New-York tribune., 1920-09-12
Federal Reserve
Bill Holdings Are
Co.'S Millions Less
Treasury Certificates Held
by Banks Increase 52.8
During Week &; Further Eek.
pansiOn i'm Note Circulation

'~"' A''0 A'tVbHe w WOSHSnDGO4 bBTS0N
WASHINGTON, Sept 11.-Reduction
CT e6.3 millions in total bill holdings,
as against an increase Of 528 millions
IN treasury certificate holdings, is indi-
Gated by the Federal Reserve Board g
weekly bank statement, issued at close
OF business yesterday. AS against a
decline of 55.7 millions in deposit liza
bll'ties the Reserve Banks report a
tu;ther expansion of 51.9 millions in
Federal Reserve note circulation, and a
gain Of 1873 millions in cash reserves,
with the consequence that the reserve
ratio shows rise for the week from
42.5 to 42.S rer cent.
Holdings Ct paper secured by United
States war obligations snow a reduc-
ton Of 1873 millions; those of other
discounted paper, a reduction of about
80 millions, whila the total of accent
ances bought in open market and held
ny the Reserve banks increased by as
millions.
During the week the New York Re-
serve Bank purchased from local mem
per banks and sold to the Boston and
Cleveland ode reserve banks total of S45,-
ooo,ooo of treasury certificates. This
transaction brought about substantial
Improvement in the New York banks
reserve position, through a correspond.
ing credit in the Gold Settlement Fund
besides causing q more equable geo
graphical distribution Of treasury tax
certificates, thereby facilitating the re-
demptlon of these certificates at ma.
turity.
Earning Assets Decrease
1t is understood that the bulk of the
certificates acquired during the week
by the Boston and Cleveland banks will
be held until September 15, when they
are to be redeemed by the government
!otaI earning assets Of the reserve
banks show decrease of $13,5OO,OOO
Of the total Of 1,299.1 millions of
paper secured by government war obli-
cations, 6755 millions, or 81 per cent
were secured by Liberty Bonds; 1868
millions, or 24.3 per cent, by Victory
notes. and 307.3 millions, or 237 per
cent, by treasury certificates, as against
49.6, 23.8 and 266 per cent of CORE
spending total of 1929 millions shown
the week before. Totals of discounted d
paper held by the Boston, PHILADELPHIA
and Cleveland banks include 1892 mill
IONS of paper discounted for the New
York bank and six other reserve banks
in the South and Middle West, while
acceptance holdings of the Philadel-
phia, Cleveland and San Francisco
banks are inclusive of 22.7 millions of
bankers bills purchased from the New
York and Chicago banks, compared with
345 millions reported the week before
Government Deposits Fall
Government deposits show reduc-
tion for the week of 34.4 millions
members Reserve and other deposits
show combined decline of 1.3 mil
lions, while the "fioat" carried by the
Reserve banks and treated as deduc-
ton from gross deposits was 20 mil
lions larger than the week before, with
the consequence that calculated net de-
posits are 55.7 millions less than on the
preceding Friday All Reserve banks
report further additions to their note
circulation, the total expansion for the
week including, besides 51.9 millions
of the Federal Reserve note circulation,
also 81 millions of Federal Reserve
bank notes.
Acquisition of gold received during
the week from foreign sources partly
accounts for an increase of 1879 mil
lions in gold reserves The capital ae-
count shows a further increase of $5a-
900, in consequence of moderate Fed
era reserve stock issues by Reserve
hanks