The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
^ipupp Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority E.G. 'w ... - i± £ J L M SffFES OF SHE MEETING OF THE OFEN MARKET INVESTMEifT COMiXTTEt ______ FOR ft® FEDERAL RESERVE SYSTEM, HELD AT THE flEDB&AL RESERVE BANK OF NEW YORK. APRIL 30. 1»2S 1 f j / 3 o hfx h PRESENT: . Governors Strong, Fancher, McDougal, Harding and Norris Mr# B. Matte son, Secretary of the Committee There w e also present by invitation: Honorable D. R. Crissinger, Governor of the Federal Reserve Board Mr. Walter W. Stewart, Director, Division of Research and S tatistics, Federal Reserve Board Mr. J. H* Case, Deputy Governor, Federal Reserve Bazik ef New York The meeting was called to order at 10:30 a„ m* by Governor Strong, ChaJmaft. On motien, duly seconded, the minutes of the last meeting of the Comnittee held ill Washington on April 6, 1925, were formally approved. The Secretary presented for consideration a report with accompanylag data Sttppertifcg several different plans for the redistribution o f existing* holdings o f Government securities as recommended by the Committee at it s meet ing 6n April 6 « The Committee carefully considered and discussed at length various proposed methods of redistribution of the present holdings of secur it ie s and/or b illg in order to carry out the directions of the C6nf«rettc© of Governors. It was, on motion, duly seconded VOTED that Flan "A" be adopted and that pursuant thereto Hie five banks showing an estimated excess of earnings s e ll from th e ir holdings ap proximately |83,000,000 of Government securities to the six banks (other than Minneapolis) which showed an estimated deficiency in eerAings* The Federal Reserve Bank of Minneapolis is to be furnished with additional b i lls instead of Government securities for the reasons explained at the la st Governors' Conference. JLdfcfcjWo $ /£ ,/> ^ /UJL.J 3 1 3 . -I t - x. Reproduced from the Unclassified / General discussion ensued in respect of the apportionment to be followed in the event that the Committee should exercise its authority to pur chase an additional $50,000,000 of Government securities, in accordance with the action taken at the last Governors* Conference; and on motion of Governor Faneher, it was VOTED that such purchases as may be made from time to time on this $50,000,000 authorization be allotted on a pro rata basis to those five banks that are now giving up the $83,000,000 of Government securities from their participation in the System open market account. There followed a discussion with respect to the method of allottin g System purchases of b ills * Under the present method the gross earnings for the balance of the yea* are determined from the actual earning asset holdings of each bank at the close of business the last day of the previous month. In order to provide a more accurate estimate as to the future earnings of the banks, it was decided to estimate such earnings on the basis of the average earning asset holdings of each bank from the fir s t of the year* It was also understood that allotments of System purchases of b ille w ill be made on the basis of estimated expenses including dividends but excluding charge-offs. The Chairman announced that he now had an opportunity to s e ll a singles block of $20,000,000 of 4 3/8$ Treasury notes maturing December 15, 1925 at 100 27/32 (about a 3$ basis) and to replace them by the purchase of $15,000,000 of Treasury notes maturing March 15, 1926, on a 3 1/4$ basis, and $5,000,000 of Treasury notes maturing March 15, 1927, on a 3*54$ basis* tt m s, thereupon, VOTED that the Chairman be authorized to effect such sale and pur chase* On motion the meeting adjourned* (SIGNED) W# B, MATTESONf Secretary, SCHEDULE "A" STATEMENT SHOWING REDISTRIBUTION OF 183,149,500 OF GOVERNMENT SECURITIES IN SYSTEiW ACCOUNT IN ORDER THAT ESTIMATED EARNINGS WILL BE ON SAlvE BASIS AS ESTIMATED EXPENSES (EXCLUDING CHARGE-OFFS) Total Estimated Earnings 192S Total Estimated Expenses & Dividends 1925 (Excluding Charge-of is) 4 2,908,694 ¥ 1,912,300 New York 7,490,192 Philadelphia $ton Estimated Overage or Shortage of Earnings Tot al Estimated Earnings After Ad~ iustment 192^ 996.,394 ¥ 2,449,040 6,519,000 971,192 2,482,309 2,077,000 Cleveland 3,071,300 Richmond Estimated Excess of Earnings After Ad iustment Present Participation Government Secur itie s Special. Account AMOUNT OR PURCHASED by each Bank Farticipatioi After Ad iustment 4 536,740 # 17,579,500 #17,241,000 6 , 641,157 122,157 92,363,500 31,846,000 60,517,500 405,309 2,301,738 224,738 6,773,000 4351000 2,647,000 424,300 2,743,652 96,652 25,209,500 12,289,500 12 , 920,000 1,399,000 1,422,000 23,000 1,474,713 52,713 2,044,500 2,040,000 4 , 884,500 Atlant a 860,906 1,161,976 301,070 1,204,920 42,944 1 , 022,500 12,903,500 13,926,000 Chicago 4,223,498 3,567,134 656,364 3,823,588 256,454 3 5 , 064,000 15,000,000 20,064,000 Louis 831,610 1,465,000 633,390 1,518,154 53,154 8 , 626,500 25,751,500 34,378,000 neapolis 818 ,631 1,074,100 255,469 818,631 Kansas City 1,299,401 1,632,577 333,176 1,694,205 61,628 1 2 ,343,500 14 , 808,500 27 ,152,000 848,633 1,138,400 289,767 1,182,057 43,657 13 , 265,000 12 , 506,000 25,771,000 2*m .000 .. 2.489.000 290,000 2.S81.U? 92.^19 2^.^27.000 14,340,0.00 19...afrL.QQft #28,433,174 #27,105,487 #3,453,559 *28 ,433,174 $1,327,687 #250 , 041,500 #83 ,149,500 *>250,041,500 I Dallas 3an Francisco # * 255,469 z 7 , 208,000 • 9 , 788,000 0 338,500 9, 788,000 2,125,872 #1,327,687 x Federal Keserve bank of kinneapolis has received additional allotment of Dills-
@FedFRASER