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T R E AS U RY DEPARTMENT FISCAL SERVICE WASHINGTON 25 February 1, 1951 TO THE SECRETARY: The following quotation is from the Dow Jones ticker just received: ’ ’ Federal Reserve - Govt. Bonds ” Washn - A P - The Federal Reserve Board has pledged its support to President Truman to maintain the stability of Government se curities as long as the emergency lasts ” \#iite House Press Secretary Joseph Short announced this today saying there ha^e been reports of differences of opinion between the Treasury and the Federal Reserve Board ’ ’ This is to quiet those rumors - Short said ’ •Members of the Federal Reserve Board conferred with Mr. Truman yesterday - Secretary of the Treasury Snyder did not attend the meeting, ’ ’ Add - Reserve - Govt. Bonds- "Wash - AP - A Treasury spokesman said The White House ‘ announcement means the market for Govern ment securities will be stabilized at present levels and that these levels will be maintained during the present emergency.” The reaction from the above-mentioned statement was generally good. Restricted bonds, generally, recovered and are now up about l/32. June 2|-s are now quoted at par 22, same as the Vic's of Decei^ber 1967-72. As of 2:15 PM, the market tone was firm. There was no in surance selling. Some short maturities of bank eligible:: bonds were being offered for sale, but nothing very large. Earlier there was some demand for cash bills, which has since dried up. It is reported that there is some doubt in the market as to what is meant by the word ’ ’ stabilization”and the level at which stabilization would be accomplished. It seems to me t^at .this + • . latter should be taken care of through last paragrapfl^ucfS^y* above. ^
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