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Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * * Authority '■ '1/jLA .M L c F e d e ra l R e s e rv e B a n k of CONFIDENTIAL Ne w Yo r k September 2, 1932, Dr. £• A* Goldenweiser, Director, Bivision 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 August 25, 1932 to August 31, 1932 inclusive, together with data received from Federal reserve banks. Assistant Deputy Governor Encl. a fc c t w ofP -3 e o Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED* r- " Authority £ , D \65Q1 j | r Fe d e r a l R e s e r v e B a n k of N e w Y o r k CONFIDENTIAL September 2, 1952 Mr, E. L. Smead, Chief, Division of Bank Operations, Federal Reserve Board, Washington, D. C. Dear Mr. Snead* Enclosed is a report of open market operations for the period from August 25, 1952 to August 31, 1952 inclusive, together with data received froa Federal reserve banks. J&fa tru ly yours, ff. B. Matteson Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority £ , •• q . \ te a i Ss’C 1 ; *■ ~.«g Fe d e r a l R e s e r v e B a n of N e w Y o r k k \*f . I/:i ^ ^ » %*’- ' \lU Ksfi Wt J-ls •irr' h^jts'SU tt* "" CQHFIQESCTIAL ' A September 2 , 1952 Dear Governor Mesyer: Inclosed is a report of open market operations for the period from August 25, 1952 to August 51, 1932 inclusive, 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 • L CONFIDENTIAL REPORT OF OPEN MARKET OPERATIONS FOR WEEK BIDED AUGUST 31, 1932 H oldin gs o f Earning A s s e ts o f F ed era l R eserve Banks from Septanber 2 , 1931 t o Date om itted ) -1 9 3 1 S e p t, 2 « 30 O ct, 28 Nov, 25 Dec, 30 -1 9 3 2 Jan* 27 Feb. 24 M£r. 30 A pr, 27 May 25 June 29 July 27 Aug* 24 t» 31 TOTAL EARNING ASSETS § 1 ,1 8 9 ,5 1 3 1,5 5 7 ,9 7 0 2 ,1 9 8 ,2 3 8 1-, 925,509 2 ,1 8 5 ,2 1 6 BANKERS ACCEPTANCES S ales O utright Purchases C on tra cts £197,474 v 394 449,022 19,505 723,262 1,418 573 479,225 78,267 248,708 GOVERNMENT SECURITIES O utright S a les C on tra cts Purchases 5 728,108 0 '0 3 <890 738,455 726,659 0 0 727,101 764,933 38,295 BILLS DISCOUNTED § 257,285 327,925 716,680 686,401 1 ,0 2 4 ,1 3 3 837,639 1 ,7 8 7 ,9 1 2 153,671 750 ,216 8,590 1,500 835,243 6,517 126,865 1 ,7 2 3 ,8 6 2 740,006 550 633,255 4,0 8 1 62,281 11,562 1 ,5 7 8 ,1 4 6 860 ,056 531,824 45,874 0 0 1 ,7 7 3 ,7 4 5 1 ,1 9 1 ,2 3 2 471,267 38,373 0 2 ,0 4 0 ,0 5 6 1,524*896 300 469,828 47,787 15,732 5,752 1,795*219* 2 ,3 4 0 ,2 6 2 * 525,390 1,8 4 1 ,1 9 1 38,210 1,490 2 ,4 1 2 ,2 3 2 0 426,704 35,433 2 ,3 1 9 ,2 4 9 1 ,8 5 1 ,0 6 1 0 0 432,756 34,098 0 1 ,8 5 1 ,3 1 5 2 ,3 2 4 ,4 8 4 400 * In clu d es §24 ,000,000 s p e c ia l one-day c e r t i f i c a t e o f indebtedne ss issu ed by Treasury t o F ed eral Reserve Bank o f Chicago on June 2 9 , CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS) ___________________ DURING WEEK ENDED AUGUST 31, 1932_________________ (000 Omitted) Boston New York P h ila d e lp h ia C levelan d Richmond A tla n ta Chicago S t , L ou is M in neapolis Kansas C ity D a lla s San F ra n cisco N, Y . h o ld o v e rs and oth er b i l l s T o ta ls GOVERNMENT SECURITIES Balance Net Au/2;, 31 Change BANKERS ACCEPTANCES Net Balance Aug.. 31 Change 4 1 121,228 711,292 139,325 178,282 47,133 46,945 274,810 66,156 54,712 57,267 30,721 123,444 # 1 ,8 5 1 ,3 1 5 $ 0 0 0 0 0 270+ 0 0 160 0 0 #254+ 0 852 78 0 1 ,4 1 3 70 297 3 0 0 17 534 $ BILLS DISCOUNTED Net Balance Aug. 31 Change | 17,454 o 31490 ,476 0 62,938 0 33,547 26,174 12533,331 95198 31,276 11,619 210 13,529 20,432 0 4— 15,748 76,232 586- 3 0 ?834 8+ $34,098 $ 1 ,3 3 5 - $432,756 f> 7454461,451+ 906+ 417974+ 342+ 373+ 61109+ 753,641+ $6,052+ | o o ON CHANGES WEEK ENDED AUGUST 31, 1932 T otal earn in g a sse ts o f the System showed an in crea se o f $5 ,2 3 5 ,0 0 0 fo r the cu rren t statem ent w eek. The p r in c ip a l changes by c l a s s i f i c a t i o n c o n s is t e d o f an in crea se o f $ 6 ,0 5 3 ,0 0 0 in b i l l s , d isco u n te d , and a d eclin e o f $ 1 ,335 ,0 00 in o u tr ig h t h o ld in g s o f bankers a c c e p ta n c e s . Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' | Authority ^ i Q • \b G 0 | gsar: 2 Money Mark&t Excess reserves of a l l member banks in the country are e s t i mated to have amounted to $319,000,000 on Wednesday, August 31, as compared with $322,000,000 the preceding Wednesday. Surplus reserves averaged $309,000,000 during the past statement week, an increase of §21,000,000 over the previous reporting week# There occurred during the week an increase of $30,000,000 in Treasury balances at the Reserve Banks, a moderate increase in reserve requirements of New York City banks, and a slig h t increase in the amount of money in circulation le s s than usually occurs in a week including the month-end, but these demands for funds were counterbalanced by a further increase of $22,000,000 in the country's monetary gold stock, the issuance of an additional $19,000,000 of new National bank notes and a r is e of $6,000,0X30 in member bank borrowings, so that as a resu lt excess mem ber bank reserves showed l i t t l e net change. Daring the forthcoming week, currency requirements for the Labor Day holiday w ill probably reduce excess reserves somewhat. In New York, excess bank reserves also showed l i t t l e varia tio n , the surplus at the end of the week amounting to $184,000,000, whereas on the preceding Wednesday the figure wrs $ 1 8 8,000,000, A small amount of funds was placed in the market as a resu lt of opera tions here, representing an inflow from other centers and releases of gold frcm earmark and gold imports, which exceeded a net withdrawal of funds from the market by the Treasury and an increase in the amount of currency outstanding. This net gain of funds, however, was more than absorbed by a further r ise of $10,000,000 in the amount of reserves required to be carried by New York City banks due to an increase in deposits. The only change in money rates in the New York market during the week was an advance in the c a ll loan rate outside the Exchange from 1 to 1 1 /2 per cent on August 31 and September 1 . Meanwhile the Stock Exchange c a ll loan rate remained at 2 per cent, time money at the nominal quotation of 1 1 /4 - 1 1 /2 per cent, commercial paper at 2 -2 1 /4 per cent, and 90 day unendorsed b i l l s at 3 /4 of one per cent offered . Yields on short-term Government's and the federal funds rate likewise were steady. Government Security Market The market for United States Government se cu ritie s, as a whole, continued quiet daring the current statement week, with a slig h t increase in the volume of o ffe rin g s. The demand continued good for the short and intermediate m aturities and f e l l o ff somewhat for the long-teim Treasury bonds. The F irst 3 1/2% and Fourth 4 1/4% Liberty £oan bonds were somewhat stronger. There was a large demand fo r the Treasury c e r tific a te s maturing September 15, 1932, which were purchased in anticipation of the exchange privilege they might carry under the September Treasury o ffe rin g . At the close of the current reporting period the average yield on short-term issu es, a t d ealers1 o ffe rin g prices, was about 0,63% as compared with 0,67% at the close of the previous week, and the average se llin g price for Liberty Loan bonds was 101,81 and for Treasury bonds 101.16 as compared with the previous week's average closing price of 101.75 and 101.19 respec tiv e ly . Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority 1^> 0 • \ 1 3 3 3 3 3 2 1 3 2 3 3 [ D e a le r s 1 O ffe r in g P r ic e s at the C lose o f the Current Statement Week and Net Changes from the C lose o f th e P reviou s Statement Week Approx, Net Change y ie ld Issue P r ic e --------------1/8% C ert, o f Ind. due S ep t. 15, 1932 100 12/32 (B id) tf ti - « % " " ” - - 100 12/32 M 15, 1932 tt O ct. 15, 1932 -------1 /8 # " " " 100 15/32 -1 /3 2 tf 1 /4 % Treasury Notes -2 /3 2 .06% Dec. 15, 1932 100 29/32 3 /4 % C ert, o f In d. tl Feb. -1 /3 2 101 16/32 ,11% 1 , 1933 tf Mar. 15, 1933 -2 /3 2 101 27/32 .30% 3/4% ” " " tf May % » " " .54% -1 /3 2 100 31/32 2 , 1933 tl June 1 5 , 1933 1/2% " " » +3/32 .73% 100 19/32 _ 1.77% % Treasury N otes tl May 102 2, 1934 tf Aug. 1/8% " " +1/32 100 15/32 1.87% 1 , 1934 tt % » " -1 /3 2 June 15, 1935 101 2/3 2 2.60% tf Aug. 1/4% ” ” 2.96% -1 /3 2 101 2/32 1 , 1936 Treasury B i l l s - a l l m a tu r itie s - 0.45% d isco u n t bid , 0.20% asked - CQ G losin g Sale P r ic e s oni the New York Stock Exchange at the Close o f the Current Statement Week and Net Changes from Close o f the P rev iou s Statement Weok Net Net Change P r ic e Issue Issu e P r ic e Change +9/32 107 18/32 1947-52 1st 3 l /2 s 100 27/32 +2/32 Trea sury tf -2 /3 2 103 30/32 1944-54 1st 4 l/4 s 101 13/32 - - 4s ti +2/32 102 2 /3 2 4th 4 l / 4 s 103 6/3 2 + 4/32 3 3 /4 s 1946-56 tf -1 /3 2 100 14/32 3 3 /8 s 1943-47 tt --- -100 15/32 3 3 /8 s 1940-43 tf +1/32 100 16/32 3 3 /8 s 1941-43 tr -4 /3 2 97 26/32 3 l / 8 s 1946-49 tf -1 2 /3 2 96 1 7/32 1951-55 3s Bankers A ccep tan ces D ealers* o f f e r i n g s o f unendorsed bankers a ccep ta n ces co n tin ued at th e f o llo w in g r a t e s during the cu rren t statem ent week: 3 /4 p er cen t fo r 3 0 s , 60s and 90s; 7 /8 per cen t f o r 120s and 1 1 /8 per cent f o r 1 8 0 -day b i l l s . R ep orts week ended Aug. 31 Boston re p o rte d th ere was v ery l i t t l e change in the l o c a l b i l l maiket du rin g the past p e r io d . A cce p tin g banks were not in c lin e d to s e l l t h e ir b i l l s , which r e s u lte d in a sm aller su p p ly. The demand was m ostly f o r sh ort b i l l s and d e a le r s found i t n ecessa ry to import b i l l s from t h e ir o f f i c e s in o th e r c i t i e s to f i l l t h e ir o r d e r s . In New York the volume o f b i l l s handled by d e a le r s showed a moderate decrease as compared w ith the p re v io u s week. The demand con tin u ed good and whatever b i l l s came in t o the market were immediately absorbed by l o c a l in s t it u t io n s which had surplus investm ent fu n d s. D ealers* p o r t f o l i o s d e c lin e d fu rth e r to th e v e ry low l e v e l o f $ 5 ,0 0 0 ,0 0 0 . P h ila d e lp h ia re p o rte d th a t i t s accep ta n ce market was in a c t iv e . B i l l s continued in good demand with the supply s m a ll. Chicago rep orted th a t the b i l l market in i t s d i s t r i c t continued v ery d u l l . D allas re p o rte d th a t th ere was a sm all demand f o r b i l l s in i t s d i s t r i c t and no o f f e r in g s were made to th e Reserve bank. Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED * | Authority ^ } Q • \6*5 Q 1 4 OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY There were no purchases o r s s le s o f U nited S ta te s Government s e c u r i t i e s under Treasury a u th o r iz a tio n during the cu rren t statem ent week, SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES S in ce member bank re se rv e s con tin u ed w e ll above $ 2 0 0 ,0 0 0 ,0 0 0 , there were no purchases o f U nited S ta tes Government s e c u r it ie s fo r the System Account during the curren t statem ent week pursuant to the program adopted at the m eeting o f the Open Market P o lic y Conference h e ld in Washington on J u ly 14, 1932, T ra n sa ction s consummated in the System Account during the week c o n s is t e d o f : ( ! ) Exchanges in the market a t advantageous ra te s o f : $ 3 0 ,6 3 5 ,0 0 0 - 1 4.4 0 0 .0 0 0 - 3 900,000 - 3 1 ,0 0 0 ,0 0 0 - 3 6 .5 0 0 .0 0 0 _- 3 _____________ 1/8% C /I due S ep t. % " " " 1/8% " ” O ct. 1/4% T/N " D ec. 1/2% 1 st L/L B ds. 15,1932 f o r #13,500,000 - T r e a s .B i l l s due O ct. 1 9/32 15,1932 3 ,7 5 0 ,0 0 0 - 2 % C /l " May 2 /3 3 15*1932 5 ,5 0 0 ,0 0 0 - 1 1/2% *' " June 1 5 /3 3 15,1932 1 3 ,785 ,0 00 - 2 1/8% T/N ” Aug. 1 /3 4 400,000 - 3 % » ” May 2 /3 4 6 ,5 0 0 ,0 0 0 ~4 1/4% 4 th L/L B ds. $43 ,4 3 5 ,0 0 0 $43 ,43 5,000 (2 ) Redemption on August 3 1 , 1932 and rep lacem en t: Redeemed $6 1 ,0 2 9 ,0 0 0 m aturing T reas. B i l l s _____________ $ 2 5 ,00 0,000 1 ,0 0 0 ,0 0 0 1 9 ,0 8 7 ,0 0 0 1 4 ,0 0 0 ,0 0 0 1 ,9 4 2 ,0 0 0 $61,029,000 §6 1 ,0 2 9 ,0 0 0 (3 ) - Purchased in the market 3 C /I due S ep t. 1 5 , 3 1/8% " " O ct. 1 5 , T reas. B i l l s due N ov.3 0 , 3 3/4% C / l due Mar. 1 5 , 2 1/8% T/N " Aug. 1, 1932 1932 1932 1933 1934 S ale in the market o f s e c u r i t i e s a cq u ire d tem p ora rily to be h eld u n t i l such time as permanent replacem ent c o u ld be made: S old $ 2 ,5 0 0 ,0 0 0 - 3% C /I due S e p t. 1 5 , 1932 R ep laced by purchase in the market $ 2 ,5 0 0 ,0 0 0 - 2% C /l due May 2 , 1933 The aforem en tion ed t r a n s a c t io n s d id n ot a f f e c t the amount o f t o t a l hold in gs in th e System Account which remained a t $ 1 ,6 3 9 ,6 0 7 ,5 0 0 . The p a r t ic ip a t io n s by F ederal r e s e r v e banks and th e c l a s s i f i c a t i o n o f is su e s h e ld in th e Account a t the c lo s e o f b u sin e ss Wednesday, August 31, 1932, were as f o llo w s : Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority Q •\ \ 5 PARTICIPATIONS BY FEDERAL RESERVE BANKS Boston New York: Philadelphia Clfrveland Richmond Atlanta Chicago S t. Louis Minneapolis Kansas City Dahlias San Francisco 11,6 3 9 ,6 0 7 ,5 0 0 Sept. Oct. w tt 28, 11, 19, 26, Ubv. 9» tt 16, t» 23, Tf 30, Sept. 15, M 1 5, Oct. 15, Dec. 1 5, Feb. 1, Mar. 1 5, May 2, June 15, May 2, Aug. 1, June 15, Aug. 1, June 1 5 , « 15, O ct. 1 5 , 1932 - Treas .B i l l s $ 19,500,000 n tt l 44,822,000 1932 M tt ft 31,100,000 1932 ** tt « 55,000,000 1932 t t tt 14,500,000 1932 ti tt t 42,500,000 1932 m tt * » • a f t 38,677,000 1932 t t H 19,087,000 1932 2 5,773,000 1932 - 1 i / s $ C/I t» 1932 - 3 115,159,500 $ 90,111,500 1932 - 3 1/8/3 n 112,697,000 1932 - 3 1 /4 $ T/N 1 3,7 7 5 ,0 0 0 1933 - 3 3 /4 # C /I 1933 - 3 3 /4 # tt 170,025,000 tr 1933 - 2 123,987,500 t t » 1933 - 1 1 /8 # 112,575,000 1934 - 3 7 5 ,7 2 5 jOOO T/N a » 90,052.000 1934 - 2 tr 78,100,000 3 1935 t » 30 ,8 2 5 s000 1936 - 3 1 /4 # 193 2/4 7 -3 1 /2 $ 1st L /l 53,025,000 1 9 3 2/47-4 1 /4 $ 1st » 23,000 ,000 1933/38-4 1 /4 $ 4th tr 259,591,000 CD 95,978,500 622,453,000 135,919,000 178,282,000 47,132,500 4 6 ,560,000 199,195,000 65,655,500 47,087,000 57,180,500 20,721,000 123,443,500 r-T Totals $ RECAPITULATION OF HOLDINGS BY MATURITIES §1 ,6 3 9 ,6 0 7 ,5 0 0 Reproduced from the Unclassified I Declassified Holdings of the National Archives _ ....... ....... . P ■ .........■.................. DECLASSIFIED ~ Authority 'E ->D • \ ^ ( ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF ,AL FEDERiX RESERVE B-.NKS ____________________ FROM AUGUST 3 5 , 1932 TO AUGUST S I, 1952, INCLUSIVE _________ GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT Redemption and S a les Purchases $ 6,2 6 1 ,0 0 0 Bo st on § 6,261,00 0 40,608 ,0 00 New York 40,608 ,0 00 8,8 6 7 ,0 0 0 P h ila d e lp h ia 8 ,8 6 7 ,0 0 0 1 1 ,6 3 1 ,0 0 0 C leveland 1 1 ,631 ,0 00 Richmond 3,0 7 5 ,5 0 0 3,0 7 5 ,5 0 0 A tlan ta 3 ,0 3 7 ,0 0 0 3,0 3 7 ,0 0 0 1 2,995,500 Chicago 12,99 5,500 S t, L ou is 4 ,282,50 0 4 ,2 8 2 3500 M inneapolis 3 ,071,500 3,071,500 Kansas C ity 3 ,730,00 0 3,7 3 0 ,0 0 0 D a lla s 1 ,3 5 1 ,0 0 0 1,3 5 1 ,0 0 0 San F ra n cisco 8 ,0 5 4 ,0 0 0 8 ,0 5 4 ,0 0 0 T o ta ls $106,964,000 §1 0 6 ,9 6 4 ,0 0 0 HOLDINGS IN GOVERNMENT SECURITIES - SALES CONTRACTS Net Change From P rev iou s Week Chicago New York A tlan ta M inneapolis T o ta ls $ 400,000 §400,000+ OTHER TRANSACTIONS p j GOVERNMENT SECURITIES Redemption Purchases Issu e and S a les Issue 413.000 Nov. 3 0 /3 2 T r . B i l l s £>4,413 «000 Aug. 31/32 T r. B i l l s 494. 950 Mi sc , Gov’ t Sec • 224,400 Mi s c . Gov11 Sec • tt tt tt tt M 5529500 « 569,200 £>5 5206 ?600 &5,460,450 Hr BANKERS ACCEPTANCES (000 Omitted) H oldings Aug . 24 Boston $ 0 New York 1,166 P h ila . 78 Q le v e . 0 Richmond 1 ?538 A tla n ta 165 495 Chicago S t. Louis 24 Minn. 0 Kan. C ity 0 D a lla s 21 San Fran. 1,120 T o ta ls NOTE: §4 ,6 0 7 Purchased Own Mkt. t 0 , 0 0 0 350 R. 0 0 0 0 0 0 0 $350 By A l l o t ment from New York 0 0 0 0 0; 0 0 0 0 0 0 0 0 Matur it ie s and S a les Held Held in E lse where N.Yo $ 0 $ 0 314 0 0 0 0 0 450 25 0 95 198 0 21 0 0 0 0 0 4 0 0 586 H oldin gs Aug. 31 § o 852 78 0 1,413 70 297 3 0 0 17 534 §360 453,264 R. in d ic a te s R etain ed in above statement* §1 ,3 3 3 Other H oldings C lose Aug. 31/32 S ales Other Con B ills tra cts 0 $ 2 ,343 0 10,214 0 3,175 3,102 0 1,228 0 1,136 0 4 ,131 0 1,004 0 631 0 891 0 0 860 2,119 0 0 f>30 ,834 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority 0 • 1 i____ MATURITIES AND RATES ON BILLS PURCHASED Y!VW. MDED AUGUST 31, 1932 (000 Omitted} 1-30 days Richmond 31-60 days r______ 0 0 61-90 days 1 1 /2 # Over 90-days - ________ $350 0 T o ta l §350 RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES AND _______ BANKERS ACCEPTANCES DURING WEEK ENDED AUGUST 31, 1932________ (000 Omitted) (E xcluding S a les C on tra cts) Government S e c u r it ie s Purchased S old Matured $112,424 46 r728 65/442 T ota ls Bankers A cceptances T o ta l & 350 0 1,693 $ 1 ,3 4 3 8+ (Net Change _______ 1-day h old over and oth er b i l l s ) $ 1 j 335- $112,774 46$728 67 <»135 § 1 ,0 8 9 8+ (Net Change _ 1-dav h old over and oth er b i l l s ' 1 ,0 8 1 - MATURHY IS C 'R IBUTION OF HOLDINGS OF GOVERNIENT SECURITIES AND ________ IN K ERS ACCEPTANCES WEEK ENDED AUTST 5 1 , 1932__________ (000 Omitted) (In clu d in g S a les C on tra cts) W ithin 1 5 -days 16-30 days 31-60 days 6.V-90 day 0 9.1 days— Over 6 t months months T o ta l Gov’ t S e c u r it ie s $164,293 ^19,500 £223,034 $132,350 $158,067 $1 ,1 5 4 ,4 7 1 $ 1 ,8 5 1 ,7 1 5 B i l l s Purchased 10 .,009 9 3458 5,856 10 ; 815 0__________ 0___________54,098 T o ta ls $ 1 7 4 r302 $28 ,93 8 $226,870 $143,165 $158,067 $1 ,1 5 4 ,4 7 1 $1 ,8 8 5 ,8 1 3 Reproduced frorin the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority f Fe d e r a l R e s e r v e B a o f Ne w Yo n k r k COM’IDEMTIAL August 2 6 , 1932, Mr. E. L . Smead, C h ie f, D iv is io n o f Bank O p era tion s, F ed eral R eserve Board, W ashington, D. C. Dear Mr. Smead: E n closed i s a r e p o r t o f open market o p e ra tio n s f o r th e p e r io d from August 18, 1932 t o August 2 4 , 1932 in c l u s i v e , to g e th e r w ith data r e c e iv e d from F ed eral R eserve banks. W. B. Matteson Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority £ , Q . lu* ( Kj V (u* Fe d e r a l R e s e r v e B a n o f Q /- k N e w Yo r k „ 4 i >■ s«* h ‘ l ' COMFIDEHTIAL August 26, 1932 ^To 1 i . vl A - t\ u 0 v> Hllb & ■ ■OOl RESEARCH - . - I D ^TATISTfCS. t D r. E. A. G olden w eiser, D ir e c t o r , D iv is io n o f R esearch and S t a t i s t i c s , F ed era l Reserve Board, Wash in g t on, D. C. Dear D r. G olden w eiser: E n closed i s a r e p o r t o f open market o p e ra tio n s f o r th e p e rio d from August 1 8 , 1952 t o August 24, 1932 i n c lu s iv e , to g e th e r w ith data r e c e iv e d from F ed era l r e se r v e banks. W • B. Matteson Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority '* | I ! 1 J o Fe d e r a l R e s e r v e B a n k of N e w Y o r k CONFIDENTIAL August 26, 19J Dear Governor Meyer: E n closed i s a r e p o r t o f open market o p e ra tio n s f o r the p e r io d from August 18, 1952 t o August 24, 1952 in c lu s iv e , to g e t h e r w ith data r e c e iv e d from F ed era l r e serve banks. Very t r u ly y o u rs , A s s is ta n t Deputy Governor Honorable Eugene Meyer, G overnor, F ed eral Reserve Board, Yfashington, D. C. ■Ki E n cl. Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED' | \ Authority Cm Q • 6 G ^ | : CONFIDENTIAL REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED AUGUST 24, 1932 (000 Omitted) 750,216 740,006 860,056 1,191*252 1 ,5 2 4 ,8 9 6 1,7 9 5 ,2 1 9 * 1 ,8 4 1 ,1 9 1 1,8 5 1 ,0 4 6 1 ,8 5 1 ,0 6 1 BANKERS ACCEPTANCES O u trigh t .Sales Purqhases C on tracts $179,476 1 9,505 449 ,022 723,262 1 ,4 1 8 573 479,225 78,267 248,708 1,500 550 11,562 0 300 5,752 0 0 0 O T , 787,912 1 ,7 2 3 ,8 6 2 1 ,5 7 8 ,1 4 6 1 ,7 7 3 ,7 4 5 2 ,0 4 0 ,0 5 6 2 ,3 4 0 ,2 6 2 * 2 ,4 1 2 ,2 3 2 2 ,3 3 5 ,8 1 5 2,3 1 9 ,2 4 9 GOVERNMENT SECURITIES O utright S a le s Purchases C on tracts $ 0 $ 727,998 738,455 5,890 726,659 0 0 727,101 764,933 58,295 153,671 126,865 62,281 45,874 38,373 47,787 38,210 35,890 35,433 CM -1931* Aug. 26 Sept# 30 Oct* 28 Nov, 25 Dec', 30 -1932** Jan. 27 Feb. 24 Mar. 30 Apr. 27 May 25 'June 29 J u ly 27 Aug. 17 n 24 TOTAL EARNING ' ASSETS’ $1 ,1 5 6 ,6 3 6 1 ,5 5 7 ,9 7 0 2 ,1 9 8 ,2 3 8 1 ,9 3 5 ,5 0 9 2 ,1 8 5 ,2 1 6 ,8,590 6*517 4,081 0 Q 15,732 1 ,4 9 0 0 0 BILLS DISCOUNTED $ 241,718 327,925 716,680 • 686,401 1 ,0 2 4 ,1 3 3 837,639 835,243 635,255 551,824 4 7 1 ,2 6 7 469,828 525,390 4 4 2 ,86Q~ 426 ,70 4« * In clu d es $24 ,00 0,000 s p e c ia l one -day c e r t i f i c a t e o f indebtedness issu ed by Treasury to F ederal R eserve Bank o f Chicago on June 2 9 . CHiiNGES IN EARNING ASSET HOLDINGS DURING WEEK ENDED AUGUST 2 4 , 1952 (000 Omitted) B oston New York P h ila d e lp h ia C leveland Richmond A tla n ta Chicago S t, L ou is M inneapolis Kansas C it y D a lla s San F ra n cisco N« Y . h old over a and o th e r b i l l s T o ta l? GOVERNMENT SECURITIES Balance Net Aug. 24 Change A 0 121,228 0 711,292 139,525 0 178,282 0 47,153 1+ 46,675 1 7274,810 0 66,156 0 54,728 31+ 57 ,267 0 30,721 0 123,444 0 # 1 ,8 5 1 ,0 6 1 $15+ BANKERS ACCEPTANCES Net Balance Aug. 24 Change | 0 # o 1,166 7645+ 78 0 0 1 ,5 3 8 149165 495 18724 2— 0 0 550 21 151151,120 3 0 i 826 0 $35,435 $457~* BILLS DISCOUNTED Net Balance Aug. 24 Change 169* $ 18,199 $ 5290,922 61,487 1 ,5 1 8 32,641 3 ,064— 26,591 39832,357 1 ,2 6 7 30 ,934 1 ,7 5 9 11,246 1 ,2 3 6 8713,590 20,325 ■4415,823 33072,591 6 ,5 7 0 - $426,704 •916 ,1 5 6 - COMMENT ON CHANCES WEM BNDED AUGUST 24 1 1952 T ota l earning a s s e t s o f the System showed a d e c lin e o f §16*566,000 f o r the cu rren t statem ent week. The changes by c l a s s i f i c a t i o n c o n s is t e d o f d ecrea ses o f $457,000 in o u tr ig h t h o ld in g s o f bankers a ccep ta n ces and $16*156,000 in b i l l s d is c o u n te d . Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority D • \h G ^ | 2 Money Market Daring the past statem ent week, th e estim ated e x ce ss re~ serv es o f a l l member banks in th e cou n try averaged $ 2 8 8 ,0 0 0 ,0 0 0 , an ~ in cre a se o f $37 ,00 0,000 from the p re v io u s week’ s average surplus. -Excess re s e r v e s on Wednesday, the 2 4th , amounted to f3 2 2 >QQQ.Q<Q;Q , an in c r e lW ''" o f l ^ V ^ i O O O from 'ISew§2 6 6 ,0 0 0 ,DOC’ fig u r e "of the p reced in g Wednesday, The in cre a se in member bank re se rv e balan ces can be a t t r ib u t e d to a n et retu rn o f §2 2 ,0 0 0 ,0 0 0 o f cu rren cy to the Reserve Banks, an in crea se o f $18,000,000 in the monetary g o ld s to c k , a n et re d u ctio n o f ^19,000,000 in th e Treasury balance at the R eserve Banks, a r e d u c tio n o f §1 9 ,0 0 0 ,0 0 0 in the N a tion a l C red it C orp ora tion account a t the F ed era l R e serv e, and the issuance by the Treasury o f ‘ §1 1,500 ,0 00 o f new N a tion a l Bank n o te s . T h is in creased supply o f funds was used in p a rt to r e t i r e an a d d it io n a l $16 ,00 0,000 o f member bank borrow ings and to p rov id e f o r a moderate in crea se in reserv e requ irem en ts, but f o r the most p a rt i t went to in crea se e x ce s s r e s e r v e s o f the member banks at the R eserve Banks. | A ll o f the in crea se in e x c e s s r e s e r v e s o f the member banks 1 In d ica te d above occu rre d in New Y ork, In f a c t , the excess h eld by * the p r in c ip a l New York C ity in s t it u t io n s was in crea sed $67>000,000, w hile the su rplu s r e s e r v e s o f a l l oth er member banks in the cou n try d e c lin e d $11,000,000* There was an in flo w o f Tune's t o New York from o th e r p a rts o f the co u n try , in a d d itio n to the payment o f $19,000,000 from the N a tion a l C redit C orp ora tion accou n t a t the Reserve Banks to a New York bank in p re p a ra tio n f o r the retirem en t o f an a d d it io n a l p a rt o f the ou tsta n d in g debentures o f that C o rp o ra tio n , and the g o ld ga in which a ls o cen tered in New Y ork, There was a ls o some ga in to the New York market through the retu rn o f cu rren cy t o the Reserve Bank. These g a in s c o n s id e r a b ly exceeded a lo s s through Treasury o p e r a tio n s and some in crea se in r e s e r v e requirem ents f o r the p e r io d . Money r a te s in New York again showed no v a r ia t io n excep t f o r a fu rth e r s lig h t d e c lin e in y ie ld s on sh ort-term Government s e c u r itie s . Government Security Market A lthough the market f o r U nited S ta te s Government s e c u r i t i e s , f o r the cu rren t statem ent week as a w hole, was not v e r y a c t iv e , the undertone was stro n g , with the demand f o r a l l o f the sh ort-term is su e s and some o f the lon g er term bonds in ex ce s s o f th e supply. The demand was e s p e c ia lly good f o r the Treasury c e r t i f i c a t e s maturing September 15 ( i n a n t ic ip a t io n o f the exchange p r iv ile g e they might c a r r y f o r the September Treasury o f f e r i n g ) and the F ir s t 3 1/2% L ib e r ty Loan bonds. P r ic e s f o r the sh ort-term is su e s maturing up to next March 15 were s te a d y , w hile p r ic e s f o r th ose maturing subsequent to March 15 and the L ib e r ty Loan bonds advanced from 2/5 2 to 4 /3 2 , P r ic e s f o r the Treasury bonds advanced from 1 /5 2 to 1 1 /3 2 . At the c lo s e o f the cu rren t r e p o r t ing p e r io d the average y i e l d on the sh ort-term is s u e s , at dealers* o f f e r i n g p r i c e s , was about 0.67% as compared w ith 0.75% a week a g o , and the average p r ic e f o r the L ib e r t y Loan bonds was 101.75 and f o r the Treasury bonds 101.19 as compared w ith the p reviou s week’ s average c l o s i n g p r ic e s o f 101,64 and 101.05 r e s p e c t i v e l y . Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' f Authority Q • \h G ^ 1 L Dealers* Offering Prices at the Close o f the Current Statement Week and Net Changes from the Close of the Previous Statement Week 1 3 3 3 3 3 2 1 3 2 3 3 1 /8 $ $ 1 /8 $ 1 /4 $ 3 /4 $ 3 /4 $ $ 1 /2 $ $ 1 /8 $ $ 1 /4 $ Net Approx. Price Change Yield - - - - Sept. 15, 1932 100 7/32 w . - - 15, 1932 100 10/32 - - - • « Oct. 15, 1932 100 16/38 Dec. 15, 1932 -1 /3 2 100 31/32 .05 $ - - Feb. .20$ 101 17/32 1, 1933 -------Mar. 15, 1933 .31$ 101 29/32 2, 1933 101 +4/32 .53$ May June 15, 1933 100 16/32 +2/32 .87$ 1 .7 8 $ 102 +3/32 May 2, 1934 100 14/32 1.8 9 $ +4/32 Aug. 1, 1934 June 15, 1935 2 .59$ 101 3/32 +3/32 101 3/32 2 .95$ Aug. + 3/32 1, 1936 Treasury B ills - August 31 maturity - 0*50$ discount bid, 0 .2 0 $ asked tt tt - Sept.*O ct. & Nov. m aturities - 0*50$ " 0 .5 0 $ Issue Cert. of Ind. due tt « » *t tf It » tt w Treas-. Notes tt Cert. o f Ind. tt « tt tt tt tt tt tt tt tt w n tt Treas. Notes tt » tt w tt » tt tt Closing Sale 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 Price Change Issue Issue Treasury 4 1 /4 s 1947-52 107 9 /3 2 1 st 3 l / 2 s +4/32 100 35/32 n 104 +3/32 4 s 1944-54 1 st 4 l /4 s 101 13/32 n +4/32 3 3 /4 s 1946-56 102 4th 4 l / 4 s 103 2/32 tt 3 3 /8 s 1943-47 100 15/32 tt 100 15/32 3 3 /8 s 1940-43 t» 3 3 /8 s 1941-43 100 15/32 tt 97 30/32 3 l / 8 s 1946-49 tt 3 s 1951-55 96 29/32 Net Change ♦ 2 /3 2 + 2 /3 2 + 1 /3 2 +11/32 «■ 2 /3 2 +11/32 + 7 /3 2 + 5/32 Bankers Acceptances Dealers* offerings o f unendorsed bankers acceptances con tinued at the following rates during the current statement week: 3 /4 per cent fo r 30s, 60s and 90s, 7 /8 per cent for 120s and 1 1 /8 per cent fo r 1 8 0 -day b i l l s . Reports week endeid August 24 Bos ton reported that the supply o f b i l l s was inadequate to meet the demand fo r desired maturities during the past week. Buying by country banks improved considerably over the previous period and was confined to a few o f the larger institutions# Short maturities were in best demand, dealers being obliged to import b i lls from their o ffic e s in other c it ie s in order to obtain these m aturities. In New York the b i l l market was more active this week, the volume o f b i l l s being heavier than any week since June 8 . Dealers* purchases, while considerably larger than they have been for the past several weeks, were exceeded by their sales and aggregate p o rtfo lio s were reduced further to approximately six m illio n s. The bulk of the business was done lo c a lly and in many instances the banks who were s e llin g their own b i l l s were buyers of others. Philadelphia reported that i t s ac ceptance market continued inactive during the past week, prin cip ally because dealers were unable to obtain new b i l l s to meet the good demand* Chicago reported that i t s b i l l market was very q u iet. The demand was f a i r , few b i lls were offered . Dallas reported that there was no demand fo r b i l l s in i t s d is tr ic t and that no offerings were made to the Reserve bank. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' I” Authority ^ >Q • \ | ^ j 4 OPERATIONS FOR ACCCUNT OF UNITED STATES TREASURY Transactions consummated under Treasury authorization during the current statement week consisted of a sale of $100,000 - Fourth 4 1 /4 # Liberty Loan bonds for account Alien Property Custodian. SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES Since member bank excess reserves continued w ell above $200,000,000, there were no purchases of United States Government secu rities for the System Account during the current statement week pursuant to the program adopted at the meeting of the Open Market Policy Conference held in Washington on Juljr 14, 1932. Transactions consummated in the System Account during the week consisted of (1) Exchanges in the market at advantageous rates o f: $ 1 3 ,5 0 0 ,0 0 0 -ls t 3 1 /2 # L/L Bds for $13,500,000-4th 4 1 /4 # L/L Bds 1 3 ,4 8 5 ,0 0 0 -1 1 /8 # C /I due Sept,,15,1932 2 ,5 0 0 ,0 0 0 -T re a s. B i l l s due Nov. 9,1932 tt n tt w 15,1932 16,1932 50 0 ,0 0 0 - " » 2 ,0 0 0 ,0 0 0 -3 # " tt O ct. 15,1932 tt May 2 ,0 0 0 ,0 0 0 -3 1 /8 # " 7 ,4 8 5 ,0 0 0 -2 # C /I 2,1933 t t tt tt 2,1934 1 ,0 0 0 ,0 0 0 -3 # T/N 15,1935 3 ,0 0 0 ,0 0 0 -3 # T/N June tt Aug. 1,1934 9 ,0 0 0 ,0 0 0 -2 1 /8 # " $33,985,000 $33,985,000 (2) Redemption on August 24, 1932 and replacement: Redeemed $47,427,000 maturing Treasury B ills _____________ Purchased in the market $38,677,000 - Treas. B ills due Nov. 5.1 0 0 .00 0 - 2 # C /I " May 2 .6 5 0 .00 0 - 3 # T/N M " 1,000,000 - 2 1 /8 # » ** Aug. $47,427,000 $47,427,000 23, 2, 2, 1, 1932 1933 1934 1934 (3 ) Sale in the market of se cu ritie s acquired under resale agreement to be held u n til such time as permanent replacement could be made: Sold $2,000,000 - 3# c / l due Sept. 15, 193B ____________ Replaced by purchase in the market $1,000,000 - 3 3 /4 # C /I due Mar. 15, 1933 1 ,0 00,000 - 2 1 /8 # T/N " Aug. 1, 1934 $2 , 000, 000 $2 , 000 , 000 The aforementioned transactions did not a ffe c t the amount of tota l holdings in the System Account which remained at $ 1 ,6 3 9 ,6 0 7 ,5 0 0 . The participations by Federal reserve banks and the c la s s ific a tio n o f issues held in the Account at the close of business Wednesday, August 24, 1932, were as follow s: Reproduced from the Unclassified I Declassified Holdings of the National Archives _ r* DECLASSIFIED' Authority ^ >Q • \ b G ^ | * 5 PARTICIPATION BY FEDERAL RESERVE BANKS Boston New York Philadelphia Cleveland Ri chmond ^ Atlanta Chicago S t. Louis Minneapolis Kansas City Dallas San Francisco Totals $ 95,978,500 622,453,000 135,919,000 178,282,000 47,132,500 46,560,000 199,195,000 65,655,500 47,087,000 57,180,500 20,721,000 123,443,500 $ 1 ,6 39,607,500 RECAPITULATION OF HOLDINGS BY MATURITIES Aug. 31 Sept .28 Oct. 11 tt 19 i* 26 Nov. 9 « 16 tt 23 Sept .15 * 15 Oct. 15 Dec, 15 Feb. 1 Mar. 15 May 2 June 15 May 2 Aug. 1 June 15 Aug. 1 June 15 n 15 Oct. 15 1932 - Treas, B ills * « tt 1932 t f t » 1932 tt tt 1932 »t tt 1932 ♦ t tt 1932 « tt 1932 tt tt 1932 1932 - 1 1 /8 # C /I 1932 - 3 # t» 3 1932 i/e# tt 1932 3 1 /4 # T/N 1933 - 3 3 /4 # C /I 1933 - 3 3 /4 # « 1933 - 2 # « 1933 - 1 1/S# t» 1934 - 3 # T/N 1934 - 2 1 /8 # n 1935 - 3 # w 1936 - 3 1 /4 # w 1 9 3 2/47-3 1/2% 1st L/L 1932/47-4 1 /4 % 1 st m 1933/38-4 1/4:% 4th tt 61,029,000 19,500,000 44,8 2 2 ,0 0 0 17,600,000 55,000,000 14,500,000 42,500,000 38,677,000 56,408,000 97,059,500 90 ,011,500 113,697,000 13 ,775,000 156,025,000 117,737,500 107,075,000 75,325,000 74,325,000 78,100,000 30,825,000 59,525,000 23,000,000 253*091,000 ^ 1,639,607,500 Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED' Authority ^ >0 • \ r j \ L. ITEMIZED STATEMENT OF rx . JACTIONS IN GOVERNMENT SECURTi AND BANKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS _______________________FROM AUGUST 18 TO AUGUST 24, 1958, INCLUSIVE________________________ GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT Boston Nrw York Philadelphia Cleveland Richmond Atlanta Chicago S t, Louis '‘Minneapolis Kansas City Dallas San Francisco TOTALS Purchases $ 4,882,500 31,665,500 6,915,000 9,069,500 2,398,500 2,369 ,000 10,134,000 3,339,500 2,394,500 2,909,500 1,053,500 6,281,000 and Sales $ 4,882,500 31,665,500 6,915,000 9,069,500 2,398,500 '2,369,000 10,134,000 5,539,500 2,394,500 2,909,500 1,053,500 6,281,000 $85,412,000 $83,412,000 HOLDINGS IN GOVERNMENT SECURITIES - SALES CONTRACTS Net Change From Previous Week NONE OTHER TRANSACTIONS IN GOVERNMENT SECURITIES Redemptions Purchases Issue Issue and Sales New York $>12 ,575,000 Nov; 25/52 T .B ills (a )$10,000,000 Nov. 23/52 T r .B ills 2,575,000 Aug* 24/32 ” " Atlanta 462,700 Misc. Gov’ 1 Sec • 479,650 Misc. Gov’ t Sec* tt tt tt Chicago (b) 20,000,000 1 0 , 000, 000 " " w 10,000,000 Aug* 24/32 Tr. B ills Minneapolis 977,750 947,200 Misc. Gov’ t Sec. TOTALS $34*013,450 $33,999,850 (a) Sold to F.R.B. Chicago to replace Aug. 84 Treas. B ills taken over temporarily by Chicago on June 29, owing to low reserve position of New York on that date. (b) Includes $10,000*000 Nov. 23/32 Treas. B ills purchased frcm F.R.B. N,Y, p o rtfo lio to replace maturing Aug. 24/32 Treas. B ills acquired from that bank pn June 29, BANKERS ACCEPTANCES (000 Omitted] Maturities Other Holdings and Sales Close Aug. 24/38 Held Held By A llo t Other Holdings E lse Sales in Holdings Purchased ment from B ills Contracts Aug. 24 New York N. Y. where Aug. 17 Own Mkt. $ 0 0 £ 8,343 0 $ 0 Boston $ 0 § 0 i o 10,206 1,166 0 0 0 76 0 New York 1,842 3,175 0 78 0 0 0 43 R. 35 Phila. 3,102 0 0 0 0 0 0 0 Cleve. 1,228 0 1,538 0 1 0 1,539 0 Richmond 1,136 0 6 165 0 43 0 214 Atlanta 0 4,131 495 187 0 0 0 Chicago 682 0 1 ,004 0 24 0 2 0 26 S t. Louis 631 0 0 0 0 0 0 0 Minn. 891 0 0 0 55 0 0 Kan.City 55 860 0 0 21 0 15 0 36 Dallas 0 2,119 115 0 11 1,235 11 " San Fran. JbiS S. $30,886 ^4 j 607 0 $309 0 0208 m #5,064 Totals NOTE: E. indicates Retained in above statement. Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED ' Authority Q •\ 1 MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDED AUGUST 24, 1938 ~ (000 Omitted) 1-30 days 31-60 days 61-90 days 2 1/ 2% P h ila d e lp h ia San F ra n cisco $43 T o t a ls - $54 Over 90-days T otal $43 11 11* $54 ^Purchased a t 3 1 /2 $ . RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES AMD ________ BANKERS ACCEPTANCES DURING WEEK ENDED AUGUST 24, 1932_______ (000 Omitted) Government S e c u r it ie s Purchased Sold Matured T o ta ls Bankers A cceptances T o ta ls #117,426 57,411 60,000 $ 54 0 511 $4570 (Net Change 1 -d a y h old ov er & oth er b i l l s ) $117,480 57,411 60,511 $ 442 0 (Net Change 1-day h o ld o v e r & o th e r b i l l s ) $ $457- $ 15+ 442- MATURITY DISTRIBUTION OF HOLDINGS OF GOVERNMENT SECURITIES AND _________ BANKERS ACCEPTANCES WEEK ENDED AUGUST 24, 1952_________ (000 Om itted) W ithin 15-days 16-30 days 31-60 days 61-90 days 91 d ays6 months Over 6 months T o ta ls Gov»t S e c u r it ie s $65,442 $176,425 $173,934 $128,100 §194,817 $ 1 ,1 1 2 ,3 4 3 $ 1 ,851 ,0 61 B i l l s Purchased 8,111 8,529 8 ,4 4 7 10,346 0___________0 35,433 T o ta ls $73,553 $184,954 $182,381 $138,446 $194,817 $ 1 ,1 1 2 ,3 4 3 $ 1 ,8 8 6 ,4 9 4 Reproduced from the Unclassified I Declassified Holdings of the National Archives “ r- DECLASSIFIED' Authority •> '. Fe d e r a l R e s e r v e B a tD • \b G ^ j | j I n k of N e w Y o r k CONFIDENTIAL August IS , 1952 Mr. E, L. Sraeacl, C h ie f, D iv is io n o f Bank O p eration s, F ed eral Reserve Board, W ashington, D. C. Dear Mr. Sinead: E nclosed i s a r e p o rt o f open market op era tion s f o r the p e rio d from August 11 t o August 17, 1952 in c lu s i v e , to g e th e r w ith data r e c e iv e d from F ed era l reserv e banks. W. B. Mattesen A s s ista n t Deputy Governor E n cl. ink Operations * Reproduced from the Unclassified I DeclaTsified Holdings of the National Archives DECLASSIFIED' Authority >> 'A\ Zt<S. C^ r V . Fe d e r a l R e s e r v e B a *> <V <<£> V <0\J 2 n k of N e w Y o r k CONFIDENTIAL August 19, 1952 Dr. E. A* Goldenweiser, Director, Division of Research and Statistics, Federal Reserve Board, Washington, D. C. Dear Dr* Goldenweiser: Biclosed is a report of open market operations for the period from August 11 to August 17, 1952 inclusive, together with data received from Federal reserve banks. Vei7>truly yours, W. B. Matteson Assistant Deputy Governor . ' ............ i--' Reproduced from the Unclassified I Declassified Holdings of the National Archives - DECLASSIFIED* ■:**■ 7 Authority £ . i ) - ~| | Frr C I R C Fe d e r a l R e s e r v e B a n k of N e w Y o r k :e note ■ initi .n io CONFIDENTIAL August 19, 1952 Dear Governor Meyer: E n closed i s a r e p o r t o f open market o p e ra tio n s f o r th e p e r io d from August 11 t o August 17, 193S i n c lu s iv e , to g e th e r w ith data r e c e iv e d from F e d e ra l r e se r v e banks. V eiy t r u ly y o u r s , W. B. Matteson 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 • \b G Q | L. CONFIDENTIAL REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED AUGUST 17, 1932 H oldin gs o f Earning A ssets o f F ed eral Reserve Banks from August 1 9 , 1951 t o Date (OOO Omitted) -1 9 3 1 Aug. 19 M 26 S e p t .30 O ct. 28 Nov. 25 Dec. 30 -1 9 3 2 Jan. 27 Feb. 24 Mar. 30 Apr. 27 May 25 June 29 J u ly 27 Aug. 10 « 17 TOTAL EARNING ASSETS ^1,118,229 1 ,1 5 6 ,6 3 6 1 ,5 5 7 ,9 7 0 2 ,1 9 8 ,2 3 8 1 ,9 2 5 ,5 0 9 2 ,1 8 5 ,2 1 6 1 ,7 8 7 ,9 1 2 1 ,7 2 3 ,8 6 2 1 ,5 7 8 ,1 4 6 1 ,7 7 3 ,7 4 5 2 ,0 4 0 ,0 5 6 2 ,3 4 0 ,2 6 2 * 2,4 1 2 ,2 3 2 2 ,3 4 7 ,6 7 8 2 ,3 3 5 ,8 1 5 GOVERNMENT SECURITIES O u trigh t S ales C ontracts Purchases i o ft 727,890 0 727,998 3,890 738,455 0 726,659 0 727,101 764,933 38,295 750,216 740,006 860,056 1 ,1 9 1,232 1 ,524,896 1 ,7 9 5 ,2 1 9 * 1 ,841,191 1 ,851,011 1 ,851,046 BANKERS ACCEPTANCES O utright S ales Purchases Contracts $ 694 $1153,934 179,476 1,0 4 2 19,505 449,022 1 ,418 723,262 573 479,225 78,267 248,708 DISCOUNTED $ 230,609 241,718 327,925 716,680 686,401 1 ,0 24,13 3 8 ,5 9 0 6,517 4 ,081 0 0 15,732 1,490 2,1 9 0 0 153,671 126,865 62,281 45,874 38,373 47,787 38,210 36,530 35,890 1,500 550 11,562 0 300 5,752 0 0 0 BILLS 837,639 835,243 633,255 531,824 471,267 469,828 525,390 451,938 442,860 * In clu d es $ 2 4 ,00 0,000 s p e c ia l on e-d a y c e r t i f i c a t e o f indebtedness issu ed by T reasu ry to F ed era l Reserve Bank o f Chicago on June 29. CHANGES ITT EARNING ASSET HOLDINGS DURING fSEK ENDED AUGUST 17, 1952 (000 Omitted) $ 1 ,8 5 1 ,0 4 6 #35+ C" r-i T ota ls BANKERS ACCEPTANCES Balance Net Change ft 0 ft o 2811 ,242 0 35 0 0 160 1,539 84214 104682 826 0 0 0 55 536 3'* 1,235 W) 3 Boston New York P h ila d e lp h ia C leveland Richmond A tla n ta Chicago S t. L ouis M inneapolis Kansas C ity D allas San F ra n cisco N. Y. h old ov ers and o th e r b i l l s GOVERNMENT SECURITIES Net Balance Aug. 17 Change ft 121,228 # o 0 711,292 0 139,325 0 178,282 0 47,1 3 2 85+ 46,692 0 274,810 0 66,156 5 054,697 0 57,267 0 30,721 0 123,444 30,826 5+ $35,890 $640- BILLS DISCOUNTED Net Balance Aug. 17 Change $ 2 ,3 7 0 ft 18,030 90,974 3 ,5 1 6 1 ,3 1 6 63,005 1 ,6 1 8 35,705 134+ 26,989 3,139+ 33,624 51532,693 33+ 12,482 13,677 31+ 85720,367 8 57 16,153 1 ,3 6 6 79,161 $442,860 $ 9 ,0 7 8 - COMMENT ON CHANGES Y/BEK ENDED AUGUST 17, 1952 T otal ea rn in g a s s e ts o f the System showed a d e c lin e o f $11 ,8 6 3 ,0 0 0 f o r the cu rren t statem ent week. The changes, by c l a s s i f i c a t i o n , c o n s is t e d o f d ecrea ses o f $640,000 in o u t r ig h t h o ld in g s o f bankers a cce p ta n ce s, $ 2 ,190 ,0 00 in bankers a c cep ta n ces held under s a le s c o n t r a c ts and §9 ,0 7 8 ,0 0 0 in b i l l s d isco u n te d . Reproduced from the Unclassified I Declassified Holdings of the National Archives ™ DECLASSIFIED' Authority T ^ t Q • \ 1“ | 2 Money Malicet H irin g the p a st statem ent week, e x ce ss r e s e r v e s o f a l l member banks in the cou n try are estim ated to have averaged $ 2 5 1 ,0 0 0 ,0 0 0 , as compared w ith $215,000,000 in the p rev iou s week. This in cre a se r e f l e c t s p r i n c i p a l l y the maintenance during the past week o f the h igh er l e v e l o f r e s e r v e s reached at the end o f the p reced in g p e r io d . The ga in to member bank r e s e r v e balances a r is in g from an in crea se o f $4:1,000,000 in the monetary g o ld stock o f th.s cou n try was l a r g e l 5r o f f - s e t by a r e s t o r a t io n o f Treasury bala n ces at the Reserve Banks tc a more normal fig u r e and by a fu r th e r d e c lin e in member bank borrow ings to § 4 4 3 ,000: 000, a new low l e v e l s in c e la s t September. At the end o f the week, e x c e s s re se rv e s o f the New York money market banks amounted to $12 1 ,0 0 0 ,0 0 0 , whereas on the p reced in g Wed nesday the surplus amounted t o $ 1 1 6 ,0 0 0 ,0 0 0 . Reserve balances o f these banks r o s e $10,000,000 w h ile t h e ir re s e r v e requirem ents advanced $ 5 ,0 0 0 ,0 0 0 . The ga in to the New York money market rep resen ted c h i e f l y payments t o C ity banks o f the p roceed s o f g o ld r e le a s e d from earmark, and o f im ported g o ld . The week’ s gain o f g o ld brought the in cre a se in the c o u n t r y 's g o ld s to ck from the June low to $ 1 4 8,0 00,000. Most o f the g o ld r e le a s e d from earmark was used to p r o v id e funds f o r the r e demption o f $33 ,0 0 0 ,0 0 0 o f P aris-L yon s-M editerranean R a ilroa d Company bonds which were c a lle d f o r payment on August 15. The p r in c ip a l o f f s e t to the m arket’ s gain o f funds through g o ld o p e r a tio n s was through a n et w ithdraw al o f funds by the Treasury. Money r a t e s in the New York market were e n t i r e l y unchanged d u rin g the p ast week. C a ll lo a n s were 2 per cen t on the Exchange and 1 p er cen t in the o u tsid e m arket; time money at 2 - 2 1 /4 p er c e n t; 90 day b i l l s a t 3 /4 p er cen t o f fe r e d ; and fe d e r a l funds a t 1 /8 - 1 /4 p er c e n t. Government Securi ty Market On Thursday and Friday o f the cu rren t r e p o r t in g p e rio d the market f o r U nited S ta tes Government s e c u r i t i e s was fir m . In the lo n g term bonds there was a good demand, p a r t ic u la r ly f o r the is s u e s e l i g i b l e t o secu re cu rren cy , oth er is s u e s moving upwards in sympathy. On Saturday, however, fo llo w in g the A ttorn ey G en era l’ s r u lin g that under the law the cu rren cy p r i v i l e g e c a r r ie d by th ese bonds was lim it e d to three y e a rs , these is s u e s s o ld o f f about two p o in t s . The rem aining is su e s o f L ib e r ty Loan and Treasury Bonds, w ith the e x c e p tio n o f the lo n g 4 1 /4 $ Treasury Bonds o f 1947-52 which advanced l/3 2 n d , showed r e c e s s io n s in p r ic e s o f from 3/32nds to 1 3 /3 2 n d s. In the e a r ly p a r t o f the week the market f o r s h o rt-te rm Governments showed some weakness but d eveloped a good undertone toward the c lo s e o f the p e rio d at w hich time there was an e x c e lle n t demand f o r u:ost is s u e s , p a r t ic u l a r l y the September 1932 m a tu r itie s which were b ein g a cq u ired f o r a p o s s ib le exchange p r iv ile g e they might c a r r y f o r the September 15 o f fe r in g . At the c lo s e o f the cu rre n t r e p o r tin g p e r io d the average y i e l d on the s h o r t-te r m is s u e s , a t d ea lers* o f f e r i n g p r ic e s , was about .71% as compared w ith .7 3 % a t the c lo s e o f the p rev iou s week, and the average p r ic e f o r L ib e r t y Loan bonds was 101*64 and f o r the Treasury Bonds 10 1 ,0 3 , as compared with the p reviou s w eekf s average c lo s in g p r ic e s o f 101.79 and 101*56 r e s p e c t iv e ly . Reproduced from the Unclassified I Declassified Holdings of the National Archives ” I" 1 3 3 3 3 3 2 1 3 2 3 3 DECLASSIFIED Authority ^ | >Q • \ 6 *5 ^ 1 D salers* O ffe r in g P r ic e s a t the C lose of the Current Statement Week and Net Changes from the Close o f the P revious Statement We elf. j tf Approx Net Y ield P r ic e Change Issue 1/8% C e rt. i s n f f d . due S ep t. 15, 1932 m m w tt tt w 15, 1932 1o n — tt tt tt 1 /8 $ tt O ct. 15, 1932 -1 /3 2 100 16/32 • 14$ tt 101 Dec. -1 /3 2 1 /4 $ Treas . N otes 15, 1932 .3 4 $ 3 /4 $ Cert.. o f Ind . « Feb. 101 17 /3 2 1933 1, • 41$ tt w tt 101 29/32 Mar. 15, 1933 3 /4 $ tt -1 /3 2 • 74$ ♦t ft tt 100 28/32 May 2, 1933 1o « •96$ tt tt » +2/32 June 15, 1933 100 14/32 1 /2 $ ft 1 .8 5 $ tt — 101 29/33 May 1o Treas N otes 2, 1934 1 .9 5 $ tt n Aug. +5/32 100 1 0 /3 2 i / e $ tt 1 , 1934 2 .6 3 $ n » June 15, 1935 tt 101 $ 9.9 7$ « tt n 101 +6/32 Aug. 1 /4 $ 1 , 1936 Treasury B i l l s Aug. m a t u r it ie s - 0 .5 0 $ d isc o u n t b id , 0 .2 0 $ tt tt tt tf Sept. 28 & Oct . 11 " - 0.5 0 $ 0 .3 0 $ tt tt tt tt tt O ct. 19 & 26 * - o .e o $ 0 .3 0 $ tt tt tt tt Nov. " - 0 .6 0 $ 0 .3 0 $ C losin g Sale P r ic e ,on the New York S tock Exchange a t the Close o f the Current Statem ent Week and Net Changes from C lose o f the P rev iou s Statement Week Issu e 1st 3 l/2 s * 4 l/4 s 4th 4 1/4 s P r ic e 100 21/32 101 1 0/32 102 30/32 Net Change -1 1 /3 2 - 4 /3 2 Issue T reasury 4 l / 4 s w 4 s tt 3 3 /4 s » 3 3 /8 s tt 3 3 /8 s tt 3 3 /8 s » 3 l/8 s tt 3 s 1947-52 1944-54 1946-56 1945-47 1940-43 1941-43 1946-49 1951-55 Net Change P r ic e 107 7 /32 + l / 3 2 103 30/32 -1 3 /3 2 101 31/32 - 3/32 100 4 /3 2 -1 6 /3 2 100 13/32 - 5 /3 2 100 4 /3 2 -2 0 /3 2 97 23/32 -1 .8 /3 2 96 24/32 - 1 .8 /3 2 Bankers A cceptances D ealers* o f fe r in g s o f u n in d orsed bankers accep ta n ces con tin u ed a t the f o llo w in g r a te s during the cu rren t statesment week: 3 /4 per cen t f o r 3 0 s, 60s and 9 0s; 7 /8 p er cent f o r 120s; and 1 l / 8 per cen t f o r 1 8 0 -day b i l l s . R eports Week Ended Aug. 17 Boston r e p o rte d th at there was a sm all improvement in the d e mand f o r b i l l s in i t s market during the past week, with the supply in s u f f i c i e n t to meet the demand and d e a le r s were o b lig e d to import $ 1 ,6 5 8 ,0 0 0 fr a n t h e ir o f f i c e s in oth er c i t i e s . In New York the b i l l market during the week was t y p ic a l o f the s it u a t io n that has obtain ed f o r the p a st s e v e r a l weeks. A s tro n g demand f o r b i l l s s t i l l continued and w ith a d im in ish in g su p ply, d e a le r s 1 p o r t f o l i o s were fu r th e r reduced t o $ 7 ,6 0 0 ,0 0 0 , the lo w e st on r e c o r d . Of the b i l l s s o ld by the d e a le r s , la r g e l o c a l banks, in an e f f o r t t o on p loy e x ce s s r e s e r v e s , took a v e ry s u b s ta n tia l p o r t io n , w h ile a m oderate amount was purchased by the r e serve bank f o r a p p lic a t io n on f o r e ig n o r d e rs . C om paratively few b i l l s were sold o u t -o f-t o w n . P h ila d e lp h ia r e p o rte d th a t i t s b i l l market was le s s a c t iv e during the p a st week* The demand continued g o o d , w ith the supply d rie d u p. Bankers were h o ld in g b i l l s ra th e r than s e l l i n g . Chicago r e p o rte d th a t the b i l l market in i t s d i s t r i c t continued v e r y q u ie t w ith the demand f a i r . D allas rep o rte d th a t the demand f o r b i l l s was sm all and o f fe r in g s to the r e se r v e bank were n e g l i g i b l e . Reproduced from the Unclassified I Declassified Holdings of the National Archives ~ r* DECLASSIFIED * Authority ^ >Q • \ b G ^ | 4 OPERATIONS FOB ACCOUNT OF UNITED STATES TREASURY y The fo llo w in g tra n s a ctio n during the cu rren t statem ent week: was consummated under Treasury a u th o r iz a tio n S ale o f |300,000 - 4 1/4% Fourth L/L Bonds f o r account o f A lie n P ro p e rty Custodian SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES S in ce member bank e x ce ss r e s e r v e s were w e ll above $200,000,000 and the fo u r weeks o f minimum purchases o f $ 5 ,0 0 0 ,0 0 0 had been com pleted th ere were no pur chases o f U nited S ta te s government s e c u r i t i e s f o r the System Account du rin g the cu rren t statem ent week under a u th o r iz a tio n granted a t the m eeting o f the Open Market P o lic y Conference h e ld in Washington on J u ly 14, 1932. T ra n sa ction s e f f e c t e d in the Account during the week were as f o llo w s : Exchanges in the market at advantageous r a te s o f : $15,000,000 T reas, B i l l s due 8 /3 1 /3 2 1 2 ,0 0 0 ,0 0 0 - 1 1/8% C/1* 9 /1 5 /3 2 2, 000,000 - 3 % " ” 9 /1 5 /3 2 2,0 0 0 ,0 0 0 - 3 1/8% " 1 0 /1 5 /3 2 fo r #31 ,0 0 0 ,0 0 0 $ 2 ,0 0 0 ,0 0 0 Treas. B i l l s due 1 0 /1 1 /3 2 » tt tt 2 ,0 0 0 ,0 0 0 1 0 /1 9 /3 2 tt tt tt 7 ,0 0 0 ,0 0 0 1 1 / 9 /3 2 tt 5 0 0 ,0 0 0 - 3 3/4% C /I 2 / 1 /3 3 m tt % 1 ,0 0 0 s000- 2 5 / 2 /3 3 tt 6 ,0 0 0 ,0 0 0 - 1 1/2% tt 6 /1 5 /3 3 t» 1 ,0 0 0 ,0 0 0 - 3 % T/N 5 / 2 /3 4 tt 6 ,0 0 0 ,0 0 0 - 2 1/8% n 8 / 1 /3 4 tt % tt 6 /1 5 /3 5 3 ,0 0 0 ,0 0 0 - 3 tt 8 / 1 /3 6 2 }5 0 0 ,0 0 0 - 3 1/4% tt $ 3 1 ,00 0,000 Hedemption on August 17, 1932 $52 ,6 0 0 ,0 0 0 - m aturing T reasury B i l l s R eplaced by purchase in the market $ 4 ,6 0 0 ,0 0 0 4 2 ,000 ,0 00 1 ,5 0 0 ,0 0 0 1 ,0 0 0 ,0 0 0 1 ,5 0 0 ,0 0 0 1 ,5 0 0 ,0 0 0 500,000 - T reas. B i l l s due 1 0 /1 9 /3 2 tt 1 1 /1 6 /3 2 it tt tt 3 /1 5 /3 3 3 3/4% C /I w 5 / 2 /3 3 2 % * tt 5 / S/34 3 % T/N t» 8 / 1 /3 4 2 1/8% " tt 6 /1 5 /3 5 3 % " #52 ,60 0,000 S a les in the market on August 11» 15 and 1 6 , 1932 o f $ 3 ,0 0 0 ,0 0 0 - 3 % C /I due 9 /1 5 /3 2 ( in accordan ce w ith the terms o f c o n t r a c t under which these c e r t i f i c a t e s were purchased on Ju ly 20, 1932) w hich was r e p la c e d by purchase in the market o f #1,000 ,0 00 - 1 1/2% C /I 2 ,0 0 0 ,0 0 0 - 2 1/8% " $ 3 ,0 0 0 ,0 0 0 due 6 /1 5 /3 3 w 8 / 1 /3 4 Reproduced from the Unclassified / Declassified Holdings of the National A r c h i v e ^ ^ ^ ^ ^ " " * " " " DECLASSIFIED * r Authority ^ >Q • \ 6*5 d | j j 5 These transactions did not a ffe c t the amount of to ta l holdings in the System Account which remained at $ 1 ,6 3 9 ,6 0 7 ,5 0 0 . The participations by Federal reserve banks and the c la ssific a tio n of issues held in the Account at the close of business Wednesday, August 17, 1932, were as follow s: PARTICIPATION BY FEDERAL RESERVE BANKS Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St. Louis Minneapolis Kansas City Dallas San Francisco Totals $ 95,978,500 622,453,000 135,919,000 178,282,000 47,132,500 46,560,000 199,195,000 65,655,500 47,087,000 57,180,500 20,721,000 123,443,500 $1,639,607,500 RECAPITULATION OF HOLDINGS BY MATURITIES Aug. 24, tt 311 Sept .2 8 , Oct. 1 1 , «* 19, tt 26, Nov. 9, tt 16, Sept*15, tt 15, Oct. 15, Dec. 15, Feb. 1 , Mar. 15, May 2, June 15, May 2, Aug. 1 , June 15, Aug. 1 , June 15, n 15, Oct. 15, 1932 Treas. B ills % 47 ,427,000 tt tt 61,029,000 193B tt tt 1932 19,500,000 tt tt 1932 44,822,000 tt tt 1932 17,600,000 tt n 1932 55,000,000 Tf tt 1932 1 2 ,000,000 tt tt 1932 42,000,000 1932 - 1 1/8 $ C /I 69,893,000 w 1932 - 3 101,059,500 i 1932 - 3 1/8 $ tt 92,011,500 1932 - 3 1 /4 $ T/N 113,697,000 1933 - 3 3 /4 $ C /I 13,775 >000 1933 - 3 3 /4 $ tt 155,025,000 1933 - 2 105,152,500 $ tt 1933 - 1 1/2 $ tt 107,075,000 1934 - 3 71,675,000 $ T/N 1934 - 2 1/8 $ tt 63,325,000 1935 - 3 81,100,000 $ tt 1936 - 3 1 /4 $ « 30,825,000 1932-47 - 3 1 /2 # 1st L/L 73,025* 000 tt 1932-47 - 4 1 /4 % » 83,000v000 tt 1933-38 - -4 1 /4 $ 4th 239,591*000 | 1,639,607,500 Reproduced from the Unclassified I Declassified Holdings of the National Archives j DECLASSIFIED' Authority ^ » Q ■ \ r 1 ITEMIZED STATEMENT OF r SACTIONS IN GOVERNMENT SECURIr AMD BANKERS ACCEPTANCES AFFECTING TmE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS ________________________FROM AUGUST 11 TO AUGUST 17, 1932, IMCLtTSIVE_______________________ GOVERMONT SECURITIES - SYSTEM INVESTMENT ACCOUNT Redemption Purchases end S ales Boston $ 5 ,0 6 9 .5 0 0 $ 5 ,0 6 9 ,5 0 0 32,876,000 New York 3 2 ,876 ,0 00 7 ,1 7 9 ,5 0 0 7 ,1 7 9 ,5 0 0 P h ila d e lp h ia 9 ,4 1 6 ,0 0 0 9 ,4 1 6 ,0 0 0 C leveland 2 ,4 8 9 ,5 0 0 2 ,4 8 9 ,5 0 0 Ri chmond 2 ,4 5 9 ,5 0 0 2 ,4 5 9 ,5 0 0 A tla n ta 10,520 ,0 00 1 0 ,5 2 0 ,0 0 0 Chicago 5 ,4 6 8 ,5 0 0 3 ,4 68,50 0 S t. L ou is 2 ,4 8 7 ,5 0 0 2,4 8 7 ,5 0 0 M inneapolis 3 ,020,00 0 3 ,0 2 0 ,0 0 0 Kansas C ity 1 ,0 9 4 ,5 0 0 1 ,0 9 4 ,5 0 0 D allas 6 ,5 1 9 s500 6 ,5 1 9 ,5 0 0 San F ra n cisco T o ta ls $86,600,000 | 86,600,000 HOLDINGS IN GOVERNMENT SECURITIES - SALES CONTRACTS Net Change From P rev iou s Week NONE Boston New York A tl ant a M inneapolis T ota ls OTHER TRANSACTIONS IN GOVERNMENT SECURITIES Redemption Purchases Issue and S a les Issue fa ) $10 ,0 0 0 ,0 0 0 Nov. 1 6 /3 2 Tr. B i l l s $ 1 0 ,00 0,000 Aug. 17/32 Tr. B i l l s 1 0 ,0 0 0 ,0 0 0 " 16 /3 2 w " (b ) 10,000 ,0 00 Nov. 16/32 " " 1 ,0 7 7 ,1 0 0 M isc. Gov*t S ec. 992,750 M isc. Govf t S ec. 1 ,0 6 9 ,2 0 0 " " " 1 ,1 1 7 ,9 5 0 ” * i* $22 ,1 4 6 ,3 0 0 $ 22 ,11 0,700 (a ) Purchased from F .R .B . New York p o r t f o l i o to r e p la c e .maturing Aug. 1 7/32 T r. B i l l s a cq u ired from th at bank on June 29. (b ) S old t o F .R .B . Boston f o r replacem ent o f Aug. 1 7/32 T r. B i l l s taken o v e r tem p o r a r ily by B oston on June 29, owing to low re s e r v e p o s it io n o f New York on that d ate. BANKERS ACCEPTANCES 00C Omitted) M a tu ritie s Other H oldings and S a les Close Aug. 1 ? , 1932 By A l l o t - Held Held S ales Other E ls e H oldings in H oldings Purchased ment from C on tracts B ills Own Mkt. New York N. Y. where Aug. 17 Aug* 10 $ 0 $ 0 0 $ 0 # 0 Boston 0 1 0 $ 2 ,3 4 3 New York 101 R. 382 0 0 1 ,5 2 3 1,242 10,206 0 35 0 0 0 0 35 0 F h ila . 3,175 0 0 0 0 0 C lev e. 0 0 5,102 Richmond 1,699 125 " 0 0 285 1,539 0 1 ,2 2 8 298 0 0 214 81 0 1 ,1 3 6 A tlan ta 3 786 0 0 104 Chicago 0 682 4,131 0 0 34 0 S t.L o u is 0 8 26 0 1 ,0 0 4 Minn. 0 0 0 0 0 0 0 631 0 K an.C ity 0 0 55 0 0 891 55 7 * 0 0 41 36 0 860 D allas 12 San Fran. 1,238 0 158 1,235 155 " 0 2,119 0 $388 0 $405 $628 $30,826 T o ta ls $5,709 §5,064 0 NOTE: R. in d ic a t e s R etained in above statem ent. Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED ' Authority 0 • | L . (000 OmittedJ 1 -30 days 1 1/Bf0 New York Richmond D allas San F ra n cis co T o ta ls 32L-60 days 61-90 days 1 1 /2 1o Oire r 90-days - Total #101 0 3 51** $ 0 100 0 0 0 0 0 0 #101 125 7 _ 155 #155 $100 0 #388 V fo $ 0 25 4* 104* $133 *Purchased at 1# **Purchased a t 1 to 3 l / S $ RECAPITULATION OF RJRCHASES IND SALES OF GOVERNMENT SEaJRITIES AND BANKERS ACCEPTANCES UJRING WEEK ENDED AUGUST 17, 1932 (000 Omitted) Government Securi t ie s Purchased Sold Matured T o ta ls #108,746 46,111 62,600 # 35+ Bankers A cceptances T o ta ls $ 388 0 1,0 3 3 # 645 5+(Net Change 1-d ay h o ld o v e r & o th e r b i l l s ) # #109,134 46,111 63,633 $ 610 5+(Net Change 1-day h o ld o v e r & oth er b i l l s ) $ 640- 605- MATURITY DISTRIBUTION OF HOLDxtfGb OF GOVERNivlM'1! SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED AUGUST 17, 1932 (000 Omitted) W ithin 15-days Gov’ t S e c u r it ie s B i l l s Purchased T ota ls 16-30 days 31-60 days 61-90 days $125,442 8,3 5 3 $203,911 10,455 $158,333 10,532 $90*600 6,550 #187,578 $1 ,0 8 5 ,1 8 2 $1,851,046 0_________ 0____________35,890 #133,795 #214,366 #168,865 $97 ,15 0 $187,578 $ 1 ,0 8 5 ,1 8 2 #1,886,935 91 days6 months Over 6 months T ota ls Reproduced from the Unclass f ed I Declassified Holdings of the National Archives DECLASSIFIED' Authority n, < r> & aM- \ \\\ & Fe d e r a l R e s e r v e B a n •■■wj of k N e w Yo r k CONFIDENTIAL August 12, 1952 Dr. E. A. Goldenweiser, Director, Division of Research and Statistics, Federal Reserve Board, Washington, D. C. Dear Dr. Goldenweiser: Bi closed is a report of open market operations for the period from August 4 to August 10, 1932 inclu sive, together with data received from Federal reserve banks. Veiy truly yours, V. B. Matteson Assistant Deputy Governor < Reproduced from the Unclassified I Declassified Holdings of the National Archives ^ _________ [“ ->■ ', DECLASSIFIED' Authority ^ . Fe d e r a l R e s e r v e B a >D • \ b G ^ | __ I | i n k of N e w Y o r k CONFIDENTIAL August 12, 1952 Mr. E. L. Smead, Chief, Division o f Bank Operations, Federal Reserve Board, Washington, D. C. Dear Mr. Smeads Enclosed i s a report o f open market opera tions for the period from August 4 to August 10, 1932 in clu siv e , together with data received from Federal reserve banks. Very tru ly yours, W. B. Matteson A ssistant Deputy Governor Encl. Reproduced from the Unclassified / Declassified Holdings of the National Archives declas S fied f4 , 7*. '* * | Authority ■* .. CONFIDENTIAL August 12, 1932 Dear Governor Meyer: Enclosed is a report of open market operations for the period from August 4 to August 10, 1932 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 ~ r- DECLASSIFIED Authority ^ - i Q • | confidential REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENIED AUGUST 10, 1932 H oldings o f Earning A ssets o f F ederal Reserve Banks from August 12, 1931 to Date (000 Ctoitted) -1931 Aug. 12 M 26 Sept. 30 O ct. 28 Nov. 25 Dec. 30 -193227 Jan. Feb. 24 Mar. 30 Apr. 27 25 May June 29 J u ly 27 Aug. 3 10 Aug. TOTAL EARNING ASSETS |1#064,781 1 ,1 5 6 ,6 3 6 .1 ,5 5 7 ,9 7 0 2 ,1 9 8 ,2 3 8 1 ,9 2 5 ,5 0 9 2 ,1 8 5 ,2 1 6 GOVERNMENT SECURITIES O utright S ales C on tracts Purchases $ 727,961 § 0 l 727,998 0 3,890 738,455 726,659 0 727,101 0 38,295 764*933 1 ,7 8 7 ,9 1 2 1 ,7 2 3 ,8 6 2 1 ,5 7 8 ,1 4 6 1 ,7 7 3 ,7 4 5 2 ,0 4 0 ,0 5 6 2 ,3 4 0 ,2 6 2 * 2,4 1 2 ,2 3 2 2,3 8 0 ,0 3 9 2 ,3 4 7 ,6 7 8 750,216 740,006 860,056 1 ,1 9 1 ,2 3 2 1 ,5 2 4 ,8 9 6 1 ,7 9 5 ,2 1 9 * 1 ,8 4 1 ,1 9 1 1 ,8 4 6 ,1 3 5 1 ,8 5 1 ,0 1 1 1,500 550 11,56B 0 300 5,752 0 0 0 BANKERS ACCEPTANCES O utright S a les Purchases C on tracts | Ib 0 ,5 9 0 ^35,148 179,476 1,042 449,022 19,505 1,418 723,262 479,225 573 248,708 78,267 153,571 126,865 62,281 45,874 38,373 47,787 38,210 37,011 36,530 BILLS DISCOUNTED | 194,980 241,718 327,925 716,680 686,401 1 ,0 2 4 ,1 3 3 837,639 835,243 633,255 531,824 471,267 469,828 525,390 487,183 451,938 8,5 9 0 6,517 4,081 0 0 15,732 1,490 3,682 2,190 ^In clu d es $ 2 4 ,00 0,000 s p e c ia l on e-d a y c e r t i f i c a t e o f indebtedness is su e d by Treasury to F ed eral Reserve Bank o f Chicago on June 29. CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS) ____________ DURING WEEK ENDED AUGUST 10, 1932 __________ (000 Omitted) Boston New York P h ila d e lp h ia Cleveland Ri chmond A tla n ta Chicago S t. L ou is M inneapolis Kansas C ity D allas San F ra n cisco N. Y. h o ld o v e rs and o th e r b i l l s T ota ls GOVERNMENT SECURITIES Balance Net Chang© Aug. 10 $ 0 $ 121,228 711,292 3,000+ 388+ 139,325 178,282 525+ 47,133 0 8946,607 274,810 0 66,156 213+ 54,746 114+ 57,267 300+ 0 30,721 123,444 425+ #1,851 ,0 11 $4,876+ BANKERS ACCEPTANCES Net Balance Aug.10 Change 3 0 # 0 212.1,523 35 30+ 0 0 178 1,699 17298 786 5634 50 0 55 0 41 12197 1 ,238 30,821 166+ $36,530 $481- BILLS DISCOUNTED Balance Net Aug. 10 Change $ 488$ 20,400 94,490 4 ,1 4 5 5 ,4 9 5 64,321 37,323 1 ,0 6 9 26,855 1 ,1 1 5 5 ,2 9 8 30,485 33,208 2 ,6 0 3 12,449 1 ,2 2 9 29813,646 21,224 2 ,4 1 1 17,010 1 ,5 0 1 80,527 9 ,5 9 3 - $451,938 $ 3 5 ,2 4 5 - COMMENT ON CHANGES YflSSK ENIED AUGUST 10, 1952 T ota l earning a s s e ts o f' tils System showed a decrea se o f $32 ,36 1,000 f o r the curren t statem ent week. The changes, by c l a s s i f i c a t i o n , c o n s is t e d of an in cre a s e o f $ 4 ,8 7 6 ,0 0 0 in o u t r ig h t h o ld in g s o f government s e c u r i t i e s , and d ecrea ses o f $481,000 in o u t r ig h t h o ld in g s o f bankers a cce p ta n ce s, .$>1,492,000 in bankers a ccep ta n ces h eld under s a le s c o n tr a c ts and $35*245,000 in b i l l s d iscou n ted . Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority tQ • \ ^ 1 j | 2 Money Market E xcess r e s e r v e s o f a l l member banks in the United S tates are estim ated to have averaged about $215,000,000 during the p ast statem ent week, or s l i g h t l y le s s than the average f o r the p rev iou s week. The ex c e s s on Wednesday was $2 5 5 ,0 0 0 ,0 0 0 , as compared w ith $205,000,000 on the p re v io u s r e p o r tin g d a te. The in c r e a s e r e f l e c t e d to a la rg e ex ten t a temporary re d u ctio n in the T r e a s u r y bala n ces m aintained at the Reserve Banks to the low fig u r e o f $ 2 6 ,0 0 0 ,0 0 0 , due to la r g e payments f o r account o f the R e co n s tru ctio n Finance C orp ora tion . A con tin u ed ga in o f g o ld and a retu rn flo w o f cu rren cy to the Reserve Banks a lso in crea sed member bank r e se r v e b a la n ces by a somewhat la r g e r amount than they were r e duced as a r e s u lt o f the repayment o f member bank borrowings o u ts id e o f New York C ity , The excess r e se rv e s o f the New York C ity money market banks were c o n s id e r a b ly in crea sed during the week, re s e r v e balances r i s i n g $ 6 1 ,0 0 0 ,0 0 0 , w h ile re se rv e requirem ents in crea sed o n ly $3,000,000* The surplu s r e s e r v e s h eld on Wednesday, the 10th, a t $ 1 1 6 ,0 0 0 ,0 0 0 , consequent l y were tw ice as la rg e as a week e a r l i e r . F a ir ly s iz a b le ga in s occu rred through an in flo w o f funds frcm o th e r d i s t r i c t s , re p re s e n tin g a fa v o r a b le balance o f w ire t r a n s fe r s and c o l l e c t i o n s over payments to oth er d is t r i c t s f o r Government s e c u r i t i e s d e liv e r e d in New York; through net Treasury disbursem ents in t h is market f o r the R e co n s tru ctio n Finance C orp ora tion ; and through g o ld im ports and r e le a s e s o f g o ld from earmark. New York bank r e s e r v e s were a ls o in crea sed by sm a ller amounts due to cu rren cy d e p o s its at the Reserve Bank and tho purchase o f an a d d it io n a l $ 5 ,000 ,0 00 o f Government s e c u r i t i e s f o r the System S p ecia l Investm ent. Government S e c u r ity Market The p r e v a ilin g q u ota tion s f o r prime open market commercial paper have d e c lin e d to a range o f 2 - 2 1 /4 per ce n t, a d ecrease o f about 1 /4 per cen t from a week ago. The d e a le rs vho i n i t i a t e d the low er q u o ta tio n s secu red a somewhat la r g e r su p ply o f peper which has been q u ic k ly moved due to the good investm ent demand f o r paper on the p art o f the banks. F ederal funds are now quoted at 1 /8 - 1 /4 p er c e n t, or s l i g h t l y low er than on the p reced in g Thursday. Other money r a te s have shown no v a r ia t io n : c a l l money at 2 per cent on the Exchange and 1 per cent in the o u ts id e m arket, and time money n om in ally a t 1 1 /4 - 1 1 / 2 per een t. The market f o r U nited S ta tes government s e c u r it ie s was q u ite a c t iv e during the e n t ir e week. The in crea sed amount o f tra d in g in the lo n g -te rm Treasury Bonds was l a r g e l y con fin ed to the is s u e s which can be used to secu re n a tio n a l bank n o te s . These is su e s advanced from 18/32nds t o 1 .3 /3 2 n d s over the p re v io u s w eek 's p r ic e s and e s ta b lis h e d new high q u o ta tio n s f o r the yea r. A ll is s u e s o f L ib e r t y Loan bonds d e c lin e d f r a c t i o n a l l y . There was c o n s id e r a b le liq u id a t io n in the new is s u e s o f tw o-year and fo u r -y e a r Treasury n o te s , with the r e s u lt that p r i c e s r e ceded from 2/32nds t o 7/32nds during the week. The new 2 1/8% tw o-year n o te s are now s e l l i n g at a premium o f 7/o2n ds and the 3 1/4% fo u r -y e a r n otes at a premium of 26/32n d s. At the c lo s e o f the cu rren t r e p o r t in g p e r io d the average y ie ld on the s h o rt-te im is s u e s , at d e a le r s 1 o f f e r i n g p r i c e s , was about .7 3f0, as ccmpared w ith .66% at the c l o s e o f the p re v io u s week, and the average p r ic e f o r the L ib e r t y Loan bonds was 101.79 and f o r the Treasury Bonds 1 0 1 .5 6 , as compared w ith the p reviou s w eek 's average c lo s in g p r ic e s o f 101.96 and 1 0 0 .9 1 , r e s p e c t iv e ly . Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority 0 • \h G ^ | Dealers* O ffe r in g P r ic e s a t the Close o f the Current Statement Week ___ and Net Changes from the Close o f the P rev ious S tatement Week 1 3 3 3 3 3 2 1 3 2 3 3 1 / 8 0 1o Issu e C ert. o f Ind. due S ept. tt tt »t tt » 1 5 , 1 9 3 2 1 5 , 1 9 3 2 P r ic e 1 0 0 6/32 1 0 0 12/32 1 0 0 17/32 1 0 1 1 /3 2 1 0 1 17/32 1 0 1 30/32 1 0 0 28/32 1 0 0 12/32 1 0 1 29/32 1 0 0 7/32 Net Change - 2 / 3 2 - 3 / 3 2 O ct. 1 5 , 1 9 3 2 tt Dec. 1 5 , 1 9 3 2 - 3 / 3 2 1 / 4 # Treas. N otes - 7 / 3 2 Feb. C e r t. o f Ind. « 3 / 4 # If 1 9 3 3 tt tt tt - 2 / 3 2 Mar. 1 5 , 1 9 3 3 3 /4 # tt « May n w - 4 / 3 2 1 9 3 3 2 , fo « » June 1 5 , 1 9 3 3 tt M M - 4 / 3 2 1 / 2 # « 3 / 3 2 1 9 3 4 May N otes 2 , 1o Treaa* tt n 2 / 3 2 Aug. 1 9 3 4 1 /8 # t t 1 , tt tt tt 1 0 1 June 1 5 , 1 9 3 5 1 / 3 2 1o t* w 1 0 0 1 9 3 6 26/32 7 / 3 2 Aug. 1/4:% t t 1 , Treasury B i l l s - August m a tu r itie s - 0 .5 0 $ d isco u n t b id , 0.20% asked " " S ep t. 28 and O ct. 11 m a t u r it ie s -0 .5 0 # ” ” 0 .3 0 # n w w O ct. 19, O ct. 26 and Nov. 9 m aturi t i e s-0.60$ ” « 0 .3 0 # " 1 / 8 # tt w tt t» Approx. Y ie ld • .0 9 # .2 2 # .4 7 # .4 7 # .7 8 # 1 .0 4 # 1 .8 6 # 2 .0 0 # 2 .6 3 # 3 .0 3 # C lo sin g S ale P r ic e on the New York Stock Exchange a t the Close o f the Current Statement Week and Net Changes from C lose o f the P rev iou s Statement Week Issu e 1st 3 l /2 s " 4 1 /4 s 4th 4 l / 4 s Bankers A cceptances R eports Week Ended Aug. 10 P r ic e 101 101 14/32 102 30/32 Net Change - 4 /3 2 -1 0 /3 2 - 2 /32 Issu e T reasury 4 i / 4 s * 4 s « 3 3 /4 s »* 3 3 /8 s " 3 3 /8 s » 3 3 /8 s » 3 l/8 s " 3 s 1947-52 1944-54 1946-56 1943-47 1940-43 1941-43 1946-49 1951-55 PrJ.ce 107 6/32 104 11/32 102 2 /3 2 100 20/32 100 1 8/32 100 24/32 98 31/32 98 Net ChaJige +16/32 +19/32 + 2 /3 2 +18/32 +18/32 +24/32 +1*3/32 + 1 .3 /3 2 Dealers* o f f e r i n g s o f u n in d orsed bankers accep ta n ces co n tin u ed at the f o llo w in g r a t e s during the cu rren t statem ent week: 3 /4 p er cent f o r 30*s , i5 0*s and 9 0 *s; 7 /8 f o r 120* s , and 1 1 /8 per cent f o r 1 80 -d ay b i l l s . Boston r e p o rte d th a t the supply o f b i l l s in i t s d i s t r i c t de crea sed c o n s id e r a b ly d u rin g the p a st p e r io d , w ith the demand f a i r . S a les o f $ 3 ,7 8 2 ,0 0 0 r e f l e c t e d c h i e f l y the tr a n s a c tio n o f one l o c a l d e a le r . In New York the p a st week showed no sla ck e n in g in the demand f o r bankers a cce p ta n ce s, but the .supply o f new b i l l s to the market was in such sm all volume that d e a le r s were n o t in a p o s it io n t o make sub s t a n t ia l o f fe r in g s with the r e s u lt th a t t h e ir purchases and s a le s were m oderate in amount. D ealers* p o r t f o l i o s were reduced to about $12 ,00 0,000 a t the end o f the week. P h ila d e lp h ia r e p o rte d th a t i t s a ccep ta n ces market was a c t iv e . There was some improvement in the supply o f new b i l l s , the demand con tin u in g good f o r b i l l s o f a l l m a t u r it ie s . Chicago r e p o rte d th a t b i l l s were s ca rc e in i t s d i s t r i c t w ith the de mand f a i r . D a lla s re p o rte d th a t th ere was a sm all demand f o r b i l l s and that no o f f e r in g s were made to the r e se r v e bank. Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED ' Authority D ■ | 4 operations for account of united s tates treasury There were no purchases or s a le s o f government s e c u r it ie s f o r account o f the U nited S ta tes Treasury during the cu rren t statem ent week. SYSTEM SPECIAL DIVESTMENT ACCOUNT - GOVERN!,5TNT SECURITIES Purchases o f U nited S ta tes government s e c u r i t i e s f o r the System Account during the cu rren t statem ent week, under a u th o r iz a tio n granted a t the m eeting o f the Open Market P o lic y C onference h eld in Washington on J u ly 14, 1932, amounted to $ 5 ,0 0 0 ,0 0 0 , as f o llo w s : $ 5 ,0 0 0 ,0 0 0 aggregate smount 2 1 /8 $ Treasury Notes due August 1, 1954 A ll o f th ese p urchases were made in the New York market. Other tr a n s a c tio n s e f fe c t e d during the week c o n s is te d o f : Exchanges in the market a t advantageous ra te s o f $4 ,0 0 0 ,0 0 0 - 1 1 /8 $ C /I due S ep t. 15, 1932 1 ,0 0 0 ,0 0 0 -3 $ ** " " 15, 1932 f o r $ 5 ,0 0 0 ,0 0 0 -2 1/8% T/N due 8 /1 /3 4 Redemption on August 10 $16,000,000 - m aturing T reasury B i l l s R eplaced by purchase in the market $ 5,0 0 0 ,0 0 0 - T reas. B i l l s due 1 1 / 9/32 5.0 0 0 .0 0 0 - 1 1 /2 $ C /I " 6 /1 5 /3 3 6 .0 0 0 .0 0 0 - 2 1 /8 $ T/N " 8 / 1 /3 4 $16 ,00 0,000 S a les in the market on August 4 and 9 o f $16 ,00 0,000 - 3 % C /I due 9 /1 5 /3 2 ( in accordan ce w ith the terms o f c o n tr a c t under which th ese c e r t i f i c a t e s were purchased on J u ly 8 and 20,1932) w hich was r e p la c e d by purchase in the market o f $ 4 ,0 0 0 ,0 0 0 - T reas. B i l l s due 9 /2 8 /5 2 4 .5 0 0 .0 0 0 - 3 1 /4 $ T/N " 8 / l/3 6 7 .5 0 0 .0 0 0 - 2 1 /8 $ « " 8 / 1 /3 4 $16 ,00 0,000 The a d d it io n a l purchases during the week o f $ 5 ,0 0 0 ,0 0 0 government s e c u r i t i e s in crea sed the amount o f t o t a l h old in g s in the account t o $ 1 ,6 3 9 ,6 0 7 ,5 0 0 . The p a r t ic ip a t io n s by F ederal r e s e r v e banks and the c l a s s i f i c a t i o n o f is s u e s h e ld in the Account at the C lose o f bu sin ess Wednesday, August 10, 1932, were as f o llo w s : Reproduced from the Unclassified I Declassified Holdings of the National Archives T o ta ls $ 9 5 ,9 7 8 ,5 0 0 6 2 2 ,45 3,000 135 ,91 9,000 178 ,28 2,000 4 7 ,1 3 2 ,5 0 0 4 6 ,5 6 0 ,0 0 0 199,195,000 6 5 ,655 ,5 00 4 7 , 087 , 000 5 7 ,180 ,5 00 20 ,721 ,0 00 12 3 ,44 3,500 $1 ,6 3 9 ,6 0 7 ,5 0 0 Aug. 1 7 , 24, tt 31, Sopt .2 8 , O ct. 11. tt 19, u 26, Nov. 9 , Sept .1 5 , n 15, O ct. 15, Dac. 15, Fob. 1 , Mar. 15, May 2 , June 15, May 2 , Aug. 1, June 15, Aug. 1 , June 15, V 15, Oct. 15, tt 1932 T reas. B i l l s * w « 1932 n tt 1932 ti tt 1932 « w 1932 t» 1932 tt « 1932 tt tt 1932 1932-1 C /I 1932-3 % tt 1932-3 1 /8 % tt 1932-3 1/4% T/N 1933-3 3/4% C /I 1933-3 3/4% tt 1933-2 % tt 1933-1 1/2% tt 1934-3 % T/N 1934-2 1/8% tt 1935-3 % tt 1936-3 1/4% w 1932-47-3 1/2% 1 s t L/L tt 19 3 2-47-4 1/4% w 1933-38-4 1/4% 4th w 00 Boston New York P h ila d e lp h ia Cl 3VGland Richmond A tlan ta Chicago S t. Louis M inneapolis Kansas C ity D allas San F ra n cisco RECAPITULATION OF FOLDINGS BY MATURITIES f—1 PARTICIPATION BY FEDERAL RESERVE BANKS 5 2,600 ,0 00 4 7 ,4 2 7 ,0 0 0 76 ,0 2 9 ,0 0 0 1 9 ,5 0 0 ,0 0 0 42 ,8 2 2 ,0 0 0 1 1 ,0 0 0 ,0 0 0 5 5 ,0 0 0 ,0 0 0 5 ,0 0 0 ,0 0 0 8 1 ,8 9 3 ,0 0 0 106,059,500 9 4 ,0 1 1 ,5 0 0 1 1 3 ,6 9 7 ,0 0 0 13 ,2 7 5 ,0 0 0 1 5 3 ,52 5,000 103 ,15 2,500 100,075,000 69,175 ,0 00 53,825 ,0 00 7 7 ,6 0 0 ,0 0 0 2 8 ,3 2 5 ,0 0 0 7 3,025 ,0 00 23,000 ,0 00 239,591,000 $ 1 ,6 3 9 ,6 0 7 ,5 0 0 Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED * Authority Q •\ | ‘'ITEMIZED STATEMENT CF TR&wACTIONS IN GOVERNMENT SECURITL&o AND BANKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF ALL JEEE3AL RESERVE BANES _______________________FROM AUGUST 4 TO AUGUST 10, 1953, JSCLTJSIVE____________________ Boston New York P h ila d e lp h ia C leveland Richmond A tla n ta Chicago S t. L ou is M inneapolis Kansas C ity D allas San F r a n cis c o T ota ls GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT Redemption Adjustments in Part ic i p e:t i on s Purchases and S a les $ 2 ,1 6 6 ,0 0 0 $ 2 ,1 6 6 ,0 0 0 t 0 1 5 0 ,0 0 0 14,041 ,5 00 17,191 ,5 00 3 ,4 5 5 ,0 0 0 3 ,0 6 7 ,5 0 0 0 0 4 ,0 2 3 ,5 0 0 4 ,5 4 8 ,5 0 0 0 1 ,0 6 4 ,0 0 0 1 ,0 6 4 ,0 0 0 0 1 ,0 5 1 ,5 0 0 1,0 5 1 ,5 0 0 0 4 ,4 9 7 ,5 0 0 4 ,4 9 7 ,5 0 0 0 1 ,6 9 4 ,0 0 0 1 ,4 8 1 ,5 0 0 1 ,0 6 3 ,5 0 0 0 1,2 1 3 ,5 0 0 1 ,2 9 0 ,0 0 0 150,000+ * 1 ,4 4 0 ,0 0 0 467,500 467,500 0 0 3 ,2 1 1 ,0 0 0 2,7 8 6 ,0 0 0 Net In crease 1 'o 3 ,0 0 0 ,0 0 0 387,500 525,000 0 0 0 212,500 150,000 300,000 0 425,000 $150,000 A dj. $ 5 ,000 ,0 00 |42,000,000 $37 ,000 , 000 *R epresents allotm en t on Aug. 4 o f share o f $ 5 ,0 0 0 ,0 0 0 purchases made on Aug. 3* HOLDINGS IN GOVERNMENT SECURITIES - (SALES CONTRACTS) * * Net Change From P reviou s Yveek NONE OTHER TRANSACTIONS IN GOVERNMENT SECURITIES - (EXCLUDED SALES CONTRACTS) Redemption Issue Issu e and Sales Purchases $ 5 s000,000 Aug* .B ills Boston (a ) ^ 6 , 0 0 0 > 0 0 0 Nov. 9 / 5 2 T re a s.B ills (b ) 6 ,0 00,00 0 Nov. 9 /3 2 »* ♦» New York 6 ,0 0 0 ,0 0 0 ” 9 / 3 2 ” * A tl an ta M inneapolis T o ta ls 5 5 6 ,4 5 0 1 ,1 0 5 ,4 0 0 Misc. Gov*t Sec. ” * » #13,659,850 644,750 M isc. Gov’ t Sec 1 ,1 5 9 ,0 0 0 ” " « |13,785,750 (a ) Purchased from F .R .B . New York p o r t f o l i o t o r e p la c e m aturing 8 /1 0 /3 2 Tr. B i l l s acqu ired from that bank on J u ly 13. (b ) S old to F .R .B . Boston f o r replacem ent o f 8 /1 0 /3 2 T r. B i l l s taken o v e r tem porar i l y by Boston on J u ly 13, owing t o low r e se r v e p o s it io n o f New York bank on that d a te. BANKERS ACCEPTANCES (000 Omitted) M a tu r itie s O ther H oldings and S ales C lose Aug. 10/52 Sale s By A l l o t - Held Held in Con H oldings Purchased ment from E ls e H oldings Other Own. Mkt. New York B ills Aug. 3. N. Y. where Aug. 10 t r a c t s $ 0 Boston $ 0 $ 0 0 $ 2,3 4 3 $ o I o § 0 New York 0 2,190 1 ,735 96 R 0 308 1,5 2 3 10,201 5 0 35 0 30 " 0 0 3,175 P h ila* Cleve* 0 3,102 0 0 0 0 0 0 Richmond 1,699 0 1,228 1,877 0 175 0 3 0 17 298 1 ,136 315 0 0 0 A tla n ta Chicago 56 786 4,1 3 1 0 0 0 0 842 39 S t. L ou is 0 5 0 34 0 0 1,0 0 4 Minn. 0 0 0 0 0 631 0 0 0 0 Kansas City 55 0 0 55 891 0 0 0 53 7 5 41 0 D allas 860 San ,?ran. 197 0 0 1 ,258 0 2,119 0 1 ,4 3 5 T o ta ls *,356 f l2 6 0 $450 $5., 709 #2,190 $50,821 NOTE: R. in d ic a t e s RETAINED in above ’statem ent. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority 0 •\ ^ I MATURITIES AND PATES ON BILLS PURCHASED WEEK EMXED AUGUST 10, 1933 (000 O m itted)' New York P h ila d e lp h ia T o ta ls 1-30 days 0 0 0 31-60 days 1% ~ $96 ~0 $96 61-90 days 3 1/2% J 0 50 $30 Over 90-days ____ T otal 0 $ 96’ 0 30 0 $126 RECAPITULATION OF PURCHASES AND SALES OF G O V E ^ O T SECURITIES AND _______ BANKERS ACCEPTANCES DURING WEEK ENDED AUGUST 10, 1953 (000 Om itted) (E xclu d in g S ales C o n tra cts) Purchased S old Matured T o ta ls Government S e c u r it ie s • $>55, 660 38,784 33,000 $ 4,876+ Bankers A cceptances $136 0 773 $647166+(Net Change 1-da y h old ov er & o th e r b i l l s ) $481- T ota ls §55,786 2 8,784 3 3,773 ^ 4,339+ 166+(Net Change ______ 1 -d ay h o ld o v e r & oth er b i l l s ) $ 4,395+ MATURITY DISTRIBUTION OF HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES _________________________ WEEK ENDED AUGUST 10, 1933_______________________________________ (000 Omitted) (In c lu d in g S ales C on tra cts) Gov’ t S e c u r it ie s B i l l s Purchased T o ta ls W ithin 16-30 31-60 61-90 91 days- Over 6 15-days days days days Q months months T ota l #133,600 $80,443 |340,413’ $304,834 | l4 6 ,0 7 4 $1,056 ,6 49 117851,011 9 ,4 3 8 6,404 11,013 1 1 ,8 6 6 ____J _________ 0___________ 38,730 $133,038 $86,846 $351,424 $316,700 .$146,074 $ 1 * 0 5 6 , 6 4 9 $ 1 ,8 8 9 ,7 3 1 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority £ , D - Fe d e r a l R e s e r v e B a n o f N ew Y ork k ■ ///. y , 'f ^ j j c v COSFIDEHTIAL ' ^ > August 5, 1932 Dr. 1. 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 July 28 to August 3, 1932 inclusive, together with data received from Federal reserve banks. Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority Fe d e r a l R e s e r v e B a n Q •\ [ k of N e w Y o r k CONFIDENTIAL August 5, 1932 Mr. E. L. Smead, . Chief, Division of Bank Operations, Federal Reserve Board, Washington, D. C. Dear Mr. Smead: Enclosed i s a report of open market operations fo r the period from July 28 to August 3 , 1932 in clu sive, together with data received from Federal reserve banks. Very truly yours, W. B. Matteson Assistant Deputy Governor Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED' Authority For CIRCULATION Gov. Meyer — hfif. l!*rn|in. fc r. j a n e s f« r. I ' t Q c e - ( f/.r. f ......... M r . P o l e ____ % /.. ■-................. f/.r. r - i r. nr1'- • :U\ iu o-oU CONFIDENTIAL August 5 , 1932 Dear Governor Meyer: Enclosed i s a report of open market operations fo r the period from July 28 to August 5 , 1932 in clu siv e, together with data received from Federal reserve banks. Very truly yours, Assistant Deputy Governor Honorable Eugene Meyer, Governor, Federal Reserve Board, Washington, D. C. ^nd r,c3 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED r- Authority D •\ , | CONFIDENTIAL REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED AUGUST 5, 1932 H oldin gs o f Earning A sse ts o f Federal R eserve Banks from August 5 , 1931 to Date (000 Om itted) TOTAL EARNING ASSETS # 941,582 1,1 5 6 ,6 3 6 1 ,5 5 7 ,9 7 0 2 ,1 9 8 ,2 3 8 1,9 2 5 ,5 0 9 2 ,1 8 5 ,2 1 6 •1931Aug, 5 26 S ep t, 30 O ct, 28 Nov, 25 Dec • 30 -1 9 3 2 Jan. 27 Feb. 24 Mar, 30 'Apr, 27 May 25 June 29 July 27 Aug, 3 1*787,912 1 ,7 2 3 ,8 6 2 1 ,5 7 8 ,1 4 6 1,7 7 3 ,7 4 5 2 ,Q40 ,056 2,3 4 0 ,2 6 2 * 2 ,4 1 2 ,2 3 2 2 ,3 8 0 ,0 3 9 GOVERNMENT SECURITIES O u trigh t S a les T' " C on tracts T ” o $ 680,631 727,998 o 738,455 3,890 726 9659 0 727,101 0 764,933 38,295 750,216 740,006 860,056 1 ; 191,232 1 f, 524,896 1,7 9 5 ,2 1 9 * 1 ,841,191 1 ,846,135 1,500 550 11,562 0 300 5,753 0 0 BANKERS ACCEPTANCES O utright S ales Purchases C on tracts # 63,105 $ 2,969 179,476 1,042 449 *022 19,505 723,262 1,4 1 8 479,225 573 248,708 78*267 153,671 126,865 62,281 45,874 38,373 47,787 38,210 37,011 8,590 6 ?517 4,081 0 0 15,732 1,490 3,682 BILLS DISCOUNTED | 188,575 241,718 327,925 716,680 686,401 1 ,0 2 4 ,1 3 3 837,639 835,243 633,255 531,824 471,267 469,828 525,380 487,183 ^ In clu d es §2 4 ,0 0 0 ,0 0 0 s p e c ia l one-day c e r t i f i c a t e o f indebtedness issued by Treasury to F ederal Re serve Bank o f Chicago on June 29. CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF S^LES CONTRACTS) _________ _______ DURING WEEK ENDED AUGUST 5 , 1932 ________________ (000 Om itted) GOVERNMENT SECURITIES Net Balance Aug* 3 Change Boston New York P h ila d e lp h ia G leveland Richmond A tla n ta Chicago S t . L ouis M inneapolis Kansas C ity D a lla s San F ra n cisco N. Y. h old overs and oth er b i l l s T o ta ls # 121,228 708,292 138,937 177,757 47,133 46,696 274,810 65,943 54,632 56,967 30,721 123,019 $1*846,135 a 0 3,300+ 387+ 525+ 0 270 212+ 122+ 0 0 425+ #4,944+ BANKERS ACCEPTANCES Net Balance Change Aug. 3 # 0 <1 0 1,735 5 0 1,877 315 842 39 0 55 53 1,435 31620 6 08720 0 0 56694- 30,655 9+ #37,011 #1,199— BILLS DISCOUNTED Net Balance Aug. 3 Change # 20,888 98,635 69,816 38,392 27,970 35,783 35,811 13,678 13,944 23,635 18,511 90,120 # 1 ,9 1 7 5 ,0 1 7 4 ,2 7 2 6 ,6 2 0 3996 ,4 9 6 5 ,1 0 1 186+ 693+ 631112+ 8 ,7 3 5 - $>487,183 # 3 8 ,1 9 7 - COMMENT ON CHANGES WEEK ENDED AUGUST 3, 1932 T ota l ea rn in g a s s e t s o f th e System showed a d ecrea se o f #32 ,1 9 3 ,0 0 0 f o r the cu rren t statem ent week. The ch an g es, by c l a s s i f i c a t i o n , c o n s is te d o f in cre a s e s o f §4 ,9 4 4 ,0 0 0 in o u tr ig h t h old in g s o f Government s e c u r it ie s and # 2 ,1 9 2 ,0 0 0 in bankers a ccep ta n ces held under s a le s c o n t r a c t , and d ecrea ses in o u tr ig h t h old in g s o f bankers a ccep ta n ces and b i l l s d iscou n ted o f #1 ,1 9 9 ,0 0 0 and #38,197,000 r e s p e c t iv e ly . Reproduced from the Unclassified I Declassified Holdings of the National Archives ~ r- * Money Market DECLASSIFIED * Authority ^ t D • \ For a l l member banks in the co u n try , excess re s e r v e s are estim ated to have averaged about $220,000,000 during the p ast week. This surplu s o f bank r e s e r v e s was somewhat le s s than in the p re v io u s week, due to an in crea se in the amount o f money in c ir c u la t io n ov er the turn o f the month, a r is e in 'i’reasu ry balan ces at the Reserve Banks* and to the repayment o f $38j000,000 o f member bank b orrow in g s. A l l o f th ese tr a n s a c tio n s exceed ed the g a in t o bank re serv es a r is in g from an in crea se o f $ 2 7 ,0 0 0 ,0 0 0 in the U nited S ta te s monetary g o ld sto ck . In the ca se o f th e New York C ity money market banks, excess r e s e r v e s were reduced from $120,000,000 to $58,000,000 d u rin g the statem ent week ju s t c lo s e d . Reserve requirem ents showed a net advance o f $3 ,0 0 0 ,0 0 0 w h ile a c tu a l re se rv e bala n ces d e c lin e d $ 5 9 ,0 0 0 ,0 0 0 . The p r in c ip a l reason f o r the drop in r e se r v e bala n ces o f the C ity banks was an o u tflo w o f funds t o oth er ce n te rs r e p re s e n tin g payments to other d i s t r i c t s f o r Government s e c u r i t i e s s o ld in the New York m arket. There were in a d d itio n sm aller lo s s e s o f funds occa sio n e d by month-end cu rren cy withdrawals from the Reserve Banks and by Treasury o p e r a tio n s . The Treasury tr a n s a c tio n s consummated during the week, although they did not r e s u lt in any g re a t change in the amount o f funds a v a ila b le to the m arket, were o f some m agnitude, in clu d in g as they did the s a le o f $30,000,000 o f new Treasury note is su e s f o r cash and the w ithdraw al o f $58 ,00 0,000 o f funds from Government d e p o s it a r ie s , o p e r a tio n s which somewhat exceeded net cash redem ptions o f $31,000,000 o f the maturing c e r t i f i c a t e issu es and o th e r net disbursem ents o f $ 4 5 ,0 0 0 ,0 0 0 , o f which a c o n s id e r a b le p art was f o r accou n t o f the R e co n s tru ctio n Fin ance C o rp o ra tio n . Other Treasury t r a n s a c tio n s w hich had no e f f e c t on the market were the exchange o f -$128,000,000 o f maturing c e r t i f i c a t e s f o r the new Treasury note is s u e s , and the esta blish m en t o f book c r e d it s f o r th a t part o f the new issu e so p a id f o r . ’ Only p a r t ly o f f s e t t i n g the lo s s e s o f funds to New York through the i n t e r - d i s t r i c t o u t flo w , cu rren cy demand, and Treasury o p e r a tio n s were ga in s r e s u lt in g from im ports o f g o ld and r e le a s e s o f g o ld from amounts so h eld f o r fo r e ig n a c c o u n t. A lso p r o v id in g some ga in t o the market was the purchase o f $5 ,0 0 0 ,0 0 0 o f Government s e c u r i t i e s f o r the System S p e c ia l Investment Account and oth er m is c e lla neous t r a n s a c t io n s . Government S e c u r ity Market Money r a t e s in New York were v i r t u a l l y unchanged during the p ast week. C a ll money h eld at 2 per c e n t , the o f f i c i a l r a te on the S tock Exchange, and a t 1 p er cen t in the o u ts id e market; time loa n s a t 1 1 /4 - 1 1 /2 per c e n t; and 90 day b i l l s a t 3 /4 o f one p er cent o f f e r e d . Y ie ld s on sh ort-term Government s e c u r it ie s moved v e r y l i t t l e , w h ile the p r e v a ilin g range f o r prime com m ercial paper in the open mar ket narrowed t o 2 1 /4 - 2 1 /2 p er c e n t, as a g a in s t 2 1 / 4 - 2 3 /4 per cent f o m e r l y . F ed eral funds o f la t e have been 1 /4 per c e n t , as com pared w ith 1 /8 p er ce n t fo rm e r ly , t h is r a t e b ein g p a r t ic u la r ly sen s i t i v e to any r e d u c tio n in e x ce ss r e se rv e s o f the C ity banks. The market f o r United S ta tes government s e c u r i t i e s during the cu rren t statem ent week was q u ie t but i t had a fir m u n derton e. There was le s s a c t i v i t y in the lon g -term is s u e s , and w hile th ere was a s l i g h t r e c e s s io n in the q u o ta tio n s , the demand f o r the is su e s o f Treasury Bonds which may be used to secure n a tio n a l bank n otes re mained firm and h elped stren gth en the e n t ir e l i s t . With the e x ce p tio n o f the new is su e s o f tw o-y ea r and fo u r -y e a r n o t e s , the sh ort-term government s e c u r it y market was in a c t iv e and eased o f f fr a c t io n a lly ,. At the c lo s e o f the cu rren t r e p o r t in g p e r io d the average y i e l d on the sh ort-term is s u e s , a t d ea lers* o f f e r in g p r i c e s , was Reproduced from the Unclassified I Declassified Holdings of the National Archives “ r- DECLASSIFIED' Authority >D • \ ^ 1 3 about ,6 6 $ , including ' two new issu e s o f Treasury ^ s and .4 6 $ ex clu d in g th e s e , as compared w *.. .4 9 $ at the c lo s e o f the prev week, and the average p r ic e f o r the L ib e r ty Loan Bonds was 101*96 and o f the Treasury Bonds 1 0 0 ,9 1 , as compared w ith the p re v io u s week*s average c lo s in g p r ic e s o f 101.95 and 101.03 r e s p e c t iv e ly * D ealers* O ffe r in g P r ic e s at the C lose o f the Current Statement Week and Net Changes from the C lose o f the P rev iou s Statement Week Net Approx, Issu e Pr ice Change Y ie ld ---- --1 1/855 C e rt, o f Ind. -duei S ep t. 15, 1932 +1/32 100 6/32 tt tt ti r t 3 +1/32 - - 15, 1932 100 1 4/32 % tt »t tt tt O ct. 15, 1932 ---- --3 i/e g 100 20/32 3 1 /4 $ Treasury Notes tt Dec. 15, 1932 0 .1 5 $ 101 4 /3 2 3 3 /4 ”t C ert, o f Ind. tt Feb. 0 .1 7 $ 101 24/32 -3 /5 2 1 , 1935 tt tt Tt »t Mar. 15, 1955 3 3/45S 0 .4 7 $ -1 /5 2 102 tt tt tt tt May 2 0 .6 4 $ -1 /5 2 101 2 , 1955 % ft ft tt tt June 1 5 , 1933 1 1 /3 $ 0 .9 1 $ + 2/52 100 16/32 tff tr 3 - - 1 .8 2 $ May 102 2 , 1934 ft Treasury Notes ntt Aug. 2 i/e.«; 1 .9 7 $ - 5 /5 2 100 9 /3 2 1 , 1934 tt tt tt June 1 5 , 1935 3 2 .6 2 $ -1 /5 2 101 1/3 2 % tt tt ft Aug. 3 1/ 45S +1/52 2 ,9 7 $ 101 1 /3 2 I t 1936 Treasury B i l l s - August m a tu r itie s - 0 .4 5 $ d iscou n t b id , 0 .1 5 $ asked t» tt tt t» tt S ep t. 0 .2 5 $ - 0 .4 5 $ *>■ tt V tt tt tt tt - O ctober 0 .2 5 $ - 0 .5 0 $ C losin g Sale P r ic e on the New York Stock Exchange at the Close o f the Current Statement Week and Net Changes from _____________ C lose o f the P rev iou s Statement Week______________ , Issu e 1 st 3 l / 2 s 1 s t 4 1 / 4s 4th 4 1 / 4s Bankers A cceptances R eports Week Ended Aug. 3 Net P r ic e Change Issu e P r ic e 101 4 / 3 2 -------- T reasury 4 l / 4 s 1947-52 106 22/32 101 24/32 - 1 /3 2 ” 4s 1944-54 103 24/32 103 +2/32 ” 3 3 /4 s 1946-56 102 " 3 3 /8 s 1943-47 100 2 /3 2 " 3 3 /8 s 1940-43 100 " 3 3 /8 s 1941-43 100 " 3 l / 8 s 1946-49 97 28/32 M 3s 1951-55 96 29/32 Net Change -6 /3 2 - 4 /3 2 -8 /3 2 -1 /3 2 -4 /3 2 - 4 /3 2 -2 /3 2 -2 /3 2 D e a le r s ’ o f f e r i n g s o f unindorsed bankers a ccep ta n ces . con tin u ed a t thr fo llo w in g r a te s at the c lo s e o f the cu rre n t s t a t e ment week: 3 /4 per cent f o r 3 0 s , 60s and 9 0 s, 7 /8 per ce n t f o r 120s and 1 1 /8 per cen t f o r 180-day b i l l s . Boston rep orted th at there was a good in crea se in the supply o f b i l l s in i t s d i s t r i c t during the past p e r io d . The l o c a l demand, which was c h i e f l y f o r sh ort m a t u r it ie s , was n ot s u f f i c i e n t to take up the in crea sed supply w hich n e c e s s it a t e d d e a le rs forward ing $ 3 ,2 4 8 ,0 0 0 to th e ir o f f i c e s in oth er c i t i e s . In New York d e a le rs re p o rte d a d im inish ing supply o f new b i l l s w ith a co n tin u in g stron g demand, p a r t ic u la r ly f o r s e l e c t i v e names, p o r t f o l i o s showed a fu r th e r d e c lin e t o s l i g h t l y more than $ 1 5 ,0 0 0 ,0 0 0 , the low est sin ce A p r il 30 l a s t . There were no o f f e r in g s f o r System A ccount, except f o r a s a le s c o n tr a c t made by one o f the d e a le r s , as a r e s u lt o f which, due to v e r y l i g h t m a t u r it ie s , the System*s h old in g s o f b i l l s in cre a se d m od era tely . P h ila d e lp h ia rep orted that the demand f o r b i l l s in i t s market continued good f o r a l l m a tu r itie s and f a r exceeded the slip p ly i Hew b i l l s were a t a premium. Chicago rep orted that the de~ mand f o r b i l l s was in e x c e s s o f the supply in i t s d i s t r i c t . D allas re p o rte d that there were no o f f e r in g s made to the reserv e bank*,w ith the demand n e g lig ib le * Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED' Authority >Q • \ | | 4 OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY T ra n sa ction s consummated under Treasury a u th o r iz a tio n during the cu rren t statem ent week were as f o llo w s : sal© o f #300,000 Fourth L ib e r t y Loan 4 1/4% bonds account A lie n P rop erty Custodian and purchase o f 93,100 August 1. 1934 - 2 1/8% T reasury Notes account A lie n P ro p e rty Custodian SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES Purchases o f U nited S ta tes Government s e c u r it ie s f o r the system Account during the cu rren t statem ent week, under a u t h o r it y granted a t the m eeting o f the Open M arketJP olicy Conference h eld in Washington on Ju ly 14, 1932, amounted to # 5 ,0 0 0 ,0 0 0 , as f o llo w s : # 5 ,0 0 0 ,0 0 0 aggregate amount 2 1/8% Treasury N otes due Aug. 1 , 1934 A ll o f these purchases were made in the New York market. Other tr a n s a c tio n s e f f e c t e d during the week c o n s is te d o f Exchanges in the market at advantageous r a te s o f *1 ,00 0 ,0 0 0 - 1 1 /8 fo c / l due 9 /1 5 /3 2 500,000 - 3 % " * 9 /1 5 /3 2 f o r # 1 ,5 0 0 ,0 0 0 -2 1/8% C / l due 8 /1 /3 4 Exchanges by s u b s c r ip t io n s t o new Treasury issu es dated Aug. 1 , 1932, under Treasury o f f e r in g dated J u ly 25, 1932 #47 ,65 0,000 - 3 1/8% C /l due 8 /1 /3 2 f o r # 2 3 ,8 2 5 ,0 0 0 -2 1/8% T/N due 8 /1 /3 4 2 3 ,8 2 5 ,0 0 0 -3 1/4% " " 8 /1 /3 6 Of these s u b s c r ip t io n s # 2 ,7 5 0 ,0 0 0 was en tered by the F ederal R eserve Bank o f Chicago (h e ld by them in safek sep in g f o r System A ccount) and the balan ce was en tered by the F ederal Reserve Bank o f New York* Sale in the market on August 2 o f # 1 ,0 0 0 ,0 0 0 - 3% C /I due 9 /1 5 /3 2 ( in accordance w ith terms o f c o n tr a c t under which these c e r t i f i c a t e s were purchased on J u ly 8 , 1932) which was r e p la c e d by purchase in the market o f #500,000 - 3 3/4% C /I due 3 /1 5 /3 3 500,000 - 2 % n " 5/ 2 /3 3 The a d d it io n a l purchase during the week o f #5 ,0 0 0 ,0 0 0 government s e c u r i t i e s in cre a se d the amount o f t o t a l h old in g s in the Account to # 1 ,6 3 4 ,6 0 7 ,5 0 0 . The p a r t ic ip a t io n s by F ed era l re s e r v e banks and the c l a s s i f i c a t i o n o f is su e s h e ld in the Account at the c lo s e o f bu sin ess Wednesday, August 3, 1932, were as f o llo w s : Reproduced from the Unclassified I Declassified Holdings of the National Archives d e c l a s s if ie d ” i Authority ’ >D • \ ^ [ I | i 5 PARTICIPATIONS BY FEDERAL RESERVE BANKS Boston New York P h ila d e lp h ia C leveland Richmond A tlan ta Chicago S t. Louis M in neapolis Kansas C ity D a lla s San Francisco^ T o ta ls $ 95,978,500 619,453,000 135,531,500 177,-757 ,000 47,132,500 46 ,5 6 0 ,0 0 0 199,195,000 65 ,443 ,0 00 4 6 ,9 3 7 ,0 0 0 56,880,500 20,721 ,0 00 123,018,500 # 1 ,6 3 4 ,6 0 7 ,5 0 0 RECAPITULATION OF HOLDINGS BY MATURITIES 10,. 17, 2 4, 31, S ep t. 28, O ct, 11, n 19, tt 26, S e p t. 15, w 15, O c t , 15, Dec. 15, 1, Feb, Mar. 15, May 2, June 15, May 2, Aug* 1, June 1 5 , Aug. June 1 5 , tt 15, O c t. 15, Aug.. ♦» tt tt 1.932 T r e a s .B ills n tt 1932 tt t» 1932 « tt 1932 tt « 1932 ♦J. V 1932tt tt 1932 w tt 1932 1932 - 1 1 /8 # C /I $ w 1932 - 3 1932 - 3 1 /8 $ M 1932 - 3 1 /4 $ T/N 1933 - 3 3 /4 $ C /I 1933 - 3 3/4>» " 1933 - 2 $ " 1933 - 1 1 /2 $ " 1934 - 3 $ T/N 1934 - 2 1 /8 $ n 1935 - 3 % ” 1936 - 3 1 /4 $ " 1932-47-3 1 /2 # 1 st L /L »t 1 9 3 2-47-4 1 /4 $ " 193 3-38-4 1 /4 $ 4th L/L 16*000,000 52,600,000 47 ,4 2 7 ,0 0 0 7 6 ,029 ,0 00 15,500 ,0 00 42,822 ,0 00 11 ,0 0 0 ,0 0 0 55*000,000 8 5 ,8 9 3 ,0 0 0 123,059,500 94,011,500 113,697,000 13,275 ,0 00 153,525,000 103,152,500 95,075 ,0 00 69,175 ,0 00 30 ,3 2 5 ,0 0 0 77,600,000 23,825 ,0 00 73,025 ,0 00 2 3 ,000 ,0 00 239,591,000 $ 1 ,6 3 4 ,6 0 7 ,5 0 0 Reproduced from the Unclassified I Declassified Holdings of the National Archives j DECLASSIFIED' r* ' Authority ^ t Q • \b G ^ 1 | ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS _____________________ FROM JULY 28 TO AUGUST 5 , 1952y INCLUSIVE GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT Adjustm ents in P a r tic ip a tio n s Purchases Sale s 0 B oston $ 2 ,9 5 3 ,5 0 0 $ 2,953,50 0 New York 0 22,261,500 18,961,500 P h ila d e lp h ia 0 4 ,159,00 0 4 ,546,50 0 G leveland 0 5,979,50 0 5,454,50 0 0 Richmond 1,4 5 0 ,5 0 0 1,4 5 0 ,5 0 0 A tla n ta 0 1 ,4 3 3 ,0 0 0 1 , 4 o 3 ,00 0 0 6 ,1 3 0 ,0 0 0 Chicago 6,130 ,000 S t . L ouis 0 2 ,220,00 0 2,007,500 0 M inneapolis 1 ,4 39,50 0 1,5 8 9 ,5 0 0 0 Kansas C ity 1 ,7 5 0 ,5 0 0 1 ,750,50 0 0 D a lla s 637,500 637,500 0 San Francisco^ 4 ,1 9 8 ,0 0 0 3 ,7 7 3 ,0 0 0 To ta ls 1 5 5 ,15 0,000 $5 ,000 ,0 00 0 | 5 0 ,1 5 0 ,0 0 0 Net In crease $ 0 3 ,3 0 0 ,0 0 0 387,500 525,000 0 0 0 212,500 150,000 0 0 425,000 HOLDINGS IN GOVERNMENT SECURITIES - (SALES CONTRACTS) Net Change From P rev iou s Week NONE OTHER TRANSACTIONS IN GOVERNMENT SECURITIES A tl anta M inneapolis Chicago T o ta ls Purchases 934,250 1 ,0 1 1 ,6 0 0 2 ,5 0 0 ,0 0 0 $ $ 4 ,445 ,8 50 Issu e Misc . Gov* t S e c , " " " " (EXCLUDING SALES CONTRACTS) S a les 961,800 1 ,040,350 2 ,500,000 $ Issu e M isc. Gov •t S e c • V " " 3 1/8% C / l - 8 /l / 3 2 ( R e d . ) $4 ,5 0 2 ,1 5 0 BANKERS ACCEPTANCES (OOO Omitted) Other H oldin gs M a tu r itie s and S a les Glose Aug. 3/32 S ales By A l l o t Held Held H oldings Purchased ment from Other in Con E lse H oldings tra cts Ju ly 27 Own Mkt. New York Aug. 3 B ills where N.Y* $ 0 B oston § 2,343 § 0 $ 0 $ 0 0 ^ 0 e o 10,026 2,051 1,735 3,682 New York 0 316 0 0 P h ila* 2 5 3,175 7 0 0 0 0 0 3,102 0 91e v e • 0 0 0 0 0 Richmond 1,937 155 R. 215 1,877 1 ,228 0 0 0 A tlan ta 323 3 1,136 0 5 315 0 0 914 72 842 Chicago 0 0 4,131 0 0 39 S t . Louis 39 0 0 1 ,0 0 4 0 0 0 Minn* 0 0 631 0 0 0 0 0 Kan, C ity 55 891 0 55 0 0 0 0 109 D a lla s 19 0 0 37 53 860 0 2,129 San Franf 0 2,119 694 0 0 1,435 0 T o ta ls $7,564 $155 0 $1,023 $6 f 356 $3,682 #30,646 $340 9 B i l l s h eld ov ern ig h t by New Y ork f o r d is t r ib u t io n to oth er Fed, Res . Bks. ~ T ota l - N0T2; R. in d ic a t e ? R etained in above sta tem en t. -$ 3 0 ,6 5 5 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * I Authority / 7 MATURITIES AND RATES ON BILLS HJRCHASED WEEK ENDED AUGUST 3, 1952 — (000 Omitted] 1-30 days - _______ Richmond - 51-60 days 1 1 /2 # 61-90 days 1 1 /2 # #90 Over 90-days - ________ #65 - Total #155 RECAPITULATION OF PURCHASES WD SALES OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES HJRING WEEK ENDED ALTGUST 3, 1932 ^0 0 0 C m ittedj (Excluding Sales Contracts) Government Securities Purchased Sold Matured ♦Exchanged Totals #11,946 4,502 2,500 47 , 650 # 4,944+ Bankers Acceptances Totals | 155 0 1,363 0 # 1 ,2 0 8 9+(Net Change ________ 1-day holdover & other b i l l s ) .,1 9 9 - #12,101 4,502 3,863 47,650 $ 3,736+ 9+(Net Change 1-day holdover & other b i l l s ) # 3,745+ ^Represents 3 1 /8 # c / l due 8 /1 /3 2 held by System Account which were exchanged for a lik e amount o f Treasury Notes, under Treasury offering of July 25. MATURITY DISTRIBUTION OF HOLDINGS OF GOVERNMENT SECURITIES ATD BANKERS ACCEPTANCES ________ WEEK ENIED AUGUST 3, 1932____________________________________ (000 Omitted) (Including Sales Contracts) Within 15 days Gov*t Securities B ills Purchased Totals 16-30 31-60 days______days 61-90 days 91 days6 months Over 6 months________ Totals #84,600 #140,442 #857,411 #202,833 #134,967 #1,025,882 #1,846,135 9,910 7,769 10,632 12,382 0_________ 0 _ ________ 40,693 #94,510 #148,211 #268,043 #215,215 #134,967 §1 ,0 2 5 ,88 2 #1*886,828 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority f c . Q . / “'■I J j ..-ft Fe d e r a l R e s e r v e B a n k of N e w Y o r k CONFIDENTIAL J u ly 29, 1932. Dr. E. A. Goldenweiser, D irector, Division of Research and S t a t is t ic s , Federal Reserve Board, Washington, D. C. Dear Dr. Goldenweiser: Enclosed i s a report of open market operations fo r the period from July 21, 1932 to July 27, 1932 inclu siv e , together with data received from Federal Reserve banks. Veryntruly yours, W. B. Matteson Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority Fe d e r a l R e s e r v e B a n k of N e w Y o r k CQNFIDEMTIAL July 29, 1932 Mr. E. L. Smead, Chief, Division of Bank Operations, Federal Reserve Board, Washington, D. C. Dear Smead: Enclosed i s a report of open market operations fo r the period from July 21, 1932 to July 27, 1952 inclu s iv e , together with data received from Federal Reserve Banks• Assistant Deputy Governor Encl. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority ?*, ederal Re s e r v e B a n k of N e w Y o r k . CONFIDENTIAL July 29, 1932. Dear Governor Meyer; Enclosed is a report of open market operations for the period from July 2 1, 1932 to July 27, 1932 inclu s iv e , together with data received from Federal reserve banks. Assistant Deputy Governor Honorable Eugene Meyer, Governor, Federal Reserve Board, Washington, D. C. Enel /- Reproduced from the Unclassified I Declassified Holdings of the National Archives ~ r DECLASSIFIED' Authority | Q • \bG Oi j j CONFIDENTIAL REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED JULY 27, 1932 Holdings o f Earning Assets of Federal Reserve Banks from July 29, 1931 to Date TOTAL earning -19 3 1 July 29 Aug. 26 Sept. 30 Oct. 28 Nov. 25 Dec. 30 -1 9 3 2 Jan. 27 Feb. 24 M&r. 30 Apr. 27 25 May June 29 July 20 ** 27 ASSETS 934,795 1 ,1 56,636 1,5 5 7 ,97 0 2,1 9 8 ,23 8 1 ,9 25,509 ' 2 ,1 8 5 ,2 1 6 $ GOVERNMENT SECURITIES Outright Sales Purchases Contracts $ 677,977 1 0 0 727,998 3,890 738,455 0 726,659 727,101 0 38,895 764,933 1,7 8 7 ,91 2 1 ,7 23,662 1 ,5 7 8 ,1 4 6 1 ,7 7 3 ,74 5 2 ,0 40,056 2 ,3 4 0 ,26 2 * 2,431,429 2 ,4 1 2 ,2 3 2 750,216 740,006 860,056 1 ,1 9 1 ,2 3 8 1 ,524,896 1 ,7 9 5 ,21 9 * 1 ,8 36,175 1 ,841,191 1,500 550 11,562 0 300 5,752 0 0 BANKERS ACCEPTANCES Outright Sales Purchases Contracts $ 62,909 $ 3,627 1,042 179,476 19,505 449,022 1,418 723,262 573 479,225 78,267 248,708 153,671 126,865 62,281 45,874 38,373 47,787 43,526 38,210 BILLS DISCOUNTED | 183,036 241,718 327,925 716,680 686,401 1 ,0 2 4 ,13 3 837,639 835,243 633,255 531,824 471,267 469,828 537,565 525,380 8 ,590 6,517 4,081 0 0 15,732 8,376 1,490 ^Includes $24,000,000 special one-day c e r tific a te o f indebtedness issued by Treasury to Federal Reserve Bank o f Chicago on June 29. CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS) _________________DURING WEEK ENIED JULY 27, 1932 __________________ / 000 omitted) Boston New York Philadelphia Cleveland Richmond Atlanta Chicago St.Louis Minneapolis Kansas City Dallas San Francisco N. Y. holdovers and other b i l l s Totals GOVERNMENT SECURITIES Net Balance Change July 27 $ 0 ( 121,228 2,513+ 704,992 388+ 138,550 525+ 177,232 0 47,133 4746,723 637+ 274,810 213+ 65,731 212+ 54,510 56,967 150+ 0 30,721 425+ 122,594 $1,841,191 $5,016+ BANKERS ACCEPTANCES Net Balance July 27 Change $ 74 3 • 0 2,051 492+ 0 7 2250 4041,937 48 7 323 1 ,5 0 6 914 39 43 5 390 57555 263109 2,129 1 ,0 0 7 30.646 124- #38,210 # 5 ,316- BILLS DISCOUNTED Net Balance July 27 Change # 22,805 $ 809+ 1,113+ 103,652 74,088 1,729+ 7 ,6 8 0 45,012 24728,369 1 ,3 2 0 42,279 1 0 ,4 3 4 40,912 40513,492 645+ 13,251 12524,266 1,590+ 18,399 2,140+ 98,855 0525,380 $1 2 ,1 8 5 - COMMENT ON CHANGES WEEK ENDED JULY 27, 1932 Total earning assets of the System showed a decrease of # 1 9 ,1 9 7 *Q00 for the current statement week. The changes by c la s s ific a tio n consisted of an increase o f #5,Q16,000 in outright holdings o f gpvemment s e c u r itie s! and decreases o f #5,316,000 in outright holdings of bankers acceptances, $6*886,000 in bankers acceptances held under sales contract and #12,185,000 in b i l l s discounted. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' f Authority ^ >Q - 1 2 Money Market Excess reserves of a l l member banks in the United States are estimated to have increased about §40,000,000 during the past statement week to $250,000,000 on July 27. This r ise was the result principally o f a return flow o f $ 4 5 p000.000 o f currency from c ircu la tio n , following the unseasonal increase of the previous week. For the whole week, ex cess bank reserves averaged approximately $ 235,000,000, as compared with $175,000,000 in the preceding week. In New York, the large money market banks increased their 'surplus reserves from $92,000,000 a t the beginning of the week to $120,000,000 at the close* The largest gain of funds was through an inflow from other centers, probably as a resu lt of the return o f cur rency from circu lation in other Reserve D is tr ic ts . There was also a small gain to member bank reserves a risin g from a further increase in the country’ s gold stock, due to imports and releases of gold from earmark above the amount exported. The e ffe c t of these transactions was partly o ffs e t by a net withdrawal o f Treasury funds from the New York market, by a reduction in the Federal Reserve purchased b i l l port fo lio which exceeded additional purchases of $5,000,000 o f Government secu rities for the System Special Investment Account, and by a moderate increase in the reserve requirements of the New York banks, the f i r s t in some weeks# Money rates in the New York market again showed l i t t l e change. Throughout most o f the week, time loans were quoted,at the 1 per cent b id , 1 1 /4 per cent asked quotation reached on July 21 but la te in the week quotations were marked up to 1 1 /4 per cent b id, 1 1 /2 per cent asked, as compared with the 1 1 /2 per cent f la t quotation which pre vailed before the cut of July 81# L it t le a c tiv ity continued to be reported in the time money maiket. On the other hand, federal funds have recently been quoted at 1 /8 per cent f l a t , as against 1 /8 - 1 /4 per cent previously# Stock Exchange c a l l loans remained a t 2 per cent with outside money fre e ly available at 1 per cent; b i l l s held at 3 /4 per cent offered for the 90 day maturity and open market com mercial paper a t a range of 2 1 /4 - 2 3 /4 per cent for prime names. Government Security Market There was an increasingly good demand for United States Government secu rities during the current statement week, especially fo r the long-term Treasury bonds. The 3 3/8% issues, a lso the 3 l / 8 s and 3 s , which now carry the circu lation privilege# advanced sharply. Prices for the short-term issues o f Liberty Loan bonds showed slig h t irregular changes for the week, while prices for Treasury bonds ad vanced from 22/32 to 2 .1 /3 2 # At the close of the current reporting period the average yield on the short-term issu e s, at dealers* o ffe r ing p rice s, was about 0*49%, excluding the two new issues o f 2 1/8% and 3 1/4% Treasury notes, as compared with 0.46% at the close o f the previous week, and the average se llin g price for the Liberty Loan bonds was 101.95 and o f Treasury bonds was 1 0 1 .0 3 , as compared with the previous week*s average closing prices o f 101.84 and 99.78 respectively. The new issues of 2 1/8% - 2 year notes sold on a when issued basis at 100 1 2 /3 2 , and the new 3 1/4% - 4 year notes, at 101. Reproduced from the Unclassified I Declassified Holdings of the National Archives ~~ ■r DECLASSIFIED' Authority ^ >Q > \ ^ j Itealers* Offering Prices at the Close of the Current Statement Week and Net Changes fron the Close of the Previous Statement Week 1 3 3 3 3 3 2 1 3 2 3 3 1 /8 $ $ 1 /8 $ 1 /4 $ 3 /4 $ 3 /4 $ $ 1 /2 $ $ 1 /8 $ $ 1 /4 $ Issue Cert, of Ind* due M " * «* n *» " w n Treasury Notes n Cert, of Ind. H " ” " » » M " " " * Treasury Notes « » " # w " M ft *» " Treasury B i lls tf « - Price Sept. 15, 1932 100 ’ 5/3 2 w 15, 1932 100 13/32 Oct. 15, 1932 100 20/32 Dec. 15, 1932 101 4 /3 2 1933 Feb. 101 27/32 1, Mar. 15, 1933 102 1 /3 2 101 1 /3 2 May 2, 1933 June 15, 1933 100 14/32 1934 102 May 2, Aug. 100 14/32 1, 1934* June 15, 1935 101 2/32 101 Aug. 1, 1936* August maturities - 0*45$ discount w Sept. and Oct. " -r 0 .4 5 $ Net Change - — - 1 /3 2 - 2/3 2 - 2/3 2 - 2/32 - 1 /3 2 Approx. Yield . . . - - • 0*19$ 0*28$ 0*12$ 0*52$ -------- -----0*63$ 0 .9 9 $ - 3/5 2 - 1/3 2 1*83$ +14/52 1 .9 0 $ 2 .6 1 $ + 1/32 2*98$ +1* bid, 0*15$ asked » " 0 .2 5 $ * when issued Closing Sale Prices on the New York Stock Exchange at the Close of the Current Statement Week and Net Changes from Close o f the Previous Statement Week Net Change - 1/3 2 + 2/3 2 + 9 /3 2 Issue i / 4 s 1947-52 s 1944-54 3 /4 s 1946-56 3 /8 s 1943-47 3 /8 s 1940-43 3 /8 s 1941-43 l /S s 1946-49 s 1951-55 Price 106 28/32 103 28/32 102 8 /3 2 100 3/3 2 100 4 /3 2 100 4/3 2 97 30/32 96 31/32 Net Change + 2 2 /^ +1. 3/32 +1*14/32 +1. 2 /3 2 + 24/32 +1. 1/3 2 + 1 .2 9 /3 2 +2. 1 /5 2 Issue 1st 3 l / 2 s 1st 4 l / 4 s 4th 4 l / 4 s Price 101 4 /3 2 101 25/32 102 30/32 Bankers Acceptances Dealers' offerings o f unendorsed bankers acceptances continued at the following rates during the current statement week: 3 /4 per cent for 30s, 60s and 90s, 7 /0 per cent for 120s and 1 1 /8 per cent fo r 180day b i l l s . Reports week ended July 27 Treasury 4 *» 4 3 3 3 3 3 3 ' Boston reported that the supply of b i l l s in the lo ca l market .improved somewhat during the past period. The demand, which was small, was c h ie fly for the short m aturities. In New York there was a good dsnand fo r b i l l s th is week, esp ecia lly the la s t two days which came p rin cip ally from lo c a l banks who were su b stan tially over in their reserve positions* Dealers’ purchases f e l l o ff considerably as compared with the past few weeks and aggregate p o rtfo lio s declined by about $11,000,000 to $21*000,000 which is the lowest they have been since the end of May* Philadelphia reported that the acceptance market in i t s d is t r ic t was more active. Few new b i l l s can© out and demand fo r short b i l l s was good. Chicago reported that there was a good demand fo r b i l l s during the past week with the supply v e ry small* Dallas reported that there was no demand for b i l l s and that there were no offerings made to the reserve bank. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' r- Authority 10 “1 ■ \b G ^ 1 | fcHmr 4 OPERATIONS IDR ACCOUNT OF UNTIED STATES TREASURY Transactions consummated under Treasury authorization during the current statement week were as follows: Sale o f # 776*100 • 4 % Treasury Bonds of 1944^54, account General Railroad Contingent Fund 200*000 - 4 1/4% Fourth Liberty Loan bonds, account Alien Property Custodian 08*500 «• 3 1/8% C ertifica te s of Indebtedness, due August 1 , 1932 ____________ account Alien Property Custodian $1,064,600 - Total Sales SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES Under authority granted at the meeting of the Open Maiket Policy Conference, held in Washington on July 14* 1932, purchases o f $5*000,000 United States Government se cu ritie s were made for the System Account during the current statement week, as follow s: $ 550,000 1 ,0 0 0 ,0 0 0 600,000 2*850,000 - 3% q/I due Sept, 1 5 , 1932 - Treasury B ills Sept. 28 , 1932 " * * Oct. 11* 1932 " • » • » » » 26, 1932 |5,000,000 Other transactions consummated in the Account during the week consisted o f the (1) Redemption on July 27 #43,150,000 - maturing Treas. B ills Replaced by purchase in the market # 4 3,150,000 - Treas. B ills due Oct, 26, 1932 (2) Exchange in the market at advantageous rates o f : # 9*000,000 - 3 1/8% C /I due Aug, 1* 1932 for $9,000,000 - T re a s.B ills due O ct.26,1932 The additional purchase during the week of $ 5 ,0 0 0 ,0 0 0 government securi tie s increased the amount o f tota l holdings in the Account to # 1 ,6 2 9 ,6 0 7 ,5 0 0 . The participations by Federal Reserve Banks and the c la s s ific a tio n o f issues held in the Account at the close o f business Wednesday, July 27 , 1932, were as follow s: Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' r- Authority 1 ^ >D • \ b G O j PARTICIPATIONS BY FEDERAL RESERVE BANKS Bos ton New York P h ila d elp h ia C leveland Richmond A tla n ta Chicago S t. L ouis M inneapolis ' Kansas C ity D a lia s San F ra n cisco *■ - T o ta ls $ 95,978 ,5 00 616,153,000 1 35,144,000 177,232,000 47,132,500 46 ,5 6 0 ,0 0 0 1 99,195,000 65,230 ,5 00 46 ,7 8 7 ,0 0 0 56,860,500 20,721,000 122,593,500 # 1 ,6 2 9 ,6 0 7 ,5 0 0 RECAPITULATION OF HOLDINGS BY MATURITIES 10, 17, 24, 3 1, Sept. 28, O ct. 1 1, « 1 9, tt 26, Aug. 1. S e p t. 1 5 , 15, O ct. 15, Dec. 1 5 , Feb. 1, Mar. 15;. May 25 June 15, May 2, June 15, t? 15, t» 15, O ct. 1 5 , Aug* tt tt »» 1932 - T r e a s .B ills § 16,000 ,0 00 n tr 1932 52,600,000 w ti 47 >427,000 1932 tt »i 1932 76,029,000 tt ti m m 1932 15,500 ,0 00 » ti 1932 4 2,822,000 t» w 1932 1 1 ,000 ,0 00 tt t» 1932 55,000 ,0 00 1932 • 3 1 /8 # C/X 4 7 ,6 5 0 ,0 0 0 1932 - 1 1 /8 # tt 86,893 ,0 00 1932 - 3 # tt 124 ,55 9,500 1932 - 3 1 /8 # tt 9 4 ,0 1 1 : 500 1932 - 3 1 /4 # T/N 113,697.000 3 3 /4 # C /I 1933 1 3 ,275 ,0 00 1933 3 3 /4 # « 1 5 3 ,0 2 5 j 000 n 1933 . . 2 # 102,652 3500 »» 1 1 /2 # 1933 95 ,0 7 5 ,0 0 0 1934 «•*» 3 # T/N 69,175 :0 00 ♦» 3 # 77,600>000 1935 193 2/4 7-3 1 /2 # 1 s t L/L 7 3 ,025 ,0 00 1 9 3 2 /4 7 -4 1 /4 # 1 s t n 2 3 ,0 0 0 ,0 0 0 1 9 3 3 /3 8 -4 1 /4 # 4th " 239,591,000 | 1 ,6 2 9 ,6 0 7 ,5 0 0 Reproduced from the Unclassified I Declassified Holdings of the National Archives ~~ r- DECLASSIFIED Authority ^ >0 • \ b G 0 ( v 6 ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES .AND BANKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS _________________________ FROM JULY 21 TO JULY 27, 19321 INCLUSIVE_________ _________________ GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT Boston New York Philadelphia Cleveland Richmond Atlanta Chicago S t. Louis ■Minneapolis Kansas City Dallas £an Francisco Totals Purchases # 3,080,500 22,210,500 4 ,7 13,000 6,1 9 7 ,50 0 1,513,000 1,4 9 4 ,50 0 7 ,0 1 1 ,00 0 2 ,3 9 9 ,50 0 1*647,000 1 ,9 7 1 ,50 0 665,000 4 ,3 4 7 ,0 0 0 Sales | 3 ,0 80,500 19,698,000 4 ,3 2 5 ,5 0 0 5,672,500 1 ,5 1 3 ,0 0 0 1 ,4 9 4 ,50 0 6,373|500 2 ,0 87,000 1 ,4 9 7,000 1,821,500 665,000 3,922,000 157,150,000 #52,150,000 Adjustments in P articipations 0 0 0 0 0 0 0 0 0 0 0 0 0 Net increase 0 F 2 ,512,500 387,500 525,000 0 0 637,500 212,500 150,000 150,000 0 425,000 #5,000,000 HOLDINGS IN GOVERNMENT SECURITIES (SALES CONTRACTS) Net Change From Previous Week NONE OTHER TRANSACTIONS IN GOVERNMENT SECURITIES - (EXCLUDING SALES CONTRACTS) Atlanta Minneapolis Totals # Purchases 361,500 844,850 Issue Mi sc,, Gov't Sec, * » w #1,206,350 # Sales 408,950 782*200 Issue Misc. Gov’ t Sec. n n « #1,191,150 BANKERS ACCEPTANCES (000 Omitted) Maturities Other Holdings and Sales Close July 27/32 Held Sales By A llo t - Held ment Con Other Holdings Purchased E lse from in Holdings where B ills July 20 Own Mkt. New York July 27 N. Y. tracts | 0 $ 2,343 $ 743 0 Boston # 743 # 0 i o 1 0 10,024 179 0 1,490 New York 1,559 2,051 671 R. 0 3,175 7 0 0 0 0 0 B iila . 7 0 3,102 0 0 225 0 Cleve. 225 0 1,228 1,937 0 419 25 40 " 0 Rich. 2,341 1,136 0 18 469 323 0 Atlanta 810 0 0 1,506 4,131 914 0 0 Chicago 2,420 0 0 0 39 1,004 435 0 0 St.Louis 474 0 0 0 631 0 0 39 Minn • 39 0 55 891 0 575 0 Kan.City 630 0 109 0 860 0 2fc9 4 0 Dallas 372 0 2,119 147 0 2,129 660 San Fran. 3,136 0 Totals $12*756 #1,490 $30?644 #711 #3,235 #2,668 #7,564 0 2 B ills held over night by New York fo r distribution to other Federal Res.Bks ■ -#30,646 Total - *NOTE: R. indicates RETAMED la above statement. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority D ■\ 1 MATURITIES AND HATES ON BILLS PURCHASED WEEK ENDED JULY 27, 1932 ( 000 ( f i t t e d ) 1-30 days 1% New York Richmond $525 __ 0_ Totals 31-60 days 61-90 days Over 90-days Total $38 0 $108 40* $671 __ 40 $148 $525 $711 0 *Purchased at 1 1 /2 $ . RECAPITULATION OF PURCHASES AND SALES OF (X)VEHEMENT SECURITIES AND BANKERS ACCEPTANCES DURING IEEE ENDED JULY 27, 1932 (000 Omitted) Government Securities Purchased Sold Matured Totals $58,357 10,191 43,150 ,016+ Bankers Acceptances % 711 0 5,903 $ 5 ,1 9 2 124* (Net Change 1-day holdover & other b i l l s ) Total $59,068 10,191 4 9 ,0 53 >1761 2 4 -(Net Change ______1-day holdover & other b i l l s ) », 316- HQLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED JULY 27, 1932 (000 Omitted) (Including Sales Contracts) Within 15-days 16-30 31-60 61-90 days______ days______ days 91 days6 months Over 6 months Total Gov*t Securities B ills Purchased $72,150 7,663 $122,600 $324,852 $163,334 $176,694 $981,561 ,841,191 7,241 12,122 12,674 0_________ 0_________ 39,700 Totals $79,813 $129,841 $336,974 #176,008 $176,694 $981,561 $1,880,891 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority 1 5 , 0 . I V SL'f Q V" I Fe d e r a l R e s e r v e B a n of N e w Y o r k i r ' k - CONFIDENTIAL D r. E. A. Ju ly 2 2 , 1952. G olden w eiser, D ir e c t o r , D iv is io n o f R esearch and S t a t i s t i c s , F ed era l R eserve Board, W ashington, D. C. Dear Dr. G olden w eiser: E n closed i s a r e p o r t o f open market o p e ra tio n s f o r the p e r io d from July 14, 1932 t o July 20, 1932 in c lu s i v e , to g e t h e r w ith data r e c e iv e d from F ed era l r e s e r v e ban ks. Vew truly yours, F. B. Matte son Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives “ r- " DECLASSIFIED' Authority Fe d e r a l R e s e r v e B a ' \ ^ | 1 ! n k of N e w Y o r k CONFIDENTIAL Ju ly 22, 1952. Mr. E . L . Smead, C h ie f, D iv is io n o f Bank O p era tion s, F ed era l Reserve B oard, Washington, D. C. Dear Mr. Smeads E n closed i s a r e p o rt o f open market o p e r a tio n s f o r the p e r io d from Ju ly 14, 1932 t o Ju ly 20, 1932 in c lu s iv e , to g e th e r w ith data r e c e iv e d from F ed era l re s e r v e ban ks• V. tru lv^ you i W. B. Matteson Assistant Deputy Governor E n cl. Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED * Authority £ , D - \ h G d | i; ed jU L Fe d e r a l R e s e r v e B a n 23 1932 O F F IC E OF T H E G O V E R N O R k F of N e w Y o r k e d e r a l ..^ r e s e r v e _b o a r d For C iR C U j/T fO # Gov'. Meyer Mr, Ham lin. Mr, James M r . Magee Ur. Miller- CONFIDENTIAL J u ly 22, 1 9 3 2 . p0|e Mr, tit, Rfsse rccvS x v ?^ fciiutn U SMrffcsrrtv Dear Governor Meyers Enclosed i s a report of open market operations fo r the period from July 14, 193,2 to July 20, 1932 inclu s iv e , 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 • \b G 0 | CONFIDENTIAL REPORT OP OPEN MARKET OPERATIONS FOR VEEK ENDED JULY 20, 1932 H oldin gs o f Earning A sse ts o f F ed eral Reserve Banks from July 22, 1951 to pate (000 Omitted) -1 9 3 1 J u ly 22 »» 29 Aug, 26 S ep t, 30 O c t , 28 Nov, 25 p e c . 30 -1 9 3 2 Jan f 27 Feb • 24 Mar, 30 Apr* 27 May 25 June 29 J u ly 13 * • 20 TOTAL EARNING ASSETS $ 933,810 934,795 "1 ,1 5 6 ,6 3 6 1,5 5 7 ,9 7 0 2 ,1 9 8 ,2 3 8 1 ,9 2 5 ,5 0 9 2 ,1 8 5 ,2 1 6 1 ,7 8 7 ,9 1 2 1 ,7 2 3 ,8 6 2 1 ,5 7 8 ,1 4 6 1 ,7 7 3 ,7 4 5 2 ,0 4 0 ,0 5 6 2 ,3 4 0 ,2 6 2 * 2 ,4 0 4 ,2 5 8 2,431,42 9 GOVERNMENT SECURITIES O utright S ales C on tracts Purchases $ 678,001 * o 677,977 0 727,998 0 738,455 3,890 726,659 0 727,101 0 764,933 38,295 750,216 740,006 860,056 1 ,1 9 1 ,2 3 2 1 ,5 2 4 ,8 9 6 1 ,7 9 5 ,2 1 9 * 1 ,8 2 1 ,1 3 2 1 ,8 3 6 ,1 7 5 1,500 550 11,562 6 300 5,752 0 0 BANKERS ACCEPTANCES O utright S alee Pure ha se s C on tracts $ 1,5 5 4 $ 65,479 62,909 3,627 1,042 179,476 449 ,022 19,505 1 ,418 723,262 573 479,225 248,708 78,267 153,671 126 ,865 62,281 45,874 38,373 47,787 49,183 43,526 BILLS DISCOUNTED $ 181,602 183,036 241,718 327,925 716,680 686,401 1 ,0 2 4 ,1 3 3 837,639 835,243 633,255 531,824 471,267 469,828 515,570 537,565 8,590 6,517 4,081 0 0 15,732 12,438 8,376 ^ In clu d es # 2 4 ,00 0,000 s p e c ia l one- day c e r t i f i c a t e o f indebtedness issued by Treasury to F ed eral Reserve Bank o f Chicago on June 29* CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS) _________________DURING WEEK ENDED JULY 3 0 , 1952 ______________ (000 Omitted) GOVERNMENT SECURITIES Net Balance July 20 Change Boston $ New York P h ila d e lp h ia C leveland Richmond A tla n ta Chicago S t f L ou is M inneapolis Kansas C ity D allas San F ra n cisco N, Y . h o ld o v e rs and o th e r b i l l s T o ta ls 121,228 702,479 138,162 176,707 47,133 46,770 274,173 65,518 54,298 56,817 30,721 122,169 # 1 ,8 3 6 ,1 7 5 & 2,500+ 6,699+ 1,164+ 1,578+ 0 4 ,9 1 2 4,416+ 1,488+ 382+ 451+ 0 1,277+ $15,043+ BANKERS ACCEPTANCES Net Balance Change July 20 $ 743 1,559 7 225 2,341 810 2,420 474 39 630 372 3,136 4 o 2 ,5 3 6 749— 82950+ 212* 855 11~ 3151515954- 30,770 28+ $43,526 $ 5 , 657- BILLS DISCOUNTED Net Balance July 20 Charge $ 21,996 102,539 72,359 52,692 28,616 43,599 51,346 13,897 12,606 24,391 16,809 96,715 $ 4 ,8 2 1 ' 5141,974+ 106+ 2,332+ 3,828+ 14,220+ 1,235+ 222+ 1,445+ 1,066+ 902+ $537,565 $21,995+ COMMENT ON CHANGES WEEK ENDED JULY 2 0 , 1932 T o ta l earning a s s e t s o f the System showed an in crea se o f $27 ,17 1,000 f o r the cu rre n t statem ent week. The changes by c l a s s i f i c a t i o n c o n s is t e d o f in c r e a s e s o f $ 1 5 ,04 3,000 in o u t r ig h t h old in g s o f government s e c u r i t i e s and $ 2 1 ,99 5,000 in b i l l s d isco u n te d , and d ecrea ses in o u tr ig h t h old in g s o f bankers a ccep ta n ces and bankers a ccep ta n ces h e ld under s a le s c o n tr a c t o f # 5 ,6 5 7 ,0 0 0 and # 4 ,0 6 2 ,0 0 0 , r e s p e c t iv e ly * Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED * Authority l ^ i D • \ j 2 Money Market F or the statem ent week ju s t closed ,, i t i s estim ated that a l l member banks in the country h eld an average amount o f $175,,000,000 o f e x ce ss reserv es,, as compared w ith about $ 14 0,0 00,000 in the p re v iou s week. This la r g e r e x ce s s r e f l e c t e d p r in c ip a lly the maintenance during the p ast week o f the in c r e a s e that occu rre d in the p rev iou s week, although th e re was some fu r th e r n et in c r e a s e in r e se r v e bala n ces as a r e s u lt o f a fu r th e r ga in o f $20 ,00 0,000 t o the monetary g o ld stock., a d d it io n a l s e c u r it y purchases by th e Reserve Banks, and a r i s e in member bank b orrow in g s, a l l o f which exceeded an unseasonal demand f o r cu rren cy . In New Y ork, bank re s e r v e s at the end o f the week were sur p lu s to th e e x te n t o f $ 9 2 ,0 0 0 ,0 0 0 , as compared w ith $ 7 2 ,00 0,000 on the p reced in g Wednesday# New purchases o f $15 ,0 0 0 ,0 0 0 o f Government s e c u r it ie s f o r the System S p e c ia l Investment Account and a $ 3 ,0 0 0 ,0 0 0 d e c lin e in re se rv e requirem ents o f the New York C ity banks accounted f o r most o f the enlargement o f the e x ce s s o f bank r e s e r v e s . For the r e s t , payments t o the market a r is in g from g o ld t r a n s a c tio n s , c h i e f l y r e le a s e s from earmark, and an in flo w o f funds from o th e r p a rts o f the country were la r g e ly o f f s e t by a n et l o s s o f funds to the New York market in Treasury tr a n s a c tio n s , by a r e d u c tio n in F ed era l Reserve b i l l h o ld in g s , and by a n et withdrawal o f cu rren cy from the R eserve Bank f o r the p e r io d . V ir t u a lly no change occu rre d in money r a t e s during the week under review . C a ll money was 2 p er cen t on the Exchange and 1 p er cen t in the o u ts id e m arket. Time money lik e w is e h e ld at 1 l / 2 per cent f l a t f o r m a tu r itie s o f 2 to 6 months u n t il Thursday July 21 when the market was quoted at 1 p er cen t b id , 1 1 /4 p er cen t o f f e r e d . This i s a new low l e v e l f o r time fu n d s, bein g somewhat below the q u o ta tio n s th a t p r e v a ile d during June 1931, A c t iv it y continued lim it e d , alth ou gh some 90 day loa n s were r e p o rte d at 1 l / 4 per c e n t. N inety day b i l l s continued to be o f fe r e d at 3 /4 o f one per c e n t , prime commer c i a l paper a t a range o f 2 1 /4 - 2 3 /4 p er c e n t, and fe d e r a l funds at l / 8 - l / 4 p er c e n t . Y ie ld s on sh ort term Government s e c u r it ie s flu c t u a t e d ir r e g u la r ly , c lo s in g th e week w ith l i t t l e n et change. Government Security Market The market f o r U nited S ta te s Government s e c u r i t i e s was le s s a c t iv e t h is week than l a s t . The s h o rt-te rm is s u e s and the L ib e rty Loan bonds were s l i g h t l y e a s ie r and the lo n g -te rm Treasury bonds some what s tr o n g e r . While the l a t t e r is s u e s r e f l e c t e d a good u n d erton e, the volume o f tra d in g was not la r g e and d e a le r s r e p o rte d th at buying o rd e rs f o r Treasury bonds having the th ree low est r a t e s o f in t e r e s t were bein g h eld up pending sig n a tu re o f the b i l l exten d in g the c i r c u l a t io n p r iv ile g e to th ese is s u e s . At the c lo s e o f the curren t r e p o r t in g p e r io d the average y i e l d on the sh ort-term is s u e s , at d ea lers* o f f e r i n g p r i c e s , was about 0*46$ as compared w ith 0 .4 1 $ at the c lo s e o f the p re v io u s week, and th e average s e l l i n g p r ic e f o r the L ib e rty Loan bonds was 101*84 and o f Treasury bonds was 9 9.78 as compared w ith the p r e v io u s week’ s average c lo s in g p r ic e s o f 101 .92 and 99.53 r e s p e c t iv e ly . Reproduced from the Unclassified / Declassified Holdings of the National Archives ~~ f DECLASSIFIED * Authority D • 1 5 3 1 3 3 3 3 3 3 1 3 3 D ealers* O ffe r in g P r ic e s a t the Close o f the Current Statement Week and Net Changes from the C lose o f the p r e v io u s Statement Week Approx. Change Y ie ld P r ic e Issue - -l/3 2 1 , 1932 100 7/32 1 /8 # C ert, o f In d. due Aug, tt « - 1 /3 2 0 ,0 8 # S ept, 15, 1932 100 5/32 1 /8 # tt tt »t tt tf -4 /3 2 0 .0 7 # 1 5 , 1932 100 14/32 % » m « W -4 /3 2 100 22/32 O ct, 1 5 , 1932 1 /8 # 0 .2 7 # - 5 /3 2 0 .2 7 # 15, 1932 101 6 /3 2 1 /4 # Treasury Notes ” Dec, -4 /3 2 0 ,1 3 # 3 /4 # C ert, o f Ind. " Feb. 1 T 1933 101 29/32 tt tt Mar, »t tt 0 .5 6 # -4 /3 2 1 5 , 1933 102 2 /3 2 3 /4 # ♦» tt May tt tt - 4 /3 2 0 .6 7 # 2 , 1933 101 1 /3 2 # n tt June 1 5 , 1933 * » -1 /3 2 0 .9 0 # 100 17/32 1 /2 # -4 /3 2 1 .8 3 # 2 , 1934 # 102 1/3 2 Treasury Notes M May tt tt n -3 /3 2 # 101 1 /3 2 2 .6 2 # June 15, 1935 Trea sury B i l l s ** July 8c August m a tu r itie s **- 0 .4 5 # d iscou n t b id , 0 .1 5 # »t « «. - 0 .4 5 # *» " 0 .2 5 # Sept. & O c t, C losin g Sale P r ic e s on th e New York S tock Exchange at the Close o f the Current Statement Week and Net Ghanges from C lose o f the P rev iou s Statement Week Net P r ic e P r ic e Ghange Issue Issue 106 6 /3 2 1 s t '3 l / 2 s - 5 /3 2 Treasury 4 1 /4 s 1947-52 101 5 /3 2 w 1944-54 102 25/32 101 23/32 4s 1 st 4 l / 4 s - 1 /3 2 tt 100 26/32 102 21/32 -1 /3 2 3 3 /4 s 1946-56 4th 4 l / 4 s tf 99 1 /3 2 3 3 /8 s 1943-47 tt 99 12/32 3 3 /8 s 1940-43 tt 99 3/3 2 3 3 /8 s 1941-43 tt 96 1/32 3 l / 8 s 1946-49 tt 94 30/32 1951-55 3s Net Change +11/32 + 4 /3 2 + 2/32 + 1 /3 2 + 4 /3 2 - 4 /3 2 +21/32 +28/32 Bankers A cceptances D e a le r s ’ o f f e r in g s o f unendorsed bankers a ccep ta n ces were at the fo llo w in g ra te s at the c lo s e o f the cu rren t statem ent week: 3 /4 p er c e n t f o r 3 0 s, 60s and 9 0 s f 7 /8 p er cen t f o r 120s and 1 1 /8 p er cent f o r 180-day b i l l s . These r a te s i/sere unchanged from the c lo s e o f the two p reced in g weeks. R eports week ended J u ly 20 Bos ton rep orted the supply o f b i l l s in i t s d i s t r i c t con tin u ed sm all and d ea lers were o b lig e d to o b ta in b i l l s from t h e ir o f f i c e s in o th e r c i t i e s to com plete s a le s a g g reg a tin g $ 7 ,1 5 1 ,0 0 0 , These s a le s , however, were r e s t r i c t e d to two buyers and the l o c a l market as a whole was d u l l . In New Y ork the b i l l market was q u ie t throughout the week* D ealers* s a le s exceeded t h e ir purchases by about §3 ,0 0 0 ,0 0 0 and a g grega te p o r t f o l i o s d e c lin e d by a l i k e amount to ^ 3 2 ,0 0 0 ,0 0 0 . D ealers rep orted a good in q u iry f o r s e l e c t i v e names, but very few were o f f e r e d . P h ila d e lp h ia re p o rte d the market in i t s d i s t r i c t continued d u l l . O ffe r in g s were v e r y sm all and the demand continued to d e c lin e . Chicago re p o rte d there was some demand f o r b i l l s in i t s d i s t r i c t but the supply was sm a ll, D a lla s r e p o rte d th ere was no demand fo r b i l l s in i t s d i s t r i c t and no b i l l s were o f f e r e d to the r e s e r v e bank# Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority ^ »D • \b G 0 j | | OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY The on ly tr a n s a c tio n consummated under Treasury a u th o r iz a tio n during the cu rren t statem ent week c o n s is t e d o f the Sale o f $300,000 -* Fourth 4 1/4% L ib e rty Loan bonds f o r accou n t A lie n P rop erty Gustodian SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES Under a u th o r ity granted at the m eeting o f the Open Market P o lic y Con fe re n ce h e ld in Washington on J u ly 14, 1932, and in view o f the f a c t th a t e x ce s s re se r v e s o f a l l member banks were estim ated at about $175 m il l i o n s , purchases o f $15 ,02 4,500 U nited S ta te s Government s e c u r it ie s were made f o r System Account dur i n g the cu rren t statem ent week, as f o llo w s : $ 500,000 2 ,2 2 2 ,0 0 0 3 .0 0 0 .0 0 0 2 .0 0 0 .0 0 0 302,500 7 .0 0 0 .0 0 0 - Treasury B i l l s due S ep t. 28, 1932 " " t? O ct. 11, 1932 3 1/8% C /I M " 1 5 , 1932 3 1/4% T/N M Dec. 15, 1932 2 % C /I ” May 2 , 1933 4 1/4% 4 th L/L Bds. o f 1933-38 $15,024,500 o f th ese s e c u r i t i e s , ^ 14 ,72 2,0 00 were purchased in the New York market and $302,500 in the San F ra n cisco m arket. Other tr a n s a c tio n s e f f e c t e d in the A ccount during the cu rren t p eriod con s is t e d o f ; (1) Redemption on Ju ly 20 R eplaced by purchase in the market §4 0 ,4 7 5 ,0 0 0 - maturing T reas. B i l l s $ 2 3 ,00 0,000 - 3 % C / l due S ep t. 15, 6 ,0 0 0 ,0 0 0 - 3 1/8% ” " O ct. 15, 1 1 ,0 0 0 ,0 0 0 - T reas. B i l l s * ' * 19, 475,000 - 1 1/2% C /I due June 1 5 , 1932 1932 1932 1933 §4 0 ,4 7 5 ,0 0 0 - Of t h is amount, $475,000 was _____________ purchased in the San F ra n cisco m arket. (2) Exchanges in the market at advantageous r a t e s : S old Purchased $ 1 ,0 0 0 ,0 0 0 - T r e a s .B ills due Aug. 17, 1932 $ 5 ,0 0 0 ,0 0 0 - T r e a s .B ills due S e p t ,28,1932 4,0 0 0 ,0 0 0 - 3 1/8% C /I w " 1 , 1932 $ 5 ,0 0 0 ,0 0 0 On Ju ly 20, owing t o the low reserv e p o s it io n o f the F ederal R eserve Bank o f A tla n ta , $5 ,0 0 0 ,0 0 0 o f i t s p a r t ic ip a t io n in government s e c u r it ie s h eld in the System Account was taken over tem p ora rily in to the p a r t ic ip a t io n o f the F ed eral Reserve Bank o f New Y ork, Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority D •\ ^ j The a d d it io n a l purchases during the week o f $15,024,500 government secu r i t i e s in crea sed the amount o f t o t a l h old in g s in the A ccount to $ 1 ,6 2 4 ,6 0 7 ,5 0 0 . The p a r t ic ip a t io n s by F ed eral reserv e banks and the c l a s s i f i c a t i o n o f is su e s h e ld in the Account at the c lo s e o f business Wednesday, Ju ly 2 0 , 1932, were as f o llo w s : PARTICIPATION BY FEDERAL RESERVE BANKS Boston New York P h ila d e lp h ia Cleveland Richmond A tla n ta Chicago S t. Louis M inneapolis "Kansas C ity D allas San F ra n cisco T o ta ls $ 95 ,9 7 8 ,5 0 0 613,640,500 134,756,500 176,707,000 47,132 ,5 00 46,560,000 198,557,500 65,018 ,0 00 46,637,000 56,730,500 20,721 ,0 00 122,168,500 RECAPITULATION OF HOLDINGS BY MATURITIES Ju ly Aug. it tf If 27, 10 * 17, 24, 31, S e p t. 28, O ot. 11, tr 19, Aug. 1, S ep t, 15, u 15, O ct. 15, 15, Dec, Feb. 1, Mar, 15, May 2, June 15, 2, May June 15, tt 15, ti 15, O ct, 15, $ 1932 - T r e a s .B ills ti tt 1932 II w 1932 tf ¥ 1932 II tl 1932 n tf 1932 rr ti 1932 ii ti 1932 *T 1932 - 3 1 /8 % C /I 1932 - 1 1/8% tf II 1932 - 3 % tt 1932 3 1 /8 # 1932 - 3 1/4-$ T/N 1933 - 3 3 /4 % C /I 1933 - 3 3 /4 % tf tf 1933 - 2 % 1933 1 1 /2 $ it 3 1934 $ T/N tf 1935 - 3 $ 193 2/4 7-3 1/2% 1 st L/L 19 3 2 /4 7 -4 1 /4 $ 1 st ” 193 3/3 8-4 1/4% 4th ” 43,150 ,0 00 16,000 ,000 52,600,000 47,427 ,0 00 76,029,000 14,500 ,0 00 42,222 ,0 00 11,000 ,0 00 56 >650,000 86,893,000 124,009,500 94,011,500 113,697,000 13,275 ,0 00 153,025,000 102,652,500 95,075,000 69,175 ,0 00 7 7,600,000 7 3,025,000 23,000,000 239,591,000 $ 1 ,6 2 4 ,6 0 7 ,5 0 0 $1 ,6 2 4 ,6 0 7 ,5 0 0 ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND EANKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF AIL FEDERAL RESERVE BANKS _________________________ FROM JULY 14 TO JULY 20, 1932, INCLUSIVE__________________________ l > 8 SECURITIES - SYSTEM INVESTMENT ACCOUNT B oston New York P h ila d e lp h ia C levelan d Richmond A tlan ta Chicago S t. L ou is M inneapolis Kansas C ity D allas San F ra n cisco Purchases # 2,711,50 0 28,705,000 4 ,9 3 9 ,0 0 0 6,525,500 1,331,50 0 1,4 5 7 ,0 0 0 7,471,500 3 ,283,50 0 1 ,756,00 0 2,041,00 0 585,500 4,692,500 Sales $ 2,711,50 0 17,005,500 3,774,50 0 4,948,00 0 1,331,500 6,457,00 0 5,556,000 1,795,00 0 1,3 0 5 ,0 0 0 1,5 9 0 ,0 0 0 585,500 3 ,415,50 0 Adjustm ents in P a r t ic ip a t io n s 0 * 0 0 0 0 0 0 0 0 0 0 0 T ota ls $65,499,500 $50,475,000 $ 0 Net Net Decrease In crease $ 0 $ 0 11,699,500 0 1,164,50 0 0 1,577,50 0 0 0 0 5,000,00 0 0 1,915,50 0 0 1 ,4 8 8 ,5 0 0 * 0 451,000 0 451,000 0 0 0 0 1,2 7 7 ,0 0 0 $20,024,500 $5,000,000 * R epresents th e ir share o f purchases fo r System Account during statement weeks ended July 13 and 20, 1932. Reproduced from the Unclassified I Declassified Holdings of the National Archives “ DECLASSIFIED * Authority ^ ““ 1 >Q • \ b G ^ j | HOLDINGS IN GOVERNMENT SECURITIES (SALES CONTRACTS) Net Change From P rev iou s Week NONE OTHER TRANSACTIONS 3N GOVERNMENT SECURITIES Purchases B oston New York A tla n ta Chicago M inneapolis T o ta ls (EXCLUDING SALES CONTRACTS) .Sales Issu e Issue (a ) $ 2 ,500 ,0 00 (d) 4 ,9 9 9 ,5 0 0 594,350 (c) 2 ,5 0 0 ,0 0 0 934,150 - 1 1/8% C /I 9 /1 5 /3 2 5 0 9,999,500 - M isc. Gov’ t S ec. (b) 505,950 " " " 0 - 1 1/8% C /I 9 /1 5 /3 2 1 ,0 03,61 0 - M isc. Gov’ t S e c. $*1 ,528,000 $11 ,50 9,060 M isc. Gov’ t S ec. w n w M isc. Gov’ t S ec. (a ) Purchased tem p ora rily from p o r t f o l i o F. R. B. N. Y # (b ) In clu d es tem porary s a le o f 4>2,500,000 each to F. R. Bks. o f B oston and Chicago owing to low reserv e p o s it io n o f New Y ork Bank* ( c ) Purchased tem p ora rily from p o r t f 6 1 io F. R. B. N. Y« (d ) Held tem p ora rily f o r r e s a le to System A ccou n t, BAIORS ACCEPTANCES (000 Omitted) H oldings July 13 Boston Nevf York P h ila* G leve. Richmond A tla n ta Chicago S t. Louis Minn. Kan. C ity D allas San Fran. T o ta ls NOTE: $ 743 4,095 756 1,054 2,291 1,022 3,275 485 354 645 531 3,190 $18,441 Purchased Own Mkt. By A l l o t ment from New York & o 119 R. 0 0 140 w 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ^>259 0 M a tu r itie s and S a les Held Held E ls e in where N. Y. & o 2,6 5 5 749 0 90 2 0 11 315 15 159 0 $3,996 R. in d ic a te s R etain ed in alcove sta tem en t. 1 o 0 0 829 0 210 855 0 0 0 0 54 £1,948 Other H oldings C lose July 20/32 S a les H oldings Con Other July 20 t r a c t s B ills 0 743 1,559 7 225 2,341 810 2,420 474 39 630 372 3,136 #12,756 $ 0 7,569 0 0 0 0 0 0 0 0 0 807 $ 2 ,343 10,150 3 ,175 3,102 1 ,228 1,136 4,131 1,004 631 891 860 2,119 §8,376 $30,770 Reproduced from the Unclassified I Declassified Holdings of the National Archives P DECLASSIFIED Authority }Q \ ^ 1 7 MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDED JULY 2 0 , 1932 (000 Omitted) 1-30 days Vfp New York Richmond $ 3 15* 31-60 days 1 1/2% Over 9 0 -days 61-90 days T ota l -,1* 0119 140 ^116 __ 0 _ $ 0 125 3116 T ota ls *Purchascd a t 1 l/2fo* RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES DURING WEEK ENDED JULY 2 0 , 1952 - (000 Om itted) (E xclu d in g S ales C on tra cts) Gover rrnent S e c u r it ie s Purchased Sold Matured T o ta ls $77,027 21,509 40,475 915,043+ Bankers A cceptances T ota l 259 0 5,9 4 4 § 5 ,6 8 5 28+ (Net Change _______ 1-day h o ld o v e r and oth er b i l l s ) $ 5 S657- §77,286 21,509 46,419 $ 9,358+ 28+ (Net Change ________ 1-d ay h old over and o th e r b i l l s ) $ 9,386+ HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED JULY 2 0 ; 1932 (000 Omitted) (In c lu d in g S a les C on tra cts) W ithin 1 5 -days 16-30 days 31-60 days 61-90 days 91 days6 months Over 6 months T ota l G o v 't S e c u r it ie s $102,354 $84,600 $384,302 $150,734 $132,717 $981,468 $ 1 ,8 3 6 ,1 7 5 B i l l s Purchased 1 8 ,192 5,087 11,474 17,149 0_________ 0_________ 51,90S T o ta ls $120,546 ,,89,687 ^395,776 $167,883 $132,717 &981r468 $1,888 ,0 77 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority f c . p . u f1 l . J . ',<U K <' C ro y s . , / Fe d e r a l R e s e r v e B a n k of N e w Y o r k COSFIESNTIAL July 15, 1952 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 July 7, 1932 to July 13, 1952 inclu sive, together with data received from Federal reserve banks. Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority Fe d e r a l R e s e r v e B a n D •\ b G 0 [ k of N e w Y o r k CONFIDENTIAL July 15, 1932 Mr. E. L. Sinead, Chief, D ivision o f Bank Operations, Federal Reserve Board, Washington, D. C. Dear Mr. Smeads Enclosed i s a report o f open market operations fo r the period from July 7 , 1952 to July 15, 1932 inclu siv e , together with data received from Federal reserve banks. Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives P" ' DECLASSIFIED' Authority ^ >Q • \ b G ^ j A -i Cov. k '...... Mr, iV-r. j an Fe d e r a l R e s e r v e B a n k /f .. f-/i r . ?/:. ?';g Pf- Mr. of N e w Y o r k Mr. Ptile - A -- - ....--- M r, y.r, r ici.se note ' initial (ieu;rn io Secret-y\ CONFIDENTIAL J u ly 1 5 , 1932 Dear Governor Meyer: E n closed i s a r e p o r t o f open market o p e r a tio n s f o r the p e r io d from J u ly 7 , 1932 t o J u ly 1 5 , 1932 in c lu s i v e , to g e th e r w ith data r e c e iv e d from F ed eral re se rv e banks. A s s is ta n t Deputy Governor Honorable Eugene Meyer, Governor, Federal Reserve Board, Washington, D. C. ' Reproduced from the Unclassified / Declassified Holdings of the National Archives ~ f DECLASSIFIED Authority 1^> Q • \ j ^ | CONFIDENTIAL REPORT OF OPMMARKET OPERATIONS SDR WEEK ENDED JULY 15 ^ 1952 H oldin gs o f Earning A s s e ts o f F ederal R eserve Banks from July, .15, 1931 t o pate COOu Omitted? -1 9 3 1 J u ly 15 H 29 Aug. 26 S e p t, 30 O ct, 28 Nov • 25 Dec* 30 -1 9 3 2 Jan* 27 Feb. 24 Mar, 30 A pr, 27 May 25 June 29 6 J u ly tt 13 ^ In clu d es Treasury TOTAL EARNING ASSETS $ 921,157 934,795 1 ,1 5 6 ,6 3 6 1,557 ,970 2 ,1 9 8 ,2 3 8 l i 925,509 2 ,1 8 5 ,2 1 6 GOVERNMENT SECURITIES O u trig h t S a le s C on tra cts Purchases #' 677,853 $ o 677,977 0 0 727*998 3,890 738,455 726,659 0 727,101 0 38,295 764,933 BANKERS ACCEPTANCES Otit r ig h t S ales Purchases C on tracts $ 70,074 $ 334 62,909 3,627 179,476 1,042 449,022 19,505 723,262 1 ,4 1 8 479,225 573 78,267 248,708 BILLS DISCOUNTED $ 161,803 183,036 241,718 327,925 716,680 686,401 1 ,0 2 4 ,1 3 3 8,590 153,671 1,7 8 7 ,9 1 2 750,216 1,500 6,517 126,865 1 ,7 2 3 ,8 6 2 550 740 ,006 11,562 4,081 860,056 62,281 1 ,5 7 8 ,1 4 6 45 ,8 7 4 0 1,773*745 1 ,1 9 1 ,2 3 2 0 38,373 0 2 ,0 4 0 ,0 5 6 1 ,5 2 4 ,8 9 6 300 1 ,7 9 5 ,2 1 9 * 47,787 15,732 2 ,3 4 0 ,2 6 2 * 5,752 51,296 26,057 1 ,8 0 1 ,0 6 5 2,3 8 4 ,2 3 7 0 12,438 1 ,8 2 1 ,1 3 2 49,183 2 ,4 0 4 ,2 5 8 0 $ 2 4 ,OOO,000 s p e c ia l one-day c e r t i f i c a t e o f indebtedness issu ed by t o F ed eral R eserve Bank o f Chicago on June 29* 837,639 835,243 633,255 531,824 471 ,.267 469,828 499,826 515,570 CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS) _________________DURING WEEK ENDED JULY 13, 1932_______________________ (000 O m itted) GOVERNMENT SECURITIES Net Balance J u ly 13 Change Boston $ New York P h ila d e lp h ia C leveland Richmond A tlan ta Chicago S t . L ou is M inneapolis Kansas C ity D a lla s San F ra n cisco N, Y , h o ld o v e rs and oth er b i l l s T o ta ls 118,728 695,780 136,998 175,129 47,133 51,682 269,757 64,030 53,916 56,366 30,721 120,892 $ 5,999+ 3,400+ 2,000+ 2,100+ 0 6+ 2,552+ 0 660+ 1,650+ 0 1,700+ BANKERS ACCEPTANCES Net Balance Change J u ly 13 $ 743 4,0 9 5 756 1,054 2 ,291 1,022 3 ,275 485 354 645 531 3,190 30,742 $ 1 ,8 2 1 ,1 3 2 $20,067+ # 4 9 ,1 8 3 $ 31238+ 0 1 ,1 4 2 0 81+ 600— 0 0 0 15+ 155- BILLS DISCOUNTED Net Balance July 13 Change $ 26,817 103,053 70,385 52,586 26,284 39,771 37,126 12,662 12,384 22,946 15,743 95,813 f 1 ,7 9 8 171+ 1,943+ 1 ,1 6 3 1603,835+ 2,352+ 541656938+ 2,505+ 8*318+ $515,570 $15,744+ 519$2,1 1 3 — COMMENT ON CHANGES WEEK ENDED JULY 1 3 , 1932 T o t a l earning a s s e t s o f the System showed an in cre a se o f # 2 0 ,02 1,000 f o r the cu rre n t statem ent week. The changes by c l a s s i f i c a t i o n c o n s is te d o f in c r e a s e s o f $ 2 0 ,06 7,000 in o u tr ig h t h o ld in g s o f government s e c u r i t i e s and $15 ,74 4,000 in b i l l s d iscou n ted and d ecrea ses in o u t r ig h t h o ld in g s o f bankers a ccep ta n ces and bankers a cce p ta n ce s h e ld under s a le s c o n t r a c t o f $2 ,1 1 3 ,0 0 0 and $13*619,000 r e s p e c t iv e ly * Reproduced from the Unclassified I Declassified Holdings of the National Archives “ r- , DECLASSIFIED * Authority >D • \ “1 | j 2 Money Market The d a ily average volume o f ex cess r e s e r v e s h eld by a l l member banks throughout the cou n try was estim a ted to be $140,0 00,000 f o r the week ended y esterd a y* compared w ith about $110,0 00,000 a week e a r lie r . For the la rg e New York C ity banks, the e x ce s s o f a c t u a l r e se rv e s a t the opening o f b u sin ess tod ay amounted t o $>72*000,000, - r e p re s e n tin g a r is e o f $45*000,000 from l a s t week’ s f ig u r e . Gains f o r the week r e s u lte d c h i e f l y from an in flo w o f funds to New York from o th e r p a r ts o f the co u n try , n et cu rren cy d e p o s it s a t the Reserve Bank, and an in crea se in th e c o u n tr y ’ s monetary g o ld s t o c k , r e p re s e n tin g p r i n c i p a l l y a net r e le a s e o f g o ld from f o r e ig n earmarkings* A d d itio n a l purchases o f Government s e c u r it ie s f o r th e System S p e c ia l In v est ment Account a ls o p la ce d a s iz a b le Volume o f funds a t th e m arket’ s d is p o s a l, but o n ly a sm all net expansion in ou tsta n d in g R eserve Bank c r e d i t o c c u r r e d , as the aforem en tion ed ga in exceeded by o n ly a moderate amount the re tire m e n ts o f F ed eral R eserve repurchase agreement b i l l h o ld in g s . O ffs e t t in g in p a rt th ese a d d it io n s t o C it y bank b a la n c e s , th ere was a n et withdrawal o f Treasury funds frcm New York through c a l l s from Government d e p o s it a r ie s and through a s a le o f Treasury B i l l s , which were s u b s t a n t ia lly la r g e r than T reasury disbursem ents h e r e , c h i o f l y f o r a m a tu rity o f Treasury B i l l s . In some d iv is io n s o f the money market s l i g h t l y low er quota t io n s were in e f f e c t . Commercial paper was reduced to a range o f 2 1 /4 %o 2 3 /4 p e r c e n t f o r prime fo u r t o s ix month m a t e r ia l, compared w ith 2 1 /2 t o 2 3 /4 p er c e n t a week a g o . The r u lin g r a t e f o r F ederal funds i s now 1 /8 t o 1 /4 per c e n t . Y ie ld s on sh ort-term U nited S ta tes Government s e c u r i t i e s are a ls o s l i g h t l y low er* Other r a t e s , how ever, h e ld t o the low l e v e l s r e p o rte d l a s t week: c a l l money, 2 p e r c e n t; n in e ty day b i l l s , o f fe r e d a t 3 /4 per c e n t ; and time money, 1 1 /2 p er cen t f l a t f o r a l l m a tu r itie s from two to s ix months. Government Security Market The market f o r United S ta te s Government s e c u r i t i e s con tin u ed a c t iv e and m od erately stro n g during the cu rren t statem ent week. The sh ort-term is s u e s , and L it e r t y Loan bon ds, advanced t o s l i g h t l y h igh er l e v e l s w hile th e tre a su ry bonds re co rd e d gains in p r ic e s ranging from 7 /3 2 to 1 .1 0 /3 2 , the la r g e s t gain s b ein g made in the is su e s bea rin g the low er r a t e s o f i n t e r e s t , due, no doubt* to the proposed l e g i s l a t i o n which would extend the c i r c u l a t i o n p r iv ile g e t o th ese is s u e s . At the c lo s e o f the cu rren t r e p o r tin g p e r io d the average y i e l d on the s h o rt term is s u e s , a t d e a le r s ’ o f f e r i n g p r i c e s , was about 0 .4 1 $ as compared w ith 0 .4 7 $ a t the c lo s e o f the p re v io u s vtreek and the average s e l l i n g p r ic e f o r the L ib e r ty Loan bonds was 101.92 and f o r th e Treasury bonds 99 .5 3 as compared w ith the p re v io u s week’ s average p r ic e s o f 1 01.91 and 98.71 r e p s e c t iv e ly . Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority l£ > 0 • \ 1 3 3 1 3 3 3 3 3 2 1 3 3 Dealers* O ff e r in g P r ic e s a t the C lose o f th e Current Statem ent Week C lose o f the P re v io u s Statem ent Week Net Approx, Y ie ld Change Issue P r ic e In d. i 1 9 3 2 1 0 0 8 / 3 2 1 / 8 $ C e rt, o f due Aug, 1 * w tt tt n --- ---------------0 * 0 1 $ S ep t. 1 5 , 1 9 3 2 1 / 8 $ 1 0 0 6 / 3 2 it w tt tt tt $ 1 9 3 2 1 0 0 1 8 / 3 2 1 5 , tt » t» tt O ct. 1 0 0 2 6 / 3 2 1 / 8 $ 1 5 , 1 9 3 2 0 .0 8 $ 1 0 1 1 1 / 3 2 1 / 4 $ Treasury Notes tt Dec. 1 5 , 1 9 3 2 tt + 1 / 3 2 0 .0 3 $ 3 / 4 % 1 9 3 3 1 0 2 1 / 3 2 C ert, o f Ind. Feb. 1 « tt w tt 0 * 4 6 $ + 2 / 3 2 1 0 2 6 / 3 2 3 / 4 % Mar. 1 5 , 1 9 3 3 « tf « tt May 0 .5 4 $ + 4 / 3 2 1 9 3 3 ' $ 1 0 1 5 / 3 2 2 , tt tt tt June 1 5 , 1 9 3 3 M + 4 / 3 2 0 * 8 7 $ 1 0 0 1 8 / 3 2 1 / 2 $ 1 * 7 7 % $ + 4 / 3 2 T reasury Notes t t May 1 0 2 5 / 3 2 1 9 3 4 2 # tt ft tt 2 ,5 9 $ + 3 / 3 2 % 1 0 1 4 / 3 2 June 1 5 , 1 9 3 5 Trca sury B i l l s m aturing J u ly 2 0 & 2 7 Aug,. 1 0 , 1 7 & 2 4 - 0 * 4 0 $ d iscou n t b id , 0 . 1 5 $ asked » tt n n tt 0 .2 0 $ ** Aug . 3 1 , S e p t . 2 8 - 0 . 4 0 $ » tt t» « « 0 .2 5 $ ** Oct,. 1 1 0 .4 0 % - - - „ — - — - _ — , G losin g Sale P r ic e s on the New York Stock Exchange at the C lose o f the Current Statement Week and Ne t Changes from C lose o f the P re v io u s Statement Week Net Net Change P r ic e Issue Issue P r ic e Chaise + 20/32 1st 3 l /2 s ioi 10/32 + 2/32 T reasury 4 l / 4 s 1947-52 105 27/32 tt + 7 /3 2 1944-54 102 21/32 101 2 4/32 +1/32 4s 1 s t 4 1 /4 8 tt + 17/32 102 2 2/32 - 2 /3 2 3 3 /4 s 1946-56 100 24/32 4 th 4 1 /4 s tt 99 + 26/32 3 3 /8 s 1943-47 tt + 23/32 99 8 /3 2 3 3 /8 s 1940-43 tt 99 7/3 2 +1. 3 /3 2 3 3 /8 s 1941-43 *t +1. 7 /3 2 95 1 2 /3 2 3 l / 8 s 1946-49 tt + 1 .1 0 /3 2 94 2 /3 2 1951-55 3s Bankers A ccep tan ces D ealers* o f f e r i n g s o f unendorsed bankers a ccep ta n ces were at the fo llo w in g r a t e s a t the c lo s e o f the cu rren t statem ent week: 3 /4 pex cen t f o r 3 0 s , 60s and 9 0 s , 7 /8 p er c e n t f o r 120s and 1 1 /8 p er cent f o r 180-day b i l l s * These r a te s were unchan&>d from th e c lo s e o f the p re v io u s week# R ep orts week ended J u ly 13 Boston r e p o r t e d th a t there was some improvement in the de mend f o r b i l l s in i t s d i s t r i c t w ith the su p p ly sm all* D ealers were o b lig e d t o import abou t # 3 ,5 0 0 ,0 0 0 b i l l s from t h e ir o f f i c e s in o th e r c i t i e s in o r d e r t o f i l l t h e ir orders* In New Y ork the b i l l market was more a c t i v e . D ealers* s a le s in crea sed c o n s id e r a b ly j p r in c ip a lly t o l o c a l banks, the volume being g r e a t e r than any week s in c e the m iddle o f March* D ealers* p u rch ases, however* showed no in crea se o v e r the p re v io u s week and were exceed ed by t h e i r s a le s t o the ex te n t o f $ 2 0 ,0 0 0 ,0 0 0 , th ereby reducing p o r t f o l i o s t o §35,000 ,0 00* P h ila d e lp h ia re p o rte d i t s acceptan ce market was d u ll w ith v e r y l i t t l e o u ts id e bu y in g. P o r t f o l i o s showed l i t t l e change. Chicago and D a lla s both re p o rte d there was no change in t h e ir r e s p e c t iv e b i l l markets* Reproduced from the Unclassified I Declassified Holdings of the National Archives “ DECLASSIFIED * Authority 0 • \ | | OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY The only transaction consummated under Treasury authorization during the current statement week consisted o f the Sale o f $100,000 - Fourth 4 1 /4 $ Liberty Loan bonds for account Alien Property Custodian SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES Under authority granted at the meeting o f the Open Market Policy Conference in Washington on May 1 7 , 1932, purchases were made o f $20,000,000 goveriment secu rities for System Account during the current statement week as follow s: $ 7,000,000 4 ,5 0 0 ,0 0 0 3 ,5 0 0 ,00 0 500,000 4,500,000 - 3 1 /8 $ C /I due Aug. 1 . 1932 ♦t 1932 3 Sept. 15, * * w ♦» 1 1 /8 # « 15, 1932 w 2 May fo " 2 , 1933 M 3 June 15, 1935 $ T/N $20 ,00 0,000 Of these purchases, $ 1 9 ,5 0 0 f000 were made in the New York market and $500,000 in the San Francisco market. Other transactions effected in the Account during the current period consisted o f: (1) Redemption on July 15 $41,000,000 - maturing T r e a s .b ills (2) Exchanges in the market: • Sold Beplaced by purchase in the market $40,000,000 - T r e a s .b ills due Oct, 1 1 , 1932 1,000,000 - 3$ T/N " May 2 , 1934 $41,000,000 -------------------- $ 6,500,000 - 3$ T/N due June 15 , 1935 Purchased $6,500,000 - 4th 4 1/4% I /L Bds. o f 1933-38 (3) Sale in the market o f secu rities acquired under resale agreement to be held u n til such time as peimanent replacements could be made. Sold Replaced by purchase in the market $10,000,000 - 3 1 /8 $ C /I due Aug. 1 , 1932 $1,0 0 0 ,0 0 0 - 3$ T/N due May 3* 1934 9 ,0 0 0 ,00 0 - 3% " " June 15, 1935 #1 0 ,0 0 0 ,0 0 0 The additional purchases during the week o f $20,000,000 government secu rities increased the amount of to ta l holdings in the Account to $1,60 9 ,5 8 3 *0 0 0. The participations by Federal reserve banks and the c la s s ific a tio n o f issues held in the Account at the close o f business Wednesday, July 1 3 , 1932, were as follow s: Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED * Authority 0 • | I I i 5 PARTICIPATION BY FEDERAL RESERVE BANKS Bos ton New York P h ila d e lp h ia Cleveland Richmond A tlan ta Chicago S t , L ou is M inneapolis Kansas C ity _ D a lla s 3an F ra n cisco $ 95 s9783500 6 0 1 ,9 4 1 ?000 133j 592*000 175,129,500 4 7 ,1 3 2 3500 5 1 ,560ji000 196,642,000 63,529,500 4 6 ,1 8 6 3000 56,279,500 20,721,000 120,891,500 - T o ta ls RECAPITULATION OF HOLDINGS BY MATURITIES Ju ly 20, 27, Aug. 10, »t 17, tt 24, H 31, S e p t. 28, O ct. H i Aug. 1, S ep t. 15, n 15, O ct. 15, Dec. 15, Feb. 1, Mar. 15, May 2, June 1 5 , May 2, June 1 5 , tt 15, tt 15, O ct. 1 5 , tt 40,475 ,0 00 43,150 ,0 00 1 6 ,0 0 0 ,0 0 0 53,600,000 47,427 ,0 00 76,029 ,0 00 9 ,0 0 0 ,0 0 0 4 0 ,0 0 0 ,0 0 0 60 ,6 5 0 ,0 0 0 8 6 ,8 9 3 ,0 0 0 101 ,00 9,500 8 5 ,0 1 1 ,5 0 0 111 ,69 7,000 13,275 ,0 00 153 ,0 2 5 ,0 0 0 102 ,35 0,000 9 4 ,600 ,0 00 6 9 ,1 7 5 ;000 7 7,600,000 7 3,025,000 23 ?;000,000 232 ,59 1,000 1932 - T r e a s .B ills § tf tt 1932 tt tf 1932 tt tt 1932 tt tt 1932 tt It 1932 tt tt 1932 tt tt 1932 1932 - 3 1 /8 $ G / I 1932 - 1 1 /8 $ n w 1932 - 3 P 1932 - 3 1/655 tt 1932 - 3 1/4?; T/N 1933 - 3 3 /4 $ c / i 1933 - 3 3/4% tt tt 1933 - 2 f° 1933 - 1 1 /2 * « 1934 - 3 $ T/N tt 1935 - 3 $ 1 9 3 2 /4 7 -3 1/2% 1st V i* 1 9 3 2 /4 7 -4 1 /4 $ 1 s t tt 1 9 3 3 /3 8 -4 1 /4 $ 4th t» $ l r6 09,583,000 $ 1 ,6 0 9 ,5 8 3 ,0 0 0 ITMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS FROM JULY 7 TO JULY 13, 193®, INCLUSr/iS . GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT P urchases Boston New Y ork P h ila d e lp h ia C leveland Richmond A tla n ta Chicago S t . L ou is M inneapolis Kansas C ity D a lla s San F ra n cisco T o ta ls S a les Net In crease Adjustm ents in P a r t ic ip a t io n s & 3 ,4 3 6 ,0 0 0 30,891 ,5 00 6,7 7 0 ,5 0 0 8 ,3 5 7 ,0 0 0 1 ,6 8 8 ,0 0 0 1 ,8 4 6 ,0 0 0 9 ,5 7 4 ,0 0 0 2 ,2 7 4 ,5 0 0 2 ,2 4 9 ,0 0 0 2 ,0 0 4 ,5 0 0 742,000 6 ,0 1 7 ,0 0 0 & 3 ,4 3 6 ,0 0 0 1 9,841 ,5 00 4 ,7 7 0 ,5 0 0 6 ,2 5 7 ,0 0 0 1 ,6 8 8 ,0 0 0 1 ,8 4 6 ,0 0 0 7 ,0 2 4 ,0 0 0 2 ,2 7 4 ,5 0 0 1 ,6 4 9 ,0 0 0 2 ,004,50 0 742,000 4 ,3 17,00 0 fc 0 1 ,6 5 0 ,0 0 0 0 0 0 0 0 0 0 1 ,650,00 0+ * 0 0 § 0 9 ,4 0 0 ,0 0 0 2 ,0 0 0 ,0 0 0 2,1 0 0 ,0 0 0 0 0 2 ,5 5 0 ,0 0 0 0 600,000 1 ,6 5 0 ,0 0 0 0 1 ,7 0 0 ,0 0 0 § 7 5 ,8 5 0 ,0 0 0 #55 ,85 0,000 $ 1 ,6 5 0 ,0 0 0 A d j. $20 ,00 0,000 ^R epresents a llo tm e n t on J u ly 12 o f t h e ir share o f $ 3 0 ,00 0,000 purchases made on J u ly 6«, Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED' | Authority 1£> D • \ 6*5 ^ | % 6 HOLDINGS IN GOVERNMENT SECUBITIES (SALES CONTRACTS) Net Change from Previous Week NONE OTHER TRANSACTIONS IN GOVERNMENT SECURITIES -(EXCLUDING SALES CONTRACTS) Purchases Boston New York Atlanta Chicago Minneapolis Totals Issue Sales (a) $6,000,000 Treas. B i l l s due 21,500,000 Misc. Gov’ t Sec* 111,150 M » » 1,900 " M " 1,333,400 * n « Issue 8 /1 0 /3 2 0 (b) $27,500,000 Misc. Gov't Sec 105,400 " " *» 0 1 ,2 7 4,500 Misc. Gov«t Sec §28*879,900 $28,946,450 (a) Purchased temporarily from p o rtfo lio F, R. B. New York (b) Includes $6*000,000 taken over temporarily by F.R.B. Boston due to low reserve position o f the New York bank* BANKERS ACCEPTANCES (000 Omitted) M aturities and Sales Holdings July 6 $ 774 Boston New York 3,857 Phila* 756 2,196 Cl eve •. 2,291 Richmond Atlanta 941 3 *875 Chicago S t. Louis 485 Minn. 354 Kan. City 645 516 Dallas San Fran. 3,345 To tals §2 0 ,0 3 5 By A ll o t Purchased ment from Own Mkt. New York 0 $ o 338 R« 0 0 0 0 0 0 0 102 R. 0 0 0 0 0 0 0 0 0 20 R. 0 262 R. 0 #722 0 Held in N.Y. 5 0 100 0 0 0 0 0 0 0 0 5 0 Held Else where £ 31 0 0 1*142 0 21 600 0 0 0 0 417 Holdings July 13 § 743 4*095 756 1,054 2,291 1*02 2 3,275 485 354 645 531 3,190 Other Holdings Close July 13/32 Sales Con Other tracts B i lls $ 2 s343 f 0 10,122 12,438 3,175 0 3,102 0 1*338 0 0 4*131 0 1 ,0 0 * 0 0 651 891 0 860 0 2,119 0 $105 02,211 $18,441 $12,438 NOTE: R. indicates Retained in above statement# $30,742 Reproduced from the Unclassified I Declassified Holdings of the National Archives MATURITIES AND RATES ON BILLS .PURCHASED WEEK ENDED JULY 1 5 , 1952 [000 Omitted) ' 1-30 days New York A tla n ta D allas San F ra n cisco T o ta ls 31-60 days 1# $268 0 I 50 102 8 12 20* 0 61-90 days 3 1 /3 $ Over 90-days T o ta l $338 $ 0 0 0 242 102 20 262 -242 $296 0 $722 *Purchased a t 3 1 /2 RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES AND BANKERS ACCEPTOCB5 DURING WEEK ENDED JULY 1 3 , 1932 " r' ^ (006 f i t t e d ) :T" ..' ^ (E xclu d in g S a les C o n tra cts ) Government Bankers S e c u r it ie s A ccep ta n ces T o ta l Purchased S old Matured 722 0 2 >316 0 1 ,5 9 4 519- (Net Qhange 1 -d ay h old over and oth er b i l l s ) - $105,519 43,730 43,316 v 18,473+ 519- (Net Change l^day h old ov er and o th e r bills) 9 £ 17,954+ *>104*797 43,730 41*Q00 To t a ls £ 2 ,1 1 3 - HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS, ACCEPTANCES. WEEK .ENDED .JULY 1 3 , 1932 (000 O m itted) (In c lu d in g S a le s C o n tra cts) W ithin 1 5 -days 16-30 days 31^60 da^s 61-90 days 91 days6 months Gov*t S e c u r it ie s £ 83*625 £85*150 £204^*42, £269,860 £204,704 B i l l s Purchased 26,002 5«553 11,670s 16^397 0 To t a ls £11 1,6 27 £90,702 # 2 1 5 r712 ^286,257 £204,704 Over 6 months £ 9 ? 3 ,751 0 , T o ta l 1 ,8 2 1 ,1 3 2 61,621 #973,751 # 1 ,8 8 2 ,7 5 3 Reproduced from the Unclassified I Declassified Holdings of the National Archives ” DECLASSIFIED' Authority t - »D • •■i “1 1 i % eg , Q . <2 \, W OONFID^TIAL Ju ly 8 , 19- Dr. E. A. G oldenw eiser, D ir e c t o r , D iv is io n o f Research and S t a t i s t i c s , Federal Reserve Board, Vv« shin £ to n , D. C. Der.r P r. G oldenw eiser: E nclosed i s n re p o rt o f open market o p e ra tio n s f o r the p e rio d from June 30, 1352 to J u ly 6, 193'° in c lu s iv e , to g e th e r w ith datn r e c e iv e d from F ederal re se rv e banks. A s s is ta n t deputy Governor E n cl. S"/ * o Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * .r~ " Authority f c . p . \ 6 G 0 I CONFIDENTIAL | | J u ly 8 , 1952. Mr. E. L. Smead, C h ie f, D iv is io n o f Bank O p era tion s, Federal Reserve B oard, Washington, D. C. Dear Mr. Sinead: E nclosed i s a r e p o r t o f open market o p e r a tio n s f o r the p e r io d from June 30, 1932 t o J u ly 6 , 1932 in c lu s iv e , to g e th e r w ith data r e c e iv e d from F ed eral r e se r v e banks. Assistant I'eputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' " ““1 Authority V Fe d e r a l R e s e r v e B a of ✓ n k Ne w Yo r k J u ly 8, 195‘ C9NFIDENTIAL Dear Governor Meyer: Enclosed i s a r e p o r t o f open market o p e r a tio n s f o r th e p e rio d from June 30, 1932 to J u ly 6 , 1932 in c lu s iv e , to g e th e r with data r e c e iv e d from Federal re se rv e banks. Vi. B. Matte son Assistant Deputy Governor Honorable Eugene «±eyer, Governor, Federal Reserve Board, Washington, D. C. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority !___ CONFIDENTIAL REPORT OF OPEN MA.RKET OPERATIONS FOR 7/EEK ENDED JULY 6, 1952 H oldings o f Earning A ssets o f F ed era l Reserve Banks from July 8 , 1931 tc Date (000 Omitted) -1 9 3 1 Ju ly 8 " 29 Aug, 26 S ep t. 50 O ct. 28 Nov. 25 D ec. 30 -1 9 3 2 Jan, 27 Fe>. 24 Mar, 30 A pr, 27 May 25 June 29 J u ly 6 TOTAL EARNING ASSETS $ 932|102 954,795 1 ,1 5 6 ,6 3 6 1 ,5 5 7 ,9 7 0 2 ,1 9 8 ,2 3 8 r , 925,509 2,1 8 5 ,2 1 6 1 ,7 8 7 ,9 1 2 1 ,7 3 3 ,8 6 2 1,5 7 8 ,1 4 6 1 ,7 7 3 ,7 4 5 2 ,0 4 0 ,0 5 6 2,3 4 0 ,2 6 2 * 2 ,3 8 4 ,2 3 7 GOVERNMENT SECURITIES O utright S ales Purchases C on tracts $ 667*953 0 677*977 0 72 7*998 0 758*455 3*890 726,659 0 727,101 0 764,933 38*295 750,216 740,006 860,056 1 ,1 9 1 ,2 3 2 1 ,5 2 4 ,8 9 6 1 ,7 9 5 ,2 1 9 * 1 *801,065 1,500 550 11,562 0 300 5,752 0 BANKERS ACCEPTANCES Sale s O u trigh t Purchases C on tracts $ 2,852 $ 88,936 62,909 3,627 1,042 179,476 449 ,022 19,505 723,262 1,418 479,225 573 248,708 78,267 153,671 126,865 62,281 45,874 38,3 7 3 47,787 51,296 BILLS DISCOUNTED $ 162,386 183,036 241,718 327,925 716,680 686,401 1 ,0 2 4 ,1 3 5 857,659 855,243 653,255 551,824 471,267 469,828 499,826 8,590 6,517 4,081 0 0 15,752 26,057 * In clu d es $ 2 4 ,00 0,000 s p e c ia l one-day c e r t i f i c a t e o f indebtedness issu ed by Treasury t o F ed eral R eserve Bank o f Chicago on June 29# CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS AND SPECIAL ONE-DAY CERTIFICATE OF INDEBTEDNESS) PUR BIG WEEK ENDED JULY 6 , 1952 £qqq om itted ) GOVERNMENT SECURITIES Net Balance Ju ly 6 Ghange Boston $ New York P h ila d e lp h ia C leveland Richmond A tlan ta Chicago S t. L ou is M inneapolis Kansas C ity D a lla s San F ra n cis co N.Y. h o ld o v e rs and o th e r b i l l s T o t a ls 112,729 692,380 134,998 173,029 47,133 51,676 267,205 64,030 53,256 54,716 30,721 119,192 $1,801*065 § 6,000+ 2 ,1 6 5 3,000+ 3,149+ 0 963,825+ 1,615+ 843+ 0 1,125+ 12,550+ $29,846+ BANKERS ACCEPTANCES Net Balance Change July 6 § 774 3,857 756 2,196 2,291 941 5 ,8 7 5 485 554 645 516 5,345 $1,255— 5,519+ 518+ 952259+ 51 ,514— 485+ 554+ 645+ 447+ 658+ 31,261 548+ $51,296 $5,509+ BILLS DISCOUNTED Balance Net July 6 Change $ 28,615 102,882 68,442 53,749 26,444 55,936 54,774 15,203 13,040 22,008 13,238 87,495 § 917+ 5 ,7 9 4 900+ 10,079+ 553+ 8,132+ 690+ 1,241+ 2,735+ 1,705+ 1,605+ 7,235+ #499,826 $29,998+ COMMENT ON CHANGES WEEK ENDED JULY 6 , 1952 T o ta l earning a s s e t s o f th e System, e x c lu s iv e o f the s p e c ia l one-day c e r t i f i c a t e o f indebtedness issu ed to the F ed eral Reserve Bank o f Chicago on June 29 showed an in cre a se o f $67 ,97 5,000 f o r the cu rren t statem ent week. The changes by c l a s s i f i c a t i o n c o n s is t e d o f in cre a s e s o f $29,846,000 in o u tr ig h t hole ings o f govern ment s e c u r i t i e s , $3 ,5 0 9 ,0 0 0 in o u tr ig h t h o ld in g s o f bankers a c c c p ta n c e s , $10,525,000 in bankers a ccep ta n ces h eld under s a le s c o n tr a c t and $2 9 ,9 9 8 ,0 0 0 in b i l l s d iscou n ted and a d ecrea se o f $ 5 ,752 ,0 00 in government s e c u r it ie s held under s a le s c o n t r a c t . Reproduced from the Unclassified I Declassified Holdings of the National Archives L 2 Money Market The surplu s r e s e r v e s o f a l l member banks a re estim ated to have d e c lin e d during the p a st statem ent week from an average o f more than #150,000»000 to an average o f about $11 0 ,0 0 0 ,0 0 0 . The p r in c ip a l f a c t o r in t h is r e d u c tio n o f e x c e s s re se rv e s was a continued la r g e demand f o r cu rren cy , r e f l e c t i n g la r g e ly requirem ents f o r the month-end and h o lid a y . E xcess r e s e r v e s o f the la r g e Few York C ity banks, which were # 3 6 ,00 0,000 on June 29, were e n t i r e l y elim in a ted on J u ly 1 but were su bsequ en tly in cre a se d to #27,000,000 on J u ly 6. A n e t r e d u c tio n o f # 1 2 ,00 0,000 in re s e r v e balan ces was p a r t ly o f f s e t by a net d ecrea se o f '# 3 ,0 0 0 ,0 0 0 in requ irem en ts, f o llo w in g a tem porary in cre a s e over the f i r s t o f the month. Funds were taken out o f the market through a con tin u ed outward movement t o oth er c e n te r s , r e p re s e n tin g t o a c o n s id e r a b le ex te n t payments t o o th e r d i s t r i c t s f o r Government s e c u r i t i e s d e liv e r e d in New York. In a d d itio n cu rren cy w ithdraw als t o meet month-end and h o lid a y requirem ents a ls o accounted f o r a m a te r ia l a b s o r p tio n o f money market funds. Treasury o p e ra tio n s had l i t t l e n et e f f e c t on the m arket, as c a l l s f o r funds from d e p o s it a r ie s were about o f f s e t by T reasury d i s bursements h ere, somewhat more than h a lf o f which were f o r the R eco n s tru ctio n Finance C orp oration . P a r t i a l l y cou n terb a la n cin g th ese lo s s e s were a d d it io n a l pu r chases o f Government s e c u r i t i e s , m o s tly f o r the System S p e cia l In v e s t ment Account but t o a sm aller ex te n t f o r the F ed eral Land Bonks. There was a lso a s iz a b le in c r e a s e in th is bank’ s h old in g s o f b i l l s under r e purchase agreement. N otw ithstanding an in c r e a s e o f # 3 0 ,00 0,000 in System S p e c ia l investm ent Account during the p ast week, t o t a l h o ld in g s o f Government’ s showed p r a c t i c a l l y no n et change, due to the retirem en t o f a #2 4 ,00 0,000 S p e c ia l C e r t if ic a t e o f Indebtedness is su e d on June 29 to cov er a Treasury o v e r d r a ft in Chicago and a re d u ctio n o f # 5 ,7 5 2 ,4 5 0 in Government s e c u r it ie s h e ld under s a le s c o n t r a c t at the F ed eral reserv e banks o f C leveland and A tla n ta . S tock Exchange c a l l money renewed a t 2 p er cent tod a y, th© lo w e st q u o ta tio n s in c e l a s t O ctob er; the B 1 /2 per cent r a te had con tinued s in c e e a r ly in January# Y ie ld s on s h o rt-te rm U nited S ta tes Government s e c u r it ie s a l s o moved somewhat low er during the week. A s l i g h t l y e a s ie r tendency is re p o rte d by com m ercial paper d e a le r s , a l though the p r e v a ilin g q u o ta tio n is s t i l l a range o f 2 1 /2 to 2 3 /4 p er c e n t, Government Security Market F o llo w in g the turn o f the month, the market f o r U nited S tates Government s e c u r it ie s became m od era tely a c t iv e and g e n e r a lly s tr o n g e r . The sh ort-term is s u e s as a whole advanced to s l i g h t l y h ig h er l e v e l s and lon g -term T reasury bonds more than r e co v e re d the lo s s e s made during the l a t t e r p art o f th© p reviou s statem ent week. At th e c lo s e o f the cu rre n t r e p o r t in g p e r io d the average y i e l d on the sh o rt-te n n is s u e s , a t d e a le r s 1 o f f e r i n g p r ic e s , was about 0*47% as compared w ith 0.54% at the c lo s e o f the p r e v io u s week and the average s e l l i n g p r ic e f o r the L ib e r t y Loan bonds was 101.91 and f o r Treasury bonds 98.91 as compared with the p r e v io u s week’ s average c lo s in g p r ic e s o f 101,76 and 97.97 r e s p e c t iv e ly . Reproduced from the Unclassified I Declassified Holdings of the National Archives 3 1 3 3 3 3 3 2 1 3 3 „ D e a le rs 1 O ffe r in g P r ic e s at the Close o f the Current Statement Wc ek and Net Changes from the C lose o f the P rev iou s Statement Week Net Approx, Issue P r ic e Change Y ie ld — — «*• -2 /3 2 1 , 1932 100 8 /3 2 1 /8 $ C ert, o f Ind. due Aug. tt ♦t 0.12% -1 /3 2 1/8% " ” Sept . 1 5 , 1932 100 6/3 2 tt »t n - - -1 /3 2 fo " " 15, 1932 100 18/32 tt tt 0.13% -2 /3 2 1/8% * " 100 26/32 Oct* 15 , 1932 - - 0.21% 1/4% Treasury Notes » Dec. 15, 1932 101 11/32 tt 3/4% C ert, o f Ind. +4/32 Feb. 1 , 1933 102 0.2*% tt tt 3/4% « " +2/32 Mar. 15 , 1933 102 4 /3 2 0,64% tt tt % " " +6/32 0.73% May 2 , 1933 101 1 /3 2 tt tt 1/2% " +5/32 1.02% June 1 5 , 1933 100 14/32 +6/32 % Treasury N otes »r May 1.85% 2 , 1934 102 1 /3 2 tt W June 1 5 , 1935 % « +6/32 2.63% 101 1 /3 2 Treasury B i l l s « J u ly & August m a tu r itie s - 0.45% d isc o u n t b id , 0*15% asked tt tt tt *♦ S e p t. !28 m aturity 0.25% H 0.45% C lo s in g P r ic e s on the New York S tock Exchange at the C lose o f the Current Statement Week and Net Changes from o f the P rev iou s Statement Week Net Issue P r ic e P r ic e Change Issue 1st 3 l /2 s 105 7/32 101 8 /3 2 +6/32 Trea sury 4 1 / 4s 1947-52 tt 1 st 4 l / 4 s +4/32 101 23/32 4s 1944-54 102 14 /3 2 n 4th 4 l / 4 s 102 24/32 + 5/32 3 3 /4 s 1946-56 100 7 /3 2 »t 98 6/3 2 3 3 /8 s 1943-47 tt 98 19/32 3 3 /8 s 1940-43 tt 3 3 /8 s 1941-43 98 4 /3 2 tt 3 1/Qs 1946-49 94 5/32 tt 3s 1951-55 92 24/32 Net Ghange +24/32 +30/32 +27/32 +18/32 +30/32 +20/32 +24/32 +20/32 Bankers A cceptances D e a le r s 1 o f fe r in g s o f unendorsed bankers a ccep ta n ces were a t the f o llo w in g r a te s at the c l o s e o f the cu rren t statem ent week: 3 /4 per cent f o r 3 0s, 60s and 9 0s, 7 /8 per c e n t f o r 120s and 1 1 / 8 per ce n t f o r 180-day b i l l s . Report week ended Ju ly 6 B oston rep orted th a t both the supply and demand f o r b i l l s in i t s d i s t r i c t continued sm a ll. B i l l s d id not move f r e e l y and d e a le r s were o b lig e d to forw ard $ 2 ,6 0 0 ,0 0 0 b i l l s t o t h e ir o f f i c e s in o th e r c i t i e s . In New Y ork the volume o f b i l l s handled by d e a le r s du rin g the week f e l l o f f c o n s id e r a b ly as compared w ith la s t week# T h eir p u rch a ses, due in a la r g e measure to the reserv e bank s e l l i n g a b lo c k o f b i l l s t o the market f o r the account o f a fo r e ig n corresponds e n t , c o n tin u e d to exceed t h e ir s a le s and aggregate p o r t f o l i o s in c r e a se d by about $ 1 1 ,00 0,000 to $ 5 5 ,0 0 0 ,0 0 0 , which is the h ig h e st they have been s in c e March 9 . P h ila d e lp h ia re p o rte d there was no m a te r ia l change in the c o n d it io n s in i t s acceptan ce m arket. O ffe r ings were m oderate w ith a f a l l i n g o f f in the demand. Chicago r e p o r te d th ere was v e r y l i t t l e , i f any, a c t i v i t y in i t s b i l l market and D a lla s re p o rte d sm all demand f o r b i l l s in i t s d i s t r i c t w ith no o f f e r ings to the re se rv e bank* Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority Q • \6 * 5 0 1 4 OPERATIONS FOR AGCOUNT OF UNITED STATES TREASURY T ra n sa ction s consummated under Treasury a u th o r iz a tio n du rin g the cu rren t statem ent week were as fo llo w s : Purchase o f § 100,000 - j3 3/8% Treasury Bonds o f 1 94 0-43, accou n t Sinking Fund 3 ,1 0 0 ,0 0 0 - 3 3/8% " » w 194 1 -4 3 , w ” " 3 ,1 5 5 ,5 5 0 - 3 3/8% ” " M 194 3-47, « " " § 6 ,3 5 5 ,5 5 0 SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES Purchases o f United S ta tes Government s e c u r i t i e s f o r the System Account d u rin g the cu rren t statem ent week, under a u th o r ity granted a t the m eeting o f the Open Market P o lic y Conference in Washington on May 17, 1932, amounted to $30 ,00 0,000 as f o llo w s : #10*000,000 8 ,0 0 0 ,0 0 0 5,000-000 1 ,2 0 0 .0 0 0 5 .8 0 0 ,0 0 0 ** - 3 1/8% C /I due Aug. S ep t. Treasury B i l l s « O ct. 3 1/8% C /I »t 1 1/2% » June tt tt 3 % T/N 1) 28, 15, 15, 15, 1932 1932 1932 1933 1935 ^30 ,00 0,0 00 These purchases were made by the fo llo w in g reserve banks in t h e ir r e s p e c t iv e m arkets; B oston §500 ,00 0; New York $ 2 9 ,00 0,000 and P h ila d e lp h ia $500>000, Other tr a n s a c tio n s e f fe c t e d c o n s is t e d o f in th e Account during the current p e r io d (1 ) Exchange in the m arket, a t advantageous r a t e s , o f £1 ,0 0 0 ,0 0 0 - 2% C /I due May 2 , 1933 f o r 1 ,0 0 0 ,0 0 0 - 3% T/N " June 15, 1935 (2 ) Sale to F ed eral Reserve Bank o f San F ra n cis co o f $10,000,000 o i the F ed eral R eserve Bank o f New Y ork ’ s p a r t ic ip a t io n in the System A ccou n t, owing to the low reserv e r a t i o o f the l a t t e r bank. The a d d it io n a l purchases during the week o f $30,000,000 s e c u r it ie s in crea sed the amount o f t o t a l h old in g s in the System Account to § 1 ,5 8 9 ,5 8 3 ,0 0 0 , The p a r t ic ip a t io n s by F ed eral reserv e banks and the c l a s s i f i c a t i o n o f issu e s h e ld in the Account at the c lo s e o f bu sin ess Wednesday, July 6 , 1932. were as fo llo w s : Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * I* Authority ^ “ 1 t j) ■ \ 6 * 5 ^ | | 5 PARTICIPATIONS BY FEDERAL RESERVE BANKS B oston New York P h ila d e lp h ia C leveland Richmond A tla n ta Chicago S t . L ou is M inneapolis Kansas C ity D a lla s San F ra n cisco | 95,978,500 592,541,000 131,592^000 173,029,500 47 #132,500 51,560,000 194,092,000 6 3 ,5 2 9 j 500 45 ,586 ,0 00 54,629,500 20,721,000 119,191,500 RECAPITULATION OF HOLDINGS BY MATURITIES J u ly tt ♦t Aug. tt tt tt Sept* Aug. S ept. tt O ct, D ec. Feb* Mar. May June May June tt tt O ct. T o ta ls $1,589,583*000 13, 20, 27, 10, 17 , 24, 31, 28, 1» 15, 15, 15, 15, 1, 15, 2, 15, 2, 15, 15, 15, 15, 1932 - T r e ^ s ^ i l l s § n n 1932 tt t» 1932 tt w 1932 tt tt _ 1932 tt tt ~ 1932 tt t t 1932 tt tt 1932 1932 - 3 1/8% C /I 1932 - 1 1/8% f t ft 1932 - 3 % 1932 - 3 1/8% t t 1932 - 3 1/4% T/N 1933 - 3 3/4% C /I 1933 - 3 3/4% »' 1933 - 2 % " 1933 - 1 1/2% " 1934 - 3 % T/N 1935 - 3 % " 1 9 3 2 /4 7 -3 1/2% 1 st L/L 1 9 3 2 /4 7 -4 1/4% 1 s t " 1 9 3 3 /3 8 -4 1/4% 4th " 41,000 ,0 00 4 0 ,4 7 5 ,0 0 0 4 3 ,1 5 0 ,0 0 0 1 6 ,0 0 0 ,0 0 0 53,600 ,0 00 4 7 ,427 ,0 00 76,029 ,0 00 9,0 0 0 ,0 0 0 63,650 ,0 00 83*393,000 96 ,5 0 9 ,5 0 0 85,011 ,5 00 111 ,69 7,000 13,275,000 153,025,000 101r850,000 9 4 ?600,000 67 j 175,000 70,600,000 73,025 ,0 00 23,000 ,0 00 226,091,000 $ 1 ,5 8 9 ,5 8 3 ,0 0 0 Reproduced from the Unclassified / Declassified Holdings of the National Archives ~ f ■>4 DECLASSIFIED' Authority T ^ i D ' \ 6 * 5 0 ( „ | i 6 ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS ________________________FROM JUNE 50, TO JULY 6 , 1932, INCLUSIVE___________________________ B oston New York P h ila d e lp h ia C leveland Richmond A tlan ta Chicago S t. L ou is M inneapolis Kansas C ity D allas San F ran cisco T o ta ls GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT Net Decrease Purchases S ales 0 $ 61,500 $ 61,500 0 10,371,000 14,206 *000 0 82,500 3 ,082,50 0 0 109,000 3 r2 5 9 s000 0 30,500 30 ? 500 0 33.000 3 3 P000 0 3,9 4 7 .0 0 0 122,000 0 39.500 1 ,6 5 4 r500 0 28 j 500 928.500 0 35,000 3 5 P0C0 0 1 2 f 500 1,1 3 7 .5 0 0 0 1 2 ,6 2 5 r000 75*000 # 4 1 .0 0 0 : 000 &U ,0 0 0 ; 000 Net In crease $ 0 - 3 ,8 3 5 ,0 0 0 3,0 0 0 ,0 0 0 3 ,150,00 0 0 0 3 ,8 2 5 ,0 0 0 1 ,615,00 0 900,000 0 1,125,000 12,550,000 $30 ,00 0,000 0 HOLDINGS IN GOVERNMENT SECURITIES - S-kLES CONTRACTS Net Change from P rev iou s Week N ONE C leveland A tla n ta $ 4 ,6 3 0 ,0 0 0 1 ,0 7 2 ,450$ 5 ,7 5 2 ,4 5 0 - OTHER TRANSACTIONS IN GOVERNMENT SECURITIES -(EXCLUDING SALES CONTRACTS) Purchases B oston (a ) | 6 : 000,000 New York (b ) 500,000 P h ila d e lp h ia (d ) 500,000 A tla n ta 140,250 Chicago 0 M inneapolis T o ta ls (a ) (b) (c) (d) 731.490 §7 jS0! 5^40 Issue S ales § % T/N % « 0 6 /1 5 /5 5 (c ) 6 ,5 0 0 ,0 0 0 6 /1 5 /3 5 (d) 500,000 235.550 2 4 ,000 ,0 00 Issue ~ - M isc.G ov*t S ec, 3C J0 T/N due 9 ^ 5 MisCeGov’ t Sec*' S p ec^ l-d ay C /l (Issu e d June 29 matured June 50) _____790,000 - M isc*Gov’ t S ec. $32 ,02 5,550 Purchased tem p ora rily from p o r t f o l i o F, R. B. New Y ork, Purchased from F. H. B. P h ila d e lp h ia and h e ld tem p ora rily in New York p o r t f o l i o f o r r e s a le to System A ccou n t, In clu d es $ 6 ,0 0 0 ,0 0 0 taken over te m p o ra rily by F. R . B. Boston due t o low re se rv e p o s it io n o f New York bank* Purchased f o r System Account and h e ld o v e r n ig h t in p o r t f o l i o # Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * 0 •\ Authority ^ 1 7 BANKERS ACCEPTANCES (000 Om itted) P h ila . C lave. Richmond A tlan ta Chicago S t.L o u is Minn. K an.C ity D allas San Fran* 238 3,128 2,052 946 5,389 0 0 0 69 2,707 By A l l o t ment from New York $ 743 3,349 R* 0 7,972 Am* 0 749 0 1,054 419 R. 559 164 " 535 0 1,436 0 485 0 354 0 645 0 447 0 965 Purchased Own Mkt. o Boston New York H oldin gs June 29 $ 2,007 538 M a tu r itie s and S a les Held Held in E ls e where N*Y. $1,976 $ 0 - 0 30 231 0 589 671 0 0 0 0 0 0 H oldings J u ly 6 | '774 3,857 756 2,196 2,291 941 3,875 485 354 645 516 3,345 0 1,986 150 33 2,950 0 0 0 0 327 T o ta ls $17,074 $7,972 §1,521 $7,422 $20,035 $11,904 B i l l s held o v e r night by New York in F oreign Suspense Account - - - Other H oldin gs C lose J u ly 6 /5 2 Sale s Gon<Other tr a e t s B ills | 0 ........ $ 2,343 15,446 10,142 0 0 0 0 9,555 0 0 0 0 1,056 3,175 3,102 1,228 1,136 4,131 1,004 631 891 860 2,119 $26,057 $30,762 - - - - 499 T o t a l ------------------- $31,261 NOTE; R. in d ic a t e s R etained and A. in d ic a t e s A llo t t e d in above statem ent. * In clu d es $10,565 purchased from fo r e ig n correspondent and $501 f o r e ig n trade a cce p ta n ce s. MATURITIES AND RATES ON BILLS PURCHASED WEEK (000 Omitted) New York Richmond A tla n ta T o ta ls 1-50 days 1% - 1 1/8% 31-60 days 1% - 1 1/8% $10,262 0 ______ 10 $558* 0 __ 98 $10,272 $656 ENDED JULY 6, 1953 61-90 days 1% - 1 1/8% $501 419 __ 56 ^976 Over 90 days T otal 0 0 0 0 *In elu d es $301 f o r e ig n trade acceptances purchased at 2 1/2%* 011,321 419 164 $11,904 Reproduced from the Unclassified I Declassified Holdings of the National Archives P DECLASSIFIED' Authority ^ tQ •\ “ 1 ^ j j RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES PURBIG WEEK ENDED JULY 6 , 1932 (000 Omitted) r (E xclu d in g S a les C on tra cts and S p e c ia l One-day C e rt, o f In d .) Government - S e c u r it ie s Purchased S o ld Matured $48,872 19,026 0 ________ T o ta ls $29,846+ Bankers A cceptances $11 ,90 4 0 8 ,9 4 3 & 2,961+ 548+ (Net Change ________ 1-day h old ov er and oth er b i l l s ) $ 3,509+ T ota l £60,776 19,026 8,9 4 3 !p 2,807 + 548+ (Net Change ________ 1-d ay h o ld o v e r and o th e r b i l l s ) ^33,355+ HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES YffiEK ENDED JULY 6 , 1932 (In c lu d in g S a les C o n tra cts ) W ithin 1 5 -days 16-30 days 31-60 61-90 91 daysOver 6 days days 6 months months T ota l Gov’ t S e c u r it ie s $ 8 1 , 4 7 5 $109,320 $226,042 0221,860 $204,704 $957,664 $ 1 ,8 0 1 ,0 6 5 B i l l s Purchased 42,528 6,767 6,249 2 1 , 7 9 6 13 0 77,353 T o ta ls $134,003 $116,087 $232,291 $243,656 $204,717 $957,664 $ 1 ,8 7 8 ,4 1 8 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED r- Authority ^ i Q • \ 6 *5 0 j Fe d e r a l R e s e r v e B a n k of N e w Y o r k CONFIDENTIAL J u ly 1 , 19’ Mr, E. L. Sinead, C h ie f, D iv is io n o f Bank O p era tion s, Federal Reserve B oard, Washington, D* G. Dear iwr. Smead: E n closed i s a r e p o rt o f open market o p e r a tio n s f o r the p e r io d from ^une 23, 1952 to June 29, 1932 in c lu s iv e , to g e th e r with dr.ta r e c e iv e d from F ederal r e se r v e banks. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority Fe d e r a l R e s e r v e B a n k of N e w Y o r k CONFIDENTIAL July 1 , 1932. Dr. E. A. Goldenweiser, Director, Division o f Research and S t a t is t ic s , Federal Reserve Board, Washington, D. C. Dear Dr. Goldenweiser: Enclosed i s a report o f open market operations fo r the period from June 23, 1932 to June 29, 1932 inclu siv e , together with data received from Federal reserve banks. Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives “ r> DECLASSIFIED Authority Fe d e r a l R e s e r v e B a n D •\ ~~| \ | k of N e w Y o r k / ,/ y\, CONFIDENTIAL J u ly 1 , 195° Dear Governor Meyer: E nclosed i s a re p o rt o f open m -rket o p e r a tio n s f o r the p e rio d from June 9.5, 1939 to June 29, 19'"° in c lu s iv e , to g e th e r with data r e c e iv e d from F ederal r e se r v e banics. Vi. B. Matteson A s s ista n t ^eputy Governor Honorable ^usrene Meyer, G overnor, F eaeral rieserve B o»rd , Washington, D. C. E n cl. Reproduced from the Unclassified I Declassified Holdings of the National Archives P DECLASSIFIED' Authority 0 • ~~| | | CONFIDENTIAL REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED JUNE 29, 1932 H oldings o f Earning A sse ts o f F ederal Reserve Banks from Ju ly 1 , .1951 to pate (000 Omitted) -1 9 3 1 July 1 t» 29 Aug. 26 S ep t. 50 O ct. 28 Nov. 25 Dec . 50 *1932Jan. 27 Feb. 24 Mar. SO Apr, 27 May 25 June 22 tt*' 29 TOTAL EARNING ASSETS $ 927#5 4 i 934*795 1,156*656 1,5 5 7 ,9 7 0 2 ,1 9 8 ,2 3 8 1,9 2 5 ,5 0 9 2 ,1 8 5 ,2 1 6 1 ,7 8 7 ,9 1 2 1 f 725*862 1 ,5 7 8 ,1 4 6 1 ,7 7 5 ,7 4 5 2*040,056 2,277 ,.541 2 ,5 4 0 ,2 6 2 * GOVERNMENT SECURITIES O utright S a les Purchases S o n tra cts § 663,399 I 0 677*977 0 727 *998 0 738*455 5,890 726,659 0 0 727,101 764*933 38,295 750,216 740,006 860,056 1 ,1 9 1 ,2 3 2 1 *.524 *896 1,729*701 1,795*219* 1,500 550 11*562 0 300 0 5,752 BANKERS ACCEPTANCES S ales O utright Purchases C on tracts § 6,490 $ 96*851 62,909 3,627 179,476 1,042 449,022 19,505 725,262 1,418 575 479*225 248,708 78,267 BILLS DISCOUNTED 4 150,200 185,036 241,718 327,925 716,680 686,401 1 ,0 2 4 ,1 5 5 837,639 835,243 633,255 551,824 471,267 488,206 469,828 8,590 6,517 4,081 0 0 0 15,752 155,671 126*865 62*281 45,874 58*373 53*718 47,787 ^In clu d es $24,000*000 s p e c ia l one-day c e r t i f i c a t e o f indebtedness issu ed by Treasury to F ederal R eserve Bank o f Chicago# CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS AND SPECIAL ONE-DAY CERTIFICATE OF INDEBTEDNESS DURING WEEK ENDED JUNE 2 9 , 1952 (000 Om itted) GOVERNMENT SECURITIES Balance Net June 29 Change Boston New York P h ilade lp h ia C leveland Richmond A tla n ta Chicago S t . L ou is M in n eap olis Kansas C it y D allas San Franc is c o N. Y. h old ov ers and o th e r b i l l s T ota ls $ 106,729 694,545 131,998 169,880 47,133 51,772 263,380 62,415 52*413 54,716 29,596 106,642 $1*771*219 $10,000+ 2 7 ,3 8 6 620+ 840+ 0 48+ 52,555+ 0 45* 4,906+ 0 0 $41,518+ BANKERS ACCEPTANCES Net B alancc Change June 29 1 2,007 538 238 3,128 2,052 946 5,389 0 0 0 69 2*707 & o 5491 ,9 4 5 0 7084671,680+ 1*2520 0 6+ 2*574- 30,713 142- $47*787 $5*931** BILLS DISCOUNTED Net Balance Change June 29 $ 27,698 108,676 67,542 43,670 25,891 27,804 34,084 11,962 10,305 2 0 ,3 0 3 11,633 80,260 $ 1*0235,267+ 93+ 1*675764+ 5 ,2 7 5 258943711 ,639-> 877** 12*723- $469,828 $18*378- COMMENT ON CHANGES WEEK ENDED JUNE 2 9 , 1952 E x clu siv e o f $24*000*000 s p e c ia l one-day c e r t i f i c a t e o f in debtedness issu ed by the Treasury t o the F ed era l R eserve Bank o f Chicago t o cov er the T reasury o v e r d r a ft, t o t a l e a rn in g a s s e ts o f the System showed an in crea se o f $58,921,000 f o r the cu rren t statem ent week. The changes by c l a s s i f i c a t i o n c o n s is t e d o f in c r e a s e s o f $41,518*000 in o u t r ig h t purchases o f government s e c u r it ie s * $ 5 ,7 5 2 ,0 0 0 in government s e c u r it ie s h eld under s a le s c o n tr a c t and $15*732,000 in bankers a ccep ta n ces h e ld under s a le s c o n t r a c t , and d ecrea ses in o u t r ig h t h o ld in g s o f bankers a ccep ta n ces and b i l l s d is counted o f $5*951,000 and $18,578*000 r e s p e c t i v e l y . Reproduced from the Unclassified I Declassified Holdings of the National Archives ” r- Money Market DECLASSIFIED Authority 1D •\ ^ | During the p a st statem ent week, th e e x ce s s r e s e r v e s o f a 13 . member banks o f the F ed eral R eserve System arc estim ated to have aver aged about # 1 6 5 ,0 0 0 ,0 0 0 , as compared w ith a surplu s above requirem ents o f #222,000,000 in the p rev iou s week. The drop in e x ce s s r e s e r v e s o f the banks throughout the cou n try was v e ry la r g e ly the r e s u l t o f thq s it u a t io n in C h ica go, which reached i t s h e ig h t during the m iddle o f the r e p o r t in g week. A net in crea se o f #144,000,000 in th e amount o f cur rency ou tsta n d in g caused funds to be withdrawn from New York, th ereby drawing down excess r e s e r v e s o f th e New York C ity banks as w e ll as these o f the Chicago banks. In New Y ork , the excess re s e r v e s o f the money market banks dropped from #103,000,000 on June 22 t o #36*000,000 on June 2 9 , The a c tu a l r e s e r v e s on d e p o s it to the c r e d i t o f these banks were redu ced # 6 3 ,0 0 0 ,0 0 0 , w hich , tog eth er with net in cre a se o f #4 ,0 0 0 ,0 0 0 in t h e ir re q u ire d r e s e r v e s , accounted f o r the decrea se in the amount o f the s u r p lu s . The i n t e r - d i s t r i c t movement o f funds was c o n s id e r a b ly ag ain st New York, due c h i e f l y t o th e t r a n s fe r s to Chicago m entioned ab ov e, and in a d d itio n Treasury w ithdraw als o f funds from t h is market were mate r i a l l y la r g e r than disbursem ents h ere. This came about through the Treasury b i l l s a le o f June 29 and c a l l s from d e p o s ito r y i n s t i t u t i o n s , which exceeded the amount o f maturing Treasury b i l l s h eld by the mar ket and oth er payments. There was also a sm all l o s s o f money market funds due to a d d it io n a l cu rren cy requirem ents in the New York d i s t r i c t , Only p a r t i a l l y o f f s e t t i n g th ese lo s s e s were payments to the market out o f f o r e ig n bank funds on d e p o s it a t the R eserve Banks, an in cre a se in F ed era l Reserve b i l l h o ld in g s , due t o ta k in gs under r e purchase agreem entj and some net purchase o f s e c u r it ie s f o r th e System S p e c ia l Investm ent A ccou n t, t o t a l h old in g s in which, however, did not show any in crea se f o r the week, s in c e a b lo ck o f #36 ,55 0,000 o f the Treasury b i l l s that matured om June 29 were a llow ed t o run o f f w ith ou t rep la cem en t. The in crea se o f # 7 1 ,00 0,000 in t o t a l s e c u r it y h old in g s o f a l l R eserve Banks rep resen ted p r in c ip a lly # 4 1 ,00 0,000 o f Government s e c u r i t i e s purchased in Chicago from member banks and h eld in the Chicago R eserve Bank’ s own p o r t f o l i o , and a ls o a #24,000,000 s p e c ia l one-day c e r t i f i c a t e o f in d ebted n ess t o co v e r a Treasury o v e r d r a ft a t Chicago on June 2 9 , in cu rred presumably in c o n n e c tio n w ith payments made by the R e c o n s tr u ctio n Finance C o r p o r a tio n , Open market b i l l r a te s have been reduced 1 /8 p e r cent sin ce the r e d u c tio n in th e d is c o u n t and b i l l buying r a t e s o f th e F ederal Re serve Bank o f New Y ork, which became e f f e c t i v e June 2 4 , Y ie ld s on s h ort-term Government s e c u r i t i e s lik e w is e have d e c lin e d between 1 /8 and 1 /4 p er c e n t . F or th e r e s t , money r a te s in New York have held a t l e v e l s p r e v io u s ly cu rren t# Government Security Market The a c t i v i t y in th e government bond market during the s ta te ment week was la r g e ly c o n fin e d to purchases made f o r the T reasu ry, f o r accou n t o f the S in k in g Fund, and in co n n e c tio n w ith the investm ent o f the new c a p i t a l o f the F ed eral Land banks* The sh o rt-te rm market was somewhat s tr o n g e r , the average y i e l d b ein g #54$ at the c lo s e o f th e week as compared w ith ,6 2 # l a s t week. The average p r ic e on th e L ib e r ty Loan bonds was 101.76 as compared w ith 101,67 the p re v io u s week. The Treasury is s u e s , due to the Treasury buying r e fe r r e d t o , held fir m dur in g the g r e a te r p art o f the week but r e a c te d y esterd a y w ith the com ple t io n o f th e Treasury p u rch a ses, w ith th e r e s u lt th at the average e lo s ir g p r ic e was 97.97 as compared w ith 98,57 a week ago. Reproduced from the Unclassified / Declassified Holdings of the National Archives ~ DECLASSIFIED * Authority ) j D • \b G O j j 3 3 1 3 3 3 3 3 2 1 3 3 D ealers* O ffe r in g P r ic e s at the Close o f the Current Statement Week and Net Changes from th e C lose o f the P rev iou s Statement Week . . Net Approx, Change Y ie ld P r ic e Issue - - -1 /3 2 100 10/32 1932 1 /8 $ C e rt, o f Ind, due Aug. 1. u tf it 0 .0 6 $ +1/32 100 7/32 ,f Sept,. 15, 1932 1 /8 fo tf it tf tt 0 .1 2 $ -1 /3 2 100 19/32 15, 1932 % tt tt tf +1/32 0 .1 1 $ 100 28/32 " O ct. 15, 1932 1 /8 $ 0 ,3 2 $ +2/32 101 11/32 1 /4 fo Treasury Notes *' Dec. 1 5 , 1932 0 .5 3 $ +1/32 101 28/32 1933 Ind. w Feb. 3 /4 $ C ert, o f 1f ti tt » +3/32 102 2/32. 0 .8 1 $ * * Mar. 15, 1933 3 /4 $ t! tl t» +4/32 0 .9 8 $ 100 27/32 1933 ” May fo 2, tf tt tf +3/32 1 .2 0 $ 1933 100 9 /3 2 1/ 2 $ M J une 15, ” May +4/32 1 .9 7$ Trea sury 1934 101 27/32 Notes 2, fo if tf 2 ,6 9$ +8/32 100 27/32 1 5 , ” June 1935 fo Treasury B i l l s i Ju ly m a tu r itie s ~ 0 ,4 5 $ d isco u n t b id , 0.15% asked tj »t tt tt " 0 .2 0 fo August - 0 ,5 0 $ w tt f» w tf " 0,3 0 fo September - 0 .4 5 $ ” ii C lo s in g P r ic e s on the New York S tock Exchange a t the C lose o f the Current Statement Y/eek and Net Changes from C lose o f th e P rev iou s Statement Week Net Net P r ic e Change Issu e Issu e P r ic e Change • -1 3 /3 2 Trea sury 4 l / 4 s 1947-52 104 15 /3 2 1st 3 l/2 s 101 2 /3 2 n -2 8 /3 2 1944-54 101 1 6 /3 2 1st 4 l/4 s 101 19/32 +1/32 4s tt -1 8 /3 2 99 12/32 102 19/32 +7/32 4th 4 1 / 4s 3 3 /4 s 1946-56 tt 97 20/32 -1 1 /3 2 3 3 /8 s 1943-47 tf -2 4 /3 2 1940-43 97 21 /3 2 3 3 /8 s tf -1 7 /3 2 1941-43 97 16 /3 2 3 3 /8 s tf 1946-49 -2 3 /3 2 93 13/32 3 l/8 s tt -*23/32 92 4 /3 2 1951-55 3s Bankers A ccep tan ces R ep orts week ended June 29 Dealers* o f fe r in g s o f unendorsed bankers a ccep ta n ces were a t the fo llo w in g r a t e s at the c lo s e o f the cu rren t statem ent week: 3 /4 t o 7 /8 p er cent f o r 3 0 s , 60s and 9 0 s, 7 /8 to 1 p e r cent f o r 120s and 1 1 /8 to 1 1 /4 p er cen t f o r 180-day b i l l s . This r e p re s e n ts a r e d u c tio n o f 1 /8 p er cen t on a l l m a tu r itie s from th e p rev iou s w eek 's r a t e s . Boston r e p o rte d that th ere was a sm all in crea se in the supply o f b i l l s in i t s d i s t r i c t during the p a s t week w ith the demand as a whole n e g l i g i b l e . One d e a le r to com plete a s p e c ia l o rd er was o b lig e d t o import b i l l s from h is o f f i c e s in oth er c i t i e s , which accounted f o r the la r g e in crea se in " b i l l s s o ld ,* ’ L o ca l d e a le r s in l in e with o u t o f-to w n d e a le r s low ered t h e i r r a te s to 7 /8 b id - 3 /4 asked f o r 90-day b ills . In New York the supply o f b i l l s in crea sed c o n s id e r a b ly t h is week as compared w ith the p a st two w eeks, the la r g e s t s e l l e r having been a Chicago bank who s o ld a s u b s ta n tia l b lo c k o f i t s own b i l l s in t h is m arket. D ealers* s a le s , w hile s l i g h t l y la r g e r , were n ot very w id ely d is t r ib u t e d as the demand came p r in c ip a lly from o n ly three or four of Uie l o c a l banks who were s e le c t in g s p e c ia l names. D ealers* p o r t f o l i o s in crea sed during the week by about §1 6 ,0 0 0 ,0 0 0 t o § 4 4 ,0 0 0 ,0 0 0 , F ollow ing the r e d u c tio n in th e Reserve bank’ s d isco u n t r a te and b i l l r a t e s , some d e a le rs on June 24 reduced t h e ir r a te s by 1 /8 p er cen t on a l l m a t u r it ie s ; the o th e r d ea lers d id n ot fo llo w and r a te s con tin u ed to be d iv id e d u n t il the a fte rn o o n o f June 3 0 , when a l l d e a le r s f e l l in to lin e at the low er l e v e l s . R ates now are f o r m a tu r itie s up to 90 days 7 /8 b id * 3 /4 asked; 4 months* 1 per c e n t b i d , 7 /8 asked; 5 and 6 months* 1 1 /4 b id , 1 1 /8 ask ed . P h ila d e lp h ia r e p o rte d th a t i t s accep tan ce Reproduced from the Unclassified / Declassified Holdings of the National Archives 4 market was quiet. The supply o f new b i l l s was small with the demand fa ir for better names, Chicago reported that there was p ra ctica lly no a c tiv ity in the b i l l market in its d is t r ic t , Dallas reported that there was no demand for b i l l s during the past week and offerin gs to the reserve bank were n e g lig ib le , OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY Transactions consummated under Treasury authorization during the cur rent statement week were as follow s: Purchases o f $ 65,000 - 3 3 /8 # Treas. Bonds of 1940-43, account Sinking Fund u ii 6 .2 00.000 - 3 3 /8 # " ” " 1 9 4 1-4 3 , » » n 1 .8 3 5 .00 0 - 3 3 /8 # ” " ” 1943-47, ' #8 ,100,000 and sale o f $93,000 - Fourth 4 1 /4 # Liberty Loan bonds, account Alien Property ^Custodian. SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES There was no change in the amount o f tota l holdings o f government se cu ritie s in the System Account for the current statement week. On the f i r s t two days o f the current statement week purchases o f ^30,000,000 short-term government secu rities were made for the System Account, under authority granted at the meet ing of the Open Market Policy Conference in Washington on May 17, 1932, which were allocated to participating Federal reserve banks. Subsequent to th is , however, the Federal Reserve Bank of Chicago purchased from member banks $41,515,000 government se c u r itie s, which it w ill retain in it s own investment account for the present, and as this increase in it s holdings is re fle cte d in the System to ta l fo r the week ending June 29, 1932, the executive committee decided to apply the §30,000,000 government secu rities purchased e a rlie r in the week as an o ffs e t to $30,000,000 o f the Treasury B i l l s maturing June 29 in the holdings in the System Account, Accordingly, the ^30,000,000 o f government secu rities previously allocated to participating Federal reserve banks was repurchased from them on June 29 , and the secu rities were re-allocated as replacements fo r a lik e amount of maturing Treasuiy B ills , The net re su lt o f transactions effected in the System Account during the current statement week was as follow s: Redemption on June 29 o f $36,550,000 maturing Treasury B u i s which were re placed by purchases o f: $ 9,000,000 16,550,000 4,000,000 4,000,000 2 ,000,000 1,000,000 - 3 1 /8 # C /I due Aug* 1 , 1932 3 3 /4 # ti Mar. 15 , 1933 w May 2 , 1933 2 # tt II June 1 5 , 1933 1 1 /2 # ii 3 # T/N II May 2 , 1934 11 M June 15, 1935 3 # $36,550,000 (These purchases were made by the following reserve banks in th eir respective markets: New York - # 2 5 ,5 5 0 ,0 0 0 ; Philadelphia - $ 1 ,0 0 0 ,0 0 0 ; Chicago - #10,000,000}, Reproduced from the Unclassified I Declassified Holdings of the National Archives ...... r— ............__ .... _ DECLASSIFIED' Authority \ 0 •\ ^i 5 Exchanges in the market at advantageous rates: SOLD 6 ,0 0 0 ,00 0 5,150,000 9 ,2 5 0 ,00 0 1 ,0 00,000 1,000,000 500 i 000 250,000 500*000 HJSOHASED Tr. B ills < iue » n w » 3 1 /8 # c /l 1 1 /8 # « tt 3 1 /8 % w tt 3 1 /4 # T/N * 3 3 /4 # C/I m 3 3 /4 # ft »♦ July Aug. n Sept. Oct. Dec.: Feb. Mar. 13, 17, I. 15, 15, 15, 1* 15, 1932 "1932 1932 1932 1932 1932 1933 1933 $23,650,000 ____ $ 442,000 1,000,000 2.,058.,000 5,0 0 0 ,00 0 1 ,6 50,000 8,5 0 0 ,00 0 5 ,000,000 $23,650,000 . .. Sale in the market (in c e r tific a te s were purchased $ 7 ,0 00,000 3 ,0 0 0 ,00 0 - Tr, B ills (Jae w " " It 3 # C/I 3 1 /4 # T/N «. 3 3 /4 % C/l tt 1 1 /2 # " « 3 # T/N tt Aug* 31, Sept .2 8 , 15, Decf 15, Mar. 15, June 15, 15, 1932 1932 1932 1932 1933 1933 1935 (Of these purchases, $500,000 were made in Philadelphia, $11,092,000 in New York afcd $12,058,000 in Chicago). accordance with the terms of contract under which these on June 14) of 3$ C /I due Sept. 15, 1932 2# " " May 2 , 1933 a to ta l of $10,000,000 (completing the sale of se cu ritie s purchased on June 14 under resale agreement) which was replaced by purchase in the market of $10,000,000 3# T/N due June 15, 1935. The to ta l holdings in the System Account at the close of the statement week ending June 29, 1932, amounted to 9 1 ,5 5 9 ,5 8 3 ,0 0 0 , unchanged from the previous week. The participations by Federal reserve banks and the c la s s ific a tio n of issues in the Account, at the close o f business Wednesday, June 29, 1932, were as follow s: PARTICIPATIONS BY FEDERAL RESERVE BANKS RECAPITULATION OF HOLDINGS BY MATURITIES $ 95,978,500 Boston July 13, 1932-Treasury B ills $ 41,000,000 »» m 20, 19324 0 ,4 7 5 ,0 0 0 588,706,000 New York « m tt 128,592,000 27, 193243,1 5 0 ,0 0 0 Philadelphia n tt Cleveland 169,879,500 16,000,000 Aug. 10, 1932« t* tt Richmond 4 7 ,132,500 53,6 0 0 ,0 0 0 17, 1932h tt ft 47,427,000 24, 193251,560,000 Atlanta tt t» 7 6 ,029,000 .Ghicago 190,267,000 31, 1932ft »t 1 ,0 0 0 ,0 0 0 61,914,500 Sept,r28, 1932S t. Louis 44,686,000 53,650,000 Minneapolis Aug. 1 , 1932- 3 1 /8 # C /I Sept,,15 , 1932- 1 1 /8 # tt 8 3 ,3 9 3 ,0 0 0 54,629,500 Kansas C ity w 19,596,000 15, 1932- 3 9 6,5 0 9 ,5 0 0 # tt Dallas 8 0 ,011,500 106,641,500 San Francisco Oct. 15, 1932- 3 1 /8 # tt 111,697,000 Dec. 15, 1932- 3 1 /4 # T/fr 13,2 7 5 ,0 0 0 Feb. 1 , 1933- 3 3 /4 # C /I 153,025,000 Mar. 15, 1933- 3 3 /4 # tt 2, 1933- 2 102,850,000 May # tt 93,4 0 0 ,0 0 0 June 15, 1933- 1 1 /2 # w May # T/N 67,175,000 2 , 1934- 3 June 15, 1935- 3 # tt 63,800*000 ♦» 15, 1 932/47-3 1 /2 # 1st L/L 73,025,000 15, 1 9 3 2/4 7 -4 1 /4 # 1st « 23,000,000 Oct. 15, 193 3/3 8 -4 1 /4 # 4th " 226,091,000 Totals $ 1 ,5 5 9 ,5 8 3 ,0 0 0 $ 1 ,5 5 9 ,5 8 3 ,0 0 0 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * ~ " , "1 Authority / ITMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RES3RVE BuOTS _______________________ FROM JUNE 23 TO JUNE 29, 1952, INCLUSIVE...... ............................. GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT Boston New York Philadelphia Cleveland Richmond Atlanta Chicago S t. Louis Minneapolis Kansas City Dallas San Francisco Totals Purchases $ 4,323,000 26,643,500 5,7 8 5 ,50 0 7,598,000 2,10 4,500 2,303,500 8,5 6 1 ,00 0 2,765,500 2,010,500 2,42 5,000 875,000 4 ,805,00 0 Sales 4 4,323*000 26,643,500 5 ,? 8 5 r500 7,598*000 2,104,500 2* 303 r5 00 8,561 ,000 2,765,50 0 2,010,500 2,425,000 875,000 4,805,000 $70,200,000 $70,200,000 Adjustments in Participations C 0 Net Decrease Q $ 7 ,3 8 6 ,5 0 0 620,000+* 840,000+* 7,386,500 0 0 0 0 0 ft 1,020,000+* 0 0 " 4,906,500+** 0 0 $7,386,500 Net Increase 4 o 0 620,000 840,000 0 0 0 0 0 1,020,000 0 0 0 0 0 4,906 ,500 0 0 $7,386,500 $7,386,500 ♦Represents allotment on June 23 of their share of purchases made on June 22. ♦♦Represents balance of its pro rata share of purchases during period April 12 to May 18. HOLDINGS IN GOVERNMENT SECURITIES - SALES CONTRACTS Cleveland Atlanta $4,680,000 1,0 72,45 0 Net Change From Previous Week $4,680,000+ 1,072,450+ #5,752,450 OTHER TRANSACTIONS 3N GOVERNMENT SECURITIES - (EXCLUDING SALES CONTRACTS) Boston New York Atlanta Chicago Minneapolis Totals (a) (b) (d) Sales Issue Purchases Issue $10,000,000 Treas. B ills due 8 /1 7 /3 2 $ 0 .4 ,5 5 8 ,0 0 0 Misc. Gov’ t Sec. (c ) 24,558,000 Misc. Gov't Sec, n »♦ 527,750 " n n 480,300 " 0 75,515,000 " » ” l f 114,250 " * *» 1,159,650 Misc. Gov *t Sec. #91,715,000 #26,197,950 (a) Purchased temporarily from p o rtfo lio F. It. B. New York. (b) Purchased by F. R. B. Chicago and held temporarily in New York Investment Account for resale to System Account. (c) Includes $10,000,000 each taken over temporarily by F. R‘. B. Chicago and F. R. B. Boston due to low reserve of New York bank; also includes $4,558,000 held temporarily for resale to System Account* (d) Includes $10,000,000 - Aug. 24, 1932, Treasury B ills purchased temporarily from p o rtfo lio F. R. B. New York, and $*4,000,000 special 1-day C /I issued by Treasury* Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority Q •\ | v 7 bankers acceptances (OOO Omitted) Holdings June 22 Boston New York Fhila. Cleve. Richmond Atlan ta iJhicago St*Louis Minn. Kan.City Dallas San Fran. | 2,007 1,087 2,183 3,128 2,760 1,413 3,709 1,232 0 0 63 5,281 Purchased Own Mkt. £ 0 326 R. 4 " 0 100 170 1,930 0 0 0 10 0 M aturities and Sales Held By A llo t Held in ment from E lse New York N. Y. where 0 0 0 0 0 0 0 0 0 0 0 0 w " " " $ 0 875 1,949 0 808 616 0 1,232 0 0 0 2,411 $ 0 0 0 0 0 21 250 0 0 0 4 163 Holdings June 29 # 2,007 538 238 3,128 2,052 946 5,389 0 0 0 69 2,707 Other Holdings Close June 39/52 Sales Con Other tracts B ills | 2,345 1 o 10,073 3,178 3,104 1,230 1,137 4,134 1,005 632 891 861 2,121 976 0 0 0 0 10,735 0 0 0 0 4,081 0 $22,863 $2,540 §7,891 $438 $ .7 ,0 7 4 Totals $15,732 $30,711 B ills held over night by New York for distribution to other F, R. Banks - - _______ 2 T o t a l ------------------- ----- §30,713 NOTE: R. indicates Retained in above statement. MATURITIES AND RATES ON BILLS PURCHASED TOSEK ENDED JUNE 29, 1938 (000 Omitted) 1-30 days New York Philadelphia Richmond Atlanta Chicago Dallas _ M 1 67 0 0 167 741 10 Totals $985 *Purchased a t 2 1 /2 # . 31-60 days 61-90 days 3 834 __ 0 _ 1% #124 4* 100 0 355 0 §937 $583 Ifo iioo 0 0 Over 90-days 1 1 /8 f> $35 0 0 0 0 0 $35 § Total 386 4 100 170 1,930 10 02,540 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority ^ i0 ■\ | 0 1 n~ 8 RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES DURING WEEK SjNIBD JUNE 29, 1932 ( qqq Qnjitted) (Excluding Sales Contracts and Special one-day Cert, of Ind.) Governmen t Securities Purchased Sold Matured Totals Bankers Acceptances $145,302 67,234 36,550 $2,540 $ 41,518+ $ 5 ,9 3 1 - Total 8,329 »,78G1 4 2 -(Net Change _____ 1-day holdover & other b i l l s ) §147,842 67,234 44,879 $ 35,729+ 1 4 2 -(Net Change __________ 1-day holdover & other b i l l s ) HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEF EFDBD JUNE 29, 1932 (Including Sales Contracts and Special one-day Cert, o f Ind.) Within 15-days 16-30 31-60 61-90 days______days______ days 91 days6 months Over 6 months Total Gov’ t Securities B ills Purchased $70,752 29,041 $83,625 $201,750 $293,312 $200,704 $950,828 $1,800,971 0 63,519 2 ,545 2,945 28,975 _______ 13 Totals §99,793 $86,170 $204,695 $322,287 #200,717 $950,828 $1,864,490 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED* ^ „ ,J « AJ ? “1 Authority F e d e ra l R e s e rv e B a n k / y ^ o f N e w Yo r k CONFIDENTIAL June 24, 1952 Mr. E. L. Smead, C h ie f, D iv is io n o f Bank O p era tion s, Federal Reserve B oard, 'Washington, D. C. Dear Mr. Smeod: Enclosed i s a re p o rt o f open mnrket o p e ra tio n s f o r the p e rio d from *June 16, 1952 to June 22, 1932 in c lu s iv e , to g e th e r with data r e c e iv e d from F ederal re se rv e banks. V e^f t Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority % :&s $ Fe d e r a l R e s e r v e B a n k of N e w Y o r k CONFIDENTIAL Dr. June ?4 , 192 A. G olden w eiser, D ir e c t o r , D iv is io n o f Research and S t a t i s t i c s , F ederal Reserve B oard, Washington, D. C. Deer Dr. G olden w eiser; E n closed i s a r e p o rt o f open market o p e r a tio n s f o r the p e rio d from June 16, 193? t o June 2 ° , 1952 in c lu s iv e , to g e th e r w ith data r e c e iv e d from Federal r e s e r v e banks. A s s is ta n t Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives ” r* '■ ' DECLASSIFIED * Authority •\ | | | I R E C E IV E D JUN 25 1932 Fe d e r a l R e s e r v e B a n OFFIoE OF TH E GOVERNOR k FEDERAL RESERVE BOARD of N e w Y o r k CONFIDENTIAL June ?A, 193 °. Dear Governor Meyer* ' Enclosed i s n re p o rt o f open market o p e r a tio n s f o r the p e rio d from June 16, 195? to June ?.?, 1952 in c lu s iv e , to g e th e r vdth data r e c e iv e d from Federal re se rv e banks. A ssista n t Deputy Governor Honorable Eugene ^eyer, Governor, Federal Reserve Board, Viashinpton, D. C. Reproduced from the Unclassified I Declassified Holdings of the National Archives “ DECLASSIFIED' Authority ^ >0 • \ ^ | CONFIDENTIAL REPORT OF OPEN MARKET-OPERATIONS FOR WEEK ENDED JUNE 22, 1932 H oldin gs o f 'Earning A ssets o f F ed eral R eserve Banks from June 24,. 1931 t o Date (000 Omitted) TOTAL EARNING ' ASSETS $ 947,354 934,795 1,1 5 6 ,6 3 6 1 ,557,97 0 2 ,1 9 8 ,2 3 8 1 ,9 2 5 ,5 0 9 2,1 8 5 ,2 1 6 -1931 June 24 J u ly 29 Aug, 26 Sept* 30 O ct. 28 Nov • 25 D ec. 30 -1 9 5 2 Jan. 27 Feb. 24 Mar, 30 Apr. 27 May 25 15 June 22 1,7 8 7 ,9 1 2 1 ,7 2 3 ,8 6 2 1 ,5 78,14 6 1 ,7 7 3 ,7 4 5 2,0 4 0 ,0 5 6 2 *259,718 2 r2 7 7 ,341 GOVERNMENT SECURITIES Outright" Sale s Purchases C on tracts $ 618,503 $ 0 677,977 0 727,998 0 738,455 3,890 726*659 0 727,-101 0 764r955 38,295 750*216 740,006 860,056 1 ,1 9 1 ,2 3 2 1 ,5 2 4 ,8 9 6 1 ,6 9 1 ,4 5 2 1,7 2 9 ,7 0 1 1,500 550 11,562 0 300 775 0 BANKERS ACCEPTANCES O utright S ales Purchases C on tracts | 3 : 226 |105,164 62,909 3 ,6 2 ? 179*476 1,042 449,022 19 p505 725*262 1.418 573 479,225 248,708 78,267 155 s671 126,865 62 *281 45,874 38,373 65,661 53,718 BILLS DISCOUNTED | 197,678 183*056 241,718 527,925 716|680 686,401 1 ,0 2 4 ,1 5 5 857,659 855,'245 655 ,‘255 551 ,'834 471,267 496 ,'259 488 ,‘20 6 8,590 6,517 4,081 0 0 0 0 % CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS) _________________ DURING WEEK ENDED JUNE 2 2 , 1952_____________________ (000 Omitted) GOVERNMENT SECURITIES Net Balance June 22 Ghange Boston 1 New York P h ila delp h ia C leveland Richmond A tla n ta Ghicago S t. L ou is M in n eap olis Kansas C ity D a lla s San F ra n cisco N. Y* h old ov ers and o th e r b i l l s T o ta ls 96,729 721,951 151,578 169,040 47,155 51,724 210,845 62,415 52,458 4 9 f810 29,596 106,642 $ 1 ,7 2 9 ,7 0 1 § 0 20,972+ 2,545+ 5,177+ 0 1,672+ 5,857+ 4 ,9 55+ 1,511+ 0 0 0 |>58<,269+ BANKERS ACCEPTANCES Net Balance Chan ge June 22 | 2,007 1,087 2,185 3,128 2,760 1,413 3,709 1,232 0 0 63 5,281 v? 0 1 2 ,4 2 4 40 203+ 350 0 0 0 0 313+ 30,855 4+ $53,718 1511,943- BILLS DISCOUNTED Net Ba lan ce June 22 Change $ £8,721 103,409 67 ,.449 45,545 25,127 53,079 34,109 12,856 10,676 21,942 12,510 92,983 $ 8341,664+ 2.,287+ 1 4 ,0 8 2 590+ 747+ 4,241+ 183139+ 3 ,5 2 7 2 ,6 6 5 3,390+ $488,206 $ 8 ,0 3 5 - COMMENT ON CHANGES WEEK ENDED JUNE 22, 1932 T o ta l-e a r n in g a s s e t s o f the System showed an in crea se o f $17,623,000 f o r the cu rren t statem ent week. The changes by c la s s -if.ic a t io n c o n s is t e d o f an in crea se o f ^ 38,269,000 in o u tr ig h t purchases o f government s e c u r it ie s and d ecrea ses o f $11,943,000 in o u t r ig h t purchases o f bankers a c c e p ta n c e s , $8 ,0 3 5 ,0 0 0 in b i l l s d i s counted and ^775,000 in government s e c u r i t i e s held under s a le s c o n t r a c t. Reproduced from the Unclassified / Declassified Holdings of the National Archives ~ ^ DECLASSIFIED' r Authority ^ i »D • \b G ^ | 2 Money Market For a l l manber banks in the c o u n tr y , e x ce ss re se rv e s during the p a st week are estim ated t o have averaged abou t $ 2 2 2 ,0 0 0 ,0 0 0 , which is somewhat le s s than in the p re v io u s week* The d ecrea se in excess re serves o f a l l member banks, d e s p it e a d d it io n a l purchases o f $38,000,000 o f Government s e c u r i t i e s by the R eserve Banks, was c h i e f l y the r e s u lt o f Treasury w ithdraw als o f funds from the m arket, p a rt o f which in crea sed Treasury d e p o s its at the Reserve Banks to somewhat above t h e ir usu al l e v e l , and p a rt o f w hich was tr a n s fe r r e d to the F ederal Land Bank accou n ts at the New York Reserve Bank. These payments to the Land Banks, which rep resen ted a fu r th e r s u b s c r ip tio n by the Treasury to the c a p it a l s to c k o f the i n s t i t u t i o n s , were tem p ora rily h eld in the Land Bank accounts a t the Reserve Bank pending investm ent. Another reason f o r the d e c lin e in su rp lu s re se r v e s was the in crease o f $38 ,00 0,000 in money in c i r c u l a t i o n , which accom panied banking d istu rb a n ces in Chicago. The e x c e s s r e se rv e s o f the New York C ity banks during most o f the past statem ent week flu c tu a te d between $60,000,000 and $85,000,000 and on Wednesday, the 22nd, rose to $103,000,000 as compared w ith $ 7 6 ,00 0,000 on the p reced in g Wednesday. The New York C ity banks’ a c tu a l re se rv e b a la n ces showed a net in crea se o f $ 2 2 ,00 0,000 f o r the p e r io d , w hile t h e ir r e se r v e requirem ents de c lin e d § 5 ,0 0 0 ,0 0 0 f u r t h e r . The r e s e r v e b a la n ces o f th ese banks were in crea sed ^ 14,000,000 by purchases in New York o f that amount o f Government s e c u r it ie s fo r the System S p e c ia l Investm ent Account out o f a t o t a l o f $ 3 8 ,0 0 0 ,0 0 0 a cq u ire d fo r th e Account d u rin g the week. Other tra n s a c t io n s o f th e week a ls o r e s u lte d in a net in crea se in member bank b a la n c e s ; la r g e payments to the market from f o r e ig n bank d e p o s it s a t the R eserve Bank, a net a d d it io n to the g old stock by o p e r a tio n s at New York (the f i r s t s in ce the week ended A p r il 6 ) , and a n et retu rn o f cu rren cy from c ir c u la t io n in t h is d i s t r i c t somewhat exceeded lo s s e s through the i n t e r d i s t r i c t movement o f fu n d s, n et Treasury w ith draw als, and the m atu rity o f a p a rt o f the b i l l s taken over in the Reserve Bank account from a f o r e ig n c e n t r a l bank during the pre* v ious week* Money r a t e s con tin u ed easy during the p ast week, and quota t io n s were v ery l i t t l e changed. In f a c t , the on ly r a te s to show any flu c t u a t io n were f e d e r a l funds which moved between 1 /8 and 1 /8 - 1 /4 p er c e n t , and y ie ld s on sh ort-term Government s e c u r it ie s which under went sm all mixed changes. Government Security Market The market f o r United S ta tes Government s e c u r it ie s was l e s s a c t iv e th is week than l a s t , w ith y ie ld s on th e sh ort-term is s u e s tend ing s l i g h t l y higher and th ose fo r the lon g -term Treasury bonds s l i g h t l y lo w e r, p a r t ly due to purchases by the F ederal Land Banks to employ t h e ir new c a p i t a l . At the c lo s e o f th e cu rren t r e p o r t in g p e r io d the average y i e l d on the sh ort-term is s u e s , at d e a le r s ’ o f f e r i n g p r i c e s , was about 0 .6 2 yo as compared w ith 0 .6 0 # at the c lo s e o f the p rev iou s p e r io d and the average s e l l i n g p r ic e o f the L ib e r ty Loan bonds was 101*67 and o f Treasury bonds 98.57 as compared w ith the p rev iou s week*s average c lo s in g p r ic e s o f 101 ,53 and 98.37 r e s p e c t iv e ly . Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority >Q • \ | ^ j r~ 3 3 1 3 3 3 3 3 2 1 3 3 D e a le r s ’ O ffe r in g P r ic e s a t the C lose o f the Current Statement Week and Net Changes from the C lose o f the Prev ious Statement Week Net Approx* Y ie ld Change P r ic e Issue - - -2 /3 2 100 11/32 1 /8 $ C e rt, o f Ind. due Aug. 1 , 1932 tf 0,29% -1 /3 2 Sept,, 15, 1932 100 6/32 1/8% w * tt tt »» 0,22% -2 /3 2 1 5 , 1932 100 2 0/32 % " " tt 0.39% -3 /3 2 1/8% " " O c t. 15 , 1932 100 27/32 0.55% - 3 /3 2 101 9 /3 2 15, 1932 1/4% Treasury Notes t f Dec. 0.69% -1 /3 2 101 27/32 3/4% C e rt, o f Ind. ♦t Feb. 1 . 1933 tt tt - 3 /3 2 1.01% 101 31/32 3/4% " ” Mar. 15, 1933 tt IT - 2 /3 2 1.15% % ~w ” May 100 23/32 2 , 1933 tt 1.29% - 2 /3 2 1/2% ” " tt 100 6 /3 2 June 1 5 , 1933 2,05% -2 /3 2 101 23/32 May % Treasury Notes 2 , 1934 tf tf 2 .7 8 % - 6 /3 2 100 19/32 % " June 1 5 , 1935 Treasury B i l l s , June & July m a tu r itie s - 0.45% d isco u n t b id , 0.15% asked tf tf tf tf 0.20% ” 0.50% Augu st C lo sin g P r ic e s on th e New York Stock Exchange a t the Close o f the Current Statement Week and Net Changes from C lose o f the P revious Statement Week Net P r ic e Issue Change Issue P r ic e 104 28/32 1947-52 Treasury 4 1 / 4 s +12/32 1 st 3 l / 2 s 101 2 /3 2 102 12/32 1944-54 " 4s 101 18/32 - 1 /3 2 1 st 4 l / 4 s 99 30/32 " 3 3 / 4s 1946-56 102 12/32 + 2 /3 2 4th 4 l / 4 s 97 31/32 ” 3 3 /8 s 1943-47 98 13/32 w 3 3 / 8s 1940-43 98 1 /3 2 w 3 3 /8 s 1941-43 94 4 /3 2 " 3 l / 8 s 1946-49 92 27/32 1951-55 ” 3s Net Change - 5/32 + 2 /3 2 + 6/32 +19/32 + 3/3 2 + 3/32 +16/32 + 7 /32 Bankers A cceptan ces Dealers* o f f e r in g s o f unendorsed bankers a ccep ta n ces con tin u ed at the fo llo w in g ra te s during the cu rren t statem ent week: 7 /8 per cen t f o r 3 0 s , 60s and 9 0 s, 1 per cent f o r 120s and 1 1 / 4 per cen t f o r 180day b i l l s . R ep orts Week ended June 22 B oston rep orted that the su p ply o f b i l l s in the l o c a l market con tin u ed sm all during the p ast p e rio d but was s u f f i c i e n t to meet the l o c a l demand. As a whole b i l l s did not move f r e e l y . In New York the b i l l market was extrem ely d u ll t h is week. A ccep tin g and d iscou n tin g banks con tin u ed t o w ith h old t h e ir b i l l s from the market and d e a le r s ’ purchases were v e r y l i g h t . D e a le r s ’ s a le s w hile sm all exceeded t h e i r purchases and aggregate p o r t f o l i o s d e c lin e d by about $ 7 ,000 ,0 00 to $ 2 8 ,0 0 0 ,0 0 0 . D ealers rep orted near the c lo s e o f the week that they were c a r r y in g a good p r o p o r tio n o f t h e i r p o r t f o l i o s at 1 /2 p er cent* In P h ila de lp h ia , d e a le rs re p o rte d o f f e r in g s were in sm all volume. P o r t f o l i o s con tin u ed heavy. D allas re p o rte d that the demand fo r b i l l s was n e g lig ib le an,d no o f f e r in g s were made to the re se rv e bank. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority Q • | 4 OPERATIONS TO ACCOUNT Oii1 UNITED STATES TREASURY T ra n sa ction s consummated under Treasury a u th o r iz a tio n during the cu rren t statem ent week were as fo llo w s : Purchases o f $ 550*000 - 3 3 /8 # Treasury Bonds o f 1940-43 account Sinking Fund 7 .0 4 5 .0 0 0 - 3 3 /8 $ " " ” 1941-43 " f’ w 5 .2 0 5 .0 0 0 - 3 3 /8 # " " " 1943-47 w ” 112 ,80 0,000 and s a le s o f $ C u stodian, 400,000 - Fourth 4 1 /4 # L ib e rty Loan bon d s,accou n t A lie n P rop erty SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES Purchases o f U nited S ta te s Government s e c u r i t i e s f o r the System Account during the cu rren t statem ent week, under a u th o r ity granted at the m eeting o f the Open Market P o lic y Conference in Washington on May 17, 1932, amounted to # 3 8 ,25 0,000 as fo llo w s : 500,000 4 ,0 0 0 ,0 0 0 4 ,7 0 0 ,0 0 0 600,000 1 ,5 0 0 ,0 0 0 3 ,8 0 0 ,0 0 0 1 4 ,7 0 0 ,0 0 0 8 ,4 5 0 ,0 0 0 - 3 1 3 3 3 3 1 3 1 /8 # C /I due Aug. 1 , 1932 tr Se-pt. 15, 1932 1 /8 # w tr tt 15, 1932 cp tt tr tr O ct, 15, 1932 1 /8 # tr Feb 4 3/4 $ tt 1 , 1933 t r tr 3 /4 # Mar. 15, 1933 tt June 1 5, 1933 1 /2 # tt tr June 15, 1935 # T/N $ 38 ,25 0,000 These purchases were made by the r e s p e c t iv e d i s t r i c t s : New York $13 ,65 0,000 fo llo w in g l i s t e d F ederal reserve banks in t h e ir Chicago $1 5 ,1 0 0 ,0 0 0 San F ra n cis co $9 ,5 0 0 ,0 0 0 Other tr a n s a c tio n s e f f e c t e d in th e Account during the cu rren t s ta te ment week c o n s is t e d o f the exchange in the m arket, at advantageous r a t e s o f # 6 0 ,00 0,000 aggregate amount o f sh ort-term issu es f o r a l ik e amount o f o th e r sh ort-term is s u e s as f o l l o w s , ( a l l o f which were e f f e c t e d in the New York market w ith th e e x c e p tio n o f $ 5 ,0 0 0 ,0 0 0 which was e f fe c t e d in the Chicago m ark et). SOLD $27 ,00 0,000 16 ,0 0 0 ,0 0 0 4 ,5 0 0 ,0 0 0 1 ,0 0 0 ,0 0 0 6,500,00 0 3 ,0 0 0 ,0 0 0 2 ,0 0 0 ,0 0 0 $60,000,000 Tr. B i l l s due 3 1 /8 # G /I " 1 1 /8 # ” ” 3 # " " 3 1 /8 # w ” 3 1 /4 # T/N ” 3 3 /4 $ C /I " PURCHASED July Aug. S ep t. tt O ct. D ec. M ar* 13, 1, 15, 15, 15, 15, 15, 1932 1932 1932 1932 1932 1932 1933 $ 1 ,0 0 0 ,0 0 0 3 7 ,2 5 0 ,0 0 0 6 ,0 0 0 ,0 0 0 1 5 ,7 5 0 ,0 0 0 $60 ,00 0,000 2 .# C /I due May v June 1 1 /2 # tr C A 3 " May T/N /° tr 3 " June # 2, 15, 2, 15, 1933 1933 1934 1935 Reproduced from the Unclassified I Declassified Holdings of the National Archives -- - - ......... .■ ..------------------ DECLASSIFIED ' *' Authority 5 Sale in th e market ( i n accordance w ith the terms o f c o n tr a c t under which these c e r t i f i c a t e s were purchased on June 14) o f $ 6 ,0 0 0 ,0 0 0 - 2 % G /I due May 2 , 1953 5 ,000,00 0 - 3 3/4% " *» Mar. 1 5 , 1933 a to ta l o f ^ 9,000 ,00 0 which was r e p la ce d by purchase in the market o f $ 6 ,2 5 0 ,0 0 0 - 1 1 /2 # C /I due June 1 5 , 1933 2 ,7 5 0 ,0 0 0 - 3 % T/N " ” 15, 1935 v'9 ,000 ,000 The a d d itio n a l purchases during the week o f $38,250,000 government s e c u r i t i e s in crea sed the amount o f t o t a l h old in g s in the System Account to $ 1 ,5 5 9 ,5 8 3 ,0 0 0 . The p a r t ic ip a t io n s by F ederal reserv e banks and the c la s s i f i c a t i o n o f issu es held in the Account at the c lo s e o f b u sin ess Wednesday, June 2 2 , 1932, were as fo llo w s : PARTICIPATIONS BY FEDERAL RESERVE BANKS Boston New York P h ila d e lp h ia C leveland Richmond A tlan ta Chicago S t . L ou is M inneapolis Kansas C ity D a lla s San F ra n cisco Tot a l s $ 9 5 .9 7 8 1500 596,092,500 127.972,000 169 90 3 9 ,500 47,132 ,5 00 51,560,000 189,247,000 61,914 ,5 00 44 ,6 8 6 ,0 0 0 49,723 ,0 00 19 ,5 9 6 ,0 0 0 106,641,500 $ 1 ,5 5 9 ,5 8 3 ,0 0 0 RECAPITULATION OF HOLDINGS BY MATURITIES June July V tt Aug. ft tt M tl S e p t. tt O ct. D ec. Feb. Mar. May June May June tr ft O ct. 29, 13, 20, 27, 10, IV , 24, 3 1, 1, 15, 15, 15, 15, 1# 15, 2, 15, 2, 15, 15, 15, 15, 1932 T r e a s .B ills $ tt n 1932 tt tr 1932 tl tt 1932 tr tt 1932 ti ti 1932 ti tt 1932 ti ti 1932 1932 - 3 1 /8 $ C /I 1952 - 1 1/8% ” 1932 - 3 % M 1932 - 3 1/8% « 1932 - 3 1 /4 % T/N 1933 - 3 3 /4 % C /I 1933 - 3 3/4% * 1933 - 2 % ” 1933 - 1 1/2% " 1934 - 3 % T/N d 1935 - 3 p tt 1 9 3 2 /4 7 -3 1/2% 1 st L/L 1 9 3 2 /4 7 -4 1/4% 1 s t ” 1 9 3 3 /3 8 -4 1/4% 4th « 36,550>000 47,000 ,0 00 4 0 ,4 7 5 ,0 0 0 4 3 ,1 5 0 ,0 0 0 16 ,0 0 0 ,0 0 0 58,750,000 4 7 ,427 ,0 00 75,587,000 53,900,000 8 4 ,3 9 3 ,0 0 0 1 0 1 ?451,500 81,011 ,5 00 107 ,19 7,000 13,525,000 135 ,32 5,000 101,850,000 8 0 ,9 0 0 ,0 0 0 65,175,000 47 ,8 0 0 ,0 0 0 73 >025,000 23 >000 ,000 226,091,000 $ 1 ,5 5 9 ,5 8 5 ,0 0 0 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority ^ i Q | •\hGQ j | :'EMIZE D STATEMENT OF TtfANSACTIONS IN GOVERNMENT SECUR1*1x33 AND BANKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS ________ FROM JUNE 16 TO JUNE 2 2 , 1932, INCLUSIVE_________________________ Boston New York P h ila d e lp h ia C leveland Richmond A tlan ta Chicago S t. L ou is M inneapolis Kansas C ity D allas San F ra n cisco T o ta ls GOVERNMENT SECURITIES - SYSTEM DIVESTMENT ACCOUNT Net Adju s tmerit s in P a r t ic ip a t io n s Purchases S ales Decrease 0 $ 3 ,9 9 4 ,5 0 0 v 3 ,9 9 4 j 500 $ o 0 3 4 ,0 7 2 ,5 0 0 3 ,6 4 9 ,0 0 0 5 8 ,694 ,0 00 0 0 7 ,6 1 6 ,0 0 0 5,2 7 1 ,5 0 0 0 0 10,088 ,0 00 6,911*500 0 0 1 ,9 6 1 ,5 0 0 1 ,9 6 1 ,5 0 0 0 0 2 ,0 9 7 ,0 0 0 3 ,9 1 4 ,0 0 0 0 0 11,644 ,0 00 7 ,7 8 7 ,0 0 0 0 3,649,000+ * 3 ,7 6 1 ,5 0 0 2,4 7 5 ,5 0 0 0 0 1 ,8 2 8 ,5 0 0 2,9 7 6 ,0 0 0 0 0 2 ,0 6 9 ,0 0 0 2 ,0 6 9 .0 0 0 0 0 816,000 816,000 0 0 4 ,4 3 7 ,0 0 0 4 ,4 3 7 ,0 0 0 ... $111,9 7 1 : 500 073 ,72 1,500 $ 3 ,6 4 9 j 000 /Idj. 0 Net In crea se 0 0 20 ,972 ,5 00 2 ,3 4 4 ,5 0 0 3,1 7 6 ,5 0 0 0 1 ,8 1 7 ,0 0 0 3 ,8 5 7 ,0 0 0 4,9 3 5 ,0 0 0 1 ,1 4 7 ,5 0 0 0 0 0 $ 3 8 ,25 0,000 *R epresents balance o f t h e ir pro r a ta share in a l l purchases made f o r System Account s in c e A p r il 12. ' HOLDINGS IN GOVERNMENT SECURITIES - SALES CONTRACTS Net Change from P reviou s Yveek NONE Chicago #7 7 5 ,0 0 0 OTFIER TRANSACTIONS IN GOVERNMENT SECURITIES - (EXCLUDING SALES CONTRACTS) __ S ales____ Issu e Issu e Purchases ^10.000,000* June 1 5 /3 3 C /l New York #10 ,00 0,000 June 15 /3 3 C /I 532, 600 Misc . G ov’ t Sec. 387,500 2 . Gov’ t Sec. A tla n ta »» ft tt tt .1,040,400 " 1,2 0 4 ,0 0 0 M inneapolis T otk ls #11,57 3,,000 #11,591,500 System A ccou n t. H oldin gs Purch ased Own Mkt. June 15 # 2,007 $ 0 Boston 13,511 New York 215* 2,187 0 P h ila . 0 3,128 C lev e. Richmond 203 2,557 0 1,448 A tla n ta 3,709 Chicago 0 0 1,232 S t.L o u is 0 0 Minn. 0 0 K an .C ity 0 63 D allas San Fran. 4 ,968 360 T o ta ls #778 #34,810 B i l l s h eld over n ig h t by Nei BANKERS ACCEPTANCES (000 Om itted) M a tu r itie s and S a les Held By A l l o t Held in E ls e ment from where New York N.Y. # 0 0 1 0 12,639 0 0 0 4 0 0 0 O' 0 0 0 35 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 47 0 #12,639 #86 Other H oldings C lose June 22/32 Other S ales Con H oldings June 22 t r a c t s B ills # 2,007 # 2,345 0 1,087 0 10,213 3,178 0 2,183 0 3,104 3 ,1 2 8 2,760 0 1,2 3 0 0 1,137 1 ,4 1 3 4 ,134 0 3,709 1,005 0 1,232 632 0 0 0 0 891 861 63 0 5,281 0 2,121 #30,851 #22,863 0 4 Banks T o ta l NOTE: R. in d ic a t e s R etain ed in above statem ent. * F oreig n tra d e a cce p ta n ce s. ,855 i! MATURITIES AND RATES ON BILLS PURCHASED WEEK SNEED JUNE EE, 1932 OOO Omitted) New York Richmond San F ra n cisco T o ta ls 1 -3 0 days 3 I /S # 31-60 days 3#_______ # 0 0 §>215** 0 183* $ 0 203 167 $398 $370 10 $10 61-90 days Over 90-days 2 1/2# 2 1/2# 0 0 0 T ota l $>215 203 360 #778 *Purchased at 2 1 /2 # * *F oreig n trade accep ta n ces RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES DURING WEEK ENDED JUNE 22, 1932 (000 em itted ) (E xclu d in g S a les C on tra cts) Purchased S old Matured Tot al s Government S e c u r it ie s Bankers A cceptances #1B3,563 85,294 0 $ 778 0 12,725 # 1 1 ,9 4 7 4 + (Net Change 1 -d a y h old ov er & oth er b i l l s ) #124,341 85,294 12,725 # 26,322+ 4 + (Net Ghange 1-day h o ld o v e r & o th e r b i l l s ) # 38,269+ # 1 1 ,943- # 26,326+ Total HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED JTJNE 22, 1932 (000 Omitted) (In c lu d in g S a les C on tra cts) Gov *t S e c u r it ie s B i l l s Purchased T o ta ls 61-90 days 91 d ays6 months Over 6 months W ithin 15-days 16-30 days #36,550 21,4 0 3 #87,475 2,618 #187,800 $340,543 $192,705 §884,628 # 1 ,729 ,7 01 2,831 26,866 0 _________0_________ 53,718 #57,953 #90,093 #190,631 #367,409 #192,705 $884,628 #1,783,419 31-60 days T otal Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED r Authority t ‘ \ ^ Ci | [ June HO| 1 9 3 2 . Mr. V/. B. Matteson, Aaaiatant Deputy Governor, Federal Heserve Bank o f New York! Hew York C ity, Hew York. Dear Mr. Ilatteaon: Receipt is acknowledged o f your le t t e r o f June 17, 1932, addressed to Governor Beyer, inclosing a r e jw>rt of transactions in Government se cu ritie s and bankers* acceptance*} as reported to your conraittee fo r the period from June 9 , 1932, to Jane 15, 1932, in clu sive. Tour le t t e r and inclomire w ill be brought to the attention of the reeirtoers o f the 7oderal H'eserve Board* Very tru ly yours, E. i'U McClelland, Assistant Secretary. E&M/acw | I Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority tf % / F e d e ra l R e s e rv e B a n k of CONFIDEHTIAL Ne w Yo r k June 17 , 1932, Mr. E. L. Smead, Chief, Division o f Bank Operations, Federal Reserve Board, Washington, D. C. Dear Mr. Smead: Enclosed i s a report o f open market operations fo r the period from June 9 , 1932 to June 15 , 1932 inclu siv e , together with data received from Federal reserve banks. W. B. Matteson Assistant Deputy Governor Encl. of B»nk Operation,' Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority Fe d e r a l R e s e r v e B a n k of N e w Y o r k CONFIDENTIAL June 17 , 1952, Dr. E. A. Goldenweiser, Director, Division o f Research and S t a t is t ic s , Federal Reserve Board, Washington, D. C. Dear Dr. Goldenweiser: Enclosed i s a report o f open market operations fo r the period from June 9 , 1932 to June 16, 1932 inclu siv e , together with data received from Federal reserve banks. Ve^Vtraly/ypu] W. B. Matteson Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives a ^ U U ¥ U i US nc R E c ^ tv ir ® ^ For CIR CULATION Gov, JUN 20 1932 M e y e r . ...........................................* M r, H a m lin . V + ................................. M r, Jam es . .V - Mr. ___ 1 / ----- M opee Fe d e r a l R e s e r v e B a n k # F F Io E of th e governor FEDERAL RESERVE BOARD — of N e w Y o r k M r . M i l l e r ______________ M r . P o l e ------------------------------ M r. M r. i P l e a s e n o t e - initial R eturn to and S e c r e ta r y ’ s O ffice C w J June 1 7 , 1932. CONFIDENTIAL Dear Governor Meyeri E nclosed i s a r e p o r t o f open market o p e r a tio n s f o r th e p e r io d from June 9 , 1932 t o June 15, 193$ in c lu s iv e , to g e th e r with data r e c e iv e d from Federal re se rv e banks. Ver t r u ly y o u r s . ft. B. Matteson Assistant Deputy Governor Honorable Eugene Meyer, Governor, Federal Reserve Board, Washington, D. C. Reproduced from the Unclassified / Declassified Holdings of the National Archives ~~ r- , DECLASSIFIED' Authority \ >Q • 6 G ^ | CONFIDENTIAL REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED JUNE 15, 1932 -1 9 3 1 June 17 24 July 29 Aug. 26 S ep t. 30 O ct. 28 Nov. 25 Dec. 30 -1 9 3 2 Jan. 27 Feb, 24 Mar. 30 Apr. 27 May 25 June 8 w 15 § i 1 H oldings o f Earning A s s e ts o f F ed era l R eserve Banks from June 17, 1951 t o Date ^q0 q o m itte d ) TOTAL EARNING ASSETS $ 900,454 947,334 934,795 1 ,1 5 6 ,6 3 6 1 ,5 5 7 ,9 7 0 2 ,1 9 8 ,2 3 8 1 ,9 2 5 ,5 0 9 2 ,1 8 5 ,2 1 6 Outr ight Purchases $ 599,004 618,503 677,977 727,998 738,455 726,659 727,101 764,933 1 ,7 8 7 ,9 1 2 1 ,7 2 3 ,8 6 2 1 ,5 7 8 ,1 4 6 1 ,7 7 3 ,7 4 5 2,040 ,056 2 *187,973 2 ,2 5 9 ,7 1 8 750,216 740,006 860,056 1 ,1 9 1 ,2 3 2 1 ,5 2 4 ,8 9 6 1 ,6 4 4 ,5 6 7 1 ,6 9 1 ,4 3 2 SECURITIES S a les C on tra cts # 0 0 0 0 3,890 0 0 38,295 1,500 550 11,562 0 300 0 775 BANKERS ACCEPTANCES S a les O u trigh t C on tracts Purchases $102,711 $ 4 ,1 0 3 3 ,226 103,164 62,909 3 ,627 179,476 1,042 449,022 19,505 723,262 1,418 573 479,225 248,708 78,267 BILLS DISCOUNTED $ 185,388 197,678 183,056 241,718 327,925 716,680 686,401 1 ,0 2 4 ,1 5 5 837,639 835,243 633,255 531,824 471,267 501,911 496,239 8,590 6,517 4,081 0 0 0 0 153,671 126,865 62,281 45,874 38,375 55,717 65,661 CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS) DURING WEEK ENDED JUNE 15, 1952 (000 Om itted) GOVERNMENT SECURITIES Net Balance June 15 Change B oston $ New York P h ila d e lp h ia C leveland Richmond A tla n ta C hicago S t . L ou is M inneapolis Kansas C ity D a lla s San F ra n cisco N. Y. h o ld o v e rs and oth er b i l l s T ota ls 96,729 700,959 129,033 165 ,86 3 47,135 50,052 206,988 57,480 51,147 49 *810 29,596 106,642 $ 1 ,6 9 1 ,4 3 2 1 o 33,555+ 5,651+ 4,919+ 0 2,332+ 5,973+ 340+ 1,515+ 0 5 ,0 0 0 0 $46,865+ BANKERS ACCEPTANCES Balance Net June 15 Change $ 2,007 13,511 2,187 3 ,1 2 8 2,557 1,4 4 8 5,709 1 ,2 3 2 0 0 63 4 ,9 6 8 # 2,007+ 12,394+ 2,182+ 3,128+ 1,397+ 1,286+ 3,609+ 1,232+ 0 0 0 2,701+ 30,851 8+ $65,661 #29,944+ BILLS DISCOUNTED Balance Net June 15 Change $ 29,555 101,745 65,162 59,427 24,537 32,332 29,868 13,059 10,537 25,269 15,175 89,593 $ 21+ 1,281+ 1,002+ 3,753+ 7475 ,2 1 7 4 ,1 0 5 46784+ 67876+ 675- $496,239 $ 5 ,6 7 2 - COMMENT ON CHANGES WEEK ENDED JUNE 1 5 , 1952 T o t a l ea rn in g a s s e t s o f the System showed an in crea se o f $ 7 1 ,74 5,000 f o r the cu rren t statement week. The changes by c l a s s i f i c a t i o n c o n s is t e d o f in cre a s e s o f $46 ,86 5,000 in o u tr ig h t purchases o f government s e c u r i t i e s , $775,000 in government s e c u r it ie s h e ld under s a le s c o n tr a c t and $ 2 9 ,94 4,000 in o u tr ig h t purchases o f bankers a ccep ta n ces and a d ecrease o f $ 5 ,672 ,0 00 in b i l l s d iscou n ted * Reproduced from the Unclassified I Declassified Holdings of the National Archives ~ r- -.ioney Market DECLASSIFIED * Authority ^ >D • \ b G ^ 1 r±'he ex cess r e se rv e s o f the New York C ity banks showed l i t t l e change during the past week» b ein g $76,000,000 on June 15 as compared w ith $ 7 9 ,00 0,000 on the p reced in g Wednesday, The re se rv e bala n ces o f these b&nks d e c lin e d $>9,000,000, but at the same time t h e ir r e se r v e r e quirem ents dropped an a d d it io n a l $ 6 ,0 0 0 ,0 0 0 . Tor the week as a w h ole, excess re se r v e s o f a l l member banks in the cou n try a r e estim ated to have averaged about $ 2 4 5 ,0 0 0 ,0 0 0 , o r m od erately h igh er than in the p rev iou s week* The most im portant o p e ra tio n s o f the week con tin u ed to be g o ld t r a n s a c tio n s , which were very la r g e ly lim it e d to the co n v e rsio n o f funds o f fo r e ig n c e n t r a l banks in to g a ld , and which aid n ot in t h e ir e n t ir e t y a f f e c t member bank re se rv e b a la n ces; t h is was due to the f a c t th at about o n e -h a lf o f the week’ s lo s s o f $7 0 ,0 0 0 ,0 0 0 o f g o ld was paid f o r by accep tances taken ov er by the R eserve Banks from a f o r e ig n bank. For the coming week g o ld t r a n s a c tio n s now in p r o s p e c t are c h i e f l y ex p orts o f g o ld p r e v io u s ly earmarked, t r a n s a c tio n s which w ill have no e f f e c t on our g o ld supply* In a d d it io n to that p a rt o f the gold lo s s th at did a f f e c t the New York money m arket, there were a ls o moderate lo s s e s through mid-month cu rren cy requirem ents and through a net in crea se in f o r e ig n bank d e p o s its at the R eserve Bank. The lo s s e s from these ca u s e s, however, vtere la r g e ly o f f s e t by the purchase in New York o f an a d d it io n a l $46 ,00 0,000 o f Govern ment s e c u r i t i e s f o r the System S p e c ia l Investment A ccou n t, out o f a t o t a l o f $47 ,00 0,000 a cq u ired during the week, by a sm all net ga in t o t h i s mar k et through the i n t e r - d i s t r i c t movement o f funds (a c o n s id e ra b le gain through commercial t r a n s fe r s and ch eck settlem en ts was la r g e ly o f f s e t by la r g e payments to oth er d i s t r i c t s f o r Government s e c u r it ie s d e liv e r e d in New Y o r k ), and by a n et g a in o f funds t o t h is market through Treasury t r a n s a c t io n s . On June 15, the Treasury was a b le t o c lo s e the day w ith a sm all c r e d it bala n ce at the R eserve Banks, as compared w ith an o v e r d r a ft which is usual f o r the f i r s t day o f a ta x p eriod * This circum stance was due to the r e l a t i v e l y la r g e amount o f m aturing T reasury c e r t i f i c a t e s th a t were exchanged f o r the new is s u e s dated June 15 and a l s o to the f& ct th a t a s iz a b le amount o f the maturing c e r t i f i c a t e s were not p resen ted on th a t day f o r payment in cash . The Treasury by u t i l i z i n g most o f i t s c r e d i t b ala n ce o f the 14th and by making d e p o s it s in the Reserve Banks o f g o ld h eld above Treasury requirem ents was thus a b le to bala n ce i t s p o s it io n w ith ou t s e l l i n g s p e c ia l on e-d ay c e r t i f i c a t e s o f in debtedness to the R eserve Banks* There appears t o have develop ed in recen t months a tend ency fo r a number o f h o ld e r s o f m aturing is su e s o f Treasury o b lig a t io n s t o h o ld them beyond m aturity* I t appears t o be a form o f hoarding* The p r in c ip a l development in money r a t e s during th e week was a r e d u c tio n in the r a te f o r open market com m ercial paper to a p r e v a ilin g range o f 2 1 /3 - 2 3 /4 per c e n t . C a ll money, tim e money, and b i l l s were a l l unchanged at l e v e l s p r e v io u s ly c u r re n t. Y ie ld s on sh ort-term Govern ment s e c u r i t i e s tended s l i g h t l y lo w e r, fo llo w in g l a s t week’ s sm all advance Government Security Market The market f o r U nited S ta tes Government s e c u r i t i e s , e s p e c ia lly f o r the lo n g -te rm is su e s o f Treasury bonds, turned s tro n g and a c t i v e , due, no d ou bt, to the p u b lic announcement du rin g the week rega rd in g g o ld move ments and the f e e l i n g o f h op efu ln ess reg a rd in g the outcome o f the bonus l e g i s l a t i o n . P r ic e s f o r the week showed sm all f r a c t i o n a l lo s s e s f o r the e a r ly m a tu r itie s o f the sh ort-term is s u e s , sm all f r a c t i o n a l gain s f o r the l a t e r m a tu r itie s o f the sh ort-term is s u e s and the L ib e r ty Loan bonds, and ga in s ranging from 1 .1 8 /3 2 to 2 .2 6 /3 2 f o r the lo n g -te rm Treasury bonds. At the c l o s e o f the cu rren t r e p o r t in g p e r io d the average y i e l d on the s h o rt-te rm is s u e s , at d e a le r s ’ o f f e r i n g p r i c e s , was about 0*60$ (0.43% ex c lu d in g the new is s u e s dated June 15 o f 1 1 /2 $ c e r t i f i c a t e s and 3% n o te s ) as compared w ith 0*42^ a t the c lo s e o f th e p rev iou s p e r io d and the aver age s e l l i n g p r ic e o f the L ib e r ty Loan bonds was 101*53 and o f Treasury bonds 9 8.37 as- compared with th e p rev iou s week’ s average c lo s in g p r ic e s o f 101.44 and 96*37 r e s p e c t i v e l y . Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority D • j Jammsmm-s 3 3 1 / 8 $ 1 1 / 8 % 3 $ 3 1 / 8 $ 3 1 / 4 $ 3 3 / 4 $ 3 3 / 4 $ 2 1 D ealers* O ffe r in g P r ic e s a t the C lose o f the Current Statement Week and Net Changes from the C lose o f the P rev iou s Statement Week Net Approx# y ie ld Change Issue P r ic e - 1 /$& 1 0 0 1 3 / 3 2 1 9 3 2 C ert, o f In d . due Aug# 1 . t» -------------------" " 0 . 2 2 $ " Sept, 1 5 , 1 9 3 2 1 0 0 7 / 3 2 " " " ” Treasury C e rt, o f ” ” 1 / 2 3 3 1 5 , 1 9 3 2 1 0 0 2 2 / 3 2 - 2 / 3 2 1 5 , 1 9 3 2 1 0 Q 3 0 / 3 2 - 2 / 3 2 0 . 2 6 $ 1 5 , 1 9 3 2 1 0 1 1 2 / 3 2 - 3 / 3 2 0 . 4 6 $ " 0 . 1 8 $ 1 , 1 9 3 3 1 0 1 2 8 / 3 2 - 2 / 3 2 0 . 7 2 $ 1 5 , 1 9 3 3 1 0 2 2 / 3 2 - 1 / 3 2 0 . 9 6 $ 2 , 1 9 3 3 1 0 0 2 5 / 3 2 4 / 3 2 1 . 0 9 $ 1 5 , 1 9 3 3 1 0 0 8 / 3 2 8 / 3 2 1 . 2 4 $ 2 , 1 9 3 4 1 0 1 2 5 / 3 2 + + + 8 / 3 2 2 , 0 2 $ 1 5 , 1 9 3 5 1 0 0 1 3 / 3 2 + 1 3 / 3 2 2 . 8 5 $ >> Issue 1 st 3 l / 2 s 1 st 4 l / 4 s 4 th 4 l / 4 s ft I—1 tt tt O ct. Notes ” Dec. Ind. " Feb * tt " Mar. tt w May tt M June Notes " May tt M June B i l l s , June & August ft & " " $ " ” $ Treasury $ ~ * Treasury $ ti matur i t i e s »» - 0 . 4 5 $ 0 . 4 5 $ d iscou n t b id , " " 0 . 1 5 $ 0 . 2 0 $ asked " C losin g P r ic e s on the New York Stock Exchange at th e C lose o f the Current Statement Week and Net Changes from C lose o f th e P rev iou s Statement Week Net Net Change P r ic e P r ic e Change Issu e +1125/32 100 22/32 +3/32 Treasury 4 1 /4 s 1947-52 105 1 /3 2 tr + 1 .1 8 /3 2 102 10 /3 2 101 19/32 4s 1944-54 + 4/32 tt + 1 .2 8 /3 2 102 1 0/32 99 24/32 3 3 / 4s 1946-56 + 2/32 » + 1 .2 1 /3 2 97 12/32 3 3/8S 1943-47 tt + 1 .2 7 /3 2 98 10/32 3 3 / 8s 1940-43 tt 97 30/32 +2. 6 /3 2 3 3 /8 s 1941-43 tt + 2 .1 0 /3 2 93 20/32 3 l / 8 s 1946-49 tt 92 20/32 + 2 .2 6 /3 2 3s 1951^55 Bankers Acceptanc es D e a le rs ’ o f f e r i n g s o f unendorsed bankers accep ta n ces con tin u ed at the fo llo w in g r a t e s during the cu rren t statem ent week; 7 /8 p er cent f o r 3 0 s , 60s and 9 0 s, 1 per cen t f o r 120s and 1 1 /4 per cent f o r 180-day b i l l s . R ep orts week ended June 15 B oston re p o rte d that the su p p ly, which con tin u ed small during the past p e r io d , was in s u f f i c i e n t to meet the improved l o c a l demand, and d e a le rs found i t n ecessary to import b i l l s from t h e ir o f f i c e s in o th e r c i t i e s t o com plete o r d e r s . In New Y ork , dealers* purchases f e l l o f f v ery s u b s t a n t ia lly t h is week as compared w ith the p ast two w eeks. T heir s a le s to the o u ts id e market were in about the same volume w h ile s a le s to the R eserve bank f o r the accounts o f fo r e ig n corresp on d en ts were v ery l i g h t . T o ta l s a le s , how ever, exceeded purchases m oderately and aggregate p o r t f o l i o s d e c lin e d by about $ 6 ,5 0 0 ,0 0 0 . Due to the la c k o f demand f o r endorsed b i l l s , most o f the d e a le rs in creased t h e ir r a te s on m a tu ritie s up to 90 days t o the same l e v e l s as f o r unendorsed b i l l s , i . e . » 1 p er ce n t b id , 7 /8 asked. P h ila d e lp h ie re p o rte d that o f fe r in g s o f b i l l s were in small volume w ith the demand s la c k and p o r t f o l i o s con tinued upward. Chicago r e p o rte d that there was p r a c t i c a l l y no supply o f b i l l s in i t s m arket. D a lla s r e p o rte d th a t the demand f o r b i l l s was n e g lig ib le and no o f f e r in g s were made to the Reserve bank* Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED' Authority tBCtSt&T 1Q | • \h G ^ [ | L». r 4 OPERATIONS FOR ACCOUNT OP UNITED 3TATSS TREASURY There were no purchases or s a le s o f government s e c u r it ie s under Treasury a u th o r iz a tio n during the cu rre n t statem ent week, SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES Purchases o f U nited S ta te s Government s e c u r it ie s f o r the System Account du rin g the cu rren t statem ent week, under a u th o r ity gran ted at th e m eeting o f the Open Market P o lic y C onference h eld in ?/ashington on May 17, 1932, amounted t o $ 4 6 ,8 5 0 ,0 0 0 , as fo llo w s : $12 ,00 0,000 1,000 ,000 14,000,000 750,000 2 ,5 0 0 ,0 0 0 4 ,7 0 0 ,0 0 0 11 ,4 0 0 ,0 0 0 500,000 - - - 3 1 3 3 3 3 2 3 1 /8 $ 1 /8 $ $ 1 /4 $ 3 /4 $ 3 /4 $ $ $ c e r tific a te s « due Aug. S ept, »t n Treasury n otes " D ec. c e r tific a te s w Feb. tt tt Mar. »t tf May tt Treasury n o te s " 1932 1932 1932 1932 1933 1933 s , 1933 2 , 1934 1, 15, 15, 15, 1. 15, 046 ,8 5 0 ,0 0 0 A ll o f these purchases were made in the New York market w ith the e x c e p tio n o f $ 1 ,0 0 0 ,0 0 0 which was made in the Chicago m arket. Other t r a n s a c tio n s e f f e c t e d during the week c o n s is te d o f Exchanges in the market at advantageous r a te s o f $ 1 ,0 0 0 ,0 0 0 -T r. B i l l s due July 13, 1932 f o r $ 1 ,0 0 0 ,0 0 0 -3 $ C /I due S e p t ,15/32 »f June 15/33 2 .0 0 0 .0 0 0 -1 1 /8 ^ C /I due S ep t. 1 5 , 1932 " 2 ,0 0 0 ,0 0 0 -1 1 /2 $ t t ft " 15/35 2 .0 0 0 .0 0 0 -3 % T/N ” May 2 , 1934 " 2 ,0 0 0 ,0 0 0 -3 $ T/N ti O ct. 15/32 1,000 ,0 0 0 -3 1 /2 $ 1 st L /L Bds* " 1 ,0 0 0 ,0 0 0 -3 1 /8 $ C /I $ 6,000 ,000 £‘ 6,000 ,000 Exchanges by s u b s c r ip t io n s t o new Treasury is s u e s dated June 15, 1932 pursuant to Treasury o f f e r i n g dated June 6 , 1932: $ 2 9 ,5 5 0 ,0 0 0 -2 3 /4 $ C /I due June 15, 1932 f o r $ 1 4 ,7 7 5 ,0 0 0 -1 1 /2 $ C /I due June 15/33 1 4 ,7 7 5 ,0 0 0 ^3 $ T/N " " 1 5 /3 5 029,550 ,000 Of th ese exchange s u b s c r ip t io n s $ 9 ,000 ,0 00 was en tered by the F ed eral R eserve Bank o f Chicago ( f o r $ 9 ,0 0 0 ,0 0 0 m aturing c e r t i f i c a t e s h eld by them in sa fe k e e p in g f o r System A ccount) and the balan ce o f $ 2 0 ,5 5 0 ,0 0 0 was entered by the F ederal Reserve Bank o f New Y ork . S ale in the market on June 15, o f $10 ,00 0,000 - 2 3 /4 $ c e r t i f i c a t e s due June 15, 1932 ( in accordance w ith the terms o f c o n tr a c t under which th is b lo c k o f c e r t i f i c a t e s was purchased on June 7 ) , w hich was r e p la c e d by purchase in the mar k et o f $ 9 ,0 7 5 ,0 0 0 new 3$ T reasury n otes due June 15, 1935 and $925,000 new 1 1 /2 $ c e r t i f i c a t e s due June 1 5 , 1933. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' T ““ 1 Authority ^ >0 • \ 6 * 5 0 [ 5 On June 1 3 , the F ed eral Reserve Bank o f D a lla s , owing to i t s reserv e p o s i t i o n , was tem p ora rily r e lie v e d o f $5 ,0 0 0 ,0 0 0 o f i t s p a r t ic ip a t io n in govern ment s e c u r i t i e s in the System A ccount. T h is p a r t ic ip a t io n was taken over in to the p a r t ic ip a t io n o f the F ed era l Reserve Bank o f New Y ork, The a d d it io n a l purchases o f *>46,850,000 government s e c u r it ie s r e fe r r e d to in the fo r e g o in g statem ent in crea sed the amount o f t o t a l h o ld in g s in the System Account to $ 1 ,5 3 1 ,3 3 3 ,0 0 0 , The p a r t ic ip a t io n s by F ederal re se rv e banks and th e c l a s s i f i c a t i o n o f is s u e s held in the Account at the c lo s e o f bu sin ess Wednesday, June 15, 1932, were as fo llo w s : PARTICIPATIONS BY FEDERAL RESERVE BANKS Boston New York "P h ila d elp h ia C leveland Richmond A tlan ta Chicago S t. L ou is M inneapolis Kansas C it y D a lla s San F ra n cisco T o ta ls $ 95,978,500 575,120,000 1 25 ,62 7,500 1 6 5 ,86 3,000 47,132 ,5 00 4 9 ,7 4 3 ,0 0 0 185,390,000 56,979 ,5 00 43 ,538 ,5 00 4 9 ,7 2 3 ,0 0 0 1 9 ,5 9 6 ,0 0 0 106,641,500 § 1 ,5 2 1 ,3 3 3 ,0 0 0 RECAPITULATION OF HOLDINGS BY MATURITIES 29 13 tt 20 tt 27 Aug. 10 w 17 n 24 tt 31 1 Aug. Sept. 15 M 15 O ct, 15 D ec. 15 Feb, 1 Mar. 15 2 May June 15 2 May June 15 June 15 tt 15 O ct. 15 June July | 36,550,000 1932 T r e a s .B ills tt 74,000,000 1932 »! tt 4 0 ,4 7 5 ,0 0 0 1932 ft tt 43*150,000 1932 tt Tt 1932 1 6 ,000 ,0 00 tt tt 58,750,000 1932 ft W 4 7 ,427 ,0 00 1932 tt tf 75*587,000 1932 69,400 ,0 00 1932 - 3 1 /8 $ C /I 1932 - 1 1 /8 $ " 84 ,8 9 3 ,0 0 0 1932 - 3 97,751,500 $ ” 86 ,911 ,5 00 1932 - 3 1 /8 $ " 110 ,19 7,000 1932 - 3 1 /4 $ T/N 12,025 ,0 00 1933 - 3 3 /4 $ C /I 136,525,000 1933 - 3 3 /4 $ " 106,850,000 1933 - 2 $ ” 22,700 ,0 00 1933 - 1 1 /2 $ » 59,175,000 1934 - 3 $ T/N 20,850,000 1935 - 3 $ M 73,025,000 1 9 3 2 /4 7 -3 1 /2 $ 1 st L/L 19 3 2 /4 7 -4 1 /4 $ 1st " 23,000,000 226,091,000 1 9 3 3 /3 8 -4 1 /4 $ 4th " f«l ,521,333 ,00 0 Reproduced from the Unclassified I Declassified Holdings of the National Archives m DECLASSIFIED * \ Authority Q • bG ^ | ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTS CSS AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS Boston New York P h ila d e lp h ia C leveland Richmond A tla n ta Chicago S t. L ou is M inneapolis Kansas C ity D allas San F r a n cis c o GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT Net Adjustm ents in Decrease Purchases S a les P a r t ic ip a t io n s | 2 ,8 7 6 ,5 0 0 § 2 ,8 7 6 ,5 0 0 0 # o 55,961 ,5 00 0 0 1 7,687 ,0 00 0 7 ,3 9 2 ,0 0 0 0 3,761,00 0 0 0 4 ,8 2 3 ,5 0 0 4 ,8 2 3 ,5 0 0 1 ,4 1 2 ,5 0 0 1 ,4 1 2 ,5 0 0 0 0 3,7 1 4 ,0 0 0 0 1,4 8 8 ,5 0 0 0 1 1 ,523 ,5 00 0 0 5 ,5 5 0 ,0 0 0 0 0 2 ,0 4 7 ,5 0 0 1 ,7 0 7 ,5 0 0 1 ,3 0 3 ,5 0 0 2 ,7 0 9 ,0 0 0 0 0 1 ,4 9 0 ,0 0 0 0 1 ,4 9 0 ,0 0 0 0 0 594,000 5,5 9 4 ,0 0 0 5,000,00 0 3 ,1 9 6 ,0 0 0 0 3 ,1 9 6 ,0 0 0 0 # 97,740,000 T o ta ls 0 $50,890,000 Net In crea se $ 0 33,355,000 3 ,6 3 1 ,0 0 0 4 ,9 1 9 ,5 0 0 0 2 ,2 2 5 ,5 0 0 5 ,9 7 3 ,5 0 0 340,000 1 ,4 0 5 ,5 0 0 0 0 0 $ 5,000,000 $51 ,85 0,000 HOLDINGS IN GOVERNMENT SECURITIES - SALES CONTRACTS Net Change From P revious Week Chicago $775,000+ $775,000 OTHER TRANSACTIONS IN GOVERNMENT SECURITIES - (EXCLUDING SALES CONTRACTS) Issu e Purchases Issue S ales 800 M isc. M isc. Govf t Sec. $ 228, CrCHF’ t S ec. § 335,400 A tla n ta n r » w n « 819, 728,900 800 " M inneapolis T o ta ls $ 1 ,0 4 8 , 600 | 1,064 ,30 0 BANKERS ACCEPTANCES (OCO Q u itted ) Boston New York P h ila . C leve. Richmond A tla n ta Chicago S t.L o u is Minn. K an.City D allas San Fran. T o ta ls H oldin gs June 8 i o 1,117 5 0 1,160 162 100 0 0 0 63 2,267 $4,874 M a tu ritie s and Sales Held By A l l o t Held Purchased ment from in E ls e New York N, Y. where Own Mkt. | 2,007 a o i o 1 0 3,719 0 0 16,113*R . 17,353 A# 0 0 0 2,1 8 2 0 3,128 0 0 0 0 0 1,397 0 1,287 0 1 100 0 3,709 0 0 0 0 1,232 0 0 0 0 0 0 0 0 0 0 0 0 0 334 624 R. a, 4 1 1 $34,090 $17,353 $3,719 $435 H oldings June 15 | 2,007 13,511 Other H oldings C lose June 15/31 S ales Con Other B ills tra cts 0 | 2,3 4 5 0 10,213 2,187 3,128 2,557 1,448 3,709 1,232 0 0 63 4,968 0 0 0 0 0 0 0 0 0 0 3,178 3,104 1,230 1,137 4,134 1,005 632 891 861 2,121 $34,810 0 $30,851 * Bought from f o r e ig n corresp on d en t. NOTE: R. in d ic a t e s R etained and A. in d ic a t e s A llo t t e d in above statem ent. mm Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority Q • \6 G ^ | MATURITIES AND SATES ON BILLS PURCHASED YflSEK ENDED JCTO 15, 1952 1 -3 0 days 2 1/2# 61*90 days 2 1 /2 -3 1 /S # #33,466 42* # 0 183 # 0 399 #33,466 624 #53,508 #183 #399 #34,090 - J New York San F ra n cisco T o ta ls 31-60 days 4 _ Over 90-days T otal ♦Purchased a t 2 1 /2 % RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES HIRING WEEK ENDED JUNE 15, 1932 ^qqq c h i tte d ) , - r ’ (E xclu d in g S a les C on tra cts) Government Secu ri t ie s Purchased Sold Matured T o ta ls Bankers A cceptances T otal #103 ,723 27,308 29,550 #137,813 #34,090 27,308 0 35,704 4 >154 $ 76,801+ #29,936+ 8+(N et Change 8+ (Net Change ___1-day h o ld o v e r _________ 1 -d ay h o ld o v e r & o th e r b i l l s ) & oth er b i l l s ) $ 46,865+ #29,944+ # 76,809+ HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED JUNE 15, 1952 (000 O m itted) (In c lu d in g S a les C on tra cts) Govf t S e c u r it ie s B i l l s Purchased T o ta ls W ithin 1 5 -days 16-50 days 51-60 61-90 days______ days 91 d ays6 months Over 6 months______ T otal #57,525 26,979 #74,000 9 ,7 9 5 #175,030 #208,750 #398,948 $798,154 # 1 ,6 9 2 ,2 0 7 1,761 2 7 ,1 2 8 0_________ 0_________ 65,661 #64,504 #85,793 #176,791 #355,878 #598,948 #798,154 # 1 ,7 5 7 ,8 6 8 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * . ■.** ' OF N | Authority e w Yo r k CONFIDENTIAL June 1 0 , 1952. Dr. E. A. G olden w eiser, D ir e c t o r , D iv is io n o f Research and S t a t i s t i c s , F ederal Reserve Board, Washington, D. C. Dear Dr. G olden w eiser• E nclosed i s a r e p o r t o f open market o p e r a tio n s f o r the p e rio d from June 2 , 1932 t o June 8 , 1932 in c lu s iv e to g e th e r w ith data r e c e iv e d from F ederal re se rv e banks. W. B. Matteson Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority Fe d e r a l R e s e r v e B a n D ♦\ j k of N e w Y o r k CONFIDENTIAL June 1 0 , 1932. Mr. E. L. Smead, C h ief, D iv is io n o f Bank O p era tion s, Federal Reserve Board, Washington, D. C. Dear Mr. Smead: E nclosed i s a r e p o r t o f open market o p e ra tio n s f o r the p e rio d from June 2, 19b2 t o June 8, 1932 i n c lu s iv e , to g e th e r with data r e c e iv e d from F ederal re se rv e banks. Ver/^ITruly y o u rs , f t , 3. ifcatteson Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives Fe d e r a l R e s e r v e B a n k of N e w Y o r k P fis s e note • initial and CONFIDENTIAL June 10, 1932. Dear Governor Meyer: Enclosed i s a r e p o r t o f open market o p e ra tio n s f o r the p e r io d from June 2 , 1932 t o June 8, 1932 i n c lu s iv e , to g e th e r with data r e c e iv e d from F ederal re se rv e b.-nks. A s s is ta n t Deputy Governor Honorable Eugene Meyer, Governor, Federal Reserve Board, Yfeshington, D. C* Reproduced from the Unclassified I Declassified Holdings of the National Archives ~ r- DECLASSIFIED * Authority ^ >D • \ b G 0 ( CONFIDENTIAL REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED JUNE 8 , 1932 H oldings o f Earning A ssets o f F ederal Reserve Banks from June 10, 1931 to Date (000 Omitted) “ 1931June 10 »» 24 Ju ly 29 Aug. 26 S ep t. 30 O c t» 28 Nov, 25 Dec. 30 -1 9 3 2 Jan. 27 Feb. 24 Mar. 30 Apr. 27 May 25 1 June f* 8 TOTAL EARNING ASSETS $ 912,683 947,334 934,795 1,156*636 X ,557,970 2 ,1 9 8 ,2 3 8 1 ,9 2 5 ,5 0 9 2,185*216 GOVERNMENT SECURITIES O utright S ales C on tra cts Purchases $ 599,024 ( o 618,503 0 677,977 0 0 727,998 738,455 3,890 726,659 0 727,101 0 764,933 38,295 1 ,7 8 7 ,9 1 2 1 ,7 2 3 ,8 6 2 1 ,5 7 8 ,1 4 6 1 ,7 7 3 ,7 4 5 2 ,0 4 0 ,0 5 6 2 ,1 1 0 ,4 2 4 2 ,1 8 7 ,9 7 3 750,216 740,006 860,056 1*191,232 1 ,5 2 4 ,8 9 6 1 ,5 7 4 ,9 0 0 1 ,6 4 4 ,5 6 7 1,500 550 11,562 0 300 300 0 BANKERS ACCEPTANCES O utright S a les C on tracts Purchases $119,287 $ 7,930 3,226 103,164 62,909 3,627 179,476 1,042 19,505 449,022 723,262 1 ,418 573 479,225 78,267 248,708 153,671 126,865 62,281 45,874 38,373 35,479 35,717 8,590 6,517 4,081 0 0 0 0 BILLS Discounted $ 184,755 197/678 183,036 241,718 327,925 716,680 686,401 1 ,0 2 4 ,1 3 3 837,639 835,243 633,255 531,824 471,267 494,601 501,911 CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS) _________________DURING WEEK ENDED JUNE 8 , 1933_________________ ___ (000 Omitted) GOVERNMENT SECURITIES Bal anc e Net June 8 Ghange $ Boston New York P h ila d e lp h ia C leveland Richmond A tlan ta Chicago S t. Louis M inneapolis Kansas C ity D a lla s S6n F ra n cis co N,Y. h o ld o v e rs and oth er b i l l s T o ta ls 96,729 667,604 125,402 160,944 47,133 47,720 201,015 57,140 49,832 49,810 34,596 106,642 $ 1 ,6 4 4 ,5 6 7 V -L1 3 ,3 5 8 5,387+ 7,298+ 0 3,356+ 8,862+ 13,925+ 2,198+ 5,000+ 0 37,000+ $69,667+ BANKERS ACCEPTANCES Net Balance Change June 8 $ 0 1,117 5 0 1,160 162 100 0 0 0 63 2,267 $ o 180+ 0 0 285+ 750 0 0 0 613 7- 30,843 6+ $35,717 $238+ BILLS DISCOUNTED Net Balance Change June 8 $ 29,534 100,464 64,160 55,674 25,284 37,549 33,973 13,506 10,453 25,947 15,099 90,268 $ $501,911 $7,310+ 6704 ,6 3 7 705,462+ 135+ 3,504+ 3,643+ 2 ,9 1 5 603362+ 2,474+ 625+ COMMENT ON CHANGES WEEK ENDED JUNE 8 , 1932 T o ta l ea rn in g a s s e t s o f th e System showed an in crea se o f $77,549,000 f o r the cu rren t statem ent week. The changes by c l a s s i f i c a t i o n c o n s is t e d o f in c r e a se s o f $ 6 9 ,66 7,000 in o u tr ig h t h o ld in g s o f government s e c u r i t i e s , $238,000 in o u tr ig h t h old in g s o f bankers a ccep ta n ces and $7,310 ,0 00 in b i l l s d iscou n ted * and a decrease o f $300,000 in government s e c u r i t i e s h eld under s a le s co n tr a c t* Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority D • | 2 Money Market The e x c e s s r e s e r v e s o f the Mew York C ity banks showed a fu r th e r d e c lin e from $103,000,000 to $ 7 9 ,00 0,000 during the p ast statem ent week, d e s p ite a d ecrease o f $17 ,00 0,000 in the reserv e requirem ents o f these banks which accompanied a drop in d e p o s it s . Meanwhile, the e x ce s s r e serv es o f a l l member banks averaged about $ £ 2 5 ,0 00,000, compared w ith $260,000,000 in the p re v io u s week. The lo s s o f $12 7,0 00,000 t o the m onetary g o ld s to ck o f the U nited S ta tes during the p a st week ex erted a heavy d rain on the re se rv e b a la n ces o f the New York C ity banks and in a d d itio n th e Treasury w ith drew about $ 3 5 ,0 0 0 ,0 0 0 more o f funds from t h is market than was d isb u rsed h ere, about tw o -th ird s o f t h is amount rem aining in T reasury bala n ces at the Reserve Banks* O ffs e t t in g t o a moderate ex te n t the ou tflow o f g o ld was a d e c lin e o f $3 2 ,0 0 0 ,0 0 0 in the amount o f fo r e ig n bank d e p o s its at the Reserve Banks, and there was a ls o some re d u ctio n in o th e r d e p o s it s a t the New York Reserve Bank, in c lu d in g c h i e f l y payments from the N a tio n a l C red it C orp oration account to the m arket, but the aggregate net l o s s from f o r e ig n , Treasury, and com mercial tr a n s a c tio n s exceeded the e f f e c t o f the purchase in New York o f an a d d it io n a l $ 6 9 ,50 0,000 o f Government s e c u r i t i e s f o r the System S p e c ia l Investm ent Account and o f the d e c lin e in New York C ity bank re se rv e requ irem en ts, w ith the r e s u lt that by the end o f the week the surplu s r e s e r v e s o f the C ity banks were about on e-q u a rter sm a ller than at the p reced in g Wednesday. The week’ s r e d u c tio n o f $127,000,000 in the monetary g o ld s to c k caused t h is c o u n tr y 's h o ld in g s to drop to $ 3 ,9 7 9 ,0 0 0 ,0 0 0 on June 8. Gold e x p o rts o f the week t o t a le d $ 9 4 ,00 0,000 and in clu d ed $ 4 7 ,00 0,000 to F rance, $ 2 2 ,00 0,000 t o S w itzerla n d , $ 1 7 ,50 0,000 to H olland, and $ 7 ,5 0 0 ,0 0 0 t o Belgium . W hile a c o n s id e r a b le p a rt o f g o ld was r e le a s e d frcm earmark, a d d it io n a l amounts were s e t a s id e f o r fo r e ig n banks so that t o t a l earm arkings were in crea sed by a net amount o f $ 3 8 ,0 0 0 ,0 0 0 . Im ports f o r the week t o t a le d about $ 3 ,0 0 0 ,0 0 0 , in c lu d in g r e c e ip t s at San F r a n c is c o . The p re se n t in d ic a t io n s are that the n et l o s s o f g o ld w i l l be much sm aller during th e ensuing week, as most o f the p r in c ip a l European exchanges have now d e c lin e d below the l e v e l s at which g o ld shipments are p r o f i t a b l e . G old tr a n s a c tio n s now scheduled f o r th e com ing week are lim it e d to a d d it io n a l co n v e rsio n s o f the funds o f f o r e ig n c e n tr a l banks in to g o ld . Government Security Market Money r a te s at New York again showed l i t t l e change during the p a st week. The Stock Exchange c a l l loan r a te h eld at 2 1 /2 per cent w ith o u ts id e market loa n s p la ce d p r i n c i p a l l y a t 1 p er cent which was the low o f the p re v io u s week. Time loa n s lik e w is e were unchanged at a nomi nal r a t e o f 1 1 /2 per c e n t . In commercial paper, an in c r e a s in g p r o p o r t io n o f prime paper moved at 2 1/2 per c e n t, and d e a le rs are now qu otin g a p r e v a ilin g range o f 2 1 /2 - 3 p er c e n t. The ra te f o r fe d e r a l funds which f o r a few days rose to 1 /2 - 3 /4 per ce n t d e c lin e d to 1 /8 per cent by the c lo s e o f the p ast week. Y ie ld s on sh ort term U nited S ta tes Government s e c u r i t i e s , on the o th e r hand, tended s l i g h t l y h ig h er f o r the week* The market f o r sh ort-term is s u e s o f United S ta tes Government s e c u r it ie s con tin u ed t o be s l i g h t l y e a s ie r w ith p r ic e s d e c lin in g f o r the week from 1 /3 2 t o 1 0 /3 2 . The market f o r U nited S ta tes Government bonds was q u ie t , p r ic e s showing ir r e g u la r f r a c t io n a l changes each day during the week, with the g e n e ra l trend r e f l e c t i n g a s lig h t improvement over the p rev iou s week. At the c lo s e o f the cu rren t r e p o r t in g p e rio d the average y ie ld on the s h o rt-te rm is s u e s , at d e a le rs* o f f e r in g p r i c e s , was about 0 .4 2 $ as compared w ith 0 ,3 8 $ at the c lo s e o f the p re v io u s p e r io d and th e average s e l l i n g p r ic e o f the L ib e r t y Loan bonds was 101.44 and o f Treasury bonds 96.37 as compared w ith the p reviou s week’ s average c lo s in g p r ic e s o f 101.40 and 96.19 r e s p e c t iv e ly . Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority 0 • \6 * 5 5 | tfc a le r s 1 O ffe r in g P r ic e s at the C lose o f the Current Statement Week and Net Changes from the C lose o f the P rev iou s Statement Week 2 3 1 3 3 3 3 3 2 3 Issue P r ic e 3 /4 $ C ert, o f Ind. due June 15, 1932 tt n »♦ 1 /8 $ t t Aug. 100 14/32 1 / 1932 tt tf »» S e p t . 15, 1932 1 /8 $ f t 100 7/32 tt n W tt »t 15, 1932 100 24/32 $ tt tt tt O ct. 15, 1932 101 1 /8 $ n 101 15/32 1 /4 $ Treasury Notes it Dec. 15, 1032 tt Feb. 3 /4 $ C ert, o f Ind. 101 30/32 1, 1933 tt Mar. 15, 1933 t» n 3 /4 $ ♦> 102 3/32 n tt w 100 21/32 May 2, 1933 $ h tt 101 17/32 1934 2 , $ Treasury Notes t t Treasury B i l l s , m a tu rites June 29 to Aug. 24, 1932 0 .4 5 $ d isco u n t b id , 0 .1 5 $ asked * ” m aturing Aug. 31, 1932 0 .4 5 $ d iscou n t - - - - - Net Change - - - 2 /3 2 - 1/32 - 2 /3 2 - 2/32 - 3/32 - 3/32 - 4/32 - 7/32 -1 0 /3 2 Approx, Y ie ld - - 0 .0 6 $ 0 .2 9 $ 0 .1 5 $ 0 .2 4 $ 0 .3 8 $ 0 .7 2 $ 0 .9 8 $ 1 .2 5 $ 2 .1 6 $ b id , 0 .2 0 $ asked C losin g P r ic e s on the New York S tock Exchange a t the Close o f the Current Statem ent Week and Net Changes from C lose of the P reviou s Statement Week ISSUQ 1st 3 l/2 s 1st 4 l /4 s 4th 4 l / 4 s P r ic e 100 19/32 101 15/32 102 8 /3 2 Net Change +8/32 -2 /3 2 -2 /3 2 Treasury tt tt tt tt tt » tt 4 4 3 3 3 3 3 3 Issue l / 4 s 1947-52 s 1944-54 3 /4 s 1946-56 3 /8 s 1943-47 3 /8 s 1940-43 3 /8 s 1941-43 l / 8 s 1946-49 s 1951-55 P r ic e 103 8 /3 2 100 24/32 97 28/32 95 23 /3 2 96 15/32 95 24/32 91 10/32 89 26/32 Net Change - 4 /3 2 +19/32 + 8 /3 2 -1 1 /3 2 +11/32 - 2 /3 2 +10/32 +14/32 Bankers A cceptances D e a le r s ' o f f e r i n g s o f unendorsed bankers a ccep ta n ces c o n t in ued at the fo llo w in g r a te s during the cu rren t statem ent week: 7 /8 p er cent f o r 30s, 60s, and 9 0s, 1 per cent f o r 120s, and 1 1 /4 per cen t f o r 180-day b i l l s . R eports week ended June 8 Boston re p o rte d th at there ?;as l i t t l e a c t i v i t y in the l o c a l b i l l market during the past p e r io d . Both the supply and demand de crea sed somewhat and d e a le rs were o b lig e d to forw ard t h e ir ex ce s s o f f e r in g s t o o f f i c e s in o th e r c i t i e s . In New York, d ea lers* purchases in cre a s e d m od era tely as compared w ith l a s t week, w h ile t h e ir s a le s de c lin e d m od era tely. T h eir aggregate p o r t f o l i o s in crea sed by about $15 ,00 0,000 to $ 4 1 ,0 0 0 ,0 0 0 , the h ig h e s t th ey have been s in c e March 9 . One o r two o f the d e a le r s were h e s ita n t about b u ild in g up t h e ir p o r t f o l i o s a t the p re se n t le v e l o f r a t e s but the m a jo r ity o f them f e l t th ey would need the b i l l s a l i t t l e l a t e r on in the month and no changes were made in r a t e s . P h ila d e lp h ia re p o rte d that b i l l s were o f f e r e d a l i t t l e more f r e e l y during the past week. The demand, how ever, eased somewhat and p o r t f o l i o s were up f o r the week. D a lla s r e p o rte d th a t there was no demand f o r b i l l s in i t s d i s t r i c t and no o f f e r in g s were made to the re se rv e bank* Reproduced from the Unclassified I Declassified Holdings of the National Archives ~ DECLASSIFIED' Authority ^ >Q ■ \6*5 5 1 f 4 OPERATIONS FOB ACCOUNT OF UNITED STATES TREASURY There were no purchases o r s a le s o f government s e c u r i t i r s under Treasury a u t h o r iz a tio n during the cu rre n t statem ent wefek. SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES Purchases o f U nited S ta tes Government s e c u r i t i e s f o r th e System Account d uring the current statem ent week, under a u th o r ity granted a t the m eeting o f the Open Marke-t P o lic y C onference h eld in Washington on May 17, 1952, amounted t o $ 6 9 ,5 0 0 |000 as f o llo w s : $ 1 0 ,0 0 0 ,0 0 0 1 0 ,0 0 0 ,0 0 0 3 ,5 0 0 ,0 0 0 5>000,000 33*500,000 4^500,000 3.0 0 0 .0 0 0 — Treasury B i l l s due Aug. 31, 1932 - 2 3 /4 fc c e r t i f i c a t e s due June 15, 1932 - 3 l/Q% " Aug. 1 , 1932 - 3 fo " « S ep t, 15, 1932 - 4 1 /4 $ Fourth L ib e r t y Loan bonds 1933-38 - 2 fo c e r t i f i c a t e s due May 2 , 1933 - 3 fo Treasury n otes ” 2 , 1934 $69,500,000 A ll o f th ese purchases were made in th e New York market. were e f f e c t e d in the m arket, at advantageous r a t e s , o f In a d d it io n , exchanges $10*000,000 - 2 3 /4 fo c e r t i f i c a t e s due June 15, 1932 5 .0 0 0 .0 0 0 - 3 1JZfo F ir s t L ib e rty Loan bonds a to ta l o f $ 1 5 ,00 0,000 fo r ^ 1 0 ,0 0 0 ,0 0 0 - 1 1 /8 fo c e r t i f i c a t e s due S ept. 15, 1932 5 .0 0 0 .0 0 0 - 4 1 /4 fa Fourth L ib e r t y Loan bonds §15,000 ,0 00 The purchase o f <*>69,500,00 0 government s e c u r i t i e s , r e fe r r e d t o in the fo r e g o in g statem en t, in crea sed the amount o f t o t a l h o ld in g s in the System Account to $ 1 ,4 7 4 ,4 8 3 ,0 0 0 . The p a r t ic ip a t io n s by F ed eral re se rv e banks and the c l a s s i f i c a t io n o f is su e s h eld in the Account at the c lo s e o f bu sin ess Wednesday, June 8 , 1932, were as f o llo w s : Reproduced from the Unclassified/Declassified Holdings of the National Archives ~ ~~ T DECLASSIFIED' Authority ^ >D • \ h*? ^ | \ | * 5 PARTICIPATIONS BY FEDERAL RESERVE BAMS Boston New York P h ila d e lp h ia C leveland Richmond A tla n ta Chicago S t. Louis M inneapolis Kansas C ity D allas "San F ra n cisco T o ta ls RECAPITULATION OF HOLDINGS BY MATURITIES 95 ,9 7 8 ,5 0 0 541 ,76 5,000 1 8 1 ,99 6,500 160 ,94 3,500 47 ,1 3 2 ,5 0 0 4 7 ,5 1 7 ,5 0 0 1 7 9 ,41 6,500 56 ,6 3 9 ,5 0 0 4 2 ,1 3 3 ,0 0 0 4 9 ,7 2 3 ,0 0 0 2 4 ,596 ,0 00 106 ,64 1,500 $ 3 6 ,5 5 0 ,0 0 0 June 29, 1932-T reasury B i l l s tf 7 5 ,0 0 0 ,0 0 0 Ju ly 13, 1932- t t « tf 4 0 ,475 ,0 00 20, 1932- t t tt « 4 3 ,1 5 0 ,0 0 0 27, 1932tt 16 ,0 0 0 ,0 0 0 Aug. 10, 1932- t t t» w t» 5 8 ,7 5 0 ,0 0 0 17, 1932tt ft 47 ,4 2 7 ,0 0 0 24, 1932- t t tt tt tt 7 5 ,5 8 7 ,0 0 0 31, 193 239 , 550, 000 June 15, 1932-2 3 /4 # C /I 57,400,000 Aug# 1 , 1932-3 1 /8 # t t 8 5 ,8 9 3 ,0 0 0 Sept.►15, 1932-1 1 /8 # t t 82 ,7 5 1 ,5 0 0 15, 1932 -3 $ tt 8 5 ,9 1 1 ,5 0 0 O ct. 15, 1932-3 1 /8 # m 1 0 9 ,44 7,000 Dec. 15, 1932-3 1 /4 # T/N 9 ,5 2 5 ,0 0 0 Feb. 1, 1933-3 3 /4 # C /I 1 3 1 ,82 5,000 Mar. 15, 1933-3 3 /4 # t t •tt 9 5 ,4 5 0 ,0 0 0 May 2, 1933-2 $ tt 60,675 ,0 00 3, 1934-3 $ T/N L/L 7 4 ,0 2 5 ,0 0 0 1932/47 -3 1 /2 # 1st June 15, tt 23 ,0 0 0 ,0 0 0 15, 1 9 3 2 /4 7 -4 1 /4 # 1 st " Oct. 15, 19 3 3 /3 8 -4 1 /4 # 4th " 226 ,09 1,000 $ 1 ,4 7 4 ,4 8 3 ,0 0 0 $ 1 ,4 7 4 ,4 8 3 ,0 0 0 $ Reproduced from the Unclassified I Declassified Holdings of the National Archives ” DECLASSIFIED' Authority ^ rr i— mi............ r ........ >D • \ ^ 1 , . r 6 ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF AIL FEDERAL RESERVE BANKS _________________________ FROM JUNE 2 TO JUNE 6 , 1958, INCLUSIVE ________________ GOVERNMENT SECURITIES - ..SYSTEM INVESTMENT ACCOUNT Bos t on New York P h ila d elp h ia C leveland Richmond A tla n ta Chicago S t. L ou is M inneapolis Kansas C ity D allas San F ra n cisco T o ta ls Purchases S ales | 1 ,0 2 0 ,5 0 0 $ 1 ,0 2 0 ,5 0 0 4 7 ,3 9 2 ,5 0 0 * 5 ,7 8 2 ,0 0 0 6 ,6 3 1 ,5 0 0 1 ,2 4 4 ,5 0 0 8 ,9 3 7 ,5 0 0 1 ,6 4 0 ,0 0 0 501,000 501,000 3 ,7 7 5 ,0 0 0 473,000 10 ,6 8 3 ,5 0 0 1 ,8 2 1 ,5 0 0 1 ,5 5 1 ,0 0 0 595,000 2 ,5 1 2 ,5 0 0 427,500 493,500 493,500 261,500 261,500 740,000 740,000 Adjustments in P a r t ic ip a t io n s 1 o54,969 *0000 0 0 0 0 12,969,000+ 0 5,000,000+ 0 37,000,000+ Net Decrease 1 0 13,358 ,5 00 0 0 0 0 0 0 0 0 0 0 Net In crease r — o .......... 0 5,3 8 7 ,0 0 0 7 ,2 9 7 ,5 0 0 0 3 ,3 0 2 ,0 0 0 8 ,8 6 2 ,0 0 0 1 3 ,925 ,0 00 2 ,0 8 5 ,0 0 0 5 ,000,00 0 0 37,000 ,0 00 $ 8 4 ,50 0,000 $54 ,96 9,000 A d j. $13,358,500 $82,858,500 $15 ,0 0 0 ,0 0 0 *E xcludes $ 1 ,7 8 5 ,0 0 0 , r e p re s e n tin g C lev ela n d ’ s pro ra ta share o f purchases June 5 h eld in New Y ork’ s p a r t ic ip a t io n over n ig h t and a l l o t t e d to C leveland June 4 . HOLDINGS IN GOVERNMENT SECURITIES - SALES CONTRACTS Net Change From P reviou s Week Kansas C ity $ 3 0 0 ,0 0 0 - NONE OTHER TRANSACTIONS IN GOVERNMENT SECURITIES - (EXCLUDING SALES CONTRACTS) A tla n ta M inneapolis Tot a ls H oldin gs June 1 Boston $ 0 New York 937 5 F h ila . C leve. 0 Richmond 935 237 A tla n ta Chicago 100 0 S t. Lou is Minn. 0 0 K an.C ity 124 D allas San Fran. 2 ,304 Tot a ls $ 4 , 642 Purchases Issu e $207,500 M isc. Gov ’ t Sec. tt » tt 768,000 S ales $153,300 655,400 $975,500 $808,700 Purchased Own Mkt. $ o 2,472* R 2 " 0 375 » 0 0 0 0 0 0 0 $2*849 BANKERS ACCEPTANCES (000 Omitted) M a tu r itie s and S ales By A l l o t Held Held ment from in E ls e New York N. Y, where $ 0 0 $ o 0 0 2,298 0 0 2 0 0 0 0 150 0 0 0 75 0 0 0 0 0 0 0 0 0 0 0 0 0 0 61 0 0 37 0 $2,292 *Bought from fo r e ig n corresp on d en tf R etained in above statem ent. NOTE: R. in d ic a t e s $325 Issue M isc. Gov’ t Sec n »t « Other H oldings Close June 8 /3 2 S ales Other H oldings Con June 8 t r a c t s B ills $ 2 ,3 4 5 0 $ o 1,117 10,206 0 3 ,178 0 5 0 0 3,104 1,229 0 1,1 6 0 0 162 1,137 4,134 100 0 0 0 1,005 0 0 632 0 0 891 63 861 0 2,267 0 2,121 £4,874 0 $30,843 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority p - | >Q • \ b G ^ 1 Jm ft- MATURITIES AND RATES ON BILLS PURCHASED” mSK ENDED JUNE 8 , 1932 (000 Omitted) 1-30 days 2 1!&% 31-60 days 2 1 /Zjo New York P h ila delpiiia Richmond §2,473 0 0 §0 T o t a ls &2«472 $52 2* 50 61-90 days 2 1 /2 # ' Over 90-days T o ta l $ 0 0 325 §2,472 §325 $2,849 2 575 *Purchased at 3$> RECAPITULATION OF PURCHASES AND SALES OF G0VERB5ENT SECURITIES AND BANKERS ACCEPTANCES DIJRIFG- WEEK ENDED JUNE 8 , 1932 (000 Omitted) (E xclu d in g S a les C on tra cts) G-ov ernment S e c u r it ie s Purchased S old Matured T o ta ls $85,476 15,809 0 $69,667+ Bankers A cceptan ces Total. $2,849 0 2,617 $ 232+ ______ 6+ (Net Change 1-day h old ov er $ 238+ and oth er b i l l s ) $88f 325 15 s809 __ 2 : 617 $69,899+ _______ 6+ (Net Change 1-day h old ov er $69*905+ and oth er b i l l s ) HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED JUNE 8,1932 ^qqq om itted ) (In clu d in g S a les C on tra cts) W ithin 1 5 - days 16-30 days Gov’ t S e c u r it ie s $39,590 B i l l s Purchased 3,091 $36,550 4,000 $216,105 2 ,2 1 2 #40,550 $218,317 T o ta ls &42,681 31-60 days 91 days6 months Over 6 months $230,750 26,414 $269,255 0 $852,317 0 $1,644 ,5 67 35,717 $257,164 $269,255 $852,317 $ 1 ,6 8 0 ,2 8 4 61-90 days T ota l Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED * Authority c ‘v •* ?C|b Fe d e r a l R e s e r v e B a n 1932 k of N e w Y o r k CONFIDENTIAL v ^ h -)| A June 3, 1932. Mr* E. L. Smead, Chief, Division o f Bank Operations, federal Reserve Board, Washington, D. C. Dear Mr. Smead: Enclosed i s a report o f open market operations fo r the period from Mey 26, 1932 to June 1 , 1932 in clu sive, together with data received from Federal reserve banks. Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority £ , 0 - A '///*y I/ ederal o f Re s e r v e B a n k N e w Yo r k CONFIDENTIAL June 5, 1932. Dr. E. A. Goldenweiser, Director, Division o f Research and S t a t is t ic s , Federal Reserve Board, Washington, D. C. Dear Dr. Goldenweiser: Enclosed i s a report o f open market operations fo r the period from May 26, 1952 to June 1 , 1952 inclusive together with data received from Federal reserve banks. W. B. Matteson Assistant ^eputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' ' Authority ) D • \b G ^ j ^ For cmeu>ATi§i» GovT Meyer mmauZ Mr. Hamlin, Mr. James , Fe d e r a l R e s e r v e B a n k Mr. Magee. Mr, Miller. of N e w Y o r k Mr. Pote* Mr. Mr, fle a s s m U B 'M M m Iteturn to CONFIDENTIAL June 3 , 1932. Dear Governor Meyer: E nclosed i s a r e p o r t o f open market o p e r a tio n s f o r the p e r io d from May 26, 1932 to ^une 1 , 1932 in c lu s iv e , to g e th e r with data r e c e iv e d from F ederal r e se r v e banks. \ f 1 \rr\n*r*a ¥. 3. Matteson Assistant L'eputy Governor Honorable Eugene Meyer, Governor, Federal Reserve Board, Washington, D. C. Reproduced from the Unclassified I Declassified Holdings of the National Archives ~~ r DECLASSIFIED' Authority Q •\ H *5 1 CONFIDENTIAL REPORT OF OPEN MARKET OPERATIONS FOR WEEK SNDED JUNE 1 , 1952 H oldin gs o f Earning A s s e ts o f F ederal R eserve Banks from June 5 , 1931 to p a te (OOO Om itted) -1 9 3 1 3 June 24 July 29 Aug. 26 S ep t. 30 O c t . 28 Nov. 25 Dec. 30 -1 9 3 2 Jam. 27 Feb, 24 Mar* 30 A pr. 27 May 25 June 1 TOTAL EARNING ASSETS | 907,016 947,334 934,795 ' 1*156,636 1*557,970 2 ,1 9 8 ,2 2 8 ■ 1 ,9 2 5 ,5 0 9 2 ,1 85,21 6 1 ,7 8 7 ,9 1 2 1*723,862 1,578,.146 1 ,7 7 3 ,7 4 5 2 ,0 4 0 ,0 5 6 2 ,1 1 0 ,4 2 4 GOVERNMENT SECURITIES O u trigh t S a les Purchases C on tracts § 598,348 $ 0 618,503 0 677,977 0 727|998 0 738,455 3,890 726,659 0 0 727,101 764,933 38,295 750,216 740*006 860,056 1 ,1 9 1 ,2 3 2 1 ,5 2 4 ,8 9 6 1 ,574,90 0 1,500 550 11,562 0 300 300 BANKERS ACCEPTANCES BILLS O utright S ales C on tracts DISCOUNTED Purchases $126,205 $7,950 v> 172,826 3,226 103,164 197,678 62,909 3,627 183,036 179,476 1,042 241,718 449,022 19,505 327,925 723,262 1,418 716,680 479,225 573 686,401 78,267 248,708 1 ,024,133 153,671 126,865 62,281 45,874 38,373 35,479 8,590 6,517 4 ,081 0 0 0 837,639 835,243 633,255 531,824 471,267 494.601 CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS) DURING WEEK ENDED JUNE 1 , 1932 (000 Omitted) GOVERNMENT SECURITIES Net Balance June 1 Gharjge $ 96,730 § 0 2 8 s502+ 680,962 120,015 3.874+ 153,646 5,250+ 47,133 0 44,364 2,411+ 192,-153 6,376+ 2,126+ 43,215 47,634 1,465+ 44,310 0 34,596 0 69,642 0 B oston New York P h ila d e lp h ia G leveland Richmond A tlan ta Chicago S t. L ou is M inneapolis Kansas C ity Da11a s San F ra n cisco N. Y. h old ov ers and oth er b i l l s T o ta ls 01 .,574; 900 $30,004+ BANKERS ACCEPTANCES Balance Net June 1 Change $ 0 $ 0 1 ,5 8 3 937 5 1000 0 935 20049237 100 3800 0 0 0 0 0 124 25832,3 0 4 30,837 3+ §35,479 $ 2 ,894- BILLS DISCOUNTED Net Balance Change June 1 $ 30,204 $ 355,563+ 105,101 1,780+ 64,230 50,212 1 ,5 9 6 25,149 783+ 1,890+ 34,045 30 ,330 2,820+ 16,421 2,412+ 11,056 2 ,8 4 4 769+ 25,585 12,625 814+ 89,643 11,178+ $494,601 $23,334+ COMMENT ON CHANGES WEEK ENDED JUNE 1 , 1952 T o ta l earn in g a s s e ts o f th e System showed an In crease o f $70 ,36 8,000 f o r the cu rren t statem ent wee.':,> The changes by c l a s s i f i c a t i o n c o n s is t e d o f in cre a se s o f $50 ,00 4.000 in o u tr ig h t h old in g s o f government s e c u r it ie s and $23 ,3 3 4 ,0 0 0 in b i l l s d isco u n te d , and a d ecrea se o f $2,8945000 in o u tr ig h t h old in g s o f bankers accep ta n ces* Reproduced from the Unclassified I Declassified Holdings of the National Archives qoney Market taring the past reporting week tne excess reserves of the v New York money market banks were reduced from $222*000,000 to $ 103,000,000. The surplus reserves of a l l member banks in the country also showed a considerable net decline fo r the period, but it is e s ti mated that the excess averaged about $260,000,000 th is week as compared with $285,000,000 for the week ended May 2 5 . The principal reason fo r the decrease in excess reserves held by the New York City banks was a continued outflow o f g o ld , which fo r the la te s t week amounted to $103,000,000» and which was composed of exports o f $63,700,000 and a net increase o f $41,100,000 in gold held under earmark for foreign account, partly o ffse t by imports of $2,100,000 o f gold at New York. The exports included ch ie fly $28,600/300 shipped to France, $13*700,000 to Holland, $13,000,000 to Switzerland r $6,900,000 to Belgium, and $1,500,000 to Ehgland. Part of the gold ex ported was released from earmark but as additional amounts wel*e set aside for foreign account, the to ta l amount held under earmark showed a large net increase. Currency and coin withdrawals from the Reserve Bank for - the holiday and month-end were also a drain on bank reserves during the week, and an increase in foreign deposit balances at the Reserve Banks as a re su lt o f b i l l m aturities also took funds from the money market * The net withdrawal o f Treasury funds from the New York market, however, was substantially smaller than it has been in other recent weeks, due to the disbursements that the Treasury made in the Second D istrict for account o f the Reconstruction Finance Corporation. The in te r -d is tr ic t movement of funds on balance o f transfers and check settlem ents, includ ing payments, to other d is t r ic ts for Government secu rities delivered in New York, was also s lig h tly against New York, whereas in the previous week the New York market was a large gainer. The effect o f these lo sses o f funds on the money market ms only o ffs e t in part by the purchase o f an additional $49,000,000 o f Government secu rities in New York out o f a to ta l o f $50,000,000 acquired for the System Special Investment Account during the reporting week. There was l i t t l e variation in money rates in the New York market during the past week. The Stock Exchange rate for c a ll money remained at 2 1 /2 per cent, and in the outside market loans were con tracted as low as 1 per cent, as against a low o f 1 1 /4 per cent pre v iou sly. Time money nominal quotations were steady a t 1 1 /2 per cent with a l i t t l e 30 day money placed at that r a te . Likewise commercial paper in the open market was unchanged at 2 3 /4 - 3 per cent for the 4 to 6 month maturity and at 2 1 /2 per cent fo r 90 days, and b i l l rates continued a t 7 /8 per cent fo r 90 days. Yields on short-term United States Government obligations were v ir tu a lly unchanged. On Thursday, June 2, however, the rate for federal funds closed at 1 /2 - 3 /4 o f one per cent, as against the nominal rate of 1 /8 per cent which has prevailed for some time. Government Security Market The roarket for short-term issues of United States Government se cu ritie s was s lig h tly easier during the current statement week with offerin gs more p le n tifu l than during recent weeks and prices in most cases showing s lig h t recessions for the week. The market for United States Government bonds, which has been weak for the past two weeks, made a recovery on Thursday and Friday o f the current period, becoming weak again on Saturday and Tuesday. However, on the la s t day o f the statement week prices in most cases recovered part of the net lo sses recorded e a r lie r , a few o f the issues recovering a l l of the net losses and making fraction al gains fo r the week. At the close of the current reporting period the average yield on the short-term issu es, at dealers* o fferin g p r ic e s, was about 0 .3 8 $ as compared with 0 .3 7 $ (revised) at the close o f the previous period and the average se llin g price of the Liberty Loan bonds was 101*40 and o f Treasury bonds'96.19 as compared with the previous week’ s average closing prices of 101.40 and 96*45 respectively. Reproduced from the Unclassified I Declassified Holdings of the National Archives ” r- DECLASSIFIED' Authority f c . p . *' / 2 3 1 3 3 3 3 3 2 3 Dealers* O ffe r in g P r ic e s at the C lose o f the Current Statement Week and Net Changes from the Close- o f the P rev iou s Statement Week Net Approx, P r ic e Y ie ld Change Issu e _ _ -------- - - - 3/4% Cert . o f In d. due June 15, 1932 tf tt tf tt 0.03% 100 16/32 - 3 /3 2 1/8% Aug. 1> 1932 tt tf tt tt -1 /3 2 0.23% S ep t. 15, 1932 100 8 /3 2 1/8% tt tf tt tt tt -2 /3 2 100 26/32 0.12% 15, 1932 tt tf ft tf 0 .2 2 % -3 /3 2 O c t . 15, 1932 101 2 /3 2 1 /8 % 0 *'31% -1 /3 2 101 18/32 1/4% Treasury Notes " Dec. 15, 1932 0 . 66% -2 /3 2 3/4% C ert . o f In d. " Feb. 102 1 /3 2 1 , 1933 tf tf tt - 1 /3 2 0.89% 102 7/32 Mar. 15, 1933 3/4% t» tt tt tf 1.03% May 100 28/32 2, 1933 % tf -1 /3 2 101 27/32 2.01% fo Treasury N otes " 2 , 1934 Treasury B i l l s , m a tu r itie s June 29 t o Aug. 24, 1932 0.40% d isco u n t b id , 0.15% asked maturing Aug.’ 31,* 1932 - 0.40% d iscou n t b id , 0.25% asked C lo s in g P r ic e s on the New Y ork S tock Exchange a t the C lose o f the Current Statement Week and Net Changes from C lose o f th e P re v io u s Statement Week Net P r ic e Issue P r ic e Issu e Change 103 12/32 -l/3 2 1st 3 l/2 s Treasury 4 l / 4 s 1947-52 100 11/32 tt 100 5/32 4s 1944-54 -2 /3 2 1st 4 1/4.S 101 17/32 tr 1946-56 97 20/32 4th 4 1 / 4s +3/32 3 3 /4 s 102 10/32 tf 96 2 /3 2 3 3 /8 s 1943-47 tf 96 4 /3 2 3 3 /8 s 1940-43 tf 95 26/32 3 3 /8 s 1941-43 tf 1946-49 91 3 1 /8 s tf 89 12/32 3s 1951-55 Net Change +12/32 + 2 /3 2 -1 1 /3 2 - 9/3 2 -1 2 /3 2 -2 1 /3 2 - 4 /3 2 -2 4 /3 2 Bankers A ccep tan ces D ealers* o f f e r i n g s o f unendorsed bankers a ccep ta n ces c o n tin ued at the fo llo w in g r a te s d u rin g the cu rren t statem ent week: 7 /8 per cen t f o r 3 0 s » 60s and 9 0 s, 1 p er cen t f o r 120s and 1 1 /4 p er cen t fo r 1 8 0 -day b i l l s . R eports week ending June 1 Boston r e p o rte d that th e demand f o r b i l l s in i t s d i s t r i c t d u rin g the past p e r io d showed a good improvement, w h ile the supply con tin u ed s m a ll. As a whole b i l l s moved f r e e l y . In New York th ere was a moderate in crea se in the volume o f b i l l s handled by d e a le rs t h is week as compared w ith the p ast sev era l w eeks. D ealers* p u rch ases exceeded s a le s s l i g h t l y and aggregate p o r t f o l i o s in crea sed by about $ 5 ,000 ,0 00 to $ 2 7 ,0 0 0 ,0 0 0 , which is the h ig h est they have been s in c e March 2 3 , 1932. P h ila d e lp h ia rep orted th a t the amount o f new b i l l s showed an in cre a se during the past week but the supply o f prime names was s t i l l lo w , w ith the demand f a i r . P o r t f o l i o s remained unchanged. Chicago rep orted that there was v ery l i t t l e , i f any, movement in b i l l s in i t s d i s t r i c t during the l a s t week. D a lla s r e p o rte d that th ere was no de mand f o r b i l l s and no o f f e r i n g s were made t o the reserv e bank. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority ^ j D • \b G 0 ( 4 / OPERATIONS FOR COUNT OF UNITED STATES TREASURY T ran saction s consummated under Treasury a u th o r iz a tio n during the cu rren t statem ent week c o n s is t e d o f purchases o f $ 690,000 - 3 3 /8 % T reas. Bonds o f 1941-43 - account S inking Fund 2,160,00 0 - 3 3 /8 $ " " ” 1943-47 w * « $2 ,850 ,0 00 SYSTEM SPECIAL BTVESIMENT ACCOUNT - GOVERNMENT SECURITIES Purchases o f U nited S ta tes Government s e c u r i t i e s made f o r the System Account during the cu rren t statem ent week, under a u t h o r it y granted a t the m eeting o f the Open Market P o lic y C onference h e ld in Washington on May 17, amounted t o *$50',,003 ,000 as f o llo w s : $1 5 ,5 0 0 ,0 0 0 750 , 000 272,000 4 ,0 0 0 ,0 0 0 2.5 0 0 .0 0 0 4,975*000 2 .7 50.00 0 1 9 ,2 5 6 ,0 0 0 - Treasury B i l l s due Aug. 3 1 /8 'jo c e r t i f i c a t e s M O ct. 3 1 /4 $ T reasury n o t e s w Dec. 3 3 /4 < J> c e r t i f i c a t e s " Mar. 2 $ " " May V 3 fo Treasury n otes ” 4 1 /4 # 1st L /L Bds 1932-47 4 1/4% 4th " w 1933-38 31, 15, 15, 15, 2, 2, 1932 1932 1932 1933 1933 1934 $50,003 ,000 These purchases were made by th e fo llo w in g Federal re se rv e banks in t h e ir r e sp e c t t iv e m arkets: B oston §1 ,0 0 0 ,0 0 0 New York $ 4 8 ,7 3 1 ,0 0 0 San F ra n cisco $272,000. The o n ly oth er tr a n s a c tio n consummated in the Account during th e week was the Redemption on June 1 o f $50 ,08 7,00 0 maturing Treasury B i l l s , which were re p la ce d by purchase in the market o f a lik e amount o f Treasury B i l l s dated June 1 , due August 31, 1932. The purchase o f $50 ,00 3,000 government s e c u r i t i e s , r e fe r r e d to in the fo r e g o in g statem en t, in crea sed the amount o f t o t a l h old in g s in the System Account to $ 1 ,4 0 4 ,9 8 3 ,0 0 0 . The p a r t ic ip a t io n s by Federal reserv e banks and the c l a s s i f i c a t i o n o f is su e s h eld in th e Account at the c lo s e o f b u sin ess Wednesday, June 1 , 1932, were as f o llo w s : Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * r- Authority ^ $ Tot a l s 95,978 ,5 00 555,123,500 116,609,500 153 ,64 6,000 4 7 ,1 3 2 ,5 0 0 4 4 ,2 1 5 ,5 0 0 170,554,500 42 ,714 ,5 00 4 0 ,0 4 8 ,0 0 0 4 4 ,7 2 3 ,0 0 0 2 4 ,5 9 6 ,0 0 0 69,641 ,5 00 June 29, 1932-Treasury B i l l s tt J u ly 13, 193 2*» tt 20, 1932" ♦t tt » 27, 1932tt Aug. 10, 1932» n tt 17, 1932" « tt » 24, 1932tt tt 31, 1932" June 15, 1932- 2 3 /4 $ C /I Aug. 1, 1932- 3 1 /8 $ f! Sept, 15, 1932- 1 1 /8 $ tt tt 15, 1932- 3 $ tt Oct. 15, 1932- 3 1 /8 $ ft Dec. 15, 1932- 3 1 /4 $ T/N Feb. 1, 1933- 3 3 /4 $ C /I Mar. 15, 1933- 3 3 /4 $ tt $ tt May 2, 1933- 2 tt 19343 $ T/tt 2, June 15, 1 9 3 2 /4 7 - 3 1 /2 $ 1 s t June 15, 1 9 3 2 /4 7 - 4 1 /4 $ 1 s t O ct. 15, 1 9 3 3 /3 8 - 4 1 /4 $ 4 th 36,550,000 75 ,0 0 0 ,0 0 0 4 0 ,4 7 5 ,0 0 0 4 3 ,1 5 0 ,0 0 0 16,000 ,0 00 5 8 ,750 ,0 00 47,427 ,0 00 65,587,000 39 ,550 ,0 00 53,900 ,0 00 75 ,8 9 3 ,0 0 0 7 7 ,7 5 1 ,5 0 0 8 5 ,911 ,5 00 109,447,000 9 ,5 2 5 ,0 0 0 131,825,000 9 0 ,950 ,0 00 57,675,000 L/L 7 9 ,0 2 5 , 0 0 0 £3*000,000 " " 1 8 7 ,5 9 1 , 0 0 0 $ 1 1 ,4 0 4 ,9 8 3 ,0 0 0 $ 1 ,4 0 4 ,9 8 3 ,0 0 0 ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT S E a J R I T I E S AND BANKERS AFFECTING THE INVESTMENT ACCOUNT OF ALL FSIERAL RESERVE BANKS FROM MAY 26 TO JUNE 1 , 1932, INCLUSIVE 1 a> Bos ton New York P h ila d e lp h ia C leveland Richmond A tla n ta Chicago S t. L ou is M inneapolis Kansas C ity D allas San F r a n cis c o RECAPITULATION OF HOLDINGS BY MATURITIES 0 9 PARTICIPATIONS BY FEDERAL RESERVE BANKS >Q • \ h G ^ | GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT Boston New York P h ila d e lp h ia Cleveland Richmond A tla n ta Chicago S t. L ou is M inneapolis Kansas C ity D allas San F ra n cis co Redemption 3 ,4 8 6 ,0 0 0 48 ,1 2 6 ,5 0 0 8 ,0 3 7 ,5 0 0 1 0 ,7 3 1 ,5 0 0 1 ,7 1 2 ,0 0 0 3,9 3 6 ,0 0 0 1 2 ,4 5 0 ; 500 3, 636,500 2 ,9 2 6 ,0 0 0 1 ,6 2 4 ,5 0 0 893,500 2 ,5 2 9 ,5 0 0 $ 3 ,4 8 6 ,0 0 0 19,624 ,5 00 4 r 162,500 5 ,4 8 1 ,5 0 0 1 ,7 1 2 ,0 0 0 1 ,5 6 1 ,0 0 0 6 ,0 7 4 ,5 0 0 1, 511,500 1 ,4 2 6 ,0 0 0 1,6 2 4 ,5 0 0 893,500 2 ,5 2 9 ,5 0 0 $ 0 2 8 ,502 ,0 00 3 ,8 7 5 ,0 0 0 5 ,250,00 0 0 2,3 7 5 ,0 0 0 6,3 7 6 ,0 0 0 2 ,1 2 5 ,0 0 0 1 ,5 0 0 ,0 0 0 0 0 0 £ 10 0,0 90,000 $ 5 0 ,08 7,000 $ 50,003,000 § T o ta ls Net In crease Purchases HOLDINGS IN GOVERNMENT SECURITIES - SALES CONTRACTS Kansas C ity $300., 000 Net Change From P rev iou s Week - Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' Authority D •\ b G ^ | L. OTHER TRANSACTIONS IN GOVERNMENT SECURITIES - (EXCLUDING SALES CONTRACTS) Redemption Purchases Issue and S a le s Issue New York $4 ,413 ,0 00 Tr. B i l l s due 8 /5 1 /5 2 $ 4 ,4 1 3 ,0 0 0 June 1 , 1932 Tr. B i l l s A tlan ta 246.000 M isc. Gov*t Sec* 210 ,100 M isc. G o v 't S ec. « t» t» w w tr 406,000 M inneapolis 371.000 To ta Is $5,029 ,1 00 $ 5 ,030 ,0 00 BANKERS ACCEPTANCES (000 Omitted) Boston N^w Y ork P h ila . C levelan d Richmond A tla n ta Chicago S t. L ou is Minn. Kan. C ity D a lla s San Fran. H oldings May 25 $ 0 2,520 105 0 1,135 286 480 0 0 0 126 2,887 To ta Is Purchased Own Mkt. 0 0 0 0 0 • 0 0 0 0 0 0 0 $7,539 Other H oldings M a tu ritie s and S ales By A l l o t Held Held S a le s Other ment from in E lse H oldings Con New York N. Y. where June 1 t r a c t s B ills & n 0 # 0 0 $ 2,345 fc 0 10,199 937 1,5 8 3 0 0 0 3,178 0 5 0 100 0 0 3,104 0 0 0 0 1,230 0 0 200 935 0 49 0 237 0 1,137 0 100 0 380 4,1 3 4 0 0 1,005 0 0 0 0 0 0 632 0 0 0 0 891 0 0 0 0 0 2 124 861 0 0 0 583 2,3 0 4 2,121 0 0 0 0 0 $1,583 $1,314 $4,642 0 $30,837 RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES ________ AND BANKERS ACCEPTANCES PUR DIG WEEK ENDED JUNE 1 , 1932 (000 Om itted) Purchased Sold Matured Government S e c u r it ie s $105,120 616 54,500 T o ta ls $50,004+ (E xclu d in g S a les G on tra cts) Bankers _ A cceptances T o ta l $ 0 $105,120 0 616 57,397 2,897 $ 47,107+ § 3 ,8 9 7 3+ (Net Change 3+ (Net Change 1-day h old over 1-day h old ov er and oth er b i l l s ) and oth er b i l l s ) $2 ,894$ 47,110+ HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED JUNE 1 , 1932 (000 Om itted) ( Inc lud irvs S a les C on tra cts) Over 6 Within 16-30 31-60 61-90 91 daysT o ta l months I5~days days days days 6 months Gov* t Secur it ie s $539 ,850 $36,550 $158,625 $204,650 $324,255 $ 1 ,3 4 6 ,4 9 4 $3,110,48': __ 7,506 7,447 8,019 12,493 ______ 14 0___ 35,479 B i l l s Pure based To t a ls $47,356 $43,997 $166,644 $217,143 $324,269 $ 1 ,3 4 6 ,4 9 4 $2,145,903 Reproduced from the Unclassified I Declassified Holdings of the National Archives ” , DECLASSIFIED' Authority >D • \ b G ^ j REPORT 01 OPEN MARKET OPERATIONS IDE WEEK ENDED MAY 2 5 , 1932 (First report received "by Mr. Sinead) Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority ,f\ / / / / 1/ y^ iL J I F e d e ra l R e s e rv e B a n k o r N ew Y o rk CONFIDENTIAL May 27, 1932, 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 May 19, 1932 to May 25, 1932 inclusive, together with data received from Federal reserve banks. Ve- yours,. F . B. Matteson Assistant Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' f Authority | >D • \ b G ^ j | For r-Y;v. ^rvrf Fe d e r a l R e s e r v e B a n k of N e w Y o r k rv. Lay 27, 1952. CONFIDENTIAL ■** $ A Dear Governor Meyer: E n closed i s a r e p o r t o f open market o p e ra tio n s f o r the p e r io d from May 1 9 , 1932 to May 25, 1932 i n c l u s i v e , to g e th e r w ith data r e c e iv e d from F ed eral re s e r v e banks. TIK. B. Matteson Assistant Deputy Governor Honorable Eugene Meyer, Governor, Federal ^serve Board, Washington, D. C. E n cl. Reproduced from the Unclassified I Declassified Holdings of the National Archives _ r DECLASSIFIED' Authority | ^ >Q • \b G 0 | j CONFIDENTIAL REPORT OF OPSN MARKET OPERATIONS FOR WEEK ENDED MAY 25, 1952 H oldin gs o f Earning A ssets o f F ed eral Reserve Banks from May 27, 1931 to Date (000 Om itted) -1 9 3 1 27 May June 24 J u ly 29 Aug. 26 S ept. 30 O ct. 28 Nov. 25 D ec. 30 EARNING ASSETS | 876,489 947 ,334 934,795 1 ,1 5 6 ,6 3 6 -1 ,5 5 7 ,9 7 0 2 ,1 9 8 ,2 3 8 1 ,9 2 5 ,5 0 9 2 ,1 8 5 ,2 1 6 -1 9 3 2 Tan. 27 Feb. 24 Mar. 30 Apr. 27 18 May 25 May 1 ,7 8 7 ,9 1 2 1 ,7 2 3 ,8 6 2 1 ,5 7 8 ,1 4 6 1 ,7 7 3 ,7 4 5 1 ,9 7 7 ,0 1 2 2 ,0 4 0 ,0 5 6 GOVERNMENT SECURITIES O utright S ales C on tracts Purchases § 598,368 * 0 0 618,503 677,977 0 0 727,998 3,890 738,455 726,659 0 727,101 0 764,933 38,295 750,216 740,006 ' 860,056 1 ,1 9 1 ,2 3 2 1 ,4 6 6 ,4 0 3 1 ,5 2 4 ,8 9 6 1 ,5 0 0 550 11,562 0 0 300 BANKERS ACCEPTANCES S a les O utright Purchases C on tracts $ 3,291 $121,210 3,226 103,164 3,627 62,909 1,042 179,476 19,505 449,022 1,4 1 8 723,262 573 479,225 78,267 248,708 153,671 126,865 62,281 4 5,874 40,643 38,373 8 ,590 6,517 4,081 0 0 0 BILLS DISCOUNTED $ 152,852 197,678 183,036 241,718 327,925 716,680 686,401 1 ,0 2 4 ,1 3 3 837,639 835,243 633,255 53*,834 464,943 471,267 CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS) DURING WEEK ENDED MAY 25, 1932 (000 Om itted) BILLS DISCOUNTED BANKERS ACCEPTANCES GOVERNMENT SECURITIES Net Net Balance Balance Net Balance Change Change Change May 25 May 25 May 25 Boston § 0 #1,240+ $ 96,730 & 30,239 $30,575+ I 0 New York 2,520 6 7 ,4 8 8 99,738 1,544+ 652,460 1*162P h ila d e lp h ia 116,141 2,602+ 4,536+ 104105 62,450 C leveland 148,396 21,628+ 0 5 1,808 1 ,8 9 3 1 Richmond 4 7 ,1 3 3 15,326+ 1,135 35+ 24,366 692+ A tla n ta 41,953 20,814+ 286 32,155 1,814+ 72Chicago 185,777 480 20 0 7,462+ 27,510 132 S t. L ou is 41,089 0 776+ 2,486+ 0 14,009 M in n eap olis 46,169 0 601,576+ 13,154+ 113,900 4 4 ,8 1 0 Kansas C ity 0 38610,000+ 24,816 835 D allas 0 734,596 126 430+ 11,811 San F ra n cisco 0 2,887 3141 ,4 9 0 69,642 78,465 N. Y. h o ld o v e rs and o th e r b i l l s 30,834 0 T o ta ls | 1,524,896 $58,493+ $38,37 3 $ 2 ,270- #471,267 $6,324+ COI.MENT ON CHANGES WEEK ENIED MAY 25, 1952 T o ta l earn in g a s s e ts o f the System showed an in c r e a s e o f $63 ,0 4 4 ,0 0 0 f o r the cu rren t statem ent week. The changes by c l a s s i f i c a t i o n c o n s is t e d o f in c r e a s e s o f $58 ,4 9 3 ,0 0 0 in o u t r ig h t h o ld in g s o f government s e c u r i t i e s , 0500,000 in government s e c u r i t i e s h e ld under s a le s c o n t r a c t , and $6,324 ,0 00 in b i l l s d is c o u n te d , and a de crea se o f ^ 2 ,270 ,00 0 in o u t r ig h t purchases o f bankers a cce p ta n ce s. Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED * r- Authority >Q • \b G 0 | 2 Money Market For most o f th e p^st statement week, the e x ce ss r e s e r v e s o f the New York C ity banks were m aintained between $16 0,0 00,000 and $ 1 8 0 ,0 0 0 ,0 0 0 , and on Wednesday May 2 5 , the su rplu s rose to §2 2 2 ,0 0 0 ,0 0 0 , r e f l e c t i n g the d e liv e r y on that day o f the la r g e r part o f the s e c u r i t i e s purchased during the week f o r th e System S p e c ia l Investment A ccou n t. The t o t a l purchased in New York du rin g the past week was $ 5 7 ,7 0 0 ,0 0 0 out o f a t o t a l o f §5 8 ,5 0 0 ,0 0 0 o f s e c u r it ie s a cq u ired f o r the A ccou n t. The ex cess r e s e r v e s m aintained by a l l member banks in th e country averaged about §2 8 5 ,0 0 0 ,0 0 0 fo r th e week ended the 2 5 th . The net in crease in the e x ce ss reserv es o f th e New York C ity banks from -$176,000,000 on Wednesday May 18th to $22 2,000,000 on the 25th r e s u lt e d p r in c ip a lly from a gain o f funds t o the New York market on balance o f w ire tr a n s fe r s and ch eck settlem en ts w ith o th e r p a rts o f the country which exceeded funds withdrawn from th is market by the T reasury. The F ed eral R eserve s e c u r it y purchases made during th e week la r g e ly o f f s e t the lo s s o f funds t o the market a r is in g from g o ld exp ort and earmarking t r a n s a c tio n s o f the p e r io d . The monetary g o ld s to c k o f the U nited S ta te s Government showed a fu r th e r drop o f §6 7,000 ,0 00 dull ing the past week) but a p a rt o f t h is did n ot a f f e c t the money market w ith in t h is week s in c e the n ecessa ry funds to purchase th e g o ld were from f o r e ig n bank b a la n ces at the R eserve Banks9 No m a te r ia l changes were ev id en t in the r a t e s tr u c tu r e o f the money market during the past week. Some c a l l loa n s were p la ced o u ts id e the Exchange a t 1 1 /4 per c e n t , as compared with a p reviou s low o f 1 1 /2 p er c e n t , but the o f f i c i a l S tock Exchange r a t e remained a t 2 1 /2 p er cen t and tim e money was unchanged at a nom inal q u o ta tio n o f 1 1 /2 per c e n t. Commercial paper r a te s g e n e r a lly became 2 3 /4 - 3 per cent f o r 4 - 6 month prime m a t e r ia l, w ith 90 day paper bein g marketed a t 2 1 /2 p e r c e n t. In f a c t , some 5 - 6 month m a te r ia l o f e x c e p t io n a l grad© has been s o ld in the Middle West a t 2 1 /2 p er c e n t . Y ie ld s on sh ort-term Government s e c u r i t i e s moved downward v e ry s l i g h t l y , w h ile b i l l r a t e s were unchanged. Government S e c u r ity Market The market f o r lon g -term Treasury bonds, which had been v e r y weak d u rin g the p rev iou s statem ent week, con tin u ed to r e f l e c t the un s e t t le d c o n d it io n s , p r ic e s d e c lin in g from 12/32 t o 1 .1 0 /3 2 fo r th e week. The demand f o r the s h o rt-te rm is su e s con tin u ed good, and p r ic e s f o r th ese is su e s and f o r th e l i b e r t y Loan bonds were stea d y . At the c lo s e o f the cu rren t r e p o r tin g p e r io d th e average y i e l d on the sh ort-te rm is s u e s , at d ealers* o f f e r i n g p r i c e s , was about 0 .4 1 # as compared w ith 0 .3 8 # at the c lo s e o f the p rev iou s p e r io d , and the average s e llin g p r ic e o f the L ib e r ty Loan bonds was 101.40 and o f Treasury bonds 96.45 as com pared w ith the p re v io u s week’ s average c lo s in g p r ic e s o f 101.34 and 97.32 r e s p e c t iv e ly . Reproduced from the Unclassified / Declassified Holdings of the National Archives “ r- , 2 3 1 3 3 3 3 3 ' 2 3 DECLASSIFIED' Authority ^ >Q • \ b G ^ | D ealers* O ffe r in g -Prices a t th e C lose o f the Current Statement Week and Net Changes from the C lose o f the P rev iou s Statement Woek Approx, Net Y ie ld Change Pr ic e Issu e - - --------------------------3 / 4 % C e rt, o f Ind. due June 1 5 , 1 9 3 2 »» »t - - 1 / 3 2 1 0 0 1 9 / 3 2 1 9 3 2 Aug. 1 / 8 % ” M 1 > t» n 0 . 1 9 % - 2 / 3 2 1 0 0 9 / 3 2 S ep t. 1 5 , 1 9 3 2 1 / 8 % " " v tr 0 , 0 9 % - 2 / 3 2 1 0 0 2 8 / 3 2 S ep t. 1 5 , 1 9 3 2 % " " V tt O ct. 1 5 , 1 9 3 2 0 . 1 2 % - 1 / 3 2 1 0 1 5 / 3 2 1 / 8 % " " 0 . 3 5 % 1 0 1 1 9 / 3 2 1 / 4 % Treasury Notes V Dec, 1 5 , 1 9 3 2 0 . 6 6 % - - 1 0 2 3 / 3 2 1 9 3 3 3 / 4 % C ert, o f Ind* ir Feb. 1 » tr ir 0 . 9 2 % 1 0 2 8 / 3 2 1 9 3 3 3 / 4 % " *» Mar. 1 5 , if tr 1 . 0 5 % + 1 / 3 2 1 0 0 2 8 / 3 2 May 1 9 3 3 % " " 2 , 2 . 0 0 % + 1 / 3 2 1 0 1 2 8 / 3 2 1 9 3 4 % Treasury Notes t t May 2 , Treasury B illS j a l l m a tu r itie s from June 1 to Aug. 2 4 , 1932 0.35% d iscou n t b id , 0 .1 5 $ asked C losin g P r ic e s on the New York S tock Exchange at the C lose o f th e Current Statement Week and Net Changes from C lose o f th e P rev iou s Statement Week_____________ Net Issu e P r ic e P r ic e Change Issue 1 s t 3 1 / 2s 100 12 /3 2 Trea sury 4 l / 4 s 1947-52 103 - 2 /3 2 rt 1 s t 4 1 / 4s 101 19/32 + 4/32 1944-54 100 3 /3 2 4s tt 4th 4 l / 4 s 102 7/32 1946-56 + 3/32 97 3 1/32 3 3 /4 s tt 96 11/32 3 3 /8 s 1943-47 tt 96 16/32 3 3 /8 s 1940-43 it 96 15/32 3 3 /8 s 1941-43 tt 91 4 /3 2 3 l / 8 s 1946-49 tt 90 4 /3 2 1951-55 3s Net Change - 1 .1 0 /3 2 - 3 0/32 3 0/32 - 25/32 - 1 . 2 /3 2 - 17/32 - 1 . - 12/32 Bankers Accep tances D ealers* o f f e r in g s o f unendorsed bankers accep ta n ces c o n t in ued a t the fo llo w in g r a t e s during the cu rren t statem ent week: 7 /8 per cent f o r 3 0 s , 60s and 9 0 s, 1 p er cent f o r 120s and 1 1 /4 per cent fo r 1 8 0 -day b i l l s , R ep orts week ending May 25 Boston rep o rte d th a t there was very l i t t l e demand in i t s d i s t r i c t during the past p e r io d . W hile the su p rly showed a s l i g h t in cre a se over the p re v io u s p e r io d , i t m s s t i l l sm all but more than s u f f i c i e n t to take ca re o f the demand, There were no o f f e r in g s to the re se rv e bank. In New Y ork the volume o f b i l l s handled by b i l l d e a le r s d u rin g the week w h ile s l i g h t l y la r g e r than the past few weeks, con tin u ed to be extrem ely sm a ll. With investm ent funds in good su p p ly, most a c c e p tin g and d is c o u n tin g banks h eld as investm ents the bulk o f the new b i l l s c r e a te d so that the d e a le r s a cq u ired v e ry few b i l l s w ith which to meet the demand or b u ild up t h e ir p o r t f o l i o s . Bates were unchanged* P h ila d e lp h ia re p o rte d that i t s accep ta n ce market was m od era tely a c t i v e . O ffe r in g s improved s l i g h t l y and there was a f a i r demand f o r g ood names. P o r t f o l i o s con tin u ed low* Chicago re p o rte d th a t there was p r a c t i c a l l y no b i l l market in i t s d i s t r i c t because o f the la c k o f su p p ly. D allas r e p o rte d th a t there was no demand f o r b i l l s in i t s d i s t r i c t during the past week and no o f f e r in g s were made t o the r e se rv e bank* Reproduced from the Unclassified I Declassified Holdings of the National Archives ” r DECLASSIFIED' Authority ^ >Q • \ b G ^ | \ 4 OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY / Transactions consummated under Treasury authorization during 1iie current statement week consisted of purchases of ,52 5 ,0 00 - Treasury Bonds 1943-47, account Sinking Fund 700,000 " « 1941-43, * » » $3,225,000 SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES Purchases o f United States Government se cu ritie s made for the System Account during the current statement week, under authority granted at the meeting of the Open Market Policy Conference held in Washington on May 17, amounted to $58,520,000 as follow s: § 5 ,0 00,000 32,520,000 200,000 1 ,0 0 0 ,00 0 2 ,0 0 0 ,0 0 0 1 ,200,000 750,000 15,850,000 - Treasury B ills due Aug. 1 7 , 1932 »» w " « 24, 1932 - 1 1 /8 # c e r tific a te s i » Sept. 15, 1932 tt Oct. 15, 1932 - 3 1 /8 # " n - 3 3 /4 # " Mar. 15, 1933 » May - 2 # " 2 , 1933 w - 3 # Treasury Notes tt 2 , 1934 - 4 1 /4 # 4th Liberty Loan bonds 1933-38 $58,520,000 These purchases were made by the follow ing Federal reserve banks in their re spective markets: Philadelphia §450,000 New York $57,870,000 S t, Louis §200,000 Other transactions consummated in the Account during the week consisted of the Redesg?tion on May 25 of §1 4 ,907,000 maturing Treasury B ills , which were replaced by purchase in the market of 14,907,000 Treasury B ills due August 24, 1932 and the exchange in the market, at advantageous ra te s, of § 500,000 - Treasury B ills due July 13, 1932 1 .0 0 0 .0 0 0 - 2 3 /4 # c e r tific a te s due June 15,1932 a to ta l of $1,500,000 fo r $ 200,000 - 3 1 /4 # Treasury Notes due Dec.15,1952 300,000 - 3 3 /4 # c e r tific a te s n Mar. 15,1®3 1 .0 0 0 .00 0 - 2 # w " May 2,1933 §1 ,5 0 0 ,0 0 0 Reproduced from the Unclassified I Declassified Holdings of the National Archives ~~ d e c l a s s if ie d " Authority >Q • \ b G ^ 1 5 ■The purchase o f $58 ,5 2 0 ,0 0 0 government s e c u r it ie s r e fe r r e d to in the fo r e g o in g statem ent in crea sed the amount o f t o t a l h old in g s in the System Account t o $ 1 ,3 5 4 ,9 8 0 ,0 0 0 . The p a r t ic ip a t io n s by F ederal re se rv e banks and the c l a s s i f i c a t io n o f is su e s h e ld in the A ccount a t the c lo s e o f bu sin ess Wednesday, May 85, 1932, were as f o l l o w s : PARTICIPATIONS BY FEDERAL RESERVE BANKS Boston New York P h ila d e lp h i a C leveland Richmond A tlan ta Chicago St ^ L o u is M in n eap olis Kansas C it y D allas San F ra n cisco | 9 5 ,9 7 8 ,5 0 0 586 ,62 1,500 112 ,73 4,500 148 ,39 6,000 4 7 ,1 3 2 ,5 0 0 41 ,840 ,5 00 16 4 ,17 8,500 4 0 ,5 8 9 ,5 0 0 38,548 ,0 00 4 4 ,7 2 3 ,0 0 0 8 4 ,5 9 6 ,0 0 0 6 9 ,641 ,5 00 RECAP ITCJLATION OF HOLDINGS BY MATURITIES June tt Ju ly n tt Aug. « June Aug. Sept. » O ct. Dec. Feb. Mar. May w June « Oct. T o ta ls | 1 ,3 5 4 ,9 8 0 ,0 0 0 1» 29, 13, 80, 27, 10, 17, 24, 15, 1, 15, 15, 15, 15, 1, 15, 2, 2, 15, 15, 15, 1932-T reasury B i l l s $ n tt 1932» tt 1932» tt 1932tt tt 1932tt tt 1932«t t» 1932it tt 19321932- 2 3 /4 $ C /I 1938- 3 1 /8 fo tt 1932- 1 1 /8 fo tt tt 1932- 3 fo 1932- 3 i / e f o t» 1932- 3 1 /4 fo T/N 1933- 3 3 / 4cfj C /I 1933- 3 ?>/4f0 « tt 1933- 2 fo 1934- 3 fo T/N 1947- 3 l/Sffo 1 s t L/L 1947- 4 1 /4 fo 1 s t » 1938- 4 l/A f o 4th " 50 ,0 8 7 ,0 0 0 3 6 ,5 5 0 ,0 0 0 75 ,0 0 0 ,0 0 0 4 0 ,4 7 5 ,0 0 0 4 3 ,1 5 0 ,0 0 0 16 ,000 ,0 00 5 8 ,7 5 0 ,0 0 0 47 ,427,000 3 9 ,5 5 0 ,0 0 0 5 3 ,9 0 0 ,0 0 0 7 5 ,8 9 3 ,0 0 0 7 7 ,751 ,5 00 8 5 ,1 6 1 ,5 0 0 109 ,17 5,000 9,5 2 5 ,0 0 0 1 2 7 ,82 5,000 88 ,4 5 0 ,0 0 0 5 2 ,700 ,0 00 79,025 ,0 00 8 0 ,2 5 0 ,0 0 0 16 8 ,3 3 5 ,0 0 0 #1*354,980,000 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority Q •\ j N- u 6 ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE B.JKS ________________________ FROM MAY 19 to MAY 25 , 1932, INCLUSIVE______________________________ GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT Net Redemption In crea sc and S ales Purchases $30,574,500 $ 817,000 $ 31,391,500 0 107 f 793,500 40,305,500 4,535,50 0 1 ,368,00 0 5,903,50 0 21,628,500 1 ?799,000 23,427,500 589,500 15,326 ,0 00 15,915,500 20,835,500 21,108,000 272,500 7,461,500 9,446,00 0 1,984,500 2,4 8 7 ,0 0 0 2 ,972,00 0 485,000 13,621,500 13,159,500 462,000 10,000,000 10,434,000 434,000 306,500 0 306,500 0 870,000 870,000 Boston New York P h ila d elp h ia C leveland Richmond A tla n ta Chicago S t . Louis M inneapolis Kansas City D allas San Franc is c o T o ta ls $126,008,000 $117,181,500 £175,701,500 Net Decrease e o 67,488,000 0 0 0 0 0 0 0 0 0 0 $67,488,000 HOLDINGS IN GOVERNMMT SECURITIES - SALES CONTRACTS Net Change From P reviou s Week Kansas City #300,000+ $300,000 OIHSB TRANSACTIONS IN GOVERNMENT SECURITIES - (EXCLUDING SALES CONTRACTS) Redemption Purchases Issu e and S a les Issue New York $12 ,573,000 Aug. 24/32 T r .B i l l s $12,573 ,000 May 25/32 Tr. B i l l s A tlan ta 113,400 M isc. Gov’ t S ec. 134 ,700 M isc. Gov ’ t S e c. »» ♦» M inneapolis 579 ,100 573,550 " " " T o ta ls $13,259,950 $13,286,800 BANKERS ACCEPTANCES (000 Omitted) H oldin gs May 18 B oston $ 0 New York 3 ,682 P h ila . 209 C le v e . 0 Richmond 1 ,100 A tlan ta 358 Chicago 680 S t. Louis 0 Minn. 60 Kan. C ity 386 D allas 133 San Fran. 3 ,201 T o ta ls NOTE: R. #9,809 Purchased Own Mkt. 0 0 0 0 60 R. 0 0 0 0 0 0 161 R. $221 By A l l o t ment from New York 0 0 0 0 0 0 0 0 0 0 0 0 0 M & turities and S ales Held Held in E lse N. Y. where $ 0 # 0 1,162 0 0 104 0 0 0 25 72 0 200 0 0 0 60 0 386 0 7 0 0 475 H oldings May 25 $ 0 2,520 105 0 1 ,1 3 5 286 480 0 0 0 126 2,887 $1,608 $7,539 in d ic a te s R etained in above statem ent. $883 Other H oldings C lose May 25/32 S ales ConOther tra cts B ills $ 2,344 0 10,196 0 0 3,178 3,104 0 1,229 0 0 1,137 4,134 0 1,005 0 632 0 891 0 0 862 2,122 0 0 $30,834 Reproduced from the Unclassified / Declassified Holdings of the National Archives ^ ________. DECLASSIFIED' I Authority 7 MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDED MAY 2 5 , 1952 ^qqq om itted ) 1-30 days 3 1/2% 31-60 days 3 1 /2 lo Over 9 0 -days 61-90 days 2 X/Zfo Tota] Richmond San F ra n cisco $ 0 40 § 0 30 $ 60 101* 0 0 $ 60 161 T o ta ls $40 $20 ---- $161 0 §221 *Purchased a t 3 1 /2 $ RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES PURDIG WEEK ENDED MAY 25, 1952 (000 Om itted) (E xcluding S a les C on tra cts) Government S e c u r it ie s Purchased Sold Matured T o ta ls $ 18 8|962 102,989 27,480 58,493+ Bankers A cceptances T ota l $ 221 0 2,491 § 2 ,2 7 0 0 (Net Change _______ 1 -d ay h o ld o v e r and oth er b i l l s ) $ 2 ,2 7 0 - $189,183 102,989 29,971 $ 56,223+ 0 (Net Change _________ 1-day h old ov er and oth er b i l l s ) $ 56,223+ HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED MAY, 2 5 , 1932 (000 O m itted ) (In c lu d in g S a les C on tra cts) W ithin 15-d a y s Gov’ t S e c u r it ie s §54,800 B i l l s Purchased 6 ,0 5 4 ■ T ota ls $60,854 16-30 days 31-60 days 61-90 days 91 d ays6 months Over 6 months T ota l $39,550 10^092 $152*025 10*095 $187,800 11,892 $313,505 240 $777,516 •$1 ,5 2 5 ,1 9 6 0 58,373 $49,642 $162,120 $199,692 $313,745 $777,516 $1,563., 569 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority ' f c . i M h s a i / (A/. •jfy fa/****#.** *-■* Fe d e r a l R e s e r v e B a n k of N e w Y o r k CONFIDENTIAL May 20, 1932. Dr* E. A. Goldenweiser, Director, Division of *<esearch and Statistics, Federal Reserve Board, Washington, D. C* Dear Dr. Goldenweiser* Enclosed is a report of open market operations for the period from May 12, 1922 to May 18, 1932 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 For C I B C I M m % G o v, Meyer M r. H s m i i n - V M r. lam es . Fe d e r a l R e s e r v e B a n Mr. Magee. Mr. Miller..^ k M AY f m ? Q-prr nrt n r of N e w Y o r k Mr. Pole... Mr. Mr. \ Please note - Initial and Return to Secretary’s Ofc* CONFIDENTIAL May 20, 1932. Dear Governor Meyer: E nclosed i s a r e p o r t o f open market o p e r a tio n s f o r the p e r io d from May 12, 1932 t o May 1 8 , 1932 i n c lu s iv e , to g e th e r with data r e c e iv e d from F ederal r e s e r v e banks. A s s is ta n t Deputy Governor Honorable Eugene Meyer, G overnor, F ed eral i^eserve B oard, Washington, D. C. E n cl. Reproduced from the Unclassified I Declassified Holdings of the National Archives ” r DECLASSIFIED' Authority l£ >D •\ ~~| 0 ( J CONFIDENTIAL REPORT OF OPEN MARKET OPERATIONS FOR WEEK! ENDED MAY 18, 1932 H oldin gs o f Earning A ssets o f F ed eral Reserve Banks from May 20, 1951 to Date (000 O m itted) TOTAL EARNING ASSETS 1 879,186 876,489 947,334 934,795 1 ,1 5 6 ,6 3 6 1 ,5 5 7 ,9 7 0 2 ,1 9 8 ,2 3 8 1 ,9 2 5 ,5 0 9 2 ,1 8 5 ,2 1 6 -1 9 3 1 May 20 * 27 June 24 J u ly 29 Aug. 26 S ep t.3 0 O ct. 28 Nov. 25 Dec. 30 -1&32Jan. 27 Feb. 24 Mar. 30 Apr. 27 May 11 May 18 1,7 8 7 ,9 1 2 1 ,7 2 3 ,8 6 2 1 ,5 7 8 ,1 4 6 1 ,7 7 3 ,7 4 5 1 ,9 0 4 ,4 0 1 1 ,977,01 2 GOVERNMENT SECURITIES O utright S ales C on tracts Purchases $ o $ 598,536 598,368 0 618,503 0 677,977 0 727,998 0 738,455 3,890 726,659 0 727,101 0 38,295 764,933 750,216 740,006 860,056 1 ,191,232 1 ,385,267 1 ,466,403 1,500 550 11,562 0 0 0 BANKERS ACCEPTANCES O utright S ales Purchases C on tracts $ 6,938 |124,069 3,291 121,210 3,226 103,164 62,909 3,627 179,476 1,042 449,022 19,505 723,262 1,418 479,225 573 248,708 78,267 8,590 6,517 4,081 0 0 0 153,671 126,865 62,281 45,874 42,719 40,643 BILLS DISCOUNTED $ 148,876 152,852 197,678 183,036 241,718 327,925 716,680 686,401 1 ,0 2 4 ,1 3 3 837,639 835,243 633,255 531,824 471,373 464,943 CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS) __________________ DURING WEEK ENDSD MAY 18, 1932_______ _________ _ (OOO Om itted) " Boston New York P h ila d e lp h ia Cleveland Richmond A tla n ta Chicago S t. Louis M inneapolis Kansas C ity D ali as San F r a n cis c o N. Y. h old ov ers and oth er b i l l s T o ta ls GOVERNMENT SECURITIES Net Balance Change May 18 $ 0 $ 66,155 719,948 27,790+ 111,605 6,289+ 126,768 8,520+ 31,807 4,057+ 21,139 3,832+ 178,315 10,345+ 3,449+ 38,603 2,451+ 33,015 34,810 4,463+ 34,596 3,043+ 69,642 6,897+ $ 1 ,4 6 6 ,4 0 3 $81,136+ BANKERS ACCEPTANCES Net Balance Change May 18 i ii o 53,682 0 209 0 0 175+ 1,100 75358 680 1990 51460 0 386 191427133 3,201 89430,834 55+ $40,643 $ 2 ,076- BILLS DISCOUNTED Net Balance Change May 18 $ 301+ $ 28,999 98,194 1 ,8 8 3 1 ,2 3 7 59,848 53,701 4 ,7 4 1 1,053+ 2 3 ,6 7 4 63030,341 5 ,3 3 5 27,642 321+ 13,233 12,324 1,768+ 25,651 2 ,6 4 2 137+ 11,381 6,458+ 79,955 $464,943 $ 6 ,4 3 0 - COMMENT ON CHANGES WEEK ENDED MAY 18, 1952 T o ta l earn in g a s s e t s o f the System showed an in crea se o f #72 ,6 1 1 ,0 0 0 f o r the cu rren t statem ent week. The changes by c l a s s i f i c a t i o n c o n s is t e d o f an in cre a se o f $>31,136,000 in o u t r ig h t purchases o f government s e c u r i t i e s and d ecrea ses o f $ 2 ,0 7 6 ,0 0 0 in o u tr ig h t purchases o f bankers a ccep ta n ces and &6,430,000 in b i l l s d isc o u n te d . Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED * Authority 0 •\ \ 2 Money Market The re s e r v e bala n ces o f the New York C it y banks remained sur* plus to the ex ten t o f about $135,0 00,000 u n t i l Wednesday, May 18, when the e x ce ss was in cre a s e d to $17 6 ,0 0 0 ,0 0 0 , as compared w ith $13 9,0 00,000 on the p re ce d in g Wednesday. The r i s e on th is day r e f l e c t e d the d e liv e r y o f the m ajor p a rt o f the week’ s purchases o f Government s e c u r i t i e s f o r the System S p e c ia l Investm ent A ccount. T o ta l s e c u r it y purchases in New York during the statem ent week amounted to $76 ,0 0 0 ,0 0 0 out o f an a g g re gate o f $ 8 1 ,00 0,000 a cq u ired f o r the a ccou n t. For the week as a w h ole, the funds p u t in the New York money market by Federal R eserve s e c u r it y purchases were absorbed in c o n s id e r a b le p a rt by a n et lo s s o f funds in com m ercial, Treasury, and f o r e ig n tr a n s a c tio n s . The la r g e s t s in g le lo s s r e s u lte d from gold o p e r a t io n s , in c lu d in g e x p orts o f $ 2 0 ,0 0 0 ,0 0 0 t o S w itzerla n d , $ 1 1 ,8 0 0 ,0 0 0 to H ollan d , $ 6 ,2 0 0 ,0 0 0 t o France, and $ 4 ,2 0 0 ,0 0 0 to Belgium , and a n et in c r e a s e o f $ 3 ,600 ,0 00 in earmarked h old in g s f o r fo r e ig n accou n t, which c o n s id e r a b ly exceeded the amount o f g o ld im ported and reduced fu r th e r the m onetary gold stock o f t h is cou n try by $ 4 1 ,0 0 0 ,0 0 0 . Treasury t r a n s a c tio n s o f the p e r io d took a sm a ller amount from th is market than in o th e r recen t weeks sin ce the Treasury used part o f the funds r e a liz e d from w ithdraw als from d e p o s it a r ie s and from the sa le o f new Treasury b i l l s to buy s e c u r it ie s in t h is market f o r the Cumulative Sinking Fund in a d d itio n to i t s usual disbursem ents f o r T reasury b i l l m a tu r itie s and o th e r payments. At the same tim e, the market th is week l o s t funds due to an ex ce s s o f w ith drawals o f cu rren cy and c o in over deposit?? at the Reserve Bank. The g o ld , Treasury, and cu rren cy lo s s e s were s u b s t a n t ia lly la r g e r than a moderate n et balance in fa v o r o f th is market through the movement o f commercial and banking fu n d s. Government Security Market In some d iv is io n s o f the New York money market r a t e s became s l i g h t l y e a s ie r during the p ast week. F ive and s i x month time loa n s a g a in st s e c u r it ie s were reduced to a f l a t nominal q u o ta tio n o f 1 l / 2 p er c e n t, the same as f o r s h o r te r m a t u r it ie s , and open market commercial paper r a te s showed an e a s ie r tendency in that some d e a le r s re p o rte d t h e ir o f f e r i n g range f o r prim e paper as 2 3 /4 - 3 p er c e n t, as ag a in st 3 - 3 1 /4 per cen t fo rm e r ly . Y ie ld s on sh ort-term Government s e c u r i t i e s d e c lin e d an a d d itio n a l 1 /4 p er c e n t , w hile b i l l , c a l l lo a n , and fe d e r a l funds ra tes continued a t the low le v e l s p r e v io u s ly c u r re n t. The market f o r lon g -term government is su e s was v e r y weak dur ing the e n t ir e week, r e f l e c t i n g d is c u s s io n s in Washington o f a d d it io n a l bond is s u e s . O ffe r in g s were lig h t and there was p r a c t i c a l l y no demand a sid e from the su pport giv en by purchases o f 3 3 /8 $ Treasury bonds f o r account o f the Sinking Fund. P r ic e s o f a l l issu e s o f Treasury bonds f e l l o f f sh a rp ly , dropping from 1 .1 0 /3 2 to 2 *2 6 /3 2 . The L ib e r t y Loan bonds, however, showed r e c e s s io n s o f on ly 5/32 to 13/32 from the p reviou s w eek 's p r ic e s . The market f o r s h o rt-te rm is s u e s , on the o th e r hand, was q u ite stron g and p r i c e s advanced sh a rp ly. At the c lo s e o f the cu rren t r e p o r tin g p eriod the average y ie ld on the s h o rt-te rm is s u e s , a t d ea lers* o f f e r i n g p r ic e s , was 0 .3 8 $ as compared w ith 0 ,6 5 $ a t the c lo s e o f the p re v io u s p e r io d , and the average s e llin g p r ic e o f the L ib e r t y Loan bonds was 101,34 and o f the Treasury bonds 97.32 as compared with the p rev iou s w eek 's c lo s in g p r ic e s o f 101.61 and 99 .1 8 r e s p e c t iv e ly . ,duced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority 3 D e a le r s 1 O ffe r in g P r ic e s a t the C ose o f the Current Statement Week and Net Ghc.nges from th e Close o f the P reviou s Statement Week Approx, Net Y ie ld Change P r ic e Issue _ _ _ _ - — 2 3 /4 $ C ert, o f In d. due June 15, 1932 it ti - - tt tl 100 20/32 Aug. u 1 /8 $ 1 . 1932 tt tt tf ft 0 .0 5 $ + 3/3 2 100 11/32 Sept „ 1 5 , 1932 1 1 /8 $ tf tl ft tt ti + 1/32 10Q 30/32 3 0 .0 7 $ 15 , 1932 $ tt ff tl ti 0 .1 9 $ + 2 /3 2 3 1 /8 $ 15, 1932 O ct. 101 6/32 0 .4 5 $ 3 1 /4 $ Treasury Notes tt Dec. 15, 1932 101 19/32 + 4 /3 2 0 .7 4 $ 3 3 /4 $ C ert, o f In d . ti Feb. 102 3/3 2 + 1 /3 2 1, 1933 tt tt tt 3 3 /4 $ ti + 3/32 0 .9 8 $ Mar. 15, 1933 102 8 /3 2 ti ti ti tt 100 27/32 + 8 /3 2 1.1 0 $ 2 May 2 , 1933 $ 2 .0 3 $ 3 101 27/32 +10/32 " 2, 1934 $ Treasury N otes " Trea sury B i l l s , a l l m aturit Les from May 25 to Aug. 17, 1932 0.40< i d isco u n t b id , 0 .1 5 $ asked C lo sin g P r ic e s on the New York Stock Exchange at the C lose o f the Current Statement Week and Net Changes from C lose o f the P rev iou s Statement Week Net Net Issue P r ic e P r ic e Change Change Issue 1 st 3 l / 2 s 100 1 4/32 - 8 /3 2 T reas. 4 1 / 4s 1947-52 104 10/32 -1 .1 0 /3 2 ti 1944-54 101 1 /3 2 -1 .1 1 /3 2 1st 4 l / 4 s 101 15/32 - 5/3 2 4s ti 4th 4 l / 4 s 102 4 /3 2 -1 3 /3 2 98 29/32 -1 .1 6 /3 2 3 3 /4 s 1346-56 tt 3 3 / 8s 1943-47 97 4 /3 2 -1 .2 7 /3 2 ti 97 18/32 -1 .1 3 /3 2 3 3 /8 s 1940-43 tt 3 3 /8 s 1941-43 97 - 1 .3 1 /3 2 tt 3 1 / 8s 1946-49 92 4 /3 2 - 2 .2 2 /3 2 ti 90 16/32 - 2 .2 6 /3 2 os 1951-55 Bankers D e a le r s ’ o f f e r in g s o f unendorsed bankers a ccep ta n ces con tin u ed A ccep tan ces at the fo llo w in g r a te s during the cu rren t statem ent week: 7 /8 p er cent f o r 3 0 s, 60s and 9 0 s, 1 per cen t fo r 120s and 1 1 /4 per cent f o r 180-day b ills . R ep orts week ending May 18 Boston re p o rte d that w h ile the supply o f b i l l s continued sm a ll, the l o c a l demand showed a good improvement during the p^st p e r io d . N inety day b i l l s were in b est demand. In New York the b i l l market con tin u ed very in a c t iv e during the past week. D e a le r s 1 purchases ex ceeded s a le s s l i g h t l y and t h e ir aggregate p o r t f o l i o s in crea sed by about $ 4 ,0 0 0 ,0 0 0 to $ 1 8 ,5 0 0 ,0 0 0 . Rates unchanged. P h ila d e lp h ia r e p o rte d that i t s accep ta n ce market remained very in a c t iv e . A s l i g h t in cre a se was n o t ic e d i n ' the su p ply o f new b i l l s , but the demand was on ly f a i r . Chicago re p o rte d th a t the market f o r b i l l s in i t s d i s t r i c t continued very d u ll. D a lla s r e p o rte d that the demand f o r b i l l s was sm all and no o f f e r i n g s were made t o the r e se r v e bank. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' f Authority >D • \ | 0 1 | 4 OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY T ran saction s consummated under Treasury a u th o r iz a tio n s during the cu rren t statem ent week c o n s is te d o f Purchases o f $ 1 ,6 4 5 ,0 0 0 - T reasury Bonds 1940-43, account Sinking Fund 1 5 ,0 3 4 ,0 0 0 " ” 1941-43, " " 8 ,3 2 1 ,0 0 0 ” M 1943-47, " " " $25,000,000 and s a le ©f $300,000 Fourth 4 l/4 % L ib e r t y Loan bonds, account A lien P ro p e rty C ustodian. SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES Purchases o f U nited S ta tes Government s e c u r i t i e s made f o r the System Account during the curren t statem ent week, under a u th o r ity granted at the meeting o f the Open Market P o lic y C onference h eld in ?/ashington on A p r il 12, amounted to $ 8 1 ,1 3 9 ,0 0 0 , as f o llo w s : $ 1 ,0 0 0 ,0 0 0 3 7 ,639 ,0 00 1 ,5 0 0 ,0 0 0 5 ,7 5 0 ,0 0 0 1 1 ,0 5 0 ,0 0 0 11,700 ,0 00 12 ,5 0 0 ,0 0 0 - Aug. 1 0 , 1932 *t w 17, 1932 n c e r tific a te s Feb. 1, 1933 tt w Mar. 15, 1933 « May 2, 1933 tt Treasury n otes ft 2, 1934 Fourth L ib e r ty Loan bonds 1933-38 Treasury B i l l s ii »t 3 3/4% 3 3/4% 2 % 3 % 4 1/4% $81 ,13 9,000 These purchases were made by the fo llo w in g F ederal re se rv e banks in th e ir r e s p e c t iv e m arkets: P h ila d e lp h ia $ 1 ,0 0 0 ,0 0 0 . New York $75,639,000* Chicago $ 4 ,5 0 0 ,0 0 0 . Other tr a n s a c tio n s consummated in the Account lu r in g the week c o n s is te d o f th© Redemption on May 18 o f $ 1 6 ,11 1,000 m aturing Treasury b i l l s , which were re p la ce d by purchase in the market of 16 ,1 1 1 ,0 0 0 T reasury b i l l s m aturing August 17, 1932 and the exchange in the m arket, at advantageous r a te s o f $ 2 ,0 0 0 ,0 0 0 - 2 3/4% c e r t i f i c a t e s due June 15,1932 fo r 2 , 0 0 0 , 0 0 0 - 1 1/8% " " S e p t .15,1932 Reproduced from the Unclassified I Declassified Holdings of the National Archives _ f DECLASSIFIED' Authority ^ >0 • \ b G 0 j 5 The purchase o f $8 1 ,1 3 9 ,0 0 0 government s e c u r i t i e s r e fe r r e d to in the fo r e g o in g statem ent in crea sed the amount o f t o t a l h o ld in g s in the Account to $ 1 ,2 9 6 ,4 6 0 ,0 0 0 . The p a r t ic ip a t io n s by F ederal re se rv e banks and the c l a s s i f i c a t io n o f is s u e s h e ld in the Account at the c lo s e o f b u sin ess Wednesday, May 18, 1932, were as f o llo w s : PARTICIPATIONS BY FEDERAL RESERVE THANKS Boston New York P h ila d e lp h ia C leveland Richmond A tla n ta Chicago S t. L ou is M inneapolis Kansas C ity D allas San F ra n cisco T o ta ls # 65,404,000 594,109,500 108 ,19 9,000 126 ,76 7,500 31 ,8 0 6 ,5 0 0 21,005 ,0 00 156 ,71 7,000 38 ,1 0 2 ,5 0 0 2 5 ,388 ,5 00 34 ,723 ,0 00 24,596 ,0 00 69,641,500 # 1 ,2 9 6 ,4 6 0 ,0 0 0 RECAPITULATION OF HOLDINGS BY MATURITIES May S5, 1932-T reasu ry B i l l s $ tt tt June 1, 1932tt tt tt 29, 1932tt tt Ju ly 13, 1 9 3 2 tt tt 20, 1932tt ft tt 27, 1932tt tt Aug. 10, 1932tt tt tt 193217, June 15, 1932- 2 3 /4 $ C /I Aug. 1, 1932- 3 1 /8 $ tt tt Sept. 15, 1932- 1 i / s $ tt tt 15, 1932- 3 $ Oct. 15, 1932- 3 1 /8 $ tt Dec. 15, 1932- 3 1 /4 $ T/N Feb. 1, 1933- 3 3 /4 $ C /I Mar. 15, 1933- 3 3 /4 $ tt 2 , 1933- 2 May 1o tt tt 2, 1934- 3 $ T/N June 15, 1947- 3 1 /2 $ 1 s t L/L tt 15, 1947- 4 1 /4 $ 1 s t ” O ct. 15, 1938- 4 1 /4 $ 4th " 14 ,9 0 7 ,0 0 0 50,087,000 3 6 ,5 5 0 ,0 0 0 75,500 ,0 00 40,475,000 4 3 ,1 5 0 ,0 0 0 16 ,000 ,0 00 5 3 ,7 5 0 ,0 0 0 40 ,550 ,0 00 53 ,900 ,0 00 7 5 ,6 9 3 ,0 0 0 77 ,751 ,5 00 8 4 ,1 6 1 ,50C 108 ,97 5,000 9 ,5 2 5 ,0 0 0 125 ,52 5,000 8 6 ,2 5 0 ,0 0 0 51,950 ,0 00 79 ,025 ,0 00 2 0 ,250 ,0 00 152 ,48 5,000 # 1 ,2 9 6 ,4 6 0 ,00C Reproduced from the Unclassified I Declassified Holdings of the National Archives ~~ DECLASSIFIED * Authority 1^- >Q • \ r ^ | 6 ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS _________________________ FROM MAY 12 TO MAY 16, 1952, INCLUSIVE_____________________________ GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT Redenpt ion Net In crease Purchases and S a les Bost on § 961,500 $ 96.1,500 0 o New York 12<908,000 40 ?698 <000 27,790*000 P h ila d e lp h ia 6 ,2 8 9 ;000 1 ,5 1 7 ,0 0 0 7 ,805 jOOO C levelan d 8 j 519 - 500 1 ,7 6 4 ,0 0 0 1 0 s233j 500 4 ,057 ?000 R ichmond 4,477 500 420,500 A tla n ta 3 ,8 5 4 ,0 0 0 4 : 118 r000 264,000 1 0 , 3 4 5 ;. 0 0 0 Chicago 1 2 s 5 2 8 j 000 2 * 1 8 3 , 0 0 0 S t. Louis 3 , 4 4 8 , 0 0 0 5 : 9 6 8 . 0 0 C 5 2 0 , 0 0 0 M inneapolis 2 r 7 7 9 . 000 3 4 5 , 0 0 0 2 , 4 3 4 , 0 0 0 Kansas C ity 4 , 4 6 3 : 000 4 , 9 2 1 . 5 0 0 4 5 8 , 5 0 0 D a lla s 3 , 0 4 5 , 0 0 0 3 ,3 6 9 r000 3 2 6 , 0 0 0 6 , 8 9 6 , 5 0 0 San F ra n cis co 7,840 ^000 9 4 3 , 5 0 0 T o ta ls - $ 8 1 , 1 5 9 , 0 0 0 $ 2 2 r 6 1 1 s0 0 0 | ? 1 0 3 : 7 5 0 ; 0 0 0 HOLDINGS IN GOVERNMENT SECURITIES - SALES CONTRACTS Net Change From Prcv ious Week NONE OTHER TRANSACTIONS IN GOVERNMENT SECURITIES Purchases New York A tlan ta M inneapolis T o ta ls $ 1 0 , 0 0 0 , 0 0 0 2 3 8 ?0 0 0 6 8 2 - 5 5 0 NOTE: $ 1 0 ^ 1 0 , 9 2 0 , 5 5 0 H oldin gs May 11 Boston $ 1 New York 5,687 P h ila . 209 C lev e. 0 R ichmond 925 A tla n ta 455 879 Chicago S t. Louis 514 Minn. 60 Kan, C ity 577 D a lla s 560 San Fran. 4,095 T o ta ls Issue Aug. 1 7 / 3 2 T r. Bi l l s M isc. G o v 't Sec* n " " $11,940 Purchased Own Mkt. V 0 0 0 0 425 R. 0 0 0 0 0 0 100 R. $525 ,924, BANKERS ACCEPTANCES (000 Omitted) M a tu r itie s and S a le s Held Held By A l l o t ment from in Else— New York whe re N.Y • & 1 0 v 0 V 1 5 0 0 0 0 0 0 0 0 250 0 0 75 0 0 199 0 0 514 0 0 0 0 0 191 0 0 0 427 0 994 0 0 0 §1,157 R. in d ic a t e s R etained in above statement* (EXCLUDING SALES CONTRACTS) Redemption Issue and S a les May 18/52 Tr. Bi. $ 1 0 , 0 0 0 , 0 0 0 259, 6 5 0 M isc. G o v 't S ec. tt tt n 6 6 5 ,0 5 0 $1,519 7 0 0 Other H oldin gs Close May 18/52 S a les Other Hold ings Con tra cts B ills May 18 $ 0 0 $ 2,546 10,196 5,682 0 209 5,178 0 5,1 04 0 0 1,229 0 1,100 1,157 558 0 4 ,154 0 680 1,005 0 0 652 60 0 891 586 0 861 155 0 2,121 5,201 0 $9,809 0 $50 ,854 Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED ' Authority 0 • 1 MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDED MAY 18, 1932 (000 Omitted) 1-30 days 31-60 days 2 1/2% Richmond San Franc is c o T o ta ls Over 9 0 -days 61-90 days T ota ls 025 0 0400 sp25 0500 0425 100 100 * $525 *Purchased a t 3 1 /2 # RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECITRITIES AND BANKERS ACCEPTANCES DURING 1/EBK ENDED MAY 1 8 , 1932 (000 Omitted) (E xclu d in g S a les C on tra cts) Government S e c u r it ie s Purchased S old Matured T otaIs 0114,670 7,423 26,111 v 81,136+ Bankers Accep tances To t a l 0 525 0 2,656 v)2,131— 55+ (Net Change one-day h old over and oth er b i l l s ) y 2 ,0 7 6 - 0115,195 7,423 28,767 0 79,005+ 55+ (Net Change one-day h old ov er and o th e r b i l l s ) 0 79,060+ HOLDINGS OF GOVERNMENT SECURITIES AND BANKT3RS ACCEPTANCES WEEK ENDED MAY 10, 19Z2 (000 Om itted) (In c lu d in g S a les C on tra cts) Gov’ t S e c u r it ie s B i l l s Purchased T o ta ls W ithin 15-days 16-30 days 31-60 days 61-90 days 91 days6 months Over 6 months 081,980 8 ,042 0^0,550 7,600 0112,050 12,830 0159,525 11,931 0316,060 240 0756,238 01>466,403 0_________ 40,643 090,022 v48,150 0124,880 0171,456 0316,300 0756,238 01>507,046 T ota ls Reproduced from the Unclassified I Declassified Holdings of the National Archives “ .r*- " DECLASSIFIED * Authority £ , 0 Fe d e r a l R e s e r v e B a - | | n k ip of N e w Y o r k ' CONFIDENTIAL May 15, 1952. 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 May 5, 1952 to May 11, 1952 inclusive, together with data received from Federal reserve banks. Vezy truly yours, W. B. Matteson Assistant -Deputy Governor Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED' . Authority f c . p . \ t e a i | | Dear Governor Moyer: Enclosed is a report of open market operations for the period from May 5, 1952 to May 11, 1932 inclusive, together with data received from Federal Reserve banks. Very truly yours, W. B. Matteson 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 MAY 11., 1932 H oldin gs o t Earning A ssess o f F ederal Reserve Banks from May 13, 1951 t o Date ( qqq ( f i t t e d ) TOTAL EARNING ASSETS $ 897,544 876,489 947,334 934,795 1 ,1 5 6 ,6 3 6 1 ,5 5 7 ,9 7 0 2 ,1 9 8 ,2 3 8 1,9 2 5 ,5 0 9 2", 185,216 -1 9 3 1 May 13 " 2? June 24 J u ly 29 Aug. 26 S e p t .30 Oct. 28 Nov. 25 Dec, 30 -1 9 3 2 Jan. 27 Feb. 24 Ma£. 30 Apr. 27 ' May 4 " 11 1,7 8 7 ,9 1 2 1 ,7 2 3 ,8 6 2 1 ,5 7 8 ,1 4 6 1 ,7 7 3 ,7 4 5 1 ,8 4 2 ,1 3 3 1,9 0 4 ,4 0 1 GOVERNMENT SECURITIES O utright S a les C on tracts Purchases $ ’ o $ 598,414 598,368 0 0 618,503 677,977 0 727,998 0 3y890 738,455 726,659 0 727,101 0 38,295 764,933 750,216 740,006 860,056 1 ,1 9 1 ,2 3 2 1,2 8 6 ,8 8 1 J , 385,267 1,500 550 11,562 0 0 0 BANKERS ACCEPTANCES O utright S ales Purchases , C on tracts $142,269 $10,839 121,210 3,291 3,226 103,164 62,909 3,627 1,042 179,476 449,022 19,505 1 ,418 723,262 573 479,225 248,708 78,267 153,671 126,865 62,281 45,874 44,522 42,719 BILLS DISCOUNTED $ 144,904 152,852 197,678 183,036 241,718 327,925 716,680 686,401 1 ,0 2 4 ,1 3 3 837,639 835,243 633,255 531,824 505,801 471,373 8,590 6,517 4,081 0 0 0 CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS) __________________ DURING WEEK ENDED MAY 11, 1932_____________________ ^ (000 Omitted) Boston New York P h ila d e lp h ia C leveland Richmond A tla n ta Chicago S t, Louis M inneapolis Kansas C ity D allas San F ra n cisco N. Y. h o ld o v e rs and o th e r b i l l s T o ta ls GOVERNMENT SECURITIES Net Balance May 11^ Change $ 0 $ 66,155 692,158 33,692+ 105,316 7,624+ 118,248 » 10,328+ 27,750 4,919+ 17,307 4,683+ 167,970 12,543+ 4,180+ 35,154 2,956+ 30,564 30,347 5,411+ 3,689+ 31,553 8,361+ 62,745 $1,385,267 $98,336+ BANKERS ACCEPTANCES Net Balance Change May 11 $ 3* i 373,687 0 209 0 0 25925 433 602 49879 514 0 60 139577 0 560 133634 ,0 9 5 30,779 572- $42,719 $ 1 ,8 0 3 - BIILq DISCOUNTED Net Baiance Change May 11 $ 2 ,9 3 4 $ 28,698 100,077 4 ,1 5 5 68961,085 4 ,7 5 7 58,442 1 ,1 2 1 22,621 30,971 1,011+ 32,977 5 ,3 8 6 1 ,2 2 6 12,912 102+ 10,556 1 ,4 4 4 28,293 11,244 92+ 73,497 1 3 ,9 2 1 - $471,373 $ 3 4 ,4 2 8 - COMMENT ON CHANGES WEEK ENDED MAY 11, 1932 T o ta l earning a s s e t s o f the System showed an in crea se o f $62 ,26 8,000 f o r the cu rren t statem ent week. The changes by c l a s s i f i c a t i o n c o n s is te d o f an in crea se o f $98 ,38 6,000 in o u t r ig h t purchases o f government s e c u r i t i e s and d ecrea ses o f $ 1 ,8 0 3 ,0 0 0 in o u t r ig h t purchases o f bankers a ccep ta n ces and $34 ,42 8,000 in b i l l s d isco u n te d . Reproduced from the Unclassified I Declassified Holdings of the National Archives ” r Money Market G-overnment Secur ity Market DECLASSIFIED' Authority Q - \ ^ | Further purchases o f $82,000,000 o f U nited S ta tes Government s e c u r it ie s were made during the past statem ent week in the New York mar k et fo r the System S p e c ia l Investment Account out o f a t o t a l o f $98,000*000 a cq u ire d f o r the A ccou n t, The purchases in Ifew York were large3y absorbed by l o s s e s o f funds to the market in oth er tr a n s a c tio n s and by a fu r th e r in cre a s e in the reserv e requirem ent fig u r e s o f the New York C ity banks, so that at the c lo s e o f the week e x ce s s bank r e s e r v e s amounted to $ 1 3 9 ,0 0 0 ,0 0 0 , as compared w ith $143,000,000 on the p re v io u s Wednesday. The p r in c ip a l l o s s o f funds to the New York market during t h is p e r io d was through Treasury t r a n s a c tio n s and rep resen ted an ex cess o f w ithdraw als from G-overnment d e p o s it a r ie s in t h is d i s t r i c t and s a le s o f new Treasury b i l l s over Treasury b i l l m a tu r itie s and oth er disbursem ents h ere. I t appears that t h is net withdrawal o f funds from the New York market t h is week was not im m ediately d isb u rsed in oth er d i s t r i c t s by the T reasury, s in c e Treasury b a la n ces m aintained at a l l Reserve Banks r o se from the sm all fig u r e o f $13 ,00 0,000 on May 4 to $51,000,000 on May 11. There was a ls o a l o s s o f $33 ,00 0,000 to the New York market as the n et r e s u lt o f g o ld e x p o r t, im port, and earmarking t r a n s a c t io n s „ This g o ld lo s s r e f l e c t e d p rin c ip a lly e x p o rts to H ollan d , S w itz e rla n d f. F rance, and Belgium , some o f the g o ld b ein g taken from sto ck s p r e v io u s ly earmarked* At the same tim e, the balan ce between New Y ork and oth er p a rts o f the co u n try , in c lu d in g s e ttle m e n ts fo r ban king, com m ercial, and s e c u r it y t r a n s fe r s , was somewhat a g a in s t the New York m arket. The o n ly o f f s e t s t o th ese lo s s e s were a n et retu rn o f ou tstan d in g cu rren cy to the R eserve Bank and a gain- in m isce lla n e o u s com mercial and agency tr a n s a c tio n s * Further ea sin g o f nominal q u o ta tio n s f o r s to c k exchange time lo a n s occu rred during the p ast week. The ra te f o r 2 to 4 month loan s was reduced to 1 1 /2 p er cen t f l a t , and b id and asked r a te s f o r 5 and 6 month money to 1 1 /2 - 1 3 /4 p er c e n t. E arly in the week some 4 month money loan ed a t 2 p er c e n t , and more r e c e n t ly a s u b s ta n tia l b lo c k o f September 1 money went at 1 1 /2 p er c e n t . On the 1 1th , b i l l r a te s were reduced 1 /4 per cen t to the q u ota tion s in e f f e c t b e fo r e the 1 /4 per cen t r i s e o f Iway 5 , and the p r e v a ilin g range f o r open market com m ercial paper became e s ta b lis h e d a t 3 - 3 1 /4 per c e n t , or about 1 /4 per cen t below the p re v io u s l e v e l . Y ie ld s on sh ort term U nited S ta te s Government s e c u r i t i e s , m eanwhile, showed an average drop o f ap p roxim ately 1 /4 per c e n t . The o f f i c i a l S tock Exchange r a te f o r c a l l loan s a g a in st s e c u r i t i e s remained at 2 1 /2 p er c e n t , w ith ’’o u ts id e m arket” loan s bein g a r ranged g e n e r a lly at 1 1 /2 p er c e n t. The market f o r U nited S ta te s Government s e c u r i t i e s , which had turned weak during the l a t t e r p a rt o f the p rev iou s statem ent week, im proved s lo w ly as the cu rre n t p e r io d p r o g r e s s e d , d evelop in g in to a stron g market during the l a t t e r p a rt o f the wrek, e s p e c ia lly f o r the sh ort-term is s u e s . This improvement was p rob a b ly a s s is t e d by the r e d u c tio n in in t e r e s t r a t e s allow ed by C lea rin g House banks on d e p o s it s , and the r e d u ctio n in b i l l r a t e s . P r ic e s advanced f o r the week from 1 /3 2 t o 19/32 f o r the sh ort-term is su e s and from 14/32 to 2 .6 /3 2 f o r the bonds. At the c lo s e o f the cu rren t r e p o r tin g p e r io d the average y i e l d on the s h o r t term is su e s at d e a le r s ’ o f f e r i n g p r ic e s was about 0.65% as compared with 0.79% a t the c lo s e o f the p rev iou s p e r io d , and the average s e l l i n g p r ic e o f the L ib e r ty Loan bonds was 101*61 and o f the Treasury bonds 99.18 as compared with the p rev iou s week’ s average c lo s in g p r ic e o f 101*04 and 97.70 r e s p e c t iv e ly * Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED' Authority ^ t Q • \b G ^ r | \ j 15 2 3 1 3 3 3 3 2 3 D e a le rs 1 O ffe r in g P r ic e s at the C lose o f the Current Statement Week and _________ Net Changes from the Close o f the P rev iou s Statement Week_______ Net Approx Y ie ld Change Issue P r ic e _ - - - 100 9 /32 3 /4 # G ert. o f Ind. due June 15, 1932 tt tt t» tt Aug. 1 /3 2 0 .2 7 # 100 20/32 1 /8 # 1, 1932 tt ti tf « S ep t, 15, 1932 0 .3 8 # + 3/32 100 8 /3 2 1 /8 # tt tt tt tf w 0 .3 2 # + 1 /3 2 100 29/32 1 5 , 1932 ''-a it tt n tf Oct* 1 5 , 1932 0 .4 6 # + 1 /3 2 101 4 /3 2 1 /8 # 0 .7 5 # 101 15/32 ♦ 4 /3 2 1 /4 # Treasury Notes w D ec. 15, 1932 0 .8 6 # + 3 /3 2 102 2 /3 2 3 /4 # C ert. o f Ind. " Feb. 1933 1, tf tf t» tt Mar, 15, 1933 + 6/3 2 1.16 V 102 5/3 2 3 /4 # tt tt tf tt May 1 .3 8 # + 9/3 2 1933 100 1 9/32 2, ft tt + 19/32 1934 101 17/32 2 .20# Treasury N otes M 1o 2, Treasury B i l l s j a l l m a tu r itie s May 18 to Aug, 10, 1932 0*65# d iscou n t b id , 0 .4 0 # asked - C losin g P r ic e s on the New York Stock Exchange at the C lose o f the Current Statement Week and Net Changes from C lose o f the P rev iou s Statement Week 1,1 1 Net P r ic e Issue P r ic e Change Issue 1 st 3 1/2S 100 22/32 +14/32 Treasury 4 l / 4 s 1947-52 105 20/32 1944-54 102 12/32 1 st 4 l / 4 s 101 20/32 +24/32 " 4s " 3 3 /4 s 1946-56 100 13/32 4th 4 1 / 4s 102 17/32 +17/32 98 31/32 M 3 3 /8 s 1943-47 98 31/32 " 3 3 /8 s 1940-43 98 31/32 ” 3 3 /8 s 1941-43 94 26/32 " 3 l / 8 s 1946-49 93 10/32 1951-55 " 3s ..................... * Bankers A ccep tan ces R ep orts week ending May 11 ■' ...... ............................................... — ■■■-' ....... ............................. .............................. ■» . ........I. ............................................... + + + + + + + + Net Change 1 , 2 /5 2 22/32 2 3 /3 ? 1 ,3 1 /3 2 1 .3 1 /3 2 1 .3 1 /3 2 2 , 6/32 1 .1 0 /3 2 D e a le r s ’ o f f e r i n g s o f unendorsed bankers a ccep ta n ces were a t the fo llo w in g r a te s at the c lo s e o f the cu rren t statem ent week: 7 /8 per c e n t f o r 3 0s, 60s and 9 0 s , 1 per cen t fo r 120s and 1 1 /4 p er cen t f o r 1 8 0 -day b i l l s . B oston r e p o rte d that both the supply and cemand f o r b i l l s in i t s d i s t r i c t d ecrea sed somewhat during the p ast p e r io d . During the f i r s t p a rt o f the p e r io d , d e a le r s in crea sed t h e ir r a t e s 1 /4 o f 1 per cent on a l l m a tu r itie s but were o b lig e d l a t e r in the p e r io d to retu rn to t h e ir p re v io u s r a t e s o f 1 p er c e n t b id , 7 /8 p er cen t asked fo r 90-day b i l l s . ^•n New York the b i l l market was extrem ely d u ll t h is week. At the c lo s e o f bu sin ess May 5 , d e a le r s , whose p o r t f o l i o s had in crea sed $8,000 ,0 00 la s t week, from §1 2 ,0 0 0 ,0 0 0 to $ 2 0 ,0 0 0 ,0 0 0 , in crea sed t h e ir r a te s 1 /4 p er ce n t on a l l m a t u r it ie s . This in cre a s e in r a t e s r e s u lte d in a s l i g h t l y b e t t e r f o r e ig n demand and aggregate p o r t f o l i o s d e c lin e d again to approxim ately $ 1 5 ,0 0 0 ,0 0 0 . F ollow in g the C lea rin g House a c t io n r e ducing in t e r e s t on most demand d e p o s its to 1 /2 o f 1 per c e n t , b i l l d e a le r s reduced t h e i r r a t e s on May 11 by 1 /4 per cen t b r in g in g them back to the l e v e l s which p r e v a ile d from A p r il 21 to May 5 , i , e . , 1 per cent b id f o r unendorsed b i l l s maturing up to 90 days, 7 /8 asked; 4 months 1 1 /8 b id , 1 per cen t asked; 5 and 6 months 1 3 /8 b id , 1 1 /4 asked . Indorsed b i l l s 1 /8 l e s s , p h ila d e lp h ia re p o rte d that i t s a c c e p t ance market was le s s a c t i v e . The demand f o r b i l l s slacken ed and was very l i g h t f o r the f i r s t p a rt o f the week but improved in the la s t h a l f , t h is cau sin g d e a le r s to low er t h e ir r a t e s 1 /4 o f 1 p er c e n t , thereby r e s t o r in g them to t h e ir form er le v e l* 'lhe supply was small and p o r t f o l i o s were fu r th e r d e p le te d , Chicago re p o rte d th a t th ere was p r a c t i c a l l y no supply o f b i l l s a v a ila b le in i t s m arket, D a lla s re p o rte d that th ere was p r a c t i c a l l y no demand f o r b i l l s and o f f e r i n g s to the r e se r v e bank were n e g lig ib le * Reproduced from the Unclassified / Declassified Holdings of the National Archives ” r \ DECLASSIFIED * Authority >0 • \ 0 | | 4 OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY Transactions consummated under Treasury authorization during the cur rent statement week were as follow s: Sale of $ and purchases of 184,800 - Fourth 4 1 /4 $ Liberty Loan bonds, account Demobilized M ilitary Organisations 370,000 - Treasury Bonds 1940-43, account Sinking Fund 4,9 9 6 ,00 0 ” " 1941-43, " ” " 4,424»000 - " " 1943-47, " " " #9,790,000 SYSTEM SPECIAL INVESTMENT ACCOUNT - GOIIVER.N MEN T SECURITIES 1 ............"I I. — I.,-.. ..... — .........1. ........................ ■ ............. 1 Purchases o f short-term government se cu ritie s made diring the current statement week, under authority granted at the meeting o f the Open Market P olicy -Conference held in Washington on A pril 12, amounted to $98,375,000 as follow s: $ 1 ,0 00,000 750,000 5,7 8 0 ,00 0 8,5 0 0 ,00 0 2 ,7 5 0 ,00 0 14,000,000 31,595,000 34,000,000 - 1 3 3 3 3 3 2 3 1 /8 f0 c e r tific a te s due Sept, 15, tt tt n 15, tt w Oct. 15, l /B * 1/496 Treasury notes tt Dec. 15, tt Feb. 3/4 f. c e r tific a te s 1, « Mar. 15, n 3 / 4 / o tt tt May 2, % tt Treasury notes 2, 1° 1932 1932 1932 1932 1933 1933 1933 1934 $98,375,000 These purchases were made by the following reserve banks in their respective markets: Boston New York $ 530,000 8 2 ,395,000 Philadelphia Chicago $ 700,000 14,750,000 Other transactions affected in the holdings during the week consisted of the Redemption on May 11 of $18,355,000 maturing Treasury b i l l s , which were replaced by purchase in the market o f $ 1 ,0 00,000 Treasury b i lls maturing June 1, 1932 15,000,000 n « Aug. io , 1932 2 ,3 5 5 r000- 2$ c e r tific a te s due May 2, 1933 $18,355,000 and the exchange in the market, at advantageous rates o f $ 2 ,0 0 0 ,0 0 0 - 2 3 /4 $ c e r tific a te s due June 15, 1932 for 2 ,0 0 0 ,0 0 0 - 3 3 /4 $ " n Mar. 15, 1933 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority Q • \b G O \ The purchase o f $ 9 8 ,37 5,000 sh o rt-te rm government s e c u r i t i e s r e fe r r e d to in the fo r e g o in g statem ent, in creased the amount o f t o t a l h old in g s in the Account to $ 1 ,2 1 5 ,3 2 1 ,0 0 0 , The p a r t ic ip a t io n s by F ederal re se rv e banks and the c l a s s i f i c a t i o n o f is s u e s held in the Account at the c lo s e o f bu siness Wednesday, May 11, 1932, were as f o llo w s : PARTICIPATIONS BY FEDERAL RESERVE BANKS Boston New York P h ila d e lp h ia C leveland Richmond A tla n ta Chicago S t , L ou is M inneapolis Kansas C ity D allas San F ra n cisco T o ta ls 6 5 .404 .0 00 566,3X 9,500 1 0 1 .91 0.000 118 .24 8.000 2 7 .749 .5 00 1 7 .151 .0 00 1 46 .37 2.000 34 .6 5 4 .5 0 0 22.954 .5 00 30,260*000 21 .5 5 3 .0 0 0 62 .7 4 5 .0 0 0 # 1 ,2 1 5 ,3 2 1 ,0 0 0 RECAPITULATION OF HOLDINGS BY MATURITIES May " June " J u ly 18 25 1 29 13 « 20 " 27 Aug. 10 June 15 Aug. 1 S e p t .15 " 15 O ct. 15 D ec. 15 Feb. 1 Mar. 15 May 2 " 2 June 15 ” 15 O ct. 15 1932 •Treasury B i l l s 1932 1932 1932 1932 1932' 1932 1932 1932 2 3/4% C /I 1932 3 1/8% " 1932 1 1/8 % " 1932' 3 1o 1932 3 1932 3 1/4% T/N 1933 3 3/4% C /I 1933 3 3/4% " 1933 2 % % T/N 1934 3 1947 3 1/2% 1 s t L/L 1947 4 1/4% 1 s t " 1938 4 1/4% 4 th * 16,111 ,0 00 14 .9 0 7 .0 0 0 5 0 .0 8 7 .0 0 0 36 .550 .0 00 7 5 .500 .0 00 4 0 .4 7 5 .0 0 0 4 3 .1 5 0 .0 0 0 15>000,000 42 .5 5 0 .0 0 0 53 ,900,000 7 3 .6 9 3 .0 0 0 7 7 ,7 5 1 ,5 0 0 8 4 ,1 6 1 f 500 108.975.000 8 ,0 2 5 ,0 0 0 119 .77 5.000 75 .2 0 0 .0 0 0 4 0 .2 5 0 .0 0 0 7 9 ,0 2 5 ,0 0 ) 2 0 .250 .0 00 13 9 .9 8 5 .0 0 0 # 1 ,2 1 5 ,3 2 1 ,0 0 0 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ‘ Authority Q •\ ^ 1 ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BATTKERS ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS FROM MAY 5 , 1932 TO MAY 1 1 , 1932, INCLUSIVE GOVERNMENT SECURITIES - SYSTB.I Ilfi/ESIMENT ACCOUNT Redemption Net In crease Purchases and S ales & 1,1 0 9 ,5 0 0 0 1,109 , 500 $ o 13,132,500 33,692 ,5 00 46 ,8 2 5 ,0 0 0 7,624,500 1,7 0 8 ,5 0 0 0 ,3 3 3 ,0 0 0 10,328 ,5 00 12,307,000 1,9 7 8 ,5 0 0 4,9 1 9 ,0 0 0 5,3 7 6 ,5 0 0 457,500 4,6 7 3 ,0 0 0 278*500 4,9 5 1 ,5 0 0 12,543,500 2 ,4 5 0 ,0 0 0 14,993 ,5 00 577,000 4 ,1 8 0 ,5 0 0 4 ,7 5 7 ,5 0 0 2 ,9 5 1 ,5 0 0 381,000 3,3 3 2 ,5 0 0 5,411>000 499,000 5,910,00 0 3,689,50 0 356,000 4,0 4 5 ,5 0 0 8 ,3 6 1 ,5 0 0 1 ,0 4 2 ,0 0 0 9,4 0 3 ,5 0 0 B oston New York P h ila d e lp h ia C levclan d Richmond A tlan ta Chicago S t. L ou is M inneapolis Kansas C ity D a lla s San F ra n cisco $98 ,37 5,000 $23,970,000 £122,345,000 T ota ls HOLDINGS IN GOVERNMENT SECURITIES - SALES CONTRACTS Net Change From P rev iou s Week N 0 N E OTHER TRANSACTIONS IN GOVERNMENT SECURITIES - (EXCLUDING SALES CONTRACTS) Redemption and S a les Purchases Issue Issu e May 11 /3 2 Tr. B i l l s New York $6,500*000 M isc. Gov*t S e c. $6 ,5 0 0 ,0 0 0 A tla n ta 422,400 M " Mi s c . G o v 't S e c . " 412,450 n ti M inneapolis 776,850 w " " 772,250 T o ta ls $ 7 ,6 9 9 ,2 5 0 $7 ,684,700 BANKERS ACCEPTANCES (000 Omitted) NOTE*. -$13r171 $24 By A l l o t ment from New York 0 0 0 0 0 0 0 0 0 0 0 0 0 37 0 0 0 267 0 0 139 0 0 0 0 0 0 25 335 49 0 0 0 27 373 $443 $812 R„ indicates Betained in above statement* to T ota ls Purchased Own Ivlkt. $ 0 0 0 0 0 0 0 0 0 0 14 R. 10 " o H oldin gs May 4 B oston $ 4 New York 3,724 P h ila . 209 C lev e. 0 Richmond 950 A tla n ta 1,035 Chicago 928 S t. L ou is 514 Minn, 199 Kan. C ity 577 D a lla s 573 San Fran. 4,458 M aturit ie s and S ales Held Held in E ls e N.Y. where Other H oldings C lose May 11/32 S ales Other H oldings SonMay 11 t r a c t s B ills 1 0 $ 2,345 0 10,142 >687 3 209 0 3,178 0 3 ,104 0 0 1,229 925 433 0 1,157 879 0 4 ,1 3 4 514 0 1,005 60 0 632 577 0 891 0 861 560 0 2,121 4 ,095 $11 *940 0 $30,779 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED ' Authority MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDED MAY 11, 1952 omitted) 1-30 days 31-60 days Dall&s San F ra n cisco 61-90 days 5 1 / 2 * .. 2 yg# T o ta ls §14 0 $14 10 $10 #14 $24 0 T o ta ls Over 90-days 10 RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES DURING WEEK ENDED MAY 11, 1932 (000 Om itted) (E xclu d in g S ales C on tra cts) Bankers Government T ota l S e c u r it ie s Acceptanc es Purchased Sold Matured $130,044 6,803 24,855 T o ta ls $ 98,386+ $ 24 0 1,255 $ 1 ,2 3 1 572- (Net Ghange ________ 1-day h old over and oth er b i l l s ) $ 1 ,8 0 3 - $130,068 ' 6 r803 2 6 ; 110 $ 97 *155+ 572- (Net Change 1-day h old ov er and oth er b i l l s $ 96,583+ HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED MAY 11, 1932 ( qqq om itted ) (In c lu d in g S a les C on tra cts) W ithin 1 5 -days 16-30 da ys 31-60 days Gov*t S e c u r it ie s $53,591 11,410 B i l l s Purchased $54,500 4,953 $79,100 8,049 $65,001 059,453 $87,149 T o ta ls 91 days6 months Over 6 months $213,025 18,067 $271,305 240 $713,746 $ 1 ,385 ,2 67 42,719 $231,092 $271,545 $713,746 $ 1 ,4 2 7 ,9 8 6 61-90 days T ota ls
@FedFRASER