The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
p w . ‘ '•
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
-i*
- "
Authority £»0*
WRGft
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from December 24, 1931 to December 30, 1931 inclu
sive, together with data received from Federal reserve banks.
Assistant deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED DECEMBER 30, 1931
Ifoldings of Earning Assets of Federal Reserve Banks from December 31, 1930 to Date
(000 Omitted)
BILLS
GOVERNMENT SECURITIES
BANKERS ACCEPTANCES
TOTAL
Outright
Outright
Sales
Sales
EARN BTC
-1930Contracts
DISCOUNTED
ASSETS
Contracts
Purchases
Purchases
5251,398
§43,405
£524,746
§39,098
Dec. 31 $1,351 ,853
$686,064
-1931215,137
1,788
118,453
Jan. 28
945 ,405
609,877
0
189,847
886
Feb. 25
105,431
895 ,606
599,442
0
165,425
83,272
100
0
Mar. 35
598,459
847 ,256
155,151
55,816
923 t572
135,949
A-pr. 29
598,306
0
5,291
152,852
May
27 - 876 ,489
121,210
598,368
0
197,678
5,226
June 24
618,503
103,164
947 ,354
0
3,627
183,036
62,909
July 29
934,795
677,977
0
241,718
1,042
179,476
1,156 *636
0
Aug. 26
727,998
327,925
449,022
19,505
1,557 ,970
5,890
Sept. 30
738,455
716,680
1,418
723,262
(fct. 28
726,959
2,198 ,238
0
686,401
573
Nov. 25
1,925 ,509
0
479,225
727,101
911,194
10,277
247,074
1,957 ,221
Dec. 23
758,222
0
78,267
1,024,13«i
248,708
2,185 ,216
764,933
58,295
"
30
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
DURING WEEK ENDED DECEMBER 30, 1931
(000 Omitted)
BILLS DISCOUNTED
GOVERNMENT SECURITIES
BANKERS iACCEPTANCES
Net
Balance
Net
Net
Balance
Balance
Dec. 30
Change
Change
Dec. 50
Dec. 50
Ghange
0 10,682§ 56,733
§ 61,052
§4,278+
§26,047
§1,370Boston
195,431+
431,827
64,829
10,273+
New York
275,056
7,734+
22,250115,575
279256Philadelphia
57,652
744
12,7192,676114,862
2,406
38267,517
Cleveland
5,3651,627+
41,447
7,932
325Ric tanond
24,081
1,96145,525
2,22210,275
Atlanta
2,61012,614
3,36795,309
11,617105,531
44655,935
Chicago
7,30621,742
27,099
5,136+
252~
St. Louis
11,545
3287,554
5,947
713+
227Minneapolis
27,750
41229,286
1,89418,708
2519,954
Kansas City
4,41511,407
1,8522,157
269Dallas
29,863
13,68752,866
27,785
6481,84358,010
San Francisco
N« Y. holdovers
8,003+
43,154
and other bills
To tals
§764,9 33
$6,711+
§248,708
§1,634+
#1,024,133
$112,939+
COMMENT ON CHANGES WEEK ENDED DECEMBER 30 , 1931
Total earning assets of the System showed an increase of §227,995 ,000 for
the current statement week . The changes by classification consisted of increases
of §6,711,000 in outright purchases of government securities, §38,295,000 in govern
ment securities held under sales contracts, $1>634,000 in outright purchases of
tankers acceptances, §67,990,000 in bankers acceptances held under sales contracts,
and §112,939,000 in bills discounted.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0« \2RSy
2
Money
Market
On December 24, the first day of the reporting week, the re
serves of the New York City banks were maintained at a level slightly
above requirements by substantial sales of acceptances to the Reserve
Bank which offset the final Christmas currency demand and outflow of
funds to other centers from the New York market. In the three busi
ness days after Christmas, return of holiday currency to the Reserve
Bank, an inflow of funds to this market from other parts of the country,
and foreign account payments exceeded losses arising from gold exports
and earmarkings, and in addition there was some net increase in the
Federal Reserve purchased bill portfolio, with the consequence that the
New York banks were enabled to repay some of the Reserve Bank borrow
ings incurred prior to Christmas, end still leave their reserve balance:
moderately in excess of requirements.
Commercial and agency transactions on the 30th, however, re
sulted in a moderately large net loss ol funds to the market. These
operations included withdrawals of currency for the month-end* a sub
stantial outward movement of funds to other districts, and an excess
of Treasury Bill sales in this market over the amount of maturing
Treasury Bills redeemed here. The net loss in commercial and agency
transactions, however, was far more than offset by an increase of
$258,000,000 in borrowings by New York City banks and by the offering
of a large amount of bills and Government securities to the Reserve
Bank under repurchase agreement. The net result of the day's turnover
consequently was an advance in the reserve balances of the principal
City banks to a figure some #250,000,000 above the required level.
On the last day of the year, the large surplus of reserves
accumulated on December 30 enabled the New York banks to retire all of
the Reserve Bank borrowings made on the 30th, despite further losses of
funds in commercial and agency transactions, chiefly currency with'*
drawals and outflow of funds to other centers. Consequently, the New
York City banks will show comparatively small indebtedness at the
Federal Reserve Bank in their year-end statements.
Following the advance to 3 per cent on December 18, call money
held at that rate until the afternoon of December 30, when a rise to
3 1/2 per cent occurred. On the 31st, the 3 1/2 per cent held with a
slight excess of offerings over the demand for new loans reported
throughout the day. The rate for federal funds continued to be quoted
at 3 - 3 1/4 per cent until the 30th, when the quotation was marked up
to 3 1/4 - 3 1/2, a level that also prevailed on December 31. Stock
Exchange time money again was quoted at a range of 3 per cent bid, 4 pei
cent asked. This division of the money r»arket continued largely nominal.
Yields on short-term United States Government securities advanced
further through the 30th, but were reduced slightly on the 31st, No
change occurred in open market bill and commercial paper rates.
Government
Security
Ma rke t
The Government security market had a rather bad week due to a
large volume of liquidation, the greater part of which was apparently
for ’
'window dressing”purposes. The long-term issues were e s p e c i a l l y
weak and sold off steadily, the market at times almost reaching a point
of demoralization. On the last day of the statement week, however, the
market strengthened materially and prices for the long-term bonds re
covered a portion of the losses made earlier in the week* The short
term issues just about held their own, with prices at the close of the
reporting period about the same as they were a week previous. The
average selling price for the Liberty Loan and Treasury Bonds at the
close of the period was V4.09, as compared with the previous week’
s
average closing price of 95.45,
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
3
2
2
%
3/4%
1 l/8 fo
3
%
3 1/4%
DealersT Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net
Approx.
Issue
Price
Change
Yield
Cert, of Ind. due March 15, 1932
99 30/32
2.30%
-3/32
tt
tt June 15, 1932
"
"
100
-1/32
2.74%
ft
tt Sept. 15, 1932
”
"
3.69%
98 8/32
+5/32
tt Sept. 15, 1932
"
” tt
3.64%
99 18/32
+4/32
Treasury Notes ” Dec < 15, 1932
+4/32
3.72%
99 18/32
Treasury Bills Jan. 13 and 25 maturities - 2 3/4% discount bid, 1 l/2% asked
"
"
all of Feb. & Mar. 2 "
2 3/4%
"
"
2
%
’
’
"
" March 30 maturity
3 1/8%
"
"
2 7/8#
"
- Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Price
_ Issue
Change
Issue
Price
101
1st 3 1/2s 97 20/32
-11/32
Treasury 4 l/4s 1947-52
«
98 16/32
4s
1st 4 l/4s
1944-54
99
-17/32
tt
95 16/32
3 3/4 s 1946-56
4th 4 l/4s
99 3/32
-19/32
tt
91 8/32
3 3/8s 1943-47
tt
91 8/32
3 3/8 s 1940-43
tt
91 15/32
3 3/8 s 1941-43
tt
85 30/32
3 l/8s 1946-49
tt
1951-55
3s
84 12/32
Net
Change
+ 2/32
-1.
- 22/32
-2.30/32
-2.30/32
-2.15/32
-2. 7/32
-1.12/32
Bankers
Acceptances
Dealers’offerings of unendorsed bankers acceptances contin
ued at the following rates during the current statement week: 3 per
cent for 30s, 60s, 90s and 120s, and 3 5/3 per cent for 180- day bills.
Reports
•week
ending
Dec* 30
Boston reported that both the supply and demand for bills
showed a marked decrease in the local market during the past period.
Dealers again forwarded their excess holdings of $2,845,000 to their of
fices in other cities. Bills did not move freely. In New York dealers’
purchases during the week continued in about the same volume as the p?st
few weeks. The demand, however, both from domestic and foreign buyers,
fell off very substantially and dealers’aggregate portfolios increased
by about $39,000,000 to $102,000,000, The reserve bank’
s purchases dur
ing the week for System Account were substantial and were made principally
from banks. Hates were unchanged. Philadelphia reported that its ac
ceptance market was very quiet and dealers reported little activity
either way. Portfolios continued to increase. Chicago reported that thy
bill market in its district was very dull, while Dallas reported that t^o
demand for bills from member banks continued fair.
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
There were no purchases or sales of securities during the week under
Treasury authorization.
DECLASSIFIED
Authority E»0»
4
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
Transactions in the System Account during the current statement week
consisted of
Exchange in the
market at advantageous
rates of
$2,000,000 certificates due Sept. 15, 1932, and
1|050|00Q - Treasury bills
n Feb, 24, 1952
a total of
$3,0501000 - exchanged for
$2,000,000 - 3 l/4>5
1,050,000 - Treasury bills
^3,050,000
Redemption on
December 30 of
due Dec. 15, 1932, and
n Mar* 30, 1952
§12,652,000 maturing Treasury bills which were partially
replaced by purchase in the market of
$ 5,000,000 - Treasury bills maturing March 30, 1932,
On December 24 the $3,000,000 participation of the Federal Reserve Bank
of Richmond, taken over temporarily into the participation of the Federal Reserve
Bank of New York on December 23, as mentioned in last week’
s report, was re
allocated to the reserve banks which expressed a desire to participate.
On December 29 at the request of the Federal Reserve Bank of Atlanta,
it was temporarily relieved of $2,000,000 of its participation. This participation
was taken over temporarily into the participation of the Federal Reserve Bank of
New York and reallocated on December 30 to Federal reserve banks desiring parti
cipation*
The total holdings in the System Account at the close of the current
statement week amounted to $566,816,000 representing a decrease for the week of
$7,652,000, The participations by Federal reserve banks and the classification
of issues held in the Account at the close of business Wednesday, December 30,
1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
$ 55,445,500
Boston
New York
139,217,000
Philadelphia
51,047,000
67,516,500
Cleveland
Richmond
24,080,500
Atlanta
12,478,000
Chicago
83,935,000
St. Louis
26,598,500
Minneapolis
20,003,000
Kansas City
18,623,500
Dallas
19,863,500
San Francisco
48,010*000
Totals
$566,816,000
RECAPITULATION
Jan, 13, 1932 w
25, 1932 Feb,
8, 1932 tt
15, 1932 n
24, 1932 Mar,
2, 1932 rt
30, 1933 tt
15, 1932 ~
June 15, 1932 Sept. 15, 1932 tf
15, 1932 Dec. 15, 1932 June 15, 1947 tt
1>>, 1947 Oct. 15, 1958 -
OF HOLDINGS BY MATURITIES
Treas.Bills
$ 2,000,000
tt
ft
18,000 ,000ii^
tf
tt
22,725,000
tf
tt
7,111,000
tf
ff
7,907,000j>^
ff
tt
18,925,000
ft
ft
6,050,000 . 1
58,731,50
2
C/I
%
2 3/4£ tf
80,500,000/
53,500,000
1 i / b £ tt
tf
59,551,500
3
/»
20 ,000,000
u 1/455 T/N
3 1/255 1st L/L 80,025,000
4 1/4# 1st ” 16,750,000
4 1/40 4th " 115,040,000
$566,816,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0*
STATEMENT OF T
TSACTIONS IN GOVERNMENT SECURIT' 1 AND BANKERS ACCEPTANCES
AFFECT BIG THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
FROM DECEMBER 24 TO DECEMBER 30, 1931, INCLUSIVE
Net
GOVERNMENT SECURITIES - SYSTEM DIVESTMENT ACCOUNT
Purchases
Sales
Decrease
Boston
0 594,500
£ 957,000
$ 1,531,500 .
1,766,000
New York
8,874,500
7,108,500
Philadelphia
279,000
1 , 4 0 9 f500
1,130,500
382,500
Cleveland
1,864,500
1,482,000
325,000
R ichmond
6 6 7 {000
342 P000
2,168,500
Atlanta
184J000
2,352,500
446,000
Chicago
2,317,500
1,871,500
252,500
St. Louis
481,500
734,000
270,000
Minneapolis
554,000
284*000
251,500
Kansas City
516,500
265,000
268,500
Dallas
550,500
282,000
648,000
San Francisco
1,330,000
682,000
£22,702,000
$7,652,000
Totals
$15,050,000
jE D
GOVERNMENT SECURITIES - SALES CONTRACTS
New York
£27,000,000
Philadelphia
11 ,000,000
Atlanta
295,000
*>38,295,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING
Redempt ion
Purchases
and Sales
Issue
0
Boston
£ 4,872,200
Mi sc . G o v ''t Sec,
t>
t»
tt
New York
10,500,000*
500 ,000
500,000
ft
»»
t»
Atlanta
142,700
89,550
V
rr
n
Minneapolis
796,450
753,450
tf
tt
tt
10,000,000
San Francisco
10,000,000*
£11,896,150
#26,258,200
Totals
*£10,000,000 temporarily sold to New York by San Francisco.
BANKERS ACCEPTANCES
(000 Omitted)
Maturities
and Sales
Hold
Pur
By Allot
Held
Held
ings
chased
ment from
in
Else
Own Mkt. New York
Dec. 23
where
N. Y.
Boston
| 27,417 $ 1,833 R. $ 4,622
$ 7,825
0
N e w York
54,556
25,077 tt
0
14,804
0
35,925 A.
Phila,
256
1,000
0
0
0
5,083
Cleve.
2,676
0
0
0
Rich.
6,305
246 R.
2,262
3,643
0
Atlanta
802
5,139
12,885
127 R.
3,204
21,513
Chicago
47,552
683 tt
9,213
0
6,409
St. Louis
2 ,928
4,277 tt
3,787
0
Minn.
5,234
1,470
300
320 tt
2,163
5,818
Kan-, G ity
11,848
0
3,924
0
4,009
Dallas
56
1,807
11 tt
0
San Fran.
5,369
9,108
29,626
1,896 tt
0
SALES CONTRACTS)
Issue
D e c . 30/31 Treas.Bills
Feb. 24/32
”
"
Misc . G o v ’
t Sec,
tt
tt
tt
U. S . Treas. Bills
Hold
ings
Dec.30
$26,047
64,829
744
2,406
7,932
10,275
35,935
11,545
5,947
9,954
2,157
27,783
Other Holdings
Close Dec.50/51
Sales
Con Other
tracts Bills
$ 2,331. $2,523
75,936. 11,019
0
0
0
0
0
0
0
0
0
0
3,330
3,386
1,341
2,137
4,541
1,103
723
972
1,004
2,279
£42,536 #205,554 $78,267 {$34,358
To tals
$211,923 $70,395
$35,925
£34,228
8,796
Bills held over night; by New York for distribution to other Fed.Res.Bks. - £4«5,154
NOTE:
R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDED DECEMBER 30, 1931
T O O O Omitted)
1-30 days
31-60 days
3^
Boston
New York
Richmond
Atlanta
Chicago
St. Loui a.
Minneapolis
Dallas
San Francisco
Totals
#
3 - 3
50
29,510
38*
14
200
2,846
50
1/8$
# 1,524**
28,351
61-90 days
3 1/81
#
Total
3 1/8-3 1/2$
259
3,141
0
0
0
0
0
# 1,833
61,002
246
127
683
4,277
#70,395
0
0
1,431
113
483
70
0
200
6
151
597
925
0
©
0
223
#32,859
#32,284
#5,029
#223
0
5
320
11
1,896
^Purchased at 3 1/8$, **Purchased at 3 to 3 1/2$, ***Purchased at 3 1/4$
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDED DECEMBER 30, 1931
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
#41,309
21,446
13,152
Bankers
Acceptances
Total
#70,395
0
76,764
# 6,369(Net Change
8,003+ 1-day holdover
____
and other bills)
TOTALS
6,711+
fill,704
21,446
89,916
¥ 342+
8,003+
_____
#
# 1,634+
(Net Change
1-day holdover
and other bills)
8,345+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED DECEMBER 30, 1931
(000 Omitted)
(Including Sales Contracts)
Within
15-days
Gov’
t Securities # 40,295
Bills Purchased 192,124
TOTALS
#232,419
16-30
days
31-60
days
61-90
days
91 days6 months
Over 6
months
#20,950
64,096
#77,816
50,940
#86,139
19,056
#86,553 #491,475 #
759 _______ 0
#85,046
#128,756
#105,195
#87,312
#491,475
Total
803,228
326,975
#1,130,203
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
^
For ClRCULATJPJl
Go£ Meyer
^ r . Hsmlin.
Mr.
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
Jerries ..jh ry ^
Mr. Magee
Mr. Miller.
Mr. Pole-5
(y|r> 7^OinAsyistrvu^
Pi
Return to Secreiary’* Office
CONFIDENTIAL
December 28, 1931•
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from December 17, 1951 to December 23, 1931 inclu-
W. 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
DECLASSIFIED
Authority £»0*
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED DECEMBER 23, 1931
Holdings of Earning Assets of Federal Reserve Banks from December 24, 1950 to Date
(000 Omitted)
TOTAL
EARNING
ASSETS
$ 1 1556 *395
1*351,853
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
$639*645
$ 2*031
686,064
43,403
BANKERS ACCEPTANCES
Outright
Sales
Purchases
Contracts
$221,759
$36*078
324,746
39 *098
BILLS
-1930DISCOUNTED
Dec. 24
$448,349
31
251,398
-1931118,453
Jan* 28
945,405
1,788
215,137
609,877
0
886
Feb. 25
895,606
599,442
105,431
189,847
0
83*272
598,459
165,425
Mar. 25
847,256
100
0
923,572
133,949
35,816
Apr. 29
155,151
598*306
0
May
3,291
876,489
152,852
27
598,368
0
121,210
-*947,334
103,164
197,678
June 24
618*503
3,226
0
62,909
July 29
183,036
934,795
677*977
3*627
0
Aug# 26
1,042
1,156,636
727*998
179,476
241,718
0
Sept. 30
449 *022
19,505
327,925
738*455
1*557*970
3*890
Oct, 28
723*262
726,959
1,418
716,680
2*198,238
0
Nov., 25
573
686,401
1,925,509
479,225
727,101
0
Dec. 16
697,908
1*941,351*
905,694*
302,926
4,151
o
23
1,957,221
911,194
10,277
758*222
247*074
0
*Includes $246*000,000 special one -day Treasury certificate of indebtedness of
which s?48*500,000 was sold to member banks as follows: New York $ 2 6 ,500,0')0 and
Boston $22,000,000.
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
___________________ DURING WEEK ENDED DECEMBER 25, 1931 ,____________
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
Dec. 23
Qhange
$ 56*774
£ 11,078267,322
115,41157,931
3*834+
67,899
4,948+
24,406
3,00014,836
54+
105,977
33,50027,351
0
27*977
2518,959
0
30,132
2*500+
58*658
4*206+
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
$758,222
$147,472-*
BANKERS ACCEPTANCES
Net
Ba lance
Dec. 23
Change
3,954$ 27,417
54,556
12,2081011,000
5*082
6,1552,5346,305
12,885
3,23447,552
10,2146*409
4,0423*8885|234
3*15811,848
2,5964*009
29*626
4,19035,151
422+
$247,074
$55*852-
BILLS DISCOUNTED
Net
Balance
Dec. 23
Change
$ 67,415
$ 23,920+
236,396
118,665+
137*825
20,197+
127,581
15% 684+
46,812
10*855+
47,486
6,174—
20,716+
98,676
2 *169+
29,048
23+
7,882
29,698
7712,10215,822
66,553
10,204+
$911,194
$213*206+
*Includes balano-e of special one~day Treasury certificate of indebtedness of
$197,500,000 held on Dec. 16 as follows: Boston $11,000,000; New York
#146*500,000 and Chicago $40,000*000*
COMMENT ON CHANGES WEEK ENDED DECEMBER 23, 1931
Exclusive of the balance of $197*500,000 special one-day Treasury certi
ficate of indebtedness held on Dec*16, the total earning assets of the System
showed an increase of §213,370*000 for the current statement week. The changes by
classification consisted of increesesof $50*028*000 in outright purchases of goyerti~
ment securities* $6,126,000 in bankers acceptances held under sales contracts* and
$213*286,000 in bills discounted, and a decrease of $55,852*000 in outright pur
of bankers acceptances*
chases
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £*0*
Money
Market
The comfortable excess of New York City bank reserve^ existing at
the close of the previous reporting week was reduced to small proportions on
Thursday and Friday, the 17th and 18th, as a result of further income tax
collections, an outflow of funds to other districts, an increase in foreign
balances held at the Reserve Bank, and further Reserve Bank bill maturities,
ell of which exceeded the retirement on the 18th of the remaining $26,250p00
participation of the City banks in the special certificate covering the
Treasury overdraft. On the 19th, however, the actual bank reserves again
became surplus to the extent of §39,000,000, reflecting some tendency for
funds to return to the New York market from other parts of the countryj
which more than offset further currency withdrawals, income tax collections,
and an increase in foreign balances. Between the 16th and 19th the Treasury
overdraft at all Reserve Banks was reduced from $246,000,000 to $ 1 8 8 40O0,00C*
and the overdraft carried at New York remained in the neighborhood of
^175^000,000, due to the concentration at New York O f an increased psrt of
the total Treasury overdraft.
On December 21, the first of a series of three withdrawals of
Government funds from depositaries, together with large bill maturities
from System holdings resulted in the development of a deficit of
$27,000,000 in actual reserve balances, and on the following day this def
icit was increased further to $43,000,000, as the second Withdrawal from
depositaries and an outflow of funds to other centers were only partly
balanced by the $50,000,000 purchase of securities for System Account. On
the following day, the third Government call from depositary institutions
and substantial currency withdrawals caused the New York City banks to
borrow $92,000,000 in order to maintain their reserve balances slightly
above requirements.
Luring this three day period of heavy withdrawals of funds from
the market, the Treasury overdraft declined to $107,000,000 on the 21st
and to $29,000,000 on the 2 2 n d f while by the close of the 23rd the Treasury
had created a credit balance of $56,000,000 at the Reserve Banks.
Further currency withdrawals and a considerable transfer of
commercial and banking funds from the New York market to other parts of
the country on December 24 were accompanied by sales of $31,500,0')0 of
acceptances to the Reserve Bank for System Account, and by moderate
sales of acceptances and securities under repurchase agreement.
Some divisions of the money market have been slightly firmer dur
ing the past week. Call money rose to 3 per cent during the afternoon of
December 18 after renewals had been placed at 2 1/2 per cent, and for the
balance of the week only the Z per cent rate was quoted. The quotation for
federal funds was progressively marked up to 3 - 3 1/4 per cent by the
22nd, following the low rates in effect around the Treasury tax date. Time
money quotations were advanced to 3 per cent bid, 4 per cent asked, as
against 3 - 3 1/2 per cent previously; but the change was of little practical
effect since the time money market has been largely nominal for some time.
Yields on short-term United States Government securities have advanced
slightly following the ease that developed for a few days after the 15th.
The commercial paper market has been exceedingly dull and at a prevailing
range of 3 3/4 - 4 per cent, and rates in the bill market have also been
unchanged.
GovernFollowing some strength in the government security market during
ment
the early part of the current statement week, the market for United states
Security Government securities again turned weak with the exception of the issues
Market of United States Treasury bills and Treasury certificates due next March
and June, which were firm, Prices of Treasury certificates maturing next
September and Treasury notes maturing next December declined from 7/32 to
10/32, while the Liberty Loan and Treasury bonds showed declines of from
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q*
5
7/52 to 2.7/32. At the close of the current statement week the aver
age yield on short-term issues at dealers* offering prices was about
2 5/4 per cent as compared with 2 1/2 per cent at the close of the pre
vious week, and the average selling price for the Liberty Loan and
Treasury Bonds was 95.45 as compared with the previous week’
s average
closing price of 96.34.
2
2
r
3
3
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the previous Statement Week
Net
Approx,
Price
Change
Yield
Issue
- - «•
% Cert, of Ind, due March 15, 1932 100 1/32
1.84#
3/4% " "
” ” June 15, 1932 100 1/32
- 1/32
2.67#
- 7/32
3,84#
1/8% ” ” ”
” Sept. 15, 1932
98 5/32
%
" "
” ” Sept. 15, 1932
99 14/52
-10/32
3,80#
99
-10/32
1/4% Treasury Notes " Eec, 15, 1932
3.85#
Treasury Bills maturities up to Feb. 15, 19522
1/2# discount bid, 1.1/2% asked (no
”
M
maturing Feb. 24 and Mar. 2, 1952
2 1/2% discount bid, 2% asked (nominal)
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Net
Issue
Issue
Price
Ghange
Price
Ghange
1st 3 1/2s 97 31/32 - 7/32 Treas,.4 1/4s 1947-52 100 50/52 -1. 7752
tf
1944-54
1st 4 l/4s
99 17/52 -16/32
4s
99 16/52 - 21/52
tt
4th 4 l/4s
99 22/32 -15/32
3 5/4s 1946-56
96 6/52 -1, 4/52
tt
3 3/8s 1945-47
94 6/32 - 14/52
ft
5 5/8s 1940-45
94 6/32 - 14/5g
tf
5 5/8s 1941-43
93 30/52 - 14/52
tt
5 l/8s 1946-49
88 5/52 -2. 1/52
tf
1951-55
85 24/52 -2. 7/52
5s
Bankers
Acceptances
Dealers’offerings of unendorsed bankers acceptances continued
at the following rates during the current statement week: 5 per cent for
50s, 60s, 90s and 120s, and 3 5/8 per cent for 180-day bills.
Reports
week
ending
Dec. 25
Boston reported that thr-re was considerable liquidation of
bill holdings of member banks in its district during the past period
resulting in a larger supply of bills than for the past several months.
Although the demand was some better, dealers still had a large surplus
which they were obliged to ship to other cities. In New York the
supply of bills continued in about the same volume as last week.
Dealers’sales to the outside market and to the reserve bank for the
account of foreign correspondents fell off considerably ajid aggregate
portfolios increased by about $26,000,000 to $63,000,000. Rates, how
ever, held steady as most of the dealers were inclined to bui^d up
their portfolios as they feel they will need the bills to meet the
demand after the first of the year, Philadelphia reported that its
acceptance market was a little more active* The supply of new bills
was moderate. Banks were disposing of bills over the yeer-end.
Portfolios increased considerably. Chicago reported that there was
practically no activity in bills in its district during the past week,
Dallas reported that the demand from member banks continued fairly
active.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
There were no purchases or sales of securities during the week under
Treasury authorization.
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
Transactions effected in the System Account during the current statement
week were as follows:
Purchase under authority arranged at the Open Market Policy Conference at its
meeting held in Washington, November 30, 1931:
In Chicago
market of - $2,500,000
1,500,000
In New York
market of - 40,000,000
3.000.000
3.000.000
Total Purchases
- 3$ certificates due Sept, 15, 1932
- 3 1/4$ Treasury notes due Dec, 15, 1932
- 2 3/4$ certificates due June 15, 1932
"
" Sept.15, 1932
- 3$
- 3 1/4$ Treasury notes” Dec. 15, 1932
$50,000,000
Exchange effected advantageously
;
In New York
market of $ 3,000,000 - 2 3/4$ certificates due June 15, 1932
for
3,000,000 - 3 1/4$ Treasury notes” Dec, 15, 1932
On December 19 the Federal Reserve Bank of Dallas repurchased $2,500,000
of its participation in the System Account, -$2,000,000 of which it was temporarily
relieved on October 9, and $500,000 on October 19.
On December 23 the Federal Reserve Bank of Richmond, owing to its low free
gold position* was temporarily relieved of $3,000,000 of its participation.
This
participation was taken over into the Federal Reserve Bank of New York's participa
tion on December 23, and apportioned on December 24 to the reserve banks which ex
pressed a desire to participate.
The purchase of $50,000,000 government securities, referred to above, in
creased the amount of total holdings in the Account to $574,468,000, The partici
pations by Federal reserve banks and the classification of issues held in the Aecoun
at the close of business Wednesday, December 23, 1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS RECAPITULATION OF HOLDINGS BY MATURITIES
Boston
| 56,040,000
Dec, 30, 1931-Treasury Bills $ 12,652,000
n
New York
140,983,000
2,000,000
Jan. 13, 1932- »
♦
»
»
n
18,000,000
Philadelphia
51,326,000
25, 1932»»
Cleveland
Feb. 8, 1932- »♦
67,899,000
22,785,000
H 15, 1932- n
n
Richmond
24,405,500
7,111,000
t*
» 24, 1932- »»
Atlanta
14,646,500
8,957,000
Chicago
84,379,000
Mar, 2, 193218,925,000
H
St. Louis
26,851,000
15, 1932- 2
$ C/I
58,731,500
Minneapolis
20,273,000
June 15, 1932- 2 3/4$ *
80,500,000
Kansas City
18,875,000
Sept, 15, 1932- 1 1/8$ *»
53,500,000
w
Dallas
20,132,000
61,551,500
$ "
15, 1932- 3
San Francisco
Dec. 15, 1932- 3 1/4$ T/N
18,000,000
48,658,000
June 15, 1947- 3 1/2$ xst L/L 80,025,000
15, 1947- 4 1/4$ 1st " 16,750,000
Oct. 15, 1938- 4 1/4$ 4th » 115,040,000
Totals
#574,458,000
$574,468,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0*
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_
_
_______
FROM DECEMBER 17 TO DECEMBER 25, 1931, INCLUSIVE
___________
Bos ton
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chi cago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Net Decrease
Net Increase
Sales
Purchases
$
77,500
$
310,500
4 388,000
t
0
34,529,500
3,440,500
31,089,000
0
3,834,000
4,145,000
311,000
0
5,358,000
410,000
4,948,000
0
3,151,500
3,000,000
0
151,500
0
0
81,000
81,000
6,500,000
0
6,943,500
443,500
0
148,500
148,500
0
0
112,500
112,500
0
104,500
0
0
104,500
2,500,000
0
2,611,500
111,500
4,206,500
0
4,504,000
297,500
$3,077,500
$53,077,500
|59,000,000
#9,000,000
GOVERNMENT SECURITIES - SALES CONTRACTS
NONE
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES { EXCLUDING SALES CONTRACTS)
Issue
Purchases
Issue
Sales
t Sec
New York
^14,500,000 Misc. Gov’
#14,500,000 Misc. Gov* t Sec,
n
«
rt
n
687,500 «•
741,400
♦»
Atlanta
«
»
»
ft
1,448,850
’
*
1,473,100
"
Minneapolis
#16,690,250
116,660,600
Totals
BANKERS ACCEPTANCES
(000 emitted)
Maturities
and Sales
Hold
Pur
By Allot Held
Held
Hold
ment from
in
ings
chased
Else
ings
Dec• 16
Own Mkt.
Dec. 23
New York
where
N. Y.
Boston
$ 31,371 $ 3,607 R
$ 281
| 7,842 $ 27,417
4 o'
Wew York
66,764
2,580*"
0
0
54,556
14,788
4,223 A
1,101
0
Phila.
0
101
0
1,000
Cleve.
11,237
201 R
0
0
6,356
5,082
Rich.
8,839
0
300 »
414
3,248
6,305
16,119
262 "
Atlanta
3,193
675
12,885
372
Chicago
249 "
57,766
1,045
11,508
0
47,552
0
530
St.Louis
10,451
4,572
0
6,409
Minn.
0
9,122
351
4,239
0
5,234
Kan. City
0
15,006
11,848
544
3,678
24
Dallas
77 *
6,605
2,661
0
4,009
. 12
San Fran.
33,816
1,865 "
686
0
6,741
29,626
Totals $268,197 $13,364
$4,223
$36,379 $33,259 $211,923
Bills held over night by New Y&rk for distribution to other Fed, Res.
•Total - *
Other Holdings
Close Dec.23/51
Sales
Con Other
tracts Bills
$ 1,739 $2,523
8,538 10,983
3,330
0
3,386
0
0
1,541
2,068
0
0
4,541
1,103
0
723
0
0
972
0
1,004
2,279
0
$10,277 $34,253
Bks.- 898
$35,151
^TCTE: R. indicates Retained and A« indicates Allotted in the above statement,
*Includes $816 purchased from foreign correspondent.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»0«
MATURITIES AND RATES ON PILLS PURCHASED WEEK ENDED DECEIVER 35, 1931
<000 Ctoitted)
1-30 days
3$
Boston
New York
Cleveland
Richmond
Atlanta
Chicago
Dallas
San Francisco*Totals
51-60 days
5 - 3 1/895
61-90 days
5 1/8-3 1/4$
954
2,125
0
0
14
0
0
401
$2,655*
2,683
21
150
123
1
0
312
$
$5,494
$5,945
$3,595
$
Over 90-days
5 1/4-5 1/2$
o
1,976
180
150
125**
248
77
839
Total
$ o
19
0
0
0
0
0
515
$ 3,607
6,305
201
500
262
249
77
1,865
$552
$13,364
**Purchased at 5 to 3 1/8$
*Pua?chased at 3 to 5 l/2%
RECAPITULATION OF HJRCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDED DECEMBER 23, 1951
"
'
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
Totals
Bankers
Acceptances
Total
$75,690
25,662
0
#15,564
0
69,638
$56,274442+(Net Change
________ 1-day holdover
& other bills)
$89,054
25,662
69 ,658
$ 6,246442+(Net Change
1-day holdover
r""& other bills)
$50,028+
$55,852-
$ 5,804-
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED DECEMBER 25,1951
(000 Omitted)
(Including Sales Contracts)
Within
15-days
Gov’
t Securities
Bills Purchased
Totals
16-30
days
31-60
61-90
days_____days
91 days6 months
months
Over 6
Total
$ 15,152
146,004
$ 2,000 $ 78,286 $107,665 $80,500
56,051
50,306
24, 2 68
722
$476,621 $
$159,156
$58,051
$476,621 $1,015,573
$103,592 $131,931 $81,222
753,222
0257,551
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« 13^5%*
£
F o r m |itA T K »
Gov^ Meyer
Mr, Hamlin.
Mr. James _ „ jt
Fe d e r a l R e s e r v e B a n k
Mr. Magee
.c&tM*
^
Mr. Miller. _u
of N e w Y o r k
Mr. P o le ..!
Mr.
Mr.
Qti
Please note * initial and
Return to Ssereisnf's Usiee
December 18, 1931.
Dear Governor Meyer:
Enclosed is a report of open market operations
for the period from December 10, 1951 to December 16, 1931
inclusive, together with data received from Federal reserve
banks.
Assistant Deputy Governor
Honorable Eugene Meyer, Governor,
Federal Reserve Board,
Washington, D. C.
Encl.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0*
CONFIDENTIAL
REPORT OF OPEN *_J?K3T OPERATIONS FOR WEEK SNEED ^CEMBER 16, 1931
foldings of Earning Assets of Federal Reserve Banks from December 17, 1930 to Date
,
^
(000 Omitted)
TOTAL
EARNING
ASSETS
-1 9 3 0 17
tt
31
-1 9 3 1 Jan, 28
Feb. 25
Mar. 25
Apr. 29
May 27
June 24
July 29
Aug. 26
Sept. 30
Oct. 28
Nov. 25
Dec.
9
» .«*• 16
Dec,
# 1 ,2 8 2 ,7 9 ^ *
1 ,3 5 1 ,8 5 3
9 4 5 ,4 0 5
8 9 5 ,6 0 6
8 4 7 ,2 5 6
9 2 3 ,5 7 2
8 7 6 ,4 8 9
9 4 7 ,3 3 4
9 3 4 ,7 9 5
JL, 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
1 ,8 6 1 ,5 6 6 ;
1 ,9 4 1 ,3 5 1 * *
GOVERNMENT SECURITIES
Outright
Sales
contracts
Purchases
$ d
$ 6 9 2 ,4 3 4 *
6 8 6 ,0 6 4
609,877
5 9 9 ,4 4 2
5 9 8 ,4 5 9
5 9 8 ,3 0 6
5 9 8 ,3 6 8
6 1 8 ,5 0 3
577,977
7 2 7 ,9 9 8
7 3 8 ,4 5 5
726,959
7 2 7 ,1 0 1
7 1 7 ,1 9 3
9 0 5 ,6 9 4 * *
4 3 ,4 0 3
0
0
100
0
0
0
0
0
3 ,8 9 0
0
0
0
0
BANKERS ACCEPTANCES
Sales
Outright
Purchases Contracts
BILLS
DISCOUNTED
$ 2 2 3 ,9 1 1
3 2 4 ,7 4 6
$ 2 7 ,6 8 0
3 9 ,0 9 8
$ 3 3 1 ,3 2 1
2 5 1 ,3 9 8
1 1 8 ,4 5 3
1 0 5 ,4 3 1
8 3 ,2 7 2
1 3 3 ,9 4 9
1 2 1 ,2 1 0
1 0 3 ,1 6 4
6 2 ,9 0 9
1 7 9 ,4 7 6
4 4 9 ,0 2 2
7 2 3 ,2 6 2
4 7 9 ,2 2 5
3 7 5 ,9 3 4
3 0 2 ,9 2 6
1 ,7 8 8
886
0
3 5 ,8 1 6
3 ,2 9 1
3 ,2 2 6
3,6 2 7
1 ,0 4 2
1 9 ,5 0 5
1 ,4 1 8
573
1 3 ,2 8 5
4 ,1 5 1
2 15,1 5 7
1 89,8 4 7
1 6 5 ,4 2 5
1 5 5 ,1 5 1
1 5 2 ,8 5 2
1 9 7 ,6 7 8
1 8 3 ,0 3 6
2 4 1 ,7 1 8
3 2 7 ,9 2 5
7 1 6 ,6 8 0
68 6 ,4 0 1
7 2 5 ,1 8 2
6 9 7 ,9 0 8
^Includes $ 1 0 9 ,0 0 0 ,0 0 0 special one-day Treasury certificate of indebtedness
**
tt
tt
H
tt
tt
tt
Tt
IT
Of
2 4 6 ,0 0 0 ,0 0 0
yhich
48,500,000 was sold to member banks as follows: New York §26,500,000;
Boston 22,000,000.
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
____________
DURING WEEK ENDED DECEMBER 16, 1931__________
(000 Omitted)
GOVERNMENT SECURITIES
BILLS DISCOUNTED
BANKERS ACCEPTANCES
Balance
Net
Balance
Balance
Net
Net
Dec. 16
Change
Change
Dec. 16
Dae. 16
Change
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
$ 6 7 ,8 5 2
3 8 2 ,7 3 3
5 4 ,0 9 7
6 2 ,9 5 1
2 7 ,4 0 6
1 4 ,7 8 2
139 ,4 7 7
2 7 ,3 5 1
2 8 ,0 0 2
1 8 ,9 5 9
2 7 ,6 3 2
5 4 ,4 5 2
$ 9 0 5 ,6 9 4 *
$ 11,045+
146,500+
3 ,4 0 0 0
0
2 ,4 2 7 39,780+
3 ,5 0 0 132+
0
4375+
$ 1 8 8 ,5 0 1 * *
$ 3 1 ,3 7 1
6 6 ,7 6 4
1 ,1 0 1
1 1 ,2 3 7
8 ,8 3 9
1 6 ,1 1 9
57*766
1 0 ,4 5 1
9 ,1 2 2
1 5', 006
6 ,6 0 5
3 3 ,8 1 6
$ 6 ,9 7 0 1 8 ,7 0 9 1 ,1 2 0 ■ 7 ,4 3 8 2 ,4 7 5 6 ,4 4 1 7 ,9 0 5 4 ,2 6 7 3 ,9 3 6 4 ,6 5 0 1 ,3 6 5 6 ,7 1 3 -
3 4 ,7 2 9
1 ,0 1 9 -
$ 3 0 2 ,9 2 6
# 7 3 ,0 0 8 -
$ 4 3 ,4 9 5
1 1 7 ,7 3 1
1 1 7 ,6 2 8
111,897
3 5,9 7 7
5 3 ,6 6 0
7 7 ,9 6 0
2 6 ,8 7 9
7 ,8 5 9
3 0 ,4 6 9
1 8 ,0 0 4
56,3 4 9
#14,183+
1 9 ,5 2 7 12,925+
5 ,368+
$ 6 9 7 ,9 0 8
$27,274-
23942111,55916+
2532,138+
2,94726,948-
* Includes balance of special one-day Treasury certificate of indebtedness of
$197,500,000 held as follows: Boston $11,000,000; New York $146,500,000; Chicago
$ 40,000,000*
c a » T
ON CHANGES WEEK ENDED DECEMBER 16, 1951
Exclusive of the balance of $197,500,000 special one-day Treasury certifi
cate of indebtedness held on December 16, the total earning assets of the System
showed a decrease of ^117,715,000 for the current statement week. The changes by
classification consisted of decreases of $8,999,000 in outright purchases or govern
ment securities, $73,008,000 in outright purchases of bankers acceptances,
$9,134,000 in bankers acceptances held under sales contracts, $27,274,000 in bills
discounted and an increase of $700,000 in holdings of other securities.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0« V2R5$*
.
.....
2
joney
Market
In the first few days of the p&st reporting week which in
cluded the Treasury quarterly financing date* the reserve balances of
the New York Gity banks were maintained elose to the required level*
an excess of ^15,000,000 being shown on Thursday, the 10th, and minor
deficits on the next two days. Transactions oh the 14th* including
chiefly a substantial block of Government securities taken by the
Reserve Bank from a dealer under repurchase agreement in anticipation
of the redemption of these securities on the following day* raised
the reserves of the New York banks to a figure some $40,000*000 above
requirements.
Cash redemptions of Treasury securities and interest pay
ments on December 15 considerably exceeded the amount of new securi
ties sold for cash and income taxes collected on that day, resulting
in a Treasury overdraft of $215,000,000 at the New York Reserve Bank
and of $296,000,000 at all Reserve Banks combined. In view of this
influx of funds to the market through Treasury operations, several New
York City banks requested participations in the special one-day certi
ficate of indebtedness issued to cover the Treasury overdraft and a
total participation for $52,500,000 was granted to the City banks. In
Boston also, member banks participated in the special one-day certi
ficate which the Treasury carried there. As a result of the sale of
participations to New York City banks, the deferring of replacement
purchases of securities for the System Special Investment Account
until the following day, and of a marked increase in member bank re
serve requirements which reflected the accumulation of deposits in
preparation for income tax payments, the New York City banks continued
to show a comparatively moderate surplus of reserves ($58,000,000) by
the close of the 15th.
As is usual, the peak of income tax collections was reached
on the 16th, and accordingly the Treasury overdraft at the New York
Reserve Bank was reduced to $173,000,000 and the overdraft at all Re
serve Banks to $246,000,000. On this day approximately half of the
participation of the New York banks in the special certificate cover
ing the Treasury overdraft was terminated, leaving $26,500,000 outstandi
ng*
This addition to money market funds and the making of deferred
replacement security purchases for the System Special Investment Ac
count offset the net loss in Treasury transactions and a further rise
in reserve requirements, leaving the New Y ork City banks w ith a surplus
of $54,000,000, or about the same as at the close of the previous dayi
Further income tax collections on the 17th have reduced the
Treasury overdraft somewhat further, but the special one-day certificate
will continue rather large until the period of December 21-23, when 6
total of $257,000,000 will be withdrawn from Government depositaries
throughout the country, representing 37 per cent of the deposit credit
arising from the new Treasury issues floated on December 15. In fact,
it is not expected that the special one-day certificate will be termin
ated until the 23rd.
Money rates have shown little variation during the past week.
The exception has been the quotation for federal funds, which naturally
has eased as a reflection of the excess of bank reserves created by the
Treasury turnover. Beginning at 2 1/2 - 2 3/4 per cent on the 10th,
this rate declined to 1 1/2 - 1 3/4 per cent on the 14th, and to 1/2 3/4 per cent on the 16th, but was a trifle higher at 3/4 - 1 per cent
before the close of the 17th. Call money has been 2 1/2 per cent on the
Stock Exchange, ana generally at that rate in the outside market. Time
money, bills, and commercial paper likewise have been unchanged at
levels previously current* Yields on short-term United States Govern
ment securities advanced somewhat further until the 15th, but sub
sequently have eased somewhat#
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
vveminent
Security
Market
$
2 3/4$
1 1/8%
3 ^ dj0
5*1/4$
3
During the greater part of the current statement week the market for United States Government securities was very weak. Following
the allotment by the Treasury of the new issues of Treasury certificates
and notes, a substantial amount of the new issues of 3 per cent Treasury
ceriticates due September 15, 1932, and 3 1/4 per cent Treasury notes
maturing December 15, 1932, came on the market and sold at a discount of
about half a point. Short issues, including March and June certificates
and Treasury bill issues were in demand. At the close of the reporting
period the average yield on short-term issues, at dealers* offering
prices, was about 2 1/2 per cent as compared with 2 1/8 per cent at the
close of the previous week, and the average selling price for the
Liberty Loan and Treasury bonds was 96.34 as comparrd with the previous
we e k ’
s average closing price of 97.35.
Dealers’Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Prrvious Statement Week
Net
Approx.
issue
Yield
Price
Change
100 1/32
-2/32
1 .86 $
Cert, of Ind. due M a rch 15, 1932
"
"
"
June 15, 1932
100 2/32
+2/32
2.62 $
3.44$
” ” "
Sept. 15, 1932
98 10/32
-6/32
t»
«
tt
99 24/32
-8/32
3.34$
Sept. 15, 1932
3.50$
Treasury Notes w Dec. 15, 1932
99 24/32
-8/32
asked)
Treasury Bills w Dec. 30, 1931 - 1^75$ discount bid, 1
"
"
" Jan. 13 and
$
25, 1932 - 2
1
$
1 1/4$
$
Feb.
1, 1932 - 2
nominal
1 1/ 2$
8, 1932 - 2
$
tf
15, 1932 - 2 1/4$
1 1/ 2 $
tr
24 and
1 3/4$
Mar,
2, 193# - 2 1/4 $
Issue
1st 3 l/2s
1st 4 1/4s
4th 4 l/4s
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Glose of the Previous Statement W ee k
Net
Net
Cha nge
Price
Price
Ghange
Issue
102 5/32
-1. 7'/32
98 fi/32 -1. 6/32 'j-reeis, 4 l/4s 1947-52
tf
4s
1944-54
- 10/32
100 5/32
100 1/22 - 16/32
tt
97 10/32
- 30/32
100 5/32 - 24/32
3 3/4s 1946-56
tt
94 20/32
3 3/8s 1943-47
-1.12/32
tt
94 20/32
-1. 8/32
3 3/8s 1940-43
tt
94 12/32
3 3/8s 1941-43
♦1.16/32
tr
3 1/8s 1946-49
90 6/32
-1.
tt
87 31/32
3s
1951-55
-1. 1/32
Bankers
Acceptances
Dealers' offering of unendorsed bankers acceptances continued
at the following rates during the current statement week; 3 per cent for
30s, 60s, 90s and 120s, and 3 5/8 per cent for 180-day bills.
Reports
week
ending
Dec. 16
Boston reported that the supply of bills increased considerably
in its district during the past week. The demand was light showing only
a slight increase over the previous period and dealers shipped nearly
$4,500,000 of the surplus bills to their offices in other cities. In
New York the bill market was slightly more active this week. Dealers’
purchases about equaled their sales, the major portion of which were to
the reserve bank for account of foreign correspondents. Consequently
dealers’portfolios remained at a comfortable level and rates continued
steady. Philadelphia reported that its acceptance market was quiet and
without change. There were few new bills coming out with the demand
decreasing. Dealers reported portfolios slightly lower. Chicago
reported that the bill market in its district wss very dull (Turing the
past week while Dallas reported that the demand from member banks in
creased slightly*
------
1
.. . . . . . . .
i ii
ii i mi
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
4
OPERATIONS FOR ACCOUNT 0? UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Sales of
$ 25,000 - 3
$ Treasury bonds
German Special
250,000_- 4 1/4$ Fourth Liberty
________
Alien Property
$275,000 - Total Sales
of 1951-55, account
Deposit Account
Loan bonds, account
Custodian
and purchases of $ 72,950 - 3 3/8$ Treasury bonds of 1941-43, account
General Railroad Contingent Fund.
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week the following transactions were effected
iivthe System Account:
Redemption on December 15 In New York - $12,224,500 - 1 7/8$ certificates maturing Dec, 15, 1931
w "
"
807,250 - 3 1/2$ Treasury notes called Dec. 15, 1931
” Chicago
12,520,000 - 1 7/8$ certificates maturing Dsc, 15, 1931
Total redemptionscff25,551,750 which were replaced by purchase
in the New York
market of
#20, 051,500 - 3
$ certificates due Sept, 15, 1932
5,500,000 - 3 1/4$ Treasury notes ^ Dec, 15, 1932
250 - 4 1/4$ Fourth Liberty Loan bonds
$25,551,750
Exchanges effected
in the New York
market at advantag
eous rates, of
$25,000,000
1.000.000
10.000.000
48,500,000
a total of
$84,500,000
$43 ,500,000
36.000.000
5.000.000
$84,500,000
- 1 7/8$ certificates due
- Treasury bills
"
"
*
«
- 2
$ certificates "
exchanged for
— 2 3/4$ certificates due
- 3
$
"
*1
- 3 1/4$ Treasury notes w
Dec*
Jan*
Feb*
Mar,
15,
13,
24,
15,
1931
1932
1932
1932
June 15, 1932
Sept.15, 1932
Dec. -15, 1932
Of the above listed replacement purchases, delivery was deferred from
December 15 to December 16 of $45,000,000 to partly offset the large amount of ex
cess funds in the market incidental to the Treasury tax period operations, as pre
viously mentioned in this report. This action temporarily reduced the amount of
total holdings in the System Account on December 15 to $478,916,500 and on Wednesday,
Deconber 16, the amount of total holdings was restored to $524,468,000. The par
ticipations by Federal reserve banks and the classification of issues held in the
Account at the close of the statement week were as follows:
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
5
jurfTICIPATIQNS BY FEDERAL RESERVE BANKS
Boston
% 56,117,500
New York
109,894,000
47,492,000
Philadelphia
Cleveland
62,951,000
27,405,500
Richmond
14,646,500
Atlanta
Chicago
77,879,000
26,851,000
St. Louis
20,273,000
Minneapolis
18,875,000
Kansas City
17,632,000
Dallas
San Francisco
44,451,500
RECAPITULATION OF HbLDINGS BY MATURITIES
Dec. 30, 1931-Treasury Bills-# 12,652,000
tt
tt
2 ,000 i 000
Jan. 13, 1932*
»
M
w 25, 193218,000,000
n
tt
22,725,000
Feb. 0, 1932H
M
tf
7,111,000
15, 1932tt
tt
f»
8,957,000
24, 1932»
ft
18,925,000
Mar. 2, 1932n
58,731,500
2
193815,
a c/i
43,500,000
June 15, 1932- 2 3/4$ "
53,500,000
Sept. 15, 1932- 1 1/8% "
n 15, 1932- 3
56,051,500
% "
10,500,000
Dec. 15, 1932- 3 1/4% T/N
June 15, 1947- 3 1/2% 1st L/L 80,025,000
tt 15, 1947- 4 1/4% 1st "
16,750,000
Oct, 15, 1938- 4 1/4$ 4th » 115,040,000
#524,468,000
#524,468,000
Totals
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
___________________ FROM DECEMBER 10 TO DECEMBER 16, 1931, INCLUSIVE________________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Purchases
$ 11,775,500
23,059,750
9,966,000
13,209,000
5,750,500
3,073,000
16,341,500
5,634,000
4,254,000
3,961,000
3,700,000
9,327,500
#110,051,750
Sales
#' 11,775,500
23,059,750
9,966,000
13,209,000
5,750,500
3,073,000
16,341,500
5,634,000
4,254,000
3,961,000
3,700,000
9,327,500
#110,051,750
GOVERNMENT SECURITIES - SALES CONTRACTS
- N O N E OTHER TRANSACTIONS
PURCHASE
Purchases
Boston
|
45,000
New York
17,684,000
Phila.
Atlanta
Chicago
St.Louis
Minn.
Dallas.
San Fran.
Totals
IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS AND
OF SPECIAL ONE-DAY CERTIFICATE OF INIEBTEIN3SS)
Issue
Redeemed
Issue
Sales
Dec. 15/32 T/N $
0
1
0
Misc. Govt. Sec. 7,477,000 Ctfs. 10,000,250 Mi sc. Gov t. Sec.
207,000 Notes
0
0
3,400,000 "
74,500 Misc. Govt. Sec. 2,408,000* "
93,000 Misc. Govt. Sec.
0
220,000 Ctfs.
0
0
3,500,000 Notes
0
1,024,000 Misc. Govt. Sec.
892,000 Misc. Govt. Sec.
0
0
0
3,500 Tr.Bds 1947 -52
10,000,000** Misc. Tr. Bills 9,625,050#Notes
0
#28,827,500
**Purchased in New York.
#26,837,050
$10,988,750
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»Q« VffiSfr
6
Hold
ings
Dec. 9
$ 38,341
85,473
BANKERS ACCEPTANCES
(000 Omitted)
Maturities
and Sales
Hold
Held
By Allot• Held
ings
ment from
in
Else
Dec. 16
New York N. Y.
where
$ 8,615 $ 51,571
$ 585
0
66,764
20,005
0
Other Holdings
Close Dec.Ip/51
Sales
Con Other
tracts Bills
2,523
$ 987
5,164 10,972
Pur
chased
Own Mkt.
Boston
$1,260 R.
New York
1,296*"
2,82 5 A •
5,550
0
Phila.
54
2,221
0
1,066
1,101
0
5,586
0
11,257
7,458
18,675
0
Cleve.
0
0
1,541
8,859
0
0
284
Richmond
11,314
5,009
250 R.
1,855
Atlanta
16,119
0
1,695
22,560
5,402
424 ”
250
4,541
57,766
8,600
0
65,671
0
695
Chicago
0
1,103
St. Louis
289
10,451
0
14,718
0
4,556
0
9,122
725
0
Minn.
0
168
4,104
0
-13,058
972
Kan. City
15,006
0
4,952
0
19,656
0
502
1,004
Dallas
6,605
0
1,565
0
7,970
0
0
2,279
55,816
0
40,529
7,457
San Fran.
474
250 "
0
§340,186 $6,305
$2,825 $44,459 $55,835 $268,197 $4,151 $34,029
Totals
Balls held over night by New York £or distribution to other Fed. Res . fiks.
134
u
u
if n
”
Foreign Suspense Account - - - •- _ 565
$54,729
*Includes $215 purchased from foreign correspondent
NOTE: R. indicates Retained and A. indicates Allotted in above statement*
MATURITIES AND RATES ON BILLS PURCHASED V/EEK ENDED DECEMBER 16, 1931
(000 Omitted)
Boston
New York
Richmond
Atlanta
San Francisco
1-50 days
5%
#195
497
25*
45
0
51-60 days
3 to 3 1/8#
$1,065
2,893
50
338
220
Totals
$760
<jf4,566
61-90 days
3 1/8$
0
731
175
43
30
$979
Over 90-•days
0
0
0
0
0
0
Total
$ 1,260
4,121
250
424
250
0
$ 6,305
*Purchased at 5 l/8£
RECAPITULATION I I PURCHASES AND SALTS OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDED DECEMBER 16,1951
^qqq omitted)
(Excluding Sales Contracts and Special One-day Cert, of Ind.)
Purchased
Sold
Matured
Government
Securities
$138,879
95,489
52,589
To tals
&
8,999-
Bankers
Acceptances
$ 6,305
0
78,294
$71,9891,019- (Net Ghange
______1-day holdover
and other bills)
$73,008-
To tal
$145,184
95,489
150,683
$ 30,9881,019- (Nf»t Change
________ 1-day holdover
$ 82,007-
and other bills'
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0« VTR^*
HOLDINGS Off GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED DECEMBER 16 >1931
(000 Omitted)
(Including Sales Contracts and Special One-day Cert, of Ind.)
Within
15-days
"rov't Securities $ 13,152
Bills Purchased
159,861
To tals
$173,013
16-30
days
31-60
days
$ 2,000
87,580
$61,175
29,226
$89,580
$90,401
61-90
days
91 days6 months
Over 6
months
$125,773
29,704
$43,500
706
$462,594 $
0
$155,477
$44,206
$462,594 $1,015,271
Total
708,194
307,077
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0«
December 12, 1931.
Mr# tf* B* Matteson,
Assistant Depfcby Governor,
Federal Heservl Bank,
lew Yo*k City, H* Y#
Dear Mr# llattesont
Reoeipt is acknowledged of you* letter of Deoeaber 11,
addressed to Governor Moyer, enclosing report of transactions
in Governpfcnt securities and bankers1 acceptances as reported
jf''
to your committee for the period from Deoeaiber 9# 1081 to
December 9, 19S1*
Your letter is being brought to the attention of the
Federal Hetenre Board#
Very truly yours,
E* M* MoClelland,
Assistant Secretary*
EMM/rkt
I
FBLE COPY
Reproduced from the Unclassified / Declassified Holdings of the National Archives
”
i*
*- '
DECLASSIFIED
Authority £ , Q«
For
Gov. Meyer
(mum ,.
^
Mr. Hamlin.
F e d e ra l R e s e rv e B a n k
Mr. James
of
Ne w Yo r k
Mr. Megee
Mr. Miller..
Mr. Pole_rt
Mr.
Mr.
Please note - initial anrl
FtfcUini tO b O B fO tu M ii u i itvw»
/
December 11, 1931*
CONFIDENTIAL
Dear Governor Meyer:
Enclosed is a report of open market operations
for the period from December S, 1931 to December 9, 1931
inclusive, together with data received from Federal re
serve banks.
B. Matteson
Assistant Deputy Governor
W.
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
BEGEW EB
r-rn
l?.
1931
OFFICE! O F
<Xj
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0« \7RS9*
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED DECmiBER 9, 1951
Holdings of Earning Assets of Federal Reserve Benks from December 10, 1930 to pate
(OQO Omitted)
UJ-J-JXJkJ
BARN M G
ASSETS
$1,117,905
1,351,853
-1930Dec . 10
V
31
-1931Jan. 28
945,405
Feb. 25
895,606
Mar, 25
847,256
Apr. 29
'923,572
May
876,489
27
June 24
947,334
July 29
934,795
26
1,156,636
-Sept. 30
1,557,970
Oct. 28
2,198,238
N o v . 35
1,925,509
2
Dec.
1,888,227
Tt
9 ■1,861,566
Outright
Purchases
| 604,003
686,064
609,877
599,442
598,459
598,306
598,368
618,503
677,977
727,998
738,455
726,959
727,101
717,021
717,193
Sales
Contracts
§13,000
43,403
0
0
100
0
0
0
0
0
3,890
0
0
0
0
Outright
purchases
§223,407
324,746
118,453
105,431
83,372
133,949
121,210
103,164
62,909
179,476
449,022
723,262
479,225
419,675
375,934
Sales
Contracts
$20,290
39,098
DISCOUNTED
$257,097
251,398
1,788
886
0
35,816
3 ,.291
3,226
3,627
1,042
19,505
1,418
573
3,732
13,285
215,137
189,847
165,425
155,151
152,852
197,678
183,036
241,718
327,925
716,680
686,401
717,567
725,182
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
____________________ DURING WEEK M D $ D DECEMBER 9, 1951____________
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
Dec. 9
Change
Boston
$ 0
& 56,807
New York
236,233
0
Philadelphia
57,497
0
Cleveland
62,951
0
Richmond
27,406
0
Atlanta
17,209
54Chicago
220+
99,697
St. Louis
30,851
0
Minneapolis
27,870
2+
18,959
Kansas City
0
27,636
4+
Dallas
54,077
0
San Francisco
N« Y. holdovers
and other bills
Totals
$717,193
$172+
BANKERS ACCEPTANCES
Balance
Nrt
De c , 9
Ghange
«„> cQ,«i'41
$ 7,12385,473
6,8512,231
1118,675
4,84811,314
1,70722,560
3,53865,671
6,2703,53114,718
1,18113,058
3,41119,656
2,0777,970
3,29940,529
35,748
105+
$375,934
$43,741-
BILLS DISCOUNTED
Net
Balance
Dec. 9
Change
$ 29,312
$3,68315,454+
137,258
104,703
1,787+
106,529
7,088+
3,48236,266
54,081
4,01789,499
3,586+
329+
26,863
8,092
1471,60128,331
12120,951
7,57883,297
$725,182
$7,615+
COMMENT ON CHANGES WEEK ENDED DECEMBER 9, 1931
Total earning assets of the System showed a decrease of $>26,661,000
for the current statement week* The changes by classification consisted of in
creases of $172,000 in outright purchases of government securities, §9,553,000
in bankers acceptances held under sales contracts, and $7,615,000 in bills dis
counted and a decrease of $43,741,000 in outright purchases of bankers acceptances.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
E»0« VffiSfr
2
Money
Market
Chiefly as a result of an increase of $31,000,000 in member
bank borrowings, the reserves of the Nev; York City banks were raised to
a lrvel of $8,000,000 above requirements on Thursday, December 3. Sub
sequently these additional borrowings were retired and at the close of
the week bank reserves were still $10,000,000 in excess, compared with
a deficit of $21,000,000 on the preceding Wednesday, The change in the
reserve position between these two dates was the combined result of an
increase of $13,000,000 in reserve balances maintained by the banks and
of a drop of $18,000,000 in their reserve requirements from the compara
tively high figure prevailing around the first of the month.
The factors contributing to the repayment of member bank in
debtedness incurred on December 3 and to the moderate net increase in
-reserve balances for the week were an inflow of funds to this market
from other parts of the country, a net retirement of outstanding cur
rency, net gold imports and releases from earmark, and a moderately
large reduction in foreign balances held at the Reserve B^nk, the latter
reflecting principally payments made to the market for bills purchased
for foreign central bank account, the total of which increased
$34,000,000 during the week. The combined gain of funds to the
market was in excess of losses occasioned by a further net reduction
in Federal Reserve bill holdings and by a net withdrawal of Treasury
funds from this district*
The rate for call money on the Stock Exchange remained at
2 1/2 per cent throughout the week, but some calling of loans was report
ed toward the end of the period, and on Thursday, the 10th, offerings at
the 2 1/2 per cent rate on the Exchange were reduced to a much smaller
amount than previously, and in fact it was intimated that some overnight
loans had been arranged at 3 per cent though the official rate remained
at 2 1/2 per cent. In the outside market, likewise, offerings at below
the Exchange rate have ceased to be reported. These minor evidences of
firmer rates apparently reflect the approach of the holiday and year-end
period. The federal funds quotation rose to 3 - 3 1/4 per cent by
December 4 and remained at that figure until the 9th, when a 2 1/2 2 3/4 per cent rate was quoted. No change occurred in the time money
market which was entirely nominal at bid and asked rates of 3 and 3 1/2
per cent. Similarly, bill and commercial paper rates were steady, while
yields on short-term United States Government securities advanced some
what further.
Government
Security
Market
Immediately following the announcement of the T reasuryfs
financing for December 15, the market for United States Government bonds
was slightly better but on the two succeeding days this condition changed
and considerable weakness developed* especially for the long-term Treas
ury bonds, accompanied by a sharp drop in prices which resulted in losses
for the week of from one to three points. The market for the short-term
Treasury issues was quiet and prices-of the two outstanding issues of
certificates maturing next March and September were adjusted to yields
more in line with the rates of current offerings. At the close of the
reporting period, the average yield on the short-term issues, at
dealers1 offering prices, was about 2 1/8 per ccnt as compared with 1,80
per cent at the close of the previous week, and the average selling
price for the Liberty Loan and Treasury bonds was 97,35 as compared
with the previous w e e k ’s average closing price of 98,63.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
'
Authority £»0«
Dealel4#* Offering Prices at the Close of the Current Statement W eek
a n d f e t Changes from the Close of the Previous Statement Week
Issue
2
# Cert, of Ind. due Mar. 15, 1932
1 1/8# "
" "
" Sept. 15, 1932
Treasury Bills maturing Dec.
Jan.
*
tt
"
«
n
»
Feb.
"
«
tt
n
"
»♦
»
w
"
tt
»t
n
Mar.
30 &
13-2
25-2
1 &
8 - 2
15-2
24-2
2 - 2
Approx.
Net
Change
- 1/32
-16/32
Price
99 31/32
98 16/32
Yield
2 . 11 $
3.12#
1/2# discount bid, 1 1/2# asked
w
1 3/4#
1/2#
"
1/2#
1/2#
1/2#
1/2#
*
”
"
"
«
m
n
tt
2
#
2.05#
2.15#
2.20#
»
n
w
Closing Prices on the New Y o r k Stock Exchange at the Close
of the Current Statement W e e k and Net Changes from
Close of the Previous Statement Week
Issue
1st 3 l/2s
1st 4 l/4s
4th 4 l/4s
Price
99 12/32
100 17/32
100 29/32
Net
Change
-17/32
- 5/32
+ 1/32
Issue
Treasury 4 l/4s
"
4s
"
3 3/4s
"
3 3/8s
"
3 3/8s
"
3 3/8s
"
3 l/8s
"
3s
1947-52
1944-54
1946-56
1943-47
1940-43
1941-43
1946-49
1951-55
Price
103 12/32
100 15/32
98 8/32
96
95 28/32
95 28/32
91 6/32
89
Net
Change
-1. 9/32
- 30/32
-1. 3/32
-1.16/32
-1.20/32
-1.19/32
-2*15/32
-2.30/32
Bankers
Acceptances
Dealers’offerings of unendorsed bankers acceptances continued
at the following rates during the current statement weeks 3 per cent
for 30s, 60s, 90s and 120s, and 3 5/8 per cent for 180-day bills.
Reports
week
ending
Dec. 9
Boston reported that the local bill market was rather quiet
during the past period. While the supply decreased somewhat, it was
still more than sufficient to meet the small local demand, as a result
of which dealers forwarded their excess offerings to other cities.
In
New Y ork the volume of bills handled by dealers was about the same as
last week.
Dealers* sales to the outside market fell off considerably
but their sales to the reserve bank for the account of foreign corres
pondents increased materially.
Their purchases, however, continued
to exceed their sales slightly and aggregate portfolios increased by
about #10,000,000 to $37,000,000. Rates unchanged. Philadelphia reported that its acceptance market was less active. The supply of new
bills was somewhat limited with little outside demand, dealers showing
a tendency to increase rates. Chicago reported that the acceptance
market in its district continued very quiet. The demand was limited to
short maturities and very few bills were offered. Dallas reported that
the demand for bills from member bank's continued fair.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0»
4
OPERATIONS FOB ACCOUNT OF UN I T E D STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Purchases of $ 8,160,000 - 3 3/8$ Treasury Bonds 1940-43)
5.715.000 - 3 3/8$
"
* 1941-43)
3.425.000 - 3 3/8$
**
w 1943-47)
account
Sinking
Fund
$11,300,000 - Total Purchases
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement 7/eek the following exchanges were effected
in the market at advantageous r a t e s j
#1,000,000 - 1 7/8$ certificates due Dec. 15, 1931
1.500.000 - 2
$
»
* Mar. 15, 1932
a total of
#3, 500,000 exchanged for
$1,000,000 - Treasury Bills due Jan. 13* 1932
1.500.000
w
*
'* liar. 2, 1932
1,000,000 - 4 1/4$ First Libdrty Loan bonds
$3,500,000
These transactions did not affect the &taount of total holdings in the
System Account which remained at $524,468,000.
Thte participations by Federal
reserve banks and the classification of issues held
i% the
Account at the close of
business Wednesday, December 9, 1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Bpston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chic age?
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
t
Totals
% 56,117,500
109,894,000
47,492,000
62,951,000
27,405,500
14,646,500
77,879,000
£6,851,000
20,273,000
18,875,000
17;632,000
44,451,500
$524,468,000
RECAPITULATION £>F HOLDINGS BY MATURITIES
Dec. 30,
Jan. 13,
n
25,
Feb. 8,
*
15,
«
24,
Mar. 2,
D^c. 15,
Mar. 15,
§ept.l5,
Dec. 15,
June 15,
♦»
15,
Oct. 15,
1931-Treaiury Bills $ 12,652,000
w
♦»
19323,000,000
w
193218,000,000
«
tt
193222,725,000
w
«
19327,111,000
It
193218,957,000
tt
n
193218,925,000
1931- 1 7/8$ c / i
49,744,500
1932- 2
107,231,500
*
1932- 1 1/8$ *
93,500,000
1931- 3 1/2$ t / &
807,250
1947- 3 1/2$ 1st l / l
80,025,000
1947- 4 1/4$ 1st «
16,750,000
1938- 4 1/4$ 4th "
U S , 139,750
$5*4,468,000
--------- ^a=rr-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0*
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES A N D BANKERS ACCEPTANCES
AFFECTING THE INVESTI'.'ENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
FROM DECEMBER 5 TO DECEMBER 9, 1951, INCLUSIVE
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
- Kansas City
Dallas
San Francisco
Totals
$
Purchases
374,.500
733,500
317,000
420,000
183,500
98,000
519,500
178,500
135,000
126,000
117 ,.500
297,000
$
Sales
374,500
733,500
317,000
420 >000
183,500
98,000
519,500
178,500
135,000
126,000
117,500
297,000
$3,500,000
#3,500,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
New York
Atlanta
Chicago
Minneapolis
Dallas
Totals
Purchases
$850,000
104,300
220,000
391,400
3,500
Issue
1st 4 1/4$ L/L B d s .
t Sec.
Mi sc . G o v ’
Dec. 15/31 C/I
Mi sc . G o v ’
t Sec.
Tr. Bds. 1947/52
Sales
$250,000
158,550
0
389,250
0
Issue
Mar. 2/32 Tr. Bills
Misc. G o v ’
t Sec.
Misc. G o v ’
t Sec.
$797,800
$969,200
BANKERS ACCEPTANCES
OOO Omitted)
Maturities
and Sales
Hold
Ho l d
Pur
By Allot Held
Held
ment frcm
in
Else
ings
chased
ings
Dec. 9
where
Dec. 2
Own M k t . New York N. Y.
$ 8 *6 1 6
$ 0
Boston
$ 38,341
530 H $ 964
$ 45,463 $
85,473
New York
0
10,483
92,324
3,632 R
0
6,910 A
0
0
2,232
0
Phila.
11
2,221
0
4,848
18,675
0
Cleve.
23,523
0
100
11,314
2,492
175 R
710
Rich.
13,021
Atlanta
628
22,560
26,098
305 R
540
3*755
Chicago
65,671
1,746
25 R
0
71,941
8,041
707
0
0
14,718
18,249
4 ,.238
St. Louis
13,058
Minn.
0
389
1,570
14,239
0
Kan. City
0
19,656
23,067
0
735
4,146
10,047
0
0
13
7,970
Dallas
2,064
San Fran.
0
1,119
0
4,418
43,828
40,529
$6,910
$28,748 $26,675 $340,186
Totals
$384,032 $11,577
Bills held over night by New York for distribution to other Fed. Res.
ft
n
tt
tt
tt
n
n in Foreign Suspense Account - - - Total -
Other Holdings
Close Dec, 9/31
Sales
Other
Con
tracts Bills
$
433 $ 2,523
12,230 10,978
0
0
0
0
0
0
0
0
0
3,530
3,386
1,341
1,880
4,541
1,103
723
972
1,004
622
2,279
$13,285 $34,060
348
Bks. - _
- ■ 1,340
-$35,748
The F# R. B. Richmond resumed participation in bill purchases on Dec. 3.
NOTE: R. indicates Retained and A. indicates Allotted in the above statement.
DECLASSIFIED
Authority £»0«
6
MATURITIES A N D RATES ON BILLS PURCHASED WEEK ENDED DECEMBER 9, 1931
(000 Omitted)
1-50 days
’ifjo
Boston
New York
Richmond
Atlanta
Chicago
$
Totals
51-60 days
5-5 1/8$
20
4,145
0
65
25
$
$4,255
61-90 days
3 1/8 $
210
5,944
0
165
0
$
$4,517
Over 90-days
0
500
2,455
175
77*
0
$5,005
Total
0
0
0
0
0
$
0
$11,577
550
10,542
175
505
25
*Furchased at 3 to 3 1/8%
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDED DECEMBER 9, 1951
(OOO Omitted)
(Excluding Sales Contracts)
Gov eminent
Securities
Purchased
Sold
Matured
Totals
$4,469
4,297
0
v
172+
Bankers
Acceptanc es
Total
$11,577
0
55,423
$43,846—
105+ (Net Ghange.
1-day holdover
and other bills)
$ 4 5 , 741-
$16,046
4,297
55,425
$45,674105+ (Net Ghange
1-day holdover
and other bills)
$45,569+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED D E C M B E R 9,1951
(000 Omitted)
(Including Sales Contracts)
Within
15-days
16-30
days
31-60
days
61-90
days
91 days6 months
Over 6
months
G o v ’t Securities $ 72,392 $ 13,152 v 25,950 $112,704 $111,794 §383,201 $
0
678
Bills Purchased
186,126 126,242 56,204
19,969
Totals
Total
717,193
589,219
#258,518 $139,394 $80,154 §132,675 $112,472 $385,201 $1,106,412
- '
-
' '’
••.'HI. . J.
Ml...............I
I ll.W
ll. I .1
. , . II ■ !_ . I
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« f f l S ?
D ecem ber 8 , 1 9 3 1 .
M r. W. B . M a tte s o n ,
A s s i s t a n t D ep uty G o v o rn o r,
F e d e ra l R eserve Bank,
New Y o r k , N. Y .
D e a r M r. M a tte s o n :
B e e e ip t i s a ck n o w led g ed o f y o u r l e t t e r o f Decem
b e r 4 , a d d r e s s e d t o G o v ern o r M e y e r, e n c l o s i n g r e p o r t o f
t r a n s a c t i o n s i n Governm ent s e c u r i t i e s and b a n k e rs*
a c c e p t a n c e s a s r e p o r t e d t o y o u r c o n sn itte e f o r th e p e r io d
from Novem ber 2 7 , 1 9 3 1 , t o Decem ber 2 , 1 9 3 1 , i n c l u s i v e .
The r e p o r t i s b e in g b r o u g h t t o t h e a t t e n t i o n o f
t h e members o f t h e B o a rd .
V ery t r u l y y o u r s ,
■v
*
v-‘
••
■/
*
-
• • - , . . * *
'
K . M* M c C le lla n d ,
A s s is ta n t S e c r e ta r y .
EMM/acw
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0*
Fe d e r a l R e s e r v e B a n k
o f N ew Y o rk
CONFIDENTIAL
December 4, 1931.
Dear Governor Meyers
Enclosed is a report of open market operations for
the period from November 27, 1931 to December 2, 1931 inclu-
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
^
Encl.
For CIRCptATIOS
Gov. Meyer
Mr. Hamlin.
Mr. James
Mr. Magee...
Mr. Miller.
Mr. Pole-,
Mr.
Phase note; InilM and
Betiam Io Secretary's Office
DECLASSIFIED
Authority £ »0«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED DECEMBER 2, 1931
Holdings of Earning Assets of Federal Reserve Bonks from December 5, 1930 to pate
( 0 0 0 Omitted)
-1 9 5 C
)-
Dec •
tf
TOTAL
EARNING
ASSETS
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
5
$ 1 ,0 7 8 ,4 1 4
£ 6 0 2 ,1 9 2
51
1 ,5 5 1 ,8 5 3
6 8 6 ,0 6 4
4
o
4 3 ,4 0 3
BANKERS ACCEPTANCES
Outright
Sales
Purchases
Contracts
BILLS
DISCOUNTED
$ 2 0 3 ,3 5 9
$ 1 5 ,5 7 8
$ 2 5 0 ,9 2 7
3 2 4 ,7 4 6
5 9 ,0 9 8
2 5 1 ,5 9 8
-1 9 5 1 -
Jan. 2 8
Feb. 2 5
Mar. 2 5
Apr. 2 9
May
27
June 2 4
July 2 9
Aug. 26
S6pt. 5 0
u c t . 28
Nov. 2 5
Dec.
2
„
9 4 5 ,4 0 5
6 0 9 ,8 7 7
0
1 1 8 ,4 5 3
1 ,7 8 8
2 1 5 ,1 5 7
8 9 5 ,6 0 6
5 9 9 ,4 4 2
0
1 0 5 ,4 3 1
886
1 8 9 ,8 4 7
8 4 7 ,2 5 6
5 9 8 ,4 5 9
9 2 3 ,5 7 2
5 9 8 ,3 0 6
0
1 3 5 ,9 4 9
5 5 ,8 1 6
8 7 6 ,4 8 9
5 9 8 ,3 6 8
0
1 2 1 ,2 1 0
5 ,8 9 1
1 5 2 ,8 5 2
9 4 7 ,3 3 4
6 1 8 ,5 0 3
0
1 0 5 ,1 6 4
5 ,2 2 6
1 9 7 ,6 7 8
1 8 5 ,0 5 6
1 6 5 ,4 2 5
0
8 3 ,2 7 2
100
1 5 5 ,1 5 1
9 3 4 ,7 9 5
6 7 7 ,9 7 7
0
6 2 ,9 0 9
3 ,6 2 7
1 ,1 5 6 ,6 3 6
7 2 7 ,9 9 8
0
1 7 9 ,4 7 6
1 ,0 4 2
2 4 1 ,7 1 8
1 ,5 5 7 ,9 7 0
7 3 8 ,4 5 5
4 4 9 ,0 2 2
19,505
5 2 7 ,9 2 5
3 ,8 9 0
2 ,1 9 8 ,2 3 8
7 2 6 ,9 59
0
7 2 5 ,2 6 2
1 ,4 1 8
7 1 6 ,6 8 0
1 ,9 2 5 ,5 0 9
7 2 7 ,1 0 1
0
4 7 9 ,2 2 5
573
'6 8 6 ,4 0 1
1 ,8 8 8 ,2 2 7
7 1 7 ,0 2 1
0
4 1 9 ,6 7 5
5,752
7 1 7 ,5 6 7
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
_______DURING wEEK ENDED DECMIBER 2, 1951______________
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
Ghange
Dec. 2
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
9
5 6 ,8 0 7
2 5 6 ,2 5 5
$
27 05 ,9 9 7 -
BANKERS ACCEPTANCES
BILLS DISCOUNTED
Net
Net
Balance
Balance
Ghange
Change . D e c . 2
Dec. 2
§
4 5 ,4 6 5
9 2 ,5 2 4
$
7 ,5 4 9 -
$
3 2 ,9 9 5
$
154+
1 9 ,1 0 7 -
1 2 1 ,8 0 4
5 ,0 4 9 +
5 7 ,4 9 7
5 0 7 -
2 ,2 5 2
20 8-
1 0 2 ,9 1 6
6 ,5 4 7 -
6 2 ,9 5 1
1 0 ,0 0 0 -
2 5 ,5 2 3
4 ,7 1 4 -
9 9 ,4 4 1
6 ,0 1 0 +
1 5 ,0 2 1
1 ,7 8 7 -
5 9 ,7 4 8
357+
2 6 ,0 9 8
1 ,1 8 4 -
5 8 ,0 9 8
8 ,5 7 8 +
2 7 ,4 0 6
0
1 7 ,2 6 5
56+
9 9 ,4 7 7
50 5-
7 1 ,9 4 1
8 ,6 4 7 -
8 5 ,9 1 5
1 7 ,1 1 0 +
5 0 ,8 5 1
117-
1 8 ,2 4 9
1 ,8 2 5 -
2 6 ,5 5 4
1 ,0 5 0 -
2 7 ,8 6 8
1 5 7 -
1 4 ,2 3 9
66 4-
8 ,2 3 9
286+
2 3 ,0 6 7
4 ,5 2 4 -
2 9 ,9 3 2
2 ,6 5 0 -
1 8 ,9 5 9
0
2 7 ,6 5 2
5 ,5 0 2 +
1 0 ,0 4 7
2 ,5 5 9 -
2 1 ,0 7 2
9 8 -
5 4 ,0 7 7
50 7-
4 3 ,8 2 8
5 ,8 2 6 -
9 0 ,8 7 5
5 ,9 4 7 +
3 5 ,6 4 5
1 ,1 5 8 -
$ 4 1 9 ,6 7 5
$ 5 9 ,5 5 0 -
$ 7 1 7 ,5 6 7
$ 5 1 ,1 6 6 +
$ 7 1 7 ,0 2 1
$ 1 0 ,0 8 0 -
COMMENT ON CHANGES WEEK ENDED DECEMBER 2 , 1 9 3 1
Total earning assets of the Systeia showed a decrease of $ 3 7 , 2 8 2 , 0 0 0 for
The changes by classification consisted of decreases
the current statement week.
of $10,080,000 in outright purchases of government securities, $59,550,000 in out
right purchases of bankers acceptances and .^1,977,000 in securities and increases
of $5,159,000 in bankers acceptances held under sales contracts and ^>51,166,000 in
bills discounted.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
2
Money
Market
In the first part of the past reporting week the New York City
banks retained some surplus of reserves due to a continued inflow of
funds frcm other centers which offset losses to the market occasioned by
maturities from the Reserve Banks* portfolio of purchased bills. At the
November month-end, however, a combination of the temporary earmarking
of gold and currency for Canadian bank account, a net loss to this market
in Treasury operations, and further Federal Reserve bill maturities ex
ceeded the inter-district inflow of funds to New York, with the result
that reserves dropped slightly below the required level. On Dscember 1,
the outflow of funds to other centers that usually occurs during the
early part of the month began, and there were further heavy maturities
of bills from System holdings.
The resulting loss of funds was about
offset by the release of the gold and currency earmarked for Canadian
account by New York City banks on the previous day, but some New York
banks found it necessary to borrow a moderate amount at the Reserve Bank
for the last day of the Saturday to Tuesday reserve period, raising re
serve balances above the required amount.
On the following day, December 2, an accelerated outflow of
funds to other districts, further Reserve Bank bill maturities, and the
repayment of member bank indebtedness incurred on the previous day re
duced bank reserves to a figure some $20,000,000 below requirements.
This compares with a surplus of $24,000,000 on the preceding Wednesday.
As a result of the deficit in reserves which developed on
December 2 and further losses of funds, including week-end currency re
quirements and transfers to other districts, indebtedness of the New
York City banks was increased by $31,000,000 on Thursday, December 3,
and $4,600,000 of bills were sold to the New York Reserve Bank for
System account by New York institutions. These bill purchases, which
represented the first offerings of any consequence since the latter part
of October, served to partly offset bill maturities on this day, and
takings from dealers under repurchase agreement served further to offset
maturities.
Rates in the New York money market were not materially changed
during the past week, with the exception of the federal funds quotation,
which moved up from 1 1/4 - 1 1/2 per cent on November 25 to 2 1/4 2 1/2 per cent by December 1, and to 2 3/4 - 3 per cent by December 3,
reflecting the change in the reserve position of the New York banks.
Stock Exchange call money remained at 2 1/2 per cent with some conces
sions offered in the outside market.
Quotations of 3 per cent bid,
3 1/2 per cent offered for all maturities of time loans again prevailed.
The amount of trading was negligible; the few loans placed - for 3 and
4 months - were at 3 1/4 per cent.
Open market bill rates have been
unchanged following the 1/4 per cent advance made on November 25 for
bills maturing within 90 days, and cctnmercial paper rates have been
steady at 3 3/4 - 4 per cent in a quiet market.
A further slight ad
vance has occurred in yields on short-term United States Government
securities.
Government
The market for United States Government securities continued
quiet during the current statement week. While there appeared to be no
Security
large amount of offerings and a small demand, prices for the short-term
Market
issues and the Liberty Loan bonds showed small recessions, and prices
for the long-term issues of Treasury bonds registered an average loss of
approximately three-quarters.of a point. At the close of the reporting
period, the average yield on the short-term issues at dealers* offering
prices was about 1,80 per cent as compared with 1.75 per cent at the
close of the previous period, and the average selling price for the
Liberty Loan and Treasury bonds was 98.63 as compared with the previous
week’
s average closing price of 99.18.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
•4
-
1
2
1
3
Authority £»0«
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Ghanges from the Close of the Previous Statement Week
Net
Approx,
Issue
Price
Change
Yield
7/8% Cert, of Ind. due Dec. 15, 1931 100' l/32
- - *
0.82f0
1.99 %
%
"
” "
” Mar. 15, 1932 100
-1/32
1/8%
"
M
"
" Sept. 15, 1932
96
-2/32
2*40$
1/2% Treasury Notes called for payment
0.37%
----Dec. 15, 1931 100 3/32
Treas .Bills maturing Dec. 3 0 - 2 1/2% discount bid, 1 1/2 % ask<
tf
tf
tr
tf
tt
Jan. 1 3 - 2 1/2%
1 1/2 %
n
♦»
t»
tr
tf
ti
tt
1 3/4 %
2 5 - 2 1/2%
tt
tr
tt
tt
ft
tt
2
%
Feb. 1 - 2 1/2%
tt
tt
tf
tt
tt
tt
tt
2.15%
8 - 2 1/2%
tf
tt
♦t
♦t
tt
ft
tf
1 5 - 2 1/2%
2,20 %
tt
«
»t
tt
tt
tt
tf
2.25%
2 4 - 2 1/2%
rr
t»
»f
ft
tf
tf
Mar, 2 - 2 1/2%
2.30%
Closing Prices on the New Y o r k Stock Exchange at the Close
of the Current Statement Week and Net Ghanges from
Glose of the Previous Statement Week
Net
Net
Cha nge
Issue
Price
Price
Change
Issue
1st 3 l/2s
S9 29/32 -1/32 Treas .4 l/4s 1947-52 104 21/32 - 20/32
V
1st 4 l/4s 100 22/32 -3/32
4s
1944-54 101 13/32 - 23/32
tt
4th 4 l/4s 100 28/32 -7/32
99 11/32 - 21/32
3 3/4s 1946-56
tf
97 16/32 - 23/52
3 3/8s 1943-47
tt
97 16/32 - 20/32
3 3/8s 1940-43
tf
97 15/32 - 24/32
3 3/8s 1941-43
tt
93 21/32 - 17/32
3 l/8s 1946-49
tf
91 30/32 -1. 2/32
3s
1951-55
Bonkers
Acceptances
Deal e r s ’offer ings of unendorsed bankers acceptances continue
at the following rates during the current statement week:
per cent for
30s, 60s, 90s and 120s, 3 5/8 per cent for 180-day bills.
Herorta
week
ending
Dec. 2
Boston reported that the demand for bills in its district during the past week was the smallest since the latter part of September.
with the decrease in the demand together with some good sized blocks of
new bills coming into the market, the supply was more than sufficient to
meet requirements. In New York the bill market was considerably more
active this week. The supply of bills increased over the month-end. The
demand also increased both from local and foreign buying but was exceeded
slightly by the supply and dealers* portfolios increased by about
^>7#000,000 to approximately & 2 7 ,000,000. Hates unchanged. Philadelphia
reported that its acceptance market was moderately active. The amount
of new bills held up fairly well and banks were inclined to hold rather
than dispose of bills. The demand showed o little improvement. Chicago
reported that there was a good demand for short bills with the supply
small. Dallas reported that the demand for bills from member banks
continued fairly good.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
A uthority £ «Q . \ 2 R S y
4
OPERATIONS K)R ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Purchases of $
299,200
550.000
825.000
4,175,000
-
4
3
3
3
1/4$ First Liberty Loan Bonds )
3/8$ Treasury Bonds of 1940-43)
3/8$
"
"
" 1941-43)
3/8$
"
"
" 1943-47)
~rc °.
* ^ ng
$5,849,200 - Total Purchases
SYSTEM SPECIAL INVESTMENT ACCOUNT * GOVERNMENT SECURITIES
During the current statement week the following transactions were con
summated affecting the maturities of the issues held in the Account:
Redemption on Nov. 30 of ^15,425,000 maturing Treasury Bills
which were replaced by purchase in the market of
^15,425,000 Treasury Bills due Mar. 2, 1932
Exchange in the market of $2,000,000 - 2$ certificates due Mar. 15, 1932 at 2.HX
for
2,000,000 - Treasury Bills due Mar. 2, 1932 at 2.55$
Changes in Participations
On Nov. 27 - Dallas repurchased the balance of $2,500,000 of
the $5,000,000 participation of which it was
temporarily relieved on Aug. 26.
On Dec. 1 - Dallas repurchased the $3,000,000 participation
of which it was temporarily rrlieved on Oct, 9.
These transactions did not affect the amount of total holdings in the
Account which remained at ^524,468,000.
The participations by Federal reserve
banks and the classification of issues held in the Account at the close of busi
ness Wednesday, Dec. 2, 1931, were as follows:
Totals
$>524,468,000
Dec.
Jan,
30,
13,
fl
25,
Feb.
8,
15,
ff
24,
Mar.
2,
Dec, 15,
Mar. 15,
Sept, 15,
D e c . 15,
June 15,
f»
15,
Oct. 15,
1931
1932
1932
1932
1932
1932
1932
1931
1932
1932
1931
1947
1947
1938
-
Treas.Bills
2
1
3
3
4
4
tf
ff
tr
it
f»
tf
ff
ff
ft
ft
tt
tf
CD
| 56,117,500
109,894,000
47,492,000
62,951,000
27,405,500
14,646,500
77,879,000
26,851,000
20,273,000
18,875,000
17,632,000
44,451,500
O'-*
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
RECAPITULATION OF HOLDINGS BY MATURITIES
t—1
PARTICIPATIONS BY FEDERAL RESERVE BANKS
$
1/8$
1/2$
1/2$
1/4$
1/4$
C/I
V
ft
T/N
1st
1st
4 th
$ 12,652,000
2,000,000
18,000,000
22,725,000
7,111,000
18,957,000
17,425,000
50 ,744 ,500
109,731,500
53,500,000
807,250
L/L 80,025,000
” 15,750,000
” 115,039,750
$524,468,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q. VSRSfr
xTEIIlZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES A N D BANKERS ACCEPTANCES
AFFECTING THE INVESTIZSNT ACCOUNT OF ALL FEDERAL RESERVE BANKS
FROM N0V3MS3R 27 TC DECEMBER 2 , 1931, INCLUSIVE
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
GOVERNMENT SECURITIES - SYSTEM 3 N V 3 S T I , A C C O U N T
Net
Redemptions
Decrease
and Sales
Purchases
£ 370,000
$ 1,864,500
$ 2,134,r500
3,997,000
3,751,000
7,748,000
1,578,000
307,000
1,885,000
2,091,500
0
2,091,500
0
910,500
910,500
0
486,500
486,500
3,090,000
502,500
2,587,500
116,500
1,008,500 ,
892,000
673,500
0
673,500
0
627,000
627,000
5,986,000
0
486,000
1,784,000
307,000
1,477,000
$22,925,000
$22,925,000
$5,500,000
Net
Increase
$
0
0
0
0
0
0
0
0
0
0
5,500,000
0
$5,500,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
New York
Cleveland
Atlanta
Minneapolis
Ikllas
Totals
Purchases
$5,163,000
0
126,650
284,650
2,100
$5,576,400
Issue
Mar. 2/32 Tr. Bills
Misc. Gov't Sec.
tt
tt
tt
• ft
tt
«
Redemptions
Issue
and Sales
$ 5,163,000 Nov. 30/31 T r . Bills
10,000,000* ” 30/31 "
M
70,300 Misc , G o v ft Sec.
tt
tt
421,650
"
0
$15,654,950
*Redeemed in New York.
B A M O R S ACCEPTANCES
(00C Omitted)
Other Holdings
Maturities
Close D e c . 2/31
and Sales
Hold
Held
Sales
Pur
By Allot Held
Hold
Other
Con
in
ings
ment from
Else
chased
ings
where
Dec.
2
Bills
tracts
N. Y.
N o v . 25
Own Mkt. New York
$ 2,523
$ 48
Boston
$ 7,597 $ 45,463 $ 347
§ 53,012 $ 0
* 0
10,976
19,162
0
92,324
3,385
New York
0
111,431
55 R.
0
312 A.
<7L n rz/^
0
0
208
2,232
0
Phila.
2,440
0
3,386
0
0
4,714
23,523
Cleve.
28,237
0
0
0
1,541
1,787
0
13,021
0
0
Rich.
14,808
26,098
0
169
1,717
60 R.
28
Atlanta
1,103
27,282
4,541
0
9,134
0
Chicago
71,941
398 tt
89
80,588
1,103
0
1,857
0
18,249
34
0
St. Louis
20,072
723
0
14,239
0
689
Minn.
14,903
25
0
23,067
0
4,557
0
972
0
Han.City
33
27,591
1,004
10,047
0
0
2,359
0
12,406
0
Dallas
2,279
0
0
5,999
118 tt
43,828
San Fran.
49,654
55
$33,895
Totals & 4 4 2 , 424 $943
$31,722 $27,613 $384,032 $3,732
$3l2
1C
Bills held over ni^ht by New York for distribution to other Fed* Res* Bks,~
tt
it
tt
tf
»♦
»»
- 1,73 .
” in foreign suspense account - - - - - - -$35,
Total NOTSs The Federal Reserve Bank of Richmond resumed participation in System purchases
of bills on December 3, 1931.
NOTE:
R.
indicates
Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
~
-
'
—
....-.........
......
.
..
.. -------
(000 Omitted)
New York
Atlanta
Chicago
San Francisco
Totals
61-90 days
3 l/8>
Over 90-days
-
1-50 days
3L
/o
51-60 days
3 - 3 1/6#
^55
26
98
17
$ 62
54
300
99
$250
0
0
2
0
0
0
0
$367
60
598
118
$196
$49 5
§252
0
$943
Tots
RECAPITULATION OF PURCHASES ANL SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING YflSEK ENDED DECEMBER 2, 1951
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased.
Sold
Matured
Totals
§28,501
7,993
30,588
$10 ,080-
Bankers
Acceptances
To tel
$29 ,,444
7,993
89,923
$68,4721,159-
$
943
0
59,335
§58,3921,158- (Net Change
1-day holdover
and other bills)
§59|550-
1-day holdover
and other bills)
$69,630—
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES YJEEK ENDED DECEMBER 2,1951
(000 Omitted)
(Including Sales Contracts)
Within
15-days
16-50
days
51-60
days
61-90
days
Gov’
t Securities § 75,172 $ 15,152 § 22,950 § 88*066
Bills Purchased
171,720 159,182 100 >655
11,551
Totals
$244,892 §152,554 §122,585 §100,197
91 days6 months
Over 6
months
Total
§136,885
559
$581,998 $ 717,021
0________ 425,407
§157,422
§581,998 $1,140,428
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
December 1, 1931
Mr* VI. H, Matteson,
Assistant Deputy Governor,
Federal Heservo Bank,
New York, N*w York*
Dear Mr* Matteson:
I acknowledge receipt of and ahall bring to
the attention of the members of the Board your letter
of November 30, addressed to
over or Meyer, enclosing
reporb of transactions in Government securities «nd
bankers acceptances as reported to y o u r committee for
the period from November 19, 1931 to November 25, 1931
inclusive*
/ory truly yours,
K* M* McClelland,
Assistant Secretary
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« VffiSfr
For CIRCUMMOk
Fe d e r a l R e s e r v e B a n k
o f N ew Y o rk
Gov'. Meyer
....
Mr. HamlinX/^y.
Mr. James.
Mr. Maoee.*^-.
Mr. Miller.
Mr. Pole
Mr.
Please note- initial and
Return to Secretary'sG#mc-
CONFIDENTIAL
November 50, 1931
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from November 19, 1931 to November 25, 1951 inclu-
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
declassified
Authority £ . 0 . 12 R S ?
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENIED NOVEMBER 2 5 , 1 9 3 1
H o ld in g s o f E a r n in g A s s e t s o f F e d e r a l R e s e r v e B a n k s fr o m N ovem ber 2 6 , 1 9 3 0 t o Date,
( 0 0 0 O m itte d )
TOTAL
GOVERNMENT SECURITIES
BANKERS ACCEPTANCES
B ILL S
O u trig h t
O u trig h t
S a le s
S a le s
EARNING
-1930ASSETS
P u r c h a s e s C o n t r a c t s P u r c h a s e s C o n t r a c t s DISCOUNTED
N ov. 2 6
$ 16 9 ,9 3 0
$ 2 3 3 ,8 5 2
$ 1 ,0 1 1 ,9 4 0
$ 5 9 5 ,6 3 4
# 6 ,17 6
i o
D ec. 3 1
1 ,3 5 1 ,8 5 3
3 9 ,0 9 8
686 ,0 6 4
4 3 ,4 0 3
3 2 4 ,7 4 6
2 5 1 ,3 9 8
-19312 1 5 ,13 7
1 1 8 ,4 5 3
1 ,7 8 8
Jan. 28
9 4 5 ,4 0 5
609 ,8 7 7
0
Feb. 25
1 8 9 ,8 4 7
10 5 ,4 3 1
886
8 9 5 ,6 0 6
599 ,4 4 2
0
5 9 8 ,4 5 9
8 3 ,2 7 2
M ar. 3 5
8 4 7 ,2 5 6
100
0
1 6 5 ,4 2 5
155 ,15 1
A p r. 29
0
3 5 ,8 16
5 9 8 ,3 0 6
13 3 ,9 4 9
9 2 3 ,5 7 2
M ay 2 7
3 ,2 9 1
8 7 6 ,4 8 9
0
598 ,3 6 8
1 2 1 ,2 1 0
1 5 2 ,8 5 2
June 24
1 9 7 ,6 7 8
9 4 7 ,3 3 4
6 18 ,5 0 3
0
3 ,2 2 6
10 3 ,16 4
J u ly 29
18 3 ,0 3 6
9 3 4 ,7 9 5
0
3 ,6 2 7
6 7 7 ,9 7 7
6 2 ,9 0 9
Aug. 26
7 2 7 ,9 9 8
1,15 6 ,6 3 6
0
17 9 ,4 7 6
241 ,7 18
1,0 4 2
S e p t. 30
1,5 5 7 ,9 7 0
7 3 8 ,4 5 5
3 ,8 9 0
3 2 7 ,9 2 5
19 ,5 0 5
4 4 9 ,0 2 2
7 2 3 ,2 6 2
O c t. 2 8
7 2 6 ,9 5 9
2 ,19 8 ,2 3 8
0
1,4 18
7 1 6 ,6 8 0
N ov. 1 8
7 2 7 ,0 5 9
\t9 5 6 , 1 4 6
0
805
662 ,0 4 1
5 3 3 ,2 12
25
0
573
1,9 2 5 ,5 0 9
727 ,10 1
4 7 9 ,2 2 5
686 ,4 0 1
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
________________ SPRING WEEK ENDED NOVEMBER 3 5 , 1 9 5 1 _ _ _ _ _ _ _
1vv’ r
B o s to n
New Y o rk
P h ila d e lp h ia
C le v e la n d
R ich m on d
A tla n ta
C h ic a g o
S t . L o u is
M in n e a p o lis
K ansas C ity
D a lla s
San F ra n c is c o
N= Y. h o l d o v e r s
and o t h e r b i l l s
T o ta ls
!^
v’(000’
OmittedT '
GOVERNMENT SECURITIES
B a la n c e
N et
N ov. 2 5
Change
# 5 7 ,0 7 7 & 2 7 0 2 4 0 ,2 3 0
9 9 6 -.
3075 7 ,8 0 4
0
7 2 ,9 5 1
2 7 ,4 0 6
0
17 ,2 0 7
20+
5039 £ ,,980
3 0 ,9 6 8
1162 8 ,0 0 5
21+
18 ,9 5 9
0
2 2 ,13 0
2 ,5 0 0 +
3075 4 ,3 8 4
# 727 , 1 0 1
$
42+
BANKERS ACCEPTANCES
N et
B a la n c e
N ov. 2 5
C hange
$ 5 3 ,,0 12 # 2 , 9 3 5 18 ,5 4 6 11 1,4 3 1
2 ,4 4 0
1 ,1 4 4 2 8 ,2 3 7
5 ,0 2 4 14 ,8 0 8
0
7542 7 ,£ 8 2
8 0 ,5 8 8
4 ,9 15 2 0 ,0 7 2
3 ,1 2 9 14 ,9 0 3
1 ,6 1 6 2 7 ,5 9 1
5 ,8 13 12 ,4 0 6
4 ,1 1 1 4 9 ,6 5 4
6 ,0 2 2 -
BILLS DI SC QUITTED
N et
B a la n c e
N ov. 2 5
C hange
# 3 2 , 8 4 1 # 7 ,0 7 9 +
7 ,2 3 2 +
1 1 6 ,7 5 5
1 ,3 6 7 +
10 9 ,2 6 3
1 ,3 9 3 9 3 ,4 3 1
2413 9 r391
1,6 0 3 4 9 ,7 2 0
8 ,15 2 +
6 8 ,8 0 3
2 7 ,5 6 4
2 ,0 9 3 +
2167 ,9 5 3
485+
3 2 ,5 8 2
2 1,17 0
4121,8 11+
8 6 ,9 2 8
3 6 ,8 0 1
# 4 7 9 ,2 2 5
# 6 8 6 ,4 0 1
24+
$ 5 3 ,9 8 7 -
# 2 4 ,3 6 0 +
COMMENT o il CHANGES WEEK ENDED NOVEMBER 2 5 , 1 9 3 1
Total earning assets of the System showed a decrease of .^30,637,000 for
the current statement week. The principal changes by classification consisted of
an increase of 924*560,000 in bills discounted and decreases of ^53,987,000 in out
right purchases of bankers acceptances and ^232,000 in bankers acceptances held
under sales contracts.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»0«
During the past week, the New York City banks accumulated a
somewhat larger surplus of reserves than was carried in the previous
week. By the close of Wednesday, November 25, reserve balances of these
banks showed an excess over requirements of $24,000,000, compared with
an overage of $1,000*000 on the preceding Wednesday. Reserves during
this period were increased f17,000,000, while the reserve requirements
dropped ^6,000,000 •
Monry
M arket
The rise in reserve balances was principally the result of a
continued inflow of funds to this market from other centers in an amount
that exceeded funds taken out of this market through further maturities
of bills from the Federal Reserve B a n k s 1 portfolio* Other contributing
factors were some additional gain of gold through imports and releases
from earmark, and gains through net Treasury and miscellaneous commer
cial disbursements in this market which exceeded currency withdrawals
and a net increase in foreign balances maintained at the Reserve Bank.
Money rates in the New York market showed no marked change dur
ing most of the week, but on Wednesday, the 25th, all bill dealers raised
their rates by 1/8 per cent on maturities up to 90 days, and unindorsed
bills maturing within this period are now being offered at S per cent.
Call money was unchanged throughout at 2 1/2 per cent on the Exchange,
with concessions of 1/4 and 1/2 per cent obtainable for some loans in
the outside market. Bid and asked rates of 5 and 5 1/2 per cent contin
ued to be reported for all maturities of time loans, the actual trading
in w h i c h r however, was of small volume. Open market prime commercial
paper remained at 5 3/4 - 4 per cent, with activity also limited. Yields
on short-term United States Government securities advanced slightly fur
ther, but the quotation for federal funds declined from 2 - 2 1/4 per cent
to 1 1/4 - 1 1/2 per cent, reflecting the increase in excess bank reserves
that occurred during the week*
Government
The market for United States Government securities was quiet
Security
during the current statement week. .Although there was no evidence of any
Market
distress selling, prices for the short-term issues and the Liberty Loan
bonds sold off fractionally, while prices for the long-term issues of
Treasury bonds recorded an average loss of slightly more than one point.
At the close of the current reporting period the average yield on the
short-term issues, at dealers’offering prices, was about 1*75 per cent
as compared with 1.45 per cent at the close of the previous period, and
the average selling price for the Liberty Loan and Treasury bonds was
93.18 as compared with the previous w e e k ’
s average selling price of 100.
.
2
.
5
D ealers1 Offering Prices at the Close of the Current Statement 'Week
and Net Changes from the Close of the Previous Statement Week
Net
Approx,
Change
Yield
Issue
Price
100 1/32
‘
t ;i o ?;
7/8% Cert# of Ind. due Dec. 15, 1931
** 2/36
1,87%
%
"
” "
” Mar. 15, 1932
100 1/32
-18/32
99 2/32
2,32%
1/8 %
M
"
”
" Sept. 15 f 1932
1 / 2 % 'Trees.Notes called for payment
100 3/32
- 2/32
1,19%
Dec#- 15* 1931
Treas,Bills maturing on frov, 30 - 2 1/4% discount bid, 1 1/4% a sked
ti
tf
t* Dec'. 30 - 2 1/4%
"
1 1/2%
r
t
t»
t»
tf
♦»; Jan. 13 - 2 1/2%
tt
"
1 1/2%
t
t
ti
tt
tf
# tt 25 - 2 1/2%
tt
1 3/4%
tt
tf
ft F e b , 1 - 2 1/2%
t>
t»
t»
” 2
%
t
t
tf
If tt
t
t
tt
tt
2.10 %
8 - 2 1/2%
t
t
»»
tf
tt
tf
ft ♦t 15 - 2 1/2%
” 2.15 %
tt
»f tf 24 - 2 1/2%
tf
tf
tf
” 2 1/4%
£
—
—
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
___________ Close of the Previous Statement Week_______________
Net
Net
Issue
Price
Change
Issue
Price
change
lst~3 l/Ss
99 50/32 - 4/32 Treas.4 l74s~1947-52 105 9/32 -1.
9/32
1st 4 l/4s 100 35/32 -10/32
"
4s
1944-54 102 4/32 22/32
4th 4 l/4s 101 3/32 - 8/32
"
3 3/4s 1946-56 100
30/32
"
3 3/8s 1943-47
98 7/32 -1.
1/32
” 3 3/8s 1940-43
98 4/32 -1.
4/32
"
3 3/8s 1941-43
98 7/32 -1.
1/32
” 3 1/Ss 1946-49
94 6/32 -1.
8/32
"
3s
1951-55
93
-1.
Bankers
Acceptances
Reports
week
ending
Nov. 25
Dealers* offerings of unendorsed bankers acceptances were at
the following rates at the close of the current statement week: 3 per
cent for 30s> 60s, 90s and 120s» 3 5/8 per cent for 180-day bills. This
represents a reduction of 1/8 per cent on bills 1 to 90 days from the
previous week’
s offering retcs.
Boston reported that the local dealers,in line with dealers in
other cities, increased their bid and asked rates by 1/8 of 1 per cent
on 1-90 day bills. The increase in rates was reflected in the local
demand which increased during the period and dealers were obliged to
import bills frqm their offices in other cities to meet the demand* In
New York the bill market was moderately less active this week. The
greater part of the week dealers* purchases and sales were about equal
but near the close there was a slight increase in the amount of bills
offered to dealers with a slackening in the demand from non-banking
corporations who had been buying bills for the past several days. On
the last day of the week dealers anticipating that offerings to them
would be heavier over the month-end and in December, increased their
rates 1/8 per ccnt on maturities up to 90 days, but made no change in
the other maturities* Aggregate portfolios arc still very low being
less than §20,000,000.
Philadelphia reported that its acceptance
market was less active during the past week. Dealers reported an in
crease in the supply of bills accompanied by a slackening of demand.
No offerings were made to the reserve bank.
Chicago reported that the
demand for bills in its district was good and some dealers reported the
supply picking up, Dallas reported that there was a fairly good demand
for bills from member banks.
OPERATIONS FOB ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during
the current statement week were as fallows:
Purchases of $4*175,000 aggregate par amount 3 3/8$ Treas. Bonds)
of 1943-47
) Account
4,400,000
”
”
n
3 3/8$ Trees, Bonds)
of 1941-43
)Sinking
75,000_____”
"
”
3 3/8$ Treas. Bonds)
,
___________
of 1940-43
) * dn
§8,650,000 - Total Purchases.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
A uthority £ * 0 « \ 3 R S y
4
SYSTEM SPECIAL INVESTMENT ^C COUNT - GOVERNMENT SECURITIES
During the current statement week the following transactions were
effected in the holdings of government securities in the System Account:
Redemption on Nov. 23 of $16,207,000 maturing Treasury bills,
which were replaced by purchase in the market of
$16,207,000 Treasury bills maturing
Jan. 25 and Feb. 24, 1932.
Exchanges in
the market of $17,000,000 - 1 7/8$ certificates due Dec. 15, 1951
1.000.000 - 3 1/2$ Treasury Notes called for
payment Dec. 15, 1951
5.750.000 - 2$ certificates due March 15, 1932
a total of
^>21,750,000 - exchanged for
§13,000,000 - Treasury bills maturing Jan. 25, 1932
1.000.000 ”
"
n
Feb. 15, 1932
7.750.000 "
"
”
"
24, 1932
$21,750,000
As mentioned in last week*s report, the Federal Reserve Bank of Dallas on Nov. 19,
repurchased $2,500,000 of the $5,000,000 of its participation in government secur
ities in the System Account, of which it was temporarily relieved on Aug. 26 last.
They repurchased the balance of $2,500,000 on Nov. 27.
These transactions did not affect the amount of total holdings in the
Account, which remained at ^524,468,000. The participations by Federal reserve
banks and the classification of issues held in the Account at the close of busi
ness Wednesday, November 25, 1931, were as follows:
PARTICIPATIONS B Y FEDERAL RESERVE B-NKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$ 56,387,500
115,891,000
47,799,000
62,951,000
27,405,500
14,646,500
78,381,500
26,967,500
20,275,000
18,875,000
12,152,000
44,758,500
Totals
$524,468,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Hov.
Dec.
Jan.
50,
50 ,
1-L<r.Ay,
ft
25,
Feb.
8,
15,
t*
24,
D e c . 15,
Mar. 15,
Sept. 15,
Dec, 15,
June 15,
tr
15,
Oct, 15,
1931
1951
1952
1952
1932
1932
1932
1951
1952
1952
1931
1947
1947
1938
$ 15,425,000
Treas.Bills
n
ft
12,652,000
tf
»
r
2,000,000
tt
tf
18,000,000
tf
if
22,725.000
ft
»»
7,111,000
♦f
tf
18,957,000
50 ,744,500
- 1 7/8£ C/I
- 2
111,731,500
$ ff
55,500,000
- 1 1/81 ff
807 e250
3 1 / 2 # T/N
80,025,000
3 1/2$ 1st L/L
15,750,000
- 4 1/4$ 1st "
115,059,750
- 4 1/4$ 4th "
-
$524,468,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £*0«
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIko A N D BANKERS ACCEPTANCES
AFFECTING- THE INVESTJvSNT ACCOUNT OF ALL FEDERAL RESERVE BANKS
........ ...... FROM NOVEMBER 19, 1931 TO NOVEMBER 25, 1951 INCLUSIVE_________________
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City ^
Dallas
San Francisco
Totals
......................
9
------
---------
T „
.
-----------
------
■
■
.
* .................. — ...............- ...............................................................-
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Net
Redemptions
Decrease
and Sales
Purchases
§ 270,000
$ 4,081,500
§ 4 ,351 ,500
996,000
8,244,500
9 ,240 ,500
307,500
3,459,500
3 ,767 ,000
0
4 ,556 ,000
4,556,000
1,984,000
0
1 ,984 ,000
0
1,060,000
1 ,060,,000
503,000
5,673,500
6 ,176,,500
116,000
1,952,000
2 ,068 ,000
0
1,467,500
1 ,467 ,500
0
1,366,000
1 ,366 ,000
3,373,000
0
873 ,000
,547
307.,
500
3
,000
3,239,500
$40,457,000
$40 ,457 ,000
$2,500,000
- ........................ .
......... — ...
Net
Increase
0
$
0
0
0
0
0
0
0
0
0
2,
0
"So 500,000
>
o
o
o
o
o
|------------..........................................................................
cn
■--------
OTHER TRANSACTIONS E7 GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
New York
Atlanta
Minneapolis
Totals
Purchases
$21,573,000
128,050
788,350
Issue
Misc. G o v ’
t Sec*
w
»
"
ft
»
”
Redemptions
and Sales
$21,573,000*
108,350
767,350
Issue
Misc. G o v ’
t Sec.
”
"
w ‘
”
” *
|22,448,700
|22,489,400
* $9,073,000 of this amount redeemed.
BANKERS ACCEPTANCES
(000 Omitted)
Maturities
Other Holdings
and Sales
Close Nov.25/31
Sales
Hold
Pur
B y Allot
Held
Held
Hold
Other
E lse
Con*
ings
ings
chased ment from
in
where
N o v . 25 tracts Bills
Nov. 18
Own Mkt. New York
N. Y.
$ 0
# 2,523
Boston
0
$ 55,947
$ 2,935 $ 53,012 $' 3
1 0
111,431
10,963
New York
0
573
129,977
226 R
18,772
0
2,440
0
3,330
100 R
3
3,584
0
1,241
Ph i l a r
28,237
3,386
0
5 r024
0
Cleve.
33,261
0
0
0
0
14,808
1,342
Richmond
0
14,808
0
0
28,036
0
0
468
1,739
798
512 R
27,282
Atlanta
4,541
Chicago
85,503
0
0
5,767
80,588
0
852 R
23,201
0
0
3,129
0
1,103
St.Louis
0
20,072
Minn.
1,618
0
0
0
14,903
0
723
16,521
Kan.City
972
0
0
5,.813
27,591
0
33,404
0
16,517
1,004
Dallas
0
4,111
12,406
0
0
0
San Fran.
55,676
180 R
0
0
0
49,654
2,2^9
6,202
0
$573
033,905
Totals $496,435
#35,482
0442,424
$20,399
$i|870
Bills held overnight by New York for distribution to other Fed. Res. Bks. 421
*«
H
»
H
ft
” in foreign suspense account
- 2,475
.
Total ■
-
-$36,801
N O T E ; The Federal Reserve Banks of Minneapolis and Kansas City on November 20 . and
November 23 respectively resumed their participations in system purchases of
bankers acceptances.
R.
Indicates
Retained.
DECLASSIFIED
Authority £»0« V2RS%*
6
MATURIT IES i-.ND RATES O F BILLS PURCHASED vffiEK ENDED NOVEMBER 25, 1931
(000 Omitted)
1-50 days
3 - 3 1/8#
31-60 days
3 - 3 1/8 %
61-90 days
3 1/ 8yi
-'New York
Philadelphia
Atlanta
Chicago
San Francisco
§ 48
0
25*
752
58
$101
0
261*
100
42
$ 77
100
226**
0
12
Totals
$883
$504
$415
Over 90 days
5 1 / 8 - 3 1/4#
Total
$
v 0
0
0
0
68
226
100
512
852
180
$1,870
$68
*Purchased at 2 3/4^
**Purchesed at S 3/4 - 2 7/8fy
RECAPITULATION OF PURCHASES ^ND SALES O F GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDED NOVEMBER 25, 1951
(OOO Omitted}
(Excluding Sales Contracts)
Government
Securities
Pure based
Sold
Matured
Totals
$62,947
57,625
25,280
$
42+
Bankers
Acceptances
Total
$ 1,870
0
55,881
$54,01124+ (Net Change
1-day holdover
and other bills)
$55,987-
$64,817
57,625
81,161
$55,96924+ (Nct Change
1-day holdover
and other bills
$55,945-
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES WEEK ENDED NOVEMBER 25,1951
(Including Sales Contracts)
Within
15-days
16-30
days
51-60
days
61-90
days
Gov’
t Securities $ 30,588 $ 73,171 $ 15,152 $78,286
Bills Purchased
158,236 159,364 169,559 11,688
Totals
$188,824 $212,555 $184,511 $89,974
91-days
6 months
Over 6
months
Total
0147,831
1,151
$382,073 $
0
727,101
479,798
$148,982
$382,073 $1,206,899
-•
. r
L
..
- Lin in— — —iw m m m m e m m m m
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»0»
November 21, 1931.
Mr, W. B* Matteson,
Assistant Deputy Governor,
Federal Reserve Bank,
NSw York, N. Y.
Dear Mr. Matteson:
I oknowledge receipt of and shall bring to the
attention of the members of the Board, your letter of
Noventoer 20, addressed to Governor Meyer, inclosing
report of transactions in Government securities and
bankers* acceptances as reported to your committee for
the period from November 12, 1931 to November 18, 1931,
inclusive.
Very truly yours,
Secretary.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0« \2RS$*
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
tv.!
iYr,
f'ic;;:pc note
CONFIDENTIAL
November 20, 1931.
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from November 12 , 1931 to November 18, 1931 inclu
sive, together with data received from Federal reserve banks.
Assistant D eputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
^
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
comqroiAL
REPORT 0? 0EE2T LiARKET OPERATIONS FOR ViEjSK 'Jl'UZD NOVEMBER 18, 1931
H o l d ings of Earning Assets of Federal Reserve Banks from November 19, 1950 to Date
(ooo Ctoittedj
-
TOTAL
EARNING
ASSETS
$ 985,580
1,011,940
1,551,855
-1950No v. 19
Nov. 26
Dec. 51
-1931Jan. 28
Feb. 25
Mar. 25
Apr. 29
27
May
June 24
July 29
. Aug. 26
S e p t . 50
O c t . 28
Nov. 11
Nov. 18
945,405
895,606
847,256
925,572
876,489
947,554
954,795
1,156,656
1,557,070
2,198,258
2,059,578
1,956,146
GOVERNMENT SECURITIES
Outright
Sales
Contracts
Purchases
$595,775
I o
0
595,654
43,405
686,064
609,877
599,442
598,459
■ 598,506
598,368
618,505
677,977
727,998
758,455
726,959
727,063
727,059
0
0
100
0
0
0
0
0
3,890
0
400
0
BANKERS ACCEPTANCES
Sales
Outright
Purchases Contracts
$ 5,626
$172,647
6,176
169,950
39,098
524,746
118,455
105,451
85,272
133,949
121,210
103,164
62,909
179,476
449,022
723,262
596,752
553,212
1,788
886
0
35,816
3,291
3,226
3,627
1,042
19,505
1,418
0
805
BILLS
DISCOUNTS]
$205,037
235,852
251,598
215,157
189,847
165,425
155,151
152,852
197,678
185,056
241,718
527,925
716,680
685,764
662,041
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
___________________ CURING W E E K W OSD,NOVEMBER 18, 1951 ___________
(000 Omitted)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Balance
Net
Nov. 18
Change
$ 57,547
$ 218765241,226
58,111
22672,951
28227,406
0
17,187
119100,483
38112731,084
27,984
1+
15618,959
19,630
2,500+
54,691
233-
$727,059
$
4-
BANKERS ACCEPTANCES
Net
Balance
N o v . 18
Change
$ 5,270$ 55,947
129,977
19,9861,3763,584
33,261
5,71614,808
0
5,74228,036
6,27385,503
23,201
2,0834,88316,521
1,70135,404
16,517
88955,676
9,68656,777
65+
$533,212
$63,540-
BILLS DISCOUNTED
Net
Balance
Nov. 18
Change
1 25,762 $ ’4,553+
6,678109,523
1,234+
107,896
7,40694,824
39,632
554+
857+
51,328
8,74460,641
25,471
884+
2,024+
8,169
2,91632,096
21,582
2,75385,117
3,132-
$662,041
$21,723-
cm m va on changes w e e k e n d e d November iq, 1931
Total earning assets of the System showed a decrease of $85,452,000 for the
current statement week.
The principal changes consisted of decreases of $400,000 in
government securities held under sales contracts, $65,540,000 in outright purchases
of bankers acceptances and $21,723,000 in bills discounted, and an increase of
$805,000 in bankers acceptances held under sales contracts.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q.
Money
Market
Again this week, the reserve balances of the New York money
market banks were maintained at a level close to requirements.
The net
change in actual reserves for the reporting week was an increase of
$9 ,000,000, while reserve requirements showed a net rise of $5,000,000,
so that the banks ended the week with an excess of $ l r000,000 of actual
reserves, as compared with a $3,000,000 deficit on the previous Wednesday
The New York market gained a considerable volume of funds
during this period as the result of a continued favorable balance of wire
transfers and check settlements with other districts, in addition to
which there were smaller gains through a further decrease in the amount
of currency outstanding, and through a continued gain of gold through
imports and releases from earmark.
Only minor offsets to these gains
of funds occurred through foreign account and Treasury transactions in
this market.
This net gain for the week in commercial and agency trans
actions was, however, largely absorbed by the continued decline in
Federal Reserve purchased bill holdings which resulted from the maturity
of bills, there being virtually no offerings of bills to the New York
Reserve Bank for System account.
In addition, New York City bank bor
rowings were reduced somewhat.
In the call m o n e y market, conditions were little changed with
the Stock Exchange rate steady at 2 1/2 per cent throughout the week.
On November 16, the calling of a substantial volume of loans due to the
amendment to the constitution of the New York Clearing House Association
prohibiting its members from placing security loans for other than bank
ing institutions had no effect on the Exchange rate for money, as the
loans then outstanding were mostly taken over by the New York City banks
as direct loans.
Rates for time loans on securities continued to be marked down
though the volume of actual loans remained small. By November 19, matur
ities of 2 to 6 months were quoted at 3 per cent bid, 3 1/2 per cent
asked, as compared with 3 1/2 per cent flat a week ago.
A small aggre
gate amount of 3, 4, and 5 months loans was placed at 3 l/4 per cent.
Previous trading in 90 day m o n e y had been at 3 1/2 per cent. Bill rates
have been unchanged following the general reduction of 1/8 per cent ef
fected on November 13. Present offering rates for unindorsed bills up
to 90 day maturity are 3/8 per cent below the recent high, 4 month bills
are 1/2 per cent lower, and 5 and 6 month bills 5/8 per cent lower.
The prevailing range for prime commercial paper in the open market has
been reduced to 3 3/4 - 4 per cent, with the market continuing largely
nominal, due to small supplies and a limited demand. Federal funds have
fluctuated between a high of 3 - 3 1/4 per cent, reached last Friday,
and a quotation of 2 - 2 1/4 per cent today.
Government
Security
Market
The market for United States Government securities was irregu
lar during the current statement week. At the close of the current re-*
porting period the average yield on the short-term issues, at dealers*
offering prices, was about 1.45 per cent as compared with 1.35 per cent
at the close of the previous period, and the average selling price for
the Liberty Loan and Treasury bonds was 100 as compared with the previous
week’
s average selling price of 99*86,
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
1 7/8$
2
$
1 1/0$
3 1/2$
Issue
Cert, of Ind. idue Dec. 15, 1931
* Mar. 15, 1932
**
**
w
** Sept. 15, 1932
"
"
**
Treasury Notes called for payment
Dec. 15, 1931
Treasury Bills maturing in Nov.
tt
*
tt
on Dec. 30
n
ft
tt
on Jan. 13
ft
tt
tt
on Jan. 25
tt
tt
»t
on Feb. 1
tt
~W
ft
on Feb. 8
Price
100
1/32
100 3/32
99 20/32
Net
Change
-l/32
- - -4/32
Approx.
Yield
1.40$
1.69$
1.58$
-2/32
100 5/32
, 1.19$
- 2% discount bid, 1 $ asked (n o m i n al)
«
tt
1 1/4 f o "
-2$
"
♦
t
tt
- 2 1/4 $ *
1 1/4# "
ft
tt
1
5/8
fo
"
- 2 1/4 fo "
tt
tt
- 2 1/4$ **
1 3/4 fo "
bid,
1,90$
asto^d(nominal)
& 1 5 - 2 1/4$ disc.
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Issue
1st 3 l/2s
1st 4 l/4s
4th 4 l/4s
Bankers
Acceptances
Reports
week
ending
Nov. 18
Price
100
2/32
101 3/32
101 11/32
the
per
for
60s
Net
Change
-2/32
-6/32
-2/32
Issue
Treasury 4 l/4s 1947-52
»
4s
1944-54
tt
3 3/4s 1946-56
tt
3 3/8s 1943-47
»
3 3/8s 1940-43
tt
3 3/8s 1941-43
tt
3 l/8s 1946-49
tt
3s
1951-55
Price
106 18/32
102 26/32
100 30/32
99 8/32
99 8/32
99 8/32
95 14/32
94
Net
Change
-14/32
- 2/32
- 2/32
+16/32
+12/32
+16/32
+28/32
+ 5/32
Dealers* offerings of unendorsed bankers acceptances were at
following rates at the close of the current statement week: 2 7/8
cent for 30s, 60s and 90s, 3 per cent for 120s and 3 5/8 per cent
180-day bills. This represents a reduction of 1/8 per cent for 30s,
and 90s, and 1/8 to 1/4 per cent for 120 and 180-day bills.
Boston reported that there was very little change in the bill
market condition in its district during the past week. The supply was
still small and while the demand m a y have shown some slackening, deal
ers were not able to fill all orders. There were no offerings to the
reserve bank. In New York there was a moderate increase in the volume
of bills handled by dealers during the week as compared with the past
two weeks. The demand continued to exceed the supply and dealers* ag
gregate portfolios declined by $6,000,000 to $15,000,000- O n Friday,
dealers made a further reduction of 1/8 per cent in their rates for all
maturities, bringing their offering rates for unendorsed bills to 2 7/8
per cent for maturities up to 90 days, 3 per cent for 4 months*, and
3 5/8 per cent for 5 and 6 months*. Following this reduction, the
demand increased due to non-banking corporations seeking investment for
funds which previous to last Monday, when the new ruling of the New Yoxk
Clearing House went into effect, had been loaned in the call m o n e y
market. Some sales of choice names were reported to have been made at
2 3/4 per cent. Philadelphia reported that the acceptance market in its
district continued the same trend as the last few weeks. The amount of
new bills was small and offerings to the reserve bank were negligible.
The demand held good. Chicago reported that the bill market was prac
tically an order market and rates were varied and nominal. Jfellas r e
ported that there ims a fairly good demand for bills from member" "banks.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
•»
Authority £*0« VffiSfr
4
OPERATIONS FOR ACCOUNT, OF UNITED- STATES TREASURY
Transactions consummated under Treasury authorization during the currant
statement week were as follows:,
Sales of
$
49,200 - 4 1/4$ Fourth Liberty Loan bonds,.
account Director- of Public Buildings
352,550 - 4 1/4$ Fourth Liberty Loan bonds,
account Alien Property Custodian
|
401,750 - Total Salos
and purchases of $
900,00.0 - 3 3/0$ Treasury bonds of 1940-43) account
3.150.000 - 3 3/8$
"
"
" 1941-43) Sinking
4.850.000 - 3 3/8$
"
"
” 1943-47) Fund
$8,900,000 - Total Purchases
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
lUring the current statement week the following transactions were effected
in the holdings of government securities in the System Account:
Redemption on Nov. 16 of $6,111,000 maturing Treasury bills, which were re
placed by purchase in the market of
$6,111,000 Treasury bills maturing Feb. 15, 1932
On November 13, the Federal Reserve Bank of Dallas repurchased $2,500,000
of its participation in government securities in the System Account of which it was
temporarily relieved on July 15 last.
These transactions did not affect the amount of total holdings in the
Account which remained at $524,468,000.
The participations by Federal reserve banks
and the classification of issues held in the Account at the close of business
Wednesday, November 18, 1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
New York
PhiladeIphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
NOTE:
$ 56,657,500
114,887,000
48,106,500
62,951,000
27,405,500
14,646,500
78,884,500
27,083,500
20,273,000
18,875,000
9,632,000
45,066,000
$524,458,000
RECAPITULATION OF HOLDINGS B Y MATURITIES
Nov.
n
Dec.
Ja n .
Feb.
23,
30,
30,
13,
8,
15,
Dec. 15,
Mar. 15,
Sept .15,
Dec. 15,
June 15,
15,
Oct. 15,
1931-Treasury Bills $ 16,207,000
n
tt
15,425,000
1931tt
tt
12,652,000
1931»
tt
2,000,000
1932tt
»
22,725,000
1932«
w
6,111,000
193267,744,500
1931- 1 7/8$ C/I
1932- 2
115,481,500
$ tt
53,500,000
1932- 1 1/8 $ »t
1,807,250
1931- 3 1/2$ T/N
1947- 3 1/2$ 1st L/L 80,025,000
1947- 4 1/4$ 1st ” 15,750,000
1938- 4 1/4$ 4th " 115,039,7 50
$524,468,000
On Thursday, November 19, the Federal Reserve Bank of Dallas repurchased
$2,500,000 of the $5,000,000 of its participation in government securities in
System Account of which it was temporarily relieved on August 26 last.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ -0*
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES A N D BANKERS ACCEPTANCES
AFFECTING THE INVES11OTT ACCOUNT OF All FEDERAL RESERVE BANKS
FROM NOVBfBER 12, 1931 TO NOVEMBER 18, 1951, INCLUSIVE
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas CityDallas
San Francisco
Purchases
$ 1,094,000
6,220,500
929,500
1,215,500
528,500
285,500
1,524,000
522,500
39i ,500
565,000
2,666,500
870,000
Redemptions
and Sales
$ 1,299,000
6,985,000
1,155,500
1,498,000
528,500
410,500
1,905,500
649,500
591,500
520,500
166,500
1,105|000
Net
Decrease
$ 205,000
7 62,500
226,000
282,500
0
127,000
531,500
127,000
0
155,500
0
255,000
Net
Increase
$
0
0
0
0
0
0
0
0
0
0
2,500,000
0
Totals
|QJ5,611,000
$16,611,000
|2,500,000
$2,500,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
Boston
New York
Atlanta
Minneapolis
Purchases
1
0
16,000,000
79,150
937,800
Totals
$17,016,950
Issue
$
-
Misc. G o v ft Sec.
tt
ft
w
tt
tt
Sales
15,500
16,000,000*
71,250
957,200
Issue
1st li/L
t Sec.
Misc. G o v ’
tt
»
"
tt
«♦
"
$17,021,950
*$5,000,000 of this amount redeemed.
BANKERS ACCEPTANCES
(OOC Omitted)
Other Holdings
Maturities
and Sales
Close Nov. 18/51
Hold
Pur
By Allot Held
Held
Hold Sales
chased
ment from in
Else
Other
ings
ings
Con
N o v . 11
Nov. 18 tracts
Own Mkt. New York N.Y.
where
Bills
$ 0
Boston
# 61,217
$ 2,523
0
$ o ■1 $ 5,270 | 55,947 $ o
New York
0
149,965
55 R
129,977 805
0
11,195
20,059
0
4,960
0
0
1,566
10
5,584
3,330
Phila.
Cleve.
58,977
355 tt
0
0
3,386
0
6,069
33,261
0
14,808
0
0
0
14,808
Richmond
0
1,34S
55,778
0
6,266
1,751
Atlanta
744 «
28,056
220
0
Chicago
0
91,776
0
6,273
85,503
4,541
0
0
St.Louis
25,284
0
2,083
1,103
0
0
23,201
0
Minn.
21,404
0
0
723
4,885
0
16,521
0
Kan.City
55,105
0
0
972
0
1,701
33,404
0
tt
Dallas
0
1,004
17,406
1,151
16,517
262
0
0
San Fran.
0
65,562
0
0
2,279
9,686
0
55,676
Totals $560,040
$1,412
$57,489
$34,159
0
$27,528 $496,435 $805
Bills held overnight by New York for distribution to other Fed.Res. Bks. - 10
tt
«
tt
w
tt
w in foreign suspense account - - - - - - 2, 508
NOTE:
T o t a l ----------------------- *
On Nov. 18 the Federal Reserve Bank of St. Louis resumed its
participation in System purchases of bills.
R. indicates Retained.
$36,777
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
MATURITIES A N D RATES ON BILLS PURCHASED WEEK « C B D NOVEMBER 18, 1951
'
(000 Omitted)
1-30 days
3 1/8-3 1/4#
New York
Cleveland
Atlanta
Dallas
Totals
31-60 days
3 1/8-3 1/4#
61-90 days
Over 90 days
Total
$ 36
53
148*
30
I 17
1
197*
133
$ 0
299
399*
99
$267
$348
$797
)
53
353
744
362
,,412
* Purchased at 2 3/4#
RECAPITULATION OF PURCHASES A N D SALES OF GOVERNMENT SECURITIES
A N D BANKERS ACCEPTANCES CURING W E E K EOTSEP NOVEMBER 18, 1951
'
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
Totals
$33,628
22,521
11,111
4-
Bankers
Acceptances
Total
$ 1,412
0
65,017
$63,60565+(Net Change
_________ 1-day holdover
& other bills)
,540-
$35,040
22,521
76,128
$63,60965+(Net Change
1 -day holdover
& other bills)
$63,544-
HOLDINGS OF GOVERNMENT SECURITIES A N D BANKERS ACCEPTANCES W E E K E N D E D NOVEMBER 18,1931
(Including Sales Contracts)
Within
15-days
16-30
days
31-60
days
61-90
days
91-days
6 months
Over 6
months
Total
Gov’
t Securities $ 55,868 $ 97,187 $ 16,652 $ 50,286 $125,044 0382,022 $ 727,059
Bills Purchased
135,293 155,912 222,526
18,573
1,715
0________534,017
Totals
$191,161 §253,099 $239,178 $ 68,859 $126,757 $382,022 $1,261,076
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
November 14, 1951.
Mr. 1, B. Matteson,
Assistant Deputy Governor,
Federal Reserve Bank,
Hew York, N. Y.
Dear Mr. Matteson:
1 acknowledge receipt of and shall bring to
the attention of the members of the Board your letter
of Tfevember 13, addressed to Governor Meyer, enclosing
report of transactions in Government securities and
bankers’acceptances as reported to your committee for
the period from Hovember 5, 1951, to November 11, 1931,
inclusive.
Yery truly yours,
Chester Morrill,
Secretary.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E*0« VffiSfr
For CIRCUUflON
Gov. Meyer
Mr, Hamlin.
Fe d e r a l R e s e r v e B a n k
M r. James
Mr. Megee
o f N ew Y o rk
Mr. Miller...
Mr. Pole,
Mr.
Mr.Please note - initial and
Return to Secretary’
s Office
CONFIDENTIAL
November 13, 1951.
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from November 5, 1951 to November 11, 1951 inclu
sive, together with data received from Federal reserve banks.
Assistant Deputy Governor
Honorable Eugene % y e r , Governor,
Federal Reserve Board,
Washington, D. C.
■p.
/
/
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED NOVEMBER 11, 1931
Holdings of Earning Assets of Federal Reserve Banks from November 12, 1950 to Date
(000 Omitted)
-1930Nov. 12
26
Dec. 51
-1931Jan. 28
Feb. 25
Mar.. 25
Apr. 29
May
27
Juno 24
July 29
Aug. 26
Sept. 30
Oct. 28
Nov.
4
it
11
TOTAL
EARNING
ASSETS
$1,006,586
1,011,940
1,351,853
GOVERNMENT SECURITIES
Outright
Sales
Contracts
Purchases
$601,290
1 0
595,634
0
43,403
686,064
945,405
895,606
847,256
923,572
876,489
947,334
934,795
1,156,656
1,557*970
2,198,238
2,105,027
2,039,578
609,877
599,442
598,459
598,306
598,368
618,503
677,977
727,998
738,455
726,959
727*076
727,063
0
0
100
0
0
0
0
0
3,890
0
500
400
BANKERS ACCEPTANCES
Outright
Sales
Purchases
Contracts
$ 5,464
$201,878
6,176
169,930
324,746
39,098
118,453
105,431
83,272
133,949
121,210
105,164
62,909
179,476
449,022
723,262
636,509
596,752
1,788
886
0
35,816
3,291
3,226
3,627
1,042
19,505
1,418
5,524
0
BILLS
DISCOUNTS!
$191,657
233,852
251,398
215,137
189,847
165,425
155,151
152,852
197,678
183,036
241,718
327,925
716,680
705,224
683,764
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
____________________ DURING WEEK ENDED NOVEMBER 11, 1951___________
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
Nov. 11
Change
$ 57,565
$ 1241,989
0
58,337
7573,233
127,406
0
417,306
100 ,864
0
31,211
0
27,983
68+
19,115
0
17,130
0
54,924
0
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas Gity
Dallas
San Francisco
N. Y. holdovers
and other bills
h!
$13—
o
$727,063
o
o
Totals
BANKERS ACCEPTANCES
Net
Balance
.Change
Nov. 11
$ 6,029$ 61,217
149,963
8,8711,1934,960
2,91238,977
199+
14,808
2833*778
91,776
7,8232,59225,284
21,404
1,1030
35,105
1,34917,406
7,73365,362
36,712
325-
$596,752
$ 3 9 ,757-
BILLS DISCOUNTED
Net
Balance
N o v . 11
Change
$ 21,209
$ 3,143+
7,870116,201
4,758+
106,662
102,230
3,93139,078
108+
985+
50,671
69,385
6,57164424,587
1,0416,145
35,012
19163224,355
9,57488,249
$685,764
$21,460-
CHANGES V/EEK M E D NOVEMBER 11, 1951
Total earning assets of the System showed a decrease of $65,449,000
for the current statement vreek. The changes by classification consisted of
decreases of $39,757,000 in outright purchases of bankers acceptances,
$5,524,000 in bankers acceptances held under sales contracts, and $21,460,000
in bills discounted.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0« VZRSff
Money
Market
The New York money market banks maintained reserve balances
during the past reporting week that were rather close to the required
level. Their reserve position fluctuated between the limits of a
$27,000,000 overage in actual reserves on one day and a $ 2 7 r000,000
deficit on another day. The net change in reserve balances for the
week was a decrease of $1,000>000t but as their reserve requirements
declined $21,000,000, the deficit of ^23,000,000 existing in actual re
serves on Wednesday, the 4th, was reduced to $3,000,000 on Wednesday,
the 11th,
There were several movements of funds that resulted in moder
ately large gains to the money market during the week. These included
a net return of currency and coin to the Reserve Bank, following the
withdrawals in the previous week incident to the first of the month and
holiday; also the resumption of a marked tendency for funds to move to
New Y o r k from other parts of the country, and a moderate gain in gold
transactions, largely releases from earmark. These gains of funds,
however* were fully absorbed by losses of funds to the market in other
transactions, principally a further decline in the Federal Reserve port
folio of purchased bills, due to an excess of maturities over new offer
ings, and also a net withdrawal of Treasury funds from this market, aris
ing from a sale of a new issue of Treasury bills and calls from Govern
ment depositaries which exceeded the amount of funds disbursed here for
maturing Treasury Bills and ordinary expenditures.
Call money was unchanged during the past week at 2 1/2 per
cent on the E x c h a n g e » and at concessions of 1/2 and 1/4 per cent from
this level for small amounts in the outside market. The prevailing
offering range for 4 to 6 month prime commercial paper was changed to
4 - 4 1/4 per cent from the 3 3/4 - 4 1/4 per cent range quoted by the
dealers since the middle of October. This rate adjustment represented
no actual change in conditions since the small amount of paper that was
moved by the dealers was at 4 per cent, the rate at which most of the
business had previously been done*
In other divisions of the money market, however* rates tended
downward. By November 12, all maturities of time loans were quoted at
3 1/2 per cent flat, with some business done in 3 and 4 month loans at
that rate, compared with a nominal structure of 3 1/2 per cent bid, 4 per
cent asked a week earlier.
Offering rates for unindorsed bills were
reduced a total of 1/4 per cent for maturities up to 90 days, 3/8 per
cent for 4 months bills, and 1/2 per cent for 5 and 6 months bills.
Yields on short-term United States Government obligations also receded
about 1/8 per cent further during this period. The rate for federal
funds fluctuated between 1 1/2 - 1 3/4 per cent and a high of 3 - 3 1/4
per cent, closing on the 12th at 1 3/4 - 2 1/4 per cent, as compared
with 2 3 / 4 - 3 per cent on the previous Thursday*
G o t e m n e nt
Security
Market
The market for United States Government bonds continued to im
prove with some interruptions during the past week, especially the long
term Treasury bonds, which recorded an average advance in price for the
week of about 1 and 1/3 points. The short-term issues and the First
and Fourth liberty Loan bonds were firm and the price trend for these
issues was slightly higher. At the close of the statement week the aver
age yield on the short-term issues* at dealers’ offering prices, was
about 1,35$ as compared with 1.50> at the close of the previous week and
the average selling price for the Liberty Loan and Treasury bonds was
99,86 as compared with the previous w e e k ’s average closing price of
98.86.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0« VSRSfr
3
1
2
1
3
Dealers1 Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net
Approx.
Yield
Price
Change
Issue
7/8 $ Cert. of Ind. due Dec, 15, 1931
1.15$
100' 2/32
tt
$
100 3/32
+1/32
1.71$
” "
" Mar. 15, 1932
tr
1.42$
99 24/32
+8/32
1/8$
"
"
" Sept. 15, 1932
1/2$ Treasury Notes called for payment
100 7/32
-1/32
0.98$
Dec. 15, 1931
.
Treas.Bills
"
"
"
♦»
«
»»
^
-
.
.
Nov. & Dec. maturities 2$ discount bid, 1$ asked(nominal)
Jan.
"
2 1/4$
"” 1 1/4$ »
"
Feb. 1
" 2
1/4$
"
" 1 1/2$ "
"
tt
8
n
2 1/4$
"
" 1 3/4$ "
"
Closing Prices on the New Y ork Stock Exchange at the Close
of the Current Statement Week and Net Changes from
_______Close of the Previous Statement Week__________________
Net
Net
Issue
Price
Change
Issue
Price
Ghange
1st 3 1/2s 100
+4/32 Treas.4 l/4s 1947-52 107
+1.16/32
1st 4 l/4s 101 9/32 -1/32
"
4s
1944-54 102 28/32
+1.11/32
4th 4 l/4s 101 13/32 41/32
"
3 3/4s 1946-56 101
+1.
” 3 3/8s 1943-47
98 24/32
+1.24/32
w
3 3/8s 1940-43
98 28/32
+1.26/32
"
3 3/8s 1.941-43
98 24/32
+1.22/32
” 3 l/8s 1946-49
94 24/32
+ 30/32
"
3s
1951-55
93 26/32
+ 28/32
Bankers
Accept
ances
Dealers1 offerings of unendorsed bankers acceptances were at the
following rates at the close of the current statement week: 3 per cent for
30s, 60s and 9 0 s # 3 1/8 to 3 1/4 per cent for 120s and 3 3/4 to 3 7/8 per
cent for 180-day bills. This represents a reduction over the previous week*?
offering rates of 1/4 per cent for 30s, 60s and 90s, 1/4 to 3/8 per cent for
120s and 3/8 to 1/2 per cent for 180-day bills.
Reports
week
ending
Nov. 11
Boston reported that bills in its district during the past period
were in excellent demand both from local and out-of-town banks and dealers
were unable to fill all orders* being obliged to import bills from their
offices in other cities where available* In line with outside dealers#
local dealers lowered their rates twice during the period and are now
bidding 3 1/8 per cent for 90s, 3 3/8 per cent for 120s and 4 per cent for
150-180-day bills. In New York the supply of bills in dealers’hands at
the beginning of the week continued insufficient to meet the demand with
the result that, in an effort to bring out new bills, dealers on Friday
effected a reduction of 1/8 per cent in their bid rates, and a further sim
ilar reduction on Monday, with corresponding decreases in their offering
rates. These revisions, however, did not bring about the desired results
and the few bills that did come out were quickly disposed of and portfolios
were further reduced to an extremely low figure. The demand s6.ems to be for
all maturities, principally from domestic sources. Offerings for System
Account were negligible* Philadelphia reported that the acceptance market
continued somewhat active in its district, although dealers reported a
scarcity of new bills even at the lower rate .
The demand held steady#
Chicago reported that the demand was fair for bills in its district with
the supply small# Dallas reported that the demand for bills from member
banks during the past week was active#
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
*
'
Authority E«0«
OPERATIONS FOR ACCOUNT O F UNITED STATUS TREASURY
Transactions consummated under Treasury authorization during the current
statement week consisted of purchases of
$2,600,000 aggregate par amount 3 3/8$ Treasury
Bonds of 1941-43, account Sinking Fund
SYSTEM SPECIAL INVESTIIENT ACCOUNT - GOVERN* IENT SECURITIES
The following transactions, affecting the maturities of the issues of
government securities held in the System Account, were consummated during the cur
rent statement week:
Redemption on November 9 of $7,225,000 maturing Treasury bills which
were replaced by purchase in the market of
$7,225,000 Treasury bills due Feb. 8, 1932„
Exchanges in the market
of
a total of
$ 2,000,000 Treasury bills M Nov, 16, 1931
3,000,000
"
"
" Nov. 23, 1931
10,5009000 - 1 7/8fo certificates due
Dec, 15, 1931
$15,500,000 exchanged for
$15,500,000 Treasury bills due Feb, 8, 1932.
Due to the fact that all of the Federal reserve banks except New York we.ie
closed on Armistice Day, November 11, apportionment was made on Thursday,Nov ember 12
of $4,000,000 of the above listed exchanges which were consummated on November 11*
These transactions did not affect the amount o f total holdings in the
Account which remained at $524,468,000, The participations by Federal reserve banktand the classification of issues held in the Account at the close of business
Wednesday, November 11, 1931, were as follows:
PARTICIPATIONS BY
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
BANKS
$ 56,862,500
115,649*500
48,332,500
63,233,500
27,405,500
14,773,500
79,266,000
27*210,500
20,273,000
1^,030,500
7,132,000
45,299,000
$524,468,000
Nov.
16,
S3,
w
30,
Dec • 30,
Jan, 13,
Feb,
8,
Dec, 15,
Mar. 15,
Sept, 15,
Dec, 15,
June 15,
tt
15,
Oct, 15,
tt
1931
1931
1931
1931
1932
1932
1931
1932
1932
1931
1947
1947
1938
-
$ 6,ill,000
16,207,00C
tt
n
15,425,000
tt
tf
12,652,000
tt
2,000,000
tr
t»
22,725,000
67,744,500
7/8% C/I
tf
115,481,500
fo
53,500,000
1/8 fa t f
1,807,250
1 / Z f o T/N
1/2 f0 1st t/L 80,025,000
15,750,000
1/4$ 1st *
1/4 fo 4th " 115,039,750
Treas.Bills
1
2
1
3
- 3
- 4
- 4
tr
tt
$524,468,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0* \3R5Sy
ITEMIZED STATEMENT O F TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECT BIG THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
__________________FROM NOVEMBER 5, 1951 TO NOVEMBER 11, 1931, INCLUSIVE
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Redemptions
a nd
Ir r
Purchases
Boston
^ 2 ,OoO ,000
$ 2,030,000
New York
8,129,000
8,129,000
Philadelphia
1,726,000
1,726,000
Cleveland
2,257,500
2,257,500
Richmond
978,500
978,500
Atlanta
527,500
527,500
Chicago
2,830,000
2,830,000
St. Louis
971,500
971,500
724,000
Minneapolis
724,000
679,500
Kansas City
679,500
Dallas
254,500
254,500
San Francisco
1,617,000
1,617,000
Totals
$22,725,000
$22,725,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
Redemptions
Issue
and Seles
Purchases
Issue
Boston
1st 3 ’
i/2# L/L Bds*
&
1,750
$
o
New York
8,500,000* Nov, 9/31 Tr. Bills*
8,500,000
Misc. G o v ’t Sec,
Feb. 1/32 "
”
Philadelphia
75,000
0
Atlanta
Misc. G o v ’
t Sec,
141,800
Misc. G o v ’
t Sec*
137,950
w
w
tf
»>
ft
«
522,200
Minneapolis
591,150
Totals
$9,240,750
$9,229,100
*Of this amount $4,500,000 redeemed*
BANKERS ACCEPTANCES
(000 Omitted)
Maturities
and Sales
Held
By Allot Held
Else
ment from
in
New York
N. Y*
where
$ 6,469
‘
&136
4 0
8,957
0
0
Other Holdings
Close Nov, 11/51
Sales
Con
Other
tracts Bills
$ 2,523
0
11,184
0
Hold
Pur
ings
chased
N
o
v , 11
Own Mkt.
Boston
$ 61,217
304 R.
149,963
New York
86 tf
596 A.
3,330
4,960
Phila,
1,193
0
6,153
0
0
0
38,977
3,386
41,889
3,344
0
432 R.
0
0
Cleve,
1,341
39
14,808
0
14,609
Richmond
238 tt
0
0
1,706
700
33,778
0
Atlanta
357
33,806
952 tt
77
t
t
4,541
91,776
0
8,352*
99,599
229
0
Chicago
300
1,103
2,592
0
25,284
0
St. Louis
27,876
0
0
21,404
723
0
1,178
0
Minn.
23,507
0
75 R.
972
35,105
0
0
0
Kan. City
35,105
0
0
1,004
1,349
17,406
0
Dallas
0
0
18,755
0
2,279
0
65,362
7,890
San Fran,
73,095
3 R.
154
0
0
$34,092
$26,794
y 5 6 0 ,040
$15,626
Totals
£599,474 $2 ,986
$596
12
Bills held overnight by New York for distribution to other Fed. Res • Bks, —
Hold
ings
Nov, 4
$ 67,246
158,834
T o t a l ----- -- -$36,712
* Includes $224 sold,
.
NOTE: H. indicates Retained and A indicates Allotted in the above statement*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0«
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDED NOVEMBER 11, 1931
(000 Omitted)
31-60 days
3 i/e%
•$ 0
592
59
138
225*
0
0
0
$ 0
0
245
0
441*
30**
0
3
$
$719
$1,242
Boston
New York
Cleveland
Richmond
Atlanta
Chicago
Minneapolis
San Francisco
$1,014
Totals
Over 90 days
2 7/8-3 1/4#
61-90 days
3 1/8-3 5/8#
1-30 days
a
304
81
128
100
284*
270**
75
0
Total
$ 0
9
0
0
2
0
0
0
304
682
432
238
952
300
75
3
§11
$2 ,986
*Pur chased at 2 3/4#
„**Purchased a ^. 3 3/4#
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDED NOVEMBER 11, 1931
(000 Omitted)
(Excluding Sales Contract?)
Government
Securities
Purchased
Sold
Matured
Totals
$31,953
20,241
1 1 |725
$
13-
Bankers
Acceptances
Total
$ 2,986
,
224
42,196
$39,434323- (Net Change
1-day holdover
and other bills)
$39,757-
$34*939
20,465
53,921
$39,4473231-day holdover
and other bills)
$39,770-*
HOLDINGS OF .GOVERNMENT SECURITIES A N D BANKERS ACCEPTANCES W E E K ENDED NOVEMBER 11,1931
(Including Sales Gontracts)
W ithin
15-days
16-30
days
31-60
days
61-90
days
G o v ’t Securities $ 36,791 & 30 ,588 $122,823 #50,175
Bills Purchased
127,817 160,348 255,473 49,821
Totals
$164,608 $190,936 $378,296 $79,996
91* days
6 months
Over 6
months
Total
$125,120
3,393
$331,966
0
$
727,463
596,752
$128,413
$381,966
$1,324,215
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
- *
Authority £*0*
/
Nowfcer 0, X9S1*
Mr. «* B. m n — m 9
Assistant Doputy
Wm&mmX %mm*m Biak,
» w 10®** «• X*
Deer Mr. Uattesoni
I
aoknowlsd^e receipt of and shall bring to the
attention of the tom tom * of the Board your U t t e r of Naronfrer
ft, addressed to Governor Meyer, m a im in g , report of trax»~
actions in Ooremu»nt securities and bankers acceptances as
reported to your oomittee for the period frcm Ootcfrer 29 to
Noyeiabor 4, 1931f inolusl*»*
?ery truly yours,
3*^
_
tM.
!• M# Modelland,
Assistant Secretary.
Reproduced from the Unclassified,/ Declassified,Holdings of-the National Aichives
DECLASSIFIED
% *■
Authority £»Q«
o
Mr, ;V
.^
............
i.'.r. is-—
Fe d e r a l R e s e r v e B a n k
o f
____
Kr.
....
m.
N e w Yo r k
Mr. P
c
-
i ...................
Mr.
Mr.
Hesse note - initial and
Return to S ^ iiiis iy ’s (K.'lse
'Mk
November 6* 1931
Dear Governor Meyer:
Unclosed is a report of open market operations
for the period from October 29 to November 4, 1931 inclu
sive, together with data received from Federal reserve
♦
banks.
W. 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
DECLASSIFIED
Authority £*0«
confidential
REPORT OF OPEN MARXET OPERATIONS FOR W E E K ENDED NOVEMBER 4, 1931
Holdings of Earning Assets of Federal Reserve Banks from November 5, 1950 to Date
(000 Omitted)
TOTAL
EARNING
ASSETS
$1,006,197
1,011,940
1,351,853
-1930Nov. 5
Nov. 26
Dec. 51
-1931Jan. 28
Feb. 25
Mar. 25
Apr. 29
Ma y 27
June 24
July 29
J&ig. 26
Sept. 50
Oct* 28
Nov. 4
GOVERNMENT SECURITIES
Outright
Sales
Contracts
Purchases
§
50
$601,481
0
595,634
43,405
686,064
945,405
895,606
847,256
- 925,572
876,489
947,554
954,795
1,156,656
1,557,970
2,198,258
2,105,027
609,877
599,442
598,459
598,306
598,368
618,503
677,977
727,998
738,455
726,959
727,07 6
BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
$176,416
$ 9,186
169,950
6,176
59,098
524,746
0
0
100
0
0
0
0
0
5,890
0
500
118,455
105,451
85,272
155,949
121,210
103,164
62,909
179,476
449', 022
723,262
656,509
1,788
886
0
55,816
5,291
5,226
5,627
1,042
19,505
1,418
5,524
BILLS
DISCOUNTED
$212,767
255,852
251,398
215,137
189,347
165,425
155,151
152,852
197,578
183,036
241,718
327,925
716,580
705,224
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
______________________ HIRING W E E K ENDED NOVEMBER 4, 1951___________
(000 Omitted)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Net
Balance
Nov. 4
Change
$ 57,566
$ 2241,956241,989
17358,412
30973,234
27,406
0
17,310
6+
0
100,864
0
31,211
27,915
3,056+
19,115
0
0
17,130
54,924
263-
$727,076
$
117+
BANKERS ACCEPTANCES
Net
Balance
Nov. 4
Change
$ 67,246
$ 2,361158,854
11,4106,155
1,82841,889
6,65915614,609
55,806
1,29599,599
6,61027,876
2,49922,507
2,59255,105
5,79218,755
1,44275,095
5,23257,055
41,077-
$656,509
$86,753-
BILLS DISCOUNTED
Net
Balance
Change
Nov. 4
$
910$ 18,066
14,579124,071
1,295101,904
4,844+
106,161
38,970
3,5942,550+
49,686
75,956
4,500+
957+
25,231
817+
7,186
1,818+
35,203
24,967
143+
6,69797,823
$705,224
$11,456-
COMMENT ON CHANGES ^ B E K E N D E D NOVEMBER 4, 1951
Total earning assets of the System showed a decrease of $93,211,000 for
the current statement week. The changes, by classification, consisted of increases
of $117,000 in outright purchases of Government securities, $500,000 in Government
securities held under sales contracts, and $4,106,000 in bankers acceptances held
under sales contracts, and decreases of $86,753,000 in outright purchases of bankers
acceptances, and $11,456,000 in bills discounted.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0« VffiSfr
2
Money
Market
During the past week, the reserve position of the New York
City banks was materially changed. At the beginning of the period an
excess of $72,000,000 existed, but by the close the City banks were
short in their actual reserves to the extent of $23,000,000. The loss
in reserve balances maintained at the Reserve Bank was largely a result
of the retirement of outstanding Federal Reserve credit. This decrease
in the amount of Federal Reserve credit
in use
represented a large
further reduction in the Reserve B a n k s 1 total portfolio of purchased
bills, of which about one-half represented repayment of foreign currency
bills, which were retired to a considerable extent with the proceeds of
gold released from earmark* In addition to this, the New York City bankr
retired a moderate amount of indebtedness.
At the same time, the New York money market lost funds as a
result of withdrawals of currency for week-end, month-end, and holiday
circulation purposes, as well as through Treasury transactions in this
market and through some tendency for funds to move to other centers as el
result of commercial and financial transactions. In the aggregate, how
ever, the aforementioned commercial and agency transactions were largely
provided for by an increase in the monetary gold stock of the country
(the first to occur during any reporting week since that ended Siptember
16), and by a net reduction in the amount of foreign balances maintained
at the Reserve Bank and by other miscellaneous transactions.
On the whole, money rates were little changed during the week.
The quotation for federal funds, however, rose to a high of 2 3/4 - 3
per cent* reflecting the development of a deficit in the member banks’
reserve position. Call money remained at 2 1/2 per cent on the Exchange,
with some offerings made in the outside market at 2 1/4 and 2 per cent. '
In the time money market, all maturities of fixed date accommodation
were quoted at 3 1/2 per cent bid, 4 per cent asked. A small amount of
trading in 60 day money was reported at 3 1/2 per cent. Bill rates were
unchanged throughout the week, but late in the afternoon of Thursday,
November 5, the bill dealers indicated that a somewhat lower schedule
of rates would become effective on November 6, reflecting the volume of
the demand for this type of investment, relative to the supply of bills
coming into dealers* hands. Open market commercial paper rates were
also unchanged during the reporting week at a range of 3 3/4 - 4 1/4
per cent. For the limited amount of activity in this market, 4 per cent
appeared to be the popular rate. Yields on short-term Government secur
ities were reduced between 3/8 and 1/2 per cent during the week.
G-ov eminent
Security
Market
The market for United States Government bonds showed improve
ment over the previous week# While there was not a strong demand there
appeared to be no volume of bonds pressing for sale and prices for the
various long-term issues advanced nearly a point for the week. Prices
for the short-term issues of Treasury certificates and bills also ad
vanced and only limited amounts were available in the market. At the
close of the current reporting period the average j^ield on the short
term issues, at dealers’ offering prices, was about 1.50% as compared
with 2$ for the past several weeks, and the average selling price for
the Liberty Loan and Treasury Bonds was 98,86* as compared with 97,96
at the close of the previous week,
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0*
Dealers’Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net
Approx*
Yield
Issue
Price
Change
1 7/8% Cert, of Ind. due Dec. 15, 1931 100 2/32
+ 1732
1.27%
2
%
"
” "
” Mar. 15, 1932 100 2/32
+ 6/32
1,81$
1.70%
1 1/8%
"
f
tf
” Sept. 15, 1932
99 16/32
+ 16/32
3 1/2% Treas. Notes called for payment
U13%
Dec. 15, 1931 100 8/32
% discount bid, 1 % a$ked
Treas.Bills - Nov. maturities Z
(nominal}
2 1/4%
- Dec.
"
1% "
*
2 1/ 2 %
- Jan.
* 1 V2% *
^
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Net
Issue
Price
Change
Issue
Price Change
1st 3 l/2s
99 28/32 +l7 |/32 Treas,4 l/4s 1947-52 105 16/32 +1*14/32
H
1st 4 l/4s 101 10/32 + 1(5/38
+ 17/32
4s
1944-54 101
n
4th 4 1 / 4 s 101 12/32 +
3 3/4s 1946-56 10Q
+1 .
n
+ 20/32
3 3/8s 1943-47 97
H
+ 22/32
3 3/Bs 1940-43 97
+1. 2/32
3 3/8 s 1941^43 97
tr
+1. 9/3J?
3 l/8s 1946-49 93
ft
+1. 6/32
1951-55 92
3s
Bankers
Acceptances
Dealers’offerings of i^nehdprsed bankers acceptances contin
ued at the following rates during-the current statement week: 3 1/4
per cent for 3 0 ’s, 60*s and 90* g; 3 1/2 per cent for 1 2 0 ’s; and
4 1/4 per cent for 180-day bills^
Reports
Week
Ending
Nov. 4
Boston reported that bankers acceptances continued to be an
attractive investment duping the past week and consequently the local
demand considerably exceeded the supply and dealers were obliged to
import bills from their offices in other cities to meet the demand.
Offerings to the resrrve bank were very light. In New York there was an
excellent demand for bills of all maturities throughout the week which
came from both domestic and foreign sources. The supply of bills
vvhich came into dealers hands, however, was very limited and they were
unable to fill orders.
Dealers hesitated about making any reductions
in their rates although it was reported that one or two dealers had
picked up some of the choice names of 90-day maturities at 3 3/8 per
cent and that some sales of the same had been made at 3 1/8 per cent.
Philadelphia reported that its acceptance market was moderately active*
The supply continued thin, with the demand good. Dealers reported
portfolios lower than for months* Ghicago reported that the bill
market in its district continued very dull. Dallas Reported that there
was a very good demand for bills in its district during the past week*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q«
4
OPERATIONS FOR ACCOUNT OF UN ITED .STATES TK5ASPRY
There were no transactions consummated under Treasury authorization lur
ing the current statement week.
SYST5M SPECIAL D S V B S M 5 N T ACCOUNT - .Q0V2RNI.I5INT SECT C I T I E S
..Transactions affecting the holdings of Government securities in the
System Account during the current statement week were as follows:
Redemption on November 2 of ^9,670,000 maturing Treasury Bills, which were replaced
by purchase of
9,670,000 - 1 7/8% certificates of indebtedness
due December 15, 1931
On November 4 the Federal Reserve Bank of Minneapolis repurchased
$3,000,000 of its participation of Government securities of which it was temporarilyrelieved on October 16.
These transactions did not affect the amount of total hold
ings in the Account, which remained at $524,468,000.
The participations by Federal
Reserve Banks, and the classification of issues held in the Account, at the close
of business Wednesday, November 4, 1931, were as foUoY/s;
PARTICIPATIONS B Y FBIERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
RECAPITULATION OF HOLDINGS B Y MATURITIES
5 55,862,500
115,649,500
48,332,500
63,233,500
27,405,500
14,773,500
79 ,266,000
27,210,500
20,273,000
19,030,500
7,132,000
45,299,000
Nov. 9* 1931'-'Treasury Bills $ 7,225,000
»»
w
Tt
8,111,000
16, 1931tt
*r
19,207,000
S3, 1931tt
tt
Tf
15,425,000
30* 1931ft'
tt
12,553,000
30,
1931D»cv
tt
tt
2,000,000
Jan. 13, 193278,244,500
Dec. 15, 1931- 1 7/8% c/x
115,481,500
M a r . 15, 1932- 2
% ft
ft
53,500,000
Sept .15, 1932- 1 1/8%
1,307,250
Dec. 15, 1931- 3 1/2% T/N
June 15, 1947- 3 1/2% 1st L/l. 30,025,000
Tt
tt
n
15,750,000
15, 1947- 4 1/4$
Oct .. 15, 19 38- 4 1/4# 4th " 115,039,750
$524,468,000
$524,468,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc«0*
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES A N D BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_________________ FROM OCTOBER 39, 1951 TO NOVEMBER 4 t 1951, INCLUSIVE
GOVERNMENT SECURITIES - SYSTEM
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
-Ban Francisco>
Purchases
$ 1,052,500
2,168,000
895,500
1,172,000
505,500
272,500
1,461*500
502,000
3,318,000
551,000
151,500
840,000
Sales
$ 1,276,500
4,124,000
1,143,000
1,481,500
505,500
272,500
1,461,500
502,000
318,000
351,000
131,500
1,105,000
A(
Net
Decrease
$ 224,000
1,956,000
247,500
309,500
0
0
0
0
0
0
0
263,000
Totals
$12,670,000
$12,670,000
$3,000,000
Net
Increase
0
0
0
0
0
0
0
0
3,000,000
0
0
0
$3,000,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALHS CONTRACTS)
Sales
Issue
Purchases
Issue
New York
$4,670,000
Misc. Gov*t Sec. $4,670,000
Misc. G o v ’t Sec.
Philadelphia
75,000
Feb. 1/3Z Tr.Bills
0
04,850
Misc. Gov't Sec.
Atlanta
91,200
Misc. G o v ft See,
tt
tr
♦
T
f
l
715,700
"
751,700
”
Minneapolis
Totals
$5,470,550
$5,587,900
BANKERS ACCEPTANCES
(OOO Omitted)
Maturities
and Sales
Held
Held
Else
in
N.Y.
where
$ 3,556*
0
16,453
0
Other Holdings
Hold
Sales
By Allot
Pur
Other
Con
ings
chased
ment from
Bills
tracts
N
o
v
f
4
Own Mkt,» New York
11 $ 2,523
$
521 R. $ 654
^P 67,246 $
Boston
4,013
11,091
158,854
New York
5,042**}
0
3,054 A.
Phila.
5,330
6,155
0
154
7,981
455 R.
2,147
0
3/386
41,889
0
Cleve.
6,759
80 tt
48,548
0
0
1 >341
14,609
0
156
0
R ichmond
14,765
0
0
tt
1*675
0
55,806
1,674
183
147
Atlanta
415
35,101
tt
4,541
99,599
0
8,975***
106,209
1,146
1,217
0
Chicago
1 r103
27,876
0
2,499
0
St. Louis
30,575
0
0
tt
723
92
22,507
0
2,675
Minn.
24,899
575
0
972
55,105
0
2,419**
1,375
Kan. City
0
0
58,897
1,004
0
18,755
1,442
0
0
Dallas
20,197
0
tt
2,279
75,095
1,500
6,256
0
San Fran.
78,527
256
768
§33,968
$28,418 $28,332
$599,474
Totals $645,150 $11,074
§3,054
460
Bills held over night by New York for distribution to other Fed. Res. Bks. 2,607
n
M
”
"
"
"
"
in foreign suspense account - - - - - ---T o t a l ----- -- - $37,035
Hold
ings
Oct.28
$ 69,607
170,244
*Includes $121 sold, **Includes $2,419 purchased by New York from
Kansas City, ***Includes $500 sold.
Digitized forNOTE:
FRASER R. indicates Retained
and A, indicates Allotted in the above statement.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
MATURITIES A N D RATES ON BILLS PURCHASED W E E K E N DED NOVff'TBER 4, 1921
(000 Omitted)
1-30 days
3 1/8%
$
Boston
New York
Philadelphia
Cleveland
Atlanta
Chicago
Minneapolis
San Francisco
Totals
31-60 days
3 1/8%
$
521
2,784
0
0
21*
15
0
0
0
1,511
0
0
22*
200
300
0
$2,033
$3,341
61-90 days
3 1/8%
$
0
3,718
453
80
104*
931
75
256**
$5,617
Over 90-days
3 1/4$
Total
$ 0
83
0
0
0
0
0
0
$
$83
$11,074
521
8,096
453
80
147
1,146
375
256
*Purchased at 2 3/4%
**Purchased at 3 1/8 to 3 7/8$
RECAPITUATION OF PURCHASES A N D SALES OF GOVERNMENT SECURITIES
A N D BANKERS ACCEPTANCES DURING W E E K E N I E D NOVEMBER 4, 1931
(-QOO omitted)
(Excluding Sales Contracts)
Purchased
Sold
Matured
Totals
Government
Securities
Bankers
Acceptances
|18,257
8,470
9,670
#11,074
3,040
53', 710
$45,67641,077-(Net Change
________ 1-day holdover
& other bills)
$86,753-
#
117+
Total
$29,331
11,510
63,380
|45,55941,077-(Net Change
________ 1-day holdover
& other bills)
$86,636-
HOLDINGS OF GOVERNMENT SECURITIES A N D BANKERS ACCEPTANCES W E E K E N I E D NOVEMBER 4,1931
(Including Sales Contracts)
Within
16-30
31-60
15-days______days_____ days
61-90 91 daysdays 6 months
Over 6
months_____ Total
Gov’
t Securities $ 28,836 $ 58,868 $133,324 $ 3,025 $121,044 $382,479 $ 727,576
Bills Purchased
122,031 131,387 290,216 93,941
4,458
fr________642,033
Totals
#150,867 $190,255 #423,540 $96,966 $125,502 $382,479 $1,369,609
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« V2R5%'
V-
October 31, 1931*
Mr.^W* B* Ijatteson,
Assistant Deputy Governor,
Federal Reserve Bank,
Hew York City, II, Y.
Dear Mr# tlatteoon:
I
acfcnowledgo rooeipt of and shall brin^; to tho
attention of the naraibers of tbe Board your letter of
October 30, addroaoed to Governor Meyer, enclosing re
port of transactions in Govorxsaent aoeurltieu and bankers*
acceptances an reported to your cowiaitto© for the period
free October 2*3, 1931 to October 28, 1931, inclusive).
Very txuly youra,
E* IU M e G l e H a n d ,
M a t ®taut Secretary*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority S«Q«
vii SPEJI&i* CiKuUi-A 1'i «.<
P L E A S E REAl* m e u p TLY, INIIIAJ, A N D R E T U R N TO S E C R E T A R Y ' S Q F F I G
jp/
Got, Meyer ^
'
x:'
Mr. H a m l i n v
^--fflr, J a a e s \/y
Mr. M i l l e r
K
.-
Mr.
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
CONFIDENTIAL
October 30, 1951.
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from October 22, 1931 to October 28, 1931 inclusive,
together with data received from Federal reserve banks.
truly yours,
I®. 3. Matte son
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK' ENDED OCTOBER 28, 1931
Holdings of Earning Assets of Federal Reserve Banks from October 29, 1930 to Cate
(000 Omitted)
TOTAL
earning
-1930Oct. 29
Nov. 26
Dec. 31
-1931Jan. 28
Feb. 25
Mar. 25
Apr. 29
27
May
June 24
July 29
Aug. 26
Sept. 30
Oct. 21
Oct. 28
$
ASSETS
975,021
1,011,940
1,351,853
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
$501,438
$ 1o
0
595,634
686,064
43,403
945,405
895,606
847,256
923,572
876,489
947,334
934,795
1,156,636
1,557,970
2,224,398
2,198,238
609,877
599,442
598,459
598,306
598,368
618,503
677,977
727,998
738,455
727,004
726,959
0
0
100
0
0
0
0
0
3,890
0
0
BANKERS ACCEPTANCES
Outright
Sales
Purchases Contracts
$161,906
$ 3,752
169,930
6,176
39,098
324,746
118,453
105,431
83,272
133,949
121,210
103,164
62,909
179,476
449,022
765,911
723,262
BILLS
DISCOUNTS
$201,603
233,852
251,398
1,788
886
0
35,816
3,291
3,226
3,<S27
1,042
19,505
3,155
1,418
215,137
189,847
165,425
155,151
152,852
197,678
183,036
241,718
327,925
698,311
716,680
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
___________________ CURING WEE?: E N D E D OCTOBER 28, 1931______________
( O O O l Sitte?]
Boston
Mew York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Balance
Net
Oct. 28
Change
$ 57,790
$ 585+
2,247+
243,945
58,585
643+
73,543
522+
0
27,406
17,304
5,063100,864
1,000+
31,211
0
24,879
21+
19,115
0
17,130
0
55,187
0
$726,959
’
$
45-
BANKERS ACCEPTANCES
Net
Balance
Change
Oct, 28
$ 69,607
4 3,5557,146170,244
7,981
297+
48,548
2,03014,765
3,99635,101
2,851106,209
10,79630,375
2,4541,29724,899
38,897
6,75920,197
1,63978,327
60578,112
182+
$723,262
$42,649-
BILLS DISCOUNTED
Balance
Net
Change
Oct. 28
942$ 18,976 $
SO,382138,650
4,950+
103,199
101,317
8,852+
2,494+
42,564
47,156
6,051+
9,938+
71,456
3,076+
24,264
6,369
1,3904,318+
33,385
485+
24,824
919+
104,520
#716,680
$18,369+
COIM'TT 0■
N C£/J~GE3 ",(EEK 3M33D OCTOBER 28, 1931
Total earning ass ets of the System showed a decrease of $26,160, 000 for
the current statement week. The changes by classification consisted of decreases
of $42,649,000 in outright purchases of bankers acceptances and §1,737,000 in
bankers acceptances held under sales contracts and an increase of $18,369,000 in
bills discounted*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
2
Money
Market
During the past reporting week, the New York City banks have
been continuously in the possession of excess reserves ranging from
^
$50,000,000 to $85,000,000. The outflow of gold from this country’
s ^
stock decreased further during the week to $49,000,000, as compared
with a loss of $88*000*000 in the previous week and $218*000*000 two
weeks ago. Exports of $63,000,000 of gold to France, $5,000,000 to
Holland, $2,500,000 to Belgium, and $2,,000,000 to Italy were partly off
set by imports of $9,000,000 from Argentina, $7*500,000 from Japan*.
$3,000,000 from Uruguay, and $2,000*000 from China, together with a net
release of $3,000,000 of gold from earmark. This decrease in the ear
marked holdings of foreign correspondents reflected in part the export
of gold previously earmarked, and this gold is included in the exports
enumerated above.
The effect of the week1 s gold outflow on the New York market
^ was more than balanced by two principal factors. The first was a net
return of currency and coin to the Reserve Bank from domestic use, which
for the country as a whole amounted to $24,000,000 for the period be
tween October 21 and 28; this is the first week since that ended
September 16 in which the amount of currency outstanding has shown any
decrease. The second factor was a continued large inflow of funds to
the New Y o r k market from other parts of the country** The net gain to
the N e w York market arising from the currency return and inflow of funds
from other districtsr which exceeded the gold loss, was accompanied by a
reduction in New Y ork City bank borrowings ancyW decline in Federal Re
serve purchased bill holdings, the latter reflecting an excess of matur
ing bills over offerings of new bills to the New York Reserve Bank,
Following the sharp advances effected during the preceding two
weeks, the general level of money rates was little changed during the
week just closed. Call money held at 2 1/2 per cent on the Stock Ex
change, with ample supplies of funds on offer. In fact, some loans were
arranged in the outside market at concessions of 1/4 and 1/2 per cent
from the Exchange quotation. Time money quotations likewise were little
changed at 3 per cent bid, 3 1/2 per cent asked for 60 days, and at
3 1/2 per cent bid, 4 per cent asked for maturities of 3 to 6 months#
Although a small amount of money was offered, virtually no trading was
reported. Federal funds were quoted for the most part at 1/8 - 1/4 per
cent,.though temporarily rising as high as 1/4 - 1/2 per cent on Monday*
Bill rates have been unchanged since October 16, and open mar
ket commercial paper has continued to be quoted at a range of 3 3/4 4 1/4 per cent. Little business is being done in commercial paper, due
both to the limited investment demand and the short supply, but it appears
that more paper is moving at the 4 per cent rate thun at any other.
Government
Security
Market
The market for United States Government bonds, which had shown
a steadier tendency during the last two days of the previous statement
week, continued relatively steady, The average yield on the short-term
issues, at dealers’offering prices# was about the same as at the close
of the two previous weeks, namely, 2 per cent, and the average selling
price for the Liberty Loan and Treasury bonds was 97,96 as compared with
the previous week’s average closing price of 97.80,
Reproduced from the Unclassified / Declassified Holdings of the National Archives
"
"
4
■
DECLASSIFIED
Authority £»Q»
3
1
2
1
3
D ealers’Offering Prices at the Close of the Current Statement Week
and .Net Changes from the Close of the Previous Statement Week
Net
Approx,
Issue
Price
Change
Yield
7/8% Cert, of Ind. due Dec. 15, 1931
100 1/32
+l/32
1.61%
%
"
"
”
” Mar. 15, 1932
99 28/32
-2/32
2.32%
----2.27%
1/8%
,f
"
”
,r Sept. 15, 1932
99
1/2% Treasury Notes called for payment
Dec* 15, 1931
100 8/32
----1.48%
Treasury Bills - Nov. maturities 2%
discount bid, none offered
(nominal}
”
” - Dec.
"
2 1/2$
Tf
”
"
"
tt
tt
^
J a iu
tt
2
3// 4 ^
n
».
tt
tt
Closing Prices on the N e w York Stock Exchange at tho Close
of the Current Statement week and Net C h a n t s from
Close of the Previous Statement Week
Net
Net
Cha nge
Price
Change
Pr ic c
Issue
Issue
+27/32
1st 3 1 / 2 s
98 22/32 - 6/32 Treas .4 \ f 4s 1947-52 104 2/32
t»
- 6/32
1944-54 101
1st 4 l/4s 100 26/32 +26/32
4s
v
99
+ 4/32
3 3/4s 1946-56
4th 4 l/4s 101
+ 4/32
tr
+28/32
96 12/32
3 3/8s 1943-47
tr
+12/32
96 12/32
3 3/8 s 1940-43
tf
- - 96
3 3/8s 1941-43
ft
92 17/32
-15/32
3 l/8s 1946-49
tt
- - 91 24/32
1951-55
3s
Bankers
Acceptances
D e a lers’ offerings of unendorsed bankers acceptances continued
at the following rates during the current statement week: 3 1/4 per cent
for 30s, 60s and 90s; 3 1/2 per cent for 120s and 4 1/4 per cent for 180day bills*
Reports
week
ending
Oct. 28
Boston reported that the yield on bankers acceptances during the
past week at prevailing rates resulted in an increased demand which was
somewhat in excess of the local supply, and dealers were obliged to import
$2,600-#000 from their offices in other cities in order to meet this situa
tion, One dealer reported the first out-of-town order for some time, Bili?
o£ the longer maturities moved more freely due to the higher rates. Offer
ings to the reserve bank during the period were very moderate. In New
York the volume of bills handled by dealers during the week fell offconsidcrably as compared with the past few weeks. There was an improved de
mand for bills both from local banks and foreign correspondents and dealers
found little difficulty in disposing of the bills which came into their
hands, in fact, at times they were unable to fill orders. This resulted
in dealers’portfolios declining to the low figure of about §18,000,000
on the 27th, but late in the day on the 28th a local bank sold a moderate
amount of bills to dealers and their aggregate portfolios at the end of
the week were <£23,000,000, unchanged from the end of last week*. The re
serve b a n k ’s purchases for System Account were light during the w« ek,
Philadelphia reported that its acceptance market was quiet. There were
very few new bills made, although the demand generally showed considerable
improvement,. Chicago reported that they found dealers practically un
willing to toke any position in bankers acceptances and. any demand arising
was taken care of by local banks. Dallas reported that the demand for
bills increased there during the past week and that no offerings v/ere
made to the reserve bank.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q»
~
r
4
OPERATIONS ?C:, ACCOUNT OF UNIT-1 D STATIC TREASURY
Transactions consummated under Treasury authorization during the currant
statement week were as follows:
Purchases of 01,000,000 par amount 3# Treasury bonds of 1951-55
account Postal Savings System
600,000 "
T’
Fourth 4 1/4# Liberty Loan
bonds, account Alien Property
Custodian
$1,600,000 - Total Purchases
and sale of
$
242,000 par amount 3# Treasury bonds of 1951-55,
account German Special Deposit
Account
"SYSTEM SPECIAL T ^ S T N ^ T A C C O S T - GOV^RNI'lHiNT SECURITIES
There were no changes effected in the maturities of the issues held in
the Account during the current statement week.
At the request of the Federal Reserve
Bank of Atlanta, it was temporarily relieved of ^5,000,000 of its participation in
government securities in the Account on October 27.
These securities were apportion
ed to other Federal reserve banks which advised that they would participate, as
follows:
Boston
New York
Philadelphia
Cleveland
Chicago
Total
$
585,000
2,247,500
645,500
522,000
1,000,000
05,000,000
Accordingly, the amount of total holdings in the Account remained u n
changed at 0524,468,000.
The participations by Federal reserve banks and the
classification of issues held in the Account at the close of business Wednesday,
October 28, 1931, were as follows:
Totals
^524,458,000
N
CD
RECAPITULATION OF HOLDINGS B Y MATURITIES
Nov. 2, 1931-Treasury Bills $ 9,670,000
ft
n
vt
7,225,000
9, 1931ii
ff
r
f
8,111,000
16, 1931p nz 1931tf
tt
tt
W(Jj
19,207,000
ff
»
f
Tf
30, 193115,425,000
11
B3C. 30, 193112,652,050
M
Jan. 13, 19322,000,000
Dec. 15, 193168,574,500
C/I
M a r . 15, 1932- 2
115,431,500
# It
•Sept,.15, 1932- 1 1/8#
53,500,000
D e c . 15, 1931-3 1/2# T/N
1,807,250
June 15, 1947- 3 1/2# 1st L/l 80,035,000
15 194715,750,000
H 1st *
Oct. 15, 1938- 44- 11/4#
4 th " 115,039,750
$524,458,000
J—’
PARTICIPATIONS B Y FEDERAL RESERVE BANKS
Boston
$ 57,085,500
New York
117,505,500
48,580,000
Philadelphia
Cleveland
63,543,000
Richmond
27,405,500
14,773,500
Atlanta
Chicago
79,255,000
St. Louis
27,210,500
17,273,000
Minneapolis
19,030,500
Kansas City
Dallas
7,132,000
San Francisco
45,552,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0*
ITEMIZED STATEMENT OF TRANSACTIONS D T GOVERNMENT SECURITIES A N D BANKERS ACCEPTANCES
AFFECTING THE B T V E S T O T T ACCOUNT OF ALL FEDERAL RESERVE BANKS
__________
FROM OCTOBER 22 TO OCTOBER 28, 1951, INCLUSIVE_____________________
GOVERNMENT SECT C I T I E S
SYSTEM INVESTM^TT ACCOUNT
Sale
Purchase
0
$ 585,000
$
0
2,247,500
0
645,500
0
522,000
5,000,000
0
0
000,000
Boston
New York
Philadelphia
Cleveland
Atlanta
Chicago
$5,000,000
5,000,000
Totals
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
Purchases
$ 950,000
0
54,600
839,850
New York
Philadelphia
Atlanta
Minneapolis
Totals
$1,889,300
7 3 ,1 6 2
Purchased
Own Mkt »
$
203 R
1 7 7 ,3 9 0
4 , 0 7 3 = fcrf
$
New York
Misc. Gov't Sec.
tt
**
ti
$1,844,450
Holdings
Oct. 2 1
Boston
4 ,6 3 7
Phila.
Cleve.
7 ,6 8 4
BANKERS ACCEPTANCES
(000 Omitted)
Maturities
By A llot
and Sales
Held
Held
ment from
Else
in
N Y & Sale by
Kan.City
N. Y.
where
$
0
0 5 ,2 0 7
$
9 4 5 NY
5 0 4 KC
1 ,8 0 0
499
50
R
259
tt
3 7 ,9 5 2
907
tt
569
1 1 7 ,0 0 5
842
it
1 ,7 5 0
3 2 ,8 2 9
0
50
2 6 ,1 9 6
4 5 ,6 5 6
2 1 ,8 3 6
7 8 ,9 3 2
i»
0
0
792
tt
6 9 ,6 0 7
1 7 0 ,2 4 4
202
3 ,0 5 8
0
4 ,3 4 7
862
St.Louis
Minn.
Kan. City
Dallas
San.Fran,
0
0
0
7 ,9 8 1
4 8 ,5 4 8
0
228
2 6 ,8 8 5
0
0
7, c 9
0
3 5 ,1 0 1
1 3 ,8 4 8
1 0 6 ,2 0 9
KC
0
0
0
0
7 ,7 2 c
r
1 ,1 3 8
1 ,7 5 3
209
5 ,0 0 6 * **
0
1 ,6 3 9
Mw
1 ,1 1 4
NY
0
0
0
1 ,8 0 1
2 ,4 1 1
1 0 ,5 3 5
4 0 2 **
0
2 ,4 5 4
622
1 4 ,7 6 5
371
3 ,9 5 6
3 ,1 3 3
3 0 ,3 7 5
2 4 ,8 9 9
3 8 ,8 9 7
2 0 ,1 9 7
7 8 ,3 2 7
0
0
0
0
1 ,1 9 0
*Includes $1,911 purchased from foreign correspondent.
**Sold
***Sold to other Federal reserve banks.
R. indicates Retained and A. indicates Allotted in the above statement.
5 ,8 5 3
0
£>645 , 1 5 0 0 1 , 4 1 8
|6 8 7 ,9 8 1
^ 9 ,6 4 3
Totals
$ > 1 1 ,9 0 5
0 2 8 ,3 0 6
.* > 3 1 , 4 3 6
Bills held over night by New York for distribution to other F •R.Banks -------------tr
»t
w
n
t!
tt
tt
in foreign suspense account
— — — — —
*
— — ~
Total ~
NOTE:
$
NY
0
351
1 8 ,7 6 1
" "
719
Other Holdings
Close Oct. 2 8 / 5 !
Other
Sales
Con
Holdings
Oct. 2 8 tracts Bills
0
1 3 ,0 1 9
A
0
5 0 ,5 7 8
Richmond
Atlanta
Chicago
Redemption
and Sales
Issue
$ 950,000 Oct. 26/31 Tr.Bills
2,000
Treas. Bds.1951-55
118,450 Misc. Gov*t Sec.
818,850 "
"
:r
Issue
Jan. 25, 1932 Tr. Bills
1 ,1 0 3
7 23
2 ,2 0 9
2 ,2 1 4
5 ,0 2 2
0 7 4 ,1 7 7
1 ,3 2 8
2 ,6 0 7
07 8*1 12
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
MATURITIES A N D R A T S 3 ON BILLS PURCHASED l/EEK E N D E D OCTOBER 28, 1951
(000 Omitted!
1-30 days
3 1/8-3 1/4$
Boston
New York
Cleveland
Richmond
Atlanta
Chicago
Minneapolis
San Francisco
Totals
31-50 days
3 1/8-3 3/8$
>
4
2,546
0
0
70*
0
0
£82
$
^2,902
$>3, 885
61-90 days
3 1/8-3 5/8$
15
2,589
0
0
374**
310
0
497
Over 90-days
3 1/4$
184
2,946
50
$51
463**
532
50
____ 13
$ 0
529
0
0
0
0
0
__ 0 _
$4,589
$529
$
Total
203
8,710
rr
'w’ V/
351
907
84 £
50
792
|11,9q p .f,
*Purchased at 2 3/4$
**Purchased at 2 1/8 to 2 3/4$.
RECAPITULATION OF PURCHASES A N D SALES OF GOVERMTSMT SECURITIES
a n d bankers acceptances hiring w e e k enied qctober 23 , 1951
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
$6,844
5,939
950
________
Totals
$
45-
Bankers
Acceptances
Total
$16,911
5,408
54,334
$42,8311 8 2 + (Net Change
______1 -day holdover
& other bills)
$23,755
11,347
55,284
$42,876182+(Net Change
_________ 1-day holdover
& other bills)
$42,649-
$42,594-
HOLDINGS OF GOVERNMSNT SECURITIES A N D BiNKERS ACCEPTANCES OCTOBER 28, 1931
(OCO Omitted)
(Including Sales Contracts)
Gov’
t Securities
Bills Purchased
Totals
Within
15-days
16-30
days
31-60
days
61-90
days
91 days6 months
Over 5
months
_ Total
$ 25,395
113,109
$ 41,391
114,504
$139,588
275,279
$ 17*602 $121,044 $381,939 $
214,263
7,525
0
$138,504
$155,395
$414,867
$231,865 $128,569 $381,939 $1,451,639
726,959
724,580
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
October 28, 19B1.
Mr* f* S* Hatteaon,
Aaalataat Deputy OoTeroor,
Federal Beaerve Bank,
tor York City, K. Y.
Deer Mr* Hat tea on:
1 acknowledge receipt of and shall bring to the
attention of tho merabere of the Board your latter of
October E3, a&dreaaed to Goreraor Meyer, enclaeing report
of transactions la Qmmsmmt securities and bantera*
acceptances aa reported to your ooonittee for the period
front October 18 to October 21, 1931, inclusive.
Very truly yours*
£# II* McClelland,
Assistant Secretary*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
■
*
Authority fc»0*
;
F O R i '' ”'*I AI* C I R C U L A T I O N
t L E A S E R E A D F K wr,FTLY, I N I T I A L A N D RETUEti TO
Gov* Meyer
Mr, H a m l i n ^
■
‘
c “
l■
Mr, M i l l a r
Fe d e r a l
of
OFFK
James
fir* "Magee
Re s e r v e Ba n k
Ne w Yo r k
CONFIDENTIAL
October 22, 1951.
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from October 15, 1931 to October 21, 1951 inclusive,
together with data received from Federal reserve banks.
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Yiashington, 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 OCTOBER 21, 1931
Holdings of Earning Assets of Federal Reserve Banks from October 22, 1930 to Date
(000 Omitted)
-193C Oct, 22
tt
29
Nov* 26
Dec. 31
-1931*Jan* 28
Feb. 25
Mar. 25
Apr, 29
May
27
June 24
July 29
Aug. 26
Sept. 30
Oct. 14
21
TOTAL
EARNING
ASSETS
| 976,900
975,021
1,011,940
1,351,853
945,405
895,606
847,256
923,572
876,489
947,334
934,795
1,156,636
1,557,970
2,104,443
2,224,398
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
$602,029
o
601,438
0
595,634
0
686,064
43,403
609,877
599,442
598,459
598,306
598,368
618,503
677,977
727,998
738,455
727,431
727 ,004
0
0
100
0
0
0
0
0
3,890
0
0
BANKERS ACCEPTANCES
Outright
Sales
Purchases
Contracts
$157,625
$19,965
161,906
3,752
169,930
6,176
324,746
39,098
118,453
105,431
83,272
133,949
121,210
103,164
68,909
179,476
449,022
716,426
765,911
1,788
886
0
35,816
3,291
3,226
3,627
1,042
19,505
13,981
3,155
BILLS
DISCOUNTED
$191,984
201,603
233,852
251,398
215,137
189,847
165,425
155,151
152,852
197,678
183,036
241,718
327,925
627,579
698,311
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
_________________ DURING 7/EEK ENDED OCTOBER 21, 1951_______________ _
(000 Omitted)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Net
Balance
Oct. 21
Change
$ 57,205
$ 918+
3,561241,698
57,942
755+
73,021
936+
4,15227,406
27+
22,367
99,864
0
31,211
0
24,858
3, lio19,115
io ,000+
3,035“
17,130
795+
55,187
$727,004
$
427-
BANKERS ACCEPTANCES
Net
Balance
Oct. 21
Change
$ 73,162
$ 6,678+
24,644+
177,390
7,684
388550,578
11,22918,761
822+
37,952
117,005
8,754+
32,829
1,01226,196 •
333+
4,759+
45,656
822+
21,836
11,169+
78,932
77,930
4,63o+
$765,911
$49,485+
BILLS DISCOUNTED
Net
Balance
Oct. 21
Change
$ 3,758+
$ 19,918
159 ,0 32
46,91398,249
6,957+
92,465
15,600+
8,889+
40,070
9,527+
41,105
61,518
22,026+
21,188
7,087+
8,259
2,367+
6,596+
28,567
24,339
5,507+
103,601
29,331+
$698,311
$70,732+
COMMENT ON CBANOfS WEEK ENDED OCTOBER 21, 1931
Total earning assets of the System showed an increase of $119, 955,000
for the current statement week. The changes by classification consisted of decreases of $427,000 in outright purchases of government securities and $10,826,000
in bankers acceptances held under sales contracts and increases of $49,485,000 in
outright purchases of bankers acceptances and $70,732*000 in bills discounted.
Holdings of other securities showed an increase of $ l l f000,000 representing Federal
Intermediate Credit Bank debentures purchased temporarily.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ «0*
2
Money
Market
Following the advance of the New York Reserve B a n k ’s dis
count rate to 3 1/2 per cent, further increases in rates occurred in
the various divisions of the money market. Call money renewed at
2 1/2 per cent on the Exchange on October 16 and has remained at that
level in subsequent days. On the day that the 2 1/2 per cent renewal
rate was initiated, some money was offered in the outside market at 3
per cent, but this rate shortly disappeared and toward the end of the
week outside money became available in limited quantities at 2 and
2 1/4 per cent. Time money rates were advanced from a nominal quota
tion of 3 per cent for all maturities to rates of 3 1/2 flat for 60 days
and 3 1/2 bid - 4 per cent asked for periods of 3 to 6 months. The time
money market became somewhat more settled, and a limited volume of 3 and
5 months money was loaned at 4 per ccnt. The last previous trading in
3 months money at 4 per cent was in April 1930.
On the 16th, open market bill rates were advanced from 7/8 to
1 1 / 4 per cent. Offering rates for unindorsed bills up to 90 day
maturity rose to 3 1/4- per cent and 4 month bills to 3 1/2 per cent, the
highest since March 1930. The 5 and 6 month maturities were advanced
to 4 1/4 per cent, highest since November 1929. At the same time, the
offering range for prime commercial paper rose to 3 3/4 - 4 1/4 per
cent. Yields on short-term United States Government securities were
increased sharply immediately after the rise in the Federal Reserve rate,
but subsequently receded to a level not greatly different from that pre
vailing just prior to the rate change. The rate for federal funds rose
temporarily to 3 1/4 per cent on the 16th, but quickly declined to
1/8 - 1/4 per cent as the N e w York City banks have been considerably
over in their reserves during the past week.
There was again a large loss of funds to the New York market
as a result of further gold exports and earmarkings during the week,
but there were certain compensating factors this week that did not
occur in the previous period. The reduction of $88,000,000 in the
United States monetary gold stock was not much more than one-third of
the very large loss of the previous week; the net loss since September
16, however, has reached $679,000,000. The decline of the past week
reflected chiefly exports of $65,000,000 to France, $16,000,000 to
Holland, $11,500,000 to Switzerland, and $2,500,000 to Belgium, to
gether with a net increase of $18,000,000 in the amount of gold held
under earmark.for foreign account. Gold imports of the period included
$15,000,000 from Japan and $1,000,000 from Canada.
As against this loss of funds through gold movements, the
inter-district flow of funds resulted in a m u c h larger gain to the New
York market than in the previous week, and foreign balances maintained
at the Reserve Bank were reduced by a large amount, as compared with a
large increase in the previous week. In addition, Treasury operations
in this market resulted in a gain, due principally to October 15 interest
payments on the public debt in excess of funds withdrawn by the Treasury
from banks in this district. The net gain in commercial and agency
transactions was supplemented to some extent by a moderately large
volume of Federal Reserve bill purchases (mostly on October 15) with
the result that the New York City banks were able to effect a net re
tirement of $58,000,000 of their borrowings from the Reserve Bank and
still maintain their reserve balances at the end of the week
$87,000,000 above requirements, as compared with virtually no surplus
a week ago.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
4
Government
Security
Market
”
Authority £»Q«
Accompanying the further increase in money rates * the mar
ket for United States G-overnment bonds continued weak* prices for the
long issues breaking sharply. The market since then, 'however, has
steadied down considerably and prices have shown some improvement dur*^
ing the last day or two^ The short-term issues and the Fourth Liberty
Loan bonds have held up'very well, prices firm with light offerings
and a fair demand* At the close o’
f the current reporting, period the
average yield on tlie short-term issues, at dealers* offering prices,
was about the same as at the close of the previous period, namely*
2 per cent* The average selling price for the Liberty Loan and Treas
ury bonds was 97*80 as compared with the low average price reached
during the week oJf 96,97 and the average price at the close of the
previous period of 99.52*
Dealers’Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net
.AppX 03C•
Change
Issue
Yield
Price
1 7/8% Gert. of Ind. due Dec. 15, 1951 100
1.87$"
99 30/32 -2/32
2
%
«
"
"
" Mar, 15, 1932
2.15 %
1 i/8%
"
V
”
^ Sept. 15/ 1932
99
2.25%
3 1/2% Treasury Notes called for payment
Dec. 15, 1931 100 8/32 - - r
1.74%
Treasury Bills - all maturities 3% discount bid* 2‘ asked
(nominal)
'
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Ghanges from
Close of the Previous Statement Week
Net
Net
Issue
Price
Issue
Change
Price
Change
1st 3 l/2s 98 28/32 -1. 2/32 ?reas.4 l/4s 1947-52 103 7/32 - 29/32
” 4s
1944-54 101 6/32 - 26/32
1st 4 1/4s 100
- 10/32
4th 4 l/4s 100' 28/32 +
6/32
"
3 3/4s 1946-56 98 28/32 -1.18/32
” 3 3/8s 1943-47 95 16/32 -3. 8/32
-2.'22/32
"
3 3/8s 1940-43 96
11
3 3/8s 1941-43 96
-2.16/32
-2.25/32
"
3 l/8s 1946-49 93
M
3s
1951-55 91 24/32 -3,25/32
Bankers
Acceptances
Dealers’
, offerings of unendorsed bankers acceptances were at
the following rates at the close of the current statement week: 3 1/4
per cent for 30s, 60s a$d 90s, 3 1/2 per cent for 120s and 4 1/4 per
cent for 180 day "bills. This represents an increase of 1 per cent
for the 30s, 60s and 90si 7/8 per cent for the 120s and 1 1 / 4 per
cent for 180-day bills over the prryious w e e k ’s offering rates.
Reports
week
ending
Oct. 21
Boston reported that the volume of transactions in the
local bill market decreased during the pest period. The further in
crease of 1 per cent in dealers’ offering rates, which placed 90-*day
bills at 3 1/4 per cent, drew some little demand from out-of-town
banks# The demand from local banks was fair. Offerings to the re
serve bank were quite moderate. In New York the bill market was not
very active this week. The first day of the period banks and dealers
anticipating an advance in the discount rate of the New York reserve
bank, sold bills in substantial volume to the reserve bank. Follow
ing the advance in the discount rate, dealers advanced their rates
to 3 1/2 bid for maturities up to 90 'days, 3 1/4 asked; 3 3/4 bid for
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q«
4 months, 3 1/2 asked J 4 1/2 bid for 5 and 6 months, 4 1/4 asked. 'The market then
quieted down considerably with few bills being offered to the dealers and a good
demand developed for bills of maturities less than 60 days, but dealers had very
few on hand, A foreign central bank purchased a fairly substantial amount of 90s
through us. Dealers* portfolios declined during the week by about $27,000,000 to
$23,000,000. Philadelphia reported that the acceptance market in its district
was quiet. There were no new bills offered and .no demand in evidence, Chicago
reported that there was very little demand for bills in its district and banks
continued trading for endorsement purposes* Dallas reported that there was an
increaed demand for bills in its district. There were no offerings to the reserve
bank.
OPERATIONS POP ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows;
Sales of
$
250,000 - 4 1/4% First Liberty Loan bonds, account
Secretary of the Interior
202>000 - 3
% Treasury Bonds of 1951-55, account
________
German Special Deposit Account
$ .452,000 - Total Sales
and purchase of
$5,790>000 - 5
2,500,000
__________
% Treasury Bonds of 1951-55j account
Postal Savings System
- 5 1/8% Treasury Bonds of 1946-49, account
Postal Savings System
$8,090,000 - Total Purchases
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES'
The only transaction consummated in the System Account during the
current statement week which effected the maturities of the holdings was the
Redemption on Oct. 15 of $5,780,000 Treasury bills which matured
on that day and which were re
placed by the purchase in the
market of
$2,000,000’
Treasury bills due Jan# 15, 1952
1,780,000 - 5 1/2$ Treasury notes called Dec. 15, 1951
$5,780,000
During the week the following changes were effected in the participations
of the Federal Reserve banks as follows:
Kansas Gity repurchased $10,000,000 of its participation
of which it was temporarily relieved on October 14*'
Dallas, Richmond and Minneapolis were each relieved of
$3,000,000 of their participation.
These transactions did not affect the amount of total holdings in the
Account, which remained at $524,468,000* The participations by Federal reserve
banks and the classification of issues held in the Account at the close of
business Wednesday* October 21, 1951^ were as follows;
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
PARTICIPATIONS
BY FEDERAL RESERVE BANKS
,X.
'■
TT- 1 f r - n p T i . ' - n T
J-
.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City ~
Dallas
San Francisco
Totals
-
“ l
*
.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
| 56,501,500
115,358,000
47,934,500
63,021,000
27,405,500
19,773,500
78,266,000
27,210,500
17,273,000
19,030 ,500
7,132,000
45,562,000
RECAPITULATION OF HOLDINGS BY MATURITIES
. .. . . . . . . . . . . . ...
Nov,
tr
♦i
t»
n
Deqt
Jan,
Dec.
Mar,
Sept.
Dec.
June
?»
Oct.
2,
9,
16,
23,
30,
30,
13,
15,
15,
15,
15,
15,
15,
15,
„ ..... .........
1931
1931
1931
1931
1931
1931
1932
1931
1932
1932
1931
1947
1947
1938
„i,p
. . . . . . . . . . . . . . . . . . .. . . . .
- Treas,
t»
tr
hm
tt
ti
tt
tf
- 1 7/8%
- 2
$
- 1 1/8#
- 3 1/2#
- 3 1/2#
4 1/4#
- 4 1/4#
Bills
t»
t»
ft
tt
....... ........ - .... . ..... .
$
9,670,000
7,225,000
8,111,000
19,207,000
15,425,000
tt
12,652,000
tt
2,000,000
68
j|574,500
C/I
115,481,500
53.500,000
1,807,250
T/N
1st L/L 80,025,000
1st »» 15,750,000
4th »' 115,039,750
ft
tt
$524,468,000
^524,468,000
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
____________________ FROM OCTOBER 15 TO OCTOBER 21, 1931, INCLUSiyff_________________
GOVERNMENT SECURITIES “ SYSTEM INVESTMENT ACCOUNT
Purchases
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Ohio ago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Sales
Net ...
increase
Net Decrease
§ 1 1318,500
30,232,000
1,935,500
2,441,500
7,219,000
142,500
1,992,500
196,500
2,146,500
10,065,000
73,000
2,017,500
§ 400,500
34,630,500
1,186,500
1,505,500
10,219,000
142,500
1,992,500
196,500
5,146,500
65,000
3,073,000
1,222,000
0
918,000
0
749,000
936,000
0
0
0
0
0
10 ,000f000
0
7^,500
0
4,398,500
0
0
3,000,000
0
0
0
3,000,000
0
3,000,000
0
$59,780,000
§59,780,000
|13,398,500
$13,398,500
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0 « V ffiSfr
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
Purchases
New York
Philadelphia
Richmond
Atlanta
Minneapolis
Dallas
Maturities
and Sales
Issue
Issue
|1,250,000 Oct. 15/31 Tr. Bills
|2,087,000 Dec. 15/31 T/N
- 05,000 3 3/8fo Treas.Bds. 1941-43
- 01,152,100 Misc. Gov’
t Sec,
242,850 Misc. GovTt Sec.
215,700
"
"
"
1,176,550
"
"
"
1,286,550
"
"
"
- 034,950
Totals
,511,400
$3,939,300
BANKERS ACCEPTANCES
(000 Omitted)
-
-~
-
Bo st on
Hold
ings
Oct. 14
| 66,484 $
Pur
chased
Own Mkt.
By Allot
ment from
N.Y* and
Sale by
Richmond
Maturit ies
and Sales
Held
Held
Else
in
where
N. Y.
Other Holdings
Close Oct.21/31
Hold
Sales
Con
ings
Other
Oct. 21 tracts
Bills
i
0
1
CD
$ 73,162
$ 5,290
989 R. $ 9,874 N.Y.
$ 5,102
917 Rich.
New York 152,746 36,093*”
-015,904
177,390 2,235 30,745
4,455 "
51,330 A.
Phila.
497 R.
7,687
-07,684
810 "
1,310
-06,983
Cleve.
51,463
50,578
6,988
-01,420 "
2,305
-0-0Rich.
-018,761
-01,801
29,990
2,462 10,031**
1,264 N.Y.
37,952
Atlanta
1,575
67
763 tt
-037,130
1,701 " "
2,403
1,391 »» 16,796 " «
108,251
-09,522
Chicago
117,005
11,060
-01,627 Rich.
33,841
32,829
St.Louis
-0-01,012
-0-01,103
Minn.
25,863
350
860
21
864 N.Y.
26,196
-0723
Kan.City
40,897
-07,005 " "
-045,656
-02,246
2,006
21,014
Dallas
-02,061
21,836
2,015
2,883 ” "
-0-0San.Fran, 67,763
595 ti
-01,171
78,932
10*943 " "
452
4,572
802 Rich.
$643,129 $92,008
Totals
#61,361
$27,430 $29,757
$687,981 $3,155 $74,151
Bills held over night by New York for distribution to other Fed. Res, Banks
1,171
TT
TI>
TT
tt
t»
V
"
in foreign suspense account
2,608
Total - - - - - - - - - - - - - - - - - - - - $77,930
*Includes $320 purchased from foreign correspondent and $182 purchased in Cleveland.
**Sold to other Federal reserve banks,
NOTE: R. indicates Retained and A* indicates Allotted in the above statement.
-
-
-
During the current statement week the following Federal reserve banks, owing to
their reserve position, discontinued their participation in the System purchases of
bankers acceptances:
Bank
Date Effected
Bank
Date Effected
St. Louis
October 15
Richmond
October 16
Minneapolis
Kansas City
"
16
"
19
Dallas
"
19
The Federal Reserve Bank of Richmond, in addition to discontinuing its partici
pation in System purchases of bills, sold to other participating banks desiring
participation $10,000,000 of their bill holdings. These bills were allotted to other
Federal reserve banks, as shown in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ » 0 « \ 3 B S y
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDS I OCTOBER 21, 1951
(000 Omitted)
1-30 days
2 1/8-3 1/8#
Boston
New York
Philadelphia
Atlanta
Chicago
Minneapolis
San Francisco
$
Totals
31-60 days
2 1/8-3 1/4#
73
25,598
11
8
0
0
93
92
12,263
5
126
359
0
§25,783
61-90 days
2 1/8-3 5/8#
Over 90-days
2 1/2-3 ,1/2#
Total
v? ^4
1,857
0
0
0
0
210
800
47,705
481
629
1,032
350
280
12
£ 989
87,423
497
763
1,391
350
595
§13,055
§51,277
§1,893
§92,008
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDED OCTOBER 21,1931
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
§65,292
58,689
5,030
Totals
§ 427-
Bankers
Acceptances
Total
§102,039
10 ,031
47,156
44,852+
4,635+ (Net Ghange
1-day holdover
and other bills)
§ 49,485+
§165,551
68,720
52,186
§ 44,425+
4,655+ (Net Ghange
1-day holdover
and other bills)
$ 49,058+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES OCTOBER 21, 1951
(000 Omitted)
(Including Sales Contracts)
Within
15 days
16-30
days
31-60
days
61-90
days
6 months
91 daysmonths
Over 6
Total
Gov’
t Securities § 10,620§ 28,836 §167,867 § 16,652 §121,044 §378,985 § 724,004
Bills Purchased
124,886 105,446 248,507284,625
7,804
0_________ 769,066
Totals
§155,506 §132,282 $416,174 §301,275 #128,848 §378,985 §1,493,070
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
A uthority £ » 0 «
O c to b e r 1 ? # 19 3 1
Mr* W. B- M attaso**,
A s s i s t a n t D ep uty G o v e r n o r ,
F e d e r a l Reserve Bank,
New Y o r k f Hew Y ork *
D ear Mr# M a tte so n t
2 a ck n o w le d g e reoelpt of and shall bring t o
t h e a t t e n t i o n o f t h e aantbars o f t h e F e d e r a l R e se rv e
B oard y o u r l a t t e r o f 0© tobar lQ t h # a d d ra a e a d t o G ot*
a m o r M eyer* e n o lo s i n g a o p y o f t h a r e p o r t o f t h e open
m a rk e t o p e r a t io n e f o r t h a p e r io d f r o a O o to b a r 8t 19 3 1
t o O c to b e r 1 4 , 19 8 1 i n c l u s i v e *
V a ry t r u l y y o u r s ,
E* M* M o C lo lla n d ,
A s s is t a n t S e e ra ta i y
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»Q*
FOR SPECIAL CIRCULATION
L E A S E I _D PROMPTLY, INITIAL AND RETU
Gov. MeyejjP'
Mr. Hamlin
M r. M i l l e r
flCp,Y'3 OFFICE
*Magee r
F e d e ra l R e s e rv e B a n k
of
Ne w Yo r k
CONFIDENTIAL
October 16, 1931.
Dear Governor Meyer•
Enclosed is a report of open market operations for
the period from October 8, 1931 to October 14, 1931 inclusive,
together with data received from Federal reserve banks.
W. E. Matteson
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
Mr^dle
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« VSRSfr
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED OCTOBER 14, 1931
Holdings of Earning Assets of Federal Reserve Banks from October 15, 1950 to Date
(000 Omitted)
-1930Oct* 15
n
29
Nov* 26
Dec. 31
-1931Jan* 28
Feb* 25
Mar* 25
Apr. 29
May
27
June 24
July 29
Aug* 26
Sept. 30
Oct,
7
»»
14
TOTAL
EARNING
ASSETS
$1,003,817
975,021
1,011,940
1,351,853
GOVERNMENT SECURITIES
Outright
Sales
Purchases Contracts
$601,614
| 0
601,438
0
595,634
0
43,403
686,064
609,877
599,442
598,459
598,306
598,368
618,503
677,977
727,998
738,455
738,345
727,431
945,405
895,606
847,256
- 923,572
876,489
947,334
934,795
1,156,636
1,557,970
1,801,217
2,104,443
BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
$155,842
$29,650
3,752
161,906
6,176
169,950
39,098
324,746
118,453
105,431
83,272
133,949
121,210
103,164
62,909
179,476
449,022
541,771
716,426
0
0
100
0
0
0
0
0
3,890
0
0
BILLS
DISCOUNTED
$210,439
201,603
235,852
251,398
1,788
886
0
35,816
5,291
5,226
3,627
1,042
19,505
39 *585
13,981
215,137
189,847
165,425
155,151
152,852
197,678
183,036
241,718
327,925
463,393
627,579
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
______________ DURING WEEK ENDED OCTOBER 14, 1 9 5 1 ____________
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
Oct. 14
Ghange
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Cnicago
St. Louis
Minneapolis
Kansas City
Dalla s
San Francisco
N, Y. holdovers
and other bills
Totals
$ 56,287
245,259
57,187
72,085
31,558
22,340
99,864
31,211
27,968
9,115
20,165
54,392
*>727 ,431
$ 1,460+
19,554+
843+
0
0
0
1,428+
0
38+
20 ,0005*1109,127-
$10,914-
BANKERS ACCEPTANCES
Net
B e lanee
Change
Oct. 14
$ 66,484
152,746
7,687
51,463
29,990
37,130
108,251
33,841
25,863
40,897
21,014
67,763
$ 19,726+
43,674+
3,512+
3,842+
3,686+
12,360+
22,959+
9,540+
8,360+
12,799+
3,980+
19,290+
73,297
10,927+
$716,426
$174,655+
BILLS DISCOUNTED
Net
Balance
Oct. 14
Change
$ 16*160
205,945
91,292
76,865
31,181
31,578
39 ,492
14,101
5,892
21,971
18,832
74,270
$ 4,399-+
82,512+
19,352+
15,801+
2,589+
828+
11,046+
408+
1,993+
6,046+
2,756+
16,456+
$627,579
$164,186+
COMMENT ON CHANGES WEEK ENDED OCTOBER 14, 1951
Total earning assets of the System showed an increase of $305,226,000 for
the current statement week# The changes by classification consisted of decreases
of ^10,914,000 in outright purchases of government securities and $25,604,000 in
bankers acceptances held under sales contracts, and increases of $174,655,000 in
outright purchases of bankers acceptances, and $164,186,000 in bills discounted.
The decrease of -^10,000,000 in outright purchases of government securities rep-*
l-es^nted the resale of $10,000,000 Governments taken over recently by the Federal
Reserve Bank of San Francisco from a member bank*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority &»Q«
2
Money
Market
All branches of the money market quoted higher rates during
the week following the increase of 1 per cent in the New York Reserve
Bank’
s discount rate on October 8.
Call money renewed at 1 1/2 per
cent on Friday, the 9th, but the new loan rate was raised to 2 per cent
during the afternoon of that day. In the subsequent days, the 2 per
cent rate prevailed throughout. This is the highest quotation for call
funds since last April. Time loans rose to a nominal quotation of 3
per cent, but virtually no business was reported. Open market bill
rates were advanced considerably; the 90 day maturity showed a total
advance of 1 1/8 per cent, including a 1/8 per cont rise on Thursday,
October 15; 5 and 6 months bills were also advanced 1 1/8 per cent
during the week and 4 months bills wore up 1 1/4 per cent, and 30 and
60 day bills showed a net rise of 1 per cent. In the case of the 90 day
maturity the 2 3/8 per cent offering rate established on the 15th was
the highest since June 1930.. The rate for commercial paper in the open
market was raised to a range of 2 1/2-3 per cent with a decided tendency
^toward the higher rate. The federal funds quotation rose. 1 per cent
from 1-1 1/4 per cent to 2-2 1/4 per cent. Yields on short-term Govern
ment securities likewise rose about 1 per cent.
With respect to the movements of funds in the Few York money
market during the past week, the continued loss of gold to this country’
s
monetary stock was again the dominating influence. The weekly gold
stock figure for October 14 was $4,424,000,000, a reduction of
$218,000,000 from the previous week. This loss followed
decreases
that aggregated $373,000,000 in the preceding three weeks, making a total
loss of nearly $600,000,000 for the period between the middle of
September and the middle of October. The reduction in the gold stock
during the past week was the result chiefly of a net increase of
$97,000,000 in the amount of gold held under earmark for foreign cor
respondents 'end of exports of $114,000,000 to ?rance, $6,000,000 to
Belgium, -^5,000,000 to Holland, and relatively small amounts to several
other countries. In addition to the drain on New York City bank re
serves arising from the gold loss, there was a large increase in the
amount of foreign balances maintained at the Reserve Bank. An inflow of
funds to this market from other parts of the country resulted in some
gain to this market, but a greatly increased amount of Reserve Bank
credit was needed in order to balance the member bank position. This
additional Reserve Bank credit was supplied in large part by purchases
of bills by the Few York Reserve Bank for System account, but the New
York City banks also found it necessary to borrow $66,000,000, raising
their indebtedness to $137,000,000, the largest amount since January
1930. Even after the calling of this large amount of Reserve Bank
credit into use, the New York City banks closed the reporting week with
their reserve balances just about equal to requirements, as compared
with a surplus of #30,000,000 on the previous Wednesday.
Government
Security
Market
The market for United States Government securities which, dur
ing the latter part of the previous statement week showed some indica
tions of recovering from the recent weakness, again turned Y / e a k , more
especially the Liberty Loan and Treasury bonds, in which issues there
was heavy liquidation. At the close of the current reporting perioi the
average yield on the short-term issues, at dealers’offering prices, was
about 2 per cent as compared with 0.875 per cent at the close of the pre
vious week and the average selling price for the Liberty Loan and Treas
ury bonds was 99.52 as compared with the previous week’
s average closing
price of 101.75. The sharp break in government securities was occasioned
by the rather abrupt change in all money rates, and during the adjustment
period the market for all issues of governments', while not actually de
moralized was extremely weak.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0*
J^S BiB S aniiininiinM TiiiiinW iS
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net
Approx*
Issue
Price
Change
Yield
7/8% Cert, of Ind. due Dec. 15, 1931 100
- 6/32
l.i
c£ tt
tf
ft
tt Mar. 15, 1932 100
-15/32
l.i'9%
1/8%
"
"
»»
" Sept. 15, 1932
99
-31/32
2.23%
1/2% Treasury Notes called for payment 100 8/32
-10/32
1.94%
Dec. 15, 1931
Treasury Bills - all maturities 2 3/4% discount bid,
asked
(nominal)
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Net
-Issue
Price
Change
Issue
Price
Change
1st 3 l/2s
99 30/32 - 1 . 7/32 Treas *4 l/4s 1947-52 104 4/32 -4.16/32
n
1st 4 l/4s 100 10/32 -1.22/32
1944-54 102
-2.22/32
4s
tt
4th 4 l/4s 100 22/32 -1.18/32
3 3/4s 1946-56 100 14/32 -2. 2/32
tt
3 3/8s 1943-47
98 24/32 -1.24/32
tt
3 3/8s 1940-43
98 22/32 -1.22/32
tt
98 16/32 -2.
3 3/8s 1941-43
tt
95 25/32 -3.13/32
3 l/8s 1946-49
tt
1951-55
95 17/32 -1,29/33
3s
Bankers
Acceptances
Heporta
week
ending
Oct. 14
Dealers’offerings of unendorsed bankers acceptances were at
the following rates at the close of the current statement week; 2 1/4
per cent for 30s, 60s and 90s, 2 5/8 per cent for 120s and 3 per cent
for 180-day bills. This represents an increase over the previous week*s
rates of 1 per cent for 30s, 60s and 90s, 1 1 / 4 per cent for 120s and
1 1 / 8 per cent for 180-day bills.
Boston reported that there were three advances in dealers’bid
and asked rates for bills in its district during the past period making
a total increase of 1 per cent, placing the present quotations at 2 3/8
bid, 2 1/4 asked for 90-day bills. The Reserve bank also increased its
buying rates twice during the period to the present rate of 2 1/4 for
90-day bills; repurchase agreements at the same rate. This advance in
rates tended to make bills somewhat more attractive as reflected in in
creased sales by dealers. Banks, however, were reluctant to purchase too
heavily and appeared inclined to wait for the rates to become more stable.
Offerings to the Reserve bank while moderate were heavier than fbr some
time* In New York the bill market was very unsettled throughout the week.
Following the advance in the Reserve bank’
s discount rate, bill dealers
made three advances in their rates during the week and at the close of the
week were bidding 2 3/8 for maturities up to 90 days, 2 1/4 asked, 2 3/4
bid for 4 months, 2 5/8 asked, 3 1/8 bid for 5 and 6 months, 3 per cent
asked. Dealers found the demand very light with new bills being offered
to them in increased amounts. This resulted in the Reserve bank making
substantial purchases from the dealers during the week as well as from
banks and foreign correspondents. On the morning of the 15th, dealers
made a further increase in rates of 1/8 per cent on 90-day maturities
only. Philadelphia reported that the offerings to the Reserve bank in
creased as well as the supply of new bills in its district. The demand,
however, continued light with the Reserve bank about the only outlet.
Chicago reported that there was very little demand for bills in its
district. Dallas reported a small demand for bills in its district.
There was one large offering to the Reserve bank*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
r**,a w *. w=
irmmu i'i ■■nWMlWWIfffWWP'TllfWlin-i
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY .
........................
■ ......................... - .................. —
............. ...... ..
.
.■,.1,
v . I, — , 1 , ^ —
......M U....................... ..
. n,
Transactions consummated under Treasury authorization during the current
statement week were as follows;
Purchases of $1,000,000 *• Fourth 4 l/4$ Liberty loan bonds)
700,000 - 3 1/8$ Treasury bonds of 1 9 4 5 4 9 )
3
°Jo
"
"
" 1951-55)
t
account
postal Savings
System
450
500
CD
O
oto
H*
131,
to
$
<3
#7,100, 000
Property Custodian
Fourth 4 1/4$ Liberty Loan bone
Special Deposit Account
3 1/2$ Treasury notes, due Dee,
German Special Deposit Account
$1*964, 250
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
,1
.......... .............1 -
.......................■»■■■— p»"
■ ..................... ......................................... «.......y n w i — ■■■
.........., |i
, ■ -■ ,n-
- .............. .
—
" >
■
During the current statement week the following exchanges were advan
tageously effected in the market:
$ 4,950,000 - Treasury Bills due Oct. £5, 1931
5.000.000 "
”
*’ Nov. 2, 1931
5.000.000 - 1 7/3% certificates due Dec. 15, 1931
a total of
§14,950,000 - exchanged for
$ 2,998,000 - 1 7/8$ certificates due Dec. 15, 1931
6,952,000 - Treasury Bills due Etec. 30*' 1931
5..000.000 - 1 1/8$ certificates due Sept. 15, 1932
014,950,000
Daring the week the Federal Reserve Bank of Dallas was relieved temporar
ily of §5,000*000 of its participation in government securities in the System
Account, and the Federal Reserve Bank of Kansas City was relieved temporarily of
$20,000,000 of its participation. The $5,000,000 participation of the Federal
Reserve Bank of Dallas was taken over into the participation, of the Federal Reserve
Bank of New York (no apportionment to other participating banks being made of this
sale as it is expected that the Federal Reserve Bank of Dallas will be able to re
purchase sane within a few days), and the $20,000,000 participation taken over from
the Federal Reserve Bank of Kansas City if/&s apportioned to reserve banks desiring
participation,- $10,000,000 on October 13 and $10,000,000 on October 16.
#
These transactions did not affect the amount of total holdings in th<p
System Account which remained at $524,468,000. The participations by Federal reserve
banks and the classification of issues held in the Account at the close of business
Wednesday, October 14, 1931, were as follows:-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
A uthority £ « 0 «
5
PARTICIPATIONS BY FEDERAL, R3SSR7E BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
$ 55,583,500
119,756,500
47,185,500
62,085,000
30,405,500
19,773,500
78,266,000
27,210,500
20,273,000
9,030,500
10,132,000
~ s~
44,766,500
<S>524,468,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Oct. 15, 1931
Nov. 2, 1931
tt
9, 1931
»f 16, 1931
tt 23, 1931
ti 30, 1931
Dec. 30, 1931
tt 15, 1931
Mar. 15, 1932
Sept .15, 1932
Dec. 15, 1931
June 15, 1947
»t 15, 1947
Oct. 15, 1938
- Treasury Bills $
t»
tf
-
-
-
-
-
1
2
1
3
- 3
-4
- 4
tf
tt
tt
tt
tt
tf
rt
tt
tt
tt
7/8#
#
1/8$
1/2#
1/2#
1/4#
1/4#
C/I
if
tt
T/N
1st L/L
1st tt
4th tt
3,730,000
9,670,000
7,225,000
8,111,000 ^
19,207,000 V
15,425,000 ^
13,653,000 \
68,574,509*^
115,481,500
53,500,000
27,250
80,025,000
15,750,000
115,039,750
$524,468,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
6
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_____________________FROM OCTOBER 8 TO OCTOBER 14, 1931* INCLUSIVE___________________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Net Increase
Purchases
Sales
$ 1,461,000
Boston
$ 1,543,000
$ 3,004,000
New York
35,365,000
20,391,000*
12,974,000
Philadelphia
2,167,000
846,500
1,320,500
Cleveland
1,770,000
0
1,770,000
Richmond
867,000
0
867,000
Atlanta
563,500
0
563,500
1,428*500
Chicago
3*618,500
2,190,000
0
St. Louis
776,000
776,000
0
Minneapolis
578,500
578,500
0
20,732,500
Kansas City
732,500
0
Dallas
383,500
5,383,500
873,000
San Francisco
2,124,500
1,251,500
$25,000,000
$49,950,000
Totals
~ $49,950,000
Net Decrease
0
0
0
0
0
0
0
0
0
20,000 *000
5,000,000
0
$25,000,000
*Includes $10,000,000 taken over temporarily from Kansas City on October 14 and apportioned to participating banks on October 16 •
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS)
Issue
Purchases
Issue
iSales
887,000
Misc. Gov’
t SeC«
New York
$
50,000 Dec. 15/31 C/I $
3,000
% Treas. Bds. 1951-55
Philadelphia
0
418,450
Misc. Gov’
t Sec*
Atlanta
419,000 Misc Gov* t Sec*
it
"
"
1
*026,450
"
M
Minneapolis
1,063,950
"
tt
n
«
145,000
"
*
Dallas
34,950
”
tt
*000,000
"
"
10
San Francisco
o
$12,479,900
Totals
$1,567,900
BANKERS ACCEPTANCES
(OOO Omitted)
Maturities
Other Holdings
and Sales
Close Oct.14/51
Hold
Sales
Held
Pur
Hold
By Allot** Held
Other
Con
ings
Else
ment from
in
ings
chased
Oct* 14 tracts
Bills
where
Oct. 7
Own Mkt.
New York
N*Y#
989 $ 4,496
$ 1,88B $ 66,484 $
0
Boston
$ 46,758 $ 3,435 R . $ 18,179
20,261
152,746
12,544
New York
109,072
26,496
0
70,170*”
0
128,872 A,•
Phila,
5,957
7,687
0
4,175
1
443 R,
3,070
0
tt
5,991
47,621
263
2,777
0
Cleve.
6,356
0
51,463
Rich.
1,801
0
29,990
26,304
0
4,754
1,068
0
Atlanta
2,306
0
793
37,130
24,770
1,505 tt
11,678
30
8,093
0
Chicago
29,159
6,981 108,251
85,292
781 tt
0
1,103
St. Louis
35,841
0
10,474
934
0
0
24,301
723
179
25,863
8,991
452
0
Minn.
17,503
0
1,720
Kan. City
5
40,897
0
28,098
0
14,394
1,590
1,735
2,172
893
0
Dallas
17,034
60cc0d 21,014
2,761 tr
3,937
448
San Fran*.
67,763
48,473
2,053 tt
2,408
19,645
0
Totals
$479,401 $210,283
$128,372 $52,226 $14,329 $643,129 $13,981 $58,103
Bills held over night; by New York for distribution to other Fed. Res>• Bks* -• 11,532
tt
tf
tt
ft
t» tt
tt in foreign suspense account - - - - - *
5,662
T o t a l ----------------- $73,297
*Includea ^50,051 purchased from foreign correspondent
and $
511
H
in Cleveland
NOTE: R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ «0« VTBSff
MATURITIES AND RATES ON BILLS PURCHASED WEEK EUIED OCTOBER 14, 1931
(000 Omitted)
1-50 days
1 1/4*2 1/855
Boston
New York
Philadelphia
Cleveland
Atlanta
Chicago
Dallas
San Francisco
^Totals
31"60 days
1 1/4-2 1/9%
61-90 days
1 1/4-2 1/4$
Qvor 90-days
1 3/8-2 1/2$
Total
880
55,495
317
163
355
100
0
400
$ 1,732
44,675
10
100
559
100
33
3
$
823
96,690
116
0
391
581
2,180
1,406
$ 0
2,182
0
0
200
0
548
244
$
$57,710
$47,212
$102,187
$3,174
$210,233
$
3,435
199,042
443
263
1,505
781
2,721
2,053
REG APITUL AT ION OF PURCHASES AND SALES 0? GOVERM-IENT SECURITIES
AND B A K E R S ACCEPTANCES DURING WEEK ENDED OCTOBER 14, 1951
,
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
$51,517
62,431
0
Totals
Bankers
Acceptances
Total
$210,283
60
46,495
$163,728+
10,927+(Net Change
_________ 1-day holdover
& other bills)
$174,655+
$261,800
62,491
46,495
$152,814+
10,927+(Net Change
_________ 1-day holdover
& other bills)
$163*741+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES OCTOBER 14, 1931
(000 Omitted)
(Including Sales Contracts)
Gov't Securities
Bills Purchased
Totals
Within
15-days
15-30
days
31-60
days
51-90
days
91 days6 months
I 5,980
123,389
$ 25,395
98,871
$ 71,979
231,101
$119,784
269,248
$121,044
7,798
$383,249 $727,431
0
730,407
$129,369
$124,266
$303,080
$389,032
$128,842
$383,249 $1,457,838
Over 6
months
Total
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
October 10, 1931*
Dear- lip* Matteson:
I
acknowledge receipt of and shall brl&» to the
attention of the mnber^ of the Board
ymr
letter of
October 9th, addressed to Governor Meyer, enclosing re
port of transactions in (krsrernrrmt aoourities and bankers’
acceptances as reported to your ccwmittee for the period
frost October 1, 1931 to Gatohor 7, 1051, inclusive.
Very truly yours,
I* M. IlcOelland,
Assistant Secretary*
Et*# W. B# Matteson,
Assistant Deputy Governor,
Federal Reserve Basalt*
Hew Toric City, II. Y.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q«
FOR SPECIAL CIRCULATION
T L % INITIAL AND
TO. SI
Mr. H a m l i i ^ j ^ J a m a s , w y
Mr. M i l l e r
Wc» Magee
1'I A R T S OFFIC
F e d e ra l R e s e rv e B a n k
of
Ne w Yo r k
CONFIDENTIAL
October 9, 1931
Dear Governor Meyers
Enclosed is a report of open market operations for
the period from October 1, 1931 to October 7, 1931 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 / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« VffiSfr
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED OCTOBER 7, 1931
Holdings of Earning Assets of Federal Reserve Banks from October 8, 1930 to Date
(000 omitted)
■
“
1930Oct,
8
»»
29
Nov, 26
Dec. 31
-1931Jan, 28
Feb
25
Mar# 25
Apr. 29
May^ 27
June 24
July 29
Aug* 26
Sept, 30
Oct.
7
TOTAL
EARNING
ASSETS
$ 990,900
975,021
1,011,940
1,351,853
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Gontracts
$600,289
$
150
601,438
0
595,634
0
43*403
686,064
945,405
895,606
847,256
923,572
876,489
947,334
934,795
1,156,636
1,557,970
1,801,217
609,877
599*442
598,459
598,306
598,368
618,503
677,977
727*998
738,455
738,345
0
0
100
0
0
0
0
0
3',890
0
BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
$183 ^092
$27,931
3,752
161,906
6,176
169,930
39 *098
324,746
118,453
105,431
83,272
133,949
121,210
103,164
62,909
179,476
449,022
541,771
1,788
886
0
35,816
3,291
3,226
3*627
1,042
19*505
39,585
BILLS
DISCOUNTED
$173,166
201,603
233,852
251,398
' 215,137
189,847
165,425
155,151
152,852
197,678
183,036
241,718
327,925
463,393
CHANGES IN EARNING ^SSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
________ DURING WEEK ENDED OCTOBER 7, 1 9 5 1 _________
—
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
Oct, 7
Change
$ 54,827
3 0
225,705
0
56,344
0
0
72,085
31,558
0
722,340
98,436
0 ’
31,211
0
27,930
16829,115
0
65+
25,275
63,519
0
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y, holdovers
and other bills
Totals
$738,345
$110-
BANKERS ACCEPTANCES
Net
Balance
Change
Oct. 7
§12,953+
$ 46,758
109,072
12,146+
4,175,
0
7,429+
47,621 .
7,543+
26*304
7,557+
24,770
85,292
17,174+
7,709+
24,301
17,803
4 ,995+i
9,639+.
28,098
5,359+
17,034
48,473
11,336+
62,370
11,091-
$541,771
$92,749+
BILLS DISCOUNTED
Net
Ba lance
Oct. 7
Change
#
620$ 11,761
123,433
69,912+'
23,217+
71,940
61,064
15,228+
1,394+
28*592
858+
30,750
10,431+
28,446
13,693
7153,899
96+
2,160+
15,925
3,302+
16*076
57,814
10,205+
$463*393
^135,468+
COMMENT ON CHANGES WEEK ENDED OCTOBER 7, 1951
Total earning assets of the System showed an increase of $243*247,000
for the current statement week. The changes by classification consisted of de
creases of $110,000 in outright purchases of government securities and $3,890,000
in government securities held under sales contracts* and increases of $92,749,000
in outright purchases of bankers acceptances, $20,080,000 in bankers acceptances
hold under sales contract^, and'$135,468,000 in bills discounted.
' ■■■"■ ----- ‘ ---■ ........IJ- J
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
2
Money
Market
A loss of gold to this country’
s stock was again the most im
portant single factor in the New York money market. Daring the past
week, the United States monetary gold was reduced b3^ $97,000,000, as a
result chiefly of a net increase of $28,000,000 in the amount of gold
held earmarked for foreign account and of exports of $69,000,000 to
Prance and $7,500,000 to Holland, making a total decline of $373,000,000
since the peak of $5,015*000,000 was reached on September 16. The re
ported figure of $4,642,000,000 for October 7 was only $49,000*000
higher than the level prevailing at the end of December 1930, and on
October 8 an additional $46,000,000 of gold was lost through earmarkings
and exports.
In addition to the loss of funds to the Hew York money market
arising from the gold operations of the past reporting week, a large vol
ume of funds was lost through an outflow to other districts, a substan
tial rise in foreign balances maintained at the Reserve Bank, and a
further increase in the amount of coin and currency outstanding in this
district. These losses of funds were partly offset by sales of a large
volume of bills to the Reserve Bank for System account and by a net in
crease of $60,000,000 in borrowings of Hew York City banks, but the
actual reserve balances of the City banks nevertheless showed a net de
cline of $93,000,000 for the week. At the same time the reserve require
ments of these banks were reduced $38,000,000 from the high level pre
vailing at the turn of the month. As a result, the surplus of reserves
held by the Hew York City banks declined from $85,000,000 on September
30 to $30,000,000 on October 7.
The Stock Exchange call money rate remained at 1 1/2 per cent
throughout the past week, although toward the end of the period offerings
of funds tended to be smaller. Outside market money was also largely
1 1/2 per cent. Nominal quotations for time funds moved higher and by
the end of the week, 60 day loans were 2 l/4 per cent bid, 2 1/2 per
cent asked; 90 day money was 2 1/2 per cent flat; and 4 to 6 months
money was 2 1/2 per cent bid, 3 per cent asked. Offerings of funds were
very scant, and the few loans arranged were at 2 1/2 per cent for 90
days* (The federal funds quotation advanced from 1/8 - 1/4 per cent to
1 - 1 1/4 per cent, reflecting the bank reserve position and the in
creased borrowings of Hew York institutions. Demand for federal funds
toward the end of the period was reported in substantial volume while
the supply was short* In the commercial paper market, the firming ten
dency reported in the previous week developed to the extent that the rate
for prime names of 4 - 6 months maturity became settled at the higher
prevailing level of 2 l/4 per cent* Both investment demand and new cre
ations of paper continued in light volume. Open market bill rates wore
unchanged*
Government
The market for United States Government securities continued
Security , active during the current statement week. Y/hile there were periods of
Market
weakness during the week, the market as a whole had a slightly better
tone* The short-tern issues continued in good demand throughout the
week and a good proportion of the funds received from the liquidation of
bonds at the end of last month were apparently reinvested after the turn
of the month. At the close of the current reporting period the average
yield' on the short-tern issues, at dealers* offering prices, was about
0.875 per cent as compared with 1 1/8 per cent at the close of last wook,
and the average selling price for the Liberty Loan and Treasury bonds
was 101*75 as compared with the previous week’
s average closing price of
101,64.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« V ffiS fr
Dealers' Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net
Approx,
Yield
Issue
Price
Change
-1/32
7/8# Cert, of Ind. due Dec, 15, 1931 100 6/32
0.1
0.91#
+2/32
#
"
"
”
" Mar. 15, 1932 100 15/32
»"f t"t »"t
t"f Sept. 15, 1932
+5/32
1.15#
1 1/8#
99 31/32
3 1/2# Treasury Notes called for payment
0.42#
Dec. 15, 1931 100 18/32
Treasury Bills - all maturities 1 1/4# discount bid, 5/8 to 1#
asked,(nominal)
Closing Prices on the Nov/ York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Price
Issue
Issue
Price
Change
1st 3 1/2s 101 5/32 -6/32 Treas,, 4 1/4s 1947-52 108 20/32
tt
1st 4 l/4s 102
4s
1944-54 104 22/32
+4/32
tf
4th 4 l/4s 102 8/32 -1/32
3 3/4s 1946-56 102 16/32
ff
3 3/8s 1943-47 100 16/32
tf
3 5/8s 1940-43 100 12/32
tf
3 3/8s 1941-43 100 16/32
tf
99 6/32
3 l/8s 1946-49
tt
97 14/32
3s
1951-55
Bankers
Net
Change
-10/32
+ 4/32
-20/32
+16/32
+10/32
+28/32
+15/32
- 2/32
Dealers’offerings of unendorsed bankers acceptance s contir
for 30s, 60s and 90s* 1 3 / 8 per ccnt for 120s and 1 7/8 per cent for
180 day bills.
Reports
T /Q C k
ending
Oct. 7
Boston reported that with one exception more bills were offer
ed dealers in its district during the past period than for any other
period during the current year* While there was some increase in the
supply of new bills, most of the bills offered to dealers came from
banks which designed to reduce their acceptance holdings. The local
demand* while fair, was insufficient to absorb the supply which re
sulted in dealers forwarding their surplus bills to their offices in
other cities. Dealers* portfoliost while not large, were the highest
since June last. Offerings to the Reserve bank were moderate but less
than the previous week* In New York the bill market was slightly more
active this week. Dealers* sales consisted principally of bills matur
ing within 70 days which they sold to local banks
who evidently en
dorsed and sold them to the reserve bank for System Account, Dealers’
purchases exceeded their sales considerably and aggregate portfolios
increased by about $25,000,000 to $89,000,000*- The reserve bank’
s pur
chases for System Account continued heavy during the week, the greater
proportion being purchased from banks. Rates unchanged. Philadelphia
reported that its acceptance market showed little change from the pre
vious week. There was some increase in the amount of offerings with
the demand light. Chicago reported that there was very little demand
for bills in its district with the supply small, Dallas reported that
the demand for bills in its district was small and offerings to the
Reserve bank were negligible.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ . 0 , m s ?
OPERATION'S POR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week consisted of
Purchases of $1,300,000 aggregate par amount 3# Treasury Bonds
of 1951-55 account Postal Savings System
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week the following exchanges were advanta
geously effected in the market:
$2,700,000 ~ 1 7/8% certificates due Dec. 15, 1931
5.000.000 - 2
f0
"
*» Mar. 15, 1932
2.000.000 - 4 1/4% 4th Liberty Loan bonds
a total of
$9,700,000 - exchanged for
$
80,000 - Treasury Bills due Oct^
4.920.000 "
"
" Nov.
4.700.000 ~
™
«
w Dec.
15, 1931
3, 1931
30, 1931
$9,700,000
In addition to the above, a block of $24,614,000 Fourth 4 l/4s, which were being
liquidated by the Federal Reserve Bank of Philadelphia for account of a member
bank, were taken over into the System Account .due to the weakness in the market
for government bonds and offsetting sales made in the market from the holdings of
the System Account as follows?
2, 1931
$5,000,000 - Treasury Bills due Nov.
4,614*000 ~
"
”
Nov. 16, 1931
5.000.000
H
”
w
30, 1931
5.000.000 - 1 7/8% certificates due Dec* 15, 1931
.Mar. 15, 1932
5.000.000 ~ 2
%
§24,614,000
These transactions did not affect the amount of total holdings in the
System Account, which remained at §524,468,000.
The participations by Federal
reserve banks and the classification of issues held, in the Account at the close
of business Wednesday, October 7, 1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
RECAPITULATION OF HOLDINGS BY MATURITIES
§ 54,122,500
Oct.
Boston
15, 1931 - Treas.Bills, $ 3,780,000
tt
tt
tt
4,950,000
26, 1931 New York
99,365,500
tr
it
14,670,000
Philadelphia
Nov...
46,339,000
2, 1931 tt
tt
tl
7*225,000
Cleveland
62*085,000
9, 1931 tt
«
**
8,111,000
16, 1931
Richmond
30,405,500
tt
ft
19,207,000
23, 1931
Atlanta
19,773,500
tt
ft
tt
15*425,000 i
30, 1931 Ghicago
76,857,500
~1t
tt
5,700,000 x
30, 1931
Dec.
St, Louis
27,210,500
tt
20,273,000
15, 1931 - 1 7/8% 0/1
70,576,50
Minneapolis
tt
115,481,500,
15, 1932 - 2
Kansas City
Mar.
29,030,500
*
48,500,000
Sept. 15, 1932 - 1 1/8% ft
Dallas
15,132,000
27,250
Dec.
43,895,500
San Francisco
15, 1931 - 3 1/2% T/N
June
15, 1947 - 3 1/2% 1st L/L 80,025,000
V
15, 1947 - 4 1/4% 1st ■" 15*750,000
Oct.
4 1/4% 4th " 115,039?7 50
15, 1938
Totals
$524,468,000
$524*468,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
____________________ FROM OCTOBER I TO OCTOBER 7, 1951, INCLUSIVE_________ __
GOVERNMENT SECURITIES - SYSTEM BTVESTONT ACCOUNT
Boston
Now York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Purchases
| 3,541,000
6,501,000
3,032., 000
4,062,000
1,989,500
1,293,500
5,027,000
1,780,000
1,326-, 500
1,899,500
990,, 000
2,872:, 000
Sales
$ 3,541,000
6,501,000
3,032,000
4,062,000
1,989,500
1,293,500
5,027,000
1,780,000
1,326,500
1,899,500
990,000
2,872,000
#34,314,000
$34,514,000
01H5R TRANSACTIONS IN GOVERNMENT SECURITIES ( .EXCLUDING SALSS CONTRACTS)
Atlanta
Minneapolis
Dallas
Totals
Boston
Nev»r York
Hold
ings
Sept. 30
$ 33,805
96,926
Purchases
$ 580,450
1,074,250
145„OOP
$1,799,700
Issue
Misc. Gov't Sec.
"
*
"
”
M
"
$
Sales
Issue
588,000 Misc. Gov’
t Sec,
1,241,300
””
’
»
80,000 Treas.Bds,1951-55
$1,909,300
BANKERS ACCEPTANCES
(000 Omitted)
Maturities
and Sales
Hold
Held
Pur
Held
By Allot
ment from
chased
Else
ings
in
where
Own Mkt,» New York
Oct. 7
N. Y*
$ 1,573 R $ 12,440 $ o
$ 1:,060 $ 46,758
rU.
43,190 w*
0
31,044
109,072
101,574 A
0
0
0
0
4,175
43 R
8 >Sol
0
1,275
47,621
0
1,512
0
26,304
9,055
567
540
24,770
7,541
11
750
0
21,644
5 , 2 2 0 * :* 8 5 , 2 9 2
Other Holdings
Close Oct.7/51
Sales
Other
Con
Bills
tracts
y 3,342 $ 3,759
32,529 16,654
0
Phila.
4,962
4,175
Cleve.
0
5,051:
40,192
Richmond
1,301
0
18,761
0
Atlanta
17,213
1,931
Chicago
68,118
0
6,75:
St.Louis
0
567
0
16,592
0
3,276
24,301
i,ic:
Minn,
0
12,508
0
5,974
979
0
17,503
72'"
Kan.City
1,446
18,459
0
28,098
9,725
66
0
20
Dallas
1,467
11,675
5,791
125 tt
532
25SdLd 17,034
2,751
San Fran.
3 , 329
12,467
37,137
0
2,349 T*
3,480
48,473
963
Totals $375,561 $150,171
$101 , 574 $35,240 $11,091 $479,401 $39,585 $49,02C
Bills held over night by New York for distribution to other Fed. Res* Banks 9,889
"
”
”
"
”
" in foreign suspense account - - - - - - - 3,455
T o t a l --------------- -- - $62,370
^Includes $6,385 purchased from foreign correspondent with maturities too short to
allot and
219 purchased in Cleveland,
**Includes
100 sold.
NOTE:
R. indicates Retained and A. indicates Allotted in the above statement*
0
4
.i v, w
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ » 0 «
6
MATURITIES AND RATES ON BILLS PURCHASED WEEK 3NLE7, OCTOBER 7, 1931
(000 Omitted)
1-30 days
1 1/4#
Boston
New York
Cleveland
Atlanta
Chicago
Dallas
San Francisco
31-60 days
1 1/4#
0
54,803
43
41
0
0
509
Totals
Over 90-days
1 3/8#
42
38*607
0
83
0
0
718
$ 1,531*
49,757
0
443
750
125
1,102
0
1,597
0
0
0
0
20
§39,450
^53,708
$1,617
$
$55*396
61-90 days
1 1/4#
Total
$
1,573
144|764
43
567
750
125
2,349
$150,171
*Purchased at 1 1/4 to 1 1/2#.
RECAPITULATION OF PURCHASES AND SkLES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING OCTOBER 7, 1931
(000 Omitted)
(Excluding Sales Contract#)
Government
Securities
Purchased
Sold
Matured.
Totals
$36,113
36,223
0
§
110-
Bankers
Acceptances
Total
$150 *171
125
46,206
$103,840+
11,091- (Net Change
'
1-day holdover
and other hills)
$ 92,749+
$186,284
36,348
46,206
$103,730+
11*091- (Net Change
1-day holdover
and other bills
$ 92,639+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES OCTOBER 7, 1931
(Including Sales Contracts)
Within
I5-days
Gov’
t Securities
Bills purchased
Totals
$
16-30
days
31-60
da ys
61-90
days
91 days**
6 months
Over 6
months
Total
5,030 $ 20,620 $ 88,541 *114,900
134,714
79»619 148,372 213,489
^121,044 0388*210 $ 738,345
5*162
0_______ 581,356
$139,744 #100,239 $236,913 $328,389
§126,206 $388,210 $1,319,701
Reproduced from the Unclassified / Declassified Holdings o f the National Archives
DECLASSIFIED
Authority £»Q»
October 3, 2931*
Daar Mr* Mattasont
I acknowledge xaoalpt of and shall bring to
the attention of tbs asnbors of tha Board your letter
of October 2nd, addreased to Governor Mayor, enolosing
report of transaction* In Ooformssnt soouritios and
bankers* aooaptaaoaa as reported to your oowalttee for
tha pariod fron Septamber 84th to Septeaber 30, 1931,
inclusive*
Vary truly yours,
E* II. McClelland,
Assistant Secretary*
Hr* 1* B. Matteson,
Aasistant Deputy Governor,
federal Baaarte Bank,
Hew York, H* Y*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q»
FOR SPECIAL CIRCULATION
EASE READ P R 0*4 xLY, INITIAL AND RETURN TO ^
v Governor Meyer
Mr. Hamlin 1//"" Mr. Ja&es
Mr. Miller /
Mr. Magee
ARY'S OFFICE
Mr. Pol
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
October 2, 1931.
CONFIDENTIAL
Dear Governor Meyers
Enclosed is a report of open market operations
for the period from Septem b er 24, 1931 to September 30,
1931 inclusive, together with data received from Federal
reserve banks*
truly yours,
W. B. Matteson
Assistant Deputy Governor
Honorable Eugene Mayer,
Governor, Federal Reserve Board,
Washington, D. C.
E n c l.
cci r
QTj'prr--
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« \2BSy
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS SDR WEEK ENDED SEPTEMBER 30, 1951
Holdings of Earning Assets of Federal Reserve Banks from October l t 1930 to pate
(000 Omitted)
-1930Oct*
1
W
29
Nov* 26
Dec. 31
-1931Jan, 28
Feb, 25
Mar, 25
Apr, 29
May
27
June 24
July 29
Aug* 26
Sept. 23
30
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
|
840
$600,337
601,438
0
595,634
0
686,064
43,403
TOTAL
EARNING
ASSETS
$ 986,973
975,021
1,011,940
1,351,853
609,877
599,442
598*459
598,306
598,368
618,503
677,977
727 ,998
737,985
738,455
945,405
895,606
847,256
923,572
876,489
947,334
934,795
1*156,636
1,305,806
1,557,970
0
0
100
0
0
0
0
0
0
3*890
BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
$12,278
$180,830
3,752
161,906
6,176
169,930
324,746
39,098
118,453
105,431
83,272
133,949
121,210
103,164
62,909
179,476
233,546
449,022
1,788
886
0
35,8l6
3,291
3,226
3,627
1,042
9,643
19,505
BILLS
DISCOUNTED
$185,916
201,603
233,852
251,398
215,137
189,847
165,425
155,151
152,852
197,678
183,036
241,718
309,827
327,925
CHANGES IN EARNING- ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
________________ DURING WEEK ENDED SEPTEMBER 30, 1931____________
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
Sept,30
Ghange
$ 54,827
# o
10,000225,705
56,344
12+
72,085
0
31,558
0
22,347
26298,436
0
31*211
0
640+
28,098
0
29,115
80+
25,210
63,519
10,000+
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
$738,455
4
470+
BANKERS ACCEPTANCES
Net
Balance
Change
Sept,30
$ 21,592+
$ 33,805
61,574+
96,926
4,175
20+
40,192
27,554+
18,761
14,127+
12,469+
17,213
68,118
19,722+
11,826+
16,592
9,016+
12,508
18,459
13,482+
8,770+
11,675
23,585+
37,137
73,461
8,161-
$449,022
$215,476+
BILLS DISCOUNTED
Uet
Balance
Sept, 30
Ghange
$ 4,472+
4 12,381
53,521
3203,514+
48,723
521+
45,836
542+
27,198
29,892
3,702+
14,67018,015
1,894+
14,406
2763,803
1,56613,765
30912,774
20,594+
47,609
$327,925
$18,098+
COMMENT ON CHANGES WEEK ENDED SEPTEMBER 30, 1931
Total earning assets of the System showed an increase of $252^164,000
for the current statement week. The changes by classification consisted of in
creases of $470*000 in outright purchases of government securities, $215,476,000
in outright purchases of bankers acceptances, $18,098,000 in bills discounted, and
$13,752,000 in investments held under sales contracts. The latter increase con
sisted of §3'f890^000 in government securities and $9,862,000 in bankers acceptanccs#
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
2
ipney
Market
The loss of $158,000,000 of gold to the United States mone*tary stock during the week ended September 30, following a reduction
of $118,000,000 in the preceding week, was the principal development in
the New York money market. This loss during the past week reflected
primarily further net earmarkings of $154,000,000 of gold for foreign
central bank account, but also included exports of $23,000,000 to France
and small amounts to a number of other European countries, which, how
ever, were largely offset by Argentine and Canadian imports. The largo
earmarkings of the period, however, did not take an equivalent amount of
funds out of the New York money market, since approximately one-third of
the gold was purchased with the proceeds of bills previously held by
foreign correspondents and sold to the Reserve Banks and another onethird was purchased by charges to foreign balances which had been accu
mulated at the Reserve Banks.
In addition to the net loss of funds to the New York market
arising from gold transactions, there was a moderately large loss which
resulted from a further increase in the amount of currency and coin out
standing in domestic use. These losses of funds for the reporting week
were more than offset by sales of bills to the New York Reserve Bank by
New York banks and discount houses, including the $124,000,000 mentioned
in last week*s report as having been purchased on September 24. As a
result, the reserve balances of the New York banks at the close of busi
ness Wednesday, September 30, were $85,000,000 in excess of requirements,
as compared with a surplus of $16,000,000 on the previous Wednesday.
This increase in the surplus reserves reflected a net rise of $100,000,000
in reserve balances maintained at the Reserve Bank which exceeded an in
crease of $31,000,000 in the reserve requirement figures of these banks.
Throughout the past week the New York City banks have been in the posses
sion of an average excess of reserves amounting to $87,000,000*.
During the week the Stock Exchange call money rate was steady
at 1 1/2 per cent, with substantial amounts of funds on offer; in the
outside market the general offering rate was also 1 1/2 per cent though
a little money was available at 1 1/4 per cent from private banking
sources. The rate for Federal funds showed little fluctuation, being
quoted at 1/8 or 1/8-1/4 per cent throughout the week; very few transac
tions were arranged in view of the fact that the New York banks showed
a continuous substantial overage of reserves.
The time money market generally continued at the higher nominal
quotations for all maturities of 2 per cent bid, established on
September 24. There was practically no money offered, and on the few
occasions that actual loans were reported, they were arranged at 2 1/2
per cent, the level at which a small amount of 90 day money became avail
able. Rates for 5 and 6 months bankers bills Y/ere raised 1/4 per cent
further on September 28, while the shorter maturities were unchanged
at the levels established September 24, While the principal selling
rate for prime commercial paper continued at 3 per cent, there were
indications of a slightly firmer tendency in this market* Both the
supply of and investment demand for paper remained light*
government
Security
Market
The United States G-overnment security market, which has shown
considerable weakness during the past few weeks, not only continued
downward trend but became somewhat demoralized*
The liquidation was
quite heavy and applied to all issues. It appeared to come primarily
from banks in many parts of the country*
This pressure brought about
a sharp decline in prices both in the long-term and the short-term
issues, though most marked in the long-term. In the past two days the
market has strengthened as the New York banks have made substantial pur**
chases.
At the close of the current reporting period the average yield
on the short-term issues, at dealers1 offering prices, was about 1 1 / 8
per cent as compared with 0 f35 per cent at the close of the previous
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0« \3RSy
week, and the average selling price for the Liberty Loan and Treasury
bonds was 101.64 as compared with the previous week*s average closing
price of 103.29. This week’
s average closing price of 101.64 is only
about 1/2 of a point above the 1950 low.
1
2
1
3
Dealers1 Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net
Approx,
Change
Issue
Price
Yield
7/8% Cert. of Ind. due Dec. 15, 1951 100 7/52
- 5/32
0.78%
tt
1!
%
"
1.09%
-14/32
f* Mar. 15, 1952 100 15/52
tr
1.32%
1/8%
” tt
99 26/52
-19/32
M Sept . 15, 1952
1/2% Treasury Notes called for payment
0.70%
- 6/32
Dec. 15, 1931 100 18/32
Treasury Bills - all maturities 1.37% discount bid, 1*25% asked
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
______ Close of the Previous Statement Week_________________
Net
Net
Issue
Price
Change
Issue
Price
Change
1st 3 i/as 101 11/32 - 25/32 Treas. 4 l/4s 1947-52 108 30/32 -1.22/32
1st 4 1/4 s 101 28/32 - 28/52
"
4s
1944-54 104 18/32 -1.27/32
4th 4 l/4s 102 9/32 -2.17/32
"
5 3/4s 1946-56 105 4/52 -1.14/52
H
3 5/8s 1945-47 100
-1.30/32
3 3/8s 1940-45 100 2/32 -1.20/32
5 5/8s 1941-45
99 20/32 -2. 2/52
"
5 l/8s 1946-49
98 23/52 -1.25/52
*»
5s
1951-55
97 16/52 -1.51/52
Bankers
Acceptances
Reports
week
ending
Sept. 50
Dealers* offerings of unendorsed bankers acceptances were at
the following rates at the close of the current statement week: 1 1 / 4
per cent for 30s, 60s and 90s, 1 5/8 per cent for 120s and 1 7/8 per
cent for 180-day bills* This represents an increase of 1/4 per cent
over the previous week's rates for 180-day bills.
Boston reported that bill dealers in its district having estab
lished a practice of forwarding most of their surplus bills to New York
and other city offices, found themselves with comparatively small port
folios, with rates advanced sharply at the beginning of the past period.
Although more bills were offered to the reserve bank than have been any
time since April 1951, the volume was comparatively small. With dealers
now bidding 1 5/8 for 90-day bills and offering at 1 1/4 per cent, the
demand from member banks in this district increased somewhat and dealers
found it necessary to import bills to complete these orders. In New
York the bill market was slightly more active this week. Dealers’sales
to local banks increased considerably. Their purchases, however, ex
ceeded sales and aggregate portfolios increased by about $15,000,000 to
§63,000,000. Following the rate changes made last Thursday, dealers on
the 26th of the month made a further increase of 1/4 per cent on 5 and 6
months* bills, to 2 per cent bid, 1 7/8 per cent asked, but made no
further change on other maturities* The reserve bank's purchases during
the week were extremely heavy, the greater proportion having been pur
chased from local banks and foreign correspondents. Philadelphia re
ported that its acceptance market was very quiet. There were Very few
new bills during the week, principally because of the change in rates*
The demand was fair but not strong* Chicago reported that there was
practically no demand for bills in its district and dealers were un
willing to take any large position* Dallas reported that there was no
demand for bills in its district and no offerings were made to the
reserve bank.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Purchases of $
900,000 -* % Treasury bonds
German Special
5,550,000 - % Treasury bonds
Postal Savings
of 1951-55, account
Deposit Account
of 1951-55, account
System
,450,000 - Total Purchases
SYSTBM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week the following listed transactions were
effected in the System Account:
Redemption on September 30 of $2,000,000 maturing Treasury bills, which
were replaced by purchases in the market of
$2,000*000 Treasury bills due Dec. 30, 1931
a total of
$3
,000
6 ,000 ,000
7 ,000 ,000
5 ,000 ,000
24 ,000 ,000
$45 ,000 ,000
O
o
Exchange in the
market of
4 x ,500 ,000
4 ,000 ,000
19 ,000 ,000
16.,000 ,000
1 ,000 ,000
3 ,500 ,000
$45 ,000 ,000
”
»»
*
"
»»
w
«
Oct.
m Nov.
" Nov,
30i
15,
2,
16,
1931
1931
1931
1931
Dec.
ry Bills
certificates w Mar,
First Liberty Lof
«
tt
tt
UVMif*+:Vi
tt
tl
15, 1931
30, 1931
15, 1932
00
The amount of total holdings in the Account remain unchanged at
^524,468*000. The participations by Federal reserve banks and the classification
of issues held in the Account at the close of business Wednesday, September 30,
1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
RECAPITULATION OF HOLDINGS BY MATURITIES
Boston
$ 3,700,000
Oc t • 15, 1931 - Treas.Bills
§ 54,122,500
tt
tt
4,950,000
New York
Oct. 26, 1931 99,365,500
tt
tt
14,750,000
46,339,000
Philadelphia
Nov*
2, 1931 «
tr
tt
7,225,000
Nov. 9 . 1931 Cleveland
62,085,000
tt
tr
12,725,000
Nov. 16, 1931 R ichmond
30,405,500
tt
tt
19,207,000
Atlanta
19,773,500
Nov. 23, 1931 tt
tt
15,425,000
Chicago
Nov. 30, 1931 76,837,500
»t
tt
6,000,000
St. Louis
Dec. 30, 1931
27*210,500
tt
78,276,500
C/I
15, 1931
1
Minneapolis
20,273,000
tt
125,481,500
2
Kansas City
29,030 ,500
Mar. 15, 1932
48,500,000
Dallas
Sept. 15, 1932 - 1 1/8 % »t
15*132,000
27,250
San Francisco
Dec. 15, 1931 - 3 1/2% T/N
43,893,500
June 15, 1947 - 3 1/2% 1st L/L 80,025,000
15,750,000
June 15, 1947 <** 4 1/ 4:% 1st "
Oct. 15, 1938 - 4 1/4$ 4th L/L 92,425,750
Totals
$524*468,000
$524,468,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0* VffiSfr
5
*fEMIZED STATEMENT OF TT 3 ACTIONS IN GOVERNMENT SECURIT'
AND BANKERS ACCEPTANCE
AFFECTING THE iNVESITOTT ACCOUNT OF ALL FEDERAL RESERVE BANKS
FROM SEPTEMBER 24 TO SEPTEMBER 30, 1931, INCLUSIVE
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Sales
Purchases
$ 4,850,000
$ 4,850,000
Boston
New York
8,904,500
8,904,500
4,152,000
4,152,000
Philadelphia
5,564,500
Cleveland
5,564,500
2,725,000
2,725,000
Richmond
1,772,000
1,772,000
Atlanta
Chicago
6,885,500
6,885,500
St. Louis
2,439,000
2,439,000
1,817,000
1,817,000
Minneapolis
2,601,000
2,601,000
Kansas City
1,356,000
1,556,000
Dallas
3,953,500
San Francisco
3,933,500
Totals
#47,000,000
|47,000,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING
Redemption
Issue
and Sales
Purchases
New York
$ 6,000,000 Misc. Gov*t Seer
$ 4,000,000
2,000,000
10,000,000*
ft
n
ft
0
Philadelphia
12,000
I
t
tt
tt
545,650
Atlanta
285,750
m
tt
n
12,286,400
Minneapolis
2,926,550
0
Dallas
80,000 3% Treas.Bds.1951-55
0
San Francisco
10,000^000* Treas. Bonds
Totals
$19,502,100
SALES CONTRACTS)
Issue
First l/l 5 1/2% Bds
Treas. Bills 9/50/51
Treas. Bonds
Misc, Gov*t Sec.
"
*
"
*+■
$18,852,050
^Represents resale to F. R. B. San Francisco of Treasury Bonds taken over temporarily
for one day, as shown in last week’
s report.
BANKERS ACCEPTANCES
(000 Omitted)
Other Holdings
Maturities
Close 9/50/51
and Sales
Hold
By AllotHold
Held
Sales
Other
ings
ings
Con
Held in Else
Purchased
Bills
Sept. 25 Own Mkt.
Sept. 30 tracts
New York
N. Y.
where
Boston
$ 12,215 | 3,670 R $ 19,442 $ 0
$1,520 $ 55,805 $' 255 $ 3,759
17,588 15,649
Few York
96,926
77,007*’
*
0
0
35.552
15,453
155,955 A
0
0
4,175
4,155
0
4,962
20 R
Phila.
0
5,055
Cl eve .■
0
12,638
0
1,845 "
26,198
487
40,192
1,801
0
Richmond
4,634
0
0
18,761
14,470
343
2,018
0
1* 419 "
4,744
1,060
18
17,215
Atlanta
12,128
6,766
Chicago
9,660 "
48,496
500
12,896
0
2,934**! 68,118
St. Louis
0
4,766
1,103
0
1,459
0
16,592
13,285
Minn.
723
0
0
9,278
12,508
0
262
3,492
0
1,446
Kan. City
4,977
0
18,459
0
1,930
15,412
1,467
Dallas
470
0
. 0
2,905
0
11,675
9,240
3,529
San Fran.
2,907 R
57,137
13.552
21*584
0
906
1,582
Totals
$155,955 $20,957 $5,865 $575,561 #19,505 $49,058
$151,924 $250,459
Bills held over night by New York for distribution to other F. R. Banks ----- 21,125
n
it
»
m
In foreign suspense account - - - - - - - - - .........
5,278
T o t a l ----------- $73,461
*Includes $35,580 purchased from foreign correspondent with maturities too sho?
allot.
**Includes
? sold.
Digitized forN0T3$;
FRASER R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
"
■-
DECLASSIFIED
Authority £»0«
6
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDEr SEPTEMBER 30, 1931
(000 Omitted)
1-30 days
1 - 1 1/4#
$
Boston
New York
Philadelphia
Cleveland
Atlanta
Chicago
San Francisco
Totals
84
77,650
19*
443
89
4,150
158
$82,593
31-60 days
1 - 1 1/455
$
816
66,774
1*
347
63
1,022
388
$69,411
61-90 days
1 - 1 1/4#
Over 90-days
1 - 1 1/2#
Total
$ 2 *657
85,678
0
1,053
1,165
4,488
873**
$
113
838
0
0
102
0
1,488
$ 3,670
230,940
20
1,843
1,419
9,660
2,907
$95,914
$2,541
$250,459
♦purchased at 3$, ♦Purchased at 1 1/8 to 1 3/8<j>.
RECAPITULATION O F PURCHASES AND SALES O F GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING- WEEK ENDING SEPTEMBER 30, 1931
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
$66,302
63,832
2,000
Purchased
Sold
Matured
Totals
HOLDINGS
$
OF
470+
Bankers
Acceptances
Total
$250,459
7
86,815
$225,637+
8,161- (Net Change
1-day holdover
and other hills)
$215,476+
#316,761
63,859
28,815
$224,107+
8,161- (Net Ghange
1-day holdover
and other bills)
$215,946+
GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES SEPTEMBER 30, 1931
(000 Omitted)
(Including Sales Contracts)
Within
15 days
Gov't Securities
Bills Purchased
Totals
16-30
days
31-60
days
61-90
days
91 days6 months
Over 6
months
Total
8,840
119,241
| 5,950 | 76,480 §146,210
60,115 116 f765 167,987
$139,055
4,425
$365,810
0
742>345
468j527
$128,081
$66,063 $193*243 $314,197
$143,478
$565*810
01*210,872
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £>«0»
Seteraber 26, 19$X
Banr Mr* Matteeon*
t acknowledge reoelpt of and ehall bring to
the attention of the aeatber# of the Federal B&aenre
Board your letter of September 25th, addreaeed to
Governor ,?% y e r # aaolwlng report of op«n apricot op**
•rations for the period fro* September 17* 1931 to
September 23, 1931 Inclusive*
Very tru y youre,
^ 0+
J • C* Hoel1,
Aa*i»tant Seoretaiy
Mr* W* B* Matteaon*
Aaaietant Deputy Governor,
Federal Beeerre Bank,
lew Yoifc, tar loifc*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ « 0 «
FOR SPECIAX. CIRCULATION
F E O f'P T L Y , ISITIAI, AHD R E T U E ‘ ! TO
Gov
•Sii .
L. t e r
',t a r v ’
c;
J
Mr.* Magee
Fe d e r a l R e s e :r v e B a n k
of
Ne w Yo r k
CONFIDENTIAL
September 25, 1931
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from September 17, 1931 to September 23, 1951 in
clusive, 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 . \ 3 R S y
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED SEPTEMBER 23, 1931
Holdings of Earning Assets of Federal Reserve Banks from September 24, 195Q to Date
,
(000 Omitted)
-1930Sept* 24
Oct, 29
Nov, 26
Dec, 31
-1931-Jan. 28
Feb* 25
Mar, 25
Apr, 29
May
27
June 24
July 29
Am?. 26
Sept* 16
tt
23
*Includes
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
$601,656
$
150
601,438
0
595,654
0
686,064
43,403
TOTAL
EARNING
ASSETS
$ 973,483
975,021
1,011,940
1,351,853
BANKERS ACCEPTANCES
BILLS
Outright
Sales
Contracts DISCOUNTED
Purchases
$ 5,582
$167,162
4192,161
5,752
201,605
161,906
255,852
6,176
169,930
251,598
39,098
324,746
215,157
1,788
118,453
945,405
609,877
0
189,847
105,451
886
895,606
599,442
0
165,425
0
85,272
598,459
100
847,256
155,151
155,949
35,816
598,306
0
"923,572
152,852
3,291
121,210
876,489
598,368
0
197,678
3,226
105,164
618,503
0
947,334
183,056
62,909
. 5,627
0
677,977
934,795
241,718
179,476
1,044
1,156,656
0
727 *998
262,994
22,890
194,880
1,238,564*
742,458*
0
9,643
509,827
255,546
1,305,806
737,985
0
$14*000,000 special one-day Treasury certificate of indebtedness
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
___________
DURING WEEK ENDED SEPTEMBER 25, 1931___________
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
Sept,25
Change
Boston
$ 54,827
New York
255,705
Philadelphia
56,532
Cleveland
.72,085
Richmond
51,558
Atlanta
22,609
Chicago
98,436
51,211
St. Louis
Minneapolis
27,458
Kansas City
29*115
Dallas
25,150
San Francisco
55,519
N, Y. holdovers
and other bills
Totals
$757,985
$1,127+
157+
1,251+
0
0
257+.
2,098+
503+
71910 ,0000
873+
$4-,473-
BANKERS ACCEPTANCES
Net
Balance
Sept.23
Change
$ 12,213
35,552
4,155
12*638
4,654
4,744
48,496
4,766
5,492
4,977
2,905
15,552
$11,195+
24,049+
4,155+
7,757+
3,929+
3,730+
45,640+
3,788+
2,192+
4,194+
2,462+
9,536+
81,622
85,939-
$255,546
$38,666+
BILLS DISCOUNTED
Net
,Balance
Sept,23
Change
$
7|909
53,841
45,209
45,315
26,656
26,190
52*685
12,514
4*079
15,351
13,083
27,015
£309,827
$
657+
7,165+
12,910+
13,425+
4,442+
266+
7,103+
86290+
3,299+
4691,173-
$46,833+
COMMENT ON CHANGES V/EEK ENDED SEPTEMBER 25, 1951
Exclusive of the $59,000,000 special one-day Treasury certificate of in
debtedness issued to cover the overdraft on September 16* of which amount participa
tions amounting to $45,000,000 were sold to New York City banks, the total earning
assets of the System showed an increase of $81,242,000 for the current statement
week. The changes by classification consisted of increases of $9,527,000 in out
right purchases of government securities, $38j|666,000 in outright purchases.of
bankers acceptances and $46,633,000 in bills discounted, and a decrease of
$13,247,000 in bankers acceptances held under sales contracts.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
2
Money
Marke t
/
The New York City banks began the reporting week ended
September 23 with their reserve balances surplus to the extent of
$124,000,000i as a result of the funds which had been placed in this
market through an excess of Treasury disbursements over receipts during
the quarterly financing period. Reflecting* however, transactions in
the past week, chiefly beginning on September 21, the excess of bank
reserves was rcduced to $16,000,000 on uhe 23rd*
Events abroad following the suspension of the Gold Standard
Act by Great Britain had certain repercussions in this market which re
sulted in a decrease in the reserve balances of the New York City banks.
Chief aipong the developments in this market during the week ended
September 23 wts the earmarking of $122,000,000 of gold for foreign
central bank account, which was followed by additional earmarkings of
$64,000,000 of gold by foreign banks on September 24, Funds were with
drawn from the market for part of those earmarkings, while the funds for
the balance were realized from the sale of bills by these foreign cor-*
respondents to the Reserve Banks and by the drawing down of foreign bank
deposit balances in the Rcserye Banks. There was also a large loss of
funds to this market arising from payments to the Reserve Bank, which
for a time increased foreign bank deposits but were subsequently used
in the repayment of $110,400,000 of the System*s investments in foreign
currency bills. Currency and coin withdrawals from the Reserve Bank
absorbed an additional amount of New York member bank reserves, since
the amount of money outstanding in this district showed a furthei* sub
stantial rise* As a result of the aggregate large loss of funds to the
market through the aforementioned transactions, the New York Gity banks
sold several large blocks of dollar acceptances to the New York Reserve
Bank for System account. In addition, on Thursday, the 24th, New York
City banks sold the New York Reserve Bank for System account $124,000,000
of bills, thereby again creating a large surplus of reserve balances.
This bank selling of bills on Thursday was partly induced by the increase
in open market bill rates of 1/8 per cent on September 22 and of a further
1/4 per cent on September 24, and partly by apprehension concerning a
possible increase in the New York Reserve Bank’
s discount rate at the
meeting held Thursday afternoon*
Call money rates were unchanged at 1 1/2 per cent during the
past week. Ample supplies of call funds were available, though in the
last few days of the period offerings were considerably smaller than in
recent weeks. In the time money market practically no business was
transacted* Nominal quotations were unchanged at 1 1/4 per cent bid,
1 1/2 per cent offered for 60 days, 1 1/2 per cent flat for 90 days,
1 1/2 - 1 3/4 per cent for 4 months, ap,d 1 3/4 - 2 per cent for 5 and 6
months until September 24 when all maturities were nominally quoted at
2 per cent bid, with no funds on offer. Federal funds moved up from 1/8
per cent to 1/2 - 3/4 per cent on September 23, but on the 24th were in
extremely large supply at no higher than 1/8 per cent. The rate for
prime commercial paper continued at 2 per cent.
Government
During the first three days of the current statement week the
Security
market for long-term government bonds was slightly easier with prices of
Market
most issues fractionally lower. On Monday, September 21f following the
announcement that the British Government had suspended the gold standard*
the market for the long-term Treasury bonds was active and weak, and
prices of the Treasury 4 l/4s, 4s and 3 3/4s declined about one-half of
a point, while the remaining issues of Treasury bonds recorded losses
ranging from 1/32 to 9/32.
On Tuesday, the 22nd, a better undertone
was reflected in the market and some issues recovered part of their
losses for the week* but on the 23rd weakness again developed. The short
term issues of government securities were in good demand throughout the
week and prices advanced to slightly higher levels. At th,e close of the
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ «0» VffiSfr
3
current reporting period the average yield on the short-term issues*
at dealers* offering prices,wasQabout 0,35 per cent as compared with
0,39 per cent the previous week,/the average selling price for the
Liberty Loan and Treasury bonds was 103,29 as compared with the
previous week’
s average closing price of 103,52,
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
,
Approx,
Issue
Price
Change
Yield
1 7/8$ Cert, of Ind. due Dec. 15, 1931 100 12/32
----0.18$
2
$ w
"
"
♦* Mar. 15, 1932 100 27/32
+2/32
0,20$
1 1/8$ M
M
”
" Sept* 15, 1932 100 13/32
+5/32
0,70$
3 1/2$ Treasury Notes called for payment
Dec. 15, 1931 ICO 24/32
-2/32
0.11$
Treasury Bills - Nov. maturities 0.60$ discount bid, 0,40$ asked
**
w - all other maturities 0,55$ discount bid, 0,35$
asked
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of tho Previous Statement Week
Tfei.
Issue
Price
Issue
Change
Price
1st 3 l/2s 102 4/32 -1/32 Treas. 4 l/4s 1947-52 110 20/32
«
1st 4 l/4s 102 24/32 -3/32
1944-54 106 13/32
4s
H
3 3/4s 1946-56 104 18/32
4th 4 1/4s 104 26/32 +2/32
tf
3 3/8s 1943-47 101 20/32
tt
3 3/8s 1940-43 101 22/32
ft
3 3/8s 1941-43 101 22/32
tt
3 l/8s 1946-49 100 14/32
ft
99 15/32
1951-55
3s
Net
Change
-22/32
-23/32
-16/32
- 2/32
- 1/32
- 2/32
-10/32
- 4/32
Bankers
Dealers’offerings of unendorsed bankers acceptances were at
Acceptances the following rates at the close of the current statement week: 1 1 / 4
per cent for 30s, 60s and 90s, 1 3/8 per cent for 120s and 1 5/8 per
cent for 180-day bills. This represents an increase of 3/8 per cent
on all maturities over the previous week’
s offering rates.
Reports
Boston reported that there was very little demand for bills
week
in its district and has been for the past several periods. The demand
end ing
during the present week was practically negligible with the supply the
Sept, 23
greatest since the first part of August. In line with out-of-town
dealers, local dealers increased their rate 1/8 of 1 per cent with every
indication of a further advance. In New York the bill market was moder
ately active during the week. Following substantial offerings of new
bills to dealers by banks, dealers increased rates by 1/8 per cent on
the 22nd of the month and made a further increase on the 24th of 1/4
per cent. Their rates now are 1 3/8 bid on unendorsed bills maturing
up to 90 days, 1 1/4 asked; 1 1/2 bid for 4 months, 1 3/8 asked; 1 3/4
bid for 5 and 6 months, 1 5/8 asked. Endorsed bills 1/8 less for each
maturity. Dealers’portfolios, however, decreased during the week by
§30,000,000 to $50,000,000 due in a large measure to the increase in
the amount of bills they sold the reserve bank for System Account.
Heavy sales were also made to the reserve bank by the local banks*
Philadelphia reported that its acceptance market was moderately active.
Unsettled conditions generally caused dealers to raise rates 1/8 per
cent* Offerings to dealers were rather heavy fbr a day or so, about
the time the change of rates, although for the week portfolios showed
a reduction. Chicago reported that there was very little demand for
bills at present rates. Large amounts were offered to the reserve bank
probably in anticipation of change in rates. Dallas reported that there
was no demand for bills and that there were no offerings made to the
reserve bank.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0*
OPERATIONS FOR ACCOUNT OF TOUTED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows;
Purchase of
$
900*000 - 3% Treasury bonds of 1951-55, account Postal
Savings System
4,100,000_- 3% Treasury bonds of 1951-55, account German
__________
Special Deposit Account
$5,000,000 - Total Purchases
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week exchanges in maturities held in the
System Account were advantageously effected in the market as follows:
$10,800,000 - 1 7/8% certificates due Dec. 15, 1931
1.000.000 - 2
%
"
" Mar. 15, 1932
7.000.000 - 4 1/4:% First Liberty Loan bonds
a total of
$18»@00.*000
$ 5*000tQ00
7.000.000
1.000.000
5,800,000
$18,800,000
-* exchanged for
*■
* Treasury bills maturing Nov.
2 r 1931
- 1 1/8% certificates due Sept. 15, 1932
~ 3 1/2% First Lit>erty Loan bonds
- 4 1/4% Fourth
"
"
"
Totals
$524,468,000
CD
f—1
The $5,800,000 Fourth 4 l/4s acquired, as shown in the above statement, represented
part o f ‘
a block of $6,000,000 sold by a foreign correspondent which were taken over
into the System Account and offsetting sales made in the market of a like amount of
1 7/8 per cent and .2 per cent,Treasury certificates, which issues were more readily
marketable.
At the-request of the Federal Reserve Bank of Kansas City, owing to its
reserve position, $10,000*000 of its participation of government securities in the
System Account were taken over temporarily and apportioned to Federal reserve banks
which were in a position to ‘
paxtic ip ate.
The aforementioned transactions did not affect the amount of total hold
ings in the Account which remained at $524,468,000. The participations by Federal
reserve banks and the classification of issues held in the Account at the close of
business Wednesday, September 23, 1931, were as follc^ws:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
RECAPITULATION OF HOLDINGS BY MATURITIES
1'Dston
$ 54,122,500
Sept. 90* 1931 - Treas.Bills:...|i 5,000,000
»»
9,700,000
New York
Oct. 15. 1931 - tf
99,365,500
tf
tf
4,950 ,000
Iniladolphia
46,339,000
Oct. 26, 1931
tt
21,750,000
Cleveland
Nov*
62,085,000
2 , 1931 - M
tf
tt
7,225,000
Richmond
1931 Nov .
30,405,500
tt
V
Atlanta
17,725,000
Nov, 16 1 1931
19,773,500
tf
19,207,000
76,837,500
Chicago
Nov. 23, 1931 - tt
tf
tf
15,425,000
St. Louis
27,210,500 • ' Nov* 30, 1931 102,276,500
G/l
Minneapolis
20,273,000
Dec. 15, 1931 106,481,500
Kansas City
% ♦t
29 ,030 500
•Mar. 15, 1932 - 2
47,000,000
1 1/8 % tt
Dallas
15,132,000
sdpt. 15, 1932
27|250
San Francisco
43,893,500
Dec. 15, 1931 - 3 1/2% T/N
June 15, 1947 - 3 1/2% 1st L/L 64,025,000
14,750,000
June 15, 1947 - 4 1/4% 1st tt
88,925,750
Oct. 15, 1938 - 4 1/4 % 4th tf
$524,468,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q*
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_________________ FROM SEPTEMBER 17 TO SEPTEMBER 23, 1951_____________ ______________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Purchases
$ 3,052,000
9,961,500
2,888,000
2,225,500
1,090,000
709,000
4,824,000
1,471,500
726,500
1,174,000
542,000
2,454,500
Sales
$ 1,925,000
5,805,000
1,645,000
2,225,500
1,090 ,000
709,000
2,726,000
969*000
726,500
11,174,000
542,000
1,561,500
Net Increase
$ 1,127,000
4,156,500
1,245,000
0
0
0
2,098,000
502,500
0
0
0
875,000
Net Decrease
0
0
0
0
0
0
0
0
0
10,000*000
0
0
Totals
$51,098,500
$51,098,500
$10,000,000
$10,000,000
" OTHER TRANSACTIONS IN GOVERNMENT SECURITIES {EXCLUDING SALES CONTRACTS
AND SALE OF SPECIAL ONE-DAY CERTIFICATES OF INDEBTEDNESS)
Sales
Issue
Purchases
Issue
$
300 First L/L bonds
Boston
0
2,000,000 First l/L 4 1/4% bonds
New York
12,000 ,000* Misc , G o v ^ Sec.
Philadelphia
Treas. Bds, 1951-55
0
7*500
Atlanta
541,650 Misc. Gov1t SeCr
778,550
t Sec,
Misc . Gov’
tr
f»
ft
tf
6,069,650
6,788,350
"
”
Minneapolis
tf
tf
n
tt
10,000,000
"
"
San Francisco 10,000»000
£19,350,300
Totals
$28,855,500
^Includes $10,000*000 Treasury bonds taken over temporarily by the Federal Reserve
Bank of San Francisco from a menber bank and sold to Federal Reserve Bank of
New York for one day,
BANKERS ACCEPTANCES
Other Holdings
(OOO Omitted)
Close Sept.2^61
HoldSales
Pur
By Allot Maturities & Sales
Hold
Con Other
ing
chased
ings
ment from Held in Held ElseSept,23 tracts Bills
Sept,16
Own Mkt
New York
where
N. Y.
$ 12,213 $1,134 $3,759
$ '897
Boston
$ 1,020 $ 5,011 R f $ 7,079
4? 0
35,552 5,636 16,517
11,303
17,441
41,490*w
0
0
Nev; York
68,021 A.
Phila,
4,962
4,155
0
0
0
0
0
4,155
5,034
12,658
0
Cleve*
1,940
4,901
0
0
9,677
1,801
4,634
0
0
1,204
Richmond
705
5,153
0
1,979
4,744
0
Atlanta
1,014
956
0
220 R.
4,466
48,496
0
6,766
1,363
0
33,526 *»
15,477
2,856
Chicago
1,102
4,766
0
4,732
944
0
St. Louis
978
0
723
5,492
982
0
0
Minn,
0
3,174
1,500
1,44o
4,977
0
0
Kan. C ity
785
1,257
0
5,451
2,905
1,466
0
443
704
0
Dallas
0
3,166
13,552 2,873 3,329
2,769
4,016
4,774 "
0
San Fran#
7,531
$151,924 $9 £43 $48,884
$6,969
^29j519 $153,042
$68,021
$23,468
Totals
30,130
R
Bills held overnight by New York for distribution to other F. . Banks -- «
”
w
M
in Fore ign Suspense Account —
- - — - -- —
- ___ 2,606
T o t a l --------$ 81,622
* Includes $15,816 purchased from foreign correspondent, with maturities too short to allot#
NOTE: R. indicates Retained and A. indicates Allotted in above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
■*
- ''
Authority fe»0«
4
MATURITIES AND RATSS ON BILLS PURCHAS&D WEEK ENDING .SSFTEI.-iHBR 23, 1931
(000 Omitted)
1-30 days
Ifo
Boston
New York
Atlanta
Chicago
$an Francisco
*
0
62,213
79
15,418
2,805
&8Q,515
Totals
___ a ______
Over 90^-days
I 1/8#
0
50,490
44
13,189
1,411
0 5,011
16,307*
97
4,919
558
^ 0
501
0
0
0
$>45,154
026,892
£501
61-90 days
31-80 days
................-
$
Total
. 5,Oil
109-, 511
V
220
55,526
4,774
0153,042
*Purchased at 1 to 1 1/8#.
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES HIRING WEEK ENDING SEPTEMBER 25, 1951
£q q q Onitted)
”
{Excluding Sales Contracts and Special 1-day Cert, of Ind.)
Government
Securities
Purchased
Sold
Matured
Totals
Bankers
Acceptances
Total
#59,954
50,427
0
§153,042
0
50,457
0122,605+
85,959-(Net Change
_________ 1-day holdover
& other bills)
$212,996
50,427
50,457
$152,152+
83,959-(Net Change
__________1-day holdover
& other bills)
$ 9,527+
0 38,666+
0 48,195+
HOLDINGS. OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES SEPTEMBER 23,. 1951
(000 Omitted)
(Including Sales Contracts)
Within
15-days
16-50
days
31-60
days
61-96
days
91 days6 months
Over 6
months
Total
Gov’
t Securities
Bills Purchased
$ 7,000
87,629
#10,950
55,663
§ 66,150
48,688
$198,489
72,6$6
0112,045
543
0345,351
-
0757,985
243*189
Totals
$94,629
#44,613
$114,838
#271*155
0112,588
0343,551
0981,174
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« V2RS%*
September 19# W $1
Dear Mr* MattesGni
t acknowledge reoeipt of and shall bring to
the attention of tha member* of the Federal Boeerre
Board your latter of September 18th, addressed to
Governor Mayer, enclosing report of open market operations for the period from September 10# 1931 to Sept
ember 16, 1931 inclusive#
Very truly yours*
J . 0 * H o e ll,
A s s is ta n t S e c re ta ry
Mr. W. B« Matte* onf
Assistant Deputy Governor,
Federal Beaerre Bfcnk,
He* Yoric* Ifew York*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»0*
"IV4
OR SPECIAL CIRCULATION
FLEASE READ P£0£?PTLY, INITIAL ANp-RETUKri T 0 Sp8RETA.RY’
S OFFICE
Gov* Meyeir
Mr. Hamlin y//\ S Mr. James w y
^
Mr. M i ller
Hr.* M a g e e Mr. Pole
Fe d e r a l R e s e r v e B a n k
of
N e w Yo r k
September 18, 1951
CONFIDENTIAL
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from September 10, 1931 to September 16, 1931 in
clusive, together with data received from Federal reserve
banks.
W. B. Mattesoi*
Assistant Deputy Governor
Honorable Eugene Meyer, Governor,
Federal Beserve Board,
Washington, D. C.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0* \3RSy
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED SEPTEMBER 16, 1931
Holdings of Earning Assets of Federal Reserve Banks from September 17, 1930 to Date
(000 Omitted) **
SECURITIES
Sales
Contracts
$
420
150
0
0
43,403
s
i
TOTAL
EARNING
ASSETS
$ 989,415*
973,483
975,021
1,011,940
1,351,853
Outr ight
Purchases
$609,963*
601,656
601,438
595,634
686,064
BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
$203,119
§ 5,742
5,582
192,161
3,752
161,906
6,176
169,930
324,746
59 ,098
BILLS
-1930DISCOUNTED
$163,149
Sept, 17
Sept, 24
167,162
Oct. 29
201,603
Nov* 26
233,852
Dec. 31
251,398
-1931215,137
118,453
1,788
Jan. 28
945,405
0
609,877
189,847
Feb. 25
599 ,442
886
895,606
0
105,431
Mar. 25
165,425
598,459
0
847,256
100
83,272
155,151
133,949
35,816
Apr. 39
, 923,572
598,306
0
152,852
'May
3,291
27
876,489
598,368
0
121,210
197,678
618,503
103,164
3,226
Jitiie 24
947,334
0
July 29
934,795
62,909
677,977
3,627
183,036
0
Aug* 26
1,042
1,156,636
179,476
727,998
0
241,718
Sept. 9
1,192,352
728,065
800
260,232
0
196,988
Sept. 16
262,994
1,238,564**1
742,458**
194,880
22,890
0
*Includes ^45,000,000 special one-day Treasury certificate of indebtedness
*
M
§14,000,000
"
w
"
*
"
"
*
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
________________ DURING WEEK ENDED SEPTEMBER 16, 1951.___________
^00Q 0 m i t t e d )
GOVERNMENT SECURITIES
Balance
Net
Change
Sept.16
53,700
$
1235,548*
14,000+
55,081
0
72,085
0
31,558
0
22,372
127**
96,338
0
30,708
0
28,177
488+
39,115
38+
525,130
52,646
0
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
$742,458*
$14,393+*
1
, BANKERS ACCEPTANCES
Net
Balance
Sept* 16
Change
$2,484$ 1,020
755+
111303
0
0
8054,901
905705
1,014
5171,4992,856
1,300978
1121,300
1,704783
595443
6794,016
165,561
7,557+
$194,880
$2,108-
BILLS DISCOUNTED
Net
Balance
Sopt.16
Change
$ 7,272
§ 1002,29746,676
32,299
10,560+
1,40351,890
1,931+
22,214
2,776+
25,924
2,275+
25,582
2,889+
15,376
2183,989
42+
12,032
7013,552
15,62528,188
$262,994
$2,762+
*Includes $14,000,000 special one-day Treasury certificate of indebtedness
COMMENT ON CHANGES WEEK ENDED SEPTEMBER 16, 1931
Exclusive of the -$59,000,000 special one-day Treasury certificate of in
debtedness issued by the Treasury to cover the overdraft on September 16, of which
amount participations amounting to $45,000,000 were sold to New York Gity b^nks, the
total earning assets of the System showed an increase of $32,212,000 for the current
stateicent week. The changes by classification consisted of increases of §393,000 in
outright purchases of government securities, §2,762,000 in bills discounted,
$22,090,000 in bankers acceptances held under sales contracts, and $9,075,000 In
other holdings and a decrease of $2,108,000 in outright purchases of bankers accept*
anccs#
mmm
Reproduced from the Unclassified I Declassified Holdings of the National Archives
’ S '!
DECLASSIFIED
Authority £ » 0 «
2
Money
Market
The New York City banks held a moderate excess of reserves
in the period from Thursday, September 10 to Monday, September 14r as
compared with the slight deficit that developed on the preceding Wed
nesday. The larger reserve balances were the result chiefly of a net
inflow of funds from other parts of the country, gold imports, and an
increase in Federal Reserve bill and security holdings under repurchase
agreement, the aggregate of which exceeded withdrawals of currency in
cident to the week-end.
On September 15, the usual gain to the money market through
Treasury tax period operations occurred, and consequently, New York bank
reserves bccame surplus in a sizable amount. Treasury transactions in
this market on that day, including cash redemptions of maturing certi
ficates, interest payments, and purchases of securities, which to
gether considerably exceeded cash sales of the new bond issue and the
amount of income taxes collected, resulted in causing a fairly large
overdraft in the Treasurer*s account at the New York Reserve Bank. Net
Treasury receipts in most other districts allowed the Treasury to trans
fer funds to New York and to reduce to $96,000,000 the net amount of
the overdraft Jiere. In addition, the Treasury was overdrawn to the ex
tent of §55,000,000 at the Chicago Reserve Bank, making a total of
$129,000,000 of special one-day certificates of indebtedness that were
issued to the Reserve Banks to cover the temporary excess of Treasury
expenditures over receipts. In view of the large gain to the market in
Treasury transactions, the effect of which was only partly offset by
commercial transactions* it was found expedient to sell to New York
banks participations totaling $90,000,000 in the Treasury special certi
ficate issued to the New York Beserve Bank.
On the following day* the Treasury overdraft at the Reserve
Banks waa reduoed by income tax collections to $59*000,000 and con
centrated at the New York Reserve Bank. Accompanying the reduction
of the Treasury overdraft, the participations of the New York banks in
the special certificate were partially retired, leaving $45,000*000 out
standing. The net result of all transactions in the New York market on
this day, however, was a moderate further gain of funds, so that tho
excess of bank reserves was enlarged somewhat further.
Continued tax receipts credited to the Treasurer’s account
after the close of the reporting week reduced the Treasury overdraft to
$25,000,000 on the 17th* and on that day the participation of New York
City banks in the special certificate of indebtedness was terminated.
The gain to the market resulting from the retirement of the New York
City banks* participation in the Treasury overdraft about offset tax
collections here and an outflow of funds to other parts of the country
which was actuated by tax collections in other districts, so that re
serves of the New York banks remained largely in excess of the required
level. On the 18th, the Treasury overdraft will be extinguished, and
a small credit balance established.
Money rates were virtually unchanged during the past week.
Call money was quoted at 1 1 / 2 per cent, and ninety day stock exchange
loans also at 1 1/2 per cent. Federal funds, which had been quoted at
1/2 - 5/4 per cent during part of the preceding week, declined to 1/8 1/4 per cent on the 11th, and have since been quoted at 1/8 per cent.
The commercial paper market continued inactive at the prevailing rate
of 2 per cent for prime names. Quietness was reported both in the bank
investment demand and in the commercial inquiry for new accommodation.
m
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
Government
Security
Market
The market for long-term government securities, which had
developed some weakness a week ago, has continued weak and prices have
shown sharp reductions, though short time issues have been firm. The
small oversubscription and the consequent heavy allotment on the new
issue of 3 per cent Treasury bonds had a rather demoralizing influence
on the whole long-term government security market. There has, however*
been some improvement the last day or two accompanied by a firming in
prices. At the close of the current reporting period the average yield
on the short-term issues, at dealers* offering prices, was about 0.39
per cent as compared with 0*45 per cent at the close of the previous
week, and the average selling price for the Liberty Loan and Treasury
bonds (including the new issue of 3 per cent Treasury bonds of 1951-55)
was 103.52.
Excluding the new issue from the calculation, the average
selling price of the Liberty Loan and Treasury bonds was 103.91 as
compared with the previous week*s average closing price of 104.22.
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Approx i
Net
Change
Yield
Price
Issue
7/8$ Cert, of Ind. due Dec. 15, 1931 100 12/32
0.31$
0.40$
$
»' "
"
" Mar. 15, 1932 100 25/32
0.87$
1/8$
"
♦»
"
** Sept. 15, 1932 100 8/32
1/2$ Treasury Notes called for payment
0 12
Dcc. 15, 1931 100 26/32
-1/32
Treasury Bills - Nov* maturities 0.60$ discount bid, 0.40$ asked
**
M
- all other maturities 0.55$ discount bid, 0.35$
asked
. ^
Closing Prices on the New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Net
Price
Change
Change
Price
Issue
Issue
1st
l/2s 102 5/32 -2/32 Treas. 4 l/4s 1947-52 111 10/32
-16/32
1st
-18/32
1/4 s 102 27/32 +1/32
•» 4s
1944-54 107 4/32
4th
-16/32
” 3 3/4s 1946-56 105 2/32
1/ 4s 104 24/32 -2/32
-14/32
3 3/8s 1943-47 101 22/32
-15/32
3 3/8S 1940-43 101 23/32
-12/32
3 3/8s 1941-43 101 24/32
- 2/32
3 l/8s 1946-49 100 24/32
99 19/32
- 6/32
3s
1951-55
Bankers
Acceptances
Dealers* offerings of unendorsed bankers acceptances continued
at the following rates during the current statement week: 7/8 per cent
for 30si 60s and 90s, 1 per cent for 120s and 1 1 / 4 per cent for 180-day
bills*
Reports
week
ending
Sept. 16
Boston reported that the bill market in its district showed
little improvement over the previous period. While there was some demand
for short bills, the volume was small with the supply light, with very
few new bills coming out. There were no offerings to the Reserve bank,
except under sales contract. In New York the bill market was consider
ably more active this week than it has been for the past several weeks.
The first half of the week dealers* purchases exceeded their sales sub
stantially and aggregate portfolios increased to $107,000,000. During
the last half of the week a good demand developed with only a few bills
being offered and aggregate portfolios declined again to about
$80,000,000. This demand came principally from local banks who were
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»0»
4
considerably over in funds near the fifteenth of the month.
Philadelphia
reported that its acceptance market again showed little change from the previous
week, although there was an improvement in both the amount of offerings and the
demand* Chicago reported that the bill market in its district continued very
quiet* Dallas reported that there was a small demand for bills in its district
and no offerings were made to the Reserve bank*
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the
current statement weok were as follows:
Sale of
$
and purchases of
20*100,000 - par amount 3$ Treasury Bonds of 1951-55
account Postal Savings System
153,350 - par amount 3 3/8$ Treasury Bonds of 1941-43
account General Railroad Contingent Fund
“
$20,253,350 - Total purchases
*
106*000 - p^r amount 4 1/4$ Fourth Liberty Loan
bonds for account Alien Property Custodian
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week the following listed exchanges
were advantageously effected in the market:
$15,000,000
8.000.000
10,000,000
2.000.000
10.500.000
22.500.000
a total of
-
2 3/8$ certificates matured Sept. 15, 1931
1 1/2$
"
M
Sept. 15, 1931
Treasury Bills due Oct. 15, 1931
"
"
« Nov. 2, 1931
2$ certificates tf Mar. 15, 1932
4 1/4$ First Liberty Loan bonds
$68,000,000 - which were exchanged for
$ 4,000,000
8.000.000
5.000.000
4.000.000
40,000,000
3.500.000
2.500.000
1.000.000
~
**
2 3/8$ certificates matured Sept. 15, 1931
1 1/2$
"
"
Sept. 15, 1931
Treasury Bills due Nov* 23, 1931
1 7/8$ certificates due Dec. 15, 1931
1 1/8$
"
" Sept.15, 1932
4 1/4$ First Liberty Loan bonds
4 1/4$ Fourth Liberty Loan bonds
3 1/2$ First Liberty Loan bonds
$>68,000,000
The $12,000,000 certificates maturing September 15, 1931, acquired during the
current statement week, and $11,000,000 acquired during the previous week, a
total of $23,000,000, were purchased with the understanding that the dealer
would repurchase these certificates on September 15 and sell us in exchange a
like amount of the new one year 1 1/8$ Treasury certificates, all of which
was completed on September 15.
These transactions did not affect the amount of total holdings in the
Account which remained at $524,468,000. The participations by Federal reserve
banks and the classification of issues held in the Account at the close of
business, Wednesday, September 16, 1931, were as follows:
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ * 0 «
5
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis Minneapolis
Kansas City
Dallas
San Francisco
$ 52,995,500
95,209,000
45,096,000
62,085,000
30,405,500
19,773,500
74,739,500
26,708,000
20,273,000
39,030,500
15,132,000
43,020,500
Totals
§524,468,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Sept, 30, 1931 Oct, 15, 1931 ft
26, 1931 Nov.
2, 1931 tf
9, 1931 tt
16, 1931 n
23, 1931 »t
30, 1931 Dec, 15, 1931 Mar. 15, 1932 Sept. 15, 1932 Dec. 15, 1931 June 15, 1947 15, 1947 Oct, 15, 1938 -
Treas.Bills
tt
tt
ti
tt
tt
tt
tf
»r
tf
tt
tf
tf
tf
tf
1 1/8% C/I
2
% tt
1 1/8% tt
3 1/Z% T/N
3 1/2% 1st L/L
4 1/4 % 1st »t
4 1/4% 4th tf
| 5,000,000
9,700,000
4,950,000
16,750,000
7,225,000
17,725,000
19,207,000
15,425,000
113,076,500
107,481,500
40,000,000
27,250
63,025,000
21,750,000
83,125,750
$524,468,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
6
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURIT. J AND BANKERS ACCEPTANCES
AFFECTING 1HE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
FR<M SEPTEMBER 10 TO SEPTEMBER 16* 1931, INCLUSIVE
government
Boston
New York
Philadelphia
Cleveland
Richmond
.Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
SECURITIES - SYSTEM INVESTMENT ACCOUNT
Purchases
$ 6,871,000
12,344,500
5,847,000
8,049,500
3,942,000
2,563,500
9,690,500
3,463,000
2 *.628,500
5,060*500
1,962,000
...5,578.000
Sales
$ 6,871,000
12,344,500
5,847,000
8,049,500
3,942,000
2,563,500
9,690,500
3,463,000
2,628,500
5,060,500
1,962,000
5,578,000
$68,000,000
$68,000,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES (EXCLUDING SALES CONTRACTS
AND itJRCHASE OF SPECIAL ONE-DAY CERTIFICATES OF INEEBTEINESS)
Nfew York
Boston
Atlanta
rlinheapolis
Kansas City
Dallas
Totals
Purchases and
By Kxchan^e
$13,000,000
0
423,450
1,308,100
15«000
47,600
0
$14,794,150
Issue
Hi sc. Gov't Sec.
Misc. Gov't Sec.
tf
W M
Sept. 15/32 6/1
Treas.Bonds 1951-55
-
Sales and
By Exchange
$13,000,000
1,000
549,850
820,150
25,000
5,000
Misc.
First
Misc.
"
Sept.
Issue
Gov't Sec.
L/L bonds
Gov't Sec.
"
"
15/31 C/I
Treas.Bonds 1946-49
$14,401,000
BANKERS ACCEPTANCES
OOO Omitted)
Maturities
and Sales
ByAllotHeld
Held
meot from
in
Else
New York
N. Y.
where
$ 349
#2,833
$ o
* 0
5,978
0
Other Holdings
Hold
Pur
Hold
ings
chased
ings
Other
Sales
Sept. 9 Own Ivfkt,
Sept.16 Contracts Bills
Boston
$ 3,504 $ 0
$ 1,020 $ ' 287 $ 13,133
New York
10,548
6,733 R
61,9 53
11,303
16,772
3,269 A
Phila.
0
0
0
0
0
0
0
17,336
Cleve.
5,706
0
467
0
4,901
0
1,272
16,842
Richmond
1,610
0
248
1,153
0
70S
0
1,805
Atlanta
1,531
290
221
C
1,028
2,284
1,014
0
Chicago
4,355
50
647
0
2,196*
0
2,856
23,639
St.Louis
2,278
0
225
1,525
0
0
1,106
978
Liinn.
0
1,412
140
0
252
0
1,300
726
Kan. City
2,487
0
265
0
1,969
783
4,836
/ 0
Dallas
838
0
152
547
0
443
0
4,782
San Fran.
4,695
500
0
555
1,734
4,016
10,843
5,831
Totals
$38,964 vj>10,342
$3,269
.£12,452 $6,035 ^29,319 $22,890 $159,285
Bills held over night by New York for distribution to other Fed. Res. Bks.6,276
T o t a l -------$165,561
* Includes $100,000 sold*
**Maturities too short to allot.
NOTE:
R.
indicates
Retained
and
A.
indicates
Allotted in above statement.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0* flR S fr
,/m i
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING SEPTEMBER 16, 1951
(000 Omitted'
1-30 days
1%
31-60 days
1%
61-90 days
Over 90-days
Total
2
0153
288
0
__0_
$10,002
290
50
500
$10,401
0441
$10,842
New York
Atlanta
Chicago
San Francisco
$ 9,849
Totals
50 *
500 *
* Purchased at 3/4 of 1$.
RECAPITULATION OF PURCHASES AND SALES OF GOVERN? 1ENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK EMDING SEPTEMBER 16, 1931
(000 Omitted)
(Excluding Sales Contracts and Special 1-day Cert, of Ind.)
Government
Securities
$82,794
82,401
0
Purchased
Sold
Matured
Totals
393+
Bankers
Acceptances
Total
010,842
100
20,387
0 9,6457,537+(Net Change
______ 1-day holdover
& other bills)
2,108-
093,636
82,501
20,387
0 9,2527,537+(Net Change
1-day holdover
& other bills)
1,715-
HOLDINGS OF GOVBHOT.IENT SECURITIES AND BANKERS ACCEPTANCES SEPTEMBER 16, 1951.
(000 Omitted)
(Including Sales Contracts and Special 1-day Cert, of Ind*)
Gov't Securities
Bills Purchased
Totals
Within
15-days
16-30
days
31-60
days
61-90
days
91 days6 months
Over 6
months
Total
$21,000
55,712
010,950
5^651
038,425
3,099
0232,014
155,508
0113,045
0
0327,024
0
0742,458
217,770
076,712
014,601
041,524
0387,322
0113*045
0327,024
0960,228
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0* V2R5$'
Soptaiabor 12, 1981
D#ar Mr* Ifcttoaom
\
I
acknowledge reoeipt of and ahall bring to
tho attention of tho sao&bor* of tho Federal Bosorro
Board your lottor of September U t h , addreaaed to
Governor Mayer* enclosing a report of opon naifcet
operations for tho period f n s September S# 1951
to September 9, 1951 incluaiTO*
T o ry t r u l y y o w » #
J, 0.
J * Cm N o o l l t
A a a ia t & n t S e c r e t a r y
Mr* W * B « M a tte s o n ,
A»ai»tant Deputy Governor,
Federal Reserve Bank,
Kov York, Sow York*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc«Q» V2RS$*
/
t o t ; a l
circulat
JAD't HC^TTLY, INITIAL AL1D RBTUEM 1
Governor
Mr. Hamliu
^ Mr. James
*V-v. v.
Mr. Miller
*TCr.'Jfegde ^
f l i EALE R
ART* ■; UK'FICS
7
■
■
<
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
CONFIDENTIAL
September 11, 1931.
Dear Governor Meyer:
Enclosed is a report of open market operations
for the period from September 3, 1931 to September 9, 1931
inclusive, together with data received from Federal reserve
banks.
W. B. Mattesofc.
Assistant Deputy Governor
Honorable Eugene Meyer, Governor,
Federal Reserve Board,
Washington, D. C*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
■PWWUPP
DECLASSIFIED
Authority fc»0«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS F O R T O K ENIBD SEPTEM®JR 9, 1931
Holdings of Earning Assets of Federal ReserveBanks from September 10, 1930 to Date
TOTAL
EARNING
ASSETS
$ 985,120
973,483
973,021
1,011,940
1,351,853
-1930Sept. 10
♦» 24
Oct. 29
Nov. 26
Dec. 31
-1931Jan< 28
Feb. 25
Mar. 25
Apr. 29
May
2?
June 24
3uly 29
" Aug. 26
Sept. 2
»»
9
945,405
895,606
847,256
983,572
876,489
947,334
934,795
1,156,636
1,189*513
1,192,352
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
#601,863
$
170
150
601,656
0
601,438
0
595,634
43,403
686,064
609,877
599,442
598,459
598,306
598,368
618,503
677,977
727,998
728,108
728,065
0
0
100
0
0
0
0
0
0
0
BANKERS ACCEPTANCES
Outright
S&les
Purchases
Contracts
$1$,697
$177,423
5,583
192,161
3,752
161,906
6*176
169,930
39,098
324,746
BILLS
DISCOUNTED
$183,195
167,162
201,603
233,852
251,398
1,788
118,453
105,431
83,272
133,949
886
0
35,816
3,291
3,226
3,627
1,042
394
800
121,210
103,164
62,909
179,476
197,474
196,988
215,137
189,847
165,425
155,151
152,852
197,678
183,036
241,718
257 *285
260,832
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
____________________DURING WEEK ENIED SEPTEMBER 9, 1951
{oo T ’
STttedJ
Boston
Now York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
'J. I . holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Net
Balance
Sept. 9
Change
| 53,701
& c
221#548
0
55,081
0
72,085
0
31,588
0
22,499
182+
96,338
0
30,708
0
27,689
20639,077
0
25,135
1952,646
0
$728,065
$ 43-
BANKERS ACCEPTANCES
Net
Balance
Sept. 9
| 3,504
33810,548
0
0
5,706
1,610
1,531
4,355
2 ,2*8
1,412
2,487
838
4,695
1,5871 ,201124+
2,189-
158,024
6,692+
$196,988
0
72115437+
595-
|
486-
BILLS DISCOUNTED
Balance
Net
Sept* 9
Change
$1,044*
§ 7*3*2
48,973
3,78921,739
3,362+
71133,293
20,283
803+
83,148
515+
23,307
19+
10.487
8324,207
15711,990
803449 —
13,622
41,811
6,033+
$260,232
$2,947+
COMMENT ON CHANGES WEEK ENIED SEPTEMBER 9, 1931
Total earning assets of the System showed an increase of $2,839,000 for
the current statement week. The changes by classification consisted of increases
of $2,947,000 in bills discounted and $406,000 in bankers acceptances held under
sales contracts, and a decrease of $486,000 in outright purchases of bankers
acceptances#
w
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q»
2
Money
Market
During the entire past week the New York City banks were in ^
possession of a relatively narrow excess of reserves, and on the last
day of the period, Wednesday, September 9, a small deficit developed.
The shortage of #2,000,000 on that day compares with an overage of
$25,000,000 on the previous Wednesday, and with an average surplus of
$ 1 1 ,000,000 during the preceding days of the reporting week just closed#
The net decrease in reserve balances held by the City banks during the
past week amounted to $45 ,000,000,against which there was a decline of
#18,000,000 in their reserve requirements from the turn of the month
peak reached in the previous week. The reduction in member bank reserve
balances resulted chiefly from a further increase in foreign balances
held at the Reserve Bank which withdrew funds from this market.
There
were also smaller reductions in member bank balances arising from with
drawals of funds from Government depositaries in excess of disbursements
in this market, and from a decline in Federal Reserve discount and bill
holdings through transactions here. Inter-district wire transfers and
check settlements were slightly in favor of New York, and the return of
currency in New York in the two days after Labor Day about equaled the
amount withdrawn in the three days prior to the holiday#
Despite the narrowing of the excess of bank reserves, offer
ings of call funds remained ample, with the rate unchanged at 1 1/2 per
cent. In the time money market, little change was evident, and all
rates were the same at the end of the week as at the beginning except
for the 90 day quotation which moved up to 1 1/2 per cent flat, as com
pared with 1 1/4 per cent bid, 1 1/2 per cent asked in recent weeks.
The amount of new fixed date accommodation arranged continued to be
nominal• The federal funds market, however, reflected the bank reserve
position and in the last few days thesa funds were quoted mostly at 1/2 3/4 per cent, and on occasion at 3/4 - 1 per cent, as compared with
1/8 - 1/4 per cent for some weeks past.
In the commercial paper market, both the supply of and demand
for paper were of limited volume during the past week. No change
occurred in the 2 per cent prevailing quotation for prime material.
Government
Security
Market
During the greater part of the current statement week the
market for TJnited States Government securities was quiet and steady. On
Wednesday, September 9, however, following the announcement of the small
over-subscription to the new 3 per cent Treasury bonds, considerable
weakness developed in the market for the long-term issues, and to a
lesser extent, in.the shorter issues. At the close of the current re
porting period the average yield on the short-term issues, at dealers*
offering prices, was about 0.45 per cent as compared with 0.38 per cent
at the close of the previous week, and the average selling price for
the Liberty Loan and Treasury bonds was 104.22 as compared with the
previous week's average closing price of 104.60. Prices of the short
term issues were partly influenced by slightly firmer money conditions
as the surplus reserves of the New York City banks have been practically
eliminated.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
'
Authority £»Q«
Dealers* Offering Prices at the Close of the Current statement Week
and Net Changes from the Close of the Previous Statement Week
1 7/8#
2
#
1 1/8#
3 1/2#
Net
Approx,
Issue
Price
Change
Yield
Cert, of Xnd. due Dec. 15, 1931
100 12/32
-l/$2
0,42%
w
n .t
tt M ar# 15 f 1932
100 25/32
-2/32
0.46#
"
** **
** Sept. 15, 1932 (W. I.) 100 8/32
+8/32
0.87#
Treasury notes called for payment
Dec. 15, 1931
100 27/32
-3/32
0.24#
Treasury bills - Nov. maturities 0.65# discount bid, 0.45# asked
w
w
qli other maturities 0.60# discount bid, 0.40# asked
Closing Prices on the New York Stock Exchange at the
Close of the Current Statement Week and Net
Changes from the Close of the Previous Statement Week
NSt
Issue
1st 3 l/2s
1st 4 l/4s
4th 4 l/4s
Price
102 ’7/32
102 26/32
104 26/32
W, I. - when issued
Change
-2/32
-2/32
-2/32
Issue
Treasury 4 l/4s
m
4s
3 3/4s
it
3 3/8s
n
3 3/8s
ft
3 3/8s
tt
3 l/8s
ft
3s
h
1947-52
1944-54
1946-56
1943-47
1940-43
1941-43
1946-49
1951-55
Price
111 26/32
107 22/32
105 18/32
102 4/32
102 6/32
102 4/32
100 26/32
(W.I.) 99 25/32
Net
Change
-18/32
-16/32
-20/32
-18/32
-13/32
-18/32
-15/32
Bankers
Acceptances
Dealers* offerings of unendorsed bankers acceptances continued at the following rates during the current statement week: 7/8
per cent for 30s, 60s and 90s, 1 per cent for 120s and 1 1/4 per cent
for 180-day bills.
Reports
week
ending
Sept, 9
Boston reported that there was very little change in the
local bill market during the past period, although the supply and
demand continued small. Short bills moved best at offered rates.
Dealers, however, were again obliged to forward most of their offerings
to other cities. There were no offerings to the Reserve bank except
on sales contracts. In New York the bill market was quiet throughout
the week. Dealers* sales exceeded their purchases moderately and
aggregate portfolios decreased by about $4,500,000 to $73,500,000*
About 52 per cent of dealers* total sales were mad© to the Reserve bank
for the account of foreign correspondents, the bulk of the balance hav
ing been purchased by local banks. Rates unchanged* Philadelphia
reported there was very little change in its acceptance market. Very
few bills were offered, banks holding rather than offering their bills.
The demand was moderately better. Chicago reported that its bill
market continued very dull. Dallas reported that there was no demand
for bills and no offerings were made to the Reserve bank.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q»
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY .
Transaction consummated under Treasury authorization during the current
statement week consisted of
Sales of $300,000 - 4 1/4$ Fourth Liberty Loan bonds, account Alien
Property Custodian
200,000_- 3 3/8$ Treasury Bonds of 1943-47, account Demobilized
________
Military Organizations
$500,000 - Total Sales
SYSTEM SPECIAL INVESmENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week exchanges were effected in the market
of
$ 5,000,000 - Treasury Bills due Oct, 15, 1931
3.000.000
"
*
" Nov. 2, 1931
1.000.000
"
"
"
"
16, 1931
2.000.000
"
"
"
«
23, 1931
5.000.000 - 1 7/8$ certificates due Dec. 15, 1931
5.000.000 - 4 1/4$ First Liberty Loan bonds
a total of §21 ,000,000 - exchanged for
$11,000,000 - 2 3/8$ certificates due Sept. 15, 1931
5.000.000 - Treasury Bills due Nov. 23, 1931
5.000.000 - 3 1/2$ First Liberty Loan bonds
#21,000,000
The $11,000,000 - 2 3/8$ certificates purchased were acquired with the understanding
that the dealer would repurchase these certificates on September 15 and sell us in
replacement a like amount of the new one year 1 1/8$ Treasury certificates.
These transactions did not affect the amount of total holdings in the
Account which remained at $524,468,000. The participations by Federal reserve banks
and the classification of issues held in the Account at the close of business
Wednesday, September 9, 1931, were as follows:
PARTICIPATIONS BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
RECAPITULATION OF HOLDINGS BY MATURITIES
$ 52,995,500
95,209,000
45,096,000
62,085,000
30,405,500
19,773,500
74,739,500
26,708,000
20,273,000
39,030,500
15,132,000
43,020,500
Sept. 30, 1931-Treasury Bills $ 5,000,000
tt
tt
Oct. 15, 193119,700,000
tt
«
»
26, 19314,950,000
tt
tt
Nov,
18,750,000
2 , 1931n
tt
N
7,225,000
9 , lp31»
tt
tt
16, 193117,725,000
tt
tt
tt
23, 193114,207,000
tt
tt
n
30, 193115,425,000
Dec, 15, 1931- 1 7/8$ C/I
109,076,500
Mar. 15, 1932- 2
117,981,500
$ tt
Sept. 15, 1931- 2 3/8$ tt
1 1 ,000,000
Dec. 15, 1931- 3 1 / 2$ T /N
27,250
June 15, 1947- 3 1 / 2$ 1 st L/L 59,025,000
tt
43,750,000
15, 1947- 4 1/4$ 1 st w
Oct. 15, 1938- 4 1/4$ 4th "
80,625,750
$524,468,000
#524,468,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»0«
•ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AOTCTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
, FROM SEPTEMBER 3 TO SEPTEMBER 9, 1931, INCLUSIVE___________________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Purchases
$ 2 ,122,000
3,812,000
1,806,000
2,486,000
1,217,500
791,500
2,992,500
1,069j500
811,500
1,563,000
606,000
1,722,500
Sales
$ 2 ,122 ,000
3,812, 000
1,806, 000
2,486, 000
1,217, 500
791, 500
2,993, 500
1,069, 500
811, 500
1,563, 000
606, 000
1,722, 500
$2 1 ,000,000
# 21 ,000,000
OTHER TRANSACTIONS IN GOVERN!'IENT SECURITIES - (EXCLUDING SALES CONTRACTS)
New York
Atlanta
Minneapolis
Dallas
Totals
Issue
Sales
$2,000,000 Treas. Bills 11/9/31
332 ,900 Misc. Gov*t Sec.
f» w
"
<552 ,600
24:,000 Fourth L/L bds.
$2,966,250
#3,009 ,500
0
g
=&>
BANKERS ACCEPTANCES
(000 Omitted)
Maturities
and Sales
Hold*
PurBy AllotHeld
Held
ings
chased
ment from
in
Else
Sept. 2 Own Mkt • New York
N. Y.
where
§ 3,958 # 0
$1,058
10,886
2,233 R
0
2,571
0
5,168 A
1
Bos ton
New York
Rirchases
Issue
$ 2 ,000,000 - 2 3/8% 9/15/31 C/I
515,000 Misc. Govft Sec.
M
«
H
446,250
5,000 Treas. Bonds 1946-49
Hold
ings
Sept. 9
$ 3,504
10,548
Other Holdings
Close Sept. 9/31
Sales’
Other
Contracts
Bills
* §149
$13,048
0
61,125
03
0
Phila.
0
0
0
0
0
0
0
Cleve.
7,393
0
807
0
2,494
5,706
0
Richmond
2,811
0
0
1,610
431
1,632
0
Atlanta
1,407
45 R
378
277
22
1,531
0
Chicago
6,544
0
1,105
0
3,294
4,355
0
St. Louis
2,278
0
375
375
2,278
0
0
Minn*
2,133
0
241
861
101
1,412
0
Kan.City
2,641
0
451
605
0
2,487
0
Dallas
801
0
266
229
0
838
0
San Fran.
5,290
0
510
0
1,105
4,695
651
Totals
$46,142 $7,446
$5,168
$6,550
$38,964
$800
Bills held over night for distribution to other Federal reserve banks - —
Total
NOTE:
R. indicates Retained and
17,224
16,740
1,765
2,248
23,487
1,141
749
4,807
4,751
10,774
§157,859
165
$158,024
A* indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
A uthority £ » 0 «
(000 Omitted)
31*60 days
.1% ......
61-90 days
Over 90-days
-
Total
$6,245
.. 0 n .
$1,156
..,.4i*
§o
4*
0
0
$7,401
45
$6,245
$1,19?
S4
0
$7,446
1-30 days
. H ...
New York
Atlanta
Totals
*Rates not reported*
RECAPlmATICT OF ftJRCHASES AND SALES OF GOFEKftiErT SECURITIES
AND BANKERS .ACCSt^AffCgS SIRING .V/ESK ISNPI^G. SSFTSIvIBER 9, .1931
(oOC Omitted)
(Excluding Sales Contracts)
Bankers
Acceptances
Government
Securities
Purchased
Sold
Matured
Totals
#23,966
24*009
0
Total
$:?„446
0
JM gi
§ 7,198-*
6,692*(Net Change
1-day holdover
& other bills)
43-
$
$31,412
24,009
14^624
9 7,2216,692+ (Net Change
.... 1-day holdover
& other bills)
529*
486-
HOLDINGS OF, GOVSW.BNT SSCU&rifSS AND BANKERS ACCEPTANCES, SfePTMHER 9, 1931
(000 Omitted)
(Including Sales Contracts)
Ufithin
15*days
16-30
days
31-60
days
Gov’
t Securities
Bills Purchased
$13,105
’
.34,861
$ 7,000
5,622
$45,650
3,409
$101,155 $145,584
153,896
0
$415,571
$728,065
0197,788
Totals
$47,966
$12,622
$49,059
$255,051 ^145,584
$415,571
$925,853
61*90
days
91 days6 months
Over 6
months
Totals
@FedFRASER