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REC'D IN RECORDS SECTION
(Corrected Copy)
MAR-11962
To
Federal Open Market Committee
From
Robert G. Rouse and
John R. Farrell
February 28
Subject:
1962
Suggested Revision in
Procedure for Allocation
of Participations in the
System Open Market Account
When the present allocation formula* based on total assets was adopted
on September 1, 1953 one of the principal objectives was to avoid the frequent
adjustments due to low reserve ratios which had proved troublesome under the
earlier formula based on estimated expense and dividend requirements.
The total
asset formula served this purpose satisfactorily for a number of years as the
reserve ratios were generally above 40 per cent when the new formula was adopted
and have declined only gradually as the System Account grew.
No adjustments were
called for until the annual reallocations of April 1, 1960, and April 1, 1961.
In each year two Banks were unable to accept their full participations.
Sub-
sequently interim adjustments were necessary, on November 22, 1961 at Minneapolis,
and on December 29, 1961 at Boston.
With the current low reserve ratio
of about
35.6 for the System as a whole, and with the possibility of a worsening in the
situation during the year to come, a reappraisal of the formula at this time is
appropriate.
Among the shortcomings of the present formula under prevailing conditions, are the unrealistic percentages referred to in the procedures relating
to adjustments in participations because of a low reserve ratio.
For example
in paragraph 3 it is stated that no allocation shall be made which would reduce
the reserve ratio of a Bank as of the next to the last business day of March
below
35 per cent.
Between December 19 and January 6, inclusive, the reserve
ratio of the 12 Banks combined ranged between 33.9 and 34.9, and if on the
reallocation date the combined ratio again should be below 35 per cent, the procedure described in paragraph 3 could not be carried out.
Furthermore, the
effect of the interim adjustments described in paragraph 5 could be, and in
*
See attached copy of "Procedures with Respect to Allocations of the System
Open Market Account".
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2
effect has been, to raise the reserve ratio of the affected Bank above the
average ratio of all the Banks.
Relief could be provided by reducing the per-
centages mentioned in paragraph 3 and 5 from 35 and 30 to, let us say, 32 and
28, respectively, but a lack of flexibility in the existing procedures would
remain.
Adjustments to restore reserve ratios currently are made on the basis
of a reserve position as of a single day, so that adjustments, which may turn
out to be more or less permanent can result from a low ratio brought about by
a distinctly temporary situation.
This is well illustrated by the facts of the
adjustment on December 29 caused by a low reserve ratio at the Federal Reserve
Bank of Boston.
The reserve ratio at that Bank had dropped to 27.4 on
December 28, the next to the last business day of the month.
Accordingly
Boston's participation in the System Account was reduced by an amount sufficient
to raise its reserve ratio to 35.0 per cent, despite the fact that the ratio for
the 12 Banks combined was only 33.9.
By the following day the situation had been
corrected and Boston's ratio climbed to 39.8.
Boston's ratio has remained the
highest in the System ever since, but in accordance with paragraph
5 of the pro-
cedures it was not possible to restore its full participation without reducing
its ratio below 35 per cent until February 20.
Also, in the December 29 adjust-
ment the securities taken from Boston were distributed to four other Federal
Reserve Banks, a complication which appears unnecessary when the amounts involved
are small.
If the need for an adjustment because of a low ratio at another Reserve
Bank had occurred while the Boston bank did not hold its normal participation,
there would have been conflict in the rules as to whether the securities should
have been transferred to Boston which has the highest ratio, or whether this
would have constituted a reversal, or partial reversal, of the previous adjustment at Boston which is forbidden unless it can be done without reducing its
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3
ratio below 35 per cent.
(See paragraph 5 of "Procedures with Respect to
Allocations of the System Open Market Account" attached.)
Similar aberrations
could take place if a bank were unable to take its full participation in an
annual reallocation.
Under the present procedure no reversal of the adjust-
ment would be permissible until the next general reallocation, even though
unusual circumstances caused the ratio of that bank to be low only on the day
of the annual reallocation.
Suggested below is a plan designed to minimize the likelihood of
adjustments, but which, if adjustments should be necessary, would simplify the
calculations and reduce the inequities caused by the inflexibility of existing
procedures.
This plan adopts the principle of adjusting participations at stated
intervals to equalize more nearly the reserve ratios of the various Banks.
Such adjustments would be calculated on averages of gold reserves and note and
deposit liabilities over a recent period, rather than as of a specific day.
Quarterly reallocations
on this basis are suggested, but they could be more or
less frequent as experience dictates.
The averages could cover the first 85 days
of the preceding quarter (in order to allow time comfortably to make the calculations).
The periodic reallocations would tend to conform the Banks' par-
ticipations to the basic trends in gold reserves and note and deposit liabilities.
Because of temporary conditions which may reduce a Bank's ratio below
30 per cent*, occasional adjustments may still be necessary.
Such adjustments
would be designed to raise the Bank's reserve ratio to the average ratio of the
12 Banks combined.
order to keep to a minimum the number of Banks involved in
In
adjustment,
*
it
is
proposed that
the
the Banks to which the securities are to be
Further deterioration in the combined reserve ratio of the twelve Banks in
time may force a lowering of this guidepost.
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4
reallocated will be selected in the order of their ability to absorb the largest
additional amount of securities without reducing their reserve ratios below the
ratio
of the 12 Banks combined.
Thus if
the amount to be reallocated is
larger
than any one Bank can absorb without reducing its reserve ratio below the System
average, the excess beyond that point would be allocated to the Bank which is in
a position to take the next largest amount.
Because the interim adjustments pre-
sumably would arise from temporary conditions, the plan proposes full reversal
on the first succeeding Thursday when it can be accomplished without reducing
the Bank's reserve ratio below 30 per cent.
The foregoing plan should provide an equitable method of participating
the System's holdings.
Distribution of the securities would be based on each
Bank's ability to carry its share.
Quarterly, rather than annual, reallocations
are recommended in order to adjust to changing trends.
By the use of averages
and early reversal of adjustments, an effort has been made to avoid the more or
less permanent adjustments which have developed under the present plan due to
temporary situations prevailing on the specific dates.
Keeping to a minimum the
number of Banks asked to absorb the securities taken from the Bank with a low
ratio would reduce the number of changes in the accounting records that have to
be made when adjustments occur, and would mean less delay in advising the other
Banks as to their participations in the System Account on the
day the
adjust-
ment takes place.
A suggested statement of procedures for approval of the Federal Open
Market Committee is attached.
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5
Also attached are tables giving the pro forma reallocations of securities
in the System Open Market Account assuming the proposed new formula had been in
effect since April 1, 1961.
Robert G. Rouse
John R. Farrell
Attachments:
Procedures with respect to allocations of the System Open Market Account
adopted September 1, 1953.
Proposed procedures with respect to allocations.
Tables X-1, X-2, X-3 and X-4.
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Procedures with Respect to
Allocations of the System
Open Market Account
(Adopted September 1, 1953)
The following procedures contained in a memorandum from Messrs.
R. G. Rouse and R. F. Leonard, dated July 14, 1953, were approved by the
Executive Committee of the Federal Open Market Committee at its meeting August 4,
1953, and reaffirmed at its meeting on August 25, 1953 and at subsequent annual
meetings.
Amendments to the procedures were approved at its meetings of
March 1, 1960 and March 7, 1961.
"1.
Securities in the System Open Market Account shall be
reallocated on September 1, 1953, on the basis of the
ratio of each Bank's total assets to the total assets for
all Reserve Banks combined. Such ratios shall be on the
basis of daily averages for the 12-month period ending
July 31, 1953.
2.
Securities in the Account shall be reallocated April 1 of
each year on the basis of daily averages of total assets
for the 12 months ending with the last day of February.
3.
No allocation shall be made which would reduce the
reserve
ratio of a Bank as of the next to the last business day of
March below 35 per cent. If, because of the provisions of
this paragraph, a Bank is unable to take its pro rata
share based on total assets, the amount which it is unable
to take without reducing its reserve ratio below 35 per
cent shall be allocated to the Bank or Banks having the
highest reserve ratios in such a manner that the ratio of
the Bank or Banks to which securities are reallocated will
not be reduced below the ratio of any other Bank.
Regardless of possible subsequent improvement in reserve
ratios, no reversal of these adjustments shall take place
pending the next general reallocation.
4.
The Account shall be apportioned during the ensuing twelve
months on the basis of the total assets ratios computed
for the latest general reallocation after allowing for any
adjustments as provided for in Paragraph 3, unless there
shall be further adjustments described in Paragraphs 5 or 6.
5.
If a Bank's reserve ratio falls below 30 per cent on the
next to the last business day (as observed by the Agent
Bank) of a statement week or month, sufficient of its
holdings as of the close of business that day to raise its
reserve ratio to 35 per cent shall be reallocated by an
adjustment the following day, unless such day is a general
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2
reallocation date. Such securities shall be allocated to
the Bank or Banks having the highest reserve ratios.
(NOTE:
This procedure does not contemplate partial
reversal of these adjustments.
However, full reversal of these
adjustments will be made when a Bank's reserve position
improves to the extent that the full amount of its participation allocated to other Banks under the provisions
of this paragraph can be restored without reducing the
Bank's reserve ratio below 35 per cent.)
6.
If a Bank's reserve ratio
should fall
below 30 per cent
on any other day, of if a Bank anticipates that its
reserve ratio will fall below that figure, it may arrange
with the Manager of the Open Market Account to make an
adjustment similar to those provided for in paragraph
No. 5 so as to increase the Bank's reserve ratio to 35 per
cent.
7.
Profits and losses on the sale of securities from the
Account shall be allocated on the basis of each Bank's
current holdings at the opening of business on the date
of delivery of the securities sold."
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Proposed Procedures with Respect to
Allocations of the System Open Market Account
1.
Securities in the System Open Market Account shall be reallocated on
the first business day of February, May, August and November of each year by
means of adjustments proportionate to the adjustments that would have been
required to equalize the average ratios of the 12 Reserve Banks over the first
85
days
2.
of the preceding three calendar months.
If a Bank's reserve ratio should be reduced below 30 per cent as a
result of the reallocation, or should fall below 30 per cent on the next to the
last business day (as observed by the Agent Bank) of a
statement week or month,
its holdings as of the close of business that day shall be adjusted the following
day by an amount sufficient to raise its reserve ratio to the average reserve
ratio of the 12 Banks combined on the preceding day.
Such securities shall be
allocated to the Bank in a position to absorb the largest additional amount
without reducing its reserve ratio below the ratio of the 12 Banks combined.
If that Bank is unable to take the entire amount, the excess shall be allocated
to the Bank which can absorb the next largest amount without reducing its reserve
ratio below the average for the System.
Any such adjustment will be reversed on the first succeeding Thursday
(before the next quarterly reallocation) when
reducing the Bank's
is a
it can be accomplished without
reserve ratio below 30 per cent, except that if the Thursday
holiday or the last business day of a month the reversal will be made the
following business day.
A reversal will restore
individual Bank holdings to
their established participation percentages before the adjustment occurred,
except to the
the interim.
extent that a Bank may have been
involved in another adjustment in
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2
3.
If a Bank's reserve ratio should fall below 30 per cent on any other
day, or if a Bank anticipates that its reserve ratio will fall below that figure,
it may arrange with the Manager of the System Open Market Account for an adjustment similar to those provided for in paragraph No. 2 so as to increase the
Bank's reserve ratio to the average of the 12 Banks combined.
4.
The Account shall be apportioned during the succeeding quarter on the
basis of the ratios determined in Paragraph 1, after allowing for any adjustments as provided for in Paragraphs 2 and 3.
5.
Profits and losses on the sale of securities from the Account shall
be allocated on the day of delivery of the securities sold on the basis of each
Bank's current holdings at the opening of business on that day.
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PRO FORMA REALLOCATION OF U. S. GOVERNMENTSECURITIES IN SYSTEM OPEN MARKETACCOUNT,
AS OF APRIL 1, 1961 (opening of business), ASSUMING PROPOSED NEW FORMULA
Table
x-1
r
r
Boston
System
-
base figures for period
January 1 - March 26, 1961:
Deposit and F- R. note
1.
liabilities
a.
Aggregates
b. Averages
Gold certificate reserves 2.
a.
Aggregates
b.
Averages
3.
Average reserve ratio
(per cent)
.B
Difference (B.t A.2.b-)
D.
SOMA security holdings, opening
of business, April 1, 1961:
1. Actual allocation
2. Reallocation (D.i. ± C., with
sign reversed)
E-
F.
f
Per actual reallocation April 1,
1960,
Richmond
Atlanta
V
I
Chicago
St. Louis
41
+
r
Dallas
Minneapolis Kansas City
-V{H+
San Francisco
H
973,182
11,419
222,557
2,618
322,636
3,796
245,697
2,889
214,184
2,520
660,387
7,769
157,598
1,854
88,103
1,037
170,898
2, 01
155,852
1,458,388
17,158
68,672
808
366, 139
4,310
85, 640
1,007
120,482
1, 418
91, 316
1,071
76,769
905
250, 556
2,948
58,643
690
32, C10
378
66,969
788
59,971'
705
180, 888
37.7232
(34.7377)
(37.6452)
(38.4615)
(37.3551)
(37.1755)
(35.9127)
(37.9457)
(36.4513)
(39.1845)
(38.1406)
(39.5250)
391
759
13
29
877
17,15
Reserve ratios, opening of business,
April 1, 1961:
1. Actual
2.
Adjusted for reallocation
(30.0 per cent, or higher)
Cleveland
Philadelphia
I
r
,
197,697
2,326
+
SOMAsecurity holdings ratio
(per cent of participation),
cpening of business, April 1, 1961:
1.
Actual holdings ratio
(E.2., previous 3 months, unless
interim adjustment) Jf
2. New holdings ratio, computed on
basis of D.2. above
E.2.)
3Difference (E-1.
New York
I
r
3,866,138
45,484
Average gold certificate reserves
adjusted to conform with System
average reserve ratio
(System A.3. x A.1.b.)
C.
(Dollar amounts in millions)
r
*
176 +
69
+
4, 319
987
9
20
+
1,432
1,090
14
16
951
+
(37.2168)
699
2,931
46
17
+
9
+
457,347
1,834
-
5,381
2,
127
692
2,030
13
97
26,688
1,434
6,657
1, 528
2, 293
1,689
1,463
4,568
1,079
619
1,145
1,076
3,137
26,688
1,365
6,648
1,548
2,279
1,673
1,417
4,585
1,070
606
1,174
1,089
3,234
100.0
5.3740
24-9432
5.7256
8-5917
6.3295
5.4831
17.1158
4.0417
2.3205
4-2921
4.0300
11.7528
5.ll47
24.9101
.0331
5.8003
-0747
8.5394
.0523
6.2687
.0608
5-3095
.1736
17.1800
+
.0642
4.0093
.0324
2.2707
.0498
4.3990
.1069
4.0805
.0505
100.0
.6613 -
.2593
+
+
+
+
121.78
.3650
37.9
34.1
37.4
39.1
333.3
38.0
36.7
38.6
36.8
33.8
37-4
37.4
41.0
37.9
37.1
37.5
38.3
333.7
38-5
38.5
38.4
37-3
35.0
35.9
36.7
39.2
on basis in effect
since September 1,
1953.
BOARD OF GOWENORS
OF THE FEIERAL RESERE SYSTM
D1VISIC OF BANK OPERATIONS
February 16, 1962
-
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PRO FORMAREALLOCATION OF U. Si.GOVERNMENT
SECURITIES IN SYSTEM OPEN MARKETACCOUNT,
AS OF JULY 1, 1961 (opening of business), ASSUMINGPROPOSED NEW FORMULA
Table
X-2
(ICllar amounts in millions)
B.
Forrula base figures for period
April 1 - June 24, 1961:
1.
Deposit and F- R. note
liabilities
a.
Aggregates
b.
Averages
2. Gold certificate reserves -Aggregatea 1
a.
b.
Averages 1
3. Average reserve ratio
(per cent)
C.
Difference
D.
SojA security holdings, opening of
business, July 1, 1961:
1. Actual allocation 2/
2. Reallocation (D.1. t C.,
with sign reversed)
E.
F.
lf
2
(B.
SOMA security holdings ratio
(per cent of participation), opening
of business, July 1, 1961:
1. Actual holdings ratio
(E.2., previous 3 months,
unless interim adjustment)
2. New h-ldings ratio, computed
on basis of D.2. above
3. Difference (E.1. t E.2.)
Reserve ratios, opening of business,
July 1, 1961;
1.
Actual 1/
2.
Adjusted for reallocation
(30.0 per cent, or higher)
St. Louis
Chicago
Minneapolis Kansas City
Dallas
San Francis(
169,248
1,991
153,822
1,810
462,250
5,438
33,295
392
63,580
748
58,120
684
180,648
2,125
(38.2066)
(37.5691)
(37.7901)
(39.0769)
New York
3,823,049
44,977
195,876
2,304
955,388
11,240
220,82.
2,59EJ
318,571
3,748
243,226
2,861
211,381
2,487
651,066
7,660
154,199
1,814
87,201
1,026
1,454,220
17,108
76,929
905
359,871
4,234
85,185.
1,002
121,078
1,424
91,987
1,082
80,331
945
244,986
2,882
58,210
685
38.0372
(39.2795)
(37.6690)
(38.5681.)
(37.9936)
(37.8189)
(37.9976)
(37.6240)
(37.7619)
17,108
876
Average gold certificate reserves
adjusted to conform with System
average reserve ratio
(System A-3- x A.1.b. )
t A.2.b.)
Atlanta
Boston
System
A.
t
±
101 -
29
Philarelphia
988
4,275
+
41
-
14
Richmond
Cleveland
1,426
+
2
946
1,088
+
6
+
1
2,914
+
32
690
+
5
757
390
-
2
+
9
2, 069
689
+
5
-
56
27,253
1,394
6,789
1,581
2,327
1,708
1,447
4,682
1,093
619
1,199
1,112
3,302
27,253
1,423
6,748
1,595
2,325
1,702
1,446
4,650
1,088
621
1,190
1,107
3,358
100.0
5.1147
24.9101
5.8003
8.5394
6.2687
5.3095
17.1800
4.0093
2.2707
4.3990
4.0805
12.1178
100.0
.3708 +
5.2214
.1067
24.7606
.1495
5.8526
.0523
8.5312
.0082
6.2452
-0235 -
5.3058
-0037
17.0623
-1177
3.9922
-0171
2.2787
.0080
4.3665
.0325
4.0619
.0186
+
-
-
-
+
-
-
+
12.3216
.2038
37.9
38.5
38.2
38.3
37.5
37.2
36.1
38.3
38.5
34.1
37.5
37.4
38.9
37.9
37.2
38.6
37.7
37.5
37.4
36.1
38.7
38.7
33.9
37-9
37.6
37-9
Adjusted for change indicated by Item C. in Table X-1, and for reversal of effect of regular annual reallocation, April 3 as of April 1, 1961.
E.1. multiplied by System D.
BOARD OF GOVERNORS
OF TEE FEDERAL RESERVE SYSlEM
DIVISION OF BANK OPERATIONS
February 16, 1962
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PRO FORMA REALLOCATION OF U. S. GOVERNMENT SECURITIES IN SYSTEM OPEN MARKETACCOUNT,
AS OF OCTOBER 1, 1961 (opening of business), ASSUMING PROPOSED NEWFORMULA
Table
X-3
(Dollar amounts in millions)
System
A.
Formula. base figures for periox
July 1 - September 23, 1961:
1. Deposit and F. R. note
liabilities a. Aggregates
b.
Averages
2.
Gold certificate reserves Aggregates 1
a.
b.
Averages 1
3. Average reserve ratio
(per cent)
B.
Ave-age gold certificate reserves
adjusted to conform with System
average reserve ratio
(systen A.3- x A.l.-)
C.
Dfrence (B. -A-2.b.)
D.
SC!-A security holdings, opening of
business, Cctbcer 1, 1961:
1.
Actual allocation 2
2. Reallocation (D.1. ± C.,
with sign reversed)
E.
F
SO-A security holdings ratio
(per cent of participation), opening
of business,Cetecer 1, 1961:
1.
Actual holdings ratio
(3.2., previous 3 months,
unless interim adjustment)
2- New holdings ratio, computed
spuove
n basts of 0.23. Difference (3.1. ± E.2.)
Reserve ratios, opening of business,
C,ober 1, 1961:
1. Actual j
2.
Adusted for reallocation
(3C.0 per cent, or high-r)
Boston
New York
3,887,403
45,734
201,514
2,371
965,517
11,359
1,466,196
17,249
75,699
891
362,531
4,265
t
±
37.7159
(37.5791)
17,249
894
7
1I+
3
Philadelphia
19
222,516
2,618
324,484
3,817
250,564
2,948
213,501
2,512
661,199
7,779
155,656
1,831
87,748
1,032
173,122
2,037
155,890
1,634
475,692
82,032
965
124,048
1,459
96,743
1,138
80,592
948
248,935
2,929
58,524
689
31,1407
369
66,274
780
59,088
695
180,323
2,121
(38.2237)
(38.6024)
(37.6527)
(37.6297)
(35.7558)
987
4,284
+
Richmond
(36.8602)
(37.5473)
+
j Atlanta
Cleveland
22
19
(37.7389)
947
1,112
1,440
-
-
26
Chicago
-
1
St. Louis
5
+
2
+
20
Dallas
12
5,596
(37.9021)
692
768
-
San Francisco
(37.8953)
(38.2916)
389
691
2,934
+
Minneapolis Kansas City
-
3
2,111
-
10
27,788
1,451
6,881
1,626
2,371
1,736
1,474
4,741
1,109
633
1,213
1,129
3,424
27,788
1,448
6,862
1,604
2,390
1,762
1,475
4,736
1,107
613
1,225
1,132
3,434
100.0
5.2214
24.7606
5.8526
8.5312
6.2452
5-3058
17.0623
3.9922
2.2787
4-3665
4.0619
12-3216
100.0
-2575 -
5.2109
-0105
5.7723
.0803 +
8.6008
.0696
-
24.6941
.0665
-
+
6.3409
.0957
5.3080
+
.0022
-
17.0433
.0190
-
3-9837
-0085
-
2-2060
.0727
4.4084
+
.0419
+
4.0737
.0118
+
12-3579
.0363
37.1
37.9
35.9
35.7
37.5
39.3
36.4
37.7
37.5
34.6
37.8
37.4
37.5
37.1
38.0
36-1
36.5
37.0
38.5
36.4
37-7
37.6
36.5
37.2
37.3
37.3
for net of changes indicated by Item C. in Tables X-1 and X-2,
1A M austed,
B- .multiplied by Sysrem D.
E
and reversal of effect of regular annual reallocation, April 3 as of Apr:l 1, 1961.
BOARD OF GOVERNORS
OF THE FEDERALRESERVE SYSTEM
DIVISION OF BANK OPERATIONS
February 16, 1962
Authorized for public release by the FOMC Secretariat on 3/17/2020
PRO FORMAREALLOCATION OF U. S. GOVERNMENT
SECURITIES IN SYSTEM OPEN MARKETACCOUNT,
AS OF JANUARY1, 1962 (opening of business), ASSUMING PROPOSED NEW FORMULA
Table
x-4
Dollar amounts in m-n11 ons
System
A.
Average gold certificate reserves
adjusted to conform with System
average reserve ratio
(System A-3- x A.1.b.)
C.
Difference (B.~ A.2.b.)
D.
SCMA security holdings, opening of
business, January 1, 1962:
1. Actual allocation
2. Reallocation (D.1.- C.,
with sign reversed)
E.
SaMA security holdings ratio
(per cent of participation), opening
of business, January 1, 1962:
1- Actual holdings ratio
(E-2., previous 3 months,
unless interim adjustment)
New holdings ratio, computed
2.
on basis of D-2.above
3.
Difference (E.1.t E.2.)
Feserve ratios, openinG of business,
January 1, 1962:
1. Actual 3/
adjusted for reallocation
2.
(30.0 per cent, or higher)
New York
I
Formula base figures for period
October 1 - December 24, 1961:
1.
Deposit and F. R. note
liabilities
a.
Aggregates
b.
Averages
2. Gold certificate reserves a.
Aggregates 1
b.
Averages 1
3.
Average reserve ratio
(per cent)
B.
Boston
PhiladelphiaJ
Cleveland
Richmond I Atlanta
Chicago
St. Louis
San Francisco
Minneapolis ensas City
I-F 1
3,974,179
46,755
205,662
2,420
975, 533
11,477
226,341
2,663
331, 541
3,900
264,645
3,113
219,278
2,580
62, 548
7,912
16" 377
1,910
88,786
1,045
175,600
2,066
1,436,076
16,895
74,038
871
347,763
80,874
951
120,268
1,415
100,144
1,178
50,398
946
'36,931
2,787
60,422
711
31,278
368
61,773
36.1352
(35.9917)
(35.7116)
(36.2821)
(37.8413)
(36(667)
(35.2250)
16,895
875
962
1, 409
1,125
932
2,859
173
4
11
6
53
-4
72
28,722
1,497
7,093
1,658
2,470
1,821
525
4,895
1 144
634
1,266
1,170
3,549
2,476
1,874
1,539
4,823
1,
65
624
1,246
1,182
3,616
5.3080
17.0433
3.9837
2.2060
4.4084
4.0737
12.3579
5.3583
.0503
16.792C
-2513 +
4.0561
.0724
2.1725
.c335
4.1153
.0416
12.5897
.2318
*
+
4,091
(35.6452)
4,147
+
56
+
-
28,722
1,493
7,037
1,647
100.0
5.2109
24.6941
5.7723
8 .6008
6.34c9
100.0
.5996
5-1981
.0128
24-5004
.1937
5.7343
.0380
6 .6206
::198
6.5246
.1837
34.8
34.0
32.2
35.6
34.5
34.8
34.1
32.7
36.0
3 -4
-
6
38.1
t
36.7
36.5
(35.2153)
690
-
21
378
+
10
+
-
491, 382
5,781
727
58,973
694
183,214
2,156
(35.1888)
(36.7589
(37.2946)
747
682
2,089
20
4.3381-0703
-
+
12,
67
34.8
36.3
33.8
36.1
33.6
36.7
35-7
35-3
34.7
37.1
33.0
35.6
dttusted for net of changes indicated by Item C.,Tables X-1, X-2, and x-3; reversal of effect of regular annual reallocation, Apri
and reversal of effect of Minneapolis "Paragraph 5" adjustment on November 22, 1961 ($56 rillion).
2/
E.'2 multiplied by System D.
Z/ Ajusted (see footnote 1) with added reversal of effect of Boston "Paragraph 5" adjustment on December 29, 1961 (w178 million).
iadjustnent, not reflected in this table, would have been necessary to raise Boston's estimated reserve ratio of 28.7 per cent
to the System average as of December 28, 1961. However, the Minneapolis adjustment as of Norember 21, 1961
not have
peen necessary under the propo'ed formula.
vould
(37.2251)
160,4861
1,888
1
3 as of April 1,
1961;
BOARDOF GOVERNORS
OF THEFEDERAL RESERVE SYSTEM
DIVISION OF BANK OPERATIONS
February 16, 1962
@FedFRASER