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
T4
■*-
Authority £»0»
May 2* i m *
Star Mr. Matte*cm:
1 aoscnoeledge receipt of sad shall bring to the
atteatl m of the members of the Board year latter of
“ar let, addressed to <k>vemor Meyer, enoloaiag reporF
of trinlfotiona in (^ranunent securities and baokera*
acceptances as reported to your ooramittee for the period
from April 23, 1931 to April 29, 1931* inclusive.
Vary truly yours.
2* M* MoClellttul,
Assistant Secretary.
Mr* v,’
. B* MatteaoKi,
Assistant Deputy aovernor.
Federal Baserve Bank,
la* York, B. Y.
*A
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
v*dK'
f
y
4 # "
F e d e ra l R e s e rv e B a n k
of
CONFIDENTIAL
N e w Yo r k
May 1, 1931.
Dr. £• A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweiser:
Enclosed is a report of open market operations for
the period from April 23, 1951 to April 29, 1931 Inclusive,
together with data received from Federal reserve banks.
Very truly yours,
W. B. Matte son
Assistant Deputy Governor
Encl.
^
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»Q»
FOR SPECIAL CIRCULATION
i LEASE READPB^OMPTLY, INITIAL AND RETUB I- 1Gov. Meyer
Mr. Hamlin
Mr. Jaeos
^
v
Mr. M i l l e r <------
off!■
r, «
^ -
F e d e ra l R e s e rv e B a n k
of
y
N e w Yo r k
,V
* %
CONFIDENTIAL
May 1, 1951
t 'ly
V
Bear Governor Meyer: *
Enclosed is a report of open market operations for
_
the period from April 23, 1931 to April 29, 1951 inclusive,
i
together with data received from Federal reserve banks.
Very truly yours,
(• B. Marfcteson
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Beserve Board,
Washington, D. C.
Encl.
W - i 1931
OFFICES O F
,.IBH aOYBB.WftQ
.,rm.nuiiimiujtujji
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»0«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED APRIL 29, 1931
Holdings of Earning Assets of Federal Reserve Banks from April 30, 1950 to Date
(000 Omitted)
BILLS
TOTAL
GOVERNMENT SECURITIES
BANKERS ACCEPTANCES
Outright
Sales
Outright
Sales
EARNING
Contracts
DISCOUNTED
Contracts purchases
Purchases
-193C ASSETS
$233 ,452
$161,846
$47,718
5$2,385
^527,124
Apr. 30 | 982 ,225
45,494
247 ,046
May
130,066
28
958 ,776
529,450
320
231 ,505
94,735
7,578
410
June 25
916 ,038
576,560
2,797
197 ,101
127,965
911 ,554
576,323
July 30
45
4,137
193 ,275
159,137
Aug. 27
967 ,034
601,913
0
5,583
167 ,162
192,161
Sept. 24
601,656
150
973 ,483
3,752
201 ,603
Oct. 29
161,906
0
-975 ,021
601,438
233 ,852
6,176
Nov. 26
595,634
169,930
1,011 ,940
0
39,098
251 ,398
1,351 ,853
686,064
324,746
Dec. 31
43,403
-1931215 ,137
118,453
1,788
945 ,405
609,877
Jag.. 28
0
139 ,847
886
105,431
Feb. 25
895 ,606
599,442
0
165
,425
598,459
83,272
0
Mar. 25
847 ,256
100
135
,250
134,165
17,446
885 ,391
Apr. 32
598,530
0
35,816
155 ,151
133,949
Apr. 29
923 ,572
598,306
0
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
_______________ DURING WEEK ENDED APRIL 29, 1951_________________
(000 Omitted)
Boston
New York
Philadelphia
Gleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N, Y* holdovers
and other bills
Tot als
GOVERNMENT SECURITIES
Net
Balance
Apr. 29
Change
$ 46,182
$ 0
182,713
149,352
0
57,693
0
16,983
0
12,755
281,128
0
33,899
0
25,605
172- .
33,780
1+
29,224
5038,992
0
BANKERS ACCEPTANCES
Net
Balance
Apr* 29
Ghange
§3,446+
$ 11,969
3,480+
23,900
0
0
19,975
652+
1
0
791+
6,390
18,246
1,8147,978
87+
4,920
6888,245
508+
5,010
641,91116,192
11,123
*>598,306
•^224—
$133,949
BILLS DISCOUNTED
Net
Balance
Apr. 29
Ghange
$ 10,328
30,560
18,744
16,973
13,043
10,321
13,669
8,173
3,629
8,624
7,903
13,184
$ 3,168+
6322,922+
5,20 5+1,106+
273+
332+
316228+
435426+
7,624+
$155,151
$19,901+
4*703$
216-
COMMENT ON CHANGES WEEK ENDED APRIL 29, 1951
Total earning assets of the System showed an increase of $38,181,000 for
the current statement week. The changes by classification consisted of decreases
of §224,000 and $216,000 in outright purchases of government securities and bankers
acceptances respectively, and increases of $19,901,000 and $18,370,000 in bills
discounted and bankers acceptances held under sales contract respectively,
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
A uthority £ » 0 »
2
Money
Market
The money market banks were in possession of a moderate sur
plus of reserves at the beginning of the past week, but small losses on
the first two days through Treasury transactions and withdrawals of cur
rency lor week-end circulation, together with some increase in require
ments, made necessary a temporary moderate increase in member bank bor
rowings in order to maintain the average reserve position for the
Wednesday to Friday period ended on the 24th#
In the succeeding days of the week, a large inflow from other
parts of the country, gold imports, and other commercial and agency
transactions provided the New York money market with a volume of funds
.sufficient to offset the payment for $53,000,000 of Treasury Bills and
other net withdrawals of Government funds hero, and to raise member
bank balances to a figure well above requirements. The total amount
of Reserve Bank credit in use in the New York market during these days
showed only a minor additional increase, as dealers* sales of bills to
the Reserve Bank under repurchase agreement did not greatly exceed the
repayment of member bank loans contracted earlier in the week. On
Thursday, April 30, the surplus of funds in New York was partly ab
sorbed by heavy currency requirements incident to the week-end and
month-end and by an outflow of funds to other parts of thr country.
The Stock Exchange rate for call money held at 1 1/2 per cent
throughout the past week. The rate in the outside market, after being
quoted at 1 per ccnt for three days, returned to 1 1/2 per cent on
Monday, the 27th, and remained at that level for tlie rest of the period,
apparently reflecting the approach of the month-end.
i
Trading activity in time money appears to be almost completely
lacking, with nominal bid and asked rates steady. The commercial paper
market remained much the same as a week ago.
Sales volume was limited
by the small amount of new paper which currently entered dealers* port
folios.
While demand continued in excess of available offerings, some
slowing down was indicated by the extreme care exercised by the banks
in the selection of paper for their portfolios. Rates for prime names
were unchanged at 2 1/4 - 2 1/2 per cent.
Government
Seour ity
Market
Following a further reduction in bill rates during the week,
the market for United States Government securities became more active
with the demand broadening to include practically all issues and prices
advanced fractionally.
There was some further indication of foreign
funds in this market shifting from bills to governments. At the close
of the current reportin''; period ended April 2^ the average yield on
the short-term issues was about 1.29$ as compared with 1.43$ at the
close of the previous week, and the average selling price for the
Liberty Loan and Treasury bonds was about 104.62 as compared with
104.33 the preceding week*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0* V2R5%*
5
2
1
2
1
1
*1
2
3
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net
Approx,
Price
Issue
Change m i * .
-1/ 32
7/8$ Gert of Ind. due June 1 5 , 1931 100 7/32
1*09
t»
t»
tt
?t June 1 5 , 1931 100 3/32
- 3/4$
0 .9 8
ti
tt
n Sept. 1 5 , 1931 100 15/32
3/8$
+2/32
1*27
tt
tt Sept. 1 5 , 1931 100 2/32
1*32
1/2*
+2/32
tt
tf
1 .5 1
7/8$
Dec. 1 5 , 1931 100 7/32
+5/32
tt
tt
tf
ft Dcc • 1 5 , 1931 100 7/32
+5/32
7/8$
1*52
ft
tf
tt
tt Mar. 1 5 , 1932 100 8/32
+5/32
1 .7 0
$
- - 1/2$ Treasury Notes *' Dcc. 1 5 , 1932 101 16/32
1.0Q
Treasury Bills n May
1 8 , 1931 , 1 .4 0 $ discount bid, none offerer'
tt
tt July 1 & 2 , 1931, 1 .4 0 $
♦t 1 .2 0 $ a3kcd
**
tt
tt July 2 7 , 1 9 3 1 ,
tt
tt 1 .2 0 $
1 .4 0 $
"
"
.
-
IT
w
«
tt
t!
t»
*new issue
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Net
Price
Change
Issue
Price
Change
Issue
1st 3 l/2s 101 28/32 +5/32 Treas. 4 l/ 4s 1947-52 112 15/32 +19/32
tr
1st ,4 l/4s 102 28/32 +2/32
4s
1944-54 108 6/32 +14/32
tt
3 3/4s 1946-56 106 7/32 +15/32
4th 4 l/4s 104 2/32 +4/32
tt
3 3/8s 1943-47 102 7/32 +14/32
tt
3 3/8s 1940-43 101 26/32 + 6/32
tt
3 3/8s 1941-43 101 28/32 + 8/32
Bankers
Acceptances
Dealers* offerings of unindorsed bankers acceptances were at
the following rates at the close of the current statement week: 1 1 / 4
per cent for 30s, 60s and 90s, 1 3/8 per cent for 120s and 1 1 / 2 per
cent for 180-day bills. This represents a reduction of 1/8 per cent
on all maturities from the previous week’
s offering rates.
Reports
week
ending
April 29
Boston reports that the volume of transactions in the local
bill market decreased during the past week. The lessening demand for
bills together with the lowering of the Reserve bank buying rate to
1 1/4 per cent resulted in a slight increase in the offerings of bills
to the Reserve bank. Dealers were obliged to ship ^7,700 ,000
their
offices in other cities reducing their aggregate portfolios to
^5,742,000. In New York the bill market was less active this week
than it has been for the past few weeks. The supply, while not large
exceeded the demand, which fell off considerably and dealers* aggregate
portfolios increased during the week by approximately ^20,000,000 to
970,000,000. Following the reduction in the Reserve bank's buying rate
on the 27th, bill dealers also reduced their rates by 1/8 per cent on
all maturities to 1 5/8 bid for unindorsed bills up to 90 days, 1 1/4
asked; 1 1/2 bid for 4 months*, 1 3/8 asked; 1 5/8 bid for 5 and 6
months*, 1 1/2 asked. Indorsed bills 1/8 less. Philadelphia reports
that its acceptance market was a little more active. Further reduction
in rates was accompanied by an increase in amount of new bills during
the week with the demand, however, continuing only fair. Chicago re
ports that the supply of bills was small in its district during the
past period with the demand fair. Dallas reports that -che bill market
in its district continued dull with no demand. 'Aiere were no offerings
to the Reserve bank*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
4
OPERATIONS FDR ^CCOUNT OF UNITED STATES TREASURY
There were no transactions consummated under Treasury authorization
during the current statement week.
SYSTEM SPECIAL V E S T M E N T ACCOUNT - GOVERNMENT SECURITIES
During the current statement week exchanges were advantageously
effected in the holdings in the System Account of
$
a total of
750,000 - 2 7/3$ certificates due June 15, 1931
3,000,000 - 1 1/2c/o
"
n Sept. 15, 1931
$3,750,000 for a like amount of short-term issues as follows;
$
750,000 - 1 3/4% certificates due June
1.500.000 - 1 7/8$
"
" Dec.
1.500.000 - 2
$
M
” Mar.
15, 1931
15, 1931
15, 1932
§3,750,000
These exchanges did not affect the total amount of holdings in the
Account which remained at $402,300,000.
The participations by Federal reserve
banks and the classification of issues held in the Account at the close of busi
ness Wednesday, April 29, 1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dall a s
San Francisco
Totals
%
45,472,500
68,851,000
37,245,000
47,690,000 :
15,830,500
10,146,500
61,201,000
15,274,000
18,248,500
33,733,000
19,241,000
29,367,000
$402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
May
May
July
July
June
June
Sept.
Sept.
Dec.
Mar.
Dec.
Oct.
4,
18,
1.
2,
15,
15,
15,
15,
15,
15,
15,
15,
1931
1931
1931
1931
1931
1931
1931
1931
1931
1932
1932
1938
- Treas. Bills
tt
tt
ti
ti
-
tt
ti
2
1
1
2
1
2
3
- 4
7/8%
3/4%
1/2%
3/8%
7/8%
-
C/I
tt
tt
tt
tt
t»
1o
1/2% T/N
1/4% 4th L/L
&
2,000,000
19,200,000
21,300,000
11,500,000
43,031,000
24,050,000
54,027,000
72,880,500
89,126,500
46,832,000
14,012,000
4,341,000
#402,300,000
Reproduced from the Unclassified 1 Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
/
5
ITEMIZED STATEMENT OP TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
______________________ FROM APRIL 25 TO APRIL 29, 1951, INCLUSIVE______ _^
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Purchases
$ 423,500
642 *000
547,500
444,500
147,500
94,500
570,500
142,500
170,000
514,500
179,500
275,500
Sales
$ 425,500
642,000
347,500
444,500
147*500
94,500
570,500
142,500
170,000
314,500
179,500
273,500
§5i 750,000
$3,750,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
Purchases
Issue
Sales
Issue
New York
,000,000 Mi sc, Gov't Sec,
#9,000,000
Misc. Gov’
t Sec*;.
!!
M
H
tt
tt
tt
Atlanta
209,800
212,050
♦
»
tt
1»
tt
it
Minneapolis
618,500
790,500
Dallas
0
50,000
4th 4 1/4% L/L Bds*;
Totals
$9 ,828,300
#10,052,550
BANKERS ACCEPTANCES
(OOO Omitted)
By Allot
ment from
New York
$ 2,86?
0
Ma turities &
Sales
f 2,762
6,102
Other Holdings
Close April 29/31
Sales
Other
Bills
Contracts
§ 5,517
|
80
361
2^|830
Purchased
Holdings
April 29
Own Mkt.
Boston
$ 3,339 R«
$ 11,969
New York
9,582 "
23,900
23,222 A.
Phila,
0
0
105
0
0
0
0
Cleve#
19,323
0
3,926
3,274
19,975
107
0
Richmond
1
0
42
0
1
0
0
5,599
Atlanta
0
2,089
517
6,390
0
1 *298
Chicago
1*555
143
403 B.
4,936
20,060
7,153
18,246
7,891
St. Louis
300 "
2,242
2,455
7,978
37
0
Minn#
24
5,608
1,415
2,103
4,920
0
0
Kan. City
31
7,737
8,245
0
2,358
1,850
0
Dallas
5,074
1,691
32
1,627
5,010
0
0
1,114
San Fran.
18,103
1,523 "
72
16,192
1*760
5,194
$118,339
$38?369
#23,222
Totals
$35,816 $ 1,551
$33,882
$122,826
Bills held overnight by New York for distribution to other Fed. Res. Bks, 345
M
tf
»»
n
tt in Foreign Suspense Account - tt
tt
9,227
---------------- --- $11,123
Holdings
April 22
$ 8,533
20 ,420
NOTE;
R. indicates Retained and A* indicates Allotted in the above statement.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
■*
Authority £«0»
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING APRIL 29, 1951
(000 Omitted)...
1-30 days
1 1/4-1
31-60 days
1 1/4-1 3/8%
61*90 days
1 3/8-11/3%
Boston
New York
Chicago
St. Louis
San Francisco
$ 1,734*
19,167
0
300
1^473*
*1*948
4,304
221 ***
0
50
$ 0 .
9, 3l9
182
0
0
Totals
$22,674
$5,923
$9,501
Over 90-days
1 3/8%
$257
.
Total
.$ 3,339
' 32,804
403
300
1,523
O
0
0
$271
$38,369
s’ aassaassmqBB
*Purchased at" 1 1/4 to 1 1/2%
**Purch&sed at 1 3/8 to 1 1/2%
***Purchased at 1 1/2%
- RECAPITULATION OF RTRCHASES AND SALES OF GOVERNMENT SECURITIES AND BANKERS
______
ACCEPTANCES DURING WEEK ENDING APRIL 29x 1931______
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
Totals
Bankers
Acceptances
Total
$13,578
13,802
0
$38,369
0
33,882
$ 4,487+
4,703-(Net Change
1-day holdover
fc other bills)
$51,947
13,802
33,882
$n 4,263+
4,703-(Ne')t Change
1-day holdover
& <?ther bills)
$
$
$
224-
216-
440«
HOLDINGS OF GOVERNMENT SECURITIES AND BANIERS ACCEPTANCES APRIL 29, 1931
(-q
q
q
o m i t t e d )
'
'
'
'
n ''
(Including Sale,s Contracts)
Within
15-days
Gov*t Securities
Bills Purchased
Totals
31-60
days
61-90
days
91 days6 months
$ 89,716
22,301
$45,300
18,440
|149,719
308
$46,521 %112,017
$63,740
$150,027 ' $289,371 $768,071
as-aaa;
16-30
days
$ 5,000 $19,200
101,395
27,321
$106,395
Ove^p 6
months
Total
|289,371 $598,306
169,765
G
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
'
Authority £»Q»
April 27, 1931
Bear Mr* Matteson:
I
acknowledge reseipt of and shall bring
to the attention of the mesbers of the Federal Re
serve Board your letter of April 24t f addressed to
Governor Maurer, enclosing a report of open market
operations for the period from April 16* 1931 to
April 22, 1931, inclusive*
Veiy truly yours,
Ern M. MoClelland,
Assistant Seoretaiy
Hr* 15* B* Mattes on.
Assistant Deputy Governor,
Federal Reserve Bank,
Hew York, H* Y.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E*Q«
6,.
,
CONFIDENTIAL
Ne w Yo r k
April 24, 1951.
Dr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D." C.
Dear Dr. Goldenweiser:
Enclosed is a report of open market operations for
the period from Arpil 16, 1951 to April 22, 1931 inclusive,
ft*
fy?/ &
F e d e ra l R e s e rv e B a n k
of
V
Assistant Deputy Governor
Repioduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
> V
E«Q« IflRSfr
/
A
/
Authority
F O R SPECIAL CIRCULATE
F L M S E REiu/PROMPTLY, INITIAL AND K E I U B ^ U
Gov.'Meyer
Mr. H a m l i n IS*
Mr. Janies
Mr. M i l l e r
/
/
OffIcs
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
CONFIDENTIAL
April 24, 1931.
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from April 16, 1951 to April 22, 1951 inclusive,
together with data received fr^Federal reserve banks.
*s.
F. B. Matte son
Assistant ^eput^r Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
RECEIVED
/ . ° r ?7 1931
O F F IC E O F
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £*0« VTKSfr
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED APRII 22, 1931
Holdings of Earning Assets of Federal Reserve Banks from April 23, 1930 to Date
(000 Omitted)
TOTAL
EARNING
ASSETS
$1,004,963
982,225
958,776
916,038
911,554
967,034
- 973,483
975,021
1,011,940
1,351,853
-1930Apr. 23
Apr. 30
May
28
June 25
July 30
Aug. 27
Sept. 24
Oct. 29
Nov. 26
Dec. 31
^-1931- Jan. 28
Feb. 25
Mar. 25
Apr. 15
Apr. 22
945,405
895,606
847,256
862,116
885,391
GOVERNMENT SECURITIES
Outright
Sales
Contracts
Purchases
|
190
§527,198
527,124
2 ,385
529,450
320
410
576,560
576,323
45
601,913
0
601,656
150
601,438
0
595,634
0
43,403
686,064
609,877
599,442
598,459
598,635
598,530
BANKERS ACCEPTANCES
Outright
Sales
Purchases
Contracts
§78,999
$177,870
161,846
47,718
45,494
130,066
94,735
7,578
127,965
2,797
159,137
4,137
192,161
5,583
3,752
161,906
6,176
109., 9 30
324,746
39,098
0
0
100
0
0
118,453
105,431
83,272
127,220
134,165
BILLS
DISCOUNTED
§211,491
233,452
247,046
231,505
197,101
193,275
167,162
201,603
233,852
251,396
1,788
886
0
4,259
17,446
215,137
189,847
165,425
132,004
135,250
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
________________ DURING VfEEK ENDED APRIL 22, 1931
(000 Omitted)
Boston
Nev/ Y 0rk
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
G0VERNI1ENT SECURITIES
Net
Balance
Apr. 22
Change
$ 46,182
3 o
182,714
0
49,352
0
57,693
16216,983
0
12,757
9781,128
0
23,899
0
109+
25,777
33,779
0
29,274
45+
38,992
0
$598,530
$105**
BANKERS ACCEPTANCES
Not
Balance
Apr* 22
Change
§ 1919 8,523
33420,420
0
0
19,323
1,376621
5,599
468+
2,20020 ,060
7,891
1,9605,608
2517,737
2735,074
40471+
18*103
15,826
13,957+
#134,165
$ 6,945+
BILLS DISCOUNTED
Balance
Net
Apr.. 22 Change
§ 374# 7.,160
5,048+
31,192
1,437+
15,822
2,66911,768
11,937
2,538278+
10,048
986+
13,337
999+
8,489
143,401
124+
9,059
151+
7,477
1825,560
§135,250
$3,246+
QQMMENT ON CHANGES WEEK ENDED APRIL 22, 1951
Total earning assets of the System showed an increase of $23,273,000 for
the current statement week. The changes by classification consisted of a decrease
of ^105,000 in outright purchases of government securities and increases of
<^6,945,000 and ^3,246,000 in outright purchases of bankers acceptances and bills
discounted respectively, and ^13,187,000 in boi*l$ers acceptances held under sales
contracts.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
>*
Authority S«Q .
3
Mone;r
Market
At the opening of the past reporting week, reserves of tie
New York banks were impaired to a rather considerable extent, a condi
tion that was aggravate'5 by losses to the market on April 16 and 17
through an outflow of funds to other centers, currency withdrawals for
week-end circulation, and net Treasury withdrawals here, the effect of
which was only partially offset by a material decline in the reserve re
quirements of the banks. Tho accumulated deficit caused a considerable
increase in the amount of Reserve Bank credit outstanding, about half
of which represented member bank borrowings and much of the remainder
offerings of bills to this bank under repurchase agreement.
In the succeeding days of the week, a substantial inflow of
commercial funds and return of currency from circulation occurred which
exceeded continued net withdrawals of Treasury funds frcm this market.
These gains, together with the large excess of actual reserves resulting
from the balancing of the average bank reserve position for the three
day period ended April 17, permitted the repayment by the New York banks
of their Reserve Bank loans and the retirement by dealers of the re
purchase agreements entered into earlier in the week.
Following an advance of 1/2 per cent to 2 per cent late in the
afternoon of April 16, Stock Exchange call money returned to 1 1/2 per
cent on April 17 and held at that level for the balance of the week.
The rate for call money in the outside market followed a similar coursc
until April 22 when a 1 per cent rate was quoted for tho first time
since April 10.
Federal funds rose as high as 1 1/2 - 1 3/4 per cent,
but by April 22 had declined to 3/4-1 per cent.
On Thursday, tho 23rd,
outsido money continued to bo available at 1 per cent,
Nominal rates for 60 and 90 day time loans declined about 1/4
per cent during the week, but other maturities held at the previously
quoted levels. Bid and asked quotations for all mpturities now are:.
60 days, 1 1/2 - 2 per cent; 90 days, 1 3 / 4 - 2 per cent; 4 months,
2 - 2 1/4 per cent; 5 and 6 months, 2 1/4 - 2 1/2 per cent.
Little
interest was shown in fixed maturity accommodation during the week;
trading appeared to have been confined chiefly to a little 90 day money
which loaned at 2 per cent. In commercial paper, sales continued in
limited volume, due chiefly to the scarcity of new creations.
Bank
investment demand remained at much the same level as heretofore, but
rates were unchanged at 2 1/4 - 2 1/2 per cent for prime material.
Government
■ ....... JM'H11...... .
Security
Market
The market for United States Governnent securities was less
active this v/eek than last with very little change in prices. The
demand was best for the very short maturities and the Fourth Liberty
Loan bonds, the latter issue continuing to sell at or slightly below
104.
At the close of tho current reporting period the average yield
on the short-term issues was about 1.43$ as compared with 1.47$ at tho
close of the preceding woek, and the average soiling price for the
Liberty Loan and Treasury bonds was tho sane as it was tho previous week,
namely, 104.33,
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0*
2
1
2
1
1
2
3
Dealers1 Offering Prices at the Close of the Current Statement Week
and $et Changes from the Glose of the Previous Statement Week
Net
Approx*
Issue
Price
Change
Yield
7/8% Cert, of Ind. due June 15, 1931 100 8/32
-l/32
1.11# '
3/4%
"
" "
" June 15, 1931 100 3/32
+1/32
1.08%
3/8%
«
w "
« Sept. 15, 1931 100 11/32
---1.48%
---1.49%
1/2%
* "
"
M Sept. 15, 1931 100
7/8% "
"
"
« Dec. 15, 1931 100 2/32
---1.77%
%
"
«
M
tr Mar. 15, 1932 100 3/32
+1/32
1.89*1
1/2% Treasury Notes « Dec. 15, 1932 101 16/32
-1/32
1.14%
Treasury Bills n May 4 and 5, 1931,1.40% discount bid, none
offered
Treasury Bills M May
18, 1931,1*40% discount bid, 1.25% asked
tf July 1 & 2, 1933, 1.45%
»
" 1.30% ”
tT
tf
Closing Sale or Bid Prices on the New York Stock Exchange at
the Close of the Current Statement Week and Not Changes
from Glose of the Previous Statement Week_________
Net
Issue
Price
Change
Issue
Price
1st 3 l/2s 101 23/32 (Bid)- --- Treas,4 l/4s 1947-52 111 28/32
1st 4 l/4s 102 26/32
---" 4s
1944-54 107 24/32
4th 4 l/4s 103 30/32
-1/32
" 3 3/4s 1946-56 10 5 24/32
” 3 3/8s 1943-47 101 25/32
" 3 3/8s 1940-43 101 20/32
” 3 3/8s 1941-43 101 20/32
Net
Change
----2/32
-4/32
+2/32
+ 2/32
+1/32
Ba nkcrs
Acceptances
Dealers* offerings of unendorsed bankers acceptances were at
the following rates at one close of the current statement week: 1 3/8
per cent for 30s, 60s and 90s, 1 1/2 per ccnt for 120s and 1 5/8 per
ccnt for 180-day bills* This'represents a reduction of 1/8 per cent
on all maturities from'previous week’
s offerings.
R eports
week
ending
April 22
Boston reports that its bill market showed some improvement
over the previous week. Both the s u p p l y and demand increased. Some
local banks in need of funds released a part of their bill holdings to
local dealers which accounted for most of the supply reported for this
period. Ninety day bills moved best. In New York money conditions
were firmer the first two days of the period and dealers* purchases of
bills exceeded their sales considerably. This resulted in aggregate
portfolios increasing: to about $90,000,000. Money conditions then be
came easier and a good demand developed for bills which was substan
tially in excess of supply and at the close of the week dealers’aggre
gate portfolios had declined to approximately $49,000,000, which was
$28,000,000 less than at the close of last week. The last day of the
period dealers reduced their rates 1/8 per cent on all maturities to
1 1/2 bid for unendorsed bills up to 90 days, 1 3/8 asked; 4 months*,
1 5/8 bid, 1 1/2 asked; 5 and 6 months’1 3/4 bid, 1 5/8 asked, in
dorsed bills 1/8 less, Philadelphia reports that its acceptance market
was extremely quiet. The supply of new bills was very small resulting
in dealers lowering their rates 1/8 per cent on all maturities on
April 22. The demand was only fair although dealers reported their
portfolios considerably lower.
Chicago reports thut the recent change
in bill rates had no apparent effect in its market which continued very
quiet. Dallas reports that its bill market continued dull with small
demand. Offerings to the reserve bank were negligible.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0«
4
OPERATIONS FOB ACCOUNT OF UNITED STATES TREASURY
The only transaction under Treasury authorization during the current
statement week was a sale of $125,000 - 3 1/2$ Treasury notes due Itecember 15,
1938, account Germ&n Special Deposit Account.
SYSTEM .SPECIAL INVBSTtOTT ACCOUNT - GOVERNMENT SECURITIES
Daring the current statement week exchanges were advantageously effected
in the holdings in the System Account of
$ 15,300,000
1.000.000
15,000,000
500,000
a^total of
-
Treasury Bills due May 18, 1931
8 7/8$ certificates due June 15, 1931
2 3/8$
"
M Sept.15, 1931
1 7/8$
w
* Dec. 15, 1931
$81,800,000 for a like amount of short*-term issues as followsi
$
300,000
5.000.000
5.000.000
4,500,000
7.000.000
-
Treasury Bills due July
*
"
" July
1 1/8$ certificates due
1 7/8$
*
*
2
$
"
»
1, 1931
8, 1931
Sept. 15, 1931
Dec, 15, 1931
Mar. 15, 1932
$21,800,000
The total amount of holdings in the Account was not affected by these exchanges
and remained at $402,300,000.
The participations by Federal reserve banks and
the classification of issues held in the Account at the close of business
Wednesday, April 88, 1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
$ 45,472,500
68,851,000
37,245,000
47,890,000
15,830,500
10,146,500
61,201,000
15,274,000
18,248,500
33,733,000
19,241,000
29,367,000
$408,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
May
4,
May 18,
July 1,
July 2,
June 15,
June 15,
Sept.,15,
Sept.,15,
Dec. 15,
Mar. 15,
Dec. 15,
Oct. 15,
1931 - Treasury Bills $ 2,000,000
«
tt
1931 19,200,000
W
ft
1931
21,300,000
M
tt
1931 11,500,000
1931
2 7/e# C/I
43,781,000
1931 - 1 3/4# «
23,300,000
1931 - 1 1/2# tf
57,027,000
1931 - 2 3/8# tt
72,880,500
1931 - 1 7/895 tt
87,686,500
tf
1932 - 2
45,332,000
#
1932 - 3 1/2# T/N
14,012,000
1938 - 4 1/4# 4th L/L
4,341,000
#408,300,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0« 1235$*
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING- THE INVESTMENT ACCOUNT OF ALL FEDmaL RESERVE BANKS
_____________________ FROM APRIL 16 TO APRIL 22, 1951, INCLUSIVE____________________
GOVERNI,ffiNT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas Gity
Dallas
San Francisco
Purchases
# 2,464,000
5,751,000
2,018,000
2,584,000
858,500
549,500
5,515,500
828,000
989,000
1,828,000
1,045,000
1,591,500
Sales
§2,464,000
5,751,000
2,018,000
2,584,000
858,500
549,500
5,515,500
828,000
989,000
1,828,000
1,045,000
1,591,500
Totals
.$21,800,000
#21,800,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
Cleveland
Atlanta
Minneapolis
Dallas
Totals
Purchases
0
$
650*950
2 ,509,600
50,000
Issue
-
Misc. Gov’
t Sec.
T»
tf
M
Fourth L/L bonds
$
Sales
Issue
162,200 5$ Conversions 1947
'227#350 Miso . CknrH 1Soci
»r
w
2,199 r950
5,000 4 1/4f0 Treas.Bds. 1952
§3,094,500
42 ,990,550
bankers acoeitances
(000 Omittec)
By Allot
ment from
New York
1,510
0
Matur
ities &
Sales
J 2,158
6,457
Other Holdings
Close April 22/31
Other
Sale s
Contracts Bills
$ 8,907
80
5,919
361
Purchased
Hoidings
22
Own Mkt .
* 8 ,525
Boston
§ 457 R.
5,623 "
20 ,420
Nevr York
12,650 A.
0
105
Phila*
0
0
0
0
0
19 ,323
107
20,699
2,06^
5,457
0
Cleve*
0
42
62
65
0
1
Richmond
0
0
507
1,159
Atlanta
5 ,599
0
5,151
671
0
829
2,699
5,289
143
Chicago
22,260
390 R*
20 ,060
37
7 ,891
St. Louis
9,851
0
5,128
0
1,168
24
5,859
Minn.
1,002
5,608
0
0
751
Ivan. City
1,202
1,475
31
7 ,737
0
8,010
0
859
32
1,268
5*074
Delias
25 R*
0
5,478
1,791
72
2,648 "
1,281
5,858
18 ,103
San Fran*
18,052
$28*805
§118,539
$17,446 $> 1 ,541
Totals
$125,551
*>21 ,-793
spl2,650
1 ,010
Bills held overnight by New York for distribution to other Fed. Res. Bks.1!
tt
»»
13 ,275
in Foreign Suspense Account - - Total - - $15,826
Holdings
Apr. 15
§ 8,714
21,254
NOTEi
R. indicates :Retained and A, indicates Allotted in the above statement*.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
6
MATURITIES AM) RATES ON BILLS PURCHASED WEEK ENDING- APRIL 22, 1951
(000 Omitted)
1-30 days
1 1/2$
Boston
New York
Chicago
Dallas
San Francisco
Totals
$
31-60 days
1 1/2$
407*
11,336***
190
25
1,118**
$13,076
$
50
$,474***
200
0
1*525**
$5,249
61-90 days
1 1/2-1 5/8$
Over 90-days
1 5/8$
0
3,463
0
0
3
0
0
0
0
2
$3,466
$2
Total
$
457
18,273
390
25
2,648
$21,793
^Purchased at 1 3/8$, **Pur':hased at 1 1/2 to I 5/8$, ***Purchased at 1 3/8 to 1 1/2$
RECAPITULATION CF PURCHASES AND SALES OF GOVERNIWT SECURITIES
AND BANKERS ACCEPTANCES DURING v/EEK ENDING APRIL 22, 1931
(000 Omitted)
(Excluding Sales Contracts)
Gov ernment
Securities
Purchased
Sold
Matured
Totals
$ 24,790
24,895
0
105-
Bankers
Acceptances
‘
.I'otal
■
>21>793
48
28,757
5 7,01213,957+ (Net Change
1-day holdover
and other bills)
$ 6 >945+
.^46,583
24,943
28,757
"j 7 ,11713,957+ (Net Change
_______ 1-day holdover
and other bills)
■j 6,840+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES APRIL 22, 1931
r^Qk)0 Omitted)
(Including Sales Contracts)
Within
15-days
Gov’
t Securities $ 5,000
Bills Purchased
95,439
Totals
$100,439
16-30
days
31-60
days
61-90
days
$19,200
29,167
#91,716
13,097
040,300
13,800
$48,367 $.04,813
$54,100
91 days6 months
Over 6
months
Total
$149,745
108
$292,569
0
$598*530
151,611
$149,853
^92,569
$750,141
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»0«
April I S , 1931
Dear Mr. Sfcttaaons
1
acknowledge receipt of mid shall bring
to the attention of the nweabera of the Federal Re
serve Board your letter of April 17th, addressed to
tiavemor Meyer* enclosing report of open market
operations for the period from April t, 1951 to
April 15, 1931 inclusive*
Very truly youra#
*1* C* Hoell,
Assistant Secretary
Mr. W. 8* Hatteaon,
Assistant Deputy Governor,
Federal leserve .Bank.
. Hew York, K. Y*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q»
f
/f
f H ■! *
i
—
Fe d e r a l R e s e r v e B a n k
of
COKFIDBHTIAX.
N e w Yo r k
April 17, 1931.
Dr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweisers
Enclosed is a report of open market operations for
the period from April 9, 1951 to April 15, 1931 inclusive,
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« V2R5%'
FOR SPECIAL CIRCULATIOf
fLEASE READ PROMPTLY, INITIAL AND RETURN TO SECRETARY’
S OFIiei
J Gov. Meyer
Mr. Hamlin V*" _ Mr. Jamea 1/
.vs V
Mr. Millert^^-'"5'
x
Mr. Pol*
F e d e ra l re s e rv e B an k
■X
of
N e w Yo r k
CONFIDENTIAL
April 17, 1931.
Dear Governor Meyer:
Ehclosed is a report of open market operations for
the period from April 9, 1931 to April 15, 1931 inclusive,
Assistant Beputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. G.
Encl.
r e c e iv e d
APR 1 8 193!
OWlOE OP
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED APRIL 15, 1951
Holdings of Earning Assets of Federal Reserve Banks from April 16, 1950 to Date
(000 Omitted)
ios!
<1
*1930Apr. 16
Apr. 30
May
28
June 25
July 30
•kUgr 27
Sept, 24
Oct, 29
26
Dee* 31
-1951Jan, 28
Feb* 25
Mar, 25
Apr,
8
Apr, 15
945 ,405
895 ,606
847 ,256
912 ,969
862 ,118
609,877
599,442
598,459
598,655
598,635
s
Outright
Purchases
$527,203
527,124
529,450
576,560
576,323
601,913
601,656
601,438
595,634
686,064
1
TOTAL
EARNING
ASSETS
#1,061 ,476
982 ,225
958 ,776
916 ,038
911 ,554
967 ,034
973 ,483
975 ,021
i ; o n ,940
1,351 ,853
SECURITIES
Sales
Contracts
| 8,190
2,385
320
410
45
0
150
0
0
43,403
0
0
100
0
0
BANKERS ACCEPTANCES
Outright
Sales
Purchases
Contracts
$114,566
$187,848
161,846
47,718
45,494
130,066
94,735
7,578
2,797
127*965
4,137
159,137
5,583
192,161
3,752
161,906
6,176
169,930
39*098
324,746
118,453
105,431
83,272
142,801
127,220
1,788
886
0
28,928
4,259
BILLS
DISCOUNTED
$213 ,804
233 ,452
247 ,046
231 ,505.
197 ,101
193 ,275
167 ,162
201 ,603
233 ,852
251 ,398
215 ,137
189 ,847
165 ,425
142 ,585
132 ,004
CHANGES IN EARNING- ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
___ ______________ DURING WEIK ENDED APRIL lb, 1951_______________
(600 Omitted)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N„ Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Net
Balance
Apr. 15
Change
$ 46,182
4 0
0
182,714
49,352
0
57,855
0
0
16,983
12,854
101+
81.128
0
23,899
0
7+
25,668
0
33,779
29,229
1280
38,992
$598«635
v 20-
BANKERS ACCEPTANCES
Net
Balance
Change
Apr* 15
$ 8,714
$ 2,75321,254
6,0010
0
251+
20,699
5962
1,4035,131
2,84322,260
9,851
126+
5,859
797888,010
5.478
1076518,032
1,869
1,219-
$127,220
$15,581-
BILLS DISCOUNTED
Net
Balance
Apr. 15
Change
212+
$ 7,534 $
8,61126,144
39714,385
726+
14,437
14,475
1,3171,4759,770
716+
12,351
69+
7,490
3,415
2332+
8,935
2467,326
385,742
$132,004
$10,581-
COMMENT ON CHANGES WEEK ENDED APRIL i15, 1931
Total earning ass 3ts of the System showed a decrease of $50,851 ,000
:'or the current statement week. The changes by classification consisted of
ue^reases of $15,581,000 end $10,581,000 in outright purchases of bankers accept
ances and bills discounted respectively, and $24,669,000 in bankers acceptances
held under sales contracts.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
•*
Authority £*0«
Money
Market
The various factors affecting the money market resulted in a
small decline in reserve balances of the member banks for the week
ended April 15, This loss arose through the retirement of a rather sub
stantial amount of our repurchase agreement bill holdings and through
miscellaneous commercial and agency transactions, the aggregate of
which was largely though not fully offset by an inflow of funds from
other districts and some increase in the country’
s gold stock.
Treasury transactions for the period approximately balanced; daily calls
for funds from Government depositaries and a small loss through cash
sales of the new certificate issue were about offset by interest payments
on the public debt and other Treasury disbursements in this market.
Although only a small decline was shown for the wook, the bank’
s reserve
balances were placed considerably in deficit as the result of a sub
stantial increase in requirements, which occurred principally on
Wednesday, April 15.
Funds continued to be withdrawn from the market on April 16,
losses occurring through the week-end demand for currency, a commercial
outflow of funds to other centers, and a net withdrawal of funds by the
Government, the effect of which was only partly offset by a substantial
decline in requirements and by an increase in bills held by us under re
purchase agreement. The call money rate throughout the entire reporting
period ended April 15,. was 1 1/2fo but later on April 16, the rate rose
to 2% following renewals at 1 1/2%,.
Trading activity in the time money market appeared to be con
fined chiefly to small loans for 3 months at 2 pe.r cent and for 5 and 6
months at 2 1/2 per cent. Nominal bid and asked rates were slightly
easier for 60 and 90 days, but for other maturities remained at the
levels quoted a week ago. Bank investment demand for open market com
mercial paper continued to be in excess of dealers1 offerings, but
rates held steady with prime names reported at 2 1/4 - 2 1/2 per cent.
Government
Security
Market
As a result of easy money conditions during the current state
ment week and the heavy over-subscription to the new Treasury issue of
eight months* certificates of indebtedness, trading in United States
Government securities was stimulated, especially for the short-term
issues and the Fourth Liberty Loan bonds. The price trend for both the
short and long-term issues was upward, the Fourth Liberty Loan bonds
selling at fractionally less than the record high price of 104 12/32 for
this issue established in March 1927.. At the close of the statement
week the average yield on the short-term issues, at dealers* offering
prices,.was about 1*47$ as compared with 1*50$ the week previous and the
average selling price for the Liberty Loan and Treasury bonds was 104*33
as compared with the previous week's average price of 104.24.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ «0«
2
1
2
1
1
1
2
3
*
Dealers* Offering Prices at the Close of the Current Statement snteck
and Net Changes from the Close of the Previous Statement Week
Net
Approx*
Issue
Change
Price
Yield
- - 7/8# Cert . of Ind. 'due June 15, 1931 100 9/32
1.12$
♦r tt »t
tf June 15, 1931 100 2/32 • - - .
3/4$
1.35$
t>
?r tt
tt Sc pt. 15, 1931 100 11/32
+1/32
3/8$
1,52$
t
f
tt
T
f
t
f Sept, 15, 1931 100
1.49$
1/2$
+1/32
tt
t»
tt
tt Dec, 15, 1931 100 2/32
+1/32
1.77$
7/8#
tt
t! Dcc. 15, 1931 100 2/32
tt
tt
7/8$
+2/32
1.78$
if tt tt
tt Mar. 15, 1932 100 2/32
+1/32
1.92$
fo
tf
1/2 $ Treasury Notes
1.16$
Dcc. 15, 1932 101 17/32
+1/32
Trca sury Bills ft May 4 & 5 , 1931 1 1/2$ discount bid, none offered
fr
tf
ff May
" 1 1/4$ asked
”
18, 1931 1 1/2$
tt
t?
Tt July 1 & 2, 1931 1 1/2$
»
" 1 3/8$ asked
new issue
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Net
Issue
Prioe
Change
Issue
Price
Change
1st 3 1/Za 101 23/32 - Treas, 4 I74s“l947~52 11128/33
1st 4 l/4s 102 26/32 +2/3?
w
4s
1944-^54 107 26/32 +2/32
4th 4 1/4s 103 31/32 +2/32
"
3 3/4s 1946-56 105 28/32 +4/32
"
3 3/8s 1943-47 101 23/32 +3/32
M
3 3/8s 1940-43 101 18/32 +4/32
*'
3 3/8s 1941-43 101 19/32 +9/32
Bankers
Acceptances
Dealers’offerings of unindorsed bankers acceptances continued at the following rates durirg the current statement week: 1 1/2 per
cent for 30s, 60s and 90s, 1 5/3 per cent for 120s and 1 3 / 4 per cent
for 180-day bills*
Reports
week
endjng
April 15
Bos-cen repcrtr That the mnrkot "Tor bills showed a general
slowing up in its district during thi^eek. Fewer bills came out than
during the pre-vious period, with the'demand only fair.
In New Y o r k ,
dealers* purehasos oi bankers acceptances fell off substantially this
week as compared with «he past X'ew weeks. Their sales during the
greater part of. che week were aoout equal to purchases but toward the
close of the wee* a Iriek dexaend developed which exceeded the supply
of new bills oonsideiably and dealers1 aggregate portfolios were re
duced by ^26,000,000 to sp'i ,000 ,000. Bates were stead3/. Philadelphia.
reports that its ac3eptance Jtarket was a little more active. Dealers
reported an increase in the supply oi new bills during the week, with
the demand li;^ht, Chicego reports that the bill market in its district
continued very quiet,. I alias reports that its bill market continued
dull with no demandr Offerings to the rejer^e bank were negligible.
•
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E .p , M R S?
OPERAl^'S FOR ACCOUNT OF UNITED STATES iREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Sales of
0 31»000 - 3 1/2$ Treasury notes due December 15, 1932,
account German Special Deposit Account
300,000 - 3 1/2$ Treasury notes due December 15, 1932,
account Alien Property Custodian
0331,000 - Total Sales
Purchases of $177,300 - 4 l/4$ Fourth Liberty Loan bonds, account
General Railroad Contingent Fund
263,500 - 4 1/4$ Fourth Liberty Loan bonds, account
________
National Homes, Veterans Administration
0440*800 - Total Purchases
SYSTEM SPECIAL INVES1MENT ACCOUNT ■GOVERNMENT SECURITIES
Hiring the current statement week exchanges were effected advantageously
in the System Account of /
a total of
as follows;
0 3,000,000 - 2 7/8$ certificates due June 15, 1931
7,000^000 - 3 1/2$ Treasury notes due December 15, 1931
010,000,000 - for a like amount of short-term government securities
0 3,000,000 - 1 7/8$ certificates due December 15, 1931 (old issue)
7,000,000 - 1 7/8$
M
" December 15, 1931 (new issue)
$10 ,000,000
In connection with the $7,000,000 exchange referred to above, the 3 1/2$ Treasury
notes were sold in the market early in the week in exchange for 2 7/8$ certificates
under agreement with a dealer that the latter issue would be purchased from us on
April 15 on a 1.27$ yield basis in exchange for a like amount of the new issue of
1 7/8$ certificates at par.
These transactions did not affect the amount of total holdings in the
System Account which remained at $402,300>000,
The participations by Federal
reserve banks and the classification of issues held at the close of business
Wednesday, April 15, 1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
$ 45,472,500
68,851,000
37,245,000
47,690,000
15,830,500
10,146,500
61,20I*000
15,274,000
18,248,500
33,733,000
19,241,000
29,367,000
$402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
May
4,
May 18,
July 1,
July 2,
June 15,
June 15,
Sept. 15,
Sept. 15,
Dec. 15,
Mar. 15,
Dec. 15,
Oct. 15,
1931-Treasury Bills $ 2,000,000
tt
tt
193124,500,000
tt
»t
193121,000,000
tt
tt
6,500,000
19311931- 2 7/8$ C/I
44,781,000
23,300,000
1931- .1 3/4$
52,027,000
1931- 1 1/2$ »t
87,880,500
1931- 2 3/8$ »»
83,626,500
1931- 1 7/8$ w
38,332,000
1932- 2 . $ tt
14,012,000
1932- 3 1/2% T/N
4,341,000
1938- 4 1/4$ 4th L/L
$402,300f000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND PAITCERS ACCEPTANCES
AFFECTING TEE INVESTMENT ACCOUNT OF ALL PBEERAL RESERVE RANKS
__________________FROM APRIL 9 TO APRIL 15, 1931, INCLUSIVE________________________
GOVERNMENT SECURITIES - SYSTIM INVESTJISNT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Purchases
$ 1,921,000
2,909,500
1,574,000
2,015,500
669,000
428,500
2,586,500
645,000
771,000
1,425,500
813,500
1,241,000
Sales
$ 1,921,000
2,909,500
1,574,000
2,C15,500
669,000
428,500
2,586,500
645,000
771,000
1,425,500
813,500
1,241,000
$17,000,000
#17,000,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
New York
Atlanta
Minneapolis
Dallas
Totals
Purchases
Issue
t Sec.
$8,606,660 Misc. Gov’
m
h
n
471,250
M
»!
1 ,359,050
5,000 4 1/4$ Treas. Bds . 1952
Sales
Issue
$8,000,000 Misc Gov’
t Sec.
tt
0
»t
370 , 600
tt
tt
tt
1,362,050
tt
tt
tt
133,000
$9,845,300
$9,865,650
... ...............
BANKERS ACCEPTANCES
(000 Omitted)
•
Boston
New York
Holdings
April 8
$ 11,467
27,255
Purchased
Own Mkt.
$
0
6,062 R
14,587 A
By Allot Matur
ment from ities &
Nev/ York
Sales
.$ 1,593
6 4 ,3 4 6 “
12,063
0
Holdings
April 15
$ 8,714
21,254
Other Holdings
Close April 15/31
Sales
Other
Contracts
Bills
^1,461
$
80
2,644
360
Phila.
C
0
0
0
0
0
Cleve.
20,448
2,448
2,197
20,699
0
0
Richmond
122
59
0
0
65
0
6,534
1,202
Atlanta
384 R
2,989
5,131
c
25,103
Chicago
55 tt
6,110
22,260
154
3,212
St. Louis
9,725
1,244
0
1,370
9,851
0
Minn*
6,656
1,686
0
5,859
889
0
Kan. City
8,098
1,433
1,521
8,010
0
0
Dallas
1,053
5,488
13 tt
5,478
0
1,030
San Fran.
18,817
607 if
1,410
2,802
18,032
0
Totals
$21,708
$14,587
$139,713
$4,259
$125,351
$36,070
Bills held over night by New York for distribution to other Fed. Res* Bks.
NOTE:
105
107
41
544
143
37
24
31
32
72
$1,576
293
$1,869
R. indicates Retained and A* indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q«
'
IiIATTRITIES AND RATES OF BILLS PURCHASED WEEK ENDING APRIL 15, 1951
(000 Omitted)
51-60 days
1 1/2-1 5/8$
New York
Atlanta
Chicago
Dallas
San Francisco
$ 6,161*
53
5
0
49
$ 5,939
54**
50
0
509
$ 8,549
Totals
$ 6,268
$ 6,552
$ 8,842
* Purchased at 1 1/2 to 1 5/8$
*** Purchased at 1 5/8 to 1 3/4$
61-90 days
1 1/2-1 5/8$
Over 90-days
1 5M o
Total
$ 0
0
0
13
55
$20,649
584
55
15
607
1 =0
1 **
o»
1-30 days
1 1/2$
$21,708
0
0
16
** Purchased at 1 1/2 to 1 5/4$
RECAPITULATION OF PURCHASES AND SALES OF GOVERNIvlENT SECURITIES
AND BANKERS ACCEPTANCES HIRING YSEi: SNDITTG- APRIL 15, 1951
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Ma tured
Totals
Bankers
Acceptances
021,708
0
56,070
$14,5621,219-(Net Change
1-day holdover _
& other bills)
$15,581-
$26,845
26,865
0
20
Total
-
$48,553
26,865
56,070
$14,5821,219-(Net Change
1-day holdover.
& other bills)
$15,601-
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES APRIL 15, 1951
COOC Omitted)
(Including Sales Contracts)
Gov *t Securities
Bills Purchased
Totals
Within
15-days
16-30
days
El-60
days
61-90
days
91 days6 months
Over 6
months
Total
$ 0
69,551
0 5,000
55,916
$24,500
14,432
$127,716
11,661
$159,714 $281,705 $598,655
159
0
151,479
.^69,551 $40,916
$58,952
$159:577
$159,853
$281,705
$750,114
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»C»
April 101 1931
Dear !'r* l-totteaom
I
acknowledge reoeipt of and shall bring
to the attention of tho member# of the Federal Beservo Board your letter of April 10th# addressed to
Governor ?#eyer# enclosing report of open market op
erations for tho period fro® April 2P 1931 to April
8 # 19*1 inclusive*
Very truly yours,
£• M* McClelland*
A#aistant Secretary
Mr* 1 * 13* Matteson,
.Assistant Deputy Governor#
Federal Beserve Bank,,
Hew York, K. Y*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £*Q«
F e d e ra l R e s e rv e B a n k
of
0,
ft
i
V
&
J S k
N e w Yo r k
s
jv
CONFIDENTIAL
April 10, 1921.
Dr* E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweiser:
Enclosed is a report of open market operations for
the period frost April 2, 1951 to April 8, 1931 inclusive, to
gether with data received fro» Federal reserve banks.
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
F OR SPECIAL CIRCULATION
FLEASE READ PIw^PTLY, INITIAL AND RETURN TO ^ R K T A H Y ’
S O F fJ ‘7%
^ Gov. M eyer
Mr. Haml i n
MiyJames
iS
V. •"
Mr. M i l l e r ^ w {
Mr. Po
Fe d e r a l R e s e r v e B a n k
o f
N
e w
Y
CONFIDENTIAL
o r k
April 10, 1951.
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from April 2, 1951 to April 8, 1931 inclusive, to
gether with data received from Federal reserve banks*
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D* C*
Encl.
t
RECEIVED
Apr 11 1931
OFFICE OF
THE
GOVERNOR
j iasM'
f c i
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR "WEEK ENDED APRIL 8, 1931
Holdings of Earning Assets of Federal Reserve Banks from April 9, 1950 to Date
(000 Omitted)
“19 3C Apr.
9
Apr, 30
May
28
June 25
July 30
Aug. 27
Sept. 24
Oct. 29
Nov. 26
Dec. 31
1931J&n. 28
Feb. 25
Mar. 25
Apr.
1
Apr.
8
TOTAL
EARNING
ASSETS
$1,029,242
982,225
958,776
916,038
911,554
967,034
-973,483
975,031
1,011,940
1,351,853
GOVERNMENT SECURITIES BANKERS ACCEPTANCES
Sales
Outright
Outright
Sales
Purchases
Contracts
Contracts Purchases
$97,179
#526,921
$ 375
$169,823
2,385
47,718
527,124
161,846
45,494
529,450
130,066
320
7,578
94,735
576,560
410
127,965
2,797
576,323
45
4,137
601,913
159,137
0
5,583
192,161
601,656
150
3,752
601,438
161,906
0
6,176
595,634
169,930
0
39,098
43,403
686,064
324,746
945,405
895,606
847,256
928,615
912,969
609,877
599,442
598,459
598,363
598,655
0
0
0
0
100
118,453
105,431
83,272
133,286
142,801
BILLS
DISCOUNTED
$226,164
233,452
247,046
231,505
197,101
193,275
167,162
201,603
233,852
251,398
1,788
886
0
33,336
28,928
215,137
189,847
165,425
163,630
142,585
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
_________________ DURING WEEK ENDED APRIL 8,. 1931_______________
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
April 8
Change
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
$ 46,182
182,714
49,352
57,855
16,983
12,753
81,128
23,899
25,661
33,779
29,357
38,992
$>598,655
$ 0
0
0
0
0
72+
0
0
87+
0
133+
0
#292+
BANKERS ACCEPTANCES
Net
Balance
Change
April 8
# 11,467
27,255
0
20,448
122
6,534
25,103
9,725
6,656
8,098
5,488
18,817
$1,2832270
5,007+
80811+
7,825+
3,324+
2,660+
1,740+
1,471+
2,128+
3,088
13,861-
$142,801
$9,515+
BILLS DISCOUNTED
Net
Balance
April 8
Ghange
$
7,322
34,755
15,282
13,711
15,792
11,245
11,635
7,421
3,417
8,603
7,572
5,830
$ 4,2541,432—
2,760946738+
2,1806894781061,054581+
8,465-
$142,585
$21,045-
COMMENT ON CHANGES WEEK ENDED APRIL 8, 1931
Total earning assets of the System showed a decrease of #15,646,000 for
the current statement week* The changes by classification consisted of increases
of $292,000 and $9,515,000 in outright purchases of government securities and
bankers* acceptances respectively, and decreases of #4,408,000 and #21,045,000 in
bankers* acceptances held under sales contracts and bills discounted respectively*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0*
2
Money
Market
Immediately before Easter the call money market showed in
creasing signs of firmness, and on Monday, April 6, thr rate on the Ex
change was advanced from a renewal figure of 1 1/2 per cent to 2 per
cent and finally to 2 1/2 per cent* This situation reflected the sales
of Treasury bills on April 2 and 3 which took a larger amount of funds
from this market than was disbursed hero by the Treasury, as well as
the usual loss of funds to other centers during the first week of the
month and Bastor currcncy withdrawals; these losses were covcred in
part by bill purchases by the Reserve Bank but in a more important
amount by an increase in New York City bank borrowings from us which
rose to $63,000,000 on April 3 and to $71,000,000 on April 4.
Following the increase in the call loan rate to 2 1/2 per
cent on April 6, a movement of funds to New York from other districts
immediately set in, which, together with the return of currency from
holiday circulation, considerably exceeded further net withdrawals of
Treasury fands from this market, and thereby allowed the New York banks
to repay all of the indebtedness incurred a few days previously and
also provided the funds for the repurchase of bills sold to the Reserve
Bank under sales contract during the preceding days of the reporting
week. As a result of theso funds placed at the disposal of the money
market, the call rate returned to 1 1/2 per ccnt on April 7, following
the making of renewals at 2 per cent, the highest since March 11* In
subsequent days the rate has been steady at 1 1/2 per cent, both on
the Exchange and in the outside market, with rather moderate amounts
of funds on offer.
Nominal quotations for 60 and 90 day loans were advanced
slightly during the past week to 2 per cent bid, 2 1/4 per ccnt asked,
but as there was little trading in these particular maturities, the
changos had little practical offect in the time money market. The
principal interest was in 6 months money, which was placed in a limited
way at 2 1/2 per ccnt, unchanged from previous rcccnt transactions.
Commercial paper priced at 2 1/4 per cent met with somewhat
more sales resistance during the past week than in the previous period.
The market for 2 1/2 per cent names was considerably broader than for
the 2 1/4 per cent material, but nevertheless there was sufficient
new paper coming in the market and enough actual sales at the lower
rate to warrant the continuance of the prevailing quotation for prime
names at 2 1/4 - 2 1/2 per cent*
Government
Security
Market
Due to the fluctuations in call money ra;tes during the week,
and the anticipation of the Treasury’
s new offering, there was little
demand in the market for the short-term government securities and
prices declined fractionally. Although the volume of trading in the
market for the Liberty Loan and Treasury bonds was not large, the
market showed a slight improvement. While the demand, however, vjas
chiefly for the Fourth Liberty Loan 4 1/4$ bonds, prices of practically
all of the longer term issues registered small gains. At the close of
the current reporting period the average yield on the short-term issues*
at dealers* offering prices, was about 1.50$ as compared with 1.44$
last week and the average selling price for the Liberty Loan and Treas
ury bonds was 104.24 as compared with last week’
s closing average of
104.15.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0«
2
1
3
1
1
2
3
Dealers’Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement tfeek
Net
Approx.,
Issue
Price
Change
Yield
7/8% Cert, of Ind. due June 1 5 , 1931 100 9/32
-2 / 32
1*30%
tt
w
n June 1 5 , 1931 100 2/32
3/4% tt
1.39%
-1 / 32
tf
tt
tr Sept. 1 5 , 1931 100 10/32
3/8% ft
-3/ 32
1.63%
tt
tt
tt Sept. 1 5 , 1931
1/2% tf
99 31/32
-1/ 32
1.57%
tt
tf
»» Dec. 1 5 , 1931 100 1/32
7/8% t»
1*82%
-3 / 32
tt
tt
tf Mar. 1 5 , 1932 100 1/32
M t»
1.96%
-1/ 32
1/2% Treasury Notes »t Dec. 1 5 , 1932 101 16/32
-1/ 32
1.27%
Treasury Bills ** May 4 & i5, 1931 1 1/2% discount bid, none
offered
Treasury Bills * May 18, 1931
1 1/2# discount bid, 1 1/4%
asked
Treasury Bills M July 1 & 2, 1931 1 1/2% discount bid, 1 3/8%
asked
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
___________ Close of the Previous Statement W e e k ________
Net
Net
Issue
Prico
Change
Issue
Price Change
1st 3 l/2s 101 23/32 -1/32 Treas. 4 l/4s 1947-52 1 1 1 28/32 + 2/32
1st 4 1/4s 102 24/32 +1/32 *•
4s
1944-54 107 24/32 +12/32
4th 4 1/4s 103 29/32 +6/32 "
3 3/4s 1946-56 105 24/32 + 4/32
'*
3 3/8s 1943-47 101 20/32 + 4/32
**
3 3/8s 1940-43 101 14/32 +10/32
"
3 3/8s 1941-43 101 10/32 ---Bankers
Acceptances
Dealers* offerings of unindorsed bankers acceptances continued
at the follovtring rates during the current statement week; 1 1 / 2 per
cent for 30s, 60s and 90s, 1 5/8 per cent for 120s and 1 3/4 per cent
for 180-day bills,
Reports
week
end ing
April 8
Boston reported that the bill market in its district showed
a small improvement during the reporting period* The supply continued
insufficient necessitating the importation of bills from other cities
to meet the demand which came entirely from local banks. Ninety day
bills moved best at offered rates. In New York the bill market was
considerably less active this week than last. Dealers* purchases and
sales both fell off substantially but purchases continued to exceed
sales moderately and their aggregate portfolios increased by about
$13,000,000 to -^103,000,000.
Market rates unchanged. The Reserve
Bank purchased fairly substantial amounts of short bills during the
week, principally from banks. Philadelphia reports that its acceptance
market continued quiet and unchanged. Dealers reported portfolios in
creasing, Chicago reported that the bill market continued very quiet.
Dallas reported that its bill market continued dull with small demand*
Offerings to the Reserve Bank were negligible.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q*
4
OPERATIONS FOB ACCOUNT OF UNITES STATES TREASURY
There were 210 transactions consummated during the current statement
week under Treasury authorization.
SYSTEM SPECIAX INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
Transactions consummated in the System Account during the current
statement week, which were incidental to the Treasury’
s recent offering of
Treasury bills, consisted of exchanges effected advantageously in the market
of
#~5f500,000
20,000,000
3.000.000
4.000.000
-
Treasury bills due May 18, 1931
2 7/8$ certificates due June 15, 1931
1 1/2$
"
" Sept. 15, 1931
3 1/2$ Treasury notes ” Dec. 15, 1932
~~a toted of #32,500,000 for a like amount of short-term issues as follows:
#21,000,000 new Treasury bills due July 1, 1931
6,500,000 "
"
"
" July 2, 1931
2.000.000 1 7/8$ certificates due Dec. 15, 1931
, 3,000,000 2 7/8$
"
" Sept.15, 1931
#35*500,000
These transactions did not affect the amount of total holdings in the
Account which remained at $402,300,000.
The participations by Federal reserve
banka and the classification of issues held in the Account at the close of
business Wednesday, April 8, 1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
# 45,472,500
68,851,000
37,245,000
47,690,000
15,830,500
10,146,500
61,201,000
15,274,000
18,248,500
33,733,000
19,241,000
29,367,000
#402,300t000
RECAPITULATION OF HOLDINGS BY HATUBlTms
May
4,
May 18,
July 1,
July 2,
June 15,
June 15,
Sept,*15,
Sept.,15,
Dec. 15,
Mar. 15,
Dec. 15,
Oct. 15,
1931
1931
1931
1931
1931
1931
1931
1931
1931
1932
1932
1938
- Treasury Bills #
-
*
-
2
1
1
2
1
2
3
4
w
»
n
n
n
tt
7/efo
c/i
3/8$
7/8$
$
1/2$
1/4$
"
"
"
T/N
4th L/L
3/4$ "
1/2$ n
2,000,000
24,500,000
21,000,000
6,500,000
47,781,000
23,300,000
52,027,000
87,880,500
73,626,500
38,332,000
21,012,000
4,341,00.0
$402,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0« \ 3flSy
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
______________________ FROM APRIL 2. TO APRIL 8 t 1951, INCLUSIVE_____________________
GOVERNMENT SECURITIES - SYSTEM JVESTMENT ACCOUNT
~Sales
Purchases
$ i5,673,000
Boston
$ 3,673,000
5,562,500
New York
5,562,500
3,009,000
Philadelphia
3,009,000
3,852,500
3,852,500
Cleveland
1,278,000
Ri chmond
1,278,000
820,000
820,000
Atlanta
Chicago
4,944,500
4,944,500
1,234,500
St. Louis
1,234,500
1,474,500
Minneapolis
1,474,500
2,725,000
2,725,000
Kansas City
1,554,000
Dallas
1,554,000
2,372,500
San Francisco
2,372,500
$32,500,000
Totals
$32,500,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
New York
Atlanta
Minneapolis
Dallas
Totals
Issue
Purchases
t Sec
$13,500,000 Misc. Gov’
tt
tf
t»
329,350
tt
tt
tt
913,450
tt
tt
ft
133,000
Sales
Issue
$13,500,000 Misc. Gov* Sec,
256,700
"
"
826,450
"
"
0
$14,875,800
$14,583,150
BANKERS ACCEPTANCES
(000 CEiitted)
Boston
New York
Holdings
April 1
$ 12,750
27,482
Phila.
0
Cleve•
15,441
Richmond
202
Atlanta
5,723
Chicago
17,278
St. Louis
6,401
Minn.
3,996
Kan. City
6,358
4,017
Dallas
San Fran.
16,689
Totals
$116,337
Bills held overnight
NOTE:
Purchased
Own Mkt.
$ ' o
14,901 R
47,078 A
0
0
0
0
874 R
0
450 "
0
18 "
2,476 "
$65,797
by New York
By Allot- Maturment from ities & Holdings
New York
April 8
Sales
$ 4,690 $ 5,973 $ 11,467
15,128
0
27,255
0
0
0
105
0
8,284
3,277
107
20,448
0
80
122
0
41
0
4,339
3,528
6,534
500
0
10,636
3,685
295
25,103
143
4,573
1,249
9,725
37
0
2,956
746
6,656
0
24
4,702
2,962
8,098
31
0
3,377
1,924
5,488
32
0
3,521
3,869
18,817
72
0
$47,078
$43,421 $139,713 $28,928
$1,543
for distribution to other Fed. Rds. 3ks. 1,545
T o t a l ------------ -- - -$3,088
R . i n d i c a t e s R e t a in e d an d A . i n d i c a t e s A l l o t t e d
Other Holdings
Close April 8^1931
Sales
Other
Contracts Bills
$
260 £
80
371
28,373
in th e ab o ve s ta te m e n t.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0» VffiSfr
MATURITIES AND RATES ON BILLS PURCHASED WEEI! ENDING APRIL 8, 1951
(00C emitted1)
1-30 days
New York
Chicago
Minneapolis
Dallas
San Francisco
Totals
'*
31-60 days
61-90 days
1 5/8#
#13,591
69
0
0
2,200
#104
0
0
0
S3
#182
0
0
18
0
#61,979
874
450
18
2,476
#15,860
#127
#200
#65,797
1 1/2-1
1 1/2%
,102
805
450
0
253*
#49,610
Over 90-days
___1
Total
Purchased at 1 1/2 to 1 5/8$
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ELIDING APRIL 8, 1951
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
Totals
Bankers
Acceptances
#65,797
0
42,421
§23,376+
13,861-(Net Change
_______ 1-day holdover
& other bills)
# 9,515+
$47,375
47,083
0
#
Total
292+
#113,172
47,083
42,421
$ 23,668+
13,861-(Net Change
I-day holdover
' & other bills)
| 9,807+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES APRIL 8, 1951
' ..... """■.~
(000 Omitted)
n ' :'
(Including Sales Contracts)
Within
15-days
16-30
days
31-60
days
61-90
days
91 days*
6 months
Over 6
months Total
Gov’
t Securities
Bills Purchased
# 0
95,149
# 6,000
53,580
#24,500
19,559
#134,726
3,223
#158,697
238
#274,732 #598,655
0
171,729
Total
#95,149
#599580
#44,039
#137,949
#158,935
#274*732 #770,384
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0« VffiSfr
A p ril 4 * 1 9 3 1 .
D e a r M r.
Matteaon:
I a ck n o w le d g e r e c e i p t o f and a & ftll b r i n g t o t h e
a t t e n t i o n o f t h e tsmstoam o f t h e B o ard y o u r l e t t e r o f
A p r i l 3 r d , a d d r e s s e d t o i io r e r a o r M e y e r , e o o l o s i n g r e
p o r t o f t r a n s a c t i o n s i n iiovarmaen'% s e c u r i t i e s an d b a n k e r*
a o o e p ta o o e s a s r e p o r t e d t o y o u r c o w a i t t e e f o r t h e p e r io d
from M arch 2 6 , 1 9 3 1 t o A p r i l 1 , 1 9 3 1 , i n c l u s i v e *
?e*y truly your#.
K* M* MGClellaad,
Assistant Secretary,
Mr. W« B* Mattes on,
A s s i s t a n t D ep uty u o v a n a o r ,
F e d e r a l Jeserre Bank.
Sew Y o r k , M* T*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
E»0»
twr
/ i'
F e d e ra l R e s e rv e B a n k
of
CQNFIDiuNTlAL
N e w Yo r k
C
' %%
April 5, 1931.
Dr. E. A. Goldemreiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington,
D. C.
f
Dear Dr. Goldenweiser:
Enclosed is a report of open market operations for
the period from inarch’
26, 1931 to April 1, 19ol inclusive, to
gether with data received from Fgckral reserve banks.
Verr ^rtily yours,
h . B. Matteson
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
?
Authority S>»0« 13^5%*
Fe d e r a l R e s e r v e B a n k
o f New Y o rk
FOR SPECIAL CIRCULATION
PLEASE READ PROMPTLY, INITIAL AND RETURN TO SECRETARY'S OFFICE
&Ov,* Meyer
Mr. Hamlin
Mr. Jamesv^"^
S i..
’
Mr. M i l l e x ^ V ' ? ,
~
,
Mr.
CO-Nx lL'j-ji\i11AL
April 5, 19 ol.
Dear Governor L.e/er:
Enclosed is a report of open market operations for
the period from March 26, 1951 to April 1, 1951 inclusive, to-
Reproduced from the Unclassified / Declassified Holdings of the National Archives
”
•»
-
DECLASSIFIED
Authority £«0«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED APRIL 1, 1931
Holdings of Earning Assets of Federal Reserve Banks from April 8, 1950 to Kite
.
, (000 OmittedV
TOTAL
EARNING
ASSETS
$1,081,589
982,225
958,776
916,038
911,554
967,034
973,483
975,021
1,011,940
1,351,853
-1930Apr.
2
Apr. 30
May 28
June 25
July 30
Aug. 27
Sept. 24
Oct. 29
Nov. 26
Bee. 31
-1931Jan. 28
Feb. 25
Mar. 25
Apr.
1
GOVERNMENT SECURITIES
Sales
Outright
Contracts
Purchases
$ 3,590
$526,799
2,385
527,124
320
529,450
576,560
410
45
576,323
601,913
0
150
601,656
601,438
0
0
595,634
686,064
43,403
945,405
895,606
847,256
928,615
609,877
599,442
598,459
598,363
0
0
100
0
BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
$158,263
$143,034
47,718
161,846
45,494
130,066
7,578
94,735
2,797
127,965
159,137
4,137
192,161
5,583
161,906
3,752
6,176
169,930
39,098
324*746
118,453
105,431
83,272
133,286
BILLS
DISCOUNTED
$241,123
233,452
247,046
231,505
197,101
193,275
167,162
201,603
233,852
251,398
1,788
886
0
33,336
215,137
189,847
165,425
163,630
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
DURING WEEK ENDED APRIL 1, 1931
(000 Omitted)
Boston
New York
Philadelphia
Cleveland
Ri chmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES BANKERS ACCEPTANCES
Balance
Net
Net
Balance
Change
Change
April 1
April 1
$ 46,182
$ 5,904+
$ 12,750
4 0
12,940+
0
182,714
27,482
0
49,352
0
0
57,855
0
5,292+
15,441
229202
16,983
0
12,681
1,220+
1245,723
3,362+
81,128
0
17,278
23,899
0
6,401
1,130+
25,574
3,996
28+
894+
0
33,779
6,358
1,010+
29,224
4,017
0
2,222+
0
38,992
16,689
1,267+
$598,363
$ 96-
16,949
15,002+
$133,286
$50,014+
BILLS DISCOUNTED
Net
Balance
Change
April 1
$ 11,576
f1,011+
36,187
1,506+
669 ¥
18,042
14,657
809+
15,054
1,575+
13,425
1,832+
54112,324
477,899
3,523
154+
9,657
549+
6,991
130+
14,295
9,442-
$163,630
$1,795-
COMMENT ON CHANGES WEEK ENDED APRIL 1, 1931
Total earning assets of the System showed an increase of $81,359,000 for
the current statement week. The changes by classification consisted of decreases
of #96,000 and $1,795,000 in outright purchases of government securities and bills
discounted respectively, and increases of $50,014,000 and $33,336,000 in outright
purchases of bankers acceptances and bankers acceptances held under sales contracts
respectively*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0«
2
Money
Market1
The call money market in Now York has been somewhat firmer during the past week, reflecting several influences, probably temporary in
nature, including numerous withdrawals of funds from Government deposi
taries, first of month requirements for currency and credit, and more
recently currency requirements incident to Baster trade. On Thursday,
March 26, the Exchange rate for new call loans was advanced to 2 per cent
from the 1 1/2 per cent renewal level and for the next two business days
the rate was firm at 1 1/2 per cent. On the 31st, the Exchange rate ad
vanced again to 2 per cent shortly before the close. Although the Exchange
'rate reverted to 1 1/2 per cent on the next day, part of the loans in the
outside market were placed at the 2 per cent figure on April 1 and 2,
The federal funds rate also reflected a finner situation, the quotation
part of the time being as high as 1 1/2 - 1 3/4 per cent.
Although a substantial volume of bills had been sold to the
Reserve Bank in immediately preceding days, the New York City banks had
to borrow over $80,000,000 on Tuesday, March 31, in order to average their
reserve position for the four day reserve period ended that day. This
gave the banks a temporary large excess of actual reserves, which together
with further substantial sales of bills to the Reserve Bank allowed the
City banks to retire on April 1 the borrowings which they had incurred on
the previous day and still leave their actual reserves moderately far
above requirements. Transactions to be consummated during the balance of
the week, including the sale of $75,000,000 of Treasury bills in this
market and Easter currency withdrawals, are exerting a considerable further
drain on the money market*
Trading interest in time money was largely lacking during the
week, as for some time past. Quotations also were little changed with
the 3 months money rate at 2 per cent flat.
Investment demand for prime commercial paper on the part of the
banks throughout the country continued in a volume that was considerably
in excess of the available supply of new paper. In view of this situation,
an increasing amount of paper was sold by the dealers at 2 1/4 per cent,
so that the prevailing range for prime names has become 2 1/4 - 2 1/2 per
cent.
Government
The condition of the market for United States Government securiSecurity ties continued somewhat unsettled with the volume of trading light and
price changes were irregular within a narrow range. At the close of the
current reporting period the average yield on the short-term issues, at
dealers* offering prices, was about 1.44$ as compared with 1.46$ the two
preceding weeks, and the average selling price for the long-term bonds was
104.15 as compared with 104.22 at the close of the previous week.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
'
'
DECLASSIFIED
Authority £ »0«
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net
Approx.
Change
Yield
Issue
Price
- I /32
1 .1 7 $
1931
100 11/32
2 7 / 8 $ Cert. of Ind. due June 1 5 ,
tt
tt
tt
1 .2 8 $
June 1 5 , 1 9 3 1
100
3 /3 2
-1 /3 2
1 3 /4 $
"
n
tt
tt
-------1 .4 6 $
1 0 0 1 3 /3 2
Sept.1 5 , 1 9 3 1
2 3 /8 $
”
«
*i
it
+
1
/
3
2
1
.4 9 $
Sept
.
1
5
,
1
9
3
1
1
0
0
1 1 /2 $
"
« Dec. 1 5 , 1 9 3 1
tt
ft
100
4 /3 2
+ 1 /3 2
1 .6 9 $
1 7 /8 $
«
tt
tt
tf
+ 1 /3 2
1 *9 3 $
Mar. 1 5 , 1 9 3 2
100
2 /3 2
2
$
"
tt
1 0 1 1 7 /3 2
+ 3 /3 2
1 .3 0 $
3 1 / 2 $ Treasury Notes
Dec. 1 5 , 1 9 3 2
Treasury Bills tt May 4 & 5 , 1 9 3 1 1 1 / 2 $ disc . bid*none offered
n
tt
tt
w
1 1 / 4 $ asked
May 1 8 , 1 9 3 1
1 1 /2 $
"
«
tf
tt
"
1 3 /8 $
"
July 1 & 2 , 1 9 3 1 1 1 / 2 $ "
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Net
Issue
Price
Change
Change
Issue
Price
111 26/32
1 s t 3 l/2s
101 24/32
-2/32
Treas. 4 l/4s 1947-52
ft
-3/32
107 12/32 -6/32
1st 4 l/4s
102 23/32
4s
1944-54
tt
4th 4 l/4s
103 23/32
+2/32
3 3/4s 1946-56
105 20/32 +2/32
tf
3 3/8s 1943-47
101 24/32
tt
3 3/8s 1940-43
101 4/32 -U/fe
tt
3 3/8s 1941-43
101 10/32 -4/32
-
-
-
-
-
Bankers
Acceptances
Dealers1 offerings of unindorsed bankers acceptances continued at the following rates during the current statement week:
1 1/2 per cent for 30s, 60s and 90s, 1 5/8 per cent for 120s and
1 3/4 per cent for 180-day bills.
Reports
week
ending
April 1
Boston reports that the volume of transactions in its bill
market declined somewhat during the past period. The local supply was
still insufficient to meet the local demand necessitating the importa
tion of bills from other cities. Sales to country banks showed a good
increase of a temporary nature, as bills were purchased for tax pur
poses. In New York firmer money conditions this week resulted in a
substantial increase in dealers1 purchases of bankers acceptances.
Their sales were better than last week, but were substantially less
than purchases and aggregate portfolios at the close of the week had
increased by about #45,000,000 to #90,000,000, Bates unchanged. The
Federal Reserve Bank of New York purchased substantial amounts of
short bills during the week, principally from banks. Philadelphia
reports that the acceptance market in its district was at a standstill
during the past week. Very few new bills came into the market with
the demand practically dried up. Chicago reports that its bill market
continued very dull* There was, however, some demand from banks.
Dallas also reports that its bill market continued dull with no demand.
There were no offerings to the reserve bank*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0» V2R5$*
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Sale of
$100,000 par amount 3 1/2% Treasury notes due December 15, 1932,
account Alien Property Custodian
and purchase of
87,800
w
w
Fourth 4 1/4% Liberty Loan bonds,
account National Institute of Health
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
There were no transactions consummated in the System Account during the
current statement week, the total holdings remaining at $402,300,000.
The partici
pations by Federal reserve banks and the classification of issues at the close of
business Wednesday, April 1, 1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
$ 45,472,500
RECAPITULATION OF HOLDINGS BY MATURITIES
May
4, 1931 - Treasury Bills $ 2,000,000
»»
t»
New York
68,851,000
May 18, 1931 -
Philadelphia
37,245,000
June 15, 1931 - 2 7/8% C/I
67,781,000
Cleveland
47,690,000
June 15, 1931 - 1 3/4% "
23,300,000
Richmond
15,830,900
Sept.15* 1931 - 1 1/2%
*
55,027,000
Atlanta
10,146,500
Sept.,15, 1931 - 2 3/8%
"
84,880,500
Chicago
61,201,000
Dec. 15, 1931 - 1 7/8% "
71,626,500
St. Louis
15,274,000
Mar. 15, 1932 - 2
'»
38,332,000
Minneapolis
18,248,500
Dec. 15, 1932 - 3 1/2% T/N
25,012,000
Kansas City
33,733,000
Oct. 15, 1938 - 4 1/4% 4th L/L
Dallas
19,241,000
San Francisco
29,367,000
Totals
$402,300,000
%
30,000,000
4,341,000
$402,300,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £>»Q*
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_________
FROM MARCH 26 TO APRIL 1, 1931, INCLUSIVE
_____________
TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
Purchases
Issue
Sales
Issue
New York
Atlanta
Minneapolis
|6,500,000
565,250
750,850
Misc, Gov*t Sec*
n
»»
»»
t»
tr
|6,500,000
489,150
702,900
Misc, Gov't Sec*
tt
Totals
|7#596,100
ft
tj
|7,692,050
BANKERS ACCEPTANCES
(000 Omitted)
Holdings
March 25
Boston
New York
$ 6,846
14,542
Phila*
Cleve#
Richmond
Atlanta
Chicago
St. Louis
Minn*
Kan, City
Dallas
San Fran#
0
10,149
431
4,503
13,916
5,271
3,102
4,348
2,395
15,822
Purchased
Own Mkt*
$ 4,040
23,309
41,285
0
0
0
0
1,210
0
0
0
0
5,653
By Allot- Maturment from ities &
New York ' Sales
Holdings
April 1
R.
«
A*
tf 5,195
0
| 3,331
10,369
§12,750
27,482
R.
0
7,072
0
3,617
9,199
3,805
2,373
3,956
2,872
.3,196
0
1,780
229
2,397
7,047
2*675
1,479
1,946
1,250
5,982
0
15,441
202
5,723
17,278
6,401
3,996
6,358
4,017
16,689
"
Other Holdings
Close April 1/51
Other
Sales
Contracts
Bills
0
33,336
$
0
0
0
0
0
0
0
0
0
0
79
1,301
105
107
42
560
. 143
37
24
31
32
72
$33,336 $ 2,533
#73,497
$38,485
$01,325
$116,337
Totals
;£41»285
Bills held overnight by New York for distribution to other F. R. Banks - - - 14,416
Total - - - * $16,949
NOTE:
R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
-l4
- 1
Authority £»0* VW Sfr
b
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING APRIL 1, 1951
(000 Omitted)
1-50 days
1 1/2$
31-60 days
1 1/2-1 3/4$
Boston
New York
Chicago
San Francisco
$ 4,000
55*998
940
2,422*
0
6,806
270
962
Totals
$63,560
$8,038
61-90 days
1 1/2-1 5/8$
$
Over 90-days
1 5/8$
40
1 *753
0
231**
$2,024
Total
0
37
0
38
$ 4,040
64,594
1,210
3,653
$75
$73,497
*Purehased at 1 1/2 to 1 5/8$
**Purchased at 1 5/8 to 1 3/4$
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING APRIL 1, 1951
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
Bankers
Acceptances
$ 7,596
7,692
0
Totals
96-
Total
<*?73,497
$81,095
100
7,792
58,585
38,585
$55|012+
$34,916+
15,002+ (Sfefc Cfca&g*
15,002+ (Net Change
^ _____ l^ftay h o l d o v e r _______ 1-day holdover
and other bills)
and other bills)
$50,014+
$49,918+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES APRIL 1, 1951
(000 Omitted)
(Including Sales Contracts)
Go~vft Securities
Bills Purchased
Totals
31-60
days
61-90
days
Within
15-days
16-50
days
91 days6 months
? 0
120>954
0
31,828
$56,000
10,779
§120,216
2,891
$158,697 $285,450
190 ____ 0
$598,365
166,622
$120,954
#51,828
$46,779
$125,107
$158,887
$764,985
Over 6
months
$285,450
Total
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»0»
ISeroh U $ 19S1
D ear Mr*
Witt—
oat
I acknowledge reoelpt of and Shull "bring
to the attention of fch# members of the Beard y o r
letter of ifsreh 27 th, Addressed to Oarernor Meyer,
enclosing report of open maricet operations for the
period f n » Hftroh 19, 1931 to Maroh 26t 1931 inolu~
•lye*
Very truly yours,
J» O.
J# 0* Noell,
Assistant Secretary
Mr* W* B. Hatteeson,
Assistant Deputy Oovemor,
Federal Reserve Bank:,
W rn
York,
¥*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
.
n
'
•- * .
DECLASSIFIED
Authority £ »0«
%■
%
lw
%
\
F e d e ra l R e s e rv e B a n k
of
CONFIDENTIAL
W * '
N e w Yo r k
March 27, 1931.
Dr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweiser:
Enclosed is a report of open market operations for
the period from March 19, 19S1 to March 25, 1951 inclusive,
Assistant Deputy Governor
<
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
•< ••
Authority £»Q«
r'
ron s f b c i a i * o iR c u L A iy y s r
p & M a a p i i m p T V i , initialahdrs^oKEto s
Hamlin
’
"‘
Mr. James
Mr. Miller ^ “ r
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
CONFmNTIAL
March 27, 1931,
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from March 19, 1951 to March 25, 1931 inclusive,
together with data received from Federal reserve bpjiks.
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
d tju /yforbFRASER
c L iJ S }
Digitized
'
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATION FOR WEEK ENDED MARCH 25, 1931
Holdings of Earning Assets of Federal Reserve Banins from March 26, 1930 to Date
£qqq rm itted)
-1930Mar, 26
Apr. 30
May
28
June 25
July 50
Aug. 27
Sopt. 24
Oct. 29
Nov. 26
Dec. 51
-1931Jsfn, 28
Feb. 25
Mar. 18
Mar, 25
TOTAL
EARNING
ASSETS
$1,001,090
982,225
958,776
916,038
911,554
967,034
~ 973,483
975,021
1,011,940
1,351,853
GOVERNMENT SECURITIES
Sales
Outright
Purchases
Contracts
$ 2,715
$526,284
527,124
2,385
320
529,450
410
576,560
576,325
45
601,915
0
601,656
150
601,438
0
595,634
0
686,064
43,403
945,405
895,606
902,218*
847,256
609,877 .
599,442
617,496*
598,459
0
0
250
100
BANKERS ACCEPTANCES
Sales
Outright
Purchases Contracts
$143,772
$>112\ 71C
47,718
161,846
45,494
130,066
7,578
94,735
2,797
127,965
4,137
159,137
192,161
5,583
161,906
3,752
6,176
169,930
39,098
324,746
118,453
105,431
122,329
83,272
BILLS
DISCOUNTED
$206,829
233,452
247,046
231,505
197,101
193,275
167,162
201,603
235,852
251,398
1*788
886
221
0
215,137
189,847
161,922
165,425
* Includes §45,000,000 of the $85,000,000 Special ono-day certificato of indebtedness issued to the Federal Reserve Bank of New York to cover the Treasury
overdraft; balance of $40,000,000 was sold to New York City and other banks.
CHANGES IN EARNING ASSETS HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
________________ DURING WEEK ENDED MARCH 25,. 1 9 5 1 ______________
{000 Omitted) “•
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San "Francisco
N. Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Balance
Net
Change
Mar. 25
$ 46,182
$ o
182,714
26,000+
0
49,352
57,855
0
16,983
0
12,805
102+
81,128
c
23,899
0
25,546
1434+
33,779
29,224
0
38,992
0
$598,459
$25,963+
BANKERS ACCEPTANCES
Net
Balance
Change
Mar. 35
$ 2,388$ 6,846
2,26514,542
0
0
2,69610,149
127431
8024,503
13,916
5,1285,271
1,2967855,102
2,495-*
4,348
2,395
1,02615,822
1,6201,947
20,411-
$85,272
$39,057-
BILLS DISCOUNTED
Balane e
Net
Mar, 25
Change
$ 10,565
4 1 ,783+
34,681
3 ,19517,375
1 ,97263715,848
15,479
95127711r593
12,865
728777,946
1243Y369
9*108
1,6306,861
81+
25,757
11 ,210+
^165,425
T? 0 ,503+
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« URSfr*
2
COMMENT ON CHANGES WEEK ENDED MARCH 25, 1931
Total earning assets of the System (exclusive of the $85,000,000
special one-day certificate of indebtedness issued by the Treasury to cover
the overdraft on March 1 8 J showed a decrease of $9,962,000 for the current
statement week. The changes by classification consisted of increases of
$25,963,000 and $3,503,000 in outright purchases of government securities
and bills discounted respectively, and decreases of $39,057,000 in outright
purchases of bankers acceptances and $371,000 in investments held under
sales contracts* The latter item consisted of $150,000 government securi
ties and $221,000 in bankers acceptances.
The increase jf $26,000,000 in outright holdings of government
securities by the Federal Reserve Bank of New York represents the repurchase
of $15,000,000 which was temporarily sold last week to a New York City bank
and balance of $11,000,000 represents securities purchased in replacement
of sales and maturities on March 16, delivery of which was deferred until
after_March 18, as explained in last week’
s report*
Money
Market
On Thursday, March 19, the opening day of the period under review,
call money was easy at 1 1/2 per cent on the Exchange and at 1 per cent in
the outside market, and on the following day this ease took definite form
in that new loans were arranged on the Exchange at 1 per cent, the first
occasion since June 1915 that a rate as low as 1 per cent has been quoted
at the Stock. Exchange money desk. The money market during this time was
the recipient of funds through repurchases of securities sold from the
New York Reserve bank’s own investment account during the preceding tax
period operations and through the retirement of the remaining participa
tions in the special Treasury certificate of indebtedness, accompanying
the reduction in the Treasury overdraft to a small figure. Deferred de
liveries of security purchases to replace sales from the New York Bank’s
investment account were also made during this period. These gains, however,
were more than offset by week-end currency withdrawals, an outflow of funds
to other centers, withdrawal of funds from government depositaries and
further incomc tax collections, and by reserve bank-bill maturities, with
the consequence that the cxcess of bank reserves was reduccd to moderate
proportions by tho end of the calendar wc-ck.
In the succeeding three days, call money remained at 1 1/2 per
cent on the Exchange, but an advance in the outside rate to 1 1/2 per' cent
on Wednesday was followed by the posting on Thursday of a 2 per cent new
loan rate on the Exchange. During this time further large withdrawals of
funds from government depositaries completely extinguished the Treasury over
draft on the 24th and raised the Treasury credit balance at the reserve banku
on the 25th temporarily somewhat above the usual figure, pending the cashing
of veterans’loan checks. In addition some net outflow to other centers
and a further decline in Federal Reserve bill holdings caused the market to
lose a considerable volume of funds and, notwithstanding a return of cur
rency from circulation, a moderate deficit in the New York banks’reserves
developed by the close of business Wednesday. This shortage was corrected
by substantial sales of bills to the Reserve bank on Thursday, both out
right and under repurchase agreement, and by the tendering of a moderately
large amount of securities under repurchase agreement.
Time money rates were practically unchanged during the past week.
Trading activity in fixed maturity accommodation appeared to have been con
fined chiefly to small amounts for 3 and 6 months, which were loaned at
2 and 2 1/2 per cent, respectively.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
3
Although prime commercial paper continued to be generallyquoted at 2 1/3 per cent, a slightly easier tendency was evident in
that sales of outstanding names at 2 1/4 per cent have become increas
ingly important in the open market rate structure. Names priced for
sale at 2 3/4 per cent can no longer be classified as particularly prime.
Government
Security
Market
Trading in the market in United States Government securities
turned very quiet during the current statement week, the effect no doubt
of the prospects of further Treasury financing in the near future and
while there was not any great amount of selling the tone of the govern
ment market became somewhat weaker. Prices of the short-term issues
showed small fractional losses for the week. Prices of Liberty Loan and
Treasury bonds, however, showed larger fractional losses and the average
selling price for these issues at the close of the current reporting
period was about 104.22 as compared with 104,47 last week.
2
1
2
1
1
2
3
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Woek
Approx
Net
Change
Yield
Price
Issue
-1/32
100 12/32
1.15$
7/8$ Cert, of Ind. <iue June 15, 1931
tf June 15, 1931
- - 1.17$
100 4/32
3/4$ "
»*
"
f
t
1.49$
-2/32
IOC 13/32
Sept. 15, 1931
3/8$ "
"
"
ft Sept. 15, 1931
1*56$
99 31/32
-1/32
1/3$ "
"
"
...
1.74$
100 3/32
7/8$ ”
*♦
” tt Dec. 15, 1931
-1/32
1.96$
$ "
"
*» If liar. 15, 1932
100 1/32
1.48$
-2/32
101 14/32
1/2$ Treasury Notes « Dec. 15, 1932
Treasury Bills n May 4 and 5, 1931 1 1/2$ discount bid, none
offered
18, 1931
1 1/2$ discount bid, 1 1/8$
Treasury Bills it May
asked
Closing Sale or Bid Prices on the New York Stock Exchange at
the Close of the Current Statement Week and Net Changes
from Close of the Previous Statement Y/eek
Net
Net
Change
Issue
Price
Change
Issue
Price
1st 3 l/2s 101 26/32
Treas .4 l/4s 1947-52 111 26/32
- lo /3 2
tt
-21/32
1st 4 l/4s 102 26/32 -4/32
4s
1944-54 107 18/32
tt
4th 4 l/4s 103 21/32 -8/32
3 3/4s 1946-56 105 18/32 (Bid)-18/32
tt
3 3/8s 1943-47 101 24/32
- 8/32
»t
- 9/32
3 3/8s 1940-43 101 15/32
»
- 4/32
3 3/8s 1941-43 101 14/32
-
-
.
Bankers
Acceptances
Dealers* offerings of unendorsed bankers acceptances continued
at the following rates during the current statement week: 1 1/2 per cent
for 30s, 60s and 90s, 1 5/8 per cent for 120s, and 1 3/4 per cent for
180-day bills,
Reports
week
ending
Mar, 25
Boston reports that conditions in its bill market showed some
improvement during the reporting period. Although the supply of bills
showed an increase, it was still insufficient to meet the local demand.
Sales to loeal banks at #6,609,000 were the heaviest for several months.
Bills moved freely at offered rates with the shorter maturities in best
demand. In New York the bill market was moderately active during the
week. The first three days of the period dealers* sales exceeded their
purchases and portfolios were reduced to the low figure of #29,000,000
but the last half of the week their purchases exceeded sales and aggre
gate portfolios increased again to #45,000,000 an increase of #11,00C,00Q
Reproduced from the Unclassified I Declassified Holdings of the National Archives
"
-*
- * ,'
DECLASSIFIED
Authority fc»0«
for the week. Hates unchanged.
Philadelphia reports that’
its accept
ance market was a little more active. There was some improvement noted
in the supply of new bills, dealers reporting portfolios slightly high
er.
Chicago reports no activity in its bill market during the past
week, the market having practically disappeared. Dallas reports that
the bill market in its district continued dull with small demand and no
offerings to the Reserve bank,
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
A purchase was made during the current statement week under Treasury
authorization of $361,950 - 3 3/8$ Treasury Bonds of 1945-47, account Demobilized
Mi1itary Organizati ons.
~SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
Transactions consummated during the current statement week consisted of
exchanges which were effected in the market at prices advantageous to the System
Account, of
$19,500,000 aggregate par amount of 2 7/Qf0
Treasury certificates of indebt
edness due June 15, 1931, for a
like amount of other issues of
short-term government securities
These exchanges did not affect the amount of total holdings in the Account, which
remained at $402,300,000.
The participations by Federal reserve banks and the
classification of issues held in the Account at the close of business Wednesday,
March 25, 1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Ri chmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dal las
San Francisco
$ 45,472,500
68,851,000
37,245,000
47,690,000
15,830,500
10,146,500
61,201,000
15,274,000
18,248,500
33,733,000
19,241,000
29,367,000
Totals
$402,300,000
RECAPITULATION OF HOLDINGS BY MATtTRITIES
May
4,
May 18,
June 15,
June 15,
Sept. 15,
Sept.,15,
Dec. 15,
Mar. 15,
Dec. 15,
Cct. 15,
1931
1931
1931
1931
1931
1931
1931
1932
1932
1938
-
-
-
-
Treasury Bills $ 2,000,000
»»
30,000,000
2 7/8$ C/I
67,781,000
1 3/4$ »»
23,300,000
1 1/2% m
55,027,000
84,880,500
2 3/8# tt
71,626,500
1 7/8f0 tt
ft
2
38,332,000
1c
25,012,000
3 1/ 2 io T/N
4,341,000
4 1/4% 4 th L/L
$402,300,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q* VflRSfr
5
ITEMIZED STATMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING- THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_________FROM MARCH 19 TO MARCH 35, 1951, INCLUSIVE_________ ________________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Sales
Purchases
| 2,204*000
Boston
§ 2,204,000
S.,557,000
New York
5,357,000
Philadelphia
1,805,500
1,805,500
2,511,500
Cleveland
2,511,500
768*000
Richmond
768,000
Atlanta
491,000
491,000
2,965,500
2,965,500
Chicago
740,500
St. Louis
740,500
885,000
Minneapolis
865,000
1,635,500
Kansas City
1,655,500
953,000
953*000
Dallas
1,425,500
San Francisco
1,-425,500
Totals
$19,500,000
$19,500,000
OTHER TRANSACTIONS IN- GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
Issue
Sales
Issue
Purchases
New York
•110,000,000 Misc. Gov* t Sec.
136,000,000 Mi sc. Gov* t Sec.
tt
«
tt
1t
tt
Philadelphia
10,000
10,000
tt
»t
tt
tt
tt
tt
Atlanta
436,950
538,400
t»
V
tt
tr
tt
tt
Minneapolis
1,612,900
1,469,900
t?
tt
tt
Kansas City
0
4,000
Totals
$38,022,300
$12,059,850
BANKERS ACCEPTANCES
(000 Omitted)
Other Holdings
Matur
Close Mar., 25/51
By Allot
Purchased
Other
ment from
Holdings
ities & Holdings
Sale s
March 18
March 25 Contracts Bills
Own Mkt.
Sales
New Yoyk
0
^ 6,846
§ 5,015
Boston
| 9,234
$ 627
0
$
79
549
14,542
New York
0
11,655
16,825
9,572 R. *
0
4,981 A.
105
0
Phila,
0
0
0
0
0
10,149
107
0
3,544
12,845
Cleve.
848
0
42
431
0
127
Richmond
558
0
0
577
4,503
0
1,263
5,305
461
Atlanta
0
145
15i916
0
17,044
1,028
4,206
50 R.
Chicago
37
5,271
1,773
0
477
St. Louis
6,567
0
24
1,099
3,102
0
514
3,887
0
Minn#
31
0
4,348
3,003
Kan. City
6,843
508
0
52
2,395
1,391
0
565
Dallas
3,421
0
15,822
72
0
5,177
17,442
5,204 R.
553
can Fran.
$1*598
$4,981
#36,255
$81,525
0
§99,971
#17,607
Totals
349
Bills held overnight by New York for distribution to other Fed. Res. Bks* T o t a l ------ $1,947
*Consisted principally of maturities too short to allot*
NOTE:
R. indicates Retained and A. indicates Allotted
in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING MARCH 25, 1931
(000 Omitted)
1-30 days
1 1/ 2$
31-60 days
1 1/ 2$
Over 90-days
1 5/8$
61-90 days
1 5/8$
Total
New York
Ohioago
San Francisco
$12,677
50
1,265
§1,676
0
1,875*
0
0
47
0
0
17
$14,353
50
3,204
Totals
$13,992
<£3,551
$47
$17
$17,607
^Purchased at 1 1/2 to 1 5/8$,
RECAPITULATION OF PURCHASES AND SALES Oi GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING MARCH 25, 1931
(q q q omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
^57,522
31,559
0
Totals
$25,963+
Bankers
Acceptances
Total
$75,129
31,559
36,253
$ 7,317+
20,411- (Net Change
1-day holdover
and other bills)
$13,094-
$17,607
0
36,253
^>18,646—
20,411- (Net Change
1-day holdover
and other bills)
^39,057-
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES MARCH 25, 1931
(000 Omitted)
(Including Sales Contracts)
Jovft Securities
Bills Purchased
Totals
61-90
days
91 days6 months
Over 6
months
Total
$36,000
9,666
$113,719
1,245
$158,749
127
$289,991
0
$598,559
83,272
$45,666
$114,964
$158,876
$289,991
$681,831
W ith in
15-days
16-30
days
31-60
days
Jjp 100
54,£99
0
17,835
$54,499
$17,835
Reproduced from the Unclassified / Declassified Holdings of the National Archives
‘
'
DECLASSIFIED
Authority £»0«
Marah 2 1 , 1951
Dear Mr* I.latteaom
I acknowledge receipt of and shall bring to
the attention of the member* of tho Board your
letter of ’
>^,h.^,20t|i#>„©iiolo«ing a report of open
jparket operation* for the period from March 12#
1951 to Maroh 18$ 1951 inoluilve*
Very truly yoursg
M* McClelland*
-Assistant Secretary
Mr# v;. B* ?.%tte«on#
ifilstant Deputy Governor,
Federal Beaerve Bank#
Few York, fh Y*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»Q*
V
MAS
£«*I k
F e d e ra l R e s e rv e B a n k
of
CQNFXDfflTIAL
N e w Yo r k
March 20, 1951,
Dr. E. A. Goldenweiser,
Director, Division of Research and Statisticvs,
Federal Reserve Board,
Washington, D. G.
Dear Dr. GoldenweiserJ
Enclosed is a report of open market operations for
the period from March 12, 1931 to March 18, 1951 inclusive,
Assistant Deuutv Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £*Q«
I .
FOR SPE (
i 1v/*<
I i'MASE READ PR0v_TLY, INITIAL aMD RETURN TO Q d ^ k T A E L tS Offldl
v Gov* Meyer Mr. Hamlin v*
r. James /
Mr. Miller
Mr, P q
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
March 20, 1951*
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from March 12, 1931 to March 18, 1951 inclusive,
together with data received from Federal reserve banks.
ft. 3. Matteson
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
RECEIVED
f.iAR 2 1 1931
v U l)
OFFICE O F
THE GOVERNOR
j
niV.. .
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED MARCH 18, 1931
Holdings of Earning Assets of Federal Reserve Banks from March 19, 1950 to Date
(000 Omitted)
BILLS
GOVERNMENT SECURITIES
TOTAL
BANKERS ACCEPTANCES
Outright
Outright
Sales
EARNING
Scales
Contracts
DISCOUNTED
Purchases
-1930ASSETS
Contracts Purchases
$&05,634
7,859
$553,259** 4 3,180
$177,158
Mar. 19 $ -960,870**
206,829
112,710
143,772
Mar. 26
526,284
2,715
1,001,090
233,452
Apr. 30
47,718
2,385
161,846
527,124
982,225
247,046
45,494
May
130,066
958,776
529,450
320
28
231,505
7,578
94,735
576,560
410
June 25
916,038
197,101
2,797
127,965
45
576,323
July 30
911,554
193,275
4,137
159,137
Aug, 27
601,913
967,034
0
167,162
5,583
192,161
601,656
Sept, 24
~ 973,483
150
Oct. 29
3,752
975,021
201,603
161,906
601,438
0
233,852
Nov. 26
595,634
6,176
1,011,940
0
169,930
251,398
1,351,853
43,403
39,098
Dec. 31
686,064
324,746
*1931-*
118,453
215,137
1,788
609,877
Jan. 28
945,405
0
189,847
886
599,442
Feb. 25
0
895,606
105,431
13,731
172,550
137,671
599,454
5,250
Mar? 11
928,656
161,923
122,329
221
Mar, 18
902,218*
617,496*
250
^Includes $45,000,000 of' the $85,000,000 Special one-day certificate of indebtedness issued to the Federal Reserve Bank of Now York to cover the Treasury over
draft; balance of ^40,000,000 was sold to Now York City and other banks,
**
.
Includes unsold balance of ?p29,000,000 of the $44,000,000 Spccial one-day certi
ficate of indebtedness.
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS
AND SPECIAL ONE-DAY CERTIFICATE OF INDEBTEDNESS) DURING WEEK
___________________ ENDED MARCH 18, 1951________________________
(000 Omittod)
1
i
8
Boston
New York
Philadelphia
Cleveland
R ichmond
Atlanta
Ghicago
St. Louis
Minneapolis
Kansas City
Dallas
San Fiancisco
N. Y. holdovers
and other bills
To tals
Balance
March 18
# 46,182
156,714
49,352
57,855
16,983
12,703
81,128
23,899
25,689
33,775
29,224
38,992
$572,496
SECURITIES
Net
Change
§ 186—
26,5441,0062521392,517+
358126401107107249-
$26,958-
BANKERS ACCEPTANCES
Balance
Net
March 18
Change
$ 9,234
$ 154+
16,825
10,4360
0
62112,845
179558
1,2985,305
1,16617,044
3866,567
1353,887
533+
6,843
3,421
512,181+
17,442
22,358
3,938-
$122,329
$15,342-
BILLS DISCOUNTED
Balance
Net
March18
Change
|> 8,782 $
5+
37,876
2062,68319,345
4,39614,485
3,15314,410
2,56111,870
2,29113,593
1558,023
3,493
31553610,738
766—
6,780
6,309+
12,527
$161,922
$10,628-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ «0»
COMMENT ON CHAISES WEEK ENDED. MARCH 18, ,1931
Total earning assets of the System (exclusive of the $85,000,000 special
one-day certificate of indebtedness issued by the Treasury to cover the overdraft)
showed a decrease of $71,438,000 for the current statement week. The changes by
classification consisted of decreases of 026,958,000 of government securities due
to temporary sales and $15,342,000 in outright purchases of bankers acceptances,
and $10,628,000 in bills discounted and $18,510,000 in investments held under
sales contract.
The latter item consisted of $5,000,000 government securities
and $13,510,000 in bankers acceptances.
Money
Market
Throughout the past week, which included the quarterly financing
period of the Treasury, call money held at 1 1/2 per cent on the Exchange
and at 1 per cent in the outside market. In the few days immediately prior
to the tax date, March 16, the New York City banks were in possession of
substantial surplus reserves, a condition which had resulted frcsn gains of
funds to the market chiefly in commercial transfers and return of currency
from circulation. Oh March 16, Treasury operations resulted in a substan
tial gain of funds to the market, as net cash redemptions of called Treasury
notes and interest payments considerably exceeded income tax collections and
cash sales of the new certificate issues. In view of this gain to the market
and the accumulated excess of reserves with which the City banks entered the
tax period, $86,000*000 of participations were sold to City banks in the
special one-day certificate of indebtedness issued to cover the Treasury over
draft, and in addition a participation for $20,000,000 was sold to tho-.
Boston Reserve Bank and resold to member baiiks in the Boston District, a
transaction which had the effect of absorbing at the source funds disbursed
by the Treasury. Cn that day, tho Treasury overdraft amounted to
$170,000,000, all of which was concontrated at the New York Reserve Bank.
On the following day, tho 17th, the largest amount of income taxes
for any single day of the period was collected, and although the total was
much below general expectations, there was a large loss of funds to the New
York market both directly, and indirectly through an unfavorable balance of
wire transfers and check settlements.
Accompanying the reduction in the
Treasury overdraft to $103,000,000 on this day, the participation of th^e
City banks was reduced $30,000,000 to $56,000,000, and replaced by a tem
porary sale of $30,000,000 of securities from the New York Bank’
s own invest
ment account.
As a result of the operations for this day, the surplus of
actual reserves was largely eliminated though average reserves closed the
four day period ending with that day well above the required level.
On the
16th, further income tax collections reduced the Treasury overdraft to
$85,000,000, and accordingly the participation of New York City banks in the
special certificate was decreased to $30,000,000 and the participation of
the Boston Reserve Bank was cut to $10,000,000.
Also half of the securities
temporarily sold from the New York Bank’
s account on the previous day were
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»Q«
3
repurchased.
On this day, there was sufficient gain from various trans
actions, including an inflow of funds from other districts to restore the
reserve balances of the banks to a position of surplus. Continued in
come tax collections further reduced the Treasury overdraft on the 19th,
and the withdrawal of $50,000,000 of funds from government depositaries
on the 20th is expected to completely retire, or nearly so, the Treasury^
overdraft, so that the participations in the overdraft have been entirely
terminated and complete repurchase effected of securities temporarily
sold.
Bid and asked quotations for time funds tended slightly lower
during tho week, and, on March 19, 60-day loans were quoted at 1 1/2
per cent bid, 1 3/4 per cent asked, 90-day money at 2 per cent flat,
4 months* at 2 - 2 1/4 per cent, and 5 and 6 months' at 2 1/4 - 2 1/2
per cent.
Ninety day money was loaned in limited volume at 2 per cent,
and 6 months' at 2 1/2 per cent.
No change occurred in the active investment demand for
commercial paper, but dealers’sales continued small due to scarcity of
prime material. The average grade of prime commercial paper continued to
sell at 2 1/2 per cent, but certain choice names were sold in sizable
quantities at 2 1/4 per cent, and doubtless other outstanding names would
command a similar rate if they cane into the market.
Government
The volume of trading in the market for United States Govern
Security
ment securities was very large during the current statement week.
Market
While rather large purchases were made of the 3 1/2$ Treasury notes due
December 15, 1932, there was only a small demand for the other short
term issues, notwithstanding a heavy turnover in the market, caused by
investors effecting exchanges in maturities.
Prices of the short-term
issues were firm. .The demand for long-term government bonds was strong,
especially for the new issue of Treasury bonds and Fourth 4 l/4s, and
prices advanced fractionally.
On Wednesday, March 18, howeverj owing to
talk of the need of further Treasury financing in the immediate future,
trading in the long-term bonds was quiet and prices were mildly irregular.
At the close of the reporting period tho average yield on the
short-term issues, at dealers' offering prices was about 1.46$ as com
pared with 1.50$ last week and the average selling price for the nine
issues of Liberty Loan and Treasury bonds was 104,47 as compared with
last weekfs average price of 104.16, after adjustment for the inclusion
of the new issue.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
4
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week__
Net
Approx.
Issue
Price
Change
Yield
_
«
2 7/8# Cert, of Ind. due June 15, 1931 100 13/32
1.16%
r?
tt
1 3/4%
"
"
1.21%
+1/52
June 15, 1951 100 4/32
tt
2 3/8%
*» " tt
1.40%
Sept, 15, 1951 100 15/52
tt
tt
_
1.49%
1 1/2%
"
"
Sept. 15, 1951 100
t»
1 7/8%
M
" tt
- - 1.74%
Dec. 15, 1931 100 5/52
tf
t?
2
%
"
"
1.93%
-1/52
Mar. 15, 1932 100 2/52
- - 3 1/2% Treasury Notes tt Dec. 15, 1932 101 16/52
1*44%
Treasury Bills tt May 4 & 5,1931 1 1/2% discount bid ,none offered
tf
tt
it
tr
May
18, 1931 1 1/2%
"
1 1/4%
asked
Closing Prices on the New York Stock Exchange at tho Close
of the Current Statement Wcek and Net Changes from
___________ Close of the Previous Statement Week___________
Issue
Price
Change
Issue
Price
Change
1st 3 1/2s 101 26/32 +3/32 Treas. 4s
1944-54 108
+18/32
1st 4 1/4s 102 22/32 -4/32
"
4 l/4s 1947-52112 4/32
+12/32
4th 4 l/4s 103 29/32 +6/32
"
3 3/4s 1946-56
106 4/32 +14/32
"
3 3/8s 1943-47
102 ------+10/32
** 3 3/3s 1940-43 101 24/32 +14/52
"
3 3/8S 1941-45 101 18/52 +16/32
Bankers
Acceptances
Dealers* offerings of unendorsed bankers acceptances con
tinued at the following rates during the current statement week:
1 1/2 per cent for 50s, 60s and 90s, 1 5/8 per cent for 120s, end
1 3/4 per cent for 180-day bills.
Reports
week
ending
March 18
Boston reports that the supply of bills in its district
was not sufficient to meet the local demanc" which continued good dur
ing the past week. Dealers were obliged to import bills from their
offices in other cities for their local customers. Sixty and ninety
day bills were moving best at offered rates. In -New York easier money
conditions during the week resulted in an excellent demand for bills
which exceeded dealers* purchases substantially. Dealers* aggregate
portfolios were reduced during the week by about $25,000,000 to
approximately $35,000,000, the lowest they have been since the week
of Februa^ 4, Rates unchanged. Philadelphia reports that its
acceptance market continued unchanged from the previous week. No new
bills were offered and the demand was moderate, ^reference being for
the shorter maturities. Dealers reported portfolios about the same.
Chicago reports that its bill market was very dull. Dallas also
reports that its bill market continued dull with small demand and
no offerings to the Reserve bank.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
5
OPERATIONS FOB ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Sales of ^900,000 - aggregate par amount 3 1/2# Treasury notes due Dec. 15, 1932,
account Alien Property Custodian
27,000 n
w
” 3 1/2$ Treasury notes due Dec. 15, 1932,
________
account German Special Deposit Account
^927,000
Total Sales
and purchase of 371,650 par amount 3 3/8# Treasury bonds ox 1S41-43, account
Harding Memorial Association*
SYSTEM SPECIAL INVESTMENT ACCOUNT - -GOVERNMENT SECURITIES
Transactions effected in the System Account during the current statement
week, which were incidental to the Treasury financing period operet ions,were as
follows:
Exchange on
March 16 of
Redemption on
March 16 of
$19,286,500 - 3 1/2# Treasury notes (called for payment
on March 15, 1931) against allotment by the
Treasury of a like amount of new 1 1/2#
Treasury certificates due Sept. 15, 1931,
on subscriptions entered for $27,552,100.
8,265,600 - 3 1/2# Treasury notes (called for payment
on March 15, 1931) representing the unallotted
balance on exchange subscriptions. Replacement
of these notes was made by purchase in the
New York and Chicago markets of a like amount
of the new 1 1/2# Treasury certificates at par.
Sales to a Reserve
Bank and Joint Stock
Land Bank Accounts
in replacement of
Treasury note
redemptions
4,625,000 - 1 1/2# Treasury certificates due Sfpt. 15, 1931
4,207,000
- 4 1/4% Fourth Liberty Loan bonds
Total sales of
^8,832,00.0 - which were replaced by purchase in the market
of a like amount of the new 2# Treasury certi
ficates due March 15, 1932, at par.
Conditions in the government security market also afforded the opportunity of
advantageously effecting some exchanges in the maturities held in the System
Account* Of these exchanges aggregpfclug^77,100,000, the greater part .con
sisted of several large blocks of Treasury notes which were exchanged for the
new issues of Treasury certificates as follows:
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q«
§35,000,000 - 3 1/2% Treasury notes, called for payment
March 15, 1931, in exchange for a like amount
of new 1 1/2% Treasury certificates.
26,500,000 - 3 1/2% Treasury notes due December 15, 1932
in exchange for a like amount of new 2% Treasury
certificates.
On March 18, owing to the improved reserve position of the Federal
Reserve Bank of Atlanta, that bank repurchased the balance of $2,500,000 of
tho $5,000,000 participation in government securities in the System Account
which it temporarily relinquished on November 14 last*
The aforementioned transactions did not affect tho amount of total
holdings in the System Account which remained unchanged at $402,300,000.
The
participations by Federal reserve banks and tho classification of issues held
in^tho Account at the close of business Wednesday, March 18, 1931, were as
follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
$ 45,472,500
68,851,000
37,245,000
47,690,000
15,830,500
10,146,500
61,201,000
15,274,000
18,248,500
33.733.000
19.241.000
29.367.000
RECAPITULATION OF HOLDINGS BY MATURITIES
May 4 ,
May 18,
June 15,
June 15,
Sept .15,
Sept .15,
Dec. 15,
Mar. 15,
Dec. 15,
Oct. 15,
1931
1931
1931
1931
1931
1931
1931
1932
1932
1938
- Treasury Bills $ 2,000,000
tt
tt
30,000,000
87,281,000
- 2 7/8% C/I
18,800,000
- 1 3/4% "
54,027,000
- 1 1/2% "
82,880,500
- 2 3/8% ”
- 1 7/8 % "
71,626,500
36,332,000
- 2
% "
15,012,000
*■
*’o 1/2% T/N
4,341,000
- 4 1/4% 4th L/L
-
$402,300,000
$402,300,000
OPERATIONS IN GOVERNMENT SECURITIES IN INVESTMENT ACCOUNT
OF THE FEDERAL RESERVE BANK OF NEW YORK
As a partial offset to the easing effect in the money market caused by
Treasury tax period operations, delivery was deferred until after March 18 of about
$10,000,000 of replacement purchases made in the market for the Investment Account
of the Federal Reserve Bank of New York and sales of government securities were made
from that account to a large New York City bank, under one-day repurchase agreement
of $30,000,000 on March 17, $15,000,000 on March 18 and $10,000,000 on March 19
(referred to on page 2). Sales were also made to New York City and other banks of
participations in the Treasury Special Certificate of Indebtedness issued to the
Federal Reserve Bank of New York to cover the Treasury overdraft. The amounts of
the Treasury overdraft and of the participations sold on the first four days in the
Treasury tax period were as follows;
March
"
"
"
16
17
18
19
Treasury Overdraft
$170,000,000
103,000,000
-85,000,000
57,000,000
Participations Sold
$106,000,000
76.000.000
40.000.000
35.000.000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc«Q«
WRffl
ITEMIZED STATEMENT OF TRANSACTIONS M.-GOVEHNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE I W E 3 M 3 N T ACCOUNT OF ALL F&)E&Aii RESERVE BANKS
, _____________ FRQM -MARCH 12 ,T0 MARCH 18, 1951, INCLUSIVE________ _______________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Ifet
Net
Sale and
Redemptions
Increase
Purchases
Decrease
0
f 185,500
Boston
4>15,065,500
$12,880,000
New York
0
669,500
19,611,100
20,280,600
0
10,770,000
205,500
Philadelphia
10,564,500
0
252,000
Cleveland
15,775,500
13,525,500
0
159,500
Richmond
4,644 ,,500
4,505,000
2,500,000
Atlanta
2,157,000
0
4,657,000
0
558,000
17,7-25,000
Chicago
17,365,000
126,000
0
4,544,000
St. Louis
4,470,000
79,500
0
5,249,500
Minneapolis
5,170,000
146,000
0
Kansas City
9,557,000
9,703,000
0
106,500
5,564,000
Dallas
5,457,500
252,000
0
San Francisco
8,581,500
8,549,500
Totals
$115,984,100
$115,984,100
$2,500,000
$2,500,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS,
ALSO PURCHASE OF SPECIAL ONE-DAY CERTIFICATES OF INDEBTEDNESS AND
SALES OF PARTICIPATIONS AS DESCRIBED IN THE PRECEDING PAGE)
Sales,
Maturities
Purchases and
Issue
and Exchanges
By Exchanges
Issue
.
Gov’
t Sec*
New York
Gov’
t
See.
$60,205,150
Misc
$54 1 530 *000 Misc.
tt
t!
ti
tt
Philadelphia
6,400 ,000
"
7,200,000
»’
tt
tt
tt
»»
Atlanta
"
208,800
"
226 ,000
tt
»t
tt
tt
St. LOuis
4,625 ,000
4,625,000
"
”
tt
tt
»t
tt
5,862 ,500
4,184.000
"
Minneapolis
"
n
ft
tt
tt
Kansas City
42 ,500
3,000
"
"
n
tt
San Francisco
0
17,300
"
Totals
$49,486*000
$76,443,250
BANKERS ACCEPTANCES
(000 Omitted)
Other Holdings
Close March 18/31
By Allot Matur
Sales'
Other
ities & Holdings
Purchased ment from
Holdings
Sales March 18 Contracts
Bills
New York
March 11
C*n Mkt*
A
n
$
1,578
$221
$
871
$
9,234
$1,025
$
9,080
Boston
vP 0
6,926
14,389
16,825
0
27,261
New York
4,455 R.
0
8,840 A*
2,083
0
0
0
0
Phila.
0
0
2,125
2,012
12,345
1,391
0
15,466
Cleveland
0
842
179
558
0
737
Richmond
0
0
1,360
0
2,025
5,305
727
6,605
0
Atlanta
2,840
0
3,010
17,044
1,844
0
Chicago
18,210
756
0
1,140
6,567
754
6,955
0
St. Louis
484
619
3,887
0
484
4,022
0
Minn*
610
0
256
6,843
789
0
6,510
Kan. City
631
624
3,421
0
573
5,472
0
Dallas
1,431
0
725
17,442
1,253
1,653 R.
15,261
San Fran*
$221
$21 , 646
$23,350
$99,971
#14,946
^8 , 840
$111,575
Totals
712
Bills held <overnight by New York for distribution to other Fed. Res. Bks,
Total - - - - $22,353
NOTE: R* indicates Retained and A . indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»Q«
8
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING MARCH 18, 1951
(000 Omitted)
1-30 days
1 1/2$
31-60 days
1 1/2$
61-90 days
1 5/8$
Over 90-days
1 5/8$
New York
San Francisco
^7,798
1,350
s?5,49 5
285*
0
15
0
J3
^13,293
1,653
Totals
$9,148
$5,780
$15
#3
$14,946
Total
'Purchesed at 1 1/2 - 1 5/8$
RECAPITULATION OF PURCHASES AND SALrS OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING MARCH 18, 1951
(000 Omitted}
(Excluding Sales Contracts and Special one-day C/I)
Government
Securities
Purchased
Sold
Matured
$165,470
171,336
21,092
Totals
$ 26,958-
Bankers
Acceptances
Total
§14,946
0
26,550
|11,4043,938- (Net Change
_______ 1-day holdover
and other hills)
$>15,342-
$180,416
171,336
47,442
$ 38,3623,938- (Net Change
________ 1-day holdover
and other bills)
$ 42,300-
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES MARCH 18, 1931
(000 Omitted)
(Including Sales Contracts and Special one-day C/I)
Within
15 days
Gov*t Securities £ 45,250
Bills Purchased
74,872
0
26,095
#120,122
$26,095
Totals
91 days6 months
Over 6
months
31-60
days
61-90
days
$
6,000
19,919
$158,716
1,434
$.44,704
250
$263,076
0
§617,746
122,550
#25,919
#160,150
&L44,934
#263,076
$740,296
16-30
days
Total
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
'
Authority £»0*
March
14 * 19 3 1*
D e a r Mr* M a tte s o n :
I a ck n o w le d g e r e c e i p t o f and s h a l l b r i n g t o
t h e a t t e n t i o n o f t h e members o f t h e F e d e r a l .R eserve
B o ard y o u r l e t t e r o f M arch 1 3 t h , a d d r e s s e d t o G o v ern o r
M e y e r , e n c l o s i n g r e p o r t o f open m a rk e t o p e r a t io n s f o r
t h e p e r io d from M arch 5 , 19 3 1 t o M arch 1 1 , 1 9 3 1 t
in c lu s iv e *
V e ry t r u l y y o u r s ,
£ • M . M c C le lla n d ,
A s s is ta n t S e c re ta ry *
H r* .7• B . M a t te s o n ,
A s s i s t a n t D ep u ty G o v e r n o r ,
F e d e ra l R eserve Bank,
le w Y o r k , N . T .
Reproduced from the Unciassited I Declassified Holdings of the National Archives
i ^ i ^ ia i 6 1 s a t i l W w s s a B e aiSgSa 5 ^ a 8 fflB B ^ s g B iiiti
DECLASSIFIED
Authority fc»Q«
Fe d e r a l R e s e r v e B a n k
of
CQI'iFIDhlNTIAL
N e w Yo r k
March 13, 1951.
Dr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
?»'ashington, D. C.
Dear Dr. GoldenweiserJ
Enclosed is a report of open market operations for
the period from March 5, 1931 to March 11, 1931 inclusive,
together with data received from Federal reserve banks.
1. B. Matteson
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
FOR SPECIAL CIRCULATION
PROMPTLY, INITIAL ANjyi?
au th a-ns/& o v\ iieysr.
Mr. Hamlin \ S /
Mr. James
V"
VMr, Mille:
I'L E jl
_EAD
Mr,
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
March 13, 1951.
uear Governor faeyer:
Enclosed is a report of open market operations for
the period from ^arch 5, 1951 to March 11, 1951 inclusive,
together with data received from Federal reserve bnnks.
Assi stant Deputy Governor
Honorable Eugene Meyer,
Governor, federal Reserve Board,
Washington, D* C.
Encl.
j RECEIVED
i.IAH | i (931
I Oij'J’
iOg; O P
I 'rag Q Q y u m w o a
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
•4
Authority £«0«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR VffiEK ENDED MARCH 11, 1931
Holdings of Earning Assets of Federal Reserve Banks from March 12, 1930 to Date
(0C0 Omitted)
TOTAL
EARNING
ASSETS
$1,049,069
1,001,090
982,225
958,776
916,038
911,554
967,034
973,483
975,021
1,011,940
1,351,853
-1930Mar . 12
M a r . 28
Apr. 30
May
28
June 25
July 30
Aug* 27
Sept, 24
Oct.. 29
Npv. 26
,-Dec.- 31
-1931Tan. 28
Feb. 25
Ma r . 4
Mar. 11
GOVERNMENT SECURITIES
Outright
Sales
Contracts
Purchases
$ 2,120
fell,993
526,284
2,715
2,385
527,124
529,450
320
576,560
410
576,323
45
601,913
0
601,656
150
601,438
0
595,634
0
586,064
43,403
945,405
895,606
890,998
928,656
609,877
599,442
599,367
599,454
BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
$ 53,988
$202,550
143,772
112,710
47,718
161,846
45,494
130,056
7 ,578
94,735
2,797
127,965
4,137
159,137
192,161
5,583
3,752
161,906
169,930
6,176
39,098
324,746
0
0
500
5,250
113,453
105,431
99,539
137,671
BILLS
DISCOUNTED
^266,338
206,829
233,452
247,04-6
231,505
197,101
193,275
167,162
201,603
233,852
251,398
1,788
886
1,016
13,731
215,137
189,847
190,576
172,550
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS )
DURING- WEEK ENDED MARCH 11, 1931
(000 Omitted)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Net
Balance
Change
Mar. 11
$ 46,368
$ 185183,258
67020650,358
58,107
25213917,122
2,433+
10,186
81,486
35824,025
12674+
26,090
14633,882
10629,331
39,241
252-
$599,454
$
87+
BANKERS ACCEPTANCES
Balance
Net
Change
Mar. 11
| 9,080
$ 2,930+
27,261
9,015+
0
0
5,241+
13,466
5C737
6,603
1,670+
8,648+
18,210
6,953
2,861+
826+
4,022
2,451+
6,310
804+
3,472
15,261
5,763+
26,296
2,027-
^>137,671
$38,132+
BILLS DISCOUNTED
Balance
Net
Mar. 11
Change
$
770$ 8,777
38,082
75221,928
1,516225+
18,881
17,563
727 +
34114,431
79415,884
8,158
99115+
3,808
3611,274
7,546
156,218
13,778-
$172,550
$18,026-
COtSIENT 0IT CHANGES ThEEK ENDED 1IARCH 11, 1931
Total earning assets of the System showed an increase of $37,658,000 for
the current statement week. The changes by classification consisted of a decrease
of $18,026,000 in bills discounted and increases of $87,000 and 038,132,COO respec
t i v e l y , in outright purchases of government securities and bankers acceptances and
$17,465,000 in investments held under sales contracts. The latter item consisted
of $4,750,000 government securities and $12,715,000 bankers acceptances.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
■*
~
Authority £»0«
2
Money
Market
On each of the three business days during the period from
March 5 to March 9 the Stock Exchange rate for new call loans advanced
to 2 per cent from the renewal level of 1 1/2 per cent, and on the
following day, March 10, a 2 per cent renewal rate was posted, the
new loan rate also holding at 2 per cent throughout the day. In the
outside market, borrowers likewise had to pay 2 per cent for part of
their accommodation. The firmer condition of the money market during
these days reflected an outflow of funds from the market to other cen
ters, accompanying an increase in the Treasury's balances at the Re
serve banks to a figure somewhat above their usual level. The Treasury
^ withdrew funds from depositaries during the first week of March in order
to meet expenditures, including those on account of loans to veterans,
and pending the actual encashment of the bonus checks, which put the
funds back into the money market, the funds wero held in the Reserve
banks*
Beginning on March 11, an easier tendency developed and on
that day a decline to 1 1/2 per cent occurred in the Exchange new loan
rate from the 2 per cent renewal level. On the following day, all Ex
change loans were made at 1 1/2 per cent and outside money was offered
to some extent at 1 per cent. This reversal of money tendency reflected
in part a reduction in the Treasury balancc at the Reserve banks to a
normal figure and a return of currency from circulation, two factors
which were accompanicd by a return flow of funds to the New York market'
from other centers. Also a substantial amount of bills was offered to
the Reserve bank during the week, which kept the N cyj York City banks*
reserves in tho proximity of requirements, so that when the gains in
commercial and Treasury transactions occurred late in the reporting
week, the New York City banks accumulated a large excess of reserves.
Only small fluctuations in bid and asked rates for time money
occurred during the week. In the early days nominal quotations for
certain maturities were marked up about 1/4 per cent, but subsequently
the rate structure became practically the same as at the opening of the
period, except that 6 months' money was quoted 1/4 per cent lower.
Throughout the period an extremely limited volume of business was
transacted.
The commercial paper dealers continued to report that bank
investment demand for prime names was in excess of the supply of this
grade of paper. The prevailing rate quoted was 2 1/2 per cent.
Government
Security
Market
‘
■The market for short-term government securities continued
quiet with a light demand and prices declining a shade from the previous
week's close. The reverse of this condition was prevalent in the mar
ket for the long-term issues with trading quite active and the demand
good, especially for the Fourth 4 l/4s and the Treasury bonds. Prices
of Treasury bonds registered gains for the week of from 3/32 to 22/32nds,
the new issue of 3 3/8# bonds selling at a premium of slightly more than
one point. At the elose of the statement week the average yield on the
short-term issues, at dealers' offering prices, was about 1 1/2# as com
pared with 1.35# last week and the average selling price for tho long
term bonds, including the new issue of 3 3/8# Treasury bonds, was 104,16
as compared with tho previous week's average of 104.27, which excluded
the new 3 3/8# bonds.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q»
Dealers1 Offering Priccs at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net Approx
Price
Issue
Change Yield
2 7/8# Cert, of Ind. due Juno 15, 1931
100" 15/32 -2/32 1,28%
1 3/4#
"
»
"
'» June 15, 1931
100 3/32 -1/32 1,37#
2 3/8#
" f' "
" Sept 4 15, 1931
100 15/32 -2/32 1.44$
1 1/2#
» «
«
« Sept, 15, 1931(w.i.) 100
1.50#
1 7/8#
"
” "
" Dec, 15, 1931
100 3/32 -2/32 1.74"
2
#
"
«
»
« Mar- 15, 1932(w,i.) 100 1/32 +1/32 1.96:;.
3 1/2# Treasury Notes Series WAM and "B"
called for payment Mar, 15> 1931
100 (Bid)
3 1/2# Treasury Notes due Dec, 15, 1932
101 16/32 -3/32 1,494
Treasury Bills due May 4 and 5, 1931 1 1/2# discount bid none offered
Treasury Bills due May 18, 1931
1 1/2# discount bid 1 1/4#
asked
w,i, - when issued
Closing Sale or Bid Prices on the New York Stock Exchange at
the Glosc of the Current Statement feek and Net Changes
from Close of the Previous Statement Week
Net
Net
Change
Issue
Change
Issue
Price
Price
1944-54 107 21/32(Bid) +11/32
1st 3 1/ 2s 101 23/32 -2/32 Treas, 4s
4 1/4s 1947-52 111 24/32
+ 7/32
1st 4 l/4s 102 26/32
4th 4 1/ 4s 103 23/32 -1/32
"
3 3/4s 1946-56 105 22/32
+ 2/32
"
3 3/8s 1943-47 101 22/32
+22/32
"
3 3/8s 1941-43 101 2/32(Bid) +15/32)
w.i.)
"
3 3/8s 1940-43 101 10/32
+18/32
Bankers
Acceptances
Dealers* offerings of unendorsed bankers acceptances con
tinued at the following rates during the current statement week:
1 1/2 per cent for 30s, 60s and 90s; 1 5/8 per cent for 120s, and
1 3/4 per cent for 180-day bills.
Reports
week
ending
March 11
Boston reports that the supply of bills in its district
continued small during the past period and dealers were obliged to im
port about $>4.,800,000 from their offices in other cities to care for
the local demand, which, improved considerably. Ninety day bills con
tinued to be in best demand. In New York money conditions were firmer
the greater part of the week and bill dealers* purchases exceeded their
sales moderately until the last day of the period when money became
easier and resulted in a better demand for bills. Dealers’port
folios at the close of the week had only increased by $3,000,000 to
$60,000*000. The Federal Reserve Bank of New York purchased sub
stantial amounts of short bills during the week for System Account
from banks who needed to adjust their reserve positions, Philadelphia
reports that its acceptance market was very quiet. There were practic
ally no new bills during the week with the demand lighter than for
somo time. Chicago reports that its market for bankers acceptances
continued quiet during the past week, Dallas reports that the bill
market in its district continued dull with no demand. Offerings to
ttys Reserve bank T*orc negligible.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £.Q* M R S?
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated unler Treasury authorization during the current
statement week were as follows:
Sales of £>2,000,000 - 4 1/4% Treasury bonds of 1947-52, account Government Life
Insurance Fund
75,000____ - 3 1/2% Treasury notes, due December 15, 1932, account
__________
Alien Property Custodian
$2,075,000 - Total Sales
SYSTEM SFECIAL ETV3STIISNT ACCOUNT - GOVERNMENT SECURITIES
On March 11, the Federal Reserve Bank of Atlanta, owing to its improved
-reserve position, repurchased $3,500,000 of the £5,000,000 of its participation in
government securities in the System Account which it temporarily relinquished on
November 14, 1930.
This was the only transaction in the System Account during the
current statement week, the total holdings remaining at $40 2,300,000.
The partici
pations by Federal reserve bank& and the classifications of issues held in the
Account at the close of business Wednesday, March 11# 1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
$ 45,658,000
69,520,500
37,450,500
47,942,000
15,970,000
7,646,500
61,559,000
15,400,000
18,328,000
33,879,000
19,347,500
29,599,000
$402,300,000
RECAPITULATION 0? HOLDINGS BY MATURITIES
May
4,
May 18,
June 15,
June 15,
Sept .15,
Dec. 15,
Mar. 15,
Series
Dec. 15,
Oct, 15,
1931 * Treasury Bills $ 2,000,000
«
30,000,000
1931 1931 - 2 7/8$ C/I
87,281,000
13,800,000
1931 - 1 3/4fo «
86,980,500
1931 - 2 3/8# tr
69,626,500
1931 - 1 7/8$ tt
1931 - 3 1/2% T/N
62 r552,100
"A" and ”
B”
41,511,900
1932 - 3 iM o T/N
8,548f000
1938 - 4 1/4$ 4th L/L
$402,300,000
*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ «0«
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
___________________ FROM MARCH 5 TO MARCH 11, 1931, INCLUSIVE_______________________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Purchases
0
0
0
0
0
2,500,000
0
0
0
0
0
0
Sales
9 185,500
670,000
206,000
252,000
139,000
0
358,000
126,000
79,500
146,000
106,000
232,000
#2,500,000
^2 ,500,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Hew York
Atlanta
Minneapolis
Purchases
$6,900,000
135,150
429,000
Totals
3>7,464,150
Issue
Misc. Gov't See.
tr
»t
it
tt
sales
£6,900,000
202,200
275,500
tt
Issue
Misc. Gov't Sec.
tt
tt
tr
tt
w
tt
$7,377,700
BANKERS ACCEPTANCES
(000 Omitted)
Boston
New York
Holdings
March 4
§ 6,150
18,246
Phila.
0
8,225
Cleveland
787
Richmond
Atlanta
4,933
9,562
Chicago
4,092
St, Louis
3,196
Minn*
3,859
Kand City
Dallas
2,668
S^n Fran.
9,498
xotals
■
-3ills held o-vernight
7J ' —
NOi’
E:
* - - — —-
Other Holdings
Close March 11/31
By Allot Matur
Sales
Other
Pure liased ment from
ities & Holdings
March 11 Contracts Bills
Own Mkt.
New York
Sales
439
& 1,377
| 9,080 |
$ 1,797
0
$ 4,307
0
4,974
27,261
12,535
7,886
13,989 R.
36,451 A.
0
2,372
0
0
0
0
13,466
0
2,420
5,765
524
0
958
737
0
50
0
0
6,603
1,486
0
2,951
1,281
0
3,234
257
1,462
2,434 R.
7,676
18,210
839
229
0
6,953
0
3,090
551
1,095
4,022
1,921
0
0
695
757
6,310
0
3,208
0
719
0
1,483
3,472
7 "
2,280
1,629
500
15,261
1,938
2j448 "
5,253
-(t;24,586
$55,329
$15,170
$111,375 ^13,731
'^36,451
1,710
by New York for distribution to other Fed, Res. Bks.
Total - - - - - £26,296
R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»0*
6
MATURITIES AND BATES ON BILLS PURCHASED WEEK ENDING- MARCH 11, 1931
(000 Omitted)
1-30 days
1.1/2# .
31-60 days
1 1 / 2 - 1 5/8%
61-90 days
1 5/8%
Over 90-days
1 5/8%
Total
New York
Chicago
Dallas
San Francisco
$44,20 5
1,483
7
1,826
$6,208
951
0
607
$27
0
0
7
0
0
0
J3
$50,440
2,434
7
2,448
Totals
$47,521
$7,766
$34
#e
$55,329
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
1803- BANKERS ACCEPTANCES DURING WEEK ENDING MARCH 11, 1931
(000 Omitted)
(Excluding Seles Contracts)
Gov eminent
Securities
Purchased
Sold
Matured
Bankers
Acceptances
<^>9,964
9,877
0
87+
Totals
Total
^55,329
4
15,166
^40,159+
2,027- (Net Ghange
_________ 1-day holdover
and other bills)
$38,132+
065,293
9,881
15,166
•^40,246+
2,027- (Net Change
_______ 1-day holdover
and other bills)
;38,219+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES MARCH II, 1931
(000 Omitted)
(Including Sales Contracts)
Gov’
t Securities
Bills Purchased
Totals
Within
15-days
16-30
days
0 92,715
78,336
0
49,372
$171,051
|49,372
31-60
days
61-90
days
91 day s6 months
Over 6
months
Total
0 2,000 £30,000
21,695
1,760
0127,386
239
0352,603
0
0^04,704
151,402
$23,695
$127,625
$352,603
$756,106
#31,760
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»Q*
March 7, 1331.
Dear Hr. Mattesoat
I
acknowledge receipt of and shall bring to
the attention of th& members of the Federal Heserve
Board your latter of March 6th, addressed to Governor
Meyer, enclosing report of open market operations for
the period from February 26, 1931 to March 4 t 1931,
Inclusive.
Very truly yours,
&. M. McClelland,
Assistant Secretary.
Mr. W. B. lastesoa,
Assistant Deputy Governor,
Federal Eeserve Bank,
New York, £. Y.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»Q*
rffa/ Uf /
/I
v./. *
a
-
. ^
Fe d e r a l R e s e r v e B a n k
of
N e w Yo r k
%
JJQNFIDMT1AL
March 6, 1931,
Dr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweiser:
Enclosed is a report of open market operations
for the period from February 26, 1951 to March 4, 1931 in
clusive, together with data received from Federal reserve
banks.
Assistant Deputy Governor
Encl.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« f f l S ?
W
(
FOR SPECIAL CIRCULATION
PIiEASE READ PROMPTLY, -INITIAL AHD RETURN 10 SECRETARY’
S OFFICE
Meyer.
Mr. Hamlin
Mr. James
Mr.
of
N e w Yo r k
CQmDENTliLL
March 6, 1931.
Dear Governor Meyer:
Enclosed is a report of open market operations
for the period from February 26, 1951 to March 4, 1931 in
clusive, together with data received from Federal reserve
banks.
Assistant deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED MARCH 4, 1931
Holdings of Earning Assets of Federal Reserve Banks from March 5, 1930 to Date
.. n.......... (000 Omitted r
'
"
TOTAL
EARNING
-1930ASSETS
Mar.
5 $1,078,193
Mar. 28
1,001,090
Apr. 30
982,225
May
28
958,776
June 25
916,038
*911,554
July 30
Aug* 27
967,034
Sept, 24
973,483
Oct. 29
975,021
Nov, 26
1,011,940
, Dec. 31
1,351,853
-1931945,405
Jan. 28
Feb, 25
895,606
Mar.
4
890,998
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
$ 1,050
$485,095
526,284
2,715
2,385
527,124
320
529,450
576,560
410
45
576,323
601,913
0
601,656
150
601,438
0
595,634
0
43,403
686,064
609,877
599,442
599,367
0
0
500
BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
$219,964
|J51,238
143,772
112,710
161,846
47,718
130,066
45,494
94,735
7,578
2,797
127,965
4,137
159,137
192,161
5,583
3,752
161,906
6,176
169,930
39,098
324,746
118,453
105,431
99,539
1,788
886
1,016
BILLS
DISCOUNTED
$308,616
206,829
233,452
247,046
231*505
197,101
193,275
167,162
201,603
233,852
251,398
215,137
189,847
190,576
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SAL^S CONTRACTS)
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
March 4
fifhan^e
$ 46,553
0
183,928
0
50,564
0
58,359
0
17,261
0
37+
7,753
81,844
0
24,151
0
11226,016
34,028
0
29,437
0
39,473
0
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y, holdovers
and other bills
Totals
$599,367
$ 75-
BANKERS ACCEPTANCES
Net
Balance
March 4
Change
$ 6,150
$1,006+
18,246
6,428—
0
0
8,225
2,036+
787
1314,933
522+
9,562
1,426+
331+
4,092
991+
3,196
1743,859
2,668
857+
9} 498
2,552+
28,323
8,880-
$99,539
#5,892-
BILLS DISCOUNTED
Net
Balance
Change
March 4
$876*
$ 9,547
38,834
818+
23,444
35318,656 2,14416,836
41414,772 1,60616,678 1,0479,149
193,793
124141+
11,310
7,561
777+
19,996 5,576+
$190,576
$729+
COMMENT ON CHANGES WEEK ENDED MARCH 4, 1951
Total earning assets of the System showed a decrease of $4,608,000
ior the current statement week* The changes by classification consisted of de— '
creases of $75,000 and #5,892,000 respectively, in outright purchases of govern
ment securities and hankers acceptances* and increases of $729,000 in bills dis**
counted and $630,000 in investments held under sales contracts. The latter item
consisted of $130,000 bankers acceptances and $500,000 government securities.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
Money
Market
Slightly firmer money conditions prevailed in the New York
market during the past week. The changing situation was reflected
principally in the "outside" rate for call loans which on March 3 and
4 rose to 1 1/2 per cent, after having gotten no higher than 1 - 1 1/4
per cent in the preceding week* Call money on the Exchange held
throughout the past week at 1 1/2 per cent, until late on the afternoon
of March 5 when the rate for new accommodation was raised to 2 per
cent. Not since January 2 has any other rate than 1 1/2 per cent been
quoted at the Stock Exchange money desk. Firmness during thisi the
first week of the month, reflected in part an outflow of funds to other
centers, increased currency requirements, and government calls from
depositary institutions which caused the New York Gity banks to borrow
temporarily a moderate amount at the Reserve bank. A special circum
stance affecting the market on March 5, the day when the 2 per cent
rate was quoted for a short while, was the adjustment inei&ont to the
syndicate payment to New York City for the $100,000,000 bond sale.
In the time money market, no chango occurred in quotations
or in the quiet state of the demand for this type of accommodation*
Three months* money was quoted at 2 per cent bid, 2 1/4 per cent
offered.
Investment demand for commercial paper continued to be in
excess of the supply of new material that entered the market. The
most generally quoted rate for prime names was 2 1/2 per cent, with
some offerings 1/4 per cent above and below this figure.
Government
Security
Market
The volume of trading in the market for the short-term
issues of government securities was quiet with a diminishing demandj
with the exception of the 3 1/2 per cent Treasury notes, which have
been called for payment on March 15, 1931, for which a good demand
sprang up in connection with the subscriptions to the new issue of
Treasury bonds. Trading in the long-term bonds, however, was quite
active, and the demand good. Prices of the short-term issues re
corded small fractional losses for the week, while most of the long
term issues of bonds, reacting favorably towards the Treasury March
16 financing, made largo fractional gains, (On the last day of the
current statement week the new issue of 3 3/8 per cent Treasury
bonds of 1941-43 were quoted in the market on a "when issued basis*
at 100 19/32 bid, 100 22/32 asked, representing a promium over the
issue price of slightly more than 1/2 a point)# At the close of
the period the average yield on the short-term issues, at dealers*
offering prices, was about 1.35 per cent as compared with 1.25 per
cent last week and the average selling price for the lc>ng-term
bonds was 104.27 as compared with 103.98 last week and the high
and low for the year of 105.61 and 103.59 respectively*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ » 0 *
Dealers* Offering Pricos at the Close of the Current Statement Week
and Not Changes from the Close of the Previous Statement Week
Approx.
Net
Issue
Price
Yield
Change
Cert, of Ind* due June 15, 1931 100 15/32
1.17^
- 1/32
ft
tt
tf
3/4%
1.29%
*' June 15, 1931 100 4/32
tf
ft
3/8/S tf
" Sept. 15, 1931 100 17/32
1.35%
- 2/32
ff
tf
1.66%
- 4/32
7/81o tf
tt Dcc. 15, 1931 100 5/32
Treasury Note s Scries “
A*1 and *’
B”
-------called for payment Mar. 1 5 , 1931 100 1/32 (bid) ---Treasury Note s due Dcc. 15, 1932 101 19/32
- 2/32
1.42%
Treasury Bill s duo May 4 and 5, 1931 1 1/2% discount - none
offered
May 18, 1931
1 1/2% discount bid 1 1/4%
asked
-
-
-
Closing Sale or Bid Prices on the New York Stock Exchange at the Glosc
of the Current Statement Week and Net Changes from
Close of the Previous Statement ‘
Week
Net
Not
Issue
Price
Change
Issue
Price
Change
1st 3 l/2s 101 25/32 +13/32 Troas.4s
1944-54 107 10/32
+21/32
1st 4 l/4s 102 26/32 + 1/32
" 4 l/4s 1947-52 111 17/32
+30/32
4th 4 l/4s 103 24/32 +10/32
" 3 3/4s 1946-56 105 19/32
+29/32
-14/32
" 3 3/8s 1943-47
101
3 3/8s 1940-43 100 24/32(hid) -5/32
Bankers
Acceptances
Dealers* offerings of unindorsed bankers* acceptances con
tinued at the following rates during the current statement week: 1 1 / 2
per cent for 30s, 60s and 90s, 1 5/8 per cent for 120s and 1 3 / 4 per
cent for 180-day bills.
Reports
week
ending
March 4
Boston reports that there was a small increase in the supply
of bills in its district during the past period which was more than
sufficient to take- care of the local demand which continued small*
Dealers forwarded about 3670,000 to their offices in other cities.
Ninety day bills continued in best demand. In New Yorkj dealers*
purchases were moderately larger this week than the previous week,
while their sales increased slightly. Sales, however, exceeded their
purchases by a small margin and dealers* aggregate portfolios decreased
by about $4,000,000 to $57,000,000. Rates steady* Philadelphia re
ports that its acceptance market was dull and inactive. Offerings
continued moderate with the demand fair but spotty. Chicago reports
that the bill market in its district continued very quiet. Dallas
reports that its bill martet continued dull with small demand. Offer
ings to the Reserve bank were light.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0*
4
OPERATIONS FOB ACCOUNT OF TOUTED STATES TREASffiffi
Transactions consummated under Treasury authorization during the current
statement week consisted of
Sales of $3,000,000 - aggregate par amount 4 1/4$ Treasury bonds of 1947-52,
account Government Life Insurance Fund
250,000___ - par amount 3 1/2% Treasury notes, due December 15, 1932,
__________
account Alien Property Custodian
-
$3,250,000 - Total Sales
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week exchanges were effected in the Account
of
$15,000,000 - 3 1/2$ Treasury notes called for payment
March 15, 1931
for a like amount of short-term governments of various issues.
These exchanges
did not affect *the total amount of holdings in the Account which remained at
3402,3CC,000.
The participations by Federal reserve banks and the classification
of issues held in the Account at the close of business Wednesday, March 4, 1931,
were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
$ 45,843,500
70,190,500
37,656,500
48,194,000
16,109,000
5,146,500
61,917,000
15,526,000
18,407,500
34,025,000
19,453,500
29,831,000
Totals
$402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
May 4,
May 18,
June 15,
Juno 15,
Sopt .15,
Doc. 15,
Mar. 15,
Series
Dec* 15,
Oct. 15,
1931-Treasury Bills $ 2,000,000
n
1931"
30,000*000
1931-2 7/8# c / i
87,281,000
1931-1 3/4$ tt
13,800,000
1931-2 3/8$ tt
86,980,500
1931-1 7/8$ tt
69,626,500
1931-3 1/2$ T/N
62,552,100
"A" and ”B”
1932-3 1/2$ tt
41,511,900
1938-4 1/4$ 4th L/L
8,548,000
$402,300,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ » 0 «
5
ITEMIZED STATEJOTT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND FANKERS ACCEPTANCES
AFFECTING THE INVEST! 'ENT ACC0lm T OF ALL FEDERAL RESERVE BANKS
____________________FROM FEBRUARY 26 TO MARCH 4, 1931, INCLUSIVE___________________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Purchases
$ 1,709,500
2,617,000
1,404,000
1,797,000
600,500
192,000
2,308,500
579,000
686,000
1,268,500
725,500
1,112,500
$15,000,000
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Sales
$ 1,709,500
2,617,000
1,404,000
1,797,000
600,500
192,000
2,308,500
579,000
686,000
1,268,500
725,500
1,112,500
$15,000,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
New York
Atlanta
Minneapolis
Totals
Purchases
Issue
$1,750,000 *J.iisc. Gov't Sec.
tt
tt
tt
524,050
tt
»t
tt
365,500
Sales
Issue
$1,750, 000 Misc. Gov ft Sec.
tt
tt
"
486, 950
tr
tt
475, 150
”
$2,637,550
$2,712,100
BANKERS ACCEPTANCES
(000 Omitted)
Other Holdings
Close March 4, 1931
By Allot Matur
Sales
Other
Holdings Purchased ment from ities & Holdingsi
Contracts
Bills
Sales
Mar. 4
Feb.25
Own Mkt.
New York
$ 1,688
§ 732 $ 6,150
$ 488 ■ § 1,797
$
50 R
Boston
& 5,144
9,471
7,883
18,246
0
New York
24,674
3,043 tt
0
14,028 A
0
0
2,372
0
0
Phila.
0
0
2,193
157
2,420
0
8,225
0
Cleve.
6,189
958
Richmond
131
787
918
0
0
0
1,529
1,100
578
4,411
0
0
4,933
Atlanta
528
3,234
Chicago
0
1,595
9,562
8.,136
3,021
839
4,092
St. Louis
3,761
0
1,155
824
0
551
Minn.
3,196
2,205
460 R
761
230
0
695
Kan. City
0
1,208
3,859
0
4,035
1,382
719
1,811
867
151
2,668
141
0
Dallas
San Fran.
2,035
1,629
1,258
9,498
1,775 tt
0
6,946
$68,228
$1,016
Totals
$14,028 $16,509 $71,216
$24,626
$19,49?
Bills held over night by New York for distribution to other I R. Banks - -• 3,697
T ot a l-------------- $28,325
NOTE:
R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
MATURITIES AND RATES ON BILLS PURCHASED Y/SBK ENDING MARCH 4, 1931
(000 Omitted)
1-30 days
1 1/2$
|
Boston
New York
Minneapolis
Dallas
San Francisco
50
15,573*
460
118
431
$16,682
Totals
31-60 days
1 1/2-1 5/8$
61-90 days
1 5/8$
Over 90-days
1 5/8$
| 0
1,498
0
3
1,215
$ 0
0
0
20
60
$ 0
0
0
0
19
$
$2,716
$80
$19
$19,497
Total
50
17,071
460
141
1,775
* Purchased at 1 1/2 to 1 3/4$
RECAPITULATION OF PURCHASES AND SALES OF G-OVERNI'IENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING MARCH 4, 1931
(000 Omitted)
•
(deluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
Totals
Bankers
Acceptances
To tal
$17,637
17,712
0
$19,497
50
16,459
$ 2,988+
8,880-(Net Change
1-day holdover
& other bills)
$37,134
17,762
16,459
$ 2,913+
8,880-(Net Change
1-day holdover
& other bills)
$
$ 5,892-
$ 5,967-
75-
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES MARCH 4, 1931
:
(occ Omitted)
(Including Sales Contracts)
Within
15-days
Gov’
t Securities
Bills Purchased
Totals
16-30
days
31-60
days
61-90
days
91 days6 months
Over 6
months
Total
$ 83,065
35,604
$ 0
40,488
$
0
21,414
$32,000
2,738
$129,395 $355,407 $599,867
311
C
100,555
$118,669
$40,488
$21,414
$34,738
$129,706 $355,407 $700,422
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»0«
F eb ru ary 2 8 , 1 9 3 1 .
Mattemms
D ea r Mr*
1
to
the
acknowledge
a tte n tio n
serve Boaid
to
your
of
r e c e i p t o f and s h a l l b r i n g
t h e members ©f t h e
letter flfjBbm ayy ,££Hu
S ro re ra o r M a y e r , e n c l o s i n g r e p o r t
operations for
t h e p e r io d
fraa
of
¥ e ry t r u ly you r e .
2. *•
M c C le lla n d ,
Assistant Secretary.
3£r* vv* B . M a tte so m ,
A s s i s t a n t D ep u ty G o v e r n o r,
F e d e ra l B e se rre B ask,
ad d ressed
open mai*ket
F e b r u a r y 1 9 , 19 3 1
t o F eb ru ary 2 5 , 1 9 5 1 , in c lu s iv e *
lev Tork, M* l«
Federal Ha-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q» \335>y
Vl/
%'
j
'vf'.
XP
Fe d e r a l R e s e r v e B a n k
of
QQMFIDMT1AL
N e w Yo r k
February 27, 1951.
Dr. E, A, Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweiseri
Enclosed is a report of open market operations for
the period from February 19, 1931 to February 25, 1931 inclu
sive, together with data recei)£ed from Federal reserve banks.
w. B. Matteson
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0*
P C
I LiSiASiii REi^. PROMPTLY
/
>
'/Gov. Meyer.
*'!v X.
\
^ ‘
x '
„
11
:
TNTTtat
t
* l N L l l A ^ J - m ^ E T U R i i TO SECRETARY'S O ^ m -
Mr. Hamlia
s,
Mr. Miller ^
-
.
Mr, Jases /
,t
*
,t
Fe d e r a l R e s e r v e B a n k
of
5
v
Mr* Pol©
N e w Yo r k
CONFIDE TIA L
February 27, 1931,
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from February 19, 19bl to February 25, 1951 inclu
sive, together with data received from Federal reserve banks.
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D, C.
Encl.
j '•C'J
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED FEBRUARY 25, 1931
Holdings of Earning Assets of Federal Reserve Banks from February 26, 1950 to Date
(000 Omitted)
-1930Feb. 26
Mar. 28
Apr. 30
May
28
June 25
July 30
Au&. 27
Sept. 24
Oct* 29
Nov. 26
Dcc. 31
-1931Jan. 28
Feb. 18
Feb. 25
TOTAL
EARNING
ASSETS
tjl,138,532
1,001,090
982,225
958,776
916,038
911,554
' 967,034
973,483
975*021
1,011,940
1,351,855
945,405
895,491
895,606
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
£>477,610
$ 5,145
526,284
2,715
527,124
2,385
529,450
320
576,560
410
576,323
45
601,913
0
601,656
150
601,438
0
595,634
0
686,064
43, ^fcO3
'
609,877
599,673
599,442
BANKERS ACCEPTANCES
Sales
Outright
Purchases Contracts
$66,785
$232,521
112,710
143,772
47,718
161,846
45,494
150*066
7,578
94,755
2,797
127,965
4,157
159,157
5,585
193,161
5,752
161,906
6,176
169,930
524,746
59,098
118,455
90,625
105,431
0
0
0
BILLS
DISCOUNTED
£342,781
206,829
233,452
247,046
231,505
197,101
193,275
167,162
201,603
233,852
251,398
1,788
5,370
886
215,137
199,823
139,847
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
______ . DURING WEEK ENDED FEBRUARY 25, 1951_____________
,
(000 Omitted)
Boston
New York
Philadelphia
Cleveland
R ic hmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Net
Balance
Feb. 25
Change
$ 46,553
s? 0
183,928
0
50,564
0
58,359
0
17,261
0
217,716
81,844
0
24,151
0
26,128
21034,028
0
29,457
0
59,475
0
^5t>9 ,442
$251-
BANKERS ACCEPTANCES
Net
Balance
Ghange
Feb. 25
$
53+
$ 5,144
24,674
2,812+
30
6,189
766+
50918
4,411
202+
8,156
231483+
5,761
2,205
183+
593+
4,055
293+
1,811
3,171+
6,946
57,205
6,534+
$105,451
|>14,806+
BILLS DISCOUNTED
Net
Balance
Feb. 25
Change
$ 10,423
§ 228+
375+
38,016
23,797
212+
2,01520,800
9517,250
5,53916,378
1,36417,725
427+
9,168
373,917
11,169
641934+
6,784
2,46114,420
§189,847
§9,976-
COMMENT ON CHANGES WEEK ENDED FEBRUARY 25, 1931
Total earning assets of the System showed an increase of $2,115,000 for
the current statement week. The changes by classification consisted of decreases
of $231,000 and $2,484,000 respectively, in outright purchases of government
securities ajid bankers acceptances held under sales contracts, and $9,976,000 in
bills discounted, and an increase of $14,806,000 in outright purchases of bankers
acceptances*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ » 0 * V2RS%*
2
Money
Market
The movement of rates in the New York money market, though
within narrower limits, was much the same as a wrek ago. Some slight
firmness was evident in the rate for call lo-.ns in the outside market
on the 25th and 26th* when small amounts were loaned at 1 1/4 per cent
compared with 1 per cent on earlier days of the week. Call money on
the Stock Exchange remained at 1 1/2 prr cent throughout the period*
At tho opening of the period the money market hanks had a
moderate surplus of reserves, hut this was entirely absorbed during tho
first throe days of the week through currency withdrawals for week-end
and holiday circulation and by an outflow of funds to other parts of the
country, in addition to which some increase in re serve requirements oc
curred. Notwithstanding sales of bills to the Reserve Bank during this
period the New York banks’reserves were slightly bclov; tho required
level at the closo of business on Saturday, a condition which carried
over the week-end holiday.
In the two days following the holiday there was a return of
currency from circulation and an inflow of funds from other centers, and,
in addition, reserve requirements returned to about the level at the
opening of the week. As a result of these changes the banks’reserves
were placed in a comfortable position with respect to requirements.
Due to a reduced supply of funds on offer, nominal bid and
asked quotations for time money were advanced about 1/4 per cent within
the week and these rates now are as follows: 30 days, 1 1/2 - 1 3/4 per
ccnt; 60 days, 1 3/4 - 2 per cent; 90 days, 2 - 2 1/4 per cent; 4 months,
2 1/4 per cent flat; 5 months, 2 1/4 - 2 1/2 per ccnt; and 6 months,
2 1/2 - 2 3/4 per ccnt. The small volume of trading activity during
the period was principally in 4 months’loans at 2 1/4 per ccnt, and in
5 and 6 months* funds at 2 1/2 per cent.
The prevailing rate for prime commercial paper declined
slightly to 2 1/2 per ccnt from the 2 1/2 - 2 3/4 per ccnt range pre
viously current. Some sales of prime paper also have been made as low
as 2 1/4 per ccnt, and some trades continue to be made at 2 3/4 per centi
Investment demand for paper continues in excess of supply, with sales
limited by the scarcity of prime material.
Gov ernme nt
Security
Market
The volume of trading in the market for United States Govern
ment securities during the statement week was moderate and prices of
both short and long-term issues declined fractionally. The short-term
issues showed losses for the week of about 3/32nds, while the long-term
Treasury bonds recorded losses ranging from 18/32nds to 28/32nds. With
the exception of the Treasury notes, called for payment on March 15, for
which there was a good demand, offerings were in excess of the demand.
At the close of the reporting period the average yield on the short-term
issues at dealers’offering prices was about 1,35$ as compared with
1 1/8% last week and the average selling price for the long-term bonds
was 103.98 as compared with 104.45 last week, and the high and low
levels for the year of 105.61 and 103.59 respectively.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
-• * . '
Authority £»Q«
nr ■:-rchx*t7:"'~Vt~f?* l y i t ^ w w a w n '.
/
2
1
2
1
3
3
3
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement vfock
Net
Approx,
Change
Yield
Price
Issue
-3/32
1.17%
7/8% Cert, of Ind, due June 15, 1931 100 16/32
1.32%
-3/32
3/4%
"
"
"
" June 15, 1931 100 4/32
-4/32
1.27%
3/8%
M
ff "
M Sept. 15, 1931 100 19/32
-3/32
1.-51%
7/8%
” "
"
" Dec. 15, 1931 100 9/32
1/2% Treasury Notes Series ”
A ”and ”
BH
- - called for payment Mar. 15, 1931 to yield 1%
1 .00%
1,39%
-3/32
1/2% Treasury Notes due Dec, 15, 1932 101 21/32
Treasury Bills due May 4 and 5, 1931 1 3/8% discount bid
none offered
Treasury B u i s due May 18, 1931 1 3/8% discount bid 1 1/8%
asked
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Price .
Issue
Issue
Price
Change
1944-54 106 21/32
1 st 3 1/Ss 101 12/32 6/32 Treas, 4s
4 1/4s 1947-52 110 19/32
1st 4 l/4s 102 25/32 +2/32
3 3/4s 1946-56 104 22/32
4th 4 l/4s 103 14/32 -5/32
3 3/8s 1943-47 101 14/32
3 3/8s 1940-43 100 29/32
Net
Change
-20/32
-21/32
-18/32
-23/32
-28/32
Bankers
Acceptances
Dealers 1 offerings' of unendorsed bankers acceptances were at
the following rates at the close of the current statement weeki 1 1 / 2
per cent for 30s, 60s and 90s* 1 5/8 per cent for 120s and 1 3 / 4 per
cent for 180-day bills. This represents an increase of 1/8 per cent
on all maturities from the previous week’s offering rates.
Reports
week
ending
Feb 4 25
Boston reports that the supply of bills in its district continued small during the past week, with the local demand at the prevailing rates negligible. Dealers desiring to keep their portfolios
at a minimum forwarded about §850,000 to their offices in other cities*
Offerings to the reserve bank continued small. In Now York, following
the increase in rates made by the bill dealers on the 19th of the month,,
fewer bills were offered to the dealers, while their sales increased
considerably. The demand was principally from local institutions who
were buying chiefly for the accounts of foreign correspondents. Deal
ers’aggregate portfolios decreased during the week by about
$28,000,000 to -^61,000,000. The Federal Reserve Bank of New York
purchased nothing from dealers during the week for System account but
purchased fairly substantial amounts of shorter maturities from banks
the last two days of the week, Philadelphia reports that its accept
ance market was quiet and unchanged, A small increase was noted in
the supply of new bills with the demand negligible,. Chicago reports
that the bill market in its district continued very quiet during the
past week. Dallas reports that its bill market continued dull. There
was no demand for bills and offerings to the reserve bank were small*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»0« VffiSfr
/
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the cur
rent statement week were as follows:
Sales of |
100,000 - 3 1/2# Treasury notes due December 15, 1932,
account Alien Property Custodian
4,000*000 - 4 1/4# Treasury bonds of 1947-52, account
Government Life Insurance Fund
$4,100,000 - Total Sales
SYS TIM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week exchanges were effected advantageously
in the System Account of
$16j250,000 - 3 1/2# Treasury notes called for
payment March 15* 1931
for a like amount of short-term governments of various issues#
There were no
changes in the Account other than the exchange of maturities referred to, the
total amount of holdings remaining at $403,300,000,
The participations by Federal
reserve banks and the classification of issues held in the Account at the elose
of business Wednesday, February 25, 1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
R ichmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
$ 45,843,500
70,190,500
37,656,500
48,194,000
16,109,000
5,146,500
61,917,000
15,526,000
18*407,500
34,025,000
19,453,500
29,831,000
#402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
May
4»
May 18,
June 15*
June 15,
Sept.15,
Dec. 15,
Mar. 15,
Series
Dec. 15,.
Oct, 15,
1931 - Treas.Bills
$ 2,000,000
ti
27,000,000
1931 2
7/8#
C/I
84^281,000
1931 9,800,000
1931 - 1 3/4# n
tt
81*980,500
1931 - 2 3/8#
69,626,500
1931 - 1 7/8# it
1931 - 3 1/2# T/N
77,552,100
"A" and "B"
41,511*900
1932 - 3 1/2# T/N
8,548,000
1938 - 4 1/4# 4th L/L
|402,300,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
FROM FEBRUARY 19 TO FEBRUARY 35, 1951, INCLUSIVE__________________
_ _________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Purchases
Sales
# 1,852,500
2,855,500
1,520>000
1,947,500
650,000
208,000
2,501,500
627,000
743,000
1,574,000
786,500
1,204,500
$ 1,852,500
2,855,500
1,520,000
1,947,500
650,000
208,000
2,501,500
627,000
745,000
1,574,000
786,500
1,204,500
$16,250,000
$16,250,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Issue
Sales
Purchases
Issue
New York
Atlanta
Minneapolis
$4,000,000
26,250
555,450
Totals
|4,561,700
Misc, Govft Sec.
i?
«
§4,000,000
47 ,000
745,450
Misc. Gov't Sec*
•$4,792,450
BANKERS ACCEPTANCES
(000 Omitted)
By Allot
ment from
New York
4 73.5
0
Matur
ities &
Sales
§ 772
3,922
Other Holdings
Close Feb* 25/51
Sales
Other
Contracts Bills
§608
$ 1,980
8,684
0
Holdings
Purchased
Feb* 25
Own Mkt .
$
90 R«
$ 5,144
Boston
24,674
6,734*;n
New York
7,765 A*
2,613
3
0
0
3
0
0
Phila.
2,666
479
0
6,189
1,245
5,423
0
Gleve*
1,056
918
50
0
0
Richmond
0
•968
1,617
4,411
0
454
4,209
0
656
Atlanta
3,563
8,136
278
1,834
1,553
50 R.
8,367
Chicago
924
3,761
0
241
724
0
St. Louis
3,278
607
2,205
0
247
2,022
0
430
Minnv
765
4,033
0
148
0
741
Kan. City
3,440
792
0
273
1,811
526
40 N
1,518
Dallas
6,946
1,795
0
562
1,155
3,775
2,578 M
San Fran*
$27,062
$886
•^68,228
$7,765
$8,985
$17,257
§59,956
Totals
Bills held overnight by New York for distribution to other F, R. Banks - - •- 10,141
Total
$37,203
*Mostly bills of maturities too short to allot *
Holdings
Feb, 18
$ 5,091
21,862
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 E»0»
Smm
/
6
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING FEBRUARY 25, 1951
(000 Omitted)
1-30 days
1 1/2-1 5/8$
Boston
New York
Chicago
Dallas
San Francisco
61-90 days
1 5/8$
Over 90-days
1 5/8$
90
9,244
0
40
664
0
4,184
50
0
831
0
588
0
0
1,022
0
483
0
0
61
$10,038
$5,065
$1,610
$544
$
Totals
31-60 days
1 1/2-1 5/8$
Total
|
90
14,499
50
40
2,578
$17,257
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING FEBRUARY 25,1931
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
#20,811
21,042
0
____
Totals
§
231-
Bankers
Acceptances
Total
$17,257
0
8,985
4 8,272+
6|534+ (Net Change
_______ 1-day holdover
and other bills)
^14,806+
$38,068
21,042
8,985
i 8,041+
6,534+ (Net Ghange
1-day holdover
and other bills)
$14,575+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES FEBRUARY 25, 1931
(000 Omitted)
(Including Sales Contracts)
Gov*t Securities
Bills Purchased
Totals
Within
15-days
16-30
days
31-60
days
0
39,496
$ 97,595
36,653
0
23,608
$29,000
5,844
|39,496
$134,248
$23,608
£34,844
61-90
days
91 days
6 months
Over 6
months
Total
0122,636
716
$350,211
0
$599,442
106 i 517
$L23,352
$350,211
$705'* 759
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
TV
Authority E»0«
February 21 # 1931
Dear tar* iiftttesoin
1
aokno*l«dge receipt of and shall bring
to the attention of the ambers
serve Board your letter
of
of
the Federal He-
February 20th, addressed
to Soreraor -^eyer, enolosing report of open market
operations for the period from February 12# 1931
to February 18* 19S1 inclusive*
Very truly your#*
Mm M* -oClelland,
A s s is ta n t S e c re ta ry
Mr* 1* B* Matteson*
Assistant Deputy Governor,
Federal Resenr* Bank,
lew York, H* Y.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»Q«
) //
),ty
H-
*
J
n i
P'PtLS--^’
tf.
Fe d e r a l R e s e r v e B a n k
'’
t"~'M
fj&t-
OF N e w Y o r k
CQHFIDiilNTI&L
February 20, 1931
Dr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweiser1
Enclosed is a report of open market operations for
the period from February 12, 1951 to February 18, 1931 inclu
sive, together with data received from Federal reserve banks.
Assistant deputy Governor
O
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
4:ir^ £?K-aiAI> C I R C U L A T I O N .
'PL.
Gov. Meyer
J
TLY , IKXTIAL AHD RETURU
Mr. Hamlin \s
TO
S.
/
DIARY’
S OFEICK
Mr. James
Mr. Mill e r
^
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
"GOMFIDMTIAL
February 20, 1931
Dear Governor Meyer:
Enclosed is a report of open market operations
for the period from February 12, 1931 to February 18, 19S1
inclusive, together with data received from Federal reserve
banks.
Vi'. B. Matteson„
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
RECEIVED
T■
B 2 1 1931
OFFICE OF
THJBoi qQVHRNaft
i f ; j 'f f lW —
M M H H iM IW M Illu W W M M M B B j
mm
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0»
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED FEBRUARY 18, 1931
Holdings of Darning Assets of Federal Reserve Banks from February 19, 1950 to Late
(000 emitted)
TOTAL
EARNING
ASSETS
l'l, 152,895
1,138,522
1,001,090
982,225
958,776
916,038
911,554
967,034
973,483
~ 975,021
1,011,940
1,351,853
-1930Feb. 19
Feb. 26
Mar, 28
Apr, 30
May
28
June 25
July 30
Aug. 27
Sept. 24
Oct. 29
Nov. 26
Dec. 31
-1931Jan. 28
Feb. 11
Feb. 18
GOVERNMENT SECURITIES
Outright
Sales
Contracts
Purchases
# 3,035
#477,580
477,610
5,145
526,284
2,715
527,124
2,385
320
529,450
576,560
410
576,323
45
601,913
0
601,656
150
601,438
0
595,634
0
43,405
686,064
945,405
919,548
893,491
609,877
609,620
599,673
0
0
0
BANKERS ACCEPTANCES
Sales
Outright
Purchases Contracts
|222,256
4 58,801
252,521
66,785
112,710
143,772
47,718
161,846
45,494
150,066
7,578
94,735
2,797
127,965
159,137
4,137
192,161
5,583
161,906
3,752
169,930
6,176
324,746
39, 098
118,453
86,245
90,625
BILLS
DISCOUNTED
#376,943
342,781
206,829
235,452
247,046
231,505
197,101
193,275
167,162
201,603
235,852
251,398
1,788
1,494
3,570
215,137
222,189
199,823
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
__ ______________ HIRING WEEK ENDED FEBRUARY 18, 1931____________
(000 Omitted)
Totals
Q
O
0
1
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
If. Y. holdovers
and other bills
GOVERNMENT SECURITIES
Balance
Net
Change
Feb. 18
$ 46,553
# 0
183,928
10,
50,564
0
58,359
0
17,261
0
7,737
18+
81,844
0
24,151
0
35+
26,338
34,028
0
29,437
0
39,473
0
#599,673
# 9,947-
BANKERS ACCEPTANCES
Balance
Net
Feb.18
Change
#1,064+
4 5,091
21,862
5,519+
3
35,423
642968
3764,209
1,040+
8,367
5363,278
610+
2,022
67 6+
47+
3,440
1,518
1353,775
886+
30,669
3,770-
#90,625
#4,380+
BILLS DISCOUNTED
Net
Balance
Feb. 18
Change
$
528# 10,195
37,641
13,82023,585
39322,815
2,91017,345
1,10821,917
6219,089
330+
8,741
1793,954
8+
11,810
2,6132635,850
16,881
828-
#199,823
#22,366-
COMiENT OF CHANGES WSSK SNEED FEBRUARY 18, 1951
Total earning assets of the System showed a decrease of $26,057,000 for
the current statement week.
The changes by classification consisted of decreases
of $9,947,00C and $22,566,000 respectively in outright purchases of government
securities and bills discounted, and increases of $4,580,000 and $1,876,0C0 respec
tively in outright purchases of bankers acceptances and bankers acceptances held under
sales contracts,
The reduction of $10,000,000 in holdings of government securities at the
Federal Reserve Bank of New York represents the sale of the balance of $45,000,000
of government securities taken over from .two Now York City banks during the month of
December, 1950.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ «0«
Money
Market
Government
Security
Market
Slightly firmer conditions prevailed in the New York money
market during peri; of the past week* Immediately after the February 1 2
holiday an outflow of' funds to other districts and week-end currency
requirements caused the New York Gity banks to increase their Reserve
bank borrowings by an additional $42,000*000 in order to maintain their
reserve position*, This situation was reflected in the withdrawal of
funds which had for some weeks been offered outside the Exchange at
1 per cent, and on Monday and Tuesday call money was quoted at 1 1/E
per cent, both on the Exchange and in the outside market. Fairly large
sales of bills to the Reserve bank on Monday^the 16th, and return of
currency from circulation over the week-end allowed the Gity banks to
reduce their indebtedness again to a small figure, and on Wednesday,
the 18th, accompanying the continued return of currency from circula
tion, an inflow of funds from other centers occurred, with tho result
that call money once more became available at 1 per cent in the outside
market. Tho Treasury bill sale consummated on the 16th had no net ef.feet on this market since it was slightly more than offset by maturing
Treasury bills held by tho market and by security purchases made to re
place maturing Treasury bills held in the Reserve System’s portfolio.
Quotations for time money were unchanged in all respects dur
ing the week* Tho market was reported as continuing to show a lack of
demand for accommodation. The chief trading activity was in A and 7
months* loans which were placed at 2 1/2 per cent.
In the commercial paper market, sales of prime names at
2 1/2 per cent assumed a more important role than in tho previous
week. In fact, some dealors reported larger sales at that rate than
at 2 3/4 per cent, which is also quoted for prime material. Lack of
new acquisitions of paper continued to be the principal hindrance to
an active turnover since bank investment demand was reported as having
remained in good volume.
As a result of renewed discussions concerning the veterans*
adjusted service certificates during the current statement week, the
market for United States Government bonds, although not very active,
was weak up until the last day of the period and the average price of
these issues declined to 104*34 on February 17 as compared with the
high and low level for the year of 105.61 and 103.59 respectively. On
February 18, however, there was some improvement in the demand and, as
offerings in the market were very small, prices recovered from l/32nd
to 9/32nds, the average selling price at the close of the day being
104.45. The market for the short-term issues of government securities
was very quiet throughout the week with slight recessions in prices.
The average yield at dealers* offering prices at the close of the week
was approximately 1 1/8# as compared with 1# last week.
Dealers* Offering Prices at the Close of tho Current Statement Week
and Not Changes from the Glose of the Previous Statement tfeok
Not
Approx,
Ghange
Price
Yoild
Issue
0.98#
2 7/8# Cert, of Ind. duo June 15, 1931 100 19/32 -2/32
1.05)3
1 3/4#
"
n
**
” June 15, 1931 100 7/32 -1/32
1.09#
2 3/8#
"
"
"
" Sept. 15, 1931 100 25/32 -1/32
1.40#
1 7/8#
M
” "
*» Doc. 15, 1931 100 12/32 -1/32
3 1/2# Treasury Notes Series "A* and f,Bn
1.00#
called for payment Mar. 15, 1931 to yield 3■#
1.33#
3 1/2# Treasury Notes due Dec. 15, 1952 101 24/32
Treasury Bills duo May 4 and 5, 1931 1 1/4# discount
"
"
" May 18, 1931
1 1/4# - 1# discount
-
~
-
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £>»0« V2R5%*
5
Closing Pri s on the New York Stock Sxchan^, at tho Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Issue
1st 3 l/2s
1st 4 l/4s
4th 4 l/4s
Net
Change
-o/o2
-6/32
-3/32
Price
101 18/32
102 23/32
103 19/32
Bankers
Acceptances
Issue
Treas . 4s
w
4 1/4 s
fl
3 3/4s
N
3 3/8s
n
3 3/8s
1944-54
1947-52
1946-56
1943-47
1940-43
Price
107 9/32
111 8/32
105 8/32
102 4/32
101 25/32
Net
Change
-19/32
-18/32
-18/32
-18/32
-23/32
Dealers’offerings of unendorsed bankers acceptances were at
the following rates at the close of the current statement week:
1 3/8
^ per cent for 30s, 60s and 90s; 1 1/2 per cent for 120s and 1 5/8 per
cent for 180-day bills.
This represents an increase of 1/8 per cent
on all maturities over those of the previous week.
Reports
week
ending
Feb. 18
Boston reports that the lowering of rate by dealers in the
beginning of the reporting period had little effect in drawing new
bills.
The demand for bills having fallen off somewhat resulted in
dealers’portfolios increasing, with a subsequent stiffening of rates.
Ninety day bills continued to be in the best demand.
In New York
firmer money conditions this week resulted in a substantial increase
in the amount of bills offered to dealers which exceeded their sales
very considerably and their aggregate portfolios at tho end of the
week had increased by $48,000,000 to $ 38,000,000.
These conditions
resulted in dealers advancing rates by 1/8 per cent on February 14th
and this morning, February 19th, they made a further advanc3 of 1/8
per cent.
Hates now for unindorsed bills are 1 5/8 bid up to 90 days,
1 1/2 asked, 1 3 / 4 bid for 4 months, 1 5/8 asked, 1 7/8 bid for 5 and
6 months, 1 3 / 4 asked.
Indorsed bills 1/8 less.
that its acceptance market continued dull.
Philadelphia
reports
There was a fair amount of
new bills made during the week but offerings were very light.
The
demand was practically nil. -In Chicago dealers reported that there
was practically no demand for bills in that district with the supply
increasing.
Balias reports that the bill market in its district con
tinued dull with no demand.
negligible.
Offerings to the reserve bank were
MW...**!
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £*0«
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Sales of $2,000,000 - 4 1/4$ Treasury bonds of 1947-52, account Government
Life Insurance Fund
83,000
- 3 1/2$ Treasury notes due Dec. 15, 1932, account
________ German Special Deposit Account
$2,083,000 - Total Sales
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
Transactions effected in the System Account during the current state
ment week consisted of the redemption on February 16 of $25,607,000 maturing
Treasury bills, which were replaced by the purchase in the market of
$ 3,107,000 - 3 1/2$ Treasury notes called for payment March 15, 1931
22,000,000 - Treasury Bills due May 18, 1931
500,000 - 2 7/8$ certificates of indebtedness due June 15, 1931
$25,607,000
These transactions left the amount of total holdings in the Account unchanged at
$402,300,000.
The participations by Federal reserve banks and the classification
of issues held in the Account at the close of business Wednesday, February 18,
1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St# Louis
Minneapolis
Kansas City
Dalla s
San Francisco
Totals
$ 45,843,500
70,190,500
37,656,500
48,194,000
16,109,000
5,146,500
61,917,000
15,526,000
18,407,500
34,025,000
19,453,500
29,831,000
$402,300,000
RECAPITULATION OF HOLDINGS BY M A T ® ITIES
May
18, 1931 June 15, 1931 June 15, 1931 Sept. 15, 1931 Dec. 15, 1931 Mar* 15, 1931 Series "A" and
Dec. 15, 1932 Oct. 1 ^ 1938 -
Treas.
2 7/8&
1 3/4$
2 3/8$
1 7/8$
3 1/2$
«B w
3 1/2$
4 1/4$
Bills
C/I
w
"
"
T/N
T/N
4th L/L
$ 23,000,000
84,131,000
8,550,000
80,230 ,500
64,626,500
93,802,100
40,411,900
8,548,000
$402,300,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ «0 « VZBSfr
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF AIL FEDERAL RESERVE BANKS
____________
FROM FEBRUARY 12 TO FEBRUARY 18, 1931, INCLUSIVE_______________ __
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Purchases
$ 2,918,000
4,467,500
2,397,000
3,068,000
1,025,500
327,000
3,941,000
988,500
1,171,500
2,166,000
1,238,000
1,899,000
Sales
# 2,918,000
4,467,500
2,397,000
3,068,000
1,0 25,500
327,000
3,941,000
988,500
1,171,500
2,166,000
1,238,000
1,899,000
$25,607,000
$25,607,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
New York
Atlanta
Minneapolis
Purchases
§3,000,000
96,900
670,900
Totals
#3,767,800
Issue
Misc. Gov't Sec.
n
"
"
"
"
«
Sales
$13,000,000
78,700
636,000
Issue
Misc. Gov't Sec,
"
”
”
,r
"
"
$13,714,700
BANKERS ACCEPTANCES
(000 Omitted)
Other Holdings
By Allot Matur
Close Feb, 18/31
Holdings
Holdings
Purchased ment from ities &
Sales
Other
Feb. 11
Sales
Feb. 18
Own Mkt*
New York
Bills
Contracts
Boston
0
# 5,091
# 4,027
4 1,612
$ 727 # 2,162
$
548
New York
7,347 R.
16,343
0
0
21,862
9,482
1,828
13,557 A,
2,854
0
3
Phila*
6
0
0
3
0
Cleve,
6,065
1,995
2,912
0
2,637
5,423
0
Richmond
1,153
1,344
0
0
376
968
1,620
0
Atlanta
4,209
3,169
1,105
357 R.
422
3,891
3,289
8,367
Chicago
8,903
0
2,753
1§893
St. Louis
1,009
2,668
0
1,213
603
3,278
0
Minn*
0
1,346
777
0
101
663
2,022
Kan* City
0
1,209
3,393
1,256
0
836
3,440
Dallas
0
865
1,653
1 "
906
1,518
1,042
3,775
1,960
San Fran*
2,889
0
1,054
750
1,940
Totals
#13,557
#59,956
#3,370 #29,407
#51,806
#13,112
#21,262
1,262
Bills held overnight by New York for distribution to other F*R. Banks - - #30,669
Total
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 £>»0«
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING- FEBRUARY 18, 1931
(000 Omitted)
1-30 days
1 1 / 2 - 1 5/8$
31-60 days
1 1 / 3 - 1 5/8#
Over 90-days
1 5/8$
61-90 days
Total
New York
Atlanta
Dallas
$19,862
114
1
^1|042
151
0
0
50
0
0
42
0
$20,904
357
Totals
$19,977
$1,193
$50
042
$21v262
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING FEBRUARY 18, 1931
(000 0mitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
Totals
§29,375
13,715
26,607
$ 9,947-
Bankers
Acceptances
Total
$50,637
$21,262
12,715
0
39,719
13,112
$ 1,797| 8,150+
3,770- (Net Change
3,770- (Net Change
_______ 1-day holdover
1-day holdover
and other bills)
and other bills)
$ 5,567$ 4,380+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES FEBRUARY 18, 1931
(000 Omitted)
(Including Sales Contracts)
Gov!t Securities
Bills Purchased
Totals
Within
15-days
16-30
days
31-60
days
61-90
days
91 days
6 months
Over 6
months
0
24>352
$112,835
25,642
0
33,436
$22,000
10,215
$121,236
350
$343,602
0
,673
93,995
$24,352
$138,477
$33,436
$32,215
$121,586
$343,602
$693,668
Total
Reproduced from the Unclassified I Declassified Holdings of the National Archives
"
'
DECLASSIFIED
Authority £»0»
February 18, 1951
' 'r • !% tte s o n i
I
sooner*ledge receipt of and shall bring
to the attention of tho member# of the Board.your
letter of February 15th, addressed to Governor
Meyer0 enclosing report of open market opsratlono
for the period fro© February 5# 1931 to February
11, 1931 inclusive*
.'ery truly yours#
g. M. McClelland#
Assistant Secretary
;#r# ■.* '■!. ^ a ttsso n ^
A s s is t a n t d ep u ty 'lovern or*
Federal Reserve Bank,
lie® York, H. Y*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0« f f l S ?
/
!
/J
\': J
-
/
i
/
, i
V
.-m
\
f*
(pfuv '
'X* V
Fe d e r a l R e s e r v e B a n k
Try''
o f New Y o rk
COHFlDKI'ITlAIi
February 13, 1931
Dr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Dr, Goldenweiser?
Enclosed is a report of open market operations for
the period from February 5, 1931 to February 11, 1951 inclu
sive, together with data received from Federal reserve banks,
W. B. Matteson
Assistant deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £*Q«
FOR SPECIAL Ci^OUL-VTIOS
FLEA SISjUbAD i ..^MPTLY, INITIAL AKD F.BTUHK TO ..^RKIARY’
S Off ICE
/ Gov. Meyer
Mr. Hamlin ^
Mr.
sMr. Miller
^
- ".
Mr, P
F e d e ra l R e s e rv e B a n k
of
Ne w Yo r k
uJH i 1 DMT IAb
Feb ru ary 1 3 , 1951
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from February 5, 1951 to February 11, 1931 inclu
sive, together with data received from Federal reserve banks.
Assistant Deputy Governor
Honorable Eugene Meyer,
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 OPERATIONS FOR WEEK ENDED FEBRUARY 11, 1931
Holdings of Earning Assets of Federal Reserve Banks from February 11, 1950 to Date
(000 Omitted)
TOTAL
GOVERNMENT SECURITIES
BILLS
BANKERS ACCEPTANCES
EARNING
Outright
Outright
Sales
Sales
-1930ASSETS
Contracts
Purchases
DISCOUNTED
Contracts
Purchases
Feb* 11 #1,147,838
$ 63,879
$212,205
$381,914
$476,505
$ 2,055
Feb. 26
477,610
66,785
342,781
1,138,522
5,145
232,521
206,829
Mar. 26
526,284
112,710
1,001,090
2,715
143,772
Apr. 50
982,225
527,124
47,718
233,452
2,385
161,846
May
28
247,046
958,776
45,494
529,450
320
130,066
June 25
94,735
231,50 5
916,038
576,560
7,578
410
July 30
911,554
127,965
2,797
197,101
576,323
45
Aug. 27
193,275
4,137
159,137
~ 967,034
601,913
0
Sept. 24
167,162
601,656
5,583
150
192,161
973,483
Oct. 29
201,603
601,438
161,906
975,021
3,752
0
Nov. 26
233,852
59 5,634
1,011,940
169,930
6,176
0
251,398
D©c. 31
39,098
324,746
1,351,853
686,064
43,403
" -1931215,137
Jan. 28
945,405
1,788
609,877
118,453
0
222,917
Feb.
4
1,941
936,703
609,511
0
102,334
222,189
Feb. 11
86,245
1,494
919,548
609,620
0
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
DURING WEEK ENDED FEBRUARY 11, 1931
(000 Omitted)
GOVERNMENT SECURITIES
BANKERS ACCEPTANCES
BILLS DISCOUNTED
Net
Net
Balance
Balance
Net
Balance
Change
Feb. 11
Feb. 11
Change
Ghange
Feb. 11
$ 249$ 10,723
Boston
0
$ 4,027
$
903$ 46, 553
6,988+
51,461
New York
3,014193, 928
5,00016,343
23,978
3210
0
Philadelphia
50, 564
6
1,687+
25,725
58, 359
0
6,065
613Cleveland
1,4721,11918,453
Richmond
0
1 1344
17, 261
21,979
1,6583,169
1,505Atlanta
719
547.
3,79718,759
Chicago
2,02681, 844
8,903
0
8,920
1,0220
2,668
297St. Louis
24, 151
2593,946
537163+
1,346
Minneapolis
26, 303
2,49014,4-23
88Kansas City
34, 028
3,393
5,000+
49+
6,113
29, 437
Dallas
0
1,653
1,00817,709
1,816+
2,889
2,664San Francisco
39, 473
0
N. Y. holdovers
2,31534,439
and other bills
Totals
$609, 620
$ 109+
$86,245
$16,089-
$222,189
$
728-
COMMENT ON CHANGES WEEK ENDED FEBRUARY 11, 1951
Total earning assets of the System showed a decrease of $17,155,000 for
the current statement week. The changes by classification consisted of decreases
of $16,089,000, $447,000 and $728,000 respectively in outright purchases of bankers
acceptances, bankers acceptances held under sales contracts and bills discounted,
and an increase of $109,000 in outright purchases of government securities#
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0« V2RS$*
Money
Market
During the past week the reserves of the New York m/*ney mar
ket banks were maintained in amounts close to requirements, and in
fact the banks had to borrow a small amount at the Federal Reserve in
order to balance their position. For the period as a whole, the mar
ket was the net gainer in check settlements and wire transfers, but an
increase in currency circulation, incident to the holiday, withdrawal
of government funds from depositaries, and a continued retirement of
Reserve bank bill holdings offset this gain, and it was only by the
increased borrowings that the City banks raised their actual reserves
from the position of small deficit that existed at the beginning of
the week. Reflecting the absorption of the excess bank reserves
which were in evidence in January, off erings of funds in the call money
mark&tduring the past week were somewhat smaller than in immediately
preceding weeks. This was particularly noticeable in the amount of
funds offered at 1 per cent outside the Exchange* The actual trading
rates, however, remained at 1 1/2 per cent on the Exchange and 1 per
cent in the outside market. Demand for accemmodation has continued
to be of extremely limited proportions.
As in the call money market, the demand for time loans has
Continued to be light. Quotations were little changed during the
week; 60 day money was reduced 1/4 per cent to 1 1/4 per oent bid,
1 1 / 2 per cent offered, and the spread between bid and asked prices
for 4 months’money was increased to 1/2 per cent by a decline of
1/4- per cent in the bid rate* Limited amounts of loans for 60 days,
5 months and 7 months were placed at 1 1/2, 2 1/4, and 2 1/2 per cent
respectively.
New drawings of prime commercial paper continue to come in
to the open market only in limited amounts and the investment deiiBnd
quickly absorbs the supply of attractive names* Rates of 2 1/2 2 3/4 per cent prevail for prime names.
Government
Security
Market
The recovery in the long-tei'm government bond market con
tinued up until the last day of the statement week when a slight weak
ness made an appearance. However, the volume of trading during the
latter part of the statement week was not large and closing prices for
the week showed fractional gains of from 8/32nds to 28/32nds. The
average selling price at the close of the week was 104.88 as compared
with 104.35 at the close of thu previous week.
The demand for short-tem governmunt securities continued
good throughout the week, although with diminishing activity, and
prices advanced to slightly higher levels, the average yield at
dealers* offering prices at the close of the reporting period being
about 1 per cent as compared with 1.10 per cent last week*
Dealers’Offering Prices st the Close of th>j Current Statement Week
and Nut Changes from the Close of the Previous Statement Week
Net
Approx.
Issue
Price
Change
Yield
0.8 5$
2 7/8$ Cert, of Ind. due June 15, 1931 100 21/52
0,97$
1 3/4%
"
” ”
" June 15, 1931 100 8/32 +1/32
1,06$
2 3/8$
"
” t!
« Sept, 15, 1931 100 24/32 +1/32
1.57$
1 7/8$
"
♦' ”
" Dec. 15, 1931 100 13/32 +1/32
3 1/2$ Treasury Notes Series WAW and "B”
0*55$
called for payment Mar* 15, 1931 100 7/32 +2/32
, 1*36$
3 1/2$ Treasury Np^es due Dec. 15, 1932 101 24/32 - - Treasury Bills f? Feb* 16, 1931 1 1/4$ - 3/4 of 1$ discount
"
11
M May 4 and May 5, 1931 not quoted in the
market
-
-
_
tp.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0* VSRSfr
3 .
Closing Prices on the New Yotk Stock Exchange at the Close
of the Current Statement Wee,fc and Net Changes from
Close of the Previous Statement Week
'Net
"lL’
1''"*r r~1iurr-"
*
Net
Issue
Price
Change
Issue
price
Change
1st 3 1/2s 10i 24/32 + 1 ^ 3 2 Treas* 4s
1944-54 107 28/32 +^0/^32
1st 4 1/4s 102 29/32 +10/32
’
»
4 l/4s 1947-52 1 1 V 26/32- +20/32
4th 4 1/4s 103 22/32 + 8/32
M
3 3/4s 1946-56 105 26/32 +28/32
M
3 3/8s 1943-47 10,2 22/32 +21/32
*»
3 3/8s 1940-43 102 16/32 +16/32
Bankers
Acceptances
Dealers* offerings of unendorsed bankers acceptances were
at the following rates during the current statement week: 1 1/4 per
cent for 30s, 60s and 90s; 1 3/8 per cent for 120s and 1 1/2 per
cent for 180-day bills,
This represents a reduction of 1/8 per cent
on all maturities from the previous week’
s rates*
Reports
week
ending
Feb. 11
Boston reports that the lowering of the dealers’hid rates
in its district had no noticeable effect on the supply of bills which
was small during this period*
The local demand continued only fair
with 90-day bills moving best*
There were no offerings to the re
serve bank for the past two weeks.
In Raw York the reduction in
rates effected by the dealers in the early part of the week resulted
in a fairly good supply of bills to the market*
The demand, however,
kept pace with the supply as a result of which dealers’portfolios
showed only a moderate increase.
The offerings for System Account
were negligible, our purchases being confined to investments for
foreign correspondents*
market was quiet*
Philadelphia reports that its acceptance
The lowering of rates had little effect in its
district, the supply of new bills being very light.
slackened, portfolios being a trifle higher.
its bill market was vory dull.
in several months.
The demand
Chicago reports that
Dealers’portfolios were the smallest
Dallas reports that its bill market continued
dull witn small demand.
Offerings to the reserve bank were negligible
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0«
OPERATIONS FOR ACCOUNT OF UNITED .STATES TREASURY
Transactions consummated under Treasury authorization during tho
current statement week were as follows:
Sales of $5,000,000 - 4 1/4% Treasury bonds of 1947-52, account
Government Life'Insurance Fund
25,000 - 5 l/2)o Treasury notes due December 15, 1932,
account alien Property Custodian
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
"At thu request of the Federal Reserve Bank of Kansas City a sale was
made to that bank during the current statement week of $5,000>000 governments
.from the Federal Reserve Bank of N e w York’
s participation- in the System Account.
There was no other transaction
in the Account, the total holdings remaining un
changed at the close of business Wednesday, February 11, -1931 at §402,300,000.
The participations by Federal reserve banks and tho 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
# 45,843,500
70,190,500
37,656,500
48,194,000
16,109,000
5,146,500
61,917,000
15,526,000
18,407,500
34,025,000
19,453,500
29,831,000
^402,300,000
R-CAPITULATION OF HOLDINGS BY MATURITIES
Feb* 16,
June 15,
June 15,
Sept. 15,
Dec. 15,
Mar. 15,
Sories
Dec. 15,
Oct. 15,
1931 - Trkas.Bills
|> 25,607,000
1931 - 2 7/ Bfo C/I
83,631/000
8,550,000
1931 - 1 3/4^
80,230,500
1931 - 2 3/8‘
<jo v
64,626,500
1931 - 1 7/8 fc
1931 - 3 1/Zfo T/N
90,695,100
"A,f and "Bn
40,411,900
1932 - 3 1/2# T/N
8,548,000
1938 - 4 1/4f 4th I/I
s
$402,300,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q«
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
FROM FEBRUARY 5 TO FEBRUARY 11, 1931, INCLUSIVE
_________ ______
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Sale
Purchase
# 0
#
0
Boston
0
5,000,000
New York
0
0
Philadelphia
Cleveland
0
0
Richmond
0
0
0
0
Atlanta
Chicago
0
0
St. Louis
0
0
Minneapolis
0
0
Kansas City
5,000,000
0
Dallas
0
0
San Francisco
0
0
$5,000,000
$5,000,000
Totals
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
New York
Atlanta
Minneapolia
Totals
Purchases
Issue
$5,500,000 Misc. Gov't Sec.
121,850
*
*
"
958,500
”
"
"
$6,560,350
Sales
Issue
>,500,000 Misc. Gov’
t Sec.
176,900
»
»•
»
775,550
"
"
”
i,452,450
BANKERS ACCEPTANCES
(000 Omitted)
By Allot- MaturHoldings Purchased ment from ities &
Feb. 4
Own Mkt, New York
Sales
$ 4,930
Boston
$ 216
f 1,119
# o
New York
19,357
4,034
1,020 R.
0
1,874 A*
Phila*
6
0
0
0
Cleve.
6,678
0
300
913
Richmond
2,463
60 R*
1,179
0
Atlanta
4,674
147
80 tt
1,732
Chicago
10,929
28 tt
402
2,456
St. Louis
2,965
0
156
453
Minn*
1,883
0
100
637
Kan. City 3,481
167
0
255
Dallas
2,661
7 n
118
1,133
San Fran.
5,553
12 tt
268
2,944
Totals #65,580
$3,081
$1,874
$16,855
Bills held over night by New York, for distribution
NOTE:
Holdings
Feb. 11
$ 4,027
16,343
Other Holdings
Close Feb. 11, 1951
Sales
Other
Bills
Contracts
$ 2,527
$1,022
11,188
0
6
0
3,535
6,065
3,403
0
1,344
1,348
0
3,169
0
1,633
8,903
472
4,548
2,668
0
1,179
1,346
0
775
3,393
977
0
1,653
0
1,010
2,889
0
2,291
$51,806
$1,494
$34,214
to other F. R. Banks
225
Total - - ............ $34,439
R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0*
'4
MATURITIES AND HATES ON BILLS PURCHASED WEEK ENDING- FEBRUARY 11, 1951
—
^q q q Omitted)
1-30 days
1 1/8%
31-60 days
1 1Jz1o
New York
Richmond
Atlanta
Chicago
Dallas
San Francisco
$2,760
0
63
28
0
0
§134
60*
17
0
7
Totals
$2,851
#227
a*
Over 90-days
61-90 days
1 3/4 #
Total
0
0
0
0
0
3
$2,894
60
80
28
7
____ 12
$3
$3,081
Purchased at 1 3/4%
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
and bankers acceptances during week ending February ii, 1931
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
$11,561
11,452
0
_______
Totals
$
109+
Bankers
Acceptances
Total
$ 3,081
0
16,855
$13,7742,315- (Net Change
_______ 1-day holdover
and other bills)
-^16,089-
$14,642
11,452
16,855
$13,6652,315- (Net Change
________ 1-day holdover
and other bills)
$15,980*
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES FEBRUARY 11, 1931
(000 Omitted)
(Including Sales Contracts)
Govft Securities
Bills Purchased
Totals
Within
15-days
16-30
days
31-60
days
61-90
days
91 days
6 months
Over 6
months
$26,607
22,097
0
15,686
$108,740
35,734
0
13,866
$120,7 36
356
$353,537
0
$609,620
87,739
$48,704
$15,686
$144,474
$13*866
$121,092
$353,537
$697,359
Total
Reproduced from the Unclassified I Declassified Holdings of the National Archives
“
t*
-
DECLASSIFIED
Authority £»Q«
February 7, 1S31
Dear Mr* '!atteson:
1
acknowledge receipt of and shall bring to
tho attention of tho members of the Federal Reserve
Board your letter of Jbbruary 6th, addressed to
Governor oyer* enclosing a report of open market
operations for the period fro® January 29# 1951
to February i f 1931 inclusive#
'/ery truly yours9
Em M. McClellandf
Assistant Secretary
!fir#
B* ;£atteson#
Assistant Deputy Governor#
Federal Reserve Bank,
lew York, 1. Y.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
n r
E»Q«
-
tttr1 \ .s' o ' •
%
^'L.
.
/
Fe d e r a l R e s e r v e B a n k
ft) .JtA'
(V . tiJ
li
of
sv
%
Kl
v
c.A
N e w Yo r k
CONFIDENTIAL-
*^
February 6, 1931
Dr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweiser:
Enclosed is a report of open market operations
for the period from January 29, 1951 to February 4, 1931
inclusive, together with data received from Federal re
serve banks.
J^\
/
17 fd u r s/7 ^
Ti. B. Matte son
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q«
FOR SPECIAL CIRCULATION
iii'Ai; , a OMFTLY. INITIAL AND KSTL
iu ,3&y«i£TARYsS OFFICE
Gov# Meyer
Mr. Hamlin V /
Mr . J a n a s
I v
_ Mr. Mills
MilieiL \
~
..
Mr. Pole
F e d e ra l
of
-B a n k
Ne w Yo r k
CONFIDENTIAL
February 6, 1931
Dear Governor Meyer:
tinclosed is a report of open market operations
for the period from January 29, 1931 to February 4, 1931
inclusive, together with data received from Federal re
serve banks.
/
/
rours,
»». -b. Matte son
Assistant Deputy Governor
Honorable Kugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
6 u ..
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
CONPIEBNTIAL
REPORT OF OPEN' MARKET OPERATIONS FOR WEEK SNEED FEBRUARY 4, 1931
Holdings of Earning Assets of Federal Reserye Banks from February 5, 1950 to Date
(000 Omitted)
-1930Feb.
5
Feb. 26
Mar. 26
Apr. 30
May 28
June 25
July 30
Aug. 27
Sept. 24
Oct*, 29
Nov. 26
Dec. 31
-1931Tan. 28
Feb.
4
TOTAL
EARNING
ASSETS
$1,167,237
1,138,522
1,001,090
982,225
958,776
~ 916,038
911,554
967,034
973,483
975,021
1,011,940
1,351,853
GOVERNMENT SECURITIES
Sales
Outright
Contracts
Purchases
$ 1,170
$476,674
477,610
5,145
2,715
526,284
2,385
527,124
320
529,450
410
576,560
45
576,323
601,913
0
150
601,656
601,438
0
595,634
0
43,403
686,064
945,405
936,703
609,877
609,511
BANKERS ACCEPTANCES
Sales
Outright
Contracts
Purchases
$ 81,716
$214,075
66,785
232,521
112,710
143,772
47,718
161,846
130,066
45,494
7,578
94,735
2,797
127,965
4,137
159,137
192,161
5,583
161,906
3,752
6,176
169,930
39,098
324,746
118,453
102,334
0
0
1,788
1,941
BILLS
DISCOUNTED
$381,422
342,781
206,829
233,452
247,046
231,505
197,101 ‘
193,275
167,162
201,603
233,852
251,398
215,137
222,917
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
DURING WEEK ENDED FEBRUARY 4, 1931
(000 Omitted)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other billg
Totals
GOVERNMENT SECURITIES
Balance
Net
Feb. 4
Change
$ 46,553
$ o
198,928
0
50,564
0
0
58,359
17,261
0
687,773
81,844
0
24,151
0
26,140
2980
29,028
29,437
0
39,473
0
$609,511
$366-
BANKERS ACCEPTANCES
Net
Balance
Change
Feb. 4
$ 4,930
$ 1,0822,62219,357
6
0
6,678
3,04956+
2 >463
1,4254,674
2,15710,929
7152,965
4041,883
3,481
9842,661
8295,553
3,03236,754
124+
$102,334
$16,119-
BILLS DISCOUNTED
Balance
Net
Feb. 4
Change
$ 10,972
$ 421+
1,879+
44,473
22224,299
24,038
1,393+
19,925
1,211+
23,637
1,3281,08422,556
9,942
8604,205
189+
16,913
1,899+
6,064
361+
15,893
3,921+
$222,917
$7,780+
COMMENT ON CHANGES WEEK ENDED FEBRUARY 4, 1931
Total earning assets of the System showed a decrease of $8,702,000 for the
current statement week. The changes by classification consisted of decreases of
$366,000 and $16,119,000 respectively, in outright purchases of government securi
ties and bankers acceptances, and increases of $7,780,000 in bills discounted and
$153,000 in investments held under sales contract. The latter item consisted of
bankers acceptances.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0«
2
Money
Market
The sizable excess of reserves held by New York City banks at
the beginning of the week was absorbed by drains on the money market
that occurred during the six day period ended February 4, and at the
close of business that day a deficit of $9,000,000 existed in actual re
serves, the first time since December 24 that reserve balances have been
below requirements.
The reduction in bank reserves in New York City
was chiefly the result of the sale of $60,000,000 of Treasury bills
which temporarily raised the Treasury balance at the Reserve Banks to a
somewhat higher than usual figure, but an increase in currency circula
tion through month-end requirements and an outflow of funds to other
centers and a decline in Federal Reserve bill holdings also contributed
tp the development of this situation.
Money rates in the New York market were little affected by the
turn of the month transactions and disappearance of the excess of New
York City bank reserves. Call rates held throughout at 1 1/2 per cent
on the Exchange and 1 per cent in the outside market. The rate for
Federal funds, however, tended slightly higher on two days, going to
1/2 - 3/4 per cent frcrn the 1/4 per cent quotation which had prevailed
since the first part of January. The time money market was virtually
unchanged except for minor adjustments in rates. Interest on the whole
was not active, the principal trading being in 6 and 7 months1 loans
which were placed in fair volume at 2 1/2 per cent. Ninety day money
continued to be quoted at 1 3/4 per cent bid, 2 per cent asked.
Investment demand for prime commercial paper was well in ex
cess of the limited supply of new paper that became available.
The
prevailing rate quotation for prime material declined slightly further
to a range of 2 1/2 - 2 3/4 per cent.
Government
Security
Market
The market for United States Government securities was very
active during the current statement week*
During the forepart of the
period the long-term issues continued very weak, the market was dis
organized, and prices declined sharply until Monday, February 2 on which
day the average selling price for these issues was 103.59 representing
a loss of more than two full points from the high average price for the
year of 105*61 which was reached on January 24, 1931.
On the last two
days of the period, however, there was some improvement in the market
for those bonds and prices recovered almost half of the losses recorded
since January 24, the average selling price on Wednesday, February 4,
1931, being 104,35.
The demand for the short-term issues continued good
throughout the weok and prices were firm, the average yield, at dealers’
offering prices at the close of the statement week being about 1*10$ as
compared with 1.17$ during the two preceding weeks.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
'■*
■" '
Authority £»Q«
Dealers’Offering Prices at the Close of the Current statement Week
and Net Ghanges from the Close of the Previous Statement Week
Net
Approx.
Issue
Price
Change
Yield
2 7/8% Cert.* of Ind. due June 15, 1951 100 21/32 - - 1.01%
1 3/4%
"
"
,r
" June 15, 1931 100 7/32 ----1.12#
2 3/8#
"
"
"
" Sept. 15, 1931 100 23/32 ----1.17#
1 7/8%
"
” ”
" Dec. 15, 1931 100 12/32 +2/32
1.43%
3 1/2$ Treasury Notes Series ^A™ and ”
BM
called for payment Mar. 15r 1931 100 9/32 -1/32
0.73%
3 1/2% Treasury Notes due Dec. 15, 1932 101 24/32 - - 1.42%
Treasury Bills due Feb. 16, 1931
1 3/4 - 3/4 of 1% discount
"
”
" May 4 and May 5, 1931 not quoted in the maitect
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
_________ Close of the Previous Statement Week_____ . .,
Net
Net
Issue
Price
Change
Issue
Price
Change
1st 3 1/2s 101 11/32 -15/32 Treas.4s
1944-54 107 87^2 -1^-8/32
1st 4 1/4s 102 19/32 -11/32
"
4 l/4s 1947-52 111 6/32 - 30/32
4th 4 1/4s 10 3 14/32 - 7/32
” 3 3/4s 1946-56 104 30/32 -1. 6/32
n
3 3/8s 1943-47 102 1/32 - 23/32
"
3 3/8s 1940-43 102
S/32
Bankers
Acceptances
Dealers* offerings of unendorsed bankers acceptances con
tinued at the following rates during the current statement week:
1 3/8 per cent for 30s,-60s and 90s, 1 1/2 per cent for 120s and
1 5/8 per cent for 180-day bills.
Reports
week
ending
Feb. 4
Boston reports that the supply of bills decreased during
the past week with the demand only fair. Shipments of 90-day bills
were made to dealers’offices in other cities.* There were no offer
ings to the Reserve bank during the period.- In New York, following
the increase of 1/8 per cent made by the bill dealers on the 29th of
January, a good investment demand developed for bills which exceeded
the supply of new bills considerably and aggregate portfolios were
reduced to approximately $30,000,000. On February 4 dealers finding
they were unable to meet the demand, reduced their rates 1/8 per cent
to the low level they had been for a few days prior to the 29th of
January.' Philadelphia reports its acceptance market was less active
than the previous week* there being only a few odd lots of bills
offered with the demand fair.' Portfolios were slightly lower.- Chicago
reports that the bill market in its district.was very quiet during
most of the week with the supply very small.- The demand was good for
the best names.- Dallas reports that its bill market continued dull
during the past week with the demand small. Offerings to the Reserve
bank were negligible.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»0*
4
OPERATIONS FO^ ACCOUNT OF UNITED STATES TREASORY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Sales of $4,000,000 par amount 4 1/4$ Treasury bonds of 1947-52, account
Government Life Insurance Fund300,000 "
” 3 1/2$ Treasury notes due December 15, 1932
•>.
account Alien Property Custodian
$4,300,000 - Total Sales
SYSTEM SPECIAL D-TVSSTTvMT ACCOUNT - GOVERNMENT SECURITIES
There were no transactions consummated in the System Account during the
current statement week, the amount of total holdings remaining at $402,300,000.
The participations by Federal reserve banks'and the classification of issues at the
close of business Wednesday, February 4, 1931, were as follows;
PARTICIPATION BY FEDERAL RESERVE BAIJK5
RECAPITULATION OF HOLDINGS BY MATURITIES
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$ 45,843,500
75,190,500
37,656,500
48,194,000
16,109,000
5,146,500
61,917,000
15,526,000
18,407,500
29,025,000
19,453,500
29,831,000
Feb. 16, 1931-Treasury Bills $ 25,607,000
June 15, 1931-2 7/8$ C/I
83,631,000
June 15, 1931-1 3/4$ ’
♦
8,550,000
Sept. 15, 1931-2 3/8f0 "
80,230,500
Dec. 15, 1931-1 7/8 $ "
64,626,500
Mar. 15, 1931-3
T/TT
Series "A" and WBM
90,695,100
Dec. 15, 1932-3 1/2$ T/N
40,411,900
Oct. 15, 1938-4 1/4$ 4th L/L
8*548,000
Totals
$402,300,000
§402,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
5
ITEMISED STATEMi^NT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACOEPTiNCES
AFFECTING- THa INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_________________FROM JANUARY 29 TO FEBRUARY 4, 1951, INCLUSIVE______________________
TRANSACTIONS IN GOVERNMENT SECURITIES
Purchases
New York
... $ 6,000,000
Atlanta
229,500
Minneapolis
1,017,500
Totals
Issue
Sales
Issue
Misc. Gov’
t Sec*
"
"
"
"
"
”
$6,000,000
297,600
1,315,200
Misc. ^ov*t sec.
$ 7,247,000
??
tt
tt
«
M
♦'
$7,612,800
BANKERS ACCEPTANCES
(000 Omitted)
Boston
New York
Phila.
Gleve*
Richmond
Atlanta
Chicago
St. Louis
Minn*
Kan* City
Dallas
San Fran,
Totals
NOTE:
Holdings
Jan*28
Purchased
Own Mkt*
4 6,012
21,979
6
9,727
2,407
6,099
13,086
3,680
2,287
4,465
3,490
8,585
0
1,036
2,222
0
0
290
37
120
0
0
0
16
0
$81,825
£23,721
By Allotment from
New York
katurities &
Sales
Holdings
Feb, 4
227
0
| 1,309
3,658
$ 4,930
19,357
0
329
177
164
423
197
101
193
125
286
0
3 :378
411
1,626
2,700
912
505
1,177
970
5,318
£2,222
$19,964
$
R*
A.
R*
”
fT
"
Other Holdings
Close Feb. 4/51
Other
Sales
Bills
Contracts
388
0
| 2,709
12,194
6
6,678
2,463
4,674
10,929
2,965
1,883
3,481
2,661
5,553
0
0
0
0
1,553
0
0
0
0
0
3,576
3,648
1 ,4~iO
1,624
4,876
1,264
831
1,047
1,084
2,456
$6 5,580
$1,941
$36,754
$
R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
1
DECLASSIFIED
Authority £»0«
■*
6
/
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING FEBRUARY 4, 1931
(000 Omitted)
1-50 days
1 1/2%
31”60 days
1 1/ 2$
61-90 days
1 3/4$
$890
40*
0
0
0
$2,368
129*
0
120
16
0
121*
37
0
0
$950
$2,633
New York
Richmond
Atlanta
Chicago
Dallas
Totals
Over 90-days
-
$158
Total
0
0
C
0
0
$3,258
290
57
120
16
0
$3,721
^Purchased at 1 5/8#
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING FEBRUARY 4, 1951
(000 Omitted)
(excluding Seles Contracts)
Government
Securit ies
Purchased
Sold
Matured
Totals
Bankers
Acceptances
#7,247
7,613
0
$
366-
Total
$ 3,721
0
IS,964
^16, 243124+ (Net Change
1-day holdover
and other bills)
$16,119—
$10,968
7,615
19,964
$16,609124+
1-day holdover
and other bills)
§16,485,r
rT___ _
-
HOLDINGS OF GOVERNMENT 3ECUPITL-,3 AND BANKERS ACCEPTANCES FEBRUARY 4, 1951
* TOOO Omitted)
(Including Sales Contracts)
Gov’
t Securities
Bills purchased
Totals
within
15-days
16-30
days
$25,607
52,460
0
13,314
$58,067
$13,314
61-90
days
91 davs6 months
Over 6
months
To tal
$108,809
55,740
0
23,831
$120,736
950
$354,559
0
$609,511
104,275
$142,549
$23,831
$121,666
$354,559
$713,786
31-60
days
Reproduced from the Unclassified I Declassified Holdings of the National Archives
^
7*
DECLASSIFIED
- ' /
Authority £»Q«
February Z$ 19S1
Bear Mr* latteeotu
1
aoknowledge reoelpt of and shall bring
to the attention of the m x&or* of the Federal He»@rre Board your letter ©f January SOth# addreaped
to Governor Heyer* enelosing report o f o p e n market
operation® for the period from January 22# 1932. to
January 28* 1951 iaoluaire#
Tory truly youra*
S. H* IfeClollnnd,
Aaeiatant Secretary
Kr# 1« B« Katteson, Aaaietanfc Deputy Governor*
Federal 'Heaerve Bank,
Hew Xoric, S. Y.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
E»0«
y
.
4v /
J /|v
.
lit
! / 1§UV
..
„* '
\Jr*
'Wtt
Fe d e r a l R e s e r v e B a n k
of
0QNP1DEMTIAL
Ne w Yo r k
%
January 50, 1931
Dr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweiser:
Enclosed is a report of open market operations for
the period from Januaiy 22, 1931 to January 28, 1951 inclusive,
a . B. Matteson
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E>»0« \ 3 flS y
ITOR SPECIAL ClKCULA.TXON
ir'LKASi; R::a’ 'iOMPTLY, INITIAL AUD RETURN
^G°y* Meyer
Mr, Hamlin I X
Mr. James
,y2fir* Miller
Mr- Fo
F e d e ra l R e s e rv e B a n k
of
Ne w Yo r k
COHFIiMdTlAL
•
January 30, 1931
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from January 22, 1931 to January 28, 1931 inclusive,
together with data received from Federal reserve banks.
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
|
j
RECEIVED”
"2
1931
O F F I O 02
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED JANUARY 28, 1951
Holdings of Earning Assets of Federal Reserve Banks from January 29, 1950 to Date
(000 Omitted)
-1930Jan* 29
Feb* 25
Mar* 26
Apr* 30
May
28
June 25
July 50
Aug. 27
Sept. 24
Oct, 29
Nov* 26
Dec. 51
-1951_Jan* 21
Jan. 28
TOTAL
EARNING
ASSETS
*1 ,154,379
1 ,138,522
1 ,001,090
982,225
958,776
916,038
911,554
967,054
- 975,483
975,021
1 ,011,940
1 ,351,853
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
$476,466
$
70
477,610
5,145
526,284
2,715
527,124
2,385
529,450
320
576,560
410
45
576,323
0
601,915
150
601,656
601,458
0
595,654
0
686,064
45,405
1 ,006,751
945,405
624,591
609,877
t
0
0
BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
$72,795
$185,677
66,785
232,521
112,710
143,772
47,718
161,846
45,494
130,066
7,578
94,735
127,965
2,797
159,137
4,137
192,161
5,583
161,906
3,752
169,930
6,176
39,098
324,746
150,568
118,453
BILLS
DISCOUNTED
$406,941
342,781
206,829
233,452
247,046
231,505
197,101
193,275
167,162
201,603
233,852
251,398
239,885
215,137
1,057
1,788
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
____________ DURING WEEK ENDED JANUARY 28, 1951_________________
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
Change
Jan. 28
46} 5 g'3 $
20+
15,000198,928
50,564
0
58,359
0
0
17,261
125+
7,841
0
81,844
24,151
0
141+
26,438
29,028
0
0
29,457
0
59,473
Be 3ton
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y, holdovers
and other bills
Totals
$609,877
$14,714-
BANKERS ACCEPTANCES
Balance
Net
Jan. 28
Change
$ 2,661<&B> 6,012
21,979
4,5046
0
3,5789,727
2,407
2,5936,099
1,41613,086
9,6563,680
1,0092,3902,287
1,4124,465
6653,490
2,5398,585
36,630
88+
$118,453
$32,115-
BILLS DISCOUNTED
Balance
Net
Jan* 28
Change
$
384$ 10,551
42,594
1731,25124,521
5,94422,645
2,87518,714
24,965
3,000+
913+
23,640
40510,802
1694,016
15,014
1,082157+
5,703
6,555—
11,972
$215,137
$14,748-
COMMENT ON CHANGES WEEK ENDED JANUARY 28, 1951
Total earning assets of the System showed a decrease of $61,346*000 for
the current statement week. The changes by classification consisted of decreases
of $14,714,000 and -$52,115,000 respectively, in outright purchases of government
securities and bankers acceptances and $14,748,000 in bills discounted, and an in
crease of $731,000 in investments held under sales contracts* The changes in the
latter item consisted of bankers acceptances only.
The reduction of $15,000,000 in holdings of government securities at the
Federal Reserve Bank of New York represents further sales of part of the $45,000,000
of government securities taken over from two New York City banks last month. The
total amount of such sales to date is $55,000,000.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
S
Money
Market
No material change occurred during the past week either in
the favorable position of bank reserves or in the level of money
rates. At the opening of the period under review, the banks had sur
plus reserves amounting to nearly #70,000,000, continuing the condi
tion of surplus that had been prevalent throughout much of the month.
Gains to the money market through a continued inflow of funds from
other parts of the country and a further reduction in currency circu
lation were largely absorbed by a further contraction in the amount of
Reserve Bank credit in use in this market, part of which resulted from
an excess of bill maturities over purchases and part from sales of
government securities from the New York Reserve Bank’
s own investment
portfolio. Consequently, the large New York City banks at the close
"of the week were in approximately the same reserve position as at the
opening.
Call money held at 1 1/2 per cent on the Exchange and at 1
per cent in the outside market, and Federal funds were unchanged at
1/4 per cent throughout the week. The amount of call loans actually
placed remained extremely small and difficulty was experienced in mov
ing Federal funds at 1/4 per cent. Likewise, the time money market
was very quiet at unchanged quotations.
Commercial paper dealers report that the supply of new paper
currently entering the open market is quite limited, and sales conse
quently are small* The 'creation of new paper in January, while show
ing some increase over December, was far below the usual amourt at this
time of year* On the other hand, a good demand for paper exists and
early in the present week the rate for the average run of prime names
became 2 3/4 per cent, compared with a range of 2 3/4 - 3 per cent a
week ago. Moreover, some unusually high grade material was sold at
2 1/4 and at 2 1/2 per cent during the week*
Governin' nt
Security
Market
During the early part of the current statement week the de
mand for United ^tates Government securities continued very good and
prices of both the short and long-term issues advanced to levels slight
ly higher than at the close of the preceding week. During the latter
•"art of the week, however, as a result of the hearing in Washington of
the Senate Finance Gomnittee on the proposed bond issue to provide for
the immediate payment to World War Veterans of the face value of their
adjusted compensation certificates, the market for the long-term
issues was very weak, due to a large amount of liquidation principally
by banks, and prices declined substantially. At the close of the re
porting period prices of the short-term issues were firm, the average
yield, at dealers’offering prices, being approximately the sane as
last week, namely,- 1*17$, while prices of the long-term issues showed
losses for the week ranging from 10/32nds to l.l/32nd, with an average
selling price of 105*07 as compared with 105*58 last week and 105.61
during the early part of the present week.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0»
2
1
2
1
3
7/8#
3/4#
3/8#
7/8#
1/2%
3 1/2%
Dealers* Offering Prices at the Clo se of the Current Statement Week
_____ and Net Changes from Close of the Previous Statement Week
Approx.
Yield
Change
Price
Issue
-2/32
1.10$
100 21/32
Cert, of Ind. due June 15, 1931
«
» t»
» june 15, 1931
-1/32
1.15#
100 7/32
+1/32
1.20#
100 23/32
fr
" "
" Sept. 15, 1931
1.51#
+1/32
100 10/32
”
" "
" Dec. 15, 1931
Treasury Notes, Series "A" and "B"
0.91#
-2/32
100 10/32
called for payment Mar. 15, 1931
1.47#
-1/32
1932
101
24/32
Treasury Notes due Dec. 15,
1
1/4$
3/4
of
1%
discount
Treasury Bills ” Feb. 16, 1931
Closing Sale or Bid Prices on New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Price
Issue
Change
Issue
Price
108 16/32
1944-54
-1st 3 l/2s
Treas. 4s
101 26/32
-10732
«
112 4/32
1st 4 l/4s
4 l/4s 1947-52
102 30/32
-10/32
t»
106 4/32(B)
3 3/4s 1946-56
4th 4 l/4s
-11/32
103 21/32
1C2 24/32
3 3/8 s 1943-47
102 9/32
3 3/8s 1940-43
(3) indicates bid price,
Net
Change
- 17/32
-1. 1/32
- 29/32
- 11/32
- 18/32
Bankers
Dealers’offerings of unindorsed bankers acceptances were at
Acceptances the following rates at the close of the current statement week:
1 3/8 per cent for 30*s, oO’
s and 90’
s; 1 1/2 per cent for 120’
s;
and 1 5/8 per cent for 180-day bills.
This represents a reduction of
1/8 per cent on all maturities from the previous week’
s offering rates.
Reports
f or Week
Ending
Tin. 28
Boston reports that the demand in its market was very poor,
The supply was somewhat greater than during the preceding v^eek and, as
heretofore* dealers forwarded most of thsir bills to their offices in
other cities. In New York the good investment demand continued for
bills with few being offered to dealers and on the twenty-second of the
month dealers made a further reduction in rates of 1/8 per cent.
This
reduction in rates resulted in a slight increase in the supply and
dealers’aggregate portfolios at the end of the week had increased by
about 17 millions to 43 millions. As a result of the changed market
conditions in Governments during the last few days, thereby causing
higher yields, bill dealers on January 29 advanced rates on bills by
1/8 per cent to 1 5/8 bid up to 90 days, 1 1/2 asked; 1 3/4 bid for
4 months, 1 5/8 asked; 1 7/8 bid for 5 and 6 months, 1 3/4 asked.
Indorsed bills 1/8 less.
Philadelphia reports that its acceptance
market was a little more active, there being some increase in the
amount of new bills offered, due apparently to the lowering of rates.
The demand slackened a trifle, dealers reporting portfolios a little
higher with bills showing a tendency to become ’
’
sticky,” Chicago
reports that some of its large member banks have been heavy buyers of
bills during the week, with the local supply continuing small.
Dallas reports that its bill market continued dull, with only a small
demand.
Offerings to the reserve bank were negligible.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
”
Authority £ *0*
4
OPERATIONS FOR ACC G U M 1 OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as followsi
Sales of § 900,000 par amount 3 1/2$ Treasury notes due Dec. 15, 1952.,
account Alien Property Custodian
7,500 t!
T! 4 1/4:% Fourth Liberty Loan bonds, account
German Special Deposit Account
741,800 n
n
4 1/4$ Fourth Liberty Loan bonds, account
Government Life Insurance Fund
M
4 1/4$ Treasury bonds of 1947-52, account
3,173,200_”
"_______
Government Life Insurance Fund
$4,822,500 - Total Sales
SYSTEM SPECIAL, INVESTMENT ACCOUNT - GOVERNM3NT -SECURITIES
The only transaction consummated in the System Account during the cur
rent statement week was an exchange, which was effected advantageously in the
market, of
$500,000 United States Treasury Bills due Feb. 16, 1931
for a like amount of 1 7/8% Treasury certificates of indebtedness due Dec. 15, 1931.
Accordingly there was no change in the amount of total holdings in the
Account which remained at $402,300,000.
The participations by Federal reserve
banks and the classification of issues held in the Account at the close of business
v'/ednesday, January 28, 1931, 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
£ 45,843,500
75,190,500
37,656,500
48,194,000
16,109,000
5,146,500
61,917,000
15,526,000
18,407,500
29,025,000
19,453,500
29,831,000
$40 2,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Feb. 16,
June 1 o,
June 15,
Sept. 15,
Dec. 15,
Ma r. 15,
Series
Dec* 15,
Oct.; 15,
$
1931 - Treas.Bills
1931 - 2 7/8% S/I
1931 - 1 3/4 % tt
1931 - 2 3/8>5 tt
1931 - 1 7/8?: tf
1931 - 3 1/2% T/N
"A” and "BM
1932 - 3 1/2-b T/N
1938 - 4 1/4$ 4th L/L
25,607,000
33,631,000
8,550 i000
80,230,500
64,626 ^500
90,695,100
40,411,900
8,548,000
#402,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
5
ITEMIZED STATEMENT OF 'TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
__________________FROM JANUARY 22 TO JANUARY 26, 1931, INCLUSIVE____________________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Purchases
Sales
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$ 57,000
93,500
47,000
60,000
6,500
77,000
19,000
23,000
36,000
24,000
37,000
§ 57,000
93,500
47,000
60,000
20,000
6,500
77,000
19,000
23,000
36,000
24,000
37,000
Totals
$500,000
$500,000
2 0 #Q 0 0
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Boston
New York
Atlanta
Minneapolis
Totals
$
20,950
21,250,000
782,500
1*206,650
First L/L 3 l/2/b Bds.
Misc. Gov’
t Se c •
tt
n
it
it
Issue
Sales
Issue
Purchases
tt
"
0
36 ,250,000
656,900
1 ,064,700
Misc.Gov't
Sec
1
t»
tf
Tt
t)
tt
ft
$37 ,971,600
^23,260,100
BANKERS ACCEPTANCES
(OOO Omitted)
Boston
Ne”
r Ynrk
Lolaings
Jan.21
§ 8,673
26,483
Phila.
Cleve.
Richmond
Atlanta
Chicago
St. Louis
Minn.
Kan. City
Dallas
San Fran*.
Totals
6
13,305
4,800
7,515
22,722
4,689
4,677
5,877
4,155
11,124
.*>114,026
NOTE:
Purchased
+0wn Mkt.
•il57 R.
227 "
366 A.
0
0
0
75 R.
0
0
0
0
31 R.
36 f?
$892
By Allot Matur
ment from ities &
Sales
New York
•:) 2,853
$ 35
0
4,731
0
50
17
40
51
39
23
39
26
46
$366
0
3,628
2,410
1,531
9,687
1,048
2,413
1,451
722
2,621
$33,095
Holdings
Jan.28
$ 6,012
21,979
6
9,727
2,407
6,099
13,086
3,680
2,287
4,465
3,490
8,585
^81,823
Other Holdings
Close Jan. 28/31
Sales
Other
Bills
Contracts
§ 810
2,69 9
12,160
0
0
0
0
0
978
0
0
0
0
0
$1,788
3,562
3,634
1,439
1,622
4,858
1,259
828
1,0415
1,079
2,447
$36,630
R. indicates Retained and A. indicates Allotted in the above statement.
ip
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q«
6
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING JANUARY 28, 1931
(000 Omitted)
1-30 days
1 1 / 2 - 1 3/4$
31-60 days
1 3/4$
$ 54
477
75*
31
25
$ 72
116*
0
0
11
<£662
$199
Boston
New York
Atlanta
Dallas
San Francisco
Totals
61-90 days
1 3/4$
Over 90-days
-
Tota]
$31
0
0
0
__ 0
0
0
0
0
0
$157
593
75
31
36
$31
0
$892
*Purchased at 1 3/8$
**Purchased at 1 1/2$
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING JANUARY 28, 1951
(000 Omitted)
(jixcludiiig Sales Contracts)
Government
Securities
Purchased
Sold
Matured
$23,7 60
38,471
0
Bankers
Acceptances
$
Total
$24,.652
38,571
53>995
$46,914—
892
100
32,995
$32,203-
88 + (Net Change
88 + (Net Ghange
1-day holdover
and other bills)
1-day holdover
and other bills)
To tals
$14,711-
$46,826-*
$32,115-
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES JANUARY 28, 1951
~
'
(000 Omitted)
(Including Sales Contracts)
Within
15-days
Gov,t Securities $ 0
Bills Purchased
45,573
Totals
#45,372
16-30
days
31-60
days
61-90
days
$25,607
17,745
$108,756
32,927
0
23,541
$45,352
$141,683
$25,541
Over 6
months
Total
$120)758
856
$354,776
0
$609,877
120,241
$121,594
$354,776
$730,118
91 days6 months
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
January 24, 1951
Bear Hr* Sfette&ons
1
acknowledge rooeipt of Mr* Miller1#
letter of January 23rdff enclosing report of open
s^rJcelT operation* for the period from January 15,
1031 to January 21, 1931 Inclusive* The r e p o r t
will b© brought to tho attention of tho immibers
of tho Federal Reserve Board*
Tory truly yours.
2* M. McClelland,
Assistant 'Secretary
Mr# W» 3. Matteson,
Assistant Deputy Jovemor,
Federal Reserve Bank,
llossr York, K* Y.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»Q«
fh ' I fi
/iftAJU'f/.'
r
V4U
fill"
F e d e ra l R e s e rv e B a n k
of
CONFIDENTIAL
Ne w Yo r k
January 25, 1931
Dr. E. A. Goldenweiser,
Director, Division of Hesearch and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweiser•
Enclosed is a report of open market operations for
the period from January 15, 1951 to January 21, 1951 inclusive,
together with data received from Federal reserve banks.
Veiy truly yours,
Encl.
V
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q«
January 23, 1951
CONFIDENTIAL
Dear Governor Meyer,
Enclosed is a report of open market operations for
the period from January 15, 1931 to January 21, 1931 inclusive,
together with data received from i'ederal reserve banks.
Very truly yours,
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Enel.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0*
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED JANUARY 21, 1931
Holdings of Earning Assets of Federal Reserve Banks from January 82, 1950 to Date
(000 Omitted)
-1930Jan. 22
Jan. 29
Feb. 26
Mar. 26
Apr. 30
May
28
June 25
July 30
Aug. 27
Sept. 24
Oct. 29
Nov. 26
Dec. 31
-1931Jan. 14
Jan. 21
TOTAL
EARNING
ASSETS
$1,222,804
1,154,379
1,138,522
1,001,090
982,225
958,776
916,038
911,554
-967,034
973,483
975,021
1,011,940
1,351,853
GOVERNMENT SECURITIES
Sales
Outright
Purchases
Contracts
$476,662
1 o
476,466
70
477,610
5,145
526,284
2,715
2,385
527,124
529,450
320
576,560
410
45
576,323
0
601,913
601,656
150
601,438
0
595,634
0
686,064
43,403
1,089,387
1,006,751
644,317
624,591
0
0
BANKERS ACCEPTANCES
Sales
Outright
Purchases Contracts
$ 97,994
$200,395
72,795
185,677
66,785
232,521
112,710
143,772
47,718
161,846
130,066
45,494
7,578
94,735
2,797
127,965
159,137
4,137
192,161
5,583
3,752
161,906
6,176
169,930
324,746
39,098
191,743
150,568
4,437
1,057
BILLS
DISCOUNTED
$433,223
406,941
342,781
206,829
233,452
247,046
231,505
197,101
193,275
167,162
201,603
233,852
251,398
243,340
229,885
CHANGES IN .EARNING ASSETS HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
______________DURING WEEK ENDED JANUARY 21, 1931 ,_________________
(000 Omitted)
Bocton
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Balance
Net
Change
Jan. 21
$ 0
$ 46,533
213,928
19,96350,564
1+
58,359
0
17,261
0
477,716
81,844
0
24,151
0
26,297
283+
29,028
0
29,437
0
0
39,473
$624,591
$19,726-
BANKERS ACCEPTANCES
Balance
Wet
Jan, 21
Change
$ 3,6?S
$ 5,30326,483
7,6016
0
13,305
6,2414,800
1,1951,4667,515
22,722
7,2494,689
1,1584,677
2445,877
2,6004,155
1,2464,46911,124
36,542
2,403-
$150,568
$41,175-
BILLS DISCOUNTED
Net
Balance
Change
Jan. 21
$
143$ 10,935
42,767
8,3941,46125,772
28,589
86921,589
1,31021,965
172+
3,30222,727
11,207
670+
44,185
16,096
7845,546
653+
18,507
1,317+
$229,885
$13,455-
counsel ON CHANGES WEEK ENDED TA'TTARY 21, 1931
Total earning ass ets of the System shored a decrease of $82,636 ,C00 for
the current statement week. The changes by classification consisted of decreases
of §19,726,000 and $41,175,00"* respectively, in outright purchases of rovernnent
securities and bankers acceptances, $13,455,000 in bills discounted, and 05,380,000
in investments held under sales contracts. The change in the letter item consisted
of bankers acceptances only.
The reduction of approximately $20,0CC,C00 in holdings of government
securities at the Feieral Reserve Bank of New York represented sales of part of the
|45,000,000 of government securities taken over from two New York City banks last
month.
/
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»0«
iiey
,iarket
/
Prevailing rates for call money of 1 1/2 per cent on the
Stock Exchange and of 1 per cent in the outside market, both unchanged
from the previous week, reflected the continued easy condition of the
New York money market during the past week.
Federal funds remained at
1/4 per cent, with an extremely small volume of business transacted.
Bank reserves at the opening of the period were far in excess
of the required level, and although the continued return of currency
from circulation and additional inflow of funds freon other centers dur
ing the week were somewhat more than offset by retirement of Federal
reserve credit, the surplus of bank reserves in Few York remained large
at the close of the week. The decrease in Reserve bank credit occurred
chiefly through an excess of maturing bills over purchases, in addition
to which security holdings in the Nev/ York bankTs investment account
were reduced moderately and member bank discounts declined slightly.
Slight further declines occurred la.te in the week in the rates
for 6C and 90-day time loans, and these maturities now are quoted at
1 1/4 per cent bid, 1 1/2 per cent aske1 for 60 days, and 1 5/4 bid,
2 per cent asked for 90 days. Loans during the period appear to have
been confined to a small amount of money for 60 days, at 1 1/2 per cent.
Itealers* comments indicate that the market for commercial
paper thus far in the month has given little indication of the usual
January upswing. Commercial concerns, however, have made some increase
in their open market borrowings, and the paper so acquired by the brokers
has moved rapidly into investors’portfolios., The prevailing rate for
prime material remains at 2 3/4 - 3 per cent, with the 2 3/4 per cent
names assuming a more important place in dealers’offering lists.
Furthermore, a little especially choice paper has been sold at 2 1/4 per
cent and some at 2 1/2 per cent.
Government
Security
Market
The market for United States Government securities continued
strong and active during the current statement week. There was a fairly
good demand for the long-term issues while the demand for the short
term issues was exceptionally good and prices advanced fractionally.
At the close of the current statement week the average yield on the
short-term issues at dealers* offering prices was about 1.17$ as com
pared with 1*33$ last week, and the average selling price for the Liberty
Loan and Treasury bonds reached a new high level since early in 1928 of
105.58 as compared with 105.44 last week.
Dealers1 Offering Frices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
2
1
O
1
3
7/8$
3/4$
3/8$
7/8$
1/2$
3 1/2$
Issue
Cert, of Ind. due June 15, 1931
” "
"
" June 15, 1931
"
"
"
" Sept. 15, 1931
"
"
"
" Dec. 15, 1931
Treasury Notes Series "A** and WB”
called for payment Mar. 15, 1931
Treasury Notes due Dsc. 15, 1932
Treasury Bills w Feb. 16, 1931
Price
IOC 23/32
100 8/32
100 22/32
IOC 9/32
Net
Change
+1/32
+3/32
+ 3/32
+4/32
-1/32
100 12/32
101 25/32
+2/32
1 1/2$ - 1$ discount
Approx,
Yield
1.03$
1.10$
1.29$
1.55$
0.82$
1.48$
Reproduced from the Unclassified / Declassified Holdings of the National Archives"
DECLASSIFIED
Authority £ »0»
3
Closing Sale or Bid Prices on New York Stock Exchange at the Close
of the Current statement Y/eek and Net Changes from
Close of the Frevious Statement Week
—
Net
Issue
Price
Change
Issue
Trice
Change
1st 5 1/2s 102 4/32 +5/32 Treas. 4s
1944-54 109 1/32 +4/32
1st 4 l/4s 103 8/32 +6/32
"
4 l/4s 1947-52 113 5/32 +3/32
4th 4 1/4s 104
+4/32
"
3 3/4s 1946-56 107 1/32 +3/32
"
3 3/8s 1943-47 103 3/32®-1/32
"
3 3/8s 1940-43 102 27/32 +3/32
Bankers
Acceptances
Dealers* offerings of unendorsed bankers acceptances were at
the following rates at the close of the current statement week; 1 1/2
per cent for 30s> 60s and 90s; 1 5/8 per cent for 120s- and 1 3/4 per
cent for 180-day bills.
This represents a reduction of 1/8 per cent
on all maturities from the previous week*s offering rates.
Reporjts
forweek
ending
Jan. 21
Boston reports that both the supply of and demand for bills
fell off considerably during the past period, and dealers forwarded
most of their 90-day bills to offices in other cities and were obliged
to receive shorter maturities for which there was the best demand.
Local dealers reduced theiriates in line with New York dealers* rates.
New York call money continued very easy throughout the week.
The
good investment demand also continued and dealers reported difficulty
in filling orders.
On the 20th of the month dealers reluctantly made
a further reduction in rates of 1/8 per cent to 1 5/8 per cent bid up
to 90 days, 1 1/2 per cent asked, 1 3/4 per cent bid for 4 months,
1 5 / 8 per cent asked, 1 7/8 per cent bid for 5 and 6 months, 1 3 / 4
per cent asked on unendorsed bills.
Philadelphia reports that its
acceptance market continued very quiet*
There were practically no
offerings, banks preferring to hold their bills.
Declining portfolios
resulting from a good demand and few offerings caused a further lower
ing of dealers* bill rates.
Chicago reports that there was a good de
mand for all maturities of bills in its district during the past week
with the supply very small.
Dallas reports that the bill market
continued dull with no demand.
negligible.
Offerings to the Reserve bank were
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»Q*
4
OPERATIONS FOR ACCOUNT.
STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Sales of
$ 3,000,000 - par amount Fourth 4 1/4# Liberty Loan
bonds, accouht Government Life Insurance
Fund
and purchases of 11,962*500 - par amount 1 3/4# certificates due June
15, 1931, account Federal Farm Loan Bureau,
account Grain Stabilization Board of Chicago.
SYSTEM SPECIAL I.NVESTMENl, ACCOUNT - GOVERNMENT SECURITIES
During the current statement week exchanges were effected advantageously
in the holdings of government securities in the system Account of
#2,500,000 - 1 7/8# certificates of indebtedness due Dec. 15, 1931
5*000.,000 - 3 1/2# Treasury notes
" Dec. 15, 1932
2.000.000 - 3 1/2# First Liberty Loan bonds
#9,500,000 - for a like amount <*f short-term governments as follows:
$6,500,000 - 1 3/4# certificates of indebtedness due June 15, 1931
3 . 0 0 0 . 0 0 0 - 1 7 / 8 Jo
«
h
*
tt Dec# 15> ig3i
$9,500,000
In order to furnish the Federal Farm Loan Board, account Grain Stabilization Board
of Chicago, with a block of $11,962,500 - 1 3/4# certificates due June 15, 1931,
(which were not immediately available in the market) $6,000,000 of these certifi
cates were supplied from the holdings in the System Account and the balance from
the holdings in the Investment Account of the Federal Reserve Bank of New York,
This sale of $6,000,000 from the System Account was replaced by purchase of a like
amount of 1 7/8# certificates due December 15, 1931.
These transactions did not affect the amount of total holdings in the
Account, which remained at $402,300,000, The participations by Federal reserve
banks and the .classification of issues held ih. the Account at the close of busi
ness Ytfednesday, January 21 r 1931, were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
§ 45,843,500
75,190,500
37,656,500
48,194,000
16,109,000
5,146,500
61,917,000
15,526,000
18,407,500
29,025,000
19,453,500
29,831,000
Totals
#402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Feb. 16, 1931 June 15, 1931 June 15, 1931 Sept.,15> 1931 Dec. 15, 1931 Mar* 15, 1931 Series nAM and
Dec. 15, 1932 Oct. 15, 1938 -
Treas.Bills
2 7/8# C/I
1 3/4# »?
2 3/8# tt
1 7/8# tt
3 ..1/2# T/N
ttBtt
3 1/2# T/N
4 1/4# 4th L/L
$ 26,107,000
83,631,000
8,550,000
80,230,500
64,126,500
90,695,100
40,411,900
8,548,000
$402,300,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_____________
FROM JANUARY 15 TO JANUARY 21, 1931, INCLUSIVE_____________________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Purchases
$ 1,766,500
2,897,500
1,450,000
1,857,000
620,500
198,000
2,386,000
597,500
709,000
1,119,000
749,000
1,150,000
Sales
$ 1*766,500
2,897,500
1,450,000
1,857,000
620,500
198,000
2,386,000
597,500
709,000
1,119,000
749,000
1,150,000
Totals
$15,500,000
$15,500,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
New York
Atlanta
Minneapolis
Purchases
$25,500,000
300,700
1,051,050
Totals
$26,851,750
Issue
t Sec.
Mi sc • Gov’
Tf
tf
tr
tf
tf
tf
Sales
$45,462,500
347,850
768,050
Issue
Misc. Gov’
t Sec.
Boston
New York
Phila.
Gleve.
Richmond
Atlanta
Chicago
St. Louis
Minn.
Kan. City
Dallas
San Fran.
6
19,546
5,995
8,981
29,971
5,847
4,921
8,477
5,401
15,593
Totals
$152,798
NOTE:
Purchased
Own Met*
0
1,267 R.
1,802 A.
0
0
0
83 R.
0
0
0
0
1
79
tf
tt
$3,232
tr
n
tr
tf
$46,578,400
BANKERS ACCEPTANCES
(OOO Omitted)
Holdings
Jan.14
$ 13,976
34,084
tf
tf
By Allot
ment from
New York
& 242
0
Other Holdings
Close Jan. 21/31
Other
Sales
Contracts Bills
$ 2,699
| 134
12,117
0
Matur
ities &
Sales
$ 5,545
8,868
Holdings
Jan.21
$ 8,673
26,483
0
172
211
187
127
188
106
175
149
245
0
6,413
1,406
1,736
7,376
1,346
350
2,775
1,396
4,793
6
13,305
4,800
7,515
22,722
4,689
4,677
5,877
4,155
11*124
0
0
0
0
923
0
0
0
0
0
3,562
3,634
1,439
1,577
4,858
1,259
828
1,043
1,079
2,447
$1,802
$42,004
$114,026
$1,057
$36,542
R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0« VffiSfr
/
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING JANUARY 21, 1951
(000 Omitted)
1-30 days
1 5/8-1 3/4$
New York
Atlanta
Dallas
San Francisco
Totals
31-60 days
1 5/4#
61-90 days
1 3/4$
Over 90-days
1 3/4$
Total
#2,143
0
0
25
$244
0
0
38
$682
77
0
13
0
1
3
$ 3,069
83
1
79
^ 2 }168
§282
|772
$10
$ 5,232
6
RECAPITULATION OP PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING JANUARY 21, 1951
(000 Omitted)
(Excluding Sales Contracts)
Gov eminent
Securit ies
Purchased
Sold
Matured
$42,551
62,078
0
Totals
#19,727-
Bankers
Acceptances
Total
$ 3,232
784
41,220
$38,77 22,403- (Net Change
_______ 1-day holdover
and other bills'
$41,175-
$45,583
62,862
41,230
,4992,403- (Net Change
1-day holdover
and other bills1
$60,902-
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES JANUARY 21, 1951
(000 Omitted)
(Including Sales Contracts)
Govft Securities
Bills Purchased
Totals
61-90
days
91 daysOver 6
6 months ' months
Within
15-days
16-30
days
0
71,689
$26,107
27,266
$111,717
21,502
0 ' $121,643
29,926
1,242
$365,124
0
$624,591
151,625
$71,689
$53,373
$135,219
$29,926 $122,885
$365,124
#776,216
31-60
days
Total
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
-<■*
~
'
Authority £»Q»
January 17, 1951
Bear Mr* Ifetteaon:
X acknowledge reot&pt of
shall bring
to the attention of the
of the Beard your
letter of Jftxmasy IGth, addressed to Governor Mayer,
enclosing a report of open market operatlcme for the
period from January 8, 1951 to January 14, 1951 in~
oluelve*
Very truly yours,
J# C. Hoell,
/Laaiatant Secretary
Mr* w. B* SAatteaon,
Aaaiataiit Deputy Governor,
Federal Reaerre Bank,
Be*f York, tf* T.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»0*
■t/'
..
j
y
\
F e d e ra l R e s e rv e B a n k
of
CQNFXDJ^TIAL
N e w Yo r k
January 16, 1951
Dr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Dr. GoldenweiserJ
Enclosed is a report of open market operations for
the period from January 8, 1951 to January 14, 1951 inclusive,
together with data received from Federal reserve banks.
Y&iyy truly yours,
W. B. Matteson
Assistant Deputy Governor
^
c<
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
-
te s SPS0J A t
HIOHPTM, IN ITIAL AND p.ETUF's,
r
V "
Mr. H a m l i n t /
p B J & E A ^ S g |f|P g
M f : £§??«§
Ur. Mlll»p
Zli
F e d e ra l R e s e rv e B a n k
of
w^ii
SfF? F8 l§
N e w Yo r k
CONFIDENTIAL
January 16, 1951
Dear Governor Meyers
Enclosed is a report of open market operations for
the period from January 8, 1931 to January 14, 1951 inclusive,
together with data received from Federal reserve banks.
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £*Q« V2R5$'
confidential
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENOBD JANUARY 14,1391
Holdings of Sarniftg Assets of Federal Reserve Banks from
(000 Omitted)
-1930
Jan.
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
-1931
-Jan.
Jan.
15,
29
26
26
30
28
25
30
27
24
29
26
31
TOTAL
EARNING
ASSETS
$1,259,623
1,154,379
1,138,522
1,001,090
982,225
958,776
916,038
911,554
967,034
~ 973,483
975,021
1,011,940
1,351,853
7
14
1,223,300
1,089,387
GOVERNMENT SECURITIES
Outright
sales
Purchases
Contracts
$ 2,560
|476,500
70
476,466
5,145
477,610
526,284
2,715
527,124
2,385
320
529,450
410
576,560
45
576,323
0
601,913
601,656
150
0
601,438
0
595,634
43,403
686,064
658,051
644,317
January 15, 193b to Date
BANKERS.ACCEPTANCES
Outright
Sales
Purchases
Contracts
$120,242
§203,105
185,677
72,795
66,785
232,521
143,772
112,710
161,846
47,718
130,066
45,494
94,735
7,578
127,965
2,797
159,137
4,137
192,161
5,583
161,906
3,752
169,930
6,176
324,746
39,098
850
0
254,030
191,743
11,426
4,437
BILLS
DISCOUNTED
§442,336
406,941
342,781
206,829
233,452
247,046
231,505
197,101
193,275
167,162
201,603
233,852
251,398
292,385
243,340
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
__________________PORING WEE a ELTIED JANUARY 14, 1931_____________
(0G0 fitted)
Boston
Ner* York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
ani other bills
TotaIs
GOVERNMENT SECURITIES
Net
Balance
Jan, 14
Change
5
978$ 46,533
/233,891
3,3001,06250,563
58,359
1,3214,679+
17,261
46+
7,763
75981,844
65024,151
39226,014
75229,028
29,437
5488,69739,473
0644,317
013,734-
BANKERS ACCEPTANCES
Net
Balance
Jan. 14
Change
$ 4,571& 13,976
34,084
15,0556
0
3,65119,546
2,5725,995
8,981
5,33229,971
11,0565,847
2,9603,1114,921
3,1838,477
5,401
2,88315,593
7,75338,945
160-
$191,743
062,287-
BILLS DI^COUNTSD
Net
Ba lance
Jan. 14
Change
$ 11,078
426$
51,161
18 ,33127,233
1 ,90729,458
4 ,72222,899
1 ,38291721,793
26,029
3 ,99010,537
554109+
4,189
16,880
2 ,7614,893
11617,190
14 ,048-
$243,340
$49 ,045-
CQMIVIENT ON CHANGES WBflC M D E D JANUARY 14, 1931
Total earning assets oi the System showed a deorease of $133,913,000 for
the current statement week. The changes by classification consisted of decreases
of yl3,734,000 and y>62,287,000 respectively, in outright purchases of government
securities and bankers acceptances, v^9,045,000 in bills discounted and $7,839,000
in investments held under sales contracts. The change in the latter item consisted
of decreases of ^850,000 and ^6,989,000 respectively, in government securities and
bankers acceptances#
............ — ^
-------- —
Reproduced from the Unclassified I Declassified Holdings of the National Archives
iW
wmmmmmmmmm______________
DECLASSIFIED
*4
"
Authority £»0«
2
Money
Market
Easy conditions continued to prevail in the New York money
market during the past week. On the Exchange, the call rate held un
interrupted at 1 1/2 per cent and in the outside market 1 per cent was
the ruling quotation. Reflecting the large surplus reserves which the
New York City hanks accumulated as the week progressed, Federal funds
were quoted most of the time at 1/4 per cent, a nominal figure since
there was little demand for this type of accommodation.
During the past week there was a consistent return flow of
currency to the Reserve banks, a movement which is now noticeably larger
than the usual seasonal reduction in currjacy trtaailEtion at this time.
The size of this return flow indicates that a part of the extra currency
put out prior to Christmas to meet
banking emergencies is now being
"retired, following two weeks in which the return flow was considerably
less than was to be expected from the experience of past years. The
effect of the decline in currency circulation throughout the country was
manifested in part by a direct gain to the New York money market and
in part by a considerable inflow of funds to this market from other
centers. These two principal gains of funds were supplemented by ^5old
imports from Canada and releases of gold from earmark totaling together
$21,000,000* The funds placed in the New York market as a result of
the- aforementioned gains in commercial and agency transactions exceeded
the retirement of Federal Reserve credit during the period and conse
quently the excess of reserves held by the New York City banks was in
creased from a rather small amount at the beginning of the week to a
large figure at the close of the period. The major part of the retire
ment of Federal Reserve credit in this district was through bill opera
tions with smaller reductions in member bank borrowings and in security
holdings in the System Special Investment Account, the total of which
returned to the level in effect before the year-end purchases were made.
Time money rates declined further during the week to new low
levels for many years and at the lowest rates reached rather sizable
offerings and a fair volume of actual loans were reported with 90-day
loans made at 2 and 2 1/4 per cent and 6 months’loans at 2 1/2 per
cent. Quotations at the end of the period were down at least 1/4 per
cent from a week earlier; 20-day money was 1 1 / 2 per cent bid, 1 3 / 4
per cent asked; 60-day money 1 3/4 - 2 per cent; 3 and 4 months’loans
2 per cent flat, and 5 and 6 months’money 2 1/4 - 2 1/2 per cent.
The volume of new commercial paper entering the market has
shown little of the increase usually expected in January, while bank
investment demand, outside of New York, has become slightly more active.
Most of the paper continues to be sold at 2 3/4 - 3 per cent, although
a few exceptionally choice names have been moved at 2 1/2 per cent.
Government
Security
Market
The market for United States Government securities was
strong and active during the current statement week. The demand was
very good for both the short and long-term issues and prices advanced
fractionally. At the close of the statement week the average yield
on the short-term issues, at dealers’offering prices, was about 1.33$
as compared with 1.45$ last week and the average selling price for the
Liberty Loan and Treasury bonds was 105.44 as compared with 105,23 last
week and the high level for the year IS30 of 105.38.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
■*
-
Authority £ »0«
Dealers1 Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net
Approx^
Issue
Price Change
Yielu
1.19$
2 7/8# Cert, of Ind. due June 15, 1931
100 22/52
+1/32
1 3/4#
"
"
"
" June 15, 1931
100 5/52
1.56#
1.46#
2 3/8#
"
"
”
« Sept. 15, 1931
100 19/32+1/32
1 7/8#
«
«
tf
« Dec# 15# 1931
100 5/32+1/32
1.70#
3 1/2# Treasury Notes Series WAW and f,B H
1.00#
called for payment Mar. 15, 1931 100 13/32 - - 1.59#
3 1/2% Treasury Notes due Dec. 15, 1932 101 23/32
+1/32
Treasury Bills M Feb, 16, 1931 1 1/2$ - 1# discount
Closing Sale or Bid Prices on New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Net
Price
Change
Issue
Issue
Price
Change
+ 2/32
1944-54 108 29/32
1st 3 1/ 2s 101 31/32 +1/32 Treas. 4s
+ 4/32
4
1/4s
1947-52
113
2/32
1st 4 1/ 4s 103 2/32 +3/32
*
+
7/35
106
30/33
(B)
4th 4 l/4s 103 28/32 +2/32
3 3/4s 1946-56
”
tr
+10/32
3 3/8s 1943-47 103 4/32
+11/32
3 3/8s 1940-43 102 24/32
(B} indicates bid price
Bankers
Acceptances
Dealers' offerine of unindorsed bankers acceptances were at
the following rates at the close of the current statement week: 1 5/8
per cent for 30s, 60s and 90s; 1 3 / 4 per cent for 120s, and 1 7/8 per
cent for 180-day bills. These rates represent a reduction of 1/8 per
cent on all maturities from the preceding week.
Reports
week
ending
Jan. 14
Boston reports that the continued ease in money rates was
principally responsible for an excellent demand for bills from local
banks in its district during the past week, making it necessary for
some of the dealers to receive bills from their offices in other
cities in order to obtain the desired maturities. The supply of new
bills continued small, and, as the best demand was for short bills,
dealers forwarded their 90-day bills to offices in other cities, keep
ing their portfolios at a low figure* Offerings to the reserve bank
were very light. In New York call money was very plentiful throughout
the week. This condition resulted in a good demand for bills with a
falling off in the supply. Dealers’aggregate portfolios wtsr.e reduced
by $24,000,000 to $39,000,000. Near the end of the week dealers re
duced their rates 1/8 per cent on all maturities to 1 3/4 bid up to
90 days, 1 5/8 asked; 1 7/8 on 4 months, 1 3/4 asked; 2 per cent on
5 and 6 months, 1 7/8 asked. Indorsed bills 1/8 per cent less.
Philadelphia reports that its acceptances market continued very quiet.
Dealers again reported good outside demand, with portfolios somewhat
lower. There was practically no demand in its district. Chicago
reports that they found very few new bills coming out. Dealers re
ported that the demand was in excess of the supply. Dallas reports
that the bill market in its district continued dull, with very little
demand and practically no offerings to the reserve bank.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
OPERATIONS FOB ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Sale of $4,000,000 - Fourth 4 1/4% Liberty Loan bonds account
Government Life Insurance Fund
400,000 - 3 1/2% Treasury notes due December 15, 1931,
__________
account Alien Property Custodian
•*>4,40Qr000 - Tot&1 Sales
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
The conditions existing in the money market and the government security
market during the current statement week permitted the sale advantageously from hold
ings in the System Account of the balance of $6,425,000 of the |32,925,000 govern
ment securities purchased on the last two days of December to take care of year-end
demands in the money market. These securities were sold as follows:
Jan. 13, 1931 - $3,425,000-2 3/8% certificates due Sept. 15, 1931
3,000,000-3 1/2$ Treasury notes called for payment
__________
March 15, 1931
'
Total
$6,425,000
Exchanges were also effected in the holdings in the Account of
$8,925,000 - 3 1/2$ Treasury notes called for payment
March 15, 1931
1,000,000 - 3 1/2% Treasury notes due Dec. 15, 1932
a total of
$>9,925,000 for a like par amount of other issues of United States
Government securities as follows:
§1,925,000-Treasury bills due Feb. 16, 1931
1.000.000'- 2 3/8$ certificates due Sept. 15, 1931
5.000.000- 1 7/8%
M
" Dec. 15, 1931
2.000.000- First 3 1/2% Liberty Loan bonds
^9,925,000
On January 14 the Federal Reserve Bank of Richmond repurchased the #5,000,000 of
its participation which it temporarily sold on December 12, 1930.
The sales referred to above restored the amount ^fotal holdings in the
Account to ^402,300,000. The participation by Federal reserve banks and the
classification of issues held in the Account at the close of business Wednesday,
January 14, 1931, were as follows:
PARTICIPATION BY
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
§45,843,500
75,190,500
37,656,500
48,194,000
16,109,000
5,146,500
61,917,000
15,526,000
18,407,500
29,025,000
19,453,500
29,831,000
,^402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
§ 26,107,000
Feb. 16, 1931 - Treas.Bills
83,631,000
G/l
2
7/8%
1931
June 15,
t
t
8,050,000
1 3/4%
June 15, 1931
H
80,230,500
2 3/8 7a
Sept.15, 1931
57,626,500
Dec. 15, 1931 - 1 7/8% w
Mar. 15, 1931 - 5 1/2% T/N
90,695,100
BW
Series "A”and ”
45,411,900
3 1/2# T/N
Dec. 15, 1932
8,548,000
Oct. 15, 1938 - 4 1/4% 4th L/L
2,000,000
June 15, 1947 - 3 1/2% 1st "
$402,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« VTRSS*
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
______________________FROM JANUARY 8 TO JANUARY 14, 1931, INCLUSIVE
____________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Net
Net
Purchases
Sales
Decrease
Increase
0
Boston
$ 2,005,000
$ 1,026,500
$
978, 500
0
3,475,
New York
500
5,175,500
1,700,000
0
1,061,
500
Philadelphia
1,907,000
845,500
0
500
Cleveland
1,081,000
2,402,500
1,321,
4,579,000
0
567,000
Richmond
5,246,000
0
113,500
0
113,500
Atlanta
0
758, 500
Chicago
1,390,500
2,149,000
0
650, 000
St. Louis
350,000
1,000,000
0
361, 000
773,000
Minneapolis ~
412,000
0
753, 000
Kansas City
651,000
1,404,000
0
547, 500
Della s
436,500
984,000 '
0
1,197, 000
1,869,500
San Francisco
672,500
totals
New York
Atlanta
Minneapolis
San Francisco
Totals
#13,925,000
$11,104,000
#20,350,000
$4,679,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Issue
Sales
Issue
Purchases
Mi sc* Gsv’
t sec.
$3,250,000
Misc. Gov*t Sec.
$3,425,000
tf
♦f
tf
tt
»t
419,350
465,150
tt
tf
tt
»t
tt
tt
664,600
634,650
»»
tt
7,500,000
0
•
$11,833,950
$4,524,800
BANKERS ACCEPTANCES
(000 Omitted)
Other Holdings
By Allot- MaturClose Jan * 14/31
Holdings Purchased ment from ities &
Other
Holdings
Sales
Own Mkt.
Jan. 7
New York
Sales
Jan. 14
Bills
Contracts
$ 3,699
4 407 R.
Boston
$ 120
#18,547
$ 13,976
0
$ 4,978
13,656
34,084
49,139
2,47 4
New York
728 "
0
15,783
3,562
6
0
Phila.
6
0
00
3,634
Cl eve.
19,546
0
23,197
0
0
3,651
1,439
0
5,995
8,567
21 ”
0
2,593
Richmond
1,721
0
5,912
8,981
0
580 ”
Atlanta
14,313
4,858
1,843
Chicago
29,971
41,027
0
11,182
126 "
1,259
0
5,847
0
2,960
8,807
0
St. Louis
828
0
4,921
Minn.
0
0
3,111
8,032
1,043
8,477
0
0
Kan. City 11,660
0
3,183
1,079
0
93 «
0
2,976
5,401
Dallas
8,284
2,447
0
280 w
15,593
0
8,033
San Fran. 23,346
$58,2;-35
$4,437
$152,798
$2,235
0
$64,362
Totals $>214,925
Bills held overnight by New York far distribution to other Federal Res.Bkg.
720
T o t a l -------$38,945
NOTE:
R. indicates Retained in the above statement*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
4
^
Authority £»Q«
HATCJRITISS AND HATES ON BILLS PURCHASED WEE?I ENDING JANUARY 14, 1951
(000 Omitted)
Over 90-days
1-3D days
31-60 days
61-90 days
1 3/4-1
1 3/4-1 7/8$
1 3/4-1 7/8$
1 3/4-2#
Boston
New York
Richmond
Atlanta
Chicago
Dallas
San Francisco
Totals
90
0
337
95
58
216
$129
468*
11
47
31
35
__64
0824
0785
$77
0
0
^173*
170
10
196
0
0
0
Total
407
728
21
580
126
93
280
0
C
0
0
0
$77
An
,235
*1 3/4 to 2%
RECAPITULATION OF PURCHASES AND SALES OF GOVERN!ENT SECURITIES
AND BANKERS ACCEPTANCES HIRING WEEK ENDING JANUARY 14, 1951
(000 Omitted)
(Excluding Sales Contracts)
Government
Sec^irities
Purchased
Sold
Matured
Totals
$18,450
32,184
0
$13,734-
Bankers
Acceptances
Total
$ 2,235
0
64x 362
$62,127 160-(Net Choice
________ 1-day holdover
& other bills)
$62,287-
$2C,685
32,184
64,362
$75,861160-(Net Change
______ 1-day holdover
& other bills)
$76,021-
HOLDINGS OF GOVERHL4ENT SECURITIES AND BANKERS ACCEPTANCES JANUARY 14, 1931
(000 Omitted)
(Including Sales Contracts
Within
15-days
Gov’
t Securities
Bills Purchased
Totals
0
102,715
$102,715
31-60
days
61-90
days
91 days6 months
37,931
$139,818
24,858
$ 0
29,722
5110,1C1
954
$394,398 $644,317
0
196,180
$37,931
*>164,676
$29,722
,£111,055
$394,398 $840,497
16-30
days
A$ o0
Over 6
months
Total
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»Q»
January 12, 1951*
Doar :r* Ilatteaoa:
I
acknowledge receipt of and shall bring
to the attention of the rambers of tlie Board
your letter of January 9f enclosing a report
of open raarket operations for the period from
January 2t 1931 to January 7# 1931 inclusive,
together with data received frcsa Federal Re
serve banks*
V©ry truly youra,
I* M» KfrCleUand,
Assistant Secretary*
*‘
iav ,v» b* Mattesont .Asst* Deputy Goremor,
Federal lioserve Bank, *
K@w York, Hew York*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
,
DECLASSIFIED
„
Authority £>*0«
fauM-
♦
b d e r a l
of
COMFIDE-NTIAL
“% i
R e s e rv e B a n k
o~%&
<?%
Ne w Yo r k
January 9, 1951
Mr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Goldenweiser:
Enclosed is a report of open market operations for
the period from January 2, 1951 to January 7, 1931 inclusive,
Y». B. Matte son
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
^
'
* * /
DECLASSIFIED
Authority £»Q*
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
CONFIDENTIAL
January 9, 1931
Dear Governor Meyer:
•Enclosed is a report of open jnprket operations for
the period from January 2, 1951 to January 7, 1931 inclusive,
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
j
FOR SPECIAL CIRCULATION
^
^
lhEA S E READ pr^TTI.’
’
, J NITIAL AMD RETURN TO SZCF.l^AR'/’
S OmCd
Mr.
n/ Go v . Meyer*
Mr. ham I in
Ml”James
TflTTIfta
Mr. Pole
.Mr. Miller
r e c e iv e d
JAN 1 s 1931
OFFICE OF
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»Q«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK M E E D JANUARY 7, 1931
Holdings of Earning Assets of Federal Reserve Banks from January 8, 1950 to Date
—
(000 Omitted)
TOTAL
EARNING
ASSETS
$1,584,524
1,154,579
1,158,522
1,001,090
982,225
958,776
916,058
911,554
967,054
975,485
975,021
1,011,940
1,551,855
-1950Jan. 8
Jan. E9
Feb. 26
Mar. 26
Apr. 50
May 28
June 25
July 30
Aug. 27
Sept. 24
©ct. 29
" Nov. 26
Dec. 51
-1931Jan. 7
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
$47 6,542
$ 8,300
476,466
70
5,145
477,610
526,284
2,715
527,124
3,385
529,450
320
576,560
410
576,525
45
601,913
0
601,656
.150
601,438
0
595,634
0
686,064
43,405
1,225,500
658,051
BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
$197,257
$121,910
185,677
72,795
66,785
252,521
143,772
112,710
161,846
47,718
130,066
45,494
7,578
94,735
2,797
127,965
4,137
159,137
5,583
192,161
3,752
161,906
6,176
169,930
39,098
324,746
850
254,030
BILLS
DISCOUNTED
$567,615
406,941
342,781
206,829
235,452
247,046
251,505
197,101
195,275
167,162
201,605
255,852
251,598
11,426
292,585
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
__________________DURING WEEK ENDED JANUARY 7, 1951_____________
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
Jan. 7
Change
$ 47,511
$ 2,414257,191
9,75851,625
2,57959,680
5,24512,582
1,5257,717
16082,603
0
24,801
1,58226,406
89629,780
1,83129,985
1,55148,170
2,912-
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
$658,051
Totals
$28,015-
BANKERS ACCEPTANCES
Net
Balance
Jan. 7
Change
$ 18,547
$ 1,4578,76749,159
6
0
25,197
864+
8,567
85814,515
295+
41,027
4,0558,8C7
686449+
8,0x52
11,660
2528,284
788+
25,546
325-
BILLS DISCOUNTED
Net
Balance
Change
Jan. 7
$ 11,504
$ 1,75469,492
7,594+
5,477+
29,140
5,05654,180
24,281
1,515+
4,641+
22,710
50,019
7,215+
11,09.1
2104,080
504+
19,641
4,599+
5,009
667+
51,258
15,755+
59,105
$254,030
$292,585
,53,754$70,716-
$40,987+
COMMENT ON CHANGES WEEK ENDED JANUARY 7, 1951
Total earning assets of the System showed a decrease of $128,555,000 for
the current statement week. The changes by classification consisted of an increase
of ^40,987,000 in bills discounted, and decreases of $28,015,000 and $70,716,000
respectively, in outright purchases of government securities and bankers accept
ances, and $70,225,000 in investments held under sales contracts* The change in
the latter item consisted of decreases of $42|553,00Q and $27,672,000 respectively,
in government securities and bankers acceptances.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
"
'
.loney
-arket
DECLASSIFIED
Authority £»Q*
The ease in call money which developed promptly after the
turn of the year has continued throughout the past week. The 1 1 / 2
per cent rate which was the lowest on Friday, the 2nd, has been quoted
continuously on the Stock Exchange, while in the outside market ac
commodation has been available as low as 1 per cent. On several days
of the week Federal funds were virtually unlendable.
The New York City banks carried large surplus reserves at
the year-end, and consequently this excess carried through the January 1
holiday and caused the opening reserve position of the banks on January
2 to be extremely favorable. In addition to the opening surplus of re
serve funds, the money market was a large gainer during the past report
ing week in currency deposits at the Reserve Bank, a net inward move
ment of funds from other centers, and gold imports. Member bank reserve
requirements also receded from their turn of the year peak. As a result
of these factors, the amount of Reserve bank credit in use underwent a
marked contraction, in fact a larger reduction than the gain to the
banks* reserve position from other sources, so that by the opening of
January 8 the surplus of reserve; funds had been largely absorbed* The
retirement of Federal reserve credit was accomplished by an excess of
maturing bills over new purchases, by the dealers withdrawing bills and
securities previously sold here under repurchase agreement, and by the
sale of the major part of the securities acquired for the System Special
Investment Account in the closing days of December.
Since the turn of the year, the time money market has been
slightly more active, and bid and asked rates for certain maturities
have tended lower. Offerings of time funds have shown the greatest
improvement, but as the demand has increased only slightly, the volume
of loans actually placed has remained relatively small. Transactions
during the week included 60-day loans placed at 2 1/4 per cent, 90-day
money at 2 1/2 per cent, and 4 months* money at 2 1/2 per cent.
So far in January, the coirmercial paper market has given
little indication of eny marked upswing in the number of transactions
reported. The narrow market is being induced chiefly by the small
volume of new paper currently entering dealers* hands, as a slight
increase in the bank investment inquiry is being reported. The rate
range for the regular 4 to 6 months* maturity continues to be 2 3/4 3 per cent, with a little short-term paper sold at 2 1/2 per cent.
Government
Security
Market
The demand for United States Government securities, which had
shown some improvement during the last two days of the previous state
ment week, gained still more momentum during the current statement week,
due in a large measure to the extreme ease in money. While the short
term issues were in good demand with prices remaining firm, the demand
for the long-term bonds was quite strong and prices of the latter ad
vanced sharply to higher levels. At the close of the statement week
the average yield on the short-term issues, at dealers1 offering prices,
was about 1,45$> as compared with 1.50$ last week, and the average sell
ing price for the Liberty Loan and Treasury bonds was 105,29 as compared
with 104.87 last week, and the high level for the year 1930 of 105.38.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
t*
-
Authority £»0«
5
2
1
2
1
3
3
Dealers’Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net
Approx.
Issue
Price
Change
Yield
- - 7/8% Cert, of Ind. due June 15, 1931 100 22/52
1.26?”
- - 3/4fo "
" "
" June 15, 1931 100 4/32
1.45%
- - 3/8%
1.53%
"
w w
" Sept. 15, 1931 100 18/32
tr
t.
ti
n Dec#
7/8%
1.73%
+1/52
15, 1931 100 4/32
1/2% Treasury Notes Series ”
A M and "B”
called for payment Mar. 15, 1931 100 13/32
1.21%
-1/32
1.66%
+2/32
1/2% Treasury Notes due Dec. 15, 1952 101 22/32
Treasury Bills n Feb* 16, 1921 1 5/8% - 1 1/4$ discount
Closing Sale or Bid Prices on New York Stock Exchange at tht Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Net
Issue
Ghange
Price
Change
Issue
Price
1944-54 108 27/32
+27/32
1st 3 1/2s 101 30/32 +1/32 'Treas. 4s
tt
1st 4 l/4s 102 31/32 +1/32
+26/32
4 1/4s 1947-52 112 30/32
tt
4th 4 l/4s 103 26/32 +5/32
3 3/4 s 1946-56 106 23/32{B) +22/32
tt
+15/32
3 3/8s 1943-47 102 26/32
tt
+ 6/32
3 3/8s 1940-43 102 13/32
(B) indicates bid price
Bankers
Dealers’offerings of unindorsed bankers acceptances were at
Acceptances the following rates during the current statement week; 1 5/4 per cent
for 50s, 60s and 90s; 1 7/8 per cent for 120s, and 2 per cent for 180day bills, which represents a reduction from the previous week of 1/8
on all maturities*
Reports
week
ending
Jan* 7
Boston reports that the dealers in its district bought over
$5,600,000 bills from acceptors and over $5,000,000 from other sources.
Sales to local banks were only fair, a little over $2,000,000, making
it necessary for dealers to ship a total of $7,500,000 to their offices
in other cities, mostly to Ne?\r York. Offerings to the Reserve bank were
very small. In New York the bill market was moderately active during the
week. On January 2 dealers, feeling that money conditions would be
easier the following week and would result in a good demand for bills,
reduced rates by 1/8 per cent on all maturities. This resulted in a
slowing up in the demand for a few days, but as the supply was only
moderate, dealers' aggregate portfolios at the end of the week had in
creased by only $10,000,000 to $63,000,000. Philadelphia reports that
its acceptance market was quiet, the lowering of bill rates by dealers
produced very few new bills. Dealers reported that the outside demand
was good, with 90-day bills preferred. In Chicago dealers reported that
there was some buying of bills by local banks, but the volume was not
large. Dallas reports that its bill market continued dull, with no
demand. There were no offerings to the Reserve bank.
BP»- ,:WM
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0« V2R5%*
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Sale of $2,000,000 - Fourth 4 1/4$ Liberty Loan bone’
s, account
Government Life Insurance Fund
240,750 - Miscellaneous United States Government securitiesr
__________
account Commissioner of Indian Affairs
$2,240j750 - Total Sales
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week sales were made advantageously from hold
ings in the System Account, as the market appeared in condition to absorb them, of
$26,500,000 of the $52,925,000 government securities purchased last week to take
care of year-end demands as follows:
Jan* 2, 1951 - $5,000,000
5,000,000
Jan, 5, 1951 - 7,500,000
Jan* 7, 1951 - 9,000,000
Total
-
Fourth
1 7/8$
Fourth
5 1/2$
4 1/4$ Liberty Loan bonds
certificates due Dec. 15, 1951
4 1/4$ Liberty Loan bonds
called Treasury notes
$26,500,000 ••
exchanges were also effected in the holdings in the Account of
$7,000,000 - Fourth 4 1/4$ Liberty Loan bonds
2,500,000 - 5 1/2$ called Treasury notes
a total of
$9,500,000 for a like par amount of 1 5/4$ certificates
due June 15, 1951 and 1 7/8$ certificates due Dec. 15, 1951*
The sale referred to above reduced the amount of total holdings in the
Account to $408,725,000.
The participation by Federal reserve banks and the
classification of issues at the close of business Wednesday, January 7, 1951,
»vere as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Gleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
KQnsas City
Dallas
San Francisco
$ 46,822,000
78,636,000
58,718,000
49,515,500
11,450,000
5,146,500
62,675,500
16,176,000
18,768,500
29,778,000
20,001,000
51,028,000
Totals
$408,725,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Feb. 16, 1951 June 15, 1951 June 15, 1951 Sept. 15, 1951 Dec. 15, 1951 Mar. 15, 1951 Series "A" and
Dec. 15, 1952 Oct. 15, 1958 -
Treas.Bills
2 7/8$ C/I
1 5/4$ tt
2 5/8$ w
1 7/8$ ft
5 1/2$ T/N
"B"
5 1/2$ T/N
4 1/4$ 4th L/L
$ 24,182,000
85,651,000
8,050,000
82,655,500
55,626,500
102,620,100
45,411,900
8,548,000
$408,725,000
- - - - - - - -L '
- - .......
-
'
'i
- 'W
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« V2R5%*
m : fIZED STATEMENT OF W N S A C T I O N S IN GOVOTTOTT SECURITx^S AND BANKERS / CCEPTANCES
AFFECTING THE INTOTMENT ACCOUNT OF ALL F3IERAL RESERVE RANKS
_____________________ FROM JANUARY 2 TO JANUARY 7, 1951, INCLUSIVE
GOVERNMENT SECURITIES- - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Parchases
$1,092,000
1,809,000
899,000
1,151,000
262,500
121,500
1,480,000
373,000
438,500
693,000
464,500
716,000
Sales
.$ 3,505,500
10,296,500
3,478,000
4,395,500
1,587,500
121,500
1,480,000
1,954,500
1,233,500
2,523,500
1,796,000
3,628,000
Net Decrease
$ 2,413,500
8,487,500
2,579,000
3,244,500
1,325,000
0
0
1,581,500
795,000
1,830,500
1,331,500
2,912,000
Totals
$9,500,000
$36,000,000
$26,500,000
OTHER TRANSACTIONS IN GOVERMCSNT SECURITIES
New York
Atlanta
Minneapolis
Totals
Purchases
Issue
$20,750,000 * Misc. Gov't Sec.
395,850
"
” "
474,650
Sales
Issue
$22,000,000 * Misc. Gov’
t Sec
555,550
575,200
$21,620,500
$23,130,750
* Transactions in New York account represent exchange of longer maturities for
shorter ones.
BANKERS ACCEPTANCES
(000 Omitted)
Holdings
Dec. 31
$ 20,004
57,906
By Allot
ment from
New York
$ 4,664
0
Matur
ities &
Sales
$ 6,483
11,282
Other Holdings
Close Jan,. 7/31
Sales
Other
Contracts Bills
$ 2,570 $ 2,699
7,092
14,359
Purchased
Holdings
Own Mkt.
Jan. 7
Boston
§ 362 R
£ 18,547
New York
2,515 "
49,139
39,263 A
Phila.
C
0,
6
6
0
0
3,562
5,579
4,715
23,197
3,634
0
Cleve.
22,333
0
8,567
Richmond
248 R
4,074
2,968
0
1,439
9,425
0
3,371
3,098
14,313
1,765
22 ”
Atlanta
14,018
41,027*
4,858
1,764
7,475
24 "
11,532
Chicago
45,060
3,543
8,807
1,259
2,857
9,493
0
St. Louis
0
828
1,345
8,032
1,794
7,583
0
0
Minn,
1,043
11,660
3,209
0
3,441
0
Kan. City
11,892
1,079
1,514
0
8,284
2,302
Dallas
7,496
0
2,447
5,807
23,346
0
5,044
23,671
438 "
San Fran.
$11,426 $38,972
$42,872
$39,263
$56,834
$214,925
$228,887
Totals
133
Res.
Bks.Bills held over night by New York for distribution to other Fed.
$39,105
Total
NOTE;
R. indicates Retained and A* indicates Allotted in the above statement.
* The large amount of-the holdings by the Chicago bank is due to heavy purchases
from Chicago banks at the end of the year*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0*
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING JANUARY 7, 19 51
(000 Omitted)
1-50 days
1 3/4%
Boston
New York
Richmond
Atlanta
Chicago
San Francisco
Totals
$
5
54,079
0
16*
12
55*
#34,167
51-60 days
1 3/4%
$
54
3.638
' 34
6*
12
216*
$3,960
61-90 days
1 5/4fo
Over 90-days
1 3/4-2%
$ -278
4,055
214
0
0
69**
$ 25
6
0
0
0
QQ***
#
$4,616
$129
$42,872
Total
562
41,778
248
22
24
458
*Purchased at 1 7/8%* **Purchased at 1 7/8 to 2%, ***Purchased at 2 1/8 to 2 1/4%
RECAPITULATION OF 'nXJRCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING JANUARY 7 , 1951.
(qqq omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
totals
$31,119
59,132
0
$28,013-
Bankers
Acceptances
Total
#42,872
5,530
55|504
$15,96256,754- (Net Change
1-day holdover
and other hills)
$70,716-
$75,991
62,462
55,504
$41,97556,754- (Net Change
1-day holdover
and other bills)
$98,729-
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES JANUARY ^
'
(000 Omitted)
1951
(Including Sales Contracts)
Within
15-days
Gov’
t Securities $
850
Bills Purchased
141>785
Totals
$142,655
16-50
days
51t 60
days
0
$24,182
60,555
54,454
$60,555
$58.,616
61-90
dayjg
$125,640
27,929
91 days6 months
Over 6
months
§110,050- $598,199
955
0
3155*569 . $110,983
$398,199
Totals
$658,901
265,456
$924,357
@FedFRASER