View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

Federal Reserve Bank
OF DALLAS

Dallas, Texas, August 12,1942

TREASURY BILLS

To All Banking Institutions, and Others Concerned,
in the Eleventh Federal Reserve District:

On April 30, 1942, the Federal Open Market Committee directed the
twelve Federal Reserve banks to purchase for the System Open Market
Account all Treasury bills that may be offered to such banks, on a discount
basis at the rate of % percent per annum.
On August 3, 1942, the Federal Open Market Committee supplemented
its action of April 30, 1942, by authorizing the Federal Reserve banks to
give the seller of any Treasury bills so offered, an option, if desired, to
repurchase the bills at the rate of % percent per annum at any time before
maturity.
Accordingly, the Federal Reserve Bank of Dallas will, until further
notice, purchase for the System Open Market Account all Treasury bills
that may be offered to it, and will, upon request, give the seller the option
to repurchase the bills at the same rate before maturity. In cases where the
seller of bills desires the option to repurchase them, the Federal Reserve
Bank should be so advised, in writing, at the time the bills are offered for
purchase by the System Open Market Account.
In view of this arrangement, banks and other investors with excess
funds may wish to utilize them more fully by increasing their purchases
and holdings of Treasury bills. Since such bills may be readily converted
into cash whenever the funds are needed, they are practically the equivalent
of excess reserves.
Banking institutions and other investors desiring to sell Treasury bills
outright, or under an optional repurchase agreement, may offer them either
to this bank or to one of its branches at El Paso, Houston, and San Antonio.

Yours very truly,
R. R. GILBERT
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102