089

0
5, 000
3, 500
3, 000
0
0
4,000
2,000
0
0

2, 725
5,070
3, 021
1, 343
3, 887
1, 247
1, 928
2,173
2,154
...2*943

$10, 478

*Includes $27,500,000 sold to other Federal Reserve Bunks, representing their
previous overpurchases,
•
• ■

NOIE: R. in d ica te s R etain ed and A. in d ica te s A l l o t t M in the above statement.


Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority Q.
f-',

j

6

M
ATURITIES A D RATES O BILLS PU CH
N
N
R ASED W E EN IN APRIL 25. 1928
EK
D G
(000 Omitted)
1-30 days
31-60 days
3 5/8 - 3 3/4f0 3 3/4 - 3 7/8i
Boston
New York
Philadelphia
Richmond
Atlanta
Chicago
Dallas
San Francisco

61-90 days Over 90 days
3 3/4 - 4 % 3 3/4 -

Total

0 2,061
22,087
1,303
100
135
430
142
646

0 8,013
2,615
1,422
172
1
184
560
608

04,183
781
0
0
0
0
218
128

015,553
29,881
5,500
398
203
622
1,132
....2*221

026,904

totals

0 1,296
4, 398
2,775
126
67
8
212
2,009
0lO,891

013,575

05,310

056,680

RECAPITULATION O PU
F
RCH
ASES A D SALES O G V R M N SECURITIES
N
F OEN ET
A D B N E S ACCEPTAN
N
A KR
CES D R G W E ENDING APRIL 25, 1928
U IN
EK
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured

Total?

Bankers
Acceptances

6,667
39,708
0

033,041-

Total

v56,680
0
44,.42£
012,242+
4,489+ (Net Change
1-dav holdover
& other b ills )
016,731+

v63, 347
39,708
44, 438
£20,7994,489+ (Net Change
1-dav holdover
a other b ills )
016,310-

(Including Sales Contracts)
Holdings
April 25r 1928

Within
15-days

16-30
davs

GovH Securities
B ills Purchased

0 11, 390
120.797

0
68.806

vl3 2,1 87

068,806

T o ta ls




31-60
davs

61-90
davs

91-days- Over 6
6 months m
onths

Total

Ol5,030
83.644

0
82r147

0
658
10.447

0277,677
0

0304,755
365,841

098,674

082,147

O i l , 105

0277,677

0670,596

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority 0.
f-~,

April 24, 1928.

Bear Mr. Matteson:
I acknowledge receipt of and shall bring
to tha attention of tha members of the Board, your
latter of April 23rd, addressed to Governor Yonmg,
enclosing a report of transactions in Gorernment
securities and hantosr* acceptances as reported to
your Committee for the period from April 12, 1928
to April 18, 1928 inclusive.
Very truly yours.

Walter 1 . lddy,
*
Secretary.

Mr. W* B. Matteson, Secretary*
Open Marimt Investment Committee,
c/o Tedaral He serve Bank,
Hew York,
Y.




{

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authorityp ', Q. ! 0 $ O (

P E R S ON

AL

April io, 19^8

i 8261 f % ddV

t

‘A ‘v a

Dear Governs r Tfquiib i 1

j-

H are enclosing, for your file s, a copy of report
ib
of transactions in Government securities and bankers accept­
ances i*s reported to the Open Market Investment Committee
for the Federal Reserve System for the period from April i&,
ly&8 to April 18, lfc£8 inclusive, together sfiith data re­
ceived by the Committee from the. FeaercUL reserve banks.

Very tiuiy yours,
v2r.

b. matte aon
Secret&ry, Open Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
f

.

A u t h o r it y Q.

LEASE READ PROJtf

FOR SPECIAL CIRCULATION
A INITIAL AMD RETURN TO SECR'

Hr. S S S S ^ - ^ r . J a m * * /
llivJfiller
Mr.Cunningham
Fe d e r a l R e s e r v e B a n k

ov. Y o u n g /
jlr, Platt'/

Of

RY' S OFFICE
Ur. He Into,

of N e w York

CONFIDENTIAL

A*>rii l '6 ,

1 xkB

Dear Governor Young;
Enclosed is a report of transactions in Government
securities and bakers acceptances u s reported to the C^en M&rket
lnvestuie&t CojMiittee for the Federal Reserve System for tne period
from A^ril i k . ,

l v k , b Ajjril lb , ± v c b inclusive, together ifcitji
to

data received by tue Committee froui ti-e Feaer&i. reserve banks.

s . ij. matteson
Secretary, O^en karket
Investment Qoiwiiittee/"'

Honorable Roy A. Youn6,
G vein or, Ftderai Reserve Board,
o
Washington, D. C*

Lac l.

 i j w f
5<
)


>?

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
r

Authority

Q . Ifl^O (

CONFIDENTIAL
REPORT O O
F PEN MARKET INVESTMENT COMMITTEE W
EEK ENDED APRIL 18, 1928

(000 Omitted)
BILLS
G
OVERNM
ENT SECURITIES
BANKERS ACCEPTANCES
Sales
Outright
Outright
Sales
DISCOUNTED
Purchases
Contracts
Purchases
Contracts

TOTAL j
EARNING
ASSETS

-1927-

Jan.
2 6 j 972,249
Feb.
23
985, 326
Mar*
30 1,040,034
Apr.
27 1,005,577
May
25
988,510
June
29 1,071,130
July
27
953,931
Aug.
31 1,058, 786
Sept. 28 1,167, 632
Oct# 26
1,214,759
Nov.
30 1, 380,515
Pee.
28 1,598,842
-1928Jan.
25 1,X*3,92«
?eb.
29 1,244,929
■ iar.
v
28 l t 257,021
Apr*
11 1,359,280
n
18 1,312,049

0301,851
0 914
304, 780
426
311,587
41,515
314, 332
3,993
302, 349
19,571
367,140
9,261
4,457
380, 559
2,860
469,954
484,054
10,298
3, 385
507, 245
543, 757
4,078
558, 699
44,426
434* «XT
399fX32

379,448
368,8X1
326,406

0269,362
243,934
184, 755
194,007
171,907
183,163
157,291
118,189
173,030
243,249
288,464
315,152

8,000
8,470
6,384
9,205
14, 280

032,465
36,255
52, 654
47,892
64,263
32,955
12,094
66,939
70,118
57,862
66,276
70,375

318,863

n , 441

302,932

40,827
57,451
63,381
36,082

288, 652
298,314
3X4, 694

0365,157
397,929
456,023
443, 553
428, 620
477,311
398,130
400,524
430,312
402,398
477,025
609,209
3S5

492,568
524*096
618, 679
619, 617

CHANG
ES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES
____________ DURING W
EEK ENDED APRIL 18. 1928
________
(000 Omitted)
GOVERNM
ENT SECURITIES
Net
Balance
Apr* 18
Chang©
Boston
$ 3, 6940 16,146
New York
7, 70159, 476
Philadelphia
29,592
3. 445Cleveland
3,98842,978
Richmond
1,2776,493
Atlanta
6727, 849
Chicago
50,746
7,373St. Louis
2,43626,807
Minneapolis
1,84715,309
Kansas City
3,24623, 301
Dallas
2, 59620,838
San Francisco
26,871
4, ISON*Y# holdovers
and other bills
TOTALS

0326, 406

042, 405-

BANKERS ACCEPTANCES t o
p m w ss.
Net
Balance
Balance
Net
Change
Apr* 18
Chance
Apr* 18
0 9,661+
0 58,570
3,94953,910
4, 661+
30,086
96928,542
769+
13, 324
418+
15,089
752-+
38,284
4,486
1.411+
762+
15,184
13,366
900+
968+
13,969
4, 647+
23, 89S
5.989
0314, 694

56,396 010,924+
54,014153,029
7, 44348,191
6,39357, 251
2, 351+
33, 359
8, 897+
42,7X7
3,255+
74,298
15, 634+
41, 437
6, 510+
14,090
4,073+
23, 369
1,533+
8,705
15, 611 +
66, 775

3fr 551016,480+

06X9,617

0

938+

COM
IIENT O CHANG
N
ES TEEK ENDED APRIL 18r 1928
Total earning assets of the System showed a decrease of 047,231,000 for the
current statement week. The approximate changes, by classification, consisted of in**
creases of §1 6,500,000 in outright purchases of bankers acceptances and 0950,000 in
'^ills discounted, and decreases of 042,400,000 in outright purchases of Government
securities and 022,250,000 in investments held under sales contracts* ^he latter
item consisted of a decrease of 027,300,000 in bankers acceptances and an increase
of 05,050,000 Government securities*




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
r- ;

Money
Market

A u t h o r it y

Q W^O(
.

Call money in New York ruled easier during the calendar week
just closed than in the previous one. Henewals were arranged at 5 per
cent on the f i r s t three days and at 4 3/4 per cent on the succeeding two
days; and on a ll but one day the new loan rate dipped to 4 l /2 per cent*
Treasury interest payments and purchases of securities were for the nost
part covered by withdrawals from Government depositaries in this dis­
tr ic t, but a further inflow of commercial funds to this market from
other centers during the f i r s t part of the week offset the effect of
sales of securities by the .Reserve Banks* In the la s t two days of the
period, however, the movement of commercial funds turned outward and in
order to balance their reserve position on Friday, the New York City
banks increased their Reserve Bank borrowings to $142,000,000, a figure
050,000,000 higher than a week ago, but nearly $100,000,000 below the
peak of borrowing during the period of 5 l / 2 and 6 per cent call-money
between April 5 and 12*
The demand for time'loans was unusually large during the week*
Money for maturities of 60 days to 6 months was placed at the on& rate
of 5 per cent*
Conditions in the commercial paper market were firmer both
before and after the advance in the discount rates at Boston and Chicago*
Prime names were offered at a range of 4 l / 4 - 4 l / 2 per cent early in
the week, but by Friday a number of 4 3 /4 per cent offerings had appeared
in the market. The rising tendency of rates was not accompanied by any
material change in the rather moderate supply of and demand for paper*

Government
Security
Market

Trading in United States Government Liberty Loan and Treasury
bonds was le ss active this week than la s t, with prices of a l l issues
showing losses from the previous week's close as follow s: F irst 3 l / 2 s 3/32nds, F irst 4 l /4 s - 17/32nds, Third 4 l /4 s - l/32ndt Fourth 4 l /4 s ll/32nds and Treasury bonds from 7/32 to 16/32nds.
Dealers* offering prices for the short-term certificates of
indebtedness and Treasury notes ivere sligh tly lower than at the previous
week’ s close and at levels to yield about 3*65 per cent for June 3 l /8 s ,
3*79 per cent for December 15, 1928 - 3 l /4 s , 3*76 per cent for March
15, 1929 - 3 3/8s and 3.61 per cent for 1930-32 Treasury notes*

bankers
acceptances

Dealers* offerings of unindorsed bankers
the following rates: 3 5/8 per cent for 30s, 3 3/4
and 3 7/8 per cent for 90 and 120-day b i l l s . This
increase from the previous week of l / 8 per cent on

acceptances were at
per cent for 60s
represents an
a ll maturities*.

;

Boston reports that the supply of b i l l s which was sligh tly
under the preceding week was good and as a whole su fficien t to meGt the
demand during the past period. Dealers* sales aggregated $17,500,000
and local banks continued to be good buyers* About the middle of the
week dealers raised their rates about 1 /8 of 1 per cent, which change
appeared to have l i t t l e effeod in the market. The demand was nixed,
being for both short and long maturities* Offerings to the Reserve
Bank were heavy* In New York the b i l l market was more active this week*
The demand increased to a very good volume and was substantially in ex­
cess of the supply which decreased moderately* Investment of f oreign
owned monies was very good, while buying for local account was lig h t.
As a result of this good demand, together with heavy shipments of b i lls
made to dealers* branches and correspondents in other d istricts, dealer^
portfolios in New York decreased considerably. Following the advance in
the New York Reserve Bank’ s buying rate in bankers acceptances, a ll
dealers advanced their rates l / 8 per cent on a ll maturities* Philadelphia
reports that their acceptances market was fa ir ly active. Offerings from




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority f -T Q- 1 0 ^ 0 (

banks and dealers were again substantial* The demand generally was good with some
improvement noted in out-of-town buying# Chicago reports that there appeared to
b e son© real investment demand for 90-day b i l l s during the past week with the supply
s m a ll.

OPERATIONS FOR A C U T UNITED S T A T E S TR
CON
EASU Y
R
Transactions effected under authority fron the Treasury during the
current week consisted of
Purchases of 013, 000, 000
500,000

„ 20,000,000

par amount Third 4 l /4 ^ Liberty Loan bonds in New
York and Chicago for account Surplus Money
par amount 3 1 / 8 % certificates of indebtedness due
June 15, 1928 in New York market for account Alien
Property Custodian
par amount 3 l/8^t certificates of indebtedness due
June 15, 1928 for account redemption* {These were
purchased from a foreign correspondent and held
temporarily in Investment Account of Federal
Reserve Bank of New York for resale to Treasury)*

333,500*000

Sale of

$

150,000

par amount 3 l / 8 % certificates of indebtedness due
June 15, 1928 in New York market for account Alien
Property Custodian*

Purchases of bankers acceptances during the current statement week and
the amount each bank now holds in excess or short of it s pro rat© share under the
apportionment plan put into effect for the early part of the years
B ills Entitled
B ills Short
B ills Over
Pro Rata Share
Boston
N York
ew
Philadelphia
Cleveland
Richmond •
Atlanta
Chicago ■
St* Louis
Minneapolis
Kansas City
.Dallas
San Francisco
Totals

0 75,248,000
162, 552,000
61,332,000
65, 517,000
31,312,000
25,086,000
93,012,000
19,042,000
25,398,000
31,124,000
27,270,000
57.877.000
$674,870,000

$ 47,190,000
171, 409# 000
63f 550, 000
70, 288,000
33, 707,000

26,966,000
97*255,000
20# 0 62, 000
26, 967* 000
33, 705,000
26,965,000
56f 806f 000
§674, 870,

000

$28,058,000

0
0
0
0
Q
0
0
0
0
305, 000
i flon.ooo

8*857,000
2 f 218,000
4, 671,000
2, 395,000
1# 880,000
4f 243,000
1,020,000
1, 569*000
2, 581,000
0
0

029,434,000

$291434,000

The large overage of the Eos ton bank is being adjusted by their making re
distribution of b i l l s representing overpurchases for the past two weeks* period to
other banks showing shortages.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

™

\

DECLASSIFIED

Authority

0.

{

SYSTEM SPECIAL INVESTMENT ACCOUNT - G VERNM
O
ENT SECURITIES
Transactions consummated in the System Account during tho current state­
ment week consisted of
Exchange with '
Foreign Corres­
pondent of

Exchange in
market of
Total Exchange

$21,000,000 aggregate amount of 3 l/4$ December 15, 1920 certif­
icates and 3 l/z}* Treasury Notes of 1930- 32 for
$ 2 0 , 900,000 .. 3
June 15, 1920 certificates, a ll
at the sam price*
e

$10.000 P
000 aggregate amount of March and December 15* 1932
3 l/2$£ Treasury Notes for a like amount of notes
031*000,000 maturing September 15, 1932*

Sales to
Treasury of
foreign corres­
pondent of
New Ycrk &
Chicago
markets of
Total Sales

§ 2,500,000 3 \/z% Treasury Notes due March 15, 1932;

3,240,000 3 l/o$ certificates due June 15, 1920 and to

42 J300.000 various issues of short-term governments*
047,740,000

These transactions resulted in a reduction in the account during the
current statement week of 047,040,000 which le ft the total holdings at the close of
business Wednesday, April 10, 1920 at §199,960,300. The participation by the
Federal reserve banks and the classification of issues were as follows;
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals

0

15,438,500
53.091.000
14.404.500
16.669.000
5,339,500
4.693.000
30.818.500
10.101.500
7.724.000
13.560.000
10.340.500
17.191*500

0199,968,300

RECAPITULATION OF HOLDINGS BY MATURITIES

June 15, 1920 Dec* 15, 1920 Dec. 15, 1928 Mar. 15, 1929 Mar* 15, 1932 Sept.15, 1932 Dec. 15, 1932 -

3
3
3
3
3
3
3

1M

Q /t

i M

ti
tt

«
z M
iM
i / z % ti
1/ 2 tt
%

17t930,000
(old) 50.339.000
41f 310,500
(nsa?
23.450.000
23.990.000
5f000 ,000
29.940.000

$199,9 60,300

Further sales of approximately $30,000,000 after the close of the state'
ment week w ill reduce the total holdings in the account to about Ol^OOOjOOQ,




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
f

Authority/ ^

Q 10^0/
.

Tmam> statement of transactions affecting the investment account of a ll
-...........

FEDERAL RESERVE BANKS FRO APRIL 12 TO APRIL 18. 1928
M
____________
_
G VERNM
O
ENT SECURITIES - SYSTEM INVESTMENT ACCO
UNT

Totals

Purchases
$ 2;385,500
8,204,000
2,226,000
2,575*500
825,000
725,000
4,762,000
1,573,000
1,194,000
2,09 6,500
1,676,500
2.657.000

Sales
0 6,079,500
20,905,500
5,671,500
6,564,000
2,102,$00
1,047,500
12,135,500
4,009,500
3,041,000
5,342,500
4,271,500
6,769*500

$30,900,000

Boston
New York
Philadelphia
Clove land
Richmond
Atlanta
Chicago
St. Louis
tlinne&polis
Kansas City
Dallas
San Franeisco

$78,740,000

Net Becrease
$ 3,694,000
12,701,500
3,445i^OO
3,988*500
1,277,500
1,122,500
7,373,500
2,436,500
1,847,000
3,246,000
2,595,000
4A
U2J§00
$47,840,000

OTHER TRANSACTIONS IN 'GOVERNM
ENT SECURITIES
Salos
' Issue
Purchases
Issue
Nov/ York
**§15,550,000 Juno 15, 1928 C/l
*§20,530,000 Juno 15, 1920 C/l
Atlanta
508,300 Misc. Gov*t Sec*
958,950 Misc. GovH Sec.
San Franciseo
_________0
17.450 Fourth L/L bonds
Totals

$21*508,950

$16,075,750

* Heid temporarily for resale.
** $15,000,000 of this amount sold to Treasury and balance to foreign correspondent.
BANKERS ACCEPTANCES
(000 Onitted)

Boston
Now York
Phila*
Cleve.
Richmond
Atlanta
Chicago
St. Louis
r.Iinn.
Kan. City
Dallas
San Fran.
Totals

Other Holdings
Close At>ril 18. 1928
Regular Matur­
Other
Holdings Sales
Holdings Purchased
from
ities &
Apr. 11
Bills
Own Mkt.
Aw; 18 Contracts
N. Y.
..Sales.
$ 19
$ 48,909 $13,632 R 0 0
$ 58,570
$ 3,971
$ 8,795
1,392
57,059
53,92.0
13,899
9,950 "
0
24,214
20,690 A
24
0
0
25 ,425
7,770 R
30,086
3,109
1,136
0
4,346
500 "
28,542
29,511
5,615
13
13,324
0
122 "
2,166
1,519
12,555
503
14,671
60 •
0
15 *089
l f 773
1,415
36
1,617
37,532
4,098 "
5,030
1,604
30*284
4,486
0
U
3,075
0
2,155
744
7
0
14,422
1*776
0
15,184
1,014
0.
9
13,366
12,466
2,178
1,278
0.
9
600
1,041 *
13,969
1,838
13,001
1,765
18
836
19.248
4.830 *
2.847 ...3*030.
23.895
03.177
$36,062
$20,690 $43,462
$288,674 $63,493
$308,705

Bills held ovor night by New York for distribution to other F. R• Banks - £.812
Total - ---------- 05,989

NOTE:

R . in d ica te s Retained and A. indicdftes a llo t t e d in the above statenent




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Q. IQ ^O (

6
MATURITIES AND RATES ON BILLS PURCHASED M ENDING APRIL 18. 1928
. (000 Omitted) . .
•
1-30 days
31-60 days
61-90 days
Over 90-days
3 1/2 to 3 5/8# 3 1/2 to 3 3/4# 3 5/8 to 3 7/8# 3 3/4#
Total
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Dallas
San Francisco

013,684

0
0
0
119
133

013,632
30 , 640
7,770
500
122
60
4,098
1,041
4r830

03,096

010,072
7,044
3,244
500
0
120
59
1,200
373

0 1,728
4,051
2,691
0
2
O
2,944
340
1,928

022,056

Totals

0 1,244
17,289
1,835
0
O
*1
754
209
724

063,493

0 588
2,256
0

024,657

RECAPITULATION OF PURCHASES AND SALES OF GOVERNM
ENT SECURITIES
AND BANKERS ACCEPTANCES DURING \7EEK ENDING APRIL 18. 1920
(000 Omitted) .............
taixi ........
(Excluding Sales Contracts)
Government
Securities
052,410
94,816
0

Bft&fcers
Acceptances
$63,493
0
020,031^
3,551- (Net Change
___________1-day holdover
& other b ills )

Purchased
Sold
Matured

Totals

Total
0115,003
94,816
43.462
0 22,375*
3,551** (Net Change
......
1-day holdover
« other b ills )

$16,480+

0 25,926-

43^462

042,406-

(Including Sales Contracts)
Holdings
April 18. 1920

Within
15-days

GovH Securities
Bills Purchased

0 14,280
128.163

0 ©
60.536

022,930
68.287

0
86.713

0142,443

0^0>536

091,217

086,713

Totals




16*30
davs

31-60
days

61-90
days

91-days Over 6
6 months nonths
664 0 302,822 0 340 , 686
7.057
0
350.756

07,711

0302^12 $691,442

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authorityf-~c Q ■

f

April 17# 1928.

Bear Mr, Matteson:
I
acknowledge receipt of aad shall “
bring
to the attention of the members of the Board, yorsr
letter of April IStfe* addressed to Governor Toting, en­
closing a rei»fi o F t r ^
la Government secur­
ities aad banker* acceptances, as reported to your
Coraaittee for the period from April 5, 1928 to April
11, 192&, inclusive.
Very truly yours.

J. 0. BMll,
Assistant Secretary.

Mr. W. B. Matteson* Seoretary,
Open Market Investment Committee,
c/o federal Reserve Bank,
Hew Toifc* H. T.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

'•

n

0 . I0& O (

Dear Governor Young:
W are enclosing, for your file s , * report of trans­
e
actions in Government securities and bankers acceptances as
reported to the Open Market Investment Committee for the Federal
Reserve System for the period from April 5, 1*£8 to A^ril 11,
19£8 inclusive, together »ith data received by the Committee
from the Feaeral reserve banks.

Investsent Committee

Honorable Roy A. Young,
Governor, Federal Reserve Bo^rd,
Washington, D. C.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Gov*' Y o u n g ^
Kr» Plattv/

F. Q 1050 /
~ .

Kr. HamiinX^Mr. James /
Mr. Molntos
l r Killer (L-—
£.
Mr.Cuunfngham
&
’ ederal R eserve Ba n k
F
o f

N e w Yo r k

April 16, 19£8

CONFIDENTIAL

Dear Governor Young:
Enclosed is a. report of transactions in Government
securities t*nd b&nkers acceptances as reported to the Open
Market Investment Coiuffiittee for the Federal preserve System
for tne period from April 5, 1926 to April 11, 18£8 inclusive,
together with data, received by the Committee from the Federal
reserve banks.
Very truly yours,

Secretary, Open Market

Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
iasain^ton, D. 0.

Hiicl




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

f-', Q lO {
. ^O

f

Authority

CONFIMTTAL
R P R O O E M R E INVESTM
EOT F PN A KT
ENT C M ITTE \WE>K E D D APRIL I I , 1929
O M
E
NE
of Earning Assets of Federal i eecrve Banks f ron January 26, 1927 to Date
(000 Oratied)

•1927Jan, 26
Feb. 23
Mar* 30
Apr* 27
M
ay
25
June 29
July 27
Aug* 31
Sept, 28
Oct* 26
Nov. 30
Dec* 28
JSn*
Feb ,
Mar*
Apr*
I
T

25
29
28
4
11

TO L
TA
EAR IN
N G
■ ASSETS
$ 972,249
985, 325
1)040,034
1,005, 577
988,510
1,071,130
953,931
1, Q 786
l
58}
1,167, 632
1,214,759
1, 380,515
1, 598, 842

Outright
Purchases
$301,851
304, 780
311, 587
314, 332
302, 349
367,140
380, 559
469,954
484,054
507, 245
543, 757
558, 699

1,173, 926
1, 244, 929
1,257,021
1,329,334
1, 359,280

434, 817
399,132
379, 448
377,152
368, 811

governj*
ent

SECURITIES
Sales
Contracts
$
914
426
41, 515
3,993
19,571
9t 261
4,457
2,860
10,298
3, 385
4,078
44, 426
6,000
8, 470
6,384
6,080
9,205

B K R ACCEPTAN
AN E S
CES
Sales
Outright
Contracts
Purchases
$32, 465
$269, 362
36, 255
243,934
52, 654
184, 755
47,892
194, 007
64,263
171, 907
32, 955
183,163
12,094
157, 291
66,939
118,189
70,118
172,030
57,862
243, 249
66,276
288, 464
70, 375
315,152
318,863
302,932
288, 652
289,973
298, 214

28, 442
40,827
57, 451
53, 663
63, 381

BILLS
DISCO
UNTED
$365,157
397, 929
456,023
443, 553
428, 620
477, 311
398,130
400, 524
430,312
402,398
477,025
609, 209
385, 224
492, 568
524,096
601, 476
618, 679

C A G S IN EARNING ASSET H
HNE
OLDIN S (EXCLUSIVE O SALES CONTRACTS)
G
F
__________________D R G W E E D D APRIL 11. 1928_______________ __
U IN
EK NE
(000 Omitted)
BILLS DISCOUNTED
G V R M N SECURITIES
OEN ET
B N ER ACCEPTAN
A K S
CES
Balance
Net
Balance
Net
Net
Balance
Change
April p.
April 11
Change
Change
April 11
Boston
$ 5,919+
$ 45,472
$ 8, 855+
$ 19, 840
$ 635$ 48,909
New York
184+
207,043
67,177
1, 474+
2, 31557, 859
Philadelphia
10,318+
55, 634
33, 037
29 6+
25, 425
593Cleveland
13,102+
46,9 66
63, 644
6861, 61329, 511
Richmond
2f 245+
7, 770
22031,008
12,555
1, 801Atlanta
4, 765+
8, 521
18186133, 920
14, 671
18,075Chicago
58,119
71,043
1 ,2 6 8 37,532
4, 585S t. Louis
24525,803
29, 243
1, 3863,075
4191, 238+
Minneapolis
7, 580
17,156
318367+
14* 422
Kansas City
19,296
26, 547
1,773+
51755812, 466
Itellas
7,172
2 , 229+
835+
23, 434
44113, 001
San Francise#
6, 25051,164
31, 001
70819, 248
739+
N.Y. holdovers
and other b i lls
6f 448+
9r 540
Totals

$368, 811

$ 8 ,342-

$298; 214

$8,241+

$618, 679

$17, 203+

C M E T O C A G S W E EN ED APRIL l l r 1928
O MN N H N E
EK D
Total earning assets o f the System showed an increase of $29,946,000 for the
current statement week* The approximate changes* by classification , consisted of a
decrease of $8, 350, O O in outright purchases of Government securities, and increases
O
of 3^*250,000 in outright purchases of bankers acceptances, )17t 200, 000 in b i l l s dis­
counted and $12,850,000 in investments held under sales contracts. The la tte r item
consisted of increases of $9,700,000 bankers acceptances and $3,150,000 Government
securities^




R p d c dfro th U cID c s ifie H ld g o th N tio a A h e
e ro u e
m e n la eifie s d o in s f e a n l rc iv s
s lad
s
P
^ "

Money
Market

DECLASSIFIED

Authority jFT 0■ 1 0 ^ 0 (

2
Ihe New York City banks showed a d e ficit of )20, 000, 000 in- e.o*
tual rserves on Monday, April 9, and as a consequence their discounts at
the Reserve Bank rose 050, 000,000 further to 1)242,000,000, the highest
level since 1923# This large amount of borrowing was accompanied by
further firmness in call money, which rose to 6 per cent on Tuesday, the
la s t day of the reserve period* Renewals on W e d n e s d a y were also arranged
at 6 per cent, the highest renewal rate since December 31, 1926, but later
in the week the call rate eased to 5 and 4 l / 2 per cent, “
The cumulative
effect of the retun^n-currency from holiday circulation, and transfers of
commercial funds to 4his market from other d istricts, which was in part
a result of reduced currency demands in other lo c a litie s , was to permit
some retirement of Reserve Bank credit. By Friday, the City banks had re*duced their loans to 090,000,000 and s t i l l were able to maintain an excess
of average reserves for the completed reserve period, but the reduction
placed actual reserves far below requirements, so that renewed borrowing
at -the Reserve Bank and moderately firm money conditions seem probable.

Conditions in the time money market became even firmer during
the past week, and the demand for fixed date accommodation was very large*
At the end of the period, quotations for a ll maturities had reached 4 7/8
bid, offered at 5 per cent, and the bulk of the trading was at the 5 per
cent level, the highest since October 1926*
Commercial paper dealers reported only a fa ir amount of business
this week, both as regards sales to the banks and acquisitions of new paper*
The prevailing rate for prime names remained 4 l / 4 per cent, and even some
sales were made in the Middle West at 4 per cent, but a sligh tly firmer
undertone in the market was indicated by an increased volume of business
at 4 l /2 per cent*
Government
Security
Market

Trading in United States Government Liberty Loan and Treasury
bonds was moderately heavy* With the continuance of firmer money condi­
tions however, priccs were generally lower, bath the Libertys and Treasury
bonds showing small fractional losses from the previous week*s close* The
market for short-tem certificates of indebtedness and Treasury notes was
very weak* Dealers’ offering prices showed losses of l/32nd for 3 l /S per
cent certificates maturing in June and 4/32nds for the other short-term
certificates and notes.

Bankers
________
Dealers’ offerings of unindorsed bankers acceptances were at the
■acceptances following, rates: 3 l / 2 per cent for 30s, 3 5/S per cent for 60s, and
3 3/4 per cent for 90 and 120-day b i l l s .
Boston reports that the demand for b i l l s in i t s market was ex­
cellent during the past period* Although the local supply was fa ir ly
large, i t was necessary however for dealers to receive good quantities of
b i ll s from their offices in other c itie s to meet the local demand*
Dealers’ sales to local banks aggregated ov6r )1 6,000,000 * "The best
demand was for 90-day b i l l s . Offerings to Reserve Bank were heavy from
both dealers and member banks, purchases aggregating 021,500,000* In
New York the b i l l market was less active during the past period* The
supply of b i l l s f e l l off substantially and the demand decreased consider­
ably, Dealers’ purchases were very m
uch in excess of sales which con­
sisted mainly of moderate orders for foreign account. Local buying was
very lig h t. As a result of these conditions dealers’ portf olios would
ordinarily have shown a heavy increase, but as heavy shipments of b i lls
were made to dealers' branches and correspondents in other d istricts, the
net increase was only moderate. The two dealers who lowered their rates
l /8 per cent on 90s the previous week advanced them l / 8 per cent in line
with the rest of the dealers at the close of this week* Philadelphia
reports that their b i l l market \vas without any new feature. Offerings



R p d c dfro th U cID c s ifie H ld g o th N tio a A h e _
e ro u e
m e n la eifie s d o in s f e a n l rc iv s
s lad
s

•
DECLASSIFIED

Authority f - ' , Q ■

~ J

f

which consisted principally of 90s were moderately heavy with the demand light*
Chicago reports that despite the 'firming of rates the b i l l market in it s d istrict
continued very dull*
OPERATIONS FO AC O N UNITED STATES.TREASURY
R C UT
Transactions effected under authority from the Treasury during the current
week consisted of purchases in the New York and Chicago markets of 020,000,000 par
amount Third 4 l / 4 per cent Liberty Loan bonds for account Surplus Money, and
32,500,000 - 3 1 / 2 % Treasury Notes due March 15, 1932 for account Government Life
Insurance Fund*
SYSTEM SPECIAL INVESTM T A C U T - G V R I^E T SECURITIES
EN C O N
QEN M
Transactions in the System Account during the current statement week con­
sisted of
Exchanges in
the market of

Exchange with
foreign corres*
pondent Of.
Total Exchange

06,000,000 - 3 l / 2 % Treasury notes maturing 1930-32 for a
like amount of certificates of indebtedness
maturing next June and March

2 .0Q0»000 - 3 l / & % certificates maturing June 15, 1928
for & like amount of Third 4 l/4/£ Liberty
OS, 000,000
Loan bonds

Sales to
Treasury
New York «
Chicago
Markets of

02,000,000 - Third 4 l / 4 % Liberty Loan bonds

6, 000,000

230.000
Total Sales

3 l / 2 % Treasury notes due 1930-32
3 l / B % certificates maturing June 15, 1928

08,230,000

These transactions resulted in a reduction in the account of 0^230,000
rhich l e f t the total holdings at the close of the statement week ending April 11,
1928 at 0^47,808,300*
The participation by the Federal reserve banks and the
v.assif ication of issues were as follow s:
■RTICIPATION BY FED AL R
ER
ESER B N S
VE A K
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Jallae
oan Francisco

$ 19, 132,500
65, 793,300
17, 850.000
20, 657, 500
6, 617.000
OCC
'!
oft
5, 815, 500
38, 192.000
12, 618.000
, 571, 0 0
^ ,0 (
,814,000
13 , 4 4 3 , 5 0 0
21 . 3 0 4 . 0 0 0

Totals

0247,808,300

RECAPITULATION O H LDIN
F O
GS BY M
ATURITIES
June
Dec,
Dec.
Mar.
Mar*
Dec.

15, 1928 - 3
15, 1928 - 3
15, 1928 - 3
1 5 , 1929 - 3
15, 1932 - 3
1 5 , 1932 - 3

l / Q % c /i 0 1,770,000-—
65.839.000 (old)
"
62,818,500 (new)
1/ 4% "
3 /8 %
"
26.450.000
1 / 2 % T/N
44,990, 000
1/2% "
45,940,800
1 / 4#

0247, 808, 300

Since the end of the statement week- additional sales from the account have
been made and contracted for totaling 0^0,270,000, further reducing the holdings in
the account to J187,538,300 (details of which w ill be contained in next week's
report)*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
A u t h o r it y Q ■ 1 0 ^ 0 (

4

Purchases of bankers acceptances during the current statement week and
the amount each bank now holds in excess or short of its pro rata share under the
apportionment plan put into effect for the early part of the year*

Bills Acauired
Boston
New York

Bills Entitled
to Acauire

Bills Over
Pro Rata Share

k 61, 61 $,000
t

42,746,000

*$18,870,000

152,602,000

1S5,536,000

Bills Short
Pro Rata Share
o

o
2,934,000

0

Philadelphia

53,562*000

57,836,000

0

4,274,000

Cleveland

60,771,000

63,939,000

0

3,160,000

Richmond

28,024,000

0

1,508,000

Atlanta

23 , as3,000

24,426,000

0

1,173,000

Chicago

86,430,000

88,366,000

0

1,936,000

St. Louis

23,622,000

0

805,000

Minneapolis

16,887,000

16,887,000

Kansas City

28*946,000

30,530,000

Dallas
San Francisco
Totals

24,464,000
50*200*000
0611,377,000

30,532,000

24,427,000

24,425,000
51.727.000
&611,377,000

0
0

0
1,584,000

39,000
0
018,909,000

0
1.527.000
$18#909,000

This overage w ill be adjusted with the Federal Reserve Bank of Boston within the
ext few days.




Reproduced from the Unclassified I Declassified Holdings of the National Archives
d e c l a s s if ie d

f

A
uthority

Q . 1 0 ^ 0 (

ITEM
IZED STA M N OF TRANSACTIONS AFFECTING'THE IN
TE E T
VESTLffiN A C U T OF ALL
T CON
m s, si . r ,- j, ^si,ss.
s
.r r
. r, X
. *ir, i..,

Boston
H York
ew
Philadelphia
Cleveland
Richmond
At i. ant
a
Chicago
5t* Louis
Minne apolis
Kansas City
Dallas
San Francisco
Totals

New York
Atlanta
Dallas
Totals

G V R Iv E T SECURITIES - SYSTEM INVESTM T A C U T
QE N S N
CON
EN
Net Decrease
Sales
Purchases
$ 618,000
>
'4 635,500
£ 1,253,500
2,185,000
2,124,000
4,309,000
592,500
576,000
1,168,500
686,000 .
666,500
1,352, 500
220,000
213,500
433,500
193,500
183,000
381.500
l,2 6 8 y C
OO
1,232,500
2,500,500
419,000
40 7,500
826,500
318,000
309,500
627, 500
55 7,500
1,100,000
542,500
447,000
434,000
•881,000
708.000
688,000
1. 39 6,000
$8,000,000

$16,230,000

^8,230,000

O E TRANSACTIONS IN G V R M N SECURITIES
TH R
OEN ET
Purchases
Sales
Issue
Issue
900.000 Third l * / h toond#
770.000 Third L/L "bonds
750.000 June 15, 1928 C / l
750.000 June 15, 1928 C /l
547.000 Misc. Gov’ t Sec*
559,800 Misc* GovH Sec*
0
6,000 Fourth L/L bonds
^2,085,800

5*2,197,000

* Temporary purchase resold to Treasury*

BAN ER ACCEPTAN
K S
CES
(000 Omitted)
Rec*d by Allotment
Other Holdings
Regular
From
MaturClose Apr»Il/28
Holdings Purchased
from
Salew Other
Boston ities &
Holdings
Contracts Bills
Own Mkt.
Apr. .4
Port.
Sales
Aw .11
N.Y.
Bo ston
0 40,054 $21,547 R.
0
0
y '12; 69 2* ^ 48,969 £ 4, 619 3 19
53,567
New York
1,074
56, 385 11,819 "
57,859
0
3,000 13,345
7,225 A.
24
0
Phi la*
2S,129
3,853 R*
0
25,425
0
3,557
1,300
Cleve*
0
31,124
1,000
29,511
184
2,091
4,888
13
0
14,356
Richmond
977
100 M
0
2,878
12,555
366
0
Atlanta
0
14,671
107 "
1,768
15,532
800
36
1,394
Chicago
42,il7
37,532
460
0
7,086
2,041 "
11
0
St* Louie
1,386
3,075
4,461
0
0
0
7
0
Minn*
14, 422
0
1,000
1,124
491
14,055
0
-9
Kan* City
12,466
2,002
12,983
0
500
985
212
. .9
13,001
12,176
1,377 "
1,636
Dallas
500
584
18
3.589„
19»248
San Fran.
837
18.509
3f 802
1.704 "
2 t000
^288,674 &63,381 02,886
Totals
0286,881 $49,957
&8,000 056,164
^7,225
B ills hold over night by New York for distribution to other FJl.Banks
- ;i6y654.
Total
89 >540
* Ineludes 08,000,000 sold to other Federal reserve banksNOTE:

R* in d ica t os Ret ained and A* in d ica te s A llo tte d in the above statement.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

j~; Q
f" ■

(

Authority

MATURITIES AND H
ATES O BILLS PURCHASED 7JE
N
EK ENDING APRIL 11. 1928

1-30 days
31-60 days
61-90 days
Over 90-days
3 l/Z to 3 5/8^ 3 3/8 - 3 3/4# 3 3/8 - 3 3/4# 3 3/4 - 3 7/8#
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
I&llas
San Francisco
^Totals

0

Total

20
361
148

014, 817
7,867
3,402
0
30
7
1,089
394
l f 391

0250
229
0
0
0
0
0
5
, 74

$21, 547
19, 044
3t 853
134
100
107
2, 041
1, 377
u ,70.*.

07, 544

4,102
6,988
2
13
13
100
932
■ 617
91

028,997

0558

049, 957

2,378
3,960
449
171
57

0

0

012,858

RECAPITULATION O PURCHASES AND SALES O G
F
F OVERNM
ENT SECURITIES
__
_ AND BANKERS ACCEPTANCES DURING W
EEK ENDING APRIL 11. 1928
(OOOOmitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured

Tptals

Bankers
Acceptances
049,957
0
JfiJLS&
0 1,793+
6, 448+ (Net Change
1-dav holdover
and other b ills )
0 8, 241♦

$10,087
18, 429
0

0

Total

8, 342-

060, 044
18, 429
48.164
0 6, 5496# 448*'
1-day holdover
and other b ills )
0

101-

(Including Sales Contracts)
16-30
davs

Holdings
April 11. 1928

Within
15-da vs

Gov't Securities
Bills Purchased

9,. 205
0
163f 852 . 61 176
t

0
51* 770
58.903 73f 9 68

0173,057 $61,176

058, 903 075, 738

T ota ls




31-60
davs

61-90
davs

91-days
Over 6
6 months months

Total

I 655 0366, 386 $378,016
3r 696
0
361, 595
$4, 351

0366, 386

0739, 611

R e p ro d u c e d fro m th e U n c la s s ifie d

I D e c la s s ifie d

H o ld in g s o f th e 'N a tio n a l A rc h iv e s

~ ~

DECLASSIFIED

Authority £ L Q. I < 7 $ 0 (

L ___________
_____________

April 10, 1928

:w r Mr* M»tb#ao*n
I
aoteowladge receipt of and ah&il bring to
the attention of the members of the Board your letter
Of
addressed to Governor
o l o l l i i ' report o f traneaotione .in Government seourities and bankeri acceptance® at reported to 'your oommittee for the period from liirah 29, 1923 % April 4t
q
1923 inoluelve*
Very truly youra,

Waltar W Eddyt
Seoretary

Mr- w* B Matteaon, S^oratary,
#
Open larisirfe
oossaifctee,
o/o Federal Reaerve Bank,
lew York. 8* Y*




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Au or tyf~ t 0 . 1 0 5 0 (
th i

^ ?

Fe d e r a l R e s e r v e B a n k
o f

N e w Yo rk

P E R S O N A L

Dear Governor Young:
W are enclosing, for your file s , a report of transac­
e
tions in Government securities and bankers acceptances as report­
ed to the 0±>en Market Investment Committee for tne Federal Reserve
System for the period from March Z9, 1

to April 4, ly£8 inclu­

sive, together toith data received by the Coii*mittee from tae Federal
reserve banks*
Vexy truly yours,

if,. B. Matteson
Secretary, Open Market
Investment Committee

Honorable Roy A, Young,
Governor, F edertl Reserve Board,
Washington, D. C.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Q
.

f

FOR SPECIAL CIRCULATION
PLEASE

) PROMPTLY, INITIAL AND RETUF

0 SECRETARY'S OFT' 1

S a o v . Young
Mr. Hamlin
Mr. James ^
>/Mr P la tt
M ille r < L _ ^ M r . Cunningham
Fe d e r a l R e s e r v e B a n k
o f N ew Y o rk

OOKFIDEKTIAL

April 9, 1928

Dear Governor Young;
Enclosed i s a report of transactions in Government
securities and bankers acceptances as reported to the Open
Market Investment Committee for the Federal Reserve System
for the period from March £9, 1928 to April 4, 1928 inclusive,
together with data received b y the Coiiimittee front the Federal
reserve bank s.

Secretary, Open Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
i ashing ton , D. G.

Encl.

d u ,i



Reproduced from the Unclassified / Declassified Holdings of the National Archives
d e c l a s s if ie d

I

Authority

Q! {
.

CONFIDENTIAL
REPORT OF OPEN M
ARKET INVESTMENT COMMITTEE W
EEK ENDED APRIL 4, 1928
Holdings of Earning Assets of Federal Reserve Banks from January 26f 1927 to Date
(000 Omitted)
TOTAL
G VERNM SECURITIES BANKERS ACCEPTANCES
O
ENT
BILLS
EARNING
Oatrig'Lt
Sales
Ov.tr ight
Sales
-1927ASSETS
Purchases
Contracts Purchases
Contracts DISCOUNTED
Jan. 26
0 972, 249
$365,157
$301,851
$ 914
*’$269,362
$32,465
Feb. 23
985, 326
304,780
426
397,929
243,934
36,255
Mar. 30
1,040,034
311,587
456,023
-41,515
52,654
184,755
Apr. 27
1,005, 577
314,332
194,007
443,553
3,993
47,892
May
25
988, 510
30 2 , 349
19,571
171,907
428, 620
64,2 63
June 29
-1,0-71,130
367,140
9,261
183,163
477,311
32,955
July 27
953, 931
398,130
380,559
4,457
157,291
12,094
Aug. 31
1,058, 786
469,954
2,860
400,524
66,939
118,189
Sept. 28
1,157, 632
484,054
430,312
10,298
172,030
70,118
Oci. 26
1,214, 759
402,398
50 7,245
243,249
57,862
3*385
Nov* 30
1,380, 515
543,757
477,025
66,276
4,078
288,464
Dec. 28
1,598, 842
558,699
609 , 209
44,426
315,152
70 , 375
-1928Jan, 25
1,173, 926
434,817
385,224
28,442
318,863
6,000
Feb *, 29
492,568
1,244, 929
40,827
399,132
302,932
8,470
Mar, 28
524,09 6
1,257, 021
379,448
57,451
6,384
388,652
Apr*
601,476
4
1.329, 334
377,152
289,973
53, 663
6,080
C A G
H N ES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
______________________
DURING W
EEK ENDED APRIL 4. 1928 ________________
(000 Omitted)

Boston
New York
Philadelphia
Cleveland
Richmond
Aiianta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N*Y* holdovers
and other b ills
Totals

G VERNM
O
ENT SECURITIES
Net
Balance
Balance
Apr* 4
Apr, 4
Change
$ 40,054
$ 20,475
$ 19069,492
52256,385
17633, 630
25,129
31,124
47,652
20414,356
667,990
15,532
228,702
42,117
59,387
3794,461
12629,662
9417,474
14,055
12,983
16627,105
12,176
23,874
14021131,709
18,509

Net
Balance
Anr* ^
Change
$ 39,553
$ 694206,859
3,03345,316
745+
50,542
1,565+
1,518+
28,763
631+
29,055
89,118
6, 645+
26,048
1,9006,342
818+
17,523
1,298+
4,943
60357,414
3 , 0 1 a-

3T
092
$377,152

$2,296-

2.65.1-

$289,973

$1,321+

Net
Chanrte
$19,01952,841+
2,436+
2,4543,151+
5 , 703+
15,158+
2,283+
2,500+
5,694+
628+
8,459+

$601,476

$77,380+

C M EN O CH G
O M T N
AN ES dEEK ENDED APRIL 4. 1928
Total earning assets of the System showed an increase of $72,313,000 for t\e
current statement week. The approximate changes, by classification, consisted of
increases of $1,300,000 in outright purchases of bankers acceptances, $77,400,000 in
and decreases of $2,300,000 in outright purchases of Government
securities, and
in investments held under sales contracts. The latter iter
consisted of decreases if $$bti jO O Government securities and $3,800,000 bankers
O
acceptances#



Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Money

Market

f-~ Q 10^0{
; .

I
j

Call money in New York averaged nearly one-half per cent
higher during the past week than in the previous period. Call loans
were renewed at 5 per cent on Monday, the highest renewal rate since
January 31, and on Monday and Thursday the new loan rate reached
5 1/2 per cent* The condition of the market was firm, and l i t t l e
money was offered, compared with the very active demand for new accom­
modation, A large outflow of commercial and financial funds from this
market# reflecting the collection by outside banks of April 1 interest
and dividend payments at New York, was accompanied by a substantial
increase in New York City bank borrowings at the Reserve Bank, which
for a number of days remained between 168 and 224 million dollars,
the highest since the la tte r part of December 1927*
Nominal quotations for time loans continued at the higher
levels reached late in the previous week, Borrowers bid 4 3/4 per cent,
.while lenders offered at 4 7/8 per cent for periods of 60 days to 6
months. The shorter maturities were placed at 4 3/4 and 4 7/8 per
cent, while 4 to 6 months1 loans generally commanded the 4 7/8 per
cent rate.
The investment demand for commercial paper remained ligh t
during the week, and supplies of new paper coming on the market were
also reported to have been small*
The prevailing rate for the bulk
of the prime names was quoted at 4 l / 4 per cent with some transactions
occurring l / 4 below and above that rate.

Government
Security
Market

With the continuance of firm money conditions, the market for
United States Government securities was again quiet this week with
prices of Liberty Loan and Treasury bonds showing small fractional
losses from the previous week’ s close and dealers’ offering prices
for short-term certificates of indebtedness and Treasury notes
approximately l/32nd lower.

Bankers
Acceptances

Dealers* offerings of unindorsed bankers acceptances were at
the following rates: 3 l / 2 per cent for 30s, 3 5/8 per cent for 60s,
3 5/8 to 3 3/4 per cent for 90s and 3 3/4 per cent for 120-day b i l l s ,




Boston reports that the supply of b i l l s was very good in i t s
market during the past period* B ills moved freely with a ll maturities
in good demand* Dealers raised their rates l / 8 per cent on two consec­
utive days making an increase of l / 4 per cent during the period, which
stimulated buying, dealers’ sales aggregating nearly 014,000,000 which
was the highest with exception of one week during the year* Local banks
were good buyers and the demand from country banks was greater than for
some weeks past. In New York the supply and demand improved consid*erably this week. Dealers1 purchases were heavy and substantially in
excess of their sales. Buying for local account was narrow but good in
the aggregate as the result of several important sales to savings banks
and industrial corporations* Orders from abroad for nineties continued
in good volume. Dealers’ portfolios increased substantially, *^t the
beginning of the week a ll dealers advanced their rates l / 8 per cent
on a ll maturities. Following an advance in rates by the New York
reserve bank a ll dealers made a further advance of l / 8 per cent on
th irties, sixties and nineties, as mentioned in la s t week's report*
Toward the close of the week two dealers lowered their rates on
nineties l / 8 per cent bidding 3 3/4 per cent, offering 3 5/8 per cent*
P
hiladelphia reports that the b i l l market in its d istric t continued
somewhat active during the past week. Offerings from both dealers
and bantewere substantial with the demand somewhat improved, Chicago
reports that there was l i t t l e demand for b i l l s other than very short
maturities in their d istric t during the past week*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority jpT 0 •

(

OPERATIONS FOR ACCOUNT UNITED STATES TREASURY
Transactions effected under authority from the Treasury during the
current week consisted of
Purchases of 0^5OOt O O par amount Third 4 l/4/£ Liberty Loan bonds for account
O
Surplus Money
2,000,000 M "
3 1/8$ certificates of indebtedness due June 15,
1928 for account redemption
320.000 M w
3 l/2$ Treasury notes due March 15, 1932 for
account Registrar, Kansas City Joint Stock Land
Bank, Kansas City, Mo#
250.000 n
w
3 l/4/o certificates of indebtedness due Dec, 15,
1928
250.000 w ,r
3 3/8$ certificates of indebtedness due Mar* 15,
1928 both purchases for account Investment of
Individual Indian Moneys of the Five Civilized
Tribes
Total purchases $7,370,000
Sale of

v 500,000 par amount Fourth 4 l/4$ Liberty Loan bonds for account
Government Life Insurance Fund
SYSTEM PURCHASES OF BANKERS ACCEPTANCES

Purchases of bankers acceptances during the current statement week and
the amount each bank now holds in excess or short of its pro rata share under the
apportionment plan put into effect for the early part of the year;

Bills Acauired
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
•Totals

0 48,069,000
137, 783,000
49, 709,000
57, 49 6,000
27,947,000
22, 346, 000
83,929, 000
16,887,000
22,131,000
27,461,000
22,003,000

0561, 420,000

Bills Entitled
to Acauire

Bills Over
Pro Rata Share

$ 39,249,000
$8,820,000
142, 547,000
0
0
52, 840,000
58, 444,000
0
28,034,000
0
22, 428,000
0
80, 872,000
3,057,000
16, 887,000
0
22, 429,000
0
28,032,000
0
22, 427, 000
0
47. 2 31 f 000
0
0561, 420,000

011,877,000

Bills Short
Pro Rata Share
A
S
?

0
4, 764,000
3,131, 000
948,000
87,000
82,000

0
0
298,000
571, 000
424,000
1. 572. 000
Oil, 877,000

The overages shown in the above statement are being adjusted in the
usual manner by making distribution to other Federal reserve banks*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

0■ 1 0 ^ 0 (

SYSffEM SPECIAL INVESTHSNT ACCOU T - G
N
OVERN EN SECURITIES
M T
Transactions consummated in the System Account during the current state*
ment week con sisted o f
Sales to
Foreign correspondent o f

& 2,201,600

Treasury o f

803,800

New York & Chicago markets o f
n

«
»

ti

T ota l Sales

June 15, 1928 - 3 l/Q% c e r t i f i c a t e s
o f indebtedness

n

Various issu es o f short-term Govern­
ments

8,000,000
2,000,000
■

ft

3 \/z/ Treasury Notes due 1930-32
3 l /4 $ c e r t i f i c a t e s o f indebtedness
due December 15, 1928

013,005,400

Purchases, from
Treasury o f

&

Market o f
T ota l Purchases

550,000

10,000.000

June 15, 1928 - 3 l/8 ^ c e r t i f i c a t e s
o f indebtedness
3 l/2/£ Treasury Notes due 1930**32

OlO,550,000

The purchase o f $10,000,000 3 l /2 $ Treasury Notes mentioned above was made
at the beginning o f the current statement week at the request o f the dealer to whom
they had been sold the la t t e r part o f the previous statement week with the understand­
ing that we would repurchase th is b lo ck o f notes i f the d ealer was unable to dispose
o f them or money market con d ition s, did not permit carrying then*
However, out­
rig h t sa les o f $10,000,000 Governments were made to the market la te r in the week,
which o f f s e t th is purchase as shown in the above statement.
These tra n sa ction s l e f t the t o t a l holdings in the account at the c lo s e o f
business A p ril 4 at ^256,038,300.
The p a r tic ip a tio n by the Federal reserve banks
and the c la s s if ic a t i o n o f issu es were as fo llo w s ;
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
P h ilad elp h ia
Cleveland
Richmond
A tlanta
Chicago
S t. Louis
Minneapolis
Kansas City
D allas
San Francisco
T otals




& 19,768,000
67,978,300
18,442,500
21,343,500
6,837,000
6,009,000
39,460,000 ‘
13,037,000
9,889,000
17,371,500
13,890,500
22.012*000
$25 6,038,300

RECAPITULATION QF HOLDINGS BY I/IaTURITIES
Doc.
Dec.
Mar*
Mar.
Dec.

15,
15,
15,
15,
15,

1928
1928
1929
1932
1932

-

3
3
3
3
3

w
1 / 4^
3/ 8$

C/l
n

it

\/zi T/N
l/Z% It

i 65,839,000 (old)
i

62,318,5p0 ( new)
■24,450,000
56,990,000
45,940,800

$25 6,0 38,300

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority f - ~ t

0 .

(

ITEMIZED STATEM
ENT OF TRANSACTIONS AFFECTING TH INVESTMENT ACCOUNT OF ALL
E
_________FEDERAL RESERVE BANKS FRO M R H 29 T APRIL 4. 1928_______ ________
M AC
O

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t , Louis
Minneapolis
Kansas City
Dallas
San Francisco

Purchases
0
814,500
2,801,000
760, 500
879,500
281,500
247, 500
1, 625, 500
537,000
408, 000
715, 500
572,000
..... 907.500

Sales
0 1,004,000
3, 452, 900
936,500
1,083, 500
347, 500
305,500
2t 004, 000
662,500
502, 500
882, 500
705, 500
1T118t 500

Net Decrease
0 189,500
651,900
176,000
204,000
66, 000
58,000
378,500
125, 500
94,500
167,000
133, 500
211.000

T otals

010,550,000

013,005,400

02, 455, 400

New York
Atlanta
Dallas
Totals

OTHER TRANSACTIONS IN GOVERN EN SECURITIES
M T
Sales
Purchases
Issue
June 15, 1928 C /l
*02,000,000
*02,000,000
**
130,000
0
Third L/L bonds
456,250
Misc* GovH Sec*
419,800
18.750
M isc. Gov*t Sec*
24. 750
02, 605,000

Issue
June 15,1928 C /j
M isc, C0v H Sec#
M isc. Gov’ t Sec.

02, 444, 500

*Tenporary purchase re so ld to Treasury
**Temporary purchase from fo re ig n correspondent f o r re sa le to Treasury*
BANKERS ACCEPTANCES
(000 Omitted)

Boston
New York
Phila*
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
Minn»
Kan. C ity
Dallas
San Fran.

R e^ d by Allotm ent
From
Regular
Holdings Purchased
from
Boston
Mar, 28
Own Mkt.
P o rt.
N.Y.
0 40, 748 010, 256 R*
0
0
59, 418
9,867 "
0
1,000
17, 383 A.
24, 384
6,476 R.
0
0
29, 559
4,277
795 "
1,000
12,838
1,988
1,000
450 "
1,807
348 *
14,901
500
35, 472
7,849 «
4, 638
0
6,361
0
0
0
13,237
1, 698
0
500
11, 685
0
1,000
1,923
12, 779
281 M
1,052
0
21.527
2t 297 "
0
0

Other Holdings
Close Apr . 4.192?
Matur­
Sales
Other
i t i e s & Holdings
. Aur* 4 C ontracts B i l l s
Sales
>
010,950* 0 40,054 0 6,068 C 19
44,996
56,385
830
13,900

219
1.808

24
1, 370
13
297
36
11
7
9
9
18

Totals
0282, 909 056,002
$17, 383 05,000 057,030 0286, 881 053, 663
B ills h eld overnight by New York f o r d is tr ib u tio n to other ■ .R.Banks - - - F

02 , 643
449

5, 731
4,507
1,920
2,024
5,842
1,900
1, 380
1, 625
1,936
5.315

25,129
31,124
14,356
15, 532
42,117
4,461
14,055
12,983
12,176
18.509

0
0
0
0
572
0
0
0

T o t a l ......................
•^Includes 0^,000,000 sold to other Federal Reserve Banks*
NOTE: R. in d ica te s Retained and A. in d ica te s A llo t t e d in the above statement*




03,092

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authorityf - ~ ,

Q .

{

MATURITIES AND RATES O BILLS PURCHASED W
N
EEK ENDING APRIL 4. 1928
( O O Omitted)
O
31-60 days
3 l / 4 to 3 3/4^

1-30 days
3 1 /4 to 3 1 /2 #

61-90 days
3 l / 2 to 3 3/4 i

Over 90~days
3 l / 2 to 3 3 /4 1

Total

Boston
New York
Philadelphia
Cleveland
Richmond
A tlanta
Chicago
Dallas
San Francisco

0 1,420
8B996
97
0 '
350
94
664
12
540

$

653
5,236
286
234
0
50
3,925
73
1. 588

0 8,124
11,832
6,093
561
100
204
3,260
177
88

$
59
1,186
0
0
0
0
0
19
____ SL

$10,256
27, 250
6, 476
795
450
348
7,849
281
2t 297

" TOTALS

$12,173

$12,045

$30, 439

01, 345

056,002

RECAPITULATION O PURCHASES AND SALES OF G
F
OVERN EN SECURITIES
M T
AND BANKERS ACCEPTANCES DURING T E ENDING APRIL 4r 1928
V EK
(000 Omitted)
(Excluding Sales C ontracts)
Government
S e cu ritie s
Purchased
Sold
Matured

Totals

Bankers
Acceptances

013, 155
15, 451
0

0 2, 29 6-

Total

$56,002
0
52.030
0 3,972+
2, 651- (Net Change
________ 1-day holdover
and other b i l l s )
0 1,321+

$69,157
15, 451
52.030
$ 1, 676+
2, 651- (Net Change
________ 1-day holdover
and other b i l l s )
975-

(In clu d in g Sales C ontracts)
Holdings
A p ril 4t 1928

Within
1 5 -days

16-30
davs

31-60
days

61-90
days

GovH S e cu ritie s
B i l l s Purchased

)

6,080
150.047

0
75r 649

57. 775

> 792
54^808

$156,127

$75, 649

057,775

$55,600

Totals




91-days
6 months

Over 6
months

Total

0376, 360
$ 5, 357

0383,232
343. 636

0 37 6 360
,

$726,868

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
'

Authority ^

Q. jQ^ 0 (

April 3, 1928.

Dear'Hr. Matteson;
I acknowledge receipt of and shall bring
to the attention of the m bers of the Board, your
em
letter of April 2nd, addressed to Governor Young, en­
closing a report of transactions in Governm
ent secur­
ities and bankers acceptances, as reported to yoirr
Comittee for the period from M
arch 22, 1928 to ?larch
28, 1928, inclusive.
Yery truly yours,

7/alter !*• Bddy,
Secretary*

Mr. W B. Matteson, Secretary,
.
O
pen Market Investment Ooranittee,
c/o Federal Reserve Bank,
H York, IT Y.
ew
.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED

Authority f Q■
-T

(

/ \

Fe d e r a l R e s e r v e B a n k
o f N ew Y o rk

P E RS 0 3 \ i A L

April k,, 19 U3

X /

Dear Governor Young:

W are enclosing, for your f i l e s , report o f trans­
e
actions in Government secu rities and bankers acceptances as
reported to the Open Market Investment Committee for tne
Federal Reserve System for tiie period from &&rcii

lycb to

Marcit k,b, iy&fc in clu sive, together witii data, received by the
Committee from tne Federal reserve Dank s.
V ery^ruly you^s,

/M
Secretary, Opm Market
Investment Committee

Honorable Roy A, Young,
Governor, Federal Reserve Board,
Washington, D. C.

iuncl.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

PLEASE R A T
ED
Goy. Y
oxm
gS
Mr. Platt

Q.

0f

^ FOR SPECIAL CIRCULATION ^
\!FTLY, IN ITIA L A D RETURN TO
N
JRETARY*S OFFT
H. Hamlin \S Mr. James r Mr. Mclnt^osli
r
M M illerv^
r,
Mr.Cunningham
v
Fe d e r a l R e s e r v e Ba n k
o f N ew Y o rk

A pril c, 1S£8

CONFIDENTIAL

Dear Governor Young:
Enclosed i s a rep ort o f tra n sa ctio n s in Govermaent
s e c u r it ie s and bankers acceptances as reported to tne Open
Market Investment Committee f o r the Federal Reserve System
f o r the p e rio d from k&rch ££,1&£8 to .March,.&&,■ -19£8, in c lu s iv e ,
f
tog eth er with data re ce iv e d by the Committee from tne Federal
reserve bu lk s.
Very tru ly yours,

IU-v/
atteson
S ecretary, Opf^i Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
la sa in g to n , D. C.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
r

Authority/%

Q .

(Q ^ O

(

CONFIDENTIAL
REPORT OF OPEN M
ARKET INVESTMENT COM ITTEE W E EN
M
E K DED M RCH 28, 1928
a
Holdings o f Earning A ssets o f Federal Reserve Banks from January 26* 1927 to Date
------------------------( o o T o S d l
TOTAL
EARNING
ASSETS

*•1927Jan* 26
Feb. 23
Mar* 30
Apr. 27
May
25
June 29
July 27
Attg* 31
Sept * 28
O ct, *6
Nov. 30
ITee* 28
-1928*
Jan« 25
Feb* 29
Mar* M
Hot* 21
Mar, 28

$

G
OVERN EN SECURITIES
M T
Outr ight
Sales
Contracts
Purchases

972,240
985,326
1,040,034
1,005,577
938,510
1,071,130
- 953,931
1,058,786
1,1$7,632
1,214,759
1,380,515
1,598,042

$301,851
304, ?80
311,587
314,332
302,349
367,140
360*559
469,954
484,054
507,245
543,757
558,699

1,173,926
1,244,929
1,217,509
1,195,467
1,257,021

434,317
399,132
396,23?
379,542
379t 448

CHANGES

Bo 3 on
*1
Jtew Torfc
P h ilad elp h ia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
D allas
San Francisco
N*Y* holdovers
and other b i l l s
T ota ls

$

914
426
41,515
3,993
19,571
9,261
4,457
2,860
10,290
3,385
4,078
44,426

BANKERS ACCEPTANCES
BILLS
Outright
Sales
Contracts. DISCOUNTED
Purchases
$365,157
$32,465
$269,362
3^7,929
36,255
243,934
456,023
52* 654
184,755
443,553
47,892
194,007
428,620
64,263
171,907
477,311
32,955
183,163
398*130
12,094
157,291
66,939
400,524
118,189
430,312
70,118
17^,030
402,$98
57,862
243,249
477,02&
66,276
288,464
609*209
70,375
315,152

6,000
8,470
4,655
5,719
6,384

318,863
302,9 32
303,601
293,598
288,652

28,442
40,827
39,725
39,130
57,451

305*224
492,568
472,296
476,978
524,096

IG ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
DURING W E EN
E K DED M
ARCH 28, 1928
{OOO Oiaitted)
BlLLS DISCOUNT
GOVERNM T SECURITIES
EN
BANKERS ACCEPTANCES
Net
Balance
Balance
Balance
Net
Net
Chance Mar.28
Mar, 28
Change
M ar.28
Change
$12,559+
% 58,572
$4,870+
I 20,665
$ 17+
$ 40,748
11, 6+
154,018
5,31770,014
59,418
59+
2,744*
42,800
3,09633,806
16+24,384
52,996
47,856
1,450+
231*
29,559
1 , 646*
25,612
8,056
6*
1,09112,838
1,019+
23,352
5,363+
14,901
598,724
9 ,7 9 7 73,960
59,766
21035,472
35+
4 ,92523,765
29,788
6,361
1,74812+
1,5993,842
17,568
13,237
5239+
11,829
16327,271
69415+
11,685
1,162+
4,315
55624,014
12,779
8+
14,504—
48,955
31,920
21,527
19+
4,7825,743
$288,652

I , 388*
$4,946* ,

$524,096

$47,118+

C M E T ON CH
O MN
ANGES uSEK EN ED M
D
ARCH 28. 1928
T ota l earning assets o f the System showed an increase o f $>61,554,000 fo r
the current statement week.
The approximate changes, by c l a s s i f i c a t i o n , con sisted
o f decreases o f $4,950,000 in ou trig h t purchases o f bankers acceptances, $100,000 in
ou trigh t purchases o f Government s e c u r it ie s , and increases o f $47,100,000 in b i l l s
discounted and $18,950,000 in investments held under sa les con tra cts*
The la t t e r
item con sisted o f an increase o f ^18,300,000 bankers acceptances and $650,000
Government s e c u r itie s *



Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
f

Authority f ~

Z

M
o>nev
Market

: Q .

/

__

Money co n d itio n s in New York firmed n o tice a b ly during the
past week*
C all money sta rted on Monday at 4 l/Z per cen t, but re­
newals advanced t o 4 3 /4 per cent as the month^end approached, and th©
ra te fo r new loans on two days rose to 5 per ce n t, the highest sin ce
January 31 , 1928*
The b u ild in g up o f bank balances in Hew York C ity
preparatory to A p ril 1 in te r e s t and dividend payments caused an increase
o f about $25,000,000 in required reserve balances at the Reserve Bank,
and t h is co n d itio n , togeth er with furth er gold exports and week-end and
month*end currency withdrawals, re su lte d in the c a llin g fo r t h o f an
a d d itio n a l amount o f Reserve Bank c r e d it during the period ended Friday#
The trend of time money ra te s was also d i s t i n c t ly firm er.
By the end o f the week, b id and asked quotations fo r loans of 60-days
to 6 months1 m aturity had moved up from 4 l / 2 - 4 5 /8 per cent to
4 3/4 - 4 7/8 per ce n t, and the demand fo r accommodation was very ac­
t iv e .
Most o f the loans were made at 4 3 /4 per ce n t, but the firm ness
o f the market was in d ica ted by the f a c t th a t 4 7/8 per cent was paid
f©r some 6 months* lo a n s.
At these l e v e l s , time loans on s e c u r it ie s
were the highest since December 1926.
The commercial paper market, in which the undertone has been
becoming somewhat firm er fo r a number o f weeks, lik e w ise quoted a higher
ra te fo r the bulk o f the prime names.
While i t was s t i l l p o s s ib le to
s e l l a very lim ited number o f the highest grade names at 4 per c e n t,
the actual s a le s , which in the aggregate continued sm all, were la r g e ly
at 4 l / 4 per cent * D ealers again reported that new su pplies o f paper
coming in to the market were small*

Government
Security
Market

Accompanying firm er money co n d itio n s during the week, th »
market fo r United States Government s e c u r it ie s was very quiet w ith
o ffe r in g s in most cases in excess o f the.demand*
P rice s of L iberty
Loan and Treasury bonds showed small fr a c t io n a l re ce s sio n s from the
p revious week’ s c lo s e , and dealers* o ffe r in g p r ic e s fo r the short-term
c e r t i f i c a t e s o f indebtedness and Treasury notes were about l/32n d
low er.

Bankers
Acceptances

Dealers* o ffe r in g s o f unindorsed bankers acceptances were at
the fo llo w in g r a t e s : 3 l / 4 per cent fo r 30s, 3 3/8 per cent fo r 60s
and 3 l / 2 per cent fo r 90 and 120-day b i l l s On March 29 d e a lers ad­
vanced th e ir ra te s l / 8 per cent on a i l m a tu ritie s, and on March 30
made a furth er advance o f l / 8 per cent on 30s, 60s and 90s*




On March 30 the Federal Reserve Bank o f New York esta b lish ed
the fo llo w in g buying ra te s fo r b i l l s , 1-30 days 3 l / 2 per ce n t, 3i-90
days 3 5/8 per cen t, 91-120 days 3 3 /4 per cent and 121-180 days 4 per
ce n t.
Boston re p o rts that th ero was a s lig h t f a l lin g o f f in the
supply o f b i l l s during the past period w ith the demand s lig h t ly im­
p roved.
B i l l s as a whole moved fr e e ly with short m atu rities in b est
demand*
L ocal banks were good buyers while the ou tsid e demand coiw
tinued sm all.
In New York the b i l l market was le s s active*
The
supply o f b i l l s continued in good volume and was in excess o f the de­
mand which decreased s u b s ta n tia lly .
Dealers* sa les con sisted c h ie fly
o f moderate orders fo r n in e tie s fo r fo re ig n account*
L ocal buying*
w hile lig h t , improved s lig h tly *
D ea lers’ p o r t fo lio s increased sub­
s t a n t ia lly .
P h ilad elp h ia re p o rts th at t h e ir b i l l market was moderate­
ly a ctiv e during the past week*
O fferin g s continued lim ited with the
demand l i g h t .
D ealers rep ort p o r t fo l io s running o f f with few new
b i l l s coming inta the market.
Chicago re p o rts fh at th e ir biJLl market
was yery quxot.
On March 29 d ealere ancreased th e ir ra te 1 /8 oer £«nt
making the fo llo w in g r a te s e f f e c t iv e - 3 3/8 per cent fo r 30s, 3 1 /2 per
cent Tor 60s and 3 S /8 per cent fo r 90s.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

D E C L A S S IF IE D
A uthority

Q.

{

fhnu'-iin

.-r
J

3
OPERATIONS F R A C U T UNITED STaTES TR
O CON
EASU
RY
Transactions effected under authority from the Treasury during the
current week consisted o f ;
Sgjftg. aggregating
*

"

"

"

*
*

--

Y o ta sales

§ 2,750,000 - Fourth 4 l/4/£ Liberty Loan bonds for account
German Special Deposit Account
550,000 - 3 l/8/# certificates of indebtedness due June
15, 1928 for account Alien Property Custodian
1,000,000 - Fourth 4 1/4$ Liberty Loan bonds for account
Government Life Insurance Fund
162,000 - Third 4 l /4 $ Liberty Loan bonds for account
.......
D istrict of Columbia Teachers Retirement Fund
% 4,462,000

Purchases aggregating $24,062,000 - Third 4 l /4 $ Liberty Loan bonds for account
Surplus Money, in New York and Chicago markets
M
"
3,844,900 - 3 l /8 $ certificates of indebtedness due June
15, 1928 for account German Special Deposit
Account
Total purchases

$27,906,900
SYSTEM PU CH
R ASES O B N E S ACCEPTAN
F A KR
CES

Purchases of bankers acceptances during the current statement week and
the amount each bank now holds in excess or short of its pro rata share under the
apportionment plan put into effect for the early part of the year:
B ills Short
B ills Over
B ills Entitled
Pro Rata Share
B ills Acauired
Pro Rata Share
to Acauire
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals

$ 42,813,000
126,916,000
43,233,000
51,424,000
24,509,000
19,691,000
71,442,000
16,887,000
19,933,000
24,538,000
20,670,000
43f 362.000

§ 35,329,000
127,986,000
47,240,000
52,284,000
25,234,000
20,188,000
72,471,000
16,887,000
20,189,000
25,232,000
20,187,000
42f191*000

$7,484,000
0
0
0
0
0
0
0
0
0
483,000
1,171.000

$

$505,418,000

$505,418,000

$9,138,000

$9,138,000

0
1,070,000
4,007,000.
860,000
725,000
497,000
1,029,000
0
256,000
694,000
0
■
0

The overages shown in the above statement are being adjusted in the usual
manner by making distribution to other Federal reserve banks.




Reproduced from the Unclassified IDeclassified Holdings of the National Archives

DECLASSIFIED
Authority

Q.

{

ITEMIZED STATEM T O TRANSACTIONS AFFECTING T E INVESTM
EN F
H
ENT A C U T O ALL
CON F
___________ FED AL R
ER
ESER D N S F O M R H 22 T M R H 23, 1928____________
VE A K R M A C
O AC
G V R M N SECURITIES - SYSTEM INVESTM
OEN ET
ENT AC O N
C UT
Poston
J w York
tfe
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
Minneapolis
Kansas City
Dallas
San Francisco

Purchases
0 1, 390, O O
O
4,779,000
1,29 6, 500
1, 500, 500
480, 500
422, 500
2, 774,000
916, 500
695,000
1, 221,500
976, 500
1. 547.500

Totals

0 1 8 ,000, 000

0

Net Increase
0 17,500
58,900
16,000
19,000
6,000
5, 000
34, 500
11, 500
9,000
15, 500
12,500
18. 500

Sales
1,372, 500
4, 720,100
1, 280;500
1, 4&L, 500
474, 500
417, 500
2, 739, 500
905,000
686,000
1, 206,000
9 64,000
1.529.000

0223,900

017, 776,100

O E TRANSACTIONS IN G V R M N SECURITIES
TH R
OEN ET
Cleveland
Atlanta
Dallas

Purchases
0
152, 450
0

Totals

Issue
Misc. GovH Sec,

0152, 450

«■
»

Sales
0250,000
216, 300
4. 000

Issue
3j, Conver$ions
Misc. GovH Sec.
Fourth L/L bonds

0470, 300
B K S ACCEPTAN
AN ER
CES
(O O Omitted)
O

Boston
New York

Holdings
Mar. 21
0 35,878
64, 735

Phila.
Cleveland
Richmond
Atlanta
Chicago
St. Louis
I.Iinn*
Kan. City
Dallas
San Fran,

27, 480
28,109
13,929
9, 538
35, 682
8,109
13,760
12,379
13, 335
26.309

Rec*d By Allotment
Regular
Fram
from
Purchased
New York
O n Mkt.
w
Port*
N.Y.
0 8,591 R*
0
0
12, 618 "
0
0
15, 574 A.
2,409 R.
0
0
714 *
0
4,110
1,789
0
0
5,023*
1, 623
30 "
1, 676 ”
3, 430
0
0
0
0
0
1, 483
0
1,939
0
0
926 «
609
0
997 "
591
0

Maturitie s C Holdings
t
Sales
Mar* 28
0 3,721 0 40, 748
59, 418
12, 912
5,023*
24, 384
5, 505
29, 559
3, 374
12,838
2, 880
14,901
1, 313
35, 472
5, 316
6,361
1,748
13,237
2,006
11, 685
2, 633
12, 779
2,091
21r 527
6.370

Other Holdings
Close Mar. 28/28
Sales
Other
B ills
Contracts
0 8,476 0 19
597
40, 687
0
0
0
0
3, 525
0
0
0
72
4r 691

Totals
0289, 243 043,535
015, 574 05,023 054, 892 0282,909 057, 451
E ills held overnight by New York for distribution to other Fed. Res, Bks. - ~

24
1,346
13
322
36
11

j
r
•9
9
18

02, 411
3.332

T o t a l ----------- 05,743
Of this amount $2,518,O O was sold from New York's portfolio and
O
02,505,000 from New York’ s share of daily purchases during the week*
NOTE; R. indicates Retained and A, indicates Allotted in the above statement*



Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D

Authority f~,. Q.

f

MATURITIES AND R
ATES O BILLS P R ASED W E ENDING M R H 23. 1928
N
U CH
EK
AC
(O
OO Omitted)

1-30 days
3 1 /4 to 3 3/8$
Boston
New York
Philadelphia
Cleveland
Atlanta
Chicago
Dallas
San Francisco

31-60 days
3 l / 4 to 3 1/Z j

61-90 days Over 9 0 -days
3 l/2 l
3 l / 2 - 3 3/4^

Total

0 2,244
12, 677
601
0
0
374
55
242

0 4, 228
5, 371
543
0
0
106
144
_____ 27

199
877
0
313
0
0
319
36

0 8, 591
28,192
2,409
714
30
1, 676
926
997

016,193

^Totals

1,920
9,267
1,265
401
30
1,196
408
692
§15,179

OlO, 419

01, 744

043, 535

RECAPITULATION O PU CH
F
R ASES AN SALES O G V R M N SECURITIES
D
F OEN ET
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured

Totals

018,154
18,248
0

0

94-

Bankers
Acceptances

Total

§43, 535
0
49t 869
0 6, 3341,388+ (Net Change
1-dav holdover
and other b i l l s )
0 4,946-

061, 689
13, 248
49.069
0 6, 428*1,388+
0 5,040-

1-day holdover
and other b i l l s )

(Including Sales Contracts)
Holdings
March 28. 1920

Within
>d
— a^

16-30
davs

31-60
davs

61-90
davs

Gov*t Securities
B ills Purchased

0 6,384
1 67, 981

58,730

0 1,770
34. 457

0

77.976

653
5r901

0377,020
0

0305,032
346* 103

0174,365

077,976

058, 788

037,227

0^,559

0377,020

0731,935

Totals




91 days6 months

Over 6
months

Total

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

() ■ 0 $ 0 (
1

March 27, 1928*

Boar Mr. Hatteson:
I acknowledge receipt o f and shall 'bring
to the attention of the members of the Board, your
le tte r o f March 26 th, addressed to Governor Young,
enclosing a report of transactions in Government secur­
it ie s and hankers acceptances, as reported to your
Committee for the period from March 15, 1928 to March
31, 1928, Inclusive.
Very truly ymirs,

Walter L» Bddy,
Secretary*

Mr. W. B. Matteson* Secretary,
Open Market Investment Comsiittee,
c/o federal Hesenre Bank,
Hew Yo*k, S. Y.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority f-~, Q . W ^ O f

x *

Fe d e r a l Re s e r v e Ba n k
o f N ew Y o rk

PERSON

Mtrch £6,

Ah

s s 'i m v
I

A

!

V

Dear Governor Young:
W are e n clo sin g , f o r your f i l e s ,
e

a rep ort o f trans­

a ctio n s in Government s e c u r it ie s and bankers acceptances as
reported t o the Open Market Investment Committee f o r the
Federal Reserve System f o r the p e rio d from March 15, 19E8 to
March £1, 19&8 in c lu s iv e , tog eth er aiith data received by the
Committee from the Federal reserve banks.
Verv tru ly '/9HTS*

W.'^.Utfatfe
’ S ecretary, OpeA Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
0 •

Authority

(

' won SPECIAL CIPCULATIOH
PLEASE P D F30KT
JSA

Y, INITIAL AM5 RETURN TO SECF

Gov. Ycung f

I/>r. Ham liar

Mr. P la tt:

M llille r
r,

.^M r. J a m

\RY*S OFF’

e s Hr.

l a t e /»

Mr*Cunningham

Fed er a l R e s e r v e Ba n k
of

Ne w Yo r k

CONFIDENTIAL

Marcii £6, Uhb

Dear Governor Young:
Enclosed i s a rep ort o f tra n sa ctio n s in Government
s e c u r it ie s and bankers acceptances as reported to the Open
Market Investment CoiMiittee f o r the Federal Reserve System
f o r the p e rio d from March 15, 1& & t o March 21, I9&8 in c lu s iv e ,
&
togeth er foith data received by tne Committee from the Federal
reserve banks.

S ecretary, Op^n Market
Investment Committee

Encl.

Honorable Roy A. Young,
Governor, Federal Reserve Board,
Sashington, D. C.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D
A u th o r ity Q. ( 0 ^ 0 (

CONFIDENTIAL
R P R OF O
EOT
PEN M R E INVESTM
AKT
ENT C M ITTE tV E E D D M R H 21, 1928
O M
E EK N E
AC
Earning Assets of Federal Reserve Banks from January 26, 1927 to Date
(000 Omitted)
TOTAL
-*1927*
Jan.
Fob*
Mar*
Apr,
M
ay
June
July
Aug.
Sept,
Oct.
Nov*
Dec.
-1928*
J3h.
Feb *
Mar*
Mar.

earning

26
23
30
27
25
29
27
31
26
26
30
28

$

25
29
14
21

j
!

ASSETS
972,249 1
985,326 1
1,040,034 j
1 ,0 0 5 ,5 7 7 J
988,510 |
1,071,130 ‘
953 ,9 31 J
1 ,0 5 8 ,7 8 6 i
l,1 6 7 ,6 3 2 j
1 ,214,759!
1,380 , 51 5 j
1,598,842!

G V R M N SECURITIES
OEN ET
Outr ight
Sales
Purchases
Contracts
$301,851
$
914
304,780
426
311,587
41,515
314,332
3,993
302, 349
19,571
367,140
9,261
4,457
380,559
469,954
2,860
484,054
10,298
507,245
3,385
543,757
4,078
558,699
44,426

1,173,926 «
1,244,929 !
1 ,2 17 ,5 09 !
1,195,467 S

434,817
399,132
39 6,232
379,542

6,080
8,470
4,655
5,719

B K R ACCEPTAN
AN E S
CES
Sales
Outright
Contracts
Purchases
$32,465
$269,362
36,255
243,934
52,654
184,755
47,892
194,007
64,263
171,907
32,955
183,163
157,291
12,094
66,939
118,189
70,118
172,030
57,862
243,249
66,276
288,464
70,375
315,152
318,863
302,932
303,601
293,598

28,442
40,827
39,725
39,130

BILLS
D
ISCO N
U TED
$365,157
397,929
456,023
443,553
428,620
477,311
398,130
400,524
430,312
402,398
477,025
609,309
385,224
492,568
472,29 6
476,978

C A G S IN EARNING ASSET H LD GS (EXCLUSIVE O SALES CONTRACTS)
HNE
O IN
F
____________________ D R G T B K E D D M R H 21. 1928 ____________ __
U IN O E N E
AC
(000 Omitted)

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
N.Y* holdovers
and other b i l l s
Totals

G V R M N SECURITIES
OEN ET
Net
Balance
Mar* 21
Chance
$
861§ 20,648
5 ,ges­
69,955
so 333,790
48,087
1,3408,050
2999878,783
59,731
1,723-^
29,776
1,95343117,559
27,256
75860724,006
96031,901

BAN ER ACCEPTAN
K S
CES
Net
LBalance
Change
Mar* 21
$ 35,878
$ 4,8852,69364,735
3,09227,480
644+
28,109
98713,929
17*
9,538
79435,682
8,109
1,5513,119+
13,760
290+
12,379
33313,335
796+
26,309
4- 355

$379,542

$16,690-

534-

$293,598

$10,003*

BILLS D
ISCO N
U TED
Net
Balance
Change
Mar* 21
$ 46,013 $$2,16982,402 . 28,6345,73845,624
5,668+
56,856
58727,258
22,333
48183,757
32,699*
2,921+
28,690
3,573+
5,441
930+
11,992
6013,153
2,89963,459

$476,978

$ 4,682+

C M E T O C A G S \ E K E D D M R H 21. 1928
O MN N H N E BE N E
AC
Total earning assets of the System showed a decrease of $22,042,000 for
the current statement week*
The approximate changes, by c la ssifica tio n , consisted
of decreases of $10,000,000 in outright purchases of bankers acceptances, $16,700,000
in outright purchases of Government securities, and increases of $4,700,000 in b ills
discounted and $500,000 net in investments held under sales contracts*
The latter
item consisted of an increase of $1,100,000 Government securities and a decrease of
$600,000 bankers acceptances.
The decrease in outright purchases of Government
securities was due mostly to the deferring of replacement purchases in the QDen
market account as mentioned on page 4 of th is report.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

d e c l a s s if ie d

r

Money
Market

A uthority

Q. W $ 0 {

Gall money was steady a t 4 l / 2 per cent again th is week, ex­
cept f or a d eclin e to 4 l / 4 per cent on Wednesday, when the member banks
found themselves tem porarily with some excess of funds on hand, fo llo w ­
ing the c lo s e of the Saturday to Tuesday reserve p e rio d . On Thursday,
however, the renewal rate reverted to 4 l / 2 per ce n t. For the week as
a whole, the market was ca lle d on to stand lo s s e s of about 0100*000,000
and 060,000,000 r e s p e c tiv e ly in outgoing commercial tra n sfe rs and in ­
come tax c o lle c t io n s , and as these lo s s e s were only p a rtly o f f s e t by
se cu rity purchases f o r the Treasury and the remaining replacement
purchases fo r the System Account, the member bank loans and sales
co n tra ct holdings of the Reserve Bank showed an in crea se of 050,000,000
during the week ended F riday.
There was no change in quoted rates in the time money market#
On several days, a f a i r l y la rg e amount of renewal and replacement b u si­
ness f o r periods of 3 - 6 months was transacted a t 4 5/8 per cent*
Commercial paper houses continued to rep ort a q u iet market
due p r in c ip a lly to the sxtrsasely small new drawings being received from
open market borrowers*
fa r prime names remained 4 - 4 l / 4 per _
cent, with the Middle '^est supplying the investment demand a t the
lower rate*

Government
S ecurity
Market

The undertone in the market f o r United States L iberty Loan
and Treasury bonds was b e tte r th is week than f o r the past several weeks
with the longer-term issu es in b e s t demand. P rices of a l l issu es, with
the exception of the F irst 3 l /2 s and F irst 4 l /4 s which remained un­
changed, showed small fr a c tio n a l gains over the previous week*s c lo s e .
The market f o r short-term c e r t i f ic a t e s of indebtedness and
Treasury notes a lso r e fle c t e d a b e tte r demand e s p e c ia lly f o r the 3 1 /8
per cent c e r t if i c a t e s maturing June 15, 1928 and 3 l / 2 per cent Treas­
ury notes due 1930-32* D ealers' o ffe r in g p rice s f o r the c e r t i f i c a t e s
maturing next December and March were unchanged from l a s t week, while
th e ir o ffe r in g p r ic e s f o r the June c e r t i f ic a t e s and 1930-32 Treasury
notes were l/3 2 n d higher*

Bankers
Acceptances




Dealers* o ffe r in g s of unindorsed bankers acceptances were a t
the fo llo w in g r a te s : 3 l / 4 per cent f o r 30s, 3 3/8 per cent f o r 60s,
and 3 l / 2 per cent f o r 90 and 120-day b i l l s *
Boston rep orts that although there appeared to be a sharp
f a lli n g o f f in the demand f o r b i l l s during the past period, b i l l s as
a whole moved f r e e ly with 45 and 120-day m atu rities in b e st demand.
The supply remained good and dealers had no d i f f i c u l t y in f i l l i n g
o rd ers. Local banks were poor buyers, th e ir purchases aggregating
only 0 2 ,0 0 0 ,OOO* In Hew Yorfe the b i l l market was more a c tiv e th is
week* The supply of b i l l s was very good and moderately in excess of
the demand* D istrib u tion con sisted mainly of n in e tie s and lon ger
m atu rities fo r fo r e ig n account* Buying f o r lo c a l account, while lig h t
improved s lig h tly *
Dealers* p o r t fo lio s increased moderately*
P hiladelphia rep orts that the acceptance market in th e ir d i s t r i c t
was q u ie t during the past period* O fferin gs continued to be somewhat
r e s t r ic t e d with the demand moderate - n in e tie s preferred*
Chicago
reports that th e ir b i l l market continued very qu iet with p r a c t ic a lly
no demand f o r m atu rities lon ger than 45 days*

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
,

Authority/ ^

0■

(

i

'/

'

»

3

OPERATIONS FOR ACCOUNT UNITED STATES TREASURY
Transactions e ffe c t e d under a u th ority from the Treasury during the
current week con sisted of a sa le of $ 50 0 *0 0 0 par amount F0Urth 4 l / 4 per cent
L ib erty Loan bonds f o r account Government L ife Insurance Fund, sa les aggregating
311,350,000 fa ce amount Fourth 4 l / 4 L ib erty Loan bonds f o r account German Special
Deposit Account, which were replaced by purchases of a lik e par amount of 3 l / 8
per cent c e r t i f ic a t e s of indebtedness due June 15, 1928* Purchases were a lso made
of $22,500,000 par amount Third 4 l / 4 per cent L ib e rty Loan bonds f o r account
Surplus Money and $106,200 - 3 l / 8 per cent c e r t if i c a t e s of indebtedness due June
15, 1928 f o r account Mixed Claims,
SYSTEM PURCHASES OF BANKERS ACCEPTANCES
Purchases of bankers acceptances during the current statement week and
the amount each bank now holds in excess or short of i t s pro rata share under the
apportionment plan put in to e f f e c t f o r the ea rly part of the years
B ill s Short
Pro Rata Share

B i l l s Acauired

B ills E n title d
to Acquire

B i l l s Over
Pro Rata Share

0 34,222,000

0 32,282,000

01,940,000

114, 298,000

116, 667,000

0

2,369,000

P hiladelphia

40, 824,000

42, 886,000

0

2,0 62,000

Cleveland

46, 600,000

47,495,000

0

895,000

Richmond

22,720,000

23,057,000

0

337,000

A tlanta

18,038,000

18, 447,000

0

409,000

Chicago

66, 336,000

65, 941,000

S t. Louis

16,887, 000

16, 887,000

0

0

Minneapolis

18, 450,000

18, 447,000

3,000

0

Kansas City

22,599,000

23,055, 000

0

Dallas

19,135,000

18, 446, 000

689,000

0

San Francisco

41f 774t000

38. 273r 000

3. 501. 000

0

$461,883,000

$461, 883,000

$6, 528,000

Boston
New York

Totals




395,000

$

0

0

456,000

$6,528,000

Reproduced from the Unclassified IDeclassified Holdings of the National Archives

DECLASSIFIED
Authority Q. IQ^O (

SPECIAL IN
VESTM T A C U T - G V R M N SECURITIES
EN C O N
OEN ET
Transactions consummated in the System Account during the current state­
ment week consisted of
Exchange of

$ 22,559*200 -

S_al.o3 to foreign
correspondents of 1108,340,000

Sales to
Treasury of

Total sales

3 l/z% Treasury Notes due December 15, 1932 for a
like amount of shorter term Government paper•

short-term Governments, principally 3 l/8/£ June 15
ce rtific a te s, in partial replacement of their hold*
ings of March 15 maturities*

23,874,700_- June 1 5 - 3 1/8# certificates for account of Alien
Property Custodian and Mixed Claims for almost a ll
of which w received in exchange like amount of new
e
3 l / 4 % certificates due December 15, 1928 which they
had acquired by subscription in exchange for their
March 15 maturities*
This exchange was effected
in order to accomodate the Treasury with the short­
est term Government paper for these Treasury ac_ __________
counts*
£132,214,700

These sales on March 15 were replaced in the account by purchase of a like
amount of short-term Governments*
With a view to stabilizing conditions in the
money market over the tax period, delivery of about $85,000,000 of these purchases
was deferred until after the 15th.
This, together with the sale to New York City
banks of a $115,000,000 participation in the special one-day Treasury certificate to
cover the overdraft, resulted in ca ll money remaining stable on March 15 and the
succeeding dates.
These transactions le f t the to tal holdings in the account at the close of
the statement week, March 21, 1928, temporarily at $258,269,800,
The participation
by the Federal reserve banks and the classificatio n of issues were as follows:
PARTICIPATION BY FED AL RESER
ER
VE B N S
A K
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
NOTE;

$ 19,940,000
68,571,300
18, £02,500
21.528.500
6.897.000
6.0 62,000
39.804.000
13.151.000
9,9 74,8)0
17.523.000
14.011.500
22.204* 500
0258,269,800

RECAPITULATION O H LD G BY M
F O IN S
ATURITIES
June
Dec.
Dec.
Mar.
Mar,
Dec*

15,
15,
15,
15,
15,
15,

1928
1928
1928
1929
1932
1932

■
l M C/I $ 5,746,500 * '
54.439.000 (eld)
l/4 < «
58,468,500(new)
X/*% "
28.500.000
3/&1
1/2% T/N 59.175.000
51,940,800
l/2/o

#

$258,269,800

# Delivery of the balance of $15,000,000 deferred purchases was made on
March 22, which restored the to ta l holdings in the account on that day to
§273 million*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D
A uthority / % Q . l O ^ O f

/X,
ITEMIZED STATEM T V TRANSACTIONS AFFECTING TH E "~STMENT ACCOUNT OF ALL
EN
E
FEDER,iL RESERVE BANKS FRO M
M ARCH 15 TO M
ARCH 21. 1928
GOVERN EN SECURITIES - SYSTEM INVESTMENT ACCOUNT
M T
Boston
Now York
P hiladelphia
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
Minneapolis
Kansas C ity
Dallas
San Francisco

Purchases
0 11,086,000
38,125, 700
10,343,000
11,970,000
3, 835,000
3,370,500
22,131,000
7, 312,000
5, 546,000
9, 742,500
7, 790,500
12. 345T500

Sales
0 11,947,000
41,092,900
11,148,000
12, 903,000
4.134.000
3, 633, 500
23,853, 500
7,880,500
5.977.000
10, 500,500
8, 397, 500
13, 30 6. 500

Net Decrease
0
861,000
2,9 67, 200
805.000
933.000
299.000
263.000
1# 722,500
568, 500
431.000
758.000
607.000
9 61.000

T otals

0143, 597, 700

0154, 773,900

$11,176,200

NYork
P h iladelphia
Cleveland
Atlanta
St* Louis
Kansas C ity
Totals

'*
■

OTHER TRANSACTIONS IN GOVERN EN
M T
Purchases
Issue
0
0
7,200,000 TM-1929 C tfs . Exch*
1,500 TM-1929 n
* 100*700 Dec. 15, 1932 T/N
47,000 M isc, Gov*t Sec*
* 958,500 Dec. 15, 1932 T/fa
493,950 M isc. GovH Sec*
0
440t 000 TM-1929 Exch*

SECURITIES
Sold
0 3, 000,000
200,000
0
* 100,700
454,000
* 958, 500
1, 218,000
1, 384, 500
440T000

09,241, 650

014, 755, 700

Issue
Fourth L/L bonds
TM-1928 C tfs* Exch.
TJ-1928 Ctfs#
& TM2~1928 Red*
TJ-1928 Ctfs*
M isc. Gov’ t Sec*
TM2-1928 C tfs* Red*
T & TM2-1928 Exch*
M

^Exchanged with System Acct«
BANKERS ACCEPTANCES
(000 O nitted)

Boston
I’ cw York
p h ila .
Cleveland
Richmond
Atlanta
Chicago
S t, Louis
Minn*
Kan* C ity
Dallas
San Fran*

Holdings
Mar* 14
0 40,763
67, 428
30, 572
27, 465
14,916
9,521
3 6,476
9, 660
10, 641
12,089
13, 668
2St 513

Purchased
Own Mkt*
0 4,529 R.
7,351 w
12,273 A*
2,921 R.
723 ”
270 M
4 "
2,840 M
0
* 3,030 *
0
1,034 *
4t 9 68 *

Regular
f ron
N. Y*
0
0
0
2,706
1,169
988
3,143
0
1,034
1,139
447
1. 647

From
Boston
Port*
0
2, 500
0
1,000
500
500
0
0
1,000
1,000
0
0

Close M ar.2l/28
Matur­
Sales
Other
Hoidings
itie s &
Mar* 21 Contracts B i l l s
Sales
0 9,414** 0 35,878 0 7,744 0 19
64, 735
819
25,085
9,514
3,030*
6,013
27,480
0
24
28,109
0
3, 785
1. 224
13,929
2,926
0
13
9,538
0
216
1, 475
35, 682
6, 777
2,954
36
8,109
1,551
0
11
13,760
7
1,9450
12,379
1,849
0
9
13,335
0
1,814
9
26. 309
3r 347
5f 819
18

0298,712 039,943
Totals
012.273 06,500 055,912
0289,243
B i l l s held overnight f o r d is tr ib u tio n to other F, R* Banks ^otal

539.130 $2,405
1.950
04,355

*This amount was so ld to Minneapolis fron New Yorkf s share of purchases during the
week*
*'-:Includes 06,500,000 s o ld to other Federal reserve banks*
'
/TEj R* in d ica te s Retained and A* in d ica te s A llo t te d in the above statement*



Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D
A u th o rity f - ' , Q ■ 1 0 $ 0 (

rit iiTOMlI-iiPXlMt

MATURITIES AND RATES O BILLS PURCHASED W
N
EEK ENDING M H 21. 1928
ARC
(OOO Omitted)
1-30 days
3 1 /4 to 3 l / z t
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
G
w
hicago
Minneapolis
Dallas
San Francisco
"

0

Totals

1,477
7,426
138
0
50
O
1,134
0
24
3. 594

013,843

31-60 days
3 l / 4 to 3 l/ 2 i

0

1,549
5, 402
1,281
334
170
1
1, 462
O
463
l r 135

011,797

61-90 days
3 1 /2 to 3 5 /8 i

0

Over 90 days
3 3/4^o

0

1,129
5, 680
1,502
389
50
3
244
3,030
367
177

374
1,116
0
O
O
O
O
O
180
, 62

01, 732

012,571

Total

0

4, 529
19,624
2,921
723
270
4
2, 840
3,030
1,034
4r 9 68

039,943

RECAPITULATION OF PURCHASES AND SALES OF GOVERN EN SECURITIES
M T
AND BANKERS ACCEPTANCES DURING \7B K ENDING I/ARCH 21; 1928
B
(000 Omitted)
(Excluding Sales C ontracts)
Government
S e cu ritie s
Purchased
Sold
Matured

Totals

0152,840
167, 691
1,839

0 16, 690-

Bankers
Acceptances

Ttftal

036, 913
O
46, 382
0 9, 469534- (Net Change
1-dav holdover
and other b i l l s )
010,003**

0189, 753
167, 691
48T221
0 26,159534- (Net Change
1-day holdover
and other b i l l :
0 26, 693-

(In clu d in g Sales C ontracts)
Holdings
March 21. 1928

Within
15 davs

16-30
davs

31-60
davs

Gov*t S e cu ritie s
B ills Purchased

5 5,719
1 5 lf 818

0
79. 257

0
64r 9 63

0 5,747
31. 771

0

655
4.919

0373,140

385,261
332.728

0157,537

079,257

064,9 63

037, 518

05,574

0373,140

0?17,989

Totals




61-90
days

91 days
6 months

Over 6
months

Total

Reproduced from the Unclassified I Declassified Holdings of the National Archives




DECLASSIFIED
Authority

0■ W ^ O (

March 20, 1928#

Dear Hr# Mattesoni
.ieceipt is acknowledged of your le tte r
l&th9 addressed to Governor Youm t trans­
mitting a report of transactions In Government se­
curities and bankers acceptances as reported to
the Open Market Investment COfsmlttee for the Fed­
eral xieserve System for the period from Larch 8 ,
1928 to March 14* 1928 inclusive, together with
data received by the 0 om it tee from the Federal
reserve banks. This report w ill be brought to the
attention of a ll members of the Board#

Very truly yours,

falter L* Eddy,
Secretary#
Mr# W B# Matteson, Secretary,
*
Open Market Investment CoEiaittee,
G/o Federal Heserve Bank,
Sow Yortc, H* T*

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
r

•

Authority

Q ■( 0 ^ 0 (

/ \

Fe d e r a l R e s e r v e Ba n k
o f N ew Y o rk

PKRSOM

AL

Marcxx 19, 1928

Dear Governor Young:
K e are e n clo sin g , f o r your f i l e s , a report o f trans­
B
a ctio n s in Government s e c u r it ie s end bankers acceptances as re­
ported to the Open Market Investment Committee f o r the Federal
Reserve System f o r the p eriod from March 8, 19H8 to March 14,
19£8 in c lu s iv e , togeth er with data re ce iv e d by the CoiMiittee
from the Federal reserve banks.

Honorable Roy A. Young,
Governor, Federal Reserve Board,
Washington, D- C*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Q

j

GOV.

Fe d e r a l R e s e r v e Ba n k
of

Ne w Yo rk

CONFIDENTIAL

14 a r c h

19,

19^8

Dear Governor loung;
Enclosed ia a rep ort o f tra n sa ction s in Government
\

s e c u r it ie s and bankers acceptances as reported to tne Open
Market Investment Coiiiraittee f o r the Federal Reserve System
f o r the p eriod from M&rcn 8, 19£8 to March 14, 1S28 in c lu s iv e ,
t

togeth er with data re ce iv e d by the Committee from the Federal
reserve banks.

Honorable Eoy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.

E ncl.

/

v W t< x z * i)




Reproduced from the Unclassified / Declassified Holdings of the National Archives

D E C L A S S IF IE D
A u th o r ity Q. W ^ O (

CONFIDENTIAL
R PO T OF O EN M R E INVESTM T C M ITTE «®EK E D D M C 14, 1928
E R
P
AKT
EN
O M
E
NE
aR H
^old.inp:s of Earning; Assets of Federal Reserve Banka fron January 26f 1927 to Date
(000 Omitted)
total
earning

-1927Jan. 26
Feb, 23
Mar* 30
Apr. 27
M
ay
25
June 29
July 27
Aug* 31
Sept* 28
Oct. 26
Nov. 30
Dec » 28
-1928Jan* 25
Feb* 29
Mar*
7
Mar* 14

ASSETS
972,249
985,326
1,040,034
1,005,577
988,510
1,071,130
953,931
1,058,786
1,167,632
1,214,759
1,380,51$
1,598,842
$

G V R M N SECURITIES
OEN ET
Outright
Sales
Purchases
Contracts
$301,851
$
914
426
304,780
311,587
41,515
314,332
3,993
302,349
19,571
367,140
9,261
4,457
380,559
2,860
469,954
484,054
10,298
3,385
507,245
543,757
4,078
558,$99
44,426

1,173,926
1,244,929
1,224,315
1,217,509

434,817
399,132
399,047
396,232

BILLS
B K S ACCEPTAN
AN ER
CES
Outright
Sales
ISCO N
U TED
Pure hase s
Contract s D
^365,157
$32,465
$269,362
397,929
36,255
243,934
456,023
52,654
184,755
443,553
47,892
194,007
428,620
64,263
171,907
477,311
32,955
183,163
398,130
12,094
157,291
400,524
66,939
118,189
430,312
70,118
172,030
402,398
57,862
243,249
477,025
66,276
288,464
609,209
70,375
315,152

6,080
8,470
3,665
4,655

318,863
302,932
299,021
303,601

28,442
40,827
39,474
39,725

385,224
492,568
482,108
472,296

C A G S in earning asset holdings ( exclusive of sales contracts)
HNE
DURING v S K EN E M R H 14. 1928
iOE
DD AC
(000 Omitted)

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St *Louis
Minneapolis
Kansas City
Dallas
San Francisco
N.Y.holdover#
and other b i l l s
Totals

G V R M N SECURITIES
OEN ET
Balance
Net
Mar. 14
Change
$ 21,509
$ 29075,923
5+*
34,593
27049,427
3128,349
999,770
15661,454
57619031,729
17,990
14525528,014
20424,613
32,861
323-

B N E S ACCEPTAN
A KR
CES
Net
Balance
Change
Mar. 14
$6,061+
$ 40,763
67,428
2,812+
1,71030,572
1,49527,465
203+
14,916
4089,521
1,07%.
36,476
9,660
1,091517+
10,641
19312,089
2913,668
48625,513
4.889

$396,232

$ 2 ,815-

1.475+

$303,601

$4,580+

BILLS D
ISCO TED
UN
Net
Balance
Chancre
Mar.14
$ 2,444+
48,182
13,352111,036
9,001+
51,362
2,432—
51,188
3,470+
27,845
4,05322,814
9,89951,058
993+
25,769
277♦
1,868
3,218+
11,062
312+
3,754
209+
66,358

$472,296

*>9,813-

* Due to temporary purchase.
C M E T O C A G S .TOC E D D M R H 14> 1928
O MN N H N E
NE
AC
Total earning assets of the System showed a decrease of $6,806,000 for
the current statement week*
The approximate changes, by c la ssifica tio n , consisted
of decreases of $2,800,000 in outright purchases of Government securities,
$9,800,000 in b i lls discounted and increases of $4,600,000 in outright purcahses of
bankers acceptances and y l , 250,000 in investments held under sales contracts*
The
latter increase consisted of $1,000,000 Government securities and $250,000 bankers
acceptances*



Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D
A uthority

Q ■

f

2
Money

Market

fo llo w in g exports of $27,000,000 of gold and some lo s s of
commercial funds to other d is t r i c t s la te in the previous week, c a ll
money renewed a t 4 l / 2 per cent Monday, compared with a clo s in g rate
of 4 1 /4 per cent on the preceding F riday, The Stock Exchange rate
was steady a t the 4 l / 2 per cent rate throughout the week and there '
was only a s lig h t recession from th is rate in the outside market on
March 15 and 16*
Large gains to the market on March 15 through the
redemption of maturing c e r t i f i c a t e s and in te r e s t payments by the Treas­
ury were o f f s e t to a considerable degree by the expedient of d eferrin g
f o r a few days the replacement of a la rge part of the sales from the
System Investment Account, and by a temporary sa le to a New York City
bank of a p a r tic ip a tio n fo r 0115,000,000 in the sp e cia l c e r t i f i c a t e
issued to th is bank by the Treasury to cover the overdraft here*
Conversely on March 16, a la rg e amount of income taxes was c o lle c t e d
and the p a r tic ip a tio n in the Treasury c e r t i f i c a t e was terminated*
Thus was -money held steady over the tax day.
The time money market was s lig h t ly more a c tiv e th is week*
P r a c t ic a lly a l l loans f o r 3 to 6 months1 periods were arranged at
4 5/Q per cent, but nom inally quotations continued to be 4 l / 2 bid ,
4 5/8 per cent asked*
The commercial paper market remained rather quiet during the
past week; both new supplies and d e a le rs 1 sa les were lim ite d in volume*
V/hile some paper houses reported that a la rg e r proportion of th e ir
sales was a t 4 l / 4 per cent than a t 4 per cent, others in d ica ted that
the Middle feste m markets were s t i l l taking paper p rice s principally
a t 4 per cent*

Government
S ecu rity
Market

Trading in United States Government L iberty Loan and Treasury
bonds continued in small volume. P rices of F ir s t 4 l / 4 s showed a
s lig h t fr a c t io n a l gain f o r the week while the other issu es re g iste re d
corresponding lo s s e s . IVhat l i t t l e preference there was in the demand
was f o r the long-term Treasury bonds*
The market f o r short-term c e r t i f i c a t e s of indebtedness and
Treasury notes (notwithstanding a f a i r demand f o r purposes of re in v e s t­
ment of March 15 m a tu ritie s) was a l i t t l e heavy, Dealers* o ffe r in g
p rice s at the close of the week were l/3 2 n d and 2/32nds le s s than the
previous week fo r the old issu es outstanding and th e ir o ffe r in g s of the
new 3 l / 4 per cent c e r t if ic a t e s maturing next December and 3 3/8 per
cent c e r t i f i c a t e s maturing March 15, 1929 were a t a discount of 2/32nds
and l/32nds re sp e ctiv e ly *

Bankers
Acceptances




D ealers’ o ffe r in g s of unindorsed bankers acceptances were at
the fo llo w in g ra te s : 3 l / 4 per cent fo r 30s, 3 l / 4 to 3 3/8 per cent
fo r 60s, and 3 l / 2 per cent fo r 90 and 120-day b i l l s *
Boston rep orts that there was a good supply of b i l l s in
th e ir d i s t r i c t during the past p eriod , and as a whole b i l l s moved freely
with short m atu rities in b e s t demand. D ealers’ sa les aggregated
06,500,000 over the previous week with lo c a l banks good buyers* O ffe r­
ings to the Reserve Bank were in greater quantity* In New York the
supply of b i l l s hold up in good Volume and was s u b s ta n tia lly in excess
of the demand* Dealers sales con sisted mainly of moderate orders fo r
fo re ig n accoun t, Buytiig f o r lo c a l account, w hile lig h t , improved
s lig h t ly . D ealers1 p o r t fo lio s increased m oderately, P hiladelphia
reports that th e ir b i l l market was more a ctiv e during the past p eriod .
O fferin gs were somewhat r e s t r ic te d as the supply was only fa ir * The
demand improved and was good, with ninety day b i l l s preferred r
Chicago reports that the b i l l market continued very quiet in th e ir
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
A uthority f-~ s Q .

{

3
OPERATIONS FDR ACCOUNT UNITED. STATES TREASURY
Transactions e ffe c t e d under a u th ority from the Treasury during the cur­
rent week con sisted of sales from the Open Market-:Account of 016,524,500 - 3 l / 3
per cent c e r t i f ic a t e s of indebtedness due- June 15* 1928 to account Mixed Claims
and 07,24-4,000 - 3 l / 8 per cent c e r t i f i c a t e s due June 15, 1928 to account A lien
Property Custodian and purchases from the Open Market Account in replacement of
lik e amounts 3 l / 4 per cent c e r t if ic a t e s due December 15, 1928 which the Treasury
had received in exchange f o r maturing March c e r t if i c a t e s under recent Treasury
offe rin g * A dditional tran saction s were a sa le of $750*000 - 3 l / 8 per cent
c e r t if ic a t e s due June 15, 1928 and a purchase of $1, 705,500 - 3 l / 8 per cent
c e r t if ic a t e s due June 15, 1928 f o r account A lien Property Custodian and purchases
of ^35,000,000 aggregate amount 3 per cent c e r t i f i c a t e s maturing March 15, 1928
1 or redemption*

SYSTEM PURCHASES 0^ BANKERS ACCEPTANCES
Purchases of bankers acceptances during the current statement week and
"th e amount each bank now holds in excess or short of i t s pro rata share under the
apportionment plan put in to e f f e c t fo r the ea rly part of the year:
B i l l s Short
B il ls Over
B ill s E n title d
Pro Rata Share
Pro Rata Share
B ills Acauired
to Acquire
Boston

$6, 49 5,000

0 36,193,000

0 29,698,000

104, 447,000

107,070,000

0

2, 623,000

P hiladelphia

37,903,000

39,195,000

.0

1,292,000

Cleveland

42,171,000

43, 435,000

0

1,264,000

Richmond

20,781,000

21,211,000

0

430, 000

A tlanta

16, 546, 000

16,970,000

0

424,000

Chicago

60,353,000

60,404,000

0

51,000

S t, Louis

16,887,000

16,887,000

0

Minneapolis

16, 416,000

16,971,000

0

555,000

Kansas City

20, 460,000

21,209,000

0

749,0 00

Dallas

17,654, 000

16,9 69,000

685,000

0

San Francisco

35r159.000

34, 9 51.000

208.000

0

$424, 970, 000

$424, 970,000

$7, 388,000

New York

Totals

0

0

0

07, 388,000

The overages shown in the above statement are being adjusted in the usual
manner by making d is tr ib u tio n to other Federal reserve banks*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D
A uthority

Q . 10^ 0 (

OIL.-.

SPECIAL IN
VESTM T A C U T - G V R M N SECURITIES
EN C O N
OEN ET
Transactions consummated in the System Account during the current statement week consisted of
Exchange with the
Fiscal Agent of the
B ritish Government of 030,000,000
3 l /4 f» certificates of indebtedness due
December 15, 1928 for a like amount of 3%
certificates of indebtedness maturing March 15,
1928* (The latter issue of certificates was
later sold to the Treasury as shown below)*
7,000,000 - 3 l/2% Treasury notes due 1930-32 for a like
amount of 3 1/S% certificates due June 15,1928*
Exchange in the
market of
3 l/2/o Treasury notes due 1930~32 for a like
5,000,000
amount of new 3 3/& certificates of indebted­
%
ness due March 15, 1929* (Delivery of the
latter issue was deferred u n til after March 15).
Total Exchanges
042,000,000
Sale to foreign
correspondent of
Sales to Treasury
for redemption on
March 8 of
March 12, 13 and 14 of
Total Sales

0 1,180,000 - 3 1/8/' certificates of indebtedness due June 15,
1928*
4,125,000

- 3 l/4/o certificates of inde
March 15, 1928, and on
30,000,000 - aggregate amount of 3$ certificates of indebtedness maturing March 15, 1928.
035 , 305,000 - These sales were replaced by purchases in the
market of other short-term Government securities.

The se transactions le ft the to tal holdings in the account at the close of
business March 14 temporarily at 0269,446,000*
The participation by the Federal
reserve banks and the classification of issues \ ? g t o as follows:
PARTICIPATION BY FEDER.iL R
ESER
VE B K
AN S

RECAPITULATION O H LD G BY MATURITIES
F O IN S

Boston
N York
ow
Philadelphia
Cleveland
Ric hm
ond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco

0 20,801,000
71,538,500
19,407,500
22,461,500
7,19 6,000
6,325,000
41,526,500
13,719,500
10,405,500
18,281,000
14,618,500
23.165.500

June
Dec.
Mar.
Dec.

Totals

0 2 69 , 445,000
V

15,
15,
15,
15,

3 l/8/o C/I
3
"
3 1/2% t /n
3 1/2% "

010 5,632,000
29.139.000
60.175.000
73.500.000

0 2 69 , 44 6,000

Other transactions in the account after the close of the statement week,
in connection with March 15 operations which included heavy sales of June 15
certificates to foreign correspondents, woj*e outlined in Mr, Case’ s letter to
Governor Young, of the Federal Reserve Board, dated March 14, 1928, a copy of which
was sent to the governor of each Federal reserve bank.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

D E C L A S S IF IE D
A u th o rity f - ' , Q . 1 ( 7 ^ 0 (

H
as*

ITEMIZED STA
TEM T O TRANSACTIONS AFFECTING T E INVESTM
EN F
H
ENT A C U T O ALL
CON F
FED AL R
ER
ESER B N S F O M R ft T M R H 14. 1928
VE A K R M A flH
O AC
.......... .
G V R M N SECURITIES - SYSTEM INVESTM
OEN ET
ENT A C U T
CON
Purchases
0 5, 678, 500
19, 529,000
5,298,000
6,132,000
1, 9 64, 500
1, 726, 500
11, 337,000
3,746,000
2,840, 500
4, 990, 500
3.990,500
6.324.000

totals

Net Decrease
0 289,500
995,500
270,000
312,500
99,500
89,500
576,000
189,500
144, 500
254, 500
204,000
323,000

073,557,000

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City'
Dallas
San Francisco

Sales
0 5,9 63,000
20,524, 500
5,568,000
6, 444, 500
2,064,000
1,816,000
11,913,000
3,935, 500
2,985,000
5,245,000
4,194, 500
6, 647, 000
077, 305,000

03, 748,000

O E TRANSACTIONS IN G V R M N SECURITIES
TH R
OEN ET
Sales
Purchases
Issue
0
1,000,000* Fourth L/L 4 l /4 # bonds
358.500
291* 350
Misc* Gov't Set#

New York
Atlanta

—

Totals

---H |M -----------

Issue
Misc* Gov*t s ee#

0358,500

01, 291, 350

*Ter.iporary purchase*
B N ER ACCEPTAN
A K S
CES
(000 Onitted)

Boston
New York
Phila%
Cleve#
Richmond
Atlanta
Chicago
St* Louis
Minn#
Kan, City
Dallas
San Fran*
Totals

Holdings
Mar* 7
0 34,702
64, 616
32,282
28,9 60
14, 713
9,929
37, 553

io , m
10,124
12,281
13, 697
25f 999
029 5, 607

By
Allotment Jiaturitie s
f ron
Purchased
New York & Sales
O n Mkt*
w
0
U
0 7, 162 • *
0 h 101
988
0
9, 800 w
S
t
12, 704 A#
4|052
r
0
2# 342 R.
380 «
1, 699
3, 574
215 n
1,364
1, 376
105 «
1,172
1, 685
536 H
3.290
2*
6, 903
091
0
0
871
1,388
0
1, 658
0
1. 850
152 (I
501
1,
1* 682
*
1.632
670 1
3, 788
,

:)38, 066

012, 704

034, 9 61

Holdings
Mar*14
A 40,763
67,428

Other Holdings
dlose Mar# 14/28
Other
Sales
B ille
Contracts
0
19
0 6,171
545
30,152

30,572
27, 465
14,916
9, 521
36,476
9, 660
10, 641
12,089
13, 668
25r513

0
0
0
0
3,402
0
0
0
00„.~

24
1,226
13
282
36
11
7
9
9
18

0298,712

039,725

02,199

B ills held overnight by N.Y* for distribution to other F.R* Banks - - - -

2n69,0

Total - » - -

04,889

NOTE:

R* indicates Retained and A* indicates Allotted in the above statement,




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authorityf - ', Q ■ $ Q (
W

=t 1
P .l A T ,

f

6

MATURITIES AN R
D ATES O SILLS P R H D W E ENDING M R H 14. 1923
N
U C ASE
EK
AC
(000 Omitted)
1-30 days
3 1 /4 to 3 3/8 1
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Dallas
San Francisco

31-60 days
3 1 /4 to 3 l / z t

61-90 days
Over 90**day£
3 1/2 to 3 5/8 % 3 l /2 to 3 3/4#

0 3,402
10,827
666
0
0
50
1,168
228
___ m i

011,297

0

0 1,056
4, 280
1,129
380
65
3
540
268
72

016,945

Totals

$ 1,836
6, 510
547
0
150
52
828
486
888

07, 793

T^tal

0 7,162
22, 504
2#342
380
215
105
2,536
1,152
....JU
JSflL
038,066

868
887
0
0
0
0
0
170
106

$2*031

RECAPITULATION O PU C ASE AND SALES O G V R M N SECURITIES
F
RH S
F OEN ET
A D B K R ACCEPTAN
N AN E S
CES D R G WEK ENDING M R H 14. 1928
U IN
AC
(000 Qmitted)
(Excluding Sales Contracts)
Gove rnment
Securities
Purchased
Sold
Matured

'74,848
77, 663
0

— ~
Totals

) 2,815-

Banke rs
Acceptances

Total

038,066
0
34.9 61
0 3,105+
1,475+ (Net Change
_
1-day holdover
and other b i l l s )
0 4,580+

0112,914
77, 563
34.9 61
3
290+
1,475+ (Net Change
_____ K
1-day holdover
and other b i ll s )
0 1, 765+

(Including Sales Contracts)
Holdings
March 14. 1928

Within

Gov’ t Securities 3 14,752
B ills Purchased
142 x960
Totals




0157,712

16-30
davs

31-60
days

61-90

0
89,780

0
75.281

0

)89, 780

$75,281

030, 661

days

91 days6 months

Over 6
months

Total

0112,335

0278.444

0400,887

____ Sl ___

0107,691

J J& 32&

0278.444

0744,213

Reproduced from the Unclassified / Declassified Holdings of the National Archives

_
r-

D E C L A S S IF IE D

A uthority p ~ ' ( ) .

/

March 14, 1938.

Dear Hr. Matt©son:

I
ac2s»owle%e receipt o f and shall bring
to the attention o f this ugdbar* o f the Board* your
le tte r of March 13th, addressed to Governor Toung,
enclosing a report o f transactions la Government
securities and hanlcere acceptances, a« reported to
your Conmittee for the period from M
arcih 1 , 1938
to March 7 , 1928 Inclusive,
fery truly yours,

Walter L. Bddy,
Secretary*

Mr. W B. Matteson, Secretary,
.
O f«l Mftll^t Investment O om lttee,
O/o federal Reserve lank,




' Saw Y ork, If. T.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED

Q. W ^ O (

Authority

X

Fe d e r a l Re s e r v e Ba n k
of

New York

(

a

a. y
1

PERSON

4 192‘d

March l£ , 19&8

AL

Dear Governor Young:
i e are e n clo sin g , Tor your r i l e s , a, report o f trans­
a ctio n s in Government s e c u r it ie s and bunkers accentvoices <
as
reported to the Open market Investment Commit tee fo r the
Federal Reserve System f o r the p e rio d from .March 1 , la £6 to
March 7, 19 c8 in c lu s iv e , togeth er 'with da,ta received b / tne
Committee from the Federal reserve banks.

S ecretary, Open Market
Investment Committee

honorable Roy A. Young,
Governor, Federal Reserve Board,
Wasnin^ton, D. C.

iiiid.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

- F R SPECIAL CIRCULATION
O
. ^Y. INITIAL A D R T R T SE,
N EUN O
P iE S F A P O
X A E .S D R ,
Gov. Y o u n g // L'r. Hamlin ^ ^ Mr. Jamas*1
lir, P la tt
of

{

. A Y*S OF^/cE
R
*4’’ i-,
Mr. Mclitt-^siv

Ne w Yo r k

GOKFlDii.I^TlAL

&arch 1Z, 19E8

Dear Governor Young:
Enclosed i s a report o f triin saction e in Government
s e c u r it ie s and bankers acceptances as reported t o the Open Market
Investment Committee f o r the Federal Reserve System f o r tne p eriod
from March 1, 19£8 to &arch 7 , 1928 in c lu s iv e , togeth er with data
re ce iv e d by the Coijmittee from the Federal reserve banks.

S ecreta ry, Open Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.




End.

*N
aV

Authority f-~< Q .

Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D
A uthority /-~T Q ■ 1 0 ^ 0 (

J

/

CONFIDENTIAL
R P R O O E M R E IN
E O T F P N A K T VESTM T CO M
EN
M ITTEE W E E D D M R H 7, 1928
EK NE
AC
ll'LP' ft

rtf*

26
23
30
A p r.
27
May
25
June 29
July
27
Aug.
31
Sept, 28
O ct. 26
Nov » 30
£>ec» 28
-4928Jan*
25
Feb* 29
7
Mar*
Feb.
Mar.

&n n

«-P

D ___ ____ _

T? _ J _ —

H _____. 1, _

(000 Omitted)
G V R M N SECURITIES
OEN ET
Outright
Sales
Purchases
Contracts

TO
TAL
EAR IN
N G
ASSETS

-1927J an,

E « r*vi "i vt rr

$

972,249
985,326
1,040,034
1,005,577
988,510
1,071,130
95 3,931
1*058,786
1,167,632
1,214,759
1,380,515
1,598,842

$301,851
304,780
311,587
314, 332
302,349
367,140
380,559
469,954
484,054
507,245
543,757
558,699

1,173,926
1,244,929
1,224, 315

434,817
399,132
399,047

-P «

T

r

^ 6 .

JL927

B N ER ACCEPTAN
A K S
CES
Outright
Sal es
Contracts
Purchases

tO

D a te

BILLS
D
ISCO N
U TEI

914
426
41,515
3,993
19,571
9,261
4,457
2,860
10,298
3, 385
4,078
44,426

0269,362
243,934
184,755
194,007
171,907
183,163
157,291
118,189
172,030
243,249
288, 464
315,152

$32,465
36,255
52,654
47,892
64,263
32,955
12,094
66,939
70,118
57,862
66,276
70, 375

$365,157
397,929
456,023
443,553
428,620
477,311
398,130
400,524
430, 312
402,398
477,025
609,209

6,080
8,470
3,665

318,863
302,932
299,021

28,442
40,827
39,474

385,224
492,568
482,108

0

C A G S IN E R IN - ASSET H
HNE
AN G
OLDINGS (EXCLUSIVE O SALES CO TR
F
N ACTS)
___ _______________D R G W IK E D D M R H 7, 1928____________ _ _
U IN
E
NE
AC
(000 Omitted)
G V R M N SECURITIES
OEN ET
Balance
Mar*
7
&oston
$
New York
P h ila d e lp h ia
Cl e? ©1 and
Richmond
A tla n ta
Chicago
S t . Louis
M inneapolis
Kansas C ity
D a lla s
San F ran cisco
N, Y* hold overs
and other b i l l s

$399,047

0
0
0
0
0
880
0
0
0
0
0

BILLS D
ISCO N
U TED
N ei
Change

Balance
Mar*
7

Net
Ch ang.e

Balance
Mar*
7

$ 34,702
64,616
32,282
28,960
14,713
9,929
37,55 3
10,751
10,124
12,281
13,697
25,999

$

$ 45 , 738
124, 388
42,361
53,620
24,375
26,867
60,957
24,776
1,591
7,844
3,442
66,149

$ 9,50241,052+
17 , 39412,3645, 340414283,2352,3092,924795+
1,230+

$482,108

$10, 460-

59+
2,780+
4,9781,708+
1,3812241,6071,651611183+
792+
508+

3*414
1
0
0
CO
o

T o t a ls

21,799
75,918
34,86 3
49,739
8,448
9,926
62,030
31,919
18,135
28,269
24,817
33,184

Net
Change

B N ER ACCEPTAN
A K S
CES

511+

$299,021

$ 3 ,911-

C M E T O C A G S W E E D D M R H 7. 1928
O MN N H N E
EK NE
AC
Total earning assets of the System showed a decrease of 020,614,000 for the
current statement week. The approximate changes, by classification , consisted of
decreases of ^3,900,000 in outright purchases of bankers acceptances, Ol00,000 in
outright purchases of Government securities, $10,450,000 in b i lls discounted and
v6,150,000 in investments held under sales contracts* The la tte r decrease consisted
of ^1,350,000 bankers acceptances and ^4,800,000 Government securities#




Reproduced from the Unclassified / Declassified Holdings of the National Archives

_
f

,

D E C L A S S IF IE D

A uthority f ' , Q

/0$ 0 (

2

Money
Market

General steadin ess p rev a iled in the c a ll money market during
the week* The Stock Exchange rate remained a t 4 l / 4 per cent, w hile on
several days there were temporary d e clin e s to 4 per cent outside the
Exchange* On Friday, however, the tone of the market was s lig h t ly
firm er, r e fle c t in g c h ie f ly exports of n ea rly $24,000,000 of gold*
Nominal quotations of 4 l / 2 b id , 4 5/8 per cent o ffe r e d fo r
time loans of 2 to 6 months m aturity were the same as during the precede
ing week* Lenders were relu ctan t to arrange loans a t the lower rate,
however, and most of the actu a l trading was a t 4 5/8 per ccent.
Loans
f o r 4 to 5 months p eriod were in la r g e s t demand*
Commercial paper dealers g e n e ra lly reported a qu iet market
during the past week, as both the supply of new paper and the bank in vestment demand were rather small*
A fu rth er firm ing of rates was a ls o
in d ica te d ; w hile the range of o ffe r in g rates f o r prime names remained
4 - 4 l / 4 per cent,till© proportion of a ctu a l sa les a t the higher rate
in creased somewhat*

Government
Secu rity
Market

The market f o r United States L ib erty Loan and Treasury bonds
was q u iet and firm with the la t t e r mentioned bonds in b est demand. The
F ir s t 3 l / 2 s and 4 l / 4 s and 'Third 4 l / 4 per cent L ib erty Loan bonds
showed small fr a c t io n a l recession s in p r ic e fo r the week, w hile the
p rice s of Fourth 4 l / 4 s remained unchanged and Treasury bonds re g iste re d
gains of 3/32nds and 6/32nds<
Trading in the short-term c e r t i f i c a t e s of indebtedness and
Treasury notes was a ls o reported as b ein g qu iet, with the 3 l / 8 per cent
c e r t i f ic a t e s maturing next June 15 in b e s t demand* Dealers* o ffe r in g
p rice s at the end of the week were a t le v e ls to y ie ld about 3*30 per
cent f o r the c e r t i f i c a t e s maturing next June and December, and 3*51
per cent f o r the 3 l / 2 per cent Treasury notes due 1930-32*

Bankers
Acceptances




Dealers* o ffe r in g s of unindorsed bankers acceptances were at
the fo llo w in g r a te s ; 3 l / 4 per cent f o r 30s, 3 3/8 per cent f o r 60s and
3 l / 2 per cent f o r 30 and 120-day b i l l s *
Boston rep orts that the demand f o r b i l l s in th e ir d i s t r i c t
during the past p eriod was small and d i f f i c u l t to move a t o ffe re d p rice s ,
although to ta l sa les showed some in crea se over the previous week* The
supply of b i l l s was good and more than enough to f i l l orders, one dealer
shipping over $3*000,000 to th e ir o f f i c e s in other c i t i e s . B il ls up to
45 days were in b e st demand although there was some demand f o r 120s%
O fferin g s to Reserve Bank while moderate showed some in crease over the
previous week# In New York the b i l l market was a ctiv e * The supply
continued good though not in as heavy volume as during the previous
week* The demand which was about equal to the supply co n siste d c h ie fly
of orders f o r n in e tie s f o r fo re ig n accoun t. Sales fo r lo c a l account
were lig h t and mainly of sh ort b i l l s *
Dealers* p o r t fo lio s decreased
s lig h tly * P h iladelphia rep orts that th e ir acceptance market showed
l i t t l e change from the previous week* O fferin g s were not as p le n t ifu l
w hile the demand continued lig h t* Chicago reports that there was a f a i r
demand f o r short m atu rities and l i t t l e demand f o r 90-day b i l l s in th e ir
d i s t r i c t during the past period*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D
A uthority

Q . 1 (7 ^ 0 {

3
OPERATIONS F R A C U T UNITED STATES TR
O CON
EASU
RY
Transactions effected under authority from the Treasury during the
current week consisted of a sale of $150,000 par anount 3 l / 8 per cent certificates
of indebtedness due June 15, 1928 for account Alien Property Custodian and
y l , 500,000 aggregate par amount Fourth 4 l / 4 per cent Liberty Loan bonds for
account Government Life Insurance Fund, and a purchase of $4,125,000 - 3 l / 4 per
cent certificates of indebtedness due March 15, 1928 for Redemption*
\

SYSTEM PU CH
R ASES OF B K S ACCEPTAN
AN ER
CES
Purchases of bankers acceptances during the current statement week and the
amount each bank now holds in excess or short of its pro rata share under the
apportionment plan put into effect for the early part of the years

B ills Acauired
Boston
$ 29,031,000
N York
frw
94,647,000
Philadelphia
35,561,000
Cleveland
40,092,000
Richmond
19,202,000
Atlanta
15,269,000
Chicago
54,527,000
St. Louis
16,887,000
Minneapolis
15,028,000
Kansas City
18,802,000
Dallas
16,001,000
San Francisco _ 31*857.000
Totals

$386,904,000

B ills Entitled
to Acauire
$ 27,033,000
97,173,000
35,388,000
39,248,000
19,308,000
15,447,000
54,694,000
16,887,000
15,448,000
19,30 6,000
15,447,000
31.525.000
$386,904,000

B ills Over
Pro Rata Share
$1,998,000
0
173,000
844,000
0
0
0
0
0
o
554,000
332.000

B ills Short
Pro Rata Share
1 ■ o
2,526,000
0
0
106,000
178,000
167,000
0
420,000
504,000
0
......... <
?

§3,901,00©

$3,901,000

SPECIAL INVESTM
ENT A C U T - G V R M N SECURITIES
CON
OEN ET
There were no transactions in the System Account during the current
statement week, the to ta l holdings remaining unchanged at §273,194,000*
The par­
ticipation by the Federal reserve banks and the classificatio n of issues were as
follow s:
PARTICIPATION BY FED
ERAL R
ESER
VE B K
AN S
Boston
N York
ew
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minne apolis
Sansas City
Dallas
San Francisco
T otals




0 21,090,500
72,534,000
19,677,500
22,774,000
7,295,500
6,414,500
42,102,500
13,909,000
10,550,000
18,535,500
14,822,500
23.488.500
&273,194,000

RECAPITULATION OF H LD S BY , MATURITIES
O ING

Mar. 15, 1928 - 3 l /4 ^
June 15, 1928 - 3 1/8^
Dec, 1 5 , 1 9 2 8 - 3 1/4^
Mar. 15, 1932 - 3 l/2%
Dec. 15, 1932 - 3 l/2%

C /l
w
"
yfo
"

& 4,125,000
82,380,000
41,0*4,000
63,175,000
82,500,000

r.
... -.-......... - V
$273,194,000

Reproduced from the Unclassified / Declassified Holdings of the National Archives

dECLASSIFIED

_

r

Authority

Q.

(

.t*

4
ITEM
IZED STATEM T O TRANSACTIONS AFFECTING TH INVESTM
EN
F
E
ENT A C U T OF aLL
CON
____________ FEDERAL R
ESERVE B K F O M C 1 TO M R H 7. 1928 ____________
AN S R M flR H
AC
G V R M N SECURITIES
OEN ET

Purchases
Issue
0 575,000 Dec* 15/28 C/1
267,700 Misc* GovH Sec,
450.000 “
"
,T

N York
ew
Atlanta
Dallas
Totals

£

Sales
575,000
355,700
450.000

Issue
Dec. 15/28 C /l
Misc. GovH Sec.
*
"

$1,380,700

01,292,700

BAN ER ACCEPTAN
K S
CES
(000 Onrtted)

Boston
New York
Phila.
Cleve *
Richmond
Atlanta
Chicago
St.Louis
Minn.
Kan.City
Dallas
San Fran*

Recfd By Allotment
Other Holdings
Close Mar.7/28
Matur­
Regular From Boston
Sales Other
HoIdings Purchased
itie s & Holdings
from
d Phila.
t
Mar. 7 Contracts B ills
Feb. 29 O n Mkt.
w
N.Y.
Sales
Port.
7,462 $ 19
0 34,643 0 4,015 R $ 0
b 3,956* 0 34,702
0 o
545
26,868
61,836
64, 616
7,329 "
0
2,000 Phila. 6,549
11,037 A
24
0
37,260
5,906**' 32,282
928 R
0
0
0
1,194
28,960
27,252
3,257
1,909 "
2,056 1,000 B
0
13
14,713
16,094
244 "
2,559
934
0
u
318
0
9,929
10,153
107 "
818
400
1,549
36
37,553
3,919
39,160
6,313
1,738 *
2,968
0
11
0
10,754
12,402
0
0
0
1,651
7
0
10,124
600 ii
1,978
10,735
767
0
0
9
12,281
12,098
1,557
0
800
940
400
9
13,697
1,038
571
1,259 "
12,905
0
is
825
25.999
2.476
25.491
1,001 "
0
1.983

$38,789 0295,610 039,474 $2,203
$11,037- 04,800
B ills held over night by New York for distribution to other F.R, Banks - - - - 1.211
Tota l • « * - * < 3,414
* • *
•$
Totals

£300,029 029,567

* Includes £2,800,000 sold to other Federal reserve banks
**Includes $2,000,000 sold to Federal Reserve Bank of New York
NOTE; R. indicates Retained and A. indicates Allotted in the above statement.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED

Q. l O $ Q f

Authority

5

MATURITIES A D RATES O BILLS P R H SE .> E K ENDING M R H 7. 1928
N
N
U C A D JE
AC
(000 Omitted)
1-30 days
3 1 / 4 - 3 3M
Boston
$
650
N York
ew
7,663
Philadelphia
632
Cleveland
222
Richmond
0
Atlanta
30
Chicago
669
Dallas
798
San Francisco
285
Totals

$10,949

31-60 days
61-90 days
3 1 /4 *- 3 l / 2 ‘/0 3 1 /2 - .3 S M

Over 90-days
3 1 / 2 - 3 3/4/o

Total

923
6,182
296
1,087
0
67
595
410
378

$2,436
3,809
0
600
244
10
474
9
18

$

42
320

$ 4,015
18,366
928
1,909
244
107
1,738
1,259
l f001

$9,938

$7,600

$1,080

$29,567

$

6
712
0
0
0
0
0

RECAPITULATION O PU CH
F
R ASES A D SALES OF G V R M N SECURITIES
M
OEN ET
A D B M E S ACC
N A CR
EPTAN
CES DURING « K ENDING M R H 7. 1928
AC
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured

Bankers
Acceptances
$29,567
0
33.989
$ 4,422511+(Net Change
1-day holdover
& other b i l l s )

01,293
1,381
0

Totals

T o ta l

88—

$ 3,911-

$30,860
1,381
33.989
$ 4,510511+(Net Change
________ , 1-day holdover
& other b i lls )
$ 3,999-

(Including Sales Contracts)
HoIdings
March 7. 1928

Within
15 davs

(jrovH Securities
B ills Purchased

$ 17,888
124^030

T ota ls




£141,918

16-30
davs

61-90
davs

91 days- Over 6
6 months months

) 0
92.079
$91,920

31-00
davs

f 0
27.230

$83,440 $301,384 $402,712
3.236
0
338.495

$92,079

$27,230

$86,676 $301,384 $741,207

Total

Reproduced from the Unclassified IDeclassified Holdings of the National Archives

DECLASSIFIED
AuthorityJf-', 0 .

f

Y




m m § , xm <

Wmt Hr. Hftttcsom
*0 wMI ft i* W l * IOn Om w l* IJMKWHEr* OX la p Jjpft»n*t /v U T

l ottsr of
a4&rfr*#«& to <*mraor Ycrang,
iiaAlotltkg & r#port of fesw W B In Oov«ram«at
"
oM ftlM i
sMKSurit.i& 9 And IwEdBSiNi &Q{^ptKioit§ mi r^poi'tod to

your CoomlttM for U i period from jyfef«**y 23, X93S,
m
to W km & f 39, ift30f laolu«iir».
T«iy %mXf ym m t

(Si<?^'d^ ' !&1'" '1 L ' ’
I». M Sy,
i

Mr* f* B* Mattowm, SwraWry,

•7o J»d*iml KnMwvt Bank,
l i t Yoifc, I . T.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
r-- "

Authority

FERSQI

AL

T0 •

(

March 5, 19£8

$ s*
Dear Governor Young:
1© are e n clo sin g , f o r your f i l e s , a rep o rt o f trans­
a ction s in Government s e c u r it ie s and bankers acceptances as
reported to the Open Market Investment Goaanittee fo r the
Federal Reserve System f o r the p e rio d from February £3, 19£8
t o February £9, 1928 in c lu s iv e , togeth er with data received
by the Coamittee from the Federal reserve banks.
iry tru ly yours,

W B. Matteson
.
S ecretary, Open Market
Investment Coiwaittee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

PLEASE REAPf
GOY.
f
U t.

Q . 10^? 0 (

^ f m SPECIAL CIRCULATION
tPTLY, INITIAL AND RETURN TO
Mr* Samliis
Mr. James
Mr, M i l l e r ^

REfAB¥fS OFFI
Mr. MeIntOL

F e d e r a l R relsevE B a n k "
o f NEvy Y o r k

March 5 , 1928

C0J3FIDMTIM,

Dear Governor Young:
Enclosed i s a re p o rt o f tran ©action 8 in Government
s e c u r it ie s and bankers acceptances as reported to the Open
Market Inv^tm ent CoBasittee f o r the Federal Reserve System
f o r the pericM from February 23, 1926 to February 29, 1328
in c lu s iv e , togeth er # ith data received by the Committee from
the Federal reserve banks.
sry tru ly yours,

I . E. Matteson
Secretary, Open Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D
A uthority

Q.

{

CONFIDENTIAL
REPORT OF O
PEN M
ARKET INVESTMENT COM ITTEE ’M E ENDED FEBRUARY 29, 1928
M
EK
Holdings of Earning Assets of Federal Reserve Banks from January 26^ 1927 to Date
(000 Omitted)
BILLS
BANKERS ACCEPTANCES
GOVERN EN SECURITIES
M T
TOTAL
Sales
O utfight
Sales
Outright
EARNING
DISCOUNTED
Contracts
— 27
19 *
Purchases
Contracts
Purchases
ASSETS.
Jan* 26
Feb, 23
Mar* 30
Apr. 27
May
25
June 29
July 27
Aug* 31
Sept* 28
Oct., 26
Nov* 30
Dec* 28
-1928Jan* 25
Feb* 22
Feb* 29

972, 249
985, 326
040, 034
005, 577
988, 510
071, 130
953, 931
058, 786
167, 632
214, 759
380, 515
598, 842

$301, 051
304, 780
311, 587
314, 332
302, 349
367, 140
380, 559
469, 954
484, 054
507, 245
543, 757
558, 699

i , 173, 926
i , 216, 283
244, 929

434, 817
399, 092
399, 132

e

i,
i,
h
i,

914
426
41,515
3,993
19,571
9,261
4,457
2,860
10,298
3, 385
4,078
44, 426

$269, 362
243,934
184,755
194,007
171,907
183,163
157,291
118,189
172,030
243,249
288, 464
315,152

$32, 465
36, 255
52, 654
47, 892
64, 263
32, 955
12, 094
66, 939
70, 118
57, 862
66, 276
70, 375

$365, 157
397, 929
456, 023
443, 553
428, 620
477, 311
398, 130
400, 524
430, 312
402, 398
477, 025
609, 209

6,080
2, 420
8,470

318,863
315,424
302,932

28, 442
37, 803
40, 827

385, 224
461, 044
492, 5 68

0

CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
__ ________________ DURING W
EEK ENDED FEBRUARY 29, 1928____________ „
(OOO Omitted)
G VERN EN SECURITIES
O
M T
Balance
Net
Feb. 29
Change
Boston
$ 21, 798
New York
75, 918
P hiladelphia
34, 863
Cleveland
49, 740
Richmond
8, 448
Atlanta
10, 014
Chicago
62,- 030
St* Louis
31, 918
Minneapolis
18, 135
Kansas City
28, 269
Dallas
24, 816
San Francisco
33, 183
N*Y* holdovers
and other b i l l s
Totals

0399, 132

BAN
KERS ACCEPTANCES
Net
Balance
Change
Feb. 29

$40+

$ 34, 643
61,836
37,260
27,252
16,094
10,153
39,160
12, 402
10,735
12,098
12,905
25,491

1, 796+
6,0802,29 6+
2 ,2 1 2 2 ,7 3 3 6553031 ,8 0 9 5107421 ,0 0 2 2,931+

2,903

0
0
0
0
0
41+
0
0
0
0
10

012,492-

$ 55,240
83, 336
59,755
65,984
29,715
26, 908
61,385
28,011
3,900
10,768
2, 647
64,919

$11,858+
4 ,5 1 0 7,720+
11,382+
1,524+
2,2014331 ,2 4 0 1,03 62,558+
1 ,3 2 1 7,223+

0492,568

$31,524+

3. 469-

$302,932

BILLS DISCOUNTED
Net
Balance
Change
Feb„ 29

CO M T O CH GES W
M EN N
AN
EEK ENDED FEBRUARY 29, 1928
Total earning a ssets of the System showed an in crea se of $28,646,000 fo r
the current statement week* The approximate changcs, by c la s s if ic a t i o n , con sisted
of a decrease of )1 2 ,500,O O in ou trigh t purchases of bankers acceptances, and in ­
O
creases of $40,000 in ou trig h t purchases of Government s e c u r it ie s , 731,500,000 in
b i l l s discounted, and :)9,100,000 in investments held under sales c o n tra cts . The
la t t e r increase co n siste d of $.3,050,000 bankers acceptances and 6, 050,000 Govern­
ment se cu ritie s*




Keproduced from the Unclassified / Declassified Holdings of the National Archives

---------------------------

~~~~ DECLASSIFIED
AuthorityF~; Q.

. '■
*

1

2

Money
Market

Call money started the week at 4 l / 4 per cent but an inflow
of commercial funds from other d istric ts was acconpanied by a rapid rise
in reserve requirements of the member banks as the fir s t of March ap­
proached* and the c a ll rate was advanced to 4 l / 2 per cent on Tuesday*
This rate was maintained until Friday, March 2, when the new loan rate
on the Exchange eased to 4 l / 4 per cent during the afternoon.
In a rather dull tine money market, 60-day loans were placed
at 4 l / 2 per cent throughout the week, 90-day money at 4 l / 2 and 4 5/8
per cent, and longer maturities up to 6 months at 4 5/8 per cent*
Slightly firmer conditions prevailed in the
market during the week just closed.
Prime paper was
equal proportions at 4 and 4 l / 4 per cent*
Both the
supplies of new paper and the current bank investment
ported as being moderate*

commercial paper
sold in about
available
demand were re­

Government
Security
Market

The market for United States Government securities continued
quiet with the Treasury bonds and the 3 l / 4 per cent certificates of
indebtedness due December 15, 1928 in best demand*
Prices of Liberty
Loan and Treasury bonds were sligh tly irregular while prices of short­
term certificates of indebtedness and Treasury notes were approximately
unchanged from the previous weekt s close.

Bankers
Acceptances

Dealers1 offerings of unindorsed bankers acceptances were
at the following rates: 3 l / 4 per cent for 30s, 3 3/8 per cent for
60s, 3 l /2 per cent for 90s and 3 5 /8 per cent for 120-day b ills *




Boston reports that the b i l l market in their d istric t was
very quiet during the past period*
Sales by dealers aggregated only
$3,800,000 of which amount $2,800,000ms to the reserve bank*
There
was practically no demand for b i l l s from local banks and as usual sales
to out-of-town banks were negligible*
The supply of b i l l s was better
than for the past three weeks, but were hard to move with short maturi­
tie s in fcest demand.
In M York the supply of b i l l s was good and
ew
moderately in excess of the demand*
Dealers* sales consisted mainly
of orders for 90-day maturities for foreign account*
Purchases for
local account improved moderately on buying of 60-days and longer b i l l s
for corporations.
Dealers1 portfolios increased moderately*
Philadelphia reports that their b i l l market was quiet during the past
week.
Offerings from both banks and dealers continued moderately
heavy with the demand light*
Chicago reports that their b i l l market
was sligh tly more active than for the past few weeks with very l i t t l e
demand for 90-day b ills *
OPERATIONS F R A C U T UNITED STATES TR
O CON
EASU Y .
R
Transactions effected under authority from the Treasury
during the current week consisted of sales to the New York market of
$1,000,000 aggregate amount Fourth 4 1 /4 per cent Liberty Loan bonds
for account Government Life Insurance Fund, $550,000 - 3 l / 8 per cent
certificates of indebtedness due June 15, 1928 for account Alien
Property Custodian, and a purchase of $485,900
3 l / 8 certificates
due June 1$, 1928 for account Mixed Claims*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D
A uthority

Q . 10$ 0 (

SYSTEM PURCHASES OF BANKERS ACCEPTANCES
Purchases of bankers acceptances during the current statement week and
the amount each bank now holds in excess or short of i t s pro rata share under the
apportionment plan put in to e f f e c t f o r the ea rly part of the year:

D il ls Acquired
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals

B i l l s E n title d
to Acquire

B i l l s Over
Pro Rata Share

B i l l s Short
Pro Rata Share

$ 27,816,000
85, 318,000
36, 633,000
35,127,000
18,024,000
13,944,000
49,821,000
16,887,000
13, 661,000
17,062,000
14,171,000
2 8 .873t O O
O

0 24,9 63,000
89,486,000
32,431,000
35,99 6,000
17,830,000
14,264,000
50,259,000
16,887,000
14,265,000
17, 828,000
14,264,000
28.864.000

$2,853,000
0
4,202,000
0
194,000
0
0
0
0
0
0
9.000

0

0357, 337,000

0357,337,000

$7,258,000

07,258,000

0

4,168,000
0
869,0000
320,000
438,000
' 0
604,000
766,000
93,000
0

The overages shown in the above statement are being adjusted in the usual
manner by making d is tr ib u tio n to- other Federal reserve banks*

SPECIAL INVESTMENT ACCOUNT - GOVERN EN SECURITIES
M T
The only tra n sa ction s in the System Account during the current statement
week con sisted of the purchase from a fo re ig n correspondent of 01*875,000 par value
3 l / 4 per cent c e r t if ic a t e s of indebtedness due March 15, 1928 ( f o r which issu e
there was no demand in the market), and a sale to the market of a l i k e amount of
3 1/2 per cent Treasury notes due March 15r 19 32* These transactions l e f t the
to ta l holdings in the account a t the clo s e of the statement week unchanged a t
$273,19 4,000*
The p a r tic ip a tio n by the Federal reserve banks an:l the c l a s s i f i c a ­
tio n of issu es were as fo llo w s :
PARTICIPATION BY FEDERAL R
ESERVE BANKS
Boston
0 21,090,500
New York
72.534.000
Philadelphia
19, 677,500
Cleveland
22.774.000
Richmond
7, 295, 500
Atlanta
6, 414, 500
Chicago
42,102,500
S t. Louis
13.909.000
Minneapolis
10.550.000
Kansas City
IS, 535, 500
Dallas
14, 822, 500
San Francisco
23. 488. 500
to ta ls




> 2 7 3 ,1 9 4 , 0 0 0

RECAPITULATION OF HOLDINGS BY MATURITIES
Mar*
June
Dec,
Mar*
Dec*

1$, 1928 - 3
15, 1928 - 3
15. 1928 - 3
1932 - 3
15, 1932 - 3

l / 4 f C /l
l/8/o ”
l/4 /, *
l/2 fo T/N
l/2% *

$ 4,125,000
82,330,000
41.014.000
63.175.000
82, 500,000

5 2 7 3 ,1 9 4 ,0 0 0

Reproduced from the Unclassified/Declassified Holdings of the National Archives

'

~~

DECLASSIFIED

Authority f~ . Q .

T

4
ITEMIZED STA M N O TRANSACTION AFFECTUM TH IlTOSTI/iEi/r A C U
TE E T F
E
C O iJT OF iiLL
_______ FED AL R
ER
ESERVE B K F O FE R AR 23 TO FE R A Y 29. 1928
AN S R M B U Y
BUR
G V R flE T SECURITIES - SYSTEM IN
OKM N
VESTM T A C U T
EN C O N
Bo ston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S i . Louis
Minneapolis
Kansas City.
Dallas
San Francisco

$

Totals

Purchases
145,000
498,000
135,000
156,500
50,000
44,000
289,000
95,500
72,500
127,000
101,500

4

Sales
145,000
498,000
135,000
156,500
50*000
44,000
289,000
95,500
72,500
127,000
101,500
161.000

^1,875,000

$1,875,000

O H R TRANSACTIONS IN G V R N SECURITIES
T E
O E lt.fE T
Purchases
$249,750
62X00

Atlanta
Pallas

Issue
Misc* Gov’ t Sec,
Misc* GovH Sec*

$311,750

T o ta ls

Sales
1208,750
... §3,400
$271,150

B K S ACCEPTAN
AN ER
CES
(000 Onit ted )

Boston
New }fork

Holdings
Feb.22
% 32,847
67,916

Philiu
Cleve.
Richmond
Atlanta
Chicago
St'Louis
Minn.
Kan.City
Dallas
San F^an*,

34,964
29,464
18,827
10,808
39,463
14,211
11,245
12,840
13,907
22.560

Purchased
Ow Mkt •
n
6 3,407 R
4,869 "
15,894 A
4,641 R
252 "
918 "
98 "
2,109 "
0
0
0
275 "
1.649 "

I?su
Misc. GovH Serf,
Misc* GovH Sec.

By A llo t- Maturnent fron it ie s k Holdings
Feb. 29
N York
ew
Sales
$ 1,611
§ 34,643
% 0
10,949
61,836
0
0
2,531
1,320
869
3,804
988
1,112
1,391
776
3.1Q3

2,345
4,995
4,971
1,622
6,216
2,797
1,622
2,133
2,053
1.821

37,260
27,252
16,094
10,153
39,160
12,402
10,735
12,098
12,905
25*491.

Other Hpidings
Close Feb. 29/28
Other
Sales
Contracts
B ills
V 4,843
$
19
33,080
592
0
0
0
0
2,904
0
0
0
0
o;

24
807
13
361
35
11
8
9
9
M

*>40,827
^1,906
^300 ,029
^309,052
£34,112
$43,135
$15,894
Total 8
R. Banks — - 997
B ills held over night by New York for distribution to other F.
ft • <
* m
$2,903
Total
-■

NOTE:

R, indicates Retained and A. indicates Allotted in the above statenent.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

~~
r

I

d e c l a s s if ie d

A u th o rity / ^

O-

f

r

5
MATURITIES AND RATES O BILLS PURCHASED W K ENDING FEBRUARY 29.1928
N
EE
(000 Omitted)
1-30 days
3 l / 4 to 3 3/Q%

0

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Dallas
San Francisco

1,731
10,170
1,586
O
345
15
1.007
52
1.189

0 1 6,095

T otals

31-60 days
3 1 /4 to 3 5/Si

0

61-90 days
3 1 /2 to 3 5/Bi

Over 9 0 -days
3 i/ z i

485
6,018
1, 768
252
400
51
747
79
338

01,176
3,847
1,287
0
173
32
355
81
50

0

010,138

07>001

Total

0

0878

15
728
O
O
0
0
0
63
72

3,407
20,763
4, 641
252
918
98
2,109
275
l t 649

034,112

RECAPITULATION OF PURCHASES AND SALES OF GOVERN EN SECURITIES
M T
AND BANKERS ACCEPTANCES DURING W
EEK ENDING FEBRUARY 29, 1928
( 00Q om itted)
'
(Excluding Sales C ontracts)
Government
S e cu ritie s
Purchased
Sold
Matured

02,187
2,147
0

Totals

40+

Bankers
Acceptances

^otal

$34,112
0
43 >135
09,0233 ,469- (Net Change
___ ___ 1-day holdover
and other b i l l s )
012, 492-

036,,299
2, 147
43(,135
0 8,, 983—
3,r469-

\

^

- -

— * _j -

1-day holdover
and other b i l l s )

012,452-

(In clu d in g Sales C ontracts)
Within
1 5 -days

16-30

21,307
111^382

O
92. 357

0132, 689

0^2,357

Hoidin 38
February 29.1928
Gov’ t S e cu ritie s
B ills Purchased
Totals




0

31-60
davs

61-90
days

91 days6 months

Over 6
months

Total

084,864

0301,431

0*07*602
...Mi x 111

0107,092 £29,762 088,030

0301,431

0751,361

O
107^092

Reproduced from the Unclassified / Declassified Holdings of the National Archives

~

DECLASSIFIED

Authority

Q ■/ 0 ^ C (

February 28, 19:38.

Dear Mr. Matteson:
I
acknowledge receipt o f and shall bring to
the attention o f the members o f the Board, your le tte r
o f February 2?tht addressed to Governor Young, enclos­
ing a report o f transactions In Government securities
and bankers acceptances, as reported to your Coraaittee
for the period from February 16f 1928 to February 21,
1928, inclusive.
Very truly yours,

Walter X Eddy,
*.
Secretary.

Mr. W B. L!atteson, Secretary,
.
Opan Market Inyestaont Comnitta*,
c/o Federal Reserve Bank,
Hew York, IU Y.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authorityf-~, 0 .

(

F e d e r a l R e s e r v e Ba n k

( <
9
"\
w

o f N ew Y o rk

PERSONAL

\

February 27, 1928

Dear Governor Young:
W are enclosing, for your f i l e s , a report of trans­
e
actions in Government securities and bankers acceptances as re­
ported to the Open Market Investment Committee for the Federal
Reserve System for the period from February 16, 1S£8 to February
21, 1928 inclusive, together with data received by the Committee
from the Federal reserve banks.

S ecretary, Open market
Investment CoBunittee

Honorable Roy A. Young,
Governor, Fe.deral Reserve Board,
Washington, D. C.




&
.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority f-~t 0 . W ^ O (

^

n & A S I RIAT
^ °V .

Young/

Mr. Platt

FOR SPECIAL CIRCULATION

10M7>TLY. INITIAL
I^r*

D RE-TUSH S
Mr. t o e a /

SGRETARY*S
Mr. Molriics

Mr, Miller M /\ Mr - Cunni n
F e d e r a l R e s e rv e B a n k
of

/

/'

New York
/

CONFIDENTIAL

February 27, 1928

Dear Governor Young:
Enclosed i s a report of transactions in Government
securities and bankers acceptances as reported to the Open
M&rket Investment Committee for the Federal Reserve System
for the period from February 16, 1928 to February 21, 1928
inclusive, together isith data received by the Committee from
the Federal reserve banks.

/ifery truly yours,
—

I . B. Matteson
Secretary, Open Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.

E ncl.




. ------------------

Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D
A uthority f-~ t Q . W $ Q j

CONFIDENTIAL
R PO T of O
E R
PEN M R E IN V E S T M E N T C M ITTE v K E D D FE R AR 22, 1928
AKT
O M
E ffiE N E
BU Y
Holdings of Earning Assets of Federal Reserve Banks from January 26, 1927 to Eat %
(000 Omitted)
total

-1927.
Jan, 26
Feb, 23
Mar. 30
Apr* 27
M
ay
25
June 29
July 27
Aug, 31
Sept , 28
Oct* 26
Nov, 30
Dec * 28
-1928Jan. 25
Feb » 15
Feb. 22

EARNING
ASSETS
$ 972,249
985,326
1,040,0 34
1,005,577
988,510
1',071,130
953,931
1,058,786
1*167,632
1,214,759
1,380,515
1,598,842
1,173,926
1,244,810
1,216,283

G V R M N SECURITIES
OEN ET
Outright
Sales
Purchases
Contracts
$301,851
$
914
304,780
426
311,587
41,515
314,332
3,993
19,571
302,349
367,140
9,261
4,457
380,559
469,954
2,860
484,054
10,298
507,245
3,385
543,757
4,078
558,699
44,426
434,817
401,138
399,092

BAN ER ACCEPTAN
K S
CES
Sales
Outright
Contracts
Purchases
$32,465
$269,362
36,255
243,934
52,654
184,755
47,892
194,007
171,907
64,263
32,955
183,163
12,094
157,291
118,189
66,939
70,118
172,030
57,862
243,249
66,276
288,464
70,375
315,152

6,080
7,295
2,420

318,863
323,006
315,424

28,442
31,781
37,803

BILLS
DISCO N
U TED
$365, 157
397, 929
456, 023
443, 553
428, 620
477, 311
398, 130
400, 524
430, 312
402, 398
477, 025
609, 209
385, 224
481, 090
461, 044

C A G S IN EARNING ASSET H LD G (EXCLUSIVE OF SALES CONTRACTS)
HNE
O IN S
_____ ____________ D R G .i/E K E D D FE R AR 22, 1928
U IN
E NE
B U Y
(000 Omitted)
BILLS D
ISCO N
U TED
G V R M N SECURITIES BAN ER
OEN ET
K S
Not
Balance
Net
Balance
Net
Balance
Feb.22
Feb.22
Change
Feb.22
Change
S to s s __
Boston
$10,426+
$ 43,382
$ 21,798
$ 32,847
$2,928+
$ o
New York
65,9642,27187,846
75,918
2,20067,916
Philadelphia
6,37452,035
34,863
2,558+
0
34,9 64
Cleveland
8,549+
54,602
49,740
0
1,74829,464
Richmond
2,872+
28,191
8,449
18,827
0
2,504Atlanta
3,632+
29,109
9,973
18954+
10,808
Chicago
14,053+
61,818
62,030
3,2110
39,463
St, Louis
6,942+
29,251
0
614—
31,918
14,211
1,704+
Minneapolis
4,936
18,135
1,1960
11,245
8,210
Kansas City
2,91328,268
100+
1,04312,840
197+
Dallas
3,968
70 624,817
13,907
0
6t831+
57,696
San Francisco
33,183
0
22,560
854N
#Y, holdovers
and other b i lls
1.268+
6*372
Totals

$399,092

$2,046-

$315,424

$ 7 ,582-

$461,044

$20,046-

C M E T O C A G S W E E D D FEB U Y 22, 1928
O MN N H N E
EK N &
R iiR
Total earning assets of the System showed a decrease of $28,527,000 for
the* current statement week.
The approximate changes, by classificatio n , consisted
of a decrease of $7,-600,000 in outright purchases of bankers acceptances, $2,050,000
in outright purchases of Government securities, ^20,050,000 in b i l l s discounted,
and a net increase of $1,150,000 in investments held under sales contracts.
The
latter item consisted of an increase of 06*000,000 bankers acceptances and a de­
crease of $4,850,000 Government securities*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D
A uthority f~ "; Q ■ j $ ^ ? 0 j

Money
Market

The New York City banks started the week with actual reserve
balances c lo s e to requirements, so that a fu rth er in flow of commercial
funds from other d istrictsw a s follow ed by a temporary drop in c a ll
money to 4 per cent on Tuesday-- A fte r the h olid a y, however, c a ll money
was steady a t 4 l / 4 per cent as outgoing tra n sfers and exports of
$14,000,000 of g old caused member banks to borrow an a d d ition a l
$50,000,000 a t the Reserve Bank on Friday in order to balance th e ir
reserve p o s it io n .
Time money was n ot in
week and on occasions i t became
at b e tte r than 4 l / 2 per cent*
were arranged a t 4 5/8 per cent

p a r tic u la r ly la rg e demand during the
d i f f i c u l t to lend 60 to 120-day money
Five and six months* loans, however,
throughout the p e rio d .

In the commercial paper market, the bank demand f o r paper
continued moderately a c tiv e , and the ch ie f ob sta cle preventing a larger
sales volume was the small amount of new paper that dealers were able
to o f f e r . The bulk of the prime paper moved at 4 per cent, with some
sa les of the sm aller names reported a t 4 l / 4 per cent.
Government
S ecu rity
Market

The market f o r United States Government s e c u r itie s was
rather in a ctiv e * P rices of L ib erty Loan and Treasury bonds showed
small fr a c t io n a l recession s from the previous weekTs clo s e , w hile
dealers* o ffe r in g p rice s f o r the short-term C e r t ific a t e s of
Indebtedness and Treasury Notes were approxim ately unchanged..

Bankers
Acceptances

Dealers* o ffe r in g s of unindorsed bankers acceptances were
a t the fo llo w in g r a te s : 3 l / 4 per cent fo r 30s, 3 3/8 per cent f o r
60s, 3 l / 2 per cent fo r 90s and 120-day b i l l s *




Boston rep orts that a c t iv it y in th e ir b i l l market slackened
considerably during the past p e rio d , The demand showed some increase
coming from the la rg e r lo c a l in s t it u t io n s . The supply, however,,
showed a sharp f a l l i n g o ff and b i l l s were hard to obtain to f i l l
orders* B i lls moved f r e e ly with 45 and 90-day m atu rities in b est
demand* O fferin gs to Reserve Bank were lig h t*
In New York the
supply of b i l l s held up w ell th is week and was con siderably in excess
of the demand which again d eclin ed to a moderate aggregate* Buying
of n in e tie s f o r fo re ig n accounts was in f a i r volume, w hile purchases
f o r lo c a l account were lig h t * D ealers1 p o r t fo lio s increased
m oderately.
P hiladelphia reports that while th e ir b i l l market
continued moderately a ctiv e , o ffe r in g s were not as hteary as the
previous week*
Very few new b i l l s came in to the market with the
demand m ostly f o r 90s which were very scarce*
Chicago reports that
the b i l l market in th e ir d i s t r i c t was very quiet with both the
supply and demand sm all.
OPERATIONS FOR ACCOUNT UNITED STAIES TREASURY
Transactions e ffe c t e d under a u th ority from the Treasury
during the current week co n siste d of purchases of $5,000,000 - 3 l / 4
per cent c e r t if ic a t e s of indebtedness due March 15, 1928 fo r Redemp­
tio n , and OlO,000,000 Third 4 l / 4 per cent L ib erty Loan bonds f o r
account Surplus Money and a sa le of $250,000 - 3 per cent c e r t if ic a t e s
of indebtedness due March 15, 1928, f or account A lien Property
Custodian.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority f T 0 ■ 0 ^ 0 (
/

3

SYSTEM PU CH
R ASES OF B C R ACCEPTAN
iiM E S
CES
Purchases of bankers acceptances during the current statement week and
the amount each bemk now holds in excess or short of its pro rata share under the
apportionment plan put into effect for the early part of the year!
B ills Over
Pro Rata Share

B ills Short
Pro Rata.Share

B ills Acauired

B ills Entitled
to Acauire

0 24,409,000

$ 22,625,000

N York
ow

80,449,000

80,805,000

Philadelphia

31,992,000

29,092,000

2,900,000

0

Cleveland

32,344,000

32,323,000

21,000

0

Richmond

15,786,000

16,161,000

Atlanta

12,977,000

12,929,000

48,000

Chicago

43,908,000

45,251,000

0

1,343,000

S t. Louis

15,899,000

16,162,000

0

263,000

Minneapolis

12*549,000

12,929,000

0

380,000

Kansas City

15,671,000

16*159,000

0

488,000

Dallas

13,120,000

12,929,000

191,000

0

San Francisco

24.121.000

24.859.000

0

$323,225,000

0323,225,000

Boston

Totals




01,783,000
0

.0

$4,943,000

fc

0
356,000

375,000
0

1.738.000
$4,943,000

Reproduced from the Unclassified I Declassified Holdings of the National Archives

~~

DECLASSIFIED

Authority f-", Q ■

"

j

SPECIAL INVESTM
ENT A C U m - G V R M N SECURITIES
C Q IT
OEN ET
Transactions consummated in th© System Account during the current state­
ment week consisted of
Sale to Treasury of
United States for Redemption $2,914,000

Exchange in the market of

Purchase from a foreign
correspondent of

3 per cent certificates of indebtedness
due March 15, 1928.
This sale was re­
placed by purchase in the market of a
like amount of certificates of indebt­
edness maturing next June and December,

1,500,000 - 3 l /2 per cent Treasury notes due 193032 for a like amount of certificates of
indebtedness maturing next June.

2,250,000 - 3 l / 4 per cent certificates of indebt­
edness due March 15, 1928.
As there •
was no demand for this issue of certif­
icates in the market they were taken into
the Account and a sale of a like amount
of 3 l / 2 per cent Treasury notes due
1930-32 was made to the market therefrom*

These transactions le ft the to ta l holdings in the Account at the close
of the statement week unchanged at $273,194,000*
The participation by the
Federal reserve banks and the classification of issues were as follows 1
PARTICIPATION B FED AL R
Y
ER
ESER
VE B N S
A K
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
T ota ls




$ 21,090,500
72,534,000
19,677,500
22,774,000
7,295,500
6,414,500
42,102,500
13,909,000
10 , 550,000
18,535,500
14,822,500
23.488.500
$273,194,000

RECAPITULATION O H
F OLD G BY MATURITIES
IN S
March
June
Dec.
March
Doc.

15,
15,
15,
15,
15,

1928
1928
1928
1932
1932

—
-

3
3
3
3
3

1 / 4/. C/I
l/8/£ 0
1/ 4^ ”
l / z f T/N
1/2$ ”

2,250,000
82.380.000
41.014.000
65.050.000
82,500 ,000

^ 2 7 3 ,1 9 4 ,0 0 0

Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D
A uthority jp T Q • W ^ O (

5
ITEMIZED STATEM
ENT OF TRANSACTIONS AFFECTING TH INVESTMENT ACCOUNT OF ALL
E
_______ FEDERAL RESERVE BANKS FRO FEBRUARY 16 TO FEBRUARY 22, 1928_________
M
GOVERN EN SECURITIES
M T

-

SYSTEM INVESTMENT ACCOUNT
Sales
514,500
1,769,000
480,000
555,500
178,000
156, 500
1,027,000
339, 500
257,500
452,000
361, 500
573.000

Purchases
0 514,500
1,769,000
480,000
555,500
178,000
156, 500
1,027,000
339,500
257,500
452,000
361,500
573.000

Boston
New York
P hiladelphia
Cleveland
Richmond
A tlanta
Chicago
S t. I^ouis
Minneapolis
Kansas City
Dallas
San Francisco
~ Totals
~

0

06, 664,000

06, 664,000

OTHIR TRANSACTIONS IN GOVERN EN SECURITIES
M T
Sales
Issue
Purchases_
Issue
02,200,000 3 l/4 /o 3/ 1 5 / 2 8 C /l*
q "
234,800 M isc. GovH Sec*
288,750 tlisc* G ov 't Sec#
0
1 0 0 ,0 0 0
3 l/z% 9 /1 5 /3 2 T/N

New York
Atlanta
Kansas City
Totals

$388,750

$2,434,800

*77as held tem porarily fo r re sa le to Treasury,

BANKERS ACCEPTANCES
(000 Omitted)

Boston
New York
New York
P h ila .
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
Minn.
Kan* City
Dallas
San Fran.

Holdings
Feb. 15
0 29,919
70,187
32,406
31,212
21, 331
10,997
42, 674
14,825
12, 441
13,883
14, 613
23. 414

Purchased ment from
Own Mkt.
N.Y.
0 3,736 R.
0
9,407 A,
3,9 63 R.
0
3,820 M
0
809 *
1,702
0
1,081
131 M
625
1,356 "
2,374
1,086
0
0
862
0
1,079
584”
598
0
439 "

Other Holdings

Maturi t i e s & Holdings
Feb. 22
Sales
0 808 0 32,847
6,234
1,262
4,259
3, 585
945
6,941
1, 700
2,058
2,122
1,888
1.293

67,916
34,9 64
29,464
18,827
10,808
39,463
14,211
11,245
12,840
13,907
22.560

Sales
Contracts
0 2,742

Other
B i lls
0 X9

29.918
0
0
0
0
1,827
0
0
0
0
3f 316

668
24
940
13
323
35
11
8
9
9
18

Tntals
0317,902
024,245
09, 407 033,095 0309,052 037,803 02,077
B i l l s held overnight by New York f o r d is trib u tio n to other F . R. Banks - - 4.295
T otal - - - - - 06,372
NOTE: R. indicates* Retained aftd A, in d ica te s A llo t t e d in the above statement*



Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E C L A S S IF IE D
'

A uthority f-~ , Q ■

j

6

MATURITIES . AN RATES ON BILLS PURCHASED w E ENDING FEBRUARY 22. 1928
D
EK
(000 Omitted)
1-30 days
3 1 /4 -3 3/Qi
Boston
New York
P h ilad elp h ia
Cleveland
Atlanta
Chicago
D allas
San Francisco

61-90 days
3 1 /2 -3 5/8%

Over 90 days
3 1 /2 -3 3 M

T ota l

933
4,419
599
62
131
776
105
175

y 1,256
6,926
2,198
647
0
580
312
64

$1,367
1,297
1,023
100
0
0.
124
6

$

180
728
0
0
0
0
43
194

$ 3,736
13,370
3,820
809
131
1,356
584
439

$7,200

T ota ls

$

31-60 days
3 1 /4 -3 1/2%

^11,983

$3,917

$1,145

$24,245

N
O
M T
RECAPITULATION OF PURCHASES A D SALES OF G VERN EN SECURITIES
Alt) BANKERS ACCEPTANCES DURING .ffiEK ENDING FEBRUARY 22.1928
(000 O nitted)
(Excluding Sales Contracts)
Government
S e cu ritie s

Bankers
Acceptances

T otal

Purchased
Sold
Matured

$ 9,099
7,053
0

$33,095
o •
24.245
8,850*“
1,268+ (Net Change
1-day holdover
& other b i l l s )

$42,194
7,053
24.245
$10,8961,268+ (Net Change
1-day holdovor
& other b i l l s )

T ota ls

$ 2 ,046-

$ 7,582-

$ 9,628-

( Including Sales Contracts)
Holdings
February 22 . 1928
GovH S e cu ritie s
B i l l s Purchased
T o ta ls




Wit hin
15-davs
$

16-30
davs

3 k -60
days

61-90
davs

91 days- Over 6
6 months months

Ttrtal

2,420
118.113

$10,963
70.958

£>0
119.308

$ 0
40.466

$84,824 $303,305 ^401,512
4.382
0
353.227

$ 1 2 0 ,5 3 3

$ 8 1 ,9 2 1

$ 1 1 9 ,3 0 8

$40 ,4 6 6

^ 8 9 ,2 0 6 $30 3,305 $ 7 5 4 ,7 3 9

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Q■/ O'? 0 (

February 21, 1928.

Dear Mr. Matteson:
I
acknowledge receipt o f and ahall bring
to the attention o f the member* o f the Board, .jflttj.
le tte r o f February 30th, addrossed to Governor Young,
enclosing a report of transactions In Government secur­
it ie s and bankers acceptances, m reported to your
Conxnltteo for the period from February fc, 1928 to
February 15, 1928 inclusive.
IFery truly yours.

Waiter £ . Bddy,
Secretary.

Mr. ff. B. Matteson, Secretary,
Open Market Investment Coxrsi&ttee,
c/o Federal Heserve Bank,
Hew York, U. Y.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
A u t h o r it y Q• 10^0 (

Fe d e r a l R e s e r v e Ba n k
o f N ew Y ork

PERSON

AL

February 20, 19Z8

Dear Governor Youngs.
l e are e n clo sin g , f o r your f i l e s , a rep ort o f tra n s­
a ctio n s in Government s e c u r it ie s and bankers acceptances as re­
p orted to the Open Market Investment Committee f o r tne Federal
Reserve System fo r the p eriod from February 9, 1928 t o February
15, 1928 in c lu s iv e , togeth er ndth data received by the Committee
from the Federal reserve banks.

S ecretary, Open Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Boara,
Washington, D. C.

Ed cl.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authorityf-~,

0. 10^0 j

s FOR SPSCIAL CIRCULATION

PLEASE RE*
Gov* Youn
i*. Platt




of

N e w Yo r k

February 20, 19£8

CONFIDENTIAL

Dear Governor Young:
Enclosed i s a rep ort o f tra n sa ctio n s in
Government s e c u r it ie s m d bankers acceptances as re­
ported t o the Open Market Investment Committee f o r
the Federal Reserve System f o r the p e rio d from
February 9 , 1928 t o February 15, 1928 in c lu s iv e , to ­
gether « it h data re ce iv e d by the Committee from the
Federal reserve banks.
Very tru ly yours,

I . B. Matteson
S ecretary, Open Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E CLA SSIFIED
Authority

f-~t Q. W^O{

CONFIDENTIAL
REPORT O O
F PEN M
ARKET INVESTMENT COM ITTEE W
M
EEK ENDED FEBRUARY 15, 1928
Holdings of Earning: A ssets of Federal Reserve Banks from January 2 6, 1927 to Date
(000 Omitted)
TOTAL
EARNING
ASSETS

-1927Jan* 26
Feb. 23
Mar# 30
Apr. 27
May
25
June 29
July 27
Aug. 31
Sept* 28
Oct* 26
Nov*, 30
Dec* 28
-1928Jan. 25
Feb.
8
tt
15

0

GOVERN EN SECURITIES
M T
Outright
Sales
Purchases
Contracts

972,249
985,326
1,040,034
1,005, 577
988,510
1,071,130
953,9 31
1,058,786
1,167, 632
1,214,759
1,380, 515
1,598,842

0301,851
304,780
311,587
314,332
302, 349
367,140
380,559
469,954
484,054
507,245
543, 757
558,699

1,173,926
1,229,896
1,244, 810

434,817
398,984
401,138

BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases

BILLS
DISCOUNTED

914
426
41,515
3,993
19,571
9,261
4,457
2,860
10,298
3, 385
4,078
44,426

0269. 362
243,934
184, 755
194,007
171,907
183,163
157,291
118,189
172,030
243,249
288,464
315,152

032,465
36,255
52,654
47,892
64,263
32,955
12,094
66,939
70,118
57,862
66, 276
70,375

0365,157
397,929
456,023
443, 553
428, 620
477.311
398,130
400,524
430.312
402,398
477,025
609,209

6,080
2,355
7, 295

318,863
339,881
323,006

28, 442
29,392
31, 781

385,224
458,784
481,090

$

CH GES IN EARNING ASSET HOLDINGS (EXCLUSIVE O SALES CONTRACTS)
AN
F
. ^
DURING I I K ENDED FEBRUARY 15^1928
(000 Omitted)
BILLS DISCOUNTED
BANKERS ACCEPTANCES
GOVERN EN SECURITIES
M T
Net
Balance
Net
Balance
Net
Balance
Change
F eb. 15
Feb. 15
Change
Feb* 15
Change
Boston
0
New York
Philadelphia
Cleveland
Richmond
A tlanta
Chicago
S t. Louis
Minneapolis
xCansas City
Dallas
San Francisco
N.Y* holdovers
and other b i l l s
Totals

21,798
78,118
34,863
49, 740
8,448
9,919
62,030
31,919
18,135
28,168
24,817
33,183

0401,138

02,155+

0 29,919

0 5,241-

0 32,956

70,187
32,406
31,212
21, 331
10,997
42, 674
14,825
12,441
13, 883
14, 613
23,414

1,401+
1, 735+
2 ,3653,2465959 ,07694+
1 ,0 7 1 6732,0171, 667+

153,810
58,409
46,054
25.319
25,477
47,765
22,309
3,232
11,123
3, 771
50| 8 65

015,07728,064+
11,856+
1, 493+
1 ,6 0 0 1972 ,1 8 2 3,819+
941+
2,016—
615+
3,410—

5*104

0
* 2 , 200+
0
0
0
640
0
27+
0
80

2.512+

0323,006

016,875-

0481,090

022, 306+

*Held temporarily for
C0Mr:ENT Q changes W
N
EEK ENDED FEBRUARY 15. 1928
....... ....-..... —
-------------- ----------- ----- *
...— ——
----resale to Treasury.
Total earning a ssets of the System showed an increase of 014,914,000 f o r
the current statement week# The approximate changes, by c la s s i f ic a t i o n , con sisted
of a decrease of 016,900,000 in outright purchases of bankers acceptances, and in ­
creases of 02,150,000 in ou trig h t purchases of Government s e c u r it ie s , 022,300,000 in
b i l l s discounted and 0*7, 350,000 in investments h eld under sales c o n tr a c ts . The
la t t e r increase con sisted of 04,950,000 Government s e c u r it ie s and 02,400,000 bankers
acceptances*



Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E CL A SSIFIED

f Q■

Authority ~T

Konev
Market

(

2
F ollow ing the h olid a y in New York, there was some outflow of
funds on Tuesday (th e la s t day of the reserve p eriod ) and c a l l money
advanced from 4 l / 4 to 4 l / 2 per cent*
During the next two days,
however, heavy incoming tra n sfers of funds allow ed the member banka
to reduce th e ir loans at the Reserve Bank to 0^2, 500,000 and the rate
f o r new c a l l loans was reduced on Friday to 4 l / 4 per ce n t. With
borrowings a t the Reserve tank a t th is le v e l, there was a shortage
of about $20,000,000 in the a ctu a l reserves of the la rge banks,
however»
Tine money quotations were unchanged during the week at
4 l / 2 b id , 4 5/8 per cent o ffe r e d fo r m atu rities of 3 to 6 months#
There was a lim ite d volume of loans placed a t both the b id and the
asked rates*
The demand f o r commercial paper on the part of in v estin g
in s tit u t io n s continued f a i r l y a ctiv e during the week and was f u l l y
equal to the supply of new paper coming on the market* The bulk of
the prime names was o ffe re d and so ld a t 4 per cent*

Government
Security
Market

The undertone in the market f o r United States Government
bonds th is w§ek was much b e t te r than f o r the past several week©*
volume of trading in L iberty Loan bonds, e s p e c ia lly the Third 4 l / 4 s y
was somewhat lim ite d by the small amount of o ffe r in g s , w hile a l l
issu es of Treasury bonds were moderately a ctiv e * Die p rice s of a ll
issu es of L iberty Loan bonds showed small fr a c t io n a l gains over the
previous week, with the exception of the F ir s t 3 l /2 s which remained
unchanged* while the 3 3/4 per cent Treasury bonds due 1946-56 showed
a gain in p rice of 20/32nds over the previous week’ s clo s e and the
other issu es of Treasury bonds each re g iste re d gains of 12/32iids*
The short-term c e r t i f i c a t e s of indebtedness and Treasury
notes were a lso in b e t te r demand and d e a le rs1 o ffe r in g p r ic e s , which
f o r most issu es were about 2/32nds higher than the previous week, were
a t le v e ls to y ie ld approxim ately 3.12 per cent fo r the c e r t if ic a t e s
maturing March 15, 1928, 3*20 per cent f o r the 3 l / 8 per cent
c e r t i f i c a t e s maturing June 15, 1928, 3*25 per cent f o r the 3 l / 4
per cent c e r t if ic a t e s maturing December 15, 1928 and 3*50 per cent
f o r the 3 l / 2 per cent Treasury notes maturing 1930-32*

bankers
Acceptances




Dealers* o ffe r in g s of unindorsed bankers acceptances
continued a t the fo llo w in g r a t e s : 3 l / 4 per cent f o r 30s, 3 3/8
per cent f o r 60s, 3 l / 2 per cent f o r 90s and 3 5/8 per cent f o r
120-day b i l l s *
Boston rep orts that there was a sharp f a l l i n g o f f in the
demand f o r b i l l s during the past p eriod with the supply f a ir * The
aggregate amount of b i l l s sold by reporting dealers amounted to
01* 700,000 as against $9*900,000 tho week previous* T i l l s having
m atu rities up to 45 days were in b e st demand* O fferin gs to Reserve
Bank were l i g h t , In New York the supply f e l l o ff m oderately and the
demand decreased su b sta n tia lly as compared with the previous week's
volume* Dealers* sa les con sisted mainly of orders f o r n in e tie s and
lon ger m atu rities f o r fo re ig n account* Purchases f o r lo c a l account
were lig h t* D ealers’ p o r t fo lio s were p r a c t ic a lly unchanged*
P hiladelphia reports that th e ir b i l l market showed l i t t l e change from
the preceding period* O fferin gs were again moderately heavy with the
demand only fa ir *
Chicago reports that the market f or bankers
acceptances in th e ir d i s t r ic t continued very in a ctiv e with both
the supply and demand sm all.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E CLA SSIFIED
Authority

f 0. !(7$0 (

OPERATIONS FOR ACCOUNT UNITED STATES TREASURY
Transactions e ffe c t e d under a u th o rity from the Treasury during the
current week co n siste d of a sa le of $2,200*000 - 3 \/a per cent c e r t i f i c a t e s due
to rch 15, 1928 f o r account of the A lie n Property Custodian, and purchases of
$15,000,000 • 3 per cent c e r t i f i c a t e s of indebtedness due March 15, 1928 and
$22^700,000 - 3 l / 4 per cent March 1'5, 1928 c e r t if ic a t e s f o r Redemption and
$5,500,000 Third 4 1 /4 per cent L ib erty Loan bonds f o r account Surplus Money*
Purchases were made in New York and Chicago*
SYSTEM PURCHASES OF BANKERS ACCEPTANCES
Purchases of bankers ac-ceptances during the current statement r/eek and
the amount each bank now holds in e x ce ls or sh ort of i t s pro rata share under the
apportionment plan put in to e f f e c t fo r the e a rly part of the year:
B il ls Ac etui red
Boston
$ 20,673,000
^New York
76,486,000
Philadelphia
28,172,000
Cleveland
29,833,000
Richmond
14,705,000
Atlanta
12, 221,000
Chicago
40,178,000
S t, Louis
14,813,000
Minneapolis
11, 687,000
Kansas C ity
14, 592,000
Dallas
11,938,000
San F rancisco ... 23 , 682.Q00
Totals

$298,980,000

B i l l s E n title d
to A couire

B i l l s Over
Pro Rata Share

$ 20,929,000
74,744,000
26,910,000
29,898, 000
14,949,000
11,959,000
41,857,000
14,950,000
11,959,000
14,947,000
11,959,000
23* 919,000

0
1, 742, 000
1,262, 000
0
0
262, 000
0
0
0
0
0
0

$298,980,000

T i l l s Short
Pro Rata Share
$

$3,266, 000

.

256, 000
0
0
65, 000
244, 000
0
1, 679, 000
137, 000
272, 000
355, 000
21, 000
237, 000

$3,266,000

SPECIAL INVESTMENT ACCOUNT - GOVERN EN SECURITIES
M T
The only tran saction s consummated in the System Account during the
current statement week con sisted of exchanges in the market of )7f 180,000
aCnxegate amount of 3 per cent c e r t i f i c a t e s of indebtedness maturing March 15,
1928 f o r $1, 680,000 - 3 1/& per cent c e r t i f i c a t e s due June 15, 1928, and $ 5 ,5 0 0 ,0 0 0 3 l / 4 per cent c e r t if ic a t e s due December 15, 1928*
^hese transactions l e f t the
t o t a l holdings in the account a t the clo s e of business February 15 unchanged a t
$273,194,000*
The p a r tic ip a tio n by the Federal reserve banks and the c l a s s i f i c a ­
tion of issu es were as fo llo w s ;
PARTICIPATION BY FEDERAL RESERVE TANKS
Boston
$ 21,090,500
Ne^ York
72.534.000
Philadelphia
19, 677, 500
Cleveland
22.774.000
Richmond
7, 295, 500
Atlanta
6, 414, 500
Chicago
42,102, 500
St* Louis
13,909,<
Minneapolis
10, 550,i
Kansas C ity
18, 535,
Dallas
14,822,
San Francisco
23. 488.500
T#tali



$273,194,000

RECAPITULATION
1928 - 3
1928 - 3
1928 - 3
1932 - 3
1932 - 3

OF HOLDINGS BY M FITTH
ATU
g
$ 2,914,000
% C/l
79,380,000
l/B% "
39,600,000
1 /4 /, "
67,800,000
1 / 2% t /n
83,500,000
l/2 /o "

$273,194,000

Reproduced from the Unclassified / Declassified Holdings of the National Archives

D E CLA SSIFIED

Q 10^0 f
.

Authority

ITEMIZED STATEM
ENT OF TRANSACTIONS AFFECTING THE INVESTM
ENT ACCOU
NT OF
G
OVERN EN SECURITIES - SYSTEM INVESTMENT ACCOUNT
M T
Sales

Purchases
Boston
New York
P h iladelph ia
Cleveland
Richmond
A tlanta
Chicago
S t. Louis
Minneapolis
Kansas City
D allas
San Francisco

$

$7,180,000

T otals

$

$7,180,000

554,000
1,906,500
517,000
598,500
191,500
168,500
1,10 6,500
365,500
277,000
487,500
390,000
617T500

554,000
1,90 6,500
517,000
598,500
191,500
168,500
1,10 6,500
365j 500
277,000
487,500
390,000
617T500

OTHER TRANSACTIONS IN G
OVERN EN SECURITIES
M T
Sales
Purchases
Issue
^2,200,000* 3 1/4% 3 /1 5 /2 8 C /i
£
0
583,800
519,550
M isc, GovH Sec.
ti
it
0
27,100
8.000
0

New York
A tlanta
Minneapolis
D allas
T ota ls

$2,746,650

Issue
Misc# G ov't Sec,
Dec* 15/32 T/N

$591,800

*Held tem porarily fo r re sa le to Treasury*

Boston
New York
Phila*
C leve.
Richmond
A tlanta
Chicago
St*Louis
Minn*
Kan* City
D allas
San Fran,

Holdings
Feb* 8
35,1 €0
68,786
30 , 671
33.577
24.577
11,592
51,750
14,731
13,512
14,556
16, 630
21.747

BANKERS ACCEPTANCES
(000 Omitted)
Rec*d By Allotment.
Regular
From Matur­
Purchased
from
Boston i t i e s &
Own Mkt«.
P o rt.
Sales
N*Y*
$ 1,083 R $ o
$ 6,324*
$ 0
0
1,600
6,962
6,763 "
3,995 A
5,177 R
3,442
716 ”
3,407
326
0
3,807
561
457 "
473
1,825
300
388 "
379
9,843
757
0
851
0
579
1,650
0
1,537
300
564
262
210 "
2,489
0
1,053
1/786
2.400

Other Holdings
Close Feb*15/28
Other
Holdings
Sales
Feb-15 Contracts B ills
4,488
$ 29,919
19
22,290
70,187
481
32,406
31,212
21,331
10,997
42,674
14*825
12,441
13,883
14,613
23*414

0
0
0
0
2,39 7
0
0
0
0
2,606

24
734
13
305
35
IV
8
9
9
18

T ota ls
$337,289 £19,842
$3,995 $4,600 $43,829
$317,902 $31,781 ^1,666
B ills held over night by New York fo r d is t r ib u t io n to other F,R. Banks - - - 3.438
T ota l - -------------- ----- -A
$5,104
NOTE:

R. in d ica te s Retained and A, in d ica te s A llo tte d in the above statement

$4,600,000 told to otter Federal reeerve bank®




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority 0. 1(7^0{

MATURITIES and Rates O BILLS PURCHASED W E ENDING FEBRUARY 15, 1928
N
EK
(000 Omitted)
1-30 days
3 1 /4 > 3 3/8$
Boston
New York
P h ilad elp h ia
Cleveland
A tlanta
Chicago
D allas
San F rancisco
T ota ls

0

115
2,634
1,081
0
0
207
47
516

31-60 days
61-90 days
Over 90 days3 1 /4 - 3 5/8# 3 1 / 2 - 3 3/4# 3 1 / 2 - 3 3 /4 c
/>
$,

$4,600

T otal,

25
302

$ 0
93
0
0
0
0
131
0

e i ,083
10 ,758
5,177
716
457
388
210
1 ,053

02,710

530
7,762
3,543
0
50
181
7
235

$224

$19 ,842

438
269
553
716
407
0

$12,308

RECAPITULATION OF PURCHASES AN SALES OF GOVERN EN SECURITIES
D
M T
-AND BANKERS ACCEPTANCES DURING « K ENDING FEBRUARY 15, 1928
(000 Omitted)
(Excluding Sales C ontracts)
Government
S e c u r itie s
Purchased
Sold
Matured

T ota ls

Bankers
Acceptances

T ota l

09,930
7,775
0

$19,842
0
39.229
$19,3872,512+ (Net Change
_________ 1-day holdover
& other b i l l s )

$29,772
7,775
39 . 229
$17,2322,512+ (Net Change
I-day holdover
& other b i l l s )

$2,155+

$16,875-

$ 1 4 ,720-

(In clu d in g Sales C ontracts)
Holdings
February 15, 1928

Within
15-days

16-30
days

GovH S e cu ritie s
B i l l s Purchased

} 7,295
111.592

$13,827
71,103

$

0118,887

$84,930

0115,829

Totals




31-60
days

61-90
days

91 days6 months

Over 6
months

0
IIS *829

$ 0
- s i* m .

$>81,869 *>305,442 $408,433
4.368
. 0
354.737

$51,895

$86,237 ^305,442 y763,220

T ota l

Reproduced from the Unclassified I Declassified Holdings of the National Archives




DECLASSIFIED
A
uthority/-T 0-

10^0(

February IS* 1.823

Dear M !*tt#som
r*
1
acknowledge receipt of ».n<i aha 11 brin;: to
th# Attention o f the cww
sbara of the Board your l#tfccr
o f th#
tastasit, anclo#itt§ report o f transactions
##ourlti#« «n-l bankers aoo#pt#»o#« as
r#port*d to your ooramitteo for th# period frora February
2, 1921 to February 3t 1928 inolu#lv#*
7#ry t r u ly yours #

c o l t e r L«
Secret®,ry

f*V

B* ;'.atteson, Secretary,

8p*n
Investment Cojasdttee,
Fed#r*l l# ##rr# Bank,
i#*r York, M Y.
*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

0.

Authority

f

Fe d e r a l R e s e r v e B a n k
o f N ew Y o rk

P E R S O N AL

February 14,

19Z8

Dear Governor loung:
iie are enclosing, for your f ile s , a report of tr^nsec­
tions in Government securities and bankers acceptances as re­
ported to the Open Market Investment Committee for tiie FeGeral
Reserve Systeai for the period from February

c
‘ ,

1928 to February

8, 1928 inclusive, together isith data received by the CoiAinittee
from the Federal reserve banks.
Very truly yours,

Secretary, Open market
Investment Committee

Honorable Fioy A. Young,
Governor, Federal ^eserve Board,
Washington, D. G.




Reproduced from the Unclassified I Declassified Holdings of the National Archives
D E CL A SSIFIED
Authority

FfcEASE READ F
Yoons
v

•w w hm q

jr *

Q■

(

FOR SPECIAL CIRCULATION
,PTLY, INITIAL AND RETURN TO L ^RETARTfS
Mr. Hamlin
Mr, Jam so
Mr. HeInlo
in r

4 i« * #

v u u iw c r

axa£u ^ /
of

ft#

Ne w York

CONFIDENTIAL

February 14, 1928

Dear Governor Young:
Enclosed i s a report o f tra n sa ction s in Government
s e c u r it ie s and bankers acceptances as rep orted to the O&en
Market Investment Co'floaittee f o r tiie Federal Reserve System f o r
to e p e rio d from February Z, 1»E8 t o February b, 1928 in c lu s iv e ,
togeth er with data received by tne Committee from the Federal
reserve banks.

S ecreta ry , Open Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve bank,
liishington, D. C.

hncl.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DE CLASSIFIED
r

Q
.

Authority

CONFIDENTIAL
REPORT OF OPEN M
ARKET INVESTMENT COM ITTEE «
M

f

K EN
DED FEBRUARY 8, 1928

Holdings o f Earning A ssets o f Federal Reserve Banks from January 26. 1927 to Date
(OOO Omitted)
TOTAL
EARNING
ASSETS
£ 972, 249
985, 326
1,040, 034
1,005, 577
988, 510
.1*071, 130
953, 931
1,058, 786
1,167, 632
1,214, 759
1,380, 515
1,598, 842

-1927
Jan* 26
Feb, 23
Mar. 30
Apr* 27
May
25
June 29
July 27
Aug. 31
Sept* 28
Oct* 26
N6v*, 30
"Bee* 28
*1928“
Jan* 25
Feb.
1
Feb*
8

G
OVERN EN SECURITIES BANKERS ACCEPTANCES
M T
BILLS
Outright
Outr ight
S ales
Sales
Purchases C ontracts Purchases Contracts DISCGUNTEI
$365,157
$301,851
$269,362
$
914
$32,465
304,780
397,929
36,255
426
243,934
456,023
311,587
52,654
184,755
41,515
443,553
47,892
314,332
194,007
3,993
19,571
428, 620
171,907
64,263
302,349
9,261
32,955
367,140
183,163
4 7 7 ,3 U
398,130
380,559
4,457
157,291
12,094
66,939
469,954
400,524
2,860
118,189
430,312
173*030
70,118
10,298
484,054
402,398
57,862
243*249
507,245
3,385
477,025
66,276
543,757
4,078
288,464
6Q9,2Q9
44,426
315,152
70,375
558,699

1,173, 926
1,234, 986
1,229, 896

434,817
419,311
398,984

6,080
14,350
2,355

318,863
335,738
339,881

28,442
41,655
29,392

385,224
423,432
458,734

CH GES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
AN
_________DURING tfEEK EN
DED FEBRUARY 8, 1928
______
(OOO Omitted)

Boston
New York
P h ilad elp h ia
Cleveland
Richmond
A tlanta
Chicago
St* Louis
Minneapolis
Kansas City
D allas
San Francisco
N* Y* holdovers
and other b i l l s
T ota ls

G VERN EN SECURITIES
O
M T
Balance
Net
Feb. 8
Change
$ 2?. ,798
1,48 375,918
6,2781,38234,863
49,740
1,6008,448
5124019,983
62,030
2,95997731,919
18,108
74128,169
1,302—
24,825
1,042—
1,650—
33,183

BANKERS ACCEPTANCES
Net
Balance
Change
Feb* 8..
$ 35,160
$
6+
68,786
2,291+
30,671
1,561+
1,650+
33,577
2,10224,577
1,095+
11,592
51,750
4,318921+
14,731
13,512
691827+
14,556
1*19316,630
21,747
5,546+
2*592

$398,984

020,327-

A .4 5 0 -

$339,881

$4,143+

BILLS DISCOUNTED
Balance
Net .
Change
Feb* 8
$12,442+
$ 48,033
11,452+
125,746
1,77246,553
10,569+
44,561
2,24926,919
60625,674
10,178+
49,947
36018,490
1,4702,291
1,00513,139
1 ,3 3 2 3,156
49554,275

$458,784

$35,352+

C M E T ON CH GES « K EN
O MN
AN
DED FEBRUARY 8. 1928
T o ta l earning a ssets o f the System showed a decrease o f $5,090,000 fo r the
current statement week*
The approximate changes, by c la s s if i c a t i o n ,, co n sisted o f
in crea sesof £4,150,000 in ou trig h t purchases o f bankers acceptances, $35,350,000 in
b i l l s discou n ted , and decreases o f §20,350,000 in o u trig h t purchases o f Government
s e c u r itie s and $24,250,000 in investments held under s a le s con tracts*
The la t t e r
decrease con sisted o f $12, 000,000 Government s e c u r it ie s and $12,250,000 bankers
acceptances.



Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E CLA SSIFIED
A u th o r ity

Q.

f

2

Money

At the beginning of the week, actu al reserves of the la rg e
C ity banks were con sid erab ly below requirements, a con d ition which
n e ce s sita te d in creased borrowing a t the Reserve Bank on Monday and
re su lte d in a r is e in c a ll money to 4 l / 2 per cent from the renewal
rate of 4 l / 4 per cent* During the next few days, commercial funds
were tra n sferred in to th is market from other d i s t r i c t s , the Federal
Reserve borrowings of the C ity banks were reduced su b sta n tia lly* and
c a ll money eased t o 4 and 4 1 /4 per cent on Thursday and Friday*
The time money market continued to r e f l e c t a f i r a e r to n e .
Nominal quotations advanced s lig h t ly fu rth e r during the week and on
Thursday a l l m a tu rities were ouoted a t 4 l / 2 per cent b id , o ffe r e d at
4 5/8 per cent, the h igh est sin ce la t e June and e a rly July of l a s t year*
A good volume of fo u r to s ix months loans was arranged a t 4 l / 2 and
4 5/8 per cent*
A f a i r amount of a c t i v i t y was reported in the commercial paper
market considering the lim ite d amount of new paper coming in to dealers*
hands* Four per cen t remained the p re v a ilin g ra te f o r the usual grade
o f prime names*

Government
Security
Market

Bankers
Ac ceotances




and firm *
fr a c t io n a l
in g p rice s
Notes were

Hie market f o r United States Government s e c u r it ie s was qu iet
P rice s of L ib e rty Loan and Treasury bonds showed small
gains from the previous week*s clo s e , w hile d e a le rs1 o f f e r ­
f o r short-term c e r t if i c a t e s of indebtedness and Treasury
approxim ately l/3 2 n d higher than the previous week*

Dealers* o f f e r i n g s of unindorsed bankers acceptances were a t
the fo llo w in g r a t e s : 3 l / 4 per cent f o r 30*s, 3 3/8 per cent f o r 60*5,
3 l / 2 per cent f o r 90*s, and 3 5 /8 per cen t f o r 120-day b i l l s * This
represents an in crease over the previous week of l / 8 per cent f o r 30,
60 and 90-day b i l l s *
Boston rep orts that the supply of b i l l s during the past
p eriod , although somewhat sm aller than the preceding period, was g reater
than the average, but inadequate to meet the demand which continued
e x c e lle n t* Dealers unable to buy b i l l s a t 3 3 /4 per cent lowered th e ir
9 0 -day rate to 3 5/8 per cent b id , but had d i f f i c u l t y in f i l l i n g orders
even at the new rate* B i l l s moved f r e e ly with a l l m atu rities in good
demand* O fferin gs to reserve bank were moderate. In New Yo rk a t the
beginning of the week fo llo w in g the r a is e in th is bank1s rediscou nt rate
and a lso an advance on February 3 in our cu rren tly e f f e c t iv e minimum
purchase rates by l / 8 per cent on a l l m atu rities up to and including
fo u r months, a l l dealers immediately th e re a fte r ra ised th e ir rates l / 8
p er cent on a l l m a tu rities, biddin g 3 3/8 per cent f o r 30*s, 3 5/S per
cen t f o r 60*8, 3 3 /4 per cent f o r 90*s and fo u r months, 3 l/Q per cent
f o r f iv e and six months, o ffe r in g l / 8 per cent le ss* These new rates
brought very few new b i l l s in to the market* With a s t i l l fu rth e r in ­
crease in the already heavy demand f o r 90* s and lon ger m atu rities f o r
f oreign accounts, which was con siderably in excess of the d eclin in g
supply, dealers experienced great d i f f i c u l t y in f i l l i n g the requirements
of the fo re ig n in v estors* This in turn in flu en ced a l l dealers a t the
ena of the week to rodu&e th e ir rates l / 8 per cent on 63*s and 90*s }
bidding 3 l / 2 and 3 5/8 per cent re s p e ctiv e ly , o ffe r in g l / o per cent
less*. Dealers p o r t fo lio s were reduced to a lot/ p oin t sin ce the middle
o f la s t July* P h iladelphia reports that the b i l l market in th e ir
d i s t r i c t was not as a c tiv e as the previous week although o ffe r in g s
continued f a i r l y substantial* The demand was moderate with preference
shown f o r 90*s* Chicago rep orts that th e ir b i l l market appeared to be
qu iet with the demand r e s t r ic t e d p r in c ip a lly to very short m atu rities *

Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E CLA SSIFIED
Authority

f-', Q.

f

3
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions e ffe c t e d under a u th ority from the .treasury during the
current week co n siste d of a sa le of 0500,000 fa ce amount Fourth L ib e rty Loan
4 l/4 $ . bonds f o r account of the Government L ife Insurance Fund and purchases
aggregating £>15,500,000 Third L ib e rty Loan 4 l/4% bonds f o r the account of
Surplus Money*
SYSTEM PURCHASES O BANKERS ACCEPTANCES
F
Purchases of bankers acceptances during the current statement week and
the amount each bank now holds in excess or short of i t s pro rata share under the
apportionment plan put in to e f f e c t f o r the e a rly part of the year:
B i l l s E n title d

Bo ston

B i l l s Over
Pro Rata Share
04, 650,000

B i l l s Short
Fro Rata Share
0

0

0 24,190,000

0 19, 540,0 00

68,123,000

69, 784,000

0

1, 661,000

Philadelphia

22,995,000

25,124,000

0

2,129,000

^1 ev eland

28,791,000

27,914,000

877,000

0

Ri chmond

14,144,000

13,957,000

187,000

0

Atlanta

10,991,000

11,165,000

^hicago

39,411,0 00

39?079,QQQ

332,000

0

S t . Louis

13,9 62,000

13,958f 000

4,000

0

Minneapolis

11,103 , 0 00

11,165,000

0

57,000

Kansas City

13, 723,000

13,955^000

0

227,000

Dallas

11, 466,000

11,165,000

San Francisco

20T229r000

2-2, 332, 000

02 79,130,000

$279,138,000

N ot? Y o

rk

Totals

0

301,000

174,000

0

0

2 T103 r000

06, 351,0 00

s 6, 351,0 00
*

The overages shown in the above statement are being adjusted In the
usual manner by making d is tr ib u tio n to other Federal reserve banks.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E CLA SSIFIED
Authority

f-~t 0. 10^0 j

L

ITEMIZED STATIM T OF TRANSACTIONS AFFECTING TH INVESTMENT ACCOJNT OF
ED
E
......... ALL FEDERAL RESERVE BANKS FROM FEBRUARY 2 TO FEBRUARY 8t 1928-------GOVERNM
ENT SECURITIES - SYSTEM INVESTMENT ACCCUNT
B 0 st on
New York
Philadelphia
Cl eveland
Ri chmond
A tlanta
Chicago
St • Louis
Minneapolis
Kansas C ity
Ik lla s
San F ran cisco

Purchases
$ 3,165, 000
10, 886,000
2,953,0 C
O
3, 418, 500
1,09 5,0.00
9 62,000
6, 318, 500
2,08 7, 500
1,583,000
2,782,000
2,224, 500
3r 525t000

Sales
$ 4, 647,500
15,984,000
4, 335,000
5,019,500
1, 607,000
1,413,000
9,277, 500
3,065,000
2, 324, 500
4,084,000
3, 2 66, 500
5r 176r 500

Net Increase
$ 1,482,500
5,098,000
1 , 382,000
1, 601,000
512,000
451,000
2,959,000
977, 500
741,500
1, 302,000
1,042,000
1, 651r500

^ TOTALS

$41,000,0 00

$60, 200,000

$19 , 20 0,0 00

New York
{Atlanta
fSan Francisco
T otals

OTHER TRANSACTIONS IN GOVERN EN SECURITIES
M T
Sales
Is sue
Purchases
Issue
$1,180,000* 3% 3/ 15/28 C /l
0
615,500 M isc, Gov*t Sec#
665, 700 M isc. Gov’ t Sec*
0
-•
2t000 Misc* Gov*t Sec*
$667, 700

#Was h eld tem porarily fo r sale

$1, 795,500
BANKERS ACCEPTANCES
(000 Omitted)
Rec*d b v A llotm ent

Boston
New York

Holdings
Feb. 1
$ 35,154
65, 49 5

Phila.
29,110
Cl ev eland
32,927
Ri chmond
2 6, 679
Atlanta
10, 497
56,068
Chicago
13,810
S t. Louis
Minn#
14,203
Kan* C ity
13, 729
Efellas
17,823
San« F ran• .. 16,201
$331, 696

Pu rchased
Own Mkt.
$ 7,508 R.
8,374 it
11, 439 A.
4,842 R,
2,272 «
*
433 *
«
32
4, 393 it
0
0
0
762 M
1.09 9 M
$41,154

f rom
N. Y*
0
0

Boston
P ort»
0
0

itie s &
Sales
$ 7,502*
5„083

Holdings
Feb. 8
$ 35,1-60
68t 786

Other Holdings
Close F eb>8/28
„Sales
Other
Contracts B i l l s
$ 3,224 $
19
873
24, 991

0
1,493
1,917
1,542
0
1,998
1,847
2,113
529
0

0
0
0
0
0
0
0
0
0
6.000

3,281
3,115
4, 452
479
8,711
1,077
2, 538
1,286
2, 484
1,553

30, 671
33, 577
24,577
1.1, 592
51,750
14, 731
13,512
14,556
16, 630
211747

0
0
0
0 '
1,177
0
0
0
0
0

24
490
13
230
35
11
8
9
9
18

$11, 439

$6,000

$41* 561

$337,289

$29,392

$1,739

B ills h eld overnight by N*Y. f or■ d is tr ib u tio n to other F,R • Banks - ----------Total
♦Includes $6,000f 000 s o ld to Federal Reserve Bank of San F rancisco*
NOTE:

R„ in d ica te s RETAINED and A, In d ica tes ALLOTTED in the above statement*




853
$2,592

Reproduced from the Unclassified / Declassified Holdings of the National Archives

declassified

T

A u t h o r it y Q.

(

M
ATURI TIES AND RATES O BILLS PURCHASED W
N
EEK ENDING FEBRUARY 8t 1928
(000 Omitted)
1-30 days
3 to 3 l/2 ^

0 7,508

4, 537
2,945
1,267
258
32
727
182
712
014,04 6

01,899

041,154

0 3, 386

8,078
1,878
1,005
125
O
3, 377
336
272

0 1 6, 5 67

08, 642

. Total

145
1, 610
0
O
0
O
■0
59
85

0 1,49 6

Bo ston
0 2, 481
New Yo rk
5,588
P hiladelphia
19
Cl ev eland
0
Richmond
50
Atlanta
0
Chicago
289
Dallas
185
San F rancisco
30
T otals

Ov er 90 days
61-90 days
3 3/8 to 3 5/Qi 3 l / 2 to 3 3/4^o

31-60 days
3 1 /8 to 3 5/8fo

0

19,813
4,842
2,272
433
32
4, 393
7 62
l t099

RECAPITULATION O PURCHASES AND SALES O GOVERN EN SECURITIES
F
F
M T
AND BANKERS ACCEPTANCES DURING '-lE ENDING FEBRUARY 8, 19 28
EK
(000 Omitted)
(Excluding Sales C ontracts)
Government
S e cu ritie s
Purchased
Sold
Matured

0 41,670
61,997

Totals

Bankers
Acceptances

020, 327-

Total

041,154
0
35t 561
05, 593+
1 ,4 5 0 - (Net Change
_ _ _ _ _ 1-day holdover
and other b i l l s )
04,143+

082,824
61,997
35r 5 61
014,7341 ,4 5 0 - (Net Change
____________ 1-day holdover
and other b i l l s )
016,184-

(In clu d in g Sales Contracts)
Holdings
February 8, 19 28
Gov*t S e cu ritie s
B ills Purchased
Totals




Within
15 days

16-30
davs

31-60
davs

61 -90
davs

91 days6 months

Over 6
months

Total

0
70t 974

080,189
4,922

PQ 001
Q

112,598

O
018, 804
69 r 43 6 111t 343

0401,339
369f 273

3114,953

$69, 436 $ 1 3 0 ,1 4 7

070 , 97 4

085,111

0299 , 991

0 7 70 , 612

0 2,355

&

J j )

j j X.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority f -T 0.

1(7^0 (

February Tf 1920

Dear M Matteaon*
r#
I
acknowledge rooalpt o f and »hall bring to
th# attention o f th# members o f the Board y™*r
o f the 6th inatant, enclosing report of tranaaetions
in Oorarnient securities and bankers aooeptanoes as
reported to your eowalttee for the period from January
28, 1 ft8 to February 1 , 1928 inolusiv©*
Very truly yours,
t

.'Mr
Walter L« Eddy,
Seorotary

Mr*
B* Matteaon, Secretary,
Open Market Investment Coamittee,
o/o Federal Beaerve Bank,
H York, H. I*
ew




tM c
IT

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Q• W^O (

Dear Governor Youn6 :
are en clo sin g , f o r your f i l e s , a rep ort o f trans­
a ction s in Government s e c u r it ie s sna bankers acceptances &s
reported to tne 0r en k&xket Investment Gofauiittee fo r the
Federal Reserve System f o r tne p eriod froik Jtinuary Zo, 19 £8 to
February 1, 1S&8 in c lu s iv e , togeth er with data received by the
Committee from the Federal reserve banks.

Secretary, O p e n wi&rket
Investruent Gonimittee

Honorable Roy A. Young,
Governor, Federal Reserve co&rd,
Washington, D. C.

isficl.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

Authority

Q. W$Q j

— ^PO R SPECIAL CIROOLATIOH
—
,
PLEASE READ rapt. -LY, INITIAL AND RETURN TO SSC G A R Y ' S OFFH5e
Soy. Young W
Kr.
Mr. James
Mr. Melnt'aaft
Mr. Piatt Y
of

N e w York

(X)NFlUfcNTIaL

February 6, 19^8

Dear Governor Young:
Enclosed i s a rep ort o f iron section 6 in Governments e c u r it ie s and bankers acceptances as reported to the Open
Market investment Coiwuittee i‘o r the Federal Reserve System f o r
the p e rio d from January ii.6, lbi& t o February 1, la&6 in c lu s iv e ,
togeth er with data re ce iv e d by the Committee froia tae Feuerai
reserve banks.

it • L. Matte eon
Secretary, Open Wiarket
Investment U
o.uiU t tc e
i

Honorable Roy A. Young,
Governor, Federal Reserve board,
Washington, D 0.
*




Reproduced from the Unclassified / Declassified Holdings of the National Archives

D E CLA SSIFIED

Authority

0■ W ^ O (

CONFIDENTIAL
REPORT OF OPEN M
ARKET INVESTMENT COM ITTEE ' * K ENDED FEBRUARY I , 1928
M
Holdings o f Earning A ssets o f Federal Reserve Banks froD January 26. 1927.to pato
(J
qqq Omitted)
TOTAL
EARNING
ASSETS
$ 972,249
985,326
1,040,0 34
1,005,577
988,510
1,0 71,130
953,931
1,058,786
1,167,632
1,214,759
1,380 ,515
1,598,842

-1927*
Jan. 26
£eb. 23
Mar. 30
Apr« 27
May
25
June 29
July 27
Aug* 31
Sept • 28
0 ct * 26
Nov* 30
Dao* 28
-19 28—
Jan, 25
Feb,
1

1,173,926
1,234,986

GOVERN EN SECURITIES
M T
Outright
Sales
Contracts
Purchases
$
914
$301,851
426
304,780
311,587
41,515
3,993
314,332
19,571
302 , 349
9,261
367,140
380,559
4,457
469,954
2,860
10 ,298
484,054
507,245
3,385
543,757
4,078
558,699
4 4 ,4?6
434,817
419,311

BANKERS ACCEPTANCES
Sales
Outright
Contracts
Purchases
' $32,465
$269,362
36,255
243,934
52,654
184,755
47,892
194,007
64,263
171,907
32,955
183,163
157,291
12,094
66,939
118,189
70,118
172,030
57,862
243,249
66,276
288,464
70 , 375
315,152
318,863
335,738

6,080
14,350

BILLS
DISCOUNTED
$365,157
397,929
456,023
443,553
428,620
477,311
398,130
400,524
430,312
402,398
477,025
609,209

28,443
41,655

385,224
423,432

CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
________________DURING \ E EN ED FEBRUARY 1 . 1926 ____________
ilE K D
(000 O n itted)

Boston
New York"
P h iladelph ia
Cleveland
Richnond
A tlanta
Chicago
St • Louis
M inneapolis
Kansas City
D allas
San Francisco
N, Y, holdovers
and other b i l l s
T ota ls

GOVERNSN SECURITIES
T
Net
Balance
Feb. 1
Change
$ 23,281
$ 1,28382,196
3,234*
36,245
1,19851,340
1,38 6—
8,960
44410,384
4512,56364,989
32|896
84£18,849
64229,471
1 ,1 2 8 25,867
901~
34,833
1,430-

BANKERS ACCEPTANCES
Net
Balance
Feb* 1
Change
$ 1,130'*'
$ 35,154
9,869+
65,495
29,110
1,74132,927
6,470+
3,05226,679
10,497
3,042+
70356,068
3,577+
13,810
14,203
452+
2,917+
13,729
1,78317,823
1,471+
16,201
4.042

$419,311

$15 ,50 6-

4.774-

$335,738

$16,875+

BILLS DISCOUNTED,
Net
Balance
Change
F e b .X
$18,750+;
§ ’ 35,591
779U 4 ,2 9 4
17,784+
48,325
1,49133,992
4,605+
29 ,168
2,49026,280
5,38939,769
3,557+
18,850
117+
3,761
472+
14,144
1274,488
3,199+
54, 770

i?423,432

^33 ,208+

C M E T ON CH
O MN
ANGES W E EN
E K iJED FEBRUARY 1 . 1926
T otal earning assets o f the Systen showed an increase o f $61,060,000 fo r
the current statement week.
The approximate changes, by c l a s s i f i c a t i o n , con sisted
o f a decrease o f $15,500,000 in o u trig h t purchases o f Government s e c u r it ie s and
in creases o f $16,900,000 in o u trig h t purchases o f bankers acceptan ces, $38,200,000
in b i l l s discounted and $21,450,000 in investments held under sa les co n tra cts .
The la t t e r increase con sisted o f $8,250,000 Government s e c u r it ie s and &13#20Q,000
bankers acceptances*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
f

Authority^

Q lOpO(
.

2

Money
Market

C all money advanced to 5 per cent e a rly in the week re fle e t in g in part the usual montb-end in flu en ces*
Last year at th is
time the high fo r c a l l money was 4 per ce n t, so that the recent advance
also r e fle c t e d g en era lly firm er money co n d itio n s than in the corres­
ponding part o f 1927*
Subsequently, a somewhat e a sie r tendency
developed, accompanying tra n s fe rs o f funds to t h is market from other
d i s t r i c t s , and the Stock Exchange c a l l loan ra te dropped to a low o f
4 per cent on Thursday*
Follow ing the announcement o f the advance in
tho discount ra te o f the New York Reserve Bank, however, c a ll money
renewed at 4 l / 4 per cent on Friday and remained at t h is le v e l through­
out the day.
In the time money market, some ninety day loans were placed
at 4 3/8 per c e n t, accompanying the temporary d e clin e in c a ll money
~ a fte r the turn o f the month, but by the end o f the week, money fo r
ninety days was held at 4 1 /2 per ce n t.
Four to s ix months* loans
throughout the week were arranged at 4 l / 2 per cent*
The commercial paper market was only f a ir l y a ctiv e during the
past week due* p a rtly to the small supplies o f new paper a v a ila b le .
The market was also firm er in that sa les o f 3 3/4 per cent paper as­
sumed very small volume and the p re v a ilin g rate fo r prime names became
predominately 4 per ce n t.

Government
Securitv
Market

The market fo r United States Government bonds was moderately
a ctiv e during the current week with a s lig h t ly b e tte r undertone.
As
compared with the previous week*s c lo s e , p rice s o f F ir s t 3 l / 2 and
and Third 4 l / 4 s were unchanged while F ir s t and Fourth 4 l /4 s were 3/32
and l/32n d s lower r e s p e c tiv e ly and Treasury bonds were from 4/32 to
ll/3 2 n d s h igh er.
Trading in the short-term C e r t ific a t e s of Indebtedness and
Treasury Notes was rather q u iet with dealers* o ffe r in g p rice s at the
clo s e o f the week unchanged from the previous week fo r March m atu rities
and l/32n d lower fo r the other m a tu ritie s.

Bankers
Acceptances




D ea lers' o ffe r in g s o f unindorsed bankers acceptances were at
the fo llo w in g r a te s : 3 l / 8 per cent fo r 30s, 3 l / 4 to 3 3/8 per cent
fo r 60s, 3 3/8 to 3 l/Z per cent fo r 90s and 3 l / 2 to 3 5 /8 per cent
fo r 120-day b i l l s .
This represents an increase o f l / 8 per cent fo r
30s, 90s and 120s and l / 4 per cent fo r 60s.
Poston rep&rts that the demand fo r b i l l s in th e ir d i s t r i c t
during the past period was good.
A ll m atu rities moved fr e e ly with
some preference being shown fo r the longer m a tu rities.
At the begin­
ning o f the period the Reserve Bank advanced i t s ra tes on bankers ac­
ceptances l / 8 per cent on a l l m a tu rities up to 120-days making the
follow in g ra te s e f f e c t iv e on January 27, 1928:

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority f -~ Q
T .

j

/




2a
Follow ing t h is increase dealers fo r the second time during the month
o f January increased th e ir ra te s l/8 ^ as fo llo w s !
1 - 30 days 3 X/4%
31 - 60
" 3 1/Z%

61 - 90 days 3 S/Q%
91 -180
" 3 3 /4 /

The market was a ctiv e during the en tire period with the la rg e r lo c a l
banks good buyers and dealers* sa le s aggregating over #11,000 ,000,
The supply o f b i l l s which was about the same as the previous week was
~ in s u ffic ie n t to meet the demand and d ealers found i t necessary to take
b i l l s from o f f i c e s in other c i t i e s to f i l l th e ir ord e rs.
O fferin g s
to the Reserve Bank were la r g e « £ ln New York there was a considerably
improved demand during the past week composed mainly o f fo re ig n orders
with the supply moderately in excess o f the demand.
The outstanding
featu re was the r a is e in Chicago1s rediscou n t ra te which caused
nervousness and unsettlement in t h is market and was r e f l e c t e d in
su b sta n tia l o ffe r in g s to the Reserve Bank p r in c ip a lly by banka*J This
in turn in flu sn ced the New York Reserve Bank to ra is e th e ir currently
e f f e c t iv e minimum purchase ra te 1 /8 / on January 26 on a l l m atu rities
up to and in clu d in g 4 months as fo llo w s :
1 - 4 5 days 3 l/8 ^
46 - 90 "
3 3/8/.

91 - 120 days 3 l / $
180
" 3 3/4/-

Dealers immediately th e re a fte r ra ise d th e ir ra te by l / 8 per cent on
30s, 60s, 90s and 4 months* b i l l s , biddin g 3 l / 4 , 3 l / 2 , 3 5/8 and
3 3/4 per cent r e s p e c tiv e ly and o ffe r in g at 1 /8 per cent le ss*
Dealers* p o r t fo l io s increased s l ig h t ly .
P h ilad elp h ia rep orts that
th e ir acceptance market continued a ctiv e during the past period*
'*
There was a further ra ise in d e a le r s 1 ra te s during the week which,
however, did not seem to r e s t r ic t the drawing o f new b i l l s .
O ffe rin g s
were again f a ir ly heavy accompanied by a good demand*
Chicago rep orts
that there was very l i t t l e demand fo r ninety day b i l l s in th e ir
d i s t r i c t with short m atu rities sca rce ,
OPERATIONS FOR ACCOUNT UNITED STATES TREASURY
Transactions e ffe c t e d under authority from the Treasury dur­
ing the current week con sisted o f a sale o f $>400,000 par amount 3 l / 3
per cent c e r t i f i c a t e s o f indebtedness due June 15, 1928 fo r account
A lien Property Custodian and a purchase o f $1,000^)00 par amount 3 l / 2
per cent Treasury notes due September 15, 1932 fo r account Secretary of
the I n t e r io r , account Investment o f Individual Moneys o f R e stricte d
Indians*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
A u t h o r it y Q
.

(

Purchases of bankers acceptances during the current statement week and
the amount each bank now holds in excess or short of i t s pro rata share under the
apportionment plan put in to e f f e c t fo r the ea rly part of the year*
B ills Acauired

B i l l s E n title d
to Acauire

B i l l s Over
Pro Rata Share

B il ls Short
Pro Rata Share
0

0:

0 22, 682,000

0 16,659,000

*>6,023,000

New York

59, 749,000

59,49 6,000

253,000

P hiladelphia

18,153,000

21,420,000

0

3,267,000

Cleveland

25,02 6,000

23,799,000

1,227,000

0

Richnorvd

11,794, 000

11,899,000

0

105,000

Atlanta

9, 417,000

9,519,000

0

102,000

Chicago

35, 018,000

33, 317,000

1,701,000

0

St* Louis

11,9 64,000

11, 900,000

64, 000

0

Minneapolis

9,261,000

9,519,000

0

258,000

Kansas C ity

11, 615,000

11,897,000

0

282,000

#

10,175,000

9,519,000

San Franci sco

.1 3 ,1 3 0 ,0 0 0

1 9 ,040t 000

Totals

0237, 984,000

0237,984,000

Boston

Dallas

656,000
0
;)9, 924, 000

0

0
5f 910.000
59,924,000

The overages shown in the above statement are being adjusted in the
usual manner by making d is trib u tio n to other Federal reserve banks#




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
A u t h o r it y Q.

f

/
4
SPECIAL INVESU'.IENT ACCOUNT - GOVERN EN SECURITIES
M T
Transactions consummated in the System Account during the current state**
nent week con sisted of
Exchange in
the market of

Sales to
Foreign Corres­
pondent o f Treasury of
Market of

Total Sales

0 5,000,000 par value 3 l /2 $ Treasury Notes, due 1930-32, f o r a
lik e amount of Third 4 l /4 $ L iberty Loan bonds

2,9 60,000 par value 3 and 3 1/8$ c e r t i f i c a t e s of indebtedness
482,500 par value 3$ c e r t i f i c a t e s of indebtedness
13,182,500 par value c e r t if i c a t e s of indebtedness and 3 l /2 $
Treasury notes
016, 625,000

These tran saction s resu lted in a decrease in the account during the week
of $16, 625,000, which l e f t the t o ta l holdings in the account a t the clo se of b u si­
ness February 1 a t 0292,394,000*
The p a r tic ip a tio n by Federal reserve banks and
the c la s s ific a t io n of issu es were as fo llo w s ;
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
Minneapolis
Kansas C ity
Dallas
San Francisco

0 22,573,000
77, 632,000
21,059, 500
24, 375,000
7,807,500
6,865, 500
45,061,500
14,886,500
11,291,500
19,837,500
15,864, 500
25t 140,000

Totals '

0292, 394,000

'

RECAPITULATION OF HOLDINGS BY MATURITIES
Mar. 15,
June 15,
S ep t.15,
Dec. 15,
Mar. 15,
Dec, 15,

1928
1928
1928
1928
1932
1932

-

3
3
4
3
3
3

% C /i
0 44,094,000
l/8 /o "
44,400,000
l /4 # 3rd Iyt
5,000,000
l /4 $ C /i
30, 600,000
\/2% T/n
74,300,000
\/Z$ ”
94,000,000

_____________
029 2, 394,000

Further sales immediately a ft e r the c lo s e of the statement week resulted
in the Account being reduced to approximately 0280,000,000«




Reproduced from the Unclassified I Declassified Holdings of the National Archives

„
r- '

DECLASSIFIED

Authority

0 ■1(7^0 (

ITEMIZED STATEM
ENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF
ALL FEDERAL RESERVE BANKS FRO JANUARY 26 TO FEBRUARY 1 . 1928
M
•G
OVERN EN SECURITIES - SYSTEM INVESTMENT ACCOUNT
M T
Boston
Now York •
P h iladelphia
Cleveland
Richmond
A tlanta
Chicago
St * Louis
Minneapolis
Kansas C ity'
D allas
San Francisco
T ota ls

New York
A tlanta
T ota ls

Purchase's
0 '335,000
1,327,500
360,000
417,000
133,500
117,500
770 ,500
254,500
19 3,000
339,000
271,500
430.000

Sales
$ 1,669 ,500
5 ,7 4 1 |500
1,557,500
1,802,500
577,500
507,500
3,333,500
1,100,500
835,000
1,467,500
1,173,000
1.859.500

Net Decrease
% 1,283,500
4,414,000
1,19 7,500
1,385,500
444,000
390,000
2,563,000
846,000
642,000
1,128,500
901,500
1,429.500

05,000 ,000

$21,625,000

$16,625,000

OTHER TRANSACTIONS IN QOVERH ENT SECURITIES
U
Purchases
_____
_____
Issue
Issue
S a le s ____
0 2 ,3 ® ,000* 3% 3/15/28 C/l
$1,180,000 3/t 3/15/28 C /l
2,680,000* 3 1 /4 % 3/15/28 C/t
2,680,000 3 l/i'f, 3/15/28 C/l
155 , 700 M isc.GovH Sec.
216 >800 Mi s c . GovH Sec*
$5,195,700

§4*076,800

♦Temporary purchase fo r re sa le
w m iA v m m m .
(000 Od i t t e d )
R ec’ d by Allotment
Matur­
Fron
Regular
Holdings purchased
i t i e s & Holdings
from
Boston
Jan.25
Own Mkt.
Sales
Fort*
N.Y*
Feb, 1
Bo ston * 0 34,024
§11,071 R 0 0
9 9,941* £ 35,154
$ 0
New York
55,626
65,495
16,022 R
0
6,153
0
29,149 A
P h ila ,
29,110
30,851
7,152
5,411 R
0
0
C leve,
26,457
1,613 R
32,927
2,709
6,866
700
Richmond
3,367
26, 679
29 ,731
6,874
155 R
300
At 1 ant a
10,497
7,455
152 R
2,680
190
400
Chicago
3,758
56,771
10,174
5,713 R
Q
56,068
St.L ou is
13,810
10,233
3,675
498
400
0
Minn*
14,2Q3
13,751
2,613
0
400
2,665
Kan.City
13,729
•1,063
10,812
0
500
3,480
D allas
19 ,606
1,042 R
2,658
5,483
17,823
0
2.367 R
San Fran.
. 896
16.201
0
14.730
a
T otals $310,047
$72,695
$53,746
♦331,69 6
$29,149
$2,700
B i l l s held overnight by N,Y, fo r d is tr ib u tio n to other F.R. Banks ~ T o ta l - - - -

Other Holdings
Close Feb. l/2 8
Sales
Other
Contracts B ills
19
ii 3,595 $
9Q5
35,042
0
0
0.
0
1,858
0
0
0
450
710
§41*655
-

-

-

-

* Inc lude s ^2 ,700 ,000 sold to other Federal reserve banks
NOTE:

R* in d ica te s Retained and A* in d ica te s A llo tte d in the above statement.




24
49Q
13
320
35
11
8
9
9
18
$1,869
,

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority f-~,

Q
.

j

/X

/

MATURITIES A D RaTES ON BILLS PURCHASED W E ENDING FEBRUARY 1 . 1926
M
EK
(000 O m itted)
1-30 days
3 to 3 i M
Boston
New Y ork '
P h ilad elp h ia
Cleveland
Richmond
A tlanta
Chicago
D allas
San Francisco

31-60 days
3 to 3 1 /2 i

61-90 days
3 to 3 l/ z i

Over 90 days**
3 3/8 to 3 3/4/«

T ota l

l 4,885
4
14,216
2,453
759
51
34
3,757
161
912

i 5,573
16,476
2,776
854
15
68
882
584
1.208

• 0
i?
1,423
0
0
0
0 .
0
284
137

O i l ,071
45,171
5,411
1,613
155
152
5,713
1,042

015,187

T ota ls

613
13,056
182
0
89
50
1,074
13
110

§27,228

028,436

0 l t844

072,695

0

recapitulation of purchases and sales of government securities

AN BANKERS ACCEPTANCES DURING vilE K ENDING FEBRUARY 1. 1928
D
E
(000 Q u itted)
(Excluding Sales C ontracts)
Government
S e c u r itie s
Purchased
Sold
Matured

Bankers
Acceptances

0 10,198
25,704
0

T ota l

$72,695
0
51,046
v21|649+
4,774-(N et Change
_____
jL-day holdover
& other b i l l s )
$16,875+

T ota ls y 15,50 6-

$82,893
25,704
51.046
$ 6,143+
4,774-(W et Change
l ~day holdover
< other b i l l s )
%
1,369+

(In clu d in g Sales C ontracts)
Ho Idings
February 1» 1928

Within
15 davs

16-30
days

Gov’ t S e cu ritie s
B ills Purchased

if 14,350
122.331

$

0
72.232

$ 53,984
97.9.67

0

Totals

§136,681

^72,232

0151,951




31*-60
days

61-90
days

91 days6 months

Over 6
months

0
80.845

$46,888
4.018

^318,439 0433,661
0
377.393

080,845

050,906

0318,439 *811,054

T ota l

Reproduced from the Unclassified I Declassified Holdings of the National Archives




DECLASSIFIED
Authority

0.

February 1, 1928.

Dear Mr. Matteeonj
X acknoirledge receipt of and afcall
hring to the attention of the member* of the
Board, your letter of January 30th, addressed to
QoireTOor^o^iig7^^®I’
*'
of transac­
tions in Government securities and "bankers accept­
ances, as reported to your Conjraittee for the
period f*om January 19, 1928 to January 25, 1928,
Indus Ire*
Yery truly youre,

falter L. Bd<5y,
Secretary.

Mr. f* 1* Matteeoa, Secretary,
Open Market Investment Committee,
o/o Federal Reserve Bank,
lew York, I. Y.

{

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Q

.

\0 $ O

(

Fe d e r a l R e s e r v e B a n k
o f N ew Y o rk

January 50, 19&8

Dear Governor Young:
fee are e n clo sin g , f o r your f i l e s , a report o f trans­
a ctio n s in Government s e c u r it ie s and bankers acceptances as re­
ported to the Open Market investment Committee f o r the Federal
Reserve

System f o r the p e rio d from January 19, IS28 to January

2b, 19£8 in c lu s iv e , togeth er with, data re ce iv e d by the Committee
from the Federal reserve banks.
tru ly yours,

»• B. Matteson
Secretary, Open Market
investment CoiMiittee

Honorable Hoy a . Young,
Governor, Federal Reserve Board,
Washington, D. G.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E CLA SSIFIED
Authority

Q•

f

■ STE GIAI:.GIHGUT’ AT if- I
*
T'f ,r" f '"I
.
tv

. . . . . . "

/;: ■
.
0 i”X w0
.i*

, — p | .p E R A L r E S E R v e B a n k

o f New Y o rk

CONFIDENTIAL

January 50, litZb

Dear Governor Young:
Enclosed i s a report o f tra n sa ctio n s in Government
s e c u r it ie s and bankers- acceptances as reported to the Open
Market Investment Goiiunittee f o r the Federal Reserve System f o r
tiie p eriod from January 19, 1928 t o January Zb, 1928 in c lu s iv e ,
tog eth er with data re ce iv e d by the Committee from the Federal
reserve banks.

Secretary, G^en Market
Investment Committee

Honorable Roy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.

Encl.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

D E CLA SSIFIED
r

Authority^

Q. W$Q{

CONFIDENTIAL
REPORT OF OPEN M ET INVESTMENT COM ITTEE vffiE ENDEb JANUARY 25, 1928
ARK
M
K
Holdings o f Earning A ssots o f Federal Reserve Banks fr o n January 26» 1927 to Date
(000 Omitted)
EN
TOTAL GOVERNM T SECURITIES
Outright
Sales
EARNING
ASSETS
Purchases
Contracts
$ 972,249
% 914
0301, 8$1
426
985,326
304, 780
41,515
1,040,0 34
311, 587
1,005,577
3,993
314, 332
19,571
988,510
302, 349
9,261
367, 140
1,071,130
380, 559
4,457
953,931
' 1,058,786
469, 954
2,860
10,298
1,167,632
484, 054
507, 245
1,214,759
3, 385
4,078
543, 757
1,380,515
44,426
558, 699
1,598,842

-1927Jan. 26
Fob. 23
Liar. 30
Apr. 27
May
25
June 29
July 27
Aug* 31
Sept. 28
O ct. 26
Nov. 30
U ec
29
- -1928J an. 18
Jan. 25
.

1,280,962
1,173,926

492, 525
434, 817

BANKERS ACCEPTANCES
Outright
Sales
C ontracts
Purchases
$32,465
^269,362
36,255
243,934
184,755
52,654
194,007
47,892
171,907
64,263
183,163
32,955
157,291
12,094
118,189
66,939
172,0 30
70,118
57,862
243,249
66,276
288,464
70,375
315,152

6,843
6,080

329,940
318,863

BILLS
DISCOUNTED
^365,157
397,929
456,023
443,553
428,620
477,311
398,130
400,524
430,312
402,398
477,025
609,209

39,095
28,442

412,059
385,224

CHAISES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
_________ DURING W E EN
E K DED JANUARY 25, 1928______________________
(000 Omitted)

Boston
New York
P h iladelph ia
Cleveland
Richmond
A tlanta
Chicago
S t. Louis
Minneapolis
Kansas City
D allas
San Francisco
^•Y. holdovers
and other b i l l s
T ota ls

GOVERN EN SECURITIES
M T
Not
Balance
Jan. 25
Change
0 24,564
$ 4,54285,430
15,68237,443
4 ,25452,726
4,9231,5779,404
10,835
1 ,4 4 5 67,552
9 ,1021, 61733,742
19,491
2,28130 , 599
4,00 6—
26,768
3,20136,263
5,078-

BANKERS
Balance
Jan. 25
0 34,024
55,626
30,851
26,457
29,731
7,455
56, 771
10,233
13,751
10,812
1 9 1606
14,730

Net
Change
$ 5,9065,722+
3,7234238, 6471,153+
6821,015+
2,997481+
2,555—
338+

8 ,8 1 !
§434,817

$57, 708 ♦

5.147+

0318,863

»^11,077-

BILLS DISCOUNTED
Net
Balance
Change
J an ^ 2,5
ii 4,347v 16,841
30,171+
115,073
6,56730,541
15,60735,483
24,563
2,86028,770
93145,158
18,973—
88115,293
5103,644
13,672
2,8548084,615
51,571
2, 668—

385,224

026,835-

CO M T ON CHANGES «
M EN
EN
DED JANUARY 25. 1928
T ota l earning assets o f the System showed a decrease o f ^107,036,000 fo r
the current statement week.
The approximate changes, by c l a s s i f i c a t i o n , con sisted
o f decreases o f OH»100,000 i# o u trig h t purchases o f bankers acceptances, ^57,700,000
in ou trig h t purchases o f Government s e c u r it ie s , £26,850,000 in b i l l s discounted,
*>11,400,000 net in investments held under sa le s c o n tr a c ts .
Th© la t t e r decrease con­
sisted o f £750,000 Government s e c u r it ie s and ^10,650,000 bankers acceptances#




Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E CL A SSIFIED
Authority

f-~ Q.
,

(

2
Money
Mark et

Fol 1 owing th e ease p r e v a ilin g during tha previous ^eek,
c a l l money showed a firm er tren d during the week ju s t c lo s e d . Renew­
als were arranged on the f i r s t three days of the p eriod at 3 1 /2 per
cen t, but on Wednesday the new loan ra te rose to 4 per cent, and or
the balance of the week renewals were at 4 per cent with an advance
Friday afternoon to 4 l / 2 per cent f o r new loans* Commercial funds *
were withdrawn from New Y0rk to other' d is t r ic t s throughout the week I
and there were net g old exports of $7,000,000* These lo s s e s to the
market in commercial tra n sa ction s tog eth er with ad d ition a l sa les of
s e c u r itie s from the System's h oldings re su lte d in an in crease of
07^,000*000 during the week in other forms of Reserve Bank cre d it*
In the f i r s t part of the week th ree to six months* loans
were con tra cted at 4 l / 4 and 4 3/8 p e r cen t, and at these le v e ls the
tim e money market was active* Subsequently, however, money was more
firm ly h e ld and the amount of money placed declined# At the end of
the week th ree to s ix m onihs1 loan s were not obtain able below 4 l / 2
p e r ce n t, and the six ty -d a y m aturity demanded 4 3/8 per cent*
The New Y0rk C ity bank demand f o r commercial paper was more
a c t iv e than in some time and there was a lso a fr e e movement of paper
in the Middle Vest and elsewhere in the in te r io r * Ag a re su lt of
th is co n d itio n and the f a c t that l i t t l e new paper was created , dealers
were able to. s e l l a s iz e a b le amount of high grade names at 3 3/4 per
cen t, but the p re v a ilin g ra te n everth eless remained 4 per cent*

Gov ernment
Security
Mark et

As a r e s u lt of firm er money con d ition s during the week
and the sa le of short-term Gov ernment s e c u r it ie s the market f o r United
States Government s e c u r it ie s was somewhat le s s firm*
P rice s of
United States L iberty Loan bonds at th e c lo s e of the week showed
s lig h t fr a c t io n a l recession s frcm the previous week, w h ile the Treas­
ury bonds, on sa le s of f a i r l y la rg e siz e d b lock s by outside sources,
re g iste re d lo s s e s of from 12/32 t o 3l/32nds« D ealers1 o ffe rin g p rice s
f o r the short-term c e r t i f i c a t e s of indebtedness maturing next March,
June and December were approxim ately unchanged from the previous week
at le v e ls to y ie ld about 3*45 per. cent f o r the March m aturity* 3*37
per cent f o r the June m aturity and 3*35 p er cen t f o r December maturity*
T heir o ffe r in g p r ic e s , however, f o r the 3 l/ 2 per cent Treasury Notes
maturing 19 30- 32 were about 2/32nds le s s than la s t week and at le v e ls
t o y ie ld about 3*52 p er cent to maturity*

Bankers
Acc eptances

D ealers1 o ffe r in g rates f o r bankers acceptances continued
a t th e fo llo w in g : 3 per cent f o r 30s, 3 t o 3 l / 8 per cent f o r 60s*
3 3/8 p er cent f o r 90s and 3 l / 2 per cent f o r 120s*




Poston rep orts that there was an in creased supply and demand
f o r b i l l s during the past period* The demand, however, as a whole,
was g rea ter than the supply and most dealers had d i f f i c u l t y in f i l l i n g
t h e ir orders* B i l l s moved f r e e ly with l i t t l e p referen ce shown as to
m a tu rities although the b e st demand appeared to be f o r the lon ger
m aturities# O fferin gs t o the Reserve Bank were moderate# In New York
the supply of b i l l s t h is week was very good and considerably in excess
of demand which decreased moderately* Dealers* sa les con sisted mainly
of orders f o r n in e tie s f o r lo c a l account* Investments f o r foreig n
account continued lig h t* D ealers1 p o r tf o lio s in creased su b sta n tia lly *
P h ila d elp h ia reports that i t s b i l l market was more a c tiv e th is week*
Dealers were bidding 3 l / 4 per cent f o r 30s, 3 3/8 per cent fo r 60s,
and 3 1 /2 per cent fo r 90s, o ffe rin g at l / 8 le s s Tfchich resu lted in a
good demand f o r b i l l s of a l l m aturities* O fferings from dealers

Reproduced from the Unclassified / Declassified Holdings of the National Archives

D E CLA SSIFIED
A u th o r ity

0.

j

3
were moderate ■while o ffe r in g s from banks showed a small increase# Chicago rep orts
th a t th e only n o tic e a b le demand in i t s d i s t r i c t f or b i l l s was f o r m atu rities from
45 to 55 days fo r th e purpose of creating Federal Reserve Funds*
OPERATIONS FOR ACCOU
NT OF UNITED STATES TREASURY
Transactions e ffe c te d under a u th ority from the Treasury during the
current week consisted of a sa le of $1,000,000 aggregate amount Fourth 4 l / 4
per cent L ib erty Loan bonds f o r account Government L ife Insurance Fund and a
purchase of $482,500 par amount 3 per cent c e r t if ic a t e s of indebtedness due
March 15, 1928 f o r account Mixed Claims Investments*
SYSTEM PURCHASES O BANKERS ACCEPTANCES
F
Purchases of bankers acceptances during the current statement "W
eek and
the amount each bank now holds in excess or short of i t s pro rata share under the
apportionment plan put in to e f f e c t f o r the early part of th e year:
1 i l l s Acquired
3

B i l l s E n titled
to Acquire

B i l l s Over
Pro Rata Share

$ 14, 311,000

0 11*570,000

$2, 741,000

New York

43,727,000

41,322,000

2,405,000

P h ila d elp h ia

12,742,000

14,877,000

0

2,135,000

Clev eland

15,847,000

16,529,000

0

682,000

Richmond

7,972,000

8,265,000

0

293,000

A tlanta

6,185,000

6,611,000

0

426,000

Chicago

25,547,000

23,140,000

2,407,000

S t. Louis

7,889,000

8,266,000

0

377,000

Minneapolid

6*196,000

6,611,000

0

415,000

Kansas C ity

7,6 35,000

8,263,000

o

628,000

Dallas

6, 475,000

6,611,000

0

136,000

10,76 3.000

13*224.000

0

2*461.000

0165*289,000

0165,289,000

07,553,000

$7,553,000

Dost c n
a

San Francisco
T otals

B i l l s Short
Pro Rata Share
§

0
0

. o

The overages shown in the above statement are being adjusted in the
usual manner by making d is tr ib u tio n to other Federal reserve banks*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E CL A SSIFIED
Authority

f~,. Q. IQ^O(

SPECIAL IN E M N A C U T - G V R M N SECURITIES
V ST E T C O N
OE N E T
Transactions in the System Account during th© current statement week consisted of
Purchase of §16,380,000 aggregate amount Third 4 l/4 $ Liberty Ju aa, bonds fron
&
Property Custodian
Sales of

IS, 380,000 aggregate amount 3 l/8/» Certificates of Indebtedness due
June 15, 1928 to Alien Property Custodian in exchange for
a s aaB ^
Bas g ^
above Third 4 l/4 s purchased from Alien Property Custodian#

Sales of

25,061,000 aggregate amount Third 4 l / ^
market

Liberty Loan bonds to the

6,500,000 aggregate amount 3/* Certificates of Indebtedness due March
15* 1928 sold by Federal Reserve flank of Chicago
21,662*500 aggregate anount 3$ Certificates of Indebtedness due March
15, 1928 to the market
500,000 aggregate amount 3 l/8/# Certificates of Indebtedness due
• u e 15, 1928 to the market
Jn
5,337,$00 aggregate amount 3 l/4 $ Certificates of Indebtedness due
'
March 15, 1928 to the market
Net decrease
in account
^59,06 J ^ )0
|X
These transactions le ft the total holdings in the account at the close of
business January 25 at $309,019,000,
The participation by Federal reserve banks
and the classification of issues were as follows*
PARTICIPATION B FE E A R SE V B N S
Y DRL E RE AK
Boston
N York
ew
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
>ansas City
■
D allas
San Francisco
Totals

£ 23,856,500
82.046.000
22.257.000
25.760.500
8.251.500
7.255.500
47.624.500
15*732,500
11.933.500
20.966.000
16.766.000
26*569.500
$309,019,000

RECAPITULATION O H L SS B M
F O SftN
Y ATURITIES
March
June
Dec.
March
Dec.

15.
15,
15.
15,
15,

1928
1928
1928
1932
1932

-

3
3
3
3
3

i

c/ i

i/ 4
l/ Z $

T/fo
I
I

ii

46,9 36,500
50,182,500
30.600.000
81.300.000
100*000,000

W309,019,000

Since January 25, further sales to th© market and foreign correspondents
aggregating about •§9,000, OOO have been m
ade so that at the close of business
January 30 f the total holdings in the account w ill stand at 0300 ,000,000,




Reproduced from the Unclassified I Declassified Holdings of the National Archives

declassified
Authority

p T Q.

{

ITEMIZED STATEM
ENT OF TRANSACTIONS AFFECTING THE INVESTMENT'ACCOUNT OF ALL
G
OVERN EN SECURITIES - SYSTEM INVESTMENT ACCOUNT
M T
Boston
New York
P h ilad elp h ia
Cleveland
Richmond
A tlanta
Chicago
S t. Louis
Minn eap o l i s '
Kansas C ity
D allas
San F rancisco

Purchases
$ 1*264,500
4, 349,000
1,179,500
1, 365,500
437,500
384,500
2,524,500
834,000
632,500
1,111,500
888,500
...1.408*500

Sales
» 5, 824,500
20, 0 30,500
5 433,500
6 288,500
2, 014,500
h 771,000
11, 627,000
3. 841,000
2* 913, 500
5, 118,000
4, 092,500
6, 486*500

Net, Decrease
$ 4j 560,000
15,681,500
4,254,000
4,923,000
r, 577,000
1,386,500
9,102,500
3,007,000
2,281,000
4,006,500
3,204,000
5.078,000

T otals

316,380,000

$7 5,441,000

059,061i 000

OTHER TRANSACTIONS IN G
OVERN EN SECURITIES
M T
Issue
Issu e
Sales
Purchases
0
0
18,500 Fourth L/L bonds
308,450 M isc, Gov’ t Sec*
250 , 450 Misc# Gov’ t Sec*
0
1,390,000 Misc# Gov’ t Sec*
0
3.050 Misc* Gov’ t Sec*

r. oston
A tlan ta
S t. Louis
Dallas

$1*662,000

T otals

$308, 450
BANKERS ACCEPTANCES
(000 Omitted)

Holdings
Jan* 18
0 39, 9 30
49,904

Boston
flew York
Phila#
Cleveland
Richmond
A tlan ta
Chicago
S t, Louis
Minn*
Kan* City
D allas
San Fran*

34,574
26,880
38, 378
6,302
57, 453
9,218
16,748
10,331
22,161
14. 392

Purchased
Own Mkt*
i 5,584 R.
10,896 '*
12,877 A*
4,696 R,
713 *
210 w
88 M
5,028 u
0
0
0
506M
1 , 275w

Reu^lar
From
Boston
from
N. Y« . Port.
0
0
0
0

0
2,792
1, 39 3
1,208
2,762
1,780
1,030
1,529
383
0

1,000
800
500
0
0
0
500
300
0
0

Matur­
it i e s & Holdings
Jan* 25
Sales
$11,490* 0 34,024
5,174
55,626

9,419
4,728
10,750
143
8,472
765
4,527
1,347
3,444
937

Close Jan * 25/28
Other
Sales
Contracts 3 ill®
$ 8,730 0
19
799
16,491

0
0
0
0
2,721
0
0
©
500
0

30,851
26,457
29,731
7,455
56,771
10,233
13,751
10,812
19,606
14.730

24
490
13
314
35
11
8
9
9
15

T ota ls
$28,442 01,749
$12,877 £ 3 , i o o $61,196 $ 310, 047
0326,271 $41,87 3
7.067
B i l l s held overnight by N*Y. f o r d is trib u tio n to other F,,R* Bonks
T otal «•••«•»» — * v 8 ,816
•
m

m

*Ineludes $3,100*000 so ld t o other Federal reserve banks
NOTE:

R« in d ica te s Retained and A, in d ica te s A llotte<f in the above statement*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority f - ~ c

MATURITIES, A D RATES ON BILLS PURCHASED t t
N
(000 O n itted)
1-30 days
3 to 3 l/8/o

31- 60 days
3 to 3 1/4^

Q

■

(

ENDING JANUARY 25f 1928

61-90 days
Over 90 davs3 1/8 to 3 1 M 3 3 /8 -3 5/8%
£

T ota l

0 782

0 3,0 38

10,137
1,860
320
160
60
3,416
176
319

8,395
1*927
393
25
28
130
137
884

687
0
0
0
0
0
187
0

^ 5,584
23,773
4, 69 6
713
210
88
5,028
50 6
1.275

018,212

^14,957

0874

^41,873

8
CO

T otals

0 1,764

4,554
909
O
05
O
1,482
6
72

Boston
New York
P h ilad elp h ia
Cleveland
Richmond
A tlanta
Chicago
D a lla s
San Francisco

0o

RECAPITULATION OF PURCHASES AN SALES OF G
D
OVERN EN SECURITIES
M T
A D BANKERS ACCEPTANCES DURING W
N
SEK ENDING JANUARY 25.1928
(OOO Omitted)
(Excluding Sales C ontracts)

Purchased
Sold
Tiaturod

T ota ls

Government
S e cu ritie s
016,046
75,754
0

Bankers
Acceptances
041,873
0
58,097
016,2245,147+(Net Change
_________ 1-day holdover
& other b i l l s )
011,077-

057,708-

T otal
059*919
75,754
58rQ97
073,9325,147+(Net Change
_________ 1-day holdover
d other b i l l s )
068,785-

( Including Sales C ontracts)
Holdings
January 25> 1928
GovH S e c u r itie s
B i l l s Purchased

Totals




Within
15-days

1&« 30
days

0 6,080 0 O
122.510

73.18 2

31-00
days

61-90
days

0 55,661 0 0
74.684

73 . 660

91 days-* Over 6
6 months months

T otal

052,671 ^326,485 0440,897
3.269
0
347.305

^128,590 073,182 0130,345 073,660 055,940 ^326,485 ^788,202

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority f-', 0. 10^0(

January 25, 1938*

Bear Mr* Matteaoni
4

I
aaknov/iad®® receipt of and etfhali W i n g
to the attention of the members of th® Board* your
latter.of jrariija^r. S3xd* addressed to Governor Toraag,
enclosing a report of transactions in Government
securities and bankers acceptances, as reported to
you* Conradttee for the period fm & January 12 to
January 13# 1938'# inclusive#
?*ry truly your*#

mitar I * Sddy,
*
3#or©tary*

Mr* I# B* Mattson# Secretary,
Open Market Investment Committee,
c/o federal tiserve Bank,
Hew York, 1* T*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority f

' ,

Q .

\0 $

0

(

■s
«

Fe d e r a l R e s e r v e B a n k

o f New York

PERSON

AL

January £5, 1928

Dear Governor Young:
fee are e n clo sin g , f o r your f i l e s , a report o f trans­
a ctio n s in Government s e c u r it ie s said bankers acceptances as re­
ported to the Oj^en Market Investment Committee f o r the Federal
Reserve System f o r the p eriod from January lZ r 19&8 to January
16, 19^6 in c lu s iv e , tog eth er wdth data received by the Committee
from the Federal reserve banks.
Very tru ly yours,

Secretary, Open Market
inve strutht Committee

Honorable R. A. Ycung,
Governor, federal Reserve Board,
ia s h ih g to n , D. C.

itficl.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

D E CLA SSIFIED
Authority

PLEASE HEAD PFvC

FOR SPECIAL CIRCULATION
P TTTI ^T A':ID RSTUIH TO
i

f~T Ifl^O (
Q

——
S0
M cln t

Gov. Y ouns ^
H r. P l a t t y
of

New York

CONFIDENTIAL

January £5, 1 ^ 8

Dear Governor Young;
Enclosed i s a rep ort o f tra n sa ctio n s in Government
s e c u r it ie s and bankers acceptances as reported to the Open
Market Investment Committee f o r the Federal Reserve System
f o r the p e rio d from January 12, 1828 to January 18, 1S28 in­
c lu s iv e , togeth er with data re ce iv e d by the Committee from
the Federal reserve banks.

$. B. Matteson
S ecretary, Open Market
Investment Cofcimittee

Honorable R. A. Young,
Governor, Federal Reserve Board,
Washington, L . C.
>

itocl

& u u (l e a * } J




d e c l a s s if ie d

Authority

F , Q. 10^ 0 /
~

I
j

CONFIDENTIAL
R P R OF OPEN M R E INVESTM
EOT
AKT
ENT C M ITTE \ E E D D JA U Y 18, 1920
O M
E 1E K N E
N AR

(OOO Omitted)

-1927J’an. 26
Feb# 23
Mar. 30
Apr. 27
M
ay
25
June 29
July 27
Aug. 31
Sept. 28
Oct. 26
Nov*. 30
Dec. 28
-1928*
Jan. 11
Jan. 18

TOTAL
EARNING
ASSETS
$ 972,249
985,326
1,040,0 34
1,005,577
988,510
1,071,130
- 953,931
1,058,786
1,167,632
1,214,759
1,380*515
1,598,842

G V R M N SECURITIES
OEN ET
Outright
Sales
Purchases
Contracts
$
914
$301,851
426
304,780
311,587
41,515
314,332
3,993
19,571
302,349
9,261
367,140
380,559
4,457
2,860
469,954
10,298
484,054
507,245
3,385
4,078
543,757
44,426
558,699

1,377,731
1,280,962

520,947
492,525

BILLS
B K S ACC
AN ER
EPTAN
CES.
Outright
Sales
ISCO N
U TED
Purchases
Contracts. D
$365,157
$32,465
$269,362
$9 7,929
36,255
243,934
456,023
52,654
184,755
443,553
47,892
194,007
428, 620
64,263
171,907
477,311
32,955
183,163
398,130
12,094
157,291
400,524
66,939
118,189
430,312
70,118
172,030
402,398
57,862
243,249
477,025
66,276
288,464
609,209
70,375
315,152

24,316
6,843

337,973
329,940

54,594
39,095

439,141
412,059

C A G S IN EARNING ASSET H LD G (EXCLUSIVE OF SALES CONTRACTS)
HNE
O IN S
______________ D RING W E E D D JA U R 18. 1928__________________
U
EK NE
NAY
(O O Onitted)
O

Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
\ Y, holdovers
and other b i l l s
Totals

G V R M N SECURITIES
OEN ET
Balance
Net
Jan. 18
Change
$ 29,106
$ 2,4287,850101,112
41,697
2,26557,649
2,62210,981
8401,717+
12,280
76,654
4,34735,359
1,6011,21521,772
34,605
2,13429,969
1,634—
41,341
2,703-

BANKEno ACCEPTAN
CES
Balance
Net
Jan. 18
Change
$ 39,930
$9,0946,810+
49,904
4,35634,574
948+
26,880
5,75638,378
2,584+
6,302
1,24757,453
2,457+
9,218
311—
16,748
10,331
1,241+
1,05622,161
1,435+
14,392
3.669

$492,525

$28,422-

CMETO C AGS «K
O MN N H N E

$329,940

BILLS DISCO TED
UN
Balanee
Net
Jan. 18
Chanee
$
942+
$ 21,188
63,9 3784,902
4,50937,108
2,53351,090
4,862+
27,423
1,281+
29 , 701
80864,131
4,249+
16,174
4,154
1,202+
3,972+
16,526
2,417+
5,423
25,780+
54,239

1,688—
$8,033-

$412,059

$27,082-

E D D JA U R 18. 1928
NE
NAY

Total earning assets of the System showed a decrease of $96,769,000 for
the current statement week.
The approximate changes, by cla ssifica tio n , consisted
of decreases of §8,050,000 in outright purchases of bankers acceptances, §28,400,000
in outright purchases of Government securities, $27,100,000 in b i l l s discounted,
and $32,950,000 net in investments held under sales contracts.
The latter decrease
consisted of $17,450,000 Government securities and $15,500,000 bankers acceptances.



Reproduced from the Unclassified / Declassified Holdings of the National Archives

D E CLA SSIFIED

Authority

Memey
Mark et

Q ■1 0 ^ 0 (

There was an advance in c a l l money to 4 l / 2 per cent early
in the week as banks aalied loans in order to balance the reserve p o s itio n
on Tuesday. On Wednesday, however, the new loan ra te declined t o 3 l / 3
per cen t, r e fle c t in g the accumulated e f f e c t of tra n sfe rs of commercial
funds from other d i s t r i c t s and a fu rth e r reduction in the Volume of
currency in * c ircu la tio n *
Quotations of 4 l / 4 bid* 4 3/8 per cen t asked fo r 60-day
loans, and 4 3/8 b id , 4 l / 2 per cent asked f o r 3 t o 6 months m atu rities
showed a fu rth e r advance of l / 8 during the week* Actual loans f o r 3
to 6 months p e rio d s were arranged at 4 3/8 and 4 1 /2 per ce n t, and
60-day loans at 4 3/8 per cent*
Follow ing sane easing during the previous week, the commer­
c i a l paper market was s lig h t ly firm er th is week, and the p re v a ilin g
~ ra te again became 4 per cent# Demand f o r paper on the part of banks
was m oderately active# and su p p lies of paper in d e a le rs1 p o r t fo lio s
showed some reduction*

Gov ernment
Secu rity
Mark et

The market f o r United States Government bonds was dull and
steady, with long-term Treasury bonds in f a i r demand, and a good demand
fo r Third L ib erty Loan 4 l /4 * s f o r exchange purposes* The volume of
trading in Governments on the Exchange was le s s than one-half of the
previous weekf s sales w hile ov er-th e-cou n ter trading was qu ite heavy
at p r ic e s only f r a c t io n a lly changed from l a s t week's close*
The market f o r short-term C e r t ific a t e s of Indebtedness and
Treasury Notes turned q u ite so ft* Although p r ic e s remained steady, at
the aid of the week the March 3 and 3 l / 4 per cent c e r t if ic a t e s were
being o ffe re d on a 3.30 per cen t b a s is , w hile the p r ic e s on the other
c e r t i f i c a t e s continued unchanged at le v e ls to y ie ld about 3*49 per
cent f o r the notes and 3*35 and 3 *3 2 p er cent fo r the June 3 l / 8 and
December 3 l/4 .p e r cent c e r t i f i c a t e s , resp ectiv ely *

Bankers
Acceptances




D ealers1 o ffe r in g s of bankers acceptances continued at the
fo llo w in g ra te s;
3 per cent f o r 30*s, 3 to 3 l / 8 p er cent f o r 60Ts,
3 3/8 f o r 90*8, and 3 l / 2 per cent f o r 120-day b i l l s *
Boston reports that there was a s c a r c ity of new b i l l s in i t s
market during the past period* The demand was e x ce lle n t f o r a l l matur- i t i e s , most dealers having d i f f i c u l t y in f i l l i n g th e ir orders* O ffer­
ings to the Reserve Bank were lig h t , most of th e ir purchases coming
from the la rg e r l o c a l banks*
In Mew York the b i l l market was un­
s e ttle d and le s s a ctiv e * The demand a t the new rates was qu ite good
and con siderably in excess of the moderate supply* The demand was
mainly f o r 60*s and 90’ s f o r lo c a l account* Dealers sales of 90's
h ea v ily depleted th e ir supply of that maturity* Investment f o r fo re ig n
account continued com paratively lig h t* Dealers p o r t fo lio s decreased
su b sta n tia lly * P h ilad elp h ia rep orts that th e ir b i l l market was moder­
a te ly a c tiv e during the past week with a good demand f o r 90-day b i l l s *
O fferin gs continued to show improvement and con sisted almost e n tire ly
of 90*s* Dealers reported that th e ir p o r t fo lio s were lower than fo r
some time* Chicago reports that th ere was p r a c t ic a lly no demand in
i t s d i s t r i c t f or b i l l s a t the present ra te , except m atu rities of from
45 to 60-days and that did n ot appear to be an investment demand*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authorityjf ~ '!

Q .

10^ 0

f

OPERATIONS FOR ACCOUNT UNITED STATES TREASURY

/

Transactions e ffe c t e d under au th ority frcm the Treasury during the cu rren t
week co n s is te d of a sal© of $1*000,000 Fourth L ib e rty Loan 4 l/4 ^ bonds f o r account
Government L ife Insurance Fund and purchases of an aggregate amount of $20*000,000
3 l/2j£ Treasury Notes of 1930-32 f o r redemption*
SYSTSM PURCHASES OF BANKERS ACCEPTANCES
Pun;hases of bankers acceptances during the cu rren t statement week and
the amount each bank now hold s in excess or short of i t s pro rata share under the
apportionment plan put in to e f f e c t f o r th e early p a rt of the year:

B i l l s Acquired

B ills E n titled
t o Acquire

B i l l s Over
Pro Rata Share

B i l l s Short
Pro Rata Share

8*639*000

$3*188,000

0

32*831*000

30,854*000

1,977,000

0

7*046*000

11,108,000

0

4*062*000

11,542*000

12, 342,000

0

800,000

Richmond

5*869,000

6,171,000

0

302,000

A tlan ta

4*889,000

4,9 36*000

0

47,000

Chicago

17,757,000

17,278,000

St* Louis

6*109,000

6,172,000

0

63,000

Minneapolis

4*666*000

4*936*000

0

270,000

Kansas City

5*806*000

6*170*000

0

364,000

D allas

5*586*000

4,9 36,000

San F rancisco

9.488,000

9*874.000

$123*416*000

$123* 416,000

Boston

$ 11*827,000

Netf York
P h ilad elp h ia
C lm eland

T ota ls

$

0

479,000

0

650,000
0
294* 000

386.000
$6* 294,000

The overages sh ow in the above statement are being adjusted in the
usual manner by making d is tr ib u tio n to other Federal reserve banks*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Q. ! ( 7 $ 0 {

SPECIAL INVESTM
ENT A C U T » G V R M N SECURITIES
CON
OEN ET
Transactions in the System Account during the current statement week con­
sisted of
Sales of

§24,500,000 aggregate amount Third 4 l / 4 % Liberty Loan bonds to the
market
w
M
Certs* of Xnd« due March 15, 1928
15*000,000
market
"
#
3 i/ef» Certs* of Ind. due June 15, 1928
750.000
market
"
»
3 \/& f» Certs, of Ind. due June 15, 1928
700.000
to a foreign correspondent
M
" 3
1/2% Treas. Notes of 1930-32 to the
5.000.000
Treasury account redemption
§45,950,000

Purchases of §11,000,000 aggregate amount 3 l / 2 % Treasury Notes due March 15, 1932
in exchange for like amount of Third
4 l/4/£ Liberty Loan bonds
3,500,000
,f
,f
3 1/4$ Carts* of Ind* due March 15, 1928
'
in partial replacement of sale to
014,500,000
the Treasury
In addition to the above transactions, with the approval of the Open Market
Committee an exchange was effected, under the Treasury offering, of $100,000,000
Third 4 1 / 4% Liberty Loan bonds for a like amount of the new 3 i/zf» Treasury notes
maturing December 15, 193ft- 32.
These transactions le ft the to tal holdings in the
account at the close of business January 18 at $368,090,000*
The participation by Federal reserve banks and the classification of
issues were as follows:
PARTICIPATION BY FED AL R
ER
ESER
VE B K
AN S

RECAPITULATION O H
F OLDIN S B MATURITIES
G Y

Boston

March
March
June
Sept*
Dec.
March
Dec.

New York
Philadelphia
Cleveland
Richmond
Atlanta
Chic ego
St. Louis
Minneapolis
Kansas City
Dallas
3 a* francisco
Totals

$ 28,416,500
97,727,500
26.511.000
30 , 683,1
9,828,:
8,642,<
56,727, <
18,739,:
14,214,!
24,972, ’. . .
19.970.000
31.647*500
0368,,080,000

15,
15,
151
15,
15,
15,
15,

1928
1928
1928
1928
1928
1932
1932

•
•
*

3 1 / # C /I
3
%
3
4
3
3
3

5*337,500
75.099.000
67.0 62,500
8,681,000
30.600.000
81.300.000
100, 000,000

^368,080,000

Since January 18, further sales to the market ( aggregating|45,000,000)
have been made so that at the close of January 24 the to tal holdings in the account
w ill stand at $323,000,000*




/

Reproduced from the Unclassified I Declassified Holdings of the National Archives

D E CLA SSIFIED
Authority

Q.

j

ITEMIZED STATEM
ENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF ALL
FEDERAL RESERVE BANKS FROM JANUARY 12 TO JANUARY 18. 1928
GOVERN EN SECURITIES - 5YSTM INvEStMENT ACCOU T
M T
N
Net Decrease
Sales
Purchases
$ 2,428,500
Boston
$ 11,268-000
$ 8,8 39,500
8,350*000
New York
38,750*500
30, 400* 500
2*265,000
P h ilad elp h ia
10,512,000
8,247*000
2,622,000
Cleveland
12,167,000
9,545,000
839,500
Richmond
3,896,500
3,057,000
Atlanta
738,500
3, 427,000
2,688,500
4,847,000
Chicago
22, 49 3,000
17,646,000
1,601*000
St* Louis
7,430,000
5,829,000
1,215,000
Minn eapoliB
5,636,500
4, 421, 500
2,133,000
Kansas C ity
9,901,500
7,768*500
Dallas
1,707,000
7,919,500
6,212,500
San Francisco
2t 703,500
12.548,500
9* 845*000
131,450,000
T otals
$145,950,000
$114,500* 000

New York
P h il adelphia
Clev eland
A tlanta
S t. Louis
Dallas
San Franciaco
T otals

OTHER TRANSACTIONS IN GOVERN EN SECURITIES
M T
Issue
Issue
Sales
•
•
0
*$
500*000 Fourth L/L bonds
3, 400*000 Third L/L
3*400,000 C-19 32 T/N Exch*
H n n
18, 303, 600 C-19 32 1 ” "
18,303,600
1
n
m«
^
1,449,500
1,449,500 C-19 32 ” n "
2*6 34* 650 M isc. Gov*t Sqc«
179* 300 Misc* Gov’ t Sec#
t»
«
W
2, 110*000 C-19 32 T/N Exch.
2,110*000
It
ft
It
1* 315*550 C-19 32 w ’* ■
»
1*315,550
0
73*300 M isc. Govf t Sec#
9.625*050 M isc. Gov’ t See#
9.625*050 C~19 32 T/N Exch.
$39, 411* 650

$36, 383,000

*T£mporary purchase#
BANKERS ACCEPTANCES
(000 Omitted) ' "
Other Holdings
RecTd by Allotment
C lose Jan. 18/28
Regular
From
MaturOther
Sales
Holdings Purchased
from
Boston i t i e s & {foldings
Jan# 11
N.Y*
Own M
k*t*
Sales
Jan. 18 C ontracts B ills
Port*
0
$14,566* $ 39*930 $ 9,352 $
19
Boston
$ 49,0 2 4 $ 5, 472 R.
0
New York
738
49,904
25,920
14,901 "
2,000
43, 09 4
0
10,091
19*274 A.
P h ila .
24
0
0
38,9 30
4*899 R*
34,574
0
9,255
Cleveland
0
25, 9 32
26,880
3,242
0
2,824
393
530 "
Richmond
0
44,134
38,378
13
130 "
2,187
0
8,073
A tlanta
0
342
3,718
6,302
222 w
1,000
213
1*575
Chicago
2,444
58,700
4,737
57*453
1,000
35
2 , 320 "
9,304
St* Louis
0
6,761
0
9,218
11
2,445
988
1,000
Minn,
0
17,059
0
16,748
8
500
1*640
2, 451
Kan* City
9,090
0
0
10,331
2,020
9
1,000
1,779
Dallas
2 3 ,21T
779 tt
22*161
386
0
2,583
9
748
San Fran* —.12*957
2. 304 »
14*. 39 2
985
18
680
0
1.549
T otals 1332,616 150,831
$326,271 $39,095
^ 9 ,2 7 4 $6,500 $63,676
B i l l s held overnight by New York f o r d is tr ib u tio n to other F*R. Banks - - 2,050
T otal « - • - - $3,669
•^Includes $6*500,000 sold t o other fe d e ra l Reserve Banks.
scrsass
NOTE:

R» in d ica te s Retained and A. in d ica te s A llo tte d in the above statement#




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
A u th o r ity Q

■vtt
1-30 days
3 to 3 l/Q i
Boston
New York'
P h ilad elp h ia
Cleveland
Richmond
A tlanta
Chicago
D allas
San Francisco

W ^ ? Q (

J Tfe
L7 U

vrm
naatt
(000 Omitted)

61-90 days
31-60 days
3 to 3 1 /4 i 3 1 /4 to 3 3/8^

532
8,234
267
0
55
16$
505
48

$ 1,302
9,559
65
354
0
54
1,589
285
754

$9,859

T ota ls

$

.

$13,962

$ 3,632
15,268
4,567
176
75
0
226
174
.M P 6
*>25,524

Over 90 days
3 3/8 to 4H T otal
6
1,114
0
0
0
0
0
272

$ 5,472
34,175
4,899
530
130
222
2,320
779
2t 304

^1,486

$50 , 831

§ $

RECAPITULATION OF PURCHASES AN SALES OF G VERN EN SECURITIES
D
O
M T
AN BANKERS ACCEPTANCES DURING W E ENDING JANUARY 18. 1928
D
EK
(GOO Omitted)
(Excluding Sales C ontracts)
Government
S e cu ritie s
Purchased
Sold
Matured

T ota ls

Bankers
Acceptances

$153,913
182,335
0

T o ta l

$50,831
0
.± i * m
0 6 ,345»»
1 ,6 8 8 -(Net Change
1-day holdover
& other b i l l s )

$ 28,422-

$204,744
182,335
57.176
$ 34, 7671, 688-(Net Change
1-day holdover
,
& other b i l l s )
$ 3 6 ,455-

8,033"

(In clu d in g Sales C ontracts)
Holdings
January 18. 1928

Within
15-days

Gov*t S e cu ritie s
B i l l s Purchased

\ 6,843
149,752

Totals

$156,595




31*60
days

61-90
days

91 days6 months

0
73,298

$ 89,161
67,676

$

0
75.015

$69,553
3.294

$333,811 ^499,368
0
369.035

$73,298

$156,837

^75,015

^72,847

$333,811 $868,403

16-30
days
$

Over 6
months

T otal

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

0

. i O ^ O (

H m t Mr. Hatt•*on i

I
*clmawlodg« rooolpt of and ihaXX “
bring
to th* attention of
wmSb*xm of $h« Board* jmur
litii? of £«^IILl§Ik* «4Artt§M to Ooromor T<wm&,
#5aoXo*i»i * report of ttrmoactioni la Qknraraaamt
•aouritio* and ^®n3s»r» acceptance*, a* reported to
jtrar Ooramlttoo for tho $§r*od from Jamiary 5, X928,
to January XX* X938, lnolu®!**.
Tary truly swir*,

tteltar L. Eddy.
Saaratarv.

Mr. f. B.
Saor«taryt
Open M l t InvMtaant Cocroitto®,
#/o ftftinl l»»orro Haak*
Wmr York, W. T.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority f - ' ,

Q .

10^ 0

(

Dear Governor Young:
W are- e n clo sin g , f o r your f i l e s , rep ort o f transac­
e
t io n s in Government s e c u r it ie s and bankers acceptances as re­
ported to the Open Market Investment Ooaanittee f o r the Federal
Reserve System f o r tne p eriod from January 5 , 1S28 to January
11, 1928 in c lu s iv e , togeth er with data re ce iv e d by the Committee
from the Federal reserve banks.
JVety tru ly yours,

W B. Matteson
.
Secretary, Open ik&rket
Investment Committee

Honorable R. A. Young,
Governor, Federal Reserve Board,
Washington, D. G.




Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED

Authority

T?O f;I vC
R
.:
;
r .'.r~ T

'\ri

-i-7 tc rv

:, ■ i . : ,i p(U
IL'

I?. jO ^ O (

Iirr * Js n n

Mr. d e la t e - :

_ IS?. Cunninglian£ / * #
Fe d e r a l TRe s e r v e B a n k
of

<

Ne w York

GOI^FmENTlAL

tianuary 16, 19£8

Dear Governor Young:
Enclosed i s a report o f tra n sa ctio n s in Government
s e c u r it ie s and b&nkers acceptances as reported to the Open
Market Investment Committee f o r the Federal Reserve System f o r
the p e rio d from January 5, 19£8 to January 11, 1S2S in c lu s iv e ,
togeth er isith data received by the Coaanittee from tne Federal
reserve banks.

Secretary, Open Market
Investment Committee

Honorable R. A. Young,
Governor, Federal Reserve Board,
Bashington, D. C.




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

Q ■ W ^? 0 (

CONFIDENTIAL
REPORT O OPEN M
F
ARKET INVESTMENT COM ITTEE "flE K EN ED JAfrIU
M
E
D
ARY 11, 1928
(OGQ Omitted^
TOTAL
EARNING
-1927
ASSETS
Jan* 26 $ 972,249
Feb* 23
985 ,326
liar* 30
1,049,034
Apr, 27
1,005,577
May
25
988,510
June 29
1,071,130
July 27
953,931
Aug, 31
1,058,706
Sept* 28
1*167,6 32
Oct# 26
1,214,759
Nov, 30
1* 380,515
Bee * 28
1,598,842
-19 28J an*
4
1,536,29 3
it
11
1, 377,731

government

Outright
Purchases
$301,851
304,780
311,587
314,332
302,349
367,140
380,559
469,954
484,054
507,245
543,757
558,699

SECURITIES
Sales
Contracts
i
914
425
41,515
3,993
19,571
9,261
4,457
3*860
10,298
3, 385
4,078
44,426

544,39 3
520,947

83,011
24, 316

BANKERS ACCEPTANCES
Sales
Outright
Contracts
Purchases
$32,465
$269,362
36,255
243,934
52,654
184,755
47,892
194,007
171,907
64,263
32,955
183,163
12,094
1$7,291
66,939
118,189
70,118
172,030
57,862
243,249
66,276
288,464
70, 375
315,152
308,553
337,973

BILLS
DISCOUNTED
$365,157
397*929
456,023
443,553
428,620
477,311
398,130
400,524
430, 312
402, 398
477,025
609,209
520,079
439,141

78,578
54,594

CHANGES IN earning asset holdings ( exclusive of sales contracts)
DURING W E EN
EK
DED JANUARY 11. 1928
(QOO Onitted)

Boston
New York
P h iladelphia
Clev eland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas C ity
Dallas
San Francisco
N#Y, holdovers
and other b i l l s
T otals

GOVERN EN SECURITIES
M T
Balance
Net
Jan* 11
.SkaaLS
$ 31,534
$ 1 ,8 2 4 108,962
4 ,81443,962
1,703*
60,271
1 ,9 7 0 11,821
6 3110,363
3,0X681,501
3,64236,960
1 ,2 0 3 22,987
91336,739
1,60 39731,603
2 ,0 3 2 44,044

< 49,024
J
43,094
38,930
25,932
44,134
3,718
58,700
6,761
17,059
9,090
23,217
12,957

$ 8,412+
8,7774
2 ,9 7 0 4,806+
1> <530—
1,942+
2051,689+
148+
1,511+
1,563+
6,099+

5. 357
$520,947

$23, 447-

BILLS DISCOUNTED
Net
Balance
Change
Jnnf 11

BANKERS ACCEPTANCES
Net
balance
infra

$29,420+

$
405+
29,9321 7 ,OSS14, 6622,756—
2 ,5 7 2 1,216+
7 ,3 9 4 400—
4027947 , 392-

0439,141

OBI,? 38-

722-

$337,973

$ 20,246
148,839
41,617
53,623
22,561
28 , 420
64,939
11,925
2,952
12,554
3,006
28,459

CO M T O CHANGES ^ E K EN ED JANUARY 11. 1928>
M EN N
TE
D
Total earning assets of th e System showed a decrease of :!158f 652,000 f o r
‘
the cu rren t statement week# The approximate changes, by c l a s s i f i c a t i o n , con sisted
of an in cre a se of $29,400,000 in ou trigh t purchases of bankers acceptances, de­
creases of $23,450,000 in outright purchases of Governnent s e c u r it ie s , $81,750,000
in b i l l s discounted, and 082,675,000 net in investments held under sa le s con tra cts*
The la t t e r decrease co n siste d of $58,700,000 Governnent se cu rite s and $23,975,000
bankers acceptances*




Reproduced from the Unclassified / Declassified Holdings of the National A r c h i v e r ^ ^ ^ ^ *

D E CL A SSIF IE D
'

Authority

p~ Q.
.

Qj

I
j

2

Money
Market

C all money advanced from 4 to 4 l / 2 per cent on Monday, r e ­
fle c t in g heavy borrowings by New York City banks on Saturday fo r the
purpose o f ra isin g actual bank reserves to requirements#
On Wednesday,
however, follow in g the com pletion o f the Saturday to Tuesday reserve
.p eriod , the c a l l ra te declined to 4 per cent and was steady at th is
le v e l fo r the re st o f the week#
The market gained an a d d ition a l large
amount o f funds during the week as a re s u lt o f commercial tra n s fe rs
from other d i s t r i c t s and the continued reduction in the amount o f
currency in c ir c u la t io n , which more than o f f s e t sa les o f s e c u r itie s by
the System, and consequently the indebtedness o f the member banks and
the market at the Reserve Bank showed a substantial reduction#
Time money showed a firm ing trend during the week, whereas a
d e clin e u su a lly occurs at t h is time o f the year*
Quotations fo r
2U6 months loans were 4 l / 4 per cent b id , 4 3/8 per cent asked - with
a l l the loans arranged at the le n d e rs1 asking p r ic e .
As the r e s u lt o f an increase in dealers* sa les at 3 3/4 per
cent, the commercial paper market is now quoting a range o f 3 3/4 - 4
per cent fo r prime names#
Business has been c h i e f ly outside o f New
York C ity , notably in the Middle tfest.

Government
Security
Market

The market fo r United States Government bonds continued quite
a ctiv e at lower p rice le v e ls than those which p revailed during the
previous week#
L iberty Loan bonds showed only s lig h t re ce s s io n s , while
the long-term Treasury bonds closed at from 18/32 to 24/32nds below
the new high le v e ls esta b lish ed la s t week#
The short-term c e r t i f i c a t e s o f indebtedness and Treasury notes
were in only fa ir demand and showed uniform re ce ssio n s amounting to
l/32nd fo r the c e r t i f i c a t e s and 2/32nds fo r the notes#

Bankers
Acceptances




Dealers* o ffe r in g ra tes fo r unindorsed b i l l s were as follows*.
3 per cent fo r 30s, 3 to 3 l / 8 per cent fo r 60s, 3 3/8 per cent fo r 90s
and 3 l / 2 per cent fo r 120-day b i l l s *
Boston re p o rts that there was a smaller supply o f new b i l l s
in th e ir d i s t r i c t during the past p eriod , while the demand was good
with the longer m a tu rities s e llin g b e s t .
Toward the end o f the period
d ea lers ra ise d th e ir ra te s l / 8 o f 1 per cent on 90 and 120-day maturi­
t ie s *
Follow ing t h is in crea se, o ffe r in g s to the Reserve Bank were
quite heavy fo r 90s, t o t a l purchases aggregating nearly $13,000,000*
l n New York during the f i r s t h a lf o f the week the supply o f b i l l s con­
tinued in good volume but there was a su b sta n tia l d e clin e in the demand
due in la rge measure to much lig h t e r investment fo r fo re ig n accounts#
This con d ition togeth er with d ealers* p o r t fo lio s at a high le v e l and
continuing firm c a l l money re su lte d in an advance o f l / 8 per cent in
o u tsid e ra te s on 3 and 4 months b i l l s # At the advanced ra te o f 3 3/8
per cen t, ninety day b i l l s were taken b e tte r by the banks and these
sa le s togeth er with moderate support by us eased the d ea lers p o sitio n s
s a tis fa c to r ily .
During the la t t e r part o f the week the market was
q u ie t .
D ealers were able to obtain only moderate amounts o f n in e tie s
at 3 l / 2 per cent which they were able to s e l l f a ir ly promptly at 3 3/8
per cent but were un inclin ed to o f f e r further b i l l s at c o s t .
P h ila d elp h ia re p o rts that there was a l i t t l e more a c t iv it y in th e ir
b i l l market during the past week#
O ffe rin g s improved considerably and
co n siste d c h ie fly o f 90-day b i l l s .
The demand continued only f a i r .
Chicago re p o rts that th e ir b i l l market continued quiet#
There was
very l i t t l e demand fo r 90s reg a rd less o f the more a ttr a c tiv e ra tes at

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority/ - T 0

■ W

$ Q

f

which b i l l s were o ffe r e d which were as fo llo w s ’•
3 per cent for 30s,
3 1/8 per cent fo r 60s and 3 3/8 per cent fo r 90s*
OPERATIONS FOR ACCOUNT UNITED STATES TREASURY
Transactions e ffe c t e d under authority from the Treasury
during the current week con sisted o f a sa le o f §1,500,000 Fourth 4 l / 4
per cent L ib erty Loan bonds fo r account Government L ife Insurance
Fund#
SYSTEM PURCHASES OF BANKERS ACCEPTANCES
Purchases o f bankers acceptances during the current statement week and
the amount each bank now holds in excess or short o f i t s pro ra ta share under the
apportionment plan put into e f f e c t fo r the early part o f the year;

B i l l s Acauired
Boston

B i l l s E n title d
to Acquire

B i l l s Over
Pro Rata Share
7,774,000

B i l l s Short
Pro Rata Share
§

0 •

§12,355,000

§ 5,081,000

15,930,000

1$,146,000

0

2,216,000

P h ilad elp h ia

2,147,000

533,000

0

4,306,000

Cleve land

7, 770,000

7,259,000

511,000

0

. 3,552,000

3,629,000

0

, 77,000

A tlanta

2,092,000

2,903,000

0

811,000

Chic ago

9,700,000

10,1$2,000

0

462,000

S t, Louis

2,664,000

3,630,000

0

966,000

M inneapolis

2,526,000

2,903,000

0

377,000

Kansas C ity

2,786,000

3,629,000

0

843,000

D allas

4,059,000

2,903,000

1,156,000

0

San Francisco

6,504*000

5.80 7.000

697,000

0

§72,585,000

§72,585,000

§10,138,000

New York

Richmond

T ota ls

§10,138,000

The averages shown in the above statement are being adjusted in the
usual manner by making d is tr ib u tio n to other Federal reserve banks*




Reproduced from the Unclassified / Declassified Holdings of the National A r c h i v e ^ ^ ^

"

l"'

~~~
_

DECLASSIFIED

AuthorityF ~ ,

Q .

I C ^ O (

4
SPECIAL INVESTMENT ACCOU
NT - G
OVERN EN SECURITIES
M T
Transactions in the System Account during the current statement week con­
sisted of
Exchanges
in the market of

SaIes of

$ 5,000,000 - 3 l /4 ^ c e r t i f i c a t e s of indebtedness due March
15* 1928 and
35*000,000 - Third 4 l / 4$ L ib erty Loan bonds f or a lik e
amount of short-term Governments maturing next
June and December and 3 1/Z% Treasury notes due
19 32*
§ 1,128*500 - 3 1 /4 % c e r t if i c a t e s of indebtedness due March
15* 1928 to a fo re ig n correspondent and
2*500,000 - of th is issu e of c e r t i f i c a t e s and
20*000,000 - Third 4 l/4 # L ib erty Loan bonds to the market

The la rg e amount of Third 4 l / 4 s referred t o above were furnished the market to
s a t is fy th e demand f o r th is issu e of bonds to b e used in exchange f o r the new
3 l/Z% Treasury notes under the Treasury’ s recen t o ffe rin g *
These tran sa ction s reduced the t o t a l h oldings in the Account, at the
c lo s e of business January 11 to $399,5 30,000*.

The p a r tic ip a tio n by Federal

reserve banks and the c l a s s if ic a t i o n of issu es were as fo llo w s ;
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cl ev el and
Richmond
A tlanta
Chicago
St. Louis
Minneapolis
Kansas C ity
a a ll as
)
San Francisco
T ota ls

$ 30 , 8 45 , 000
106,077*500
28,776,000
33, 305,500
10,668,000
9,380*500
61,574*000
20, 340,500
15,429,500
27,105,500
21,677,000
34.351.000

RECAPITULATION OF HOLDINGS BY MATURITIES
March
March
June
Sept#
Dec*
March
Sept.

15,
15*
15*
15,
15,
15,
15,

$ 5, 337,500
3 1 /4 % C/l
1928
w
90,099,000
1928
3
%
« 3 l /8 # n
•
68,512*500
1928
- 4 1/4# 3rd L/L 133,181,000
1928
27,100,000
1928
3 1/4# C /I
72,400,000
1932 - 3 \/2% T/fo
2,900,000
1928
3 l/Z% n
-

•*

$399,530,000

$399,530,000

On January 5 the Federal Reserve Bank of A tlanta, due to a n ticip a ted lo s s
in th e ir g o ld settlem ent fund, tem porarily sold *2,000,000 Government s e c u r it ie s
from th e ir holdings in the System Account*

These s e c u r it ie s were apportioned to

the other p a r tic ip a tin g banks and repurchased by A tlanta on January 7*
NOTE:

Since January 11* fu rth er sa les have been made t o the market so that at
c lo s e of January 16* 1928 th e t o t a l stands at $370,000,000*




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authorityf - ', Q. 1 0 ^ 0 f

5

ITEMIZED STATEI.ffiNT OF TRANSACTIONS AFFECTIiJG THE INVEST!,'EOT ACCOUNT OF ALL
_______ FEDERAL RESERVE BANKS FRO JaN aRY 5 TO JANUARY I I . 1928...___________
M
U
G VERN EN SECURITIES - SYSTEM INVESTMENT ACCOU T
O
M T
N
Purchases
if 3, 228,000
13,140,500
3,081,000
3,554,500
1,167,500
2,939,000
6,465,000
2,137,000
1,624,500
2,813,500
2,250,000
3.599.500
$46,000,000

Boston
Now York
P hiladelphia
Cleveland
Richmond
A tlanta
Chicago
S t, Louis
Minneapolis
Kansas C ity
D allas
-San Francisco
T ota ls

Sales
5,052,000
19,413,500
4,783,000
5,524,000
1,798,500
3,494,000
10 ,10 6, 500
3,340,000
2,537,000
4,416,500
3,532,500
5.631.000

Net Decrease,
^ 1,824,000
6,273,000
1,702,000
1,9 69 , 500
631,000
555,000
3,641,500
1,20 3,000
912,500
1,603,000
1,282,500
2*0 31*500

069,628,500

023,628,500

OTHER TRANSACTIONS IN GOVERN EN SECURITIES
M T
New York
A tlan ta
D allas
T ota ls

Purchases
Ineuo
^1,500,000 Fourth l / l bonds *
936,750 Misc . GovH Sec *
J u 188.800 Misc * GovH Sec*
03, 625,550

0

Sales
Issue
41,500 March 15/28 3 1/4% C, j.
3, 397,300 M isc. GovH Sec*
3.000 Misc* GovH Sec •

03,441,800

♦Temporary purchase.
BANKERS ACCEPTANCES
(000 Omitted)
Holdings
Jan* 4
0 40,612
34,317

Regular
from
N.Y.
0 o
0

Matur­
itie s &
Sales
y 4,443
7,153

Purchased
Own Mkt.
Boston
012,855 R
New York
15 , 930 "
33 , 60 3 A
P h ila ,
2,147 R
41,900
5,117
0
Cleve*
21,126
5, 690
2,080 "
2,9 64
Richmond
45,764
5,182
200 "
3,352
A tlanta
1,776
66 ”
2,026
150
Chicago
8,40 7
58,905
1,293 "
9,905
S t . Louis
5,072
9 75
0
2tf 664
Minn*
16,911
2,526
2,378
0
Kan,City
7,579
0
2,786
1,275
D allas
1,711 «
21,654
2,496
2,348
San Fran*
6.858
2t 700 "
3f 804
405
T ota ls
0302,474
$33 , 60 3
$42,443
$72,585
B ills held over night by Hew York fo r d is tr ib u tio n to
NOTE:

Holdings
Jan* 11
§ 49,024
43,094
38,930
25,932
44,134
3, 718
58,700
6,761
17,059
9,090
23,217
...11*331
0332,616

Other Holdings
Close Jan* 11/28
Other
Sales
Contracts B i l l s
£10,039
v
19
38,209
684
0
0
0
0
4, 642
0
0
0
0

*S4
393
13
489
35
11
8
9
9
.....M
^1,712
-

054,594

other F* R, Banks— - 3t 645
^5,357
T ota l -

R. in d ica te s Retained and A* in d ica te s A llo tte d in the ab o ve st at ernen t .




Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority f - ~ ;

Q .

(

6
MATURITIES AND RATES O DILLS PURCHASED 'TSSK ENDING JANUARY 11. 1928
N
(OOO Omitted)
1-30 days
3 to 3 1 /2 t

31-60 days
3 to 3 1 /2 i

61-90 days
3 1 /4 to 3 3/8i

Ov er 90*-days
3 3/8 to 4%

Total

iooton
New York
P hiladelphia
Clev oland
Richmond
Atlanta
Chicago
Dallas
San Franci sco

$ 1,770
8, 305
510
0
0
0
224
282
1.5 36

$ 1,676
17,422
747
672
0
40
604
678
778

$ 9,370
23,020
890
1,408
200
26
465
527
386

$

39
786
0
0
0
0
0
224
0

$ 12,855
49,533
2,147
2,080
200
66
1,293
1,711
2.700

"

$12,627

$22,617

$36,292

$1,049

$72,585

T otals

RECAPITULATION OF PURCHASES AND SALES OF G
OVERN EN SECURITIES
M T
AND BANKERS ACCEPTANCES DURING 1EEK ENDING JANUARY I I 1928
(OOO Omitted)
(Excluding Sales Contracts)

Purchased
Sold
Matured

Government
S e cu ritie s
$49,625
73,072
0

D-ankers
Acc eptances
$72,585
0
42. 443
$30,142+
722- (Net Change
_ _ _ _ _ _ 1-day holdover
and other b i l l s )
$29,420+

________
T otals

^23,447-

Total
$12 2* 210
73,072
42.443
6,695+
722- {Net Change
_ _ _ _ _ _ 1-day holdover
and other bills)
$5,973+

(In clu d in g Sales C ontracts)
Holdings
January 11,1928

lit h in
15 days

16-30
days

^ o v 't S ecu ritie s
B i l l s Purchased

$ 24,316
172,388

0
80.578

0
79% 449

$103,561
57. 376

070,802
2.776

$346,584
0

0545,26 3
392.567

$196,704

$80,578

$79 ,449

$160,937

$73,578

$346,584

$937,830

Totals




31-60
days

61-90
days

91-days
6 months

Ov er 6
months

Total