The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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.
Me
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
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
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,
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+
COMMENT ON CHANGES ’7FEK ENDED KAY 29, 1928
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 *
l/z
l/z
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 .
l/z
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
”
"
”
w
$
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
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
c/i
3rd
1 / 4 /= C /I
1 /4 ?, «
3 /8 f0 it
l/2% t / s
It
1M *
1 / 4^
h/L
(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 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 Over
F ro R a ta Share
B i l l s A c a u ire d
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 WEEK ENDING MAY 2 9, 1928
(OOO O m itted )
1 -3 0 days
3 1 /4 - 4 i M
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
T o ta ls
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
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
0 2 ,4 6 3
0 6 ,1 6 4
0966
T ota l
0
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 )
P u rch ased
S o ld
Matured
T o ta ls
Government
S e c u r itie s
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 <fcf fcb* Bo&rd, your
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:
We are enclosing, for your f i l e s , a report o f transac
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
Mr.Cunningham
,ARY, S OFFICE
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 May 17, 19£8 to May 25, 1928 inclusive,
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 WEEK 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 WEEK 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 2 2 1 ,4 2 3
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 —
0 2 9 ,8 2 6 -
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
377*
0 3 0 7 ,1 7 4
0 2 2 ,2 5 1 -
BILLS DISCOUNTED
Net .
B a lan ce
Change
Mav 23
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 84 7 ,4 7 2
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+
0 40 ,06 0 +
.■.,,■====3
COMMENT ON CHANGES WEEK 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 ,'CDC#
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
L
/L
3rd
1 /4 $
4 7 ,1 8 9 ,0 0 0
1 M C /l ( o ld )
2 2 ,2 1 8 ,5 0 0
1 /4 $ 11 (new )
5 ,4 5 0 ,0 0 0
3/8% 11
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 STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF ALL
_____________ FEDERAL RESERVE BANKS FROM MAY 17 TO MAY 23. 1928
________ _
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
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
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Purchases
0
* 1,664,000
339,250
950
Boston
New York
Atlanta
Dallas
Issue
Sales
0
Totals
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
BANKERS ACCEPTANCES
(000 Omitted)
By Allots MaturPurchased
ment fran it ie s &
Own Mkt.
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
$43,411
B ills held over night by New York for distribution to other F. R. Banks - - 1*227
r02,89l
Tot al
NOTE:
R. in d ica te s Retained and A. in d ica te s A llo tte d in the above statement
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authorityj O -
(
/L
(000 Omitted)
-1 —30 days
3 5/8-4^
Bo ston
§
28
New York
7,205
Philadelphia
25
Cleveland
0
Richmond
50
Atlanta
24
Chicago
998
Dallas -55
San Francisco
280
Totals
61-90 days
3 3 /4 -4 l M
31—60 days
3 3 /4 -4 i M
§8,665
Over 90-days
3 3 /4 -4 l M
Total
§1,745
2,039
199
268
0
102
1,265
65
44
01,775
773
531
368
0
0
1,276
178
114
§
0
1,447
0
0
0
0
0
567
116
§ 3,548
11,464
755
636
50
126
3,539
865
554
§5,727
§5,015
§2,130
§21,537
RECAPITULATION OF PURCHASES AND SALES O f GOVERNMENT SECURITIES
-- - and BANKERS ACCEPTANCES DURING WEEK ENDING MAY 23P1928
(OOO Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
Totals
Bankers
Acceptances
0" 5,046
34,872
0
§29,82 6-
Total
§26,583
34,872
021,537
0
43*411
§21,874377-(Net Change
4-day holdover
& other b i l l s )
§51,700377-(Net Change
________ 1-day holdover
. & other b i lls )
§22,251-
§52,077-
( Including Sales Contracts)
Holdings
M&y 23, 1928
Within
15-days
16-30
davs
31-60
davs
61-90
davs
Securities
i :i lls Purchased
§
9,058
115.682
§ 1,189
64.039
§
§
§124,740
§65,228
§103,120
C 'o v H
T ota ls
0
103*120
6months
91-daysmonths
Over 6
Total n
0
40.282
§2,015
7.439
§218,219 §230,401
0...
330l$«L
§40,282
§9,454
§218,219 §561,043
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Q .
(
F o r m N o . 1 31
/
'
V
'
f
F
E
D
E
R
A
Uince Correspondence
L
RESERVE
B
0A
R
D
M
ay33. 1938.
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—
8495
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authorityf-', Q. 1 0 ^ 0 (
Fed er a l R
of
eserve
Ba n k
N ew Yo rk
- PERSONAL
May 22,
1928
Dear Mr. Young:
We are enclosing, for your f ile s , 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 May 10 to May 16,
1928 inclusive, together with data received by the Committee
from the Federal reserve banks.
Very truly yours,
IT. BriaATTESON
Secretary, Opem Market
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*.
Mr. Jan
Ur, M illa r
Mr. Cu m
Hr. P la t t
\
Fe d e r a l R e s e r v e E
of
N ew Yo r k
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 May 16, 1928 inclu
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
REPORT OF OPEN MARKET INVESTMENT COMMITTEE WEEK ENDED FAY 16, 1928
Holdings of Earning Assets of Federal Reserve Banks from January 26aI927 to I^tft
(OOO Omitted)
BILLS
GOVERNMENT SECURITIES
BANKERS ACCEPTANCES
TOTAL
Outright
Sales
Outright
Sales
EARNING
DISCOUNTED
•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
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
—.... ...................... DURING WEEK ENDED MAY 16, 1928____________
(000 Omitted)
BANKERS ACCEPTANCES
Net
Balance
Change
May 16
GOVERNMENT 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-
012, 511-
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
1* 838-
0329,425
014,277-
BILLS DISCOUNTED
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-
COMMENT ON CHANGES TOK ENDED MAY 16. 1928.
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 ^ lO O ^ O O O in 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.
On
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
AuthorityJh~t Q.
(
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 ACCOUNT OF UNITED STATES TREASURY
Transactions effected under authority from the Treasury during the cur
rent r. fcalendar w b q Is. (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 PURCHASES OF BANKERS ACCEPTANCES
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
Authorityf-~; Q. 1(7^0 (
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERMONT 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 FEDERAL RESERVE BANKS
Boston
0
New York
Philadelphia
Cleveland
RECAPITULATION OF HOLDINGS BY MATURITIES
9,648,000
Dec*
15,1928 - 3 l/4/o C/I (old}0 47,689,000
33,176,300
Dec*
15,1928 - 3 l/4fo
March 15,1929 - 3 3/8 Jo n
16,450,000
10,415,000
March 15,1932 *• 3 1 / 2/0 T/to
9,600,000
Sept* 15,1932 *» 3
Atlanta
2,933,000
Dec*
Chicago
19,259,500
St* Louis
6,362,500
Minneapolis
4,828,000
Kansas City
8,470,000
Dallas
6,778,500
1—
1
3,337,000
Totals
23,718,500
9,001,500
Richmond
San Francisco
M (new)
15,1932 - 3 1 / 2/0
f»
5,000 ,Q00
11
22,440,800
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
jF^tQ. ((7^0{
ITEMIZED STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF ALL
FEDERAL RESERVE BANKS FROM MAY 10 TQ MAY 16. 1928 INCLUSIVE
GOVERNMENT SECURITIES * SYSTEM INVESTMENT AC&UHT,
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
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
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 T750 Third l * /h bonds
§5,243,000
* Held over night for resale to Treasury
* * Held temporarily for resale*
BANKERS ACCEPTANCES
(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
Own Mkt*
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/-T Q.
(
MATURITIES AND RATES ON, BILLS PURCHASED JEEK ENDING MAY 16. 1928
(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 PURCHASES AND SALES OF GOVERNMENT SECURITIES
..... AND BANKERS ACCEPTANCES DURING T3EEK ENDING MAY 16. 1928
(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
cb other b i l l s )
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.
0110,583
61-90
davs
9i-days
6 months
0
44.981
? 760
7.176
0249,219 0262,320
0
347T292
044,981
0 7 ,9 3 6
0249,219 $609,612
Over 6
months
Total
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 o f 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
Authorityf-~, Q. 10 $ 0 /
FOR SPECIAL CIRCUIiATIOH
............
Gov.
Yours
G
o y . Your,
UvJV
Mr*
K r. F lattd
la tt^ P
K r.
Kr.
Hamlin
-------------------Llr. M ille r
Fe d e r a l R e s e r v e
of
N
ew
dank
Yo rk
May 14, 19£8
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. MATTESON
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
jF~tQ■
{
—
CONFIDENTIAL
REPORT OF OPEN MARKET INVESTMENT COMMITTEE WEEK ENDED MAY 9, 1928
Holdings of Earning Assets of Federal Reserve Banks from January 26f 1927_to Date
(000 Omitted)
BILLS
BANKERS ACCEPTANCES
GQVERNMENT SECURITIES
TOTAL
Sales
Outright
Outright
Sales
EARNING
DISCOUNTED
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,
311,587
034
41,515
i.
Apr, 27
443, 553
47, 892
194,007
3,993
314, 332
i , 005, 577
428, 620
May
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,
118,189
786
469, 9 54
2,860
h
430,
312
Sept® 28
70,118
167,
172,030
632
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
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALFS CONTRACTS)
_____________ DURING WEEK ENDED MAY 9, 1928________________
,
.
‘^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
GOVERNMENT SECURITIES
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 -
02 63, 761
014, 820-
BANKERS ACCEPTANCES
Net
Balance
May 9
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
165-
0343, 702
011, 604+
BILLS DISCOUNTED
Net
Balance
ShangJL
Mav 9
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+
COMMENT ON CHANGES T7EEK ENDED MAY 9f 1928
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 c a ll 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, c a ll money was held at 6 per
cent for one whole day* the f ir s t time that this firmness has prevailed in May of any year since 1921#
Some inflow of funds to this
market from other d is tric ts , 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 ir ly 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 f a ir .
The
prevailing rate remained at 4 l/ 2 per cent with some transactions at
4 3/4 per cent*
Government
Security
Market
With a continuance of firmer money conditions prices of
Liberty Loan and Treasury bonds, with the exception of the Third
4 l/4 *s , showed large fractional recessions from the previous week*s
close.
Trading was in fa ir ly large volume as compared with the past
several weeks#
Notwithstanding somewhat of a demand for the short-term cer
tifica te s 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 r tifi
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
Acceptances
Dealers* offerings of unindorsed bankers acceptances continued 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 b ills *
Boston reports that conditions in their d is tric t showed l i t t l e
change from the previous period*
The demand for b ills was about the
same with the supply good although somewhat smaller than the preceding
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 fa irly heavy and some increase
in offerings from banks*
Chicago reports that there was very l i t t l e
demand locally for b ills except for purpose of creating Federal Reserve
Funds#
ReproducedfromtheUnclassifiedIDeclassifiedHoldingsoftheNationalArchives
DECLASSIFIED
AuthorityJ-~, Q.
(
/
OPERATIONS FOR ACCOUNT UNITED STATES TREASURY
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 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 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 » GOVERNMENT 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 c e rtif 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 lik e 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 l e f t 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 \
<>
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 OF HOLDINGS DY MATURITIES
Dec, 15,
Dec, 15,
Mar, 15,
Mar* 15,
Sept,,15,
Dec. 15,
1928 - 3 1/4JC C/l (old)
3 l/4 $ "
(new)
1928
3 3/8$ w
1929
3 l/2 $ T/N
1932
3 1/2JC "
1932
3 1/2$ "
1932
$55,239,000
30,718,500
17,450,000
9, 660,000
5,000,000
22,440,800
0140,508,300
1
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
0• 10^0(
.Mi
/
ITEMIZED STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF ALL
_________FEDERAL RESERVE BANKS FROM MAY 3 TO MAY 9T 1928. INCLUSIVE____________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas CityDallas
San Francisco
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
Totals
02, 420,000
§19,070,000
$16* 650, 000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
New York
Cleveland
Atlanta
51, 395, 000
414, 000
422, 000
Totals
02, 231, 000
Issue
June 1 5 / 1928 C/l
Third l/ l bonds
Misc* GovH Sec#
Sales
0
0
399t 750
Issue
Misc, Gov*t Sec#
$399* 750
*Held temporarily for resale*
BANKERS ACCEPTANCES
(000 Omitted)
Boston
New York
Phila*
Cleve#
Richmond
Atlanta
Chicago
St. Louis
I.:inn#
Tan* City
Dallas
San Fran#
Holdings
Ivlav 2
0 35, 744
58, 621
34, 631
35,558
16,277
19, 636
45,189
3,033
18, 887
16,047
16, 525
26, 679
Regular
Purchased
f rom
Own Mkt.
N,Y.
0 4,703 R. 0
12,113 "
0
19, 712 A*
4,771 R, 0
100 " 4,214
1,134 " 1, 705
184 * 1, 333
2,319 M 5, 533
0
0
1,371
0
0
1,914
638 "
815
278'*
3» 827
From
Matur
Boston itie s £
Sales,
Port*
0
0 6,123*
6,747
1,000
1,000
0
0
1,000
0
0
1,000
0
0
0
2,177
4,962
2,188
651
4,806
275
1, 340
2,920
1,861
4f 133.
Holdings
Mav 9
0 34,324
64,987
38,225
34,910
16,928
21,502
48,235
2r 758
19,918
15,041
16,117
25.651
Other Holdings
( Close May
othtr
Sal es
Contracts B ills
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 - ~ - 3f 004
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
AuthorityJT', Q.
f
6
MATURITIES AND BATES ON DILLS PURCHASED WEEK ENDING MAY 9t 1928
(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 OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
__AND BANKERS ACCEPTANCES DURING WEEK ENDING MAY 9. 1928_______
(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 •
(
/ XSs.
,//
Fe d e r a l R e s e r v e Ba n k
/hk?.. N
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 f ile 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 JF~, Q. 1 0 ^ 0 /
F I i I A S S ~F,AD I
■' FOR SPECIAL CIRCULATION
r, IKTTIATj AlsD RETURN TO SECRJ.
r\zr
Gov. Young/
?/>, Htiaiin L /
Mxv P la t t
Mr, M i l l e r s
Mr•Cunningham
F ed era l R eserv e Bank
of
Mr. Jamea
FvY'S o n u
Mai
N ew Yo rk
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
Marieet Investment Cofiiaittee for the Federal Reserve System
for the period from April £6, 1928 to May £, 19£8 inclusive,
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 MARKET INVESTMENT COMMITTEE WEEK ENDED MAY 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
GOVERNMENT SECURITIES
Outr ight
Sales
Purchases
Contracts
$301,851
$
914
426
304,780
41,515
311,587
314,332
3,993
19,571
302,349
9,261
367,140
4,457
380,559
2,860
469,954
484,054
10,298
507,245
3,385
543,757
4,078
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
BANKERS ACCEPTANCES
Sales
Outright
Contracts
Purchases
032,465
§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
6,000
8,470
6,384
11,390
13,721
318,863
302,932
288,652
331,425
332,098
BILLS
DISCOUNTED
0365,157
397,929
456,023
443,553
428,620
477.311
398,130
400,524
430.312
402,398
477,025
609,209
28,442
40,827
57,451
34,416
31,003
385,224
492,568
524,096
709,073
757,054
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS);
DURING WEEK ENDED MAY 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
GOVERNMENT SECURITIES
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
Net
Balance
Mav 2 •
Chmze.
$7,649$ 35,744
3,81258,621
1,770+
34,631
3,449+
35,558
16,277
454+
19,636
1,332+
45,189
6,101+
6233,033
18,887
404+
1,259+
16,04?
2,707+
16,525
488+
26,679
5f2Q7-
5.271
§278,581
$14,784-
$332,0$8
BILLS DISCOUNTED,
Net
Balance
Chance
Mav 2
$
4320 40,885
6,638+
249,255
10,766+
54,977
64,348
8,099+
4,351+
40,759
1,422+
49,152
39897,146
3,538+
38,194
892+
14,759
6,268+
25,716
424+
9,895
6,413+
71,968
$
673+
$757,054
$47,981+
COMMENT ON CHANGES WEEK ENDED MAY 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
la tte r 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
some reduction in member bank borrowing and a recession in Stock Ex**
change call rates to 5 per centf and even to 4 l/ 2 per cent for a few
hours on Thursday, On Friday, however, the call rate was firm at 5 per
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 f l a 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 F irs t 3 l / 2 t s declined 4/32nds
and the F irs t 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
Acceptances
Dealers* offerings of unindorsed bankers acceptances continued
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 d istrict
slackened during the past period while the supply showed some increase#
B ills moved freely, however, with a ll maturities in f a 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 i l l market was fa ir ly active. Offerings showed l i t t l e change from last
week and continued substantial with the demand slightly improved*
Chicago reports that their b i l l 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
B ills Short
Pro Rata Share
B ills Entitled
to Acquire
B ills Over
Pro Rata Share
§ 58, 811,000 .
$ 54,523,000.
0 4,288,000
193, 788,000
198, 646,000
0
4,858,000
Philadelphia
72, 698,000
74,025,.000
0
1, 327,000
Cleveland
82, 393,000
81,811,000
582,000
0
Richmond
39f 704,000
38, 945,00Q
759,000
0
Atlanta
32,186,000
31,156,000
1,030,000
0
Chicago
108, 632,000
112,969,000
0
St. Louis
19,459,000
19,459,000
.0
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
B ills Acauired
Boston
New York
Totals
0
* 4,337,000
0
510,522,000.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authorityf~. 0 • 1(7^0 (
k
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT 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 to tal 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
Totals
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
0157,158,300
June
Dec*.
Dec*
March
March
Sept*
15,
15,
15,
15*
15.
15.
15,
3 l/Sy£ €/£
1928
0
M
»
(old)
3 lM
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 f t the to ta l 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-~tQ. 10^0{
ITEMIZED STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF ALL
------------------ FEDERAL RESERVE BANKS FROM APRIL 2 6 TO MAY 2. 1928______________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t, Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
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
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 i
014,970, 000
027,890, 000
$12,920,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Sales
Issue
Purchases
Issue
0
0
200 Fourth L/L bonds
* 1,000,000 March 15,1929 C /l
l f OOOt 000 March 15, 1929 C /l
* 1 ,8 9 0 ,0 0 0 'June 15, 1928 11
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#
BANKERS ACCEPTANCES
(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
from
Purchased
Boston
Own Mkt.
N*Y,
Port.
0 7,510 R. 0
0
7, 994 "
0
0
23,024 A,
3,366 R* 0
2, 500
727 « 4,412
3,000
1, 872
0
.1,000
5 « 1,537
1,000
2,025 " 8,904
0
0
0
0
1,565
0
0
0
2, 500
1,870
1,364 *
995
2,000
.1. 459 * 1.869
0
Other Holdings
Close May 3/28
MaturOther
Sales
itie s & Holdings
m r z ...._ Contracts B ills
Sales
19
Ol5*159* o 35,744 0 5,921 0
696
22, 574
58, 621
11, 806
4,096
4, 690
8,418
1,210
4,828
623
1,161
3,111
1, 652
...V840
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
B ills 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, QN BILLS PURCHASED WEEK ENDING MAY 2. 192,3
(000 Omitted)
1-30 days
3—
5/8 - if.
31-60 days
U /i- M
61-90 days
3 3 / 4 * 3 7/8t
$1,005
3,085
1,381
125
0
106
140
428
$ 2, 678
5,713
1, 478
202
5
836
168
381
§
Philadelphia
Cleveland
Atlanta
Chicago
Pallas
§an Francisco
$ 3,494
21, 343
507
400
0
1,083
672
579
333
877
0
0
0
0
384
-7L
$ 7, 510
31,018
3,366
727
5
2,025
1, 364
....1.^459
Totals
$28, 078
$6,270
$11, 461
$1, 665
$47, 474
Boston
New York
Over 90 days
3 3/4 - 4i
Total
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
___AND BANKERS ACCEPTANCES DURING WEEK 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
41f 594
$ 5,880+
5T207-" (Net Change
1-day holdover
and other b ills )
0673+
$63, 727
31,037
41: 594
5 8,9045t 207- (Net Change
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
B ills Purchased
0
T o ta ls
16-30
davs
31-60
davs
61-90
davs
91 days6 months
13,721
110.901
0
80f 308
0 10t 980
99*557
0
64*146
650
8,189
0124, 622
080, 308
0110,537
064,146
$8,839
Over 6
months
Total
$266,951
, ...Q........
$292,302
363.10,1
$266,951
$655,403
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Q.
(
m y 1, 1028
Dear Mr* Matteson:
I
acknowledge reeeipt of and shall bring
to the attention of tho members of the Board your
le tte r of the 50th ultimo, enclosing a report of
trensaotloits in Goveriooeot securities and b&nksrs
acceptances as reported to your eonraittee for the
period from April 19 to April 25, 1928, inclusive*
Tory truly yours,
Walter L* 5ddy,
Secretary
Mr*
B* ■
Tatteson, Secretary,
Open Market Investment Committee,
c/o Federal Reserve Bank,
lew York, N. Y.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
•.f .
Authority
Q. 1 0 ^ 0 (
Fe d e r a l R e s e r v e B a n k
of N e w York
P E R S O N A L
April 3u, 19£8
Dear Governor Young:
We are enclosing, for your f ile s , a report of trans
actions in Government securities and bankers acceptances as
r e tr ie d to the 0±>en Market Investment CoEULittee for tne Federal
Reserve
Systew for the period froni April 19, 1928 to April £5,
19&8 inclusive, together with data received by the GoiMiittee
from the Federal reserve banks.
Secretary, Open Market
Investment Committee
Honorable Roy A. Young,
Governor, Federal Reserve Board,
Washington, D. C.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Q.
f
FOR SPECIAL CIRCULATION
PLEASE READ
/Gov. Young
v M r* Platt
MPTLY, INITIAL AND RETURN TO
ORETARY'S OFFI
HWWSmCI /
Mr. H aalin
Mr. Jamea v
Lie In t
Ur, Miller ^
__
Mr. Cunnir^gh$m
k
F e d e r a l R e s e r vv e B a n k
o f
'\
N e w Yo rk
C0NF1DE1TIAL
% r il 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.
4mJ LcuM/i/^
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
r
Authority/-T
Q.
(
CONFIDENTIAL
REPORT OF OPEN MARKET 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
GOVERNMENT SECURITIES
Outr ight
Sales
Purchases
Contracts
0301,851
0
914
426
304,780
311,587
41,515
314,332
3,993
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
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
BANKERS ACCEPTANCES
Sales
Outr ight
Contracts
Purchases
032,465
0269,362
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,^63
302,9 32
288,652
314, 694
331,425
BILLS
discounted
0365,157.
397,929
456,023
443,553
428,620
477,311
398,130
400,524
430,312
402,398
477,025
609,2Q9
28,442
40,827
57,451
36,062
34,416
385,224
492,568
524,096
619, 617
709,073
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
DURING WEEK ENDED APRIL 25. 1928
(000 Omitted)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicagd
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
N, Y. holdovers
and other b ills
Totals
GOVERNMENT SECURITIES
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-
0293,365
033,041-
BANKERS ACCEPTANCES
Net
Balance
Change
A pril 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
4,489+
0331,425
016,731+
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, 656
13,867
22319,448
3,921766+
9,471
1,22065,555
0709,0 73
089,456+
COMMENT ON CHANGES 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 b ills discounted, and decreases of 033,050.000 in outright purchases
of Government securities and 04,550,000 in investments held under sales contracts*
The la tte r 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# On
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#
On April 20 a ll dealers
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 some
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*
B ills short
Pro Rata Share
B ills Acauired
B ills Entitled
to Acauire
B ills Over
Pro Rata Share
0 63,301,000
$ 51,200,000
$12,101,000
185, 794,000
186, 303i 000
0
509,000
Philadelphia
66,832,000
69,278,000
0
2y446,000
Cleveland
74, 254*000
76,589,000
0
2,335,000
Richmond
3 St 832,000
36,571,000
261,000
0
Atlanta
29, 644,000
29, 257#000
387,000
0
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
16,000
0
San Francisco
63r 116r 000
61f 961T000
1,155,000
0
$731,550,000
$15,285,000
Boston
New York
Totals
$731,550,000
SB
$
0
$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
Authorityf - ~ t Q . ( 0 ^ 0 (
4
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
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 $29,890,000,leaving the
to tal holdings at the close of business Wednesday, April 25, 1928 at 0170,078,300♦
The participation by the Federal reserve banks and the classification of issues
were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
Bo ston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
0 13,130,500
45,155,800
12.251.500
14.177.500
4.541.000
3,991,500
26.212.500
8.660.000
6.570.000
11.540.000
9.227.000
14.621.000
§170,078,300
RECAPITULATION OF HOLDINGS BY MATURITIES.
3
June 15, 1928
Dec, 15, 1928 P* 3
Dec ♦ 15, 1928 • 3
March 15, 1929 m 3
March 15, 1932 m 3
Sept# 15, 1932 m 3
Dec • 15, 1932 m 3
lM
i M
3 /& %
1 /2 %
1 /2 %
1 /2 %
C /l
0 13,140,000
u (old) 61,239,000
i< (new) 32,818,500
it
19*450,000
13,990,000
T/N
u
5,000,000
M
24,440,800
0170,078,300
Keproauced from the Unclassified / Declassified Holdings of the National Archives
----------------
DECLASSIFIED
AuthorityF~, Q. 10$Q /
.
I
ITEMIZED STATEMENT OF TRANSACTIONc AFFECTING THE INVESTMENT ACCOUNT OF ALL
_FEDERAL RESERVE BANKS FROM APRIL 19 TO APRIL 25, 1928
____
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
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
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Issue
Purchases
Sales
* $ 2 ,800, 000
June 15, 1928 C /l
**$5,910,000
7 67. 950
Misc* Gov’ t Sec.
809.500
A
$3, 567, 950
7 6, 719, 500
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*
BANKERS ACCEPTANCES
(OOO Omitted)
Boston
New York
Phila.
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
1,1inn *
Kan, City
Dallas
San Fran*
Regular
Holdings Purchased f rora
Apr.18
Own Mkt. N.Y,
$ 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
Authorityf-', Q.
j
6
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING APRIL 25. 1928
(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
totals
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 1,296
4, 398
2,775
126
67
8
212
2,009
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
0lO,891
013,575
05,310
056,680
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING APRIL 25, 1928
(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 months
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
Authorityf-~, 0.
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 (
PERSON
AL
April io , 19^8
i 8261 f % ddV
t
‘A ‘v a
Dear Governsr Tfquiib i 1
j
-
Hib are enclosing, for your file s , a copy of report
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
v2r. tiuiy yours,
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 x k B
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 to Ajjril lb , ± v c b inclusive, together ifcitji
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,
Govein or, Ftderai Reserve Board,
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 OF OPEN MARKET INVESTMENT COMMITTEE WEEK ENDED APRIL 18, 1928
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
■
viar .
28 l t 257,021
Apr*
11 1,359,280
n
18 1,312,049
(000 Omitted)
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
0301,851
304, 780
311,587
314, 332
302, 349
367,140
380, 559
469,954
484,054
507, 245
543, 757
558, 699
434* «XT
399f X32
379,448
368,8X1
326,406
BANKERS ACCEPTANCES
Sales
Outright
Contracts
Purchases
BILLS
DISCOUNTED
0365,157
397,929
456,023
443, 553
428, 620
477,311
398,130
400,524
430,312
402,398
477,025
609,209
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
173,030
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
8,000
8,470
6,384
9,205
14, 280
318,863
n , 441
3S5
302,932
40,827
57,451
63,381
36,082
492,568
0
288, 652
298,314
3X4, 694
524*096
618, 679
619, 617
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES
____________
DURING WEEK ENDED APRIL 18. 1928________
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
Apr* 18
Chang©
Boston
0
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N*Y# holdovers
and other b ills
TOTALS
16,146
59, 476
29,592
42,978
6,493
7, 849
50,746
26,807
15,309
23, 301
20,838
26,871
0326, 406
$ 3, 6947, 7013. 4453,9881,2776727,3732,4361,8473,2462, 5964, ISO-
042, 405-
BANKERS ACCEPTANCES
Balance
Net
Chance
Apr* 18
0 58,570
53,910
30,086
28,542
13, 324
15,089
38,284
4,486
15,184
13,366
13,969
23, 89S
0 9,661+
3,9494, 661+
969769+
418+
752-+
1.411+
762+
900+
968+
4, 647+
5.989
3fr551-
0314, 694
016,480+
t o
p m w ss.
Net
Balance
Change
Apr* 18
56,396
153,029
48,191
57, 251
33, 359
42,7X7
74,298
41, 437
14,090
23, 369
8,705
66, 775
06X9,617
010,924+
54,0147, 4436,3932, 351+
8, 897+
3,255+
15, 634+
6, 510+
4,073+
1,533+
15, 611+
0
938+
COMIIENT ON CHANGES 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 la tte r
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 ACCOUNT UNITED S T A T E S TREASURY
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
New York
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
$ 47,190,000
$28,058,000
171, 409#000
63f 550, 000
70, 288,000
33, 707,000
97*255,000
20#0 62, 000
26, 967* 000
33, 705,000
26,965,000
56f 80 6f 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
$674,870,000
§674, 870, 000
029,434,000
$291434,000
26,966,000
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 - GOVERNMENT 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 c e rtif
icates and 3 l/z}* Treasury Notes of 1930- 32 for
$ 2 0 , 900,000 .. 3
June 15, 1920 certificates, a ll
at the same price*
$10.000 P000 aggregate amount of March and December 15* 1932
3 l/2$£ 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 f t the to ta l 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 to ta l 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 l l
-...........
FEDERAL RESERVE BANKS FROM APRIL 12 TO APRIL 18. 1928_____________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Clove land
Richmond
Atlanta
Chicago
St. Louis
tlinne&polis
Kansas City
Dallas
San Franeisco
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
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
4AU2J§00
$30,900,000
$78,740,000
$47,840,000
Totals
Nov/ York
Atlanta
San Franciseo
Totals
OTHER TRANSACTIONS IN 'GOVERNMENT SECURITIES
Salos
'
Issue
Purchases
Issue
**§15,550,000 Juno 15, 1928 C /l
*§20,530,000 Juno 15, 1920 C /l
508,300 Misc. Gov*t Sec*
958,950 Misc. GovH Sec.
_________0
17.450 Fourth L/L bonds
$16,075,750
$21*508,950
* 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
Holdings
Apr. 11
$ 48,909
57,059
Phila*
Cleve.
Richmond
Atlanta
Chicago
St. Louis
r.Iinn.
Kan. City
Dallas
San Fran.
25 ,425
29,511
12,555
14,671
37,532
3,075
14,422
12,466
13,001
19.248
Regular
from
Purchased
Own Mkt.
N. Y.
$13,632 R 0 0
9,950 "
0
20,690 A
0
7,770 R
4,346
500 "
122 "
2,166
60 •
l f 773
4,098 "
1,604
0
2,155
1*776
0
2,178
0.
1,041 *
1,765
4.830 *
2.847
Other Holdings
Close At>ril 18. 1928
Matur
Other
Sales
itie s & Holdings
B ills
Contracts
Aw;
18
..Sales.
$
19
$ 58,570
$ 3,971
$ 8,795
1,392
53,92.0
13,899
24,214
3,109
5,615
1,519
1,415
5,030
744
1,014
1,278
1,838
...3*030.
30,086
28,542
13,324
15 *089
30*284
4,486
15,184
13,366
13,969
23.895
0
0
0
0
1,617
0
0
0.
600
836
24
1,136
13
503
36
U
7
9
9
18
03.177
$36,062
Totals
$20,690 $43,462
$288,674 $63,493
$308,705
B ills 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
. (000 Omitted) . .
ENDING APRIL 18. 1928
•
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#
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Dallas
San Francisco
Totals
Total
0 1,244
17,289
1,835
0
O
*1
754
209
724
0 1,728
4,051
2,691
0
2
O
2,944
340
1,928
010,072
7,044
3,244
500
120
59
1,200
373
0 588
2,256
0
0
0
0
0
119
133
013,632
30 , 640
7,770
500
122
60
4,098
1,041
4r830
022,056
013,684
024,657
03,096
063,493
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING \7EEK ENDING APRIL 18. 1920
(000 Omitted)
taixi .....................
(Excluding Sales Contracts)
Purchased
Sold
Matured
Totals
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 )
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
16*30
davs
31-60
days
GovH Securities
B ills 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
61-90
days
91-days Over 6
6 months nonths
664 0302,822 0340 , 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:
We are enclosing, for your file s , * 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 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
&
’F e d e r a l R e s e r v e B a n k
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
REPORT OF OPEN MARKET INVESTMENT COMMITTEE \WE>K ENDED APRIL I I , 1929
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
May
25
June 29
July 27
Aug* 31
Sept, 28
Oct* 26
Nov. 30
Dec* 28
JSn*
Feb ,
Mar*
Apr*
IT
25
29
28
4
11
TOTAL
EARNING
■ ASSETS
$ 972,249
985, 325
1)040,034
1,005, 577
988,510
1,071,130
953,931
1, Ql58} 786
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
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
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
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
385, 224
492, 568
524,096
601, 476
618, 679
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
__________________DURING WEEK ENDED APRIL 11. 1928_______________ __
(000 Omitted)
BILLS DISCOUNTED
GOVERNMENT SECURITIES
BANKERS ACCEPTANCES
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+
COMMENT ON CHANGES WEEK ENDED APRIL l l r 1928
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, OOO in outright purchases of Government securities, and increases
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^
ReproducedfromtheUnclassifiedIDeclassifiedHoldingsoftheNationalArchives
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 much 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
ReproducedfromtheUnclassifiedIDeclassifiedHoldingsoftheNationalArchives
_
•
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 FOR ACCOUNT UNITED STATES.TREASURY
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 INVESTMENT ACCOUNT - GQVERNI^EMT SECURITIES
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 FEDERAL RESERVE BANKS
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
O'! C Coft
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 OF HOLDINGS BY MATURITIES
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
"
1/ 4% "
3 /8 % "
1 / 2 % T/N
1 / 4#
1/2% "
0 1,770,000-—
65.839.000 (old)
62,818,500 (new)
26.450.000
44,990, 000
45,940,800
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*
B ills Acauired
B ills Entitled
to Acauire
B ills Over
Pro Rata Share
B ills Short
Pro Rata Share
kt 61, 61$,000
42,746,000
152,602,000
1S5,536,000
0
2,934,000
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
30,532,000
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
24,427,000
0
805,000
Minneapolis
16,887,000
16,887,000
0
Kansas City
28*946,000
30,530,000
0
Dallas
24,464,000
24,425,000
39,000
San Francisco
50*200*000
51.727.000
0
0611,377,000
&611,377,000
Boston
New York
Totals
*$18,870,000
018,909,000
o
o
0
1,584,000
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
Authority
Q. 1 0 ^ 0 (
ITEMIZED STATEMENT OF TRANSACTIONS AFFECTING'THE INVESTLffiNT ACCOUNT OF ALL
ms, ssi . r ,- j, ^si,ss.
.r r
. r, X
. *ir, i..,
Boston
Hew York
Philadelphia
Cleveland
Richmond
At i.ant a
Chicago
5t* Louis
Minne apolis
Kansas City
Dallas
San Francisco
Totals
New York
Atlanta
Dallas
Totals
GQVERNIvSENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
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 yOCO
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
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
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*
BANKERS ACCEPTANCES
(000 Omitted)
Rec*d by Allotment
Other Holdings
Regular
From
MaturClose Apr»Il/28
Other
Holdings Purchased
from
Salew
Boston itie s & Holdings
Own Mkt.
Apr. .4
Port.
Sales
Aw .11 Contracts B ills
N.Y.
Boston
0 40,054 $21,547 R.
0
0
y'12; 692* ^ 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
4 2 ,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
02,886
&63,381
^288,674
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
jf~"; Q■
(
Authority
MATURITIES AND HATES ON BILLS PURCHASED 7JEEK ENDING APRIL 11. 1928
1-30 days
3 l/Z to 3 5/8^
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
I&llas
San Francisco
0
^Totals
31-60 days
3 3/8 - 3 3/4#
4,102
6,988
2
13
13
100
932
■ 617
91
0
012,858
61-90 days
3 3/8 - 3 3/4#
Over 90-days
3 3/4 - 3 7/8#
Total
2,378
3,960
449
171
57
0
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
028,997
0558
049, 957
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
___AND BANKERS ACCEPTANCES DURING WEEK 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-davs
Gov't Securities
B ills Purchased
9,. 205
0
163f 852 . 61t176
T ota ls
0173,057 $61,176
31-60
davs
61-90
davs
91-days
6 months
Over 6
months
Total
51* 770
73f 9 68
I 655
3r 696
0366, 386
0
$378,016
361, 595
058, 903 075, 738
$4, 351
0366, 386
0739, 611
0
58.903
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 le tte r
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 %q April 4t
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
Authorityf~ t 0 . 1 0 5 0 (
^ ?
Fe d e r a l R e s e r v e B a n k
o f
N e w Yo rk
PERSONAL
Dear Governor Young:
We are enclosing, for your file s , a report of transac
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 t t
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 MARKET INVESTMENT COMMITTEE WEEK ENDED APRIL 4, 1928
Holdings of Earning Assets of Federal Reserve Banks from January 26f 1927 to Date
(000 Omitted)
TOTAL
GOVERNMENT SECURITIES
BANKERS ACCEPTANCES
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
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
______________________DURING WEEK 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
GOVERNMENT SECURITIES
Net
Balance
Apr* 4
Change
$ 20,475
$ 19069,492
52217633, 630
47,652
204667,990
228,702
59,387
37912629,662
9417,474
16627,105
23,874
14021131,709
$377,152
$2,296-
Balance
Apr, 4
$ 40,054
56,385
25,129
31,124
14,356
15,532
42,117
4,461
14,055
12,983
12,176
18,509
Net
Change
$ 6943,033745+
1,565+
1,518+
631+
6, 645+
1,900818+
1,298+
6033 , 0 1 a-
3T092
2.65.1-
$289,973
$1,321+
Balance
Anr* ^
$ 39,553
206,859
45,316
50,542
28,763
29,055
89,118
26,048
6,342
17,523
4,943
57,414
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+
COMMENT ON CHANGES 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 la tte r iter
consisted of decreases i f $$bti jOOO Government securities and $3,800,000 bankers
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*
Philadelphia 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 OOO par amount Third 4 l/4/£ Liberty Loan bonds for account
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;
B ills Acauired
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
•Totals
B ills Entitled
to Acauire
B ills Over
Pro Rata Share
B ills Short
Pro Rata Share
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
$ 39,249,000
142, 547,000
52, 840,000
58, 444,000
28,034,000
22, 428,000
80, 872,000
16, 887,000
22, 429,000
28,032,000
22, 427, 000
47. 231f 000
$8,820,000
0
0
0
0
0
3,057,000
0
0
0
0
0
A
S
?
0561, 420,000
0561, 420,000
011,877,000
Oil, 877,000
0
4, 764,000
3,131, 000
948,000
87,000
82,000
0
0
298,000
571, 000
424,000
1. 572. 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 ACCOUNT - GOVERNMENT SECURITIES
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
ft
Various issu es o f short-term Govern
ments
8,000,000
3 \/z/ Treasury Notes due 1930-32
2,000,000
■
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
ii 65,839,000 (old)
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 STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF ALL
_________FEDERAL RESERVE BANKS FROM MARCH 29 TO APRIL 4. 1928_______ ________
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 GOVERNMENT SECURITIES
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 ■
F.R.Banks - - - -
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 ON BILLS PURCHASED WEEK ENDING APRIL 4. 1928
( OOO Omitted)
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 OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING TVEEK ENDING APRIL 4r 1928
(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
$ 5, 357
Over 6
months
Total
0376, 360
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 members of the Board, your
letter of April 2nd, addressed to Governor Young, en
closing a report of transactions in Government secur
ities and bankers acceptances, as reported to yoirr
Comittee for the period from March 22, 1928 to ?larch
28, 1928, inclusive.
Yery truly yours,
7/alter !*• Bddy,
Secretary*
Mr. W. B. Matteson, Secretary,
Open Market Investment Ooranittee,
c/o Federal Reserve Bank,
Hew York, IT. Y.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority f-T Q■
(
/ \
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:
We are enclosing, for your f i l e s , report o f trans
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 READT
Goy. YoxmgS
Mr. Platt
Q.
0f
^ FOR SPECIAL CIRCULATION ^
\!FTLY, IN ITIA L AND RETURN TO
JRETARY*S OFFT
Hr. Hamlin \S Mr. James r Mr. Mclnt^osli
Mr, M illerv^
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,.&&,■ -f19£8, in c lu s iv e ,
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 MARKET INVESTMENT COMMITTEE WEEK ENDED MaRCH 28, 1928
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
$
GOVERNMENT SECURITIES
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*1on
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 WEEK ENDED MARCH 28, 1928
{OOO Oiaitted)
BlLLS DISCOUNT
GOVERNMENT SECURITIES
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+
COMMENT ON CHANGES uSEK ENDED MARCH 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
Mo>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
.-rJ
3
OPERATIONS FOR ACCOUNT UNITED STaTES TREASURY
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 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:
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 STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF ALL
___________ FEDERAL RESERVE DANKS FROM MARCH 22 TO MARCH 23, 1928____________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Poston
Jtfew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
S t. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Purchases
0 1, 390, OOO
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
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Cleveland
Atlanta
Dallas
Purchases
0
152, 450
0
Totals
0152, 450
Issue
Misc. GovH Sec,
«■»
Sales
0250,000
216, 300
4. 000
Issue
3j, Conver$ions
Misc. GovH Sec.
Fourth L/L bonds
0470, 300
BANKERS ACCEPTANCES
(OOO Omitted)
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
Own Mkt.
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 Ct Holdings
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
jr
•9
9
18
02,
411
3.332
T o t a l ----------- 05,743
Of this amount $2,518,OOO was sold from New York's portfolio and
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 RATES ON BILLS PURCHASED WEEK ENDING MARCH 23. 1928
(OOO Omitted)
1-30 days
3 1 /4 to 3 3/8$
Boston
New York
Philadelphia
Cleveland
Atlanta
Chicago
Dallas
San Francisco
^Totals
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
1,920
9,267
1,265
401
30
1,196
408
692
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
§15,179
OlO, 419
01, 744
043, 535
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
(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
>—da^
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
() ■1 0 $ 0 (
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:
We are e n clo sin g , f o r your f i l e s ,
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 PJSAD F30KT
Y, INITIAL AM5 RETURN TO SECF
Gov. Ycung f
I/>r. Ham liar
Mr. P la tt:
Mr, llille 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
REPORT OF OPEN MARKET INVESTMENT COMMITTEE tVEEK ENDED MARCH 21, 1928
Earning Assets of Federal Reserve Banks from January 26, 1927 to Date
(000 Omitted)
TOTAL
-*1927*
Jan.
Fob*
Mar*
Apr,
May
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!
GOVERNMENT SECURITIES
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
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
302,932
303,601
293,598
28,442
40,827
39,725
39,130
BILLS
DISCOUNTED
$365,157
397,929
456,023
443,553
428,620
477,311
398,130
400,524
430,312
402,398
477,025
609,309
385,224
492,568
472,29 6
476,978
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
____________________ DURING TOBEK ENDED MARCH 21. 1928 ____________ __
(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
GOVERNMENT SECURITIES
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
$379,542
$16,690-
BANKERS ACCEPTANCES
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
534-
$293,598
$10,003*
BILLS DISCOUNTED
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+
COMMENT ON CHANGES \BEEK ENDED MARCH 21. 1928
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 INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
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 we received in exchange like amount of new
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 FEDERAL RESERVE BANKS
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 OF HOLDINGS BY MATURITIES
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 STATEMENT V TRANSACTIONS AFFECTING THE E "~STMENT ACCOUNT OF ALL
FEDER,iL RESERVE BANKS FROM MARCH 15 TO MARCH 21. 1928
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
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 GOVERNMENT
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*
TM & TM2-1928 Exch*
^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 ON BILLS PURCHASED WEEK ENDING MARCH 21. 1928
(OOO Omitted)
1-30 days
3 1 /4 to 3 l / z t
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
G
whicago
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 GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING \7BBK ENDING I/ARCH 21; 1928
(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:
KBe 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 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
REPORT OF OPEN MARKET INVESTMENT COMMITTEE «®EK ENDED MaRCH 14, 1928
^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
May
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
$
GOVERNMENT SECURITIES
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
BANKERS ACCEPTANCES
Outright
Sales
Pure hase s
Contract s DISCOUNTED
^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
CHANGES in earning asset holdings ( exclusive of sales contracts)
DURING viOSEK ENDED MARCH 14. 1928
(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
GOVERNMENT SECURITIES
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-
$396,232
$ 2 ,815-
BANKERS ACCEPTANCES
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
1.475+
$303,601
$4,580+
BILLS DISCOUNTED
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.
COMMENT ON CHANGES .TOC ENDED MARCH 14> 1928
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
$7, 388,000
New York
Totals
0
0
0
07, 388,000
The overages shown in the above statement are being adjusted in the usual
manner by making d is tr ib u tio n to other Federal reserve banks*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
D E C L A S S IF IE D
A uthority
Q . 10^ 0 (
OIL.-.
SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
Transactions consummated in the System Account during the current statement week consisted of
Exchange with the
Fiscal Agent of the
B ritish Government of 030,000,000
3 l /4 f» certificates of indebtedness due
December 15, 1928 for a like amount of 3%
certificates of indebtedness maturing March 15,
1928* (The latter issue of certificates was
later sold to the Treasury as shown below)*
7,000,000 - 3 l/2% Treasury notes due 1930-32 for a like
amount of 3 1/S% certificates due June 15,1928*
Exchange in the
market of
3 l/2/o Treasury notes due 1930~32 for a like
5,000,000
amount of new 3 3/&% certificates of indebted
ness due March 15, 1929* (Delivery of the
latter issue was deferred u n til after March 15).
Total Exchanges
042,000,000
Sale to foreign
correspondent of
Sales to Treasury
for redemption on
March 8 of
March 12, 13 and 14 of
Total Sales
0 1,180,000 - 3 1/8/' certificates of indebtedness due June 15,
1928*
4,125,000
- 3 l/4/o certificates of inde
March 15, 1928, and on
30,000,000 - aggregate amount of 3$ 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 RESERVE BANKS
RECAPITULATION OF HOLDINGS BY MATURITIES
Boston
Now York
Philadelphia
Cleveland
Ric hmond
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 ,V445,000
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 (
Has*
ITEMIZED STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF ALL
FEDERAL RESERVE BANKS FROM MARflH ft TO MARCH 14. 1928
.......... .
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City'
Dallas
San Francisco
totals
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
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
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
077, 305,000
03, 748,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
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*
BANKERS ACCEPTANCES
(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
Own Mkt*
0
0 7, 162 •U*
0 h 101
988
0
9, 800 w
St
12, 704 A#
4r|052
0
2# 342 R.
380 «
1, 699
3, 574
215 n
1,364
1, 376
105 «
1,172
1, 685
H
536
3.290
2*
6, 903
091
0
0
871
1,388
0
1, 658
0
1. 850
(I
152
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 ■W $ Q (
=t 1
P .l A T ,
f
6
MATURITIES AND RATES ON SILLS PURCHASED WEEK ENDING MARCH 14. 1923
(000 Omitted)
1-30 days
3 1 /4 to 3 3/8 1
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
Dallas
San Francisco
Totals
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
$ 1,836
6, 510
547
0
150
52
828
486
888
0 1,056
4, 280
1,129
380
65
3
540
268
72
016,945
011,297
07, 793
0
T^tal
0 7,162
22, 504
2#342
380
215
105
2,536
1,152
....JUJSflL
038,066
868
887
0
0
0
0
0
170
106
$2*031
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEK ENDING MARCH 14. 1928
(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
0107,691
0112,335
Over 6
months
Total
0278.444
0400,887
____ Sl ___
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 Marcih 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
- FOR SPECIAL CIRCULATION
.
PXiEASE F.SADPRO, ^Y. INITIAL AND RETURN TO SE,
Gov. Y o u n g // L'r. Hamlin1 ^ ^ Mr. Jamas*lir, P la tt
of
{
. ARY*S OF^/cE
*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
REPORT OF OPEN MARKET INVESTMENT COMMITTEE WEEK ENDED MARCH 7, 1928
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)
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
TOTAL
EARNING
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
BANKERS ACCEPTANCES
Outright
Sal es
Contracts
Purchases
tO
D a te
BILLS
DISCOUNTEI
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
CHANGES IN EARNING- ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
___ _______________DURING WEIK ENDED MARCH 7, 1928____________ _ _
(000 Omitted)
GOVERNMENT SECURITIES
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
1
00
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
BANKERS ACCEPTANCES
BILLS DISCOUNTED
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
511+
$299,021
$ 3 ,911-
COMMENT ON CHANGES WEEK ENDED MARCH 7. 1928
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 FOR ACCOUNT UNITED STATES TREASURY
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 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 years
B ills Acauired
Boston
$ 29,031,000
Nfrw York
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 INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
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 FEDERAL RESERVE BANKS
Boston
New York
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 HOLDINGS BY , MATURITIES
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
... -.-......... - Vr.
$273,194,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
dECLASSIFIED
_
r
Authority
Q.
(
.t*
4
ITEMIZED STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF aLL
____________ FEDERAL RESERVE BANKS FROM MflRCH 1 TO MARCH 7. 1928 ____________
GOVERNMENT SECURITIES
Purchases
Issue
0 575,000 Dec* 15/28 C/1
267,700 Misc* GovH Sec,
450.000 “
"
,T
New York
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
BANKERS ACCEPTANCES
(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
dt Phila.
Mar. 7 Contracts B ills
Feb. 29 Own Mkt.
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 AND RATES ON BILLS PURCHASED .>JEEK ENDING MARCH 7. 1928
(000 Omitted)
1-30 days
3 1 / 4 - 3 3M
Boston
$
650
New York
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 OF PURCHASES AMD SALES OF GOVERNMENT SECURITIES
AND BAMCERS ACCEPTANCES DURING « K ENDING MARCH 7. 1928
(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
$91,920
31-00
davs
61-90
davs
91 days- Over 6
6 months months
) 0
92.079
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 feswoMWftlMBi In Oov«ram«at
sMKSurit.i& 9 And IwEdBSiNi &Q{^ptKioit§ mi r^poi'tod to
your CoomlttM for Umi period from jyfef«**y 23, X93S,
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 OPEN MARKET INVESTMENT COMMITTEE ’MEEK ENDED FEBRUARY 29, 1928
Holdings of Earning Assets of Federal Reserve Banks from January 26^ 1927 to Date
(000 Omitted)
BILLS
BANKERS ACCEPTANCES
GOVERNMENT SECURITIES
TOTAL
Sales
O
utfight
Sales
Outright
EARNING
DISCOUNTED
Contracts
—19 2*7
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 WEEK ENDED FEBRUARY 29, 1928____________ „
(OOO Omitted)
GOVERNMENT SECURITIES
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
0
0
0
0
0
41+
0
0
0
0
10
$40+
BANKERS ACCEPTANCES
Net
Balance
Change
Feb. 29
$ 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
3. 469-
$302,932
012,492-
BILLS DISCOUNTED
Net
Balance
Change
Feb„ 29
$ 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+
COMMENT ON CHANGES WEEK 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,OOO in ou trigh t purchases of bankers acceptances, and in
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 Mew York the supply of b i l l s was good and
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 FOR ACCOUNT UNITED STATES TREASURY .
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 OOO
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 - GOVERNMENT SECURITIES
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
$273,19 4,000*
The p a r tic ip a tio n by the Federal reserve banks an:l the c l a s s i f i c a
tio n of issu es were as fo llo w s :
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
0 21,090,500
New York
72.534.000
Philadelphia
19, 677,500
Cleveland
22.774.000
Richmond
7, 295, 500
Atlanta
6, 414, 500
Chicago
42,102,500
S t. Louis
13.909.000
Minneapolis
10.550.000
Kansas City
IS, 535, 500
Dallas
14, 822, 500
San Francisco
23. 488. 500
to ta ls
> 2 7 3 ,1 9 4 , 0 0 0
RECAPITULATION OF HOLDINGS BY MATURITIES
Mar*
June
Dec,
Mar*
Dec*
1$, 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 STATEMENT OF TRANSACTION AFFECTUM THE IlTOSTI/iEi/r ACCOUiJT OF iiLL
_______ FEDERAL RESERVE BANKS FROM FEBRUARY 23 TO FEBRUARY 29. 1928
GOVKRMflENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
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
OTHER TRANSACTIONS IN GOVERlt.fENT SECURITIES
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
BANKERS ACCEPTANCES
(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
Own Mkt •
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
New York
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
997
R.
Banks
—
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 ON BILLS PURCHASED WEEK ENDING FEBRUARY 29.1928
(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
0878
Total
0
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 GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK 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:
We are enclosing, for your f i l e s , a report of trans
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
REPORT of OPEN MARKET IN V E S T M E N T COMMITTEE vffiEK ENDED FEBRUARY 22, 1928
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
May
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
GOVERNMENT SECURITIES
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
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
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
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
385, 224
481, 090
461, 044
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
_____ ____________ DURING .i/EEK ENDED FEBRUARY 22, 1928
(000 Omitted)
BILLS DISCOUNTED
GOVERNMENT SECURITIES BANKERS
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-
COMMENT ON CHANGES WEEK END&D FEBRUiiRY 22, 1928
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 PURCHASES OF BiiMCERS ACCEPTANCES
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
Now York
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 INVESTMENT ACCQUIm
T - GOVERNMENT SECURITIES
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 BY FEDERAL RESERVE BANKS
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
$273,194,000
RECAPITULATION OF HOLDINGS BY MATURITIES
March
June
Dec.
March
Doc.
15,
15,
15,
15,
15,
1928
1928
1928
1932
1932
—
-
3
3
3
3
3
1 / 4/. C/I
l/8/£ 0
1/ 4^ ”
l / z f T/N
1/2$ ”
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 STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF ALL
_______ FEDERAL RESERVE BANKS FROM FEBRUARY 16 TO FEBRUARY 22, 1928_________
GOVERNMENT SECURITIES
-
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 GOVERNMENT SECURITIES
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 . AND RATES ON BILLS PURCHASED wEEK ENDING FEBRUARY 22. 1928
(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
T ota ls
$
31-60 days
3 1 /4 -3 1/2%
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
^11,983
$3,917
$1,145
$24,245
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT 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 OF OPEN MARKET INVESTMENT COMMITTEE WEEK 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
GOVERNMENT SECURITIES
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
$
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
. ^
DURING I I K ENDED FEBRUARY 15^1928
(000 Omitted)
BILLS DISCOUNTED
BANKERS ACCEPTANCES
GOVERNMENT SECURITIES
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
0
* 2 , 200+
0
0
0
640
0
27+
0
80
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
2.512+
0323,006
016,875-
0481,090
022, 306+
*Held temporarily for
C0Mr:ENT QN changes WEEK 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
$3,266, 000
.
T i l l s Short
Pro Rata Share
$
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 - GOVERNMENT SECURITIES
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 MATUFITTHg
$ 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 STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Sales
Purchases
Boston
New York
P h iladelph ia
Cleveland
Richmond
A tlanta
Chicago
S t. Louis
Minneapolis
Kansas City
D allas
San Francisco
T otals
$
$
$7,180,000
$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 GOVERNMENT SECURITIES
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
$4,600,000 told to otter Federal reeerve bank®
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority 0. 1(7^0{
MATURITIES and Rates ON BILLS PURCHASED WEEK ENDING FEBRUARY 15, 1928
(000 Omitted)
1-30 days
3 1 /4 > 3 3/8$
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
530
7,762
3,543
0
50
181
7
235
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
$224
$19 ,842
438
269
553
716
407
0
$12,308
T otal,
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
-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
Authority/-T 0-
10^0(
February IS* 1.823
Dear Mr* !*tt#som
1
acknowledge receipt of ».n<i aha 11 brin;: to
th# Attention o f the cwwsbara 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 MARKET INVESTMENT COMMITTEE «
f
K ENDED 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
GOVERNMENT SECURITIES BANKERS ACCEPTANCES
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
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
_________DURING tfEEK ENDED 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
GOVERNMENT SECURITIES
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
$398,984
020,327-
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
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+
COMMENT ON CHANGES « K ENDED 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 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 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 STATIMEDT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOJNT OF
......... ALL FEDERAL RESERVE BANKS FROM FEBRUARY 2 TO FEBRUARY 8t 1928-------GOVERNMENT 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 CO
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 GOVERNMENT SECURITIES
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.
(
MATURI TIES AND RATES ON BILLS PURCHASED WEEK ENDING FEBRUARY 8t 1928
(000 Omitted)
1-30 days
3 to 3 l/2 ^
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 7,508
4, 537
2,945
1,267
258
32
727
182
712
145
1, 610
0
O
0
O
■0
59
85
014,04 6
01,899
041,154
0 1,49 6
0 3, 386
8,078
1,878
1,005
125
O
3, 377
336
272
0 1 6, 5 67
08, 642
. Total
0
19,813
4,842
2,272
433
32
4, 393
7 62
l t099
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING '-lEEK ENDING FEBRUARY 8, 19 28
(000 Omitted)
(Excluding Sales C ontracts)
Government
S e cu ritie s
Purchased
Sold
Matured
0 41,670
61,997
Totals
020, 327-
Bankers
Acceptances
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
PQQ 001
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 Mr# Matteaon*
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,
Hew York, H. I*
tM cIT
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 Uo.uiUi t tc e
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 MARKET INVESTMENT COMMITTEE ' * K ENDED FEBRUARY I , 1928
Holdings o f Earning A ssets o f Federal Reserve Banks froD January 26. 1927.to pato
(Jqqq 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
GOVERNMENT SECURITIES
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 \ilEEK ENDED FEBRUARY 1 . 1926 ____________
(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
GOVERNSNT SECURITIES
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-
$419,311
$15 ,50 6-
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
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+
COMMENT ON CHANGES WEEK ENiJED 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 -~T Q.
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 - GOVERNMENT SECURITIES
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 STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF
ALL FEDERAL RESERVE BANKS FROM JANUARY 26 TO FEBRUARY 1 . 1928
•GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
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 QOVERHUENT SECURITIES
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 AMD RaTES ON BILLS PURCHASED WEEK ENDING FEBRUARY 1 . 1926
(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
T ota ls
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
613
13,056
182
0
89
50
1,074
13
110
l4 4,885
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
•i? 0
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
§27,228
028,436
0 l t844
072,695
0
recapitulation of purchases and sales of government securities
AND BANKERS ACCEPTANCES DURING vilEEK ENDING FEBRUARY 1. 1928
(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.i* w0
, — 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 MARKET INVESTMENT COMMITTEE vffiEK ENDEb JANUARY 25, 1928
Holdings o f Earning A ssots o f Federal Reserve Banks fr o n January 26» 1927 to Date
(000 Omitted)
TOTAL GOVERNMENT 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 WEEK ENDED 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
GOVERNMENT SECURITIES
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-
§434,817
$57, 708 ♦
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 !
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-
COMMENT ON CHANGES «
ENDED 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 ACCOUNT 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 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 early part of th e year:
13i l l s Acquired
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 can
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 INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
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
aBsaasagB^ ^
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
•June 15, 1928 to the market
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|^X)0
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 BY FEDERAL RESERVE BANKS
Boston
New York
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 OF HOLSftNSS BY MATURITIES
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
II
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 made 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 STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT'ACCOUNT OF ALL
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
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 GOVERNMENT SECURITIES
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, AND RATES ON BILLS PURCHASED t t
(000 O n itted)
1-30 days
3 to 3 l/8/o
Boston
New York
P h ilad elp h ia
Cleveland
Richmond
A tlanta
Chicago
D a lla s
San Francisco
■
(
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 1,764
0 3,0 38
4,554
909
O
05
O
1,482
6
72
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
31- 60 days
3 to 3 1/4^
Q
0o
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WSEK 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 ^Ti A':ID RSTUIH TO
f~TQ Ifl^O (
——
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
REPORT OF OPEN MARKET INVESTMENT COMMITTEE \1EEK ENDED JANUARY 18, 1920
(OOO Omitted)
-1927J’an. 26
Feb# 23
Mar. 30
Apr. 27
May
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
GOVERNMENT SECURITIES
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
BANKERS ACCEPTANCES.
Outright
Sales
Purchases
Contracts. DISCOUNTED
$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
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
______________ DURING WEEK ENDED JANUARY 18. 1928__________________
(OOO Onitted)
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
GOVERNMENT SECURITIES
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 ACCEPTANCES
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-
COMMENT ON CHANGES « K
$329,940
BILLS DISCOUNTED
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-
ENDED JANUARY 18. 1928
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 INVESTMENT ACCOUNT » GOVERNMENT SECURITIES
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 FEDERAL RESERVE BANKS
RECAPITULATION OF HOLDINGS BY MATURITIES
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 STATEMENT OF TRANSACTIONS AFFECTING THE INVESTMENT ACCOUNT OF ALL
FEDERAL RESERVE BANKS FROM JANUARY 12 TO JANUARY 18. 1928
GOVERNMENT SECURITIES - 5YSTM INvEStMENT ACCOUNT
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
$114,500* 000
New York
P h il adelphia
Clev eland
A tlanta
S t. Louis
Dallas
San Franciaco
T otals
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Issue
Issue
Sales
••
0
*$
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 11 ” "
18,303,600
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 Mk*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
T ota ls
$
.
W ^ ? Q (
JLT7feU
vrmnaatt
(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
$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 AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING JANUARY 18. 1928
(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:
We are- e n clo sin g , f o r your f i l e s , rep ort o f transac
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?OR f;I v.:;C
r .'.r~ T
'\ri
-i-7 t c
:, ■ i . : ,i p(U
IL'
I?. jO ^ O (
Iirr * Js n n
rv
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 OF OPEN MARKET INVESTMENT COMMITTEE "flEEK ENDED JAfrIUARY 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 WEEK ENDED 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
GOVERNMENT SECURITIES
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
$520,947
$23, 447-
BILLS DISCOUNTED
Net
Balance
Change
Jnnf 11
BANKERS ACCEPTANCES
Net
balance
infra
<J 49,024
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
722-
$337,973
$29,420+
$ 20,246
148,839
41,617
53,623
22,561
28 , 420
64,939
11,925
2,952
12,554
3,006
28,459
$
405+
29,9321 7 ,OSS14, 6622,756—
2 ,5 7 2 1,216+
7 ,3 9 4 400—
4027947 , 392-
0439,141
OBI,? 38-
COMMENT ON CHANGES ^TEEK ENDED JANUARY 11. 1928>
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 ACCOUNT - GOVERNMENT SECURITIES
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
%
n
«
•
68,512*500
3 l /8 #
1928
133,181,000
1928
4 1/4# 3rd L/L
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 FROM JaNUaRY 5 TO JANUARY I I . 1928...___________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
Now York
P hiladelphia
Cleveland
Richmond
A tlanta
Chicago
S t, Louis
Minneapolis
Kansas C ity
D allas
-San Francisco
T ota ls
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
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
$46,000,000
069,628,500
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
023,628,500
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
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 ON DILLS PURCHASED 'TSSK ENDING JANUARY 11. 1928
(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 GOVERNMENT SECURITIES
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
@FedFRASER