The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority ^ » 0 •
\
^ I
January 5 t 1931.
Dear "r« Eattocon:
I acloioiiledga reoeipt of and 3lia.ll bring
to the attention of the neribors of the Board
your letter of Jamary 3 enclosing a report of
open m r k c t operations for the period fron
Docenbor 26 # 1930 to Decoriber 31# 1930 f ir.clucive,
to;:,ietl.;ar with data received froa Federal Heserro
'oariteu
Tory truly youra,
E. M. lb01eHaiidf
Assistant Secretary.
Mr. W# 3 m r&tteeon*
Assistant Deputy Governor,
federal AGaerve Ban!:*
i-ew York, Hew Yoric,
|
I
I
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority f c . D - \ t e c H
S
1
'J t w v
'
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
%
%
January 5, 1951
Mr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. G.
Dear Mr. GoldenweiserJ
Enclosed is a report of open market operations for
the period from December 26, 1930 to December 51, 1950 inclu
sive, together* vtith data received from Federal reserve banks.
W. B. Matteson
Assistant deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED '
Authority
Q •\
FOR SPECIAL CIRCULATION
, I N I T I A L A N D R E T UR is
FI
Gov. Meyer.V'
&r. Hamlin
Miller
^ I
; 'j '
r- .
s' ...*. •.
O
p \ ^ T~! rV 4,? j j X,
Mr. Jame,
Mr, Pol
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
January 5, 1931
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from December 26, 1930 to December 31, 1950 inclu
sive, together
Vvith
data received from Federal reserve b«nks.
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Bonrd,
Washington, D. C.
Encl.
RECEIVED
s i93i
OFFICE O F
jan
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED *
Authority ^ j 0 • \
^ |
|
|
I
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED DECEMBER 31, 1930
Holdings of Earning Assets of Federal Reserve Banks from December 51, 1929 to Date
(000 Omitted)
TOTAL
EARNING
ASSETS
01,547,517
-1929Dec. 31
-1930Jan. 29
Feb. 26
Mar* 26
Apr. 30
May
28
June 25
July 30
Aug. 27
S^pt 24
Oct. 29
Nov. 26
Dec. 24
Dec. 31
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
<>487,292
£>23,295
1,154,379
1,138,522
1,001,090
982,225
958,776
916,038
911,554
967,034
973,483
975,021
1,011,940
1,356,395
1,351,853
.
476,466
477,610
526,284
527,124
529,450
576,560
576,323
601,913
601,656
601,438
595,634
639,645
686,064
BANKERS ACCEPTANCES
Outright
Sales
Purchases Contracts
<*>236,974
^155,235
70
5,145
2,715
2,385
320
410
45
0
150
0
0
2,031
43,403
185,677
232,521
143,772
161,846
130,066
94,735
127,965
159,137
192,161
161,906
169,930
221,759
324,746
BILLS
DISCOUNTED
$632,421
72,795
66,785
112,710
47,718
45,494
7,578
2,797
4,137
5,583
3,752
6,176
38,078
39,098
406,941
342,781
206,829
233,452
247,046
231,505
197,101
193,275
167,162
201,603
233,852
448,349
251,398
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
_______________ DURING WEEK ENDED DECEMBER 31, 1930______________
( 0 q q Qm i-tted)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
GOVERN!,'MIT SECURITIES
Balance
Net
Dec. 31
Change
$ 49,925
$ 2,999+
246,929
16,378+
54,204
3,205+
62,925
4,032+
1,646+
13,907
7,877
105+
82,603
0
1,965+
26,383
1,043+
27,302
2,274+
31,611
1,654+
31,316
11,118+
51,082
$686,064
$46,419+
BANKERS ACCEPTANCES
Net
Balance
Dec. 31
Change
$ 20,004
$ 4,736+
23,569+
57,906
6
0
5,594+
22,333
612+
9,425
2,340+
14,018
20,028+
45,060
2,137+
9,493
1,789+
7,583
3,464+
11,892
1,485+
7,496
679+
23,671
. 95,859
36,554+
$324,746
g>102,987+
BILLS DISCOUNTED
Balance
Net
Change
Dec, 31
$ 13,238 $ 11,63179,58861,898
15,09625,663
10,34037,216
15,69322,766
10,74518,069
8,87022,804
3,05211,301
5863,576
33815,042
2,3464,342
38,66715,483
$251,398 $196,951-
COMMENT ON CHANGES WEEK ENDED DECEMBER 31, 1930
Total earning assets of the System showed a decrease of $4,542,000 for
the current statement week. The changes by classification consisted of increases
of .$46,419,000 and $102,987,000, respectively, in outright purchases of government
securities and bankers acceptances, $42,392,000 in investments held under sales
contracts, and a decrease of $196,951,000 in bills discounted. The change in sales
contracts consisted of increases of $41,372,000 and $1,020,000, respectively, in
government securities and bankers acceptances.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
2
Money
Market
Luring the past week the money market was subject to the
influences which usually manifest themselves as the end of the year
draws near accentuated this year by an unusual amount of ’
’
window
d r e s s i n g . T h e preparations for December 31 statement and first of
January interest and dividend disbursements were accompanied by a sizable
increase in the required reserves of the New York City banks, and call
money rates advanced. Call money began after Christmas at 2 per cent
and advanced on the 26th to 2 1/2 per cent; on the succeeding day on
which call money is quoted, Monday, the new loan rate went to 4 per cent
frail a 2 1/2 per cent renewal level. At that point purchases of securi
ties were made for system account with an immediate effect on the money
market. On the next day all transactions were at 3 1/2 per cent, and on
the last day of the year the rate for new loans receded to 3 per cent
from a 3 1/2 per cent renewal figure.
Early in the first business day
of the new year, Stock Exchange call money declined to 2 per cent, and
later in the day to 1 1/2 per cent.
The demand for funds during the week took the form of an out
flow of funds to other centers, in addition to which a substantial
amount of currency was earmarked for New York City banks - a usual oc
currence at this time of year and representing, it is understood,
transactions for Canadian banks through their New York correspondents.
There was also a great effort by banks to show no indebtedness at the
end of the year and to show large cash reserves. Return of other
currency to the Reserve Bank tended to offset losses, to the market,
but the demand was largely met by sales of bills to the Reserve Bank
and the purchase of $32,925,000 of securities for the .System Special
Investment Account. The bill and security purchases by this bank
enabled the City banks to reduce their indebtedness here from fyQQ,000,cc0
on December 24, to only $26,000,000 on December 31, and also enabled the
City banks to accumulate a considerable surplus of reserve balances, as
against a moderate deficit existing a week earlier. On January 2, the
reverting of call money to its former easy position made it expedient to
dispose of part of the securities acquired prior to the year-end and
bill operations on that day also resulted in a loss to the money market,
inasmuch as bill maturities frcpi the Federal Reserve portfolio were not
accompanied by offerings of bills to this bank.
Quotations in the time money market were unchanged during the
past week, and little trading activity was reported. At the close of
the period, 3 months* money was quoted at a nominal rate of 2 1/4 per
cent bid, 2 1/2 per cent asked.
As is usual at this time of year, both the supply of and
demnd for commercial paper were of limited volume. Prevailing rates
for prime commercial paper continued to be ^iven as 2 3/4 - 3 per cent.
Government
Security
Market
Accompanying firmer money conditions during the first four
days of the last statement week, the demand for United States Government
securities fell off and, while short-term issues remained firm, the
prices for the long-term bonds showed an average loss of about 1/4 of 1
per cent. On the last two days of the statement week, (which were also
the last two days of the calendar year) in sympathy with the ease in
money rates and partly assisted by System purchases, the demand for
United States Government securities was much better, with the market re
flecting a good undertone and prices of the long-term bonds recovering
part of the losses recorded earlier in the week. At the close of the
statement week the average yield on the short-term government securities,
at dealers’offering prices, was about 1.50% as compared with 1.53% last
week and the average selling price for the Liberty Loan and Treasury
bonds was 104,87 as compared with 104.92 last week and the high for the
year of 105.38.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED '
Authority
2
1 5/4$
Z
3/&?o
1 7/8#
3 1/2#
3 1/2#
Q •
\bG
0
\
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Approx.
Net
Price
Change
Issue
Yield
1.30$
100 22/52
Cert. of Ind. due June 15, 1931
” June 15, 1951
I.100 4/52
100 18/52
" Sept. 15, 1931
1,55#
+1/32
100 5/32
" Dec. 15, 1931
l.1
Treasury Notes Series "A”and "B”
100 14/32
----1 .:
called for payment Mar. 15, 1951
101 20/32
----1.75#
Treasury Notes due Dec. 15, 1932
1 5/8# - 1 l/4# discount
Treasury Bills " Feb,. 16, 1951
Tt
tt
Closing Sale or Bid Prices on New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Issue
1st 3 l/2s
1st 4 1/4b
4th 4 l/4s
Price
101 29/32
102 30/32
103 21/32
Net
Change
+1/32
_
-
-
+2/32
Issue
Treas.
tt
t?
tt
tt
4s
4 l/4s
3 3/4s
3 3/8s
3 3/8s
1944-54
1947-52
1946-56
1943-47
1940-43
Price
108
(B)
112 4/32
106 l/32(B )
102 11/32(B)
102 7/32
Net
Change
-4/32
+1/32
-3/32
-2/32
- - -
(B) indicates bid price,
_______
Bankers
Acceptances
Dealers’offerings of unindorsed bankers acceptances continued at the following rates during the current statement week:
1 7/8 per cent for 30s, 60s and 90s; 2 per cent for 120srand 2 l/8
per cent for 180-day bills.
Reports
week
ending
Dec. 31
In Boston dealers reported that there was a small supply of
bills, with an increased demand during the past period. Bills moved
freely at offered rates, with 90-day maturities in best demand.
Local banks came in the market, with the result that dealers were
obliged to receive bills from their offices in other cities in order
to obtain the desired maturities. The supply of new bills continued
small. In New York the bill market was moderatly active during the
week. Dealers’purchases fell off somewhat as compared with the past
two weeks. Their sales continued in good volume and exceeded their
purchases moderately. Their aggregate portfolios declined by about
$>17,000,000* The Reserve Bank purchased a substantial amount of
bills during the week for System Account, principally from banks and
mostly bills of the shorter maturities. Philadelphia reports that
its acceptance market was practically unchanged. Offerings were a
little heavier with the demand dull, although dealers reported port
folios slightly lighter. Chicago reports that its bill market was
rather quiet although offerings to the Reserve Bank were heavy on ac
count of year-end settlement. Dallas reports that the bill market in
its district continued quiet during the past week with the demand
small and few offerings.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED '
Authority
Q • \b G ^
\
OPERATIONS FOR ACCOUNT T O T E D STATES TREASURY
Transactions consummated under Treasury authorization during the
current statement week were as follows:
Sale of $
600,000 - par value 3 l/2$ Treasury notes, due Dec. 15, 1932
account Alien Property Custodian
115,000 - par value 4 1/4$ Fourth Liberty Loan bonds due
Oct. 15, 1933-38, account German Special
Deposit Account
1,000,000 - par value 4 1/4$ Fourth Liberty Loan bonds due
Oct. 15, 1933-38, account Government
__________
Life Insurance Fund
$1,715,000 - Total Sales
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
Under authority of the Open Market Policy Conference of September 25,
1930, and to avoid undue stringency of money over the year-end, purchases were
made on December 30 and 31 of $32,925,000 aggregate amount of United States
Government securities of various issues, as follows:
December 30, 1930 - $28,275,000
December 31, 1930 4,650,000
Total
$32,925,000
These purchases temporarily increased the total amount of holdings in
the System Account to $435,225,000* The participations by Federal reserve banks
and the classification of issues at the close of the statement week ending
December 31, 1930, were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
$ 49,235,500
Boston
87,153,500
New York
41,297,000
Philadelphia
52,760,000
Cleveland
12,755,000
Richmond
5,146,500
Atlanta
62,675,500
Chicago
17,757,500
St. Louis
19,563,500
Minneapolis
31,608,500
Kansas City
21,332,500
Dallas
33,940,000
San Francisco
Totals
$435,225,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Feb. 16, 1931 - Treas. Bills $ 24,182,000
June 15, 1931 - 2 7/8$ C/I
83,631,000
June 15, 1931 - 1 3/4$
5,550,000
Sept, 15, 1931 - 2 3/8}o ?!
82,655,500
51,626,500
Dec. 15, 1931 - 1 7/8$
Mar. 15, 1931 - 3 1/2$ T/N
114,120,100
Series "A" and "B"
45,411,900
Dec, 15, 1932 - 3 1/2$
Oct, 15, 1938 - 4 1/4$ 4th L/L 28,048,000
T»
Tf
$435,225,000
Note: The Executive Committee of the Open Market Policy Conference has agreed to
selling to the market, as the market appeared to be in condition to absorb it
readily, the $32,000,000 securities purchased to take care of year-end demands.
Sales have been made to the market of $10,000,000 of these securities, leaving a
balance of about $22,000,000 to be disposed of.
/
Reproduced from the Unclassified I Declassified Holdings of the National Archives
“
r-
DECLASSIFIED '
Authority
*\
^
“” |
I
i
r-®*
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
________________ FROM DECEMBER 36 TO DECEMBER 51, 1930, INCLUSIVE__________________
GOVERNMENT SECURITIES - SYSTEM INTOTtvlENT ACCOUNT
Pu&cfiases
0 2,998,500
10,545,000
3.205.000
4,C52,000
1.646.000
0
0
1.964.500
987,500
2.274.500
1.654.000
3.618.000
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Total
New York
Atlanta
Minneapolis
San Francisco
Totals
$32,925,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Sales
Issue
Purchases
Issue
§1,599,500 Misc. GovTt Sec.
$ 7,431,700 Misc. Govft Sec.
M
»t
«
n
it
435,950
541,400
tt
t»
tt
tt
tt
It
891,700
947,350
t»
tt
n
7,500,000
0
02,927,150
$16,420,450
BANKERS ACCEPTANCES
(000 Omitted)
By Allot Matur
Holdings
Purchased ment from ities &
Dec. 24
New York
Own Mkt.
Sales
Boston
0 15,268
0
688 R 0 6,717
0 2,669
New York
34,337
33,725 **
10,156
0
63,226 A
C
6
C
0
Phila.
5,545
9,137
16,739
C
Cleve.
4,418
8,813
4,814
216 R
Richmond
5,534
4,708
1,514 "
11,678
Atlanta
6,202
12,246
25,032
13,984 "
Chi cago
2,452
4,589
7,356
St. Louis
0
1,955
2,842
902 "
5,794
Minn.
5,356
1,872
8,428
Kan. City
0
2,295
5,760
20 "
Dallas
6,011
7,991
8,251
419 "
22,992
San Fran.
065,226
048,261
0114,694
Totals
$162,454
Bills held over night by New York for distribution to
NOTE:
Holdi ngs
Dec. 51
0 20,004
57,906
Other Holdings
Close Dec . 51/50
Sales
Other
Contracts
Bills
& 2,648
0 2,665
29,095
36,965
5,490
6
0
5,598
22,555
e
1,511
9,425
0
1,757
14,018
0
4,822
2,488
45,060
1,295
9,495
0
828
7,585
0
1,079
11,892
c
1,079
7,496
0
4,869
25,671
2,483
059,098
061,550
0228,887
other F. R. Banks - - 54,509
Total - - - - |95,859
R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority
MA.TCTRITIES AMD BATES ON BILLS PORCHASZD WEEK E N D M G DECEMBER 31, 1930
(QQQ Qm i t t e d)
1-30 days
1 3/4fo
Boston
New York
Richmond
Atlanta
Chicago
Minneapolis
Dallas
San Francisco
Totals
#
31-60 days
1 3/4fo
#
26
64,771*
45
1,401*
4:,559
0
0
231
97
12,202
171
49
5,900
0
0
171
$71,033
#18,590
61-90 days
1 3/4$
#
565
19,585*
0
62
3,525
902
0
#24,656
Over 90-days
1 3/4-1 7/8$
# 0
393
0
2**
0
0
20
Total
#
688
96,951
216
1,514
13,984
902
20
__0_
4.19
#415
#114,694
*Purchased at 1 3/4 to 1 7/8$
**Purchased at 2 1/8$
***Purehased at 1 7/8 to 2%
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING DECEMBER 51, 1930
(000 Omitted)
(Excluding Sales Contracts)
Purchased
Sold
Matured
Totals
Government
Securities
#<±9,346
2,927
0
#46,419+
Bankers
Acceptances
Total
#114,694
#164,040
2,927
0
48,261
48,261
#112,852+
# 66,433+
36,554+(Net Change
36,554+(Net Change
________ 1-day holdover ________1-day holdover
& other bills
& other bills)„
#102,987+
#149,406+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES DECEMBER 31, 1930
(000 Omitted)
(Including Sales Contracts)
Gov't Securities
Bills Purchased
Totals
Within
16-30
15-days
days
# 43,403 1$ 0
219,272
68,062
31-60
days
#24,182
47,249
61-90
days
#126,133
28,129
91 days- Over 6
6 months months
Total
$107,530 #"428,219 #729',467
1,132
0
363,844
#262,675
#71,431
#154,262
#108,662 #428,219 #1,093,311
#68,062
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED '
Authority
December 2$, 1930.
~p a l -
tH i m r
Haoolpt is •olenoi»l©d/?ed of t q o t latterof
to Governor % eyar9 encl o s in g
a **porrt 0T open warfcefc operations for the period
tram Doomber 18 to Beaaaber M , 1930, inclusive*
D eam nber 2 7 t h v add res sod
Very truly
&* U« McClelland,
Assistant Secretary,
8 r« W# 5* B&ttescm*
.Jkesi&tant Deputy Goreraor,
■federal lieserva Bank,
He® lortc, M* I*
i
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED '
Authority
Q•\
j
tf*-****'
PJifiSOiJAL
December 27, 1950
Dear Governor Meyer:
7/e are enclosing, for your files, a repoi^t of open
market operations for the period from December 18, 1930 to
December 24, 1930 inclusive, together v/ith data received from
Federal reserve banks.
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
Reproduced from the Unc lassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority
n.
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 27, 1950
Mr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Goldenweiser•
Enclosed is a report of open market operations for
the period from December 18, 1930 to December 24, 1930 inclu
sive, together with data received^rom Federal reserve banks.
W. B. Matteson
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
”
,
DECLASSIFIED'
Authority 1 ^ >0 • \ b G ^
H
\
j
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 27, 1930
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from December 18, 1930 to December 24, 1930 inclu
sive, together v/ith 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
~
r
DECLASSIFIED *
Authority
0 •
\bG
^ |
|
confidential
R jiFORT OF OPEN
.*KET OPERATIONS FOR WEEK ENDED . J3MBER 24, 1930
Holdings of Earning Assets of Federal Reserve Banks from December 24, 1929 to Date
(000 Omitted)
-1929Dec. 24
Dec. 31
-19 3C '»
Jan. 29
Feb. 26
Mar* 2o
Apr. 30
May
28
June 25
July 30
Aug. 27
Sept. 24
Oct* 29
Nov. 26
Dea* 17
Dec. 24
TOTAL
EARNING
ASSETS
$1*612,537
1,547,517
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
'| 9,515
$475,528
23*295
487,292
1,154,379 .
476,466
477 4610
1*138,532
1,001,090
>526 *284
982,225
527,124
958,776
529,450
916,038
; 576,560
576,323
911*554 ^
601*913
"967,034
601,656
973,483
601,438
975,021
1,011,940
595*634
692,434*
1,282,797*
639,645
1,356,395 1
^Includes $109,000,000 special one-day
BANKERS ACCEPTANCES
Outright
Sales
Purchases
Contracts
$134,266
$220,677
155,235
236,974
BILLS
DISCOUNTED
'$762*781
632,421
72*795
406,941
185*677
70
66*785
342*781
5,145
232,521
206*829
112,710
2*715
143,772
47,718
233_* 452
2*385
161,846
247,046
320
130,066
45*494
231*505
94,735
7,578
410
2,797
127,965
197,101
45
193*275
4,137
159,137
0
150
192,161
5,583
167,162
161,906
201,603
0
3,752
6,176
169,930
0
233,852
223*911
27,680
(5
331*321
221,759
38,078
448,349
2*031
Treasury certificate of indebtedness
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
_____________ PORING WEEK ENDED DECEMBER 24, 1950________________
(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
Dec# 24
Change
$ 46,926
$ 0
56,200+
230*551
50,999
158,893
1+
112,261
87,772
82/603
0
24,418
0
26,259
20+
29,337
0
0
29,632
39,964
0
#639,645
$56#211+
BANKERS ACCEPTANCES
Balance
Net
Change
Dec. 24
$1*357$ 15*268
1,061+
34,337
0
6
3,22916,739
2*1358 >813
11*678
1,440“25^032
1*810+
1*1577,356
5,794
3785358,428
6*011
1,04422,992
2*24259,305
8,594+
$221,759
^2,152-
BILLS DISCOUNTED
Balance
Net
Change
Dec. 24
# 24*869 § 10 *320+
63*746+
141,486
40*759
16,535+
47*556
5,331+
38,459
6,288+
28,814
1338>530+
31*674
85314,352
301+
4,162
15*380
660+
6*688
102+
6,201+
54,150
$448,349 §117,028+
oo
s
ON CHANGES WEEK ENDED DECEMBER 24, 1930
Total earning assets of the System (exclusive of the $109,000,000 special
one-day certificate of indebtedness issued by the Treasury to cover the overdraft
on December 17* 1930) showed an increase of $182,598,000 for the current statement
week# The changes by classification consisted of increases of $56,211,000 and
§117,028,000 respectively, in outright purchases of government securities and bills
discounted and $12*429j|000 in investments held under sales contracts* and a decrease
of $2*152,000 in bankers acceptances. The change in sales contracts consisted of
an increase Of $2,031,000 in government securities and $10,398,000 in bankers
acceptances#
The increase of ^56,200,000 in government securities at the Federal Reserve
Bank of New York represents replacement purchases, delivery of which was deferred
until December 18, as described in detail in last week’s report#
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Money
Market
Following the termination of the Treasury overdraft at the
Reserve bank, money conditions in New York became slightly firmer as
the supply of funds was reduced by outgoing transfers to other centers,
and by currency withdrawals from the Reserve bank, partly for Christmas
needs and also partly to fortify the City banks1 cash position after
the closing of the Chelsea Bank and Trust Company.
The closing of
this bank, hoT/ever, created much less disturbance and a smaller currency
demand than did the closing of the Bank of United States. Throughout
the past week, call money has been quoted at 2 per cent on the Exchange,
but the rate in the outside market which had been 1 1/4 - 1 1/2 per
cent on Friday, the 19th, moved up to 1 1/2 - 2 per cent on the follow
ing Monday, and on the two days preceding Christmas offerings in the
outside market were made no lower than the Exchange quotation.
On
Friday afternoon, the 26th, the rate for new call loans went to 2 1/2
per cent.
The New York City banks opened the past week with their
reserve balances considerably in excess of requirements, but as a result
of the losses during the period, this surplus was converted into a
moderate shortage which prevailed on Wednesday, the 24tht- and consequent
ly on Christmas, the first two days of the current reserve period. The
losses of money market funds during the week in transfers to other
districts and increased currency requirements were amplified by Treasury
collections and only slightly offset by a net gain of gold through
import and earmarking transactions.
The principal offsets to the
large loss in commercial and agency transactions were replacanent secur
ity purchases for the New York Bank's investment account, most of which
were made on December 18, and an increase of $51,000,000 in New York
City bank borrowings which occurred on December 24,
On that day, the
indebtedness of the City banks reached $88,000,000.
On Friday, the
26th, the banks took the expedient of selling a large amount of bills
to the Reserve bank in order to correct their reserve position.
Bid and asked quotations for 30 and 90 day loans turned
slightly easier during the week.
As to actual trading, however, the
time money market was practically at a standstill.
Seasonal dullness characterized the commercial paper market
on both the supply and demand sides.
Hates for prime names were un
changed at 2 3/4 - 3 per cent.
Government
Security
Market
The undertone in the market for United States Government
securities was somewhat easier during most of the current statement
week.
Offerings were in excess of the demand, especially for the long
term issues, which were offered in fairly large volume, as a result of
which prices declined fractionally.
However, on the last day of the
statement week, following the announcement of the reduction in the re
discount rate at the Federal Reserve Bank of New York, there was a much
better undertone in the government security market and prices of the
short-term issues recorded small fractional gains, while prices of the
long-term issues were film.
At the close of the current statement week
the average yield on the short-term government securities, at dealersf
offering prices, was about 1*53$ as compared with 1,62% last week and
the average selling price for the Liberty Loan and Treasury bonds was
104.92 as compared with 105,01 last week and the high for the year of
105.38,
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED '
Authority
2
1
2
1
3
3
D •
1
Dealars’Offering Prices at the Close of the Current Statement Week
and Not Changes from ifao Close of the Previous Statement Week
Approx.
Net
Yield
Change
Price
Issue
1.37$
75752
100 22/32
7/8$ Cert, of Ind. due June 15, 1931
♦
t
♦
♦
r
t
<
*
ji.me
1.47$
+2/32
100 4/32
15, 1931
3/4$
1.57$
100 18/32
"
♦»
" Sept. 15, 1931
3/8$ "
l.f
100 2/32
«
«
" Dec. 15, 1931
7/8$ »*
r Notes Series MA W and wBtf
1/2$ Treasury,’
1.39$
100 14/32
-1/32
called for payment Mar. 15, 1231
1.78$
101 20/32
+3/32
1/2$ Treasury Wotes due Dec, 15, 1932
1 1/2$ - 1 1/4$ discount
Treasury Bills " Feb. 16, 1931
-Closing Sale Prices on New York Stock Exchange at the Close
of the Current Statement Week and Net Changes from
Close of the Previous Statement Yfeek___________
^ Issue
1st 3 l/2s
1st 4 l/4s
4th 4 l/4s
Price
101 28/32
102 30/32
103 19/32
Net
Change
+2/32 "
+1/32
Issue
Treas. 4s
tt
4 1/4s
tt
3 3/4s
n
3 3/8s
tt
3 3/8s
1944-54
1947-52
1946-56
1943-47
1940-43
Price
108 4/32
112 3/32
106 4/32
102 13/32
102 7/32
Net
Change
-6/32
-7/32
-10/32
-7/32
+1/32
Bankers
Acceptances
Dealers’offerings of unindorsed bankers acceptances con
tinued at the following rates during the current statement week:
1 7 / 8 per cent for 30s, 60s and 90s; 2 per cent for 120s, and 2 1/8
per cent for 180-day bills*
Reports
week
ending
Dec. 24
Boston reports that the acceptors had more bills to offer
during the past period than for several weeks past. The local demand
also increased, due to continued easy money. Dealers continued to
maintain small portfolios as heretofore and forwarded excess supply
of bills to offices in other cities. In New York the bill market was
slightly less active this week. The first three days of the period
dealers f sales exceeded their purchases and aggregate portfolios were
reduced to % 7 ,000,000, but the last two days was the reverse with
dealers’purchases exceeding sales considerably and aggregate port
folios at the end of the week had increased to $69,000,000,. which was
about $8,000,000 more than they held at the end of last week.
Philadelphia reports that its acceptance market was dull and inactive.
The supply of bills was small, with practically no demand. Chicago
reports that there was an increase in both the supply and the demand
for bills in its district during the past week. Dallas reports that
its bill market continued quiet, with the demand small. There were
no offerings to the Federal reserve bank.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
^ >Q
|
hG d 1 j
Authority
•\
I
________ ______________ |
r
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Purchase of $
69,600 - Fourth 4 1/4% Liberty Loan bonds, account General
Railroad Contingent Fund
Sales of
50,000 - Fourth 4 1/4% Liberty Loan bonds account German
Special Deposit Account
1.000.000 - Fourth 4 1/4% Liberty Loan bonds, account Govern
ment Life Insurance Fund
750.000 - 3 3/8% Treasury bonds of 1943-47, account
Commissioner of Indian Affairs
300.000 - Fourth 4 1/4% Liberty Loan bonds, account
Commissioner of Indian Affairs
375.000 - 4% Treasury bonds of 1944-54, account Commissioner
of Indian Affairs
100.000 - 3 3/4% Treasury bonds of 1946-56, account
__________
Commissioner of Indian Affairs
§2,575,000 - Total Sales
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week exchanges were effected advantageously
in the holdings in the System Account of:
$14,000,000 - 3 1/2%' Treasury notes called for payment March 15, 1931
10.500.000 - Treasury bills due February 16, 1931
1.000.000 - 2 7/8% certificates of indebtedness due June 15, 1931
a total of $25,500,000 for a like amount of United States Government securities
as follows:
$1 0 , 00 0 ,0 0 0 - 3 1/2% Treasury notes called for payment March 15, 1931
1 , 00 0 ,000 - 2 3/8% certificates of indebtedness due Sept. 15, 1931
14.500.000 - 1 7/8% certificates of indebtedness due Dec. 15, 1931
#25,500,000
With reference to the ^10,000,000 3 1/2% Treasury Notes called for pay
ment March 15, 1931, referred to in the above statement, these notes were acquired
temporarily as an accommodation to the market and were subsequently disposed of.
These transactions did not affect the amount of total holdings in the
System Account which remained at the close of business Wednesday, December 24, 1930,
at 0402,300,000* The participations by Federal reserve banks and the classification
of issues at the close of the statement week were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
RECAPITULATION OF HOLDINGS BY MATURITIES
Bo st on
Feb. 16, 1931 - Treas. Bills $ 23,457,000
$ 46,237,000
New York
June IB, 1931 - 2 7/8% C/I
83,631,000
76,608,500
500,000
38,092,000
June 15, 1931 - 1 3/4% w
Philadelphia
80,655,500
48,728,000
Cleveland
Sept,,15, 1931 - 2 3/8 % w
Richmond
11,109,000
43,926,500
Dec, 15, 1931 - 1 7/8% n
Atlanta
Mar. 15, 1931 - 3 1/2% T/N
5,146,500
99,620,100
Chicago
62,675,500
Serie s "AM and
45,411,900
St. Louis
15,793,000
Dec. 15, 1932 - 3 1/2% T/N
Minneapolis
18,576,000
Oct. 15, 1938'- 4 1/4% 4th L/L 25*098,000
Kansas City
29,334,000
Dallas
19,678,500
San Francisco
30,323,000
Totals
$402,300,000
$402,300,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED '
Authority
Q ♦\
Oi j
5
ITEMIZED STATEMENT OP TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING- THE INVESTMENT ACCOUNT OF AIL FEDERAL RESERVE BANKS
_________________ FROM DECEMBER 18 TO DECEMBER 24, 1930, INCLUSIVE___________________
GOVERNMENT SECURITIES - SYSTEM BTVESTl'IIMT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Purchases
$ 2,931,500
4,856,500
2,415,000
3,088,000
704,000
326,500
3,973,000
1,000,500
1,177,500
1,859,000
1,247,000
1,921,500
.Sales
$ 2,931,500
4,856,500
2,415,000
3,088,000
704,000
326,500
3,973,000
1,000,500
1,177,500
1,859,000
1,247,000
1,921,500
Totals
$25,500,000
$25,500,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
New York
Atlanta
Minneapolis
Totals
Purchases
Issue
$59,200,000* Misc. Gov't Sec.
498,900
723,800
§60,422,700
Sales
Issue
$3,000,00C Misc. Govft Sec,
507,750
" "
"
— 703,600
" "
"
$4,211,350
* Of this amount $56,000,000 represents replacement purchases delivery of which
was deferred until December 18 as described in detail in last week*s report.
BANKERS ACCEPTANCES
(000 Omitted)
By Allot Matur
Holdings Purchased ment from ities & Holdings
Sales
Dec. 17
Dec. 24
Own Mkt. New York
$ 2,369 $ 15,268
$ 16,625 $
855 R
Boston
$ 157
34,337
4,981 t»
3,920
New York
33,276
0
1,560 A
6
0
0
0
6
Philadelphia
3,443
16,739
214
19,968
0
Cleveland
8,813
2,262
127
Richmond
10,948
0
11,678
127
3,313
13,118
1,746 R
Atlanta
1,741
25,032
316
23,222
3,235 tt
Chicago
1,272
7,556
115
8,513
0
St, Louis
442
5,794
64
Minneapolis
0
6,172
8,428
764
129
9,063
0
Kansas City
6,011
107
1,151
0
7,055
Dallas
tt
3,990
22,992
204
25,234
1,544
San Francisco
$24,667 if162,454
$1,560
Totals
$173,200 $13,921
Bills held over night by New York for distribution to other F. R.
Total - - - NOTE:'
R. indicates Retained
Other Holdings
Close Dec. 24,1930
Sales
Other
Contracts
Bills
$ 1,727
$ 2,662
27,572
29,749
3,489
3,597
1,511
1,752
4,821
1,295
C
827
0
1,079
0
1,079
0
2,482
4,860
$52,166
<*>38,078
7,139
Banks - $ 59,305
0
0
0
0
1,742
and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED '
X^\ 0
Authority
-
1
/
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING DECEMBER 24, 1930
(000 Omitted)
1-30 days
31-60 days
1 5/4 - 1 7/8jo 1 7/8$
Boston
New York
Atlanta
Chicago
San Francisco
$
128
5,460
405
1,539
828*
$
$8,360
Totals
390
767
756
896
638
$3,447
61-90 days Over 90-days
1 7 / 8 - 8$ 2 1 / 8 - 2 3/8%
$
337**
314
322
800
78
0
0
263
0
0
1
855
6 ,541
1 ,746
3 ,235
1 ,544
$13 ,921
$263
$1,851
Total
*Purchased at 1 7/8 to 2%
**Purchased at 1 3/4 to Z-%
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING DECEMBER 24, 1930
j-QQQ omitted)
”
.Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
|.85,922
29,711
Totals
#56,211+
0
Bankers
Acceptances
Total
$13,9£1
0
24,667
$10,7 46**
8,594+ (Net change
_______ 1-day holdover
and other bills)
$ 2,152-
$99,843
29,711
24,667
$45,465+
8,594+ (Net Change
_______ 1-day holdover
and other bills)
§54,059+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES DECEMBER 24, 1930
(000 Omitted)
(Including Sales Contracts)
Within
15-days
16-30
days
Gov’
t Securities $ 2,031
Bills Purchased
149,905
0
60,720
To tals
$151,936
$60,720
31-60
days
61-90
days
91 days5 months
Over 6
months
Total
$23,457 $111,668 $102,492 £402,028 $641,676
40,712
8,218
28B
0
259,837
,169 $119,886 $102,774 $402,028 $901,513
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Dt#mab*r 20* 1050
Dear Mr. Lfettesoas
I
aoknowled^e receipt of and shall bring
to the f*t entlon of the raeiaban of the Board your
latter of ©oembarl&th, *dd*»a«*d to Governor
Meyer,’encloeing report, of open market operation*
for the period from December 11 # 19S0 to Deoember
17, 1950 incluaive.
7eiy truly youra*
E* M* McClelland,
Aaalstant Secretary
Hr# W* B# Matteaon,
Aeaist&nt Deputy Governor#
Federal Reaenre Bank,
lew York, 5. Y.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority ' E - . i M h s a i
F e d e ra l R e s e rv e B a n k
of
CONFIDENTIAL
N e w Yo r k
December 19, 1930
Mr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C*
Dear Mr. Goldenweiser:
Enclosed is a report of open market operations for
the period from December 11, 1930 to December 17, 1930 inclu-
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED'
Authority
“
j
i
F e d e ra l R e s e rv e B a n k
or N e w Yo r k
P ii: H o Q N A L
December 19, 1930
Dear Governor Meyer:
We are enclosing, for your files, a report of open
market operations for the period from December 11, 1930 to
December 17, 1950 inclusive, together with data received from
Federal reserve banks.
it. B. Mgtteson
Assistant. Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
Reproduced from the Unclassified/Declassified Holdings of the National Archives
DECLASSIFIED'
.
Authority
FOR SPECIAL CIRCUtATIOff--- 7/PILY, IHITIAL A DD RSTUFl' T O - - ^ R K T A R f S Q t f l i f y
Mr* Eamlia
Mr, J am&ft y
Hr. Miller
'*
Fe d e r a l R e s e r v e B a n k
of
lP»
Ne w Yo r k
COHFIDENTIAL
December 19, 1930
Dear Governor Meyer:
Enclosed is a report of open market operations for
;
the period from December 11, 1930 to December 17, 1930 inclu
sive, 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'
T
Authority t
}0 *
..
|
I
CONFIGSMTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED DECEMBER 17, 1930
Holdings of Earning Assets of Federal Reserve Banks from December 18, 1929 to Date
(000 Omitted)
TOTAL
EARNING
ASSETS
$1,589,466*
1,547,517
GOVERNMENT SECURITIES
Sales
Outri^it
Purchases
Contracts
§24,275
$508,990*
25,295
487,292
BANKERS ACCEPTANCES
Outright
Sales
Purchases Contracts
$ 66,309
$243,102
155,235
236,974
BILLS
-1929
DISCOUKTE
$737,038
Dec. 18
632,421
Etec. 31
-19 3C
185,67 7
72,795
406,941
476,466
1,154,379
70
Jan. 29
Feb. 26
1,138,522
342,781
477,610
5,145
66,785
232,521
Mar. 26
143,772
206,829
1,001,090
2,715
112,710
526,284
Apr. 30
982,225
527,124
161,845
47,718
2,585
233,452
May
28
150,066
45,494
247,046
958,776
320
529,450
June 25
916,038
94,735
7,578
231,505
576,560
410
2,797
127,965
197,101
July 30
911,554
576,525
45
4,157
159,157
193,275
Au^. 27
967,054
601,915
0
5,585
167,162
Sept. 24
973,485
192,161
601,656
150
Oct. 29
161,906
3,752
201,603
601,438
0
975,021
Nov. 26
6,176
233,852
595,654
0
169,930
1,011,940
Dec. 10
257,097
223,407
15,000
20,29G
604,003
1,117,905
Dec. 17
551,321
1,282,797**
223,911
27,68G
0
692,434**
^Includes $69,000,000 special one-day Treasury certificate of indebtedness
**Includes $109,000,000
"
" "
"
«
n
«
CHANGES m EAHfING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTR/CTS)
_______________DURING WEEK ENDED DECEMBER 17, 1930________________
(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
Dec. 17
Change
§
2+
$ 46,926
16,148174,351
2,09851,000
2,24758,892
5,29312,262
56+
7,780
82,603
4+
5,267+
24,418
26,239
11929,357
2+
3+
29,662
59,964
2+
BANKERS ACCEPTANCES
Balance
Net
D3C, 17
Change
$
81+
$ 16,625
2,63153,276
6+
6
19,968
361+
10,948
36513,118
265+
23,222
3,380+
8,513
630+
436+
6,172
9,063
823+
7,055
813+
25,234
102+
50,711
$583,434
$20,569-
$225,911
BILLS DISCOUNTED
Balance
Net
Dec. 17 Change
$ 14,549 $ 1,628+
16,965+
77,740
24,224
2,413+
10,136+
42,225
52,171
3,947+
28,947
3,468734+
23,144
1,954+
15,205
3,861
191,26014,720
6,586
76141,955+
47,949
3,397$
504+
$331,321
$74,224+
COMMENT ON CHANGES WEEK ENDED DECEMBER 17, 1930
Total earning assets of the System (exclusive of the $109,000,000 special
one-day certificate of indebtedness issued by the Treasury to cover the overdraft)
showed an increase of $55*892,000 for the current statement week.
The changes by
classification consisted of increases of $504,000 and $74,224,000 respectively, in
outright purchases of bankers acceptances and bills discounted, and decreases of
$20,569,000 and $5,610,000 respectively, in outright purchases of government secur
ities and investments held under sales contracts.
The change in the latter item
consisted of an increase of $7,390,000 in bankers acceptances and a decrease of
$13,000,000 in government securities.
fr
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED*
Authority
0 •
1
2
Money
Market
The money market during the past week was subject to two princi
pal influences. Heavy currency withdrawals from the Reserve Bank, after
the closing of the Bank of United States, were accompanied by large
temporary borrowings from the Reserve Bank and by the development of a
firmer money situation, which continued for several days. Following this,
the quarterly Treasury operations and the beginning of a return flow of
currency to the Reserve Bank were easing factors in the situation. As
a result of these influences, call money on the Stock Exchange advanced
to 2 1/2 per cent on Friday, the 12th, foilowing a situation in the pre
vious afternoon, when 2 1/2 per cent had been paid for some loans
arranged in the outside market. The 2 1/2 per cent rate, which had not
been quoted on the -Exchange since September, continued despite Treasury
operations until Wednesday, the 17th, when the Exchange new loan rate
dropped to 2 per cent and outside money became available at 1 1/2 per
cent. On the following day, the renewal rate returned to 2 per cent, with
1 1 / 2 per cent again quoted in the outside market.
The past week has been one of large movements of funds in the
New York money market. The net withdrawal of nearly $160,000,000 of
currency from the Reserve Bank during the 3 day period of December 11 to
13 was due to the substantial cash demands being made on several New York
City banks and their numerous branches, as well as to the desire of other
banks to fortify their cash position in the event that unusual withdrawals
of currency should be made from them. Notwithstanding sizable currency
deposits at the Reserve Bank on the succeeding three days, reflecting the
return to a more normal banking situation in New York, there was a net
loss to the reserves of the City banks of close to $100,000,000 for the
week, There also was a substantial loss of money market funds through
outgoing transfers to other districts (chiefly on the 16th and 17th to
replace income tax collections in other centers). These losses of funds.,
were offset by gains through Treasury operations, Federal Reserve bill
and security transactions, and member bank borrowings.
On December 15, Treasury redemptions of maturing securities and
interest payments exceeded by a considerable amount income tax collections
and foreign debt payments effected on that day, resulting in a large gain
of funds to the market, and consequently it was expedient to sell to New
York City banks participations for $80,000,000 in the Treasury special
one-day certificate of indebtedness amounting to $215,000,000, In the
two succeeding days further income tax collections in excess of Treasury
bill maturities allowed the Treasury to reduce its special certificate to
$109,000,000, and the participation of City banks in the overdraft was
terminated on the 17th, after having been reduced to $50,000,000 on the
16th. Accompanying further losses to the market on the 18th through
Treasury operations and outflow of funds to other centers, security pur
chases were made to replace securities which had matured or been sold from
the New York Bank’s investment account during the preceding three days*
The deferring of these replacement purchases to a later date was arranged
so as not to aggravate the condition of ample supply of iunds during the
period of December 15 - 17.
Time money quotations were advanced during the course of the
week to 2 1/4 per cent|,&2 1/2 per cent offered for 30 and 60 day loans;
2 1/2 - 2 3/4 per cent for 3 and 4 months; and 2 1 / 2 - 3 per cent for
5 and 6 months. These levels represent an increase of about 1/4 to
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED *
Authority ^ >Q • \
hG
^ 1
|
jI
5
1/2 per cent. There was little activity evident in this division of
the money market. Ninety day money loaned in limited amounts at 2 1/2
per cent, up 1/4 per cent from previous transaction.
Paper of high grade commercial concerns continued to command
the 2 5/4 per cent rate in the open market, but the average piece of
prime paper more generally was priced at 3 per cent. The market during
the past week was rather inactive, due principally to the inability of
dealers to secure new drawings - in part as a result of seasonal in
fluences.
Gov eminent
S ecu rity
market
-
On Thursday, December 11, the market for long-term issues of
government bonds, which had been weak during the few preceding days,'
declined to lower levels accentuated somewhat by the closing of a large
New York City bank on that day.
During tho next few days, however,
there was a complete reversal of conditions in the market for these
bonds with the demand brisk and prices advancing in most cases to levels
above those existing at the close of the last statement w^ek. The de
mand for the short-term government issues continued good through the
week and prices advanced slightly. Th^ two new Treasury issues of
1 3/4% and 1 7/8% certificates of indebtedness, were offered by dealers
at a small premium while the 3 1/2/ Series nC,f Treasury notes advanced
18/32 in price due to these notes not being called on December 15 for
payment on June 15, 1931, thereby making the earliest callable date
December 15, 1931. At the close of the current statement week the
average yield on the shout-term governments was about 1.62% as compared
with 1.51/ last week (the increase in yield being primarily due to the
change in maturity dates) and the average selling price for the Liberty
Loan and Treasury bonds was 105,01 as compared with 104.91 last week
and the high level for the year of 105.38.
2
1
2
1
3
3
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net
Approx.
Price
Issue
Change
Yield
7/8/ Cert, of Ind. due June 15, 1931
1.52/
100 21/32
3/4/
1.62/
"
"
"
" June 15, 1931
100 2/32
+ 2/32
1.60'/o
3/8#
"
"
"
" Sept. 15, 1931
100 18/32
+ 1/32
7/8/
1.81/
"
” "
" Dec. 15, 1931
100 2/32
+ 2/32
1/ 2?jc Treasury Notes Series "A”and "B”
1.50/
called for payment Mar. 15, 1931
100 15/32
- 1/32
101 17/32
1.92/
1/2/ Treasury Notes due Dec. 15, 1932
+18/32
1 5/8/ - 1 3/8% discount
Treasury Bills " Feb. 16, 1931
Closing Sale Prices on 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
Issue
Price
Change
Price
Change
1944-54 108 10/32 + 3/32
1st 3 l/2s 101 26/32 - - - Treas .4s
1st 4 l/4s 102 29/32 + 2/32
4 1/ 4s 1947-52 112 10/32 - 3/32
"
»t 3 3/4s 1946-56 106 14/32 + 8/32
4th 4 1/4s 103 19/32 _ _ _
»t 3 3/8s 1943-47 102 20/32 + 8/32
tr 3 3/8s 1940-43 102 6/32 +11/32
Reproduced from the Unclassified I Declassified Holdings of the National Archives
Bankers
Acceptances
Dealers unendorsed bankers acceptances continued at
the following rates during the current statement week: 1 7 / 8 per
cent for 30s, 60s and 90s; 2 per cent for ISO-day bills, and
2 1/8 per cent for 180-day bills.
Reports
week
ending
Dec, 17
Boston reports that although the supply of bills was
small during the past period, it was much greater than the demand
and dealers were again obliged to forward most of their bills to
their offices in other cities.
were small.
Offerings to the reserve bank
In New York the bill market was more active this week
than it has been for the past several weeks.
Firmer money condi
tions resulted in a substantial increase in the supply of bills.
The demand was also good and came principally from local banks who
were buying for their own accounts and for the accounts of foreign
correspondents.
The demand, however, was exceeded by the supply
and dealers* aggregate portfolios increased by about $23,000,000,
the increase being bills of maturities of less than 60 days,
Philadelphia reports that bills were offered a little more freely
during the past week, consisting mostly of short maturities.
demand was very small and dealers* portfolios increased.
The
Chicago
reports that there was an increase in both the supply and demand
for bills in its district during the past week, and Dallas reports
that the bill market in its district v^as extremely dull during the
past week, with practically no demand and no offerings to the
reserve bank.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED'
r
Authority
^ >0
• \
b G ^
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|
j
(h
5
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOV E R M O N T SECURITIES
Transactions effected in the System Acc ount during the current state
ment week consisted of
Redemption on Lee. 15 of $ 7,068,500 - 3 1/4% certificates due Dec, 15, 1930
”
" Dec. 16 "
11,000,000 - Treasury hills
" Dec, 16, 1930
"
” Dec- 17 "
12,500,000 "
”
" Dec. 17, 1930
Total redemptions of
$30,568,500 which TAere replaced on the respective
maturity dates by purchase of a like amount of 2 3/8% certificates of indebted
ness due Sept. 15, 1931, from the holdings in the Investment Account of the
Federal Reserve Bank of New York.
Exchange on
Dec. 15 of
$18,176,500 - 3 1/4$ certificates due Dec. 15, 1930,
against allotment by the Treasury
of a like amount of new Treasury
1 7/8% certificates due Dec. 15,
1931, on exchange subscription
entered for $25,245,000.
Exchange in the $ 4,750,000 - Treasury bills due Feb. 16, 1931
market of
11,500,000 - 3 1/2% Treasury notes called for payment
March 15, 1931
2.000.000 - 3 1/2% Treasury notes due Dec. 15, 1932
A total of
$18,250,000 for a like amount of United States Government
securities as follows:
$
500,000
1,500,000
11,250,000
5.000.000
-
1
2
1
4
3/4% certificates due June 15, 1931
3/8%
,f
" Sept. 15, 1931
7/8%
”
" Dec. 15, 1931
1/4$ Fourth Liberty Loan bonds
$18,250,000 - total
In order to provide a partial offset to the easing effect in the money
market caused by Treasury tax period operations, purchases were made for tire System
Account (in replacement of maturities on December 15, 16 and 17) from the holdings
in the Investment Account of the Federal Reserve Bank of New York, as shown above,
and delivery was deferred until after December 17 of purchases made in the market
for the Investment Account of the Federal Reserve Bank of New York in replacement
of maturities on December 15, 16 and 17, sales to the System Account and sales to
the market on an exchange basis. The aggregate amount of these deferred deliveries
was $57,200,000 and, in addition, participations in the Treasury special one-day
certificate issued to the Federal Reserve Bank of New York to cover the overdraft
(which amounted to $215,000,000 on December 15 and $118,000,000 on December 16)
were sold to New
City banks to an amount of $80,000,000 on December 15 and
$50,000,000 on December 16, all of which had the desired effect.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
~
f
DECLASSIFIED'
Authority ^ >Q •
\ h*-? 0
j
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ft
6
On December 11, the Federal Reserve Bank of St. Louis repurchased
$5,000,000 of its participation of government securities in the System Account,
representing the balance of the $10,000,000 of which it was temporarily relieved on
November 17, 1930.
On December 12, the Federal Reserve Bank of Richmond, in order to increase
its gold reserve to care for emergencies, asked to be relieved temporarily of
$5,000,000 of its participation in the System Account.
These securities were ac
cordingly taken over immediatoly into the participation of the Federal Reserve Bank
of New York and apportioned on Monday, December 15, to the other Federal reserve
banks which-expressed a willingness to participate.
The aforementioned transactions in the System Account did not affect the
amount of total holdings in the Account ?/hich remained at the close of business
Wednesday, December 17, 1930, at 0402,300,000.
The participation by Federal reserve banks and the classification of issues at the close of the statement week
were as follows:
PARTICIPATION BY FEDERAL RESERVE RANKS
Boston
N t .7 York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
$ 46,237,000
76,608,500
38,092,000
48,728,000
11,109,000
5,146,500
62,675,500
15,793,000
18,576,000
29,334,000
19,678,500
30,322,000
$402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Feb. 16, 1931 June 15, 1931 June 15, 1931 Sept. 15, 1931 Dec. 15, 1931 Mar. 15, 1931 Series "A" and
Dec. 1^ 1932 Oct. Xo , 1938 -
Treasury Bills $ 33,957,000
2 7/8% C/I
84,631,000
1 3/4% tt
500,000
79,655,500
2 3/8% tt
29,426,500
1 7/8% if
3 1/2% t A t
103,620,100
"B"
3 1/2% n
45,411,900
4 1/4% 4th L/L
25,098,000
$402,300,000
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week (exclusive of Treasury financing operations) were as follows:
Sale of $
900,000 - 3 1/2% Treasury notes due Dec. 15, 1932, account
Alien Property Custodian
2,000,000 - 4 1/4% Fourth Liberty Loan bonds, account
__________
Government Life Insurance Fund
$2,900,000 - Total Sales
OPERATIONS IN INVESTTdENT ACCOUNT OF FEDERAL RESERVE BANK OF NEW YORK
In the emergency situation of last week in order to supply funds to one of
the large New York City institutions, which had heavy withdrawals due to the condi
tions which were brought about by the closing of the Bank of United States, the
Federal Reserve Bank of New York purchased last v/eek for its own account $40,000,000
par value of the government securities of this bank.
The proceeds of this purchase
warsusod tyfte institution to meet currency withdrawals without excessive borrowing fran
the Reserve bank.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
~
i"
DECLASSIFIED'
Authority 1^-) Q •
“ 1
\bG 0 | j
ITEMIZED STATEMENT OF ’
TRANSACTIONS IN GOVERMIENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
__________________FROM DECEMBER 11 TO DECEMBER 17, 1950, INCLUSIVE___________________
GOVERNMENT SECURITIES - SYSTEM IITESTlTSNT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
$ 8,090,000
17,745,500
6,774,500
8,644,000
1,899,500
856,500
11,188,500
7,894,500
5,259,500
5,191,000
5,499,500
5,556,000
| 8,088,000
17,756,000
6,775,000
8,640 ,500
7,195,000
856,500
11,184,500
2,627,500
5,258,500
5,189,000
5,497,000
5,553,500
Net Increase
$
2,000
7,500
1,500
5,500
0
0
4,000
5,267,000
1,000
2,000
2,500
2,500
Net Decrease
$
0
0
0
0
5,295,500
0
0
c
0
0
0
0
#80,577,000
$80,577,000
$5,295,500
$5,295,500
OTHER TRANSACTIONS IN GOVEKNZC5NT SECURITIES
(Excluding Special 1-day C/l)
Purchases
Issue
t Sec
$69,975,000 Misc. Gov’
New York
1,400,000 TD-1951 C/I
0
t Sec •
445,500 Misc. Gov’
tt
tt
1,061,800 n
Philadelphia
Clev el and
Atlanta
Minneapolis
Totals
$72,880,500
Maturities
& Sales
Issue
$57,918,500 Misc. Gov’
t Sec.
28,210,000 Redeemed
tt
5,500,000
t!
2,250,000
t Sec.
589,100 Misc. Gov’
t» tt
1,181,550 tt
$95,449,150
BANKERS ACCEP ■TANCES
(000 Omitted)
Holdings
Dec. 10
$ 16,544
55,907
By Allot
ment from
New York
v 2,559
0
Other Holdings
Close Dec . 17/50
Sales
Other
Contracts Bills
$ 1,818 $ 2,662
18,086
25,485
Matur
ities &
Sales
$ 2,581
15,145
Purchased
Holdings
Own Mkt.
Dec. 17
Boston
$
105 R
$ 16,625
New York
10,512 i*
55,276
25,585 A
Phila.
0
6 R
0
C
0
5,489
6
19,607
5,706
5,597
Cleve.
0
5,545
19,968
0
Richmond
2,018
2,585
10,948
0
1,511
11,515
0
Atlanta
2,128
12,855
649 tt
2,512
15,118
1,778
0
tt
4,821
5,128
25,222
2,899
2,595
1,151
19,842
Chicago
1,909
St. Louis
7,885
0
1,279
8,515
0
1,295
728
827
1,164
6,172
Minn,
5,756
0
0
Kan. City
2,158
1,555
9,065
0
8,240
0
1,C79
1,558
5
725
7,055
1,079
Dallas
6,242
0
5,176
2,482
1,146 tt
25,254
San Fran.
5,075
4,119
25,152
$27,680 $50,105
$25,585
$55,049
$175,200
$169,299
Totals
$58,950
608
Bills held over night by Nev; York for distribution to other Fed. Res. Bks. •
NOTE} fc. indicates
Total -
-$50,711
Retained and A. indicates Allotted in the above statement.
eproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED '
Authority
0 -
|
8
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING DECEMBER 17, 1950.
(000 Omitted)
1-50 days
1 7/8%
Boston
Nww York
Philadelphia
Atlanta
Chicago
San Francisco
t
51-60 days
1 7/8$
$
0
26,714
0
Totals
74
8,165
0
291
550
185
264
251
552
$27,540
#9,084
61-90 days
1 7/8%
Over 90-days
Total
$
29
1,018*
g**
94*
550
629*
0
0
0
0
0
0
$ 105
55,895
$2,526
0
$58,950
6
649
1,151
1,146
*Pur chased at 1 7/8 to 2$
**Purchased at 5%
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING DECEMBER 1.7, 1950
(000 Omitted)
(Excluding Sales Contracts & Special 1-day C/l)
Government
Securities
Purchased
Sold
Matured
Totals
$153,457
140,066
35,960
$ 20,569-
Bankers
Acceptances
'otal
$38,950
0
35,049
$ 3,901+
3,597- (Net Change
_____ 1-day holdover
and other bills!
504+
$192,407
140,066
69,009
p 16,6683,397- (Net Change
1-day holdover
and other bills]
$ 20,065-
HOLDINGS OF GOVjiBNMENT SECURITIES AND BANKERS ACCEPTANCES DECEMBER 17, 1930
-----------------------------------------------------------( 0 0 0 "O m rrtea)--------------------------------------------------------------(Including Sales Contracts & Special 1-day C/l)
Gov’
t Securities
Bills Purchased
Totals
Within
15-days
16-30
days
31-60
days
$109,000
107,150
0
77,280
0
55,975
$216,130
$77,280
$55,973
61-90
days
91 days-
6 months
Over 6
months Total
$152,606 $ 99,979
11,160 ______48
$330,849 $692,434
0
251,591
£163,766
$350,849 $944,035
$100,027
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority
0 * \bG ^ |
Decesfcer 15, 1030*
Bear l£r* M&ttoson:
I
tkdknmlQd@& r e c e ip t o f and s h a l l bring to the
attention of the members of the. Federal Beserre Board
your letter or Mceriber 13 th* addressed to Governor
Boyerf o >ciosj „ ro'port o f open mrlcet operations for
the period fpori Jecenber 4f 1930 to Deoeaber 10, 1930
inclusive^ toother with data reooirod from litodarul
Itoaonr© banks*
Tory truly yours,
S* M* llo&eU&nd*
Assistant -iocretary*
2r# ’
£• 3. attorn,
Assista-fe
Governor,
Federal 1-tosorv* Baisk,
Eenr York, Set? York#
|
|
i
Reproduced from the Unclassified I Declassified Holdings of the National Archives
„
5oj
% .
N e w Yo r k
C0iWIDiu4TlAL
/**%
December 1:?., 1950
i>*r. iii. A. Goldenweiser,
Director, Division of Research and otatistics,
Federal Reserve Board,
Washington, D. G.
Dear Mr. Goldenweiser:
Enclosed is a report of open market operations for
the period from December 4, 19o0 to December 10, 1950 inclu
sive, together withdata receive
from Federal reserve banks•
truiv^ yours,
•«. i3. Hmtteson
Assistant Deputy Governor
Encl.
rtV
"2 .
*T\
F e d e ra l R e s e rv e B a n k
of
O
o
Reproduced from the Unclassified I Declassified Holdings of the National Archives
F e d e ra l R e s e rv e B a n k
of
P£R>
j
Ne w Yo r k
UMA L
December 12, 19 J
Dear Governor Meyer:
We are enclosing, for your files, a report of open
niarkte operations for the period from December 4, 1950 to
December 10, 1930 inclusive, together with data received
from Federal reserve banks.
v>. 3. IWntteson
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
"P’OT? XT'T-)1 r-t T *-r f- -r — ■■
USE READ
;-r "
i i i i . '.
.leVer
1.
j
t lu .-,
...
✓
Mr. .
*
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\
-—.........
sEcrtr
\>JL: Jj U
.
s y ^
Ur. M ille r V*------—
M re P o l
Fe d e r a l R e s e r v e B a n k
of
Ne w Yo r k
CONFIDENTIAL
December 12, 1950
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from December 4, 1950 to December 10, 1930 inclu
sive, together with data received from Federal reserve banks
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
toa shin g ton, D * C.
Encl.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
_
T
DECLASSIFIED'
Authority
^
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CONFIIEtTTIAI
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED DECEMBER 10, 1930
Holdings of Earning Assets of Federal'Reserve Banks from December 11, 1929 to Date
(000 Omitted)
TOTAL
EARNING
ASSETS
$1,491,299
1 ,547,517
-1929Dec. 11
Dec. 31
-1930Jan. 29
Feb. 26
Mar. 26
Apr. 30
May
28
June 25
July 30
Aug. 27
-Sept. 24
Oct. 29
Nov. 26
3
Dec.
10
Dec.
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
$386,309
$
625
487,292
23,295
1 ,154,379
1 ,138,522
„ 1 ,001,090
982,225
958,776
916,038
911,554
967,034
973,485
975,021
1 ,011,940
1 ,078,414
1 ,117,905
476,466
477,610
526,284
527,124
529,450
576,560
576,325
601,915
601,656
601,438
59 5,654
602,192
604,003
70
5,145
2,715
2,385
320
410
45
0
150
0
0
0
13,000
BANKERS ACCEPTANCES
Outright
Sales
Purchases Contracts
$ 79,007
$242,855
155,255
256,974
185,677
252,521
145,772
161,846
150,066
94,735
127,965
159,137
192,161
161,906
169,930
203,359
223,407
72,795
66,785
112,710
47,718
45,494
7,578
2,797
4,157
5,585
3,752
6,176
15,578
20,290
BILLS
DISCOUNTED
$768,922
632,421
406,941
342,781
206,829
235,452
247,046
251,505
197,101
193,275
167,162
201,603
235,852
250,927
257,097
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSBTS OF SALES CONTRACTS)
DURING WEEK ENDED DECEMBER 10, 1930
(000 Omitted)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chi cago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Balance
Net
Dec. 10
Change
$ 391$ 46,924
190,499
1,87153,098
4321,719+
61,139
29317,555
637,724
82,599
7545,000+
19,151
7926,358
30729,335
22929,659
48939,962
$604,003
$1,811+
BANKERS ACCEPTANCES
Balance
Net
Dec. 10
Change
$ 2,727+
& 16,544
35,907
3,536+
0
0
19,607
11,315
12,855
19,842
7,885
5,756
8,240
6,242
25,152
2,132+
1,590+
1,991+
1,474+
771+
54,108
5,212+
$225,407
$20,048+
0
1,055+
7C2+
860+
BILLS DISCOUNTED
Balance
Net
Dec. 10
Change
$ 12,921
$ 1,115*
60,775
13,810+
662+
21,811
32,089
'1,9525,059+
28,224
32,415
5701,251+
22,410
55113,251
82+
3,880
59215,980
7,347
1885,994
7,946-
$257,097
$ 6,170+
COMMENT ON CHANGES WEEK M I E D DECEMBER 10, 1950
Total earning assets of the System showed an increase of $39,491,000 for
the current statement week.
The changes by classification consisted of increases
of $1,811,000 and $20,048,000 respectively, in outright purchases of government se
curities and bankers acceptances, and ^6,170,000 in bills discounted and $17,712,000
in investments held under sales contracts. The changes in the latter item consisted
of increases of $13,000,000 and $4,712,000 respectively, in government securities
and bankers acceptances.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
^
~~
f
DECLASSIFIED'
Authority ^ >0 • \ 6*5 ^ (
*“|
j
2
Money
Market
Rates in the New York money market during the past week were
practically unchanged from the preceding week.
Call money continued
to be quoted at 2 per cent on the Exchange, and in the outside market
there was little money obtainable below this figure.
In fact, on
Thursday, the 11th, a small amount of loans was placed at 2 1/2 per
cent in the outside market,
For most of the time, Federal funds were
quoted at around 1 3/4 - 2 per cent, but eased to 1 1/2 - 3/4 per cent
on December 11.
Daring the week ended Wednesday there was a further moder
ately large increase in the amount of Federal Reserve credit outstand
ing in this market which was sufficient not only to offset a loss of
funds through commercial and agency transactions, but also to raise
the reserve balances of the City banks to a position of moderate
' surplus at the opening of business Thursday, December 11, as against
a small deficit at the corresponding time in the preceding week.
The increase in outstanding Reserve bank credit was accomplished to
about half the total amount by an increase in Reserve System bill
holdings, and there were in addition lesser increases in the New York
Reserve Bank’
s security holdings and in borrowings of New York City
banks.
The loss in commercial and agency transactions reflected
chiefly withdrawals of currency from the Reserve bank which were only
partly balanced by some net inflow of funds from other centers, a
small gold import, and a net gain in miscellaneous commercial and
Treasury operations.
On Thursday/-, December 11* heavy YvTithdrawals
of currency from the Reserve bank, following the closing of a New York
City bank having numerous branches, were accompanied by a further
increase of $43,000,000 in borrowings of City banks.
In the time money market little activity was reported, and
bid and asked quotations were unchanged at 1 3/4 per cent bid, 2 per
cent asked for 30-day loans; 2 - 2 1/4 per cent for 60 and 90 days;
2 1/4 - 2 1/2 per cent for 4 months, and 2 1/2 - 2 3/4 per cent for
5 and 6 months maturities. A moderate amount of 6 months money was
loaned at 2 1/2 per cent,
A slightly better bank investment demand for commercial
paper developed during the past week* but little improvement in
dealers* sales was reported, due to the continued scarcity of prime
names in the market. Prevailing open market rates for prime names
were unchanged at 2 3/4 - 3 per cent.
Government
Security
Market
There was a fair danand in the market during the current
statement week for the short-term government securities although
prices of all issues showed small fractional recessions for the week.
However, the market for the long-term Treasury bonds was uneasy with
offerings considerably in excess of the demand and prices of these
issues recorded much larger fractional losses. At the close of the
statement week the average yield on the short-term governments at
dealers* offering prices was about 1.51# as compared with 1.45# last
week, and the average selling price for the Liberty Loan and Treasury
bonds was 104,91 as compared with 105,29 last week and the high level
for the year of 105,38,
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED'
Authority ^ j0 • \
|
^ I !
I
3
Dealers’Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the previous Statement Week
Net Approx,
Change Yield
Price
Issue
1/4$ Cert. of Ind. due Dec, 15, 1930 To yield 1*35%
♦t
-2/32 1.57 %
100 21/32
M June 15, 1931
-2/32 1 .66);
100 17/32
3/8#
" Sept 15, 1931
1/2% Treasury Notes Series t,Att and ,fB”
-2/32 1 .
100 16/32
called for payment Mar . 15, 1931
-2/32 1.57%
100 31/38
3 1/2% Treasury Notes due Dec 15, 1932
Treasury Bills " Dec 16 and 17, 1930 1 3/4% - 1 3/8% discount
tt
»
tf
1 3/4% - 1
16, 1931
Closing Sale Prices on New York Stock .^change at the Close of
the Current Statement Week and Net Changes from
______________Close of the Previous Statement Week
Net
Net
Change
Price
Issue
Price
Change
Issue
1st 3 1/2s 101 26/32 -5/32 Treas. 4s
1944-54 108 7/32 -19/32
1st 4 1/4s 102 27/32 -1/32
**
4 l/4s 1947-52 112 13/32 -19/32
4th 4 1/4s 103 19/32 -3/32
"
3 3/4s 1946-56 106 6/52 -20/32
"
3 3/8s 1943-47 102 12/32 -16/32
"
3 3/8s 1940-43 101 27/32 -13/32
Bankers
Acceptances
Dealers1 offerings of unindorsed bankers acceptances continued at the following rates during the current statement week: 1 7/8
per cent for 30s, 60s and 90s; 2 per cent for 120s, and 2 1/8 per
cent for 180-day bills*
Reports
week
ending
Dec* 10
In Boston, dealers reported that there was very little change
in the bill market during the past period* The supply was somewhat
limited, with the demand fair and preference shown for 90-day bills*
Gity banks bought less than $1,000,000 from dealers and, as heretofore,
dealers forwarded most of their bills to their offices in other cities.
In New York the bill market was slightly more active this week. The
demand was better, but was equalled by the supply and dealers* ag
gregate portfolios were practically unchanged. Banks sold to the
Reserve bank for System Account fairly substantial amounts of bills
of the shorter maturities. Philadelphia reports that its acceptance
market was inactive during the past week; offerings were not partic-v.
ularly heavy, with practically no demand. Chicago reports that the
demand for bills in its district was not as good during the past week
as during the previous period, while the supply appeared to be a little
better. Dallas reports that there was some improvement in the demand
for bills in its district during the past week with sales consisting
principally of five and six months* bills. Offerings to the Reserve
bank were very light.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
~
r
DECLASSIFIED *
Authority
D •\
0 j
|
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization diring the current
statement week were as follows:
Sale of $
180,000 par amount Fourth 4 1/4$ Liberty Loan bonds, account
German Special Deposit Account
1,000,000 ”
"
Fourth 4 1/4% Liberty Loan bonds, account
__________
Government Life Insurance Fund
$1,180,000 - Total Sales
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
•During the current statement week exchanges were effected advantageously,
in anticipation of early maturities, of
$14,500,000 - 3 1/4$ certificates due Dec. 15, 1930, and
2.500.000 - 3 1/2$ Treasury notes called for payment Mar. 15, 1931
a total of
$17,000,000 - for a like par amount of government securities as follows;
0 7,500,000 - 2 3/8$ certificates due Sept. 15, 1931
1.500.000 - 3 1/2$ Treasury notes due Dec. 15, 1932
8,000,000 - 4 1/4$ Fourth Liberty Loan bonds
$17,000,000
On December 4 the Federal Reserve Bank of St. Louis repurchased
-$5,000,000 of its participation of government securities in the System Account
representing one-half of the $10,000,000
v/hich it was temporarily relieved on
November 17, 1930.
These transactions did not affect the amount of total holdings in the
System Account, which remained at the close of business Wednesday, December 10,
1930, at $402,300,000.
The participations by Federal reserve banks and the classi
fication of issues at the close of the statement week were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$ 46,235,000
76,601,000
38*090,500
48,724,500
16,402,500
5,146,500
62,671,500
10,526,000
18,575,000
29,332,000
19,676,000
30,319,500
Totals
$402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Dec. 16, 1930 Dec. 17, 1930 Feb. 16, 19 31 Dec. 15, 1930 June 15, 1931 Sept. 15, 1931 Mar. 15, 1931 Series "An and
Dec. 15, 1932 Oct. 15, 1938 -
Treasury Bills $ 11,000,000
tt
12,500,000
tt
tt
38,707,000
3 1/4$ C/I
25,245,000
84,631,000
2 7/8$ tt
47 r587,000
2 3/8$ tt
3 1/2$ T/N
115,120,100
"B"
3 1/2$ tt
47,411,900
20,098,000
4 1/4$ 4th L/L
$402,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED'
Authority ^ ) Q • \ b G ^
|
\
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_________________ FROM DECEMBER 4 TO DECEMBER 10, 1950, INCLUSIVE_________________ __
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
"To tals
Purchases
$1,953,000
3,236,500
1,610,500
2,057,500
693,000
217,500
2,648,500
5,445,000
785,500
1,240,500
832,500
1,280,000
Sales
$ 2,343,500
4,647,500
2,043,000
2,588,000
986,000
217,500
3,402,500
445,000
953,000
1,548,000
1,056,500
1,769,500
Net Decrease
$ 390,500
1,411,000
432,500
530,500
293,000
0
754,000
0
167,500
307,500
224,000
489,500
Net Increase
0
0
0
0
0
0
0
5,000,000
0
0
0
0
$22,000,000
$>22,000,000
$5,000,000
$5,000,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Purchases
% 8,040,000
2,250,000
159,400
1,286,900
New York
Cleveland
Atlanta
Minneapolis
Dallas
Issue
Misc. ^ov’
t Sec*
TD-1930 C/I
Misc. Gov*t Sec.
W
tt
Sales
#8,500,000
Issue
MisG. Gov’
t sec.
221,950
1,197,900
4,300
Misc. Gov't Sec.
0
Tf
0
Totals
BANKERS ACCEPTANCES
(000 Omitted)
Boston
New York
Phila*
Gleveland
Richmond
Atlanta
Chicago
St„ Loui s
Minn.
Kan. Gity
Dallas
San Fran.
Totals
NOTE:
0
17,475
9,723
10,862
18,368
7,112
5,736
7,187
5,540
24,272
$152,463
Purchased
Own Mkt.
$ 1,010 R*
11,249 "
27,803 A.
0
0
322 R.
626 w
75 "
0
0
0
1 o' ff
X
884 w
$41,984
m
ft
tt
tt
,924,150
,736,300
Holdings
Dec.3
$ 13,817
32,371
»r
ft"
By Allot- Maturment from ities &
New York
Sales
$ 2,896
$ 1,179
0
7,713
Holdings
Dec.10
t,j> 16,544
35,907
Other Holdings
Close Dec. 10/30
Sales
Other
Bills
Contracts
$
955
$ 2,662
29,378
11,138
0
4,101
2,264
2,229
5,695
2,103
1,363
2,436
1,684
3,032
0
1,969
996
864
4,296
1,332
1,363
1,383
997
3,056
0
19,607
11,313
12,853
19,842
7,883
5,736
8,240
6,242
25,132
0
0
0
0
2*660
0
0
0
0
5,537
3,489
3,597
1,511
1,888
4,821
1,295
827
1,079
1,079
2,482
$27,803
$25,148
$.69,299
$20,290
$54,108
R, indicates S t a i n e d and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED '
Authority
0 •\
^
I
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING DBCHMB3SR lO,. 1950
(000 Omitted)
1-3C days
1 7/8%
Boston
New York
Ri chmond
Atlanta
Chicago
Balias
San Francisco
Totals
$
296
26,740
50**
559
48
7
116
$27,616
31-60 days
1 7/8%
61-90 days
1 7/8-2 1/8%
<6 604
11 ,160*
$
Over 90-days
-
110
0
0
0
0
0
0
0
0
1,152
95
77
190
21
8
0
257
6
531
$ 12,>597
$1,971
Totals
$ 1,010
39,052
322
626
75
15
884
$41,984
* Purchased at 1 7/8 to 2 1/8%
** Purchased at 2%
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING M
ENDING DECEMBER 10, 1950
(000 Omitted)
(Excluding Sales Contracts)
Purchased
Sold
Matured
Totals
Government
Securi ties
Bankers
Acceptances
$35,756
51,925
$41,984
Total
25j_148
$16,836+
3,212+(Net Change
l~day holdover
& other bills)
$75,720
51,925
25,148
$18,647+
5,212 +(Net Change
____ 1 -day holdover
& other bills )
$20*048+
$21,859+
0
0
1,811+
HOLDINGS OF GOTEmiENT SECURITIES AND BANKERS ACCEPTANCES DECEMBER 10, 1950
(000 Omitted)
'
(Including Sales Contracts)
Within
15-days
16-30
days
51-60
days
61-90
days
91 days6 months
Over 6
months
Total
Gov't Securities
Bills Purchased
$ 75,555
92,595
$ 0
$ 0
$58,707 ^155,240 $549,501 $617,005
70,984
67,414
12,655 ______49
0245,697
Totals
$166,150
$70,984
$67,414 $51,362 $155,289
$549,501
$860,700
Reproduced from the Unclassified I Declassified Holdings of the National Archives
December 6f 1930*
Dear Mr. Itetteson:
I acknowledge receipt of and shall bring
to the attention of the msiaboxs of th© Board
your ..2&t$er of J)eocr3hcr ^tb enclosing a report
of open narlcot operations for the poriod from
Kovenbor 27tti to Decolor 5 f 1930 inclusive,
to^otlior with data rocoived trm. Federal 'Re
serve banks*
Tory truly yours§
E, II* lfeGlol3xir4f
Assistant Secretary.
P<r# '-i# B* ratteson, Asst* Iteputy Govoroor#
?o&er&l ilesorve T3anJ:f
Hoi? Yor;':t Tmi Tor’
:*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority
Q •\ ^
|
— -F e d e r a l R e s e r v e B a n k
of
UOi4j?X LjShxifiXAL
N e w Yo r k
December 5, 1930
Mr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Goldenweiser:
Enclosed is a report of open market operations for
the period from November 27, 1930 to December 5, 1930 inclu
sive, together with data received from Federal reserve banks.
w. 3. Matteson
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority
D•\
^
I
F e d e ra l R e s e rv e B a n k
of
Ne w Yo r k
f a R o u i'i A L
December 5, 1950
Dear Governor Meyer:
We are enclosing, for your files, a report of open
market operations for the period from November 27, 1930 to
December 3, 1930 inclusive, together with data received from
Federal reserve banks.
w. B. Matteson
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
'-otthe-NationaliArchives
DECLASSIFIED *
Authority
n
Fe d e r a l R e s e r v e B a n k
of
PLEASE READ
@or* Mejrayi
Ne w Yo r k
SPECIAL CIRCULATION
OhPTLY, I N I T I A L E D RETURN TO S2
Mr. Hamlin ^
Mr. Jamea
Mr. Miller
“FOR
CONFIDENTIAL
^TARY’
S OFFICE
Mr. Pol
Deceiiber 5, 1930
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from November 27, 1930 to December 3, 1930 inclu
sive, together with data received from Federal reserve banks,
Ve
iruly yours,
W. B* Matteson
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED'
Authority
j
) D • \h G ^ j
|
I
CONFIDENTIAL
REPORT OF OPEN M A M E T OPERATIONS FOR WEEK ENDED DECEMBER 3, 1930
foldings of Earning Assets of Federal Reserve Banks from December 4, 1929 to Date
(000 Omitted)
TOTAL
EARNING
ASSETS
,502,670
1 ,547,517
-1929De c.
4
Dec. 31
-1930 —
Jan, 29
Feb. 26
Mar. 26
Apr. 30
28
May
June 25
July 30
Aug. 27
Segt. 24
Oct. 29
Nov. 26
3
Dec.
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
|>352,349
$ 2,795
23,295
487,292
1 ♦154,379
1 ,138,523
1 ,001,090
982,225
"958,776
916,038
911,554
967,034
973,483
975,021
1 ,011,940
1 ,078,414
47 6,466
477,610
526,284
527,124
529,450
576,560
576,323
601,913
601,656
601,438
595,634
602,192
BANKERS ACCEPTANCES
Outright
Sales
Purchases
Contracts
$218,038
$ 38,480
236,974
155,235
70
5,145
2,715
2,385
320
410
45
0
150
0
0
0
185,677
232,521
143,772
161,846
130,066
94,735
127,965
159,137
192,161
161,906
169,930
203,359
72,795
66,785
112,710
47,718
45,494
7,578
2,797
4,137
5,583
3,752
6,176
15,578
BILLS
DISCOUNTED
$872,310
632,421
406,941
342,781
206,829
233,452
247,046
231,505
197,101
193,275
167,162
201,603
233,852
250,927
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS}
_______ DURING WEEK ENDED DECEMBER 5, 1950_____________ _
(000 Omitted)
Boston
New York
Philadelphia
Cleveland
•Richmond
Atlanta
Ghicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
N, Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Net
Balance
Ghange
Dec. 3
§ 47,315
| 4325,000+
192,370
47953,530
58759,420
32417,848
94+
7,787
83483,353
14,151
5,526+
27926,437
34029,642
29,888
24740,451
540-
$>602,192
$6,558+
BANKERS ACCEPTANCES
Net
Balance
Ghange
Dec. 3
$ 13,817
| 2,503+
32,371
7,462+
0
0
17,475
2,824+
1,658+
9,723
2,874+
10,862
4,243+
18,368
1,291+
7,112
5,736
1,681+
917,187
344+
5,540
789+
24,272
50,896
7,851+
#203,359
$33,429+
BILLS DISCOUNTED
Net
Balance
Change
Dec. 5
$ 14,036
| 2,0228,760+
46,965
30521,149
34,021
3,372+
4,15625,185
32,985
3,343+
2,046+
21,159
92613,782
143,798
1,553+
16,372
7517,535
6,175+
13,940
$250,927
$»X7,075+
COMMENT ON CHANGES WEEK ENDED DECEMBER 5, 1950
Total earning assets of the System showed an increase of §66,474*000 for
the current statement week. The changes by classification consisted of increases
of $6,558*000 and ^33,429,000 respectively, in outright purchases of government
securities and bankers acceptances, and $17,075,000 in bills discounted, and
$9,402,000 in bankers acceptances held under sales contracts.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
“
DECLASSIFIED'
Authority ^ t Q • \ b G ^ j
Money
Market
“1
|
The rate for call money outside the Stock Exchange continued
to be the principal medium reflecting conditions of the supply of and
demand for funds in New York. Turn of the month and holiday influ
ences resulted in a slight further hardening in the rate for call loans
in the outside market, and by Friday, November 28, this rate reached
the Exchange level of 2 per cent where it remained most of the time
through Thursday, December 4. The Stock Exchange rate for call funds
was unchanged at 2 per cent throughout the week. Federal funds went
as high as 2 1/4 - 2 1/2 per cent on Monday, December 1, but sub
sequently receded and on December 4 the quotation was 1 3/4 - 2 per
cent.
An increase in currency circulation, due to holiday and
month-end demands, and an outflow of funds to other centers at the
turn of the month occasioned substantial losses to the money market,
and consequently the New York Gity banks had to seek recourse to th6
Federal Reserve in order to balance their average reserve position for
the period ended Tuesday, December 2. In addition to rather large
sales of bills by the banks to the Reserve Bank, the Gity banks tempor
arily increased their indebtedness to §67,000,000, the highest since
the end of September, As the result of the accumulation of excess
actual reserves by these operations and some gain in commercial and
agency transactions on Wednesday, the major part of the member bank
borrowings incurred in the previous days was retired, but on Thursday
the Gity banks again sold bills to the Reserve Bank in order to offset
losses occasioned chiefly by currency withdrawals.
No change occurred in the bid and asked rates for time
money; trading was confined to a small volume of 90-day loans at
2 1/4 per cent. Commercial paper continued to be quoted at a range
of 2 3/4 - 3 per cent with activity limited chiefly by the small
quantity of new prime material entering the open market.
Government
Security
Market
Accompanying firmer money conditions there was considerable
selling of United States Government securities, especially the long
term bonds. While the demand was fair, it was somewhat less than the
amount of offerings and the trend of prices turned downward, At the
close of the statement week the average yield on the short-term govern
ments at dealers* offering prices was about 1.45$ as compared with
1.34$ last week, and the average selling price for the long-term bonds
was 105.29 as compared with the high level for the year of 105.38
which was established during the preceding statement week.
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
Change Yield
Price
3 1/4$ Cert. of Ind. due Dec. ,15, 1930 To yield 1.25$
tt June 15, 1931
»t
V
1.50$
2 7/8$
-3/32
100 23/32
1.59%
2 3/8$
Sept . 15, 1931
-2/32
100 19/32
3 1/2$ Treasury Notes Series "A" and ”
Bf?
100 18/32
-3/32
l.<
called for payment Mar . 15, 1931
3 1/2$ Treasury Notes due Dec . 15* 1932
101 1/32
-3/32
1.52$
Treasury Bills M Dec 16 and 17, 1930 1 3/4$ - 1 3/8$ discount
W
W tt Feb 16, 1931
1 3/4$ - 1 1/2$
M
Reproduced from the Unclassified / Declassified Holdings of the National Archives
~
C
DECLASSIFIED'
Authority
^
)Q
~“ |
» \b G 0 |
|
Closing Sale Prices on New York Stock iixchange at the Close of
the Current Statement Week and Net Changes from
____________ Close of the Previous Statement Week
Net
Net
Issue
Change
Issue
Price
Price
Change
1st 3 1/2s 101 31/32* +3/32 Treas •4s
1944-54 108 26/32*
-4/33
1st 4 l/4s 102 28/32
* -9/32
4 l/4s 1947-52 113
-6/32
t»
4th 4 l/4s 103 22/32
-3/32
3 3/4s 1946-56 106 26/32*
-4/32
tr
3 3/8 s 1943-47 102 28/32*
+ 3/32
tt
3 3/8s 1940-43 102 8/32
-4/32
^Represent last sales on the N. Y. Stock Exchange which were made
prior to close of statement week.
Bajikers
Acceptances
Dealers* offerings of unendorsed bankers acceptances contin
ued at the following rates during the current statement week: 1 7 / 8
per cent for 50s* 60s and 90s; 2 per cent for 120s and 2 1/8 per cent
for 180-day bills.
Reports
week
ending
Dec. 3
Boston reports that there was very little change in the
bill market in its district during the past period. There was a slight
indication on the part of some of the accepting banks to sell more of
their bills from their portfolios. The demand was about the same as
the previous week, dealers forwarding most of their bills to their
offices in other cities as heretofore. Offerings to the Reserve bank
from dealers amounted to $764,000* the first in four weeks. In New
York firmer money conditions resulted in banks selling to the Federal
Reserve Bank of New York fairly substantial amounts of bills of the
shorter maturities for System Account and to the dealers a moderate
amount of the longer maturities. The demand was moderately exceeded
by the supply and dealers aggregate portfolios increased by about
$6,000*000. Philadelphia reports that its acceptance market was a
little more active. Offerings to dealers while not heavy showed some
improvement indicating that banks were releasing some of their hold
ings. Portfolios were slightly higher. Chicago reports that there
was a good demand for bills in its district during the past week with
the supply limited. Dallas reports that its bill market was very quiet
during the past week, the demand being very light* Offerings to the
Reserve bank were practically negligible.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
”
r
„
■
,
DECLASSIFIED *
~~1
Authority I ^ j D*
■
!
'
4
OPERATIONS FOR ACCOUNT Off UNITED STATES TREASURY
Transactions consTWcnQtofl under Treasury authorization during the current
statement week consisted of sales of $2,QQfy000 aggregate amount Fourth 4 l/4$>
Liberty Loan bonds from holdings, account Government Life Insurance Fund.
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week exchanges were effected advantageously
in the holdings in the System Account, either as an accommoda’
iion to the market or
in anticipation of early maturities, of
$21,000,000 - 3 1/4$ certificates of indebtedness
due December 15, 1930
1,000,000 - 3 1/2$ Treasury notes called for
___________
payment March 15, 1931
$22,000,000 - for a like par amount of government securities
as follows:
$10,000,000
1.000.000
5.000.000
1.000.000
5.000.000
- 3 1/2$ Treasury notes called for
payment March 15f 1931
- 2 7/8% certificates of indebtedness
due June 15, 1931
- 2 3/8cjo certificates of indebtedness
due September 15, 1931
- 3 1/2io Treasury notes due December
15, 1932
- 4 1/4% Fourth Liberty Loan bonds
$ 2 2 , 0 0 0 ,0 0 0
On December 2 the Federal Reserve Bank of St* Louis repurchased
$5,526,000 of its participation of government securities in the System Account
of which it was temporarily relieved on November 21#
These transactions did not affect the amount of total holdings in the
System Account, which remained at the close of business Wednesday, December 3, 1930,
at $402,300,000. The participations by Federal reserve banks and the classification
of issues at the close of the statement week were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
R ECAPITULATION OF HOLDINGS BY MATURITIES
Boston
$ 46,625,500
Dec. 16, 1930 - Treas.Bills $ 11,000,000
n
?»
12,500,000
New York
78,012,000
Dec. 17, 1930
«.
tt
ft
38,707,000
38,523,000
Feb. 16, 1931
Philadelphia
39,745,000
49,255,000
Cleveland
Dec, 15, 1930 - 3 1/4$ C/I
84,631,000
Richmond
16,695,500
June 15, 19 31 - 2 7/8% "
40,087,000
Sept . 15, 1931 - 2 3/8$ "
Atiante
5,146,500
Ghicago
63,425,500
Mar. 15, 1931 - 3 1/2$ T/N
117,620,100
St, Louis
5,526,000
Series "A" and "B"
45,911,900
Minneapolis
18,742,500
Dec. 15, 1932 - 3 1/ 2% ff
12,098,000
Kansas City
29,639,500
Oct, 15, 1938 - 4 1/4$ L/L
19,900,000
Dallas
30,809,000
San Francisco
. .
Totals
$402,300,000
$402,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
^
Authority
D•\
~~|
^ I
I
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_________________ FROM NOVEMBER 27 TO DECEMBER 5, 1930, INCLUSIVE___________________
GOVERNMENT SECURITIES
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dairlas
San Francisco
Totals
Purchases
$ 2,568,000
4,331,500
2,127,000
2,718,500
927,000
281,500
3,503,500
5,594,500
1,032,500
1,635,500
1,099,000
1,707,500
$27,526,000
-
SYSTEM INVESTMENT ACCOUNT
Net Decrease
$ 432,000
1,558,500
478,500
587,000
324,000
0
834,000
0
185,000
340,000
247,000
540,000
$5,526,000
Sales
$ 3,000,000
5,890,000.
2,605,500
3,305,500
1,251,000
281,500
4,337,500
68,500
1,217,500
1,975,500
1,346,000
2,247,500
$>27,526,000
Net Increase
0
0
0
0
0
0
0
5, 526,000
0
0
0
0
$5,526,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Purchases
$ 8,059,050
319 , 350
1,680,100
2*174* 650
New York
Atlanta
Minneapolis
Dallas
Totals
Issue
Misce Gov*t Sec.,
»
«
tf
tt
tt
tr
Fourth L/L Bonds
$12,233,150
Sales
i£1,500,000
225,700
1,774,800
2,174,650
i?5,675,150
BANKERS ACCEPTANCES
(000 Omitted)
Boston
New York
Holdings
Nov. 26
$ 11,314
24,909
Phila.
Gleve.
Richmond
Atlanta
Chicago
St. louis
Minn.
Kan. City
Dallas
San Fran.
0
14,651
8,065
7,988
14,125
5,821
4,055
7,278
5,196
23,483
Issue
Mi sc . Gov* t Sec.
tt
tt
"
t»
tf
"
Ser. B. & 0. T/N
By Allot
Purchased ment from
Own Mkt.
New York
4 1,286 R. $ 3,327
0
12,142 "
31,373 A.
0
0
0
4,643
2,569
71 R.
1,298 "
2,890
544 "
6,274
0
2,470
1,525
660 "
0
2,773
0
1,877
1,470 "
3,025
Matur
ities &
Sales
$ 2,110
4,680
Holdings
Dec. 3
$ 13,817
32,371
0
1,819
982
1,314
2,575
1,179
504
2,864
1,533
3,706
0
17,475
9,723
10,862
18,368
7,112
5,736
7,187
5,540
24,272
Other Holdings
Close Dec. 3/30
Other
Sales
Bills
Contracts
$ 2,518
$ 1,441
25,177
8j940
0
0
0
0
852
0
0
0
0
4,345
3,300
3,402
1,429
1,933
4,559
1,225
783
1*021
1*021
2*348
$48*716
$48,844
$23,266
$152,463
Totals $126,885
$31,373
$15,578
Bills held overnight by New York for distribution to other F.R. Banks - -*■ 2,180
$50,896
Total
NOTE: R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED ‘
Authority
Q •
\
bG ^ 1
6
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING DECEMBER 5, 1950
(000 Omitted)
1-30 days
1 7/8$
Boston
New York
Richmond
Atlanta
Chicago
Minneapolis
San Francisco
#
Totals
31-60 days
1 7/8%
$
363
16,899*
0
421
10
0
228
$17,921
61-90 days
1 7/8#
362
22,944*
71
429
534
660
992
$
Over 90-days
-
561
3,672*
0
448
0
0
250
$4,931
$25,992
Total
0
0
0
0
0
0
0
$ 1,286
43,515
71
1,298
544
660
1,470
0
$48,844
*Purchased at 1 7/8 to B%
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES AND
BANKERS ACCEPTANCES DURING WEEK ENDING DECEMBER 5, 1950________
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
$39,759
33*201
Totals
$ 6,558+
Bankers
Acceptances
Total
$88,603
35#201
25,266
35,266
#25,578*
,136+
7,851+ (Net Change
7,851+ (Net Change
_______ 1-day holdover
_______ 1-day holdover
and other bills)
and other bills)
#35,429+
$39,987+
^48,844
0
0
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES DECEMBER 5, 1950
^q q q omitted)
(Including Sales Contracts)
Gov’
t Securities
Bills Purchased
Totals
Within
15-days
16-30
days
31-60
days
$ 72,765
84,859
0
51,691
0
68,277
$157,624
$51,691 $68,277
61-90 91 daysdays 6 months
Over 6
months
$38,707 $.57,738 $352,982
14,062 ______ 48
0
$52,769 $157,786
$532,982
Total
§602,192
218,957
$821,129
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED'
Authority ^ , D
\bGd|
Dooanfcer I * 1930 .
DatS? Sir* Matteson:
I m 'k n m le& m m m ip % of and shall bring to the
attention o f the w entom o f Hi© Bcard yoiir lettey of
Hoyesfcar 29> enclosing a report of open market opera
tions for tin© period ftroo I f o v w A w 80tfa to Noreraber
1930 inolusiv** together with data received from Federal
M mmrm banks.
Tary truly yours,
&* M* IteOieiaaM*
Jtaalstant Secretary.
Mr* W* B* Mattaaon* Aaat. Deputy Goreraor,
Faderal Haaegf*® Bank,
leu-. Tork# Hew York.
|
!
I
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED *
s* '
Authority ~ £ . 0 -
F e d e ra l R e s e rv e B a n k
o f
N e w Yo r k
P E R S O N A L
November 29, 1930
Dear Governor Meyer:
We are enclosing, for your files, a report of open
market operations for the period from November 20, 1950 to
November 26, 1950 inclusive, together with data received
from Federal reserve banks.
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority
I
Fe d e r a l R e s e r v e B a n k
of
CONFIDENTIAL
N e w Yo r k
November 29, 19SO
Mr, E. A, Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Goldenweiser:
Enclosed is a report of open market operations for
the period from November 20, 1930 to November 26, 1950 inclu
sive, together with data received from Federal reserve banks
W. B. Matteson
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority 1 5 , p . \ t e c H
|
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
fO R SPECIAL CIRCULATION
D FROKPTLY, INITIAL AND RETURN 210
Mr. Haml in
Mr. M il l e r
OfflCii
CONFIDENTIAL
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from November 20, 1930 to November 26, 1930 inclusive, 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 I Declassified Holdings of the National Archives
~
C
7*
DECLASSIFIED'
Authority
“1
i Q • \ ^*5 0 j
|
I
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED NOVEMBER 26, 1930
Holdings of Earning Assets of Federal Reserve Banks from November 27, 1929 to Date
(000 Omitted)
BANKERS ACCEPTANCES
BILLS
TOTAL
GOVERNMENT SECURITIES
Outright
Sales
EARNING
Outright
Sales
-1929Contracts
Purchases
DISCOUNTED
ASSETS
Purchases
Contracts
$912,349
$250,044
4 7,271
Nov* 27 |l, 514,460
$ 4,0&5
$322,063
155,235
632,421
236,974
23,295
1,547,517
487,292
Dec. 31
-1930406,941
185,677
72,795
1,154,379
70
476,466
Jan. 29
342,781
66,785
Feb. 26
5,145
232,521
477,610
1,138,522
206,829
112,710
143,772
2,715
Mar. 26
526,284
1,001,090
47,718
233,452
Apr. 30
161,846
2,385
982,225
527,124
247,046
May
130,066
45,494
320
28
*958,776
529,450
231,505
94,735
7,578
410
June 25
916,038
576,560
127,965
197,101
July 30
2,797
45
911,554
576,323
193,275
159,137
4,137
Aug. 27
967,034
601,913
0
192,161
5,583
167,162
Sept. 24
601,656
973,483
150
Oct. 29
601,438
161,906
975,021
201,603
0
3,752
205,037
5,626
172,647
Nov. 19
985,380
0
595,77 3
6,176
233,852
159f930
Nov* 26
595,634
1,011,940
0
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
_______________ DURING WEEK ENDED NOVEMBER 26, 1930__________ _____
(000 Omitted)
GOVERNMENT SECURITIES
BANKERS ACCEPTANCES
Balance
Net
Balance
Balance
Net
Change
Nov. 26
Change
Nov, 26
Nov. 26
$ 16,058
$1,466# 11*314
| 47,747
Boston
§ 432+
24,909
38,205
616New York
187,370
1,926+
0
21,454
54,009
0
479*
Philadelphia
30,649
91814,651
Cleveland
60,007
587+
Richmond
48529,341
8,065
324+
18,172
55229,642
7,988
31Atlanta
7,693
55914,125
Chicago
834+
19,113
84,187
5,821
14,708
St, Louis
8,625
2465,526209+
Minneapolis
26,716
4,055
233,812
14,819
Kansas Gity
29,982
340+
7,278
723Dallas
30,135
147+
8,286
2535*196
40,991
San Francisco
540+
7,765
23,483
1,153+
N* Y. holdovers
and other bills
1,571+
43,045
Totals
$595,634
$
139-
|169*930
#2,717-
$2355*852
Net
Ohange
$ 2*077+
6,659+
3*080+
2,744+
7,341+
2*146+
1*975+
1*285311*987+
337+
1,785+
$>28*815+
COMMENT ON CHANGES WEEK ENDED NOVEMBER 26, 1930
Total earning assets of the System showed an increase of -$26,560,000 for
the current statement- week. The changes by classification consisted of increases
of §28,815,000 and $550,000 respectively, in bills discounted and bankers accept
ances held under sales contracts, and decreases of §139*000 in outright purchases
of government securities and -$2*?iy,000 in. outright purchases of bankers accept
ances.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED '
Authority
Money
Market
As in other recent weeks, changes- in money market conditions
were reflected in the rate quoted on call money outside the Exchange.
This quotation remained at X per cent during most of the week, but some
firming was indicated on Tuesday when the bulk of the offerings were at
1 1/2 and 2 per cent, and on Wednesday when no concessions were obtain
able below 1 1/2 per cent. Call money on the Stock Exchange continued
at 2 per cent, a figure which has been constant since the middle of
September except for a one-day decline to 1 1/2 per cent on September
29. The rate for Federal funds at the close of the week rose as high
as 1 3/4 - 2 per cent, compared with 1/2 - 3/4 per cent at the end of
the preceding period.
The principal factor affecting conditions in the New York
money market during the past week was a substantial seasonal withdrawal
of currency from the Reserve Bank for circulation purposes. Doubtless
due to a similar holiday demand in other districts, the net inter- district movement of funds was away from New York through Tuesday and
on that day the New York City banks sold a moderately large amount of
bills to the Reserve Bank in order to maintain their reserve position.
On Wednesday, however, a return movement of funds to this market and a
decrease in member bank reserve requirements resulted in the accumulation
of a moderate surplus of actual reserves. This was completely wiped out
on Friday and member banks found a small amount of borrowing necessary.^
A small volume of business continued to be transacted in the
time money market, chiefly in 4 months f maturities which on Thursday,
November 20, were at 2 1/4 per cent, down 1/4 per cent from previously
reported trades, but toward the end of the present week were again made
at 2 1/2 per cent. Nominal bid and asked rates were unchanged as
follows: 30 days, 1 3/4 - 2 per cent; 60 and 90 days, 2 - 2 1/4 per
cent; 4 months, 2 1/4 - 2 1/2 per cent; and 5 and 6 months, 2 1 / 2 2-3/4 per cent.
Dealers in commercial paper report that outlets for high grade
material at 2 3/4 per cent were fewer than a short time ago, but that
the prevailing quotations for prime names remained at 2 3/4 - 3 per cent.
Bank investment demand generally Was somewhat smaller than recently, and
new drawings of paper were light.
The market for United States Government securities continued
Government
strong during the current statement week. The demand was good for both
Security
the short and long-term issues, which again advanced in price to higher
Market
levels. At the close of the statement week the average yield on the
short-term governments at dealers* offering prices was about 1.34% as
compared with 1.41% last week, while the average selling price for the
long-term bonds again registered a new high level for the year of 105.38
as compared with the previous high for the year of 105.21 made last week.
Dealers’Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
Net
Approx.
Change Yield
Issue
Price
1/4% Cert, of Ind. due Dec. 15, 1930
To yield 1.25%
7/8% *
n
n
" june 15f 1931
1.35%
100 26/32
1.53%
3/8% *
"
"
" Sept. 15, 1931
100 21/32
+1/32
1/2% Treasury Notes Series nAn and WB"
called for payment Mar. 15, 1931
100 21/32 -1/32
1 .:
1 .39%
1/2% Treasury Notes due Dec. 15, 1932
101 4/32 +1/32
Treasury Bills due Dec^ 16 and 17, 1930
1 1/2% - 1 1/4% discount
w
*
"
" Feb. 16, 1931
1 5/8% - 1 3/8%
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority 1^ } D »
Closing Prices on New York Stock Exchange at the Close of
the Current Statement Y/eek and Net Changes frcm
Close of the Previous Statement Y/eek
Net
Change
+10/32
+ 6/32
+ 3/32
Net
Change
+5/32
+2/32
+5/32
+4/32
+5/32
Issue
1st 3 1/Zs
1st 4 l/4s
4th 4 l/4s
Price
101 28/32
103 2/32
103 25/32
Bankers
Acceptances
Dealers 1 offerings of unendorsed bankers acceptances con
tinued at the following rates during the current statement week:
1 7/8 per cent for 30s, 60s and 90s; 2 per cent for 120s and 2 1/8
per cent for 180-day bills.
Reports
week
ending
Nov. 26
Boston reports that bill dealers continued to report that
the supply of bills was very limited with a considerable falling off
in the demand over the previous week. Bills as a v/hole did not move
freely, with very little choice as to maturities. Reporting dealers1
sales fell to approximately $600,000, while new bills coming into the
market fell off over $3,500,000. Some corporation buying was noticed
for the first time in months, but as heretofore dealers were obliged
to forward the majority of their bills to their offices in other
cities in order to keep portfolios down. Offerings to the Reserve
bank were negligible. In New York the volume of bills handled by
dealers during the week was greater than it has been for the past
several weeks, as firmer money conditions brought some bills into the
market.
Up to the 25th of the month, conditions were the same as
they have been for the past few weeks with dealers being able to sell
all of the bills which came into their hands. On the 25th, dealers1
purchases were substantially larger. Sales increased also, but not
to the sane extent as their purchases and aggregate portfolios at the
end of the week had increased by approximately $6,000,000. .
Philadelphia reports that its acceptance market was without change.
New bills continued to be scarce with portfolios very low. Chicago
reports that there was very little activity in the bill market in
its district. The demand was good with the supply small. Dallas
reports that there was scrne improvement in the bill market during the
past week, the demand being better than at any time for the past
several months. However, the increase in purchases was due partially
to a large order frcm a reserve city bank. Offerings to the Federal
reserve bank were negligible.
Issue
Treas. 4s
1944-54
tt
4 l/4s 1947-52
tt
3 3/4s 1946-56
tt
3 3/8s 1943-47
tt
3 3/8s 1940-43
Price
108 30/32
113 9/32
106 30/32
102 25/32
102 12/32
Reproduced from the Unclassified / Declassified Holdings of the National Archives
mm
DECLASSIFIED '
Authority
Q »\
j
4
OPERATIONS FOR ACCOIT^ OF UNITED STATUS TREASURY
The only transaction consummated undei* Treasury authorization during the
current statement week was a sale of $200,000 - 8 1/2# Treasury notes due December
15, 1932, from holdings, account Alien Property Custodian.
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week exchanges were advantageously effected
in the System Account of
$ 3,500,000 - 3 1/4$ certificates of indebtedness due
December 15, 1930
2.500.000 - Treasury bills due December 16, 1930
5.000.000 "
"
" February 16, 1931
500,000 - 3 1/2% Treasury notes called for payment
___________
March 15, 1931
a total of
$11,500,000 for a like par amount of other issues of government se
curities as follows:
$ 1,500,000 - 2 7/3% certificates of indebtedness due
June 15, 1931
2.000.000 - 2 3/8% certificates of indebtedness due
September 15, 1931
1.500.000 - 3 1/2% Treasury notes due Dscember 15, 1932
6.500.000 - 4 1/4% Fourth Liberty Loan bonds
$11j500,000
On November 21 the Federal Reserve Bank of St. Louis asked to be relieved
temporarily of the balance of its participation in the System Account.
These se
curities, amounting to 05,526,000, vrere taken over into the participation of the
Federal Reserve Bank of New York on November 21 and apportioned on Monday, November
24, to the other Federal reserve b^nks who expressed a willingness to participate.
These transactions did not affect the amount of total holdings in the
System Account, which remained at the close of business Wednesday, November 26, 1930,
at -|402,300,000. The participations by Federal reserve banks and the classification
of issues at the close of the statement week were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Oleyeland
Richmond
^ttenta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
$
47,057,500
79,570,500
39,001,500
49,842,000
17,019,500
5,146,500
64,259,500
0
18,927,500
29,979,500
20,147,000
31,349,000
$402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Dec. 16, 1930 Dec. IV, 1930 Feb. 16, 1931 Dec* 15, 1930 June 15, 1931 Sept. 15, 1931 Mar. 15, 1931 Series "An and
Dec. 15, 1932 Oct. 15, 1938 -
Treasury Bills
»»
»
3 1/4# C/I
t»
n
3 1/2# T/N
"B"
3 1/2%
4 1/4% 4th L/L
2 7/8%
2 3/8#
| 11 ,000,000
12,500,000
38,707,000
40,745,000
83,631,000
35,087,000
128,620,100
44,911,900
7,098,000
$402,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED'
Authority
D•
|
(
|
I
/m
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
FROM NOVEMBER 20 TO NOVEMBER 26, 1930, INCLUSIVE
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis Minneapolis
Kansas City
Dallas
San Francisco
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Net
Increase
Sales
Purchases
$ 432,000
$ 1,342,000
# 1,774,000
6,249,000
1,558,500
7,807,500
478,500
1,590,500
1*112,000
587,000
1,420,000
2,007,000
324,000
483,000
807,000
0
148,000
148,000
834,000
2,663,500
1,829,500
0
27,000
5,553,000
185,000
539,000
724,000
853,500
340,000
1,193,500
247,000
573,000
820,000
540,000
1,431,500
891,500
Totals
#20,993,500
$20,993,500
Net
Decrease
0
0
0
0
0
0
0
5,526,000
0
0
0
0
$5,526,000
$5,526,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
New York
Atlanta
Minneapolis
Dallas
Totals
Purchases
$ 367,000
100,850
803,550
0
Issue
Misc. Gov’
t Sec.
tf
»
"
♦
t
"
"
$
$1,271,400
Sales
0
131,600
i780,300
500,000
Issue
Misc. Gov’
t Sec.
"
"
TS-1931 C/l
411,900
BANKERS ACCEPTANCES
(boo Omitted)
Boston
New York
Phila.
Cleve.
Richmond
Atlanta
Chicago
St. Louis
Minn.
lian. City
Da H a s
San Fran.
Holdings
Nov.19
I 12,780
25,525
0
15,569
8,550
8,540
14,684
6,067
4,078
8,001
5,049
22,330
Purchased
Own Mkt,
0
4,523 R.
8,303 •
0
0
218 R.
0
588 n
0
0
0
112
2,507 f*
By Allot Matur
ment from ities &
Sales
New York
$ 2,319
$
853
0
5,139
0
1,154
643
723
1,633
645
373
718
481
1,080
Hoidings
Nov. 26
£ 11,314
24,909
Other Holdings
Close Nov.£5/30
Sales
Other
Gontracts Bills
$ 992 $2,247
1,401 20,522
0
2,072
1,346
1,275
2,780
891
396
1,441
446
2,434
0
0
2,945
14,651
0
3,036
8,065
0
1,275
7,988
0
1,865
14,125
751
4,068
5,821
0
1,093
4,055
0
698
7,278
0
911
5,196
0
911
23,483
3,032
2,095
Totals
4131,173 $16,251
$8,303
$20,539
£126,885
.46,176 $41,666
Bills held overnight by New York for distribution to other F„ R. Banks - 1,379
Total ----------- §43,045
-I0TE:
R, indicates Retained and A. indicates Allotted in the above statement.
tr
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED'
Authority ^
t
0 •
\
^ I
<k
|
!
I
MATURITIES AND RATES ON BILLS PURCHASED VjLudC ENDING- NOVEMBER 26, 1930
w
.(000 Omit ted j
61-90 days
1 7/8#
Over 90-days
1-30 days
1 7/Sji
51-60 days
1 7/8%
Nev,1 York
Richmond
Chicago
Dalla s
San Francisco
<j{>0,544*
#3,996*
18**
588
30
781
$
1,261
2,507
Totals
$>9,291
$5,413
#1,547
$16*251
200 * *
0
82
465
Total
$>12,826
218
588
266*
0
0
0
112
^Purchased at 1 7/8 to 2
„**Purchased at 2%
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES AND
BANKERS ACCEPTANCES DURING WEEK ENDING NOVEMBER 26, 1950______
(qqq omitted)
(Excluding Sales Contracts)
Purchased
Sold
Matured
Totals
Gov ernment
Securities
Bankers
•Acceptances
$22,265
22,404
#16,251
0
$
159-
Total
$38,516
28,404
20,539
20,559
| 4,427$ 4,2881,571+ (Net Ghange
1,571+ (Net Change
_______ 1-day holdover
_______ 1-day holdover
and other bills)
and other bills)
$ 2,717£ 2,856-
0
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES NOVEMBER 26, 1950
(000 Omitted)
(Including Sales Contracts)
Within
15-days
Gov’
t Securities
Bills Purchased
Totals
16-30
days
31-60
days
61-90
days
0
65,854
$ 75,765
44,205
0
55,802
$58,707
12,088
$169,623
159
$313,540
0
$595,634
176,106
$65,854
$117,968
$55,802
$50,795
$169,781
$515,540
$771,740
$
91 days-'
6 months
Over 6
months
Total
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority
|
I
Korembecr 22, 1900.
Dear ?4r* Tfettoaon:
I
acfcacml0&a3 reeoipt of and thank you for your
letter of Iforeefcer 21st enclosing & report o f opon imrlcet
operations for the period trod Bovessfcer 13* 1930 to liovenbor
19, 1950 inclusive* together with data received frcn
^deral Ue&orw® ha xuzb*
Vary truly yours,
1 * M. JIcC lelLard,
Assistant Secretary*
Mr* W* B* Matteaon* Asat* Deputy Govarnor*
Federal toserro Bank*
Now York, II* Y.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority
0 •\
^ I
F e d e ra l R e s e rv e B a n k
of
Ne w Yo r k
F O i i O N i L
November 21, 1950
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from November 15, 1930 to November 19, 1950 inclu
sive, together with data received from Federal reserve banks.
V£
J
J O
U
L » ,
W. B. Matteson
Assistant Deputy Governor
Honorable Eugene *Meyer,
Governor, Federal Reserve Board,
"Washington, D. C.
Encl.
R E C E I V E 0;
|
! ''■ T: 2
1
1930
OFFIQji! W '
!
Reproduced from the Unclassified I Declassified Holdings of the National Archives
_ .............. _____ , ....
[“
'
..........
DECLASSIFIED*
......
I
Authority
^
f/X
.Jry\ $
*
TV'S,
<<£ V r
u
‘
is*
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
CONFIMTIAL
November SI, 1930
kr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Mr, Goldenweiser:
Enclosed is a report of open market operations for
the period from November 13, 1950 to November 19, 1930 inclu
sive, together with data received from Federal reserve banks,
/YerySCintSty
yovtns,
»»• 3, Matte son
Assistant Deputy Governor
Encl.
-J
w
Repioduced fiom the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED '
Authority £ , Q .
»Tfi~
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
F OR SPECIAL CIRCULATION
PLEA SE R E A D PROMPTLY, INITIAL AN D RETURN TO SJSdRKTARY'S
■>@wr. Meyerv
Mr. H am l i n
Mr. James
^
''
Mr. Mi ll e r (_x^*v Mr. Cunningham y —
CONFIDENTIAL
not
Mr. Pol
November SI, 1950
Dear Governor Meyers
Enclosed is a report of open market operations for
the period from November 13, 1950 to November 19, 1930 inclu
sive, together with data received from Federal reserve banks.
Assistant deputy Governor
Honorable Eugene Meyer,
Governor, federal Reserve Board,
Washington, D. C.
Encl.
received
i;0V 1 1 1930
QFFIGK5 O f
h b aef
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED ‘
Authority
■\
|
b G Q i 1 jI
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENDED NOVEMBER 19, 1930
Holdings of Earning Assets of Federal Reserve Banks from November SO, 1929 to Date
(000 Omitted)
^
-1929Nov. 20
Nov. 27
Dec. 31
-1930Jan. 29
Feb. 26
M ar. 26
Apr. 30
May
28
June 25
July 30
Aug* 27
Sept. 24
Get. 29
Nov. 12
Nov. 19
TOTAL
EARNING
ASSETS
^1,530,265
1,514,460
1,547,517
GOVERNMENT SECURITIES
BANKERS ACCEPTANCES
Outright
Outright
Sales
Sales
Purchases
Contracts
Purchases
Contracts
$322,683
$ 7,379
$ 3,845
§276,452
7,271
322,063
4,035
250,044
155,235
236,974
23,295
487,392
1,154,379
L, 138,522
1,001,090
982,225
958,776
916,038
911,554
967,034
973,483
975,021
1,006,586
985,380
476,466
477,610
526,284
527,124
529,450
576,560
576,323
601,913
601,656
601,438
601,290
595,773
70
5,145
2,715
2,385
320
410
45
72,795
66,785
112,710
47,718
45,494
7,578
2,797
4,137
5,583
3,752
5,464
5,626
185,677
232,521
143,772
161,846
130,066
94,735
127,965
159,137
192,161
161,906
201,878
172,647
0
150
0
0
0
BILLS
DISCOUNTED
$899,558
912,349
632,421
406,941
342,781
'206,829
233,452
247,046
231,505
197,101
193,275
167,162
201,603
191,657
205,037
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
________________ DURING WEEK ENDED NOVEMBER 19, 1950_____________
(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
GOVERNl-OTT SECURITIES
Net
Balance
Nov.. 19
Change
$ 47,315
$1*142+
185,444
1,8961,278+
53,530
59,420
1,565+
17,848
865+
7,724
5,04183,353
2,225+
14,151
9,74826,507
586+
906+
29,642
30,388
1,159+
40,451
1,442+
$595,773
$5,517-
BANKERS ACCEPTANCES
Net
Balance
Nov. 19
Change
$
336$ 12,780
6,57625,525
0
0
5,049
22,330
2,9211,2656051,321843**
6864171,1672,127-
41,474
10,967-
$172,647
$29,231-
15,569
8,550
8,540
14,684
6,067
4,078
8,001
BILLS DISCOUNTED
Balance
Net
Nov.,19
Change
$ 13,981
$ 3,182+
1 ,222*31,546
8518,374
2,903+
27,905
4,279+
22,000
27,496
5,084+
1,236+
17,138
25315,993
241+
3,843
1,32712,832
5017,949
1575,980
$205,037
$13,380+
COMMENT ON CHANGES V ® K ENDED NOVEMBER 19, 1930
Total earning assets of the System showed a decrease of $21,-206,000 for
the current statement week. The changes by classification consisted of increases of
$13,380,000 and $162,000 respectively in bills discounted and bankers acceptances
held under sales contracts, and decreases of $5,517,000 in outright purchases of
government securities and $29,231,000 in outright purchases of bankers acceptances.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
”
r
Money
Market
DECLASSIFIED *
Authority
H
0 * \b G ^ |
|
Easy conditions continued to prevail in the call money market
during the past week. During at least part of each day funds were ob
tainable in the outside market as low as 1 per cent, and at all times
the supply of money was abundant. The Stock Exchange rate remained
at 2 per cent throughout the period* Federal funds temporarily dipped
to 1/4 per cent, but the closing quotation of the period was l/2 - 3/4
per cent, a figure similar to that of a week ago*
The Treasury bill sale consummated on the 17th exceeded by
$35,000,000 Treasury bill maturities in the local money market, but
this discrepancy was offset to a considerable extent by securities pur
chased here in replacement of maturing Treasury bills held in Federal
reserve portfolios* Other losses occurred through increased currency
-requirements, but, because of the large surplus of reserves existing
at the beginning of the week and gains in commercial transfers and gold
imports, the Reserve System acceptance portfolio showed a decline. The
net result of the moderate loss of funds to the market from the afore
mentioned transactions, together with a sizable rise in the bank’
s re
serve requirements* was the absorption of most of the excess of bank
reserves, so that by Thursday the 20th reserve balances were not
greatly above the required level.
Activity in fixed date accommodation continued within narrow
limits at practically unchanged bid and asked quotations for all maturi
ties# The trading rate for 90-day loans, at 2 1/2 per cent, was at
the level of previously reported transactions* Four months money
loaned on Thursday, the 20th, at 2 1/4 per cent, down 1/4 per cent
from the previously reported transaction.
Prime commercial paper continued to be quoted at 2 3/4 and
3 per cent, with dealers encountering resistance from the banksto offer
ings at the lower level* Turnover generally was limited by the small
quantity of new paper that entered the open market.
Government
Security
Market
The market for United States Government securities reflected
a rather strong tendency during the current statement week. The demand,
which was greater than the supply, was especially good for the short
term issues and the Fourth 4 l/4s. Prices of both the short and long
term issues again advanced to higher levels, the average yield on the
short-term governments at dealers* offering prices at the close of the
statement week being about 1*41$ as compared with 1.49# last week,
while the average selling price for the long-term bonds again reg
istered a new high level for the year of 105.21 as compared with the
previous high for the year of 105.13 established during the previous
week.
Dealers* Offering Prices at the Close of the Current Statement VYeek
and Net Changes from the Close of the previous Statement Week
Net
Approx,
Change
Price
Yield
Issue
----25#
To yielc
3 1/4# Cert, of Ind. due Dec. 15, 1930
»
+2/32
1.42#
2 7/8#
"
"
" June 15, 1931 100 26/32
1*59#
” *»
Sept. 15, 1931 100 20/32
2 3/8#
+3/32
3 1/2# Treasury Notes Series **AW and nBfr
1.29#
called for payment Mar.15, 1931 100 22/32
+1/32
- - 1.54#
3 1/2# Treasury Notes due Dec. 15, 1932 101 3/32
3/8# discount
Treasury Bills w Dec. 16 & 17, 1930 1 5/8# tt
3/8#
1 5/8# ,f
"
w Feb. 16* 1931
Reproduced from the Unclassified I Declassified Holdings of the National Archives
~
'•*
f
DECLASSIFIED'
“~|
t }D • \
( ji
Authority
Closing Prices on New York Stock Exchange at the Close of
the Current Statement Week and ^et Changes from
Close of the Previous Statement Week
Net
Net
Change
Price
Change
Issue
Issue
Price
1944-54 108 25/32 +1/32
1st 3 l/ Z s 101 18/32 ♦7/32 Treas, 4s
113 7/32 ---4
l/4s
1947-52
1st 4 l/4s 102 28/32 +7/32
«
4th 4 1/4s 10 3 22/ 32 ♦ 3/32
"
3 3/4s 1946-56 106 25/32 .---3 3/8s 1943-47 102 21/32 +2/32
3 3/8s 1940-43 102 7/32 ---Bankers
■acceptances
Dealers* offerings of unendorsed bankers acceptances con
tinued at the following rates during the current statement week:
1 7/8 per cent for 30s, 60s and 90s; 2 per cent for 120s, and 2 1/8
per cent for 180-day bills*
Reports
week
ending
Nov. 19
Boston reports that there ?/as some slackening in the demand
for bills in its district during the past period* Dealers purchased
over $7,000,000 bill^ from acceptors and sold only $2*600,000, Most
of their surplus bills, amounting to $5,600,000, were forwarded to
their offices in other cities* Offerings to the Reserve Bank were
exceedingly light. In New York conditions in the bill market were
practically the same during the week as they have been for the past
two weeks with dealers able to sell all of the bills which came into
their hands and accepting and discounting banks continuing to with
hold bills from the market. Rates were unchanged. Philadelphia
reports that its acceptance market was less active, Theiewere very
few new bills offered to dealers, indicating that banks were probably
holding rather than celling. Bills generally were scarce, portfolios
decreasing.
Chicago'reports that the bill market in its district
continued very quiet.
Dallas reports that there was a slightly
improved demand for bills in its district and offerings to the re
serve bank larger*
• OPERATIONS FOR ACCOUNT OF UNITED STATSS TREASURY
Transactions consummated under Treasury authorization
(exclusive of Treasury financing operations) during the current
statement week were as follows:
Sales of $
79,150 - 4 1/4$ Fourth Liberty Loan bonds, account
Foreign Service Retirement and Disrability Fund
200,000 - 3 1/2$ Treasury notes due December 15, 1932*
account Alien Property Custodian
1,000*000 - 4 1/4$ Fourth Liberty Loan bonds, account
Government Life Insurance Fund
$1,279,150 - Total Sales
'•
■ N'-JIIP^
W
Reproduced from the Unclassified / Declassified Holdings of the National Archives
PWJ
*^"‘"*^11— —
— I—
iM ^ — P "~
DECLASSIFIED *
r
T4
Authority
Q
>
•\
..... IJI
~“ |
h G ^ j jI
4
/
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week the following transactions were
effected in the System Account:
Redemption at
maturity of
Sales to Foreign
Correspondent of
Exchanges in the
market of
Total
$28,214,000 - Treasury bills due Nov, 17, 1930, which
wera replaced by purchase in the market
of a like par amount of Treasury bills
due Feb. 16, 1931.
1,793,000 - Treasury bills due Feb. 16, 1931, which
were replaced by purchases in the market
of a like par amount of 2 3/8# certifi
cates of indebtedness due Sept. 15, 1931*
24:,$50,000 - 3 1/2# Treasury notes called for payment
March 15, 1931, for a like par amount of
Treasury bills due Feb, 16, 1931, and
2 3/ 8# certificates of indebtedness due
Sept. 15, 1931, and
1,000,000 - Treasury bills due Feb, 16, 1931, for a
like par amount of 2 3/8# certificates
___________
of indebtedness due Sept, 15, 1931*
$55,957,000
On November 14 the Federal Reserve Bank of Atlanta asked to be relieved
temporarily of $5,000,000 of its participation of government securities in the
System Account and on November 17 the Federal Reserve Bank of St, Louis asked to
be relieved temporarily of #10,000,000 of its participation of government securities
in the System Account.
These securities were taken over into the participation of
the Federal* Reserve Bank of New York on November 14 and November 17 and apportioned
on November 17 and November 18, respectively, to the other Federal reserve banks,
all of which expressed a willingness to participate.
These transactions did not affect the total holdings in the Account, which
remained at the close of business Wednesday, November 19, 1930, at $402,300,000.
The participations by Federal reserve "banks and the classification of issues at the
close of the statement week were as follows;
PARTICIPATION BY FEDERAL RESERVE BANKS
RECAPITULATION OF HOLDINGS BY M/1TURITIES
Boston
$ 46,625,500
Dec, 16, 1930 - Treas. Bills
$>13,500*000
V
New York
78,012,000
12,500,000
Dec, 1 7 , 1930 ti
f!
Philadelphia
38,523,000
Feb. 16, 1931 43,707,000
Cleveland
49*255,000
Dec. 15, 1930 - 3 1/4# 0/1
44,245,000
Richmond
16,695,500
June 15, 1931 - 2 7/8# w
82,131,000
Atlanta
5,146,500
Sept, 15, 1931 - 2 3/8# f»
33,087,000
Chicago
63,425,500
Mar. 15, 1931 - 3 1/ 2# T/N
St. Louis
5,526,000
129,120,100
Series "A" and "B"
Minneapolis
18,742,500
Dec. 15, 1932 - 3 1/ 2# T/N
43,411,900
Kansas City
29 ,639 ,500
0<3t « 15, 1938 •4 4 1/4# L /L
598,000
Dallas
19,900,000
San Francisco
30,809,000
To tals
$402,300,000
$£02,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED '
Authority
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT' SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
__________________ EROM NOVEMBER 15 TO NOVEMBER 19, 1950, INCLUSIVE__________________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Net
Net
Decrease
Increase
Purchases
Sales
0
Boston
# 6,375,500
#1,153,000
# 7,528,500
0
4,161,000
New York
21,2y2,500
25,453,500**
0
1,278,000
5,236,500
Philadelphia
6,514,500
1,565,000
0
Cleveland
8,702,000
8,267,000
865,000
0
Richmond
2,239,500
3,104,500
5,000,000
Atlanta
0
5,759,000
759,000
2,224,500
0
Chicago
10,834,000
8,609,500
0
9,748,000
St, Louis
12,132,500
2,384,500
0
494,000
Minneapolis
3,054,000
2,560,000
0
906,500
Kansas City
4,942,500
4,036,000
0
659,000
Dallas
2,705,500
3,364,500
0
San Francisco
4,147,500
1,442,000
5,589,500
Totals
$14,748,000
#81,796,000
114,748,000
§81,796,000*
*This amount includes $>28,214,000 Treasury Bills which matured November 17, 1930,
^Includes #15,000,000 G-overnment securities taken orer“
temporarily from the Federal
reserve banks of Atlanta and St. Louis*participations in the System Account as
explained on page 4 of this report.
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Maturities
Purchases
Issue
& Sales
Issue
Boston
C-1930-32 T/N
#
11,250
$
0
New York
1,200,000
Misc. Gov’
t Sec.
4,257,000
Misc. Gov't Sec,
3,000,000
Tr. Bills 11/17/30
ft
tt
w
643,650
Atlanta
685,050
Misc. Gov’
t Sec.
tf
»
«
tf
tt
t*
Minneapolis
969,700
879,150
Dallas
500,000 TS-1931 C/I
0
Totals
#3,313,350
#8,832,450
—
BANKERS ACCEPTANCES
(000 Omitted)
Boston
New York
Holdings
Nov, 12
$ 13,116
32,101
0
Phila#
Cleve,
18,490
Richmond
9,815
Atlanta
9,145
Chicago
16,005
St. Louis
6,910
Minn,
4,764
Kan, City
8,418
Dallas
6,216
San Fran,
24,457
Totals
#149,437
Bills held overnight
NOTE:
Other Holdings
Close Nov. 19/30
Other
Sales
Contracts
Bills
# 395
| 2,247
0
19,947
By Allot Matur
Hoi dings
Purchased ment from ities
Nov. 19
Own Mkt,
New York & Sales
# 12,780
985
4 1,321
§ o
25,525
3,707 R.
10t283
0
9,398 A.
0
0
0
0
0
2,945
0
15,569
0
4,261
3,0 36
1*340
40 R,
715
2,020
8,550
0
1,275
80 M
1,538
853
8,540
0
1,823
434 "
1,988
3,743
14,684
4,068
1,244
0
1,560
717
6,067
0
1,093
0
470
1,156
4,078
0
698
0
829
0
1,246
911
8,001
571 "
5,049
598
2,336
0
911
538 tf
903
3,568
22,330
3,987
2,095
#14,768
#9,398
#33,032
•5131,173
#41,049
#5,626
by New York for distribution to other Fed. Res. Banks 425
Total - - - - ;;41,474
R. indicates Retained and A. indicates Allotted in the above statement*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED'
Authority
j0 *\
|
^ I
i
I
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING- NOVEMBER 19, 1950
(000 Omitted)
1-30 days
- .1 V 81o
51-60 days
l 7/ef.
61-90 days
1 7/8%
Over 90-days
-
$7,398
$4,678
40*
5
280
582
$1,029**
G
New York
Richmond
Atlanta
Chicago
Dallas
San Francisco
Totals
0
75
100
189
45
$7,807
372
0
0
0
0
0
$15,105
40
80
454
571
538
$1,455
0
$14,768
0
0
54
0
121
$5,506
Total
*.*Purchased at 2%,
-** 61 - 75 day bills.
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING NOVEMBER 19, 1950
(000 Omitted)
(Excluding Salas Contracts)
Bankers
Acceptances
Government
Securities
Purchased
Sold
Matured
Totals
|85,110
59,415
51,214
$>5,517-
Total
$14,768
0
33,052
$18,26410,967-(Net Change
_ _ _ _ _ 1 -day holdover
& other bills)
$29,231-
#99,878
59,413
64,246
$25,78110,967-(Net Change
__________ 1-day holdover
& other bills)
$34,748-
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES NOVEMBER 19, 1950
(QQQ o m i t t e d )
r
(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 6
months
Total
$ 0
61,283
$ 79,766
41,242
$ 0
55,766
$45,707
19,865
$170,206 $502,094 $595,775
118
0
178,275
#61,282
$121,008
$55,766
$65,572
$170,324 $302,094
$774,046
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
r-
Authority ^ j 0 •
■
' ’
■
~“ |
I
i
i
Hovsmber 15, 1930
Dear Mr*
atieson:
I
acknowl®dg# receipt of and shall bring
to the a ? ,v,H
of the members of the Board your
lotJ ~ t f ^ M i b e r 14th, addressed to tho tknrernor#
iiolu'j’
n , rop-vr1- of open mrkot operations for the
peri . cror„ ^oryenber 6, 1950 to Kovomber 12, 1930,
inclusive*
Very truly yours*
S* U # ?4eClelland#
Assistant Secretary
Mr* ■%
Wittes on,
Assistant Deputy Governor,
Federal Reserve Bank,
lew York, H* Y*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority
n.
F e d e ra l R e s e rv e B a n k
of
Ne w Yo r k
CONFIDMTI-AL
November 14, 1930
Mr. £. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Goldenweiser:
Enclosed is a report of open market operations for
the period from November 6, 1930 to November 12, 1930 inclu
sive, together with data received from Federal reserve banks,
Veia
sr you]
W. B. Matteson
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
I
Fe d e r a l R e s e r v e B a n k
of
Ne w Yo r k
P £, R S 0 H A L
November 14, 1930
Dear Governor Meyer:
We are enclosing, for your files, a report of open
market operations for the period from November 6, 1930 to
November 12, 1950 inclusive, together with data received
from Federal reserve banks.
W. B. Matteson
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Enel
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority
Q •\
^ |
FOR SPECIAL CIRCULATION
n m a n n ii
'T p t } 1
>.*U—
PLEASE REAi .4 0 M P T L Y , INITIAL
Mr. Hamlin
James ^
Mr.
Miller
/
Mr.
Cunningham
>| Gov # Meyer
^ „-,-nTrlv
£ XC.&'
— .
ft
Y S Vji*
Mr. Pol a
Fe d e r a l R e s e r v e B a n k
of
Ne w Yo r k
CONFIDENTIAL
November 14, 1950
Dear Governor Meyer:
Enclosed is a report of open market operations
for the period from November 6, 1950 to November 12, 1950
inclusive, together with data received from Federal reserve
banks.
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Enel,
m c m v m
f; dv 1 u 1930
QPFI C ® O F
THJ®
i
M'i'WIlf nm
mm liuiL.iir ,i iWgM-^iL; , j
n:.Jl" r v*m
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority
^
>Q •
|
|
jI
CONFlDEETTIAL
REPORT OF O r t MARKET OPERATIONS FOR WEEK ENDED NOVEMBER 12, 1930
Holdings of Earning Assets of Federal Reserve Banks from November 15, 1929 to Date
(000 Omitted)
-1929Nov. 13
Nov. 27
Dec. 31
-1930Jan. 29
Feb. 26
Mar* 26
Apr. 30
May
28
25
June
July 30
Aug. 27
Sept. 24
o<rt. 29
"Nov.
5
Nov.- 12
TOTAL
EARNING
ASSETS
#1,606,304
L, 514,460
1,547,517
GOVERNMENT SECURITIES
Ou tri gh t
Sales
Purchases
Contracts
$311,261
$ 1,295
322,063
4,035
487,292
23,295
1,154,379
1,138,522
1,001,090
982,225
. 958,776
916,038
911,554
967,034
973,483
975,021
1,006,197
1,006,586
476,466
477,6l0
526,284
527,124
529,450
576,560
576,323
601,913
601,656
601,438
601,481
601,290
70
5,145
2,715
2,385
320
410
45
0
150
0
50
0
BANKERS ACCEPTANCES
Outright
Sales :
Contracts
Purchases
§287,109
$ 12,403
7,271
250,044
236,974
155,235
185,677
232,521
143,772
161,846
130,066
94,735
127,965
159,137
192,161
161,906
176,416
201,878
72,795
66,785
112,710
47,718
45,494
7,578
2,797
4,137
5,583
3,752
9,186
5,464
BILLS
DISCOUNTED
$971,355
912,349
632,421
406,941
342,781
206,829
233,452
247,046
231,505
197,101
193,275
167,162
201,603
212*767
191*657
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
_______PORING WEEK ENDED NOVEMBER 12, 1930___________
(000 Omitted)
Bos ton
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
GOVERNI/PUNT
Balance
Nov. 12
$ 46,173
187,340
52,252
57,855
16,983
12,765
81,128
23,899
25,921
28,736
29,229
39,009
$601,290
SECURITY BANKERS ACCEPTANCES
Balance
Net
Net
Nov. 12
Change
Change
$ 0
$ 13,116
4
94+
3,356+
0
32,101
0
0
0
85-
0
0
106-
0
0
0
$191-
0
0
18,490
9,815
9,145
16,005
6,910
4,764
8,418
6,216
24,457
1,024610+
381+
270+
261+
249+
823+
289+
1,356+
52,441
18*797+
$201,878
$25,462+
BILLS DISCOUNTED
Balance
Net
Nov. 12
Change
$ 10,799
$ 2,400+
32,768
21,31018,459
72+
25,002
274+
7917,721
1,46922,412
2,46815,902
16,246
2,529+
1083,602
618+
14,159
8,450
5411,0286,137
$191,657
$21,110-
3
O
yyt
%
oo
CKANGES WEEK ENDED NOVEMBER 12, :1930
'Total earning assets of the System showed an increase of $389*000 for
the current statement week. The changes by classification consisted of an increase
of $25,462,000 in outright purchases of bankers acceptances and decreases of
$191,000 in outright purchases of government securities* $21,110,000 in bills
discounted and $3,772,000 in investments held under sales contracts. The changes
in the latter item consisted of decreases of $50,00Q and $3,722,000, respectively,
in government securities and bankers acceptances.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
”
T
■aey
Market
DECLASSIFIED *
Authority
Q -
\ 6*5 5
1
|
T
ng the past week the call mone market in New York has
changed froiu. che slightly finner condition
prevailed in the first
few days of the month to a situation of comparative ease. The varia
tions have been entirely in the rate for loans in the outside market)
as the official Stock Exchange quotation has been 2 per cent throughout.
Beginning on Thursday, the 6th, the outside rate went no lower than
1 1/2 per cent and on the following day a 2 per cent rate alone was
quoted. On the 10th, however, larger offerings began to appear with
concessions to 1 1/2 per cent granted, a condition that existed until
Thursday, the 13th, when outside market loans were placed as low as 1
per cent. The quotation for Federal funds worked as high as 2 - 2 1/4
per cent on Friday, the 7th, but by the following Thursday had returned
to 1/2 - 3/4 per cent.
At the opening of the past reporting week a moderate deficit
existed in reserve accounts of the money market banks, so that on
Friday the City banks had to increase their Reserve Bank borrowings to
$34,000,000 in order to balance their average position for the period
ended that day, despite an inflow of funds from other centers and an
increase in Federal Reserve bill holdings. In the succeeding days
return of currency from circulation, further net inward movement of
funds from other districts, and a gold import were accompanied by re
payment of New York City bank borrowings and the establishing of a sub
stantial surplus of reserves as the reporting Y/eek closed.
The time money market has remained quiet during the past week
and rates have been unchanged. Limited amounts of 3 and 4 months money
have been placed at 2 1/4 and 2 1/2 per cent respectively.
While sales of prime commercial paper at 2 3/4 per cent have
increased to sufficient volume to change the effective selling range
quoted by dealers to 2 3/4 - 3 per cent, there is still considerable
sales resistance to offerings at the lower level. Investment demand,
at the same time, is largely for the best grade of names, little
interest being evidenced in the smaller good names, which may be ob
tained at slightly higher rates. Activity of the market is hampered
by the extremely small supply of paper available.
Government
Security
Market
The market for United States Government securities continued
fairly active, with the demand gdod for practically all issues.
Prices of both the short and long-term issues showed small net gains
for the week, the average yield on the short-term governments at
dealers* offering prices at the close of the statement week being about
1*49$ as compared with 1.53$ last week, while the average selling price
for the long-term bonds again established a new high level for the year
of 105.13 as compared with the previous high for the year of 105.11 made
during the previous statement week.
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement Week
3
2
2
3
1/4$
7/8$
3/8$
1/2$
3 1/2$
1
Net
Approx,
Yield
Price
Issue
Change
Ind.
To
yield
1.30$
due Dec. 15, 1930
Cert, of
11
♦»
1.57$
+1/32
" June 15, 1931
100 24/32
4-3/32
1.72$
*»
"
"
" Sept *15, 1931
100 17/52
Treasury notes Series "An and
-1/32
called for payment Mar.15,1931 100 21/32
1.51#
1.61$
+2/32
Treasury notes due Dec. 15, 1932 101 3/32
Treasury Bills " Nov,i 17, 1930 1 5/8$ bid - none offered
”
"
** Dec. 16 & 17, 1930 1 5/8$ - 1 3/8$ discount
Reproduced from the Unclassified I Declassified H
o
i d
i n
g
T
o
f t h
e
T
j a
t i o
^
>'
n
a
r A
r c h
i v e
^
DECLASSIFIED'
Authority ^ } Q •
\
hi 5 |
j
j
3
Closing Prices on 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 1/8s
1st 4 l/4s
4th 4 l/4s
Price
101 11/32
102 21/32
103 19/32
Bankers
Acceptances.
Net
Change
+ 2/32
-
_
Issue
Treas. 4s
1944-54
tt
4 l/4s 1947-52
tt
3 3/4s 1946-56
»t
3 5/8s 1943-47
tt
3 3/8s 1940-43
_
-1/32
Price
108 24/32
113 7/32
106 25/32
102 19/32
102 7/32
Net
Change
-4/32
+2/32
+2/32
+ 3/32
+3/32
Dealers* offerings of unendorsed bankers acceptances continued at the following rates during the current statement week:
1 7/8 per cent for 30s, 60s and 90s, 2 per cent for 120s and 2 1/8
per cent for 180-day bills*
Reports
week
ending
Nov. 12
Boston reports that the supply of bills in its local market
fell off considerably during the reporting period.
There was a good
local demand for bills but local dealers were not able to fill all
their orders due to the small supply caused by local banks holding
their own bills.
Ninety day bills continued in best demand.
In New
York dealers* purchases increased slightly as compared with the past
- two weeks.
Their sales, however, continued to exceed their purchases
and aggregate portfolios decreased by about $12,000,000 to $26,000,000,
the lowest they have been since the end of July.
Several dealers re
ported they could have sold more bills of maturities under 90 days if
bills had been available.
Philadelphia reports that its acceptance
market was a little more active.
There was more improvement in the
volume of new bills offered although banks were inclined to hold
rather than sell.
portfolios low.
The demand generally greatly exceeded the supply Chicago reports that the bill market in its district
continued very quiet.
Dallas reports that there was continued dullness
in its bill market during the past week with practically no demand and
very light offerings to the reserve bank.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
”
f
DECLASSIFIED'
Authority
D•
|
1
|
I
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Sales of $
108,000 - Fourth 4 1/4$ Liberty Loan bonds, account
German Special Deposit Account
400,000 - 3 1/2$ Treasury notes due Dscember 15, 1932, account
Alien Property Custodian
1,000,000 - Fourth 4 1/4$ Liberty Loan bonds, account
Government Life Insurance Fund
$1,508,000 - Total Sales
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
Diring the current statement week exchanges were effected in the holdings
In the System Account of
$6,500,000 - 3 1/4$ certificates of indebtedness, due
December 15, 1930
2.000.000 - 2 7/8$ certificates of indebtedness, due
June 15, 1931
1.000.000_- 3 1/2$ Treasury notes called for payment
__________ .
March 15, 1931
a total of $9,500,000 for a like par amount of other issues of short-term governments
as follows:
$1,500,000 - Treasury bills due November 17, 1930
"
"
"
Itecember 17, 1930
5.000.000
2 3/8$ certificates of indebtedness, due
1 * 0 0 0 ,0 0 0
September 15, 1931
2.000.000
3 1/2$ Treasury notes due December 15, 1932
$9,500,000
These exchanges, which ?/ere made mostly as an accommodation to the market, were
effected at prices advantageous to the System Account and did not affect the total
amount of holdings in the Account, which remained at the close of business
Wednesday, November 12, 19X, at $402,300,000. The participation by Federal
reserve banks and the classification of issues at the close of the statement week
were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
RECAPITULATION OF HOLDINGS BY MATURITIES
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
$ 45,472,500
73,851,000
37,245,000
47,690,000
15,830,500
10,146,500
61,201,000
15,274,000
18,248,500
28,733,000
19,241,000
29,367,000
$402,300,000
Nov. 17,
Dec. 16,
Dec. 1?,
.Dec. 15,
June 15,
Sept«15,
Mar. 15,
Series
Dec. 15,
Oct. 15,
1930 - Treasury Bills $ 28,214,000
tt
1930 "
13,500,000
tt
1930 "
12,500,000
1930 - 3 1/4$ C/I
44,245,000
1931 - 2 7/8$ tt
82,131,000
1 9 3 1 - 2 3/8$ tt
23,630,000
1 9 3 1 - 3 1/2$ T/N
154,070,100
"A" and "Bn
1 9 3 2 - 3 1/2$ if
43,411,900
1 9 3 8 - 4 1/4% 4th L/L
598,000
$402,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED'
Authority
iD *\
|
^ I
!
I
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
___________________FROM NOVEMBER 6 TO NOVEMBER IS, 1950, INCLUSIVE___________________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
JI3t. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Sales
$1,073,500
1,743,500
879,500
1,126,000
374,500
239,000
1,445,000
361,000
431,000
679,000
454,500
693,500
$9,500,000
Purchases
$1,073,500
1,743,500
879,500
1*126,000
374,500
239,000
1,445,000
361,000
431,000
679,000
454,500
693,500
$9,500,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Atlanta
Minneapolis
Totals
Issue
Purchases
t Sec.
|285,850 Mi sc* G o v ’
«
*»
tt
500,200
Sales
$370,750
606,200
$786,050
$976,950
Issue
Mi! ic. Gov*t Sec.
tt
rr
tt
BANKERS ACCEPTANCES
(000 Omitted)
Boston
New York
Phila.
Cleve.
Richmond
Atlanta
Chicago
St.Louis
Minn.
Kan. City
Dallas
San Fran.
Holdings
Nov. 5
$ 13,022
28,745
0
19,514
9,205
8,764
15,735
6,649
4,515
7,595
5,927
23,101
Purchased
Own Mkt.
$
200 R
5,297 ”
13,450 A
0
0
0
0
0
0
0
0
32 R
883 "
By Allot Matur
ment from ities &
New York
Sales
$ 1,460
$ 1,566
• 1,941
0
Holdings
Nov. 12
$ 13,116
32,101
0
2,959
486
753
2,418
670
374
314
528
1,188
0
18,490
9,815
9,145
16,005
6,910
4,764
8,418
6,216
24,457
0
1,935
1,096
1,134
2,688
931
623
1,137
785
1,661
Other Holdings
Close Nov. 12,1930
Sales
Other
Contracts
Bills
$ 268
$ 2,247
932
29,012
0
0
0
0
1,310
0
0
0
0
2,954
2,945
3,036
1,275
1,719
4,068
1,093
698
911
911
2,095
$13,197 $149,437
$5,464
$50,010
$19,862
$13,450
Totals
$142,772
Bills held over night by New York for distribution to other Federal Res.Bks . 2,431
Total *. - - - - - - - - - $52,441
NOTE:
R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
““
r*
DECLASSIFIED *
Authority
•*.
I
!
I
MATURITIES AND RATES OH BILLS PURCHASED T«/ESK ENDING NOVEMBER 12, 1930
TOOO "omitted)
............. ...
)»'
wrn m n *..... ............. .. ......... ' ..........i n *..... » '*......."MUt SU*
1-30 days
1
Boston
New York
Dallas
San Francisco
Totals
»»■m i' ) ' hiiom— ^ w ui.n .............. ..
31-60 days
1 7/8#
61^-90
ys
1 7/8#
0
* 0
5,603*
3
. 258
$
$11,158
$5,858
$2,846
t
10,973*
27
159
-■■■. m ...
........... mm mi mu
.................
...........
Over 90-days
Total
200**
2,172*
2**
472
$
200
18,747
32
883
$19,862
* Purchased at 1 7/8 to
^Purchased" at 2#
RECAPITULATION OF PURCHASES AND SALES OF GOVEHNOTT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING NOVEMBER 12, 1930
(000 Omitted)
(Excluding Sales Contracts)
Bankers
Acceptances
Government
Securi ties
Purchased
Sold
Matured
Totals
$10,286
10,477
0
Total
$19,862
0
13jrl97
$ 6,665+
18,797+(Net Change
________ 1-day holdover
& other bills)
$25,462+
191-
$30,148
10,477
13,197
$'6,474+
18,,707+(Net Change
_______ 1-day holdover
& other bills)
$25,271+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES NOVEMBER 12, 1930
(^00~0mltted]
'
'
’
(Including Sales Contracts)
Within 15-days
Gov’
t Securities
Bills Purchased
Totals
16-30
days
31-60
days
61-90
.days
91 days6 months
$ 31,214
78,168
$
0
43,344
$ 79,766
56,358
$
0
$195,090
29,447 _______25
$109,382
$43,344
$136,124
$29,447 $195,115
Over 6
months
Total
$295,220 $601,290
0
207,342
$295,220 $808,632
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority 1^> Q • \
^
|
Hovember 8, 1930.
Bear Mr. Mattesens
I
acknowledge receipt of and shall bring to the
attention of the mambars of the Federal Reserve 3oard
your letter of Hovember 7th, enclosing a report of
ope3
a market operations for tho period from October 30,
1930 to November 5, 1930, inclusive.
Very truly yours.
S. M. McClelland,
Assistant Secretary*
Mr. f. B. aafcteson, Asst. Deputy Governor,
Federal Reserve Bank,
lew York Gity, I. Y.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED *
Authority
0
A-
F e d e ra l R e s e rv e B a n k
of
CONFIDENTIAL
Ne w Yo r k
&
November 7, 1930
Mr. E* A* Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board, ,
Washington, D. C.
Dear Mr* Goldenweiser:
Enclosed is a report of open market operations for
the period from October 30, 1930 to November 5, 1930 inclu-
W, B. Eatteson
Assistant Deputy Governor
u
Reproduced from the Unclassified I Declassified Holdings of the National Archives
_
DECLASSIFIED^
"
Authority l ^ i O *
~“ |
!
F e d e ra l R e s e rv e B a n k
of
Ne w Yo r k
P E R S O N A L
November 7 , 1930
Dear Governor Meyers
We are enclosing, for your files, a report of open
market operations for the period from October 30, 1930 to
November 5, 1950 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'
A uthority ^
J
•FOR s p e c i a l CIRCULATION
&tA0 ]T.r,?::
» INITIAL ASD PJwTU-- V
Gov* Meyer
^•K’
* Hamlin V-^*
k- * * ^ ^
*
Mr. Miller
Mr,
j0
^
|
^ ^ I
!
I
>■’
/
r.
*
F e d e ra l R e s e rv e B a n k
of
Ne w Yo r k
CONFIDENTIAL
November 7, 1930
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from October 30, 1930 to November 5, 1930 inclu-
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 •
GOWITJsmWL
REPORT OF OPEN MARKET OPERATIONS FOR W3$K SNEED NOVEMBER 5* 1930
Holdings of Earning Assets of Federal Reserve Banks from November 6, 1989 to Date
{000 Omitted)
GOVERNMENT SECURITIES
BANKERS ACCEPTANCES
BILLS
TOTAL
Sales
Sales
Outright
EARNING
Outright
-1929Purchases
Contracts
Purchases Contracts
DISCOUNTED
ASSETS
# 24,963
#990,880
Nov. 6
| 9,775
#305,411
#1,637,634
#282,974
Nov. 27
912,349
322,063
250,044
7,271
4,035
1,514,460
236,974
23,295
155,235
632,421
Dec. 31
1,547,517
487,292
-1930185,677
Jan. 29
1,154,379
476,466
72,795
406,941
70
342 ,.781
1,138,522
66,785
Feb. 26
477,610
232,521
5,145
206,829
Mar. 26
2,715
143,772
112,710
526,284
1,001,090
161,846
527,124
2,385
47*718
233,452
Apr^ 30
, 982,225
247,046
130,066
45 ,.494
May 28
958,776
529,450
320
7,578
94,735
231,505
June 25
91%,038
410
576,560
127,965
2,797
197,101
July 30
45
911,554
576,323
159,137
4,137
Aug. 27
601,913
193,275
967,034
0
5,583
192,161
167,162
S6pt. 24
973,483
601,656
150
201,603
161,906
3,752
Oct. 29
601,438
975,021
V
212,767
176,416
9,186
Nov. 5
1,006,197
601,481
50
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
_____________ DURING WEEK ENDED NOVEMBER 5, 1930_____________
(000 Omitted)
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chi cago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Balance
Net
Nov, 5
Change
# 46*173
$ 1187,340
0
52#252
0
57,855
0
16 r983
0
12,850
81+
81,128
0
23,899
0
26,027
3628,736
0
129,229
0
39,009
#601,481
#43+
BANKERS ACCEPTANCES
Balance
Net
Nov. 5
Change
# 13,022
#
594+
4,997+
28,745
0
0
627+
19,514
9,205
1,138+
8,764
825+
2,59915,*735
6,649
336+
4,515
111+
7,595
801+
5,927
363+
3,366+
23,101
33,644
3,951+
#176,416
#14,510+
BILLS DISCOUNTED
Net
Balance
Nov. 5
Change
# 8,399
#
74854,078
15,531+
18,387
1,39624,728
1,15617,800
1,03623,881
263+
1,077+
18,370
13,717
2,6533,710
4381,487+
13,541
4588,991
7,165
691+
#212,767
#11,164+
COMMENT ON CHANGES WEEK ENDED NOVEMBER 5, 1930
Total earning assets of the System showed an increase of #31,176,000 for
the current statement week.
The changes by classification consisted of increases
of $43,000 and #14,510,000, respectively, in outright purchases of government
securities and bankers acceptances, #11,164,000 in bills discounted, and #5,484,000
in investments held under sales contracts.
The changes in the latter item con
sisted of an increase of #50,000 in government securities and #5,434,000 in bankers
accgptances.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED '
Authority
£,T).
Jm
Money
Market
Government
Security
Market
Turn of the month and holiday influences caused a slight
firming in call money during the past week* The Stock Exchange quota
tion showed no change from the 2 per cent rate in effect throughout
October, but in the outside market the granting of concessions became
less of a factor as the period progressed so that by T h u r s d a y , the
6th, only a small amount of money was placed at 1 1/2 per cent, as
against large offerings at 1 per cent a week earlier. The quotation
for federal funds rose to 1 3/4 - 2 per cent from the 1/4 - 1/2 per
cent rate in effect a week ago.
At the opening of the reporting week the New York City banks
had rather large surplus reserves, but losses to the market during the
week in commercial and agency transactions, principally through an out-'*
flow of funds to other parts of the country and currency withdrawals
from the Reserve Bank, were about twice the size of the opening sur
plus of reserves. In order to average their position for the reserve
period ending with the Tuesday holiday, New York City banks on Monday
sold a moderately large volume of bills to the Reserve Bank and in
addition borrowed #39,000,000. In the two subsequent business days,
the City banks retired part of these borrowings, but the reserve
position of the banks on these days reflected the narrowing of the
supply of funds in New York that has occurred during the past week.
General lack of interest continued to prevail in the market
for fixed date accommodation, with bid and asked rates down about 1/4
per cent from a week ago to new low levels in recent years. Current
quotations are: 30 days, 1 3/4 - 2 per cent; 60 days, 2 per cent
flat; 90 days, 2 - 2 1/4 per cent; 4 months, 2 1/4 - 2 1/2 per cent;
5 and 6 months, 2 1/2 - 2 3/4 per cent. Trading activity during the
week appeared to be confined chiefly to 4 months loans at 2 1/2 per
cent, and to 6 months loans at 2 3/4 per cent.
Dealers* offering lists contained an increased proportion
of especially choice commercial paper priced at 2 3/4 per cent, but
the actual movement of this paper into investors1 portfolios during
the past week was limited to only occasional transactions*. Dealers
reported a ready market for the average run of prime names at 3 per
cent, which they continue to quote as the prevailing rate. The market
generally was rather inactive due to the scarcity of material.
The market for United States Government securities continued
moderately active during the current reporting period with the demand
good for ell issues, especially for the short-term issues and the Fourth
4 l/4s. Prices advanced fractionally for the week* the average yield
on the short-term governments at dealers* offering prices at the close
of the week being 1.53$ as compared with 1.71$ last week, while the
average selling price for the long-term bonds again established a new
high level for the year of 105,11 as compared with the previous high
for the year of 105.05 made on the last day of the previous statement
week#
Dealers* Offering Prices at the Close of the Current Statement Week
and Net Changes from the Close of the Previous Statement W^ek_____
Net
Approx,
Price
Issue
Change
Yield
3 1/4$ Cert* of Ind. due Dec. 15, 1930 100 7/32
1 12
1.67$
2 7/8$
" "
"
" June 15, 1931 100 23/32 ♦4/32
1 . 81 $
2 3/8$
*• " .♦»
»* Sept. 15, 1931 100 15/32 +4/32
3 1/2$ Treasury notes Series "A" and MB"
called for payment Mar, 15, 1931 100 22/32 +1/32
1.53$
1,77$
3 1/2$ Treasury notes due Dec. 15, 1932 101 1/38 ♦fi/32
Treasury Bills due Nov. 17, 1930 1 5/8$ - 1 3/8$ discount
"
**
** Pec, 16 & 17♦ 1930 1 5/8$ - 1 3/8$ "
. $
^
-- -— -
Reproduced from the Unclassified / Declassified Holdings of the National Archives
~
r
”, &
V
DECLASSIFIED'
“1
Authority fc-i 0 • \ h G ^ | |
I
Closing Prices on New York Stock Exchange at the Close of
the Current Statement Week and Net Changes from
________ Close ef the Previous Statement Week______________
'
Net
Issue
Price
Change
Issue
Price
Change
1st 3 1/23 101 9/52 *3/32 Treas.4s
1944-54 108 28/32
+1/32
1st 4 1/4S 102 21/32 +1/32
"
4 l/4s 1947-52 113 5/32
+3/32
4th 4 l/4s 103 20/32 +2/32
"
3 3/4s 1946-56 106 23/32
+3/32
»» 3 3/8s 1943-47 102 16/32
+2/32
"
3 3/8s 1940-43 102 4/32
+2/32
Bankers
Acceptances
Dealers’offerings of unindorsed bankers acceptances were at
the following rates at the dlose of th^ current statement week: 1 7/8
per cent for 30s» 60s and 90S| 2 per cent for 120s, and 2 1/8 per cent
for 180-day bills. This represents a reduction of 1/8 per cent on
180-day bills from the previous week.
Reports
week
ending
Nov, 5
Boston reports that, with call money at 1 to 1 1/2 per cent,
local banks turned to bankers acceptances during the past week, with
the result that nearly all available bills were soon absorbed, necessi
tating dealers to import bills from their offices in other cities to
fill orders*
The supply of bills also showed some increase and, for
the first time in months, was insufficient to meet the demand. There
was little choice as to maturities, but 90-day bills were easier to
move.
In New York the bill market was less active this week than the
previous week. The demand, however, continued to exceed the supply
and dealers* aggregate portfolios were reduced $17,000,000 to
$38,000,000# On October 31, dealers reduced rates 1/8 per cent on
5 and 6 months bills to 2 1/4 bid, 2 1/8 asked. Indorsed bills 1/8
less. No change in other maturities. Dealers’ sales to the Reserve
Bank for System Account were practically nil during the week, while
sales by banks to the Reserve Bank were in fairly substantial amountsr
the bulk of the purchases being offered by two or three banks on the
3rd of November. Philadelphia reports that its acceptance market
was dull; there were practically no new bills and no sales. Dealers
reported that, due to the demand in other districts, their portfolios
were considerably lower.
Chicago reports that there was continued
extreme dullness in the bill market in its district.
Dallas reports
that there was a very light demand for bills in its district during
the past week, with offerings to the Reserve Bank very small.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
_
’»%
'
r
DECLASSIFIED *
Authority
D•\
~~|
^ |
|
1
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
The only transaction consummated under Treasury authorization during the
current statement week was a sale of $200,000 - 3 1/2% Treasury notes due
December 15, 1932 from holdings, account Alien Property Custodian.
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week exchanges were effected in the holdings
in the System Account of
$ 1 , 00 0,00 0
5.000.000
1.000.000
1,500,000
9,000,000
a total of
- Treasury bills due November 17, 1930
”
n
” December 16 and 17, 1930
- 3 1/4% certificates due December 15, 1930
- 2 7/8%
"
" June
15, 1931
* 3 1/2% Treasury notes called for payment
March 15, 1931
$17,500,000 - for a like par amount of various issues of short-term
governments as follows}
$ 5,000,000
4.000.000
6,500,000
2.000.000
- Treasury bills due November 17, 1930
- 2 7/8% certificates due June 15, 1931
*- 2 3/8%
”
" September 15, 1931
- 3 1/2% Treasury notes due December 15, 1932
$17,500,000
These exchanges, which were made to either accommodate the market or to exchange
early maturities for later maturities, were effected at prices advantageous to the
System /ccount and did not affect the total amount of holdings in the Account which
remained at the close of business Y/ednesday, November 5, 1930, at $402,300,000,
The participation by Federal reserve banks and the classification of issues at the
close of the statement week were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
$ 45,472,500
73,851,000
37,245,000
47,690,000
15,830,500
10,146,500
61,201,000
15,274,000
18,248,500
28,733,000
19,241,000
29,367,000
$402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Nov. 17, 1930 Dec. 16, 1930 Dec. 17, 1930 Dec. 15, 1930 June 15, 1931 Sept .15, 1931 M a r . 15, 1931 Series ’
♦A”and
Dec. 15, 1932 Oct. 15, 1938 -
Treasury bills $ 26,714,000
tt
»»
13,500,000
TT
7,500,000
50,745,000
3 1/4% C/I
84,131,000
2 7/8% ”
2 3/8% ”
22,630,000
3 1/2% T/N
155,070,100
"B"
3 1/2% T/N
41,411,900
598,000
4 1/4% 4th L/L
$402,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
................. ......
P
~ "
........-........................
DECLASSIFIED'
I
Authority
ITEMIZED STATEMENT 01 TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_________FROM OCTOBER 50 TO NOVEMBER 5, 1950, INCLUSIVE ______________ _
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Purchases
# 1,977,500
5,212,500
1,620,500
2,074,000
689,500
440,500
2,661,500
665,000
794,500
1*850,000
857,000
1,277,500
Sales
| 1,977,500
5,212,500
1,620,500
2,074,000
689,500
440,500
2,661,500
665,000
794,500
1,250,000
857,000
1*277,500
Totals
$17,500,000
$17,500,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Purchases
Issue
Sales
Issue
$
0
Misc. Govft Sec,
1,000
&
tf
tf
t»
,055,000
5,055,000
Misc. Gov't Sec*
5,
»t
tt
tt
»t
f
t
845,850
765,550
tt
tt
tr
tt
ft.
tt
1,255,750
1.,269,050
t»
V
tt
0
1,000
Boston
New York
Atlanta
Minneapblis
Dallas
m
Totals
$7,154,600
#7;,091,400
BANKERS ACCEPTANCES
(000 Omitted)
Boston
New York
Holdings
Oct,29
Purchased
Own Mkt*
$ 12,428
25,748
$
Phila.
Cleve.
Richmond
Atlanta
Chicago
St 0 Louis
Minn,
Kan. City
Dallas
San Fran*
0
18,887
8,067
7,959
18,354
6,515
4,404
6,794
5,564
19,755
75
7,576
18,424
0
0
0
584
118
0
0
0
7
5,615
R,
"
A,
R.
«
R.
"
By Allot
ment froa
New York
Matur
ities
& Sales
Holdings
Nov • 5
$ 1,969
0
$ 1,448
2,579
# 15,022
28,745
0
2,850
1,458
1,614
5,594
1,592
857
1,622
1,192
1,916
0
2,205
520
1,175
6,511
1,056
726
821
856
2,163
0
19,514
9,205
8,764
15,755
6,649
4, £>15
7,595
5,927
25,101
Other Holdings
Close Nov,5/50 ,
Oth ei*
Sales
Contracts Bilia
$
13
5,429
$ 1,778
15,525
0
0
0
0
1,671
0
0
0
0
4,075
2,350
2,402
1,009
1,469
3# 219
865
555
721
721
1,658
Totals $152,215
$50,195
#18,424
$19,656
$9,186 $32,050
$142,772
Bills held overnight by New York for distribution to other F* R. Banks - - 1,594
tt
ti
ft
tf
tt
tt
tr
tt
”foreign correspondents 0
_ _ - 535,644
Total
-
NOTE;
R indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
_
_
..... ......................................—
PD E C LASSIFIE D *
I
Authority
6
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING NOVEMBER 5, 1930
(000 Omitted)
1-30 days
1 7/8%
31-60 days
1 7/8#
0
9,726*
•157
0
0
0
Boston
New York
Atlante
Chicago
Dallas
San Francisco
#
$9,883
Totals
61-90 days
17/8#
14
15,854*
202
118
7
2,215
$18,410
$
Over 90- days
Total
59
420*
25
$
0
0
1,398
0
0
0
0
0
0
$1,902
0
$30,195
73
26,000
384
118
7
3,613
/Purchased at 1 7 / 8 - 2 1/8%.
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING NOVEMBER 5, 1950
j-q q q Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
$24,635
24,592
0
_______
Totals
$
43+
Bankers
Acceptances
Total
-*>30,195
0
19,636
$10,559+
3,951+ (Net Change
_______ 1-day holdover
and other bills)
$14,510+
354,830
24,592
19,636
^10,602+
3,951+ (Net Change
_______ 1-day holdover
and other bills)
$14,553+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES NOVEMBER 5, 1930
(000 Omitted)
(Including Sales Gontracts)
Gov* t Securities
Bills Purchased
Totals
Within
15-days
16-30
days
31-60
days
61-90
days
91 days6 months
Over 6
months
$29,764
60,,-580
0
38 ,346
#81,345
56,123
0
30 ,642
$196,055
111
$294,367
0
$601,531
185,602
$38,346 §137,468
$30,642
$196,166
$294,367
$787,133
$90,144
Total
Reproduced from the Unclassified I Declassified Holdings of the National Archives
,
._
DECLASSIFIED *
r* '
Authority £ , p . \ 6 < 5 d |
November 1, 19S0*
Dmr Mr.
Mattoaon:
Keooipt %m ae'oioarladgod of your letter
of October Xl*t addreaaed to Governor imytir
enclosing m re>ort of, ope** market operation*
for the period from October 2B # 1950 to October
29, 1980 inclusive, together with data received
t r m Feder»l Reaerre banS»#
Very truly your#*
g« II* ;%Clel land*
A»»i*tant Secretary*
Mr. 1» B* Katteaon* A M t * Deputy Governor,
Federal Heaerve Bank,
Wm York, 8* Y*
__
~
|
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED'
Authority
L-£-U lx < .
/
f
Re s e r v e Ba n k
of
CONFIDENTIAL
Ne w Yo r k
October 31, 1930
Mr, E. A, Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Goldenweisers
Enclosed is a report of open market operations for
the period from October 23, 1930 to October 29, 1930 inclu
sive, together with data received from Federal reserve banks
W. B. Matteson
Assistant Deputy Governor
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED'
Authority
j0 *\
^ I
|
!
I
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
P E R S O N A L
October 51, 1930
Dear Governor Meyer:
We are enclosing, for your files, a report of open
market operations for the period from October 25, 1950 to
October 29, 1930 inclusive, together with data received from
Federal reserve banks.
W. B. Matteson
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington,B .C.
Encl.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0«
FOR SPECIAL CIRCULATION
;A'?TTjY, INITIAL AND RETURN TO b,
Mr,, Hamlin
Mr. Jamas
Mr, Mi ll er
Mr, Cunnirighc
PLEASE FJDAB
Gov?
'™ .W Z
OFF
Mr. Po
F e d e ra l R e s e rv e B a n k
of
Ne w Yo r k
CONFIDENTIAL
October 51, 1930
Dear Governor Meyer:
Enclosed is a report of open market operations for
the period from October 23, 1930 to October 29, 1930 inclu
sive, together with data received from Federal reserve banks,
fery j f r / L j
y^rs,
W. B. Matteson
Assistant deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0«
CONFIESNTIAL
REPORT OF OPEN MARKET OPERATIONS FOR WEEK ENIED OCTOBER 29, 1930
Holdings of Earning Assets of Federal Reserve Banks from October 30, 1929 to Date
,
(000 Omitted)
-1929Oct. 30
Nov. 27
Dec. 51
-1950Jan. 29
Feb. 26 Mar. 26
Apt*. 30
28
May
June 25
"July 30
Aug. 27
Sept. 24
Oct. 22
Oct. 29
TOTAL
EARNING
ASSETS
$1,648,742
1,514,460
1,547,517
GOVERNMENT SECURITIES
Outright
Sales
Contracts
Purchases
$259,848
$32,840
322,063
4,035
487,292
23,295
1,154,379
1,138,522
1,001,090
982,225
958,776
916,038
911,554
967,034
973,483
976,900
975,021
476,466
477,610
526,284
527,124
529,450
576,560
576,323
601,913
601,656
602,029
601,438
BANKERS ACCEPTANCES
Outright
Sales
Purchases
Contracts
$310*774
$ 29,111
250,044
7,271
236,974
155,235
70
5,145
2,715
2,385
320
410
45
0
150
0
0
185,677
232,521
143,772
161,846
130,066
94,735
127,965
159,137
192,161
157,625
161,906
BILLS
DISCOUNTED
$991,038
912,349
632,421
72,795
66,785
112,710
47,718
45,494
7,578
2,797
4,137
5,583
18,965
3,752
406,941
342,781
206,829
233,452
247,046
231,505
197,101
193,275
167,162
191,984
201,603
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SAL:3S CONTRACTS)
DURING WEEK ENIED OCTOBER 29, 1930
(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
GOVERNliENT SECURITIES
Net
Balance
Change
Oct. 29
J 46,174
$ c
0
187,340
52,252
0
57,855
0
0
16,983
912,769
0
81,128
23,899
0
26,063
58128,736
0
129,230
0
39,009
$601,438
$591-
BANKERS ACCEPTANCES
Net
Balance
Oct. 29
Change
$ 12,428
$ 1,19723,748
2,6770
0
18,887
1801,2178,067
7,939
94818,3341,1596,513
1,5454,404
1116,794
3415,564
52019,735
1,89529,693
16,067+
$161,906
^ 4,281+
BILLS DISCOUNTED
Net
Balance
Oct. 29
Change
4 9,147 $3,030+
38,547
6,709+
945+
19,783
1,16525,884
18,836
16123,618
8153,548+
17,293
1,79116,370
4,148
66512,054
1,219+
9,449
5556,474
500-
$201,605
$9,619+
COMMENT ON CHANGES V/EEK ENIED OCTOBER 29, 1950
Total earning assets of the System showed a decrease of fl,879,000 for the
current statement week.
The changes by classification consisted of an increase of
$4,281,000 and $9,619,000, respectively, in outright purchases of bankers acceptances
and bills discounted, and decreases of $591,000 in outright purchases of government
securities and $15,213,000 in bankers acceptances* held under sales contracts.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority &«0«
2
Money
Market
Call money on the Stock Exchange was steady at 2 per cent
during the past week, but reflecting the usual seasonal tendencies at
this time easier conditions prevailed in the outside market where large
offerings resulted in loans being made during much of the time as low
as 1 per cent, whereas a week earlier the outside rate went no lower than
1 1/2 per cent. Federal funds also eased, the quotation during the past
three days being 1/4 - 1/2 per cent, compared with 1 - 1 1/4 per cent at
the close of the previous period.
Reserves of the New York City banks at the opening of the week
were #40,000,000 in excess of requirements, and during the period
reserves were raised by a further substantial inflow of funds from other
parts of the country and a gain of gold which were only slightly offset
by some additional decline in Reserve Bank bill holdings. There was a
, concurrent increase in member bank reserve requirements of somewhat
smaller amount, eo that by the end of the week a surplus of $66,000,000
had developed in the reserve accounts of the City banks. This will
probably diminish over the first of the month.
Very little interest was shown in fixed maturity accommodation
during the week* and nominal quotations were unchanged. A small aggre
gate amount of loans was placed; some for 30 days at 2 per cent; some
for 90 days at 2 1/2 per cent; for 4 months at 2 3/4 per cent; and
for 6 months at 3 per cent. These trading rates were the same as during
the previous week*
With respect to commercial paper, the dealers indicated that a
good market existed for prime material at 3 per cent, but for trades to
be made below this level required paper of nationally known business or
ganizations of especially high rating and only occasional sales were
made at 2 3/4 per cent. The supply of prime names continued scarce, and
consequently sales 7/ere in limited volume*
Government
Security
Market
The market for United States Government securities was some
what more active during the current statement week than in the previous
reporting period. There was a good demand for practically all issues,
short and long-term, especially the Fourth Liberty Loan 4 l/4s. Prices
advanced fractionally for the week with the long-term bonds recording
th'b larger gains, the greater portion of ?/hich v/ere made on the last day
of the current period. The average yield on the short-term governments
at dealers* offering prices at the close of the statement week was about
1.71% as compared with 1.76% last week, while the average selling price
for the long-term bonds established a new high level for the year of
105.05 as compared with 104.90 at the close of last week and a previous
high for the year of 105.03.
3
2
2
3
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,
Issue
Price
Change
Yield
1/4% Cert, of Ind. due Dec. 15, 1930
100 7/32
1.44%
-l/32
7/8% "
» "
” June 15, 1931
100 19/32
1.90%
+3/32
3/8% "
" "
" Sept*l5, 1931
100 11/32
1.97%
1/2% Treasury notes Series
and HB"
100 21/32
-1/32
called for payment Mar*15, 1931
1.72%
1.92%
1/2% Treasury notes due Dec, 15, 1932
100 31/32
Treasury Bills " Nov.17, X930
1 3/4% - 1 1/2% discount
» Dec.16 & 17, 1930 1 3/4% - 1 1/2% "
..
-
-
-
-
-
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0«
3
Closing Prices on New York Stock Exchange at the Close of
the Current Statement Week and Net Changes from
Close cf the Previous Statement Week.
Net
Change
h 1/32“
+6/32
+4/32
Price
101 6/32
102 20/32
103 18/32
Bankers
Acceptances
Dealers' offerings of unindorsed bankers acceptances continued at the following rates during the current statement week:
1 7/8 per cent for 30s, 60s and 90s; 2 per cent for 120s and 2 1/8 2 1/4 per cent for 180-day bills*
Issue
Treas, 4s
w
4 l/4s
♦»
3 3/4s
tt
3 3/8s
t*
3 3/8 s
1944-54
1947-52
1946-56
1943-47
1940-43
Price
108 27/32
113 2/32
106 20/32
102 14/32
102 2/32
Net
Change
+' 8/32
+10/32
+ 2/32
+ 3/32
+ 4/32
Issue
1st 3 l/2s
1st 4 l/4s
4th 4 l/4s
Boston reports that there was slight improvement in the
demand for bills in its district during the past period, with the
visible supply somewhat smaller and dealers were obliged to call on
their offices in other cities to obtain the desired maturities to
complete their orders. Dealers continued to forward their new bills
to their offices in other cities; principally to the New York market,
New York easier money conditions during the week resulted in an
excellent demand for bills.
Dealers * purchases fell off considerably
as compared with the past few weeks, Their sales exceeded their pur
chases very substantially and their aggregate portfolios declined by
$59,000,000 during the week to $55,000,000. Offerings to the Reserve
Bank for System Account were light. Philadelphia reports that its
acceptance market was without change - dull and inactive*
There was
some little demand for 30 and 120-day bills, but other maturities
did not move. Chicago reports that there was no change in its bill
market during the past week. Dallas reports that the demand for bills
during the past week was negligible* There were no bills offered to
the Reserve Bank.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
"
DECLASSIFIED
Authority £»0«
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
, I ...
»'
, i■
' f, " .......................... I.III.M -. . ni m ■■iw> ■
u I . — ..................... .
.... .................................................................
Transactions consmmiated under Treasury authorization during the current
statement week were as follows:
Sale of
,000>000 - 3 1/4$ certificates of indebtedness due December
15, 1930, account Government Life Insurance
Fund
600,000___ * 3 1/2% Treasury notes due December 15, 1932, account
__________
Alien Property Custodian
#1,600,000 - Total Sales
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week exchanges were effected in the
System Account of
$2,500,000 - Treasury bills due November 17, 1930, and
3,000,000 - 3 1/4% certificates of indebtedness due
__________
December 15, 1930
a total of
$5,500,000 - for a like par amount of 2 7/8% certificates
of indebtedness due June 15, 1931, and
3 1/2% Treasury notes, Series C, due
December 15, 1932*
These exchanges of early maturities for later maturities of short-term government
securities were made at prices to give slightly higher yields on the securities
purchased, and did not affect the total amount of holdings in the System Account,
which remained at the close of business Wednesday, October 29, 1930, at
$402,300,000.
The participation by Federal reserve banks and the classification
of issues at the close of the statement week were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
$ 45*472,500
New York
73,851,000
Philadelphia
37,245,000
Cleveland
47,690,000
Richmond
15,830,500
Atlanta
10,146,500
Chicago
61,201,000
St. Louis
15,274,000
Minneapolis
18,248,500
Kansas City
28,733,000
Dallas
19,241,000
San Francisco
29,367,000
Totals
$402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Nov. 17, 1930 - Treasury bills #22,714,000
«
Dec* 16, 1930 16,000,000
tt
«
Dec. IV, 1930 10,000,000
Dec. 15, 1930 - 3 1/4% C/I
51,745,000
June 1-5, 1931 - 2 7/8% it
81,631,000
Sept .15, 1931 - 2 3/8% t»
16,130,000
Mar. 15, 1931 - 3 1/2% T/N
Series »A" and ”
B"
164,070,100
Dec. 15, 1932 - 3 1/2% T/N
39,411,900
Oct. 15, 1938 - 4 1/4% 4th L/L
598,000
$402,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_____________________ FROM OCTOBER 23 TO OCTOBER 29, 1950, INCLUSIVE _______ ________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Sales
Purchases
| 621,500
$ 621,500
Boston
1,010,000
1,010,000
New York
509,500
509,500
Philadelphia
652,500
652,500
Cleveland
216,500
Richmond
216,500
139,000
Atlanta
139,000
836,000
Chicago
836,000
209,000
St • Louis
209,000
249,500
Minneapolis
249,500
392,500
392,500
Kansas City
262,500
262,500
Dallas
401,500
San Francisco
401,500
Totals
$5,500,000
$5,500,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Atlanta
Minneapolis
Totals
Purchases
# 258,100
1,317,850
$1,575,950
Issue
Misc. Gov't Sec.
*»
«
«
Sales
-f 267,950
j. ,898,650
tt
tt
$2,166,600
BANKERS ACCEPTANCES
(000 Omitted)
Holdings
Oct, 22
$ 13,625
26,425
Issue
Misc. Gov’
t
By Allot Matur
ment from ities &
New York
Sales
$ 2,137
$ 440
0
3,957
Other Holdings
Slose Oct. 29/30
Other
Sales
Contracts
Bills
$ 679
$ 1,236
1,226
7,936
Purehased
Holdings
Own Mkt*
Oct. 29
$ 12,428
Boston
$ 500 R.
New York
23,748
1,280 "
4,062 A.
0
0
Phila.
0
0
0
0
1,620
Cleve.
19,067
0
596
776
18,887
0
1,670
9,284
Rich*
328 R.
1,887
8,067
0
342
701
8,887
387 "
1,689
Atlanta
7,939
0
354
1,192
Chicago
19,493
861 "
2,637
1,847
617
18,334
2,238
St. Louis
7,856
0
1,843
6,313
300
0
601
Minn.
4,515
200 "
227
4,404
538
0
384
Kan. City
7,135
0
383
724
0
6,794
501
6,084
0
Dallas
253
773
5,564
0
501
San Fran.
21,628
1,125 »
550
3,568
19,735
0
1,152
#143,999
$8,743
i^20 ,529
Totals
$4,062
<$132,213
$3,752
$19,732
Bills held overnight by New York for distribution to other F. R. Banks - - —
0
tf
»r
tt
tt
»t
w
tt
v foreign correspondents - 9,961
Total
$29,693
NOTE:
R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
6
MATURITIES AND RATES ON BILLS PURCHASED M
^000 Omitted)
1-50 days
1 7/8$
51-60 days
1 7/8$ .
Boston
New York
Richmond
Atlanta
Chicago
Minneapolis
San Francisco
$
5
2,196*
i i8i
1,159**
Totals
#2,701
0
0
61-90 days
1 7/8$
55
550
283
0
209
ENDING OCTOBER 29, 1950
■
586
#2,228
Over 90-days
md
Total
$ 516
1,987*
221***
49
511
200
530
0
0
0
0
0
0
0
#
500
5,542
328
587
861
200
1,^25
$5,814
0
#8,745
^Purchased at 1 7/8 - 2 1/4$, **Purchased at 1 7/8 - 2 l/Q % 9 ***PUrchased at 2$«
RECAPITULATION OF PURCHASES AND SAL^S OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING OCTOBER 29, 1930
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
Totals
Bankers
Acceptances
#7,076
7,666
0
$
590-
Total
$8,743
0
20,529
111,78616,067+ (Net Change
1-day holdover
and other bills)
$ 4,281+
$15,819
7,666
20,529
$12,57616,067+ (Net Change
1-day holdover
and other bills
$ 3,691+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES OCTOBER 29, 1950
"*
(000 Omitted)
(Including Sales Contracts)
Within
15-days
Gov’
t Securities $ 0
Bills Purchased
48,200
Totals
$48,200
16-50
days
$85,714
45,774
51-60
days
61-90
days
91 days6 months
Over 6
months
Total
82,521
42,256
$ 0
51,555
§205,109
115
$288,294 $601,438
0
165,658
$>69,488 #124,557
#51,553
$205,224
#88$,294
$767,096
Reproduced from the Unclassified I Declassified Holdings of the National Archives
'
^
DECLASSIFIED
Authority £«Q«
Bear Mr* Mattescan 8
I acknowledge receipt of and ihall bring to
the attention of the nambors of the Board your letter
of October 24th t enclosing a report of open market
operations for the period from October 16, 1950 to
October 2 2 1 1950 inclusive*
Very truly yours *
E* !5. McClelland,
A s s i s t a n t Secretary
Mr* W. B« SfetfcMon*
Assistant Deputy Oo"fpmor#
o/o Federal Heaerre Bank,
lew York, IT* Y*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
7/ % v
J ) l v
E»Q« VffiSfr
*
v
........
%
Fe d e r a l R e s e r v e B a n k
of
rs
%<aK*,
**< & >
Ne w Yo r k
►
CONFIDENTIAL
October 24, 1930
Mr. E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Goldenweiser:
Enclosed is a report of open market operations for
the period from October 16, 1930 to October 22, 1930 inclu
sive, together with data received from Federal reserve banks.
V;
fruly yours,
W. B. Matteson
Assistant deputy Governor
^
^
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ »0«
F e d e ra l R e s e rv e B a n k
of
Ne w Yo r k
P E R S O N A L
October 24, 1950
Dear Governor Meyer:
We are enclosing, for your files, a report of open
market operations for the period from October 16, 1950 to
October 22, 1950 inclusive, together with data received from
Federal reserve banks.
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. G.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q»
«3R SPECIAL CIRCULATION
j KlEASE READ F R O M K ^ y , INITIAL AND RETURN TO S J ^ ^ ' A R Y ^ T f F I C E
Mr. H a m l i n V X ,
Mr. James ^
I^& T A * * * * *
Mr. Miller
Mr. Cunningham I/'
Mr. Po
Fe d e r a l R e s e r v e B a n k
of
N e w Yo r k
COMFIDMTIAL
October 24, 1930
Dear Governor Meyers
Enclosed is a report of open market operations for
the period from October 16, 1930 to October 22, 1930 inclu
sive, together with data received from Federal reserve banks.
Assistant Deouty Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D* C.
Encl.
RECEIVED
CT f: 13 1930
OFFICE OF
Reproduced from the Unclassified I Declassified Holdings of the National Archives
'
DECLASSIFIED
Authority £«Q«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS WEEK ENDED OCTOBER 22, 1930
Holdings of Earning Assets of Federal Reserve Banks from October 25, 1929 to Date
(qqq omitted)
TOTAL
EARNING
ASSETS
#1,336,656
1,648,742
1,514,460
1,547,517
-1922 —
Oct. 23
Oct. 50
Nov. 27
Dec. 51
-195C Jan. 29
Feb, 26
Mar. 26
Apr, 30
28
May
June 25
July 50
Aug. 27
Sept, 24
Oct, 15
Oct, 22
GOVERNMENT SECURITIES
Outright
Sales
Contracts
Purchases
#127,899
$ 7,805
32,840
259,848
4,035
522,065
23,295
487,292
1,154,379
1,138,522
11001,090 !
982,225
958,776
916,038
911,554
967,034
973,483
1,003,817
976,900
476,466
477,610
526,284
527,124
529,450
576,560
-576,523
601,913
601,656
601,614
602,029
BANKERS ACCEPTANCES
Outright
Sales
Purchases
Contracts
$15,885
$365,500
29,111
510,774
7,271
250,044
155,235
236,974
70
5,145
2,715
2,385
320
410
45
0
150
0
0
185,677
258, 521
145,772
161,846
150,066
94,755
127,965
159,157
192,161
155,842
157,625
72,795
66,785
112,710
47,718
45,494
7,578
2,797
4,157
5,506
29,650
18*965
BILLS
DISCOUNTED
$796,558
991,038
912,549
652,421
406,941
542,781
206,829
235,452
247,046
231,505
197,101
195,275
167,162
210,439
191,984
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
________________ DURING WEEK ENDED OCTOBER 22, 1950__________ ,
(000 Omitted)
GOVERNMENT SECURITIES
Balance
Net
Oct. 22
Change
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
$ 46,174
187,540
52,252
57,855
16,985
12,778
81,128
23,899
26,644
28,756
29,251
59,009
$602,029
$
0
0
0
0
1-
3+
0
0
411+
0
2+
0
$415+
BANKERS ACCEPTANCES
Net
Balance
Change
Oct. 22
$1,599$ 13,625
26,425
1,266+
0
0
1,520+
19,067
9,284
957+
1,0018,887
19,493
2,205+
7,856
42+
4,515
5407,135
1,4176,084
1,655697+
21,628
15,626
2,526+
$157,625
$1,783+
BILLS DISCOUNTED
Net
Balance
Change
Oct. 22
6*117
51,858
18,838
27,049
18,997
24,433
15,945
18,161
4,815
10,855
9,984
6,974
$ 2,95025,9111,424+
2,978+
995+
225+
565+
2,148+
514+
705+
5951,647+
$191,984
$18,455-
$
COMMENT ON CHANGES WEEK ENDED OCTOBER 22, 1950
Total earning assets of the System showed a decrease of $26,917,000 for
the current statement Yireek* The changes by classification consisted of increases
of $415,000 and 41,785,000 respectively, in outright purchases of government secur
ities and bankers acceptances, and a decrease of §10,685,000 in bankers acceptances
neld under sales contracts, and $18,455,000 in bills discounted.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
4
"
Authority £»Q«
MT..J
Money
Market
On Thursday and Friday of last week, a substantial inflow of
funds from other parts of the country and some increase in reserve bank
bill holdings resulted in a gain to the market large enough not only to
offset losses through currency requirements and Treasury operations, but
also to permit the retirement by member banks of reserve bank indebted
ness incurred a few days previously* During this time, call money held
at 2 per cent, both on the Stock Exchange and in the outside market.
This week a continued net inflow of funds from other centers
and return of currency from circulation led to the accumulation of some
surplus of bank reserves. Reflecting this situation, conditions in the
-call money market during this part of the week became somewhat easier,
although the only rate changes were in the outside market where conces
sions to 1 1/2 per cent prevailed, as against the continuance of the
Exchange rate at 2 per cent.
The time money market was extremely quiet during the entire
week. Small amounts were loaned for 3, 4 and 6 months at 2 1/2 per
cent, 2 3/4 and 3 per cent respectively. Nominal quotations are now:
30 days 2 per cent flat; 60 days 2 per cent bid, 2 1/4 asked; 3 and 4
months 2 1/2 per cent bid, 2 3/4 asked; and 5 and 6 months 2 3/4 percent
bid* 3 per cent asked.
While there have been some sales of high grade commercial
paper reported at 2 3/4 per cent, leading paper dealers construe them
in the nature of special transactions and continue to quote a prevail
ing selling rate of 3 per cent. At the present time, dealers* small
acquisitions of prime material are moving rapidly into investors*
portfolios.
Government
Security
Market
The market for United States Government securities was very
quiet during the current statement week. The undertone was steady
with a slight preference in the demand being shown for the Fourth 4 1/4$
Liberty Loan bonds. Prices were approximately at the same levels as at
the previous week*s close, the average yield on the short-term govern
ments at dealers* offering prices at the close of the reporting period
being 1.76$ as compared with 1.78$ last week, while the average selling
price for the long-term bonds was 104.90 as compared with 104.87 at the
close of last week and the high average for the year of 105.03,
3
2
2
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*
Yield
_____
_____
Change
1/4$ Cert, of Ind* due Dec. 15, 1930
100 8/32
-1/32
1.1.93$
7/8$
"
*» *»
" June 15, 1931
100 19/32
100 8/32
3/8$
"
*» **
” Sept. 15, 1931
2 *(
1/2$ Treasury Notes Series ,fAtf and **BW
called for payment Mar. 15, 1931
100 22/32
-1/32
1.72$
100 31/32
-1/32
1/2$ Treasury Notes due Dec. 15, 1932
1J
Treasury Bills due Nov. 17, 1930 1 7/8$ - 1 1/2$ discount
M
**
»» Dec. 16 & 17, 1930 1 7/8$ - 1 5/8$ discount
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q«
Closing Prices on New York Stock Exchange at the Close
the Current Statement Week and Net Changes from
Close of the previous Statement Week
Net
Issue
price
Price Change
Issue
1944-54 108 19/32
1st 3 l/2s 101 5/33 +1/32 Treas. 4s
1st 4 1/4s 102 14/32 +2/32
w
4 l/4s 1947-52 112 24/32
4th 4 1/4s 103 14/32 -1/32
"
3 3/4s 1946-56 106 18/32
” 3 3/8s 1943-47 102 11/32
**
3 3/8s 1940-43 101 30/32
Bankers
Acceptances
of
Net
Change
+1/32
+2/32
+3/32
+2/32
-4/32
Dealers’offerings of unindorsed bankers acceptances con
tinued at the following rates during the current statement week:
1 7/8 per cent for 30s, 60s and 90s; 2 per cent for 120s and 2 1/4
per cent for 180-day bills*
Reports
week
ending
Oct. 22
Boston reports that the bill market conditions in its dis
trict remained unchanged during the past period*
While there was a
slight increase in the supply, the demand continued poor and dealers
were obliged to forward most of their bills to their offices in other
cities as heretofore*
In New York, due to a slackened demand and a
good supply of bills, dealers* portfolios were increased during the
week by $31,000,000 to $113,000,000. on Wednesday, the highest since
the middle of last July*
has become easier.
This amount is now being reduced as money
Investments by the reserve bank for foreign
account were comparatively light, while offerings for System Account
increased considerably, principally from banks.
that its acceptance market was very quiet.
Philadelphia reports
The supply of new bills
practically dried up in its district, with no demand*
ported portfolios still rather high.
Dealers re
Chicago reports that there was
no change in its bill market conditions during the past week.
Dallas
reports that the demand for bills during the past week was very light.
There were no bills offered to the reserve bank.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q«
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows;
Sale of $400,000 - Fourth 4 1/4$ Liberty Loan bonds, account
Alien Property Custodian
500,000 - 5 3/8% Treasury bonds of 1943-47, account
Secretary of the Interior,
_______ _
Commissioner of Indian Affairs
$900,000 - Total Sales
SYSTEM -SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week exchanges were effected advantageously
in the System Account of
$5,000,000 Treasury bills due November 17, 1930
6.000.000 - 5 1/4$ certificates of indebtedness
due December 15, 1930
6.000.000_Treasury notes called for payment
___________
March 15, 1931
Total of
$17,000,000 for a like par amount of Treasury bills due
December 16 and 17, 1930, and 2 3/8$
certificates of indebtedness due
September 15, 1931.
These exchanges of maturities did not affect the total amount of holdings in the
System Account which remained at the close of business Wednesday, October 22,
1930, at $402,300*000*
The participation by Federal reserve banks and the
classification of issues at the close of the statement week were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
$ 45,472,500
73,851,000
37,245,000
47,690,000
15,830,500
10,146,500
61,201,000
15,274,000
18,248,500
28 r735,000
19,241,000
29,567,000
$402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Nov. 17, 1950-Treasury Bills
Dec. 16, 1950*»
tt
Dec. 17, 1930"
.Dec. 15, 1930-3 1/4$ C/I
June 15, 1931-2 7/8$ "
Sept .15, 1931-2 3/8$ "
Mar • 15, 1931-3 1/2$ T/N
Series "A" and ”
B”
Dec. 15, 1932-3 1/2$ T/N
Oct. 15, 1938-4 1/4$ 4th L/L
$ 25,214,000
16,000,000
10,000,000
54,745,000
80,131,000
16,130,000
164,070,100
35,411,900
598,000
$402,500,000
WPP
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
5
ITEMIZED STATE1ISNT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE HWESIMHINT ACCOUNT OF AIL FEDERAL KElSERVfi BANKS
___________________FRCM OCTOBER 16 TO OCTOBER
1950» INCLUSIVE__________________
GOVERNMENT SECtTSITIES - SYSTIgI.lltoS'CTWT AGCbuNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Purchases
$ 1,981,000
3,120,500
1,574,500
2,014,500
669,500
428,000
2,586,000
646,000
771,500
1,214,500
815,000
1,241,000
£17,000,000
Sales
# 1,921,000
5,120,500
1,574,500
2,014,500
669,500
428,000
2,586,000
646,000
771,500
1,214,500
813,000
1,241,000
$17,000,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Purchases
Issue
Sales
Issue
0
0
$
1,000 Misc. Gov't Sec.
tt
tt
3,000,000 Mi sc. Gov't Sec.
3,000,000
tt
tt
tt
tt
tt
tt
2,426,600
2,423,750
tt
tr
tt
tt
tt
1,057,700
1,468,250
tt
tt
2,000
0
$6,896,850
$6,482,450
Boston
New York
Atlanta
Minneapolis
Dallas
Totals
BANKERS ACCEPTANCES
(000 Omitted)
Holdings
Oct. 15
$ 15,224
25,159
By Allot Matur
ment from ities &
New York
Sales
$ 2,588
$ 4,857
8,095
0
Other Holdings
Close Oct. 22,1930
Sales
Other
Contracts
Bills
$ 2,814
$ 766
10,192
3,406
Purchased
Holdings
Oct. 22
Own Mkt.
Boston
$
670 R
§13,625
New York
9,361 "
26,425
29,409 A
Phila.
0
0
0
0
0
0
1,004
Cleve.
17,547
2,924
4,444
-19,067
0
1,035
0
Richmond
8,347
0
1,575
2,512
9,284
c
435
Atlanta
117 R
9,888
2,543
3,661
8,887
0
1,000
Chicago
17,288
200 '»
6,228
4,223
19,493
1,387
2,710
St. Louis
2,192
7,814
0
7,856
375
2,234
0
Minn.
6,055
1,477
3,017
0
4,515
238
0
Kan. City
8,552
2,573
0
3,990
7,135
311
0
Dallas
7,737
0
1,897
3,550
6,084
311
0
San Fran.
3,778
20,931
2,913
21,628
3,249
1,562 n
714
$41,862
Totals
$144,542
$41,319
$29,409
$143,999
$18,965
$10,980
Bills held over night by New York for distribution to other F.R* Banks - - 671
,T
"
"
"
M ” "
n
"
w foreign correspondents- 1,975
T o t a l ------------ -------------013,626
NOTE:
p. indicates Retained and A. indicates Allotted in the above statements
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
KATUMTIES AND RATES ON BILLS PURCHASED KEEK ENDING OCTOBER 22, 1930
(000 Omitted)
1-30 days
1 7/8$
Boston
New York
Atlanta
Chicago
San Francisco
Totals
$
31-60 days
1 7/8%
0
10,669*
117
0
138
$
61-90 days
1 7/8 - 2 %
67
16,417*
0
0
480
Total
603
11,684
0
§ 670
38,770
117
200
200
1,562
944
$13*431
$16,964
$10,924
Over 90-days
0
$41,319
* Small portion purchased at 2%.
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
■AND BANKERS ACCEPTANCES DURING WEEK ENDING OCTOBER 22, 1930
(00C Omitted)
(Excluding Sales Contracts)
Government
Securi ties
Purchased
Sold
Matured
Totals
Bankers
Acqeptances
$23,897
23,482
0
Totals
£41,319
0
41,862
5432,326+(Net Change
1-day holdover
_____ & other bills)
415+
$ 1,783+
$65,216
23,482
41,862
5
1282,326+(Net Change
1-day holdover
_ _ _ _ _ & other bills)
2,198+
HOLDINGS OF GOVERNIvIENT SECURITIES AND BANKERS ACCEPTANCES OCTOBER 22, 1930
M-r... r" ""11"1...
'
(000 Omitted)
'
(Including Sales Contracts)
Within
15-days
16-30
days
31-60
days
61-90
days
91 days6 months
Over 6
months
Total
Govft Securities
Bills Purchased
61,537
$28,214
43,822
$ 85,370
44,435
$ 0
26,566
Sl>205,075 $283,370 $602,029
230
0
176,590
Totals
$61,537
$72,036
$129,805
$26,566
$205,305
$283,370 $778,619
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q« V2R5$*
October 13, 1930
Dear Mr# Matteson:
\
I
acknowledge receipt of and shall bflng to
the attention of the members of the Board y m r letter
of October 17th, addressed to Governor -^eyer, enclos
ing a report of open market, operations for the period
from October 9, 1930 to October 15, 1950 inclusive*
Very truly yours,
& at2* M. McClelland,
Assistant Secretary
Mr. W* B* Katteso®,
Assistant Deputy Governor,
Federal Hoserve Bank,
«ow York, II* Y*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«Q«
9 > -V .
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
P E R b 0 H A...L
October 17, 1950
Dear Governor Meyer:
We are enclosing, for your files, a report of open
market operations for the period from October 9, 1950 to
October 15, 1950 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
E»Q«
F e d e ra l R e s e rv e B a n k
of
CONFIDENTIAL
N e w Yo r k
October 17, 1930
Mr. S. A* Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Mr, Goldenweiser:
Enclosed is a report of open market operations for
the period from October 9, 1930 to October IS, 1930 inclusive
together with data received from Federal reserve banks.
W. B. Matteson
Assistant deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»Q«
Go t *
FOR SPEClAIi drRCUIiATIC
FSMKrtWIPTT.*, INITIAL AJJb RETURN TO SISCRETARY’
S O JHi
;> -•,-n,, I— : -lilr. Jamsn
Meyejr
■Mv. illier
’
Cuaniii.^ham
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 17, 1950
Dear Governor lteyer:
Enclosed is a report of open market operations for
the period from October 9, 1930 to October 15, 1930 inclusive,
together with data received from Federal reserve banks.
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
E n c l.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
,4
v
Authority £»0« \3BSy
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS WEEK ENDED OCTOBER 15, 1930
Holdings of Earning Assets of Federal Reserve Banks from October 16, 1939 to Date
(000 Omitted)
TOTAL
EARNING
ASSETS
$1,370,428
1 ,648,742
1,514,460
1 ,547,517
-1929Oct. 16
Oct. 30
Nov. 27
Dec. 31
-1930J&n. 29
Feb'. 26
Mar. 26
Apr. 30
May 28
June 25
Tuly 30
kig. 27
3ept . 24
Oct.
8
Oct. 15
GOVERNMENT SECURITIES
Sales
Outright
Purchases
Contracts
$ 9,565
$128,063
259,848
32,840
322,063
4,035
487,292
23,295
1 ,154,379
1 ,138,522
1 ,001,090
982,225
958,776
916,038
911,554
967,034
.973,483
990,900
1,003,817
476,466
477,610
526,284
527,124
529,450
576,560
576,323
601,913
601,656
600,289
601,614
BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
$303,260
| 56,850
310,774
29,111
7,271
250,044
236,974
155,235
70
5,145
2,715
2,385
320
410
45
0
150
150
0
185,677
232,521
143,772
161,846
130,066
94,735
127,965
159,137
192,161
183,092
155,842
BILLS
DISCOUNTED
$>848,935
991,038
912,349
632,421
72,795
66,785
112,710
47,718
45,494
7,578
2,797
4,137
5,583
27,931
29,650
406,941
342,781
206,829
233,452
247,046
231,505
197,101
193,275
167,162
173,166
210,439
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
________________ DURING WEEK ENDED OCTOBER 15, 1950______________
(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. 15
Change
$ 46,175
$ o
187,340
1,100+
52,252
0
57,855
0
0
16,983
12,775
49+
81,128
0
0
23,899
176+
26,233
28,736
0
0
29,229
39,009
, 0
$601,614
#1,325+
BANKERS ACCEPTANCES
Net
Balance
Oct. 15
Change
# 5,905# 15,224
25,159
6,4200
0
17,547
341+
6668,347
228+
9,888
981+
17,288
7,814
306+
1836,055
1458,552
123+
7,737
1,306+
20,931
11,300
.17,216-
#155,842
#27,250-
BILLS DISCOUNTED
Net
Balance
Oct. 15
Change
$
452# 9,067
57,749
32,100+
17,414
2,133+
24,071
2,985+
18,002
255+
24,208
5+
1,51613,580
179+
16,013
4,299
358+
916+
10,130
10,579
263+
47+
5,327
#210,439
#37,273+
COMMENT ON CHANGES WEEK ENDED OCTOBER 15, 1950
Total earning assets of the System showed an increase of $12,917,000 for
the current statement week.
The changes by classification consisted of increases
of $1,325,000 and $37,273,000 respectively, in outright purchases of government
securities and bills discounted, and $1,569,000 net in investments held under sales
contract^ and a decrease of $27,250,000 in outright purchases of bankers acceptances.
The change in sales contracts consisted of an increase of $1,719,000 in bankers
acceptances and a decrease of $150,000 in government securities.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
- '
Money
Market
Authority £»0«
Conditions in the New York call money market during the past
¥/eek were little changed from the situation that preyailed during much
of the preceding period. On the l&chsnge, the call rate held steady
at 2 per cent and in the outside market no concessions from this rate
were reported- Ample, though not abundant, supplies of funds were
available at all times however*
lor the week ended October 15, there was an inflow of funds
to this market from other centers, but losses occurred through in
creased currency requirements, an excess of Treasury bill sales over
JLnterest payments here, and a decline in Reserve System bill holdings*
The resulting net loss and a rise in member bank reserve requirements
caused the New York City banks to increase their Reserve Bank borrow
ings to $40>000,000 on the 14th, following which there was only a
small decrease, as increased Federal Reserve bill takings on the 15th
and 16th served as a partial offset to the loss occasioned by the
Treasury bill sales in this market.
In the time money market, quotations were virtually unchanged
during the week, kittle actual trading was done and the small amount
of loans for 4 and 6 months placed was 2 3/4 and 3 per cent, respec
tively*
The rather limited supply of new commercial paper that was
received by dealers moved quickly into investors’portfolios at the
prevailing quotation of 3 per cent for prime names.
Government
Security
Market
There was less activity in the market for United States
Government securities during the current statement week than in the
few preceding weeks. Notwithstanding the saaller amount of trading,
the undertone was good and dealers reported that while offerings were
not in large volume there was a fair demand for practically all issues.
Prices in general were firm at levels slightly below the high point
reached during the early part of the preceding week, and at the close
of tho current reporting period the average selling price for the long**
term bonds was 104,67 as compared with the high average for the year of
105.03 established during the uarly part of tho previous week.
3
2
2
3
3
Dealers* Offering Prices at the Close of the Current statement Week
and Net Changes from the Close of the Previous Statement Week
Net Approx.
Change Yield
Issue
Price
111.48$
-1/32
1/4$ Jert. of Ind6 due Dec. 15, 1930 100 '9/32
7/8$
+1/32
" *'
June 15, 1931 100 19/32
1.!
2.09$
3/8%
" "
" Sept. 15, 1931 100 8/32
+1/32
1/2$ Treasury Notes Series f,AM and
---1.73$
called for payment Mar* 15* 1931 100 23/32
---1.96$
1/2$ Treasury Notes due Dee* 15, 1932 101
1/2$ discount
Treasury Bills due Nov. 1?, 1930
Dec. 16 & 17, 1930 1 7/8$ - 1 3/4% ”
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
- *
Authority £»Q« VffiSfr
/
3
Closing Prices on New York Stock Exchange at the Close of
the Current Statement Week and Net Changes from
Close of the Previous Statement Week__________
Net
Net
Change
Price
Price
Issue
Issue
Change
1944-54 108 18/32 - - 1st 3 1/ 2s 101 4/32 +1/32 Treas, 4s
w 4 l/4s 1947-52 112 23/32 -8/32
1st 4 l/4s 102 12/32 +1/32
n
4th 4 l/4s 103 13/32 - - 3 3/4s 1946-56 106 15/32 - - t» 3 3/8s 1943-47 102 9/32 +2/32
t» 3 3/8s 1940-43 102 2/32 +5/32
Banker s
Acceptances
Dealers1 offerings of unendorsed bankers acceptances contin
ued at the following rates during the current statement week: 1 7/8
per cent for 30s, 60s and 90s; 2 per cent for 120s and 2 1/8 - 2 1/4
per cent for 180-day bills,
Reports
week
ending
Oct* 15
Boston reports that there was no change in the local bill
market conditions in its district during the past period. While the
supply showed a slight decrease, it continued to be in excess of the
demand which was very small. Local banks were practically out of the
market and dealers found it difficult to move their bills. Dealers
kept their portfolios small by forwarding all of their excess supply
to their offices in other cities. In New York the bill market con
tinued moderately active during the week. The demand fell off some
what as compared with the past few weeks, while the supply continued
good and dealers aggregate portfolios increased by about $23,000,000
to $82,000,000,' the highest they have been since the middle of July.
Offerings to the reserve bank for System Account were only moderate
and practically all from banks. Philadelphia reports that its accept
ance market continued inactive. Dealers reported portfolios slightly
higher, there being no demand for bills in its district. Chicago
reports that there was practically no improvement in bills in its
market during the past week.
Dallas reports that there was a slight
improvement in the demand for bills during the past week due princi
pally to a substantial purchase by one of the large reserve city
banks. The demand from other sources was practically negligible and
offerings to the reserve bank were very light.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0« \ 2 3 S y
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Sale of
$100,000 - 3 1/2$ Treasury notes due Itecember 15, 1932,
account Alien Property Custodian
and purchases of
177,450 - 4 1/4$ Fourth Liberty Loan bonds,
account General Railroad Contingent
Fund
175,000_- 4 1/4$ Fourth Liberty Loan bonds, account
________
German Special Deposit Account
$352,450 - Total Purchases
SYSTEM SPECIAL INVESTLiBNT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week exchanges were effected in the System
Account incidental to the Treasury* s financing of Treasury bills during the week
of
$18,000,000 - 3 1/4$ certificates of indebtedness
due December 15, 1930, for a
like par amount of Treasury
bills maturing November 17
and December 16, 1930
These exchanges did not affect the amount of total holdings in the System Account
which remained at the close of business Wednesday, October 15, 1930, at
#402,300,000.
Tho participation by Federal Reserve banks and the classification
of issues at the close of the statement week were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
$ 45,472,500
73,851,000
37,245,000
47,690,000
15,830,500
10,146,500
61,201,000
15,274,000
18,248,500
28,733,000
19,241,000
29*367,, 000
$402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Nov. 17,
Dec. 16,
Dec. 15,
June 15,
Sept .15,
Mar. 15,
Series
Dec. 15,
Oct. 15,
1930 - Treasury Bills $30,214,000
"
10,000,000
1930 «
1930 - 3 1/4$ C/I
60,745,000
1931 - 2 7/8$ n
80,131,000
15,130,000
1931 -v 2 3/8$ tt
1 9 3 1 - 3 1/2$ T/N
170,070,100
"A" and ”
B"
1932 - 3 1/2$ T/N
35,411,900
598,000
1938 - 4 1/4$ 4 th L /L
$402,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_______________________FROM OCTOBER 9 TQ OCTOBER 15, 1950,INCLUSIVE_________________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Sales
Purchases
$ 2,054,500
Boston
$ 2,054,500
5,504,000
5,504,000
New York
1,666,500
1,666,500
Philadelphia
2,154,000
2,154,000
Cleveland
708 ,500
708,500
Richmond
454,000
Atlanta
454,000
2,758,500
Chicago
2,758,500
685,000
685,000
St. Louis
816,500
816,500
Minneapolis
1,285,500
1,285,500
Kansas City
861,000
861,000
Dallas
1,514,000
San Francisco
1,514,000
§18,000,000
$18,000,000
Totals
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Purchases
New York
Atlanta
Minneapolis
#1,100,000
140,650
928,500
Totals
$2,169,150
Issue
Sales
0
91,850
755,200
t Sec.
Misc. Gov’
♦t
Tf
»f
it
»?
t»
Issue
Misc. Gov’
t Sec.
"
"
”
§845,050
BANKERS ACCEPTANCES
(000 Omitted)
Boston
New York
Phila.
Cleve.
Richmond
Atlanta
Chicago
St. Louis
Minn.
Kan. City
Dallas
San Fran.
'^otals
Holdings
Oct. 8
Purchased
Own Mk t.
$ 21,129
51,579
$
0
17,206
9,015
9,660
16,307
7,508
6,558
8,697
7,614
19,625
260
8,090
25,565
0
0
0
149
849
0
0
0
16
3,520
SI54,676
4*56,047
R.
"
A.
R.
*
"
"
By Allot Matur
ment from ities &
New York
Sales
Holdings
Oct.15
Other Holdings
Close Oct. 15/50
Sales
Other
Contracts
Bills
|
80
§ 2,246
21,569
2,306
$ 2,148
0
s? 8,513
14,510
$ 15,224
25,159
0
5,188
1,885
2,179
4,891
1,861
1,171
2,052
1,501
2,487
0
2,847
2,551
2,100
4,759
1,555
1,554
2,197
1,594
4,501
0
17,547
8,547
9,888
17,288
7,814
6,055
8,552
7,757
20,951
0
0
0
0
2,575
0
0
0
0
5,260
104
107
45
575
144
59
25
52
52
74
^25,565
§46,081
$>144,542
$29,650
$ 5,561
Bills held overnight by New York for distribution to other F.R. Banks - - - 5,764
"
tf
"
»» "
"
"
"
"
" foreign correspondents - 1,975
T o t a l ---------#11,500
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«
KJ
(000 Omitted)
1-30 days
1 7/8#
Boston
New York
Atlanta
Chicago
Dallas
San Francisco
I
6
24,367
149
849
0
217
$25,588
Totals
51-60 days
1 7/8$
$
179
2,530**
0
0
0
1,388
$4,097
61-90 days
1 7/8#
Over 90-days
-
$
75*
4,556*
0
0
$
1,715
0
0
0
0
0
0
$6,362
0
$36,047
Total
260
31,453
149
849
16
5,520
^Purchased at 1 7/8 to 2#, **Purchased at 1 7/8 to 2 1/4$, ***purchased at Z°/
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING OCTOBER 15, 1950
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
#20,170
18,845
0
Totals
$ 1,525+
Bankers
Acceptances
Totals
#56,047
0
46,081
#10,05417,216- (Net Change
_______ 1-day holdover
and other bills)
$27,250-
$56,217
18,845
46,081
$ 8,70917,216- (Net Change
1-day holdover
and other bills)
$25,925-
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES OCTOBER 15, 1950
(000 Omitted)
(Including Sales Contracts]
Gov11 Securities
Bills Purchased
Totals
Within
15-days
16-50
days
$ 0
96,922
v 0
51,889
$55,214 $75,561
41,671
14,755
.$211,096 £281,943
257
0
$601,614
185,492
$96,922
$51,889
$74,885
$211,555
$787,106
51-60
days
61-90
days
$90,114
91 days- Over 6
6 months months
$281,945
Total
Reproduced from the Unclassified I Declassified Holdings of the National Archives
“
‘
DECLASSIFIED
Authority £»0«
October 11, 1930.
Dear Mr. Matteson;
Receipt la acknowledged of your letter of Ootober
10th9 addressed to Governor Meyer, enclosing report of
©pen market operations for the period from Ootober 2nd
to Ootober 8th, inclusive.
Very truly yours,
J. C. Noell,
Assistant Secretary.
Mr. W. B. Matteson, Assistant Deputy Governor,
Federal Reserve Bank,
New York, New York.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ «0«
Form
N o .
1 3 1 .
4* / * •
1
Office Correspondence
FBD E RA L
board
R E SE R V E
_oet^n^-igso
T o _______ Governor Meyer______________
Subject:___ __ _________ _______________
From______ M r.
____ _____ _______________ _________
-M aC lftH aaA ._____ _________
Up to the last month or so, it has been the practice of the
Federal Reserve Bank of New York to address to the Board weekly a
letter reviewing conditions and operations in the bill and Govern
ment securities markets.
The last letter received by the Board
was under date of August 28th, and is attached, for your information*
May I inquire whether the discontinuance of this letter is the result
of an agreement made by you with the New York Bank? If not, would you
like for me to write to the Bank and ask that they resume the sending
of the weekly letter.
I believe it was of interest to other members
of the Board.
/
^ -< A J L jL L *d t
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»0«
/ I
j
, /
>y
/
Ji
F e d e ra l R e s e rv e B a n k
of
CONFIDENTIAL
N e w Yo r k
%
October 10, 1930
Mr. E. A, Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Goldenweiser:
Enclosed Is a report of open market operations for
the period from October 2, 1930 to October 8, 1930 inclusive,
together with data received from Federal reserve banks.
Very truly yours,
Matteson
Assistant Deputy Governor
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
FOR SPECIAL CIRCt*~ \TION
PLIA^REA D PJ R ^M P TL Y , INITIAL AND REixJRN TO SECRETARY’
S OFFICE
Gov. X m m g
Mr. Hamlin
Mr. James r
•Mr. P l a t t .
Mr. Miller^.— ■
— Mr. Cunningham
Mr. Pol&
Fe d e r a l R e s e r v e B a n k
of
N e w Yo r k
CQ8PIDE8TIAL
October 10, 1930
Dear Governor Meyer*
Enclosed is a report of open market operations for
the period from October 2, 1930 to October 8, 1950 inclusive,
together with data received from Federal reserve banks.
Very truly yours,
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C*
'E n d *
RECEIVED
OCT 1 J 1930
OFFICE) OF
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £*0*
confidential
REPORT OF OPEN MARKET OPERATIONS WEEK ENDED OCTOBER 8, 1930
re
000 Omitted)
-1929
Oct.
Oct.
Nov.
Dec.
-1930
Jan*
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Oct.
9
30
27
31
TOTAL
EARNING
ASSETS
#1,345,970
1,648,742
1,514,460
1,547,517
29
26
26
30
28
25
30
27
24
1
8
1,154,379
1,138,522
- 1,001,090
982,225
958,776
916,038
911,554
967,034
973,483
986,973
990,900
GOVERNMENT SECURITIES
Outright
Sales ‘
Purchases
Contracts
#127,493
#13,265
259,848
32,840
322,063
4,035
23,295
487,292
476,466
477,610
526,284
527,124
529,450
576,560
576,323
601,913
601,656
600,337
600,289
70
5,145
2,715
2,385
320
410
45
0
150
840
150
BANKERS ACCEPTANCES
sales
Outright
Purchases Contracts
# 45,396
$287,755
310,774
29,111
7,271
250,044
236,974
155,235
185,677
232,521
143,772
161,846
130,066
94,735
127,965
159,137
192,161
180,830
183,192
BILLS
DISCOUNTED
#857,306
991,038
912,349
632,421
72,795
66,785
112,710
47,718
45,494
7,578
2,797
4,137
5,582
12,278
27,931
406,941
342,781
206,829
233,452
247,046
231,505
197,101
193,275
167,162
185,916
173,166
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
DURING WEEK ENDED OCTOBER 8, 1930
(000 Omitted)
Balance
Oct. 8
# 21,129
31,579
0
17,206
9,013
9,660
16,307
7,508
6,338
8,697
7,614
19,625
ACCEPTANCES
Net
Change
# 1,402+
482+
0
3,1011,5402,4871,1501,6521,2521,5028951,096-
28,516
15,153+
#183,192
# 2,362+
BILLS DISCOUNTED
Net
Balance
Oct. 8
Change
# 2,993# 9,519
74325,649
1,63315,281
21,086
674+
17,747
62724,203
2,29415,096
1,53515,834
3,2303,941
719,214
411+
31710,316
5,280
392-
#48-
CHANGES WEEK ENDED OCTOBER 8, 1930
o
#600,289
1
Totals
Net
Change
# 10
0
0
0
20+
0
0
670
0
0
0
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
GOVERNMENT
Balance
Oct. 8
J 46,175
186,240
52,252
57,855
16,983
12,726
81,128
23,899
26,057
28,736
29,229
39,009
#173,166
#12,750-
Total earning assets of the System showed an increase of $>3,927,000 for
the current statement week.
The changes by classification consisted of increases
of $2,362,000 and $14,963,000 net respectively, in' bankers acceptances and invest
ments held under sales contracts, and decreases of $48,000 and $12,750,000 respect
ively in outright purchases of government securities and bills discounted.
The
change in sales contracts consisted of an increase of $15,653,000 in bankers accep
tancos and a decrease of $690,000 in government securities.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0« U BS f f
2
Money
Market
Somewhat firmer conditions existed in the money market during
the past week.
Call money on the Stock Exchange held steady at 2 per
cent throughout the period, while during the pre¥ious week the rate
declined to 1 1/2 per cent for one day.
In the outside market, con
cessions from the Exchange rate were smaller and less frequent than they
were last week; at no time was the outside rate less than 1 1/2 per
cent, and from Monday to Thursday the outside charge held at the 2 per
cent level which prevailed on the Exchange.
There was a large outflow of funds to other parts of the
country during the week, and the loss to the market from this source
was only partly offset by gains resulting chiefly from a small net re
turn of currency from circulation and a reduction in the reserve
requirements of New York City banks.
Consequently, the member banks
~ found it necessary to increase their borrowings here in order to balance
their average reserve position, but these loans were soon repaid
through the sale of bills to the Reserve Banks.
The increase in bill
holdings was largely in the form of repurchase agreements; outright
holdings declined during the first part of the period, but in the last
two days there were substantial bank sales of bills to the Reserve Bank.
There was little trading activity in time money, but this
market showed some firming tendency^in that the nominal quotations for
3 to 6 months* maturities closed the period slightly higher.
Bid and
asked quotations on October 9 were as follows: 30 days, 2 per cent
flat; 60 days, 2 - 2 1/4 per cent; 3 and 4 months, 2 1/2 - 2 3/4 per
cent; 5 and 6 months, 3 per cent flat.
The rate for prime commercial paper remined 3 per cent, and
conditions of deinand for and supply of the paper continued much the
same as a week ago.
Sales generally were small due to the fact that
new drawings were in limited volume. Demand was large, and new paper
currently received by dealers pftssed quickly into investors1 portfolios.
Government
Security
Market
During the first part of the current statement week the market
for United States Government securities, which had become somewhat
easier in the few preceding days, was again fairly active and strong.
The demand was good for practically all issues and prices advanced
fractionally, the average selling price for the long-tem bonds reach
ing a new high level for the year of 105.03 as conjpared with the
previous high for the year of 105.02, established during the early part
of the preceding week. EUring the latter part of the current statement
week, however, the demand again slackened and prices In most instances
declined fractionally to levels slightly below those prevailing at the
close of the previous statement week.
3
2
2
3
3
Dealers* Offering Pricos 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
1/4% Cert, of Ind. due Dec. 15, 1930
100 10/32
-2/32
1.49$
7/8% *
n
n
n June 15f 1931
100 18/32
-1/32
2.03%
3/8% "
»
t»
h sept. 15, 1931
100 7/32
-1/32
2*13%
1/2% Treasury Notes Series "A" and **B**
called for payment Mar.15, 1931
100 23/32
-1/32
1.80%
1/2% Treasury Notes due Dec. 15, 1932
101
-1/32
2.00%
Treasury Bills ** Nov# 17, 1930 ; *7/8% - 1 1/2% discount
Reproduced from the Unclassified I Declassified Holdings of the National Archives
“
•*
DECLASSIFIED
Authority fc»Q«
/
Closing Prices on New York Stock Exchange at the Close of
the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Change
-l/32
-1/32
+1/32
Issue
Treas. 4s
M
4 l/4s
W
3 3/4s
H
3 3/8s
ft
3 3/8s
Price
108 18/32
112 30/32
106 15/32
102 7/32
101 29/32
Net
Change
-5/32
+2/32
Issue
1st 3 l/2s
1st 4 l/4s
4th 4 l/4s
Price
101 3/32
102 11/32
103 13/32
Bankers
Acceptances
Dealers* offerings of unendorsed bankers acceptances
continued at the following rates during the current statement week:
1 7/8 per cent for 30s, 60s and 90s; 2 per cent for 120s and 2 1/8 2 1/4 per cent for 180-day bills.
Reports
week
ending
Oct* 8
Boston reports that for the past ten days the supply of new
bills had been slowly increasing.
While most of these bills represent
shipments between foreign countries, cotton credits have made their
appearance in fair volume.
There was no change in the demand for
bills which continued poor in its district.
Consequently dealers
continued to send most of their bills to their offices in other cities.
In New York the bill market was fairly active during the week.
As a
result of the finaer money conditions which existed during the week,
more bills were offered to dealers with a falling off in the demand
and dealers* aggregate portfolios increased approximately by about
#20,000,000, to about #60,000,000.
The reserve bank’
s purchases for
System Account were fairly substantial and came practically all from
banks.
Philadelphia reports that its acceptance market was quiet.
The amount of new bills was the smallest for sometime with no demand.
Chicago reports that its bill market continued very dull and inactive
with very few bills appearing.
Dallas reports that the bill market
in its district continued very dull during the past week with the
demand ligfrt.
There were no offerings to the reserve bank.
■ M V M M M ap
1944-54
1947-52
1946-56
1943-47
1940-43
-
-
-
-3/32
-4/32
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
~
Authority £ »0«
/
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week consisted of a sale of $1,000,000 Fourth 4 1/4$ Liberty Loan bonds
account Government Life Insurance Fund,
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
IXiring the current statement week an exchange was effected in the market
of
#1,000,000 - 3 1/2fo called Treasury notes
-at a price to yield about 1.74$ for a like par amount of 2 3/8$ Treasury certifi
cates due September 15, 1931, at a price to yield about 2.14$.
This exchange did not affect the amount of total holdings in the Account
which remained at the close of business Wednesday, October 8, 1930, at
$402,300,000.
The participations by Federal reserve banks and the classification
of issues at the close of the statement week were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
$ 45,472,500
73,851,000
37,245,000
47,690,000
15,830,500
10,146,500
61,201,000
15,274,000
18,248,500
28,733,000
19,241,000
29,367,000
Totals
$402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Nov. 17, 1930 Dec. 15, 1930 June 15, 1931 Sept. 15, 1931 Mar. 15, 1931 Series MA M and
Dec. 15, 1932 Oct. 15, 1938 -
Treasury Bills $ 22,214,000
3 1/4$ C/I
78,745,000
2 7/8$ "
80,131,000
2 3/8$ "
15,131,000
3 1/2$ T/N
"B"
170,070,100
3 1/2$ T/N
35,511,900
4 1/4$ 4th L/L
598,000
$402,300,000
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 OCTOBER 1 TO OCTOBER 8, 1930, INCLUSIVE___________________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Totals
Purchases
$ 113,000
183,500
92,500
118,500
39,500
25,000
152,000
38,000
45,500
71,500
48,000
73,000
Sales
# 113,000
183,500
92,500
118,500
39,500
25,000
152,000
38,000
45,500
71,500
48,000
73,000
#1,000,000
#1,000,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Issue
Purchases
Boston
Atlanta
Minneapolis
Totals
1
0
441.*900
676i,6 5 0
Sales
-
Misc. Gov*t Sec •
"
ft
#
V
1 ,0 0 0
421 ,8 0 0
7 4 3 ,7 0 0
Issue
Misc. Gov*t Sec m
Holdings Purchased
Oct* 1
Own Mkt*
# 1 9 ,7 2 7 # 6 ,2 9 8 R.
31,0 97
1 2 ,9 8 8
1 4 ,7 0 3
0
0
70
0
113
0
0
0
0
3 ,1 0 1
# 37,273
Phila.
0
Oleve*
20,3 07
Richmond
1 0 ,5 5 3
1 2 ,1 4 7
Atlanta
Chicago
1 7 ,4 5 7
9 ,1 6 0
St. Louis
Minn.
7 ,5 9 0
1 0 ,1 9 9
Kan. City
8 ,5 0 9
Dallas
San Fran*
2 0 ,7 2 1
# 167,467
Totals
Bills held overnight by New
t!
n
tf "
r M
NOTE:
tt
»»
»f
tt
# 1,166,5 00
# 1 ,1 1 8 ,5 5 0
BANKERS ACCEPTANCES
(000 Omitted)
Boston
New York
v
tt
"
A.
R*
R.
R.
By Allot Matur
ment frcm ities &; Holdings
New York
Oct* 8
Sales
§ 2 1 ,1 2 9
•3 5 ,7 3 4
#
838
Other Holdings
Close Oct. 8 , 1930
Other
Sales
Contracts
Bills
1 2 ,5 0 6
3 1 ,5 7 9
# 1 ,6 3 4
2 4 ,9 8 3
*
0
0
2*481
1 ,3 9 5
1 ,2 2 3
3 ,5 6 8
1 ,3 3 8
705
1 ,4 7 8
890
787
# 14,703
0
5 ,5 8 2
3 ,0 0 5
3 ,7 1 0
4 ,8 3 1
2 ,9 9 0
2 ,0 5 7
2 ,9 8 0
1 ,7 8 5
0
1 7 ,2 0 6
9 ,0 1 3
9 ,6 6 0
1 6 ,3 0 7
7 ,5 0 8
6 ,3 3 8
8 ,6 9 7
7 ,6 1 4
1 9 ,6 2 5
#154,676
0
0
0
0
1 ,3 1 4
0
0
0
0
0
# 27,931
104
107
45
555
144
39
25
32
32
74
$ 1 ,5 9 1
4,984
# 50,164
York for distribution to other F.R. Banks - - 14,899
"
u
lf
n Foreign Correspondents 12,026
Tot a l ------ $28,516
R. indicates Retained and A# indicate® Allotted in the above statement*
80
354
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
>4
■’- *
'
Authority £ »0« VffiSfr
MATURITIES AND RATES ON BILLS PURCHASED ffEEK ENDING OCTOBER 6, 1950
(000 Omitted)
31-60 days
1
1-30 days
1 7/8$
Boston
New York
Richmond
Chicago
San Francisco
$ 6,133
11,884*
0
Totals
$18,785
101
$
9,442*
35***
103
1,834
10
758
*
61-90 days
1 7/8-2 1/8$
Over 90-days
2 1/ 8$
0
0
0
0
58
# 6,298
27,691
70
113
3,101
#58
$37,273
64
6,365**
35***
0
451
#6,915
$11,515
Total
*Purohased at 1 7 / 8 - 2 1/8$, **Purchased at 1 7 / 8 - 2 1/4$, ***Purchased at
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING OCTOBER 8, 1930
£qqq omitted)
(Excluding Sales Contracts)
Gov ernment
Securities
Purchased
Sold
Matured
Totals
#2,119
2,167
0
$
48-*
B anker s
Acceptances
Totals
$37,273
0
66,447
$19,17415,153+ (Net Ghange
_______ 1-day holdover
and other bills)
$ 4*021-
$39,392
2,167
56,447
|l9,22215,153* (Net Change
_______ 1-day holdover
and other bills'
$ 4,069-*
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES OCTOBER 8* 1930
,
(000 Omitted)
(Including Sales Contracts)
Within
15-days
Gov’
t Securities $
150
Bills Purchased
125,273
Totals
16-30
days
0
29,878
<5)125,425 §29,878
31-60
days
61-90
days
91 days- Over 6
6 months months
Total
$25,214 $63,320 #211,063 #280,692
46,679
9,084
109
0
$600,439
211,023
$71,893 $92,404 $211,172
$811,462
$280,692
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»Q« V2R5>y
Ootober 4, 1930
Dear Mr* Matbosons
I
acknowledge receipt of and shall bring
to the attention of the members of the Federal Re
serve Board your letter of October 3rd, enclosing;
a report of penlimrlcet ope ration s for the period
from September 25, 1930 to October 1, 1950 inclu
sive.
Very truly yours.
S. 15. McClelland,
Assistant Secretary
Mr*- 1* B* ISatteson,
Assistant Deputy Governor,
o /o Federal lesenre Bank,
Hew York, f • Y*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
”
D E C L A siE E D
Authority £»Q«
i
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
P E R S O N A L
October 3, 1930
Dear Governor Meyer:
We are enclosing, for your files, a report of open
market operations for the period from September 25, 1930 to
October 1, 1930 inclusive, together with data received from
Federal reserve banks.
Honorable Eugene Meyer,
Governor, Federal Reserve Board
Washington, D. C.
Enel
RECEIVED
OCT 4
1930
omoKOF
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
E»Q«
%
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
*
UUflb‘
I.L'.bjx'iT1AL
October 5, 1930
Mr* E. A. Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
Dear.Mr. Goldenweiser,
Enclosed is a report of open market operations for
the period from September 25, 1950 to October 1, 1930 inclu
sive, together with data received from Federal reserve banks.
Encl.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
FOR SPECIAL CIRCULATION
fLBASE READ
✓
w
a t e r
Mptr-FHWCr*
.CR^ARY’
S OFFICE
MP TLY f INITI AL ^ ND RETUri' TL
Mr. Hamlin \ S
Mr. Janus w
Mr. Millerv ^
Mr. Cunnini
Mr. Pole’
F e d e r a l R e s e r v e B ai
of
N e w Yo r k
CONFIDENTIAL
October 3, 1930
Dear Governor Meyer^
E&closety is a report of open market operations for
the period from ^September 25, 1930 to October 1, 1930 inclu/
/
sive, together/with
data received from Federal reserve banks.
Very truly yours,
W. BT^attescai
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Vi/ashington, D. C.
Encl.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS WEEK ENDED OCTOBER 1, 1930
Holdings of Earning Assets of Federal Reserve Banks from October 2, 1929 to Date
(000 Omitted)
-192£ w
Oct.
2
Oct. 30
Nov, 27
Dec, 31
-193C —
Jan, 29
Feb. 26
Mar, 26
/pr. 30
May
28
June 25
July 30
Aug, 27
Sept, 24
Oct,
1
TOTAL
EARNING
ASSETS
$1,414,828
1,648,742
1,514,460
1,547,517
1,154,379
1,138,522
1,001,090
983,225
958,776
916,038
911,554
967,034
973,483
986,973
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
$127,202
$18,550
259,848
32,840
322,063
4,035
23,295
487,292
476,466
477,610
526,284
527,124
529,450
576,560
576,323
601,913
601,656
600,337
70
5,145
2,715
2,385
320
410
45
0
150
840
BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
$83,479
§239,339
29,111
310,774
7,271
250,044
155,235
236,974
185,677
232,521
143,772
161,846
130,066
94,735
127,965
159,137
192,161
180,830
72,795
66,785
113,710
47,718
45,494
7,578
2,797
4,137
5,582
12,278
BILLS
DISCOUNTED
$930,633
991,038
912,349
632,421
406,941
342,781
206,829
233,452
247,046
231,505
197,101
193,275
167,162
185,916
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OP SAL^S CONTRACTS)
______________ DURING WEEK ENDED OCTOBER 1, 1950______
(000 Omitted)
Boston
New York
Philadelphia
Gleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
N, Y. holdovers
and other bills
Totals
GOVERNMENT SECURITIES
Balance
Net
Oct, 1
Ghange
0
$ 46,176
$
186,240
1 ,30052,252
0
57,855
0
16,983
0
12,706
2000
81,128
23,899
0
26,124
181+
28,736
0
29,229
0
39,009
0
$600,337
BANKERS ACCEPTANCES
Net
Balance
Ghange
Oct. 1
$
733$ 19,727
31,097
5,1860
0
2,09320,307
31510,553
53+
12,147
17,457
3,2769,160
937697,590
10|199
1,9345898,509
20,721
398-
$1,319-
13,363
4,146+
$180,830
$11,531-
BILLS DISCOUNTED
Balance
Net
Oct. 1
Ghange
$ 12,512
$ 2,281+
2,254+
26,392
2,479+
16,914
5,239+
20,412
18,374
66226,497
1,890+
5,345+
16,631
2,028+
19,064
274,012
8,803
2011,32810,633
5,672
544-
$185,916
$18,754+
CQ
ll
o
COMMENT
WEEK ENDED OCTOBER 1, 1930
Total earning assets of the System showed an increase of $13,490,000 for
the current statement week. The changes by classification consisted of increases
of $18,754,000 and $7,386,000 net respectively, in bills discounted and investments
held under sales contracts and decreases of $1,319,000 and .”
>11,331,000 respectively,
in outright purchases of government securities and bankers acceptances. Th& in
crease in sales contracts consisted of $690,000 in government securities and
$6,696,000 in bankers acceptances*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q»
2
Money
Market
/
le money market banks had a sul mtial surplus of reserves
at the opening of business on Thursday, September 25, the initial day of
the past reporting period. This excess, however, was absorbed during
the remainder of the calendar week through losses resulting chiefly from
currency withdrawals from the Reserve Bank and a net outflow of funds to
other parts of the country * including transfers of funds to Cuba through
the Atlanta bank. In addition, there occurred a large month-end increase
in reserve requirements, so that at the close of business on Saturday
tho banks' reserves were in deficit to a rather marked extent.
This deficit carried over the week-end, so that on Monday morn
ing the accumulated shortage was equal to an impairment of $38,000,000
for one day, and asmall net return flow of funds from other centers
daring the following two days only partly counterbalanced this deficiency.
In order to balance their average reserve position on Tuesday, the New
York City member banks borrowed $77,000,000, and in addition a substantial
volume of bills was sold to the Reserve Bank, part of which was in the
- form of repurchase agreements. Thus, in balancing average reserves for
the period, there was created a large excess of actual reserves at the
opening on Wednesday, which together with a sizeable gain during the day
in commercial and agency transactions provided the funds for a retire
ment of Reserve Bank credit in an amount approximately equal to the in
crease of the previous day.
Call money remained at 2 per cent on the Stock Exchange until
Monday, September 29, when the renewal rate was reduced to 1 1/2 per
cent, the lowest in fifteen years. On the following day, however, the
renewal rate was returned to 2 per cent, and call money held at this
level on the Stock Exchange through the remainder of the period.
Federal funds rose from a low of 1/4 per cent a week ago to a peak of
2 1/4 - 2 l/2 per cent at the month-end, but subsequently declined, and
at the close of business today the quotation was reported to be 1 per
cent.
The only change during the past week in the bid and asked
quotations for time money was a slight easing in the rates for four • >
months' loans, v/hich are now quoted at 2 1/4 - 2 1/2 per cent, the same
as for the 90-day period.
Activity was confined principally to small
loans for 4 months at 2 1/2 per cent, and for 6 months at 2 3/4 per cent.
Commercial paper dealers report that new drawings of prime
paper, which they have received during the past week, have moved rapidly
into investors' portfolios. Generally, new paper is said to be in small
volume, and consequently only part of the continued substantial demand
for the best names is currently satisfied. Hiring the week there was a
special transaction consisting of a sizeable block of prime paper matur
ing in 60 days which was sold at 2 1/2 per cent, but otherwise there
has been no indication of any lowering of rates. The rate for 4 to 6
months' prime paper continues at the 3 per cent figure which has prevailed
during the two months just passed.
Government
Security
Market
The market for United States Government securities was strong
and active. During the first four business days of the current state
ment week the demand for practically all issues of government securities
was exceptionally strong and, on a heavy turnover, prices of all issues
advanced fractionally, the long-term bonds establishing a new high aver
age selling price for the year of 105,02 as compared with the previous
high for the year of 104.77. On the last two days of the reporting week
the demand slackened somewhat and while prices in general were firm there
were some fractional recessions from the high levels during the week and
the average selling price for the long-term bonds declined to 104.91, a
level still above the high point for any previous week this year,
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0»
3
2
2
3
3
Dealers1 Offering Prices at the Close of the Current Statement Week
Previous Statement Week
Net
Approx,
Yield
Price
Change
Issue
1.35%
100 12/32
1/4$ Cert, of Ind. due Dec. 15, 1930
+2/32
2.00$
7/8$ "
" »♦
" June 15, 1931
100 19/32
100 8/32
+5/32
2.10$
3/8$ "
f* "
" Sept. 15, 1931
1/2$ Treasury Notes Series "A”and **B"
100 24/32
1.81$
+1/32
called for payment Mar. 15, 1931
101 1/32
+3/32
2.00$
1/2$ Treasury Notes due Dec. 15, 1932
1 3/4$ - 1 3/8$ discount
Treasury Bills B Nov. 17, 1930
Issue
lsi; 3 l/2s
1st 4 l/4s
4th 4 l/4s
_
_
_
Closing Prices on New York Stock Exchange at the Close of
the Current Statement Week and Nat Changes from
Close of the Previous Statement Week
----irer*
Price
Price
Change
Issue
108 23/32
1944-t>4
Treas. 4s
+4/32
101 4/32
112 28/32
102 12/32
+7/32
4 l/4s 1947-52
w
106 15/32
3 3/4s 1946-56
+7/32
103 12/32
*»
3 3/8s 1943-47
102 10/32
w
3 3/8s 1940-43
102 1/32■
Net
Change
+13/32"
+ 9/32
+10/32
+ 7/32
+11/32
Bankers
Acceptances
Dealers* offerings of unendorsed bankers acceptances continued
at the following rates: 1 7/8 per cent for 30s, 60s and 90s, 2 per cent
for 120s and 2 1/4 per cent for 180-day bills,
Reports
week
ending
Oct. 1
Boston reports that some increase was noted in the demand for
bills in its market during the past period due mostly to cheap call
money rates. This demand, however, did not hold and with a slight in
crease in the supply of new bills dealers, as heretofore,were obliged to
forward their bills to offices in other cities. Offerings to the Re
serve bank continued small. The New York bill market was more active
this week than it has been for the past several weeks. The greater
part of the week there was a good demand which came principally from
local banks who were buying for their own accounts and for the accounts
of foreign correspondents. This demand exceeded the supply most of the
week, but on Tuesday, the last day of the month, money was finner and
dealers1 purchases exceeded their sales considerably on that day. At
the close of the week dealers* portfolios had only been reduced slight
ly. Philadelphia reported that its acceptance market showed little
change from the previous week. There was a fair amount of new bills
offered during the week with practically no demand. Chicago reports
that the supply of bills was limited during the past week with the
demand light. Dallas’reports that its bill market was quiet during
the past week with a small demand. Offerings to the Reserve bank were
light.
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:
Sales of $1,000,000 - 4 1/4% Fourth Liberty Loan bonds, account
Government Life Insurance Fund
500,000 - 4 1/4$ Fourth Liberty Loan bonds, account
German Special Deposit Account
3,700,000_- 3 1/2$ Treasury Notes, Series C, account
__________
Alien Property Custodian
$5,200,000 - Total Sales
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
During the current statement week a sale was made from the holdings in
the System Account to a foreign correspondent of
$5,000,000 - 3 1/2$ Treasury notes called
for payment on March 15, 1931
at a price to yield about 1.95$
This sale was replaced in the System Account by purchase of a like par amount of
2 3/8$ Treasury certificates due September 15, 1931, at a price to yield about
2.25$.
These transactions did not change the total amount of holdings in the
System Account, which remained at the close of business Wednesday, October 1,
1930, at $402,300,000.
The participations by Federal reserve banks and the
classification of issues at the close of the statement week were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Eallas
San Francisco
$ 45,472,500
73,851,000
37,245,000
47,690,000
15,830,500
10,146,500
61,201,000
15,274,000
18,248,500
28,733,000
19,241,000
29,367,000
Totals
$402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Nov. 17 *
Dec. 15,
June 15,
Sept,.15,
Mar. 15,
Series
Dec. 15,
Oct. 15,
1930 - Treasury Bills $ 22,214,000
1930 - 3 1/4$ c/i
78,745,000
1931 - 2 7/8$ tt
80,131,000
1931 - 2 3/8$ tt
14,130,000
1 9 3 1 - 3 1/2$ T/N
’
♦A”and "B"
171,070,100
1932 - 3 1/2$ w
35,411,900
1938 - 4 1/4$ 4th L/L
598,000
$402,300,000
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
___________________FROM SEPTEMBER 25 TO OCTOBER 1, 1950, INCLUSIVE___________________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Phila delphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Purehases
$ 565,000
918,000
463,000
592,500
197,000
126,000
760,500
190,000
227,000
357,000
239,000
365,000
Totals
#5,000,000
New York
Atlanta
Minneapoli s
Purchases
#3,700,000
76,000
982,350
Totals
|4,758,350
#
Sales
565,000
918,000
463,000
592,500
197,000
126,000
760,500
190,000
227,000
357,000
239,000
365,000
#5,000,000
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES'
Issue
Sales
Issue
t Sec.
Misc. Gov’
Misc. Gov't Sec*
#5,000,000
tf
tt
»
ft
tt
275,950
"
M
tf
tt
ft
tr
"
800,700
#6,076,650
BANKERS ACCEPTANCES
(000 Omitted)
Boston
New York
Phila.
Cleve.
Richmond
Atlanta
Chicago
St. Louis
Minn.
Kan. City
Dalla s
San Fran#
Holdings Purchased
Sept. 24
Own Mkt.
$ 20,460 $ 1,917 R.
36,283
8,071 "
15,791 A.
0
0
22,400
0
10,868
0
12,09 4
590 R.
20,733
0
10,097
0
7,659
200 "
12,133
0
9,098
299 *
21,119
3,056 "
By Allotment from
New York
Maturities &
Sales
Holdings
Oct. 1
# 1,833
0
$ 4,483
13,257
# 19,727
31,097
0
2,184
1,344
1,388
3,227
1,241
797
1,441
1,037
1,299
0
4,277
1,659
1,925
6,503
2,178
1,066
3,375
1,925
4,753
0
20,307
10,553
12,147
17,457
9,160
7,590
10,199
8,509
20,721
Other Holdings
Close October 1,1930
Sales
Other
Contracts
Bills
#
933
#
80
5,407
353
0
0
0
0
1,302
0
0
0
0
4,636
104
107
45
532
144
39
25
32
32
74
#15,791
#45,401
Totals
#12,278
#182*944 #29,924
#167,467
Bills held overnight by New York for distribution to foreign correspondents - --
$ 1,567
NOTE:
11,796
$>13,363
R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £*0* VTBSfr
MATURITIES AND HATES ON BILLS PURCHASED WEEK ENDING OCTOBER 1, 1950
(000 Omitted)
1-50 days
1 7/8%
51-60 days
1 7/8$
Boston
New York
Atlanta
Minneapolis
Dallas
San Francisco
$ 1,021
15,513
150
0
0
59 5
|
Totals
$17,279
$10,735
555*
7,373
440*
0
299
2,088
Over 90-days
61-90 days
1 7/8%
Totals
361
976
0
200
0
375
Q
0
0
0
0
0
$ 1,917
23,862
590
200
299
5,056
$1,910
0
$29,924
|
Purchased at 2fo
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING OCTOBER 1, 1930
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
Totals
$ 9*758
11,077
0
$ 1,519-
Bankers
Acceptances
Total
$29,924
0
45,401
$15,4774*146+ (Net Change
1-day holdover
and other bills)
$11,551-
$59,682
11,077
45,401
$16,7964,146+
(Net Change
1-day holdover
and other bills
§12,650-
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES OCTOBER 1, 1930
^qqq omitted)
(Including Sales Contracts)
Within
15-days
16-50
days
51-60
days
61-90
days
91 days6 months
Over 6
months
Gov't Securities $
840
Bills Purchased
106,448
0
59,584
$25,214
42,989
$85,520
4,172
§212,079
$279,724
$601,177
195,108
§107,282
$59,584
$68,205
$87,492
$212,200
$279,724
$794,285
Totals
121
Totals
Reproduced from the Unciassf ed / Declassified Holdings of the National Archives
” DECLASSIFIED
Authority £»Q« \3RSy
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
P E R S 0 N A L
September 26, 1930
Dear Governor Meyer:
We are enclosing, for your files, a report of
open market operations for the period from September 18,
1930 to September 24, 1930 inclusive, together with data
received from Federal reserve banks.
Very truly yours,
W. B. Matte
Assistant Deputy Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
*
Reproduced from the Unclass f ed I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
<&>
F e d e r a l. R e s e r v e B a n k
of
Ne w Yo r k
^5%
CONFIDENTIAL
September 26, 1950
Mr. E. A. Goldenweiser,
Director, Division of Research'and Statistics,
Federal Reserve Board,
Washington, D. G.
Dear Mr. Goldenweiser:
Enclosed is a report of open market operations for
the period from.September 18, 1930 to September 24, 1930 in
clusive, together with data received from Federal reserve
banks.
Very truly yours,
...
-------
Assistant Deputy Governor
Encl.
Reproduced from the Unclassified^Declassified*Holdings of-the National Archives
DECLASSIFIED
Authority E«Q« f f l S ?
't
F e d e ra l R e s e rv e B a n k
OF NcW 'YOftK"
CONFIDENTIAL
September 26, 1930
Dear Governor Mey5r:
Enclosed is a report of open market operations
for the period from September 18, 1930 to September 24,
1930 inclusive, together with data received from Federal
reserve banks.
Very' trul^
W. B. Matte^on
Assistant Dejltty Governor
Honorable Eugene Meyer,
Governor, Federal Reserve Board,
Washington, D. C.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
■-
Authority fc»Q«
CONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS WEEK ENDED SEPTEMBER 24, 1930
(000 Omitted)
TOTAL
EARNING
ASSETS
$1,375,467
1,648,742
1,514 ,460
1,547,517
GOVERNMENT SECURITIES
Outright
Sales
Purchases
Contracts
$26,086
#125,973
259,848
32,840
322,063
4,035
23,295
487,292
.BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
$84,485
$179,449
29,111
310,774
7,271
250,044
236,974
155,235
BILLS
DISCOUNTS
-1929§944,399
Sopt. 25
Oct. 30
991,038
912,349
Nov. 27
Dec* 31
632,421
-1930406,941
Jan. 29
72,795
.,154,379
185,677
476,466
70
66,785
342,781
Feb* 26
.,138,522
5,145
477,610
232,521
206,829
143,772
112,710
,001,090
Mar, 26
526,284
2,715
Apr. 30
47,718
2,385
233,452
982,225
527,124
161,846
247,046
May
45,494
130,066
28
320
529,450
958,776
231,505
94,735
7,578
June 25
410
576,560
916,038
July 30
127,965
197,101
2,797
911,554
576,323
45
193,375
4,137
Aug. 27
159,137
967,034
601,913
0
163,149
203,119
S£pt. 17
5,742
989,415*1
420
609,963*
167,162
5,582
Sept. 24
192,161
150
973,483
601,656
♦
Includes •$45,000,'000 special one-day Treasury certificate of indebtedness
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
DURING WEEK ENDED SEPTEMBER 24, 1930______________
(000 Omitted)
GOVERNMENT SECURITIES
BANKERS ACCEPTANCES
BILLS DISCOUNTED
Balance
Net
Net
Net
Balance
Balance
Sept.24
Change
Sept.24
Change
Change
Sept.24
$ 265+
Boston
10,231
$ 46,176
•3 20,460
§ 202+
$ 0
24,138
2,535+
New York
187,540
7,8505,90836,283
23514,435
0
Philadelphia
52,252
0
0
Cleveland
15,173
3,363+
57,855
745+
0
22,400
89+
Richmond
19,036
1+
10,868
27316,983
10924,607
Atlanta
12,906
203+
12,094
451189+
1,279+
11,286
Chicago
81,128
65020,733
23,899
St. Louis
17,036
8220
25310,097
4,039
1987,659
20925,943
Minneapolis
11169+
9,004
Kansas City
28,736
0
12,133
83782529,229
11,961
Dallas
0
9,098
110+
39,009
San Francisco
21,119
1,361+
6,216
4080
N. Y. holdovers
and other bills
9,217
6,724Totals
$601,656
$8,307-
$192,161
$10,9 58-
$167,162
$4,013+
COMMENT ON CHANGES WEEK ENDED SEPTEMBER 24,1930
Total earning assets of the System (exclusive of the $45,000,000 special
one-day Treasury certificate of indebtedness issued by the Treasury to cover the
overdraft September 17) showed an increase of $29,068,000 for the current statement
week. The •changes by classification consisted of increases of $36,693,000(exclusive
of Treasury overdraft certificate of indebtedness) and -£4,013,000 respectively in
outright purchases of government securities and bills discounted, and decreases of
^10,958,000 and $430,000 net respectively, in outright purchases of bankers accept
ances and investments held under sales contracts. The change in the latter item
consisted of a decrease of §270,000 in government securities and $160,000 in bankers .
acceptances.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0»
2
Money
Market
On Thursday, September 18, the opening day of the reporting
week just completed, bank reserves were substantially in excess of re
quirements, but during this and the following two days losses through
income tax collections, a substantial movement of funds to other
conters, and currency withdrawals for week-end circulation, which wore
only partly offset by security purchases for tho Treasury Sinking Fund
and the Completion of replacement purchases of securities for the No?/ York
Bank’
s own investment account, completely absorbed this surplus. In
fact, actual reserves of the New York banks becamo slightly in deficit
on Saturday.
During the last three days of the reporting period a reversal
of the inter-district movement of funds placed a large credit at the
“
disposal of the money market. In addition, there was an unseasonal
return of currency from circulation and other miscellaneous gains which
were only partly absorbed by a decline in Reserve Bank bill holdings,
and an increase in member bank reserve requirements. Consequently, to
ward the end of the week bank reserves rose to a position of surplus
which was even more substantial than the excess which existed at the
opening of the period. This case, unusual for this tine of year, may
be ascribed to the release of funds by slack business activity.
The Stock Exchange rate for call money remained at 2 per cent,
but conditions in the outside market were somewhat easier in that toward
the end of the week loans were made at 1 per cent. Federal funds were
practically unlendable, and the market was quoted at 1/4 per cent
nominal*
The time money market remained exceedingly dull, while quoted
rates moved lower. Nominal quotations for maturities up to 4 months
showed a net reduction of 1/4 per cent during the past week, and 5 and
6 months* loans were reduced 1/2 per cent from the rates quoted on the
previous Thursday. By the end of the period limited trading was being
done in 30-day money at 2 per cent, in loans of nearly 4 months at
2 1/2 per cent, and in 6 months* money at 2 3/4 per cent. These are
new low rates for recent years - on the whole somewhat below the 1924
level.
Commercial paper dealers continued to report that the scarcity
of prime names was the principal reason for the small volume of sales.
A large potential investment demand existed, but it was only partly sat
isfied. The prevailing rate for prime names remained at 3 per cent.
Government
The volume of trading in the market for United States GovernSecurity
ment securities during the current statement week was considerably less
Market
than during the preceding period. The demand fell off for all issues,
with exception of the Fourth 4 l/4s for which the demand continued good,
and prices generally showed small fractional losses for the week. The
average selling price of tho long-term bonds at the close of the state
ment week was 104.64 as compared with 104*70 last week, and the high for
the year of 104,77. On Thursday the market was better.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
4
3
2
2
3
1/4$
7/8$
3/8fo
1/2%
3 1/2%
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
Issue
Price
Yield
Change
Cert, of Ind. due Dec. 15, 1930
100 12/32
-l/32
1.51
**
” *
” Tune 15, 1931
100 17/32
-1/32
2.12
”
«» *»
» Sept. 15, 1931
100 3/32
2.27
Treasury Notes Series MA”and **BW
called for payment Mar. 15, 1931
100 23/32
1.95
Treasury Notes due Dec. 15, 1932
-1/32
2.17
100 30/32
Treasury Bills n Nov. 17, 1930
1 7/8$ - 1 5/Qfo discount
Issue
1st 3 l/2s
1st 4 l/4s
4th 4 l/4s
-
-
-
-
-
•
Closing Prices on New York Stock Exchange at the Close of
the Current Statement Week and Net Changes from
Close of the Previous Statement Week
Net
Price
Price
Change
Issue
101
-3/32
1944-54
Treas, 4s
108 10/32
»
102 5/32
-1/32
4 l/4s 1947-52
112 19/32
103 5/32
3 3/4s 1946-56
106 5/32
3 3/8s 1943-47
102 3/32
101 22/32
3 3/8s 1940-43
Not
Change
-2/32
-4/32
-4/32
Bankers
Acceptances
Dealers* offering of unendorsed bankers acceptances con
tinued at the following rates during the current statement week:
1 7/8 per cent for 30s, 60s and 90s, 2 per cent for 120s and 2 1/4 per
cent for 180-day bills#
Reports
week
ending
Sept. 24
Boston reports that although there was a slight increase in
the supply of bills during the past period, there seemed to be no
material change in the local bill conditions.
The amount of bills
showed a sizeable increase but most of these bills were purchased for
foreign accounts.
Dealers still continued to forward their longer
maturities to New York necessitating the importation of bills of
shorter maturities to fill the small local demand. Philadelphia
reports that its acceptance market continued very quiet. Dealers
reported little activity either way with the result that portfolios
were practically unchanged. In Now York the bill market was slightly
more active this week than it has been for the past few weeks.
Dealers* purchases wore moderately larger, a modorato amount of grain
bills having appeared in the market. Their salos exceeded purchases
slightly and aggregate portfolios decreased accordingly. The demand
was practically all from local institutions who were buying for their
own account and for the accounts of foreign correspondents. Chicago
reports that there was no change in the bill market in its district
except possibly an increase in the supply of new bills. The demand
continued quiet. Dallas reports that its bill market was very dull
during the past week with very little demand and practically no
offerings to the reserve bank*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
4
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as followss
Sales of $
500,000 par amount Fourth 4 1/4$ Liberty Loan bonds , account
German Special Deposit Account
800,000 w
ff
3 1/3$ Series ”
0”Treasury notes, due
December 15, 1932, account Alien Property
__________
Custodian
§1,300,000 Total Sales
and purchases of $20,000,000 par amount 3 1/2$ Treasury notes called March 15, 1931,
account Sinking Fund,
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
IXiring the current statement week a sale was made frcan the holdings in the
-System Account to the Treasury, account Sinking Fund of
$12,350,000 - 3 1/2$ Treasury notes called for
payment March 15, 1931
In this connection the Treasury purchased $20,000,000 called notes for account of
the Sinking Fund, $7,650,000 of which was acquired by direct purchasa in the market,
and the balance of $12,350,000 was supplied from holdings in the System Account*
This sale from the System Account was replaced by purchase in the market of a lika
amount of short-term Treasury certificates and bills.
These transactions did not affect the total amount of holdings in tha
System Account which remained at the close of business Wednesday, September 24, 1&30,
at $402,300,000.
The participation by Federal reserve banks and the classification
of issues held at the close of the statement vjeek were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
$ 45,472,500
New York
73,851,000
Philadelphia
37,245,000
Cleveland
47,690,000
Richmond
15,830,500
Atlanta
10,146,500
Chicago
61,201,000
St. Louis
15,274,000
Minneapolis
18,248,500
Kansas City
28,733,000
Dallas
19,241,000
San Francisco
29,367,000
Totals
$402,300,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Nov. 17, 1930 - Treasury Bills $22,214,000
Dec. 15, 1930 - 3 1/4$ C/I
78,745,000
80,131,000
June 15, 1931 - 2 7/8$ "
Sept. 15, 1931 - 2 3/8$ "
9,130,000
Mar* 15, 1931 - 3 1/2$ T/N
Series "A" and "B"
176,070,100
Dec. 15, 1932 - 3 1/2$ ”
35,411,900
Oct. 15, 1938 - 4 1/4$ 4 th L/L
598,000
§402,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority fc»0«
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
FROM SEPTEMBER 18 TO SEPTEMBER 24, 1930, INCLUSIVE
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Purchases
$ 1,396,000
2,267,000
1,143,500
1,464,000
486,000
311,500
1,878,500
469,000
560,500
882,000
590,500
901,500
Sales
$ 1,396,00©
2,267,000
1,143,500
1,464,000
486,000
311,500
1,878,500
469,000
560,500
882,000
590,500
901,500
Totals
$12,350,000
$12,350,000
-
New York
Atlanta
Chicago
Minneapolis
Totals
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Purchases
Sales
Issue
Issue
$42,150,000* Misc. Gov’
t Sec.
$50,000,000* Misc. Gov’
t iSec.
»
tt
tt
tt
105,650
"
"
308,250
650,000**ser. "B" T/N
0
tt
tt
tt
400,050
410,500 Misc. Gov't Sec.
$42,858,300
$51,166,150
’
•‘
Includes special 1-day Certificate of Indebtedness of $3,000,000 bought and
$48,000,000 matured.
**Was held temporarily for resale to Treasury.
BANKERS ACCEPTANCES
(000 Omitted)
Other Holdings
By Allot- MaturClose Sept. 24, 1930
Holdings Purchased ment from ities & Holdings
Sales
Other
Sept. 17 Own Mkt.
New York
Sales
Sept, 24
Contracts
Bills
Boston
$ 20,258 $
300 R
$
79
$ 1,614 $ 1,712 $ 20,460
$1,929
New York
42,191
5,675 "
0
11,583
36,283
0
352
13,774 A
Phila.
0
0
0
0
104
0
0
Cleveland
21,655
0
2,113
1,368
107
22,400
0
Richmond
11,141
143 R
1,158
1,574
10,868
0
45
Atlanta
566
12,545
209 "
1,181
1,841
12,094
0
Chicago
144'
19,454
527 "
20,733
628
2,432
1,680
St. Louis
39
10,097
0
10,350
-0
1,046
1,299
Ivfinn.
7,868
0
25
7,659
0
659
868
Kan. City
12,133
0
12,970
0
1,172
2,009
32
Dallas
9,098
0
32
8,988
5 "
963
858
San Fran.
1,436
1,812
21,119
3,025
74
19,758
1,737 "
$5,582
$13,774 $26,604 $182,944
$1,599
Totals
$187,178 $22,370
Bills held over night by New York for distribution to other F. R. Banks -- •- 430
n
-tt
tt
tt
tt
tt
«
tt
tt
M foreign correspondents-- 7,188
-$9,217
NOTE:
R. indicates Retained and A. indicates Allotted in the above statement.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
6
MATURITIES Aid RATES ON BILLS PURCHASED WEEK END IMS- SEPTEMBER 24, 1930
(000 Omitted)
1-30 days
1 7/8$
Boston
New York
Richmond
Atlanta
Chicago
Dallas
San Francisco
Totals
0
8,201
18
124
0
0
1,165
31-60 days
1 7/836
$
$
$9,508
$10,654
Over 90-days
-
61-90 days
1 7/8%
181
9,741
105
58
2
0
567
$
119
1,507
20
27
525
5*
5
$2,208
Total
0
0
0
0
0
0
0
$
300
19,449
143
209
527
5
1,737
0
$22,370
'‘
Purchased at 2cjo
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENffPB SEPTEMBER 24, 1930
(000 Omitted)
(Excluding Sales Contracts and Special 1-day C/l)
Government
Securities
Purchased
Sold
Matured
Totals
Bankers
Acceptances
$52,209
15,516
0
$36,693+
Total
$22,370
0
26,604
$ 4,2346,724- (Net Change
_______ 1-day holdover
and other Mils)
$10,9 58-
$74,579
15,516
26,604
§32,459+
6,724- (Net Change
_______
1-day holdover
and other bills)
$25,735+
HOLDINGS OF GOVERNMENT SECURITIES AM) BANKERS ACCEPTANCES SEPTEMBER 24, 1930
(000 Omitted)
(Including Sales Contracts)
Within
15-days
Gov’
t Securities $
150
Bills Purchased 105,051
Totals
$105,201
16-30
days
31-60
days
61-90
days
91 days6 months
Over 6
months
Total
# 0
$25,214 $83,368 .$217,050 $276,024 $601,806
48,705
39,930
4,047 ______10
0
197,743
$48,705 $65,144
$87,415
$217,060
$276,024
$799,549
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
V
/h M .
i i jv
___—
Fe d e r a l R e s e r v e B a n k
of
z %
Ne w Yo r k
CONFIDENTIAL
September 19, 1930
Mr. E. A.Goldenweiser,
Director, Division of Research and Statistics,
Federal Reserve Board,
Washington, D. C.
De ar Mr. Gol d env/ei se r :
Enclosed is a report of open market operations for
the period from September 11, 1930 to September 17, 1930 in
clusive, together with date received from Federal reserve
banks.
Very truly yours,
'Jv. B. Matte son
Assistant Deputy Governor
%
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
v*
Authority £»Q«
I
i
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
P E R S O N A L
September 19, 1930
Dear Mr. Meyer:
We are enclosing, for your files, a report of open
market operations for the period from September 11, 1930 to
September 17, 1930 inclusive, together with date received
from Federal reserve banks.
Very truly yours,
or
Honorable Eugene Meyer, Jr.,
Governor, Federal Reserve Board,
Washington, D. C.
Encl.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority
£»Q.
F e d e ra l R e s e rv e B a n k
of
N e w Yo r k
CQUFIDJiiNTIAL
September 19, 1930
Dear Mr. Meyer1
Enclosed is a report of open market operations for
the period from September 11, 1930 to September 17, 1930 in
clusive, together with data received from Federal reserve
banks.
Very truly yours,
Honorable Eugene Meyer, Jr.,
Governor, Federal Reserve Board,
?mshington, D. C.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»0« \2B5T8*
^
confidential
REPORT 0? OPEN MARKET OPERATIONS WEEK ENDED SEPTEMBER V t § 1930
y"
Holdings of Earning Assets of Federal Reseifye Banks from September 18, 19ffi to Date
. (000 Omittedj
BILLS
QQYEBNMENT SECURITIES
BANKERS ACCEPTANCES
TOTAL
EARNING
Outright
Sales
Outright
Sales
-1929DISCOUNT!
ASSETS
Contracts Purchases
Contracts
Purchases
Sept, 18 #1 ,367,678
§933*916
$77,573
'"$163,530
#130,604
$47,005
944,399
179,449
84,485
Sept# 25 1 ,375,467
26,086
125,973
Oct. 30 1 ,648,743
29,111
991,038
259,848
310,774
32,840
912,349
7,271
Nov. 27
4,035
250,044
1 ,514,460
322,063
632,421
155,235
Dec. 31
1 ,547,517
236,974
23,295
487,292
-1930406,941
72,795
185,677
Jan. 29
1 ,154,379
476,466
70
342,781.
66,785
Feb. 26
477,610
5,145
232,521
1 ,138,522
206,829
143,772
112,710
2,715
Mar. 26
1,001,090
526,284
47,718
161,846
233,452
.982,225
2,385
Apr. 30
527,124
45,494
247,046
130,066
May
28
958,776
529,450
320
7,578
June 25
94,735
231,505
916,038
576,560
410
2,797
197,101
July 30
127,965
911,554
45
576,323
193.275
4,137
159,137
967,034
•*ug7 27
601,913
0
15,697
Sept. 10
183^195
177,423
985,120
601,863
170
163,149
Sept. 17
203,119
5,742
989,415*
609,963*
420
^Includes $45,000,000 special one-day Treasury certificate of indebtedness
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
j- ' ,
(000 Omitted)
GOVERNMENT SECURITIES
BILLS DISCOUNTED
BANKERS ACCEPTANCES
Net
Net
Net
Balance
Balance
Balance
Sept.17
Change
Sept.17
Sept,17
Change
Stessi
$
93**
Boston
f> 9,966
$
278+
$ 46,176 $ 0
$ 20,258
4,519New York
42,191
7,444+
21 *603
4,123+
195,390
14,670
3,3630
Philadelphia
0
0
52,252
1,33PCleveland
1,162+
57,855
121,655
11,810
Ricimond
985+
18,947
1*35(&*
11,141
16,982
15,98p"*
1,469+
34,716
Atlanta
12,703
1812,546
1*9
5*^
Chicago
11,097
$1,778
650+
19,454
1,295+
743,*
23,899
St. Louis
23+
17,858
0
10,350
9^t
4,237
170+
Minneapolis
25,954
26+
7,868
842+
8,835
Kansas City
323*
28,736
0
12,970
l,182n*
29,229
12,786
151+
8,988
Dallas
0
39.009
597r
San Francisco
1,218+
6 ,-624
0
19,758
N. Y. holdovers
and other bills
13,980+
15,941
Totals
#609,963
$8,100+
$203,119
$25,696+
$163,149
$20,046-
COMMENT ON CHANGES WEEK ENDED SEPTEMBER 17, 1930
Total earning assets of the System (exclusive of the 145,000,000 special
one-day Treasury certificate of indebtedness issued by the Treasury to cover the o?a>
draft) showed a decrease of #40,705,000 for the current, statement week. The changes
by classification consisted of an increase of $25,696,000 in outright purchases of
bankers acceptances, and decreases of $36,900,500 (exclusive of Treasury overdraft)
and $20,046,000 respectively in outright purchases of government securities and
bills discounted, and $9,705,000 net in investments held under sales contracts. Hie
change in the latter item consisted of an increase of $250,000 in government secur
ities and a decrease of $9,955,000 in bankers acceptances,
.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
■
Money
Market
Only a slight easing in call money accompanied the Treasury
financing operations during the past week. The renewal rate for call
loans which had been 2 1/2 per cent for some days continued at that
level until Wednesday, the 17th, when following declines in the new loan
charge on Monday and Tuesday, a 2 per cent renewal rate was established.
Subsequently the Exchange rate remained at that level. In the outside
market funds were loaned during much of the period at as low as 1 1/2
per cent, and on Thursday a 1 1/4 per cent rate was quoted on some money.
At the opening of business on Thursday, the 11th, bank reserves
were substantially in excess of requirements, but during this and the
succeeding tv/o days currency withdrawals and substantial sales of secur-j
ities from Reserve Bank holdings (in connection with the Treasury financr
ing period turnover) absorbed this surplus; in fact, a small deficit in
reserves developed on Saturday, and consequently carried over until the
opening of business on the 15th. On September 15, Treasury redemptions
of certificates of indebtedness, and interest and other Treasury payments
affecting the money market exceeded income tax collections by over
#190,000,000, in addition to which the interdistrict flow of funds was
considerably in favor of this market. Consequently in order to absorb
part of the surplus of funds arising from the day’
s operations, it was
propitious to sell to New York Gity banks participations for $170,500,000
in the special one-day Treasury certificate of indebtedness to cover the
#274,000,000 Treasury overdraft. All but $1,000,000 of the total Treas
ury overdraft with the Reserve System was concentrated at New York.
On Tuesday, the 16th, the banks’reserves were only moderately
above requirements, reflecting in part a marked increase in the require
ment figures. Income tax collections on that day took $85,000,000 more
out of this market, and the interdistrict flow of funds turned outward
due to heavy tax collections outside of New York. In addition, losses
occurred through Reserve Bank bill and security operations. Accompany
ing these losses and a decrease of the Treasury overdraft to #122,000,000,
#102,500,000 of participations in the special Treasury certificate were
retired, leaving the New York Gity banks still participating in the over
draft to the extent of #68,000,000*
As a result of Tuesday’
s operations and despite a decline in
reserve requirements from the September 15 peak, no great excess of bank
reserves existed at the opening of business on Wednesday, and with further
income tax collections and a continued substantial outflow to other cen
ters taking funds from the market, the remaining #68,000,000 of member
bank participation in the Treasury special certificate was retired and
#50,500,000 of replacement security purchases, which had been deferred
until money market conditions warranted, were made for the New York Bank’s
own investment account. The net effect of these transactions was to
place the banks in a favorable reserve position for the first day of the
reserve period so that further income tax collections and outgoing trans
fers could be met without undue strain. On this day the Treasury over
draft was reduced to #45,000,000, and on the following day, (Thursday,
the 18th) was practically eliminated with some Treasury funds going back
into the market through security purchases. The effect of continued tax
collections in New York and outgoing transfers was counterbalanced by
the completion of the replacement security purchases on Thursday and
Friday.
Time money was dull and unchanged during the week. Two, three,
four and six months* loans were arranged in small amounts at 2 1/4,
2 3/4, 3 and 3 1/4 per cent, respectively.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
Efia
s
Continued inability of dealers to secure adequate supplies of
new paper restricted the activity of the commercial paper market* Bank
investment demand at the same time continued good* Prime names were
quoted at 5 per cent, and less well known material at 3 1/4 and 3 1/2
per cent, unchanged from a week ago.
Government
Security
Market
The market for United States Government securities during the
current statement week was strong and active. Dealers reported that a
large volume of exchanges were effected in the market of the 3 1/2%
Series ’
’
A”and MB”Treasury notes called for payment on March 15, 1931
for other issues of government securities principally for the long-term
bonds which were in very good demand. The average selling price of the
long-teim bonds at the close of the statement week was 104,70 as com
pared with 104*48 last week and the high for the year of 104,77.
3
2
2
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,
Yield
Change
Issue
Price
1/4$ Cert, of Ind. due Dec. 15, 1930
-1/32
1,52
100 13/32
2,09
7/8$
w
" "
” June 15, 1931
100 18/32
2.27
+3/32
3/8$
"
" "
» Sept. 15, 1931
100 3/32
1/2$ Treasury Notes Series nAn and MBW
2.01
100 23/32 -1/32
called for payment Mar, 15* 1931
2.16
100 31/32
+1/32
1/2$ Treasury Notes due Dec, 15f 1932
1 7/8$ - 1 1/2$ discount
Treasury Bills w Nov* 17» 1930
-
*
-
Closing Prices on New York stock Exchange at the Close
of
the Current Statement Week and Net Changes from
_________ Close of the Previous Statement Week ,____________
Net
Net
Issue
Price
Change
Issue
Price
Change
1st 3 1/2s 101 3/32 +3/32 Treas. 4s
1944-54 108 12732
+15/32
1st 4 l/4s 102 6/32 +4/32
"
4 l/4s 1947-52 112 23/32
+ 7/32
4th 4 1/4s 103 5/32 *5/32
n
3 3/4s 1946-56 106 9/32
+15/32
w
3 3/8s 1943-47 102 3/32
+ 8/32
"
3 3/4S 1940-43 101 22/32
+ 9/32
Bankers
Acceptances
Dealers' Offerings of unindorsed bankers acceptances contin
ued at the following rates during the current statement week; 1 7/8 per
cent for 30s# 60s and 90s# 2 per cent for 120s and 2 1/4 per cent for
180-day bills#
Re-ports
week
end m g
Septv 17
Boston reports that the bill market in its district continued
to remain in a sluggish condition# Few new bills made their appearance
and the supply again fell off. There was practically no demand for bills
and dealers were obliged to forward most of their bills to their offices
in other cities, most of them continuing to go to New York for foreign
accounts. In New York the bill market was quiet throughout the week,
dealers' purchases declined moderately as compared with last week. Sales
were slightly in excess of purchases and dealers' aggregate portfolios
were reduced by about $4,500,000. Philadelphia reports that its accept
ance market was less active. The supply of new bills was smaller with
the demand extremely light, Chicago reports that the bill market in its
district was very dull with both the demand and supply very light.
Dallas reports that its bill market was very dull during the past week
with very little demand and practically no offerings to the reserve bank.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
4
SYSTEM SPECIAL INVESTMENT ACCOUNT - GOVERNMENT SECURITIES
Transactions effected in the System Account during the current statement
week were related primarily to the tax period and consisted of
Redemption on
September 15
$87,215,000 maturing 3 1/8$ Treasury certificates
1,855,000
n
Treasury Bills
Total Redemptions - $29,070,000 which were replaced by purchase of a like
par amount of various issues of short-term government securities
Exchange on
September 15 of $5,130,000 maturing Treasury Bills against allolment
by the Treasury of a like amount of the
new Treasury 2 3/8$ certificates on sub
scription entered for $34,200,000.
Exchange in
the market of $• 5,000,000 - 2 7/8$ certificates due June 15, 1931
5,000,000 - 3 1/4$
"
" Dec. 15, 1930
13,000,000 - 4 1/4$ Fourtl! Liberty Loan bonds
$23,000,000 for a like amount of various issues of short
term government securities.
The active market for United States Government securities during the past week
afforded an opportunity of exchanging almost all the holdings of Fourth 4 1/4s in
the System Account and in the Investment Account of the Federal Reserve Bank of
New York for shorter maturities.
There was also the opportunity to exchange ad
vantageously in the market the $10,000,000 aggregate amount of Treasury certifi
cates due next December 15 and June 15, referred to above, for other short-term
issues.
In order to steady the conditions in the money market over the Treasury
financing period, purchases were made for the System Account (in replacement of
the redemption of the September 15 maturities and a large portion of the other
securities exchanged) from the holdings in the Investment Account of the Federal
Reserve Bank of New York and delivery of the purchases made in the market in re
placement of these and other sales and maturities from the holdings in the latter
account were deferred until September 17, 18 and 19 in order to provide a partial
offset to the easing effect of Treasury tax day operations.
The aggregate amount
of such deferred deliveries for the Investment Account of the Federal Reserve Bank
of New York was $87,500,000*
In addition participations in the Treasury
$274,000,000 special one-day certificate issued to the Federal Reserve Bank of New
York were sold to New York City banks to an amount of §170,000,000 on September 15
and $68,000,000 on September 16; as a consequence the market was relatively undis*r
turbed by tax day operations.
The aforementioned transactions in the System Account did not affect the
amount of total holdings in the Account which remained at the close of business
Wednesday, September 17, 1930, at $402,300,000.
The participation by Federal
reserve banks and the classifica'tion of issues at the close of the statement weofc
were as follows:
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
$ 45,472,500
73,851,000
37,245,000
47,690,000
15,830,500
10,146,500
61,201,000
15,274,000
18,248,500
28,733,000
19,241,000
29,367,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Nov.
Dec*
June
Sept,
Mar.
Mar.
Dec.
Oct.
17,
15,
15,
15,
15,
15,
15,
15,
1930
1930
1931
1931
1931
1931
1932
1938
-
Treas.Bills
$ 17.214.000
76.895.000
3 1/4$ C/I
2 7/8$ V
78,631j000
2 3/8$
5,130,000
3 1/2$ T/N "A" 60,114,100
3 1/2$ w "B" 128,306,000
3 1/2# M
35,411,900
598,000
4 l/4$ 4th L/L
$402,300,000
.-Totals
$402,300,000
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week (exclusive of Treasury financing) were as follows:
Sale of #
w
70,000 - Fourth 4 1/4$ Liberty Loan bonds, account German
Special Deposit Account
M 1,000,000 - Fourth 4 1/4$ Liberty Loan bonds, account
__________
Government Life Insurance Fund
#1,070,000 - Total Sales
and purchase of $20,000,000 - 3 1/2$ Treasury notes called March 15, 1931f
account Sinking Fund.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q*
6
ITEMIZED STATEMENT J TRANSACTIONS IN GOVERNMENT Sk JITIES AND BANKERS
ACCEPTANCES AFFECTING THE INVESTMENT ACCOUNT OF AIX FEDERAL RESERVE BANKS
FROM SEPTEMBER 11 TO SEPTEMBER 17, 1930, INCLUSIVE
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Sales
Purchases
# 6,465,000
$ 6,465,000
Boston
10,501,000
New York
10,501,000
5,295,500
5,295,500
Philadelphia
6,779,500
Cleveland
6,779,500
2,251,500
Richmond
2,251,500
1,442,500
Atlanta
1,442,500
8,701r500
8,701,500
Chicago
2,172,000
St. Louis
2,172,000
2,595,500
Minneapolis
2,595,500
4,085,500
Kansas City
4,085,500
2,735,000
Dallas
2,735,000
4,175,500
San Francisco
4,175,500
#57,200,000
Totals
#57,200,000
New York
Cleveland
Atlanta
Chicago
Minneapolis
San Francisco
Totals
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Sales and
Maturities
Purchases
Issue
#490,936,000*
t Sec.
$498,380,000* Misc. Gov’
1,000
0
121,900
105,950 Misc. Gov’
t Sec*
2,000
0
650,000** Treasury Notes
1,064,050
t Sec.
1,089,950 Misc. Gov’
Spec, 1-day C/I
1,000,000
1,000,000
#493,124,950
$501,225,900
Issue
Gov’
t Sec.
15/30 C/I
Gov’
t Sec*
15/30 C/I
t Sec.
Misc. Gov’
Spec. 1-day C/I
Misc.
Sept.
Misc.
Sept.
* Includes $441,000,000 special one-day Certificates of Indebtedness to cover
Treasury overdraft which was reduced to $45,000,000 on September 17, 1930*
** Held temporarily for resale to Treasury*
BANKERS ACCEPTANCES
--- tTecT")----------Other Holdings
Close S©pt% 17/30
By Allot Matur
ities & Holdings
Holdings
Purchased ment from
Sales""' "Other
Sept. 10
Own Mkt. New York
Sales
Sept. 17
Contracts
Bills
Boston
#
79
# 19,980
|
588 R # 1,532 ' # 1,842 $ 20,258
#1,484
New York
38,068
42,191
352
0
7,840
2,648
11,963 *
14,486 A
Phila.
0
0
0
0
0
104
0
Cleve.
107
993
21,655
0
20,493
0
2,155
Richmond
268
11 *141
0
45
10,156
0
1,253
Atlanta
0
11,076
386
12,545
500
193 R
1,662
Chicago
18,159
1,610
160 "
2,364
1,229
19,454
144
St. Louis
10,327
0
10,350
0
39
1,001
1,024
Minn.
7,698
0
666
496
7,868
0
25
Kan. City
12,970
0
12,128
1,309
32
0
467
8,988
Dallas
8,837
957
8v>6
0
32
30 M
San Fran.
1*042
19,758
0
74
18,540
696 "
1,564
Totals
#5,742
$ 1,533
114,486
$116*400 #187,178
#175,462
#28l u e
Bills held over night by New York for distribution to other F* R. Banks - - 4,053
"foreign correspondents 10,355
T o t a l -------- --- - #15,941
NOTE: R. indicates Retained and A. indicates Allotted in the above statement.
m
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
a
ooo
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING SEPTEMBER 17, 1950
Omitted)
x 7 /a t ,
61-90 days
1 7/8$
$ 0
19,868*
85
75
16
551
*
$
$20,615
$6,458
1-50 days
1 7/8$
Boston
New York
Atlanta
Chicago
Dallas
San Fran.
Totals
*Purchased at 1 7/8-2$
51-60 days
e
6,$2$**
58
0
4
141
582
532**
50***
85
0
. 4
$1,055
**Purchased at 1 7/8-2 1/8$
Over 90-days
2 1/8$
Total
$ 0
0
0
0
10
__ 0
$
588
26,449
195
160
50
696
$10
$28,116
***Purchased at 2$
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING SEPTEMBER 17,1950
(QQQ omitted)
'
(Excluding Sales Contracts and Special 1-day C/I)
Government
Securities
Purchased
Sold
Matured
$116,426
152,957
569
Totals
$ 56,900-
Bankers
Acceptances
Total
$28,116
0
16,400
$11,716+
15,980+(Net Change
1-day holdover
& other bills)
$25,696+
$144,542
152,957
16,769
$ 25,18415,980+(Net Change
________ 1-day holdover
& other bills)
$ 11,204-
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES SEPTEMBER 17, 1950
fooo^ctoittedl
(Including Sales Contracts and Special 1-day C/l)
Within
15-daya
Govft Securities
Bills Purchased
Totals
16-50
days
51-60
days
61-90
days
$ 45,420 $ 0
85,508
75,576
$ 0
41,058
$128,928
$41,058 $110,580
$75,576
91 days6 months
$100,054 $220,127
10,546
175
#220,500
Over 6
months
Total
$244,802 $610,585
0
208,861
$244,802 $819,244
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
Sopfcosfcor IS, 1050
Doar Mr* ltett«Mit
Reoeipt la aoknowladged of your two
addroaaod to W m
Platt, ©Boloaing a report of opon aarkot opera
tion* for tho period from September 4, 19350^ to
September 10# 1990* inoluaive#
Hiia report
will be brought to tho attention of tho marabera
of the Fedora 1 toasrre Board*
1 etteri.._,&£,Jlftite
Tory truly youra*
S» M* !oClolXand#
A*»iata»t Soorataty
Kr. W* 3. Hatteeon,
Aaaiatant Bopity Governor,
Federal keaenro Bank,
'Jew York, 1. T*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
E.q. vws?
F e d e ra l R e s e rv e B a n k
of
P E R S O N
Ne w Yo r k
A L
September 12, 1930
Dear Mr, Platt:
We are enclosing, for your files, a report of open
market operations for the period from September 4, 1930 to
September 10, 1930 inclusive, together with data received
from Federal reserve banks.
Assistant Deputy Governor
Honorable Edmund Platt,
Vice Governor, Federal Reserve Board,
Washington, D. C.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority E»Q*
%
F e d e ra l R e s e rv e B a n k
c£ n
<\
> //
V *
e ft*
of
N e w Yo r k
C0MF1BENTIAL
September 12, 1950
Mr. E. A. Goldenweiser,
Director, Division of Research end Statistics,
Federal Reserve Board,
Washington, D. C.
\
Dear Mr. Goldenweiser:
Enclosed is a report of open market operations
for the period from September 4, 1950 to September 10, 1930
inclusive, together with data received from Federal reserve
banks.
Assistant Deputy Governor
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»Q«
tfOR SPfClAL C IRCULATION
/LEASEV_^.D PROMPTLY, INITIAL AND RET,
TO SJ-CRETARY’
S OFFICE
Mr. Hamlin
Mr. James
Young
Mr.Pol
Mr. Miller 1/
Mr. Cunningham
*Mr. Platt
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 12 , 1950
Dear Mr, Platt:
Enclosed i3 a report of open market operations "for
the period from September 4, 1950 to September’
10, 193d inclu
sive, together with data received from Federal reserve banks.
Honorable Edmund Platt,
Vice Governor, Federal Reserve Board,
Washington, D. C.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £ » 0 .
OONFIDENTIAL
REPORT OF OPEN MARKET OPERATIONS WEEK ENDED SEPTEMBER 10, 1930
Holdings of Earn!m. Assets of Federal Reserve Banks from September 11* 1929 to Date
(000 Omitted)
TOTAL
EARNING
-1929ASSETS
Sept, 11 #1*370,273
Sept* 25 1,375,467
Oct, 00
1,648,742
Nov, 27
1*514,460
1,547,517
Dec. 31
-19 3C>1,154,379
Jan. 29
Feb. 26
1,'138,522
Mar# 26 1,001,090
Apr. 30
982,225
May
28
958,776
June 25
916,038
July 30
911,554
Aug. 27
967,034
Sept* 3 1,012,271
Sept, 10
985,120
GOVERNMENT SECURITIES
Outright
Sales
Contracts
Purchases
$31,835
$127,182
26,086
125,973
259,848
32,840
4,035
322,063
23,295
487,292
70
5,145
2,715
2,385
320
410
45
0
405
170
476,466
477,610
526,284
527,124
529,450
576,560
576,323
601,913
601,639
601,863
BANKERS ACCEPTANCES
Outright
Sales
Contracts
Purchases
5137,324
§84,905
179,449
84,485
29,111
310,774
250,044
7,271
155,235
236,974
185,677
232,521
143,772
161,846
130,066
94,735
127,965
159,137
160,087
177,423
BILLS
DISCOUNTED
| 972,927
944,399
991,038
912,349
632,421
72,795
66,785
112,710
47,718
45,494
7,578
2,797
4,137
10,308
15,697
406,941
342,781
206,829
233,452
247,046
231,505
197,101
193,275
231,260
183*195
CHANGES IN EARNING ASSET HOLDINGS (EXCLUSIVE OF SALES CONTRACTS)
(000 Omitted)
GOVERNMENT SECURITIES
Net
Balance
Change
Sept.10
$ 46,176
$ 1187,946
200+
52,252
0
57,856
0
16,983
0
12,721
21+
81,128
0
23,899
0
25*928
4+
28*736
0
29*229
0
39,009
0
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St, Louis
Minneapolis
Kansas City
Dallas
San Francisco
N. Y. holdovers
and other bills
Totals
#601,863
#224*
BANKERS a c c e p t a n c e s
Net
Bal ance
flhange
Sept,10
| 3,677+
$ 19*980
9,692+
38,068
0
0
3,649+
20,493
1,3824*
10,156
1,487+
11,076
18*159
5,711+
10,327
1,441+
323+
7,698
1,865+
12,128
1,640+
8*837
682+
18,540
1,961
14,213-
$177,423
$17,336+
BILLS DISCOUNTED
Net
Balance
Change
Sept,10
$ 3*204$ 10,893
37,453*
26,122
1,540+
*8,033
2,36113*140
1,349-*
20,299
30,703
1,4382,71413,048
190+
17,117
59+
4*141
1938,510
13,968
4387047*221
#183,195
#48,065-
COMMENT ON CHANGES WEEK ENDED SEPTEMBER 10 , 1930
Total earning assets of the System showed a decrease of $37*151 t000 for
the current statement week* The changes by classification consisted of increases
of $224| 000 and $17 , 336j 000 respectivelyt in outright purchases of government secur
ities and bankers acceptances, and $5*154,000 net in sales contracts, and a decrease
of $48*065,000 in bills discounted* The changes in investments held under sales con
tracts consisted of an increase of $5,3891000 in bankers &Q©ei>tances and a decrease
of $235,000 in government securities*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
2
Money
Market
At the opening of business on Thursday, September 4, the
reserve balances of the large New York City banks were impaired to
the extent of $6,000,000, but in the subsequent days funds have been
placed at the disposal of the New York money market through a net in
flow from other parts of the country, a retirement of currency from
circulation, and a substantial increase in Reserve Bank bill holdings*
In addition, there has been a decline in member bank reserve require
ments* These developments have been sufficient not only to permit a
reduction of New York City bank indebtedness to the low level prevail
ing during the latter part of August, but as well to convert bank re
serves frcm the position of small deficit at the opening of the period
to one of substantial surplus at the close of Wednesday, September J.0*
Notwithstanding this accumulation of surplus bank reserves*
call money has held at 2 1/2 per cent on the Exchange since the after
noon of Wednesday, September 3, and the only directions in which eas
ier money has been evident have been in the outside market, where
funds have been available at 2 per cent throughout most of the periodt
and in the market for Federal funds where the quotation has declined
to 1 - 1 1/4 per cent frcm the 2 - 2 1/4 per cent rate in effect at
the close of the previous period#
Time money bid and asked quotations continued at the level
in effect at the close of the previous week. Trading activity was
reported to have been of anall proportions, with loans for 90 days
made at 2 3/4 per cent, and loans for 4 and 6 months, which carry
beyond the year-end, made at 3 and 3 1/4 per cent respectively.
Government
Security
Market
No significant change has occurred in the market for commer
cial paper. A large potential demand exists for prime names, but
sales have been small due principally to the inability of dealers to
acquire sufficient supplies. The rate for prime material continues
to be 3 per cent, with names not so well known quoted at 3 1/4 and
3 1/2 per cent.
The market for United States Government securities, which
had been dull and inactive for the past few weeks* continued to show
no improvement for the greater part of the current statement week.
However, following the Secretary of the Treasury's announcanent of the
new issue of one year 2 3/8 per cent certificates of indebtedness and
the calling for payment on March 15, 1931, of the Series A and B 3 1/2 per cent Treasury notes, there was more interest shown in the
demand for government securities which, on the last day of the state
ment week developed into a strong market, especially for the Fourth
4 l/4s which were traded in large volume. While prices declined
fractionally in the early part of the week, there was an upturn later
in the week for all issues with the exception of the called Treasury
notes and the closing prices for the week showed snail fractional
gains in most instances.
3
2
3
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
Appro*.
Issue
Pr ice
Change Yield
1/4% Cert, of Ind. due Dec. 15, 1930
100 14/32
-1/32
1.52
»* June 15, 1931
7/8fo »'
"
100 18/32
2.11
- - 1/2$ Treasury Notes t! Mar. 15, 1932* 100 24/32 -2/32
2.00
t» Sept. 15, 1932* 100 24JZ2
2.00
-2/32
1/2#
”
"
r» Dec. 15, 1932
2.23
100 30/32 +2/32
1/2%
"
"
2f0 - 1 5/8% discount
Treasury Bills ♦» Nov. 17, 1930
*Called March 15, 1931
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0«
Closing Prices in 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
Price
101
102 2/32
103
Bankers
Acceptances
Net. ’
Change
Issue
+2/32
Treas. 4s
1944-54
- - "
4 l/4s 1947-52
+2/32
M
3 3/4s 1946-56
"
3 3/8s 1943-47
"
3 3/8s 1940-43
Price
107 29/32
112 16/32
105 26/32
101 27/32
101 13/32
Net
Change
-3/32
-3/32
-6/32
+4/32
+1/32
Dealers' offerings of bankers acceptances continued at the
following rates during the current statement week:
1 7/8 per cent for
30s, 60s and 90s; 2 per cent for 120s and 2 1/4 per cent for 180-day
bills.
Reporta
week
ending
Sept# 10
Boston reports that while there was no material change in
the local bill market conditions in its district, there was a slight
inerease in the supply of new bills during the past period.
Although
bills sold by dealers showed a good increase, most of the bills were
sold for foreign account, local banks being poor buyers.
Dealers
continued to forward most of their 90-day bills to New York, making
it necessary to import bills to fill orders for shorts maturities.
In
New York the bill market was slightly more active this week.
Dealers' purchases and sales were both moderately larger than last
week but their purchases exceeded sales slightly.
Call money was
slightly firmer during the week and the Reserve Bank purchased fairly
substantial amounts of bills from banks for System Account, but
offerings from dealers were very light.
acceptance market somewhat better.
Philadelphia reports its
More new bills were made in its
district than for some time, dealers reporting portfolios slightly
higher.
The demand continued light.
Chicago reports that its bill
market continued very dull with no excess supply and very little
demand.
Dallas reports that there was practically no change in its
bill market during the past week, as compared with the previous week.
There was no demand for bills and no offerings to the Reserve Bank.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
OPERATIONS FOR ACCOUNT OF UNITED STATES TREASURY
Transactions consummated under Treasury authorization during the current
statement week were as follows:
Sale of $1,000,000 Fourth 4 1/4$ Liberty Loan bonds, account
Government Life Insurance Fund
200,000 - 3 1/2$ Treasury notes due December 15, 1932,
account Alien Property Custodian
25,000____ - Fourth 4 1/4$ Liberty Loan bonds, account
__________
German Special Deposit Account
$1,225,000 - Total Sales
SYSTEM SPECIAL
ACCOUNT - G O V E R N M T SECURITIES
Transactions during the current statement week consisted of an exchange
of
$6,000,000 Fourth 4 1/4$ Liberty Loan bonds
for a like par amount of shorter term government issues.
This exchange did not
affect the total holdings in the System Account which remained at the close of
business Yifednesday, September 10, at §408,500,000.
The participation by Federal
reserve banks and the classification of issues in the Account at the close of the
statement week were as follows:
PARTICIPATION BY FEDERAL RESERVE BANKS
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St* Louis
Minneapolis
Kansas City
Balias
£&n Francisco
Totals
$ 45,472,500
73,851,000
37,245,000
47,690,000
15,830,500
10,146,500
61,201,000
15,274,000
18,248,500
28,735,000
19,241,000
29,567,000
$402,500,000
RECAPITULATION OF HOLDINGS BY MATURITIES
Sept.
Nov.
Sept.
Dec.
June
Mar.
Sept.
Dec.
Oct.
15,
17,
15,
15,
15,
15,
15,
15,
15,
1930
1930
1930
1930
1931
1932
1932
1932
1938
-
Treas. Bills $
6,985,000
17.214.000
5 1/8$ C/I
27.215.000
5 1/4$ "
69,525 ,-000
2 7/8$ "
68.131.000
5 1/2$ T/N
55,114,100
5 1/2$ "
109,506,000
5 1/8$ M
55,411,900
4th 4 1/4$i/L 15.598.000
tt
tt
$402,300,000
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority £«0«
5
ITEMIZED STATEMENT OF TRANSACTIONS IN GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES
AFFECTING THE INVESTMENT ACCOUNT OF ALL FEDERAL RESERVE BANKS
_______________________FROM SEPTEMBER 4 TO SEPTEMBER 10, 1950, INCL._______________
GOVERNMENT SECURITIES - SYSTEM INVESTMENT ACCOUNT
Sales
Purchases
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
#
|
6 7 8 ,0 0 0
Tot als
6 7 8 ,0 0 0
1 ,1 0 1 ,5 0 0
1 ,1 0 1 ,5 0 0
5 5 5 ,5 0 0
5 5 5 ,5 0 0
7 1 1 ,0 0 0
7 1 1 ,0 0 0
2 3 6 ,5 0 0
2 3 6 ,5 0 0
1 5 1 ,0 0 0
1 5 1 ,0 0 0
9 1 2 ,5 0 0
9 1 2 ,5 0 0
2 2 8 ,0 0 0
2 2 8 ,0 0 0
2 7 2 ,5 0 0
2 7 2 ,5 0 0
4 2 8 ,5 0 0
4 2 8 ,5 0 0
2 8 7 ,0 0 0
2 8 7 ,0 0 0
4 3 8 ,0 0 0
4 3 8 ,0 0 0
$ 6 ,0 0 0 ,0 0 0
$ 6 ,0 0 0 ,0 0 0
OTHER TRANSACTIONS IN GOVERNMENT SECURITIES
Issue
Purchases
Boston
New York
Atlanta
Minneapolis
Totals
•
0
7 0 0 ,0 0 0
Issue
Sales
Misc. Gov*t Sec,
$
1 . 000
500, 000
1 4 5 ,0 0 0
r»
tt
«
1 2 4 , 350
3 5 7 ,8 5 0
n
tf
11
3 5 4 , 100
$ 1 ,2 0 2 ,8 5 0
Misc. Gov* t 36o«
tt
Boston
New York
0
1 6 ,3 0 3
2 8 ,3 7 6
By Allot Matur
Purchased ment frcm ities &
Sales
Own Mkt.
New York
$ 1 ,2 0 6
0 4 ,3 0 3
$
5 8 0 R.
1 3 ,6 2 7
tt
tt
.3 9 7 9 ,4 5 0
BANKERS ACCEPTANCES
( 0 0 0 Omitted)
Holdings
Sept, 3
tt
tt
it
0
3 ,9 3 5
Holdings
Sept* 1 0
$ 1 9 ,9 8 0
3 8 ,0 6 8
Other Holdings
Close Sept., 1 0 / 3 0
Sales
Other
Contracts Bills
0
2 ,1 0 2
o
1 2 ,5 5 4
79
352
4 0 , 4 8 4 A.
JPhila.
0
104
0
0
0
0
0
Cleve.
0
6 ,0 0 9
1 6 ,8 4 4
0
1
07
2 ,3 6 0
2 0 ,4 9 3
Richmond
8 ,7 7 4
1 ,9 8 8
45
0
3 ,3 7 0
1 0 ,1 5 6
0
9 ,5 8 9
6
0
6
3 ,4 6 8
1
1
,
0
7
6
Atlanta
5 5 0 R,
2 ,5 5 1
0
Qhicago
1 2 ,4 4 8
1
,
0
4
1
100
1 8 ,1 5 9
3 ,2 1 7
144
8 ,8 2 8
39
2 ,9 5 9
8 ,8 8 6
St. Louis
0
1 ,5 1 8
0
1 0 ,3 2 7
Minn*
7 ,3 7 5
0
7 ,6 9 8
25
1 ,9 2 7
1 ,6 0 4
0
Kan. City
1 ,6 3 5
0
1 0 ,2 6 3
0
1 2 ,1 2 8
3 ,5 0 0
32
Dallas
7 ,1 9 7
0
0
32
2 ,3 9 6
8 ,8 3 7
756
San Fran.
0
1 7 ,8 5 8
100
1 8 ,5 4 0
74
3 ,7 2 4
3 ,1 4 2
Totals
$ 1 4 3 ,9 1 3
§ 1 ,6 3 9
0 1 5 ,6 9 7
0 5 5 ,4 4 1
% > 40, 4 8 4
0 2 3 ,8 9 2
0 1 7 5 ,4 6 2
Bills held overnight by New York for distribution to other Fed. Res* banks
522.
T o t a l ---- ------01,961
NOTE:
R. indicates Retained and A. indicates Allotted in the abcve statement.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority £»0*
MATURITIES AND RATES ON BILLS PURCHASED WEEK ENDING SEPTEMBER XO, 1950
(000 Omitted)
1-30 days
1 7/8$
Boston
New York
Atlanta
Chicago
San Francisco
#
215
15,566
220
0
0
Totals
,001
31-60 days
1 7/8$
#
265
27,578**
191
0
100
|28,134
61-90 days
1 7/8$
Over 90 days
Total
#
100
0
0
0
0
0
#11,306
0
#55,441
#
100*
10,967**
139*
0
580
54,111
550
100
100
*Purchased at 1 7/8 - 2$
**Purchased at 1 7/8 - 2
RECAPITULATION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES
AND BANKERS ACCEPTANCES DURING WEEK ENDING SEPTEMBER 10, 1930
(000 Omitted)
(Excluding Sales Contracts)
Government
Securities
Purchased
Sold
Matured
Bankers
Acceptances
# 7,203
6,979
0
#55,441
0
17,658
#37,783+
14,213-(Net Change
I-day holdover
'
& other bills)
#23,570+
_______
Totals
#
Total
224+
#62,644
6,979
17,658
$38,007+
14,213-(Net Change
_______ 1-day holdover
& other bills)
#23,794+
HOLDINGS OF GOVERNMENT SECURITIES AND BANKERS ACCEPTANCES SEPTEMBER 10, 1930
(000 Omitted)
(Including Sales Contracts)
Within
15-dayg
Gov't Securities
Bills Purchased
Totals
16-30
days
31-60
days
61-90
days
91 days6 months
Over 6
months
Total
#34,938 # 0
54,173 74,508
# 0
#17,214 #86,321 #463,560 #602,033
51,666 12,750 _____ 23
0
193,120
#89,111
#51,666
#74,508
#29,964 #86,344 #463,560
#795,153
@FedFRASER